Core Insights - Repairify and CCC Intelligent Solutions Inc. have announced a new integration between Repairify's ADAS-focused platform, adasThink, and CCC ONE®, aimed at enhancing repair precision and efficiency for collision repair shops [1][3]. Integration Details - The integration allows users of the CCC® Diagnostics Workflow product to access adasThink's ADAS identification capabilities directly within the CCC platform, facilitating easier identification of ADAS systems and recalibration requirements [2][4]. - This collaboration is designed to streamline the recommendation process by embedding adasThink recommendations into estimates, making PDF reports easily accessible [3][4]. Industry Context - The partnership comes at a crucial time as collision repair shops face increasing demands for accurate and efficient ADAS services, reflecting Repairify's commitment to innovative solutions in the evolving repair industry [3]. - The full integration functionality is set to be available starting November 18, 2024, which is expected to save time and support consistent quality repairs [4].

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Financial Data and Key Metrics Changes - In Q3 2024, total revenue was $238 million, an 8% increase year-over-year, slightly above guidance [8][41] - Adjusted EBITDA for the quarter was $102 million, up 9% year-over-year, with an adjusted EBITDA margin of 43% [9][47] - Software gross dollar retention (GDR) was 99%, consistent with previous quarters, indicating strong customer retention [44] - Software net dollar retention (NDR) was 106%, down from 107% in Q2 2024 [45] Business Line Data and Key Metrics Changes - Approximately five percentage points of Q3 growth came from cross-sell, upsell, and adoption of solutions across the client base, including repair shop upgrades [42] - Emerging solutions contributed about 1 point of growth in Q3, with a run rate of approximately 3% of total revenue [43] Market Data and Key Metrics Changes - Claim volumes were down approximately 6% year-over-year, impacting revenue growth [53][79] - The company noted a slight increase in total losses, with a shift from 79% repairable vehicles to 76% [72] Company Strategy and Development Direction - The company is focused on the "Intelligent Experience" (IX) approach, leveraging AI and event-driven architecture to enhance operational performance and customer experience [16][38] - Continued investment in R&D, exceeding $150 million annually, is aimed at supporting the IX transition and enhancing technology capabilities [19][38] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to deliver long-term targets of 7% to 10% organic revenue growth and mid-40s adjusted EBITDA margin [55] - The company anticipates that the current softness in claim volume is not a permanent trend and expects recovery over time [94] Other Important Information - The company completed its transition to the public cloud and streamlined customer-facing organizations to enhance client engagement [25][96] - Free cash flow in Q3 was $49 million, with a trailing 12-month free cash flow margin of 22% [48] Q&A Session Summary Question: What needs to happen to improve the adoption of newer products? - Management indicated that substantial energy is required from customers to pilot and implement new solutions, and progress is being made [56] Question: Is there a slowdown in new business dynamics? - Management acknowledged some deceleration but emphasized that the full-year guidance remains consistent with previous expectations [78] Question: What is the impact of hurricanes on claims? - Management noted that while hurricanes can affect auto claims, the volumes seen to date have not been material [102] Question: What is the outlook for share-based compensation (SBC) as a percentage of revenue? - SBC is expected to be in the range of 12% to 14% of revenue for 2025, following a modification that impacted the current percentage [109]

Core Viewpoint - CCC Intelligent Solutions Holdings Inc. reported quarterly earnings of $0.10 per share, exceeding the Zacks Consensus Estimate of $0.09 per share, marking an earnings surprise of 11.11% [1][2] Financial Performance - The company posted revenues of $238.48 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 0.51% and showing an increase from $221.15 million year-over-year [2] - Over the last four quarters, CCC Intelligent Solutions has exceeded consensus EPS estimates two times and topped consensus revenue estimates four times [2] Stock Performance - CCC Intelligent Solutions shares have declined approximately 3.4% since the beginning of the year, contrasting with the S&P 500's gain of 21.8% [3] - The current consensus EPS estimate for the upcoming quarter is $0.10 on revenues of $246.16 million, and for the current fiscal year, it is $0.36 on revenues of $943.3 million [7] Industry Outlook - The Insurance - Property and Casualty industry, to which CCC Intelligent Solutions belongs, is currently ranked in the bottom 44% of over 250 Zacks industries, indicating potential challenges ahead [8] - The performance of CCC Intelligent Solutions may be influenced by the overall outlook of the industry [8]

