CCC Intelligent Solutions Holdings Inc. Announces Fourth Quarter and Fiscal Year 2022 Financial Results

March 1, 2023 at 4:05 PM EST

CHICAGO--(BUSINESS WIRE)--Mar. 1, 2023-- CCC Intelligent Solutions Holdings Inc. (“CCC” or the “Company”) (NASDAQ: CCCS), a leading SaaS platform for the P&C insurance economy, today announced its financial results for the three months and year ended December 31, 2022.

“CCC delivered another year of strong financial performance, with 2022 revenue growth of 14% and adjusted EBITDA margin of 39%, with revenue and adjusted EBITDA above our guidance ranges. We believe our solid performance reflects the durability of our business as we continue to deliver innovation and operational efficiency for our customers,” said Githesh Ramamurthy, Chairman & CEO of CCC.

“Our customers are adopting advanced digital capabilities as a primary mechanism to improve the consumer claims experience while simultaneously dealing with a challenging operating environment characterized by labor shortages, inflation, cycle time increases, and greater vehicle complexity,” continued Ramamurthy. “These solutions increasingly leverage CCC’s AI capabilities and interconnected network to deliver process improvements and more holistic consumer experiences. We deeply appreciate the trust our customers are placing in us when they adopt more CCC solutions.”

Fourth Quarter 2022 Financial Highlights

Revenue

 

 

Total revenue was $204.1 million for the fourth quarter of 2022, compared to $187.1 million for the fourth quarter of 2021.

Profitability

 

 

GAAP gross profit was $145.5 million, representing a gross margin of 71%, for the fourth quarter of 2022, compared with $139.4 million, representing a gross margin of 75%, for the fourth quarter of 2021. Adjusted gross profit was $157.2 million, representing an adjusted gross margin of 77%, for the fourth quarter of 2022, compared with $147.0 million, representing an adjusted gross margin of 79%, for the fourth quarter of 2021.

 

 

GAAP operating income was $9.7 million for the fourth quarter of 2022, compared with GAAP operating income of $15.3 million for the fourth quarter of 2021. Adjusted operating income was $72.2 million for the fourth quarter of 2022, compared with adjusted operating income of $69.3 million for the fourth quarter of 2021.

 

 

GAAP net income was $1.1 million for the fourth quarter of 2022, compared with GAAP net loss of $57.9 million for the fourth quarter of 2021. Adjusted net income was $44.0 million for the fourth quarter of 2022, compared with $49.2 million for the fourth quarter of 2021.

 

 

Adjusted EBITDA was $80.1 million for the fourth quarter of 2022, compared with adjusted EBITDA of $75.7 million for the fourth quarter of 2021. Adjusted EBITDA grew 6% in the fourth quarter of 2022 as compared to the fourth quarter of 2021.

Full Year 2022 Financial Highlights

Revenue

 

 

Total revenue was $782.4 million for the full year 2022, an increase of 14% from $688.3 million for the full year 2021.

Profitability

 

 

GAAP gross profit was $568.5 million, representing a gross margin of 73%, for the full year 2022, compared with $492.6 million, representing a gross margin of 72%, for the full year 2021. Adjusted gross profit was $604.8 million, representing an adjusted gross margin of 77%, for the full year 2022, compared with $533.5 million, representing an adjusted gross margin of 78%, for the full year 2021.

 

 

GAAP operating income was $51.9 million for the full year 2022, compared with GAAP operating loss of $144.7 million for the full year 2021. Adjusted operating income was $276.7 million for the full year 2022, compared with adjusted operating income of $236.8 million for the full year 2021.

 

 

GAAP net income was $38.4 million for the full year 2022, compared with GAAP net loss of $248.9 million for the full year 2021. Adjusted net income was $176.4 million for the full year 2022, compared with $130.3 million for the full year 2021.

 

 

 

 

Adjusted EBITDA was $305.4 million for the full year 2022, compared with adjusted EBITDA of $261.4 million for the full year 2021. Adjusted EBITDA grew 17% in the full year 2022 as compared to the full year 2021.

Liquidity

 

 

CCC had $323.8 million in cash and cash equivalents and $792.0 million of total debt at December 31, 2022. The Company generated $199.9 million in cash from operating activities and had free cash flow of $152.0 million during the full year 2022, compared with $127.3 million generated in cash from operating activities and $89.0 million in free cash flow in the full year 2021.

