Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil EL&P Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries CCC Intelligent Solutions Holdings Inc. Announces Third Quarter Fiscal 2021 Financial Results By: CCC Intelligent Solutions Inc. via Business Wire November 10, 2021 at 16:05 PM EST 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. 3rd 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: Fourth Quarter Fiscal 2021 Full Year Fiscal 2021 Revenue $182 million to $184 million $683 million to $685 million Adjusted EBITDA $69 million to $71 million $255 million to $257 million 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. CCC INTELLIGENT SOLUTIONS HOLDINGS INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except share data) September 30, December 31, 2021 2020 (Unaudited) ASSETS CURRENT ASSETS: Cash and cash equivalents $ 160,465 $ 162,118 Accounts receivable—Net of allowances of $3,972 and $4,224 for September 30, 2021 and December 31, 2020, respectively 82,367 74,107 Income taxes receivable 6,915 2,037 Deferred contract costs 13,833 11,917 Other current assets 36,261 31,586 Total current assets 299,841 281,765 SOFTWARE, EQUIPMENT, AND PROPERTY—Net 121,018 101,438 OPERATING LEASE ASSETS 38,774 - INTANGIBLE ASSETS—Net 1,237,950 1,311,917 GOODWILL 1,466,884 1,466,884 DEFERRED FINANCING FEES, REVOLVER—Net 3,053 746 DEFERRED CONTRACT COSTS 18,893 14,389 EQUITY METHOD INVESTMENT 10,228 - OTHER ASSETS 21,584 18,416 TOTAL $ 3,218,225 $ 3,195,555 LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS’ EQUITY CURRENT LIABILITIES: Accounts payable $ 16,083 $ 13,164 Accrued expenses 81,771 52,987 Income taxes payable 7,161 5,129 Current portion of long-term debt 8,000 25,381 Current portion of long-term licensing agreement—Net 2,661 2,540 Operating lease liabilities 8,855 - Deferred revenues 29,384 26,514 Total current liabilities 153,915 125,715 LONG-TERM DEBT: First Lien Term Loan—Net - 1,292,597 Term B Loan—Net 780,218 - Total long-term debt 780,218 1,292,597 DEFERRED INCOME TAXES—Net 255,849 322,348 LONG-TERM LICENSING AGREEMENT—Net 34,320 36,331 OPERATING LEASE LIABILITIES 50,550 - WARRANT LIABILITIES 85,348 - OTHER LIABILITIES 6,808 32,770 Total liabilities 1,367,008 1,809,761 COMMITMENTS AND CONTINGENCIES (Notes 22 and 23) 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; 603,170,380 and 504,274,890 shares issued and outstanding at September 30, 2021 and December 31, 2020, respectively 60 50 Additional paid-in capital 2,525,750 1,501,206 Accumulated deficit (688,483 ) (129,370 ) Accumulated other comprehensive loss (289 ) (271 ) Total stockholders’ equity 1,837,038 1,371,615 TOTAL $ 3,218,225 $ 3,195,555 CCC INTELLIGENT SOLUTIONS HOLDINGS INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME (In thousands, except share and per share data) (Unaudited) For the Three Months Ended For the Nine Months Ended September 30, September 30, 2021 2020 2021 2020 REVENUES $ 176,628 $ 157,754 $ 501,205 $ 467,677 COST OF REVENUES Cost of revenues, exclusive of amortization of acquired technologies 51,273 43,879 128,218 135,674 Amortization of acquired technologies 6,580 6,576 19,740 19,725 Total cost of revenues 57,853 50,455 147,958 155,399 GROSS PROFIT 118,775 107,299 353,247 312,278 OPERATING EXPENSES: Research and development 67,016 26,816 128,894 82,131 Selling and marketing 80,382 17,427 121,350 56,608 General and administrative 142,511 21,893 208,745 66,460 Amortization of intangible assets 18,078 18,078 54,232 54,232 Total operating expenses 307,987 84,214 513,221 259,431 OPERATING (LOSS) INCOME (189,212 ) 23,085 (159,974 ) 52,847 INTEREST EXPENSE (13,878 ) (19,788 ) (51,548 ) (57,588 ) GAIN (LOSS) ON CHANGE IN FAIR VALUE OF INTEREST RATE SWAPS 2,007 3,894 8,373 (16,633 ) CHANGE IN FAIR VALUE OF WARRANT LIABILITIES (26,889 ) - (26,889 ) - LOSS ON EARLY EXINGUISHMENT OF DEBT (15,240 ) - (15,240 ) (8,615 ) OTHER (EXPENSE) INCOME—Net (93 ) 49 1 304 PRETAX (LOSS) INCOME (243,305 ) 7,240 (245,277 ) (29,685 ) INCOME TAX BENEFIT (PROVISION) 53,523 (2,520 ) 54,227 7,191 NET (LOSS) INCOME INCLUDING NON-CONTROLLING INTEREST (189,782 ) 4,720 (191,050 ) (22,494 ) Less: net (loss) income attributable to non-controlling interest - - - - NET (LOSS) INCOME ATTRIBUTABLE TO CCC INTELLIGENT SOLUTIONS HOLDINGS INC. $ (189,782 ) $ 4,720 $ (191,050 ) $ (22,494 ) Net (loss) income per share attributable to common stockholders: Basic $ (0.34 ) $ 0.01 $ (0.36 ) $ (0.04 ) Diluted $ (0.34 ) $ 0.01 $ (0.36 ) $ (0.04 ) Weighted-average shares used in computing net (loss) income per share attributable to common stockholders: Basic 566,454,782 504,212,021 525,877,533 504,062,587 Diluted 566,454,782 510,694,493 525,877,533 504,062,587 COMPREHENSIVE (LOSS) INCOME: Net (loss) income including non-controlling interest (189,782 ) 4,720 (191,050 ) (22,494 ) Other comprehensive income (loss)—Foreign currency translation adjustment 11 83 (18 ) 65 COMPREHENSIVE (LOSS) INCOME INCLUDING NON-CONTROLLING INTEREST (189,771 ) 4,803 (191,068 ) (22,429 ) Less: comprehensive (loss) income attributable to non-controlling interest - - - - COMPREHENSIVE (LOSS) INCOME ATTRIBUTABLE TO CCC INTELLIGENT SOLUTIONS HOLDINGS INC. $ (189,771 ) $ 4,803 $ (191,068 ) $ (22,429 ) CCC INTELLIGENT SOLUTIONS HOLDINGS INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) For the Nine Months Ended September 30, 2021 2020 CASH FLOWS FROM OPERATING ACTIVITIES: Net loss $ (191,050 ) $ (22,494 ) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation and amortization of software, equipment, and property 18,161 13,039 Amortization of intangible assets 73,972 73,957 Deferred income taxes (66,499 ) (18,018 ) Stock-based compensation 235,413 7,471 Amortization of deferred financing fees 3,204 3,475 Amortization of discount on debt 537 553 Change in fair value of interest rate swaps (8,373 ) 16,633 Change in fair value of warrant liabilities 26,889 - Loss on early extinguishment of debt 15,240 8,615 Non-cash lease expense 5,029 - Other 54 42 Changes in: Accounts receivable—Net (8,332 ) (12,644 ) Deferred contract costs (1,916 ) (507 ) Other current assets (4,673 ) (755 ) Deferred contract costs—Non-current (4,504 ) (1,246 ) Other assets (3,221 ) (10,795 ) Operating lease assets 5,133 - Income taxes (2,846 ) 11,597 Accounts payable 1,399 2,080 Accrued expenses 17,051 (5,183 ) Operating lease liabilities (5,935 ) - Deferred revenues 2,861 580 Extinguishment of interest rate swap liability (9,987 ) - Other liabilities (882 ) 389 Net cash provided by operating activities 96,725 66,789 CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of software, equipment, and property (25,022 ) (23,815 ) Purchase of equity method investment (10,228 ) - Purchase of intangible asset (49 ) (560 ) Net cash used in investing activities (35,299 ) (24,375 ) CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from issuance of non-controlling interest in subsidiary - 14,179 Deemed distribution to CCCIS option holders (9,006 ) - Net proceeds from equity infusion from the Business Combination 763,300 - Principal payments on long-term debt (1,336,154 ) (385,385 ) Proceeds from issuance of long-term debt, net of fees paid to lender 789,927 369,792 Proceeds from borrowings on revolving lines of credit - 65,000 Repayment of borrowings on revolving lines of credit - (65,000 ) Proceeds from issuance of common stock 1,007 - Payment of fees associated with early extinguishment of long-term debt (3,320 ) (29 ) Proceeds from exercise of stock options 503 618 Repurchases of common stock - (123 ) Dividends to CCCIS stockholders (269,174 ) - Net cash used in financing activities (62,917 ) (948 ) NET EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS (162 ) 108 NET CHANGE IN CASH AND CASH EQUIVALENTS (1,653 ) 41,574 CASH AND CASH EQUIVALENTS: Beginning of period 162,118 93,201 End of period $ 160,465 $ 134,775 NONCASH INVESTING AND FINANCING ACTIVITIES: Unpaid liability related to software, equipment, and property $ 4,054 $ - Leasehold improvements acquired by tenant improvement allowance $ 10,556 $ - SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: Cash paid for interest, excluding extinguishment of interest rate swap liability $ 47,312 $ 52,217 Cash received (paid) for income taxes—Net $ (15,119 ) $ 770 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 September 30, Nine months ended September 30, (amounts in thousands, except percentages) 2021 2020 2021 2020 Gross Profit $ 118,775 $ 107,299 $ 353,247 $ 312,278 First Party Clinical Services—Gross Profit - (645 ) - (3,035 ) Amortization of acquired technologies 6,580 6,576 19,740 19,725 Business combination transaction costs 905 - 905 - Stock-based compensation 12,169 141 12,563 380 Adjusted Gross Profit $ 138,429 $ 113,371 $ 386,455 $ 329,348 Gross Profit Margin 67 % 68 % 70 % 67 % Adjusted Gross Profit Margin 78 % 76 % 77 % 75 % CCC INTELLIGENT SOLUTIONS HOLDINGS INC. AND SUBSIDIARIES RECONCILIATION OF GAAP OPERATING (LOSS) INCOME TO ADJUSTED OPERATING INCOME (In thousands) (Unaudited) Three months ended September 30, Nine months ended September 30, (dollar amounts in thousands) 2021 2020 2021 2020 Net operating (loss) income $ (189,212 ) $ 23,085 $ (159,974 ) $ 52,847 Stock-based compensation expense 219,876 1,869 235,413 7,471 Lease abandonment 438 - 2,256 - Lease overlap costs 924 - 2,773 - Net costs related to divestiture 338 - 2,605 - Business combination transaction costs 5,516 93 10,471 93 Amortization of intangible assets 18,078 18,078 54,232 54,232 Amortization of acquired technologies—Cost of revenue 6,580 6,576 19,740 19,725 First Party Clinical Services—Revenue - (7,830 ) - (26,083 ) First Party Clinical Services—Cost of revenue - 7,185 - 23,048 Adjusted operating income $ 62,538 $ 49,056 $ 167,516 $ 131,333 CCC INTELLIGENT SOLUTIONS HOLDINGS INC. AND SUBSIDIARIES RECONCILIATION OF NET (LOSS) INCOME TO