CCC Intelligent Solutions (CCCS) 1 Mar 232022 Q4 Earnings call transcript

Thank you for standing by. And welcome to CCC Intelligence Solutions Fourth Quarter and Fiscal 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session. [Operator Instructions]

to Bill call Warmington. like President, to now Relations, Investor would hand over the Vice I Please ahead. go

Good afternoon. which And close to the review thank release of you for fourth press XXXX joining the quarter market financial following results, issued we today. in CCC’s announced the us today

Chairman me Joining CCC’s the Brian and are call CEO; on Herb, Ramamurthy, Githesh and CCC’s CFO.

on discussed Investor heading These risks the the XXXX the make today plans XX-K risks materially. are in and of subject in with to results actual Factors company’s about website earnings plans cause may annual and the releases company’s we and under today the statements available to that forward-looking implementation The the results on Form uncertainties SEC. are filed our and report our Relations the Risk vary

or follows use and and Further, CCC reproduction Solutions violation Holdings these other comments retransmission prohibited States in the Any Q&A of laws. of or of same without Intelligent a the copyright the or copyrighted by United or profit prior recording consent otherwise Incorporated. CCC other is today are that for

for Additionally, that that while the publishing responsibility call by appear of may approved a third-party, we transcript. take no transcript of in we a have this inaccuracies

to Please and Relations non-GAAP in and earnings website. The defined Investor the condition to A company’s the information to by measures available investors call company measures financial and note of the relating financial is on release non-GAAP regarding financial our believes includes of discussion management today’s trends available results GAAP business reconciliation financial the that useful is our operations. provide SEC. on certain certain measures as these non-GAAP

the now I to will you. over call And Thank turn Githesh.

of another year of complete and today. Bill, record for another to pleased delivered top to in Thank thanks us all XXXX. report strong quarter and you, performance CCC that bottomline joining to I am you

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

was XXXX of year-over-year, high Revenue XXXX year for Adjusted XXXX the range million compounded twice year above our for the and $XXX full initial EBITDA guidance than a adjusted $XXX end X% end annual for EBITDA million, guidance of the our million, above full of was X% range. XX%. up of growth the high $XXX our XXXX rate initial more XX%

to performance for the business strong reflects our believe our economy nature and insurance we as We we non-discretionary deliver P&C continue serve of and the innovation operational of the durability efficiency customers. both our

our performance on adjusted full year in trajectory, in Based the and EBITDA XXXX, will confidence the for revenue walk we first growth quarter guidance XXXX are Brian providing through. and our which and

you, and to CCC’s with important like industry-leading platform. I’d topics our on three innovation growth, discuss AI Today, focus

facilities. customers and Our challenge to labor collision challenges. at difficult severe repair continue technicians insurers with at repair a shortage a Once is claims face adjusters operating of multiple environment a

chain supply used parts Another challenge parts. prices, affecting prices, issues across cost, well medical new availability as is as and inflation rates, the labor vehicle of

the diagnostic as that of as fix, the and growing scans can and of hours of labor increasing number to add on vehicles and to now sensors You parts that more well vehicles. the complexity recalibration require themselves cameras

consumer simultaneously up to The consumer require gone less, more for XX for headwind solutions vehicle improving currently, a to in get with our a time weeks average repaired to These an are XXXX from weeks about experience. to to about find which ways four them customers. after important do The accident has their satisfaction. while challenges real

operational capabilities our a suite solutions of efficiency to leverage broader CCC more solutions. CCC’s and in To seamlessly AI deliver a these experience integrated increasingly for are their These customers. interconnected a problems customers way, solve adopting holistic network and

at We than solutions touching claims with our more before. ever more solutions customers scale, are to delivering

example, Our CCC XXXX the processed using insurance customers, in more XX-year solutions any claims for company’s in history. other than year in

claims or of year-over-year insurance more our by AI processed applications doubled using CCC’s four customers of number in The XXXX.

also our direct based During renewed top QX, one we insurers a for of five-year certain XX premium extension. on

numerous additional CCC saw added also products their QX time. the including solutions successes solutions to of clients customers, existing insurance existing for to casualty first who delivering several portfolio

in customer of year with growth in our opportunities XXXX, biggest group ending network. over XX,XXX our remains insurers. rooftops over repair one facility added with We in Casualty our X,XXX the repair facilities

number customer incremental group. drivers were new our delivered growth to we also of In important for solutions, of which rooftops, a facility addition repair

