CCC Intelligent Solutions Holdings Inc. Announces Third Quarter Fiscal 2021 Financial Results

Rhea-AI Summary

CCC Intelligent Solutions Holdings reported financial results for Q3 2021, highlighting an 18% revenue growth to $176.6 million and a 31% increase in adjusted EBITDA to $70.1 million. The company saw a gross margin of 67%, down slightly from the previous year, while adjusted gross profit rose to $138.4 million with a margin of 78%. Notably, CCC refinanced its debt, lowering interest rates from 4.0% to 3.0%. For Q4 2021, revenue guidance is set between $182 million and $184 million, with expected year-over-year growth of 10% to 11%.

Positive

• 18% revenue growth to $176.6 million in Q3 2021.
• Adjusted EBITDA grew 31% to $70.1 million.
• Gross margin maintained at 67%; adjusted gross margin increased to 78%.
• Successfully refinanced debt, reducing effective interest rate from 4.0% to 3.0%.
• Multi-year renewals signed with a Top 5 insurer and one of the largest multi-store operators.

Negative

• GAAP net loss increased to $189.8 million from net income of $4.7 million in Q3 2020.
• GAAP operating loss was $189.2 million compared to operating income of $23.1 million in Q3 2020.
• Cash from operating activities decreased to $36.9 million from $43.0 million in Q3 2020.
• Free cash flow declined to $25.0 million from $31.7 million in Q3 2020.

CHICAGO--(BUSINESS WIRE)-- CCC Intelligent Solutions Holdings Inc. (CCC) (NYSE: CCCS), a leading SaaS platform for the P&C insurance economy, today announced its financial results for the three months ended September 30, 2021.

“CCC continued to perform at a high level in the third quarter, highlighted by 18% adjusted revenue growth and 31% adjusted EBITDA growth. We continue to see strong adoption of our expanding product portfolio as demand for cloud-based solutions to digitize workflows increases across the P&C insurance economy,” said Githesh Ramamurthy, Chairman & CEO of CCC.

Ramamurthy continued, “Our performance demonstrates the power of our growth model and we will continue to invest in the business to benefit our customers. We are thrilled with the pace of product innovation and the quality of customer feedback, giving us great confidence in our growth potential.”

Third Quarter 2021 Financial Highlights

Revenue

• Total revenue was $176.6 million for the third quarter of 2021, compared to $157.8 million for the third quarter of 2020. Adjusted for the impact of the divestiture of a portion of our professional services casualty solution in December 2020, total revenue grew 18% in the third quarter of 2021.

Profitability

• GAAP gross profit was $118.8 million, representing a gross margin of 67%, for the third quarter of 2021, compared with $107.3 million, representing a gross margin of 68%, for the third quarter of 2020. Adjusted gross profit was $138.4 million, representing an adjusted gross margin of 78%, for the third quarter of 2021, compared with $113.4 million, representing an adjusted gross margin of 76%, for the third quarter of 2020.
• GAAP operating loss was $189.2 million for the third quarter of 2021, compared with GAAP operating income of $23.1 million for the third quarter of 2020. Adjusted operating income was $62.5 million for the third quarter of 2021, compared with adjusted operating income of $49.1 million for the third quarter of 2020.
• GAAP net loss was $189.8 million for the third quarter of 2021, compared with GAAP net income of $4.7 million for the third quarter of 2020. Adjusted net income was $29.7 million for the third quarter of 2021, compared with $21.1 million for the third quarter of 2020.
• Adjusted EBITDA was $70.1 million for the third quarter of 2021, compared with adjusted EBITDA of $53.6 million for the third quarter of 2020. Adjusted EBITDA grew 31% in the third quarter of 2021 as compared to the third quarter of 2020.

Liquidity

• CCC had $160.5 million in cash and cash equivalents and $800.0 million of total debt at September 30, 2021. The Company generated $36.9 million in cash from operating activities and had free cash flow of $25.0 million during the third quarter of 2021, compared with $43.0 million generated in cash from operating activities and $31.7 million in free cash flow in the third quarter of 2020.

