CCC Intelligent Solutions (CCCS) 2 May 232023 Q1 Earnings call transcript

Good day, and thank you for standing by. Welcome to the CCC Intelligent Solutions First Quarter 2023 Earnings Call. [Operator Instructions] Please be advised that today's conference is being recorded.

I would like to hand the conference over to your speaker today, Bill Warmington, Vice President of Investor Relations. Please go ahead.

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

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

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

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

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

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

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

you Thank you, of for us joining today. and Bill, to thanks all

results, and predictability report quarter delivered another reflecting our profitability of to of strong bottom top pleased business. CCC the that and I'm line

margin also up range, and EBITDA was and our million, XX% The revenue adjusted of of $XXX range. guidance EBITDA CCC's total ahead $XX.X was of year-over-year Adjusted our ahead our XXXX, million, was XX%. first quarter guidance

highlight three performance. themes to I'd call, today's our that like On underpin

The CCC's business durable model. is first

second The growing a third CCC solutions. And innovation. is is adoption of

model. business durable our First,

insurance the powerful Our increasingly accelerating rising manage expectations. the on are through two and operational the consumer complexity clients P&C focused megatrends; in to economy need business

$XXX Last United indemnity or and on year, raising known handle expense about consumer those claims out complexity spent and administrative even over auto in as billion in loss $XX are expenses States operational billion further. paid LAE. the to insurers expectations those costs claims Increasing adjustment

inflation, through to efficiency At our solutions tools while by help industry-leading AI simultaneously CCC, customer regulatory supply We our chain do industry interconnected changes. this focused shortages, focus increase on and and we are on overcoming leverage satisfaction and developing developing clients issues from that new labor our specifically network. headwinds innovation,

main that sheer drivers of of cars, as systems a on the ADAS known or of the introduction the operational growing parts increasing themselves, is the expansion of sophistication complexity vehicles or One whether of advanced electric vehicles EVs. is of number assistance the driver

period. repair or and XX% an to parts to average during leverage increase contributing rising systems Repairing in repair a modules of labor calibration and XXXX as has cost complexity and costs. automatic services, braking and lane departure total in range XXXX factor be typically more well vehicle $X,XXX to from as to wide loss in cameras. major hours been diagnostic Increasing continues more requires ADAS these of the $X,XXX warnings per a growth and from this array sensors in

to change. needing even become the manage vehicles sophisticated insurance P&C tools anticipate increasingly As we this intricate, more economy

X%. XXXX, with becoming XXXX, sales. new almost less consumers. car percentage a operation, U.S. While EVs of are very In still In EVs in cars they the are increasingly of road, on of less X% than vehicles small were were than popular X% they

is XXXX Unfortunately, the higher the average than in XX% an EV average total cost of non-EVs. repair for for

While growth helping claims long-term we and the this XXXX, processed total by and anticipate the the CCC number are small, our claims customers in of something currently causes quite is are in address. X% about increased only EV complexity it

not digitizing expect good be have their that is today our at challenge meet leading Growing all only standard interactions for claims customers our have our the simplified, streamlining to that the customers enables expectations standard available the digital, fast, high face. across is highly hours. and companies complexity consumer-facing those Consumers set to empathetic journey. The personalized, AI commercial by news technology essentially interactions CCC's lives. and this P&C The met

claims Whether to a on that auto photos help are injury resolving their CCC experiences. deliver our CCC survey, of a booking CCC enabling is key them appointment digitized instantly are digital According deploying XX% policyholders a solutions the enabler of claim via even a or an solutions phone, And to repair submission an digitally, customers claim process. shift. prefer that these of

a with commitment with where years, brings economy, been began of several product, valuations, than driver you intelligence. repair parts to A has today facilities, insurance innovation. more. to the business, the CCC This lenders to to pillar which today discuss me group, powers suppliers, across has including CCC's cloud innovation. artificial the point that operations sold one has mission-critical that to a customer a I'd And more the XX,XXX fundamental point expansion second OEMs, major last insurers, been vehicle single of and for the insurers, companies like P&C innovation grown of our

Underpinning historical data CCC are for auto innovations technology, AI have $X trillion than scale. cutting-edge embedded workflows these To customers direct of as but tangible date, these seamlessly customers million impact to just our generating learning deep claims enable that over solution, more a using been real-world not deeply well as revenue our deploy processed advances significant for XX at CCC. and

addressing our the in key AI our of process, is customers. Safekeep's Safekeep last subrogation a to of example point of continuously workflows streamline commitment the One for and scope year. AI-enabled technology our our expanding acquisition to February pain innovations uses automated insurance

other $X billion attempted from in at for a dollars companies claims, are of process. claim. expenses manual fault of over insurers billions process in parties is recover dollars affects and to estimated a It highly administrative of cost annually the and time-intensive tens who is Subrogation insurance

