CCCS CCC Intelligent Solutions Holdings Inc

CCC Intelligent Solutions Holdings Inc. (“CCC” or the “Company”) (NASDAQ: CCCS), a leading cloud platform for the P&C insurance economy, today announced its financial results for the three months ended June 30, 2024.

“CCC delivered strong second quarter results, highlighted by 10% year-over-year revenue growth and 41% adjusted EBITDA margin. Our solid performance in the first half of 2024 reinforces our confidence in our durable business model, multisided network, and customer-focused innovation,” said Githesh Ramamurthy, Chairman & CEO of CCC.

“Our significant investment in research and development over the past decade has enabled us to build a robust pipeline of new solutions that help our clients accelerate their digital transformation within the P&C economy,” continued Ramamurthy. “Strong client engagement and feedback across these new solutions increase our confidence in CCC’s long-term growth potential.”

Second Quarter 2024 Financial Highlights

Revenue

• Total revenue was $232.6 million for the second quarter of 2024, an increase of 10% from $211.7 million for the second quarter of 2023.

Profitability

• GAAP gross profit was $177.3 million, representing a gross margin of 76%, for the second quarter of 2024, compared with $152.6 million, representing a gross margin of 72%, for the second quarter of 2023. Adjusted gross profit was $182.1 million, representing an adjusted gross profit margin of 78%, for the second quarter of 2024, compared with $162.0 million, representing an adjusted gross profit margin of 77%, for the second quarter of 2023.
• GAAP operating income was $22.5 million for the second quarter of 2024, compared with GAAP operating loss of $73.2 million for the second quarter of 2023. Adjusted operating income was $86.0 million for the second quarter of 2024, compared with adjusted operating income of $71.8 million for the second quarter of 2023.
• GAAP net income was $21.4 million for the second quarter of 2024, compared with GAAP net loss of $97.3 million for the second quarter of 2023. Adjusted net income was $56.2 million for the second quarter of 2024, compared with adjusted net income of $47.8 million for the second quarter of 2023.
• Adjusted EBITDA was $95.8 million for the second quarter of 2024, compared with adjusted EBITDA of $80.9 million for the second quarter of 2023. Adjusted EBITDA grew 18% in the second quarter of 2024 compared with the second quarter of 2023.

Liquidity

• CCC had $237.9 million in cash and cash equivalents and $780.0 million of total debt on June 30, 2024. The Company generated $51.8 million in cash from operating activities and had free cash flow of $36.2 million during the second quarter of 2024, compared with $69.6 million generated in cash from operating activities and $55.0 million in free cash flow in the second quarter of 2023.

The information presented above includes non-GAAP financial measures such as “adjusted EBITDA,” “adjusted net income,” “adjusted EBITDA margin,” “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.

2nd Quarter and Recent Business Highlights

• CCC recently launched CCC® Build Sheets, a new solution designed to streamline the repair process. Integrated directly into CCC ONE®, CCC® Build Sheets provides collision repairers with detailed vehicle specifications based on the Vehicle Identification Number (VIN), helping them write more complete estimates the first time, better understand the parts needed for the repair, access information faster, improve efficiency, and enhance overall shop productivity.
• CCC continued to grow the breadth and depth of its network during the second quarter of 2024, adding over 600 collision repair facilities to its platform in 2024 year-to-date. CCC now has over 30,000 repair facilities on the CCC platform. CCC’s total customer count now exceeds 35,000, including over 5,500 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.
• Certain existing shareholders recently completed two secondary offerings of the Company’s common stock. The first offering of 50,000,000 shares closed in May 2024. The second offering of 30,000,000 shares closed in July 2024. The Company did not receive any proceeds from the sale of shares by the existing stockholders in either offering. CCC’s publicly traded float1 has increased from approximately 30% of shares outstanding in October 2023 to over 70% of shares outstanding today.

Business Outlook

Based on information as of today, July 30, 2024, the Company is issuing the following financial guidance:

 

 

Third Quarter Fiscal 2024

 

 

Full Year Fiscal 2024

Revenue

 

$

236.0 million to $238.0 million

 

 

$

941.0 million to $945.0 million

Adjusted EBITDA

 

$

97.0 million to $99.0 million

 

 

$

391.0 million to $395.0 million

1 As measured by Bloomberg Finance L.P.

Conference Call Information

CCC will host a conference call today, July 30, 2024, at 5:00 p.m. (Eastern Time) to discuss the Company’s financial results and financial guidance. A live webcast of this conference call will be available on the “Investor Relations” page of the Company’s website at https://ir.cccis.com, and a replay will be archived on the website as well.

