Financial Performance - Revenues for Q3 2024 reached $238.481 million, a 7.4% increase from $221.147 million in Q3 2023[12] - Gross profit for Q3 2024 was $183.420 million, compared to $163.121 million in Q3 2023, reflecting a 12.4% increase[12] - Operating income for Q3 2024 improved to $28.688 million, up from $16.571 million in Q3 2023[12] - Net income attributable to common stockholders for Q3 2024 was $2.812 million, a significant recovery from a loss of $22.212 million in Q3 2023[12] - Comprehensive income for Q3 2024 was $2.929 million, recovering from a loss of $22.235 million in Q3 2023[12] - Total revenues for the nine months ended September 30, 2024, reached $698,336,000, representing an increase of 9.5% from $637,777,000 in the same period of 2023[77] Assets and Liabilities - Total current assets increased to $467,772,000 as of September 30, 2024, up from $349,999,000 at December 31, 2023, representing a growth of approximately 33.7%[11] - Total liabilities decreased to $1,154,163,000 from $1,252,179,000, reflecting a reduction of approximately 7.8%[11] - Current liabilities totaled $146,834,000, down from $152,907,000, indicating a decrease of approximately 4%[11] - Total assets as of September 30, 2024, were $6,208 million, with total liabilities of $51,601 million[32] Cash Flow and Investments - The cash provided by operating activities for the nine months ended September 30, 2023, was $163,138,000, compared to $170,241,000 in 2024[20] - The company reported a net cash used in investing activities of $45,073,000 for the nine months ended September 30, 2023[20] - Cash and cash equivalents at the end of the period were $286,303,000 for September 30, 2024, down from $448,733,000 in 2023[20] Revenue Breakdown - Software subscriptions revenue for the three months ended September 30, 2024, was $229.4 million, up 8.0% from $212.5 million in the prior year[25] - Revenues from the United States for the three months ended September 30, 2024, were $236,761,000, an increase of 7.2% from $219,573,000 in the same period of 2023[77] - Revenue recognized from deferred revenue for the three months ended September 30, 2024, was $42.8 million, compared to $37.1 million for the same period in 2023, reflecting a 18.9% increase[25] Expenses - The company reported a total operating expense of $154.732 million in Q3 2024, up from $146.550 million in Q3 2023[12] - Research and development expenses increased to $49.525 million in Q3 2024, compared to $43.532 million in Q3 2023, marking a 13.8% rise[12] - Interest expense for Q3 2024 was $16.379 million, compared to $14.633 million in Q3 2023, indicating an increase in financing costs[12] Stock and Equity - As of September 30, 2024, the total outstanding shares increased to 634,633,179, with a total stockholders' equity of $2,043,478[18] - The weighted-average shares used in computing net income per share were 615,857,231 for Q3 2024, down from 624,976,557 in Q3 2023[12] - The Company granted 10,371,334 restricted stock units (RSUs) during the nine months ended September 30, 2024, with a weighted average value of $11.85 per share[61] Intangible Assets and Goodwill - Goodwill remained stable at $1,417,724,000, unchanged from December 31, 2023[11] - The company reported a net increase in intangible assets, which decreased to $952,392,000 from $1,015,046,000, a decline of about 6.2%[11] - The company did not recognize any impairment charges related to goodwill during the three and nine months ended September 30, 2024[45] Other Financial Metrics - The company incurred an impairment of goodwill and intangible assets amounting to $82,742,000 in 2023[20] - The company recognized an income tax provision of $8.9 million for the three months ended September 30, 2024, compared to $1.8 million for the same period in 2023[34] - The company recorded impairment charges of $5.3 million related to intangible assets during the nine months ended September 30, 2023[46] Market Position - The Company is a leading SaaS platform for the property and casualty insurance economy, with operations primarily in the US and China[21]

