UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): |
(Exact name of Registrant as Specified in Its Charter)
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(Address of Principal Executive Offices) |
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Registrant’s Telephone Number, Including Area Code: |
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(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
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Trading |
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
Attached hereto as Exhibit 99.1 and incorporated by reference into this Item 2.02 is a copy of the press release, date March 1, 2023, announcing the financial results of CCC Intelligent Solutions Holdings Inc. for the quarter and year ended December 31, 2022.
The information in this Item 2.02, including Exhibit 99.1 attached hereto, is being furnished and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section and shall not be incorporated by reference into any registration statement or other document filed pursuant to the Securities Act of 1933, as amended, or the Exchange Act, except as otherwise expressly stated in such filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits |
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Exhibit Number |
Description |
99.1 |
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104 |
Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
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CCC INTELLIGENT SOLUTIONS HOLDINGS INC. |
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Date: |
March 1, 2023 |
By: |
/s/ Brian Herb |
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Name: Title: |
Brian Herb |
CCC Intelligent Solutions Holdings Inc. Announces Fourth Quarter and Fiscal Year 2022 Financial Results
March 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
Profitability
Full Year 2022 Financial Highlights
Revenue
Profitability
Liquidity
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
Business Outlook
Based on information as of today, March 1, 2023, the Company is issuing the following financial guidance:
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First Quarter Fiscal 2023 |
Full Year Fiscal 2023 |
Revenue |
$202 million to $204 million |
$842 million to $850 million |
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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.
Investor Contact:
Bill Warmington
VP, Investor Relations, CCC Intelligent Solutions Inc.
312-229-2355
IR@cccis.com
Media Contact:
Michelle Hellyar
Senior Director, Public Relations, CCC Intelligent Solutions Inc.
mhellyar@cccis.com
CCC INTELLIGENT SOLUTIONS HOLDINGS INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
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December 31, |
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December 31, |
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2022 |
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2021 |
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ASSETS |
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CURRENT ASSETS: |
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Cash and cash equivalents |
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$ |
323,788 |
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$ |
182,544 |
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Accounts receivable—Net of allowances of $5,339 and $3,791 as of December 31, 2022 and 2021, respectively |
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98,353 |
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78,793 |
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Income taxes receivable |
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4,015 |
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318 |
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Deferred contract costs |
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16,556 |
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15,069 |
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Other current assets |
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36,358 |
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46,181 |
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Total current assets |
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479,070 |
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322,905 |
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SOFTWARE, EQUIPMENT, AND PROPERTY—Net |
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146,443 |
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135,845 |
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OPERATING LEASE ASSETS |
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32,874 |
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37,234 |
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INTANGIBLE ASSETS—Net |
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1,118,819 |
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1,213,249 |
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GOODWILL |
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1,495,129 |
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1,466,884 |
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DEFERRED FINANCING FEES, REVOLVER—Net |
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2,286 |
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2,899 |
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DEFERRED CONTRACT COSTS |
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20,161 |
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22,117 |
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EQUITY METHOD INVESTMENT |
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10,228 |
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10,228 |
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OTHER ASSETS |
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45,911 |
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26,165 |
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TOTAL |
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$ |
3,350,921 |
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$ |
3,237,526 |
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LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS’ EQUITY |
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CURRENT LIABILITIES: |
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Accounts payable |
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$ |
27,599 |
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$ |
12,918 |
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Accrued expenses |
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71,445 |
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66,691 |
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Income taxes payable |
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922 |
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7,243 |
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Current portion of long-term debt |
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8,000 |
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8,000 |
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Current portion of long-term licensing agreement—Net |
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2,876 |
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2,703 |
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Operating lease liabilities |
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5,484 |
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8,052 |
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Deferred revenues |
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35,239 |
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31,042 |
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Total current liabilities |
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151,565 |
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136,649 |
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LONG-TERM DEBT—Net |
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774,132 |
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780,610 |
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DEFERRED INCOME TAXES—Net |
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241,698 |
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275,745 |
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LONG-TERM LICENSING AGREEMENT—Net |
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30,752 |
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33,629 |
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OPERATING LEASE LIABILITIES |
