CCC Intelligent Solutions Holdings Inc. Announces Fourth Quarter and Fiscal Year 2023 Financial Results
- Revenue for Q4 2023 was $228.6 million, a 12% increase from Q4 2022.
- Adjusted EBITDA for Q4 2023 was $100.1 million, a 25% growth from Q4 2022.
- Full year 2023 revenue was $866.4 million, an 11% increase from 2022.
- CCC had $195.6 million in cash and cash equivalents and $784.0 million of total debt on December 31, 2023.
- CCC added over 1,000 repair facilities and 500 parts dealers in 2023, expanding its network to over 35,000 companies.
- Mobile Jumpstart, CCC's AI-driven feature, reduced estimate preparation time to less than 2 minutes for users.
- None.
Insights
The reported financial results from CCC Intelligent Solutions Holdings Inc. demonstrate a robust financial position, with a noteworthy 11% year-over-year revenue growth for 2023, surpassing the company's own guidance. The adjusted EBITDA margin of 41% is particularly impressive, indicating efficient operational management and profitability. Such margins are significant given the competitive SaaS landscape and the capital-intensive nature of technology investments.
The increase in gross profit margins from 71% to 76% in Q4 and the adjusted net income growth of 34% in the same period suggest that the company is not only growing its top line but also improving its cost structure and operational efficiency. The free cash flow of $195.0 million for the full year, up from $152.0 million in the previous year, provides the company with strategic flexibility to reinvest in its platform, reduce debt, or potentially return capital to shareholders.
However, the GAAP operating loss of $23.9 million for the full year, contrasted with an operating income of $51.9 million in the previous year, warrants a closer examination. This could indicate significant investments or one-time expenses that have impacted profitability on a GAAP basis, though the adjusted figures suggest a positive underlying performance.
CCC's performance is indicative of a broader trend within the SaaS sector, where there is a growing demand for advanced digital solutions within specific industries, such as P&C insurance. The company's strategic investments in expanding its multi-sided network, which now includes over 35,000 companies, reflect a commitment to ecosystem growth that can drive network effects and create barriers to entry for competitors.
The doubling of insurers using CCC's AI-based CCC® Estimate-STP is a testament to the increasing integration of AI in insurance claims processing. Such technology adoption can lead to improved customer experiences and operational efficiencies for insurers, potentially leading to increased market share for CCC.
With the launch of Mobile Jumpstart and its rapid adoption, CCC is leveraging AI to address bottlenecks in the collision repair industry, demonstrating innovation that aligns with industry needs. The ability to complete initial estimates in under two minutes can significantly enhance productivity and customer satisfaction, positioning CCC as a valuable partner for repair facilities.
While the financial report is positive, it is important to note the inclusion of non-GAAP financial measures such as 'adjusted EBITDA,' 'adjusted net income,' and others. These measures, while providing a potentially clearer picture of operational performance, are not standardized and can vary in calculation from one company to another. Investors and analysts should be aware of these differences when comparing financial health across companies.
Furthermore, the company's debt level of $784.0 million as of December 31, 2023, should be monitored. While the current liquidity position appears healthy, with $195.6 million in cash and cash equivalents, the ability to service and reduce debt levels will be crucial, especially in an environment of potentially rising interest rates which could increase borrowing costs.
“CCC delivered another year of strong financial performance, with year-over-year revenue growth in 2023 of
“In 2023, we made significant investments in the business to position CCC for continued growth, including expanding our multi-sided network as well as increasing our growth capacity and capabilities,” continued Ramamurthy. “While making these critical investments to support our customers, we also delivered significant year-over-year margin expansion.”
Fourth Quarter 2023 Financial Highlights
Revenue
-
Total revenue was
$228.6 million 12% from$204.1 million
Profitability
-
GAAP gross profit was
$172.7 million 76% , for the fourth quarter of 2023, compared with$145.5 million 71% , for the fourth quarter of 2022. Adjusted gross profit was$181.5 million 79% , for the fourth quarter of 2023, compared with$157.2 million 77% , for the fourth quarter of 2022. -
GAAP operating income was
$19.4 million $9.7 million $90.6 million $72.2 million -
GAAP net income was
$26.3 million $1.1 million $59.0 million $44.0 million -
Adjusted EBITDA was
$100.1 million $80.1 million 25% in the fourth quarter of 2023 compared with the fourth quarter of 2022.
