The company (CCCS, Financial) has updated its financial expectations, raising the forecast for its fiscal year 2025 adjusted EBITDA to a range of $420 million to $428 million, up from the previous guidance of $417 million to $427 million. This adjustment comes as the integration of EvolutionIQ is reportedly progressing as planned.
Moreover, the launch of Medhub for Casualty is ahead of schedule, marking a significant development in the company's offerings. This new solution is designed to leverage artificial intelligence to recommend optimal actions based on insurer preferences, with the aim of improving the management of intricate injury claims.
These advancements are seen as pivotal in accelerating (CCCS, Financial)'s mission to innovate within the insurance sector by deploying intelligent experiences and enhancing overall outcomes. The company's focus on integrating AI-powered solutions is poised to transform how insurers handle complex claim processes.
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.
