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

Rhea-AI Summary

CCC Intelligent Solutions Holdings Inc. reported strong second quarter results, with 10% YoY revenue growth and 38% adjusted EBITDA margin. The company's solutions and use of AI are helping customers reduce cycle time and administrative costs in the claims process. CCC added new customers and expanded relationships in the Casualty solutions market. The company's total customer count now exceeds 35,000. CCC provided financial guidance for Q3 2023 and full year 2023.

Positive

• CCC reported 10% YoY revenue growth and 38% adjusted EBITDA margin for Q2 2023.
• CCC's solutions and use of AI are helping customers reduce cycle time and administrative costs in the claims process.
• CCC added new customers and expanded relationships in the Casualty solutions market.
• CCC's total customer count now exceeds 35,000.

Negative

• None.

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 ended June 30, 2023.

“CCC delivered strong second quarter results, highlighted by 10% year-over-year revenue growth and 38% adjusted EBITDA margin. The strong performance in the first half of 2023 included multiple large renewals and relationship expansions that reinforce our confidence in our ability to deliver on our strategic and financial objectives,” said Githesh Ramamurthy, Chairman & CEO of CCC.

“We estimate that as a result of the continued macro pressures facing our customers, the cumulative annual cycle time for automotive claims in the U.S. increased to more than 2 billion days in 2022,” continued Ramamurthy. “This staggering figure underscores the importance of delivering effective and integrated state-of-the-art capabilities to help our clients in the P&C insurance economy address operational efficiency. Our solutions and use of AI are helping to do just that by helping customers to reduce the cycle time, administrative cost, and environmental impact of the claims process.”

Second Quarter 2023 Financial Highlights

Revenue

• Total revenue was $211.7 million for the second quarter of 2023, an increase of 10% from $192.8 million for the second quarter of 2022.

Profitability

• GAAP gross profit was $152.6 million, representing a gross margin of 72%, for the second quarter of 2023, compared with $139.9 million, representing a gross margin of 73%, for the second quarter of 2022. Adjusted gross profit was $162.0 million, representing an adjusted gross profit margin of 77%, for the second quarter of 2023, compared with $148.4 million, representing an adjusted gross profit margin of 77%, for the second quarter of 2022.

• GAAP operating loss was $73.2 million for the second quarter of 2023, compared with GAAP operating income of $12.5 million for the second quarter of 2022. Adjusted operating income was $71.8 million for the second quarter of 2023, compared with adjusted operating income of $66.7 million for the second quarter of 2022.

• GAAP net loss was $97.3 million for the second quarter of 2023, compared with GAAP net income of $15.6 million for the second quarter of 2022. Adjusted net income was $47.8 million for the second quarter of 2023, compared with adjusted net income of $37.4 million for the second quarter of 2022.

• Adjusted EBITDA was $80.9 million for the second quarter of 2023, compared with adjusted EBITDA of $73.4 million for the second quarter of 2022. Adjusted EBITDA grew 10% in the second quarter of 2023 compared with the second quarter of 2022.

Liquidity

• CCC had $403.6 million in cash and cash equivalents and $788.0 million of total debt on June 30, 2023. The Company generated $69.6 million in cash from operating activities and had free cash flow of $55.0 million during the second quarter of 2023, compared with $40.8 million generated in cash from operating activities and $29.6 million in free cash flow in the second quarter of 2022.

The information presented above includes non-GAAP financial measures such as “adjusted EBITDA,” “adjusted net income,” “adjusted operating income,” “adjusted gross profit,” “adjusted gross profit margin,” and “free cash flow.” Refer to “Non-GAAP Financial Measures” for a discussion of these measures and reconciliations of each non-GAAP financial measure to the most directly comparable GAAP financial measure.

2^nd Quarter and Recent Business Highlights

• A top-20 auto insurer and long-time customer of CCC’s Casualty solutions added CCC’s full suite of Automobile Physical Damage (“APD”) solutions in the second quarter of 2023, including CCC® Estimate-STP. The client will be transitioning services from multiple vendors onto CCC’s platform and reflects the significant opportunity and numerous ways available to CCC to expand its solutions with the U.S.’s largest insurers.

• CCC is a leader in the Casualty solutions market and recently rolled out a new computer vision AI technology for Casualty claims that can predict potential physical injuries to the occupants of a vehicle involved in an accident based on photos of the damaged vehicles. In the second quarter of 2023, CCC added and expanded Casualty relationships with new and existing customers.