ADJUSTED EBITDA (In thousands) (Unaudited) Three months ended September 30, Nine months ended September 30, (dollar amounts in thousands) 2021 2020 2021 2020 Net (loss) income $ (189,782 ) $ 4,720 $ (191,050 ) $ (22,494 ) Interest expense 13,878 19,788 51,548 57,588 Income tax provision (benefit) (53,523 ) 2,520 (54,227 ) (7,191 ) Amortization of intangible assets 18,078 18,078 54,232 54,232 Amortization of acquired technologies—Cost of revenue 6,580 6,576 19,740 19,725 Depreciation and amortization related to software, equipment and property 7,694 4,496 18,161 13,039 EBITDA (197,075 ) 56,178 (101,596 ) 114,899 (Gain) loss on change in fair value of interest rate swaps (2,007 ) (3,894 ) (8,373 ) 16,633 Change in fair value of warrant liabilities 26,889 - 26,889 - Stock-based compensation expense 219,876 1,869 235,413 7,471 Loss on early extinguishment of debt 15,240 - 15,240 8,615 Business combination transaction costs 5,516 93 10,471 93 Lease abandonment 438 - 2,256 - Lease overlap costs 924 - 2,773 - Net costs related to divestiture 338 - 2,605 - First Party Clinical Services—Revenue - (7,830 ) - (26,083 ) First Party Clinical Services—Cost of revenue - 7,185 - 23,048 Adjusted EBITDA $ 70,139 $ 53,601 $ 185,678 $ 144,676 CCC INTELLIGENT SOLUTIONS HOLDINGS INC. AND SUBSIDIARIES RECONCILIATION OF GAAP NET (LOSS) INCOME TO ADJUSTED NET INCOME (In thousands) (Unaudited) Three months ended September 30, Nine months ended September 30, (dollar amounts in thousands) 2021 2020 2021 2020 Net (loss) income $ (189,782 ) $ 4,720 $ (191,050 ) $ (22,494 ) Amortization of intangible assets 18,078 18,078 54,232 54,232 Amortization of acquired technologies—Cost of revenue 6,580 6,576 19,740 19,725 (Gain) loss on change in fair value of interest rate swaps (2,007 ) (3,894 ) (8,373 ) 16,633 Change in fair value of warrant liabilities 26,889 - 26,889 - Stock-based compensation expense 219,876 1,869 235,413 7,471 Loss on early extinguishment of debt 15,240 - 15,240 8,615 Business combination transaction costs 5,516 93 10,471 93 Lease abandonment 438 - 2,256 - Lease overlap costs 924 - 2,773 - Net costs related to divestiture 338 - 2,605 - First Party Clinical Services—Revenue - (7,830 ) - (26,083 ) First Party Clinical Services—Cost of revenue - 7,185 - 23,048 Tax effect of adjustments (72,360 ) (5,716 ) (89,134 ) (26,947 ) Adjusted net income $ 29,730 $ 21,081 $ 81,062 $ 54,293 Adjusted net income per share attributable to common stockholders Basic $ 0.05 $ 0.04 $ 0.15 $ 0.11 Diluted $ 0.05 $ 0.04 $ 0.15 $ 0.11 Weighted average shares outstanding Basic 566,454,782 504,212,021 525,877,533 504,062,587 Diluted 599,675,416 510,694,493 554,818,300 510,252,470 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 September 30, Nine months ended September 30, (dollar amounts in thousands) 2021 2020 2021 2020 Net cash provided by operating activities $ 36,905 $ 43,013 $ 96,725 $ 66,789 Less: Purchases of software, equipment, and property (11,864 ) (11,303 ) (25,022 ) (23,815 ) Less: Purchase of intangible assets - - (49 ) (560 ) Free Cash Flow $ 25,041 $ 31,710 $ 71,654 $ 42,414 View source version on businesswire.com: https://www.businesswire.com/news/home/20211110006211/en/Contacts Investor Contact: Brian Denyeau ICR, LLC 646-277-1251 IR@cccis.com Media Contact: Michelle Hellyar Director Public Relations, CCC Intelligent Solutions Inc. mhellyar@cccis.com Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. By accessing this page, you agree to the following Privacy Policy and Terms and Conditions.
CCC Intelligent Solutions Holdings Inc. Announces Third Quarter Fiscal 2021 Financial Results By: CCC Intelligent Solutions Inc. via Business Wire November 10, 2021 at 16:05 PM EST 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. 3rd 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: Fourth Quarter Fiscal 2021 Full Year Fiscal 2021 Revenue $182 million to $184 million $683 million to $685 million Adjusted EBITDA $69 million to $71 million $255 million to $257 million 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. CCC INTELLIGENT SOLUTIONS HOLDINGS INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except share data) September 30, December 31, 2021 2020 (Unaudited) ASSETS CURRENT ASSETS: Cash and cash equivalents $ 160,465 $ 162,118 Accounts receivable—Net of allowances of $3,972 and $4,224 for September 30, 2021 and December 31, 2020, respectively 82,367 74,107 Income taxes receivable 6,915 2,037 Deferred contract costs 13,833 11,917 Other current assets 36,261 31,586 Total current assets 299,841 281,765 SOFTWARE, EQUIPMENT, AND PROPERTY—Net 121,018 101,438 OPERATING LEASE ASSETS 38,774 - INTANGIBLE ASSETS—Net 1,237,950 1,311,917 GOODWILL 1,466,884 1,466,884 DEFERRED FINANCING FEES, REVOLVER—Net 3,053 746 DEFERRED CONTRACT COSTS 18,893 14,389 EQUITY METHOD INVESTMENT 10,228 - OTHER ASSETS 21,584 18,416 TOTAL $ 3,218,225 $ 3,195,555 LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS’ EQUITY CURRENT LIABILITIES: Accounts payable $ 16,083 $ 13,164 Accrued expenses 81,771 52,987 Income taxes payable 7,161 5,129 Current portion of long-term debt 8,000 25,381 Current portion of long-term licensing agreement—Net 2,661 2,540 Operating lease liabilities 8,855 - Deferred revenues 29,384 26,514 Total current liabilities 153,915 125,715 LONG-TERM DEBT: First Lien Term Loan—Net - 1,292,597 Term B Loan—Net 780,218 - Total long-term debt 780,218 1,292,597 DEFERRED INCOME TAXES—Net 255,849 322,348 LONG-TERM LICENSING AGREEMENT—Net 34,320 36,331 OPERATING LEASE LIABILITIES 50,550 - WARRANT LIABILITIES 85,348 - OTHER LIABILITIES 6,808 32,770 Total liabilities 1,367,008 1,809,761 COMMITMENTS AND CONTINGENCIES (Notes 22 and 23) 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; 603,170,380 and 504,274,890 shares issued and outstanding at September 30, 2021 and December 31, 2020, respectively 60 50 Additional paid-in capital 2,525,750 1,501,206 Accumulated deficit (688,483 ) (129,370 ) Accumulated other comprehensive loss (289 ) (271 ) Total stockholders’ equity 1,837,038 1,371,615 TOTAL $ 3,218,225 $ 3,195,555 CCC INTELLIGENT SOLUTIONS HOLDINGS INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME (In thousands, except share and per share data) (Unaudited) For the Three Months Ended For the Nine Months Ended September 30, September 30, 2021 2020 2021 2020 REVENUES $ 176,628 $ 157,754 $ 501,205 $ 467,677 COST OF REVENUES Cost of revenues, exclusive of amortization of acquired technologies 51,273 43,879 128,218 135,674 Amortization of acquired technologies 6,580 6,576 19,740 19,725 Total cost of revenues 57,853 50,455 147,958 155,399 GROSS PROFIT 118,775 107,299 353,247 312,278 OPERATING EXPENSES: Research and development 67,016 26,816 128,894 82,131 Selling and marketing 80,382 17,427 121,350 56,608 General and administrative 142,511 21,893 208,745 66,460 Amortization of intangible assets 18,078 18,078 54,232 54,232 Total operating expenses 307,987 84,214 513,221 259,431 OPERATING (LOSS) INCOME (189,212 ) 23,085 (159,974 ) 52,847 INTEREST EXPENSE (13,878 ) (19,788 ) (51,548 ) (57,588 ) GAIN (LOSS) ON CHANGE IN FAIR VALUE OF INTEREST RATE SWAPS 2,007 3,894 8,373 (16,633 ) CHANGE IN FAIR VALUE OF WARRANT LIABILITIES (26,889 ) - (26,889 ) - LOSS ON EARLY EXINGUISHMENT OF DEBT (15,240 ) - (15,240 ) (8,615 ) OTHER (EXPENSE) INCOME—Net (93 ) 49 1 304 PRETAX (LOSS) INCOME (243,305 ) 7,240 (245,277 ) (29,685 ) INCOME TAX BENEFIT (PROVISION) 53,523 (2,520 ) 54,227 7,191 NET (LOSS) INCOME INCLUDING NON-CONTROLLING INTEREST (189,782 ) 4,720 (191,050 ) (22,494 ) Less: net (loss) income attributable to non-controlling interest - - - - NET (LOSS) INCOME ATTRIBUTABLE TO CCC INTELLIGENT SOLUTIONS HOLDINGS INC. $ (189,782 ) $ 4,720 $ (191,050 ) $ (22,494 ) Net (loss) income per share attributable to common stockholders: Basic $ (0.34 ) $ 0.01 $ (0.36 ) $ (0.04 ) Diluted $ (0.34 ) $ 0.01 $ (0.36 ) $ (0.04 ) Weighted-average shares used in computing net (loss) income per share attributable to common stockholders: Basic 566,454,782 504,212,021 525,877,533 504,062,587 Diluted 566,454,782 510,694,493 525,877,533 504,062,587 COMPREHENSIVE (LOSS) INCOME: Net (loss) income including non-controlling interest (189,782 ) 4,720 (191,050 ) (22,494 ) Other comprehensive income (loss)—Foreign currency translation adjustment 11 83 (18 ) 65 COMPREHENSIVE (LOSS) INCOME INCLUDING NON-CONTROLLING INTEREST (189,771 ) 4,803 (191,068 ) (22,429 ) Less: comprehensive (loss) income attributable to non-controlling interest - - - - COMPREHENSIVE (LOSS) INCOME ATTRIBUTABLE TO CCC INTELLIGENT SOLUTIONS HOLDINGS INC. $ (189,771 ) $ 4,803 $ (191,068 ) $ (22,429 ) CCC INTELLIGENT SOLUTIONS HOLDINGS INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) For the Nine Months Ended September 30, 2021 2020 CASH FLOWS FROM OPERATING ACTIVITIES: Net loss $ (191,050 ) $ (22,494 ) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation and amortization of software, equipment, and property 18,161 13,039 Amortization of intangible assets 73,972 73,957 Deferred income taxes (66,499 ) (18,018 ) Stock-based compensation 235,413 7,471 Amortization of deferred financing fees 3,204 3,475 Amortization of discount on debt 537 553 Change in fair value of interest rate swaps (8,373 ) 16,633 Change in fair value of warrant liabilities 26,889 - Loss on early extinguishment of debt 15,240 8,615 Non-cash lease expense 5,029 - Other 54 42 Changes in: Accounts receivable—Net (8,332 ) (12,644 ) Deferred contract costs (1,916 ) (507 ) Other current assets (4,673 ) (755 ) Deferred contract costs—Non-current (4,504 ) (1,246 ) Other assets (3,221 ) (10,795 ) Operating lease assets 5,133 - Income taxes (2,846 ) 11,597 Accounts payable 1,399 2,080 Accrued expenses 17,051 (5,183 ) Operating lease liabilities (5,935 ) - Deferred revenues 2,861 580 Extinguishment of interest rate swap liability (9,987 ) - Other liabilities (882 ) 389 Net cash provided by operating activities 96,725 66,789 CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of software, equipment, and property (25,022 ) (23,815 ) Purchase of equity method investment (10,228 ) - Purchase of intangible asset (49 ) (560 ) Net cash used in investing activities (35,299 ) (24,375 ) CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from issuance of non-controlling interest in subsidiary - 14,179 Deemed distribution to CCCIS option holders (9,006 ) - Net proceeds from equity infusion from the Business Combination 763,300 - Principal payments on long-term debt (1,336,154 ) (385,385 ) Proceeds from issuance of long-term debt, net of fees paid to lender 789,927 369,792 Proceeds from borrowings on revolving lines of credit - 65,000 Repayment of borrowings on revolving lines of credit - (65,000 ) Proceeds from issuance of common stock 1,007 - Payment of fees associated with early extinguishment of long-term debt (3,320 ) (29 ) Proceeds from exercise of stock options 503 618 Repurchases of common stock - (123 ) Dividends to CCCIS stockholders (269,174 ) - Net cash used in financing activities (62,917 ) (948 ) NET EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS (162 ) 108 NET CHANGE IN CASH AND CASH EQUIVALENTS (1,653 ) 41,574 CASH AND CASH EQUIVALENTS: Beginning of period 162,118 93,201 End of period $ 160,465 $ 134,775 NONCASH INVESTING AND FINANCING ACTIVITIES: Unpaid liability related to software, equipment, and property $ 4,054 $ - Leasehold improvements acquired by tenant improvement allowance $ 10,556 $ - SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: Cash paid for interest, excluding extinguishment of interest rate swap liability $ 47,312 $ 52,217 Cash received (paid) for income taxes—Net $ (15,119 ) $ 770 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 September 30, Nine months ended September 30, (amounts in thousands, except percentages) 2021 2020 2021 2020 Gross Profit $ 118,775 $ 107,299 $ 353,247 $ 312,278 First Party Clinical Services—Gross Profit - (645 ) - (3,035 ) Amortization of acquired technologies 6,580 6,576 19,740 19,725 Business combination transaction costs 905 - 905 - Stock-based compensation 12,169 141 12,563 380 Adjusted Gross Profit $ 138,429 $ 113,371 $ 386,455 $ 329,348 Gross Profit Margin 67 % 68 % 70 % 67 % Adjusted Gross Profit Margin 78 % 76 % 77 % 75 % CCC INTELLIGENT SOLUTIONS HOLDINGS INC. AND SUBSIDIARIES RECONCILIATION OF GAAP OPERATING (LOSS) INCOME TO ADJUSTED OPERATING INCOME (In thousands) (Unaudited) Three months ended September 30, Nine months ended September 30, (dollar amounts in thousands) 2021 2020 2021 2020 Net operating (loss) income $ (189,212 ) $ 23,085 $ (159,974 ) $ 52,847 Stock-based compensation expense 219,876 1,869 235,413 7,471 Lease abandonment 438 - 2,256 - Lease overlap costs 924 - 2,773 - Net costs related to divestiture 338 - 2,605 - Business combination transaction costs 5,516 93 10,471 93 Amortization of intangible assets 18,078 18,078 54,232 54,232 Amortization of acquired technologies—Cost of revenue 6,580 6,576 19,740 19,725 First Party Clinical Services—Revenue - (7,830 ) - (26,083 ) First Party Clinical Services—Cost of revenue - 7,185 - 23,048 Adjusted operating income $ 62,538 $ 49,056 $ 167,516 $ 131,333 CCC INTELLIGENT SOLUTIONS HOLDINGS INC. AND SUBSIDIARIES RECONCILIATION OF NET (LOSS) INCOME TO ADJUSTED EBITDA (In thousands) (Unaudited) Three months ended September 30, Nine months ended September 30, (dollar amounts in thousands) 2021 2020 2021 2020 Net (loss) income $ (189,782 ) $ 4,720 $ (191,050 ) $ (22,494 ) Interest expense 13,878 19,788 51,548 57,588 Income tax provision (benefit) (53,523 ) 2,520 (54,227 ) (7,191 ) Amortization of intangible assets 18,078 18,078 54,232 54,232 Amortization of acquired technologies—Cost of revenue 6,580 6,576 19,740 19,725 Depreciation and amortization related to software, equipment and property 7,694 4,496 18,161 13,039 EBITDA (197,075 ) 56,178 (101,596 ) 114,899 (Gain) loss on change in fair value of interest rate swaps (2,007 ) (3,894 ) (8,373 ) 16,633 Change in fair value of warrant liabilities 26,889 - 26,889 - Stock-based compensation expense 219,876 1,869 235,413 7,471 Loss on early extinguishment of debt 15,240 - 15,240 8,615 Business combination transaction costs 5,516 93 10,471 93 Lease abandonment 438 - 2,256 - Lease overlap costs 924 - 2,773 - Net costs related to divestiture 338 - 2,605 - First Party Clinical Services—Revenue - (7,830 ) - (26,083 ) First Party Clinical Services—Cost of revenue - 7,185 - 23,048 Adjusted EBITDA $ 70,139 $ 53,601 $ 185,678 $ 144,676 CCC INTELLIGENT SOLUTIONS HOLDINGS INC. AND SUBSIDIARIES RECONCILIATION OF GAAP NET (LOSS) INCOME TO ADJUSTED NET INCOME (In thousands) (Unaudited) Three months ended September 30, Nine months ended September 30, (dollar amounts in thousands) 2021 2020 2021 2020 Net (loss) income $ (189,782 ) $ 4,720 $ (191,050 ) $ (22,494 ) Amortization of intangible assets 18,078 18,078 54,232 54,232 Amortization of acquired technologies—Cost of revenue 6,580 6,576 19,740 19,725 (Gain) loss on change in fair value of interest rate swaps (2,007 ) (3,894 ) (8,373 ) 16,633 Change in fair value of warrant liabilities 26,889 - 26,889 - Stock-based compensation expense 219,876 1,869 235,413 7,471 Loss on early extinguishment of debt 15,240 - 15,240 8,615 Business combination transaction costs 5,516 93 10,471 93 Lease abandonment 438 - 2,256 - Lease overlap costs 924 - 2,773 - Net costs related to divestiture 338 - 2,605 - First Party Clinical Services—Revenue - (7,830 ) - (26,083 ) First Party Clinical Services—Cost of revenue - 7,185 - 23,048 Tax effect of adjustments (72,360 ) (5,716 ) (89,134 ) (26,947 ) Adjusted net income $ 29,730 $ 21,081 $ 81,062 $ 54,293 Adjusted net income per share attributable to common stockholders Basic $ 0.05 $ 0.04 $ 0.15 $ 0.11 Diluted $ 0.05 $ 0.04 $ 0.15 $ 0.11 Weighted average shares outstanding Basic 566,454,782 504,212,021 525,877,533 504,062,587 Diluted 599,675,416 510,694,493 554,818,300 510,252,470 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 September 30, Nine months ended September 30, (dollar amounts in thousands) 2021 2020 2021 2020 Net cash provided by operating activities $ 36,905 $ 43,013 $ 96,725 $ 66,789 Less: Purchases of software, equipment, and property (11,864 ) (11,303 ) (25,022 ) (23,815 ) Less: Purchase of intangible assets - - (49 ) (560 ) Free Cash Flow $ 25,041 $ 31,710 $ 71,654 $ 42,414 View source version on businesswire.com: https://www.businesswire.com/news/home/20211110006211/en/Contacts Investor Contact: Brian Denyeau ICR, LLC 646-277-1251 IR@cccis.com Media Contact: Michelle Hellyar Director Public Relations, CCC Intelligent Solutions Inc. mhellyar@cccis.com
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. 3rd 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: Fourth Quarter Fiscal 2021 Full Year Fiscal 2021 Revenue $182 million to $184 million $683 million to $685 million Adjusted EBITDA $69 million to $71 million $255 million to $257 million 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. CCC INTELLIGENT SOLUTIONS HOLDINGS INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except share data) September 30, December 31, 2021 2020 (Unaudited) ASSETS CURRENT ASSETS: Cash and cash equivalents $ 160,465 $ 162,118 Accounts receivable—Net of allowances of $3,972 and $4,224 for September 30, 2021 and December 31, 2020, respectively 82,367 74,107 Income taxes receivable 6,915 2,037 Deferred contract costs 13,833 11,917 Other current assets 36,261 31,586 Total current assets 299,841 281,765 SOFTWARE, EQUIPMENT, AND PROPERTY—Net 121,018 101,438 OPERATING LEASE ASSETS 38,774 - INTANGIBLE ASSETS—Net 1,237,950 1,311,917 GOODWILL 1,466,884 1,466,884 DEFERRED FINANCING FEES, REVOLVER—Net 3,053 746 DEFERRED CONTRACT COSTS 18,893 14,389 EQUITY METHOD INVESTMENT 10,228 - OTHER ASSETS 21,584 18,416 TOTAL $ 3,218,225 $ 3,195,555 LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS’ EQUITY CURRENT LIABILITIES: Accounts payable $ 16,083 $ 13,164 Accrued expenses 81,771 52,987 Income taxes payable 7,161 5,129 Current portion of long-term debt 8,000 25,381 Current portion of long-term licensing agreement—Net 2,661 2,540 Operating lease liabilities 8,855 - Deferred revenues 29,384 26,514 Total current liabilities 153,915 125,715 LONG-TERM DEBT: First Lien Term Loan—Net - 1,292,597 Term B Loan—Net 780,218 - Total long-term debt 780,218 1,292,597 DEFERRED INCOME TAXES—Net 255,849 322,348 LONG-TERM LICENSING AGREEMENT—Net 34,320 36,331 OPERATING LEASE LIABILITIES 50,550 - WARRANT LIABILITIES 85,348 - OTHER LIABILITIES 6,808 32,770 Total liabilities 1,367,008 1,809,761 COMMITMENTS AND CONTINGENCIES (Notes 22 and 23) 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; 603,170,380 and 504,274,890 shares issued and outstanding at September 30, 2021 and December 31, 2020, respectively 60 50 Additional paid-in capital 2,525,750 1,501,206 Accumulated deficit (688,483 ) (129,370 ) Accumulated other comprehensive loss (289 ) (271 ) Total stockholders’ equity 1,837,038 1,371,615 TOTAL $ 3,218,225 $ 3,195,555 CCC INTELLIGENT SOLUTIONS HOLDINGS INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME (In thousands, except share and per share data) (Unaudited) For the Three Months Ended For the Nine Months Ended September 30, September 30, 2021 2020 2021 2020 REVENUES $ 176,628 $ 157,754 $ 501,205 $ 467,677 COST OF REVENUES Cost of revenues, exclusive of amortization of acquired technologies 51,273 43,879 128,218 135,674 Amortization of acquired technologies 6,580 6,576 19,740 19,725 Total cost of revenues 57,853 50,455 147,958 155,399 GROSS PROFIT 118,775 107,299 353,247 312,278 OPERATING EXPENSES: Research and development 67,016 26,816 128,894 82,131 Selling and marketing 80,382 17,427 121,350 