Revenue and Profit Performance - Total revenue for Q3 2024 was $238.5 million, an 8% increase from $221.1 million in Q3 2023[2] - Total revenue for the three months ended September 30, 2024, was $238.5 million, compared to $221.1 million in the same period in 2023, representing a 7.8% increase[14] - Adjusted Gross Profit for the three months ended September 30, 2024, was $185.93 million, with a margin of 78%, up from $172.12 million and 78% in 2023[16] - Adjusted Gross Profit for the nine months ended September 30, 2024, was $545.02 million, with a margin of 78%, up from $490.73 million and 77% in 2023[16] - Gross profit for the three months ended September 30, 2024, was $183.4 million, up from $163.1 million in the same period in 2023, reflecting a 12.4% increase[14] - Gross Profit Margin for the three months ended September 30, 2024, was 77%, up from 74% in 2023[16] - Adjusted Operating Income for the three months ended September 30, 2024, was $91.20 million, compared to $82.69 million in 2023[18] - Operating income for the three months ended September 30, 2024, was $28.7 million, compared to $16.6 million in the same period in 2023, a 72.9% increase[14] - Net income attributable to CCC Intelligent Solutions Holdings Inc. common stockholders for the three months ended September 30, 2024, was $2.8 million, compared to a net loss of $22.2 million in the same period in 2023[14] - Net income for September 30, 2024, was $24.98 million, compared to a net loss of $116.36 million in 2023[15] - Net income for Q3 2024 was $4.13 million, a significant improvement from a net loss of $21.20 million in Q3 2023[19] - Comprehensive income attributable to CCC Intelligent Solutions Holdings Inc. common stockholders for the three months ended September 30, 2024, was $2.9 million, compared to a comprehensive loss of $22.2 million in the same period in 2023[14] Adjusted EBITDA and Net Income - Adjusted EBITDA for Q3 2024 was $101.6 million, a 9% increase from $92.9 million in Q3 2023[2] - Adjusted EBITDA for Q3 2024 was $101.55 million, up from $92.93 million in Q3 2023, with an EBITDA margin of 43% compared to 42% in the same period last year[19] - Adjusted net income for Q3 2024 was $62.7 million, up from $57.2 million in Q3 2023[2] - Adjusted net income for Q3 2024 was $62.58 million, compared to $57.16 million in Q3 2023, with adjusted net income per share (diluted) of $0.10, up from $0.09[20] Financial Guidance - Q4 2024 revenue guidance is projected between $242.5 million and $246.5 million[7] - Full-year 2024 revenue guidance is estimated between $941.0 million and $945.0 million[7] - Adjusted EBITDA for full-year 2024 is expected to be between $394.0 million and $396.0 million[7] Cash Flow and Liquidity - Net cash provided by operating activities for September 30, 2024, was $170.24 million, up from $163.14 million in 2023[15] - Free cash flow for Q3 2024 was $49.38 million, an increase from $46.40 million in Q3 2023[21] - Cash and cash equivalents increased to $286.3 million as of September 30, 2024, from $195.6 million as of December 31, 2023, a 46.4% increase[13] - Cash and cash equivalents at the end of September 30, 2024, were $286.30 million, down from $448.73 million in 2023[15] Balance Sheet and Equity - Total assets as of September 30, 2024, were $3.11 billion, up from $3.05 billion as of December 31, 2023[13] - Total current liabilities decreased to $146.8 million as of September 30, 2024, from $152.9 million as of December 31, 2023[13] - Total stockholders' equity increased to $1.94 billion as of September 30, 2024, from $1.78 billion as of December 31, 2023[13] Expenses and Costs - Research and development expenses for the three months ended September 30, 2024, were $49.5 million, up from $43.5 million in the same period in 2023, a 13.8% increase[14] - Adjusted Operating Expenses for the three months ended September 30, 2024, were $94.73 million, up from $89.43 million in 2023[17] - Stock-based compensation expense for the three months ended September 30, 2024, was $42.64 million, compared to $40.21 million in 2023[18] - Stock-based compensation expense for Q3 2024 was $42.64 million, up from $40.21 million in Q3 2023[20] - Interest expense for Q3 2024 was $16.38 million, compared to $14.63 million in Q3 2023[19] - Amortization of intangible assets for the three months ended September 30, 2024, was $17.94 million, consistent with 2023[17] - Amortization of intangible assets for Q3 2024 was $17.94 million, consistent