Full Year 2023 Financial Highlights
Revenue
-
Total revenue was
$866.4 million 11% from$782.4 million
Profitability
-
GAAP gross profit was
$636.2 million 73% for the full year of 2023, compared with$568.5 million 73% for the full year of 2022. Adjusted gross profit was$672.2 million 78% for the full year of 2023, compared with$604.8 million 77% for the full year of 2022. -
GAAP operating loss was
$23.9 million $51.9 million $315.4 million $276.7 million -
GAAP net loss was
$90.1 million $38.4 million $210.5 million $176.4 million -
Adjusted EBITDA was
$353.4 million $305.4 million 16% in the full year of 2023 compared with the full year of 2022.
Liquidity
-
CCC had
$195.6 million $784.0 million $250.0 million $195.0 million $199.9 million $152.0 million
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.
4th Quarter and Recent Business Highlights
-
CCC continued to deliver innovative solutions to its customers at scale, touching more claims with more capabilities than ever before. In 2023, CCC processed the highest number of
U.S. auto insurance claims in the Company’s history, and increasingly those claims are benefiting from CCC artificial intelligence to help clients make better decisions faster. To date, over 19 million unique claims have been processed using a CCC AI-enabled solution and we have doubled the number of insurers using our AI-based CCC® Estimate-STP to process claims over the past year. - CCC continued to expand its network of customers by adding over 1,000 repair facilities and over 500 parts dealers in 2023. In total, CCC has more than 35,000 companies in its network, including approximately 29,500 repair facilities, approximately 5,000 parts suppliers, more than 300 insurers, and 13 of the top-15 automotive OEMs.
- Mobile Jumpstart is CCC’s new AI-driven feature within CCC ONE® Estimating-IQ that helps estimators use their mobile phones to reduce the time it takes to prepare estimates. Since its introduction in late Q4, more than 3,000 repair facilities have used Mobile Jumpstart to transform the way repair technicians prepare estimates in the capacity-constrained collision repair industry. In January 2024, Mobile Jumpstart users were able to complete an initial estimate in an average time of less than 2 minutes vs. the traditional industry average of about half an hour.
-
Certain existing shareholders recently completed two secondary offerings of the Company’s common stock. The first offering was of 69,875,000 shares in November 2023. Of this amount, the Company repurchased 32,500,000 shares for
$328.5 million
Business Outlook
Based on information as of today, February 28, 2024, the Company is issuing the following financial guidance:
|
First Quarter Fiscal 2024 |
Full Year Fiscal 2024 |
||||
Revenue |
$ |
224.5 million to |
$ |
942.0 million to |
||
Adjusted EBITDA |
$ |
90.5 million to |
$ |
387.0 million to |
||
Conference Call Information
CCC will host a conference call today, February 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., 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; 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
Non-GAAP Financial Measures
This press release includes certain financial measures not presented in accordance with generally accepted accounting principles in the
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 |
||||||
CONSOLIDATED BALANCE SHEETS |
||||||
AS OF DECEMBER 31, 2023 AND 2022 |
||||||
(In thousands, except share data) |
||||||
December 31, |
