CCCS CCC Intelligent Solutions Holdings Inc

CCC Intelligent Solutions Holdings Inc. (“CCC” or the “Company”) (NASDAQ: CCCS), a leading cloud platform provider for the P&C insurance economy, today announced its financial results for the three months ended September 30, 2024.

“CCC delivered solid third quarter results, highlighted by 8% year-over-year revenue growth and 43% adjusted EBITDA margin. Our sustained performance in 2024 year-to-date reflects multiple new business wins, renewals, and contract expansions across our customer groups,” said Githesh Ramamurthy, Chairman & CEO of CCC.

“We believe that our investments in artificial intelligence, the CCC IX Cloud™ platform, and our multi-sided network position us to continue to deliver new, high-ROI solutions that improve the operating efficiency and consumer experience of our customers’ mission-critical workflows,” continued Ramamurthy. “The high level of customer engagement we are seeing with our Emerging Solutions reinforces our confidence in our long-term growth outlook.”

Third Quarter 2024 Financial Highlights

Revenue

• Total revenue was $238.5 million for the third quarter of 2024, an increase of 8% from $221.1 million for the third quarter of 2023.

Profitability

• GAAP gross profit was $183.4 million, representing a gross margin of 77%, for the third quarter of 2024, compared with $163.1 million, representing a gross margin of 74%, for the third quarter of 2023. Adjusted gross profit was $185.9 million, representing an adjusted gross profit margin of 78%, for the third quarter of 2024, compared with $172.1 million, representing an adjusted gross profit margin of 78%, for the third quarter of 2023.
• GAAP operating income was $28.7 million for the third quarter of 2024, compared with GAAP operating income of $16.6 million for the third quarter of 2023. Adjusted operating income was $91.2 million for the third quarter of 2024, compared with adjusted operating income of $82.7 million for the third quarter of 2023.
• GAAP net income was $4.1 million for the third quarter of 2024, compared with GAAP net loss of $21.2 million for the third quarter of 2023. Adjusted net income was $62.7 million for the third quarter of 2024, compared with adjusted net income of $57.2 million for the third quarter of 2023.
• Adjusted EBITDA was $101.6 million for the third quarter of 2024, compared with adjusted EBITDA of $92.9 million for the third quarter of 2023. Adjusted EBITDA grew 9% in the third quarter of 2024 compared with the third quarter of 2023.

Liquidity

• CCC had $286.3 million in cash and cash equivalents and $778.0 million of total debt on September 30, 2024. The Company generated $63.3 million in cash from operating activities and had free cash flow of $49.4 million during the third quarter of 2024, compared with $60.5 million generated in cash from operating activities and $46.4 million in free cash flow in the third quarter of 2023.

The information presented above includes non-GAAP financial measures such as “adjusted EBITDA,” “adjusted net income,” “adjusted EBITDA margin,” “adjusted operating income,” “adjusted gross profit,” “adjusted gross profit margin,” and “free cash flow.” Refer to “Non-GAAP Financial Measures” for a discussion of these measures and reconciliations of each non-GAAP financial measure to the most directly comparable GAAP financial measure.

3rd Quarter and Recent Business Highlights

• CCC launched CCC® Intelligent Reinspection, a new solution designed to help auto insurers streamline the review of incoming repair facility estimates, expediting repairer workflows and claims resolutions. Leveraging AI technology, CCC Intelligent Reinspection identifies areas for review and provides reason codes based on insurer rules, helping reinspectors review increasingly complex estimates quickly, reducing repair and claim cycle times so drivers can get back on the road sooner following a car accident.
• CCC recently launched CCC® Payroll, a new solution designed to streamline payroll management for collision repair shops. Integrated into the CCC ONE® platform, CCC Payroll enables shops to track production and labor, and streamline payroll within a single system, simplifying the payroll process from start to finish and giving employees greater visibility into how their pay is calculated. The payroll services are provided through an integration with a third-party payroll processor.
• Three months after the launch of CCC® Build Sheets on July 16, 2024, over 2,000 repair facilities have signed up for and are using the subscription service. CCC® Build Sheets is a new solution designed to streamline the repair process. Integrated directly into CCC ONE®, CCC® Build Sheets provides collision repairers with detailed vehicle specifications based on the Vehicle Identification Number (VIN), helping repairers write more complete estimates the first time, better understand the parts needed for repair, access information faster, improve efficiency, and enhance overall shop productivity.

