[Company Overview and Q2 2025 Highlights](index=1&type=section&id=Company%20Overview%20and%20Q2%202025%20Highlights) CCC Intelligent Solutions reported strong Q2 2025 financial results, with 12% revenue growth and a 42% Adjusted EBITDA margin [Introduction and CEO Commentary](index=1&type=section&id=Introduction%20and%20CEO%20Commentary) CCC reported strong Q2 2025 results with 12% revenue growth and a 42% Adjusted EBITDA margin, driven by resilient operations and innovation - CCC achieved strong performance in Q2 2025, with **revenue growing 12%** and an **Adjusted EBITDA margin of 42%**[2](index=2&type=chunk) - CEO Githesh Ramamurthy stated that results reflect the company's resilient business model, operational efficiency, and sustained investment in innovation[2](index=2&type=chunk) - Several large customers expanded new solutions from pilot to broader business applications, indicating wider insurance industry adoption and boosting long-term growth confidence[3](index=3&type=chunk) [Second Quarter 2025 Financial Highlights](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Highlights) Q2 2025 saw significant revenue growth, varied GAAP and adjusted profitability, and a year-over-year decline in cash and free cash flow [Revenue](index=1&type=section&id=Revenue) Total revenue for Q2 2025 reached $260.5 million, a 12% increase from Q2 2024 Q2 2025 Revenue | Metric | Q2 2025 | Q2 2024 | YoY Growth | | :--- | :--- | :--- | :--- | | Total Revenue | $260.5 Million | $232.6 Million | 12% | [Profitability (GAAP & Adjusted)](index=1&type=section&id=Profitability%20%28GAAP%20%26%20Adjusted%29) Q2 2025 GAAP net income decreased, but adjusted net income, operating income, and EBITDA all grew, showing improved adjusted profitability Q2 2025 Profitability Overview | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | GAAP Gross Profit | $194.0 Million | $177.3 Million | +9.4% | | GAAP Gross Margin | 74% | 76% | -2% | | Adjusted Gross Profit | $202.5 Million | $182.1 Million | +11.2% | | Adjusted Gross Margin | 78% | 78% | 0% | | GAAP Operating Income | $24.5 Million | $22.5 Million | +8.9% | | Adjusted Operating Income | $94.2 Million | $86.0 Million | +9.5% | | GAAP Net Income | $13.0 Million | $21.4 Million | -39.3% | | Adjusted Net Income | $58.9 Million | $56.2 Million | +4.8% | | Adjusted EBITDA | $108.1 Million | $95.8 Million | +12.8% | | Adjusted EBITDA Margin | 42% | 41% | +1% | [Liquidity](index=1&type=section&id=Liquidity) As of June 30, 2025, cash and cash equivalents were $55.1 million, total debt was $996.0 million, with decreased Q2 cash flows Q2 2025 Liquidity Metrics | Metric | June 30, 2025 | June 30, 2024 | Change | | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | $55.1 Million | - | - | | Total Debt | $996.0 Million | - | - | | Cash Flow from Operations (Q2) | $43.1 Million | $51.8 Million | -16.8% | | Free Cash Flow (Q2) | $27.4 Million | $36.2 Million | -24.3% | [Q2 2025 and Recent Business Highlights](index=1&type=section&id=2nd%20Quarter%20and%20Recent%20Business%20Highlights) The company achieved multiple business advancements in Q2, including new AI solution contracts and a strategic board appointment - Multiple top-ten insurers (based on 2024 direct premiums) signed contracts for CCC's AI-driven Auto Physical Damage (APD) solutions, extending AI photo capabilities to early claims processing and late-stage audit reviews[8](index=8&type=chunk) - Another top-twenty insurer signed a contract for the AI-driven subrogation platform, which currently serves 25 CCC customers[8](index=8&type=chunk) - CCC's casualty business maintained strong momentum in Q2, renewing and expanding partnerships with top-ten and top-twenty insurers[8](index=8&type=chunk) - Barak Eilam was appointed to the Board of Directors on July 14, bringing over 20 years of enterprise software, AI, and customer engagement technology experience to drive CCC's next growth phase[8](index=8&type=chunk) [Share Repurchase Program](index=3&type=section&id=Share%20Repurchase%20Program) In Q2 2025, CCC repurchased 11 million shares for $100 million; year-to-date, 18 million shares totaling $172 million were repurchased Share Repurchase Overview | Metric | Q2 2025 | Year-to-Date 2025 | | :--- | :--- | :--- | | Shares Repurchased | 11 Million Shares | 18 Million Shares | | Repurchase