December 31, |
|||||
2023 |
2022 |
|||||
| ASSETS | ||||||
| CURRENT ASSETS: | ||||||
| Cash and cash equivalents | $ |
195,572 |
$ |
323,788 |
||
| Accounts receivable—Net of allowances of |
|
102,365 |
|
98,353 |
||
| Income taxes receivable |
|
1,798 |
|
4,015 |
||
| Deferred contract costs |
|
17,900 |
|
16,556 |
||
| Other current assets |
|
32,364 |
|
36,358 |
||
| Total current assets |
|
349,999 |
|
479,070 |
||
| SOFTWARE, EQUIPMENT, AND PROPERTY—Net |
|
160,416 |
|
146,443 |
||
| OPERATING LEASE ASSETS |
|
30,456 |
|
32,874 |
||
| INTANGIBLE ASSETS—Net |
|
1,015,046 |
|
1,118,819 |
||
| GOODWILL |
|
1,417,724 |
|
1,495,129 |
||
| DEFERRED FINANCING FEES, REVOLVER—Net |
|
1,672 |
|
2,286 |
||
| DEFERRED CONTRACT COSTS |
|
22,302 |
|
20,161 |
||
| EQUITY METHOD INVESTMENT |
|
10,228 |
|
10,228 |
||
| OTHER ASSETS |
|
43,197 |
|
45,911 |
||
| TOTAL | $ |
3,051,040 |
$ |
3,350,921 |
||
| LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS’ EQUITY | ||||||
| CURRENT LIABILITIES: | ||||||
| Accounts payable | $ |
16,324 |
$ |
27,599 |
||
| Accrued expenses |
|
71,478 |
|
71,445 |
||
| Income taxes payable |
|
3,689 |
|
922 |
||
| Current portion of long-term debt |
|
8,000 |
|
8,000 |
||
| Current portion of long-term licensing agreement—Net |
|
3,061 |
|
2,876 |
||
| Operating lease liabilities |
|
6,788 |
|
5,484 |
||
| Deferred revenues |
|
43,567 |
|
35,239 |
||
| Total current liabilities |
|
152,907 |
|
151,565 |
||
| LONG-TERM DEBT—Net |
|
767,504 |
|
774,132 |
||
| DEFERRED INCOME TAXES—Net |
|
195,365 |
|
241,698 |
||
| LONG-TERM LICENSING AGREEMENT—Net |
|
27,692 |
|
30,752 |
||
| OPERATING LEASE LIABILITIES |
|
50,796 |
|
54,245 |
||
| WARRANT LIABILITIES |
|
51,501 |
|
36,405 |
||
| OTHER LIABILITIES |
|
6,414 |
|
2,658 |
||
| Total liabilities |
|
1,252,179 |
|
1,291,455 |
||
| COMMITMENTS AND CONTINGENCIES (Notes 23 and 24) | ||||||
| MEZZANINE EQUITY: | ||||||
| Redeemable non-controlling interest |
|
16,584 |
|
14,179 |
||
| STOCKHOLDERS’ EQUITY: | ||||||
| Preferred stock— |
|
— |
|
— |
||
| Common stock— |
|
60 |
|
62 |
||
| Additional paid-in capital |
|
2,909,757 |
|
2,754,055 |
||
| Accumulated deficit |
|
(1,126,467) |
|
(707,946) |
||
| Accumulated other comprehensive loss |
|
(1,073) |
|
(884) |
||
| Total stockholders’ equity |
|
1,782,277 |
|
2,045,287 |
||
| TOTAL | $ |
3,051,040 |
$ |
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) |
||||||||||||
Three months ended December 31, |
Year ended December 31, |
|||||||||||
2023 |
2022 |
2023 |
2022 |
|||||||||
| REVENUES | $ |
228,601 |
$ |
204,106 |
$ |
866,378 |
$ |
782,448 |
||||
| COST OF REVENUES | ||||||||||||
| Cost of revenues, exclusive of amortization of acquired technologies |
|
49,370 |
|
51,827 |
|
203,324 |
|
187,001 |
||||
| Amortization of acquired technologies |
|
6,567 |
|
6,745 |
|
26,464 |
|
26,938 |
||||
| Impairment of acquired technologies |
|
— |
|
— |
|
431 |
|
— |
||||
| Total cost of revenues (1) |
|
55,937 |
|
58,572 |
|
230,219 |
|
213,939 |
||||
| GROSS PROFIT |
|
172,664 |
|
145,534 |
|
636,159 |
|
568,509 |
||||
| OPERATING EXPENSES: | ||||||||||||
| Research and development (1) |
|
45,215 |
|
42,246 |
|
173,106 |
|
156,957 |
||||
| Selling and marketing (1) |
|
35,779 |
|
30,863 |
|
140,851 |
|
119,594 |
||||
| General and administrative (1) |
|
54,367 |
|
44,665 |
|
191,844 |
|
167,758 |
||||
| Amortization of intangible assets |
|
17,942 |
|
18,066 |
|
71,972 |
|
72,278 |
||||
| Impairment of goodwill |
|
— |
|
— |
