CCC Intelligent Solutions Holdings Inc. Announces Fourth Quarter and Fiscal Year 2024 Financial Results

CCC Intelligent Solutions Holdings Inc. ("CCC" or the "Company") (NASDAQ:CCCS), a leading cloud platform provider for the P&C insurance economy, today announced its financial results for the three months and year ended December 31, 2024.

"CCC delivered another year of solid financial performance, with year-over-year revenue growth in 2024 of 9% and adjusted EBITDA margin of 42%. We made significant investments in 2024 to deliver AI-based innovation and operational performance to our customers, introducing the largest number of new solutions in CCC's history while continuing to expand our multi-sided network," said Githesh Ramamurthy, Chairman & CEO of CCC.

"In addition to our investments in artificial intelligence and the CCC IX Cloud™ platform, our acquisition of EvolutionIQ helps to accelerate our vision of deploying intelligent experiences across the insurance economy," continued Ramamurthy. "Positive customer feedback regarding these investments reinforces our confidence in our durable business model and long-term growth outlook."

Fourth Quarter 2024 Financial Highlights

Revenue

• Total revenue was $246.5 million for the fourth quarter of 2024, an increase of 8% from $228.6 million for the fourth quarter of 2023.

Profitability

• GAAP gross profit was $185.2 million, representing a gross margin of 75%, for the fourth quarter of 2024, compared with $172.7 million, representing a gross margin of 76%, for the fourth quarter of 2023. Adjusted gross profit was $187.7 million, representing an adjusted gross profit margin of 76%, for the fourth quarter of 2024, compared with $181.5 million, representing an adjusted gross profit margin of 79%, for the fourth quarter of 2023.
• GAAP operating income was $21.1 million for the fourth quarter of 2024, compared with GAAP operating income of $19.4 million for the fourth quarter of 2023. Adjusted operating income was $92.9 million for the fourth quarter of 2024, compared with adjusted operating income of $90.6 million for the fourth quarter of 2023.
• GAAP net income was $6.3 million for the fourth quarter of 2024, compared with GAAP net income of $26.3 million for the fourth quarter of 2023. Adjusted net income was $64.5 million for the fourth quarter of 2024, compared with adjusted net income of $59.0 million for the fourth quarter of 2023.
• Adjusted EBITDA was $106.3 million for the fourth quarter of 2024, compared with adjusted EBITDA of $100.1 million for the fourth quarter of 2023. Adjusted EBITDA grew 6% in the fourth quarter of 2024 compared with the fourth quarter of 2023.

Full Year 2024 Financial Highlights

Revenue

• Total revenue was $944.8 million for the full year of 2024, an increase of 9% from $866.4 million for the full year of 2023.

Profitability

• GAAP gross profit was $713.8 million, representing a gross margin of 76% for the full year of 2024, compared with $636.2 million, representing a gross margin of 73% for the full year of 2023. Adjusted gross profit was $732.7 million, representing an adjusted gross profit margin of 78% for the full year of 2024, compared with $672.2 million, representing an adjusted gross profit margin of 78% for the full year of 2023.
• GAAP operating income was $80.1 million for the full year of 2024, compared with GAAP operating loss of $23.9 million for the full year of 2023. Adjusted operating income was $354.2 million for the full year of 2024, compared with adjusted operating income of $315.4 million for the full year of 2023.
• GAAP net income was $31.2 million for the full year of 2024, compared with GAAP net loss of $90.1 million for the full year of 2023. Adjusted net income was $238.1 million for the full year of 2024, compared with adjusted net income of $210.5 million for the full year of 2023.
• Adjusted EBITDA was $397.4 million for the full year of 2024, compared with adjusted EBITDA of $353.4 million for the full year of 2023. Adjusted EBITDA grew 12% in the full year of 2024 compared with the full year of 2023.

Liquidity

• CCC had $399.0 million in cash and cash equivalents and $776.0 million of total debt on December 31, 2024. The Company generated $283.9 million in cash from operating activities and had free cash flow of $230.9 million for the full year of 2024, compared with $250.0 million in cash generated from operating activities and $195.0 million in free cash flow for the full year of 2023.

The information presented above includes non-GAAP financial measures such as "adjusted EBITDA," "adjusted net income," "adjusted EBITDA margin," "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.

4^th Quarter and Recent Business Highlights

• CCC completed the previously announced acquisition of EvolutionIQ, Inc. ("EvolutionIQ"), the leading platform for AI-powered guidance for disability and injury claims management. The acquisition expands CCC's market reach into strategic adjacencies – disability and workers' compensation – while strengthening CCC's industry-leading AI-powered SaaS platform through the addition of transformative AI capabilities, including Medical Summarization and Next Best Action, that we believe will revolutionize how insurance claims are resolved.
• CCC strengthened its automotive collision repair facility customer group, growing revenue through a combination of new logos, cross-selling, and upselling. In 2024, CCC added over 1,000 new rooftops and now has over 30,500 repair facilities on the CCC ONE® network. More than 10,000 of these collision repairers are actively using AI-powered solutions in production environments.
• CCC recently renewed a top 20 auto insurer (based on direct premium written) for a 5-year extension, and had numerous cross-selling successes, including several insurance clients who expanded their suite of Casualty solutions. In addition, we expanded the use of intelligent solutions, including Estimate-STP, which is now live at over 40 insurers, and Subrogation, which is now live at over 20 insurers.
• The board of directors authorized a share repurchase program of up to $300 million. Under the repurchase authorization, CCC is authorized to repurchase shares through open market purchases, privately negotiated transactions, or accelerated share repurchases. The repurchase authorization does not obligate the Company to repurchase shares and the specific timing and amount of repurchases may vary based on available capital resources, market conditions, management's discretion, securities law limitations, and other factors. Repurchases, if any, will be funded out of available liquidity and free cash flow.

Business Outlook

Based on information as of today, February 25, 2025, the Company is issuing the following financial guidance:

Conference Call Information

CCC will host a conference call today, February 25, 2025, 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. (CCC), a subsidiary of CCC Intelligent Solutions Holdings Inc. (NASDAQ:CCCS), is a leading cloud platform provider for the multi-trillion-dollar P&C insurance economy, creating intelligent experiences for insurers, repairers, automakers, part suppliers, and more. The CCC Intelligent Experience (IX) Cloud™ platform, powered by proven AI and an innovative event-based architecture, connects more than 35,000 businesses to power customized applications and platforms for optimal outcomes and personalized experiences that just work. Through purposeful innovation and the strength of its connections, CCC technologies empower the people and industry relied upon to keep 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; the impact of public health outbreaks, epidemics or pandemics on our business and results of operations; 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; 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; our reliance on third-party data, technology and intellectual property; changes in our customers' or the public's perceptions regarding the use of artificial intelligence; 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, 2024 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 EBITDA margin," "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.

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Investor Contact:

Bill Warmington

VP, Investor Relations, CCC Intelligent Solutions Inc.

312-229-2355

[email protected]

Media Contact:

Michelle Hellyar

Senior Director, Public Relations, CCC Intelligent Solutions Inc.

[email protected]