• CCC continued to grow the breadth and depth of its network during the second quarter of 2023 by expanding the participation of 2 leading OEMs and signing a multi-year extension with one of the leading aftermarket parts suppliers. In addition, CCC has added nearly 1,000 repair facilities year to date. CCC’s total customer count now exceeds 35,000 and includes over 29,000 repair facilities, over 4,500 parts suppliers, more than 300 insurers, and 13 of the top-15 automotive OEMs. By connecting these companies and digitizing processes across the ecosystem, CCC’s platform increases their ability to be productive, reduce leakage, and improve communication throughout the P&C insurance economy – which ultimately can result in claims being resolved faster.

Business Outlook

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

		Third Quarter Fiscal 2023				Full Year Fiscal 2023
Revenue		$	215 million to $217 million			$	851 million to $855 million
Adjusted EBITDA		$	86 million to $88 million			$	337 million to $341 million

Conference Call Information

CCC will host a conference call today, August 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 35,000 businesses digitizing mission-critical workflows, commerce, and customer experiences. A trusted leader in AI, IoT, customer experience, network and workflow management, CCC delivers innovations that keep people’s lives moving forward when it matters most. Learn more about CCC at www.cccis.com.

Forward Looking Statements

This press release contains forward-looking statements that are based on beliefs and assumptions and on information currently available. In some cases, you can identify forward-looking statements by the following words: “may,” “will,” “could,” “would,” “should,” “expect,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “project,” “potential,” “continue,” “ongoing” or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words. These statements involve risks, uncertainties and other factors that may cause actual results, levels of activity, performance or achievements to be materially different from the information expressed or implied by these forward-looking statements. Forward-looking statements in this press release include, but are not limited to, future events, goals, plans and projections regarding the Company’s financial position, results of operations, market position, product development and business strategy. Such differences may be material. We cannot assure you that the forward-looking statements in this press release will prove to be accurate. These forward looking statements are subject to a number of risks and uncertainties, including, among others, our revenues, the concentration of our customers and the ability to retain our current customers; our ability to negotiate with our customers on favorable terms; our ability to maintain and grow our brand and reputation cost-effectively; the execution of our growth strategy; our projected financial information, growth rate and market opportunity; the health of our industry, claim volumes, and market conditions; changes in the insurance and automotive collision industries, including the adoption of new technologies; global economic conditions and geopolitical events; competition in our market and our ability to retain and grow market share; our ability to develop, introduce and market new enhanced versions of our solutions and products; our sales and implementation cycles; the ability of our research and development efforts to create significant new revenue streams; changes in applicable laws or regulations; changes in international economic, political, social and governmental conditions and policies, including corruption risks in China and other countries; currency fluctuations; our reliance on third-party data, technology and intellectual property; our ability to protect our intellectual property; our ability to keep our data and information systems secure from data security breaches; our ability to acquire or invest in companies or pursue business partnerships; our ability to raise financing in the future and improve our capital structure; our success in retaining or recruiting, or changes required in, our officers, key employees or directors; our estimates regarding expenses, future revenue, capital requirements and needs for additional financing; our ability to expand or maintain our existing customer base; our ability to service our indebtedness; and other risks and uncertainties, including those included under the header “Risk Factors” in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022 filed with the Securities and Exchange Commission (“SEC”), which can be obtained, without charge, at the SEC’s website (www.sec.gov), and in our other filings with the SEC. The forward-looking statements in this press release represent our views as of the date of this press release. We anticipate that subsequent events and developments will cause our views to change. However, while we may elect to update these forward-looking statements at some point in the future, we have no current intention of doing so except to the extent required by applicable law. You should, therefore, not rely on these forward-looking statements as representing our views as of any date subsequent to the date of this press release.

Non-GAAP Financial Measures

This press release includes certain financial measures not presented in accordance with generally accepted accounting principles in the U.S. (“GAAP”), including, but not limited to, “adjusted EBITDA,” “adjusted net income,” “adjusted operating income,” “adjusted gross profit,” “adjusted gross profit margin,” “adjusted operating expenses,” and “free cash flow” in each case presented on a non-GAAP basis, and certain ratios and other metrics derived therefrom. These non-GAAP financial measures are not measures of financial performance in accordance with GAAP and may exclude items that are significant in understanding and assessing the Company’s financial results. Therefore, these measures should not be considered in isolation or as an alternative to other measures of profitability, liquidity or performance under GAAP. You should be aware that the Company’s calculation of these non-GAAP measures may not be comparable to similarly-titled measures used by other companies.