Amount | Approx. $100 Million | Approx. $172 Million | | Total Authorization | - | $300 Million | [Business Outlook](index=3&type=section&id=Business%20Outlook) The company issued Q3 and full-year FY2025 financial guidance, projecting continued growth in revenue and Adjusted EBITDA [Financial Guidance](index=3&type=section&id=Financial%20Guidance) The company issued Q3 and full-year FY2025 financial guidance, projecting continued growth in revenue and Adjusted EBITDA FY 2025 Financial Guidance | Metric | Q3 FY 2025 | Full Year FY 2025 | | :--- | :--- | :--- | | Revenue | $263.0 Million to $266.0 Million | $1.046 Billion to $1.056 Billion | | Adjusted EBITDA | $104.0 Million to $107.0 Million | $420.0 Million to $428.0 Million | [Company Information](index=3&type=section&id=Company%20Information) CCC Intelligent Solutions is a leading SaaS platform provider in the trillion-dollar insurance economy, connecting over 35,000 businesses [About CCC Intelligent Solutions](index=3&type=section&id=About%20CCC%20Intelligent%20Solutions) CCC Intelligent Solutions is a leading SaaS platform provider in the trillion-dollar insurance economy, connecting over 35,000 businesses - CCC Intelligent Solutions is a leading SaaS platform provider in the trillion-dollar insurance economy[12](index=12&type=chunk) - Its CCC Intelligent Experience (IX) Cloud™ platform, powered by AI and event-driven architecture, connects over **35,000 businesses** with customized applications and platforms[12](index=12&type=chunk) - The company is committed to empowering industries and individuals through innovation and connectivity to navigate critical moments[12](index=12&type=chunk) [Financial Statements](index=6&type=section&id=Financial%20Statements) Condensed consolidated balance sheets, statements of operations, and cash flows provide an overview of the company's financial position and performance [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheets present the company's financial position as of June 30, 2025, and December 31, 2024, detailing assets, liabilities, and equity Condensed Consolidated Balance Sheets Overview (As of June 30) | Metric (Thousands of USD) | 2025 | 2024 | | :--- | :--- | :--- | | Cash and Cash Equivalents | 55,053 | 398,983 | | Accounts Receivable—Net | 132,450 | 106,578 | | Total Current Assets | 277,705 | 564,650 | | Software, Equipment and Property—Net | 170,341 | 172,079 | | Intangible Assets—Net | 1,056,418 | 934,278 | | Goodwill | 1,956,485 | 1,417,724 | | Total Assets | 3,565,422 | 3,183,218 | | Total Current Liabilities | 223,469 | 154,846 | | Long-Term Debt—Net | 973,298 | 761,053 | | Total Liabilities | 1,452,030 | 1,163,716 | | Total Stockholders’ Equity | 2,177,460 | 1,997,823 | [Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income%20%28Loss%29) These statements present the company's financial performance for the three and six months ended June 30, 2025, and 2024 Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) Overview (Thousands of USD) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Revenue | 260,451 | 232,618 | 512,016 | 459,855 | | Cost of Revenue | 66,435 | 55,321 | 133,008 | 114,695 | | Gross Profit | 194,016 | 177,297 | 379,008 | 345,160 | | Operating Expenses | 169,546 | 154,784 | 365,236 | 314,850 | | Operating Income | 24,470 | 22,513 | 13,772 | 30,310 | | Income (Loss) Before Income Taxes | 5,797 | 25,752 | (24,977) | 20,917 | | Net Income (Loss) | 12,960 | 21,445 | (4,461) | 20,848 | | Net Income (Loss) Attributable to Common Stockholders | 12,960 | 20,224 | (5,737) | 18,485 | | Basic Net Income (Loss) Per Share | $0.02 | $0.03 | ($0.01) | $0.03 | | Diluted Net Income (Loss) Per Share | $0.02 | $0.03 | ($0.01) | $0.03 | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) These statements detail the company's cash flows from operating, investing, and financing activities for the six months ended June 30 Condensed Consolidated Statements of Cash Flows Overview (Thousands of USD, As of June 30) | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | 101,548 | 107,009 | | Net Cash Used in Investing Activities | (445,682) | (31,224) | | Net Cash Provided by (Used in) Financing Activities | 167 | (33,328) | | Net Change in Cash and Cash Equivalents | (343,930) | 42,321 | | Cash and Cash Equivalents at End of Period | 55,053 | 237,893 | [Non-GAAP Financial Measures Reconciliations](index=10&type=section&id=Non-GAAP%20Financial%20Measures%20Reconciliations) Reconciliations of GAAP to non-GAAP financial measures are provided for key metrics, offering a comprehensive view of financial performance [Reconciliation of Gross Profit to Adjusted Gross Profit](index=10&type=section&id=Reconciliation%20of%20Gross%20Profit%20to%20Adjusted%20Gross%20Profit) This reconciliation adjusts GAAP gross profit to adjusted gross profit by adding back amortization of acquired technology and stock-based compensation Reconciliation of Gross Profit to Adjusted Gross Profit (Thousands of USD) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Gross Profit | 194,016 | 177,297 | 379,008 | 345,160 | | Amortization of Acquired Technology | 4,368 | 2,090 | 8,737 | 8,657 | | Stock-Based Compensation and Related Employer Payroll Taxes | 4,137 | 2,693 | 7,238 | 5,280 | | Adjusted Gross Profit | 202,521 | 182,080 | 394,983 | 359,097 | | Gross Margin | 74% | 76% | 74% | 75% | | Adjusted Gross Margin | 78% | 78% | 77% | 77% | [Reconciliation of GAAP Operating Expenses to Adjusted Operating Expenses](index=11&type=section&id=Reconciliation%20of%20GAAP%20Operating%20Expenses%20to%20Adjusted%20Operating%20Expenses) This reconciliation adjusts GAAP operating expenses to adjusted operating expenses by excluding various non-cash and non-recurring items Reconciliation of GAAP Operating Expenses to Adjusted Operating Expenses (Thousands of USD) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Operating Expenses | 169,546 | 154,784 | 365,236 | 314,850 | | Amortization of Intangible Assets | (18,512) | (17,942) | (37,024) | (35,884) | | Stock-Based Compensation and Related Employer Payroll Taxes | (42,121) | (38,075) | (104,939) | (85,520) | | M&A and Integration Costs | (348) | — | (7,967) | (477) | | Equity Transaction Costs | (165) | (1,046) | (452) | (1,738) | | Litigation (Costs) Benefits, Net | (125) | (1,624) | 3,665 | (2,200) | | Debt Refinancing Costs | — | — | (3,119) | — | | Adjusted Operating Expenses | 108,275 | 96,097 | 215,400 | 189,031 | [Reconciliation of GAAP Operating Income to Adjusted Operating Income](index=12&type=section&id=Reconciliation%20of%20GAAP%20Operating%20Income%20to%20Adjusted%20Operating%20Income) This reconciliation adjusts GAAP operating income to adjusted operating income by adding back various non-cash and non-recurring items Reconciliation of GAAP Operating Income to Adjusted Operating Income (Thousands of USD) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Operating Income | 24,470 | 22,513 | 13,772 | 30,310 | | Amortization of Intangible Assets | 18,512 | 17,942 | 37,024 | 35,884 | | Amortization of Acquired Technology—Cost of Revenue | 4,368 | 2,090 | 8,737 | 8,657 | | Stock-Based Compensation and Related Employer Payroll Taxes | 46,258 | 40,768 | 112,177 | 90,800 | | M&A and Integration Costs | 348 | — | 7,967 | 477 | | Equity Transaction Costs | 165 | 1,046 | 452 | 1,738 | | Litigation Costs (Benefits), Net | 125 | 1,624 | (3,665) | 2,200 | | Debt Refinancing Costs | — | — | 3,119 | — | | Adjusted Operating Income | 94,246 | 85,983 | 179,583 | 170,066 | [Reconciliation of GAAP Net Income (Loss) to Adjusted EBITDA](index=13&type=section&id=Reconciliation%20of%20GAAP%20Net%20Income%20%28Loss%29%20to%20Adjusted%20EBITDA) This reconciliation adjusts GAAP net income (loss) to Adjusted EBITDA by adding back non-cash and non-operating items Reconciliation of GAAP Net Income (Loss) to Adjusted EBITDA (Thousands of USD) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Net Income (Loss) | 12,960 | 21,445 | (4,461) | 20,848 | | Interest Expense | 17,836 | 16,602 | 34,763 | 33,054 | | Interest Income | (1,220) | (2,625) | (3,168) | (5,092) | | Income Tax (Benefit) Expense | (7,163) | 4,307 | (20,516) | 69 | | Amortization of Intangible Assets | 18,512 | 17,942 | 37,024 | 35,884 | | Amortization of Acquired Technology—Cost of Revenue | 4,368 | 2,090 | 8,737 | 8,657 | | Depreciation and Amortization of Software, Equipment and Property | 2,231 | 2,299 | 4,495 | 4,164 | | Depreciation and Amortization of Software, Equipment and Property—Cost of Revenue | 11,548 | 7,418 | 22,878 | 14,996 | | Stock-Based Compensation and Related Employer Payroll Taxes | 46,258 | 40,768 | 