Digitizing for extension network vision plans additional subrogation is using in insurance industry's CCC and lines This, insurers outside benefits to address turn, the the cloud creates straight-through of of of of a natural auto. into processing. extends CCC

will solutions already the CCC's have take opportunities time have that acquisition with the spent advantage the in insurance into CCC to to of place. have CCC direct so this We they since than integrating Safekeep the more customers the XXX capability cloud, tie-ins

product pleased results very customer solution of made engagement the with We are have real-world functionality expand and significant investments level by Safekeep's the delivered and to today.

computer applications throughout We facilities substantial product repair business uses in across to semantic casualty AI make for process. as repair in consumer CRM and our the AI that vision respond are well facilities, as solution also ongoing entire CCC industry-leading to to sort repair including investments help new Update enhancements our line, continuing queries Plus, the to

months significant XX million ending over by million e-mail sent XXXX, have consumers XXXX. March a the XX the XX messages to unique from been messages million and consumers, sent XX by million over increase to In XX text in Update Plus

applying the existing about by excited CCC remain industry-leading embedded digitize economy AI workflows P&C We highly opportunity the long-term connected the to insurance tremendously across to network.

a and CCC adoption solutions. of growing My third is point final

our estimate a line will system The AI-based that can repair seconds. level I a in qualified cover Estimate-STP, prepopulate complete first is on solution claim

geographies onboard XXXX. March number vehicle Estimate-STP more by volumes than claim value total claims types. in activating processed The Estimate-STP as of we by was continues more This auto claims processed and run grow March to of customers categories, our collision and $X through existing as annualized customers new rate The XXXX over run billion. in increase XXx is rate their of

encouraging. is X% damage of customers towards the auto annual Estimate-STP less moving rate still is this at than While current are our volume, which claim physical very

and of we verified continue scanned Diagnostics, to being the network grow platform. volume vehicles our both our on In

The quarter running CCC's was of the first service a ran X,XXX than partners. facilities XXXX. XXXX, diagnostic of facilities more of repair through This scans quarter in of number about twice the first one scan repair

XXXX, XXXX. quarter were million network, on CCC double in first the scanned volume verified X.X the In more the than of quarter over of vehicles the first

to of and between this improve scans calibrations repairers insurers. solution As designed transparency help reminder, a consistency and and is

appointments allowing repair facilities insurers XX,XXX from solution to repair consumers accident. estimate already direct our to enables an This Engage, request calls repair facilities month scheduling to been schedule estimates for facilitating month participating in consumers process consumers repair with facilities, have phone by which photos. online and every integrated online turn, who CCC by leads eliminating XX,XXX in is, currently is per for using generating

facilities' to estimate, customers' estimators the eliminates to obtain The improve drive reduces insurers for initial the helps interruptions repair the facility an experience. need online the consumer for to process and their physically repair

cross-selling time. both opportunities where We for repair increased more per in insurance has We repair our facility during highlighted customers over across continue and to the our of facility XX% increased repair customers. solutions the since momentum or number using four see And XXXX. has average facilities revenue adoption product previously XX% that

We insurance amount manage believe very solutions payouts, hundreds insurance or about market. adoption are of points on expenditures, the that about to way revenue On continued expanded basis digitization emerging of to a XX a these carriers focus share a our insurers solutions costs. is percentage in provides side, the to spend path CCC's aggregate billions of than look of X.X% think revenue including the by Today, and less claim overall. a and LAE. insurers annual of from indemnity TAM Yet the to growing on dollars growing of relation small at CCC's represents our helping X%

to about in on planned that objectives. continue deliver conclude me and remain we saying our ability have financial by strategic excited for we XXXX and what to our are confident Let

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

Githesh. Thanks,

key traction cycles. business that in we good innovation highlighted, throughout in are adoption and solutions component Githesh is growing our of supported model efficient, economic investment and by our operational business and A drive both us enables our scalable seeing by efficiency highly also financial the As durable to innovation customers. predictable of the balance

turn we results XXXX. second the full numbers, our and I'd As first year now quarter provide XXXX review to to quarter then for guidance like the and

QX was quarter the the installed our digital points first client up $XXX.X revenue prior shop including repair driven XX% upsell of by packages growth and of our upsell for was and in million, other Approximately across year the solutions period. continued cross-sell, adoption X base, from and of adoption mobile of revenue Total solutions.

