CCC Intelligent Solutions Holdings Inc. Announces Third Quarter Fiscal 2021 Financial Results

CCC Intelligent Solutions Holdings Inc. (CCC) (NYSE: CCCS), a leading SaaS platform for the P&C insurance economy, today announced its financial results for the three months ended September 30, 2021.

“CCC continued to perform at a high level in the third quarter, highlighted by 18% adjusted revenue growth and 31% adjusted EBITDA growth. We continue to see strong adoption of our expanding product portfolio as demand for cloud-based solutions to digitize workflows increases across the P&C insurance economy,” said Githesh Ramamurthy, Chairman & CEO of CCC.

Ramamurthy continued, “Our performance demonstrates the power of our growth model and we will continue to invest in the business to benefit our customers. We are thrilled with the pace of product innovation and the quality of customer feedback, giving us great confidence in our growth potential.”

Third Quarter 2021 Financial Highlights

Revenue

• Total revenue was $176.6 million for the third quarter of 2021, compared to $157.8 million for the third quarter of 2020. Adjusted for the impact of the divestiture of a portion of our professional services casualty solution in December 2020, total revenue grew 18% in the third quarter of 2021.

Profitability

• GAAP gross profit was $118.8 million, representing a gross margin of 67%, for the third quarter of 2021, compared with $107.3 million, representing a gross margin of 68%, for the third quarter of 2020. Adjusted gross profit was $138.4 million, representing an adjusted gross margin of 78%, for the third quarter of 2021, compared with $113.4 million, representing an adjusted gross margin of 76%, for the third quarter of 2020.
• GAAP operating loss was $189.2 million for the third quarter of 2021, compared with GAAP operating income of $23.1 million for the third quarter of 2020. Adjusted operating income was $62.5 million for the third quarter of 2021, compared with adjusted operating income of $49.1 million for the third quarter of 2020.
• GAAP net loss was $189.8 million for the third quarter of 2021, compared with GAAP net income of $4.7 million for the third quarter of 2020. Adjusted net income was $29.7 million for the third quarter of 2021, compared with $21.1 million for the third quarter of 2020.
• Adjusted EBITDA was $70.1 million for the third quarter of 2021, compared with adjusted EBITDA of $53.6 million for the third quarter of 2020. Adjusted EBITDA grew 31% in the third quarter of 2021 as compared to the third quarter of 2020.

Liquidity

• CCC had $160.5 million in cash and cash equivalents and $800.0 million of total debt at September 30, 2021. The Company generated $36.9 million in cash from operating activities and had free cash flow of $25.0 million during the third quarter of 2021, compared with $43.0 million generated in cash from operating activities and $31.7 million in free cash flow in the third quarter of 2020.

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.

3^rd Quarter and Recent Business Highlights

• Announced the first touchless estimating experience in the industry. The AI-powered CCC® Estimate-STP uses advanced AI and insurer-driven rules to automatically initiate and populate detailed and actionable estimates in seconds. In market with four national insurers, CCC Estimate-STP offers touchless line level estimates from photos and is part of CCC’s broader offering that is digitizing the auto claims experience.
• Signed multi-year renewals with a Top 5 insurer and one of the country’s largest multi-store operators, or MSOs. As part of the multi-year agreements these customers have meaningfully expanded their annual commitment to CCC as they broadened the number of solutions they utilize from the platform.
• Partnered with Toyota to deliver Collision Assistance, a just-in-time support service, which is now available to drivers within the Toyota and Lexus mobile apps. The CCC mobile technology combines guided accident documentation and access to claims and management services to assist drivers following a collision. This is an example of how CCC is delivering innovation that expands our ecosystem beyond traditional insurer and repair facility customers.
• Successfully completed the refinancing of its existing secured credit facility with a new credit agreement comprised of an $800 million senior secured term loan facility (the “Term Loan”) and a $250 million senior secured revolving credit facility (the “Revolving Facility”) that lowered our effective interest rate from 4.0% to 3.0%.

Business Outlook

Based on information as of today, November 10, 2021, the Company is issuing the following financial guidance:

Year-over-year revenue growth for the fourth quarter of 2021 is forecasted to be 10% - 11%, or 16% - 17% when adjusted for the impact of the divestiture of a portion of our casualty solution (specifically, First Party Clinical Services) in December 2020. Year-over-year revenue growth for the full year 2021 is forecasted to be 8%, or 14% on an adjusted basis. First Party Clinical Services revenue was $8.6 million and $34.7 million for our fiscal fourth quarter and full year 2020, respectively.

Conference Call Information

CCC will host a conference call today, November 10, 2021, at 5:00 p.m. (Eastern Time) to discuss the Company’s financial results and financial guidance. To access this call, dial 877-407-0784 (domestic) or 201-689-8560 (international). The conference ID number is 13723556. 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. (CCC), a subsidiary of CCC Intelligent Solutions Holdings Inc. (NYSE: 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, statements regarding 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, the general economic, political, business and competitive conditions; the impact of COVID-19 on CCC’s business; failure to realize the anticipated benefits of the business combination of CCC’s parent corporation and Dragoneer Growth Opportunities Corp. (the “business combination”); costs related to the business combination; the ability of the Company to grow and manage growth profitably and retain its key employees; the risk that the adoption of CCC® Estimate-STP does not occur on the expected timing; the risk that the Company fails to realize the expected benefits of customer renewals and expanding the Company’s customer base; the inability to maintain CCC’s listing of securities on the NYSE; changes in applicable laws or regulations; and other risks and uncertainties, including those included under the header “Risk Factors” in the definitive proxy statement/prospectus filed by Dragoneer Growth Opportunities Corp. with the Securities and Exchange Commission (“SEC”) on July 6, 2021, which can be obtained, without charge, at the SEC’s website (www.sec.gov). 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,” 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211110006211/en/