Financial Data and Key Metrics Changes - In Q1 2023, total revenue was $205 million, reflecting a 10% year-over-year increase and exceeding guidance [9][37] - Adjusted EBITDA for the quarter was $79.5 million, an 8% increase year-over-year, with an adjusted EBITDA margin of 39% [41][51] - Software gross dollar retention (GDR) was 99%, consistent with 2022, indicating strong customer retention [38] - Adjusted gross profit margin decreased to 76% from 78% in Q1 2022, primarily due to higher depreciation expenses [47][40] Business Line Data and Key Metrics Changes - The annualized run rate value of auto claims processed by Estimate-STP reached over $1 billion, more than 10 times the run rate in March 2022 [28] - In Q1 2023, over 0.5 million scanned vehicles were verified on the CCC network, more than double the volume in Q1 2022 [30] - CCC Engage eliminated 50,000 phone calls from repair facilities monthly, generating 25,000 leads per month for repair facilities [32] Market Data and Key Metrics Changes - CCC's insurance revenue represents about 0.2% of the total annual amount insurers spend on claims, indicating significant growth potential [42] - The average total cost of repair for electric vehicles (EVs) in 2022 was 50% higher than for non-EVs, highlighting the increasing complexity and costs associated with EVs [16][125] Company Strategy and Development Direction - The company focuses on innovation and the development of AI-driven solutions to enhance efficiency and customer satisfaction in the P&C insurance economy [10][12] - CCC aims to digitize the P&C insurance economy, leveraging its interconnected network and advanced AI capabilities to drive growth [55][56] - The company is expanding its product offerings, including the integration of Safekeep's technology to streamline the subrogation process [21][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver on strategic and financial objectives, anticipating continued growth in revenue and profitability [35][56] - The digitization trend in the P&C insurance economy is expected to accelerate, providing a favorable environment for CCC's solutions [56][125] - Management noted that while Q2 may experience margin pressure due to seasonal expenses, they expect margins to improve in the second half of the year [52][91] Other Important Information - The company ended Q1 2023 with $338 million in cash and cash equivalents and $790 million in debt, resulting in a net leverage of approximately 1.5x adjusted EBITDA [49] - Free cash flow for Q1 was $18.5 million, down from $32.6 million in the prior year, primarily due to seasonal factors [50] Q&A Session Summary Question: Can you help us think about the quantification of Estimate-STP and Diagnostics and their impact on revenue growth? - Management indicated that as DWP increases, CCC's revenue as a percentage of total spend has slightly decreased, but they are optimistic about delivering more solutions [59][60] - The annualized run rate for Estimate-STP has reached $1 billion, with significant growth expected from emerging solutions [62][64] Question: Can you discuss the casualty business and its growth drivers? - The casualty business currently represents about 10% of revenue, with significant growth potential as the company expands its customer base in this area [81][72] Question: What are the margin dynamics for Q2 and the impact of dual hosting costs? - Management acknowledged margin pressure in Q2 due to headcount additions and nonrecurring costs, but they expect margins to improve in the second half of the year [91][92] Question: How is the AI boom influencing customer conversations and product adoption? - Increased visibility and awareness of AI are positively impacting customer interest and adoption of CCC's AI-driven products [85][88] Question: How does the company view the opportunity in diagnostics and scanning? - The complexity of vehicles necessitates increased scanning capabilities, and the company has seen a doubling of scans from Q1 2022 to Q1 2023 [111][112]

FORM 10-Q | --- | --- | --- | |---------------------------------------------------------------------------------------------------------------|----------------------------------------|--------------------------------------------------| | | | | | Delaware (State or other jurisdiction of incorporation or organization) | 001-39447 (Commission File Number) | 98-1546280 (IRS Employer Identification No.) | | 167 N. Green Street, 9th Floor Chicago, Illinois (Address Of Principal Executive Offices) | | 60607 (Zip C ...