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.

3^rd Quarter and Recent Business Highlights

• Announced the first touchless estimating experience in the industry. The AI-powered CCC® Estimate-STP uses advanced AI and insurer-driven rules to automatically initiate and populate detailed and actionable estimates in seconds. In market with four national insurers, CCC Estimate-STP offers touchless line level estimates from photos and is part of CCC’s broader offering that is digitizing the auto claims experience.
• Signed multi-year renewals with a Top 5 insurer and one of the country’s largest multi-store operators, or MSOs. As part of the multi-year agreements these customers have meaningfully expanded their annual commitment to CCC as they broadened the number of solutions they utilize from the platform.
• Partnered with Toyota to deliver Collision Assistance, a just-in-time support service, which is now available to drivers within the Toyota and Lexus mobile apps. The CCC mobile technology combines guided accident documentation and access to claims and management services to assist drivers following a collision. This is an example of how CCC is delivering innovation that expands our ecosystem beyond traditional insurer and repair facility customers.
• Successfully completed the refinancing of its existing secured credit facility with a new credit agreement comprised of an $800 million senior secured term loan facility (the “Term Loan”) and a $250 million senior secured revolving credit facility (the “Revolving Facility”) that lowered our effective interest rate from 4.0% to 3.0%.

Business Outlook

Based on information as of today, November 10, 2021, the Company is issuing the following financial guidance:

	Fourth Quarter Fiscal 2021		Full Year Fiscal 2021
Revenue	$182 million to $184 million		$683 million to $685 million
Adjusted EBITDA	$69 million to $71 million		$255 million to $257 million

Year-over-year revenue growth for the fourth quarter of 2021 is forecasted to be 10% - 11%, or 16% - 17% when adjusted for the impact of the divestiture of a portion of our casualty solution (specifically, First Party Clinical Services) in December 2020. Year-over-year revenue growth for the full year 2021 is forecasted to be 8%, or 14% on an adjusted basis. First Party Clinical Services revenue was $8.6 million and $34.7 million for our fiscal fourth quarter and full year 2020, respectively.

Conference Call Information

CCC will host a conference call today, November 10, 2021, at 5:00 p.m. (Eastern Time) to discuss the Company’s financial results and financial guidance. To access this call, dial 877-407-0784 (domestic) or 201-689-8560 (international). The conference ID number is 13723556. 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. (CCC), a subsidiary of CCC Intelligent Solutions Holdings Inc. (NYSE: 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, statements regarding 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, the general economic, political, business and competitive conditions; the impact of COVID-19 on CCC’s business; failure to realize the anticipated benefits of the business combination of CCC’s parent corporation and Dragoneer Growth Opportunities Corp. (the “business combination”); costs related to the business combination; the ability of the Company to grow and manage growth profitably and retain its key employees; the risk that the adoption of CCC® Estimate-STP does not occur on the expected timing; the risk that the Company fails to realize the expected benefits of customer renewals and expanding the Company’s customer base; the inability to maintain CCC’s listing of securities on the NYSE; changes in applicable laws or regulations; and other risks and uncertainties, including those included under the header “Risk Factors” in the definitive proxy statement/prospectus filed by Dragoneer Growth Opportunities Corp. with the Securities and Exchange Commission (“SEC”) on July 6, 2021, which can be obtained, without charge, at the SEC’s website (www.sec.gov). The forward-looking statements in this press release represent our views as of the date of this press release. We anticipate that subsequent events and developments will cause our views to change. However, while we may elect to update these forward-looking statements at some point in the future, we have no current intention of doing so except to the extent required by applicable law. You should, therefore, not rely on these forward-looking statements as representing our views as of any date subsequent to the date of this press release.