Estimate-STP. and Within points, we X An than from more want of logos, mainly casualty X point X mostly saw QX about to from I incremental facilities suppliers. new and repair our point the growth points in of solutions, that also Diagnostics volumes. parts emerging came X from came highlight growth

our turning metrics. Now key to

captures client Software gross and GDR, base retained to is revenue QX consistent XXXX, the from the network. compared was This all software reflects we prior our dollar our or XXXX. CCC from retention, participating value In customers our benefits amount the of to with We strong accrue provide XX%. believe GDR significant that period. of broader the GDR in the year

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

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

to in more move I'll income the detail. statement Now

release. to XXXX. all quarter unless non-GAAP margin down we XX%. GAAP As $XXX.X of noted, profit Adjusted gross metrics and the profit from Adjusted non-GAAP, a first are in press the million. was of XX% gross was in otherwise was quarter a This provide in our reminder, reconciliation

and expense still to released gross scaling. from The capitalized margin the revenue feel the projects while these in stages gross lower our the higher the we the against associated deliver the recently of adjusted XX%. and about profit of model operating our solutions ability scalability are of from target leverage early depreciation primarily profit emerging long-term to adjusted Overall, market, reflects good business

were by of year. driven in QX these half XXXX $XX.X last XX% expenses, additions in expense year-over-year. in that up terms Growth second the onboarded expenses operating was In million, headcount of largely was adjusted

million, We headcount advance pleased our both position operational development. continue are are the like Adjusted $XX.X Regarding product made year-over-year, strategic innovation margin was market adds, with into for the against we capabilities quarter in to EBITDA EBITDA the our was execute and deliver to and the X% adjusted agenda. we and a progress capacity to new feel for up ongoing strong XX%.

our million At net with $XXX the turning and of quarter, in end and the We debt. Unlevered the X.Xx Now was the adjusted prior balance Free to the leverage cash XX% period. quarter in was million $XX free sheet flow. ended flow cash $XXX EBITDA. cash quarter of in million about adjusted million equivalents was cash and compared approximately in cash QX year flow million $XX.X the EBITDA. our $XX.X to of or

seasonally payments, QX flow of the because cash is would free of these mid-XXs unlevered normalize cash in lowest the our low QX flow to for incentives. be When annual quarter our payment range. you free

of level low on items, seasonality or should quarter-to-quarter based cash phasing to to can average our onetime vary the mid-XXs time. While it over free flow out or

I'd like in guidance beginning finish the of XXXX. to quarter with second

We expect X% million to growth. to year-over-year total $XXX.X represents revenue $XXX.X This between X% million.

in We to $XX.X EBITDA EBITDA of adjusted expect a adjusted million, million represents XX% margin $XX.X which QX.

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

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

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

about The for deliver year. to the feel position ability our first is that good our we

benefit While see trend factoring we to some we in this not of volumes from through incremental balance are did casualty QX, to the the year. related higher continue

the long-term subscription business the and low durable our revenue of visibility raised in our the on have provides that contracts. momentum guidance good end to the based model We

to second by which expenses second adds. QX, as step we customer year point is be margins year-over-year effect the in expect of will The annual that conference annual impacted low the headcount in the from half seasonal EBITDA payroll HX adjusted point our step-up, last and the up such

related the migration private cost from million Also dual-running cloud. of hosting we nonrecurring, have to public approximately to in $X QX,

about lap of headcount taking ramp XXXX adjusted we year-over-year the leverage to we with expansion EBIT business. benefit most second XX%, continued of last the expect the and For to increase half of margins in the operating year overall, from place year's as the

reflects help combination our in of guidance many emerging network across the capabilities for customers our our overall released business. advanced improve quality us includes our well new solutions speed the to consumer and have unique The of our their decision-making, strength interconnected we in as our shots a the underlying puts of we've the on the in set in that the had believe of recently efficiency solutions Overall, the confidence of AI the that market to This years of our position experience. We solution as market. sets. goal we've operations

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

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

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

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

of first Our comes Michael Instructions] question America. of from line Bank the [Operator of Funk

line Your open. now is

help quantifying growth, you much. well very if Diagnostics and and us you about, all Githesh, that A you in could again and for for demand increase though revenue link Diagnostic, you Estimate-STP, have as Estimate-STP Xx to for Thank and increased commentary then us. growth? example the think quantification, and couple modeling you thank I that adoption for Can for through about for the

your think, we should in point, DWP impacting in think And So, that about after demand growth trajectory, how then does seen the all? low as growth impact piece an we've I in of insurance revenue if in potentially that growth a for a How increase revenue U.S. multipart that across at final question, accelerates. 'XX. or

two-tenths roughly, it question. somewhere reasons this stat one call small are middle in I part we very our DWP lower, everything Hi, your at given the think I've the of we've revenue thanks beginning first. the is really of for the where now spend or entire of take that slightly I'll as the closely And question has and last of of to spend And percentage that correlates has continued DWP. solutions to and more spend, added a increase, even else. X% CCC gone though as actually

