CCC Intelligent Solutions Holdings Inc. announces fourth quarter and fiscal year 2021 financial results

CCC Intelligent Solutions Holdings Inc. (“CCC” or the “Company”) (NYSE: CCCS), a leading SaaS platform for the P&C insurance economy, today announced its financial results for the three months and year ended December 31, 2021.

“CCC delivered another strong quarter, highlighted by 19% adjusted revenue growth and 30% adjusted EBITDA growth. We continue to see positive demand trends across each of our key product and customer categories, especially our AI solutions,” said Githesh Ramamurthy, Chairman & CEO of CCC.

Ramamurthy continued, “We continued to lay the foundation in 2021 for sustained growth as we delivered more than 1,700 product releases on the CCC cloud during the year. The deployment of CCC solutions continues to expand within our customer base. For all of us at CCC it is truly exciting to see our customers across the P&C insurance economy increasingly leverage our unique and comprehensive cloud platform to fully digitize their operations.”

Fourth Quarter 2021 Financial Highlights

Revenue

Total revenue was $187.1 million for the fourth quarter of 2021, compared to $165.4 million for the fourth 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 19% in the fourth quarter of 2021.

Profitability

GAAP gross profit was $139.4 million, representing a gross margin of 75%, for the fourth quarter of 2021, compared with $112.1 million, representing a gross margin of 68%, for the fourth quarter of 2020. Adjusted gross profit was $147.0 million, representing an adjusted gross margin of 79%, for the fourth quarter of 2021, compared with $118.4 million, representing an adjusted gross margin of 76%, for the fourth quarter of 2020.
GAAP operating income was $15.3 million for the fourth quarter of 2021, compared with GAAP operating income of $24.1 million for the fourth quarter of 2020. Adjusted operating income was $69.3 million for the fourth quarter of 2021, compared with adjusted operating income of $53.4 million for the fourth quarter of 2020.
GAAP net loss was $57.9 million for the fourth quarter of 2021, compared with GAAP net income of $5.6 million for the fourth quarter of 2020. Adjusted net income was $49.2 million for the fourth quarter of 2021, compared with $25.0 million for the fourth quarter of 2020.
Adjusted EBITDA was $75.7 million for the fourth quarter of 2021, compared with adjusted EBITDA of $58.1 million for the fourth quarter of 2020. Adjusted EBITDA grew 30% in the fourth quarter of 2021 as compared to the fourth quarter of 2020.

Full Year 2021 Financial Highlights

Revenue

Total revenue was $688.3 million for the full year 2021, compared to $633.1 million for the full year 2020. Adjusted for the impact of the divestiture of a portion of our professional services casualty solution in December 2020, total revenue grew 15% in the full year 2021.

Profitability

GAAP gross profit was $492.6 million, representing a gross margin of 72%, for the full year 2021, compared with $424.3 million, representing a gross margin of 67%, for the full year 2020. Adjusted gross profit was $533.5 million, representing an adjusted gross margin of 78%, for the full year 2021, compared with $447.7 million, representing an adjusted gross margin of 75%, for the full year 2020.
GAAP operating loss was $144.7 million for the full year 2021, compared with GAAP operating income of $77.0 million for the full year 2020. Adjusted operating income was $236.8 million for the full year 2021, compared with adjusted operating income of $184.7 million for the full year 2020.
GAAP net loss was $248.9 million for the full year 2021, compared with GAAP net loss of $16.9 million for the full year 2020. Adjusted net income was $130.3 million for the full year 2021, compared with $79.3 million for the full year 2020.
Adjusted EBITDA was $261.4 million for the full year 2021, compared with adjusted EBITDA of $202.8 million for the full year 2020. Adjusted EBITDA grew 29% in the full year 2021 as compared to the full year 2020.

Liquidity

CCC had $182.5 million in cash and cash equivalents and $800.0 million of total debt at December 31, 2021. The Company generated $127.3 million in cash from operating activities and had free cash flow of $89.0 million during the full year 2021, compared with $103.9 million generated in cash from operating activities and $73.3 million in free cash flow in the full year 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.

4^th Quarter and Recent Business Highlights

Signed multi-year renewals that included meaningful expansions with two of the top ten largest P&C insurers and one of the nation’s largest MSOs. These customers will be deploying new solutions, including Mobile/AI, CCC Estimate - STP and Engage, and are great examples of the opportunity CCC has to increase the value we deliver for customers and generate future growth from our expanding solution portfolio.
Achieved a number of important milestones that highlight the scale and breadth of the CCC Cloud network, including: processing more than 9 million unique claims with our deep learning AI solutions, up more than 80% year-over-year; expanding our repair facility customer base to more than 27,000, more than 30% of which have adopted Engage; growing electronics parts ordering on the CCC platform by 40%, and number of unique shops ordering electronically by over 20%.
Acquired Safekeep, an AI leader in subrogation claims management technology. Safekeep is an enterprise platform that leverages AI to speed and improve subrogation management across auto, property, workers' comp, and other insurance lines of business. The acquisition of Safekeep extends CCC's AI-powered claims software to include subrogation management, a critical function in achieving claims resolution, and now part of CCC’s completely digital, AI-enabled, end-to-end claims solutions.

Business Outlook

Based on information as of today, March 1, 2022, the Company is issuing the following financial guidance:

First Quarter Fiscal 2022

Full Year Fiscal 2022

Revenue

$182.5 million to $184.5 million

$760 million to $768 million

Adjusted EBITDA

$70 million to $72 million

$286 million to $292 million

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