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,” 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)
		September 30,				December 31,
		2021				2020
		(Unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents		$	160,465			$	162,118
Accounts receivable—Net of allowances of $3,972 and $4,224 for September 30, 2021 and December 31, 2020, respectively			82,367				74,107
Income taxes receivable			6,915				2,037
Deferred contract costs			13,833				11,917
Other current assets			36,261				31,586
Total current assets			299,841				281,765
SOFTWARE, EQUIPMENT, AND PROPERTY—Net			121,018				101,438
OPERATING LEASE ASSETS			38,774				-
INTANGIBLE ASSETS—Net			1,237,950				1,311,917
GOODWILL			1,466,884				1,466,884
DEFERRED FINANCING FEES, REVOLVER—Net			3,053				746
DEFERRED CONTRACT COSTS			18,893				14,389
EQUITY METHOD INVESTMENT			10,228				-
OTHER ASSETS			21,584				18,416
TOTAL		$	3,218,225			$	3,195,555
LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable		$	16,083			$	13,164
Accrued expenses			81,771				52,987
Income taxes payable			7,161				5,129
Current portion of long-term debt			8,000				25,381
Current portion of long-term licensing agreement—Net			2,661				2,540
Operating lease liabilities			8,855				-
Deferred revenues			29,384				26,514
Total current liabilities			153,915				125,715
LONG-TERM DEBT:
First Lien Term Loan—Net			-				1,292,597
Term B Loan—Net			780,218				-
Total long-term debt			780,218				1,292,597
DEFERRED INCOME TAXES—Net			255,849				322,348
LONG-TERM LICENSING AGREEMENT—Net			34,320				36,331
OPERATING LEASE LIABILITIES			50,550				-
WARRANT LIABILITIES			85,348				-
OTHER LIABILITIES			6,808				32,770
Total liabilities			1,367,008				1,809,761
COMMITMENTS AND CONTINGENCIES (Notes 22 and 23)
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; 603,170,380 and 504,274,890 shares issued
and outstanding at September 30, 2021 and December 31, 2020, respectively			60				50
Additional paid-in capital			2,525,750				1,501,206
Accumulated deficit			(688,483	)			(129,370	)
Accumulated other comprehensive loss			(289	)			(271	)
Total stockholders’ equity			1,837,038				1,371,615
TOTAL		$	3,218,225			$	3,195,555

