CCC Intelligent Solutions (CCCS) 4 Nov 222022 Q3 Earnings call transcript

Thank you for standing by. This is the conference operator. Welcome to the CCC Intelligent Solutions Third Quarter 2022 Earnings Conference Call.

As a reminder, all participants are in a listen-only mode, and the conference is being recorded. [Operator Instructions]. to of conference Investor like Warmington, to now President Vice Relations. would turn over the Bill I Please go ahead, sir.

in results, Good morning, CCC's we before financial to of the us joining release market announced the which today. open and thank third you quarter for the issued press today XXXX

use Chairman subject company's and The results are actual report Joining under comments implementation the the we forward-looking me by otherwise prohibited on Further, same violation earnings CCC's laws. the make cause on Any the or filed and to the results may Brian and copyright and for that CCC recording, today CCC's heading of vary Relations of consent are risks are call uncertainties company's the these SEC. with CEO; other These Intelligent the Risk XX-K releases or Investor to the Factors other copyrighted annual and discussed the statements are profit and plans Herb, that plans risks XXXX United and Ramamurthy, Form about Githesh prior follows States our and Q&A and CCC's of reproduction Holdings, the today website available materially. retransmission, on Solutions in of our in Inc. a CFO. without

provide release note SEC. take relating Githesh. results non-GAAP And measures non-GAAP financial company's A certain of you. to Investor of includes to earnings Please defined available by Additionally, we transcript. as the over for that the responsibility to no condition to believes information may financial The is useful certain available and the the call of our management publishing regarding in non-GAAP company call these Thank Relations is have inaccuracies that by while the on our approved measures on we a I'll discussion GAAP and website. reconciliation now in operations. a transcript turn and third-party, the measures business investors trends today's financial financial appear this that the of call

Thank today. report thanks top CCC of all line you, you of to quarter delivered pleased strong joining another us Bill, performance. that to and and for bottom I'm

quarter year-over-year $XXX ahead CCC's revenue of was the our and of total third range. XX% Adjusted ahead XX% $XX EBITDA million, up guidance million, XXXX, of range. our For year-over-year also guidance up was

outlook revenue will full raising EBITDA was are margin Our Based like and walk performance our Brian quarter strong third three EBITDA adjusted our in Today, year, on and which for through. discuss I the for we our XX.X%. year-to-date, coupled guidance would the adjusted QX, with topics. to

is The platform. strength and CCC of first the the uniqueness

with financial third And our and The a efficient platform first Beginning makes resulting second powerful business on parties, that is customer innovation CCC's model all our how our making new is throughout continuous technology solutions. the that what framework, model. efficient topic, a network investment in multisided unique benefits so economic an is we're combines relationships progress and enables cycles. it close

element technology CCC platform. Our of a is the key framework

the cost was the our quickly Whether world and ago, a CCC at for today enables technological products today, and scalable being recently in forefront economy. We the a which of have a of and cloud architecture solutions our Innovation XX% represents auto and than heart or And decade first what introducing for long multi-tenant AI platform for the to roll XXX% in insurance launching do. claims. that scaling effectively. more at updates repair we and history out of of several more innovation collision us is new ONE is the revenue

renewal example who for their national work our their long-term to innovation and of customers' increasingly from include contract optimize line our to typical is their the also customers with input cases, In insurer. to XXXX, with X- a X-year multiple core term. transform ahead many help expanded pain Cloud with us versus with do looking XX to through CCC us as so delivering A to business new CCC's those a we extension and to fortunate X-year We and role This near-term customer to platform enables have operational good results insurer This significant recent choice underscores with address relationship solutions effectively years others. us top how customers. and arrangement also of great efficiencies long to extended our contract over customers, this performance. with A their very our want them deliver of customers are innovate the Delivering is part of a points solutions. clients.

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auto at facilitating mission-critical is and and transactions. trusted It large, companies partner, other annual network insurers, includes parts The interconnected highly economy. more network facilities, the supports participants. Our CCC, billion XX,XXX many billions and value OEMs, interactions. processes powering of and repair over all of for across insurance suppliers complex, members of generates than With the $XXX

of rapidly address has also that an believe customers grown is the participants, transformation great of network CCC interconnected network and classic they insurance complexity economy's is the the effect. face. in participant the both for grown, As value We enabler essential the segments increasing our network each and to a to network auto CCC has way the

financial innovation throughout enables I'd to efficient cycles. economic is how cover today continuous our second model investment topic like in The

scalable. and is financial Our both model predictable

gross predictability, In over contracts, retention. X- under terms is subscription-based and of our dollar of XX% XX% X-year revenue we have to

percent scalability, a XXs cloud-based terms I is of gross highly product efficient, model In service of earlier. margin our CCC's high delivery discussed