112,177 | 90,800 | | M&A and Integration Costs | 348 | — | 7,967 | 477 | | Equity Transaction Costs | 165 | 1,046 | 452 | 1,738 | | Litigation Costs (Benefits), Net | 125 | 1,624 | (3,665) | 2,200 | | Debt Refinancing Costs | — | — | 3,119 | — | | Fair Value Change of Derivative Instruments | 2,640 | 852 | 8,381 | 134 | | Derivative Income | (492) | (2,008) | (989) | (4,039) | | Fair Value Change of Warrant Liability | — | (15,963) | — | (14,378) | | Adjusted EBITDA | 108,116 | 95,797 | 207,194 | 189,512 | | Adjusted EBITDA Margin | 42% | 41% | 40% | 40% | [Reconciliation of GAAP Net Income (Loss) to Adjusted Net Income](index=14&type=section&id=Reconciliation%20of%20GAAP%20Net%20Income%20%28Loss%29%20to%20Adjusted%20Net%20Income) This reconciliation adjusts GAAP net income (loss) to adjusted net income by adding back non-cash and non-operating items and deducting tax impacts Reconciliation of GAAP Net Income (Loss) to Adjusted Net Income (Thousands of USD) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Net Income (Loss) | 12,960 | 21,445 | (4,461) | 20,848 | | Amortization of Intangible Assets | 18,512 | 17,942 | 37,024 | 35,884 | | Amortization of Acquired Technology—Cost of Revenue | 4,368 | 2,090 | 8,737 | 8,657 | | Stock-Based Compensation and Related Employer Payroll Taxes | 46,258 | 40,768 | 112,177 | 90,800 | | M&A and Integration Costs | 348 | — | 7,967 | 477 | | Equity Transaction Costs | 165 | 1,046 | 452 | 1,738 | | Litigation Costs (Benefits), Net | 125 | 1,624 | (3,665) | 2,200 | | Debt Refinancing Costs | — | — | 3,119 | — | | Fair Value Change of Derivative Instruments | 2,640 | 852 | 8,381 | 134 | | Fair Value Change of Warrant Liability | — | (15,963) | — | (14,378) | | Tax Impact of Adjustments | (26,521) | (13,618) | (56,394) | (35,384) | | Adjusted Net Income | 58,855 | 56,186 | 113,337 | 110,976 | | Adjusted Basic Net Income Per Share | $0.09 | $0.09 | $0.18 | $0.18 | | Adjusted Diluted Net Income Per Share | $0.09 | $0.09 | $0.17 | $0.17 | [Reconciliation of Net Cash Flow from Operating Activities to Free Cash Flow](index=15&type=section&id=Reconciliation%20of%20Net%20Cash%20Flow%20from%20Operating%20Activities%20to%20Free%20Cash%20Flow) This reconciliation adjusts net cash flow from operating activities to free cash flow by deducting purchases of software, equipment, and property Reconciliation of Net Cash Flow from Operating Activities to Free Cash Flow (Thousands of USD) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | 43,056 | 51,774 | 101,548 | 107,009 | | Purchases of Software, Equipment and Property | (15,703) | (15,561) | (30,549) | (31,224) | | Free Cash Flow | 27,353 | 36,213 | 70,999 | 75,785 | [Other Information](index=3&type=section&id=Other%20Information) This section provides conference call details, forward-looking statements, non-GAAP financial measures disclosure, and investor and media contacts [Conference Call Information](index=3&type=section&id=Conference%20Call%20Information) The company will host a conference call on July 31, 2025, to discuss financial results and guidance, with a webcast and replay available - The conference call will be held on **July 31, 2025, at 5:00 PM ET**[11](index=11&type=chunk) - A webcast and replay will be available on the company's investor relations website at https://ir.cccis.com[11](index=11&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) This section contains forward-looking statements involving risks and uncertainties that could cause actual results to differ materially from expectations - This press release contains forward-looking statements based on beliefs, assumptions, and current information, involving risks, uncertainties, and other factors that could cause actual results to differ materially from expectations[13](index=13&type=chunk) - Forward-looking statements include future events, objectives, plans, and projections regarding the company's financial condition, operating results, market position, product development, and business strategy[13](index=13&type=chunk) - The company does not guarantee the accuracy of forward-looking statements and has no intention to update them in the future, unless required by applicable law[13](index=13&type=chunk) [Non-GAAP Financial Measures Disclosure](index=5&type=section&id=Non-GAAP%20Financial%20Measures%20Disclosure) Non-GAAP