About CCC Intelligent Solutions

CCC Intelligent Solutions Inc. (CCC), a subsidiary of CCC Intelligent Solutions Holdings Inc. (NASDAQ: CCCS), is a leading cloud platform for the multi-trillion-dollar P&C insurance economy, creating intelligent experiences for insurers, repairers, automakers, part suppliers, and more. The CCC Intelligent Experience (IX) Cloud, powered by proven AI and an innovative event-based architecture, connects more than 35,000 businesses to power customized applications and platforms for optimal outcomes, and personalized experiences that just work. Through purposeful innovation and the strength of its connections, CCC technologies empower the people and industry relied upon to keep lives moving forward when it matters most. Learn more about CCC at www.cccis.com.

Forward Looking Statements

This press release contains forward-looking statements that are based on beliefs and assumptions and on information currently available. In some cases, you can identify forward-looking statements by the following words: “may,” “will,” “could,” “would,” “should,” “expect,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “project,” “potential,” “continue,” “ongoing” or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words. These statements involve risks, uncertainties and other factors that may cause actual results, levels of activity, performance or achievements to be materially different from the information expressed or implied by these forward-looking statements. Forward-looking statements in this press release include, but are not limited to, future events, goals, plans and projections regarding the Company’s financial position, results of operations, market position, product development and business strategy. Such differences may be material. We cannot assure you that the forward-looking statements in this press release will prove to be accurate. These forward looking statements are subject to a number of risks and uncertainties, including, among others, our revenues, the concentration of our customers and the ability to retain our current customers; our ability to negotiate with our customers on favorable terms; our ability to maintain and grow our brand and reputation cost-effectively; the execution of our growth strategy; the impact of public health outbreaks, epidemics or pandemics on our business and results of operations; our projected financial information, growth rate and market opportunity; the health of our industry, claim volumes, and market conditions; changes in the insurance and automotive collision industries, including the adoption of new technologies; global economic conditions and geopolitical events; competition in our market and our ability to retain and grow market share; our ability to develop, introduce and market new enhanced versions of our solutions; our sales and implementation cycles; the ability of our research and development efforts to create significant new revenue streams; changes in applicable laws or regulations; changes in international economic, political, social and governmental conditions and policies, including corruption risks in China and other countries; our reliance on third-party data, technology and intellectual property; changes in our customers’ or the public’s perceptions regarding the use of artificial intelligence; 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, 2023 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 EBITDA margin,” “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,

2024

2023

(Unaudited)

ASSETS

CURRENT ASSETS:

Cash and cash equivalents

$

237,893

$

195,572

Accounts receivable—Net of allowances of $4,079 and $5,574 as of June 30, 2024 and December 31, 2023, respectively

 

120,932

 

102,365

Income taxes receivable

 

4,093

 

1,798

Deferred contract costs

 

19,427

 

17,900

Other current assets

 

26,589

 

32,364

Total current assets

 

408,934

 

349,999

SOFTWARE, EQUIPMENT, AND PROPERTY—Net

 

176,391

 

160,416

OPERATING LEASE ASSETS

 

29,799

 

30,456

INTANGIBLE ASSETS—Net

 

970,505

 

1,015,046

GOODWILL

 

1,417,724

 

1,417,724

DEFERRED FINANCING FEES, REVOLVER—Net

 

1,365

 

1,672

DEFERRED CONTRACT COSTS

 

21,666

 

22,302

EQUITY METHOD INVESTMENT

 

10,228

 

10,228

OTHER ASSETS

 

42,546

 

43,197

TOTAL

$

3,079,158

$

3,051,040

LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS’ EQUITY

CURRENT LIABILITIES:

Accounts payable

$

20,954

$

16,324

Accrued expenses

 

61,149

 

71,478

Income taxes payable

 

215

 

3,689

Current portion of long-term debt

 

8,000

 

8,000

Current portion of long-term licensing agreement—Net

 

3,157

 

3,061

Operating lease liabilities

 

7,128

 

6,788

Deferred revenues

 

45,988

 

43,567

Total current liabilities

 

146,591

 

152,907

LONG-TERM DEBT—Net

 

764,249

 

767,504

DEFERRED INCOME TAXES—Net

 

170,627

 

195,365

LONG-TERM LICENSING AGREEMENT—Net

 

26,089

 

27,692

OPERATING LEASE LIABILITIES

 

48,657

 

50,796

WARRANT LIABILITIES

 

—

 

51,501

OTHER LIABILITIES

 

10,352

 

6,414

Total liabilities

 

1,166,565

 

1,252,179

COMMITMENTS AND CONTINGENCIES (Notes 18 and 19)