QX, example, platform bring operator locations. additional multi-store operations fleet our collision, to or MSO, for with relationship expanded standardization looking we an for XXX paint In a the and across leading

in In Diagnostics. average is facility has example of An annual repair an XXXX. by addition, per the using shops number growth of our or revenue more continue solution four since solutions XX% that we can increased believe emerging

XX% scanned Today, repairs are through with solutions only CCC. about integrated being of industry

adoption As we for $XXX could revenue million $XX opportunity million a to Diagnostics believe increases, CCC. become

group over suppliers parts has parts now X,XXX customer Our network. in its

repair about still XXXX. to from adoption ordering, for electronic facilities of early in but the parts XXXX adoption industry in quickly. in network of ordered about XX% the growing that parts are in increased We electronically volume The CCC is stages XX% by

believe attractive parts opportunity. is growth to We continue an

identify like key to second we can customers a I’d our in their talk improve performance. continually operational we the help factor to Innovation, you about today additional been ways how topic has

Each leads new to of decisions. insurance hundreds claim

the decision more Our goal is efficiency our solutions points clients and develop that help more life to new to cycle. in claims insurance greater bring

over is successful. billion that development foundational the capital not we XX $X which R&D over made past just invested to years. But success, our it’s CCC’s have product in has why Innovation is efforts

innovation organization a I to believe an three basis. on sustained needs produce things

with The first, customers. relationships is close

Before understand that. we to customer’s solve our problems, we can need

and advisory an level, consulting a spend business semiannual both to customers trying projects, time of including face industry We company-specific lot they challenges councils. quarterly the at our with understand reviews,

XX a a of intimacy is the Promoter in Net increased to NPS. XX drives in relationships the national part which retention year XX% declined industry-leading believe our points. of CCC’s what customer X NPS XXXX, from our dollar average or gross and NPS Score We

For than context, times the about X XX an software XX% than industry average of the higher X.X times and of higher about industry insurance is of NPS average NPS XX%.

The problems. second a customer’s an produce technology to innovation develop on can needs we address is thing to organization and solutions which our deliver platform

that Our enables with products to releases and multi-tenant over deliver cloud year effectively. XX.XX% is per X,XXX highly uptime architecture cost well us quickly and new new scalable

application the the enabled has over artificial decade investment to significant development build capabilities. of intelligence R&D and sizable us a past lead Our in

element that innovation. strong culture focused The a is customer third emphasizes

in Our we quartile Score. CCC is achieve Promoter engagement and strong Net for survey I a in place XXXX results that important the component believe an top how employee

We product are product our management. in especially development culture expanding focused by on world-class innovation and organization the adding across talent

years. staff introduced continue month we working came around for in XXXX, five talent. engineering and as about an XXXX, attract to The view our grew our one-third XX% by capacity we disruption in confirmation technology us the current opportunity During is revenue is products innovation of the that about strategy last from best-in-class that to the in markets our

in the and industry-leading key than data AI a platform our final today of trillion has of XX building third is have requirement across AI large put massive we models to where spend last accident with our portion years. topic $X related processed our The is discuss A and sets I’d scale over significant you like R&D data more been network.

real-world to been recruit industrial that You talent, able the grade have which the insurance opportunity best changing people the economy on we operates. find, also applications retain do to AI need commercial and we are offer how to because auto work

clients faster. help we As sets increasingly decisions result, our are solution make AI a across using to our

a of million customers capabilities, XXX-plus claims processed have total for XXXX. XXXX advanced times increased level CCC’s AI XX% are a at processing with XXX AI computer our year-over-year vision over insurance of over XX Today, the CCC solution been using X claims of application unique using of AI actively powered and

going are insurance better as adoption towards moves even are solutions. to AI forward early the solutions P&C the experiences. still for We Straight-Through These for and efficiency economy operating in greater poised cycle drive adoption consumer Processing driven increasingly

XX% September priority that them. example, insurance high is for implementing Straight-Through Processing of in a respondents In for executives a over stated survey XXX XXXX, of

In late touchless industries auto complete AI-powered generate auto a can estimate estimating solution we AI human strength insurance qualified without first introduced a in on XXXX, industrial seconds solution, the claim Estimate-STP. repair This repairable intervention.