Financial Performance - Revenues for Q3 2024 reached $238.481 million, a 7.4% increase from $221.147 million in Q3 2023[12] - Gross profit for Q3 2024 was $183.420 million, compared to $163.121 million in Q3 2023, reflecting a 12.4% increase[12] - Operating income for Q3 2024 improved to $28.688 million, up from $16.571 million in Q3 2023[12] - Net income attributable to common stockholders for Q3 2024 was $2.812 million, a significant recovery from a loss of $22.212 million in Q3 2023[12] - Comprehensive income for Q3 2024 was $2.929 million, recovering from a loss of $22.235 million in Q3 2023[12] - Total revenues for the nine months ended September 30, 2024, reached $698,336,000, representing an increase of 9.5% from $637,777,000 in the same period of 2023[77] Assets and Liabilities - Total current assets increased to $467,772,000 as of September 30, 2024, up from $349,999,000 at December 31, 2023, representing a growth of approximately 33.7%[11] - Total liabilities decreased to $1,154,163,000 from $1,252,179,000, reflecting a reduction of approximately 7.8%[11] - Current liabilities totaled $146,834,000, down from $152,907,000, indicating a decrease of approximately 4%[11] - Total assets as of September 30, 2024, were $6,208 million, with total liabilities of $51,601 million[32] Cash Flow and Investments - The cash provided by operating activities for the nine months ended September 30, 2023, was $163,138,000, compared to $170,241,000 in 2024[20] - The company reported a net cash used in investing activities of $45,073,000 for the nine months ended September 30, 2023[20] - Cash and cash equivalents at the end of the period were $286,303,000 for September 30, 2024, down from $448,733,000 in 2023[20] Revenue Breakdown - Software subscriptions revenue for the three months ended September 30, 2024, was $229.4 million, up 8.0% from $212.5 million in the prior year[25] - Revenues from the United States for the three months ended September 30, 2024, were $236,761,000, an increase of 7.2% from $219,573,000 in the same period of 2023[77] - Revenue recognized from deferred revenue for the three months ended September 30, 2024, was $42.8 million, compared to $37.1 million for the same period in 2023, reflecting a 18.9% increase[25] Expenses - The company reported a total operating expense of $154.732 million in Q3 2024, up from $146.550 million in Q3 2023[12] - Research and development expenses increased to $49.525 million in Q3 2024, compared to $43.532 million in Q3 2023, marking a 13.8% rise[12] - Interest expense for Q3 2024 was $16.379 million, compared to $14.633 million in Q3 2023, indicating an increase in financing costs[12] Stock and Equity - As of September 30, 2024, the total outstanding shares increased to 634,633,179, with a total stockholders' equity of $2,043,478[18] - The weighted-average shares used in computing net income per share were 615,857,231 for Q3 2024, down from 624,976,557 in Q3 2023[12] - The Company granted 10,371,334 restricted stock units (RSUs) during the nine months ended September 30, 2024, with a weighted average value of $11.85 per share[61] Intangible Assets and Goodwill - Goodwill remained stable at $1,417,724,000, unchanged from December 31, 2023[11] - The company reported a net increase in intangible assets, which decreased to $952,392,000 from $1,015,046,000, a decline of about 6.2%[11] - The company did not recognize any impairment charges related to goodwill during the three and nine months ended September 30, 2024[45] Other Financial Metrics - The company incurred an impairment of goodwill and intangible assets amounting to $82,742,000 in 2023[20] - The company recognized an income tax provision of $8.9 million for the three months ended September 30, 2024, compared to $1.8 million for the same period in 2023[34] - The company recorded impairment charges of $5.3 million related to intangible assets during the nine months ended September 30, 2023[46] Market Position - The Company is a leading SaaS platform for the property and casualty insurance economy, with operations primarily in the US and China[21]