The Company believes these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to the Company’s financial condition and results of operations. The Company believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends in and in comparing the Company’s financial measures with other similar companies, many of which present similar non-GAAP financial measures to investors. These non-GAAP financial measures are subject to inherent limitations as they reflect the exercise of judgments by management about which expense and income are excluded or included in determining these non-GAAP financial measures. Please refer to the reconciliations of these measures below to what the Company believes are the most directly comparable measures evaluated in accordance with GAAP.

This press release also includes certain projections of non-GAAP financial measures. Due to the high variability and difficulty in making accurate forecasts and projections of some of the information excluded from these projected measures, together with some of the excluded information not being ascertainable or accessible, the Company is unable to quantify certain amounts that would be required to be included in the most directly comparable GAAP financial measures without unreasonable effort. Consequently, no disclosure of estimated comparable GAAP measures is included and no reconciliation of the forward-looking non-GAAP financial measures is included for these projections.

CCC INTELLIGENT SOLUTIONS HOLDINGS INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except share data)
		June 30,				December 31,
			2023				2022
		(Unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents		$	403,577			$	323,788
Accounts receivable—Net of allowances of $5,874 and $5,339 as of June 30, 2023 and December 31, 2022, respectively			96,139				98,353
Income taxes receivable			5,830				4,015
Deferred contract costs			16,871				16,556
Other current assets			29,240				36,358
Total current assets			551,657				479,070
SOFTWARE, EQUIPMENT, AND PROPERTY—Net			153,539				146,443
OPERATING LEASE ASSETS			31,647				32,874
INTANGIBLE ASSETS—Net			1,064,064				1,118,819
GOODWILL			1,417,724				1,495,129
DEFERRED FINANCING FEES, REVOLVER—Net			1,979				2,286
DEFERRED CONTRACT COSTS			19,480				20,161
EQUITY METHOD INVESTMENT			10,228				10,228
OTHER ASSETS			52,072				45,911
TOTAL		$	3,302,390			$	3,350,921
LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable		$	19,084			$	27,599
Accrued expenses			54,711				71,445
Income taxes payable			3,509				922
Current portion of long-term debt			8,000				8,000
Current portion of long-term licensing agreement—Net			2,967				2,876
Operating lease liabilities			7,049				5,484
Deferred revenues			40,064				35,239
Total current liabilities			135,384				151,565
LONG-TERM DEBT—Net			770,787				774,132
DEFERRED INCOME TAXES—Net			217,907				241,698
LONG-TERM LICENSING AGREEMENT—Net			29,246				30,752
OPERATING LEASE LIABILITIES			52,431				54,245
WARRANT LIABILITIES			55,585				36,405
OTHER LIABILITIES			1,550				2,658
Total liabilities			1,262,890				1,291,455
COMMITMENTS AND CONTINGENCIES (Notes 19 and 20)
MEZZANINE EQUITY:
Redeemable non-controlling interest			14,494				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; 631,982,491 and 622,072,905 shares issued and outstanding at June 30, 2023 and December 31, 2022, respectively			63				62
Additional paid-in capital			2,829,184				2,754,055
Accumulated deficit			(803,106)				(707,946)
Accumulated other comprehensive loss			(1,135)				(884)
Total stockholders’ equity			2,025,006				2,045,287
TOTAL		$	3,302,390			$	3,350,921

