CCC Intelligent Solutions Holdings Inc. Announces Fourth Quarter and Fiscal Year 2022 Financial Results

Rhea-AI Summary

CCC Intelligent Solutions Holdings Inc. (NASDAQ: CCCS) reported strong financial results for the fourth quarter and full year 2022, achieving a 14% revenue growth year-over-year. Fourth-quarter revenue reached $204.1 million, up from $187.1 million in Q4 2021. The company posted a GAAP net income of $1.1 million, recovering from a GAAP net loss of $57.9 million in the same quarter the previous year. For the full year, total revenue was $782.4 million, with a gross margin of 73%. CCC expects Q1 2023 revenue between $202 million and $204 million, reflecting continued growth and operational efficiency.

Positive

• 2022 revenue growth of 14%, reaching $782.4 million.
• GAAP net income of $1.1 million in Q4 2022, compared to a loss of $57.9 million in Q4 2021.
• Adjusted EBITDA increased 17% for the full year 2022, totaling $305.4 million.
• Renewed contracts with major insurers and expansion of service offerings.

Negative

• GAAP operating income decreased to $9.7 million in Q4 2022 from $15.3 million in Q4 2021.
• Gross margin decreased from 75% in Q4 2021 to 71% in Q4 2022.
• Adjusted net income decreased from $49.2 million in Q4 2021 to $44 million in Q4 2022.

CHICAGO--(BUSINESS WIRE)-- 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 and year ended December 31, 2022.

“CCC delivered another year of strong financial performance, with 2022 revenue growth of 14% and adjusted EBITDA margin of 39%, with revenue and adjusted EBITDA above our guidance ranges. We believe our solid performance reflects the durability of our business as we continue to deliver innovation and operational efficiency for our customers,” said Githesh Ramamurthy, Chairman & CEO of CCC.

“Our customers are adopting advanced digital capabilities as a primary mechanism to improve the consumer claims experience while simultaneously dealing with a challenging operating environment characterized by labor shortages, inflation, cycle time increases, and greater vehicle complexity,” continued Ramamurthy. “These solutions increasingly leverage CCC’s AI capabilities and interconnected network to deliver process improvements and more holistic consumer experiences. We deeply appreciate the trust our customers are placing in us when they adopt more CCC solutions.”

Fourth Quarter 2022 Financial Highlights

Revenue

•

Total revenue was $204.1 million for the fourth quarter of 2022, compared to $187.1 million for the fourth quarter of 2021.

Profitability

•

GAAP gross profit was $145.5 million, representing a gross margin of 71%, for the fourth quarter of 2022, compared with $139.4 million, representing a gross margin of 75%, for the fourth quarter of 2021. Adjusted gross profit was $157.2 million, representing an adjusted gross margin of 77%, for the fourth quarter of 2022, compared with $147.0 million, representing an adjusted gross margin of 79%, for the fourth quarter of 2021.

•

GAAP operating income was $9.7 million for the fourth quarter of 2022, compared with GAAP operating income of $15.3 million for the fourth quarter of 2021. Adjusted operating income was $72.2 million for the fourth quarter of 2022, compared with adjusted operating income of $69.3 million for the fourth quarter of 2021.

•

GAAP net income was $1.1 million for the fourth quarter of 2022, compared with GAAP net loss of $57.9 million for the fourth quarter of 2021. Adjusted net income was $44.0 million for the fourth quarter of 2022, compared with $49.2 million for the fourth quarter of 2021.

•

Adjusted EBITDA was $80.1 million for the fourth quarter of 2022, compared with adjusted EBITDA of $75.7 million for the fourth quarter of 2021. Adjusted EBITDA grew 6% in the fourth quarter of 2022 as compared to the fourth quarter of 2021.

Full Year 2022 Financial Highlights

Revenue

•

Total revenue was $782.4 million for the full year 2022, an increase of 14% from $688.3 million for the full year 2021.

Profitability

•

GAAP gross profit was $568.5 million, representing a gross margin of 73%, for the full year 2022, compared with $492.6 million, representing a gross margin of 72%, for the full year 2021. Adjusted gross profit was $604.8 million, representing an adjusted gross margin of 77%, for the full year 2022, compared with $533.5 million, representing an adjusted gross margin of 78%, for the full year 2021.

