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CCC Intelligent Solutions Holdings (CCCS)
NASDAQ:CCCS
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CCC Intelligent Solutions Holdings
(NASDAQ:CCCS)
67Neutral
Positive Factors
Acquisition Impact
The acquisition of EvolutionIQ strategically complements CCC's existing solutions, supporting a compelling growth opportunity.
Financial Performance
CCC reported better-than-expected Q4/24 results with revenue of $246.5 million and adjusted EBITDA of $106.3 million.
Market Position
Revenue contribution from emerging AI offerings is expected to accelerate, driven by constructive ROI and utilization trends from early adopters.
Negative Factors
Growth Concerns
The organic revenue growth guidance for FY25E is the slowest pace seen in 4 years, reviving investor fears about growth opportunity and market penetration risks.
Margin Pressure
Efforts to accelerate growth through new solutions are modestly diluting gross margin, which declined to ~76% in 4Q24, the lowest level since early 2021.
CCC Intelligent Solutions Holdings (CCCS) vs. S&P 500 (SPY)
Market Cap
$5.96B
Dividend YieldN/A
Average Volume (3M)9.12M
Price to Earnings (P/E)223.4
Beta (1Y)0.85
Revenue Growth9.05%
EPS GrowthN/A
CountryUS
Employees2,310
SectorTechnology
Sector Strength50
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)0.04
Shares Outstanding657,573,800
10 Day Avg. Volume9,416,490
30 Day Avg. Volume9,122,707
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)6.38
Price to Cash Flow (P/CF)23.40
P/FCF Ratio27.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$13.33Price Target Upside46.97% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
CCC Intelligent Solutions Holdings Business Overview & Revenue Model
Company DescriptionCCC Intelligent Solutions Holdings Inc. provides cloud, mobile, AI, telematics, hyperscale technologies, and applications for the property and casualty insurance economy. It SaaS platform digitizes mission-critical AI-enabled workflows, facilitates commerce, and connects businesses across the insurance economy, including insurance carriers, collision repairers, parts suppliers, automotive manufactures, financial institution, and others. The company offers CCC Insurance solutions, including CCC workflow, CCC estimating, CCC total loss, CCC AI and analytics, and CCC casualty; CCC Repair solutions, such as CCC network management, CCC repair workflow, and CCC repair quality; CCC Other Ecosystem solutions, comprising CCC parts solutions, CCC automotive manufacturer solutions, CCC lender solutions, and CCC payments; and CCC International solutions. CCC Intelligent Solutions Holdings Inc. was founded in 1980 and is headquartered in Chicago, Illinois.
How the Company Makes MoneyCCC Intelligent Solutions Holdings generates revenue primarily through subscription fees for its cloud-based software solutions, which are utilized by a wide range of clients in the automotive, insurance, and collision repair sectors. The company offers its products on a subscription basis, providing ongoing support and updates, which ensures a steady stream of recurring revenue. Additionally, CCC has strategic partnerships with major industry players, enhancing its market reach and adding value to its service offerings. The company also benefits from consulting and professional services, which provide additional revenue streams by helping clients implement and maximize the use of CCC's solutions.