financial measures are included, providing useful insights into financial trends but should be considered supplementary to GAAP measures - Non-GAAP financial measures such as **"Adjusted EBITDA," "Adjusted EBITDA Margin," and "Adjusted Net Income"** are not measured by GAAP and may exclude items crucial for understanding financial performance[14](index=14&type=chunk) - The company believes these non-GAAP metrics provide useful information to management and investors regarding financial condition and operating results, aiding in evaluating ongoing performance and trends, and facilitating comparisons with similar companies[15](index=15&type=chunk) - These non-GAAP financial measures have inherent limitations as they reflect management's judgment in determining which expenses and revenues are excluded or included[15](index=15&type=chunk) [Investor and Media Contacts](index=5&type=section&id=Investor%20and%20Media%20Contacts) Contact information is provided for the Vice President of Investor Relations and the Senior Director of Public Relations - Investor Contact: Bill Warmington, VP of Investor Relations, Phone: 312-229-2355, Email: IR@cccis.com[17](index=17&type=chunk) - Media Contact: Michelle Hellyar, Senior Director of Public Relations, Email: mhellyar@cccis.com[17](index=17&type=chunk)

Group 1 - CCC Intelligent Solutions Holdings Inc. (NASDAQ: CCCS) has been given a buy rating due to its mission-critical solutions and strong network effects that can drive growth [1] - The investment approach focuses on identifying undervalued companies with long-term growth potential, emphasizing value investing principles [1] - The strategy involves purchasing quality companies at a discount to their intrinsic value and holding them for long-term earnings and shareholder returns [1]

Business Overview - CCC's platform facilitates over $100 billion in annual transactions across the insurance economy[15] - The company serves over 35,000 companies, offering SaaS solutions for optimal decisions and customer outcomes[16] - CCC boasts a 99% gross dollar retention rate and a 106% net dollar retention rate, demonstrating strong customer loyalty and expansion[18] - The company has shown durable organic growth with an 11% revenue CAGR from 2019 to 2024 and a 42% adjusted EBITDA margin in 2024[18] Market Opportunity - CCC's total addressable market (TAM) is over $35 billion in the global P&C insurance sector[22] - The US auto insurance market presents a $10 billion opportunity, focusing on digitizing claims handling, eliminating leakage, and digitizing the ecosystem[24, 25] EvolutionIQ Acquisition - CCC acquired EvolutionIQ for $730 million, comprising approximately 59% cash and 41% stock consideration[90] - EvolutionIQ is projected to contribute $45 - $50 million in revenue for 2025 and add 100-200 bps to CCC's organic revenue growth near-term[90] - EvolutionIQ's AI-powered platform for disability and injury claims resolution processes over $10 billion in claims annually[72] Financial Performance - The company has high recurring revenue, with 96% being recurring software revenue[110, 114] - CCC has demonstrated consistent revenue growth, reaching $945 million in 2024[117] - The company targets a long-term organic revenue growth rate of 7-10%[123]

CCC INTELLIGENT SOLUTIONS HOLDINGS INC. I N V E S T O R P R E S E N T A T I O N FEBRUARY 25, 2025 © CCC Intelligent Solutions Holdings Inc. All rights reserved. 1 . D I S C L A I M E R The information contained in this presentation is solely for the purpose of familiarizing potential investors with CCC Intelligent Solutions Holdings Inc. ("CCC" or the "Company"). The information contained in this presentation is summary information that is intended to be considered in the context of the Securities and Excha ...

CCC INTELLIGENT SOLUTIONS HOLDINGS INC. N X T I N V E S T O R P R E S E N T A T I O N MAY 2025 © CCC Intelligent Solutions Holdings Inc. All rights reserved. 1 . D I S C L A I M E R D I S C L A I M E R ( C O N T ' D ) Industry and Market Data. In this presentation, CCC relies on and refers to certain information and statistics obtained from third-party sources including reports by market research firms. CCC has not independently verified the accuracy or completeness of any such third-party information. You ...

