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

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 March 31, 2023.

“CCC delivered strong first quarter results, highlighted by 10% year-over-year revenue growth and 39% adjusted EBITDA margin. We believe our solid start to 2023 reflects our durable business model, ongoing innovation, and continued adoption of CCC solutions that help our clients address a growing number of the business challenges facing the P&C insurance economy,” said Githesh Ramamurthy, Chairman & CEO of CCC.

“We believe there is a great opportunity to use our industry-leading platform, focus on innovation, and multi-sided network to develop and implement new digital solutions for our clients,” continued Ramamurthy. “We remain confident in our ability to deliver on our strategic and financial objectives while helping our customers and investing in future solutions.”

First Quarter 2023 Financial Highlights

Revenue

 

 

Total revenue was $204.9 million for the first quarter of 2023, compared to $186.8 million for the first quarter of 2022.

Profitability

 

 

GAAP gross profit was $147.8 million, representing a gross margin of 72%, for the first quarter of 2023, compared with $137.4 million, representing a gross margin of 74%, for the first quarter of 2022. Adjusted gross profit was $156.6 million, representing an adjusted gross margin of 76%, for the first quarter of 2023, compared with $145.1 million, representing an adjusted gross margin of 78%, for the first quarter of 2022.

 

 

GAAP operating income was $13.3 million for the first quarter of 2023, compared with GAAP operating income of $12.7 million for the first quarter of 2022. Adjusted operating income was $70.3 million for the first quarter of 2023, compared with adjusted operating income of $66.8 million for the first quarter of 2022.

 

 

GAAP net income was $2.2 million for the first quarter of 2023, compared with GAAP net income of $12.0 million for the first quarter of 2022. Adjusted net income was $46.5 million for the first quarter of 2023, compared with $48.9 million for the first quarter of 2022.

 

 

Adjusted EBITDA was $79.5 million for the first quarter of 2023, compared with adjusted EBITDA of $73.7 million for the first quarter of 2022. Adjusted EBITDA grew 8% in the first quarter of 2023 compared with the first quarter of 2022.

Liquidity

 

 

CCC had $338.4 million in cash and cash equivalents and $790.0 million of total debt on March 31, 2023. The Company generated $33.1 million in cash from operating activities and had free cash flow of $18.5 million during the first quarter of 2023, compared with $46.9 million generated in cash from operating activities and $32.6 million in free cash flow in the first quarter of 2022.

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.

1st Quarter and Recent Business Highlights

 

 

The total number of claims processed through CCC® Estimate-STP continues to increase. Estimate-STP is CCC’s AI-based system that can pre-populate a complete repair estimate on a qualified claim in seconds. In March of 2023, the annualized run rate value of auto claims processed through Estimate-STP was over $1 billion, which is more than 10 times CCC’s run rate value in March of 2022. With the current run rate value still representing less than 1% of CCC’s current annual Automobile Physical Damage claim volume, the growth potential of this product remains very strong.

 

 

 

The growing adoption of CCC® Diagnostics is helping to improve consistency and transparency around the administration, reporting, and verification of diagnostic services between repairers and insurers. As a result, CCC is experiencing growth in both its network of repair facilities using the solution and the volume of scanned vehicles being verified. In the first quarter of 2023, about 3,800 repair facilities ran a scan through one of CCC’s diagnostic services partners. This was more than twice the number of repair facilities running scans in the first quarter of 2022. Additionally in the first quarter of 2023, over 500,000 scanned vehicles were verified via the CCC network – more than double the volume being scanned in the first quarter of 2022.

 

 

In March, the Business Intelligence Group awarded CCC two 2023 Artificial Intelligence Excellence Awards. The 2023 Artificial Intelligence Excellence Awards recognize organizations, products, and people applying AI to solve real business challenges. The first award recognized Estimate-STP as a top innovation in the “product” category. The second award recognized CCC's NXT Lab innovation hub as a center of excellence in the “organization” category for its work across internal teams (including data science, R&D, engineering, support, and design) to develop and test next-generation AI solutions for the industry.