Business Outlook

Based on information as of today, October 28, 2024, the Company is issuing the following financial guidance:

 

Fourth Quarter Fiscal 2024

 

 

Full Year Fiscal 2024

 

Revenue

 

$

242.5 million to $246.5 million

 

 

$

941.0 million to $945.0 million

 

Adjusted EBITDA

 

$

103.0 million to $105.0 million

 

 

$

394.0 million to $396.0 million

 

Conference Call Information

CCC will host a conference call today, October 28, 2024, at 5:00 p.m. (Eastern Time) to discuss the Company’s financial results and financial guidance. A live webcast of this conference call will be available on the “Investor Relations” page of the Company’s website at https://ir.cccis.com, and a replay will be archived on the website as well.

About CCC Intelligent Solutions

CCC Intelligent Solutions Inc. (“CCC”), a subsidiary of CCC Intelligent Solutions Holdings Inc. (NASDAQ: CCCS), is a leading cloud platform provider for the multi-trillion-dollar P&C insurance economy, creating intelligent experiences for insurers, repairers, automakers, part suppliers, and more. The CCC Intelligent Experience (IX) Cloud, powered by proven AI and an innovative event-based architecture, connects more than 35,000 businesses to power customized applications and platforms for optimal outcomes and personalized experiences that just work. Through purposeful innovation and the strength of its connections, CCC technologies empower the people and industry relied upon to keep lives moving forward when it matters most. Learn more about CCC at www.cccis.com.

Forward Looking Statements

This press release contains forward-looking statements that are based on beliefs and assumptions and on information currently available. In some cases, you can identify forward-looking statements by the following words: “may,” “will,” “could,” “would,” “should,” “expect,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “project,” “potential,” “continue,” “ongoing” or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words. These statements involve risks, uncertainties and other factors that may cause actual results, levels of activity, performance or achievements to be materially different from the information expressed or implied by these forward-looking statements. Forward-looking statements in this press release include, but are not limited to, future events, goals, plans and projections regarding the Company’s financial position, results of operations, market position, product development and business strategy. Such differences may be material. We cannot assure you that the forward-looking statements in this press release will prove to be accurate. These forward looking statements are subject to a number of risks and uncertainties, including, among others, our revenues, the concentration of our customers and the ability to retain our current customers; our ability to negotiate with our customers on favorable terms; our ability to maintain and grow our brand and reputation cost-effectively; the execution of our growth strategy; the impact of public health outbreaks, epidemics or pandemics on our business and results of operations; our projected financial information, growth rate and market opportunity; the health of our industry, claim volumes, and market conditions; changes in the insurance and automotive collision industries, including the adoption of new technologies; global economic conditions and geopolitical events; competition in our market and our ability to retain and grow market share; our ability to develop, introduce and market new enhanced versions of our solutions; our sales and implementation cycles; the ability of our research and development efforts to create significant new revenue streams; changes in applicable laws or regulations; changes in international economic, political, social and governmental conditions and policies, including corruption risks in China and other countries; our reliance on third-party data, technology and intellectual property; changes in our customers’ or the public’s perceptions regarding the use of artificial intelligence; our ability to protect our intellectual property; our ability to keep our data and information systems secure from data security breaches; our ability to acquire or invest in companies or pursue business partnerships; our ability to raise financing in the future and improve our capital structure; our success in retaining or recruiting, or changes required in, our officers, key employees or directors; our estimates regarding expenses, future revenue, capital requirements and needs for additional financing; our ability to expand or maintain our existing customer base; our ability to service our indebtedness; and other risks and uncertainties, including those included under the header “Risk Factors” in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023 filed with the Securities and Exchange Commission (“SEC”), which can be obtained, without charge, at the SEC’s website (www.sec.gov), and in our other filings with the SEC. The forward-looking statements in this press release represent our views as of the date of this press release. We anticipate that subsequent events and developments will cause our views to change. However, while we may elect to update these forward-looking statements at some point in the future, we have no current intention of doing so except to the extent required by applicable law. You should, therefore, not rely on these forward-looking statements as representing our views as of any date subsequent to the date of this press release.