The information presented above includes non-GAAP financial measures such as “adjusted EBITDA,” “adjusted net income,” “adjusted operating income,” “adjusted gross profit,” “adjusted gross profit margin,” and “free cash flow.” Refer to “Non-GAAP Financial Measures” for a discussion of these measures and reconciliations of each non-GAAP financial measure to the most directly comparable GAAP financial measure.

4th Quarter and Recent Business Highlights

 

 

CCC continued to deliver solutions to its insurance customer group at scale, touching more claims with more solutions than ever before. In 2022, for example, the highest number of U.S. auto insurance claims in the company’s history were processed using CCC solutions. The digital channel continues to scale, with mobile as a method of auto claim inspection increasing by 20% in 2022. During Q4, CCC renewed a top-10 auto insurer (based on direct premium written) for a 5-year extension, and had numerous cross-selling successes, including several insurance clients who added Casualty solutions to their portfolio of existing CCC products for the first time.

 

 

CCC experienced ongoing strength across its repair facility customer group, growing revenue through a combination of new logos, cross-selling, and upselling. In 2022, CCC added over 1,000 new rooftops and now has over 28,000 repair facilities on the CCC ONE® network. In Q4, CCC expanded its relationship with a leading multi-store operator seeking platform standardization across their collision, fleet, and paint operations for an additional 400 locations. In addition, the number of repair facilities using 4 or more CCC solutions has increased by over 20% over the past two years.

 

 

CCC is increasingly using artificial intelligence across its solution set to help clients make decisions faster. Over 100 of CCC’s 300+ insurance customers are actively using CCC’s AI-powered capabilities. In 2022, the application of advanced computer vision AI for claims processing increased 60 percent year-over-year. Over 14 million unique claims have been processed to date using a CCC deep learning AI solution – with 2022 at three times the level of 2019 – and the number of claims using 4 or more of CCC’s AI applications doubled year-over-year. CCC increased to 15 the total number of insurance carriers using CCC® Estimate - STP, the industry-first AI-powered touchless estimating solution. These 15 carriers include 7 of the top-10 auto insurers in the U.S. by direct written premium and represent over 50% of U.S. auto insurance claim volume.

Business Outlook

Based on information as of today, March 1, 2023, the Company is issuing the following financial guidance:

 

 

 

First Quarter Fiscal 2023

 

 

Full Year Fiscal 2023

 

Revenue

 

$

202 million to $204 million

 

 

$

842 million to $850 million

 

Adjusted EBITDA

 

$

76 million to $78 million

 

 

$

330 million to $338 million

 

Conference Call Information

CCC will host a conference call today, March 1, 2023, at 5:00 p.m. (Eastern Time) to discuss the Company’s financial results and financial guidance. A live webcast of this conference call will be available on the “Investor Relations” page of the Company’s website at https://ir.cccis.com, and a replay will be archived on the website as well.

About CCC Intelligent Solutions

CCC Intelligent Solutions Inc., a subsidiary of CCC Intelligent Solutions Holdings Inc. (NASDAQ: CCCS), is a leading SaaS platform for the multi-trillion-dollar P&C insurance economy powering operations for insurers, repairers, automakers, part suppliers, lenders, and more. CCC cloud technology connects more than 30,000 businesses digitizing mission-critical workflows, commerce, and customer experiences. A trusted leader in AI, IoT, customer experience, network and workflow management, CCC delivers innovations that keep people’s lives moving forward when it matters most. Learn more about CCC at www.cccis.com.