Business Strategy and Growth - The company is focusing on the growth and expansion of its SaaS business, which requires significant investment in technical, financial, and sales resources[21] - Future success depends on the ability to sell additional solutions to existing customers; failure to do so could decrease revenue growth[21] - The company expects to continue expanding operations, which may require significant capital expenditures and could divert resources from other projects[23] - The company’s R&D efforts focus on enhancing solutions for operational efficiency, security, and privacy in the cloud, with a geographically dispersed engineering team[408] - The company’s marketing and sales organizations engage with decision-makers across the P&C insurance economy to drive software adoption and expansion[409] Market and Competition - The company anticipates that the market for cloud-based solutions will become increasingly competitive, necessitating greater investment in research and development[22] - Increased competition and rising inflation are impacting operating costs, with a substantial portion of costs being personnel-related[22] - The Chinese economy has experienced uneven growth, with a gradual slowdown since 2010, exacerbated by COVID-19, potentially reducing demand for the company's solutions and services[25] - The company faces increased risks related to operating in China, including potential violations of anti-corruption laws due to government involvement in the economy[25] Operational Challenges - The company has experienced operational challenges due to the pandemic, impacting productivity and the execution of business plans[23] - The company is monitoring the impact of public health outbreaks on technology spending by customers, which could affect demand for its solutions[21] - The reliance on third-party service providers for SaaS solutions poses risks related to system failures and service interruptions[33] - The company is migrating core IT systems to third-party cloud providers, and failure to manage this transition effectively could lead to service disruptions and unforeseen costs[33] Regulatory and Compliance Issues - The company is subject to extensive government regulations, which could reduce demand for its solutions if customers fail to comply[24] - The company may incur substantial expenses to comply with new data privacy regulations, which could adversely affect its operations and financial results[30] - Regulatory changes in data privacy could impose additional costs and liabilities, affecting the company's ability to deliver SaaS solutions[30] - The company is subject to increasing global trade laws and regulations, which may impact its operations[26] Financial Performance and Stability - The company faces potential penalties from service level agreements if it fails to meet stipulated service levels, which could adversely affect financial results[21] - As of December 31, 2022, total debt outstanding was $792 million under the Term B Loan, with an additional unused borrowing capacity of $249.3 million under the 2021 Revolving Credit Facility[34] - The aggregate market value of the company's common shares held by non-affiliates was approximately $1,273 million as of June 30, 2022[414] Data Management and Technology - The company processes over 176 terabytes of network traffic and executes nearly 4.9 billion database transactions each day[407] - The company received, processed, and stored nearly 800 million photos each year, demonstrating significant data handling capabilities[407] - The software suite is provided as SaaS with a system availability of 99.95% since 2018, ensuring high reliability for users[407] - The company has invested in hyperscale infrastructure to effectively process and store large amounts of information, enhancing operational efficiency[407] - In 2022, the company deployed more than 1,600 software releases, maintaining a release quality success rate averaging over 96% since 2018[407] - The company enables over 500 million interface transactions each year across its network of more than 300 insurers and 28,000 repair facilities[407] Customer Relationships - The company has established strong customer relationships with over 30,000 total customers in its end markets, with average contract durations of 3 to 5 years for insurance and repair customers[410] - In 2022, the company served 18 of the top 20 automotive insurers in the U.S. based on Direct Written Premium (DWP), with average customer relationships exceeding 10 years[410] - The company has more than 28,000 automotive collision repair customers, including national and regional MSOs, with an average contract duration of approximately 3 years[410] - The company collaborates with over 4,500 parts suppliers and 13 of the top 15 automotive manufacturers as of 2022, enhancing its position in the P&C insurance economy[410] Risk Management - The company maintains liability insurance for cyber incidents, but claims could exceed coverage limits, impacting financial stability[28] - Ongoing litigation, including class action lawsuits regarding valuation solutions, could result in significant costs and harm the company's reputation[31] - The company must navigate the complexities of open source software licensing, which could limit its proprietary technology and impact its business[28]

