CCC Intelligent Solutions (CCCS) - 2024 Q3 - Quarterly Report

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]