CCC Intelligent Solutions Holdings Financial Statement Overview
Summary
Overall, CCC Intelligent Solutions Holdings presents a strong financial position with significant improvements in profitability and cash flow generation. The company has demonstrated healthy revenue and profit growth, coupled with a strong balance sheet characterized by low leverage and substantial equity. The cash flow metrics are particularly impressive, indicating efficient cash management and robust financial health. While the return on equity remains an area for potential enhancement, the overall financial outlook is positive.Income Statement
The company has demonstrated strong revenue growth, with a consistent increase over the past years, culminating in a revenue growth rate of 9.06% in 2024. The gross profit margin is robust at 75.55%, indicating effective cost management. The net profit margin has improved significantly from a loss to 2.77%, showing a strong turnaround in profitability. EBIT and EBITDA margins have also shown improvement, reflecting better operational efficiency.82
Very Positive
Balance Sheet
The company's balance sheet is strong, with a low debt-to-equity ratio of 0.03, indicating low financial leverage and risk. The return on equity is modest at 1.31%, showing room for improvement in generating returns for shareholders. The equity ratio is healthy at 64.05%, suggesting a solid capital structure with substantial equity backing.77
Positive
Cash Flow
The company exhibits excellent cash flow management, with a strong operating cash flow to net income ratio of 10.86, suggesting robust cash generation relative to net income. The free cash flow has grown by 45.61%, highlighting effective cash management and operational efficiency. The free cash flow to net income ratio is very high at 10.86, indicating strong cash profitability.88
Very Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 944.80M | 866.38M | 782.45M | 688.29M | 633.06M | Gross Profit |
| 713.80M | 636.16M | 568.51M | 492.63M | 424.35M | EBIT |
| 80.11M | -23.93M | 51.92M | -144.68M | 76.98M | EBITDA |
| 232.60M | 114.37M | 216.00M | -144.68M | 171.81M | Net Income Common Stockholders |
| 26.14M | -92.48M | 38.41M | -248.92M | -16.88M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 398.98M | 195.57M | 323.79M | 182.54M | 162.12M | Total Assets |
| 3.18B | 3.05B | 3.35B | 3.24B | 3.20B | Total Debt |
| 62.89M | 833.09M | 841.86M | 852.79M | 1.32B | Net Debt |
| -336.09M | 637.52M | 518.07M | 670.25M | 1.16B | Total Liabilities |
| 1.16B | 1.25B | 1.29B | 1.35B | 1.81B | Stockholders Equity |
| 2.00B | 1.78B | 2.05B | 1.87B | 1.37B |
| Cash Flow | Free Cash Flow | |||
| 283.89M | 195.00M | 151.96M | 88.97M | 73.28M | Operating Cash Flow |
| 283.89M | 250.03M | 199.91M | 127.33M | 103.94M | Investing Cash Flow |
| -53.01M | -55.03M | -76.29M | -48.60M | -30.67M | Financing Cash Flow |
| -27.29M | -323.03M | 17.88M | -58.44M | -4.42M |
CCC Intelligent Solutions Holdings Technical Analysis
Negative
9.07
Price Trends
10.29
Negative
11.06
Negative
10.99
Negative
Market Momentum
-0.36
Negative
31.11
Neutral
34.80
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CCCS, the sentiment is Negative. The current price of 9.07 is below the 20-day moving average (MA) of 9.33, below the 50-day MA of 10.29, and below the 200-day MA of 10.99, indicating a bearish trend. The MACD of -0.36 indicates Negative momentum. The RSI at 31.11 is Neutral, neither overbought nor oversold. The STOCH value of 34.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CCCS.
CCC Intelligent Solutions Holdings Risk Analysis
CCC Intelligent Solutions Holdings disclosed 56 risk factors in its most recent earnings report. CCC Intelligent Solutions Holdings reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
CCC Intelligent Solutions Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $14.67B | 30.78 | 21.59% | ― | 19.81% | 139.58% | |
67 Neutral | $5.96B | 223.40 | 1.38% | ― | 9.05% | ― | |
64 Neutral | $4.42B | ― | 99.24% | ― | 17.24% | 57.87% | |
63 Neutral | $15.54B | ― | -1.24% | ― | 7.32% | 88.51% | |
62 Neutral | $2.22B | ― | -2.21% | ― | 14.44% | 84.58% | |
58 Neutral | $3.32B | 118.99 | 9.16% | ― | 7.57% | -48.20% | |
58 Neutral | $21.15B | 10.32 | -17.43% | 2.43% | 4.55% | -24.50% |
* Technology Sector Average
Performance Comparison
CCCS
CCC Intelligent Solutions Holdings
8.92
-2.88
-24.41%
FIVN
Five9
27.75
-33.60
-54.77%
WK
Workiva
78.73
-4.85
-5.80%
TWLO
Twilio
98.98
36.53
58.49%
VRRM
Verra Mobility
20.19
-4.29
-17.52%
DT
Dynatrace
48.42
2.68
5.86%
CCC Intelligent Solutions Holdings Earnings Call Summary
Earnings Call Date: Feb 25, 2025 | % Change Since: -11.94% | Next Earnings Date: May 6, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong revenue growth, margin expansion, and successful strategic initiatives, including the acquisition of EvolutionIQ and the launch of new AI solutions. However, there were challenges such as a decline in claims volume and a slight decrease in gross profit margin. The sentiment is balanced by the positive outlook for 2025 and beyond.Highlights
Record Revenue and Growth
For the fourth quarter of 2024, CCC's total revenue was $246 million, up 8% year-over-year and at the high end of our guidance range. Total revenue for the fiscal year 2024 was $945 million, up 9% year-over-year.