CCC INTELLIGENT SOLUTIONS HOLDINGS INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (In thousands, except share and per share data) (Unaudited)
		For the Three Months Ended						For the Six Months Ended
		June 30,						June 30,
			2023			2022			2023			2022
REVENUES		$	211,710		$	192,786		$	416,630		$	379,609
COST OF REVENUES
Cost of revenues, exclusive of amortization and impairment of acquired technologies			52,047			46,095			102,494			88,795
Amortization of acquired technologies			6,646			6,750			13,331			13,445
Impairment of acquired technologies			431			—			431			—
Total cost of revenues			59,124			52,845			116,256			102,240
GROSS PROFIT			152,586			139,941			300,374			277,369
OPERATING EXPENSES:
Research and development			43,363			38,758			84,359			74,438
Selling and marketing			35,936			31,091			69,467			57,894
General and administrative			46,141			39,509			88,006			83,717
Amortization of intangible assets			18,022			18,066			36,088			36,146
Impairment of goodwill			77,405			—			77,405			—
Impairment of intangible assets			4,906			—			4,906			—
Total operating expenses			225,773			127,424			360,231			252,195
OPERATING (LOSS) INCOME			(73,187)			12,517			(59,857)			25,174
INTEREST EXPENSE			(14,014)			(7,944)			(27,846)			(15,285)
INTEREST INCOME			4,023			—			7,282			—
CHANGE IN FAIR VALUE OF DERIVATIVE INSTRUMENTS			3,613			—			1,009			—
CHANGE IN FAIR VALUE OF WARRANT LIABILITIES			(20,375)			21,004			(19,180)			23,140
GAIN ON SALE OF COST METHOD INVESTMENT			—			—			—			3,578
OTHER INCOME—Net			315			112			368			194
PRETAX (LOSS) INCOME			(99,625)			25,689			(98,224)			36,801
INCOME TAX BENEFIT (PROVISION)			2,281			(10,125)			3,064			(9,262)
NET (LOSS) INCOME INCLUDING NON-CONTROLLING INTEREST			(97,344)			15,564			(95,160)			27,539
LESS: ACCRETION OF REDEEMABLE NON-CONTROLLING INTEREST			(315)			—			(315)			—
NET (LOSS) INCOME ATTRIBUTABLE TO CCC INTELLIGENT SOLUTIONS HOLDINGS INC. COMMON STOCKHOLDERS		$	(97,659)		$	15,564		$	(95,475)		$	27,539
Net (loss) income per share attributable to common stockholders:
Basic		$	(0.16)		$	0.03		$	(0.15)		$	0.05
Diluted		$	(0.16)		$	0.02		$	(0.15)		$	0.04
Weighted-average shares used in computing net (loss) income per share attributable to common stockholders:
Basic			621,235,776			605,948,628			618,740,340			604,534,589
Diluted			621,235,776			639,964,696			618,740,340			640,650,297
COMPREHENSIVE (LOSS) INCOME:
Net (loss) income including non-controlling interest			(97,344)			15,564			(95,160)			27,539
Other comprehensive income (loss)—Foreign currency translation adjustment			(285)			(303)			(251)			(294)
COMPREHENSIVE (LOSS) INCOME INCLUDING NON-CONTROLLING INTEREST			(97,629)			15,261			(95,411)			27,245
Less: accretion of redeemable non-controlling interest			(315)			—			(315)			—
COMPREHENSIVE (LOSS) INCOME ATTRIBUTABLE TO CCC INTELLIGENT SOLUTIONS HOLDINGS INC. COMMON STOCKHOLDERS		$	(97,944)		$	15,261		$	(95,726)		$	27,245

CCC INTELLIGENT SOLUTIONS HOLDINGS INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited)
		For the Six Months Ended
		June 30,
			2023			2022
CASH FLOWS FROM OPERATING ACTIVITIES:
Net (loss) income		$	(95,160)		$	27,539
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization of software, equipment, and property			17,966			13,490
Amortization of intangible assets			49,419			49,591
Impairment of goodwill and intangible assets			82,742			—
Deferred income taxes			(23,791)			(43,703)
Stock-based compensation			64,720			52,047
Amortization of deferred financing fees			851			949
Amortization of discount on debt			111			131
Change in fair value of derivative instruments			(1,009)			—
Change in fair value of warrant liabilities			19,180			(23,140)
Non-cash lease expense			1,232			2,152
Loss on disposal of software, equipment and property			—			795
Gain on sale of cost method investment			—			(3,578)
Other			115			47
Changes in:
Accounts receivable—Net			2,322			(4,027)
Deferred contract costs			(315)			(952)
Other current assets			7,116			15,463
Deferred contract costs—Non-current			681			2,248
Other assets			(5,267)			(9,935)
Operating lease assets			(5)			1,576
Income taxes			772			13,851
Accounts payable			(8,534)			3,204
Accrued expenses			(14,975)			(7,949)
Operating lease liabilities			(249)			(4,308)
Deferred revenues			4,825			2,256
Other liabilities			(115)			(62)
Net cash provided by operating activities			102,632			87,685
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of software, equipment, and property			(29,084)			(25,469)
Acquisition of Safekeep, Inc., net of cash acquired			—			(32,242)
Proceeds from sale of cost method investment			—			3,892
Net cash used in investing activities			(29,084)			(53,819)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercise of stock options			20,827			15,511
Proceeds from employee stock purchase plan			1,326			—
Payments for employee taxes withheld upon vesting of equity awards			(11,539)			—
Principal payments on long-term debt			(4,000)			(4,000)
Net cash provided by financing activities			6,614			11,511
NET EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS			(373)			(281)
NET CHANGE IN CASH AND CASH EQUIVALENTS			79,789			45,096
CASH AND CASH EQUIVALENTS:
Beginning of period			323,788			182,544
End of period		$	403,577		$	227,640
NONCASH INVESTING AND FINANCING ACTIVITIES:
Noncash purchases of software, equipment, and property		$	550		$	—
Contingent consideration related to business acquisition		$	—		$	200
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid for interest		$	26,946		$	14,153
Cash paid for income taxes—Net		$	19,954		$	38,946