Non-GAAP Financial Measures

This press release includes certain financial measures not presented in accordance with generally accepted accounting principles in the U.S. (“GAAP”), including, but not limited to, “adjusted EBITDA,” “adjusted net income,” “adjusted operating income,” “adjusted EBITDA margin,” “adjusted gross profit,” “adjusted gross profit margin,” “adjusted operating expenses,” and “free cash flow” in each case presented on a non-GAAP basis, and certain ratios and other metrics derived therefrom. These non-GAAP financial measures are not measures of financial performance in accordance with GAAP and may exclude items that are significant in understanding and assessing the Company’s financial results. Therefore, these measures should not be considered in isolation or as an alternative to other measures of profitability, liquidity or performance under GAAP. You should be aware that the Company’s calculation of these non-GAAP measures may not be comparable to similarly-titled measures used by other companies.

The Company believes these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to the Company’s financial condition and results of operations. The Company believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends in and in comparing the Company’s financial measures with other similar companies, many of which present similar non-GAAP financial measures to investors. These non-GAAP financial measures are subject to inherent limitations as they reflect the exercise of judgments by management about which expense and income are excluded or included in determining these non-GAAP financial measures. Please refer to the reconciliations of these measures below to what the Company believes are the most directly comparable measures evaluated in accordance with GAAP.

This press release also includes certain projections of non-GAAP financial measures. Due to the high variability and difficulty in making accurate forecasts and projections of some of the information excluded from these projected measures, together with some of the excluded information not being ascertainable or accessible, the Company is unable to quantify certain amounts that would be required to be included in the most directly comparable GAAP financial measures without unreasonable effort. Consequently, no disclosure of estimated comparable GAAP measures is included and no reconciliation of the forward-looking non-GAAP financial measures is included for these projections.

CCC INTELLIGENT SOLUTIONS HOLDINGS INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share data)

 

September 30,

 

December 31,

2024

 

2023

(Unaudited)

ASSETS

CURRENT ASSETS:

Cash and cash equivalents

$

286,303

$

195,572

Accounts receivable—Net of allowances of $4,392 and $5,574 as of September 30, 2024 and December 31, 2023, respectively

 

129,606

 

102,365

Income taxes receivable

 

298

 

1,798

Deferred contract costs

 

19,707

 

17,900

Other current assets

 

31,858

 

32,364

Total current assets

 

467,772

 

349,999

SOFTWARE, EQUIPMENT, AND PROPERTY—Net

 

178,462

 

160,416

OPERATING LEASE ASSETS

 

29,572

 

30,456

INTANGIBLE ASSETS—Net

 

952,392

 

1,015,046

GOODWILL

 

1,417,724

 

1,417,724

DEFERRED FINANCING FEES, REVOLVER—Net

 

1,760

 

1,672

DEFERRED CONTRACT COSTS

 

21,396

 

22,302

EQUITY METHOD INVESTMENT

 

10,228

 

10,228

OTHER ASSETS

 

35,243

 

43,197

TOTAL

$

3,114,549

$

3,051,040

LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS’ EQUITY

CURRENT LIABILITIES:

Accounts payable

$

21,804

$

16,324

Accrued expenses

 

57,598

 

71,478

Income taxes payable

 

1,986

 

3,689

Current portion of long-term debt

 

8,000

 

8,000

Current portion of long-term licensing agreement—Net

 

3,207

 

3,061

Operating lease liabilities

 

7,662

 

6,788

Deferred revenues

 

46,577

 

43,567

Total current liabilities

 

146,834

 

152,907

LONG-TERM DEBT—Net

 

762,639

 

767,504

DEFERRED INCOME TAXES—Net

 

162,424

 

195,365

LONG-TERM LICENSING AGREEMENT—Net

 