Forward Looking Statements

This press release contains forward-looking statements that are based on beliefs and assumptions and on information currently available. In some cases, you can identify forward-looking statements by the following words: “may,” “will,” “could,” “would,” “should,” “expect,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “project,” “potential,” “continue,” “ongoing” or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words. These statements involve risks, uncertainties and other factors that may cause actual results, levels of activity, performance or achievements to be materially different from the information expressed or implied by these forward-looking statements. Forward-looking statements in this press release include, but are not limited to, future events, goals, plans and projections regarding the Company’s financial position, results of operations, market position, product development and business strategy. Such differences may be material. We cannot assure you that the forward-looking statements in this press release will prove to be accurate. These forward looking statements are subject to a number of risks and uncertainties, including, among others, our revenues, the concentration of our customers and the ability to retain our current customers; our ability to negotiate with our customers on favorable terms; our ability to maintain and grow our brand and reputation cost-effectively; the execution of our growth strategy; our projected financial information, growth rate and market opportunity; the health of our industry, claim volumes, and market conditions; changes in the insurance and automotive collision industries, including the adoption of new technologies; global economic conditions and geopolitical events; competition in our market and our ability to retain and grow market share; our ability to develop, introduce and market new enhanced versions of our solutions and products; our sales and implementation cycles; the ability of our research and development efforts to create significant new revenue streams; changes in applicable laws or regulations; changes in international economic, political, social and governmental conditions and policies, including corruption risks in China and other countries; currency fluctuations; our reliance on third-party data, technology and intellectual property; our ability to protect our intellectual property; our ability to keep our data and information systems secure from data security breaches; our ability to acquire or invest in companies or pursue business partnerships; our ability to raise financing in the future and improve our capital structure; our success in retaining or recruiting, or changes required in, our officers, key employees or directors; our estimates regarding expenses, future revenue, capital requirements and needs for additional financing; our ability to expand or maintain our existing customer base; our ability to service our indebtedness; and other risks and uncertainties, including those included under the header “Risk Factors” in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022 filed with the Securities and Exchange Commission (“SEC”), which can be obtained, without charge, at the SEC’s website (www.sec.gov), and in our other filings with the SEC. The forward-looking statements in this press release represent our views as of the date of this press release. We anticipate that subsequent events and developments will cause our views to change. However, while we may elect to update these forward-looking statements at some point in the future, we have no current intention of doing so except to the extent required by applicable law. You should, therefore, not rely on these forward-looking statements as representing our views as of any date subsequent to the date of this press release.

Non-GAAP Financial Measures

This press release includes certain financial measures not presented in accordance with generally accepted accounting principles in the U.S. (“GAAP”), including, but not limited to, “adjusted EBITDA,” “adjusted net income,” “adjusted operating income,” “adjusted gross profit,” “adjusted gross profit margin,” “adjusted operating expenses,” and “free cash flow” in each case presented on a non-GAAP basis, and certain ratios and other metrics derived therefrom. These non-GAAP financial measures are not measures of financial performance in accordance with GAAP and may exclude items that are significant in understanding and assessing the Company’s financial results. Therefore, these measures should not be considered in isolation or as an alternative to other measures of profitability, liquidity or performance under GAAP. You should be aware that the Company’s calculation of these non-GAAP measures may not be comparable to similarly-titled measures used by other companies.

The Company believes these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to the Company’s financial condition and results of operations. The Company believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends in and in comparing the Company’s financial measures with other similar companies, many of which present similar non-GAAP financial measures to investors. These non-GAAP financial measures are subject to inherent limitations as they reflect the exercise of judgments by management about which expense and income are excluded or included in determining these non-GAAP financial measures. Please refer to the reconciliations of these measures below to what the Company believes are the most directly comparable measures evaluated in accordance with GAAP.

This press release also includes certain projections of non-GAAP financial measures. Due to the high variability and difficulty in making accurate forecasts and projections of some of the information excluded from these projected measures, together with some of the excluded information not being ascertainable or accessible, the Company is unable to quantify certain amounts that would be required to be included in the most directly comparable GAAP financial measures without unreasonable effort. Consequently, no disclosure of estimated comparable GAAP measures is included and no reconciliation of the forward-looking non-GAAP financial measures is included for these projections.

 

CCC INTELLIGENT SOLUTIONS HOLDINGS INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands, except share data)

 

December 31,

 

December 31,

 

2022

 

 

 

2021

 

ASSETS

CURRENT ASSETS:

Cash and cash equivalents

$

323,788

 

$

182,544

 

Accounts receivable—Net of allowances of $5,339 and $3,791 as of December 31, 2022 and 2021, respectively

 

98,353

 

 

78,793

 

Income taxes receivable

 

4,015

 

 

318

 

Deferred contract costs

 

16,556

 

 

15,069

 

Other current assets

 

36,358

 

 

46,181

 

Total current assets

 

479,070

 

 

322,905

 

SOFTWARE, EQUIPMENT, AND PROPERTY—Net

 

146,443

 

 

135,845

 

OPERATING LEASE ASSETS

 

32,874

 

 

37,234

 

INTANGIBLE ASSETS—Net

 

1,118,819

 

 

1,213,249

 

GOODWILL

 

1,495,129

 

 

1,466,884

 

DEFERRED FINANCING FEES, REVOLVER—Net

 

2,286

 

 

2,899

 

DEFERRED CONTRACT COSTS

 

20,161

 

 

22,117

 

EQUITY METHOD INVESTMENT

 

10,228

 

 

10,228

 

OTHER ASSETS

 

