CCC Board Approves New $300 Million Share Repurchase Authorization

Rhea-AI Summary

CCC Intelligent Solutions Holdings (NASDAQ: CCCS) has announced that its board of directors has approved a new $300 million share repurchase authorization. The company can execute the buyback through open market purchases, privately negotiated transactions, or accelerated share repurchases. The authorization provides flexibility in timing and amount based on market conditions, capital resources, and other factors. Repurchases will be funded through available liquidity and free cash flow.

CCC is a leading cloud platform provider for the P&C insurance economy, connecting over 35,000 businesses through its CCC Intelligent Experience (IX) Cloud™ platform, which serves insurers, repairers, automakers, and part suppliers.

Positive

• Board approval of substantial $300 million share repurchase program
• Flexibility in buyback execution methods and timing
• Company has sufficient liquidity and free cash flow to fund repurchases

Negative

• Potential reduction in available cash for operations or strategic investments
• No guarantee of full program execution or timeline

Insights

Financial Analyst

The $300 million share repurchase program represents a significant capital allocation decision, consuming approximately 4.1% of CCCS's market capitalization. As a leading cloud platform in the P&C insurance sector, this flexible buyback structure allows management to opportunistically acquire shares when they believe the stock is undervalued. The authorization demonstrates strong confidence in the company's cash flow generation capabilities and financial health. The lack of a specified timeline provides strategic flexibility, while funding through available liquidity and free cash flow suggests a disciplined approach that won't strain the balance sheet. For a technology company serving the insurance sector, this move signals management's belief that the stock may be undervalued relative to its growth prospects and market position connecting over 35,000 businesses.

Market Research Analyst

The timing of this buyback authorization is strategically significant within the broader market context. With rising interest rates impacting growth stock valuations, particularly in the tech sector, CCCS is positioning itself to capitalize on potential market volatility. The company's dominant position in the P&C insurance cloud platform space, combined with its AI-driven solutions, creates a strong moat. The buyback program could help stabilize the stock price during market downturns while signaling to investors that management sees long-term value beyond current market prices. For retail investors, this represents a positive indicator of financial stability and management's commitment to shareholder returns, though the actual impact will depend on execution timing and volume.

CHICAGO--(BUSINESS WIRE)-- CCC Intelligent Solutions Holdings Inc. (the “Company”) (NASDAQ: CCCS), a leading cloud platform provider for the P&C insurance economy, today announced that its board of directors has approved a new share repurchase authorization to repurchase up to $300 million of the Company's outstanding common stock.

Under the repurchase authorization, the Company is authorized to repurchase shares through open market purchases, privately negotiated transactions, or accelerated share repurchases. The repurchase authorization does not obligate the Company to repurchase shares and the specific timing and amount of repurchases may vary based on available capital resources, market conditions, management's discretion, securities law limitations, and other factors. Repurchases, if any, will be funded out of available liquidity and free cash flow.

About CCC

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™ platform, 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.

Special Note Regarding 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, statements regarding future use and performance of CCC’s digital solutions. 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, competition, including technological advances and new products marketed by competitors; changes to applicable laws and regulations; and other risks and uncertainties, including those included under the header “Risk Factors” in CCC’s filings with the Securities and Exchange Commission (“SEC”), including the Form 10-K filed February 28, 2024, which can be obtained, without charge, at the SEC’s website (www.sec.gov). 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241220348891/en/

Investor Contact:

Bill Warmington

VP, Investor Relations, CCC Intelligent Solutions Inc.

312-229-2355

IR@cccis.com

Source: CCC Intelligent Solutions Inc.

FAQ

How much is CCC Intelligent Solutions' (CCCS) new share repurchase program worth?

CCC Intelligent Solutions' new share repurchase program is worth $300 million.

How will CCCS fund its $300 million share buyback program?

The share repurchase program will be funded through available liquidity and free cash flow.

What methods can CCCS use to execute its share repurchase program?

CCCS can execute the buyback through open market purchases, privately negotiated transactions, or accelerated share repurchases.

Is CCCS obligated to complete the full $300 million share repurchase?

No, the repurchase authorization does not obligate the company to repurchase shares, and the timing and amount may vary based on market conditions and other factors.