0001818201false00018182012023-11-062023-11-06

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): November 06, 2023

 

 

CCC Intelligent Solutions Holdings Inc.

(Exact name of Registrant as Specified in Its Charter)

 

 

Delaware			001-39447	98-1546280
(State or Other Jurisdiction of Incorporation)			(Commission File Number)	(IRS Employer Identification No.)
167 N. Green Street, 9th Floor
Chicago, Illinois				60607
(Address of Principal Executive Offices)				(Zip Code)

 

Registrant’s Telephone Number, Including Area Code: (800) 621-8070

 

(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:

☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common stock, par value $0.0001 per share		CCCS		The Nasdaq Stock Market LLC

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. ☐

 

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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 November 6, 2023, announcing the financial results of CCC Intelligent Solutions Holdings Inc. for the quarter ended September 30, 2023, including, among other things, unaudited financial results for that period.

 

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
Exhibit Number	Description
99.1	Press release, dated November 6, 2023
104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

 

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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.

			CCC INTELLIGENT SOLUTIONS HOLDINGS INC.
Date:	November 6, 2023	By:	/s/ Brian Herb
		Name: Title:	Brian Herb Executive Vice President, Chief Financial and Administrative Officer

 

 

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Exhibit 99.1

CCC Intelligent Solutions Holdings Inc. Announces Third Quarter 2023 Financial Results

November 6, 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 ended September 30, 2023.

“CCC delivered strong third quarter results, highlighted by 11% year-over-year revenue growth, 19% year-over-year adjusted EBITDA growth, and an adjusted EBITDA margin of 42%. Our solid performance reflects positive momentum across our business from continuing to deliver new, high-ROI solutions that improve the operating efficiency and consumer experience of our customers’ mission-critical workflows,” said Githesh Ramamurthy, Chairman & CEO of CCC.

“Our goal at CCC is the digitization of the entire automobile accident supply chain – from first notice of loss through subrogation – by seamlessly integrating artificial intelligence, connected networks, and digital engagement,” continued Ramamurthy. “Our strong innovation velocity and balanced growth algorithm reinforce our confidence in our long-term growth outlook.”

Third Quarter 2023 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.

 

3rd Quarter and Recent Business Highlights

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Business Outlook

Based on information as of today, November 6, 2023, the Company is issuing the following financial guidance:

	Fourth Quarter Fiscal 2023	Full Year Fiscal 2023

 

Revenue	$221.5 million to $223.5 million	$859 million to $861 million
Adjusted EBITDA	$92 million to $94 million	$345 million to $347 million

Conference Call Information

CCC will host a conference call today, November 6, 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 35,000 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

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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

 

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CCC INTELLIGENT SOLUTIONS HOLDINGS INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share data)

 

		September 30,				December 31,
		2023				2022
		(Unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents		$	448,733			$	323,788
Accounts receivable—Net of allowances of $5,052 and $5,339 as of September 30, 2023 and    December 31, 2022, respectively			117,799				98,353
Income taxes receivable			407				4,015
Deferred contract costs			16,994				16,556
Other current assets			29,814				36,358
Total current assets			613,747				479,070
SOFTWARE, EQUIPMENT, AND PROPERTY—Net			158,189				146,443
OPERATING LEASE ASSETS			31,061				32,874
INTANGIBLE ASSETS—Net			1,039,555				1,118,819
GOODWILL			1,417,724				1,495,129
DEFERRED FINANCING FEES, REVOLVER—Net			1,825				2,286
DEFERRED CONTRACT COSTS			19,579				20,161
EQUITY METHOD INVESTMENT			10,228				10,228
OTHER ASSETS			49,875				45,911
TOTAL		$	3,341,783			$	3,350,921
LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable		$	18,235			$	27,599
Accrued expenses			61,005				71,445
Income taxes payable			9,537				922
Current portion of long-term debt			8,000				8,000
Current portion of long-term licensing agreement—Net			3,013				2,876
Operating lease liabilities			6,879				5,484
Deferred revenues			41,885				35,239
Total current liabilities			148,554				151,565
LONG-TERM DEBT—Net			769,136				774,132
DEFERRED INCOME TAXES—Net			200,913				241,698
LONG-TERM LICENSING AGREEMENT—Net			28,475				30,752
OPERATING LEASE LIABILITIES			51,669				54,245
WARRANT LIABILITIES			81,808				36,405
OTHER LIABILITIES			2,246				2,658
Total liabilities			1,282,801				1,291,455
COMMITMENTS AND CONTINGENCIES (Notes 19 and 20)
MEZZANINE EQUITY:
Redeemable non-controlling interest			15,504				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; 634,633,179 and    622,072,905 shares issued and outstanding at September 30, 2023 and December 31,    2022, respectively			63				62
Additional paid-in capital			2,868,881				2,754,055
Accumulated deficit			(824,308	)			(707,946	)
Accumulated other comprehensive loss			(1,158	)			(884	)
Total stockholders’ equity			2,043,478				2,045,287
TOTAL		$	3,341,783			$	3,350,921