CCC INTELLIGENT SOLUTIONS HOLDINGS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME (In thousands, except share and per share data) (Unaudited)
	For the Three Months Ended								For the Nine Months Ended
	September 30,								September 30,
		2021				2020				2021				2020
REVENUES	$	176,628			$	157,754			$	501,205			$	467,677
COST OF REVENUES
Cost of revenues, exclusive of amortization of acquired technologies		51,273				43,879				128,218				135,674
Amortization of acquired technologies		6,580				6,576				19,740				19,725
Total cost of revenues		57,853				50,455				147,958				155,399
GROSS PROFIT		118,775				107,299				353,247				312,278
OPERATING EXPENSES:
Research and development		67,016				26,816				128,894				82,131
Selling and marketing		80,382				17,427				121,350				56,608
General and administrative		142,511				21,893				208,745				66,460
Amortization of intangible assets		18,078				18,078				54,232				54,232
Total operating expenses		307,987				84,214				513,221				259,431
OPERATING (LOSS) INCOME		(189,212	)			23,085				(159,974	)			52,847
INTEREST EXPENSE		(13,878	)			(19,788	)			(51,548	)			(57,588	)
GAIN (LOSS) ON CHANGE IN FAIR VALUE OF INTEREST RATE SWAPS		2,007				3,894				8,373				(16,633	)
CHANGE IN FAIR VALUE OF WARRANT LIABILITIES		(26,889	)			-				(26,889	)			-
LOSS ON EARLY EXINGUISHMENT OF DEBT		(15,240	)			-				(15,240	)			(8,615	)
OTHER (EXPENSE) INCOME—Net		(93	)			49				1				304
PRETAX (LOSS) INCOME		(243,305	)			7,240				(245,277	)			(29,685	)
INCOME TAX BENEFIT (PROVISION)		53,523				(2,520	)			54,227				7,191
NET (LOSS) INCOME INCLUDING NON-CONTROLLING INTEREST		(189,782	)			4,720				(191,050	)			(22,494	)
Less: net (loss) income attributable to non-controlling interest		-				-				-				-
NET (LOSS) INCOME ATTRIBUTABLE TO CCC INTELLIGENT SOLUTIONS
HOLDINGS INC.	$	(189,782	)		$	4,720			$	(191,050	)		$	(22,494	)
Net (loss) income per share attributable to common stockholders:
Basic	$	(0.34	)		$	0.01			$	(0.36	)		$	(0.04	)
Diluted	$	(0.34	)		$	0.01			$	(0.36	)		$	(0.04	)
Weighted-average shares used in computing net (loss) income per
share attributable to common stockholders:
Basic		566,454,782				504,212,021				525,877,533				504,062,587
Diluted		566,454,782				510,694,493				525,877,533				504,062,587
COMPREHENSIVE (LOSS) INCOME:
Net (loss) income including non-controlling interest		(189,782	)			4,720				(191,050	)			(22,494	)
Other comprehensive income (loss)—Foreign currency translation adjustment		11				83				(18	)			65
COMPREHENSIVE (LOSS) INCOME INCLUDING NON-CONTROLLING INTEREST		(189,771	)			4,803				(191,068	)			(22,429	)
Less: comprehensive (loss) income attributable to non-controlling interest		-				-				-				-
COMPREHENSIVE (LOSS) INCOME ATTRIBUTABLE TO CCC INTELLIGENT
SOLUTIONS HOLDINGS INC.	$	(189,771	)		$	4,803			$	(191,068	)		$	(22,429	)

 

CCC INTELLIGENT SOLUTIONS HOLDINGS INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited)
		For the Nine Months Ended
		September 30,
			2021					2020
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss		$	(191,050	)			$	(22,494	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization of software, equipment, and property			18,161					13,039
Amortization of intangible assets			73,972					73,957
Deferred income taxes			(66,499	)				(18,018	)
Stock-based compensation			235,413					7,471
Amortization of deferred financing fees			3,204					3,475
Amortization of discount on debt			537					553
Change in fair value of interest rate swaps			(8,373	)				16,633
Change in fair value of warrant liabilities			26,889					-
Loss on early extinguishment of debt			15,240					8,615
Non-cash lease expense			5,029					-
Other			54					42
Changes in:
Accounts receivable—Net			(8,332	)				(12,644	)
Deferred contract costs			(1,916	)				(507	)
Other current assets			(4,673	)				(755	)
Deferred contract costs—Non-current			(4,504	)				(1,246	)
Other assets			(3,221	)				(10,795	)
Operating lease assets			5,133					-
Income taxes			(2,846	)				11,597
Accounts payable			1,399					2,080
Accrued expenses			17,051					(5,183	)
Operating lease liabilities			(5,935	)				-
Deferred revenues			2,861					580
Extinguishment of interest rate swap liability			(9,987	)				-
Other liabilities			(882	)				389
Net cash provided by operating activities			96,725					66,789
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of software, equipment, and property			(25,022	)				(23,815	)
Purchase of equity method investment			(10,228	)				-
Purchase of intangible asset			(49	)				(560	)
Net cash used in investing activities			(35,299	)				(24,375	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of non-controlling interest in subsidiary			-					14,179
Deemed distribution to CCCIS option holders			(9,006	)				-
Net proceeds from equity infusion from the Business Combination			763,300					-
Principal payments on long-term debt			(1,336,154	)				(385,385	)
Proceeds from issuance of long-term debt, net of fees paid to lender			789,927					369,792
Proceeds from borrowings on revolving lines of credit			-					65,000
Repayment of borrowings on revolving lines of credit			-					(65,000	)
Proceeds from issuance of common stock			1,007					-
Payment of fees associated with early extinguishment of long-term debt			(3,320	)				(29	)
Proceeds from exercise of stock options			503					618
Repurchases of common stock			-					(123	)
Dividends to CCCIS stockholders			(269,174	)				-
Net cash used in financing activities			(62,917	)				(948	)
NET EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS			(162	)				108
NET CHANGE IN CASH AND CASH EQUIVALENTS			(1,653	)				41,574
CASH AND CASH EQUIVALENTS:
Beginning of period			162,118					93,201
End of period		$	160,465				$	134,775
NONCASH INVESTING AND FINANCING ACTIVITIES:
Unpaid liability related to software, equipment, and property		$	4,054				$	-
Leasehold improvements acquired by tenant improvement allowance		$	10,556				$	-
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid for interest, excluding extinguishment of interest rate swap liability		$	47,312				$	52,217
Cash received (paid) for income taxes—Net		$	(15,119	)			$	770