|
77,405 |
|
— |
||||
| Impairment of intangible assets |
|
— |
|
— |
|
4,906 |
|
— |
||||
| Total operating expenses |
|
153,303 |
|
135,840 |
|
660,084 |
|
516,587 |
||||
| OPERATING INCOME (LOSS) |
|
19,361 |
|
9,694 |
|
(23,925) |
|
51,922 |
||||
| INTEREST EXPENSE |
|
(16,652) |
|
(13,204) |
|
(63,577) |
|
(38,990) |
||||
| INTEREST INCOME |
|
3,806 |
|
908 |
|
16,252 |
|
908 |
||||
| CHANGE IN FAIR VALUE OF WARRANT LIABILITIES |
|
30,308 |
|
2,621 |
|
(15,096) |
|
26,073 |
||||
| GAIN ON SALE OF COST METHOD INVESTMENT |
|
— |
|
— |
|
— |
|
3,587 |
||||
| OTHER INCOME—Net |
|
(3,761) |
|
(205) |
|
1,799 |
|
6,362 |
||||
| PRETAX INCOME (LOSS) |
|
33,062 |
|
(186) |
|
(84,547) |
|
49,862 |
||||
| INCOME TAX (PROVISION) BENEFIT |
|
(6,770) |
|
1,258 |
|
(5,524) |
|
(11,456) |
||||
| NET INCOME (LOSS) INCLUDING NON-CONTROLLING INTEREST |
|
26,292 |
|
1,072 |
|
(90,071) |
|
38,406 |
||||
| LESS: ACCRETION OF REDEEMABLE NON-CONTROLLING INTEREST |
|
(1,080) |
|
— |
|
(2,405) |
|
— |
||||
| NET INCOME (LOSS) ATTRIBUTABLE TO CCC INTELLIGENT SOLUTIONS HOLDINGS INC.'S COMMON STOCKHOLDERS | $ |
25,212 |
$ |
1,072 |
$ |
(92,476) |
$ |
38,406 |
||||
| Net income (loss) per share attributable to common stockholders: | ||||||||||||
| Basic | $ |
0.04 |
$ |
0.00 |
$ |
(0.15) |
$ |
0.06 |
||||
| Diluted (2) | $ |
(0.01) |
$ |
0.00 |
$ |
(0.15) |
$ |
0.06 |
||||
| Weighted-average shares used in computing net income (loss) per share attributable to common stockholders: | ||||||||||||
| Basic |
|
609,128,048 |
|
612,448,089 |
|
617,889,384 |
|
607,760,886 |
||||
| Diluted |
|
609,387,346 |
|
643,941,176 |
|
617,889,384 |
|
642,841,596 |
||||
| COMPREHENSIVE INCOME (LOSS): | ||||||||||||
| Net income (loss) including non-controlling interest |
|
26,292 |
|
1,072 |
|
(90,071) |
|
38,406 |
||||
| Other comprehensive income (loss)—Foreign currency translation adjustment |
|
85 |
|
235 |
|
(189) |
|
(569) |
||||
| COMPREHENSIVE INCOME (LOSS) INCLUDING NON-CONTROLLING INTEREST |
|
26,377 |
|
1,307 |
|
(90,260) |
|
37,837 |
||||
| Less: accretion of redeemable non-controlling interest |
|
(1,080) |
|
— |
|
(2,405) |
|
— |
||||
| COMPREHENSIVE INCOME (LOSS) INCLUDING NON-CONTROLLING INTEREST | $ |
25,297 |
$ |
1,307 |
$ |
(92,665) |
$ |
37,837 |
||||
(1) Includes stock-based compensation expense as follows (in thousands): |
||||||||||||
Three months ended December 31, |
Year Ended December 31, |
|||||||||||
2023 |
2022 |
2023 |
2022 |
|||||||||
| Cost of revenues | $ |
2,207 |
$ |
1,645 |
$ |
8,802 |
$ |
5,812 |
||||
| Research and development |
|
6,634 |
|
5,103 |
|
25,467 |
|
19,536 |
||||
| Sales and marketing |
|
7,940 |
|
6,978 |
|
33,204 |
|
25,309 |
||||
| General and administrative |
|
23,266 |
|
15,002 |
|
77,045 |
|
58,840 |
||||
| Total stock-based compensation expense | $ |
40,047 |
$ |
28,728 |
$ |
144,518 |
$ |
109,497 |
||||
(2) The following table sets forth a reconciliation of the numerator and denominator used to compute diluted earnings per share of common stock (in thousands, except for share data): |
||||||||||||
Three months ended December 31, |
Year Ended December 31, |
|||||||||||
2023 |
2022 |
2023 |
2022 |
|||||||||
Numerator |
||||||||||||
Net income (loss) |
$ |
26,292 |
$ |
1,072 |
$ |
(90,071) |
$ |
38,406 |
||||
Accretion of redeemable non-controlling interest |
|
(1,080) |
|
— |
|
(2,405) |
|
— |
||||
Change in fair value of in-the-money warrant liabilities |
|
(30,308) |
|
— |
|
— |
|
— |
||||
Net (loss) income attributable to common stockholders |
