CCC Intelligent Solutions Holdings Inc. (“CCC” or the “Company”)
(NASDAQ: CCCS), a leading SaaS platform for the P&C insurance
economy, today announced its financial results for the three months
ended September 30, 2023.
“CCC delivered strong third quarter results, highlighted by 11%
year-over-year revenue growth, 19% year-over-year adjusted EBITDA
growth, and an adjusted EBITDA margin of 42%. Our solid performance
reflects positive momentum across our business from continuing to
deliver new, high-ROI solutions that improve the operating
efficiency and consumer experience of our customers’
mission-critical workflows,” said Githesh Ramamurthy, Chairman
& CEO of CCC.
“Our goal at CCC is the digitization of the entire automobile
accident supply chain – from first notice of loss through
subrogation – by seamlessly integrating artificial intelligence,
connected networks, and digital engagement,” continued Ramamurthy.
“Our strong innovation velocity and balanced growth algorithm
reinforce our confidence in our long-term growth outlook.”
Third Quarter 2023 Financial Highlights
Revenue
- Total revenue was $221.1 million for the third quarter of 2023,
an increase of 11% from $198.7 million for the third quarter of
2022.
Profitability
- GAAP gross profit was $163.1 million, representing a gross
margin of 74%, for the third quarter of 2023, compared with $145.6
million, representing a gross margin of 73%, for the third quarter
of 2022. Adjusted gross profit was $172.1 million, representing an
adjusted gross profit margin of 78%, for the third quarter of 2023,
compared with $154.1 million, representing an adjusted gross profit
margin of 78%, for the third quarter of 2022.
- GAAP operating income was $16.6 million for the third quarter
of 2023, compared with GAAP operating income of $17.1 million for
the third quarter of 2022. Adjusted operating income was $82.7
million for the third quarter of 2023, compared with adjusted
operating income of $71.1 million for the third quarter of
2022.
- GAAP net loss was $21.2 million for the third quarter of 2023,
compared with GAAP net income of $9.8 million for the third quarter
of 2022. Adjusted net income was $57.2 million for the third
quarter of 2023, compared with adjusted net income of $46.6 million
for the third quarter of 2022.
- Adjusted EBITDA was $92.9 million for the third quarter of
2023, compared with adjusted EBITDA of $78.1 million for the third
quarter of 2022. Adjusted EBITDA grew 19% in the third quarter of
2023 compared with the third quarter of 2022.
Liquidity
- CCC had $448.7 million in cash and cash equivalents and $786.0
million of total debt on September 30, 2023. The Company generated
$60.5 million in cash from operating activities and had free cash
flow of $46.4 million during the third quarter of 2023, compared
with $30.8 million generated in cash from operating activities and
$17.4 million in free cash flow in the third quarter of 2022.
The information presented above includes non-GAAP financial
measures such as “adjusted EBITDA,” “adjusted net income,”
“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 recently introduced Repair Cost Predictor and Mobile
Jumpstart, AI-driven solutions that help address the tight labor
challenges facing repair facilities in writing estimates for
damaged vehicles. Repair Cost Predictor is a new AI-powered feature
within Engage that allows consumers who are shopping for a repair
to upload photos of their damaged vehicle and receive a predicted
range for the cost of repair in seconds. The consumer can then book
an appointment for an estimate or directly schedule a repair,
giving repair facilities the capability to efficiently capture and
convert digital leads, even after hours. The photos and predictions
are seamlessly integrated into CCC ONE®, further enhancing the
repair facilities’ ability to service their customers. Mobile
Jumpstart is a new feature within our CCC ONE® Estimating-IQ
solution that helps estimators significantly reduce the time it
takes to prepare estimates by leveraging their mobile phones. In
early usage, Mobile Jumpstart is reducing the average time to
complete an initial estimate from about half an hour to a few
minutes or less.
- CCC recently took two steps to help collision repair facilities
improve their digital engagement with consumers. The first was the
integration of CCC® Engage into Google Business Profiles, Search,
and Maps to facilitate direct consumer scheduling of repair
appointments with collision repairers. The second was a new
solution, named CCC® Amplify, that enables repair facilities to
quickly and easily set up a modern, professional-looking website
with deep integration to CCC® ONE.