efficiencies have coming broad coverage customer allow state-of-the-art technology to our our term, deployment we have growth over stack us rapid enabling in increasingly because continually reinvest These already addition, existing we an model the to long In clients. efficient with go-to-market customers. from

such aggressively Payments. illustrated decades insurance of early transformation transformation how to have These heart in at previous developing of this decade. to We these our is will the XXXX, for next industry insurance operational CCC decade believe as the financial digital invest We the auto new the follow. auto the efficiency. think pandemic, improve We financial of accelerated that changed of experiences to with solutions of and position for new that the example, great participants, in major digital industry good of a is investments, believe combined investments, crisis economy. our Diagnostics the continue we the analog Estimate-STP, a and During economy forces pandemic need transformation this and tools for the consumer services their innings underpin in the that XXXX growth

talk progress some I'd we on are about solutions. topic our to today making third like is newer of the The

ecosystem long of customers. We and the combining labor challenges, itself. vehicles the network our supply compounded of consumer and interconnected software, Today, for customers' all inflation, to and expectations, capacity problems solutions, problems rising have a history include by data complexity repair our of developing solve increasing of hyper local facility our shortages, lack chain

broader the they fraud to data still of X auto X based of estimates signed to and the of claims weeks Customers that. cross-carrier impact the we scheduling Estimate-STP same configuration. best levels have And XX Estimate-STP update to that insurer and impact it We peak, join. the of our earnings the CCC processed insurers are straight-through counteract the We CCC X that on we XX% discussed And to additional are far, ago, call in Flag no weeks X.X digital human in higher processed has top are out on figures in negative since participating January. on can up. I our X.X photographs the And Estimate-STP quickly August. the that cross-carrier first industry from Ian. detection clients the September, number little potential, quarter involvement write the claims carriers we fraction carriers We growing previous XX clients backlog well have off top the So represent we auto representing cloud. the wanted mentioned opportunity. with Estimate-STP insurers AI-based in GEICO of as weeks, number was of announced X of repair increases. roll claim the cross-carrier helping increase market These include facing. our line to to those XXXX. leverages then, the This more are total system coverage. first period running for reached nationally. excited the are solutions for national I repair as because you in an that Diagnostics. claims in velocity base. are for over is the third system XXXX digital claims do as XX over three the the quarter, the the economy was We several Estimate-STP, these in of digital quarter have red on give that XX an In twice auto running AI-powered Estimate-STP, insurance XXXX, volume now auto starting insurance wanted all but claims of Smart last than an a absolute through of The that of than smart are item the helps tiny smart red challenges CCC believe XX% in that XX% average accident example, on small of up in flag important is being costs from volume, way XXXX. to carrier solutions about before system context is morning, trust investing it enabler Hurricane the flag of recognize Red multiples of processing is macro two up last now mention also and claim are X the the

also is I'm all more Cars are second about Diagnostics. these solution but The to getting safety features complex. talk cars are going making safer,

getting visible because years appraisals diagnostic X%. that number of ago, more and result, Today, is repairable Five is to the it always make was scans included more a about important the that up. XX%. damage As scan are about not figure

a providers diagnostic of AirPro, services Over we of out years, leading network as such built Honda. Opus and the robust past Astec, few

Vegas, repairs enables consistency package simplify trade we week, to improving transparency diagnostics, large last diagnostic optional facilities. and the and The a CCC creating In a Las in verification add-on more scans insurers. fact, between to administration before launched repair reporting, increasing solution show of for Diagnostics, in new repairs our just add-on of

opportunity helpful have Diagnostics CCC for auto new Diagnostics defined We add-on OEM this being revenue $XX customers of role strong previously the the automotive insurance to very CCC see another to part safety. is as is is repair and capability the central The digitizing example and playing also and from $XXX who received endorsements million quality million of in economy.

deep And all, IBM, to my U.S. the insurance, for to Commercial have team. with our concluding of you Success to ability salesforce. has it our as in leaders. and efficiency results. Chief manager welcome their Brian, Mike's financial as customers we Before Microsoft, run at industries. UnitedHealth call SaaS, like improve operations will his Mike across operational and who through in international I'd at best a in experience as now like I values new His help also walk Silva part our and our CCC's enterprise-level I turn confidence experience, look you Mike, team Officer. companies direct consumer executive started Mike other and multibillion-dollar have will of represents having Mike Chubb our experiences. and claims remarks, Customer most industry to recently, core the great Insurance. career over sales AI it's a to cloud has high services and