•

GAAP operating income was $51.9 million for the full year 2022, compared with GAAP operating loss of $144.7 million for the full year 2021. Adjusted operating income was $276.7 million for the full year 2022, compared with adjusted operating income of $236.8 million for the full year 2021.

	•		GAAP net income was $38.4 million for the full year 2022, compared with GAAP net loss of $248.9 million for the full year 2021. Adjusted net income was $176.4 million for the full year 2022, compared with $130.3 million for the full year 2021.
	•		Adjusted EBITDA was $305.4 million for the full year 2022, compared with adjusted EBITDA of $261.4 million for the full year 2021. Adjusted EBITDA grew 17% in the full year 2022 as compared to the full year 2021.

Liquidity

•

CCC had $323.8 million in cash and cash equivalents and $792.0 million of total debt at December 31, 2022. The Company generated $199.9 million in cash from operating activities and had free cash flow of $152.0 million during the full year 2022, compared with $127.3 million generated in cash from operating activities and $89.0 million in free cash flow in the full year 2021.

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.

4^th Quarter and Recent Business Highlights

•

CCC continued to deliver solutions to its insurance customer group at scale, touching more claims with more solutions than ever before. In 2022, for example, the highest number of U.S. auto insurance claims in the company’s history were processed using CCC solutions. The digital channel continues to scale, with mobile as a method of auto claim inspection increasing by 20% in 2022. During Q4, CCC renewed a top-10 auto insurer (based on direct premium written) for a 5-year extension, and had numerous cross-selling successes, including several insurance clients who added Casualty solutions to their portfolio of existing CCC products for the first time.

•

CCC experienced ongoing strength across its repair facility customer group, growing revenue through a combination of new logos, cross-selling, and upselling. In 2022, CCC added over 1,000 new rooftops and now has over 28,000 repair facilities on the CCC ONE® network. In Q4, CCC expanded its relationship with a leading multi-store operator seeking platform standardization across their collision, fleet, and paint operations for an additional 400 locations. In addition, the number of repair facilities using 4 or more CCC solutions has increased by over 20% over the past two years.

•

CCC is increasingly using artificial intelligence across its solution set to help clients make decisions faster. Over 100 of CCC’s 300+ insurance customers are actively using CCC’s AI-powered capabilities. In 2022, the application of advanced computer vision AI for claims processing increased 60 percent year-over-year. Over 14 million unique claims have been processed to date using a CCC deep learning AI solution – with 2022 at three times the level of 2019 – and the number of claims using 4 or more of CCC’s AI applications doubled year-over-year. CCC increased to 15 the total number of insurance carriers using CCC® Estimate - STP, the industry-first AI-powered touchless estimating solution. These 15 carriers include 7 of the top-10 auto insurers in the U.S. by direct written premium and represent over 50% of U.S. auto insurance claim volume.

Business Outlook

Based on information as of today, March 1, 2023, the Company is issuing the following financial guidance:

		First Quarter Fiscal 2023				Full Year Fiscal 2023
Revenue		$	202 million to $204 million			$	842 million to $850 million
Adjusted EBITDA		$	76 million to $78 million			$	330 million to $338 million

