CCC Intelligent Solutions Holdings Inc. Announces Fourth Quarter and Fiscal Year 2022 Financial Results
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.
- 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.
- 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.
“CCC delivered another year of strong financial performance, with 2022 revenue growth of
“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
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Total revenue was |
Profitability
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• |
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GAAP gross profit was |
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• |
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GAAP operating income was |
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• |
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GAAP net income was |
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• |
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Adjusted EBITDA was |
Full Year 2022 Financial Highlights
Revenue
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• |
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Total revenue was |
Profitability
|
• |
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GAAP gross profit was |
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• |
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GAAP operating income was |
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• |
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GAAP net income was
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• |
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Adjusted EBITDA was |
Liquidity
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• |
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CCC had |
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
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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 |
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• |
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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 |
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• |
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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 |
Business Outlook
Based on information as of today,
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First Quarter Fiscal 2023 |
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Full Year Fiscal 2023 |
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Revenue |
|
$ |
202 million to |
|
|
$ |
842 million to |
|
Adjusted EBITDA |
|
$ |
76 million to |
|
|
$ |
330 million to |
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Conference Call Information
CCC will host a conference call today,
About
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
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.
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CONSOLIDATED BALANCE SHEETS |
||||||||
(In thousands, except share data) |
||||||||
|
|
|
||||||
|
2022 |
|
|
|
2021 |
|
||
ASSETS |
||||||||
CURRENT ASSETS: |
||||||||
Cash and cash equivalents |
$ |
323,788 |
|
$ |
182,544 |
|
||
Accounts receivable—Net of allowances of |
|
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 |
|
||
|
|
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— |
|
— |
|
|
— |
|
||
Common stock— |
|
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 |
|
||
|
||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) |
||||||||||||||||
(In thousands, except share and per share data) |
||||||||||||||||
(Unaudited) |
||||||||||||||||
Three months ended |
|
Year ended |
||||||||||||||
|
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
|
||||||||||||||||
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
|
|
235 |
|
|
(26 |
) |
|
(569 |
) |
|
(44 |
) |
||||
COMPREHENSIVE INCOME (LOSS) INCLUDING
|
|
1,307 |
|
|
(57,895 |
) |
|
37,837 |
|
|
(248,963 |
) |
||||
Less: comprehensive income (loss) attributable to non-controlling
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
||||
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO CCC
|
$ |
1,307 |
|
$ |
(57,895 |
) |
$ |
37,837 |
|
$ |
(248,963 |
) |
||||
(1) Includes stock-based compensation expense as follows (in thousands): |
||||||||||||||||
Three months ended |
|
Year Ended |
||||||||||||||
|
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 |
|
||||
|
|||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||
(In thousands) |
|||||||
(Unaudited) |
|||||||
Year ended |
|||||||
|
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 |
|
(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 |
) |
|
|
||||||||||||||||
RECONCILIATION OF GROSS PROFIT TO ADJUSTED GROSS PROFIT |
||||||||||||||||
(In thousands, except profit margin percentage data) |
||||||||||||||||
(Unaudited) |
||||||||||||||||
Three months ended |
|
Year ended |
||||||||||||||
(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 |
% |
||||
|
|||||||||||||||||
RECONCILIATION OF GAAP OPERATING EXPENSES TO ADJUSTED OPERATING EXPENSES |
|||||||||||||||||
(In thousands) |
|||||||||||||||||
(Unaudited) |
|||||||||||||||||
Three months ended
|
|
Year ended
|
|||||||||||||||
(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
|
|
(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 |
|
|||||
|
||||||||||||||||
RECONCILIATION OF GAAP OPERATING INCOME (LOSS) TO ADJUSTED OPERATING INCOME |
||||||||||||||||
(In thousands) |
||||||||||||||||
(Unaudited) |
||||||||||||||||
Three months ended |
|
Year ended |
||||||||||||||
(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 |
|
||||
|
||||||||||||||||
RECONCILIATION OF GAAP NET INCOME (LOSS) TO ADJUSTED EBITDA |
||||||||||||||||
(In thousands, except for EBITDA margin percentage data) |
||||||||||||||||
(Unaudited) |
||||||||||||||||
Three months ended |
|
Year ended |
||||||||||||||
(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
|
|
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 |
% |
||||
|
||||||||||||||||
RECONCILIATION OF GAAP NET INCOME (LOSS) TO ADJUSTED NET INCOME |
||||||||||||||||
(In thousands, except share and per share data) |
||||||||||||||||
(Unaudited) |
||||||||||||||||
Three months ended |
|
Year ended |
||||||||||||||
(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 |
|
||||
|
|||||||||||||||||
RECONCILIATION OF NET CASH FLOW FROM OPERATING ACTIVITIES TO FREE CASH FLOW |
|||||||||||||||||
(In thousands) |
|||||||||||||||||
(Unaudited) |
|||||||||||||||||
Three months ended
|
|
Year ended
|
|||||||||||||||
(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:
VP, Investor Relations,
312-229-2355
IR@cccis.com
Media:
Senior Director, Public Relations,
mhellyar@cccis.com
Source:
FAQ
What were the financial results for CCCS in Q4 2022?
How much did CCCS grow in revenue for the full year 2022?
What is the adjusted EBITDA for CCCS in 2022?
What is CCCS's revenue guidance for Q1 2023?