45,911

 

 

26,165

 

TOTAL

$

3,350,921

 

$

3,237,526

 

LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS’ EQUITY

CURRENT LIABILITIES:

Accounts payable

$

27,599

 

$

12,918

 

Accrued expenses

 

71,445

 

 

66,691

 

Income taxes payable

 

922

 

 

7,243

 

Current portion of long-term debt

 

8,000

 

 

8,000

 

Current portion of long-term licensing agreement—Net

 

2,876

 

 

2,703

 

Operating lease liabilities

 

5,484

 

 

8,052

 

Deferred revenues

 

35,239

 

 

31,042

 

Total current liabilities

 

151,565

 

 

136,649

 

LONG-TERM DEBT—Net

 

774,132

 

 

780,610

 

DEFERRED INCOME TAXES—Net

 

241,698

 

 

275,745

 

LONG-TERM LICENSING AGREEMENT—Net

 

30,752

 

 

33,629

 

OPERATING LEASE LIABILITIES

 

54,245

 

 

56,133

 

WARRANT LIABILITIES

 

36,405

 

 

62,478

 

OTHER LIABILITIES

 

2,658

 

 

5,785

 

Total liabilities

 

1,291,455

 

 

1,351,029

 

COMMITMENTS AND CONTINGENCIES (Notes 23 and 24)

MEZZANINE EQUITY:

Redeemable non-controlling interest

 

14,179

 

 

14,179

 

STOCKHOLDERS’ EQUITY:

Preferred stock—$0.0001 par; 100,000,000 shares authorized; no shares issued or outstanding

 

 

 

 

Common stock—$0.0001 par; 5,000,000,000 shares authorized; 622,072,905 and 609,768,296 shares issued and outstanding at December 31, 2022 and 2021, respectively

 

62

 

 

61

 

Additional paid-in capital

 

2,754,055

 

 

2,618,924

 

Accumulated deficit

 

(707,946

)

 

(746,352

)

Accumulated other comprehensive loss

 

(884

)

 

(315

)

Total stockholders’ equity

 

2,045,287

 

 

1,872,318

 

TOTAL

$

3,350,921

 

$

3,237,526

 

 

CCC INTELLIGENT SOLUTIONS HOLDINGS INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

(In thousands, except share and per share data)

(Unaudited)

 

Three months ended December 31,

 

Year ended December 31,

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

REVENUES

$

204,106

 

$

187,083

 

$

782,448

 

$

688,288

 

COST OF REVENUES

Cost of revenues, exclusive of amortization of acquired technologies

 

51,827

 

 

41,117

 

 

187,001

 

 

169,335

 

Amortization of acquired technologies

 

6,745

 

 

6,580

 

 

26,938

 

 

26,320

 

Total cost of revenues (1)

 

58,572

 

 

47,697

 

 

213,939

 

 

195,655

 

GROSS PROFIT

 

145,534

 

 

139,386

 

 

568,509

 

 

492,633

 

OPERATING EXPENSES:

Research and development (1)

 

42,246

 

 

37,097

 

 

156,957

 

 

165,991

 

Selling and marketing (1)

 

30,863

 

 

27,511

 

 

119,594

 

 

148,861

 

General and administrative (1)

 

44,665

 

 

41,353

 

 

167,758

 

 

250,098

 

Amortization of intangible assets

 

18,066

 

 

18,126

 

 

72,278

 

 

72,358

 

Total operating expenses

 

135,840

 

 

124,087

 

 

516,587

 

 

637,308

 

OPERATING INCOME (LOSS)

 

9,694

 

 

15,299

 

 

51,922

 

 

(144,675

)

INTEREST EXPENSE

 

(13,204

)

 

(7,442

)

 

(38,990

)

 

(58,990

)

INTEREST INCOME

 

908

 

 

 

 

908

 

 

 

CHANGE IN FAIR VALUE OF DERIVATIVE INSTRUMENTS

 

(328

)

 

 

 

5,663

 

 

8,373

 

CHANGE IN FAIR VALUE OF WARRANT LIABILITIES

 

2,621

 

 

(37,612

)

 

26,073

 

 

(64,501

)

GAIN ON SALE OF COST METHOD INVESTMENT

 

 

 

 

 

3,587

 

 

 

LOSS ON EARLY EXTINGUISHMENT OF DEBT

 

 

 

 

 

 

 

(15,240

)

OTHER INCOME—Net

 

123

 

 

113

 

 

699

 

 

114

 

PRETAX INCOME (LOSS)

 

(186

)

 

(29,642

)

 

49,862

 

 

(274,919

)

INCOME TAX (PROVISION) BENEFIT

 

1,258

 

 

(28,227

)

 

(11,456

)

 

26,000

 

NET INCOME (LOSS) INCLUDING NON-CONTROLLING INTEREST

 

1,072

 

 

(57,869

)

 

38,406

 

 

(248,919

)

Less: net income (loss) attributable to non-controlling interest

 

 

 

 

 

 

 

NET INCOME (LOSS) ATTRIBUTABLE TO CCC INTELLIGENT SOLUTIONS HOLDINGS INC.