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54,245 |
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56,133 |
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WARRANT LIABILITIES |
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36,405 |
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62,478 |
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OTHER LIABILITIES |
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2,658 |
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5,785 |
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Total liabilities |
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1,291,455 |
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1,351,029 |
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COMMITMENTS AND CONTINGENCIES (Notes 23 and 24) |
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MEZZANINE EQUITY: |
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Redeemable non-controlling interest |
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14,179 |
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14,179 |
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STOCKHOLDERS’ EQUITY: |
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Preferred stock—$0.0001 par; 100,000,000 shares authorized; no shares issued or outstanding |
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— |
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— |
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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 |
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|
62 |
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61 |
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Additional paid-in capital |
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2,754,055 |
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2,618,924 |
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Accumulated deficit |
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|
(707,946 |
) |
|
|
(746,352 |
) |
Accumulated other comprehensive loss |
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(884 |
) |
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|
(315 |
) |
Total stockholders’ equity |
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|
2,045,287 |
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|
|
1,872,318 |
|
TOTAL |
|
$ |
3,350,921 |
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|
$ |
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)
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Three months ended December 31, |
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Year ended December 31, |
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2022 |
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2021 |
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2022 |
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2021 |
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REVENUES |
|
$ |
204,106 |
|
|
$ |
187,083 |
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|
$ |
782,448 |
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$ |
688,288 |
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COST OF REVENUES |
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|
|
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|
|
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Cost of revenues, exclusive of amortization of acquired technologies |
|
|
51,827 |
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|
|
41,117 |
|
|
|
187,001 |
|
|
|
169,335 |
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Amortization of acquired technologies |
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|
6,745 |
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|
|
6,580 |
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|
|
26,938 |
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|
|
26,320 |
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Total cost of revenues (1) |
|
|
58,572 |
|
|
|
47,697 |
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|
|
213,939 |
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|
|
195,655 |
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GROSS PROFIT |
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|
145,534 |
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|
139,386 |
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|
568,509 |
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492,633 |
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OPERATING EXPENSES: |
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Research and development (1) |
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42,246 |
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37,097 |
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156,957 |
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|
165,991 |
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Selling and marketing (1) |
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30,863 |
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27,511 |
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|
119,594 |
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|
148,861 |
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General and administrative (1) |
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|
44,665 |
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41,353 |
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167,758 |
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|
250,098 |
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Amortization of intangible assets |
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18,066 |
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|
|
18,126 |
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|
72,278 |
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|
|
72,358 |
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Total operating expenses |
|
|
135,840 |
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|
|
124,087 |
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|
|
516,587 |
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|
|
637,308 |
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OPERATING INCOME (LOSS) |
|
|
9,694 |
|
|
|
15,299 |
|
|
|
51,922 |
|
|
|
(144,675 |
) |
INTEREST EXPENSE |
|
|
(13,204 |
) |
|
|
(7,442 |
) |
|
|
(38,990 |
) |
|
|
(58,990 |
) |
INTEREST INCOME |
|
|
908 |
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|
|
— |
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|
|
908 |
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|
|
— |
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CHANGE IN FAIR VALUE OF DERIVATIVE INSTRUMENTS |
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|
(328 |
) |
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— |
|
|
|
5,663 |
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|
8,373 |
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CHANGE IN FAIR VALUE OF WARRANT LIABILITIES |
|
|
2,621 |
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|
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(37,612 |
) |
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|
26,073 |
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(64,501 |
) |
GAIN ON SALE OF COST METHOD INVESTMENT |
|
|
— |
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— |
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|
3,587 |
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|
|
— |
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LOSS ON EARLY EXTINGUISHMENT OF DEBT |
|
|
— |
|
|
|
— |
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|
|
— |
|
|
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(15,240 |
) |
OTHER INCOME—Net |
|
|
123 |
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|
|
113 |
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|
|
699 |
|
|
|
114 |
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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 |
|
|
|
|
|
|
|
|
|
|
|
|
||||
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 |
|
|
235 |
|
|
|
(26 |
) |
|
|
(569 |
) |
|
|
(44 |
) |
COMPREHENSIVE INCOME (LOSS) INCLUDING |
|
|
1,307 |
|
|
|
(57,895 |
) |
|
|
37,837 |
|
|
|
(248,963 |
) |
Less: comprehensive income (loss) attributable to non-controlling |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO CCC |
|
$ |
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)
|
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 |
|
|
(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 |
|
|
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 |
|
|
— |
|
|
|
— |
|
|
|
(3,587 |
) |
|
|
— |
|
Change in fair value of derivative |
|
|
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 |
|