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 June 30,						Six Months Ended June 30,
(amounts in thousands, except percentages)			2023			2022			2023			2022
Gross Profit		$	152,586		$	139,941		$	300,374		$	277,369
Amortization of acquired technologies			6,646			6,750			13,331			13,445
Impairment of acquired technologies			431			—			431			—
Stock-based compensation and related employer payroll tax			2,358			1,680			4,473			2,613
Adjusted Gross Profit		$	162,021		$	148,371		$	318,609		$	293,427
Gross Profit Margin			72%			73%			72%			73%
Adjusted Gross Profit Margin			77%			77%			76%			77%

CCC INTELLIGENT SOLUTIONS HOLDINGS INC. AND SUBSIDIARIES RECONCILIATION OF GAAP OPERATING EXPENSES TO ADJUSTED OPERATING EXPENSES (In thousands) (Unaudited)
		Three Months Ended June 30,						Six Months Ended June 30,
(dollar amounts in thousands)			2023			2022			2023			2022
Operating expenses		$	225,773		$	127,424		$	360,231		$	252,195
Amortization of intangible assets			(18,022)			(18,066)			(36,088)			(36,146)
Impairment of goodwill			(77,405)			—			(77,405)			—
Impairment of intangible assets			(4,906)			—			(4,906)			—
Stock-based compensation expense and related employer payroll tax			(33,706)			(26,973)			(62,799)			(50,695)
Plaintiff litigation costs			(1,537)			—			(2,523)			—
M&A and integration costs			—			(348)			—			(1,756)
Lease overlap costs			—			—			—			(1,222)
Lease abandonment			—			—			—			(1,338)
Business Combination transaction and related costs			—			(324)			—			(1,056)
Net costs related to divestiture			—			6			—			(53)
Adjusted operating expenses		$	90,197		$	81,719		$	176,510		$	159,929

CCC INTELLIGENT SOLUTIONS HOLDINGS INC. AND SUBSIDIARIES RECONCILIATION OF GAAP OPERATING (LOSS) INCOME TO ADJUSTED OPERATING INCOME (In thousands) (Unaudited)
		Three Months Ended June 30,						Six Months Ended June 30,
(dollar amounts in thousands)			2023			2022			2023				2022
Operating (loss) income		$	(73,187)		$	12,517		$	(59,857)		$		25,174
Amortization of intangible assets			18,022			18,066			36,088				36,146
Amortization of acquired technologies—Cost of revenue			6,646			6,750			13,331				13,445
Impairment of acquired technologies—Cost of revenue			431			—			431				—
Impairment of goodwill			77,405			—			77,405				—
Impairment of intangible assets			4,906			—			4,906				—
Stock-based compensation expense and related employer payroll tax			36,064			28,653			67,272				53,308
Plaintiff litigation costs			1,537			—			2,523				—
M&A and integration costs			—			348			—				1,756
Lease overlap costs			—			—			—				1,222
Lease abandonment			—			—			—				1,338
Business Combination transaction and related costs			—			324			—				1,056
Net costs related to divestiture			—			(6)			—				53
Adjusted operating income		$	71,824		$	66,652		$	142,099		$		133,498