$

1,072

 

$

(57,869

)

$

38,406

 

$

(248,919

)

 

Net income (loss) per share attributable to common stockholders:

Basic

$

0.00

 

$

(0.10

)

$

0.06

 

$

(0.46

)

Diluted

$

0.00

 

$

(0.10

)

$

0.06

 

$

(0.46

)

Weighted-average shares used in computing net income (loss) per share
attributable to common stockholders:

Basic

 

612,448,089

 

 

596,023,745

 

 

607,760,886

 

 

543,558,222

 

Diluted

 

643,941,176

 

 

596,023,745

 

 

642,841,596

 

 

543,558,222

 

COMPREHENSIVE INCOME (LOSS):

Net income (loss) including non-controlling interest

 

1,072

 

 

(57,869

)

 

38,406

 

 

(248,919

)

Other comprehensive (loss) income—Foreign currency translation
adjustment

 

235

 

 

(26

)

 

(569

)

 

(44

)

COMPREHENSIVE INCOME (LOSS) INCLUDING
NON-CONTROLLING INTEREST

 

1,307

 

 

(57,895

)

 

37,837

 

 

(248,963

)

Less: comprehensive income (loss) attributable to non-controlling
interest

 

 

 

 

 

 

 

 

 

COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO CCC
INTELLIGENT SOLUTIONS HOLDINGS INC.

$

1,307

 

$

(57,895

)

$

37,837

 

$

(248,963

)

 

(1) Includes stock-based compensation expense as follows (in thousands):

Three months ended December 31,

 

Year Ended December 31,

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

Cost of revenues

$

1,645

 

$

1,081

 

$

5,812

 

$

13,644

 

Research and development

 

5,103

 

 

3,933

 

 

19,536

 

 

40,681

 

Sales and marketing

 

6,978

 

 

4,985

 

 

25,309

 

 

65,045

 

General and administrative

 

15,002

 

 

16,583

 

 

58,840

 

 

142,625

 

Total stock-based compensation expense

$

28,728

 

$

26,582

 

$

109,497

 

$

261,995

 

 

CCC INTELLIGENT SOLUTIONS HOLDINGS INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

 

Year ended December 31,

 

2022

 

 

 

2021

 

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income (loss)

$

38,406

 

$

(248,919

)

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

Depreciation and amortization of software, equipment, and property

 

27,933

 

 

24,451

 

Amortization of intangible assets

 

99,216

 

 

98,678

 

Deferred income taxes

 

(34,401

)

 

(46,883

)

Stock-based compensation

 

109,497

 

 

261,995

 

Amortization of deferred financing fees

 

1,878

 

 

3,682

 

Amortization of discount on debt

 

257

 

 

604

 

Change in fair value of derivative instruments

 

(5,663

)

 

(8,373

)

Change in fair value of warrant liabilities

 

(26,073

)

 

64,501

 

Change in fair value of estimated contingent consideration

 

(100

)

 

 

Loss on early extinguishment of debt

 

 

 

15,240

 

Non-cash lease expense

 

3,697

 

 

6,279

 

Gain on divestiture

 

 

 

(600

)

Gain on sale of cost method investment

 

(3,587

)

 

 

Loss on disposal of software, equipment and property

 

2,651

 

 

 

Other

 

104

 

 

541

 

Changes in:

Accounts receivable—Net

 

(19,844

)

 

(4,725

)

Deferred contract costs

 

(1,487

)

 

(3,152

)

Other current assets

 

9,792

 

 

(12,273

)

Deferred contract costs—Non-current

 

1,956

 

 

(7,728

)

Other assets

 

(14,501

)

 

(7,838

)

Operating lease assets

 

3,448

 

 

6,354

 

Income taxes

 

(10,018

)

 

3,833

 

Accounts payable

 

15,516

 

 

(1,052

)

Accrued expenses

 