MEZZANINE EQUITY:

Redeemable non-controlling interest

 

18,947

 

16,584

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; 622,795,101 and 603,128,781 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively

 

62

 

60

Additional paid-in capital

 

3,000,367

 

2,909,757

Accumulated deficit

 

(1,105,619)

 

(1,126,467)

Accumulated other comprehensive loss

 

(1,164)

 

(1,073)

Total stockholders’ equity

 

1,893,646

 

1,782,277

TOTAL

$

3,079,158

$

3,051,040

 

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,

2024

2023

2024

2023

REVENUES

$

232,618

$

211,710

$

459,855

$

416,630

COST OF REVENUES

Cost of revenues, exclusive of amortization and impairment of acquired technologies

 

53,231

 

52,047

 

106,038

 

102,494

Amortization of acquired technologies

 

2,090

 

6,646

 

8,657

 

13,331

Impairment of acquired technologies

 

—

 

431

 

—

 

431

Total cost of revenues

 

55,321

 

59,124

 

114,695

 

116,256

GROSS PROFIT

 

177,297

 

152,586

 

345,160

 

300,374

OPERATING EXPENSES:

Research and development

 

49,253

 

43,363

 

98,730

 

84,359

Selling and marketing

 

36,321

 

35,936

 

71,907

 

69,467

General and administrative

 

51,268

 

46,141

 

108,329

 

88,006

Amortization of intangible assets

 

17,942

 

18,022

 

35,884

 

36,088

Impairment of goodwill

 

—

 

77,405

 

—

 

77,405

Impairment of intangible assets

 

—

 

4,906

 

—

 

4,906

Total operating expenses

 

154,784

 

225,773

 

314,850

 

360,231

OPERATING INCOME (LOSS)

 

22,513

 

(73,187)

 

30,310

 

(59,857)

INTEREST EXPENSE

 

(16,602)

 

(14,014)

 

(33,054)

 

(27,846)

INTEREST INCOME

 

2,625

 

4,023

 

5,092

 

7,282

CHANGE IN FAIR VALUE OF WARRANT LIABILITIES

 

15,963

 

(20,375)

 

14,378

 

(19,180)

OTHER INCOME—Net

 

1,253

 

3,928

 

4,191

 

1,377

PRETAX INCOME (LOSS)

 

25,752

 

(99,625)

 

20,917

 

(98,224)

INCOME TAX (PROVISION) BENEFIT

 

(4,307)

 

2,281

 

(69)

 

3,064

NET INCOME (LOSS) INCLUDING NON-CONTROLLING INTEREST

 

21,445

 

(97,344)

 

20,848

 

(95,160)

LESS: ACCRETION OF REDEEMABLE NON-CONTROLLING INTEREST

 

(1,221)

 

(315)

 

(2,363)

 

(315)

NET INCOME (LOSS) ATTRIBUTABLE TO CCC INTELLIGENT SOLUTIONS HOLDINGS INC. COMMON STOCKHOLDERS

$

20,224

$

(97,659)

$

18,485

$

(95,475)

Net income (loss) per share attributable to common stockholders:

Basic

$

0.03

$

(0.16)

$

0.03

$

(0.15)

Diluted

$

0.03

$

(0.16)

$

0.03

$

(0.15)

Weighted-average shares used in computing net income (loss) per share attributable to common stockholders:

Basic

 

609,997,114

 

621,235,776

 

604,138,246

 

618,740,340

Diluted

 

638,367,745

 

621,235,776

 

636,990,633

 

618,740,340

COMPREHENSIVE INCOME (LOSS):

Net income (loss) including non-controlling interest

 

21,445

 

(97,344)

 

20,848

 

(95,160)

Other comprehensive loss—Foreign currency translation adjustment

 

(16)

 

(285)

 

(91)

 

(251)

COMPREHENSIVE INCOME (LOSS) INCLUDING NON-CONTROLLING INTEREST

 

21,429

 

(97,629)

 

20,757

 

(95,411)

Less: accretion of redeemable non-controlling interest

 

(1,221)

 

(315)

 

(2,363)

 

(315)

COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO CCC INTELLIGENT SOLUTIONS HOLDINGS INC. COMMON STOCKHOLDERS

$

20,208

$

(97,944)

$

18,394

$

(95,726)

 

CCC INTELLIGENT SOLUTIONS HOLDINGS INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

 

For the Six Months Ended

June 30,

2024

2023

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income (loss)

$

20,848

$

(95,160)

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

Depreciation and amortization of software, equipment, and property

 

19,160

 

17,966

Amortization of intangible assets

 

44,541

 