$ |
(5,096) |
$ |
1,072 |
$ |
(92,476) |
$ |
38,406 |
||||
Denominator |
||||||||||||
Weighted average shares of common stock - basic |
|
609,128,048 |
|
612,448,089 |
|
617,889,384 |
|
607,760,886 |
||||
Dilutive effect of stock-based awards |
|
- |
|
31,493,087 |
|
- |
|
35,080,710 |
||||
Dilutive effect of assumed conversion of warrants |
|
259,298 |
|
- |
|
- |
|
- |
||||
Weighted average shares of common stock - diluted |
|
609,387,346 |
|
643,941,176 |
|
617,889,384 |
|
642,841,596 |
||||
CCC INTELLIGENT SOLUTIONS HOLDINGS INC. AND SUBSIDIARIES |
||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||
FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022 |
||||||
(In thousands) |
||||||
Year ended December 31, |
||||||
2023 |
2022 |
|||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||
| Net (loss) income | $ |
(90,071) |
$ |
38,406 |
||
| Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||||||
| Depreciation and amortization of software, equipment, and property |
|
36,902 |
|
27,933 |
||
| Amortization of intangible assets |
|
98,436 |
|
99,216 |
||
| Impairment of goodwill and intangible assets |
|
82,742 |
|
— |
||
| Deferred income taxes |
|
(46,333) |
|
(34,401) |
||
| Stock-based compensation |
|
144,518 |
|
109,497 |
||
| Amortization of deferred financing fees |
|
1,753 |
|
1,878 |
||
| Amortization of discount on debt |
|
233 |
|
257 |
||
| Change in fair value of derivative instruments |
|
5,743 |
|
(5,663) |
||
| Change in fair value of warrant liabilities |
|
15,096 |
|
(26,073) |
||
| Change in fair value of estimated contingent consideration |
|
— |
|
(100) |
||
| Loss on early extinguishment of debt |
|
— |
|
— |
||
| Non-cash lease expense |
|
1,232 |
|
3,697 |
||
| Gain on divestitures |
|
— |
|
— |
||
| Gain on sale of cost method investment |
|
— |
|
(3,587) |
||
| Loss on disposal of software, equipment and property |
|
79 |
|
2,651 |
||
| Other |
|
620 |
|
104 |
||
| Changes in: | ||||||
| Accounts receivable—Net |
|
(4,001) |
|
(19,844) |
||
| Deferred contract costs |
|
(1,344) |
|
(1,487) |
||
| Other current assets |
|
4,046 |
|
9,792 |
||
| Deferred contract costs—Non-current |
|
(2,141) |
|
1,956 |
||
| Other assets |
|
(3,649) |
|
(14,501) |
||
| Operating lease assets |
|
1,186 |
|
3,448 |
||
| Income taxes |
|
4,984 |
|
(10,018) |
||
| Accounts payable |
|
(11,270) |
|
15,516 |
||
| Accrued expenses |
|
1,041 |
|
4,592 |
||
| Operating lease liabilities |
|
(2,145) |
|
(7,241) |
||
| Deferred revenues |
|
8,321 |
|
4,196 |
||
| Extinguishment of interest rate swap liability |
|
— |
|
— |
||
| Other liabilities |
|
4,055 |
|
(317) |
||
| Net cash provided by operating activities |
|
250,033 |
|
199,907 |
||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||
| Purchases of software, equipment, and property |
|
(55,032) |
|
(47,951) |
||
| Proceeds from sale of cost method investment |
|
— |
|
3,901 |
||
| Acquisition of Safekeep, Inc., net of cash |
|
— |
|
(32,242) |
||
| Purchase of equity method investment |
|
— |
|
— |
||
| Purchase of intangible asset |
|
— |
|
— |
||
| Net cash used in investing activities |
|
(55,032) |
|
(76,292) |
||
| CASH FLOWS (USED IN) PROVIDED BY FINANCING ACTIVITIES: | ||||||
| Proceeds from exercise of stock options |
|
25,381 |
|
27,693 |
||
| Proceeds from employee stock purchase plan |
|
4,761 |
|
3,197 |
||
| Principal payments on long-term debt |
|
(8,000) |
|
(8,000) |
||
| Payments for employee taxes withheld upon vesting of equity awards |