4,592

 

 

8,347

 

Operating lease liabilities

 

(7,241

)

 

(8,398

)

Deferred revenues

 

4,196

 

 

4,513

 

Extinguishment of interest rate swap liability

 

 

 

(9,987

)

Other liabilities

 

(317

)

 

(11,755

)

Net cash provided by operating activities

 

199,907

 

 

127,335

 

CASH FLOWS FROM INVESTING ACTIVITIES:

Proceeds from sale of cost method investment

 

3,901

 

 

 

Acquisition of Safekeep, Inc., net of cash

 

(32,242

)

 

 

Purchases of software, equipment, and property

 

(47,951

)

 

(38,321

)

Purchase of equity method investment

 

 

 

(10,228

)

Purchase of intangible asset

 

 

 

(49

)

Net cash used in investing activities

 

(76,292

)

 

(48,598

)

CASH FLOWS FROM FINANCING ACTIVITIES:

Proceeds from exercise of stock options

 

27,693

 

 

5,085

 

Proceeds from employee stock purchase plan

 

3,197

 

 

 

Payments for employee taxes withheld upon vesting of equity awards

 

(5,015

)

 

 

Principal payments on long-term debt

 

(8,000

)

 

(1,336,153

)

Proceeds from issuance of long-term debt, net of fees paid to lender

 

 

 

789,927

 

Net proceeds from equity infusion from the Business Combination

 

 

 

763,300

 

Payment of fees associated with early extinguishment of long-term debt

 

 

 

(4,821

)

Dividends to CCCIS stockholders

 

 

 

(269,174

)

Deemed distribution to CCCIS option holders

 

 

 

(9,006

)

Proceeds from issuance of common stock

 

 

 

1,007

 

Tax effect of Business Combination transaction costs

 

 

 

1,395

 

Net cash provided by (used in) financing activities

 

17,875

 

 

(58,440

)

NET EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS

 

(246

)

 

129

 

NET CHANGE IN CASH AND CASH EQUIVALENTS

 

141,244

 

 

20,426

 

CASH AND CASH EQUIVALENTS:

Beginning of period

 

182,544

 

 

162,118

 

End of period

$

323,788

 

$

182,544

 

NONCASH INVESTING AND FINANCING ACTIVITIES:

Unpaid liability related to software, equipment, and property

$

100

 

$

8,035

 

Leasehold improvements acquired by tenant improvement allowance

$

 

$

16,924

 

Fair value of assumed Public Warrants exercised

$

 

$

60,481

 

Contingent consideration related to business acquisition

$

200

 

$

 

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:

Cash paid for interest

$

36,636

 

$

54,980

 

Cash (paid) received for income taxes—Net

$

(55,697

)

$

(15,233

)

 

CCC INTELLIGENT SOLUTIONS HOLDINGS INC. AND SUBSIDIARIES

RECONCILIATION OF GROSS PROFIT TO ADJUSTED GROSS PROFIT

(In thousands, except profit margin percentage data)

(Unaudited)

 

Three months ended December 31,

 

Year ended December 31,

(amounts in thousands, except percentages)

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

Gross Profit

$

145,534

 

$

139,386

 

$

568,509

 

$

492,633

 

Amortization of acquired technologies

 

6,745

 

 

6,580

 

 

26,938

 

 

26,320

 

Stock-based compensation and related employer payroll tax

 

1,712

 

 

1,081

 

 

6,090

 

 

13,644

 

Contract termination costs

 

3,248

 

 

 

 

3,248

 

 

 

Business combination transaction costs

 

 

 

 

 

 

 

905

 

Adjusted Gross Profit

$

157,239

 

$

147,047

 

$

604,785

 

$

533,502

 

Gross Profit Margin

 

71

%

 

75

%

 

73

%

 

72

%

Adjusted Gross Profit Margin

 

77

%

 

79

%

 

77

%

 

78

%

 

CCC INTELLIGENT SOLUTIONS HOLDINGS INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP OPERATING EXPENSES TO ADJUSTED OPERATING EXPENSES

(In thousands)

(Unaudited)

 

Three months ended
December 31,

 

Year ended
December 31,

(dollar amounts in thousands)

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

Operating expenses

$

135,840

 

$

124,087

 

$

516,587

 

$

637,308

 

Amortization of intangible assets

 

(18,066

)

 

(18,126

)

 

(72,278

)

 

(72,358

)

Stock-based compensation expense and related
employer payroll tax

 

(27,279

)

 