their of to Volumes of are new We and in auto as the representing insurers growing announced November small insurers, up technology. of top since a overall remain first seven the quickly, including carriers, XX over signed align leverage the processes but U.S. volume. our still fraction volumes claims internal XXXX XX% XX claim have customer

for important that speed driven for significant so it is Estimate-STP of for broader much of is AI auto adoption an improves consumer customers adoption the the point that solutions Processing is CCC reason across insurance Another economy. our experience and proof and Straight-Through

these and Increasingly, a network collision participants, more. CCC’s of and large is and lenders, combination a to of interconnected growing our rely and intelligence including solutions complex interconnected our artificial repair number OEMs on new deliver suppliers, results. network insurers, facilities, includes part

connected of of participants all processes of across supporting to commerce. customers their and than $XXX millions our customers, network tens over XX,XXX billion for Last generating more year, value our mission-critical of

the the auto great transformation is our way enabler digital CCC’s We to of address they network for a rapidly increasing face. complexity that believe customers interconnected an essential insurance and economies,

saying Let by our of accomplished are proud in team we XXXX. conclude me that incredibly what

about we planned for objectives. our on continue excited are ability in confident deliver what have we remain and We to and strategic financial our XXXX to

to through turn who over Brian, now the results. will you will I call walk our

Thanks, Githesh.

numbers, million, period. turn $XXX.X fiscal and we revenue the was results guidance review and and revenue from for the to year XXXX million, Total Total fiscal As for XXXX. for up quarter the quarter fourth provide XXXX. up first XXXX our then like XX% now I’d X% the fourth year prior full $XXX was from the year quarter to

in as financial that investment our our newer XX solutions billion years, that’s plus the investment performance. to from innovation returns in Githesh seeing last our are been made R&D we contribute $X over

from growth for several came example, revenue the confirming taking innovation years, our of one-third hold. is our Approximately in that XXXX, past around introduced solutions strategy in

X into like loss. base, including Approximately revenue continued client around in upsell our cross-sell total points digital driven our growth of QX installed of solutions and and by was mobile, Engage adoption our solutions

logos, of fully signed fourth second domestic. suppliers. QX through the part that growth new we impact. in from was our have noting large half expansion came was mostly the in points percentage repair from X revenue worth XX% as of There contribution the that is and XXXX, shops no quarter lapped incremental growth in An deals Also

That XX%. retention software period. the turning and XXXX. or base from GDR our retained revenue Now is of all compared quarter In with GDR key amount prior consistent metrics, our QX and of gross XXXX, the to was year client the dollar captures to last

believe benefits our value software network. GDR CCC broader from the participating significant and customers that We accrue the strong our the reflects we provide in to

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

Software movements well as XXX%. and as customers the physical net captures the of client software was upsell amount dollar cross-sell retention our In or prior compared QX from to NDR base. existing period, our year damage NDR, volume in auto XXXX,

to points points point total call. percentage X we in on X XXXX as the casualty, included calculation, NDR offset last note One revenue, QX, revenue year-end to of been earnings true-ups. the and volume have referencing prior headwind about QX had parts growth in the in that not normal from our from contribution such of This we

statement Now I to detail. in the income more will move

As a non-GAAP release. we all in otherwise of a our are metrics to reconciliation reminder, GAAP provided press and have non-GAAP unless noted,

Adjusted year, million, fourth an XX%. revenue in of quarter the margin profit of down profit in with adjusted XXXX. last QX higher $XXX which was gross That’s the from included benefit quarter the XX% of in gross non-recurring

target of in against from fiscal and operating slightly with deliver profit an in year XXXX. fiscal being leverage XX% our to of our was margin gross XX%, profit We XX%. feel of the long-term good $XXX XXXX gross scalability year Adjusted million, and the able adjusted about down the business

fiscal lesser year-over-year. Adjusted In growth now was a expenses, terms largely X% year-over-year. expense QX in million, and expense driven normalized. headcount year by up expenses In operating were recovering million, operating to spend X% mostly adjusted XXXX have $XX.X that these was $XXX.X other XXXX in travel extent, of in discretionary addition up QX, and

agenda. capacity including pleased XX%. development are we progress month to capacity operational to key feel and We to strategic staff innovation. product point, deliver innovation market and execute in we to are product added strong by both continue across increasing capabilities our and headcount the positions new the We company, ongoing a for the the approximately our with against On advance position made

