CCCS CCC Intelligent Solutions Holdings Inc

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): October 28, 2024

 

 

CCC Intelligent Solutions Holdings Inc.

(Exact name of Registrant as Specified in Its Charter)

 

 

Delaware			001-39447	98-1546280
(State or Other Jurisdiction of Incorporation)			(Commission File Number)	(IRS Employer Identification No.)
167 N. Green Street, 9th Floor
Chicago, Illinois				60607
(Address of Principal Executive Offices)				(Zip Code)

 

Registrant’s Telephone Number, Including Area Code: (800) 621-8070

 

(Former Name or Former Address, if Changed Since Last Report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common stock, par value $0.0001 per share		CCCS		The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

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Item 2.02 Results of Operations and Financial Condition.

Attached hereto as Exhibit 99.1 and incorporated by reference into this Item 2.02 is a copy of the press release, dated October 28, 2024, announcing the financial results of CCC Intelligent Solutions Holdings Inc. for the quarter ended September 30, 2024, including, among other things, unaudited financial results for that period.

 

The information in this Item 2.02, including Exhibit 99.1 attached hereto, is being furnished and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section and shall not be incorporated by reference into any registration statement or other document filed pursuant to the Securities Act of 1933, as amended, or the Exchange Act, except as otherwise expressly stated in such filing.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits
Exhibit Number	Description
99.1	Press release, dated October 28, 2024
104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

			CCC INTELLIGENT SOLUTIONS HOLDINGS INC.
Date:	October 28, 2024	By:	/s/ Brian Herb
		Name: Title:	Brian Herb Executive Vice President, Chief Financial and Administrative Officer

 

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Exhibit 99.1

CCC Intelligent Solutions Holdings Inc. Announces Third Quarter 2024 Financial Results

October 28, 2024 – 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

Profitability

Liquidity

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

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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

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(“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.

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

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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

 

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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	)

 

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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

 

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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	%

 

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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

 

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CCC INTELLIGENT SOLUTIONS HOLDINGS INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP OPERATING INCOME (LOSS) 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

 

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CCC INTELLIGENT SOLUTIONS HOLDINGS INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP NET INCOME (LOSS) 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	%

 

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CCC INTELLIGENT SOLUTIONS HOLDINGS INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP NET INCOME (LOSS) 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

 

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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

 

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v3.24.3

Document And Entity Information	Oct. 28, 2024
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Oct. 28, 2024
Entity Registrant Name	CCC Intelligent Solutions Holdings Inc.
Entity Central Index Key	0001818201
Entity Emerging Growth Company	false
Entity File Number	001-39447
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	98-1546280
Entity Address, Address Line One	167 N. Green Street, 9th Floor
Entity Address, City or Town	Chicago
Entity Address, State or Province	IL
Entity Address, Postal Zip Code	60607
City Area Code	(800)
Local Phone Number	621-8070
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common stock, par value $0.0001 per share
Trading Symbol	CCCS
Security Exchange Name	NASDAQ

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