 

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CCC INTELLIGENT SOLUTIONS HOLDINGS INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME

(In thousands, except share and per share data)

(Unaudited)

 

		For the Three Months Ended								For the Nine Months Ended
		September 30,								September 30,
		2023				2022				2023				2022
REVENUES		$	221,147			$	198,734			$	637,777			$	578,342
COST OF REVENUES
Cost of revenues, exclusive of amortization and impairment of acquired technologies			51,459				46,379				153,954				135,174
Amortization of acquired technologies			6,567				6,748				19,897				20,193
Impairment of acquired technologies			—				—				431				—
Total cost of revenues			58,026				53,127				174,282				155,367
GROSS PROFIT			163,121				145,607				463,495				422,975
OPERATING EXPENSES:
Research and development			43,532				40,273				127,891				114,711
Selling and marketing			35,605				30,838				105,072				88,731
General and administrative			49,471				39,376				137,477				123,093
Amortization of intangible assets			17,942				18,066				54,030				54,212
Impairment of goodwill			—				—				77,405				—
Impairment of intangible assets			—				—				4,906				—
Total operating expenses			146,550				128,553				506,781				380,747
OPERATING INCOME (LOSS)			16,571				17,054				(43,286	)			42,228
INTEREST EXPENSE			(14,633	)			(10,501	)			(42,480	)			(25,786	)
INTEREST INCOME			5,165				—				12,447				—
CHANGE IN FAIR VALUE OF DERIVATIVE INSTRUMENTS			(446	)			5,991				563				5,991
CHANGE IN FAIR VALUE OF WARRANT LIABILITIES			(26,223	)			312				(45,403	)			23,452
GAIN ON SALE OF COST METHOD INVESTMENT			—				9				—				3,587
OTHER INCOME—Net			182				382				551				576
PRETAX (LOSS) INCOME			(19,384	)			13,247				(117,608	)			50,048
INCOME TAX (PROVISION) BENEFIT			(1,818	)			(3,452	)			1,246				(12,714	)
NET (LOSS) INCOME INCLUDING NON-CONTROLLING    INTEREST			(21,202	)			9,795				(116,362	)			37,334
LESS: ACCRETION OF REDEEMABLE NON-CONTROLLING INTEREST			(1,010	)			—				(1,325	)			—
NET (LOSS) INCOME ATTRIBUTABLE TO CCC INTELLIGENT    SOLUTIONS HOLDINGS INC. COMMON STOCKHOLDERS		$	(22,212	)		$	9,795			$	(117,687	)		$	37,334
Net (loss) income per share attributable to common stockholders:
Basic		$	(0.04	)		$	0.02			$	(0.19	)		$	0.06
Diluted		$	(0.04	)		$	0.02			$	(0.19	)		$	0.06
Weighted-average shares used in computing net (loss) income per share    attributable to common stockholders:
Basic			624,976,557				609,421,073				620,841,922				606,181,316
Diluted			624,976,557				643,582,922				620,841,922				642,208,622
COMPREHENSIVE (LOSS) INCOME:
Net (loss) income including non-controlling interest			(21,202	)			9,795				(116,362	)			37,334
Other comprehensive (loss) income—Foreign currency translation    adjustment			(23	)			(510	)			(274	)			(804	)
COMPREHENSIVE (LOSS) INCOME INCLUDING    NON-CONTROLLING INTEREST			(21,225	)			9,285				(116,636	)			36,530
Less: accretion of redeemable non-controlling interest			(1,010	)			—				(1,325	)			—
COMPREHENSIVE (LOSS) INCOME ATTRIBUTABLE TO CCC    INTELLIGENT SOLUTIONS HOLDINGS INC. COMMON STOCKHOLDERS		$	(22,235	)		$	9,285			$	(117,961	)		$	36,530

 

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CCC INTELLIGENT SOLUTIONS HOLDINGS INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

 