$XXX.X XX.X%. for full adjusted EBITDA XX% up last This adjusted year an plus is of of margin quarter the of year-over-year EBITDA Adjusted XX%. with for Adjusted million, an and up an XXX and improvement XXXX margin over the XXX-basis-point was three EBITDA of year was EBITDA $XX.X margin basis the X% million, increase year-over-year points years. another

and Now end sheet $XXX net quarter cash quarter, turning to the cash the of EBITDA. balance with adjusted times the equivalents $XXX in and ended debt. our approximately At cash of and flow, the we million leverage X.X was million

Free quarter prior cash was flow flow $XX year to cash was compared $XXX for fiscal Free million million, XXXX. in fiscal compared year the the to year million the million, $XX.X period. in $XX.X XXXX in

cash converted flow. XXXX, fiscal year the our unlevered we approximately EBITDA adjusted of free XX% For into

headquarters determination of unlevered free end, have is mid-XXs for with rate results. been which for the cash would the the in the lease build-out flow If full real adjusted you a cap, at estate and of year the buyout consistent completion XXXX, and year our adjust range interest historical

to finish million. like guidance. I’d X% This we to to represents Beginning $XXX revenue year-over-year million quarter $XXX of the expect growth. XXXX, first with total of X% with

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

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

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

year quarter as points guidance. about mind to and think in Three our keep you full first

XXXX Diagnostics being largest in the about this The in of contributor do a expect set be XXXX. X to growth our point emerging solutions of contributor. We more solutions with significant first contributed is

The internal to in second of that XXXX we margin point be by EBITDA the and expect events. expenses clients is of adjusted first reset the and constrained employee-related half multiple

the place we benefit than XXXX expect in did of the from we as year-over-year continued higher the leverage and operating of second half to the most lap second progression half take in of business. We margin in the we XXXX

The we while ambitions, third is margin. innovation towards long-term growth investing continue at same target to the adjusted mid-XXs will point of in EBITDA our that focus to progressing support time our on

confidence of our help business. experience. decision-making, overall the our accuracy and puts the Overall, cost and combination of of underlying AI guidance our our a their operations speed reflects position network momentum our to The advanced their efficiency us support the interconnected customer improve unique in their in capabilities customers, across and

some goal believe package we shop our across that repair on light We many had includes casualty in set. have solutions solution upsells. have This shots we time, the market and for

as in And solutions well that and Estimate-STP mobile as solutions Engage, few past set such our contributing of have years new subrogation. that are like launched as Diagnostics, and emerging growth the to

in is digitization for to term. the both to need across long well durable growth positioned drive and P&C economy CCC and insurance in revenue profitability The continues near- accelerate and the

expanding deliver to ability EBITDA our growth margins our the revenue into in X% organic confident adjusted are XX% and against to target long-term We of mid-XXs.

on for strategic and our we shareholders. value both priorities, we to As execute customers will generate we believe significant continue our our

that, Operator, questions. ready take Thank are we to With you. now

[Operator comes from of Goldman Thank Borges Our Sachs. of line Instructions] first you. the question Gabriela

is open, Gabriela. Your line

Hi. This the on [ph] Gabriela. is Kelly quarter. Congrats on for

conversations one been for Payments the First focus how going? from Payments. perspective progressing to and one talked a just is is about of areas is you repair How me customer carrier technical within facility your as

the Thanks say for going well. that joining. I conversations would are

on line. echo in see. to We some are Hold continuing there the is

of We getting of repair, a to only in carrier complexity not there. see there’s a are continuing amount interest the fair to lot really

excited about that. are people So

applications, that generate finding also and are expect We will coming so it’s solutions along. revenue our broader Payment we

is And are in as with trended progress just there difference Is you subrogation? the relative and of a how expectations? initial any follow-up, kind spend how that Thank product approaching with that Hey. go-to-market your how then you. has to

Sure.

we on things front. have three the So done subrogation

the First some acquisition. in and the architecture terms from platform upgraded technology have we substantially foremost, of and underpinnings of

development actually that so at scale. that we work So that -- is work complete execute can

well. that’s really gone So

are The pilots, capability, with The early is product terms in of well. expansion, going going customers integration conversations well. those

direction, well the -- of the about So we as part as good integrate offering. a our work-to-done to work-to-date to feel key be subrogation strategic

Thank you.

