CCC Intelligent Solutions Holdings Inc. (NASDAQ:CCCS) today announced total revenue was $211.7 million for the second quarter ended June 30, an increase of 10% from $192.8 million for the second quarter of 2022.
GAAP gross profit was $152.6 million, representing a gross margin of 72%, for the second quarter of 2023, compared with $139.9 million, representing a gross margin of 73%, for the second quarter of 2022. Adjusted gross profit was $162.0 million, representing an adjusted gross profit margin of 77%, for the second quarter of 2023, compared with $148.4 million, representing an adjusted gross profit margin of 77%, for the second quarter of 2022.
GAAP operating loss was $73.2 million for the second quarter of 2023, compared with GAAP operating income of $12.5 million for the second quarter of 2022. Adjusted operating income was $71.8 million for the second quarter of 2023, compared with adjusted operating income of $66.7 million for the second quarter of 2022.
GAAP net loss was $97.3 million for the second quarter of 2023, compared with GAAP net income of $15.6 million for the second quarter of 2022. Adjusted net income was $47.8 million for the second quarter of 2023, compared with adjusted net income of $37.4 million for the second quarter of 2022.
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) was $80.9 million for the second quarter of 2023, compared with adjusted EBITDA of $73.4 million for the second quarter of 2022. Adjusted EBITDA grew 10% in the second quarter of 2023 compared with the second quarter of 2022.
“CCC delivered strong second quarter results, highlighted by 10% year-over-year revenue growth and 38% adjusted EBITDA margin. The strong performance in the first half of 2023 included multiple large renewals and relationship expansions that reinforce our confidence in our ability to deliver on our strategic and financial objectives,” said Githesh Ramamurthy, Chairman & CEO of CCC.
“We estimate that as a result of the continued macro pressures facing our customers, the cumulative annual cycle time for automotive claims in the U.S. increased to more than 2 billion days in 2022,” continued Ramamurthy. “This staggering figure underscores the importance of delivering effective and integrated state-of-the-art capabilities to help our clients in the P&C insurance economy address operational efficiency. Our solutions and use of AI are helping to do just that by helping customers to reduce the cycle time, administrative cost, and environmental impact of the claims process.”
CCC had $403.6 million in cash and cash equivalents and $788.0 million of total debt on June 30, 2023. The Company generated $69.6 million in cash from operating activities and had free cash flow of $55.0 million during the second quarter of 2023, compared with $40.8 million generated in cash from operating activities and $29.6 million in free cash flow in the second quarter of 2022.
2nd Quarter and Recent Business Highlights
A top-20 auto insurer and long-time customer of CCC’s Casualty solutions added CCC’s full suite of Automobile Physical Damage (APD) solutions in the second quarter of 2023, including CCC Estimate-STP. The client will be transitioning services from multiple vendors onto CCC’s platform and reflects the significant opportunity and numerous ways available to CCC to expand its solutions with the U.S.’s largest insurers.
CCC recently rolled out a new computer vision AI technology for Casualty claims that can predict potential physical injuries to the occupants of a vehicle involved in an accident based on photos of the damaged vehicles. In the second quarter of 2023, CCC added and expanded Casualty relationships with new and existing customers.
CCC continued to grow the breadth and depth of its network during the second quarter of 2023 by expanding the participation of 2 leading OEMs and signing a multi-year extension with one of the leading aftermarket parts suppliers. In addition, CCC has added nearly 1,000 repair facilities year to date. CCC’s total customer count now exceeds 35,000 and includes over 29,000 repair facilities, over 4,500 parts suppliers, more than 300 insurers, and 13 of the top-15 automotive OEMs.