In This Article:
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Total Revenue: $238.5 million, up 8% year-over-year.
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Adjusted EBITDA: $102 million, up 9% year-over-year.
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Adjusted EBITDA Margin: 43%, approximately 60 basis points increase year-over-year.
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Software Gross Dollar Retention (GDR): 99%.
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Software Net Dollar Retention (NDR): 106%.
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Free Cash Flow: $49 million for Q3, $200 million on a trailing 12-month basis.
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Free Cash Flow Margin: 22% on a trailing 12-month basis.
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Cash and Cash Equivalents: $286 million.
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Debt: $778 million.
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Net Leverage: 1.3 times adjusted EBITDA.
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Q4 2024 Revenue Guidance: $242.5 million to $246.5 million.
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Full Year 2024 Revenue Guidance: $941 million to $945 million.
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Full Year 2024 Adjusted EBITDA Guidance: $394 million to $396 million.
Release Date: October 28, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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CCC Intelligent Solutions Holdings Inc (NASDAQ:CCCS) reported a strong financial performance with total revenue of $238 million, up 8% year-over-year, slightly above guidance.
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Adjusted EBITDA for the quarter was $102 million, up 9% year-over-year, with an adjusted EBITDA margin of 43%.
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The company is experiencing durable revenue growth and margin expansion driven by new business wins, renewals, and contract expansions.
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CCC's investments in AI and event-driven architecture are positioning the company well for future growth, with AI now an eight-figure business.
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The company has a strong pipeline for its emerging solutions, which are the fastest-growing part of its portfolio, with positive customer feedback and demonstrated ROI.
Negative Points
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The velocity of revenue conversion from new solutions is slower than anticipated due to clients' internal change management processes.
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There is some softness affecting claim volume across 2024, with claim volumes estimated to be down approximately 6% year-over-year.
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The adoption of new products is taking longer than expected, impacting the timing of revenue growth.
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CCC is facing tougher year-over-year comps in the second half of the year, affecting growth rates.
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The company is experiencing some challenges in the full rollout of outbound subrogation due to its complexity and integration requirements.
Q & A Highlights
Q: What needs to happen to increase the adoption of CCC's newer products? A: Githesh Ramamurthy, CEO: Adoption typically involves significant energy from customers to pilot, test, and calculate ROI of new solutions. Progress is being made, as seen with the Estimate-STP solution, which increased from 3% to 4% adoption. Consistent engagement and focus with customers are key to overcoming adoption bottlenecks.