Conference Call Information

CCC will host a conference call today, March 1, 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 30,000 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
CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
		December 31,				December 31,
			2022				2021
ASSETS
CURRENT ASSETS:
Cash and cash equivalents		$	323,788			$	182,544
Accounts receivable—Net of allowances of $5,339 and $3,791 as of December 31, 2022 and 2021, respectively			98,353				78,793
Income taxes receivable			4,015				318
Deferred contract costs			16,556				15,069
Other current assets			36,358				46,181
Total current assets			479,070				322,905
SOFTWARE, EQUIPMENT, AND PROPERTY—Net			146,443				135,845
OPERATING LEASE ASSETS			32,874				37,234
INTANGIBLE ASSETS—Net			1,118,819				1,213,249
GOODWILL			1,495,129				1,466,884
DEFERRED FINANCING FEES, REVOLVER—Net			2,286				2,899
DEFERRED CONTRACT COSTS			20,161				22,117
EQUITY METHOD INVESTMENT			10,228				10,228
OTHER ASSETS			45,911				26,165
TOTAL		$	3,350,921			$	3,237,526
LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable		$	27,599			$	12,918
Accrued expenses			71,445				66,691
Income taxes payable			922				7,243
Current portion of long-term debt			8,000				8,000
Current portion of long-term licensing agreement—Net			2,876				2,703
Operating lease liabilities			5,484				8,052
Deferred revenues			35,239				31,042
Total current liabilities			151,565				136,649
LONG-TERM DEBT—Net			774,132				780,610
DEFERRED INCOME TAXES—Net			241,698				275,745
LONG-TERM LICENSING AGREEMENT—Net			30,752				33,629
OPERATING LEASE LIABILITIES			54,245				56,133
WARRANT LIABILITIES			36,405				62,478
OTHER LIABILITIES			2,658				5,785
Total liabilities			1,291,455				1,351,029
COMMITMENTS AND CONTINGENCIES (Notes 23 and 24)
MEZZANINE EQUITY:
Redeemable non-controlling interest			14,179				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; 622,072,905 and 609,768,296 shares issued and outstanding at December 31, 2022 and 2021, respectively			62				61
Additional paid-in capital			2,754,055				2,618,924
Accumulated deficit			(707,946	)			(746,352	)
Accumulated other comprehensive loss			(884	)			(315	)
Total stockholders’ equity			2,045,287				1,872,318
TOTAL		$	3,350,921			$	3,237,526

CCC INTELLIGENT SOLUTIONS HOLDINGS INC. AND SUBSIDIARIES
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,
			2022				2021				2022				2021
REVENUES		$	204,106			$	187,083			$	782,448			$	688,288
COST OF REVENUES
Cost of revenues, exclusive of amortization of acquired technologies			51,827				41,117				187,001				169,335
Amortization of acquired technologies			6,745				6,580				26,938				26,320
Total cost of revenues (1)			58,572				47,697				213,939				195,655
GROSS PROFIT			145,534				139,386				568,509				492,633
OPERATING EXPENSES:
Research and development (1)			42,246				37,097				156,957				165,991
Selling and marketing (1)			30,863				27,511				119,594				148,861
General and administrative (1)			44,665				41,353				167,758				250,098
Amortization of intangible assets			18,066				18,126				72,278				72,358
Total operating expenses			135,840				124,087				516,587				637,308
OPERATING INCOME (LOSS)			9,694				15,299				51,922				(144,675	)
INTEREST EXPENSE			(13,204	)			(7,442	)			(38,990	)			(58,990	)
INTEREST INCOME			908				—				908				—
CHANGE IN FAIR VALUE OF DERIVATIVE INSTRUMENTS			(328	)			—				5,663				8,373
CHANGE IN FAIR VALUE OF WARRANT LIABILITIES			2,621				(37,612	)			26,073				(64,501	)
GAIN ON SALE OF COST METHOD INVESTMENT			—				—				3,587				—
LOSS ON EARLY EXTINGUISHMENT OF DEBT			—				—				—				(15,240	)
OTHER INCOME—Net			123				113				699				114
PRETAX INCOME (LOSS)			(186	)			(29,642	)			49,862				(274,919	)
INCOME TAX (PROVISION) BENEFIT			1,258				(28,227	)			(11,456	)			26,000
NET INCOME (LOSS) INCLUDING NON-CONTROLLING INTEREST			1,072				(57,869	)			38,406				(248,919	)
Less: net income (loss) attributable to non-controlling interest			—								—				—
NET INCOME (LOSS) ATTRIBUTABLE TO CCC INTELLIGENT SOLUTIONS HOLDINGS INC.		$	1,072			$	(57,869	)		$	38,406			$	(248,919	)
Net income (loss) per share attributable to common stockholders:
Basic		$	0.00			$	(0.10	)		$	0.06			$	(0.46	)
Diluted		$	0.00			$	(0.10	)		$	0.06			$	(0.46	)
Weighted-average shares used in computing net income (loss) per share attributable to common stockholders:
Basic			612,448,089				596,023,745				607,760,886				543,558,222
Diluted			643,941,176				596,023,745				642,841,596				543,558,222
COMPREHENSIVE INCOME (LOSS):
Net income (loss) including non-controlling interest			1,072				(57,869	)			38,406				(248,919	)
Other comprehensive (loss) income—Foreign currency translation adjustment			235				(26	)			(569	)			(44	)
COMPREHENSIVE INCOME (LOSS) INCLUDING NON-CONTROLLING INTEREST			1,307				(57,895	)			37,837				(248,963	)
Less: comprehensive income (loss) attributable to non-controlling interest			—				—				—				—
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO CCC INTELLIGENT SOLUTIONS HOLDINGS INC.		$	1,307			$	(57,895	)		$	37,837			$	(248,963	)
(1) Includes stock-based compensation expense as follows (in thousands):
		Three months ended December 31,								Year Ended December 31,
			2022				2021				2022				2021
Cost of revenues		$	1,645			$	1,081			$	5,812			$	13,644
Research and development			5,103				3,933				19,536				40,681
Sales and marketing			6,978				4,985				25,309				65,045
General and administrative			15,002				16,583				58,840				142,625
Total stock-based compensation expense		$	28,728			$	26,582			$	109,497			$	261,995