Strong EBITDA Performance
Adjusted EBITDA for the fourth quarter was $106 million, ahead of our guidance range, and adjusted EBITDA margin was 43%. Full year 2024 Adjusted EBITDA was $397 million, up 12% year-over-year with an adjusted EBITDA margin of 42%, up about 130 basis points year-over-year.
Expansion of CCC Network
In 2024, CCC made significant progress in strengthening and expanding the scope of the CCC network, with several key renewals and new customer additions including onboarding over 1,000 new collision repair facilities.
Launch of New AI Solutions
Our leadership in product innovation and AI continued to advance in 2024 with the launch of several new solutions and our IX Cloud event-based architecture. Our AI is now in production at over 100 insurers and over 10,000 collision repairs.
Acquisition of EvolutionIQ
Through our acquisition of EvolutionIQ, we expanded our addressable markets into disability and workers' compensation while also deepening and strengthening our AI and casualty capabilities.
Lowlights
Decline in Claims Volume
In Q4, we saw moderation to about minus 3% of total claims, ending the year at 5% down year-over-year in 2024.
Adjusted Gross Profit Margin Decline
Adjusted gross profit margin was 76%, down from 79% in Q4 2023, primarily due to an increase in depreciation expense from capitalized projects and mix driven by growth from certain casualty solutions with a lower margin profile.
EvolutionIQ EBITDA Loss
The integration of EvolutionIQ is expected to result in a moderate EBITDA loss, which will affect the overall EBITDA margin in 2025.
Company Guidance
In the call, CCC Intelligent Solutions provided guidance for the first quarter and full fiscal year 2025, projecting total revenue between $1.055 billion and $1.065 billion, reflecting a 12% growth year-over-year at the midpoint. For the first quarter of 2025, revenue is expected to be in the range of $249 million to $250.5 million, signifying a 10% increase year-over-year at the midpoint. The company forecasts an adjusted EBITDA of $417 million to $427 million for the full year, with an adjusted EBITDA margin of approximately 40%. This includes the integration of EvolutionIQ, which is anticipated to contribute $45 million to $50 million in revenue for 2025, with expectations for its revenue contribution to increase as the year progresses. Adjusted EBITDA margins excluding EvolutionIQ are expected to rise by about 75 basis points to roughly 43%. Additionally, CCC Intelligent Solutions highlighted the continued growth and adoption of its emerging solutions, which are projected to contribute about 1 percentage point to revenue growth, with emerging solutions currently standing at approximately 3% of total revenue.CCC Intelligent Solutions Holdings Corporate Events
M&A Transactions
CCC Intelligent Solutions Expands with EvolutionIQ Acquisition
Positive
Jan 7, 2025
CCC Intelligent Solutions Inc. has completed the acquisition of EvolutionIQ, a leader in AI-powered disability and injury claims management. This acquisition expands CCC’s market reach into disability and workers’ compensation while enhancing its AI-powered SaaS platform with new capabilities such as Medical Summarization and Next Best Action, aimed at revolutionizing insurance claims resolution.
Executive/Board Changes
CCC Intelligent Solutions Announces Executive Departure
Neutral
Jan 3, 2025
CCC Intelligent Solutions Holdings Inc. has announced the departure of Michael Silva, its Executive Vice President, Chief Commercial Officer & Customer Success Officer, effective December 31, 2024. The company has entered into a separation agreement with Mr. Silva, which includes various financial compensations and benefits, conditional upon his compliance with certain covenants, signaling a strategic personnel shift that may impact its operational dynamics and stakeholder interests.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.