 

Business Outlook

Based on information as of today, May 2, 2023, the Company is issuing the following financial guidance:

 

 

 

Second Quarter Fiscal 2023

 

 

Full Year Fiscal 2023

 

Revenue

 

$

207.5 million to $209.5 million

 

 

$

844 million to $850 million

 

Adjusted EBITDA

 

$

76.5 million to $78.5 million

 

 

$

332 million to $338 million

 

Conference Call Information

CCC will host a conference call today, May 2, 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

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share data)

 

March 31,

December 31,

2023

2022

(Unaudited)

ASSETS

CURRENT ASSETS:

Cash and cash equivalents

$

338,354

 

$

323,788

 

Accounts receivable—Net of allowances of $6,866 and $5,339 as of March 31, 2023 and

December 31, 2022, respectively

 

92,268

 

 

98,353

 

Income taxes receivable

 

2,316

 

 

4,015

 

Deferred contract costs

 

17,339

 

 

16,556

 

Other current assets

 

34,766

 

 

36,358

 

Total current assets

 

485,043

 

 

479,070

 

SOFTWARE, EQUIPMENT, AND PROPERTY—Net

 

150,496

 

 

146,443

 

OPERATING LEASE ASSETS

 

32,349

 

 

32,874

 

INTANGIBLE ASSETS—Net

 

1,094,068

 

 

1,118,819

 

GOODWILL

 

1,495,129

 

 

1,495,129

 

DEFERRED FINANCING FEES, REVOLVER—Net

 

2,132

 

 

2,286

 

DEFERRED CONTRACT COSTS

 

20,212

 

 

20,161

 

EQUITY METHOD INVESTMENT

 

10,228

 

 

10,228

 

OTHER ASSETS

 

51,768

 

 

45,911

 

TOTAL

$

3,341,425

 

$

3,350,921

 

LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS’ EQUITY

CURRENT LIABILITIES:

Accounts payable

$

15,795

 

$

27,599

 

Accrued expenses

 

45,972

 

 

71,445

 

Income taxes payable

 

5,001

 

 

922

 

Current portion of long-term debt

 

8,000

 

 

8,000

 

Current portion of long-term licensing agreement—Net

 

2,921

 

 

2,876

 

Operating lease liabilities

 

6,815

 

 

5,484

 

Deferred revenues

 

40,272

 

 

35,239

 

Total current liabilities

 

124,776

 

 

151,565

 

LONG-TERM DEBT—Net

 

772,461

 

 

774,132

 

DEFERRED INCOME TAXES—Net

 

234,935

 

 

241,698

 

LONG-TERM LICENSING AGREEMENT—Net

 

30,005

 

 

30,752

 

OPERATING LEASE LIABILITIES

 

53,329

 

 

54,245

 

WARRANT LIABILITIES

 

35,210

 

 

36,405

 

OTHER LIABILITIES

 

1,975

 

 

2,658

 

Total liabilities

 

1,252,691

 

 

1,291,455

 

COMMITMENTS AND CONTINGENCIES (Notes 18 and 19)

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; 627,683,715 and

622,072,905 shares issued and outstanding at March 31, 2023 and December 31,

2022, respectively

 

63

 

 

62

 

Additional paid-in capital

 

2,781,104

 

 

2,754,055

 

Accumulated deficit

 

(705,762

)

 

(707,946

)

Accumulated other comprehensive loss

 

(850

)

 

(884

)

Total stockholders’ equity

 

2,074,555

 

 

2,045,287

 

TOTAL

$

3,341,425

 

$

3,350,921

 

CCC INTELLIGENT SOLUTIONS HOLDINGS INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

(In thousands, except share and per share data)

(Unaudited)

For the Three Months Ended

March 31,

2023

2022

REVENUES

$

204,919

 