|
(16,715) |
|
(5,015) |
||
| Repurchase of common stock |
|
(328,453) |
|
— |
||
| Proceeds from issuance of long-term debt, net of fees paid to lender |
|
— |
|
— |
||
| Net proceeds from equity infusion from the Business Combination |
|
— |
|
— |
||
| Payment of fees associated with early extinguishment of long-term debt |
|
— |
|
— |
||
| Dividends to CCCIS stockholders |
|
— |
|
— |
||
| Deemed distribution to CCCIS option holders |
|
— |
|
— |
||
| Proceeds from issuance of common stock |
|
— |
|
— |
||
| Tax effect of Business Combination transaction costs |
|
— |
|
— |
||
| Net cash (used in) provided by financing activities |
|
(323,026) |
|
17,875 |
||
| NET EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS |
|
(191) |
|
(246) |
||
| NET CHANGE IN CASH AND CASH EQUIVALENTS |
|
(128,216) |
|
141,244 |
||
| CASH AND CASH EQUIVALENTS: | ||||||
| Beginning of period |
|
323,788 |
|
182,544 |
||
| End of period | $ |
195,572 |
$ |
323,788 |
||
| NONCASH INVESTING AND FINANCING ACTIVITIES: | ||||||
| Noncash purchases of software, equipment, and property | $ |
2,044 |
$ |
100 |
||
| Leasehold improvements acquired by tenant improvement allowance | $ |
— |
$ |
— |
||
| Fair value of assumed Public Warrants exercised | $ |
— |
$ |
— |
||
| Contingent consideration related to business acquisition | $ |
— |
$ |
200 |
||
| SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | ||||||
| Cash paid for interest | $ |
61,367 |
$ |
36,636 |
||
| Cash paid for income taxes—Net | $ |
42,948 |
$ |
55,697 |
||
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 December 31, |
Year ended December 31, |
|||||||||||
| (dollar amounts in thousands) | 2023 |
2022 |
2023 |
2022 |
||||||||
| Gross Profit | $ |
172,664 |
$ |
145,534 |
$ |
636,159 |
$ |
568,509 |
||||
| Amortization of acquired technologies |
|
6,567 |
|
6,745 |
|
26,464 |
|
26,938 |
||||
| Stock-based compensation and related employer payroll tax |
|
2,223 |
|
1,712 |
|
9,129 |
|
6,090 |
||||
| Impairment of acquired technologies |
|
— |
|
— |
|
431 |
|
— |
||||
| Contract termination costs |
|
— |
|
3,248 |
|
— |
|
3,248 |
||||
| Business combination transaction costs |
|
— |
|
— |
|
— |
|
— |
||||
| Adjusted Gross Profit | $ |
181,454 |
$ |
157,239 |
$ |
672,183 |
$ |
604,785 |
||||
| Gross Profit Margin |
|
|
|
|
|
|
|
|
||||
| Adjusted Gross Profit Margin |
|
|
|
|
|
|
|
|
||||
CCC INTELLIGENT SOLUTIONS HOLDINGS INC. AND SUBSIDIARIES |
||||||||||||
RECONCILIATION OF GAAP OPERATING EXPENSES TO ADJUSTED OPERATING EXPENSES |
||||||||||||
(In thousands) |
||||||||||||
(Unaudited) |
||||||||||||
Three months ended December 31, |
Year ended December 31, |
|||||||||||
| (dollar amounts in thousands) | 2023 |
2022 |
2023 |
2022 |
||||||||
| Operating expenses | $ |
153,303 |
$ |
135,840 |
$ |
660,084 |
$ |
516,587 |
||||
| Amortization of intangible assets |
|
(17,942) |
|
(18,066) |
|
(71,972) |
|
(72,278) |
||||
| Stock-based compensation expense and related employer payroll tax |
|
(38,001) |
|
(27,279) |
|
(138,578) |
|
(105,775) |
||||
| Goodwill and intangible asset impairment charges |
|
— |
|
— |
|
(82,311) |
|
— |
||||
| Plaintiff litigation costs |
|
(1,150) |
|
(894) |
|
(5,068) |
|
(894) |
||||
| M&A and integration costs |
|
(3,372) |
|
(11) |
|
(3,372) |
|
(1,772) |
||||
| Business combination transaction and related costs, including secondary offering costs |
|
(2,031) |
|
(174) |
|
(2,031) |
|
(1,330) |
||||
| Lease abandonment |
|
— |
|