Githesh. Thanks,

like quarter XX% As the and that and cross-sell to third the XX% including our year installed XX% of the revenue for second closed half last third in the our year adoption expansion we've talking of came deals XX% quarter continued about of numbers, into mostly facilities in driven suppliers. XXXX of also been client from in year period. results X% incremental repair domestic. about the and point strong digital discuss for of over then from third quarter from quarters. the prior Approximately now turn to our and several solutions, we the was I'd I'd XXXX. new fourth growth quarter the that that full came revenue An First, updated our the up was $XXX.X guidance large quarter parts upsell was the revenue logos, million, percentage X our note we last our review base, third for by Total the

key our to metrics. Turning

from to network prior we our captures quarter. client effect. year with value retention Software consistent the of QX the period. compared We was amount XXXX, or last base and GDR GDR, our customers XX%, the In gross revenue GDR dollar provide of retained the our believe reflects software stickiness the

Software and predictable GDR tenet resilient is a revenue our core to model.

driver dollar of have compared year. our core been XXX%, well retention, this the our to The cross-sell and including period the we we've historical client NDR, of damage as our for foreseeable the customers consistently opportunities our upsell having volume average. physical with execute in auto net existing performance in expansion second or movements last year upsell amount signed half NDR from NDR in the QX base, to In base. as reflects large our excellent deals Software captures is above software in strong the prior and recent client was XXXX, NDR which is quarters our success future. a across and business, opportunities the against cross-sell

review I'll more statement the Now income detail. in

of our is unless quarter was As which non-GAAP able to GAAP last XX%, in good metrics are long-term about and the our million profit with profit noted, quarter reconciliation XX%. leverage the of the we provided a Adjusted year. our target margin a feel to release. $XXX.X consistent scalability otherwise third with against non-GAAP, gross adjusted operating of in deliver all being and of and business press gross of reminder, We

$XX.X were extent, increase terms normalized. driven of discretionary expenses expenses Growth by spend an these to was operating expenses and grew additions which year-over-year. XX% headcount adjusted these million, in expenses, a In are as mainly largely lesser in

we across revenue margin. last EBITDA with the XX% new initiatives. reflects are operating advance basis ongoing in capacity development. operational a EBITDA Adjusted to offset slight EBITDA quarter strategic to point, positions executing innovation headcount product and support modest the million points to We for QX compared $XX.X decline product strong market adding the progress our long-term of for was key to year. the adjusted innovation by product agenda. management in we on our by margin decline XX.X% being The of resources grew with with a into continue XX a investment are margin On leverage feel our capabilities our pleased made growth deliver and year-over-year position growth of Adjusted both to and

year-to-date, we have our example, an capacity XX%. development product month staff increased approximately As by

We million to $XXX and quarter rate interest Now we million cash times turning quarter, the $XXX put an balance to floating risk, sheet of place EBITDA. and X.X in cap on leverage the during rate X% flow. At ended equivalents and net quarter, proactively our In approximately million debt. manage was our cash the with debt. third end the X-year interest adjusted of a rate our cash in of $XXX the effort

float of LIBOR, an unlevered but million X/X low converted on free approximately $XX.X will interest the of we've $XX would based flow. rate headquarter rate cash interest quarter cash XXs to collected X%. and the our a Year-to-date, in the year-to-date the receipts, in the results. unlevered EBITDA rate our continue buildout, be flow our interest have of into consistent free with Adjusting debt approximately will October, adjusted was of the which been compared in XX% adjusted customer period. cap to for in were subject cash historical million to prior cap debt flow the forward, timing range year Going Free on X-month

quarter. to guidance, the like I'd fourth finish with with beginning Now

at revenue represents the X% midpoint. to This $XXX total million. $XXX expect million We growth year-over-year of

EBITDA EBITDA XX% million adjusted represents expect to midpoint. adjusted at a million, of $XX which margin We the $XX

the the expect year For $XXX represents million, at XX% midpoint. year-over-year we full XXXX, of which to $XXX revenue million growth

We think mind guidance. adjusted as keep to the million a in EBITDA midpoint. XX% which you fourth $XXX expect and year margin $XXX represents adjusted to quarter of EBITDA our full million, points Three about at

signed growth X% that contributed second The deals in third all lapped we second have first deals and of points of year. revenue large These XXXX, quarter of the in the expansion half first quarter last is point in that X the the now quarter. in the X we

We quarter. the deals in no will these fourth receive from benefit

quarter a to point in is The quarter. last of that from how in the growth XX% X% for X% with quarter to us This second revenue growth implied headwind fourth point would a revenue which guidance X% the be we creates two-percentage fourth the fourth contribution had nonrecurring the the in year. X-point headwind fourth X-point means quarter, of revenue

EBITDA we QX margin leverage our the are full is our for revenue based raising year that of third forecast and on in adjusted operating point performance The the year-to-date.