Financial Data and Key Metrics Changes - For Q3 2022, total revenue was $199 million, representing a 13% year-over-year increase and exceeding guidance [8][31] - Adjusted EBITDA was $78 million, up 11% year-over-year, with an adjusted EBITDA margin of 39.3% [8][38] - The company raised its revenue and adjusted EBITDA guidance for the full year based on strong Q3 performance [8] Business Line Data and Key Metrics Changes - Approximately 10% of revenue growth in Q3 was driven by cross-sell and upsell within the existing client base, with 99% of revenue being domestic [31][32] - Software gross dollar retention (GDR) was 99%, indicating strong customer retention [32] - Software net dollar retention (NDR) was 110%, reflecting successful cross-sell and upsell opportunities [34] Market Data and Key Metrics Changes - Repair costs in 2022 were over 12% higher than the same period in 2021, with a national average scheduling backlog for auto accident repair reaching 4.8 weeks [21] - The company noted that 99% of its revenue comes from domestic sources, highlighting its strong market presence [32] Company Strategy and Development Direction - The company focuses on continuous investment in innovation, leveraging a scalable cloud architecture to roll out new products quickly [10][11] - CCC aims to drive digital transformation in the auto insurance economy, with a strong emphasis on customer relationships and operational efficiencies [12][19] - The company is positioned to capitalize on the increasing complexity of vehicles and the need for digital solutions in the insurance sector [20][46] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the underlying momentum of the business and the long-term growth opportunities in their product portfolio [41][46] - The company anticipates durable growth in revenue and profitability, driven by the need for digitization across the property and casualty insurance economy [46] - Management highlighted the importance of customer adoption of new solutions as a key driver for future growth [52] Other Important Information - The company ended the quarter with $248 million in cash and cash equivalents and $794 million in debt, with a net leverage of approximately 1.8 times adjusted EBITDA [39] - Free cash flow for the quarter was $17.4 million, with a year-to-date conversion of approximately 43% of adjusted EBITDA into unlevered free cash flow [40] Q&A Session Summary Question: Insights on long-term growth rate and visibility into 2023 - Management indicated that adoption of newer solutions will drive growth rates, with a focus on customer feedback and product rollout [48][51] Question: Key projects for new Chief Commercial and Customer Success Officer - The new hire will focus on understanding customer needs and rolling out new solutions effectively [54] Question: Adoption of claims automation and future innovation - Management noted that early traction with Estimate-STP indicates strong potential for broader claims automation [56][58] Question: Impact of used vehicle values on the business - Management clarified that while total loss valuations have decreased, the business model remains unaffected due to its design [69][72] Question: Adoption catalysts for Estimate-STP - The increasing complexity of vehicles and the efficiency of AI solutions are expected to accelerate adoption [73][75] Question: Renewal pipeline outlook for 2023 - Management expressed confidence in the renewal pipeline and opportunities for cross-sell and upsell [90][93]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________________ to ________________ CCC INTELLIGENT SOLUTIONS HOLDINGS INC. (Exact name of registrant as specified in its charter) | --- | --- | --- | |------------ ...

CCC Intelligent Solutions Holdings Inc. (NASDAQ:CCCS) Q2 2022 Earnings Conference Call August 4, 2022 5:00 PM ET Company Participants William Warmington – Vice President-Investor Relations Githesh Ramamurthy – Chairman and Chief Executive Officer Brian Herb – Chief Financial Officer Conference Call Participants Dylan Becker – William Blair David Kelley – Jefferies Adi Ahire – Evercore ISI Chris Moore – CJS Securities Tyler Radke – Citi Gary Prestopino – Barrington Research Operator Greetings, ladies and gen ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________________ to ________________ CCC INTELLIGENT SOLUTIONS HOLDINGS INC. (Exact name of registrant as specified in its charter) | --- | --- | --- | |----------------- ...

CCC Intelligent Solutions Holdings Inc. (NASDAQ:CCCS) Q1 2022 Earnings Conference Call May 5, 2022 5:00 PM ET Company Participants Brian Denyeau – Managing Director-ICR, LLC Githesh Ramamurthy – Chairman and Chief Executive Officer Brian Herb – Chief Financial Officer Conference Call Participants Dylan Becker – William Blair Chris Moore – CJS Securities Peter Burkly – Evercore ISI Jake Titleman – Goldman Sachs Gary Prestopino – Barrington Research Operator Greetings and welcome to the CCC Intelligent Soluti ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to________________ CCC INTELLIGENT SOLUTIONS HOLDINGS INC. (Exact name of registrant as specified in its charter) | --- | --- | --- | |---------------------------------- ...

CC Intelligent Solutions Holdings Inc. (NASDAQ:CCCS) Q4 2021 Earnings Conference Call March 1, 2022 8:00 AM ET Company Participants Githesh Ramamurthy – Chairman and Chief Executive Officer Brian Herb – Chief Financial Officer Brian Denyeau – ICR Conference Call Participants Bhavan Suri – William Blair Chris Moore – CJS Securities Maya Prabhu – JPMorgan Kirk Materne – Evercore ISI Gary Prestopino – Barrington Research Yitchuin Wong – Citi Operator Greetings and welcome to the CCC Intelligent Solutions Fourt ...