CCC Intelligent Solutions Reports 7.8% Revenue Growth, Net Income Turnaround in Q3 2024

CCC Intelligent Solutions Holdings Inc. reported significant financial improvements in its third quarter and year-to-date results for the period ending September 30, 2024, compared to the same period in 2023. Total revenues for the third quarter reached $238.5 million, a 7.8% increase from $221.1 million in Q3 2023. For the nine months ended September 30, 2024, revenues totaled $698.3 million, up 9.5% from $637.8 million in the prior year. The growth was primarily driven by a 5% increase from existing customer upgrades and a 3% increase from new customers, with software subscription revenues accounting for 96% of total revenue.

Gross profit for the third quarter increased by 12.4% to $183.4 million, resulting in a gross profit margin of 76.9%, up from 73.8% in the previous year. Operating income surged to $28.7 million, a 73.1% increase from $16.6 million in Q3 2023. The company reported a net income of $4.1 million for the third quarter, a significant turnaround from a net loss of $21.2 million in the same quarter last year. For the nine-month period, net income was $25.0 million, compared to a net loss of $116.4 million in 2023.

The company’s total assets as of September 30, 2024, were $3.1 billion, up from $3.05 billion at the end of 2023. Cash and cash equivalents also saw a notable increase, rising to $286.3 million from $195.6 million at the end of the previous fiscal year. Total stockholders’ equity increased to $1.94 billion, compared to $1.78 billion at the end of 2023.

In terms of expenses, research and development costs rose by 13.8% to $49.5 million, primarily due to increased stock-based compensation and IT costs. General and administrative expenses increased by 7.0% to $52.9 million, driven by higher professional service costs. Conversely, selling and marketing expenses decreased by 3.5% to $34.3 million.

The company also made strategic financial adjustments, including amendments to its credit agreements to reduce interest rates and extend maturity dates. As of September 30, 2024, the outstanding amount on the Term B Loan was $778 million, with a weighted-average interest rate of 7.8%.

Overall, CCC Intelligent Solutions Holdings Inc. demonstrated a strong recovery in profitability and revenue growth, reflecting effective management strategies and a solid performance in its core SaaS offerings for the property and casualty insurance sector.