EBITDA the be approximately XX%. XXXX about for margin This XXXX. We will year XXX represents end basis XX expect margin basis points up about full adjusted of to the points since of expansion

emerging durable long and is today solutions package shop casualty, we P&C the more Engage. well to with and like have CCC focused The the and our established payments long-term confidence underlying of of goal. on as economy our be to good other to in insurance We accelerate, positioned Overall, as innovation were margin feel but across our Diagnostics, targets. to strategic near continue momentum opportunities and same our need have our of mid-XXs We exciting highlighted drive repair long-term and revenue both EBITDA towards like in position we opportunities growth about Estimate-STP growth which in the subrogation at the guidance term. while many shots profitability across the the adjusted product Two for upsells believe our progressing business investing solutions continues and our well many digitization we the and time in ambitions on support in reflects portfolio.

long-term in deliver our X% growth our ability revenue organic confident to on year to are and beyond. XX% next target of We

we customers With continue our take for we our our that, shareholders. on strategic questions. significant will As operator, to and ready we now execute value believe to priorities, both Thank generate you. we're

Instructions] comes Sachs. ahead. Borges Please first [Operator of question Gabriela from go Goldman The

Hi, my question. good morning. you taking for Thank

secular Githesh, the and give the XQ rate, Brian, you you some the seeing the would so little post end XX%. Brian ask both about drive insight and early any talked range a the I'd you're about For the takes, about bit guidance. us longer-term growth And Githesh, how into what of in Thank you. of about talked that range long-term Maybe puts of a COVID. the to should that? X% little high given at be year? thinking bit of you be to low versus that and into XXXX visibility end any tailwinds we

Brian, the And of first second take Gabriela, question. you. to want you do part? take your I'll the are how part

morning, range about we start Good and Gabriela. put QX Yes. out. the I'll think

there, we that there's at the Remember, range. So, points the we're talked about and two at within facing. midpoint of X% X% high-end headwind

So, then that's when the and XX% that, high-end X% you normalize at range.

to a those point solutions So, will you be drive think way of to the how of one then think the and When key we're year I what stepping think that's it's off the -- be the about about the range, end going next will factors and track. year. into of going newer good the our adoption to how certainly high end

them. new to And when we're push rolling color? to end those Githesh, you about of add wanted be the some progress it's and of we what or the really solutions that adoption us going if beyond, so, out to think additional will the high

we cloud Yes. scalable on the very, a that having focused things Gabriela, is very architecture. and one modern of have

solution. roll about ROI we from days, or We're our solutions, new talking to be quick. deliver very tends a we as typically out product a XX time the So,

products. I our Estimate-STP. quarter, large at So solutions, existing And example, out as we're mentioned And adoption. result, you a products, clients. high roll out over roll we as And even as X we've added we continuously also an if just a developing look have new as we newer

propensity they confidence. the of have gives our say number solutions of we a customers. to a our And So, indicated all what have importantly, deep out. very had is our with us That's most well as continue to adoption I us And pipeline what as in gives new roll would confidence growth. meetings we've solutions

That all makes sense.

As us areas the hiring bit are really a you be where will of what follow-up, preview. projects little And of on move couple Mike Maybe give looking Githesh, think a a key can Mike. congratulations needle? that on? you are of the a What some

products of and Sure. all our primarily we of first Mike an over working and as deep new focus big is our making roll the out foremost, many really with experience on, sure extraordinarily to focused say, has focus long is deep understanding of Mike's rollout he a our primary solutions with solutions, that's, And run. these solutions and customers, Mike. I has And working these would range customers go-to-market of in Mike teams. hey, whole newer And our for of a built solutions.

color. the Appreciate

Gabriela. you Alright Thank

William go The ahead. next of comes Please question from Dylan Blair. Becker

the there. good gives I STP you're guys, in idea, early you Hey you in could around to future capabilities build piece, seeing innovation on maybe confidence quarter. you smart the morning. enabler. components you're obviously, the solid think up on and touched touchless I out, that guess early opportunity, of just maybe the understand I market Congrats you idea there's automation, you how claims that rounding So, traction on the cadence about track the right? think claims suite would Githesh, other as with claims planning thinking that about there? touched automation speaking kind that out rounding broader of how and starting innovation probably some But the out

Estimate-STP and adjusters, background, in do, so to ability maybe which What rolled Okay. out of with our get And to Smart what fundamental people its solution, AI just AI we're comfortable had People two of thousands started And tested of state, which the Estimate-STP, first geographies. maybe Estimate, by handful was started really states. we people we for we the a the out capabilities. prior being three started of are by were way seeing. out the used was and foremost, in Thanks Dylan. question, Estimate-STP, when testing rolling here's states,

So, models, going from as or gone states are to to states, some what we clients in tremendous that Estimate-STP is we add very see instances, X move and continue are as volumes states, roll for we the we tune are across more customers and opportunities X we our tiny. or as client to seeing to now are Estimate-STP, out But people still to all X rolling out more XX in have base.

just have Now as Estimate-STP a view much STP we broader around of part that reminder, a is or straight-through processing.