56,608 General and administrative 142,511 21,893 208,745 66,460 Amortization of intangible assets 18,078 18,078 54,232 54,232 Total operating expenses 307,987 84,214 513,221 259,431 OPERATING (LOSS) INCOME (189,212 ) 23,085 (159,974 ) 52,847 INTEREST EXPENSE (13,878 ) (19,788 ) (51,548 ) (57,588 ) GAIN (LOSS) ON CHANGE IN FAIR VALUE OF INTEREST RATE SWAPS 2,007 3,894 8,373 (16,633 ) CHANGE IN FAIR VALUE OF WARRANT LIABILITIES (26,889 ) - (26,889 ) - LOSS ON EARLY EXINGUISHMENT OF DEBT (15,240 ) - (15,240 ) (8,615 ) OTHER (EXPENSE) INCOME—Net (93 ) 49 1 304 PRETAX (LOSS) INCOME (243,305 ) 7,240 (245,277 ) (29,685 ) INCOME TAX BENEFIT (PROVISION) 53,523 (2,520 ) 54,227 7,191 NET (LOSS) INCOME INCLUDING NON-CONTROLLING INTEREST (189,782 ) 4,720 (191,050 ) (22,494 ) Less: net (loss) income attributable to non-controlling interest - - - - NET (LOSS) INCOME ATTRIBUTABLE TO CCC INTELLIGENT SOLUTIONS HOLDINGS INC. $ (189,782 ) $ 4,720 $ (191,050 ) $ (22,494 ) Net (loss) income per share attributable to common stockholders: Basic $ (0.34 ) $ 0.01 $ (0.36 ) $ (0.04 ) Diluted $ (0.34 ) $ 0.01 $ (0.36 ) $ (0.04 ) Weighted-average shares used in computing net (loss) income per share attributable to common stockholders: Basic 566,454,782 504,212,021 525,877,533 504,062,587 Diluted 566,454,782 510,694,493 525,877,533 504,062,587 COMPREHENSIVE (LOSS) INCOME: Net (loss) income including non-controlling interest (189,782 ) 4,720 (191,050 ) (22,494 ) Other comprehensive income (loss)—Foreign currency translation adjustment 11 83 (18 ) 65 COMPREHENSIVE (LOSS) INCOME INCLUDING NON-CONTROLLING INTEREST (189,771 ) 4,803 (191,068 ) (22,429 ) Less: comprehensive (loss) income attributable to non-controlling interest - - - - COMPREHENSIVE (LOSS) INCOME ATTRIBUTABLE TO CCC INTELLIGENT SOLUTIONS HOLDINGS INC. $ (189,771 ) $ 4,803 $ (191,068 ) $ (22,429 ) CCC INTELLIGENT SOLUTIONS HOLDINGS INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) For the Nine Months Ended September 30, 2021 2020 CASH FLOWS FROM OPERATING ACTIVITIES: Net loss $ (191,050 ) $ (22,494 ) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation and amortization of software, equipment, and property 18,161 13,039 Amortization of intangible assets 73,972 73,957 Deferred income taxes (66,499 ) (18,018 ) Stock-based compensation 235,413 7,471 Amortization of deferred financing fees 3,204 3,475 Amortization of discount on debt 537 553 Change in fair value of interest rate swaps (8,373 ) 16,633 Change in fair value of warrant liabilities 26,889 - Loss on early extinguishment of debt 15,240 8,615 Non-cash lease expense 5,029 - Other 54 42 Changes in: Accounts receivable—Net (8,332 ) (12,644 ) Deferred contract costs (1,916 ) (507 ) Other current assets (4,673 ) (755 ) Deferred contract costs—Non-current (4,504 ) (1,246 ) Other assets (3,221 ) (10,795 ) Operating lease assets 5,133 - Income taxes (2,846 ) 11,597 Accounts payable 1,399 2,080 Accrued expenses 17,051 (5,183 ) Operating lease liabilities (5,935 ) - Deferred revenues 2,861 580 Extinguishment of interest rate swap liability (9,987 ) - Other liabilities (882 ) 389 Net cash provided by operating activities 96,725 66,789 CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of software, equipment, and property (25,022 ) (23,815 ) Purchase of equity method investment (10,228 ) - Purchase of intangible asset (49 ) (560 ) Net cash used in investing activities (35,299 ) (24,375 ) CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from issuance of non-controlling interest in subsidiary - 14,179 Deemed distribution to CCCIS option holders (9,006 ) - Net proceeds from equity infusion from the Business Combination 763,300 - Principal payments on long-term debt (1,336,154 ) (385,385 ) Proceeds from issuance of long-term debt, net of fees paid to lender 789,927 369,792 Proceeds from borrowings on revolving lines of credit - 65,000 Repayment of borrowings on revolving lines of credit - (65,000 ) Proceeds from issuance of common stock 1,007 - Payment of fees associated with early extinguishment of long-term debt (3,320 ) (29 ) Proceeds from exercise of stock options 503 618 Repurchases of common stock - (123 ) Dividends to CCCIS stockholders (269,174 ) - Net cash used in financing activities (62,917 ) (948 ) NET EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS (162 ) 108 NET CHANGE IN CASH AND CASH EQUIVALENTS (1,653 ) 41,574 CASH AND CASH EQUIVALENTS: Beginning of period 162,118 93,201 End of period $ 160,465 $ 134,775 NONCASH INVESTING AND FINANCING ACTIVITIES: Unpaid liability related to software, equipment, and property $ 4,054 $ - Leasehold improvements acquired by tenant improvement allowance $ 10,556 $ - SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: Cash paid for interest, excluding extinguishment of interest rate swap liability $ 47,312 $ 52,217 Cash received (paid) for income taxes—Net $ (15,119 ) $ 770 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 