with Q3 2023[19] - Litigation costs for Q3 2024 were $1.61 million, slightly higher than $1.40 million in Q3 2023[19] - Purchases of software, equipment, and property for Q3 2024 were $13.85 million, down from $14.10 million in Q3 2023[21] Product and Market Developments - CCC launched CCC® Intelligent Reinspection, leveraging AI to streamline auto insurer workflows[5] - CCC® Payroll was introduced to simplify payroll management for collision repair shops[5] - Over 2,000 repair facilities adopted CCC® Build Sheets within three months of its launch[6] Share Information - Weighted average diluted shares outstanding for Q3 2024 were 642.40 million, down from 657.57 million in Q3 2023[20]

Group 1 - Arch Capital Group (ACGL) has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while CCC Intelligent Solutions Holdings Inc. (CCCS) has a Zacks Rank of 3 (Hold) [3] - Value investors utilize various metrics to identify undervalued companies, including P/E ratio, P/S ratio, earnings yield, and cash flow per share [4] - ACGL's forward P/E ratio is 11.63, significantly lower than CCCS's forward P/E of 29.85, suggesting ACGL is more attractively priced [5] Group 2 - ACGL has a PEG ratio of 1.90, while CCCS has a higher PEG ratio of 2.74, indicating that ACGL may offer better value relative to its expected earnings growth [5] - ACGL's P/B ratio is 1.98, compared to CCCS's P/B of 3.57, further supporting the argument that ACGL is the superior value option [6] - Based on the valuation metrics, ACGL has a Value grade of B, while CCCS has a Value grade of F, highlighting ACGL's stronger position in terms of value [6]

Core Viewpoint - CCC Intelligent Solutions (CCCS) has been downgraded from a buy to a hold rating due to concerns over the growth of emerging solutions and potential consensus cuts impacting valuation [2][5][7] Financial Performance - CCCS reported a 10% year-over-year revenue growth in Q2 2024, reaching $232.6 million, surpassing the street's estimate of $230.3 million [3] - Subscription revenue also grew by approximately 10% year-over-year to $223 million, with an EBITDA margin of 41.2%, exceeding the street's estimate of 39.5% [3] - The first half of 2024 showed a year-over-year growth of around 10%, with adjusted EBITDA annualized at $360 million, above the expectation of $346 million [3] Operating Metrics - Software gross dollar retention (GDR) remained at 99%, and net dollar retention (NDR) was sustained at 107%, indicating strong cross-selling opportunities [3] - Over 600 new repair shops were added in the first half of 2024, bringing the total to more than 30,000 on the CCCS platform [3] Emerging Solutions - Management has reduced expectations for the growth contribution from emerging solutions, leading to a cut in FY24 revenue guidance to a midpoint of 7.2% [5] - The prolonged pilot periods for customers evaluating these solutions have resulted in slower revenue conversion, impacting growth expectations [5] - The adoption of Estimate-STP is increasing, with over 30 insurers using it, accounting for 3% of total claims processed through the CCCS platform [4] Valuation and Market Sentiment - CCCS now trades at 16.6x forward EBITDA, near an all-time low, but could decline further if growth dips to high single-digit levels [5] - The market sentiment is at a crossroads, with concerns that emerging solutions may not meet growth expectations, potentially leading to further consensus cuts [5][6] Future Outlook - The recommendation is to hold in the near term, as the core business remains resilient, but uncertainty around emerging solutions' growth trajectory poses risks [7] - Management noted encouraging pipeline and customer demand, suggesting potential for recovery if demand for emerging solutions strengthens [6][7]

CCC Intelligent Solutions Holdings, Inc. (NASDAQ:CCCS) Q2 2024 Earnings Conference Call July 30, 2024 5:00 PM ET Corporate Participants Bill Warmington - Vice President, Investor Relations Githesh Ramamurthy - Chairman and Chief Executive Officer Brian Herb - Chief Financial Officer Conference Call Participants Dylan Becker - William Blair Alexei Gogolev - JPMorgan Samad Samana - Jefferies Saket Kalia - Barclays Gabriela Borges - Goldman Sachs Shlomo Rosenbaum - Stifel Chris Moore - CJS Securities Gary Pres ...

