Published on 7 Jan 2023 on Simply Wall St. via Yahoo Finance

Loss-Making Duck Creek Technologies, Inc. (NASDAQ:DCT) Expected To Breakeven In The Medium-Term

Duck Creek Technologies, Inc. (NASDAQ:DCT) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Duck Creek Technologies, Inc. provides software-as-a-service core systems to the property and casualty insurance industry in the United States and internationally. The company’s loss has recently broadened since it announced a US$8.3m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$14m, moving it further away from breakeven. Many investors are wondering about the rate at which Duck Creek Technologies will turn a profit, with the big question being “when will the company breakeven?” We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

See our latest analysis for Duck Creek Technologies

Duck Creek Technologies is bordering on breakeven, according to the 10 American Software analysts. They expect the company to post a final loss in 2024, before turning a profit of US$7.3m in 2025. So, the company is predicted to breakeven approximately 2 years from now. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 99%, which signals high confidence from analysts. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.