So years heart even has partly everything in at the say because are else. is about deliver the inflation almost we compared we of three, continuing That very of good last four three ago. really the it dollars feel - managing that's dollars managing years, and the increased solutions, doubled we're to more very, to, because

you that so primarily doesn't vary our - subscription as is subscription-based, it Now know, much. model really revenue

more But the modeling, couple a actual and I'll the claims and need on Brian over so for Estimate-STP other to significantly of solutions modeling. to on of of And turn components comments components of of it manage the terms question. insurance then of increases in last on kind before I piece Diagnostics make that's your

delivered thing of the than the today. year's are you November solution macro in time and we we of So a less where if last at March is to that Estimate-STP, look from in XXXX, year

We're product the still number going through, at CCC Brian run an relative annualized of has $X through billion will and and modeling. repair very, estimates very of to small you walk rate That overall. -

very we So with same good and and continuing thing Diagnostics. to adoption about We're nice very uptake. see feel a customers then

solutions Diagnostics of Our verification, lot after. the scans clarity, provide a the and of in middle process upfront

to I'll turn the any if want Michael. over Brian, you, So modeling you to questions it hit for of

of emerging Thanks, Michael, Githesh. subrogation sure. we look at We talk kind payment. when we about Estimate-STP. Diagnostics, put the Hi Yes, so solutions,

out and about we're going the key So XX% is logos said, that the our clients. into from our fit several we've coming from existing we've The are coming solutions growth of revenue way emerging to long-term of modeled XX% for those solutions. see it growth, new

come cohort will Half solutions. of emerging of in further it for and half had products from new - market several from will then years, we set broke it that And of come the we've XX% down and it of this that out growth.

for growth and we of point rate the guide impact to think where one we had way over long-term of about solutions. I today run the for to the on on moving the think emerging the that of emerging points three growth are as guide. that's based mentioned long-term a that's you kind the solutions, four so QX, So of about to

color Thank so great much. you guys. That's

Yes, absolutely.

Thanks Michael.

for hold Please please. you. Thank moment next One question. our

question comes Barclays. the Saket from Our next line of of Kalia

Your line is now open.

Okay hi here. taking Brian, great. question thanks Githesh, for my Hi

Saket. Hi

that Githesh, if the click little with bit in can It just a script. business. just I casualty mentioned a was we you, to more bit was could the maybe wonder on a you there take little revenue? just maybe Hi wondering, big think start I double percentage the of we drivers just how roughly the how sort of of about at more stab importantly, do as And of couple is next over a growth years?

Saket. give kind you overall I'll Sure, of thoughts. some

So claim means physical a when with you damage. claims, roughly a physical associated auto look on casualty which auto in then results either one spend five five. out - dollar it, is in every medical one of what the and every with tolling Yet vehicle, on the the damage, after a auto auto claim medical so at casualty claim spent roughly is call vehicle FX repairing of in cost a exposure, line

kind overall So similar dollar-for-dollar, numbers. is it approaching very of

So it's numbers. sizable

this for life significant doing that insights a happens, in in that of of terms - upfront auto auto claim an of and a look that for out an has - our for that from including for that part claim number work what and the out we of the the is accident there's we've why a bearing downstream paid the been collision, AI a right of of sense So accident, number you -- come claim. business that lot decisions physics photos at when is when are of us makes it of some

of through you itself are hence, accomplish five. though to to even the claims like straight-through lends one processing, in it things And many casualty would

that a pay, at around precision hits and a physics macro you is very at Another things, how rigor done. of scientific as the what inflation casualty look that how other is the really being more point amount look substantial the accident, you scientific of and you work accident, there's

are States our of a customers our the number you customers at United that. in base, casualty product. for small very that carriers customers look are insurance physical of damage customer auto fraction roughly is when the And business XXX our in The

we casualty. expand So to therefore, continue ability see the to in

would of have did we're Over anything the casualty core or your platform last invested capabilities, questions? customers. starting benefits three-plus answer we itself in years, in substantially the Brian, from add to you want the and that see its to Saket, to terms platform that

point. add would Yes. just I one data

about our I specifically Saket size scale, business asked the at same we of It's be APD XX% Saket. If today. revenue business the it million time. could have a is think $XXX today, share over market

my particularly dynamics about it. just question, helpful, I could maybe on a was and got for the guys. all very talk it, Brian, That's if year follow-up, slightly we for the margin different Got just wondering QX.

you sounded I the you like apologies missed - specifically dual some think it mentioned number, QX? mentioned in costs I if exact but

those right, you - sounded think margin the trend we sort expansion to costs? of just talk you of in like kind going hosting just dual Can Can are how about as the it second about particular half? in

margin there's, Saket. happy Yes QX, look look position. Yes, we so of things happening when the you the QX couple to, at a at when

is first a onboarded meaningful hiring the plan of part year second last half. our The we in

half the that into of are So second through get seeing begin run the we'll the margin to we year, as lap year. half of this we first and that pressure

pressure QX. in So that's putting

seasonal step-up happening that's some have so the also points, We payroll in is one QX.