- CCC is a leader in the Casualty solutions market and recently
launched CCC® Impact Dynamics, a new computer vision AI technology
for Casualty claims that can predict potential physical injuries to
the occupants of a vehicle involved in an accident based on photos
of the damaged vehicles. A top-5 auto insurer and long-time
customer of CCC’s Automobile Physical Damage solutions has
contracted for Impact Dynamics, the insurer’s first Casualty
solution from CCC.
Business Outlook
Based on information as of today, November 6, 2023, the Company
is issuing the following financial guidance:
Fourth Quarter Fiscal
2023
Full Year Fiscal 2023
Revenue
$
221.5 million to $223.5
million
$
859 million to $861 million
Adjusted EBITDA
$
92 million to $94 million
$
345 million to $347 million
Conference Call Information
CCC will host a conference call today, November 6, 2023, 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., a subsidiary of CCC Intelligent
Solutions Holdings Inc. (NASDAQ: CCCS), is a leading SaaS platform
for the multi-trillion-dollar P&C insurance economy powering
operations for insurers, repairers, automakers, part suppliers,
lenders, and more. CCC cloud technology connects more than 35,000
businesses digitizing mission-critical workflows, commerce, and
customer experiences. A trusted leader in AI, IoT, customer
experience, network and workflow management, CCC delivers
innovations that keep people’s 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; 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 and products; 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; currency fluctuations; our
reliance on third-party data, technology and intellectual property;
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, 2022 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 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,
2023
2022
(Unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents
$
448,733
$
323,788
Accounts receivable—Net of allowances of
$5,052 and $5,339 as of September 30, 2023 and December 31, 2022,
respectively
117,799
98,353
Income taxes receivable
407
4,015
Deferred contract costs
16,994
16,556
Other current assets
29,814
36,358
Total current assets
613,747
479,070
SOFTWARE, EQUIPMENT, AND PROPERTY—Net
158,189
146,443
OPERATING LEASE ASSETS
31,061
32,874
INTANGIBLE ASSETS—Net
1,039,555
1,118,819
GOODWILL
1,417,724
1,495,129
DEFERRED FINANCING FEES, REVOLVER—Net
1,825
2,286
DEFERRED CONTRACT COSTS
19,579
20,161
EQUITY METHOD INVESTMENT
10,228
10,228
OTHER ASSETS
49,875
45,911
TOTAL
$
3,341,783
$
3,350,921
LIABILITIES, MEZZANINE EQUITY AND
STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable
$
18,235
$
27,599
Accrued expenses
61,005
71,445
Income taxes payable
9,537
922
Current portion of long-term debt
8,000
8,000
Current portion of long-term licensing
agreement—Net
3,013
2,876
Operating lease liabilities
6,879
5,484
Deferred revenues
41,885
35,239
Total current liabilities
148,554
151,565
LONG-TERM DEBT—Net
769,136
774,132
DEFERRED INCOME TAXES—Net
200,913
241,698
LONG-TERM LICENSING AGREEMENT—Net
28,475
30,752
OPERATING LEASE LIABILITIES
51,669
54,245
WARRANT LIABILITIES
81,808
36,405
OTHER LIABILITIES
2,246
2,658
Total liabilities
1,282,801
1,291,455
COMMITMENTS AND CONTINGENCIES (Notes 19
and 20)
MEZZANINE EQUITY:
Redeemable non-controlling interest
15,504
14,179
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; 634,633,179 and 622,072,905 shares issued and
outstanding at September 30, 2023 and December 31, 2022,
respectively
63
62
Additional paid-in capital