CCC INTELLIGENT SOLUTIONS HOLDINGS INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
	Year ended December 31,
		2022				2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$	38,406			$	(248,919	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization of software, equipment, and property		27,933				24,451
Amortization of intangible assets		99,216				98,678
Deferred income taxes		(34,401	)			(46,883	)
Stock-based compensation		109,497				261,995
Amortization of deferred financing fees		1,878				3,682
Amortization of discount on debt		257				604
Change in fair value of derivative instruments		(5,663	)			(8,373	)
Change in fair value of warrant liabilities		(26,073	)			64,501
Change in fair value of estimated contingent consideration		(100	)			—
Loss on early extinguishment of debt		—				15,240
Non-cash lease expense		3,697				6,279
Gain on divestiture		—				(600	)
Gain on sale of cost method investment		(3,587	)			—
Loss on disposal of software, equipment and property		2,651				—
Other		104				541
Changes in:
Accounts receivable—Net		(19,844	)			(4,725	)
Deferred contract costs		(1,487	)			(3,152	)
Other current assets		9,792				(12,273	)
Deferred contract costs—Non-current		1,956				(7,728	)
Other assets		(14,501	)			(7,838	)
Operating lease assets		3,448				6,354
Income taxes		(10,018	)			3,833
Accounts payable		15,516				(1,052	)
Accrued expenses		4,592				8,347
Operating lease liabilities		(7,241	)			(8,398	)
Deferred revenues		4,196				4,513
Extinguishment of interest rate swap liability		—				(9,987	)
Other liabilities		(317	)			(11,755	)
Net cash provided by operating activities		199,907				127,335
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sale of cost method investment		3,901				—
Acquisition of Safekeep, Inc., net of cash		(32,242	)			—
Purchases of software, equipment, and property		(47,951	)			(38,321	)
Purchase of equity method investment		—				(10,228	)
Purchase of intangible asset		—				(49	)
Net cash used in investing activities		(76,292	)			(48,598	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercise of stock options		27,693				5,085
Proceeds from employee stock purchase plan		3,197				—
Payments for employee taxes withheld upon vesting of equity awards		(5,015	)			—
Principal payments on long-term debt		(8,000	)			(1,336,153	)
Proceeds from issuance of long-term debt, net of fees paid to lender		—				789,927
Net proceeds from equity infusion from the Business Combination		—				763,300
Payment of fees associated with early extinguishment of long-term debt		—				(4,821	)
Dividends to CCCIS stockholders		—				(269,174	)
Deemed distribution to CCCIS option holders		—				(9,006	)
Proceeds from issuance of common stock		—				1,007
Tax effect of Business Combination transaction costs		—				1,395
Net cash provided by (used in) financing activities		17,875				(58,440	)
NET EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS		(246	)			129
NET CHANGE IN CASH AND CASH EQUIVALENTS		141,244				20,426
CASH AND CASH EQUIVALENTS:
Beginning of period		182,544				162,118
End of period	$	323,788			$	182,544
NONCASH INVESTING AND FINANCING ACTIVITIES:
Unpaid liability related to software, equipment, and property	$	100			$	8,035
Leasehold improvements acquired by tenant improvement allowance	$	—			$	16,924
Fair value of assumed Public Warrants exercised	$	—			$	60,481
Contingent consideration related to business acquisition	$	200			$	—
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid for interest	$	36,636			$	54,980
Cash (paid) received for income taxes—Net	$	(55,697	)		$	(15,233	)