(25,501

)

 

(105,775

)

 

(248,351

)

Lease abandonment

 

(4,915

)

 

(326

)

 

(6,137

)

 

(2,582

)

Contract termination costs

 

(3,248

)

 

 

 

(3,248

)

 

 

M&A and integration costs

 

(11

)

 

 

 

(1,772

)

 

 

Lease overlap costs

 

 

 

(924

)

 

(1,338

)

 

(3,697

)

Business combination transaction and related costs

 

(174

)

 

(1,914

)

 

(1,330

)

 

(11,480

)

Plaintiff litigation costs

 

(894

)

 

 

 

(894

)

 

 

Change in fair value of contingent consideration

 

100

 

 

 

 

100

 

 

 

Income (costs) related to divestiture, net

 

459

 

 

428

 

 

877

 

 

(2,177

)

Adjusted operating expenses

$

81,812

 

$

77,724

 

$

324,792

 

$

296,663

 

 
 

CCC INTELLIGENT SOLUTIONS HOLDINGS INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP OPERATING INCOME (LOSS) TO ADJUSTED OPERATING INCOME

(In thousands)

(Unaudited)

 

Three months ended December 31,

 

Year ended December 31,

(dollar amounts in thousands)

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

Operating income (loss)

$

9,694

 

$

15,299

 

$

51,922

 

$

(144,675

)

Amortization of intangible assets

 

18,066

 

 

18,126

 

 

72,278

 

 

72,358

 

Amortization of acquired technologies—Cost of revenue

 

6,745

 

 

6,580

 

 

26,938

 

 

26,320

 

Stock-based compensation expense and related employer payroll tax

 

28,991

 

 

26,582

 

 

111,865

 

 

261,995

 

Lease abandonment

 

4,915

 

 

326

 

 

6,137

 

 

2,582

 

Contract termination costs

 

3,248

 

 

 

 

3,248

 

 

 

M&A and integration costs

 

11

 

 

 

 

1,772

 

 

 

Lease overlap costs

 

 

 

924

 

 

1,338

 

 

3,697

 

Business combination transaction and related costs

 

174

 

 

1,914

 

 

1,330

 

 

12,385

 

Plaintiff litigation costs

 

894

 

 

 

 

894

 

 

 

Change in fair value of contingent consideration

 

(100

)

 

 

 

(100

)

 

 

(Income) costs related to divestiture, net

 

(459

)

 

(428

)

 

(877

)

 

2,177

 

Adjusted operating income

$

72,179

 

$

69,323

 

$

276,745

 

$

236,839

 

 

CCC INTELLIGENT SOLUTIONS HOLDINGS INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP NET INCOME (LOSS) TO ADJUSTED EBITDA

(In thousands, except for EBITDA margin percentage data)

(Unaudited)

 

Three months ended December 31,

 

Year ended December 31,

(dollar amounts in thousands)

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

Net income (loss)

$

1,072

 

$

(57,869

)

$

38,406

 

$

(248,919

)

Interest expense

 

13,204

 

 

7,442

 

 

38,990

 

 

58,990

 

Interest income

 

(908

)

 

 

 

(908

)

 

 

Income tax provision (benefit)

 

(1,258

)

 

28,227

 

 

11,456

 

 

(26,000

)

Amortization of intangible assets

 

18,066

 

 

18,126

 

 

72,278

 

 

72,358

 

Amortization of acquired technologies—Cost of revenue

 

6,745

 

 

6,580

 

 

26,938

 

 

26,320

 

Depreciation and amortization related to software, equipment and property

 

7,778

 

 

6,290

 

 

27,933

 

 

24,451

 

EBITDA

 

44,699

 

 

8,796

 

 

215,093

 

 

(92,800

)

Stock-based compensation expense and related employer payroll tax

 

28,991

 

 

26,582

 

 

111,865

 

 

261,995

 

Lease abandonment

 

4,915

 

 

326

 

 

6,137

 

 

2,582

 

Contract termination costs

 

3,248

 

 

 

 

3,248

 

 

 

M&A and integration costs

 

11

 

 

 

 

1,772

 

 

 

Lease overlap costs

 

 

 

924

 

 

1,338

 

 

3,697

 

Business combination transaction and related costs

 

174

 

 

1,914

 

 

1,330

 

 

12,385

 

Plaintiff litigation costs

 

894

 

 

 

 

894

 

 

 

Change in fair value of contingent consideration

 

(100

)

 

 

 

(100

)

 

 