that do dual annual it's related point, third our in customer running cloud have through about is conference nonrecurring the we alluded $X also one-off cost, million, the have well. which migration. then as and this We you And we highlighted and quarter plays to to,

So one some caused is the to from about that's another, in driving which costs, moving onetime cloud quarter. we're $X million and provider

of the half do and through. expansion. all the get So year, are those see then to running We we second

the full we're about forecasting And and XX% we full year. half, get in and expansion out modeling a the for so margin to second we're year

to expansion QX putting we kind through in performance into the from points XX half how pressure. that's headwinds it So second And that's QX have of we see of those year. do for plays the where then some

guys. it. Very helpful, Got Thanks.

Saket. Thanks

from of comes Kirk ISI. Our of the Evercore next Materne question line

Your line open. is

of is the you talk of few democratization realize we've and AI in the But congrats perhaps much, I that's a seen of your at over couple it last STP? products? conversations. any topic start terms sort months. your just the creating was greater projects Or Githesh, of I sense of AI-driven can very wave sort guys you from the wondering month a ahead of for like and Thanks just you have it Is on and maybe how the been products a take the had weeks? we've look quarter. about you that could pipeline maybe investigating urgency of to the if to that's influencing for of helping boom pilot impacting that discussions customers your Thanks. talk about how the

Yes. actually awareness, much Kirk, so for as trend AI visibility, more a AI. would paper in increasing that It general, is say or about you positive us. there that can't around the literally is is, and I can article macro open a is press general, without in point, reading very an

and And -- trillion As and we look been not and models historical you a models. at enormous right? is advantages have about that data you very we in, couple much core know, for nine have driven years seven, hundreds of an building of depth of amount at the sophisticated comes $X if data of almost daily of by if this

real-time of basis, coming through. On of data literally daily millions and a hundreds in we're hundreds dollars seeing of

one loops and line us is is the for the really would thing that enormously feedback powerful. that more it models helpful super I say that the are existing is appreciate workflows. other our appreciate for I in in we So clients

in works. separately. and applying integrated AI it existing paths seamlessly is it workflows, So we very way We're AI the are not so applying existing the into

are year for for customers comprehensive seeing three board to is We've to we vehicle states, And components, we added they're also that on more geographies. what markets, really add some customers expanding -- more where continuing more types. brought we're more additional a So customers. dimensions pilots, the

the press nice market. very this were else customers. is of and cause it's so in we're to And the see We terms and see now actually helpful actually and It's early the everything so actually it exciting -- the around. very to process, in market to

trend. the earlier back want? over you terms half on definitely the for Brian. in additions just play guess Was on relative are guys ramp keep are additions how any on the margin that you of guess, plan headcount just with year? course I one follow-up of the that we of you, your what the in quick should You kind the are headcount there Brian, anything year, then And track in on I of for just is will the year. there -- to into where mind

Yes, absolutely. Yes.

had we it So and the was some in of year, play the that half last catch-up year. put we to headcount weighted second

to continuing we nothing are heads, call that, distort Beyond add to but the phasing. quarterly would significant out that any of

just we forward. go as of kind normal see we progress So

QX, in XX% year. and we XX% expansion us in guiding the see the full to pressure second half some then in margin half, the for about we're get Again, we're the but highlighting to to the margin second

consistent So with our operational those plan and our hiring is assumptions. plan

please. Thank next for our moment, question. you. Please One hold

of the Jefferies. Our of Samana Samad next line question comes from

open. is line Your

topic Hi, and Estimate-STP AI evening. follow-up powered the usage a is term? where provider? And little why just does bit wanted costs more. part my that maybe taking increasing products explore question. maybe I I a the think other short different about AI, so that by cloud changing to think of in And about question And side. you're a for flow I good to the on the how that that the had are into reason dramatically? should Thanks we as

Samad, CCC. first welcome to of all,

for first Thank your call. this you joining. think I is

you get better. forward know to you look really to working to and We with continuing all

Great.