Summary of CCC Intelligent Solutions Holdings (CCCS) FY Conference Company Overview - CCC Intelligent Solutions Holdings operates as a Software as a Service (SaaS) company focused on the auto insurance ecosystem, connecting insurance companies, repair facilities, parts providers, and OEMs [3][4] - The U.S. auto insurance market involves over $300 billion in premiums, with significant portions allocated to claims, including physical damage, casualty, and loss adjustment expenses [3][4] Financial Profile - The global addressable market is approximately $35 billion, with the U.S. market at about $15 billion [7] - The business model is durable, with 96% of revenue from software and 80% from subscriptions [7][8] - Gross dollar retention is between 98% and 99%, with long-term organic revenue growth targets of 7% to 10% [8] - Current margins are in the low 40s, expected to rise to mid-40s over the next several years [8][9] - The acquisition of EvolutionIQ is anticipated to add 200 basis points to growth and assist in margin progression [9][36] Market Dynamics and Drivers - Increasing vehicle complexity, rising parts costs, and labor shortages are significant challenges for the auto insurance ecosystem [12] - CCC utilizes sophisticated software workflows and AI to manage this complexity and improve operational efficiency [12][15] - The company has a vast dataset of approximately 2 trillion data points, which enhances accuracy in claims processing [13][14] Innovation and Emerging Opportunities - CCC has invested heavily in AI, with capabilities that assist in processing complex medical claims and improving customer interactions [18][19] - Emerging solutions, including AI-driven tools for casualty claims and diagnostics for repair facilities, are expected to contribute significantly to growth [25][29] - The company is expanding its offerings to include capabilities for electric vehicle (EV) manufacturers and enhancing its casualty solutions through the EvolutionIQ acquisition [31][33] Claims Volume and Consumer Behavior - There has been a 4% decrease in claim volume over the past decade, while organic revenue growth has increased by approximately 40% [41] - Consumers are increasingly self-paying for lower dollar claims, leading to a rise in self-pay rates from 11% to 25% [46] - The company anticipates that as premium rates normalize, the filing of claims will increase [46] Long-term Outlook - CCC's growth plans are robust, with significant revenue and earnings growth since going public [53] - The company is not reliant on a single solution for growth but has a diverse portfolio of opportunities [55] - The management sees strong value in helping customers digitize and transform their operations, which is a key driver for future growth [53]

Group 1 - CCC Intelligent Solutions Holdings Inc. reported quarterly earnings of $0.08 per share, matching the Zacks Consensus Estimate, compared to $0.09 per share a year ago [1] - The company posted revenues of $251.57 million for the quarter ended March 2025, exceeding the Zacks Consensus Estimate by 0.75%, and up from $227.24 million year-over-year [2] - Over the last four quarters, CCC Intelligent Solutions has surpassed consensus revenue estimates four times [2] Group 2 - The stock has underperformed, losing about 21.7% since the beginning of the year, while the S&P 500 declined by 3.9% [3] - The current consensus EPS estimate for the upcoming quarter is $0.09 on revenues of $258.95 million, and for the current fiscal year, it is $0.37 on revenues of $1.06 billion [7] - The Internet - Software industry is currently in the top 35% of Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

Financial Data and Key Metrics Changes - In Q1 2025, total revenue was $252 million, growing 11% year over year, exceeding guidance and crossing the $1 billion revenue run rate for the first time [7][24] - Adjusted EBITDA was $99 million, also ahead of guidance, with an adjusted EBITDA margin of 39% [8][30] - Adjusted gross profit was $192 million, with a gross profit margin of 77%, slightly down from 78% in Q1 2024 [28] Business Line Data and Key Metrics Changes - Approximately four percentage points of revenue growth came from cross-sell, upsell, and adoption of solutions, while three points came from new logos, and four points from Evolution IQ [25] - Emerging solutions contributed about four percentage points to total revenue, marking the fastest-growing portion of the portfolio [25] Market Data and Key Metrics Changes - Filed auto physical damage claims declined by 9% year over year in Q1 2025, attributed to economic sensitivity and increased consumer self-pay [14][52] - Consumer self-pay for repairs increased to about 25%, up from 11-12% three years ago, indicating a shift in consumer behavior [61] Company Strategy and Development Direction - The company aims to help clients manage complexity in the insurance economy through real-time data and AI-powered workflows [10][12] - Continued investment in innovation and expansion of established solutions is seen as a pathway for growth, particularly in the casualty market [18][23] - The renewal of long-term contracts with clients like Caliber Collision demonstrates the strategic role of the company in the auto insurance economy [15][16] Management's Comments on Operating Environment and Future Outlook - Management noted that the