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CCC Intelligent Solutions Holdings Inc. Announces Third Quarter 2023 Financial Results

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

 

 

Contacts

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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