		For the Nine Months Ended
		September 30,
		2023				2022
CASH FLOWS FROM OPERATING ACTIVITIES:
Net (loss) income		$	(116,362	)		$	37,334
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization of software, equipment, and property			28,025				20,155
Amortization of intangible assets			73,927				74,405
Impairment of goodwill and intangible assets			82,742				—
Deferred income taxes			(40,785	)			(53,061	)
Stock-based compensation			104,471				80,769
Amortization of deferred financing fees			1,295				1,424
Amortization of discount on debt			170				196
Change in fair value of derivative instruments			(563	)			(5,991	)
Change in fair value of warrant liabilities			45,403				(23,452	)
Non-cash lease expense			1,232				3,076
Loss on disposal of software, equipment and property			—				795
Gain on sale of cost method investment			—				(3,587	)
Other			171				101
Changes in:
Accounts receivable—Net			(19,340	)			(19,532	)
Deferred contract costs			(438	)			(719	)
Other current assets			6,727				12,321
Deferred contract costs—Non-current			582				3,299
Other assets			(3,572	)			(18,227	)
Operating lease assets			581				1,623
Income taxes			12,223				10,029
Accounts payable			(9,368	)			2,466
Accrued expenses			(9,335	)			(2,664	)
Operating lease liabilities			(1,181	)			(4,687	)
Deferred revenues			6,646				2,557
Other liabilities			(113	)			(192	)
Net cash provided by operating activities			163,138				118,438
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of software, equipment, and property			(43,187	)			(38,844	)
Acquisition of Safekeep, Inc., net of cash acquired			—				(32,242	)
Proceeds from sale of cost method investment			—				3,901
Net cash used in investing activities			(43,187	)			(67,185	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercise of stock options			23,051				22,814
Proceeds from employee stock purchase plan			4,761				3,197
Payments for employee taxes withheld upon vesting of equity awards			(16,429	)			(5,005	)
Principal payments on long-term debt			(6,000	)			(6,000	)
Net cash provided by financing activities			5,383				15,006
NET EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS			(389	)			(650	)
NET CHANGE IN CASH AND CASH EQUIVALENTS			124,945				65,609
CASH AND CASH EQUIVALENTS:
Beginning of period			323,788				182,544
End of period		$	448,733			$	248,153
NONCASH INVESTING AND FINANCING ACTIVITIES:
Noncash purchases of software, equipment, and property		$	1,923			$	—
Contingent consideration related to business acquisition		$	—			$	200
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid for interest		$	40,983			$	24,150
Cash paid for income taxes—Net		$	27,316			$	55,526

 

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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 September 30,								Nine Months Ended September 30,
(amounts in thousands, except percentages)		2023				2022				2023				2022
Gross Profit		$	163,121			$	145,607			$	463,495			$	422,975
Amortization of acquired technologies			6,567				6,748				19,897				20,193
Stock-based compensation and related employer payroll tax			2,432				1,765				6,906				4,378
Impairment of acquired technologies			—				—				431				—
Adjusted Gross Profit		$	172,120			$	154,120			$	490,729			$	447,546
Gross Profit Margin			74	%			73	%			73	%			73	%
Adjusted Gross Profit Margin			78	%			78	%			77	%			77	%

 

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CCC INTELLIGENT SOLUTIONS HOLDINGS INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP OPERATING EXPENSES TO ADJUSTED OPERATING EXPENSES

(In thousands)

(Unaudited)

 

		Three Months Ended September 30,								Nine Months Ended September 30,
(dollar amounts in thousands)		2023				2022				2023				2022
Operating expenses		$	146,550			$	128,553			$	506,781			$	380,747
Amortization of intangible assets			(17,942	)			(18,066	)			(54,030	)			(54,212	)
Impairment of goodwill			—				—				(77,405	)			—
Impairment of intangible assets			—				—				(4,906	)			—
Stock-based compensation expense and related employer payroll tax			(37,778	)			(27,800	)			(100,577	)			(78,496	)
Plaintiff litigation costs			(1,396	)			—				(3,918	)			—
M&A and integration costs			—				(6	)			—				(1,761	)
Lease overlap costs			—				—				—				(1,222	)
Lease abandonment			—				—				—				(1,338	)
Business Combination transaction and related costs			—				(101	)			—				(1,156	)
Income related to divestiture, net			—				471				—				418
Adjusted operating expenses		$	89,434			$	83,051			$	265,945			$	242,980

 

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CCC INTELLIGENT SOLUTIONS HOLDINGS INC. AND SUBSIDIARIES

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

(In thousands)

(Unaudited)

 

		Three Months Ended September 30,								Nine Months Ended September 30,
(dollar amounts in thousands)		2023				2022				2023				2022
Operating income (loss)		$	16,571			$	17,054			$	(43,286	)		$	42,228
Amortization of intangible assets			17,942				18,066				54,030				54,212
Amortization of acquired technologies—Cost of revenue			6,567				6,748				19,897				20,193
Impairment of acquired technologies—Cost of revenue			—				—				431				—
Impairment of goodwill			—				—				77,405				—
Impairment of intangible assets			—				—				4,906				—
Stock-based compensation expense and related employer payroll tax			40,210				29,565				107,483				82,874
Plaintiff litigation costs			1,396				—				3,918				—
M&A and integration costs			—				6				—				1,761
Lease overlap costs			—				—				—				1,222
Lease abandonment			—				—				—				1,338
Business Combination transaction and related costs			—				101				—				1,156
Income related to divestiture, net			—				(471	)			—				(418	)
Adjusted operating income		$	82,686			$	71,069			$	224,784			$	204,566