CCC Intelligent Solutions Holdings Inc. (CCCS) came out with quarterly earnings of $0.09 per share, beating the Zacks Consensus Estimate of $0.08 per share. This compares to earnings of $0.07 per share a year ago. These figures are adjusted for non-recurring items. Over the last four quarters, the company has surpassed consensus EPS estimates two times. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on man ...

Platform and Network - CCC's platform connects over 35,000 businesses and processes more than $1 trillion of historical data, leveraging AI and IoT for insurance and repair solutions[95] - The company has over 300 insurers and 30,000 repair facilities on its network, with 27 of the top 30 U.S. automotive insurance carriers as customers[97] - CCC's platform includes more than 5,500 parts suppliers and 13 of the top 15 automotive manufacturers based on new vehicle sales[97] AI and Technology Investments - CCC's AI solutions are actively used by over 100 U.S. auto insurers and 8,000 U.S. collision repairers in production environments[95] - The company is investing in new solutions to digitize the entire automotive claims lifecycle and expand into adjacent insurance lines[97] - CCC's technology investments focus on digitizing complex processes and interactions across the P&C insurance ecosystem[95] Financial Performance - Revenues increased by $20.9 million to $232.6 million, or 9.9%, driven by 7% growth from existing customer upgrades and 3% growth from new customers[114] - Software subscription revenues accounted for $223.0 million, or 96% of total revenue for the three months ended June 30, 2024[114] - Gross profit increased by $24.7 million to $177.3 million, or 16.2%, with a gross profit margin of 76.2%[116] - Operating income improved to $22.5 million from a loss of $73.2 million in the prior year[112] - Net income attributable to common stockholders was $20.2 million, compared to a loss of $97.7 million in the prior year[112] - Revenue increased by $43.2 million (10.4%) to $459.9 million for the six months ended June 30, 2024 compared to the same period in 2023[136] - Gross profit rose by $44.8 million (14.9%) to $345.2 million for the six months ended June 30, 2024[136] - Net income attributable to common stockholders improved by $114.0 million to $18.5 million for the six months ended June 30, 2024 compared to a loss of $95.5 million in the same period of 2023[136] - Adjusted Gross Profit increased to $359.1 million, with an Adjusted Gross Profit Margin of 78% for the six months ended June 30, 2024[160] - Adjusted EBITDA for the six months ended June 30, 2024, was $189.5 million, compared to $160.4 million for the same period in 2023[169] - Adjusted EBITDA margin for the six months ended June 30, 2024, was 41%, compared to 39% for the same period in 2023[165] - Adjusted operating income for the six months ended June 30, 2024, was $170.1 million, compared to $142.1 million for the same period in 2023[168] - Net income for the six months ended June 30, 2024, was $20.8 million, compared to a net loss of $95.2 million for the same period in 2023[169] - Adjusted Net Income for Q2 2024 was $56.2 million, compared to $47.8 million in Q2 2023[171] Customer Retention and Growth - CCC's Software Net Dollar Retention Rate (NDR) was 107% as of June 30, 2024, indicating strong revenue retention and growth from existing customers[101] - The Software Gross Dollar Retention Rate (GDR) was 99% as of June 30, 2024, reflecting high customer retention[109] - The company's Software NDR and GDR metrics exclude smaller customers representing less than 5% of total revenue within specific sales channels[102][107] - The company's customer agreements include long-term contracts, contributing to the stability of its revenue base[97] Expenses and Costs - Cost of revenues decreased by $3.8 million to $55.3 million, or 6.4%, primarily due to lower amortization of acquired technologies[115] - Research and development expense increased by $5.9 million to $49.3 million, or 13.6%, mainly due to higher stock-based compensation[117] - Selling and marketing expense increased by $0.4 million to $36.3 million, or 1.1%, driven by higher