(Income) costs related to divestiture, net

 

(459

)

 

(428

)

 

(877

)

 

2,177

 

Gain on sale of cost method investment

 

0

 

 

 

 

(3,587

)

 

 

Change in fair value of derivative
instruments

 

328

 

 

 

 

(5,663

)

 

(8,373

)

Change in fair value of warrant liabilities

 

(2,621

)

 

37,612

 

 

(26,073

)

 

64,501

 

Loss on early extinguishment of debt

 

 

 

 

 

 

 

15,240

 

Adjusted EBITDA

$

80,080

 

$

75,726

 

$

305,377

 

$

261,404

 

Adjusted EBITDA Margin

 

39

%

 

40

%

 

39

%

 

38

%

 

CCC INTELLIGENT SOLUTIONS HOLDINGS INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP NET INCOME (LOSS) TO ADJUSTED NET INCOME

(In thousands, except share and per share data)

(Unaudited)

 

Three months ended December 31,

 

Year ended December 31,

(dollar amounts in thousands)

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

Net income (loss)

$

1,072

 

$

(57,869

)

$

38,406

 

$

(248,919

)

Amortization of intangible assets

 

18,066

 

 

18,126

 

 

72,278

 

 

72,358

 

Amortization of acquired technologies—Cost of revenue

 

6,745

 

 

6,580

 

 

26,938

 

 

26,320

 

Stock-based compensation expense and related employer payroll tax

 

28,991

 

 

26,582

 

 

111,865

 

 

261,995

 

Lease abandonment

 

4,915

 

 

326

 

 

6,137

 

 

2,582

 

Contract termination costs

 

3,248

 

 

 

 

3,248

 

 

 

M&A and integration costs

 

11

 

 

 

 

1,772

 

 

 

Lease overlap costs

 

 

 

924

 

 

1,338

 

 

3,697

 

Business combination transaction and related costs

 

174

 

 

1,914

 

 

1,330

 

 

12,385

 

Plaintiff litigation costs

 

894

 

 

 

 

894

 

 

 

Change in fair value of contingent consideration

 

(100

)

 

 

 

(100

)

 

 

(Income) costs related to divestiture, net

 

(459

)

 

(428

)

 

(877

)

 

2,177

 

Gain on sale of cost method investment

 

 

 

 

 

(3,587

)

 

 

Change in fair value of derivative instruments

 

328

 

 

 

 

(5,663

)

 

(8,373

)

Change in fair value of warrant liabilities

 

(2,621

)

 

37,612

 

 

(26,073

)

 

64,501

 

Loss on early extinguishment of debt

 

 

 

 

 

 

 

15,240

 

Tax effect of adjustments

 

(17,302

)

 

15,450

 

 

(51,495

)

 

(73,684

)

Adjusted net income

$

43,962

 

$

49,217

 

$

176,411

 

$

130,279

 

 

 

Adjusted net income per share attributable to common stockholders

Basic

$

0.07

 

$

0.08

 

$

0.29

 

$

0.24

 

Diluted

$

0.07

 

$

0.08

 

$

0.27

 

$

0.23

 

 

 

Weighted average shares outstanding

Basic

 

612,448,089

 

 

596,023,745

 

 

607,760,886

 

 

543,558,222

 

Diluted

 

643,941,176

 

 

637,445,530

 

 

642,841,596

 

 

575,619,243

 

 

CCC INTELLIGENT SOLUTIONS HOLDINGS INC. AND SUBSIDIARIES

RECONCILIATION OF NET CASH FLOW FROM OPERATING ACTIVITIES TO FREE CASH FLOW

(In thousands)

(Unaudited)

 

Three months ended
December 31,

 

Year ended
December 31,

(dollar amounts in thousands)

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

Net cash provided by operating activities

$

81,469

 

$

30,610

 

$

199,907

 

$

127,335

 

Less: Purchases of software, equipment and property

 

(9,107

)

 

(13,299

)

 

(47,951

)

 

(38,321

)

Less: Purchase of intangible assets

 

 

 

 

 

 

 

(49

)

Free cash flow

$

72,362

 

$

17,311

 

$

151,956

 

$

88,965

 

 

 

Investor:
Bill Warmington
VP, Investor Relations, CCC Intelligent Solutions Inc.
312-229-2355
IR@cccis.com

Media:
Michelle Hellyar
Senior Director, Public Relations, CCC Intelligent Solutions Inc.
mhellyar@cccis.com

Source: CCC Intelligent Solutions Inc.