I annualized of rate, -- billion still So -- it last year been March less first Estimate-STP even increase $XXX than basis, rate, run we to expansion about and substantial, mentioned, It's an going the less in X%. foremost, XXx though on the annualized is -- in component talked run million from again, processing the as from a has than still from $X this year.

did been small but we path deploying to so I we're say -- work and super it, between a me of So exciting about it, lots any enormous very have the really and would and in significant the what that -- not customers confidence way comfort the we're a still it's it's -- getting. lots -- and is growth, us the number, feedback some of gives testing way, that piloting done our it, customers, on the and see

was that. moved that on our the provider. to and took feel your provider hosting we about small hosting Relative costs, from the component small of a of we really one did we're to good we another So in very to hosting quarter question what doing -- a component

there's a dollars the a and little parallel couple over that quarter, quarter. be should in So of this running million

the really, your answer Did Samad? question, are dots not So connected. that two

Absolutely. having type the of an it? sellers And change maybe appreciate cycle just think how organization thoroughness. that that of that nature element a the of are you type from And evolutionary standpoint going sell have? to about technical or -- of how nature versus more the with seller and the how that to that how it sales I the they're company have or about of today? the does the sales Does to you you thinking does the solutions then increasingly market today seller the have maybe

Sure.

with technology an operational to So -- we them. first What operational amount -- cover a of really it, customer of our improve full that period and At a very long a we're time, of customers. foremost, us the ROI been we our are excellence, have really complement all behind all have a and them while solutions we associated things delivering to people have for heart two the of with and it. performance for ability deep deep

So of time, in we've a years. business very in of performance literally the period last ROI delivering XX-plus short and been operational over the

So core needed. deliver added improvement that engineering, development, as that product changed. where other have more from It's our and sales we operational But absolutely specialists engineering to needed, components. augmentation ability ROI, product hasn't and

major and a really lift not it's So for us. shift

question. our moment, for hold Please you. Thank One next please.

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

open. now is line Your

guys to Maybe, congrats. Hi, going too. and thanks AI piece, Githesh, the back

in time a lot investing spent You guys capabilities. have of R&D

data how I resources. think differentiated to would set. massive that You've you love about got allocating understand

light deeper of the base, and of As the dark slide broader going well. go STP expanding back to versus, in or customer but I of right, address more like today, capabilities as to for of we kind IPO, kind out guys segment able of again, those think blue segments AI obviously, kind and the core so across ecosystem ecosystem, had that being integrations the you workflows in customer customer think blue about stakeholders potential

wider. versus deeper maybe So

yes. Dylan,

decade of we've time days So early this were long to if very we to really you a to -- learned is when CUDA the where from our amount almost AI models the over have expertise at last really of graphics ago buying NVIDIA an are look very of a we the heart what build built basically engines deep extraordinary build today. we doing

effects, this super would for algorithm either we more also we've a learned a So this. the order there's helpful look terms about developed confidence can level? built a super traditional be confidence of of we this our super say, for would Being that. all side accuracy super a also or have level? at is the around set and problem where is what levels. What's and lot helpful in customers. governance drift core second transparent really AI important be What about And of capabilities of Meaning effects to is

across of of business. models of stack. any capable the have AI quickly that facet and learning is in also can tech seamlessly our our So deployed be and tech people sure building to make the across had our AI models now the in we our talent done of stack What capability, we've engineering a substantial we've and terms core amount

using Estimate-STP, you We great AI using ordering. applied be at where Engage, about example of if talked about will look AI. subrogation. there. where we're AI parts models AI talked we're to Symantec using So We for subrogation

different the sure -- our classic that of vertical so stack keep of they're AI newer also to as AI. every so we've emerging And that we actually our call, and our can I'd one tech using we at enhancing our which problems, solutions, and some what as well deploy made solutions ability so classic the speed products,

loss, to even applying simple the a total we're repair that to example, between and AI ability a For process. decide

And helpful, super yes. lot there. of a That's it. Got optionality obviously,

as switch It that if to opportunity side. Maybe we there's of over and couple So very drivers Diagnostics exciting a on encouraging. well. the like seems

the could of So scan like post should beneficial it for and kind just opportunity or kind all connected maybe repair well. capabilities vehicles. in-process upgrade like I obviously, maybe how between centers only of to calibrations, different the about more as more they But importance kind the for of drivers scanning mean as thinking the think layer pure the of seems cycle, about not business vehicle the we career to the be opportunity different ways Because there's a tied X. to but that and these there's also

Yes.

this, about right complexity. of of dead vehicle at the this really increasing because is heart all You're

sometimes complex, middle So at vehicle the to newer what the happens need and is end. the in become vehicles come sometimes more in, at the and vehicles beginning, scan the

the reset. what what exactly with So you is car, know be wrong needs to

you component. So becomes continues new as car a as to extraordinarily part scanning the repairing get in, park that's important out, keep to car start accurately. an pointed a of coming And cars rightfully newer,

other and completed these it's the process carrier, capabilities, that between that's that a transparency the facility, scan a ability very to is was to of calibrations. that provides through extends also important that very so the prescan, provides that the on of all repair the standardized unique there's our that now it the element provider, transparency car, complete that actually element a and solution verify One is because then postscan,

actually our have fantastic the of partners then, solutions. wonderful course, And scanning into we at the are partners providing who as connectivity we this. have And been mentioned,

think as have that I QX literally days prepared And from of still of so we it's number doubling early mentioned this remarks, scans I With said, of terms in year. in year a my the we QX scanning. of -- seen have of to last

question. hold next Please moment, One for you. please. Thank our

CJS the question of Moore of line Our comes Securities. next from Chris

now is open. line Your

of for couple Thanks taking a guys. evening, good Hi, questions.