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,
(amounts in thousands, except percentages)			2022				2021				2022				2021
Gross Profit		$	145,534			$	139,386			$	568,509			$	492,633
Amortization of acquired technologies			6,745				6,580				26,938				26,320
Stock-based compensation and related employer payroll tax			1,712				1,081				6,090				13,644
Contract termination costs			3,248				—				3,248				—
Business combination transaction costs			—				—				—				905
Adjusted Gross Profit		$	157,239			$	147,047			$	604,785			$	533,502
Gross Profit Margin			71	%			75	%			73	%			72	%
Adjusted Gross Profit Margin			77	%			79	%			77	%			78	%

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)			2022				2021				2022					2021
Operating expenses		$	135,840			$	124,087			$	516,587			$		637,308
Amortization of intangible assets			(18,066	)			(18,126	)			(72,278	)				(72,358	)
Stock-based compensation expense and related employer payroll tax			(27,279	)			(25,501	)			(105,775	)				(248,351	)
Lease abandonment			(4,915	)			(326	)			(6,137	)				(2,582	)
Contract termination costs			(3,248	)			—				(3,248	)				—
M&A and integration costs			(11	)			—				(1,772	)				—
Lease overlap costs			—				(924	)			(1,338	)				(3,697	)
Business combination transaction and related costs			(174	)			(1,914	)			(1,330	)				(11,480	)
Plaintiff litigation costs			(894	)			—				(894	)				—
Change in fair value of contingent consideration			100				—				100					—
Income (costs) related to divestiture, net			459				428				877					(2,177	)
Adjusted operating expenses		$	81,812			$	77,724			$	324,792			$		296,663

CCC INTELLIGENT SOLUTIONS HOLDINGS INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP OPERATING INCOME (LOSS) TO ADJUSTED OPERATING INCOME
(In thousands)
(Unaudited)
		Three months ended December 31,								Year ended December 31,
(dollar amounts in thousands)			2022				2021				2022				2021
Operating income (loss)		$	9,694			$	15,299			$	51,922			$	(144,675	)
Amortization of intangible assets			18,066				18,126				72,278				72,358
Amortization of acquired technologies—Cost of revenue			6,745				6,580				26,938				26,320
Stock-based compensation expense and related employer payroll tax			28,991				26,582				111,865				261,995
Lease abandonment			4,915				326				6,137				2,582
Contract termination costs			3,248				—				3,248				—
M&A and integration costs			11				—				1,772				—
Lease overlap costs			—				924				1,338				3,697
Business combination transaction and related costs			174				1,914				1,330				12,385
Plaintiff litigation costs			894				—				894				—
Change in fair value of contingent consideration			(100	)			—				(100	)			—
(Income) costs related to divestiture, net			(459	)			(428	)			(877	)			2,177
Adjusted operating income		$	72,179			$	69,323			$	276,745			$	236,839

CCC INTELLIGENT SOLUTIONS HOLDINGS INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP NET INCOME (LOSS) TO ADJUSTED EBITDA
(In thousands, except for EBITDA margin percentage data)
(Unaudited)
		Three months ended December 31,								Year ended December 31,
(dollar amounts in thousands)			2022				2021				2022				2021
Net income (loss)		$	1,072			$	(57,869	)		$	38,406			$	(248,919	)
Interest expense			13,204				7,442				38,990				58,990
Interest income			(908	)			—				(908	)			—
Income tax provision (benefit)			(1,258	)			28,227				11,456				(26,000	)
Amortization of intangible assets			18,066				18,126				72,278				72,358
Amortization of acquired technologies—Cost of revenue			6,745				6,580				26,938				26,320
Depreciation and amortization related to software, equipment and property			7,778				6,290				27,933				24,451
EBITDA			44,699				8,796				215,093				(92,800	)
Stock-based compensation expense and related employer payroll tax			28,991				26,582				111,865				261,995
Lease abandonment			4,915				326				6,137				2,582
Contract termination costs			3,248				—				3,248				—
M&A and integration costs			11				—				1,772				—
Lease overlap costs			—				924				1,338				3,697
Business combination transaction and related costs			174				1,914				1,330				12,385
Plaintiff litigation costs			894				—				894				—
Change in fair value of contingent consideration			(100	)			—				(100	)			—
(Income) costs related to divestiture, net			(459	)			(428	)			(877	)			2,177
Gain on sale of cost method investment			0				—				(3,587	)			—
Change in fair value of derivative instruments			328				—				(5,663	)			(8,373	)
Change in fair value of warrant liabilities			(2,621	)			37,612				(26,073	)			64,501
Loss on early extinguishment of debt			—				—				—				15,240
Adjusted EBITDA		$	80,080			$	75,726			$	305,377			$	261,404
Adjusted EBITDA Margin			39	%			40	%			39	%			38	%

