CCC Intelligent Solutions Holdings Inc. (“CCC” or the “Company”) (NYSE: CCCS), a leading SaaS platform for the P&C insurance economy, hasannounced its financial results for the three months ended March 31, 2022.
“CCC delivered strong first quarter results, highlighted by 18% revenue growth and 33% adjusted EBITDA growth. Our results demonstrate our ability to solve the most pressing operational problems facing our customers’ businesses.” said Githesh Ramamurthy, Chairman & CEO of CCC.
“The P&C insurance industry is still in the early stages of digitization,” continued Ramamurthy. “Our significant and ongoing investment in innovation positions CCC to continue to drive durable growth in the near and long-term.”
First Quarter 2022 Financial Highlights
Revenue
- Total revenue was $186.8 million for the first quarter of 2022, an increase of 18% from $157.8 million for the first quarter of 2021.
Profitability
- GAAP gross profit was $137.4 million, representing a gross profit margin of 74%, for the first quarter of 2022, compared with $113.2 million, representing a gross profit margin of 72%, for the first quarter of 2021. Adjusted gross profit was $145.1 million, representing an adjusted gross profit margin of 78%, for the first quarter of 2022, compared with $120.0 million, representing an adjusted gross profit margin of 76%, for the first quarter of 2021.
- GAAP operating income was $12.7 million for the first quarter of 2022, compared with GAAP operating income of $7.2 million for the first quarter of 2021. Adjusted operating income was $66.8 million for the first quarter of 2022, compared with adjusted operating income of $50.2 million for the first quarter of 2021.
- GAAP net income was $12.0 million for the first quarter of 2022, compared with GAAP net loss of $5.1 million for the first quarter of 2021. Adjusted net income was $48.9 million for the first quarter of 2022, compared with $25.0 million for the first quarter of 2021.
- Adjusted EBITDA was $73.7 million for the first quarter of 2022, compared with adjusted EBITDA of $55.4 million for the first quarter of 2021. Adjusted EBITDA grew 33% in the first quarter of 2022 as compared to the first quarter of 2021.
Liquidity
- CCC had $195.5 million in cash and cash equivalents and $798.0 million of total debt at March 31, 2022. The Company generated $46.9 million in cash from operating activities and had free cash flow of $32.6 million during the first quarter of 2022, compared with $38.2 million generated in cash from operating activities and $33.5 million in free cash flow in the first quarter of 2021.
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
- We continued to see strong momentum across our customer groups in the P&C insurance ecosystem. With our insurance clients, we are seeing good adoption by insurers of our total loss care portfolio, where we now have 21 carriers either onboarded or in pilot. We also added two new carriers to our casualty platform in the quarter. Within the repair facilities, we are seeing strong growth in repair facility locations, which now exceed 27,000, as well as higher solution adoption per location driven by a 21% increase in the number of facilities adopting four or more solutions from CCC compared to 2020.
- As part of our commitment to making it easier for clients to achieve quality repairs and operate at the pace of innovation, we recently leveraged the open ecosystem of the CCC Cloud to further expand the CCC Diagnostics network with the addition of asTech, a Repairify company and a global leader in diagnostic, calibration, and programming solutions. The integration makes it easier for repair facilities to capture and document scan information in CCC ONE workfiles. Digitally integrated systems make it easier for repairers to access, capture, and document information needed to achieve complete repairs. CCC® Diagnostics has now been rolled out to over 10% of our repair facility clients.
- Certain existing shareholders completed a secondary stock offering of 20,000,000 shares of the Company’s common stock at a price to the public of $9.70 per share. The Company did not receive any of the proceeds from the sale of shares by the existing stockholders.
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