terms So I way thought or that's guys it. think the cost going kind up, XX Understanding that to the total a there conversation -- that not XX claims is in points it basis of could that you the process. mean going point basis keep metric is interesting to on was I that of at part this be basis of look someday, about? XX target of really

have that is connect Chris, we joining. a We TAM when really thanks documents, The laid way for target. is don't we've to this we out public this in think why you this our less And about that what it than and TAM today, basis this confident points connect confidence available. TAM. get you gives when a XX we that multibillion to is remain what about enormous the the dollar us is the in

by products wanted a to just as of But products our basis that And built, the kind are consumed customers, the subscription-based. mostly they're way our share so point. are we way our

sizable of So another just was it way here. there opportunity saying is a

a my Got focused maybe less it. the on follow-up, fundamentally stock. more And little or

So guys your on anniversary public. X-year are you since going coming up

Obviously, there of an is not on incentives added the target management into future would My wanted it incentives $XX how you've longer-term important Given sponsor price delivered to and is longer-term worth things a prices. fundamentals, float relatively you'd discussing rewarded just were by equity thinking they just hear volatility and of like your But and that and focus thought small kind stock your stock management the moves understanding beyond. be impacted kind is ultimately for back of there. there. the I stock as could earnout shares, the be be some teens

Sure.

have done act when drives really we that believe things One we've like, stock leadership wanted the team just great that's our to actually always as significant options owning in equity and not of owners, having and terms the ownership, is and that what always of been grants and about we ownership behavior.

that to to public, rate run two on from later. quarters been growth eight where last $XXX the -- We've at are look first quarters just of XXXX annualized today, right, revenue you literally XXXX one-third million. we've years added about eight quarter we if going basis, in So a roughly

million about flow We have in by that delivered of $XXX increased we've cash half, and earnings time additional frame.

our things, the very operational the And -- flow a float and are very orientation. continue this remember, will our have many we the of these our And we I've the for of long long leadership deliver period are think customers, been a we way we about stock. value to leaders, power we we for performance. about through So very top your we on execute. employees, and our team, creating long-term all provided at good have time. And think the we our We run, the that is feel point over

up would very general, what yes, I so day-to-day, end about stock it's think where predict bullish say to actually And do. people we is feel we'll in hard as to the going

I I appreciate there. it. it will helpful. Very leave

Thank you, Chris.

moment stand our Thank for next you. question. One by. Please

question of next Our from Tyler line comes Citi. Radke the of

Your line is now open.

good And taking Hi, thanks for the question. evening.

monetization increased you vehicles You take some if script, presumably, repair claim on prices, terms about, are focused vehicles. maybe seeing points you you're are electric rates, behavior obviously, is if common higher share your product given shops of ticket in likely dealing what in rate. Githesh, was that the so most get customer the mentioned there I in a electric with on wondering any they better -- increase What better just uptake, of terms more road. in just on could data

the you that's any comments what impacting of company on customers. at Just just those see fundamentals of kind on based how your

or say great Tyler, X Yes. on points. have maybe to the X you would call. I

we're of still sold even corresponds base in is only only vehicles First, X%. what sales actually literally to roughly what becoming installed vehicles the X% seeing is of though year that were X% is seeing we're translating, that EVs, last is all that of

have are non-EVs, XX% making a the is have deal around But higher. than accurate on that diagnostics EVs those all earlier, disengaged electrics, higher more is so become you or you vehicles or those like rail different cost repair disable average how the you complexity of little the vehicle really repair important. cut weld, subsystems was procedures things additional a my I things an voltage of to for become point where and today the which to XXX-volt When and with ability important, for voltage

of repair the facilities. our So by we of are of required some also degree specialization seeing CapEx because some

because and have or And democratized as vehicle, calibration motors ICE with the the those, sophisticated And facilities as devices to a see and more more you're that we more an you panels, of repair an the road. on get what underlying on facilities electric larger any don't But talk they the as repair or like work. the time, more but of vehicles not the it cameras, this OEMs, balance get we that think would itself in the the so towards process repair you're will we collision over exterior doing gearbox vehicle. like the the exterior will vehicle well. or EV this dealing to is those think, with tending dealing the is subsystems out of And things and

Got it.

for So it business. sounds the like a long-term tailwind

helping And dealing Yes. our with customers complexity the Yes.

Yes, yes.