(4,915) |
|
— |
|
(6,137) |
||||
| Lease overlap costs |
|
— |
|
— |
|
— |
|
(1,338) |
||||
| Change in fair value of contingent consideration |
|
— |
|
100 |
|
— |
|
100 |
||||
| Income related to divestiture, net |
|
— |
|
459 |
|
— |
|
877 |
||||
| Adjusted operating expenses | $ |
90,807 |
$ |
85,060 |
$ |
356,752 |
$ |
328,040 |
||||
CCC INTELLIGENT SOLUTIONS HOLDINGS INC. AND SUBSIDIARIES |
||||||||||||
RECONCILIATION OF GAAP OPERATING (LOSS) INCOME TO ADJUSTED OPERATING INCOME |
||||||||||||
(In thousands) |
||||||||||||
(Unaudited) |
||||||||||||
Three months ended December 31, |
Year ended December 31, |
|||||||||||
| (dollar amounts in thousands) | 2023 |
2022 |
2023 |
2022 |
||||||||
| Operating income (loss) | $ |
19,361 |
$ |
9,694 |
$ |
(23,925) |
$ |
51,922 |
||||
| Amortization of intangible assets |
|
17,942 |
|
18,066 |
|
71,972 |
|
72,278 |
||||
| Amortization of acquired technologies—Cost of revenue |
|
6,567 |
|
6,745 |
|
26,464 |
|
26,938 |
||||
| Stock-based compensation expense and related employer payroll tax |
|
40,224 |
|
28,991 |
|
147,707 |
|
111,865 |
||||
| Goodwill and intangible asset impairment charges |
|
— |
|
— |
|
82,742 |
|
— |
||||
| Plaintiff litigation costs |
|
1,150 |
|
894 |
|
5,068 |
|
894 |
||||
| M&A and integration costs |
|
3,372 |
|
11 |
|
3,372 |
|
1,772 |
||||
| Business combination transaction and related costs, including secondary offering costs |
|
2,031 |
|
174 |
|
2,031 |
|
1,330 |
||||
| Lease abandonment |
|
— |
|
4,915 |
|
— |
|
6,137 |
||||
| Contract termination costs |
|
— |
|
3,248 |
|
— |
|
3,248 |
||||
| Lease overlap costs |
|
— |
|
— |
|
— |
|
1,338 |
||||
| Change in fair value of contingent consideration |
|
— |
|
(100) |
|
— |
|
(100) |
||||
| Income related to divestiture, net |
|
— |
|
(459) |
|
— |
|
(877) |
||||
| Adjusted operating income | $ |
90,647 |
$ |
72,179 |
$ |
315,431 |
$ |
276,745 |
||||
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 December 31, |
Year ended December 31, |
|||||||||||
| (dollar amounts in thousands) | 2023 |
2022 |
2023 |
2022 |
||||||||
| Net income (loss) | $ |
26,292 |
$ |
1,072 |
$ |
(90,071) |
$ |
38,406 |
||||
| Interest expense |
|
16,652 |
|
13,204 |
|
63,577 |
|
38,990 |
||||
| Interest income |
|
(3,806) |
|
(908) |
|
(16,252) |
|
(908) |
||||
| Income tax provision (benefit) |
|
6,770 |
|
(1,258) |
|
5,524 |
|
11,456 |
||||
| Amortization of intangible assets |
|
17,942 |
|
18,066 |
|
71,972 |
|
72,278 |
||||
| Amortization of acquired technologies—Cost of revenue |
|
6,567 |
|
6,745 |
|
26,464 |
|
26,938 |
||||
| Depreciation and amortization related to software, equipment and property |
|
2,046 |
|
2,327 |
|
8,577 |
|
10,161 |
||||
| Depreciation and amortization related to software, equipment and property—Cost of revenue |
|
6,831 |
|
5,451 |
|
28,325 |
|
17,772 |
||||
| Stock-based compensation expense and related employer payroll tax |
|
40,224 |
|
28,991 |
|
147,707 |
|
111,865 |
||||
| Goodwill and intangible asset impairment charges |
|
— |
|
— |
|
82,742 |
|
— |
||||
| Change in fair value of warrant liabilities |
|
(30,308) |
|
(2,621) |
|
15,096 |
|
(26,073) |
||||
| Change in fair value of derivative instruments |
|
6,306 |
|
328 |
|
5,743 |
|
(5,663) |
||||
| Income from derivative instruments |
|
(2,016) |
|
— |
|
(6,460) |
|
— |
||||
| Plaintiff litigation costs |
|
1,150 |
|
894 |
|
5,068 |
|
894 |
||||
| M&A and integration costs |
|
3,372 |
|
11 |
|
3,372 |
|
1,772 |
||||