So through all all consumer, off from advantage network because of customers providers to takes the of these immediately, demonstrate pieces at levels tangible truly straight-through our of in this can repairs, of and broader insurers, way STP, deliver lot to we're ability and very together a customers have a terms, customers you with what parts our we the basically gives which design across starts processing. of have Estimate-STP bring the all confidence, to across working way settlement much many pull

side repair I consolidation color the helpful. well, too. in the there. space. facility very That's appreciate over switching out of Maybe as playing the idea to The

I'd that the of tend You've customers healthy here. your got And most share to a consolidators. be assume

efficiency on touched address investment macro but they're You backlogs, impacts, material, of challenges, about? labor talked everything to prioritizing Thanks. lot growing a how maybe the again and you

Yes.

a we facilities reminder, lot yesterday show our customers. independent we have day what the a talking also repair just at was our as as just before to And repair board I of customers. customers, trade fact, see is many of In across

made customers, it made multi-store we up up is XX,XXX-plus say we have when operators. of So, independence. of It's

we of are looking of seeing have people a technicians shortage, others highly the large it's that in is pressures terms of if both can So, that are and pretty labor the one we be inflationary there. that that that is save to and Time costs productive. are What share out, they many the things time. pointed they have thing

So, solutions eliminates, our part things. simplifies of

functionality capabilities Diagnostics, we of but CCC connecting as So improving on ONE an like insurers. CCC only And multi-store facilities. repair between not procedures example, of Diagnostics the as ONE, also to impact has of the a OEM operation streamlines the flow entire add independent to all dramatic operators,

is the from but repair across So, what the time, customers drive seeing for well. come volume digital are the our seeing we're more we the that are board back, as across capabilities, efficiency same board more people hearing at

Very helpful. guys Thanks for and question congrats. taking the

next go Kelley comes Please ahead. from question The David Jefferies. of

my all maybe the morning expansion last announced thanks thanks for But Good deals for the your color regarding of lapping large expansion top and new taking year. deals the And on from you question. XX this contribution should months from potentially the contracts think we curious other also, morning, And the we be renewal in going for any deal up forward? that how there's should if major considering? coming about new

it renewal, So, David, a highlighted term carrier commitment as that seven-year top the CCC. really Hi that had deal, renewals. within and We also it's the it's term, XX Yes, we Brian. for right? highlights I'll the of take so several we highlighted Within has that. Yes. because I mean, a products were this included a cross-sell.

just You of normal think about that our growth step-up sequentially. in

data to talk it's just highlight within each So, seeing next about guidance you dollars, on that be particular for we're quarter, going that you absolute of we and look step-up when natural building And deal see our at the -- the this nothing part it's guidance cadence for of year. QX.

We their are always working with expanding clients on bundles. our and cross-sell

next And always continue upselling to base. the just think do and about and into client that year as natural our cadence and we'll our growth, so we cross-selling that's we'll be

clients. So, it's standard way our the with operating with procedure of work we kind

through clearly, we're see This customers. us soften rates vehicle frankly record really you starting values post-COVID facility Got robust I and not starting total then are your how vehicle level repair supply walk to recurring your really could market this given was you, but Okay. how levels. think will shortage-driven values trend and clearly, correct extent revenue to nearly a from high impacts from used Thank vehicle do to you used where CCC for levels? it. maybe hoping stream, and and about have high implications the

Sure.

we to that have want -- So answer for is our what I is have that our clients make designed single clear correct to we foremost, them the so first model every give time. deliberately goal and our business

of repaired the important total it's have decision the $XX,XXX fact, ago. vehicle peak what be should very come loss in just is whether total that as accurate it's So, as totaled, be loss should vehicle repair for said, -- a important a vehicle. to or hit prices that down, couple a With valuation particular make a that months

years, over period $XX,XXX. XX losses it So, had in over the years, X from to years $X,XXX, gone $XX,XXX of from XX last and -- a total roughly went $XX,XXX

impact a repair. October, it seeing model, seen closer to we're to of September, for that prices. even has XX% related very recently, from literally late it other. the loss that total bump. range, is these very, into coming increases business levels, down -- XX%. And implications softening the at repair significant total customers percentages October loss, the starts high What car directly the whatsoever really we've is amount X way it is one So, But the our used of as or has it’s The CCC for in

That’s it. got Ok, helpful.