CCC INTELLIGENT SOLUTIONS HOLDINGS INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP NET INCOME (LOSS) TO ADJUSTED NET INCOME
(In thousands, except share and per share data)
(Unaudited)
		Three months ended December 31,								Year ended December 31,
(dollar amounts in thousands)			2022				2021				2022				2021
Net income (loss)		$	1,072			$	(57,869	)		$	38,406			$	(248,919	)
Amortization of intangible assets			18,066				18,126				72,278				72,358
Amortization of acquired technologies—Cost of revenue			6,745				6,580				26,938				26,320
Stock-based compensation expense and related employer payroll tax			28,991				26,582				111,865				261,995
Lease abandonment			4,915				326				6,137				2,582
Contract termination costs			3,248				—				3,248				—
M&A and integration costs			11				—				1,772				—
Lease overlap costs			—				924				1,338				3,697
Business combination transaction and related costs			174				1,914				1,330				12,385
Plaintiff litigation costs			894				—				894				—
Change in fair value of contingent consideration			(100	)			—				(100	)			—
(Income) costs related to divestiture, net			(459	)			(428	)			(877	)			2,177
Gain on sale of cost method investment			—				—				(3,587	)			—
Change in fair value of derivative instruments			328				—				(5,663	)			(8,373	)
Change in fair value of warrant liabilities			(2,621	)			37,612				(26,073	)			64,501
Loss on early extinguishment of debt			—				—				—				15,240
Tax effect of adjustments			(17,302	)			15,450				(51,495	)			(73,684	)
Adjusted net income		$	43,962			$	49,217			$	176,411			$	130,279
Adjusted net income per share attributable to common stockholders
Basic		$	0.07			$	0.08			$	0.29			$	0.24
Diluted		$	0.07			$	0.08			$	0.27			$	0.23
Weighted average shares outstanding
Basic			612,448,089				596,023,745				607,760,886				543,558,222
Diluted			643,941,176				637,445,530				642,841,596				575,619,243

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)			2022				2021				2022					2021
Net cash provided by operating activities		$	81,469			$	30,610			$	199,907			$		127,335
Less: Purchases of software, equipment and property			(9,107	)			(13,299	)			(47,951	)				(38,321	)
Less: Purchase of intangible assets			—				—				—					(49	)
Free cash flow		$	72,362			$	17,311			$	151,956			$		88,965

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20230228006376/en/

Investor:

Bill Warmington

VP, Investor Relations, CCC Intelligent Solutions Inc.

312-229-2355

IR@cccis.com

Media:

Michelle Hellyar

Senior Director, Public Relations, CCC Intelligent Solutions Inc.

mhellyar@cccis.com

Source: CCC Intelligent Solutions Inc.

FAQ

What were the financial results for CCCS in Q4 2022?

CCC Intelligent Solutions reported $204.1 million in revenue and a GAAP net income of $1.1 million for Q4 2022.

How much did CCCS grow in revenue for the full year 2022?

CCC Intelligent Solutions achieved a revenue growth of 14%, reaching $782.4 million for the full year 2022.

What is the adjusted EBITDA for CCCS in 2022?

Adjusted EBITDA for CCC Intelligent Solutions was $305.4 million for the full year 2022, a 17% increase from the previous year.

What is CCCS's revenue guidance for Q1 2023?

For Q1 2023, CCC Intelligent Solutions expects revenue between $202 million and $204 million.