| Business combination transaction and related costs, including secondary offering costs |
|
2,031 |
|
174 |
|
2,031 |
|
1,330 |
||||
| Lease abandonment |
|
— |
|
4,915 |
|
— |
|
6,137 |
||||
| Contract termination costs |
|
— |
|
3,248 |
|
— |
|
3,248 |
||||
| Lease overlap costs |
|
— |
|
— |
|
— |
|
1,338 |
||||
| Change in fair value of contingent consideration |
|
— |
|
(100) |
|
— |
|
(100) |
||||
| Gain on sale of cost method investment |
|
— |
|
— |
|
— |
|
(3,587) |
||||
| Income related to divestiture, net |
|
— |
|
(459) |
|
— |
|
(877) |
||||
| Adjusted EBITDA | $ |
100,053 |
$ |
80,080 |
$ |
353,415 |
$ |
305,377 |
||||
| Adjusted EBITDA Margin |
|
|
|
|
|
|
|
|
||||
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 December 31, |
Year ended December 31, |
|||||||||||
| (dollar amounts in thousands) | 2023 |
2022 |
2023 |
2022 |
||||||||
| Net income (loss) | $ |
26,292 |
$ |
1,072 |
$ |
(90,071) |
$ |
38,406 |
||||
| Amortization of intangible assets |
|
17,942 |
|
18,066 |
|
71,972 |
|
72,278 |
||||
| Amortization of acquired technologies—Cost of revenue |
|
6,567 |
|
6,745 |
|
26,464 |
|
26,938 |
||||
| Stock-based compensation expense and related employer payroll tax |
|
40,224 |
|
28,991 |
|
147,707 |
|
111,865 |
||||
| Goodwill and intangible asset impairment charges |
|
— |
|
— |
|
82,742 |
|
— |
||||
| Change in fair value of warrant liabilities |
|
(30,308) |
|
(2,621) |
|
15,096 |
|
(26,073) |
||||
| Change in fair value of derivative instruments |
|
6,306 |
|
328 |
|
5,743 |
|
(5,663) |
||||
| Plaintiff litigation costs |
|
1,150 |
|
894 |
|
5,068 |
|
894 |
||||
| M&A and integration costs |
|
3,372 |
|
11 |
|
3,372 |
|
1,772 |
||||
| Business combination transaction and related costs, including secondary offering costs |
|
2,031 |
|
174 |
|
2,031 |
|
1,330 |
||||
| Lease abandonment |
|
— |
|
4,915 |
|
— |
|
6,137 |
||||
| Contract termination costs |
|
— |
|
3,248 |
|
— |
|
3,248 |
||||
| Lease overlap costs |
|
— |
|
— |
|
— |
|
1,338 |
||||
| Change in fair value of contingent consideration |
|
— |
|
(100) |
|
— |
|
(100) |
||||
| Income related to divestiture, net |
|
— |
|
(459) |
|
— |
|
(877) |
||||
| Gain on sale of cost method investment |
|
— |
|
— |
|
— |
|
(3,587) |
||||
| Tax effect of adjustments |
|
(14,584) |
|
(17,302) |
|
(59,638) |
|
(51,495) |
||||
| Adjusted net income | $ |
58,992 |
$ |
43,962 |
$ |
210,486 |
$ |
176,411 |
||||
| Adjusted net income per share attributable to common stockholders | ||||||||||||
| Basic | $ |
0.10 |
$ |
0.07 |
$ |
0.34 |
$ |
0.29 |
||||
| Diluted | $ |
0.09 |
$ |
0.07 |
$ |
0.32 |
$ |
0.27 |
||||
| Weighted average shares outstanding | ||||||||||||
| Basic |
|
609,128,048 |
|
612,448,089 |
|
617,889,384 |
|
607,760,886 |
||||
| Diluted |
|
649,260,826 |
|
643,941,176 |
|
651,587,360 |
|
642,841,596 |
||||
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 December 31, |
Year ended December 31, |
|||||||||||
| (dollar amounts in thousands) | 2023 |
2022 |
2023 |
2022 |
||||||||
| Net cash provided by operating activities | $ |
86,895 |
$ |
81,469 |
$ |
250,033 |
$ |
199,907 |
||||
| Less: Purchases of software, equipment and property |
|
(11,845) |
|
(9,107) |
|
(55,032) |
|
(47,951) |
||||
| Free Cash Flow | $ |
75,050 |
$ |
72,362 |
$ |
195,001 |
$ |
151,956 |
||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20240226271984/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
Source: CCC Intelligent Solutions Inc.
FAQ
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