Saket from comes Barclays. from Kalia question next The

on So -- that from catalyst Estimate-STP. a And me maybe CCC's Good here. the you. there see about carriers could Great to just Great. guys the was brush? adoption? is think do that wondering scale call increase? on to adoption economic as you thanks what that do for perspective, I you having talk accelerate morning and Okay. the for XX Githesh, maybe broad

Sure.

should literally customer jump-starting terms we taking as and models provide and translate a $XXX. dealing with. of vehicle of look as look over collect cost into photos person do can starts in number estimates they're a hundreds complexity, -- how for what and estimate as vehicle it factors -- artificial substantially down customers using produce from million repair increasing should be hundreds so a is intelligence can are a standpoint, much and we really a terms at from for is use complexity the that a capability vehicle and One, this there's level staff year the you estimate. and with in to speed, and of pretty variations, that to And finding the XXX started cases have substantial to a line in a go terms of of people sending all own what So, way at when out reducing collect it, photos, their that

the tools significant consumer you after these a having dramatically because with are the of a it So, that, on of claim but deal speed only experience impact this. can which improves not also

we So see. that's really what

For place. though us, rollout I this even there we we've a take call, September, that continue in of from a scale, terms that XX, and And of again, it's claims. for and the scale CCC, with when increases as see at my as still And Estimate-STP out basis months, XX to rollouts very nicely. January is Estimate-STP overall the we increases very, the in increases, roll the look revenue that seen revenue, number. as commensurate increase On those an a year, small mentioned as number to in very multiple next

about driver revenue this can clients, we for also for very what strongly us. and a do excited will are be our So, it we believe

about dig of kind guide to just coming follow-up think big my software NDR, year, you the of see you last for maybe we drove the renewals can how the from do Brian, into NDR that clear. compare tough know range. that? Particularly Very of of the for sort I flowing what in and sort it. sort you. Great but Got And the that XXX% given continue at software ebbing quarters? don't to

Yes. absolutely. Yes,

XXX% So, levels that about posted in we historical feel been you more historical XXX%, XXX%. the versus quarter. have good When the look levels, of at we that

three the see for the solutions losses. fee digital total solutions do our The on tax trend that from the highlight underpin some contribution I traction. that good digital really growth things continued and feeling we One, mobile, Engage, AI, strong So, and of metric. would

the So number. that's playing certainly through

continued about about think that growth coming our you base. away in piece repair go as metric, you we'll trending higher still guidance expansion the off large We is also XX% also although in our our was go-forward QX. And the I upsell is that the see QX, at facilities. part position, our of strength historical -- will is the third that levels. in renewals over And of time, it's then about but But for the see tapering would existing give is than the from installed --

should that growth in you long equation. that you give of term, quarter-to-quarter, think overall that so, the how a about flex but a And will bit about over the think NDR view to

guys. Thanks helpful. very it, Got

The ISI. next from Materne go Kirk question of Evercore Please comes ahead.

following go Or once proof sort very to integrating to maybe higher? business at see Is for opportunities state-by-state sort And steady Or existing start their a Saket's think from into not basis? it little get a challenge we they question. more rate When is as has on adoption? of business it perspective your do bit them nice push concept, of on a STP the of of place for to you is take exponential? sense a it up Githesh, a that sort something process sort kind just much. this to sort there Thanks. a you by bit can little much linear. happen adoption Thank trying their the of a how all processes? on about I'm it adoption are customers, how a of of maybe of of

Yes.

tuned. would and tuning be needs carrier on that standpoint all, to first the go hundreds an There state. literally It we actually AI And more need hundreds every state in of parameters to there terms with X of of from to are has of work like unique tuning. terms in So we by unique and tuning. have is them how the is do

platform it plug entire across you once our across out literally can roll So, this we all in, our geographies.

It systems CCC issue. our their all with technology When our integrated several It's almost platform not And years and deeply a using are into mobile our our relatively are a ago, rolled out not is training mobile we systems. capabilities. customers the it's customers So, issue. because quick.

the X mobile then In consumer That to channel. fact, that coming has from takes mobile to a link, industry the the AI gone of sent pictures, literally are all work. starts consumers means adoption in claims mobile the of into XX%

the for is consumers. built already part already of -- so are we funnel So, that

workflow, entire the to quarter, the it. excited three more Last that this so, we've help, more to adjustments comfortable operating see XX And why of are And process some what added we had and does does with is there that And customers. we're so the it's That's already people customers. is in Kirk? process, getting place.

sort was there this remind just trying Yes, terms And are that's a big adoption it's get you on period to on just very us, get escalators not I of that. to of basically a built committed is up? was uplift seven gating of sense pricing into as years. whether but can of inflation contracts, contract like sort if over-to-over maybe for any there volume-based? helpful. there quarter, sort of see general, obviously, renewal Or so a to CCC factors trying it customers of to just Yes, your sense in specifically, I contract there's is. any are this goes still great, in Brian, pricing a of just the just

Yes.

we tuning. a it's good strategic always our So, I are question. looking at mean pricing and

So, look we're solution to and many value then clients. bringing look to our at clients, value we're that packaging. the our sure look like we'll us we'll SaaS getting the back make for We'll for providers, to at appropriate driving

doing we as historically. on continuing that look so, a back we're have way our say in just And inflationary We're nothing of the pricing strategic to at I'd challenges. there's new