$

186,823

 

COST OF REVENUES

Cost of revenues, exclusive of amortization of acquired technologies

 

50,447

 

 

42,701

 

Amortization of acquired technologies

 

6,685

 

 

6,695

 

Total cost of revenues

 

57,132

 

 

49,396

 

GROSS PROFIT

 

147,787

 

 

137,427

 

OPERATING EXPENSES:

Research and development

 

40,996

 

 

35,681

 

Selling and marketing

 

33,531

 

 

26,802

 

General and administrative

 

41,865

 

 

44,207

 

Amortization of intangible assets

 

18,066

 

 

18,080

 

Total operating expenses

 

134,458

 

 

124,770

 

OPERATING INCOME

 

13,329

 

 

12,657

 

INTEREST EXPENSE

 

(13,832

)

 

(7,341

)

INTEREST INCOME

 

3,259

 

 

 

CHANGE IN FAIR VALUE OF DERIVATIVE INSTRUMENTS

 

(2,604

)

 

 

CHANGE IN FAIR VALUE OF WARRANT LIABILITIES

 

1,195

 

 

2,136

 

GAIN ON SALE OF COST METHOD INVESTMENT

 

 

 

3,578

 

OTHER INCOME—Net

 

54

 

 

82

 

PRETAX INCOME

 

1,401

 

 

11,112

 

INCOME TAX BENEFIT

 

783

 

 

863

 

NET INCOME INCLUDING NON-CONTROLLING

INTEREST

 

2,184

 

 

11,975

 

Less: net income attributable to non-controlling interest

 

 

 

 

NET INCOME ATTRIBUTABLE TO CCC INTELLIGENT

SOLUTIONS HOLDINGS INC.

$

2,184

 

$

11,975

 

Net income per share attributable to common stockholders:

Basic

$

0.00

 

$

0.02

 

Diluted

$

0.00

 

$

0.02

 

Weighted-average shares used in computing net income per share

attributable to common stockholders:

Basic

 

616,217,176

 

 

603,104,839

 

Diluted

 

646,380,961

 

 

641,028,410

 

COMPREHENSIVE INCOME:

Net income including non-controlling interest

 

2,184

 

 

11,975

 

Other comprehensive income—Foreign currency translation

adjustment

 

34

 

 

9

 

COMPREHENSIVE INCOME INCLUDING

NON-CONTROLLING INTEREST

 

2,218

 

 

11,984

 

Less: comprehensive income attributable to non-controlling

interest

 

 

 

 

COMPREHENSIVE INCOME ATTRIBUTABLE TO CCC

INTELLIGENT SOLUTIONS HOLDINGS INC.

$

2,218

 

$

11,984

 

CCC INTELLIGENT SOLUTIONS HOLDINGS INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

 

For the Three Months Ended

March 31,

2023

2022

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income

$

2,184

 

$

11,975

 

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization of software, equipment, and property

 

9,206

 

 

6,807

 

Amortization of intangible assets

 

24,751

 

 

24,775

 

Deferred income taxes

 

(6,763

)

 

(21,223

)

Stock-based compensation

 

29,234

 

 

23,644

 

Amortization of deferred financing fees

 

427

 

 

474

 

Amortization of discount on debt

 

56

 

 

65

 

Change in fair value of derivative instruments

 

2,604

 

 

 

Change in fair value of warrant liabilities

 

(1,195

)

 

(2,136

)

Non-cash lease expense

 

942

 

 

1,228

 

Loss on disposal of software, equipment and property

 

 

 

795

 

Gain on sale of cost method investment

 

 

 

(3,578

)

Other

 

58

 

 

26

 

Changes in:

Accounts receivable—Net

 

6,084

 

 

2,043

 

Deferred contract costs

 

(783

)

 

(576

)

Other current assets

 

1,726

 

 

2,187

 

Deferred contract costs—Non-current

 

(51

)

