CCC Intelligent Solutions (US:CCCS)2025-05-06 12:15Financial 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]