25,268

 

27,692

OPERATING LEASE LIABILITIES

 

47,682

 

50,796

WARRANT LIABILITIES

 

—

 

51,501

OTHER LIABILITIES

 

9,316

 

6,414

Total liabilities

 

1,154,163

 

1,252,179

COMMITMENTS AND CONTINGENCIES (Notes 18 and 19)

MEZZANINE EQUITY:

Redeemable non-controlling interest

 

20,267

 

16,584

STOCKHOLDERS’ EQUITY:

Preferred stock—$0.0001 par; 100,000,000 shares authorized; no shares issued or outstanding

 

—

 

—

Common stock—$0.0001 par; 5,000,000,000 shares authorized; 625,325,706 and 603,128,781 shares issued and outstanding as of September 30, 2024 and December 31, 2023, respectively

 

63

 

60

Additional paid-in capital

 

3,042,590

 

2,909,757

Accumulated deficit

 

(1,101,487)

 

(1,126,467)

Accumulated other comprehensive loss

 

(1,047)

 

(1,073)

Total stockholders’ equity

 

1,940,119

 

1,782,277

TOTAL

$

3,114,549

$

3,051,040

CCC INTELLIGENT SOLUTIONS HOLDINGS INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

(In thousands, except share and per share data)

(Unaudited)

 

For the Three Months Ended

 

For the Nine Months Ended

September 30,

 

September 30,

2024

 

2023

 

2024

 

2023

REVENUES

$

238,481

$

221,147

$

698,336

$

637,777

COST OF REVENUES

Cost of revenues, exclusive of amortization and impairment of acquired technologies

 

54,890

 

51,459

 

160,929

 

153,954

Amortization of acquired technologies

 

171

 

6,567

 

8,828

 

19,897

Impairment of acquired technologies

 

—

 

—

 

—

 

431

Total cost of revenues

 

55,061

 

58,026

 

169,757

 

174,282

GROSS PROFIT

 

183,420

 

163,121

 

528,579

 

463,495

OPERATING EXPENSES:

Research and development

 

49,525

 

43,532

 

148,255

 

127,891

Selling and marketing

 

34,347

 

35,605

 

106,254

 

105,072

General and administrative

 

52,918

 

49,471

 

161,247

 

137,477

Amortization of intangible assets

 

17,942

 

17,942

 

53,826

 

54,030

Impairment of goodwill

 

—

 

—

 

—

 

77,405

Impairment of intangible assets

 

—

 

—

 

—

 

4,906

Total operating expenses

 

154,732

 

146,550

 

469,582

 

506,781

OPERATING INCOME (LOSS)

 

28,688

 

16,571

 

58,997

 

(43,286)

INTEREST EXPENSE

 

(16,379)

 

(14,633)

 

(49,434)

 

(42,480)

INTEREST INCOME

 

3,343

 

5,165

 

8,435

 

12,447

CHANGE IN FAIR VALUE OF WARRANT LIABILITIES

 

—

 

(26,223)

 

14,378

 

(45,403)

OTHER (EXPENSE) INCOME—NET

 

(2,587)

 

(264)

 

1,606

 

1,114

PRETAX INCOME (LOSS)

 

13,065

 

(19,384)

 

33,982

 

(117,608)

INCOME TAX (PROVISION) BENEFIT

 

(8,933)

 

(1,818)

 

(9,002)

 

1,246

NET INCOME (LOSS) INCLUDING NON-CONTROLLING INTEREST

 

4,132

 

(21,202)

 

24,980

 

(116,362)

LESS: ACCRETION OF REDEEMABLE NON-CONTROLLING INTEREST

 

(1,320)

 

(1,010)

 

(3,683)

 

(1,325)

NET INCOME (LOSS) ATTRIBUTABLE TO CCC INTELLIGENT SOLUTIONS HOLDINGS INC. COMMON STOCKHOLDERS

$

2,812

$

(22,212)

$

21,297

$

(117,687)

Net income (loss) per share attributable to common stockholders:

Basic

$

0.00

$

(0.04)

$

0.04

$

(0.19)