49,419

Impairment of goodwill and intangible assets

 

—

 

82,742

Deferred income taxes

 

(24,738)

 

(23,791)

Stock-based compensation

 

85,096

 

64,720

Amortization of deferred financing fees

 

927

 

851

Amortization of discount on debt

 

125

 

111

Change in fair value of derivative instruments

 

134

 

(1,009)

Change in fair value of warrant liabilities

 

(14,378)

 

19,180

Non-cash lease expense

 

—

 

1,232

Loss on disposal of software, equipment and property

 

302

 

—

Other

 

68

 

115

Changes in:

Accounts receivable—Net

 

(18,553)

 

2,322

Deferred contract costs

 

(1,527)

 

(315)

Other current assets

 

5,860

 

7,116

Deferred contract costs—Non-current

 

636

 

681

Other assets

 

391

 

(5,267)

Operating lease assets

 

1,152

 

(5)

Income taxes

 

(5,769)

 

772

Accounts payable

 

4,633

 

(8,534)

Accrued expenses

 

(12,739)

 

(14,975)

Operating lease liabilities

 

(2,236)

 

(249)

Deferred revenues

 

2,437

 

4,825

Other liabilities

 

639

 

(115)

Net cash provided by operating activities

 

107,009

 

102,632

CASH FLOWS FROM INVESTING ACTIVITIES:

Purchases of software, equipment, and property

 

(31,224)

 

(29,084)

Net cash used in investing activities

 

(31,224)

 

(29,084)

CASH FLOWS FROM FINANCING ACTIVITIES:

Proceeds from exercise of stock options

 

21,561

 

20,827

Proceeds from employee stock purchase plan

 

1,833

 

1,326

Payments for employee taxes withheld upon vesting of equity awards

 

(52,722)

 

(11,539)

Principal payments on long-term debt

 

(4,000)

 

(4,000)

Net cash used in financing activities

 

(33,328)

 

6,614

NET EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS

 

(136)

 

(373)

NET CHANGE IN CASH AND CASH EQUIVALENTS

 

42,321

 

79,789

CASH AND CASH EQUIVALENTS:

Beginning of period

 

195,572

 

323,788

End of period

$

237,893

$

403,577

NONCASH INVESTING AND FINANCING ACTIVITIES:

Noncash purchases of software, equipment, and property

$

7,218

$

550

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:

Cash paid for interest

$

31,739

$

26,946

Cash paid for income taxes—Net

$

30,567

$

19,954

 

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)

2024

2023

2024

2023

Gross Profit

$

177,297

$

152,586

$

345,160

$

300,374

Amortization of acquired technologies

 

2,090

 

6,646

 

8,657

 

13,331

Stock-based compensation and related employer payroll tax

 

2,693

 

2,358

 

5,280

 

4,473

Impairment of acquired technologies

 

—

 

431

 

—

 

431

Adjusted Gross Profit

$

182,080

$

162,021

$

359,097

$

318,609

Gross Profit Margin

 

76%

 

72%

 

75%

 

72%

Adjusted Gross Profit Margin

 

78%

 

77%

 

78%

 

76%

 

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)

2024

2023

2024

2023

Operating expenses

$

154,784

$

225,773

$

314,850

$

360,231

Amortization of intangible assets

 

(17,942)

 

(18,022)

 

(35,884)

 

(36,088)

Stock-based compensation expense and related employer payroll tax

 

(38,075)

 

(33,706)

 

(85,520)

 

(62,799)

Litigation costs

 

(1,624)

 

(1,537)

 

(2,200)

 

(2,523)

M&A and integration costs

 

—

 

—

 

(477)

 

—

Equity transaction costs, including secondary offerings

 

(1,046)

 

—

 

(1,738)

 

—

Impairment of goodwill

 

—

 

(77,405)

 

—

 

(77,405)

Impairment of intangible assets

 

—

 

(4,906)

 

—

 

(4,906)

Adjusted operating expenses

$

96,097

$

90,197

$

189,031

$

176,510

 

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)

2024

2023

2024

2023

Operating income (loss)

$

22,513

$

(73,187)

$

30,310

$

(59,857)

Amortization of intangible assets

 

17,942

 

18,022

 

35,884

 

36,088

Amortization of acquired technologies—Cost of revenue

 

2,090

 

6,646

 

8,657

 

13,331

Stock-based compensation expense and related employer payroll tax

 

40,768

 

36,064

 

90,800

 

67,272

Litigation costs

 

1,624

 

1,537

 

2,200

 

2,523

M&A and integration costs

 

—

 

—

 

477

 

—

Equity transaction costs, including secondary offerings

 