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 June 30,						Six Months Ended June 30,
(dollar amounts in thousands)			2023			2022			2023			2022
Net (loss) income		$	(97,344)		$	15,564		$	(95,160)		$	27,539
Interest expense			14,014			7,944			27,846			15,285
Interest income			(4,023)			—			(7,282)			—
Income tax (benefit) provision			(2,281)			10,125			(3,064)			9,262
Amortization of intangible assets			18,022			18,066			36,088			36,146
Amortization of acquired technologies—Cost of revenue			6,646			6,750			13,331			13,445
Depreciation and amortization of software, equipment and property			2,187			2,444			4,414			5,407
Depreciation and amortization of software, equipment and property—Cost of revenue			6,573			4,239			13,552			8,083
EBITDA			(56,206)			65,132			(10,275)			115,167
Stock-based compensation expense and related employer payroll tax			36,064			28,653			67,272			53,308
Impairment of acquired technologies—Cost of revenue			431			—			431			—
Impairment of goodwill			77,405			—			77,405			—
Impairment of intangible assets			4,906			—			4,906			—
Change in fair value of derivative instruments			(3,613)			—			(1,009)			—
Plaintiff litigation costs			1,537			—			2,523			—
Change in fair value of warrant liabilities			20,375			(21,004)			19,180			(23,140)
M&A and integration costs			—			348			—			1,756
Lease overlap costs			—			—			—			1,222
Lease abandonment			—			—			—			1,338
Business Combination transaction and related costs			—			324			—			1,056
Net costs related to divestiture			—			(6)			—			53
Gain on sale of cost method investment			—			—			—			(3,578)
Adjusted EBITDA		$	80,899		$	73,447		$	160,433		$	147,182
Adjusted EBITDA Margin			38%			38%			39%			39%

CCC INTELLIGENT SOLUTIONS HOLDINGS INC. AND SUBSIDIARIES RECONCILIATION OF GAAP NET (LOSS) INCOME TO ADJUSTED NET INCOME (In thousands, except share and per share data) (Unaudited)
		Three Months Ended June 30,						Six Months Ended June 30,
(dollar amounts in thousands)			2023			2022			2023			2022
Net (loss) income		$	(97,344)		$	15,564		$	(95,160)		$	27,539
Amortization of intangible assets			18,022			18,066			36,088			36,146
Amortization of acquired technologies—Cost of revenue			6,646			6,750			13,331			13,445
Impairment of acquired technologies—Cost of revenue			431			—			431			—
Impairment of goodwill			77,405			—			77,405			—
Impairment of intangible assets			4,906			—			4,906			—
Stock-based compensation expense and related employer payroll tax			36,064			28,653			67,272			53,308
Change in fair value of derivative instruments			(3,613)			—			(1,009)			—
Plaintiff litigation costs			1,537			—			2,523			—
Change in fair value of warrant liabilities			20,375			(21,004)			19,180			(23,140)
M&A and integration costs			—			348			—			1,756
Lease overlap costs			—			—			—			1,222
Lease abandonment			—			—			—			1,338
Business Combination transaction and related costs			—			324			—			1,056
Net costs related to divestiture			—			(6)			—			53
Gain on sale of cost method investment			—			—			—			(3,578)
Tax effect of adjustments			(16,587)			(11,287)			(30,633)			(22,867)
Adjusted net income		$	47,842		$	37,408		$	94,334		$	86,278
Adjusted net income per share attributable to common stockholders:
Basic		$	0.08		$	0.06		$	0.15		$	0.14
Diluted		$	0.07		$	0.06		$	0.15		$	0.13
Weighted average shares outstanding:
Basic			621,235,776			605,948,628			618,740,340			604,534,589
Diluted			651,427,506			639,964,696			648,887,781			640,650,297

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 June 30,						Six Months Ended June 30,
(dollar amounts in thousands)			2023			2022			2023			2022
Net cash provided by operating activities		$	69,554		$	40,820		$	102,632		$	87,685
Less: Purchases of software, equipment, and property			(14,560)			(11,189)			(29,084)			(25,469)
Free Cash Flow		$	54,994		$	29,631		$	73,548		$	62,216

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20230731741923/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 CCC's financial results for Q2 2023?

CCC reported 10% YoY revenue growth and 38% adjusted EBITDA margin for Q2 2023.

How is CCC's use of AI helping customers?

CCC's use of AI is helping customers reduce cycle time and administrative costs in the claims process.

Did CCC add new customers in Q2 2023?

Yes, CCC added new customers and expanded relationships in the Casualty solutions market.

How many customers does CCC have?

CCC's total customer count now exceeds 35,000.