CCC Intelligent Solutions (CCC) Citi's 2024 Global TMT Conference summary

Revenue and customer base profile

• 96% of revenue is from software, with 80% from subscriptions.

• Half of revenue comes from insurance carriers, 35% from repair shops, and 5% from parts suppliers.

• Software addresses efficiency, cost base, and cycle times for carriers and shops.

Market dynamics and product adoption

• Demand remains strong due to efficiency and ROI, with quick implementation and low upfront costs.

• Newer products (Emerging Solutions) expected to contribute less growth this year due to delayed client adoption, not lost opportunities.

• Pilots for new solutions show positive results but take longer to convert to revenue.

• Volume ramp for Estimate STP is slower than anticipated, but some carriers are increasing adoption.

• Delays are attributed to client-side change management, not structural issues.

Product innovation and client engagement

• Emerging Solutions include both AI and non-AI products, automating manual workflows.

• Subrogation automation is being piloted, with carriers testing operational impact.

• Smaller carriers adopt new solutions faster; larger carriers roll out in stages.

• Continued investment and support for Emerging Solutions, with strong client engagement.