CCC Intelligent Solutions (US:CCCS)2025-10-30 12:15Financial Performance - Revenues for Q3 2025 reached $267.1 million, a 12.0% increase from $238.5 million in Q3 2024[16] - Gross profit for Q3 2025 was $193.0 million, compared to $183.4 million in Q3 2024, reflecting a gross margin improvement[16] - Operating income for Q3 2025 was $30.0 million, up from $28.7 million in Q3 2024, indicating a growth of 4.5%[16] - The company reported a net loss of $1.97 million for Q3 2025, compared to a net income of $4.1 million in Q3 2024[16] - For the nine months ended September 30, 2025, the net loss was $6,432,000 compared to a net income of $24,980,000 for the same period in 2024[24] - The net loss attributable to common stockholders for the three months ended September 30, 2025, was $(1,971,000), compared to a net income of $2,812,000 for the same period in 2024[158] Expenses - Research and development expenses for Q3 2025 were $52.9 million, up from $49.5 million in Q3 2024, reflecting a 4.8% increase[16] - Selling and marketing expenses increased to $44.2 million in Q3 2025, compared to $34.3 million in Q3 2024, a rise of 28.7%[16] - The company incurred transaction costs of $16.6 million related to the acquisition, with $0.2 million and $7.8 million incurred during the three and nine months ended September 30, 2025, respectively[54] - The interest expense for the nine months ended September 30, 2025, was $52,866,000, compared to $49,434,000 in 2024, indicating a rise of 4.93%[158] - The income tax provision for the three months ended September 30, 2025, was $15,373,000, compared to $8,933,000 in 2024, showing an increase of 72.56%[158] Assets and Liabilities - Total current assets decreased to $330.7 million as of September 30, 2025, down from $564.7 million at the end of 2024[14] - Total liabilities increased to $1.46 billion as of September 30, 2025, compared to $1.16 billion at the end of 2024[14] - The company’s total stockholders' equity increased to $2.13 billion as of September 30, 2025, from $2.00 billion at the end of 2024[14] - Accounts receivable—Net as of September 30, 2025, was $140.7 million, an increase from $106.6 million as of December 31, 2024[74] - Long-term debt outstanding was $993,500,000 as of September 30, 2025, up from $776,000,000 as of December 31, 2024, indicating an increase of 27.9%[95] Cash Flow - The company reported net cash provided by operating activities of $196,315,000 for the nine months ended September 30, 2025, compared to $170,241,000 in 2024[24] - As of September 30, 2025, cash and cash equivalents decreased to $97,141,000 from $286,303,000 at the end of the same period in 2024[24] Acquisition - The Company completed the acquisition of EvolutionIQ, Inc. for a total consideration of $674.3 million, which includes $420.6 million in cash and $250.4 million in common stock[42][43][44]. - Goodwill from the acquisition is valued at $538.8 million, primarily due to expected synergies and the value of the acquired workforce[47]. - The fair value of the assets acquired includes current assets of $11.3 million, intangible assets of $167.9 million, and total liabilities assumed of $52.6 million, resulting in net assets acquired of $135.5 million[49]. - The additional amount deferred during the nine months ended September 30, 2025, included $21.5 million related to the acquisition of EvolutionIQ[59] Stock and Compensation - Stock-based compensation expense for the nine months ended September 30, 2025, was $146,216,000, an increase from $127,221,000 in 2024[24] - The total stock-based compensation expense for the nine months ended September 30, 2025, was $146.2 million, compared to $127.2 million for the same period in 2024, reflecting an increase of approximately 15.7%[136] - The Company granted 16,064,203 Restricted Stock Units (RSUs) during the nine months ended September 30, 2025, including 5,712,249 RSUs related to the acquisition of EvolutionIQ[130] Revenue Recognition - Software subscriptions revenue for the nine months ended September 30, 2025, reached $749.8 million, up 11.8% from $670.3 million in 2024[56] - Deferred revenue as of September 30, 2025, was $78.1 million, compared to $48.3 million as of September 30, 2024, reflecting a 61.6% increase[58] - The company recognized $54.9 million in revenue from deferred revenue for the three months ended September 30, 2025, compared to $42.8 million in 2024[57] - Approximately $1,741 million of revenue is expected to be recognized from remaining performance obligations, with $752 million expected in the next twelve months[56] Future Outlook - The company anticipates continued growth in revenues and market opportunities despite potential risks from competition and economic conditions[11]