CCC Intelligent Solutions (CCC) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached $232.6 million, up 10% year-over-year, driven by new business wins, renewals, and strong client engagement.

• Adjusted EBITDA was $95.8 million, up 18% year-over-year, with a 41% margin, reflecting operational efficiency.

• Net income attributable to common stockholders was $20.2 million, reversing a prior year loss, with no impairment charges recorded.

• Over 30,000 repair facilities are now on the platform, with 600+ added in 2024, and total customers exceeding 35,000.

• AI-enabled solutions and innovation pipeline underpin long-term growth strategy and digital transformation.

Financial highlights

• Adjusted gross profit was $182.1 million (78% margin), up from 77% in Q2 2023; GAAP gross profit was $177.3 million (76% margin).

• Adjusted operating expense was $96 million, up 7% year-over-year, mainly due to IT and customer-facing investments.

• Free cash flow in Q2 was $36.2 million; trailing 12-month free cash flow was $197 million, up 11% year-over-year.

• Cash and cash equivalents at June 30, 2024 were $237.9 million; total debt was $780 million.

• Net leverage at quarter-end was 1.4x Adjusted EBITDA.

Outlook and guidance

• Q3 2024 revenue expected at $236–$238 million; Adjusted EBITDA $97–$99 million (41% margin midpoint).

• Full-year 2024 revenue guidance revised to $941–$945 million; Adjusted EBITDA $391–$395 million (42% margin midpoint).

• Emerging solutions expected to contribute 1% to 2024 revenue growth, with more material impact in 2025.

• Long-term targets reaffirmed: 7–10% organic revenue growth and mid-40% Adjusted EBITDA margin.

• Management expects existing cash, cash flows, and borrowing capacity to fund operations for at least the next twelve months.