 

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 September 30,								Nine months ended September 30,
(amounts in thousands, except percentages)			2021				2020				2021				2020
Gross Profit		$	118,775			$	107,299			$	353,247			$	312,278
First Party Clinical Services—Gross Profit			-				(645	)			-				(3,035	)
Amortization of acquired technologies			6,580				6,576				19,740				19,725
Business combination transaction costs			905				-				905				-
Stock-based compensation			12,169				141				12,563				380
Adjusted Gross Profit		$	138,429			$	113,371			$	386,455			$	329,348
Gross Profit Margin			67	%			68	%			70	%			67	%
Adjusted Gross Profit Margin			78	%			76	%			77	%			75	%

CCC INTELLIGENT SOLUTIONS HOLDINGS INC. AND SUBSIDIARIES RECONCILIATION OF GAAP OPERATING (LOSS) INCOME TO ADJUSTED OPERATING INCOME (In thousands) (Unaudited)
		Three months ended September 30,								Nine months ended September 30,
(dollar amounts in thousands)			2021				2020				2021				2020
Net operating (loss) income		$	(189,212	)		$	23,085			$	(159,974	)		$	52,847
Stock-based compensation expense			219,876				1,869				235,413				7,471
Lease abandonment			438				-				2,256				-
Lease overlap costs			924				-				2,773				-
Net costs related to divestiture			338				-				2,605				-
Business combination transaction costs			5,516				93				10,471				93
Amortization of intangible assets			18,078				18,078				54,232				54,232
Amortization of acquired technologies—Cost of revenue			6,580				6,576				19,740				19,725
First Party Clinical Services—Revenue			-				(7,830	)			-				(26,083	)
First Party Clinical Services—Cost of revenue			-				7,185				-				23,048
Adjusted operating income		$	62,538			$	49,056			$	167,516			$	131,333

CCC INTELLIGENT SOLUTIONS HOLDINGS INC. AND SUBSIDIARIES RECONCILIATION OF NET (LOSS) INCOME TO ADJUSTED EBITDA (In thousands) (Unaudited)
		Three months ended September 30,								Nine months ended September 30,
(dollar amounts in thousands)			2021				2020				2021				2020
Net (loss) income		$	(189,782	)		$	4,720			$	(191,050	)		$	(22,494	)
Interest expense			13,878				19,788				51,548				57,588
Income tax provision (benefit)			(53,523	)			2,520				(54,227	)			(7,191	)
Amortization of intangible assets			18,078				18,078				54,232				54,232
Amortization of acquired technologies—Cost of revenue			6,580				6,576				19,740				19,725
Depreciation and amortization related to software, equipment and property			7,694				4,496				18,161				13,039
EBITDA			(197,075	)			56,178				(101,596	)			114,899
(Gain) loss on change in fair value of interest rate swaps			(2,007	)			(3,894	)			(8,373	)			16,633
Change in fair value of warrant liabilities			26,889				-				26,889				-
Stock-based compensation expense			219,876				1,869				235,413				7,471
Loss on early extinguishment of debt			15,240				-				15,240				8,615
Business combination transaction costs			5,516				93				10,471				93
Lease abandonment			438				-				2,256				-
Lease overlap costs			924				-				2,773				-
Net costs related to divestiture			338				-				2,605				-
First Party Clinical Services—Revenue			-				(7,830	)			-				(26,083	)
First Party Clinical Services—Cost of revenue			-				7,185				-				23,048
Adjusted EBITDA		$	70,139			$	53,601			$	185,678			$	144,676