current macroeconomic environment is creating near-term headwinds, particularly in claim volumes and client buying behavior [33][34] - Despite these challenges, the company remains confident in its long-term growth potential and ability to assist clients with digital transformation [38] Other Important Information - The company repurchased 7 million shares for $72 million under a $300 million share repurchase program [31] - Guidance for Q2 2025 revenue is set at $255.5 million to $257.5 million, representing 10-11% growth year over year [32] Q&A Session Summary Question: How does the company see the claims environment recovering? - Management indicated that claims volume has historically fluctuated and that the current decline is more about claims not being filed rather than a decrease in accidents [42] Question: What is the impact of the macroeconomic environment on ROI and emerging solutions? - The company emphasized that its solutions are ROI-based, which helps maintain demand even in uncertain conditions [45] Question: How long do weaker claims volumes typically last? - Management noted that such cycles can last from one to two years, with current consumer behavior influencing the filing of claims [51][52] Question: What is the current share of self-claim repair by consumers? - Self-pay by consumers has increased to about 25%, indicating a significant change in behavior compared to previous years [61] Question: What is the impact of tariffs on parts suppliers? - Management stated that tariffs have minimal impact on the company's subscription-based revenue model, although they are monitoring the situation closely [64] Question: What is the pricing model for MedHUB? - MedHUB will be monetized through a subscription-based revenue model, targeting a five to one ROI for clients [86][87]

Financial Performance - Revenues for the three months ended March 31, 2025, increased to $251.6 million, up 10.7% from $227.2 million in the same period of 2024[13] - Gross profit for the same period was $185.0 million, representing a gross margin of approximately 73.4%[13] - The net loss attributable to common stockholders for Q1 2025 was $18.7 million, compared to a net loss of $1.7 million in Q1 2024, reflecting a substantial increase in losses[13] - For the three months ended March 31, 2025, the net loss was $17,421 thousand, compared to a net loss of $597 thousand for the same period in 2024[22] - The basic and diluted net loss per share for the first quarter of 2025 was $(0.03), compared to $(0.00) in the same quarter of 2024[140] - The company reported a significant income tax benefit of $(13,353,000) for the three months ended March 31, 2025, compared to $(4,237,000) in 2024[140] Operating Expenses - Operating expenses rose to $195.7 million, compared to $160.1 million in the prior year, with significant increases in research and development (up 24.8%) and selling and marketing expenses (up 35.7%)[13] - Total segment expenses for the three months ended March 31, 2025, were $268,986,000, compared to $227,834,000 in 2024, representing an increase of 18.1%[140] - Adjusted expenses for products and technology were $74,623,000, up from $65,382,000, marking a rise of 14.5% year-over-year[140] - The total stock-based compensation expense for the three months ended March 31, 2025, was $61,048 thousand, up from $44,971 thousand in the same period of 2024[22] Assets and Liabilities - Total current assets decreased to $297.9 million as of March 31, 2025, down from $564.7 million at the end of 2024[11] - Total liabilities increased to $1.43 billion as of March 31, 2025, compared to $1.16 billion at the end of 2024[11] - The company reported a cash and cash equivalents balance of $130.3 million, significantly lower than $399.0 million at the end of 2024[11] - The company’s intangible assets increased to $1.08 billion as of March 31, 2025, up from $934.3 million at the end of 2024[11] - Accounts receivable—Net decreased to $99.6 million as of March 31, 2025, from $106.6 million as of December 31, 2024[65] - Total other current assets increased to $36.3 million as of March 31, 2025, from $29.0 million as of December 31, 2024[67] Acquisition and Growth Strategy - The company acquired EvolutionIQ, Inc. for $415,133 thousand, net of cash acquired, during the three months ended March 31, 2025[22] - The Company completed the acquisition of EvolutionIQ for a total consideration of $674.3 million, which included cash consideration of $420.6 million and the fair value of common stock issued amounting to $250.4 million[38] - Goodwill from the acquisition of EvolutionIQ was recorded at $538.8 million, primarily due to expected synergies and the value of the acquired workforce[42] - Future growth strategies include potential acquisitions and partnerships to strengthen competitive positioning in the market[8] Revenue Breakdown - Software subscriptions accounted for $242.5 million of total revenues in Q1 2025, up from $218.1 million in Q1 2024, indicating a growth of about 11.2%[51] - Revenues from the United States accounted for $249,875,000, which was 99.3% of total revenues for the quarter[147] - The Domestic Segment revenue was $249,875,000, up from $225,566,000, reflecting a growth of 10.8% year-over-year[140] Cash Flow and Financing - Cash provided by operating activities was $58,492 thousand for the three months ended March 