Becker comes Blair. Our the from William Dylan question of next line of

Dylan. please, question Your

Hi. Dylan. and you but on guys the know relatively Faiza This rollout penetration. typical touched that elaborate the is [ph] low for you overall large what on Estimate-STP, you customers, I the on like as a journey can like looks there’s share of have but DWP

the that realization So towards how of are driving greater share thinking wallet value you over guys time? ramp

Yeah.

developing. So solution here’s how how we the is itself --

delivered early product November to As the we in with these you how started see of we years and recall, test who R&D after XXXX of it many, wanted and many capabilities we said, customers works. working

that are ramp we seeing follows ways. what really And really particular the is three

this test of So again, because capability, the accuracy, first, for the kind. its people first solution is,

a fair a people So commitment, before are willing make take time. to can amount that of testing

excited today the have as today out, So we of are -- XX. XX our of seven of including, pointed top truly selected as you that customers

feel comfortable to in thing once second out start The people very geographies. the solution it do they is rolling limited with

people the start it as states out then one about more state start and might make And or states. people -- XX three all in So in two rolling states. adjustments, get comfortable, or

AI. of and have thoughtful careful terms in been Estimate-STP qualify we very for which very and Third, claims the

to Estimate-STP of increase the to third gradually to more this more step claims. and so And as to claims have what applies that -- is now go qualified through the start percentage thing

and if hope answered not and we platform, your terms view customers time design many have making start that decisions very many with adoption metrics, many, the -- but very other for really fundamental. question. of it’s people as you products three over wins, in different expand that are from the where we out very, three years would, I over ways those seen So to adoption continue really then on early the and

Thank was lanes aspects you can And and that [ph] how kind That about No. overall the switching complexity your equation? and takes piece the helpful. from differs then of talk that on here, claims super the what follow-up a other to lane and that build of cut out medical structure opportunity data of you. just business broader it

Sure.

delivering auto been call one five in casualty We have in say, almost for, and decade in, a roughly casualty it, claim. one roughly results now claims a solutions

in or an happens between amount a So linkage results claim. casualty an what medical -- there’s a in fair what and auto of plane auto

solutions workflow a third-party, solutions which we couple the policyholder other car on a the is of consumers, of a review, to side. for medical number insurance or which company So both have bill of first-party, in with number claimant mobile first-party, of is the of work the solutions, directly the

starting several a So have we fair -- casualty number the platforms is about what customers these to now and customers, last adopting more we only built XX metric XXX solutions. of we customers the as have and to also see R&D that have insurance upgrading a amount we keep over and over One casualty benefit of now. capability of we mind years there of while in are and in spent solutions have

So that’s the significant. as opportunity why growth we view

you. Thank

question of Our Funk from America. go ahead, Michael. Bank comes of Michael next of Please the line

I question could. couple the for tonight. you Thank if Yeah. A

change plans or your So first in level, for customers? high activity from a spending any

we attribute to really to that Look, a things. as the vehicle address to with handful material carefully are One, inflation, and we monitoring And complexity, talked labor directly the would address very, solutions these have is deliver our mission-critical. I deal seen part macro efficiencies we and a address we change of shortage, solutions. not what really operational about, environment very of

We the days, is other ROI think customers days can -- thing the degree tight. literally we And these or can our XX deploy get and that to the helps can XX that impact very some XX solution for a solutions see I is in days.

multiyear it of platform. require forklift So a upgrade does not big

functionality customer’s and rolling deep platforms since also already training into into and Third, terms easier people, of systems, is it additional are our to we in deploy out. integrated

thing the those would are this seen any situation the helping. is carefully, mission-critical but most we is, not single But and important I changes. are have material monitoring think So things say I

you STP, you. And forward? script, potential incorporating your But Thank AI, maybe strong in mentioned can for you opportunity talk longer to-date, about you Great. data market AI looking example. set, quantifying your more term the then earlier broadly the there adoption obviously, massive for

Yeah.

of the actually We across artificial is the have But you that because specific has of not one Estimate-STP quantified this actually one done most the markets publicly are thing are and the taking applications like. is intelligence, spatial Board. vehicle, car what to vehicle, damage pictures damaged, structure different the pickup the the understanding color three trucks the cars, dimensional of combination, parts around the and complex

first think a dealing extraordinary Straight-Through go us our So level neural bigger many, by layers complexity and artificial of you of also feel much be that complexity, credibility really of to it with and this it’s many of customers a build. That that an Processing… to we to given requires lot with intelligence. is we application able what broader And networks deploying solution is and

Yeah.

Trade-Through Like Process.

go Sorry, ahead.

No. Apologies. No. off. cut am sorry, I you No. I

Yeah.