Revenue and Profit Performance - Total revenue for Q3 2024 was $238.5 million, an 8% increase from $221.1 million in Q3 2023[2] - Total revenue for the three months ended September 30, 2024, was $238.5 million, compared to $221.1 million in the same period in 2023, representing a 7.8% increase[14] - Adjusted Gross Profit for the three months ended September 30, 2024, was $185.93 million, with a margin of 78%, up from $172.12 million and 78% in 2023[16] - Adjusted Gross Profit for the nine months ended September 30, 2024, was $545.02 million, with a margin of 78%, up from $490.73 million and 77% in 2023[16] - Gross profit for the three months ended September 30, 2024, was $183.4 million, up from $163.1 million in the same period in 2023, reflecting a 12.4% increase[14] - Gross Profit Margin for the three months ended September 30, 2024, was 77%, up from 74% in 2023[16] - Adjusted Operating Income for the three months ended September 30, 2024, was $91.20 million, compared to $82.69 million in 2023[18] - Operating income for the three months ended September 30, 2024, was $28.7 million, compared to $16.6 million in the same period in 2023, a 72.9% increase[14] - Net income attributable to CCC Intelligent Solutions Holdings Inc. common stockholders for the three months ended September 30, 2024, was $2.8 million, compared to a net loss of $22.2 million in the same period in 2023[14] - Net income for September 30, 2024, was $24.98 million, compared to a net loss of $116.36 million in 2023[15] - Net income for Q3 2024 was $4.13 million, a significant improvement from a net loss of $21.20 million in Q3 2023[19] - Comprehensive income attributable to CCC Intelligent Solutions Holdings Inc. common stockholders for the three months ended September 30, 2024, was $2.9 million, compared to a comprehensive loss of $22.2 million in the same period in 2023[14] Adjusted EBITDA and Net Income - Adjusted EBITDA for Q3 2024 was $101.6 million, a 9% increase from $92.9 million in Q3 2023[2] - Adjusted EBITDA for Q3 2024 was $101.55 million, up from $92.93 million in Q3 2023, with an EBITDA margin of 43% compared to 42% in the same period last year[19] - Adjusted net income for Q3 2024 was $62.7 million, up from $57.2 million in Q3 2023[2] - Adjusted net income for Q3 2024 was $62.58 million, compared to $57.16 million in Q3 2023, with adjusted net income per share (diluted) of $0.10, up from $0.09[20] Financial Guidance - Q4 2024 revenue guidance is projected between $242.5 million and $246.5 million[7] - Full-year 2024 revenue guidance is estimated between $941.0 million and $945.0 million[7] - Adjusted EBITDA for full-year 2024 is expected to be between $394.0 million and $396.0 million[7] Cash Flow and Liquidity - Net cash provided by operating activities for September 30, 2024, was $170.24 million, up from $163.14 million in 2023[15] - Free cash flow for Q3 2024 was $49.38 million, an increase from $46.40 million in Q3 2023[21] - Cash and cash equivalents increased to $286.3 million as of September 30, 2024, from $195.6 million as of December 31, 2023, a 46.4% increase[13] - Cash and cash equivalents at the end of September 30, 2024, were $286.30 million, down from $448.73 million in 2023[15] Balance Sheet and Equity - Total assets as of September 30, 2024, were $3.11 billion, up from $3.05 billion as of December 31, 2023[13] - Total current liabilities decreased to $146.8 million as of September 30, 2024, from $152.9 million as of December 31, 2023[13] - Total stockholders' equity increased to $1.94 billion as of September 30, 2024, from $1.78 billion as of December 31, 2023[13] Expenses and Costs - Research and development expenses for the three months ended September 30, 2024, were $49.5 million, up from $43.5 million in the same period in 2023, a 13.8% increase[14] - Adjusted Operating Expenses for the three months ended September 30, 2024, were $94.73 million, up from $89.43 million in 2023[17] - Stock-based compensation expense for the three months ended September 30, 2024, was $42.64 million, compared to $40.21 million in 2023[18] - Stock-based compensation expense for Q3 2024 was $42.64 million, up from $40.21 million in Q3 2023[20] - Interest expense for Q3 2024 was $16.38 million, compared to $14.63 million in Q3 2023[19] - Amortization of intangible assets for the three months ended September 30, 2024, was $17.94 million, consistent with 2023[17] - Amortization of intangible assets for Q3 2024 was $17.94 million, consistent with Q3 2023[19] - Litigation costs for Q3 2024 were $1.61 million, slightly higher than $1.40 million in Q3 2023[19] - Purchases of software, equipment, and property for Q3 2024 were $13.85 million, down from $14.10 million in Q3 2023[21] Product and Market Developments - CCC launched CCC® Intelligent Reinspection, leveraging AI to streamline auto insurer workflows[5] - CCC® Payroll was introduced to simplify payroll management for collision repair shops[5] - Over 2,000 repair facilities adopted CCC® Build Sheets within three months of its launch[6] Share Information - Weighted average diluted shares outstanding for Q3 2024 were 642.40 million, down from 657.57 million in Q3 2023[20]