 

814

 

Other assets

 

(8,519

)

 

(10,805

)

Operating lease assets

 

(417

)

 

1,316

 

Income taxes

 

5,778

 

 

20,370

 

Accounts payable

 

(11,897

)

 

4,825

 

Accrued expenses

 

(25,690

)

 

(16,460

)

Operating lease liabilities

 

415

 

 

(1,986

)

Deferred revenues

 

5,033

 

 

2,353

 

Other liabilities

 

(105

)

 

(68

)

Net cash provided by operating activities

 

33,078

 

 

46,865

 

CASH FLOWS FROM INVESTING ACTIVITIES:

Purchases of software, equipment, and property

 

(14,534

)

 

(14,280

)

Acquisition of Safekeep, Inc., net of cash acquired

 

 

 

(32,227

)

Proceeds from sale of cost method investment

 

 

 

3,892

 

Net cash used in investing activities

 

(14,534

)

 

(42,615

)

CASH FLOWS FROM FINANCING ACTIVITIES:

Proceeds from exercise of stock options

 

8,109

 

 

10,691

 

Proceeds from employee stock purchase plan

 

1,326

 

 

 

Payments for employee taxes withheld upon vesting of equity awards

 

(11,449

)

 

 

Principal payments on long-term debt

 

(2,000

)

 

(2,000

)

Net cash (used in) provided by financing activities

 

(4,014

)

 

8,691

 

NET EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS

 

36

 

 

12

 

NET CHANGE IN CASH AND CASH EQUIVALENTS

 

14,566

 

 

12,953

 

CASH AND CASH EQUIVALENTS:

Beginning of period

 

323,788

 

 

182,544

 

End of period

$

338,354

 

$

195,497

 

NONCASH INVESTING AND FINANCING ACTIVITIES:

Noncash purchases of software, equipment, and property

$

626

 

$

 

Contingent consideration related to business acquisition

$

 

$

200

 

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:

Cash paid for interest

$

13,446

 

$

6,783

 

Cash paid for income taxes—Net

$

202

 

$

45

 

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 March 31,

(amounts in thousands, except percentages)

2023

2022

Gross Profit

$

147,787

 

$

137,427

 

Amortization of acquired technologies

 

6,685

 

 

6,695

 

Stock-based compensation and related employer payroll tax

 

2,116

 

 

933

 

Adjusted Gross Profit

$

156,588

 

$

145,055

 

Gross Profit Margin

 

72

%

 

74

%

Adjusted Gross Profit Margin

 

76

%

 

78

%

CCC INTELLIGENT SOLUTIONS HOLDINGS INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP OPERATING EXPENSES TO ADJUSTED OPERATING EXPENSES

(In thousands)

(Unaudited)

Three Months Ended March 31,

(dollar amounts in thousands)

2023

2022

Operating expenses

$

134,458

 

$

124,770

 

Amortization of intangible assets

 

(18,066

)

 

(18,080

)

Stock-based compensation expense and related employer payroll tax

 

(29,094

)

 

(23,723

)

Plaintiff litigation costs

 

(986

)

 

 

M&A and integration costs

 

 

 

(1,407

)

Lease overlap costs

 

 

 

(1,338

)

Lease abandonment

 

 

 

(1,222

)

Business Combination transaction and related costs

 

 

 

(732

)

Net costs related to divestiture

 

 

 

(60

)

Adjusted operating expenses

$

86,312

 

$

78,208

 

CCC INTELLIGENT SOLUTIONS HOLDINGS INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP OPERATING INCOME TO ADJUSTED OPERATING INCOME

(In thousands)

(Unaudited)

Three Months Ended March 31,

(dollar amounts in thousands)

2023

2022

Operating income

$

13,329

$

12,657

Amortization of intangible assets

 

18,066

 

18,080

Amortization of acquired technologies—Cost of revenue

 

6,685

 