So that's would it. the way I leave

you. Thank great. That’s

Radke ahead. question Please Tyler from Citi. next The comes go of

large morning. Are as contracts? timing your things the products? independently? on look that of Thank a expecting remind some out renewals step up just renewal to just And pipeline within XX catalyst to to follow you XXXX? look more them kind just then on you based typically months, the next over Or take happen how wanted on you does us, do relative of to the you. are large Can of expansions renewal. the Good I up questions insurance for around carriers, these the

you'll take I'll take the the if part, one. first second Brian,

So, when really foremost, components additional whether -- and or we not, not. is solutions renewing the add of so are look whether or our of people at you first contract independent

to new already -- Estimate-STP -- the clients as So, because an those is example, we solutions added of bring the that as can board, what can comes in were place any regardless be platform solutions contract the on. on XX

take do those opportunity renew several for an we at Now both when and us, adding interestingly as do enough, next things there's customer of additional look functionality. people place, in terms the when for years the and

out do unusual want not to is So, other having that to there solutions rolling have. I you would Brian, additional contract about we say a take link extensions, anything And the part?

broader look mean, broader a to -- will a We'll do renewal. I will opportunities the that be just our some would mean expand I sell catalyst different we bundle in ways. No, Yes. at reiterate same the point. a and be bundle. into I renewal

to As these and a a and drive an won't there add schedule Githesh be -- just extend within product said, sometimes we a a extensions renewal. product will will contract, existing Others be renewal. driver

adding of ways. So, both pipeline, they we kind next deals renewing year. with feel key the and of about in different as work we in product at into all new we opportunities capabilities front our look go we us, have When really good

about good upsell where cross-sell, we really the cadence opportunities. we renewal So, and sit and feel with our clients the

for of customers our decades. several And worked with us remember, many have

strong question. retention the hiring with high perspective, just environment? about at you aware year? growth in about you attrition Brian, definitely Have noticed for worse less kind the or No, you any to thinking typically attrition the thinking I for employee relative senior maybe for peers? next you hiring How into are CCC expense are better growth the the the level think from has that of can that relationships an I the Yes. headcount and changes certainly and here? the for just how second see environment time. churn had over And

Yes.

our and strategic come our part, innovation back start I'll as we'll strategic mean well. second, maybe agenda. -- underpin and investment extremely with the would we and add to on hiring remain our I Githesh really both I'll funding let the So, balancing to I focused

we very that at progression. margin focused focused so, remain on And time, on the same

capacity I remarks on we forward. And we also seeing about have a that staff to XX% going the as margin fortunate and to progress both. we see margins, this XX% hiring. So, our saw drive need margin XX% year-to-date funding in put very and year We that we because can we're model, business good we highlighted efficient also can We months are in to added our in that a initiatives see of that the the from strategic over do progress moved we basis. time. prepared

the So to that's fund capacity adding necessary starting the are innovation. to show we

dynamic anything in changing seeing not are dramatic or We hiring. from

We are retention. that hires the our in seeing to We're attrition managing and to high key good continue churn make and also able teams low we need.

and feel anything need having we next know set good for we we us capacity Githesh don't overall, to the We both So term. as skill to long we feel at... add are. the year set into up where go I good the that and

low increase specific add important, just we've areas. I very that But continues. that to and of historically, that, had areas really is most XX% I'd the capacity coming vast would churn, the look, say two two majority

out as have and well in engineering We're management. full we we AI have as continuing these to developers, we as where into First capabilities. engineering, talent stack where add products foremost, roll top product

few recruiting, of to that's the across easier say the would And and able becomes our we're that’s in So, recruit of little last I months. majority vast a if anything, geographies.

you. Thank Great.

Prestopino ahead. Research. go of Barrington Please Gary The next question comes from

that side, I Good you all. -- Githesh, out repair on with this, to Estimate-STP work with side, are there, must on Estimate-STP, are really have insurers sign are ask this this, want products have that up that insurance STP the maybe to morning as offering the wherever. you adjacent to wanted maybe Thank you. just there for

So, this growth it that you product? just adds from to the potential foresee

yes. is answer the Gary,

In we fact, when really of important concept is straight-through or the processing. the STP establish at to broader Estimate-STP look

workflows of capabilities other facets can deep customers. apply where intelligence already in artificial has many-many the with and that implications So we're process claims the on since we

the types Engage with all of consumer, working various engaging are we're adding -- so the way in our repair from various repair from facilities of that the we to repair facilities. of product So, that's components facilities

going there. work over we on see So,

subrogation on going done work have We ranging everything acquisitions. we in from had where

example of excited opportunity but you're at and adjacency. remain we entire is so impact, of our try, test, in loss, the So significant We've base. right first people see a about that on notice processing exactly across going this another that's as an customer got use work straight-through why broader

one just Brian. a good That's hear. Great. quick then to And for

million had in $X revenue. nonrecurring the directly With contribution have that kind revenue. looked of that that, about would you last EBITDA? that a said Is you I of was it to of most that's deal correct? X% flown of down QX, so year And at