marketing costs[118] - General and administrative expense increased by $5.1 million to $51.3 million, or 11.1%, primarily due to higher personnel-related costs[119] - Amortization of acquired technologies decreased by $4.6 million, or 68.6%, to $2.1 million[115] - Operating expenses decreased by $45.4 million (12.6%) to $314.9 million for the six months ended June 30, 2024[136] - Research and development expenses increased by $14.4 million (17.0%) to $98.7 million for the six months ended June 30, 2024[136] - General and administrative expenses rose by $20.3 million (23.1%) to $108.3 million for the six months ended June 30, 2024[136] - Total stock-based compensation expense increased by $20.4 million (31.5%) to $85.1 million for the six months ended June 30, 2024[136] - Selling and marketing expense increased by $2.4 million to $71.9 million, or 3.5%, for the six months ended June 30, 2024[147] - General and administrative expense increased by $20.3 million to $108.3 million, or 23.1%, for the six months ended June 30, 2024[148] - Interest expense increased by $5.2 million to $33.1 million, or 18.7%, for the six months ended June 30, 2024[152] Cash Flow and Liquidity - Free Cash Flow for Q2 2024 was $36.2 million, down from $55.0 million in Q2 2023[172] - The company generated $107.0 million in cash flows from operating activities in the first six months of 2024[173] - As of June 30, 2024, the company had $237.9 million in cash and cash equivalents[174] - The company has $780.0 million in outstanding term loan principal as of June 30, 2024[174] - The weighted-average interest rate on the Term B Loan was 7.8% in Q2 2024, up from 7.4% in Q2 2023[177] - The company has $249.3 million available to borrow under the 2021 Revolving Credit Facility as of June 30, 2024[179] - Net cash provided by operating activities was $107.0 million for the six months ended June 30, 2024, compared to $102.6 million in 2023[180] - Net cash used in investing activities was $31.2 million for the six months ended June 30, 2024, primarily due to capitalized internally developed software projects and purchases of software, equipment, and property[180] - Net cash used in financing activities was $33.3 million for the six months ended June 30, 2024, mainly due to $52.7 million payments for employee tax liabilities related to the net share settlement of employee equity awards[180] - Change in cash and cash equivalents was $42.3 million for the six months ended June 30, 2024, compared to $79.8 million in 2023[180] - Proceeds from stock option exercises were $21.6 million for the six months ended June 30, 2024[180] Debt and Financing - The company entered into a $800.0 million Term B Loan and a $250.0 million Revolving Credit Facility under the 2021 Credit Agreement[61] - As of June 30, 2024, the outstanding amount on the Term B Loan was $780.0 million, with $8.0 million classified as current[61] - The weighted-average interest rate on the Term B Loan was 7.8% for the three months ended June 30, 2024[63] - The company has an outstanding standby letter of credit for $0.7 million, reducing the available borrowing under the Revolving Credit Facility to $249.3 million as of June 30, 2024[63] - The interest rate cap agreements have an aggregate notional amount of $600.0 million with a one-month SOFR cap rate of 4.00% through July 2025[65] - Cash received from interest rate cap agreements was $4.0 million for the six months ended June 30, 2024[65] - The aggregate fair value of the interest rate cap agreements was $6.1 million as of June 30, 2024[65] - The company entered into interest rate cap agreements with a $600.0 million notional amount and a 4.00% SOFR cap rate[179] Assets and Liabilities - Accounts receivable net of allowance for credit losses was $120.9 million as of June 30, 2024[45] - The allowance for credit losses and sales reserves was $4.1 million as of June 30, 2024[47] - No customer accounted for more than 10% of accounts receivable as of June 30, 2024[47] - Other current assets decreased from $32.36 million in December 2023 to $26.59 million in June 2024[48] - Software, equipment, and property increased from $285.42 million in December 2023 to $314.68 million in June 2024[49] - Depreciation and amortization expense for software, equipment, and property was $19.2 million for the six months ended June 30, 2024, up from $18.0 million in the same period in 2023[51] - Total lease costs for the six months ended June 30, 2024 were $4.90 million, compared to $4.89 million in the same period in 2023[52] - Goodwill impairment charge of $77.4 million was recorded for the China reporting unit in May 2023[54] - Intangible assets net carrying amount was $970.51 million as of June 30, 2024, down from $1.02 billion in December 2023[56] - Future amortization expense for intangible assets is projected to be $780.04 million from 2024 onwards[57] Stock and Compensation - Common stock issued and outstanding increased from 603.13 million shares in December 2023 to 622.80 million shares in June 2024[74] - Secondary offerings resulted in the sale of 141.45 million shares of common stock during the six months ended June 30, 2024[75] - The company granted 10,047,960 RSUs in the six months ended June 30, 2024, with 7,791,614 having time-based vesting and 2,256,346 having performance-based vesting[76] - 12,334,980 RSUs vested in the six months ended June 30, 2024, with 4,537,417 withheld for employee tax obligations[76] - Modifications to performance-based RSUs resulted in an incremental stock-based compensation expense of $67.0 million, recognized ratably over the modified performance periods[76] - The company granted 761,743 stock options under the Cayman Incentive Plans in the six months ended June 30, 2024, with an exercise price equal to the fair value of the underlying shares at the grant date[78] - As of June 30, 2024, there was $209.5 million of unrecognized stock compensation expense related to unvested time-based awards, expected to be recognized over a weighted-average period of 2.7 years[78] - As of June 30, 2024, there was $70.2 million of unrecognized stock-based compensation expense related to unvested performance-based awards, expected to be recognized over a weighted-average period of 1.3 years[78] - Stock-based compensation expense was $85.1 million for the six months ended June 30, 2024[180] Non-Cash Items and Adjustments - The company recognized a $16.0 million income from change in fair value of warrant liabilities for the three months ended June 30, 2024 compared to a $20.4 million expense in the same period of 2023[132] - The company recognized income of $14.4 million from a change in fair value of warrant liabilities for the six months ended June 30, 2024[154] - Net income for the six months ended June 30, 2024, was $20.8 million, adjusted for $111.2 million of non-cash items[180] - Depreciation and amortization expenses were $63.7 million for the six months ended June 30, 2024[180] - Increase in accounts receivable was $18.6 million due to timing of payments for the six months ended June 30, 2024[180] - Decrease in accrued expenses was $12.7 million due to timing of cash disbursements and employee incentive plan payments for the six months ended June 30, 2024[180]

July 30, 2024 – 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 innova ...

supersizer Investment action I recommended a buy rating for CCC Intelligent Solutions (NASDAQ:CCCS) when I wrote about it during last November, as I gained confidence in CCCS's ability to continue its positive growth trend. Based on my current outlook and analysis of CCCS, I recommend a buy rating. My key update to my thesis is that I expect CCCS to continue seeing low-teens growth as the growth runway is still long, and the new IX Cloud should make the CCCS platform even stickier, which will provide more o ...

CCC Intelligent Solutions Holdings, Inc. (NASDAQ:CCCS) Q1 2024 Earnings Conference Call April 30, 2024 5:00 PM ET Company Participants William Warmington - VP, IR Githesh Ramamurthy - Chairman & CEO Brian Herb - EVP, CFO & Chief Administrative Officer Conference Call Participants Saket Kalia - Barclays Bank Michael Funk - Bank of America Merrill Lynch Tyler Radke - Citigroup Christopher Moore - CJS Securities Joshua Baer - Morgan Stanley Alexei Gogolev - JPMorgan Chase & Co. Gabriela Borges - Goldman Sachs ...