6,695

Stock-based compensation expense and related employer payroll tax

 

31,210

 

24,656

Plaintiff litigation costs

 

986

 

M&A and integration costs

 

 

1,407

Lease overlap costs

 

 

1,338

Lease abandonment

 

 

1,222

Business Combination transaction and related costs

 

 

732

Net costs related to divestiture

 

 

60

Adjusted operating income

$

70,276

$

66,847

CCC INTELLIGENT SOLUTIONS HOLDINGS INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP NET INCOME TO ADJUSTED EBITDA

(In thousands, except for EBITDA margin percentage data)

(Unaudited)

 

Three Months Ended

March 31,

(dollar amounts in thousands)

2023

2022

Net income

$

2,184

 

$

11,975

 

Interest expense

 

13,832

 

 

7,341

 

Interest income

 

(3,259

)

 

 

Income tax benefit

 

(783

)

 

(863

)

Amortization of intangible assets

 

18,066

 

 

18,080

 

Amortization of acquired technologies—Cost of revenue

 

6,685

 

 

6,695

 

Depreciation and amortization of software, equipment and property

 

2,227

 

 

2,962

 

Depreciation and amortization of software, equipment and property—Cost of revenue

 

6,979

 

 

3,845

 

EBITDA

 

45,931

 

 

50,035

 

Stock-based compensation expense and related employer payroll tax

 

31,210

 

 

24,656

 

Change in fair value of derivative instruments

 

2,604

 

 

 

Plaintiff litigation costs

 

986

 

 

 

Change in fair value of warrant liabilities

 

(1,195

)

 

(2,136

)

M&A and integration costs

 

 

 

1,407

 

Lease overlap costs

 

 

 

1,338

 

Lease abandonment

 

 

 

1,222

 

Business Combination transaction and related costs

 

 

 

732

 

Net costs related to divestiture

 

 

 

60

 

Gain on sale of cost method investment

 

 

 

(3,578

)

Adjusted EBITDA

$

79,536

 

$

73,736

 

Adjusted EBITDA Margin

 

39

%

��

39

%

CCC INTELLIGENT SOLUTIONS HOLDINGS INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP NET INCOME TO ADJUSTED NET INCOME

(In thousands, except share and per share data)

(Unaudited)

Three Months Ended

March 31,

(dollar amounts in thousands)

2023

2022

Net income

$

2,184

 

$

11,975

 

Amortization of intangible assets

 

18,066

 

 

18,080

 

Amortization of acquired technologies—Cost of revenue

 

6,685

 

 

6,695

 

Stock-based compensation expense and related employer payroll tax

 

31,210

 

 

24,656

 

Change in fair value of derivative instruments

 

2,604

 

 

 

Plaintiff litigation costs

 

986

 

 

 

Change in fair value of warrant liabilities

 

(1,195

)

 

(2,136

)

M&A and integration costs

 

 

 

1,407

 

Lease overlap costs

 

 

 

1,338

 

Lease abandonment

 

 

 

1,222

 

Business Combination transaction and related costs

 

 

 

732

 

Net costs related to divestiture

 

 

 

60

 

Gain on sale of cost method investment

 

 

 

(3,578

)

Tax effect of adjustments

 

(14,046

)

 

(11,577

)

Adjusted net income

$

46,494

 

$

48,874

 

Adjusted net income per share attributable to common stockholders:

Basic

$

0.08

 

$

0.08

 

Diluted

$

0.07

 

$

0.08

 

Weighted average shares outstanding:

Basic

 

616,217,176

 

 

603,104,839

 

Diluted

 

646,380,961

 

 

641,028,410

 

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 March 31,

(dollar amounts in thousands)

2023

2022

Net cash provided by operating activities

$

33,078

 

$

46,865

 

Less: Purchases of software, equipment, and property

 

(14,534

)

 

(14,280

)

Free Cash Flow

$

18,544

 

$

32,585

 

 

Contacts

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

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