So Straight-Through broader application. much, much is a Processing

Straight-Through repair, with send from, ordering, subrogate, routing, think which subrogate, what it do to applies when to So first, salvage. this claims I I to to to to about not to claims the parts report a what scheduling, way Processing, vehicle we which you do claim, should do everything

areas, the paint intelligence the car, complex repair you might plus in technician, And because those then for applies this on parts, extensively, we techniques, car artificial this repair a very, broad have range. any across have time. so procedures, AI it seeing first think car might side, But particular particular you XX,XXX very repair first applies seeing might a be -- the be as for damage may applies a

already of second, AI that to allows continue is inside is line rev in and in. So we sure models; the workflow set data two to good that things; one, our the of hundreds make us are really deploy it that heart really

you No. questions. Thank for the

joining. for you Thank

Thank you.

of Sandler. comes Arvind next the Our line Ramnani of Piper question from

Arvind. please, question Your

you the the question. I margin ask just years. the are and bps With are some mean, lies to XXX that of over talking efforts past of an and I kind several double year bps of sense about of roughly my you in expansion it wanted making, taking investments for kind expansion make to you of AI like, XXX margin about this on Thanks the Hi. making that am trying of front to kind just said, opportunity investments automation you regard? understanding would I just I -- get this that in and of

Maybe Yeah. we it with Brian me again. and parts two jump handle will in

take will of the Arvind. I kind So first part of your question,

of I enormous over do AI done the at -- So build spent the think heart we decade have last it, capability. is core what

build ability to to models nets that the to and means AI and learning. a with actually everything That of build lot talent -- to neural models, and people, doctors ability with models, and from machine ability the right, rev the deploy

cases. lot So doing we of of terms AI a use we of to capabilities number those built feel we fairly applying and a judicious have are what is being in

of my I the of we in one things, XX. Promoter earlier mentioned Score as have And Net call, a

get a means what you Net to and you to of very about you be the of and XX, quality it the if Promoter speed deliver judicious So adoption. to have rate Score of

is or AI opportunity secular of because this see we many deployed years, as certain there’s but you a be Board, the many, invest at the money rate So which a across wasted. the will

and we being So want Brian, prudent. if to you very jump are very in. balanced

super balanced on remain focused I a Yeah. I mean approach. echo just would point. we Githesh’s

operational both. we innovation, and do in can same time, efficiency, believe we at and investing So the driving

referenced of of you At points or basis about on adding several we made XX% the into product and highlighted $X past about R&D. headcount we years. you over mean, the talked improvement putting We focused time, development. I capacity the same points made XXX billion

can investment in margins capabilities. and significant in we same long-term AI to business move time, do our So we continue At of put to continue the believe the drive progress to targets mid-XXs. margins a the really and both, the

the that, ChatGPT think, is one generative guess data XXXX. until like the is available I sort of about that is Perfect. ChatGPT limitations talking everyone’s of I And AI. kind mean, I rates, available of that only But and

inflation Your automobile like I real repair getting is more shops time, a the like in the repair and and stuff. data about of right, and lot more of kind some of kind delay talked

Your a three how time. it? data talk kind between real is a or it generative any AI? about gets real commonalities it of bit or time and differences able like months kind day Are every is is little updated time updated lot to of Is still as more you it real it like

Yeah. I this really one take most the your will some question is are in questions and two customers fundamental of our parts of asking. actually

In fact, example, the of one things will one. your had actually customer this just at week one I you and just was office becomes data last key if and in we look relevant a think for pick the point extraordinarily I point,

goes down goes up. then increased last has and sometimes up cars so. and then used almost in it sometimes of goes back price XX% it by The the XX or months up, significantly It goes

So with month-to-month same thing pricing week-to-week, used parts on literally on. a change prices car basis, so might and

one is supply scale we transactional given of day, the any chain the of benefits have is through network on information flowing estimates, a So massive. that repairs, data

that and the currency which build with uptime that at model, AI how learned to releases did software releases. can you We we rev network of this over X,XXX and you software if XX.XX%. or even model, an speed maintained do a last So year

rev can had literally a So with of the do models we basis. the AI to monthly same and some thing on we

that have of this models, element Drift manage. Some AI important updated. only also and rev called of you update these there’s to an do And gets not

models monitoring So real-time, Drift what which with and model the was that AI also seeing are difference are between is in governs your Drift practical your is -- initial and and seeing updated. frequency the what you

power capabilities the So set. take to all deploy enormous scale ability a and of especially amount across and time, customer large compute these of

critical. right. you So are we That absolutely think is currency

about second on it and are of cetera. goes in the technology your and lot a relies and Even data the sense. it’s it ChatGPT, excited public the data if from of domain question part data, today data, of lot makes pieces probably -- actually of et deploy ChatGPT then And where we will some we web regarding quite and that’s the public

we But real-time basis Does are in the in that see sets you that Arvind, of data actually terms much of unless deep are a changing data this you that about on deep don’t are very talking and questions? set. help, of middle the these transactions, the

dramatically … be a little prices real-time. more are down, an environment you in than mean data more said, that I to up Process moving, I think where and past. in seems relevant bit like, consume in even and the

a lost we Arvind, for seconds. few you Yeah.