2,868,881
2,754,055
Accumulated deficit
(824,308
)
(707,946
)
Accumulated other comprehensive loss
(1,158
)
(884
)
Total stockholders’ equity
2,043,478
2,045,287
TOTAL
$
3,341,783
$
3,350,921
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,
2023
2022
2023
2022
REVENUES
$
221,147
$
198,734
$
637,777
$
578,342
COST OF REVENUES
Cost of revenues, exclusive of
amortization and impairment of acquired technologies
51,459
46,379
153,954
135,174
Amortization of acquired technologies
6,567
6,748
19,897
20,193
Impairment of acquired technologies
—
—
431
—
Total cost of revenues
58,026
53,127
174,282
155,367
GROSS PROFIT
163,121
145,607
463,495
422,975
OPERATING EXPENSES:
Research and development
43,532
40,273
127,891
114,711
Selling and marketing
35,605
30,838
105,072
88,731
General and administrative
49,471
39,376
137,477
123,093
Amortization of intangible assets
17,942
18,066
54,030
54,212
Impairment of goodwill
—
—
77,405
—
Impairment of intangible assets
—
—
4,906
—
Total operating expenses
146,550
128,553
506,781
380,747
OPERATING INCOME (LOSS)
16,571
17,054
(43,286
)
42,228
INTEREST EXPENSE
(14,633
)
(10,501
)
(42,480
)
(25,786
)
INTEREST INCOME
5,165
—
12,447
—
CHANGE IN FAIR VALUE OF DERIVATIVE
INSTRUMENTS
(446
)
5,991
563
5,991
CHANGE IN FAIR VALUE OF WARRANT
LIABILITIES
(26,223
)
312
(45,403
)
23,452
GAIN ON SALE OF COST METHOD INVESTMENT
—
9
—
3,587
OTHER INCOME—Net
182
382
551
576
PRETAX (LOSS) INCOME
(19,384
)
13,247
(117,608
)
50,048
INCOME TAX (PROVISION) BENEFIT
(1,818
)
(3,452
)
1,246
(12,714
)
NET (LOSS) INCOME INCLUDING
NON-CONTROLLING INTEREST
(21,202
)
9,795
(116,362
)
37,334
LESS: ACCRETION OF REDEEMABLE
NON-CONTROLLING INTEREST
(1,010
)
—
(1,325
)
—
NET (LOSS) INCOME ATTRIBUTABLE TO CCC
INTELLIGENT SOLUTIONS HOLDINGS INC. COMMON STOCKHOLDERS
$
(22,212
)
$
9,795
$
(117,687
)
$
37,334
Net (loss) income per share attributable
to common stockholders:
Basic
$
(0.04
)
$
0.02
$
(0.19
)
$
0.06
Diluted
$
(0.04
)
$
0.02
$
(0.19
)
$
0.06
Weighted-average shares used in computing
net (loss) income per share attributable to common
stockholders:
Basic
624,976,557
609,421,073
620,841,922
606,181,316
Diluted
624,976,557
643,582,922
620,841,922
642,208,622
COMPREHENSIVE (LOSS) INCOME:
Net (loss) income including
non-controlling interest
(21,202
)
9,795
(116,362
)
37,334
Other comprehensive (loss) income—Foreign
currency translation adjustment
(23
)
(510
)
(274
)
(804
)
COMPREHENSIVE (LOSS) INCOME INCLUDING
NON-CONTROLLING INTEREST
(21,225
)
9,285
(116,636
)
36,530
Less: accretion of redeemable
non-controlling interest
(1,010
)
—
(1,325
)
—
COMPREHENSIVE (LOSS) INCOME ATTRIBUTABLE
TO CCC INTELLIGENT SOLUTIONS HOLDINGS INC. COMMON STOCKHOLDERS
$
(22,235
)
$
9,285
$
(117,961
)
$
36,530
CCC INTELLIGENT SOLUTIONS
HOLDINGS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
For the Nine Months
Ended
September 30,
2023
2022
CASH FLOWS FROM OPERATING ACTIVITIES:
Net (loss) income
$
(116,362
)
$
37,334
Adjustments to reconcile net (loss) income
to net cash provided by operating activities:
Depreciation and amortization of software,
equipment, and property
28,025
20,155
Amortization of intangible assets
73,927
74,405
Impairment of goodwill and intangible
assets
82,742
—
Deferred income taxes
(40,785
)
(53,061
)
Stock-based compensation
104,471
80,769
Amortization of deferred financing
fees
1,295
1,424
Amortization of discount on debt
170
196
Change in fair value of derivative
instruments
(563
)
(5,991
)
Change in fair value of warrant
liabilities
45,403
(23,452
)
Non-cash lease expense
1,232
3,076
Loss on disposal of software, equipment