1,046

 

—

 

1,738

 

—

Impairment of goodwill

 

—

 

77,405

 

—

 

77,405

Impairment of intangible assets

 

—

 

4,906

 

—

 

4,906

Impairment of acquired technologies - Cost of revenue

 

—

 

431

 

—

 

431

Adjusted operating income

$

85,983

$

71,824

$

170,066

$

142,099

 

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)

2024

2023

2024

2023

Net income (loss)

$

21,445

$

(97,344)

$

20,848

$

(95,160)

Interest expense

 

16,602

 

14,014

 

33,054

 

27,846

Interest income

 

(2,625)

 

(4,023)

 

(5,092)

 

(7,282)

Income tax benefit

 

4,307

 

(2,281)

 

69

 

(3,064)

Amortization of intangible assets

 

17,942

 

18,022

 

35,884

 

36,088

Amortization of acquired technologies—Cost of revenue

 

2,090

 

6,646

 

8,657

 

13,331

Depreciation and amortization of software, equipment and property

 

2,299

 

2,187

 

4,164

 

4,414

Depreciation and amortization of software, equipment and property—Cost of revenue

 

7,418

 

6,573

 

14,996

 

13,552

Stock-based compensation expense and related employer payroll tax

 

40,768

 

36,064

 

90,800

 

67,272

Change in fair value of derivative instruments

 

852

 

(3,613)

 

134

 

(1,009)

Change in fair value of warrant liabilities

 

(15,963)

 

20,375

 

(14,378)

 

19,180

Income from derivative instruments

 

(2,008)

 

—

 

(4,039)

 

—

Litigation costs

 

1,624

 

1,537

 

2,200

 

2,523

M&A and integration costs

 

—

 

—

 

477

 

—

Equity transaction costs, including secondary offerings

 

1,046

 

—

 

1,738

 

—

Impairment of goodwill

 

—

 

77,405

 

—

 

77,405

Impairment of intangible assets

 

—

 

4,906

 

—

 

4,906

Impairment of acquired technologies - Cost of Revenue

 

—

 

431

 

—

 

431

Adjusted EBITDA

$

95,797

$

80,899

$

189,512

$

160,433

Adjusted EBITDA Margin

 

41%

 

38%

 

41%

 

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)

2024

2023

2024

2023

Net income (loss)

$

21,445

$

(97,344)

$

20,848

$

(95,160)

Amortization of intangible assets

 

17,942

 

18,022

 

35,884

 

36,088

Amortization of acquired technologies—Cost of revenue

 

2,090

 

6,646

 

8,657

 

13,331

Stock-based compensation expense and related employer payroll tax

 

40,768

 

36,064

 

90,800

 

67,272

Change in fair value of warrant liabilities

 

(15,963)

 

20,375

 

(14,378)

 

19,180

Change in fair value of derivative instruments

 

852

 

(3,613)

 

134

 

(1,009)

Litigation costs

 

1,624

 

1,537

 

2,200

 

2,523

M&A and integration costs

 

—

 

—

 

477

 

—

Equity transaction costs, including secondary offerings

 

1,046

 

—

 

1,738

 

—

Impairment of goodwill

 

—

 

77,405

 

—

 

77,405

Impairment of intangible assets

 

—

 

4,906

 

—

 

4,906

Impairment of acquired technologies-cost revenue

 

—

 

431

 

—

 

431

Tax effect of adjustments

 

(13,618)

 

(16,587)

 

(35,384)

 

(30,633)

Adjusted net income

$

56,186

$

47,842

$

110,976

$

94,334

Adjusted net income per share attributable to common stockholders:

Basic

$

0.09

$

0.08

$

0.18

$

0.15

Diluted

$

0.09

$

0.07

$

0.17

$

0.15

Weighted average shares outstanding:

Basic

 

609,997,114

 

621,235,776

 

604,138,246

 

618,740,340

Diluted

 

638,367,745

 

651,427,506

 

636,990,633

 

648,887,781

 

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)

2024

2023

2024

2023

Net cash provided by operating activities

$

51,774

$

69,554

$

107,009

$

102,632

Purchases of software, equipment, and property

 

(15,561)

 

(14,560)

 

(31,224)

 

(29,084)

Free Cash Flow

$

36,213

$

54,994

 

$

75,785

 

$

73,548

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240729541676/en/

Investor Contact: Bill Warmington VP, Investor Relations, CCC Intelligent Solutions Inc. 312-229-2355 IR@cccis.com

Media Contact: Michelle Hellyar Senior Director, Public Relations, CCC Intelligent Solutions Inc. mhellyar@cccis.com