CCC Intelligent Solutions Holdings Inc. (CCCS, Financial) reported first-quarter revenue of $251.57 million, surpassing the market consensus of $249.83 million. The company experienced an 11% increase in revenue compared to the previous year, alongside an adjusted EBITDA margin of 39%, both exceeding their projected guidance. This impressive start to 2025 is attributed to various new business achievements, contract renewals, and expansions across diverse customer segments. The robust performance underscores the company's effective business model, comprehensive network, and commitment to customer-focused innovation.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 12 analysts, the average target price for CCC Intelligent Solutions Holdings Inc (CCCS, Financial) is $12.49 with a high estimate of $14.00 and a low estimate of $10.84. The average target implies an upside of 35.87% from the current price of $9.19. More detailed estimate data can be found on the CCC Intelligent Solutions Holdings Inc (CCCS) Forecast page.
Based on the consensus recommendation from 14 brokerage firms, CCC Intelligent Solutions Holdings Inc's (CCCS, Financial) average brokerage recommendation is currently 1.9, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for CCC Intelligent Solutions Holdings Inc (CCCS, Financial) in one year is $13.33, suggesting a upside of 45.05% from the current price of $9.19. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the CCC Intelligent Solutions Holdings Inc (CCCS) Summary page.
CCCS Key Business Developments
Release Date: February 25, 2025
- Fourth Quarter Revenue: $246 million, up 8% year-over-year.
- Fourth Quarter Adjusted EBITDA: $106 million, with a margin of 43%.
- Full Year 2024 Revenue: $945 million, up 9% year-over-year.
- Full Year 2024 Adjusted EBITDA: $397 million, with a margin of 42%.
- Software Gross Dollar Retention (GDR): 99% in Q4 2024.
- Software Net Dollar Retention (NDR): 105% in Q4 2024.
- Adjusted Gross Profit Margin: 76% in Q4 2024.
- Adjusted Operating Expense: $95 million in Q4 2024, up 4% year-over-year.
- Free Cash Flow in Q4: $106 million, up from $75 million in the prior year period.
- Cash and Cash Equivalents: $399 million at the end of Q4 2024.
- Debt: $776 million at the end of Q4 2024; increased to $1 billion after EvolutionIQ acquisition.
- 2025 Revenue Guidance: $1.055 billion to $1.065 billion, 12% growth at the midpoint.
- 2025 Adjusted EBITDA Guidance: $417 million to $427 million, with a margin of 40% at the midpoint.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- CCC Intelligent Solutions Holdings Inc (CCCS, Financial) reported strong financial performance with a total revenue of $246 million for Q4 2024, up 8% year-over-year, and a full-year revenue of $945 million, up 9% year-over-year.
- The company achieved an adjusted EBITDA of $106 million for Q4 2024, surpassing guidance, with an adjusted EBITDA margin of 43%.
- CCC Intelligent Solutions Holdings Inc (CCCS) expanded its network by onboarding over 1,000 new collision repair facilities and growing its partner ecosystem to over 200 active technology and service providers.
- The company launched several new AI-driven solutions and acquired EvolutionIQ, enhancing its capabilities in disability and workers' compensation markets.
- CCC Intelligent Solutions Holdings Inc (CCCS) maintained a high software gross dollar retention rate of 99%, reflecting strong customer loyalty and value provided by its solutions.
Negative Points
- Adjusted gross profit margin decreased to 76% in Q4 2024 from 79% in Q4 2023, primarily due to increased depreciation expenses and a mix shift towards lower-margin casualty solutions.
- The company's software net dollar retention rate slightly declined to 105% in Q4 2024 from 106% in Q3 2024.
- CCC Intelligent Solutions Holdings Inc (CCCS) experienced a 5% year-over-year decline in total claims volume in 2024, impacting transactional revenue.
- The integration of EvolutionIQ is expected to result in a moderate EBITDA loss in 2025, affecting overall margins.
- Stock-based compensation as a percentage of revenue is projected to increase to 15% in 2025 due to the EvolutionIQ acquisition, impacting profitability.