and property
—
795
Gain on sale of cost method investment
—
(3,587
)
Other
171
101
Changes in:
Accounts receivable—Net
(19,340
)
(19,532
)
Deferred contract costs
(438
)
(719
)
Other current assets
6,727
12,321
Deferred contract costs—Non-current
582
3,299
Other assets
(3,572
)
(18,227
)
Operating lease assets
581
1,623
Income taxes
12,223
10,029
Accounts payable
(9,368
)
2,466
Accrued expenses
(9,335
)
(2,664
)
Operating lease liabilities
(1,181
)
(4,687
)
Deferred revenues
6,646
2,557
Other liabilities
(113
)
(192
)
Net cash provided by operating
activities
163,138
118,438
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of software, equipment, and
property
(43,187
)
(38,844
)
Acquisition of Safekeep, Inc., net of cash
acquired
—
(32,242
)
Proceeds from sale of cost method
investment
—
3,901
Net cash used in investing activities
(43,187
)
(67,185
)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercise of stock
options
23,051
22,814
Proceeds from employee stock purchase
plan
4,761
3,197
Payments for employee taxes withheld upon
vesting of equity awards
(16,429
)
(5,005
)
Principal payments on long-term debt
(6,000
)
(6,000
)
Net cash provided by financing
activities
5,383
15,006
NET EFFECT OF EXCHANGE RATE CHANGES ON
CASH AND CASH EQUIVALENTS
(389
)
(650
)
NET CHANGE IN CASH AND CASH
EQUIVALENTS
124,945
65,609
CASH AND CASH EQUIVALENTS:
Beginning of period
323,788
182,544
End of period
$
448,733
$
248,153
NONCASH INVESTING AND FINANCING
ACTIVITIES:
Noncash purchases of software, equipment,
and property
$
1,923
$
—
Contingent consideration related to
business acquisition
$
—
$
200
SUPPLEMENTAL DISCLOSURES OF CASH FLOW
INFORMATION:
Cash paid for interest
$
40,983
$
24,150
Cash paid for income taxes—Net
$
27,316
$
55,526
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)
2023
2022
2023
2022
Gross Profit
$
163,121
$
145,607
$
463,495
$
422,975
Amortization of acquired technologies
6,567
6,748
19,897
20,193
Stock-based compensation and related
employer payroll tax
2,432
1,765
6,906
4,378
Impairment of acquired technologies
—
—
431
—
Adjusted Gross Profit
$
172,120
$
154,120
$
490,729
$
447,546
Gross Profit Margin
74
%
73
%
73
%
73
%
Adjusted Gross Profit Margin
78
%
78
%
77
%
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)
2023
2022
2023
2022
Operating expenses
$
146,550
$
128,553
$
506,781
$
380,747
Amortization of intangible assets
(17,942
)
(18,066
)
(54,030
)
(54,212
)
Impairment of goodwill
—
—
(77,405
)
—
Impairment of intangible assets
—
—
(4,906
)
—
Stock-based compensation expense and
related employer payroll tax
(37,778
)
(27,800
)
(100,577
)
(78,496
)
Plaintiff litigation costs
(1,396
)
—
(3,918
)
—
M&A and integration costs
—
(6
)
—
(1,761
)
Lease overlap costs
—
—
—
(1,222
)
Lease abandonment
—
—
—
(1,338
)
Business Combination transaction and
related costs
—
(101
)
—
(1,156
)
Income related to divestiture, net
—
471
—
418
Adjusted operating expenses
$
89,434
$
83,051
$
265,945
$
242,980
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)
2023
2022
2023
2022
Operating income (loss)
$
16,571
$
17,054
$
(43,286
)
$
42,228
Amortization of intangible assets
17,942
18,066
54,030
54,212
Amortization of acquired technologies—Cost
of revenue
6,567
6,748
19,897
20,193
Impairment of acquired technologies—Cost
of revenue
—
—
431
—
Impairment of goodwill
—
—
77,405
—
Impairment of intangible assets
—
—
4,906
—
Stock-based compensation expense and
related employer payroll tax
40,210
29,565
107,483
82,874
Plaintiff litigation costs
1,396
—
3,918
—
M&A and integration costs