Group 1 - Arch Capital Group (ACGL) has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while CCC Intelligent Solutions Holdings Inc. (CCCS) has a Zacks Rank of 3 (Hold) [3] - Value investors utilize various metrics to identify undervalued companies, including P/E ratio, P/S ratio, earnings yield, and cash flow per share [4] - ACGL's forward P/E ratio is 11.63, significantly lower than CCCS's forward P/E of 29.85, suggesting ACGL is more attractively priced [5] Group 2 - ACGL has a PEG ratio of 1.90, while CCCS has a higher PEG ratio of 2.74, indicating that ACGL may offer better value relative to its expected earnings growth [5] - ACGL's P/B ratio is 1.98, compared to CCCS's P/B of 3.57, further supporting the argument that ACGL is the superior value option [6] - Based on the valuation metrics, ACGL has a Value grade of B, while CCCS has a Value grade of F, highlighting ACGL's stronger position in terms of value [6]

Core Viewpoint - CCC Intelligent Solutions (CCCS) has been downgraded from a buy to a hold rating due to concerns over the growth of emerging solutions and potential consensus cuts impacting valuation [2][5][7] Financial Performance - CCCS reported a 10% year-over-year revenue growth in Q2 2024, reaching $232.6 million, surpassing the street's estimate of $230.3 million [3] - Subscription revenue also grew by approximately 10% year-over-year to $223 million, with an EBITDA margin of 41.2%, exceeding the street's estimate of 39.5% [3] - The first half of 2024 showed a year-over-year growth of around 10%, with adjusted EBITDA annualized at $360 million, above the expectation of $346 million [3] Operating Metrics - Software gross dollar retention (GDR) remained at 99%, and net dollar retention (NDR) was sustained at 107%, indicating strong cross-selling opportunities [3] - Over 600 new repair shops were added in the first half of 2024, bringing the total to more than 30,000 on the CCCS platform [3] Emerging Solutions - Management has reduced expectations for the growth contribution from emerging solutions, leading to a cut in FY24 revenue guidance to a midpoint of 7.2% [5] - The prolonged pilot periods for customers evaluating these solutions have resulted in slower revenue conversion, impacting growth expectations [5] - The adoption of Estimate-STP is increasing, with over 30 insurers using it, accounting for 3% of total claims processed through the CCCS platform [4] Valuation and Market Sentiment - CCCS now trades at 16.6x forward EBITDA, near an all-time low, but could decline further if growth dips to high single-digit levels [5] - The market sentiment is at a crossroads, with concerns that emerging solutions may not meet growth expectations, potentially leading to further consensus cuts [5][6] Future Outlook - The recommendation is to hold in the near term, as the core business remains resilient, but uncertainty around emerging solutions' growth trajectory poses risks [7] - Management noted encouraging pipeline and customer demand, suggesting potential for recovery if demand for emerging solutions strengthens [6][7]

CCC Intelligent Solutions Holdings, Inc. (NASDAQ:CCCS) Q2 2024 Earnings Conference Call July 30, 2024 5:00 PM ET Corporate Participants Bill Warmington - Vice President, Investor Relations Githesh Ramamurthy - Chairman and Chief Executive Officer Brian Herb - Chief Financial Officer Conference Call Participants Dylan Becker - William Blair Alexei Gogolev - JPMorgan Samad Samana - Jefferies Saket Kalia - Barclays Gabriela Borges - Goldman Sachs Shlomo Rosenbaum - Stifel Chris Moore - CJS Securities Gary Pres ...

CCC Intelligent Solutions Holdings Inc. (CCCS) came out with quarterly earnings of $0.09 per share, beating the Zacks Consensus Estimate of $0.08 per share. This compares to earnings of $0.07 per share a year ago. These figures are adjusted for non-recurring items. Over the last four quarters, the company has surpassed consensus EPS estimates two times. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on man ...