31, 2025, compared to $55,235 thousand for the same period in 2024[22] - The ending cash and cash equivalents balance was $130,323 thousand as of March 31, 2025, down from $398,983 thousand at the beginning of the period[22] - The Company incurred $3.8 million in costs related to the amendments to the 2021 Credit Agreement, which are being amortized to interest expense over the term of the Term Loan[83] Stock and Equity - The Company’s total stockholders' equity as of March 31, 2025, was $2,177,460 thousand, compared to $1,782,277 thousand as of December 31, 2023[19] - As of March 31, 2025, there were 658,636,205 shares of common stock issued and outstanding, an increase from 629,207,115 shares as of December 31, 2024, representing a growth of approximately 4.6%[104] - The company issued 10,356,096 restricted shares of common stock as part of the acquisition of EvolutionIQ, with a fair value of $118.2 million at the acquisition date[105] - In March 2025, the company repurchased 7,000,000 shares of common stock for an aggregate price of $72.3 million, with $227.7 million remaining available under the Share Repurchase Program[106][110] Other Financial Metrics - The company recognized $42.3 million in revenue from amounts in deferred revenue as of December 31, 2024, for the three months ended March 31, 2025[52] - Deferred revenue increased to $69.2 million as of March 31, 2025, compared to $47.6 million at the end of Q1 2024[52] - The fair value of acquired technology was estimated at $134.3 million, with an estimated useful life of 8 years and a discount rate of 12.0%[44] - The Company recognized an income tax benefit of $13.4 million for the three months ended March 31, 2025, compared to $4.2 million for the same period in 2024[62]

Financial Data and Key Metrics Changes - In Q1 2025, total revenue was $252 million, growing 11% year over year, exceeding guidance and crossing the $1 billion revenue run rate threshold for the first time [6][24] - Adjusted EBITDA was $99 million, also ahead of guidance, with an adjusted EBITDA margin of 39% [6][30] - Adjusted gross profit was $192 million, with a gross profit margin of 77%, slightly down from 78% in Q1 2024 [28] Business Line Data and Key Metrics Changes - Approximately 4 percentage points of revenue growth came from cross-sell, upsell, and adoption of solutions, while 3 points came from new logos, and 4 points from Evolution IQ [25] - Emerging solutions contributed about 4 percentage points to total revenue in Q1 2025, marking the fastest growing portion of the portfolio [25][19] Market Data and Key Metrics Changes - Filed auto physical damage claims declined by 9% year over year in Q1 2025, attributed to economic sensitivity and rising auto insurance premiums [13][12] - Consumer self-pay for repairs increased to about 25%, up from 11-12% three years ago, indicating a shift in consumer behavior [62] Company Strategy and Development Direction - The company focuses on helping clients manage complexity in the insurance economy through real-time data and AI-powered workflows [10][11] - Continued investment in innovation and expansion of established solutions is seen as a pathway for growth, particularly in the casualty insurance sector [18][21] - The renewal of long-term contracts with major clients like Caliber Collision highlights the strategic role of the company in the auto insurance economy [14][15] Management's Comments on Operating Environment and Future Outlook - Management noted that the current macroeconomic environment is creating headwinds, particularly in claim volumes and client buying behavior, but remains optimistic about long-term growth [34][35] - The company expects revenue growth for 2025 to be modestly reduced, with total revenue guidance now at $1.046 billion to $1.056 billion [32][33] Other Important Information - The company repurchased 7 million shares for $72 million under a $300 million share repurchase program [30] - Stock-based compensation was 24% of revenue in Q1, expected to moderate throughout the year [36][39] Q&A Session Summary Question: Dynamics in the claims environment and recovery expectations - Management indicated that claims volume has historically fluctuated and that the current decline is more about claims not being filed rather than a decrease in accidents [43] Question: Previous cycles of claims weakness - Management noted that weaker claims volumes can last from one to two years, with current consumer behavior impacting filing rates [52] Question: Organic growth in Q1 - Organic growth was confirmed at 10.6%, with Evolution IQ contributing 4 points to growth [60] Question: Demand elasticity of Evolution IQ and casualty business - Management clarified that the majority of Evolution IQ's revenue is not correlated with auto frequency, and the business continues to perform well [78][81] Question: Progress of emerging solutions - Emerging solutions are seeing strong demand, with contributions increasing from one point to two points of growth [56][90] Question: Impact of tariffs on parts suppliers - Management stated that tariffs have minimal impact on the subscription-based revenue model, although they are monitoring the situation closely [65] Question: MedHUB's efficiency and pricing model - MedHUB is expected to deliver significant ROI, with a subscription-based revenue model planned for the future [86]