—
6
—
1,761
Lease overlap costs
—
—
—
1,222
Lease abandonment
—
—
—
1,338
Business Combination transaction and
related costs
—
101
—
1,156
Income related to divestiture, net
—
(471
)
—
(418
)
Adjusted operating income
$
82,686
$
71,069
$
224,784
$
204,566
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)
2023
2022
2023
2022
Net (loss) income
$
(21,202
)
$
9,795
$
(116,362
)
$
37,334
Interest expense
14,633
10,501
42,480
25,786
Interest income
(5,165
)
—
(12,447
)
—
Income tax (benefit) provision
1,818
3,452
(1,246
)
12,714
Amortization of intangible assets
17,942
18,066
54,030
54,212
Amortization of acquired technologies—Cost
of revenue
6,567
6,748
19,897
20,193
Depreciation and amortization of software,
equipment and property
2,117
2,427
6,531
7,834
Depreciation and amortization of software,
equipment and property—Cost of revenue
7,942
4,238
21,494
12,321
EBITDA
24,652
55,227
14,377
170,394
Stock-based compensation expense and
related employer payroll tax
40,210
29,565
107,483
82,874
Impairment of acquired technologies—Cost
of revenue
—
—
431
—
Impairment of goodwill
—
—
77,405
—
Impairment of intangible assets
—
—
4,906
—
Change in fair value of derivative
instruments
446
(5,991
)
(563
)
(5,991
)
Plaintiff litigation costs
1,396
—
3,918
—
Change in fair value of warrant
liabilities
26,223
(312
)
45,403
(23,452
)
M&A and integration costs
—
6
—
1,761
Lease overlap costs
—
—
—
1,222
Lease abandonment
—
—
—
1,338
Business Combination transaction and
related costs
—
101
—
1,156
Income related to divestiture, net
—
(471
)
—
(418
)
Gain on sale of cost method investment
—
(9
)
—
(3,587
)
Adjusted EBITDA
$
92,927
$
78,116
$
253,360
$
225,297
Adjusted EBITDA Margin
42
%
39
%
40
%
39
%
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)
2023
2022
2023
2022
Net (loss) income
$
(21,202
)
$
9,795
$
(116,362
)
$
37,334
Amortization of intangible assets
17,942
18,066
54,030
54,212
Amortization of acquired technologies—Cost
of revenue
6,567
6,748
19,897
20,193
Impairment of acquired technologies—Cost
of revenue
—
—
431
—
Impairment of goodwill
—
—
77,405
—
Impairment of intangible assets
—
—
4,906
—
Stock-based compensation expense and
related employer payroll tax
40,210
29,565
107,483
82,874
Change in fair value of derivative
instruments
446
(5,991
)
(563
)
(5,991
)
Plaintiff litigation costs
1,396
—
3,918
—
Change in fair value of warrant
liabilities
26,223
(312
)
45,403
(23,452
)
M&A and integration costs
—
6
—
1,761
Lease overlap costs
—
—
—
1,222
Lease abandonment
—
—
—
1,338
Business Combination transaction and
related costs
—
101
—
1,156
Income related to divestiture, net
—
(471
)
—
(418
)
Gain on sale of cost method investment
—
(9
)
—
(3,587
)
Tax effect of adjustments
(14,421
)
(10,894
)
(45,054
)
(34,193
)
Adjusted net income
$
57,161
$
46,604
$
151,494
$
132,449
Adjusted net income per share attributable
to common stockholders:
Basic
$
0.09
$
0.08
$
0.24
$
0.22
Diluted
$
0.09
$
0.07
$
0.23
$
0.21
Weighted average shares outstanding:
Basic
624,976,557
609,421,073
620,841,922
606,181,316
Diluted
657,570,205
643,582,922
652,296,866
642,208,622
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)
2023
2022
2023
2022
Net cash provided by operating
activities
$
60,506
$
30,753
$
163,138
$
118,438
Less: Purchases of software, equipment,
and property
(14,103
)
(13,375
)
(43,187
)
(38,844
)
Free Cash Flow
$
46,403
$
17,378
$
119,951
$
79,594
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231103919317/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
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