 

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CCC INTELLIGENT SOLUTIONS HOLDINGS INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP NET (LOSS) INCOME TO ADJUSTED EBITDA

(In thousands, except for EBITDA margin percentage data)

(Unaudited)

 

		Three Months Ended September 30,								Nine Months Ended September 30,
(dollar amounts in thousands)		2023				2022				2023				2022
Net (loss) income		$	(21,202	)		$	9,795			$	(116,362	)		$	37,334
Interest expense			14,633				10,501				42,480				25,786
Interest income			(5,165	)			—				(12,447	)			—
Income tax (benefit) provision			1,818				3,452				(1,246	)			12,714
Amortization of intangible assets			17,942				18,066				54,030				54,212
Amortization of acquired technologies—Cost of revenue			6,567				6,748				19,897				20,193
Depreciation and amortization of software, equipment and property			2,117				2,427				6,531				7,834
Depreciation and amortization of software, equipment and property—Cost of revenue			7,942				4,238				21,494				12,321
EBITDA			24,652				55,227				14,377				170,394
Stock-based compensation expense and related employer payroll tax			40,210				29,565				107,483				82,874
Impairment of acquired technologies—Cost of revenue			—				—				431				—
Impairment of goodwill			—				—				77,405				—
Impairment of intangible assets			—				—				4,906				—
Change in fair value of derivative instruments			446				(5,991	)			(563	)			(5,991	)
Plaintiff litigation costs			1,396				—				3,918				—
Change in fair value of warrant liabilities			26,223				(312	)			45,403				(23,452	)
M&A and integration costs			—				6				—				1,761
Lease overlap costs			—				—				—				1,222
Lease abandonment			—				—				—				1,338
Business Combination transaction and related costs			—				101				—				1,156
Income related to divestiture, net			—				(471	)			—				(418	)
Gain on sale of cost method investment			—				(9	)			—				(3,587	)
Adjusted EBITDA		$	92,927			$	78,116			$	253,360			$	225,297
Adjusted EBITDA Margin			42	%			39	%			40	%			39	%

 

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CCC INTELLIGENT SOLUTIONS HOLDINGS INC. AND SUBSIDIARIES

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

(In thousands, except share and per share data)

(Unaudited)

 

		Three Months Ended September 30,								Nine Months Ended September 30,
(dollar amounts in thousands)		2023				2022				2023				2022
Net (loss) income		$	(21,202	)		$	9,795			$	(116,362	)		$	37,334
Amortization of intangible assets			17,942				18,066				54,030				54,212
Amortization of acquired technologies—Cost of revenue			6,567				6,748				19,897				20,193
Impairment of acquired technologies—Cost of revenue			—				—				431				—
Impairment of goodwill			—				—				77,405				—
Impairment of intangible assets			—				—				4,906				—
Stock-based compensation expense and related employer payroll tax			40,210				29,565				107,483				82,874
Change in fair value of derivative instruments			446				(5,991	)			(563	)			(5,991	)
Plaintiff litigation costs			1,396				—				3,918				—
Change in fair value of warrant liabilities			26,223				(312	)			45,403				(23,452	)
M&A and integration costs			—				6				—				1,761
Lease overlap costs			—				—				—				1,222
Lease abandonment			—				—				—				1,338
Business Combination transaction and related costs			—				101				—				1,156
Income related to divestiture, net			—				(471	)			—				(418	)
Gain on sale of cost method investment			—				(9	)			—				(3,587	)
Tax effect of adjustments			(14,421	)			(10,894	)			(45,054	)			(34,193	)
Adjusted net income		$	57,161			$	46,604			$	151,494			$	132,449
Adjusted net income per share attributable to common stockholders:
Basic		$	0.09			$	0.08			$	0.24			$	0.22
Diluted		$	0.09			$	0.07			$	0.23			$	0.21
Weighted average shares outstanding:
Basic			624,976,557				609,421,073				620,841,922				606,181,316
Diluted			657,570,205				643,582,922				652,296,866				642,208,622

 

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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 September 30,								Nine Months Ended September 30,
(dollar amounts in thousands)		2023				2022				2023				2022
Net cash provided by operating activities		$	60,506			$	30,753			$	163,138			$	118,438
Less: Purchases of software, equipment, and property			(14,103	)			(13,375	)			(43,187	)			(38,844	)
Free Cash Flow		$	46,403			$	17,378			$	119,951			$	79,594

 

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