Diluted

$

0.00

$

(0.04)

$

0.03

$

(0.19)

Weighted-average shares used in computing net income (loss) per share attributable to common stockholders:

Basic

 

615,857,231

 

624,976,557

 

608,073,087

 

620,841,922

Diluted

 

642,404,517

 

624,976,557

 

639,069,491

 

620,841,922

COMPREHENSIVE INCOME (LOSS):

Net income (loss) including non-controlling interest

 

4,132

 

(21,202)

 

24,980

 

(116,362)

Other comprehensive loss—Foreign currency translation adjustment

 

117

 

(23)

 

26

 

(274)

COMPREHENSIVE INCOME (LOSS) INCLUDING NON-CONTROLLING INTEREST

 

4,249

 

(21,225)

 

25,006

 

(116,636)

Less: accretion of redeemable non-controlling interest

 

(1,320)

 

(1,010)

 

(3,683)

 

(1,325)

COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO CCC INTELLIGENT SOLUTIONS HOLDINGS INC. COMMON STOCKHOLDERS

$

2,929

$

(22,235)

$

21,323

$

(117,961)

CCC INTELLIGENT SOLUTIONS HOLDINGS INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

 

For the Nine Months Ended

September 30,

2024

 

2023

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income (loss)

$

24,980

$

(116,362)

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

Depreciation and amortization of software, equipment, and property

 

29,520

 

28,025

Amortization of intangible assets

 

62,654

 

73,927

Impairment of goodwill and intangible assets

 

—

 

82,742

Deferred income taxes

 

(32,941)

 

(40,785)

Stock-based compensation

 

127,221

 

104,471

Amortization of deferred financing fees

 

1,452

 

1,295

Amortization of discount on debt

 

191

 

170

Change in fair value of derivative instruments

 

4,775

 

(563)

Change in fair value of warrant liabilities

 

(14,378)

 

45,403

Non-cash lease expense

 

—

 

1,232

Loss on disposal of software, equipment and property

 

302

 

—

Other

 

163

 

171

Changes in:

Accounts receivable—Net

 

(27,237)

 

(19,340)

Deferred contract costs

 

(1,807)

 

(438)

Other current assets

 

1,670

 

6,727

Deferred contract costs—Non-current

 

906

 

582

Other assets

 

1,724

 

(3,572)

Operating lease assets

 

1,580

 

581

Income taxes

 

(203)

 

12,223

Accounts payable

 

5,483

 

(9,368)

Accrued expenses

 

(14,896)

 

(9,335)

Operating lease liabilities

 

(2,878)

 

(1,181)

Deferred revenues

 

3,024

 

6,646

Other liabilities

 

(1,064)

 

(113)

Net cash provided by operating activities

 

170,241

 

163,138

CASH FLOWS FROM INVESTING ACTIVITIES:

Purchases of software, equipment, and property

 

(45,073)

 

(43,187)

Net cash used in investing activities

 

(45,073)

 

(43,187)

CASH FLOWS FROM FINANCING ACTIVITIES:

Proceeds from exercise of stock options

 

23,997

 

23,051

Proceeds from employee stock purchase plan

 

5,745

 

4,761

Payments for employee taxes withheld upon vesting of equity awards

 

(57,519)

 

(16,429)

Payments of fees associated with the revolver debt modification

 

(661)

 

—

Principal payments on long-term debt

 

(6,000)

 

(6,000)

Net cash (used in) provided by financing activities

 

(34,438)

 

5,383

NET EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS

 

1

 

(389)

NET CHANGE IN CASH AND CASH EQUIVALENTS

 

90,731

 

124,945

CASH AND CASH EQUIVALENTS:

Beginning of period

 

195,572

 

323,788

End of period

$

286,303

$

448,733

NONCASH INVESTING AND FINANCING ACTIVITIES:

Noncash purchases of software, equipment, and property

$

7,305

$

1,923

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:

Cash paid for interest

$

48,294

$

40,983

Cash paid for income taxes—Net

$

42,137

$

27,316

CCC INTELLIGENT SOLUTIONS HOLDINGS INC. AND SUBSIDIARIES

RECONCILIATION OF GROSS PROFIT TO ADJUSTED GROSS PROFIT

(In thousands, except profit margin percentage data)

