Source: CCC Intelligent Solutions

CHICAGO — CCC Intelligent Solutions Holdings Inc. (“CCC” or the “Company”) (NASDAQ: CCCS), a leading SaaS platform for the P&C insurance economy, 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

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

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

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

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

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

Full Year 2022 Financial Highlights

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

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

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

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

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

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

4th Quarter and Recent Business Highlights

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

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

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

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.

…

For additional details, view the full press release on the CCC Intelligent Solutions website.