Duck Creek Technologies, Inc. (NASDAQ:DCT) reported solid Q1 results, with the total revenue coming in at $73.4 million, representing a 25% increase compared to the same period the previous year, and beating the consensus estimate of $68.9 million.

Analysts at RBC Capital provided the following key highlights from Q1:

(1) strong services revenue helped to drive outperformance while subscription revenue decelerated 7 points,

(2) New deal commentary was positive, with multiple T1 deals expected in the second half of the year,

(3) SaaS ARR growth decelerated 2 points but was strong on a dollar basis.

The analysts decreased their price target on the company’s shares to $38 from $47, while maintaining their outperform rating.