(Unaudited)

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

(amounts in thousands, except percentages)

2024

 

2023

 

2024

 

2023

Gross Profit

$

183,420

$

163,121

$

528,579

$

463,495

Amortization of acquired technologies

 

171

 

6,567

 

8,828

 

19,897

Stock-based compensation and related employer payroll tax

 

2,337

 

2,432

 

7,617

 

6,906

Impairment of acquired technologies

 

—

 

—

 

—

 

431

Adjusted Gross Profit

$

185,928

$

172,120

$

545,024

$

490,729

Gross Profit Margin

 

77%

 

74%

 

76%

 

73%

Adjusted Gross Profit Margin

 

78%

 

78%

 

78%

 

77%

CCC INTELLIGENT SOLUTIONS HOLDINGS INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP OPERATING EXPENSES TO ADJUSTED OPERATING EXPENSES

(In thousands)

(Unaudited)

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

(dollar amounts in thousands)

2024

 

2023

 

2024

 

2023

Operating expenses

$

154,732

$

146,550

$

469,582

$

506,781

Amortization of intangible assets

 

(17,942)

 

(17,942)

 

(53,826)

 

(54,030)

Stock-based compensation expense and related employer payroll tax

 

(40,306)

 

(37,778)

 

(125,827)

 

(100,577)

Litigation costs

 

(1,614)

 

(1,396)

 

(3,813)

 

(3,918)

Equity transaction costs, including secondary offerings

 

(137)

 

—

 

(1,876)

 

—

M&A and integration costs

 

—

 

—

 

(477)

 

—

Impairment of goodwill

 

—

 

—

 

—

 

(77,405)

Impairment of intangible assets

 

—

 

—

 

—

 

(4,906)

Adjusted operating expenses

$

94,733

$

89,434

$

283,763

$

265,945

CCC INTELLIGENT SOLUTIONS HOLDINGS INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP OPERATING (LOSS) INCOME TO ADJUSTED OPERATING INCOME

(In thousands)

(Unaudited)

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

(dollar amounts in thousands)

2024

 

2023

 

2024

 

2023

Operating income (loss)

$

28,688

$

16,571

$

58,997

$

(43,286)

Amortization of intangible assets

 

17,942

 

17,942

 

53,826

 

54,030

Amortization of acquired technologies—Cost of revenue

 

171

 

6,567

 

8,828

 

19,897

Stock-based compensation expense and related employer payroll tax

 

42,643

 

40,210

 

133,444

 

107,483

Litigation costs

 

1,614

 

1,396

 

3,813

 

3,918

Equity transaction costs, including secondary offerings

 

137

 

—

 

1,876

 

—

M&A and integration costs

 

—

 

—

 

477

 

—

Impairment of goodwill

 

—

 

—

 

—

 

77,405

Impairment of intangible assets

 

—

 

—

 

—

 

4,906

Impairment of acquired technologies - Cost of revenue

 

—

 

—

 

—

 

431

Adjusted operating income

$

91,195

$

82,686

$

261,261

$

224,784

CCC INTELLIGENT SOLUTIONS HOLDINGS INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP NET (LOSS) INCOME TO ADJUSTED EBITDA

(In thousands, except for EBITDA margin percentage data)

(Unaudited)

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

(dollar amounts in thousands)

2024

 

2023

 

2024

 

2023

Net income (loss)

$

4,132

$

(21,202)

$

24,980

$

(116,362)

Interest expense

 

16,379

 

14,633

 

49,434

 

42,480

Interest income

 

(3,343)

 

(5,165)

 

(8,435)

 

(12,447)

Income tax (benefit) provision

 

8,933

 

1,818

 

9,002

 

(1,246)

Amortization of intangible assets

 

17,942

 

17,942

 

53,826

 

54,030

Amortization of acquired technologies—Cost of revenue

 

171

 

6,567

 

8,828

 

19,897

Depreciation and amortization of software, equipment and property

 