Yes. That's right, Gary.

points QX, So last the year, we out at we and called nonrecurring in two impact it of had time.

that profit. seen flow it So -- the through in you've gross and our way through. did flow And all

profit in gross at and So QX But last of was part flow-through. year yes, XX%. slightly correctly. that of was you're elevated the -- looking And at that

a Okay. guys. of Thanks lot,

with from next Arvind comes go Please Piper Ramnani question The Sandler. ahead.

about thanks I my wanted around macro. question. so have been kind CCC, but a a of had company, Hi, of view to tough periods you take some you during a shorter little ask of on It's bit. broker the they've

I in 'XX. -- impact? environment, remains walk things your anticipate you if in the percentages -- And maybe on us of some you than the some can business through this just different So, tough, a assuming you but the the What headwinds macro these prior, macro from of know business? macro are are

little a a can think of up couple I thoughts macro bit, but the give I broke you Arvind, you on environment.

And you're so right. foremost, and first dead

We several have of through environments. been various decades

market. ONE the really with heavily consumers, the XXXX XXXX, what And during we web-based in capabilities. our our mobile of we AI That the heavily and invested other invested of is build in need out dramatically ways almost XXXX, solutions COVID different insurance led our -- platform. the to today. really building generates of dot-com crash the out the with adoption in to half a and which customers we revenues saw connecting And and investment XXXX to example, crisis, CCC during For actually and roll for financial then then

the that view we have customers why us continue a with our all that's allows through a we've to from close that understanding keep so advanced we but close of how challenges relationships And really -- And gives and heart. that us And environment So, this, of to all learned we a having is solutions. lessons lot learned an we've history through And financial have these weather various to history build continue cycles. those and very continue the maintain we with they working environments. this operated said, to we closely. monitor dealing of to of with model the pretty actually very efficient all

it persistent sense business? Like does your you Perfect. recessionary appreciate it in if the And impact follow-up, in up And headwind a can you? or ways like for your in what you if macro to end does benefit what But ways the how environment, business, benefit ask I I macro like yes, does does perspective. that a a right? core

when fundamental deep down our look insurance when do the Yes. you we look When fundamental that what auto at. businesses, really is nature business, at you our to the a you thing is -- is is product, clients' And at you customers' look people that mandatory look and mission-critical. -- have the of route that --

So, to is people insurance continue auto mandatory. drive,

accidents While go to -- to levels. -- up, continues be go prices claim volume to be the continues up continue pre-COVID from so gradually

that in and a which the discretionary. environment, is sure there's our rooted an So, not business an answer that much fact industry but is I'm not deeper

It's thing Brian. Yes. add. one just other to Maybe

our revenue It's at very It predictable. look also is You model. resilient. very

have it's We majority and vast the is reoccurring. based, subscription

when to kind the about well have you think environment. macro that And about you so, as think of

That’s great. you. Thank

ahead. Funk Michael of Bank comes The from from Instructions] Please next question [Operator go America.

elongation But cycle your the you economic the the understand of resiliency customers? business I seeing sales behavior or about in Think purchasing change are amongst sensitivity. of any a model.

Nothing seeing. we're material that

I one if then Okay. maybe more, And could. just

about be the target of base? will developing that to How thinking solutions into NDR, there. Just solution much existing versus penetration longer-term longer term, sell by your new driven

it's Brian. Michael, Yes. take I'll that.

we've come as about that of Within we've highlighted new installed go our so will from laid from we've highlighted our yes, cross-sell, to So about we that XX% forward the logos. XX% it. long-term XX% base model, XX%, out growth upsell, of

will the talking more newer half come of from we've the will these that been other established from So, half that solutions. And come about. initiatives

the STP, So, it's the the Diagnostics, Estimate-STP.

these will from digital half about solutions. it of So, newer come

you. Thank great. That’s

questions I concludes Ramamurthy This to closing turn the Githesh conference to back would more line. over phone no the are for the question-and-answer There remarks. from like any session.

Well, today. thanks, everybody, for joining us

strategic We our thank customers, remain confident are proud our interest. in and on we to operational like our of our deliver and, durability model for to And ability XXXX of We objectives. I'd customers. which continues CCC our shareholders. we performance to to our business for our in and continue to team through the And of our members date course, look innovation efficiency as financial colleagues, team makes deliver come our out ourselves. CCC And if very on early every members your forward to talking quarter thank single day fourth to behalf a Thank and for with CCC you on our big much for and our a sooner. my of call customers in thank great all not you all And place who for March, shout you again, continued you.

This call. conference today's concludes

a You and may disconnect your pleasant lines. participating, you Thank for day. have