you know had didn’t I a a question comment. So whether or

I a No. lot because where saying realize you environment becomes a so your just more solution up relevant and it get a just lot was data. this in Oh! makes and to real-time me can moving more compelling use was are helpful, No. more it is that solution prices down that it

just… just saying was I So it

Yeah.

Thanks.

Thanks.

Thank you.

Our Jefferies. of next Kelley David question comes from the line of

please, Your question David.

Good our talk location guys, at, about and relationship guess, end seems that could a quarters. afternoon, a XXX my I bit add-on announced the for to like you from thanks for you Hi. I expansion hoping question. additions, was taking nice more MSO

at consolidate back customers for how to the think and tend we impactful level? you, repair those about sector curious their continue So expansion those be facility particularly step to MSO contract as

Yeah. Brian. David, it’s Yeah.

of our certainly the MSO those meaningful a relationships out. part and we continue build we So are to business

If our on metrics of you new the at and step kind logos. look back

the per have relationships And new about that. as really and expansion MSOs X,XXX to where five good back look year forward. we going about adding been well as we have and years, the those we feel contributed of go that’s certainly you If rooftops

it bleed onboarding we that the into year and million into signed it we didn’t year, feel really in repair into next will the because necessarily new this XXXX facilities be the our about the end but year. talked we much adding $XXX The of play about cadence part logo continuing the and of of at shops will year growth good kind a of X,XXX

XXXX. think, Brian, year, next by And you I meant

sorry, I XXXX. Yeah. am yeah,

XXXX and driver on we massive it. vehicle be, demand emerging emerging it, color seeing Diagnostics super growth should call again you vehicle will are appreciate the then expect let’s contribution, Got we Diagnostics that Okay. the like, Diagnostics. for helpful. in clearly, I That’s guess the solutions level within leading and of evolution, mentioned. And ramp

CCC customer to hearing kind adopt are from they solution sort what of speak Diagnostic you you NIM could and looking to adopt of quickly how solution, to just appetite So set? the are that

Yeah.

what’s foremost, is the mix broken, redone. of scan as need come what what understand to last changes, the sensors cars really kind a that any last over been years and some vehicle first have so sensors So, require or several be almost are the to decade happening that, in

So scans typically, increasing. after, before and that has place so the take been

of a it market by integration requires been are a and it, And of to there’s of how so and consumer of we the way we did process. done that a lot in to because bring safety level inconsistencies require scans to was have what order capabilities to bring manufacturers lot order those tried and

are going what And percentage of with not a through that Diagnostic amount big I said, scans published Diagnostics, low going we the number. platform relatively know don’t still the if, repairs through a of of our still amount have but number. Brian, is

But level that a of has are CCC level Diagnostics integrating the across it seeing seamless integration. most on of providers what we provided Board popular into transparency and is the a by

So of out marketplace. years. the are next nicely will several grow the a as bringing to that see this over element to continue Diagnostics very But of much broader one we do solutions we again, think we portfolio

Thank you.

from comes Chris. question line of Chris Moore of the ahead, Securities. next go CJS Please Our

Hey. question. Good evening, Thanks the guys. for taking

was helpful, very to model. CCC the get a on trying the was the First, of just a you minutes fascinating, conversation better real-time few that just little handle ago had -- evolution

at you logo, more new XX% roughly upsell, XX% been that have one-third, like coming from this two-third. historically talked cross-sell, about So growth stage,

it’s will current within over time that that XX% that there? or something the change mature a mix within could just more relatively likely is of more newer level kind products versus So change the

Yeah. Chris, Yeah. it’s Brian.