2,291

 

2,117

 

6,455

 

6,531

Depreciation and amortization of software, equipment and property—Cost of revenue

 

8,069

 

7,942

 

23,065

 

21,494

Stock-based compensation expense and related employer payroll tax

 

42,643

 

40,210

 

133,444

 

107,483

Change in fair value of derivative instruments

 

4,641

 

446

 

4,775

 

(563)

Income from derivative instruments

 

(2,055)

 

—

 

(6,094)

 

—

Litigation costs

 

1,614

 

1,396

 

3,813

 

3,918

Equity transaction costs, including secondary offerings

 

137

 

—

 

1,876

 

—

Change in fair value of warrant liabilities

 

—

 

26,223

 

(14,378)

 

45,403

M&A and integration costs

 

—

 

—

 

477

 

—

Impairment of goodwill

 

—

 

—

 

—

 

77,405

Impairment of intangible assets

 

—

 

—

 

—

 

4,906

Impairment of acquired technologies - Cost of Revenue

 

—

 

—

 

—

 

431

Adjusted EBITDA

$

101,554

$

92,927

$

291,068

$

253,360

Adjusted EBITDA Margin

 

43%

 

42%

 

42%

 

40%

CCC INTELLIGENT SOLUTIONS HOLDINGS INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP NET (LOSS) INCOME TO ADJUSTED NET INCOME

(In thousands, except share and per share data)

(Unaudited)

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

(dollar amounts in thousands)

2024

 

2023

 

2024

 

2023

Net income (loss)

$

4,132

$

(21,202)

$

24,980

$

(116,362)

Amortization of intangible assets

 

17,942

 

17,942

 

53,826

 

54,030

Amortization of acquired technologies—Cost of revenue

 

171

 

6,567

 

8,828

 

19,897

Stock-based compensation expense and related employer payroll tax

 

42,643

 

40,210

 

133,444

 

107,483

Change in fair value of derivative instruments

 

4,641

 

446

 

4,775

 

(563)

Litigation costs

 

1,614

 

1,396

 

3,813

 

3,918

Equity transaction costs, including secondary offerings

 

137

 

—

 

1,876

 

—

Change in fair value of warrant liabilities

 

—

 

26,223

 

(14,378)

 

45,403

M&A and integration costs

 

—

 

—

 

477

 

—

Impairment of goodwill

 

—

 

—

 

—

 

77,405

Impairment of intangible assets

 

—

 

—

 

—

 

4,906

Impairment of acquired technologies-cost revenue

 

—

 

—

 

—

 

431

Tax effect of adjustments

 

(8,700)

 

(14,421)

 

(44,084)

 

(45,054)

Adjusted net income

$

62,580

$

57,161

$

173,557

$

151,494

Adjusted net income per share attributable to common stockholders:

Basic

$

0.10

$

0.09

$

0.29

$

0.24

Diluted

$

0.10

$

0.09

$

0.27

$

0.23

Weighted average shares outstanding:

Basic

 

615,857,231

 

624,976,557

 

608,073,087

 

620,841,922

Diluted

 

642,404,517

 

657,570,205

 

639,069,491

 

652,296,866

CCC INTELLIGENT SOLUTIONS HOLDINGS INC. AND SUBSIDIARIES

RECONCILIATION OF NET CASH FLOW FROM OPERATING ACTIVITIES TO FREE CASH FLOW

(In thousands)

(Unaudited)

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

(dollar amounts in thousands)

2024

 

2023

 

2024

 

2023

Net cash provided by operating activities

$

63,232

$

60,506

$

170,241

$

163,138

Purchases of software, equipment, and property

 

(13,849)

 

(14,103)

 

(45,073)

 

(43,187)

Free Cash Flow

$

49,383

$

46,403

 

$

125,168

 

$

119,951

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20241024780660/en/

Investor Contact: Bill Warmington VP, Investor Relations, CCC Intelligent Solutions Inc. 312-229-2355 IR@cccis.com

Media Contact: Michelle Hellyar Senior Director, Public Relations, CCC Intelligent Solutions Inc. mhellyar@cccis.com