CCC INTELLIGENT SOLUTIONS HOLDINGS INC. AND SUBSIDIARIES RECONCILIATION OF GAAP NET (LOSS) INCOME TO ADJUSTED NET INCOME (In thousands) (Unaudited)
		Three months ended September 30,								Nine months ended September 30,
(dollar amounts in thousands)			2021				2020				2021				2020
Net (loss) income		$	(189,782	)		$	4,720			$	(191,050	)		$	(22,494	)
Amortization of intangible assets			18,078				18,078				54,232				54,232
Amortization of acquired technologies—Cost of revenue			6,580				6,576				19,740				19,725
(Gain) loss on change in fair value of interest rate swaps			(2,007	)			(3,894	)			(8,373	)			16,633
Change in fair value of warrant liabilities			26,889				-				26,889				-
Stock-based compensation expense			219,876				1,869				235,413				7,471
Loss on early extinguishment of debt			15,240				-				15,240				8,615
Business combination transaction costs			5,516				93				10,471				93
Lease abandonment			438				-				2,256				-
Lease overlap costs			924				-				2,773				-
Net costs related to divestiture			338				-				2,605				-
First Party Clinical Services—Revenue			-				(7,830	)			-				(26,083	)
First Party Clinical Services—Cost of revenue			-				7,185				-				23,048
Tax effect of adjustments			(72,360	)			(5,716	)			(89,134	)			(26,947	)
Adjusted net income		$	29,730			$	21,081			$	81,062			$	54,293
Adjusted net income per share attributable to common stockholders
Basic		$	0.05			$	0.04			$	0.15			$	0.11
Diluted		$	0.05			$	0.04			$	0.15			$	0.11
Weighted average shares outstanding
Basic			566,454,782				504,212,021				525,877,533				504,062,587
Diluted			599,675,416				510,694,493				554,818,300				510,252,470

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 September 30,								Nine months ended September 30,
(dollar amounts in thousands)		2021				2020				2021				2020
Net cash provided by operating activities	$	36,905			$	43,013			$	96,725			$	66,789
Less: Purchases of software, equipment, and property		(11,864	)			(11,303	)			(25,022	)			(23,815	)
Less: Purchase of intangible assets		-				-				(49	)			(560	)
Free Cash Flow	$	25,041			$	31,710			$	71,654			$	42,414

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20211110006211/en/

Investor Contact:

Brian Denyeau

ICR, LLC

646-277-1251

IR@cccis.com



Media Contact:

Michelle Hellyar

Director Public Relations, CCC Intelligent Solutions Inc.

mhellyar@cccis.com

Source: CCC Intelligent Solutions Inc.

FAQ

What were CCCS's revenue figures for Q3 2021?

CCCS reported total revenue of $176.6 million for Q3 2021, reflecting an 18% growth year-over-year.

How did CCCS perform in terms of adjusted EBITDA in Q3 2021?

CCCS's adjusted EBITDA for Q3 2021 was $70.1 million, marking a 31% increase from the same period in the previous year.

What is the revenue guidance for CCCS in Q4 2021?

CCCS is expecting revenue in the range of $182 million to $184 million for Q4 2021.

What was the net loss for CCCS in Q3 2021?

CCCS reported a GAAP net loss of $189.8 million for Q3 2021, a significant increase from a net income of $4.7 million in Q3 2020.