a the new You will move in are saw That put right? against we that out. moving The direction. and that logo So and from XX% the logo have that we have progress happening two-third to and installed shift shift new is XX% metrics our in upsell XXXX metrics, of base those we to one-third and cross-sell. continue upsell, cross-sell, to

solutions solutions the about you have said have XX% been existing We that half and cross-sell, given of we from will over to further these have Diagnostics, upsell the market newer and into will from emerging half as down past base the come brought as the that growth for color subrogation. as in several Estimate-STP such we of recently years that come market more break the time of and have such

build So over newer meaningful time. a of set that from out we these have will do solutions, we think will impact but

have may late. came follow-up, little a And my Helpful. you on but it. bit Brian, I maybe touched on this, Got

free in at you the kind went for for talk flow XXXX. cash through all expectations XXXX, You dynamics of the terms of did

an adjusted specifically we talked XXXX. unlevered basis, in I about on No. are EBITDA at XX% if adjusted EBITDA look free XXXX. of I guide that into flow our didn’t cash cash you conversion to converting about

historical going There is to about adjustments benchmark is which the cash you mid-XXs forward three with and to if normalize you gets performance. were it think as out, good metric. conversion to it consistent That a it our low modeling mid-XXs, as a using

there. it leave will I Appreciate Perfect. it.

you. Thank

Chris. you, Thank

Our next Barclays. the Saket. Kalia ahead, question comes of of Saket go Please from line

with what to Great. Does I piece Okay. see sale. CCC of general taking type on are a of portfolio of questions damage sense? mentioned, it couple between for these is calls, was you cross-sell? of see casualty you my are Githesh, And casualty. customer, XX question great casualty well. if they of for who guys. the here. kind casualty, remind asked. type the that type maybe make of can you, you just increase was were When auto Hey, using apologies Thanks And wondering think sort that if to a in it a insurance right? I customers the displacing of you commentary that of us, in so rate using all But was course, could physical usually that run that as cross-sell Jumping

and will part Yeah. take second your question. of the have first Brian take the will your I Sure. part question I of Saket

our question of solutions First solutions your part of is casualty that, exist. are what that -- when don’t some

you press the many to industry and these with had our where mobile example, those handle to we mobile are engage the client capability on the I things, allows directly of this with and consumer that For our like a type release capability new capabilities. thing think

solutions. be there might different -- providers casualty multiple Certain are capabilities, of we

don’t providers. where, go what we against multiple and might into we So players, go generally up and the there who but different again, the and specifics of are

And the we real capabilities are the platform, differentiation our analytic integration the bring. is single a those into capabilities,

Brian, impact I to that if it want In addition the and you and up comment. terms and does, of pick think, dollars

Yeah. Sure.

But clients total XX% So, it of Saket, take clients on our about dependent just the can Those about kind and really clearly, in casualty. casualty our carrier magnitude. really insurance in on from a be revenue, at a today APD sizing level, macro perspective, XX% the just are size revenue. same solutions will be the size they what of of of our

So like really that opportunity as for to the base. APD our and client you size casualty move the more up of think provides about is them look of

way that’s out there’s XX% opportunity in so best probably And and of the overall balance time for to those about casualty. as the over sizing opportunity revenue think

thought with from differently. this the kind versus helpful. really think, on the earlier XX-XX ask on maybe That’s a you, will for just I Brian, maybe you new. growth of But it. little I Got just existing Yeah. question touched

net will anything open it As yeah, ended I XXXX, expectations, to you just note dollar there. retention look keep to on and I mean,

back going over are of seeing it’s again, this I total and to revenue. look progress. time, the, mean, it’s XX% been more more I like to like Yeah. we I’d historically, think, go two-third,

look cross-sell, you XX%, XX%, at XX% XXXX more we from If results, are upsell. like

go progression continue as So again and it’s that into XXXX. that will showing we that

the X% use then full will of give if NDR you and the year to at can the you rough look you to those at kind those it that frame way out to guide into So for relative ratios metrics, and a look impact XXXX. can of X%

At the like closing to call back for you. time, I’d over this Githesh Thank remarks. to Sir? turn Ramamurthy

for customers, shareholders great our Thank CCC to I XXXX. and team members us and joining for like a you our would all today our thank

solutions. The on and our investing and to ability are our our of we about We durability and planned while we to deliver excited for come in model our in what confident objectives remain to strategic business XXXX. continues through financial have future customers we helping behalf my in in all if interest to Thank first early again so you do we of continued sooner. your at May quarter, look and your forward not you for talking On our CCC, CCC. when trust colleagues much

for call. you conference participating. Thank today’s concludes This

now disconnect. You may