September 30, Nine months ended September 30, (amounts in thousands, except percentages) 2021 2020 2021 2020 Gross Profit $ 118,775 $ 107,299 $ 353,247 $ 312,278 First Party Clinical Services—Gross Profit - (645 ) - (3,035 ) Amortization of acquired technologies 6,580 6,576 19,740 19,725 Business combination transaction costs 905 - 905 - Stock-based compensation 12,169 141 12,563 380 Adjusted Gross Profit $ 138,429 $ 113,371 $ 386,455 $ 329,348 Gross Profit Margin 67 % 68 % 70 % 67 % Adjusted Gross Profit Margin 78 % 76 % 77 % 75 % CCC INTELLIGENT SOLUTIONS HOLDINGS INC. AND SUBSIDIARIES RECONCILIATION OF GAAP OPERATING (LOSS) INCOME TO ADJUSTED OPERATING INCOME (In thousands) (Unaudited) Three months ended September 30, Nine months ended September 30, (dollar amounts in thousands) 2021 2020 2021 2020 Net operating (loss) income $ (189,212 ) $ 23,085 $ (159,974 ) $ 52,847 Stock-based compensation expense 219,876 1,869 235,413 7,471 Lease abandonment 438 - 2,256 - Lease overlap costs 924 - 2,773 - Net costs related to divestiture 338 - 2,605 - Business combination transaction costs 5,516 93 10,471 93 Amortization of intangible assets 18,078 18,078 54,232 54,232 Amortization of acquired technologies—Cost of revenue 6,580 6,576 19,740 19,725 First Party Clinical Services—Revenue - (7,830 ) - (26,083 ) First Party Clinical Services—Cost of revenue - 7,185 - 23,048 Adjusted operating income $ 62,538 $ 49,056 $ 167,516 $ 131,333 CCC INTELLIGENT SOLUTIONS HOLDINGS INC. AND SUBSIDIARIES RECONCILIATION OF NET (LOSS) INCOME TO ADJUSTED EBITDA (In thousands) (Unaudited) Three months ended September 30, Nine months ended September 30, (dollar amounts in thousands) 2021 2020 2021 2020 Net (loss) income $ (189,782 ) $ 4,720 $ (191,050 ) $ (22,494 ) Interest expense 13,878 19,788 51,548 57,588 Income tax provision (benefit) (53,523 ) 2,520 (54,227 ) (7,191 ) Amortization of intangible assets 18,078 18,078 54,232 54,232 Amortization of acquired technologies—Cost of revenue 6,580 6,576 19,740 19,725 Depreciation and amortization related to software, equipment and property 7,694 4,496 18,161 13,039 EBITDA (197,075 ) 56,178 (101,596 ) 114,899 (Gain) loss on change in fair value of interest rate swaps (2,007 ) (3,894 ) (8,373 ) 16,633 Change in fair value of warrant liabilities 26,889 - 26,889 - Stock-based compensation expense 219,876 1,869 235,413 7,471 Loss on early extinguishment of debt 15,240 - 15,240 8,615 Business combination transaction costs 5,516 93 10,471 93 Lease abandonment 438 - 2,256 - Lease overlap costs 924 - 2,773 - Net costs related to divestiture 338 - 2,605 - First Party Clinical Services—Revenue - (7,830 ) - (26,083 ) First Party Clinical Services—Cost of revenue - 7,185 - 23,048 Adjusted EBITDA $ 70,139 $ 53,601 $ 185,678 $ 144,676 CCC INTELLIGENT SOLUTIONS HOLDINGS INC. AND SUBSIDIARIES RECONCILIATION OF GAAP NET (LOSS) INCOME TO ADJUSTED NET INCOME (In thousands) (Unaudited) Three months ended September 30, Nine months ended September 30, (dollar amounts in thousands) 2021 2020 2021 2020 Net (loss) income $ (189,782 ) $ 4,720 $ (191,050 ) $ (22,494 ) Amortization of intangible assets 18,078 18,078 54,232 54,232 Amortization of acquired technologies—Cost of revenue 6,580 6,576 19,740 19,725 (Gain) loss on change in fair value of interest rate swaps (2,007 ) (3,894 ) (8,373 ) 16,633 Change in fair value of warrant liabilities 26,889 - 26,889 - Stock-based compensation expense 219,876 1,869 235,413 7,471 Loss on early extinguishment of debt 15,240 - 15,240 8,615 Business combination transaction costs 5,516 93 10,471 93 Lease abandonment 438 - 2,256 - Lease overlap costs 924 - 2,773 - Net costs related to divestiture 338 - 2,605 - First Party Clinical Services—Revenue - (7,830 ) - (26,083 ) First Party Clinical Services—Cost of revenue - 7,185 - 23,048 Tax effect of adjustments (72,360 ) (5,716 ) (89,134 ) (26,947 ) Adjusted net income $ 29,730 $ 21,081 $ 81,062 $ 54,293 Adjusted net income per share attributable to common stockholders Basic $ 0.05 $ 0.04 $ 0.15 $ 0.11 Diluted $ 0.05 $ 0.04 $ 0.15 $ 0.11 Weighted average shares outstanding Basic 566,454,782 504,212,021 525,877,533 504,062,587 Diluted 599,675,416 510,694,493 554,818,300 510,252,470 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 September 30, Nine months ended September 30, (dollar amounts in thousands) 2021 2020 2021 2020 Net cash provided by operating activities $ 36,905 $ 43,013 $ 96,725 $ 66,789 Less: Purchases of software, equipment, and property (11,864 ) (11,303 ) (25,022 ) (23,815 ) Less: Purchase of intangible assets - - (49 ) (560 ) Free Cash Flow $ 25,041 $ 31,710 $ 71,654 $ 42,414 View source version on businesswire.com: https://www.businesswire.com/news/home/20211110006211/en/
Investor Contact: Brian Denyeau ICR, LLC 646-277-1251 IR@cccis.com Media Contact: Michelle Hellyar Director Public Relations, CCC Intelligent Solutions Inc. mhellyar@cccis.com