And Brian, you. one for Okay.

the year some be casualty of in everyone I ago, volumes If out $X I end -- and I too you guidance nitpicky So the think out quarter. coming of guess here, environment. but you think to about called a not QX. raised macro first go elevated back by your is I million the wondering high

didn't is out, of anything to you not scenario. there's quarter. any here, the this give up to And low But which increase end guidance. the you're going despite to for the fault applying the think guide in strength aggressive just that high conservatism pipeline if call quarter, just no the end incremental curious being again, maybe the in took on you as updated just you one the I this

absolutely. Yes,

transactional. as we So transactional that's XX% subscription-based, remember, of you in to volume. was casualty. of the XX% and And revenue related that of for overperformance is higher is volume than the part our Part QX less saw

to not volume guaranteed level. So that is higher at that sustain

also balance and the midpoint the year. do did didn't subscription-based visibility the we of that's raise the the due XX% we the range. long-term that of pushed contracts, have on said, of through we to under model the end up So that That guide, low and the it

the And so momentum we're in with the business. happy and performance the

the on we are early for year, is and comfortable the in in dynamic it the operating said, are We markets. position year. That

for stand please. One Please Thank moment our by question. you. next

question Borges line next from comes Gabriela of Sachs. of the Our Goldman

is line now open. Your

have volatility resiliency throughout Githesh, you. you macro thank shown last Good have afternoon, a XX of the Brian, few months. the companies that

environment what the more question, data or or a seeing from of curious incrementally on last you Following I'm or impact about more getting business you macro your would sales pipeline about negative nervous macro up make essentially on that volatility? kind

Gabriela, for Hi joining. thanks

a the As you the during for COVID. business have seen insurance cycles. know, decades decrease of the was of And economic underlying and where claim we've we time frequency several because in first of saw operated this business the mandatory various architecture And to not only XX-plus the last nature business business year that been any being underlying over our and years way. people business it's changed been more that need in the drive, the any steady. There's means itself so cyclicality has of in been really not

implementation. a able trying architectured would a our be of when cloud have is deliver XX on deploy increases. in why in ROI the you Being to time we at up helpful. I And our population years, a to bit so solution, one this means super it's and look to implementation. It - trend days. many general, business multiyear over you claim That - the as is relatively quick over not - reasons is if volumes they're little we have And

all like So ROI these quick that, to with our customers of solutions test. incremental, incremental are very

but the many cautiously, our taken worked. answer So macro approach the the and has years last we've we're very environment to monitoring your the over been has question of carefully observation

color. Thanks for the

our next you. One for question. moment please. Please hold Thank

next Prestopino of from Barrington the Research. of question Our comes line Gary

open. Your now line is

rollout even Hi to said it a last you think time - rollout, I back Estimate-STP. you we states? you had of - though and in insurance of you of this Githesh, in uptake had Have this number just you product. had everyone. hadn't couple kind a really that selective wanted good I done have selective companies The was Hi, get a spoke, to afternoon just

going you use too, insurance do such of I this me, any? much I and to you X% I process, efficient more claims that through, question, your expanded that mean companies have? if guess, I how mean a would volume it, the is is only to have is get more

a couple things. I Gary, say would of Hi

- actually it clients, really careful with to foremost, and as wanted seeing we've be First that working we also people were results. extremely started great

And we so, the of vehicle limited types. number

the also, geography. that we've so customers we've The is of types. actually that. And early - expanded vehicle to expanded encouraging So were slowly number too we the available, solution limit

of through who of process an of pilot still we number So, gone broad pretty out we have very make customers claims in expansion limiting we cover that to we're And very - is both some, there's of work much nationwide, a that we now could with seen What range have particular we actually actual but test and their the environment. sure vehicles. carefully go high this confidence. have degrees really

we additional of well in want days to good additional very implementation, very clients solution. what careful the increases, thoughtful early processes about as terms So but people very wanting we and the confidence pilot of be feel adding we're in seeing to that both stage, tuning as as

Do with to work this insurance them? the that using repair the have are companies threshold Estimate-STP capital shops anything to do for any

facility. the actually even have repair is be standpoint. from no. facilities the estimate insurers that's and and change can answer between for by And is of the transition changed repair the need of the network because effects repairers, their produced short we and to the the anything a process the The estimate edited that no There photos,

delivering easy repair other that's do. So to solutions. very for AI also be solutions we'll And facilities,

please. hold Thank One our question. for next you. Please moment

the Alexei of of comes question from next Gogolev Our JPMorgan. line

Your line open. is now

and business? traction payments thank your within your elaborate of the quite you of taking There be on to lot a Could you ecosystem. appeared my applications question. for everyone, product Hello to that

most talk could could upside your to of revenue? applications you drive maybe potentially So those about which

welcome Alexei, first of to all, CCC.

I us. think your first call with this is

you. It Thank is.

would to So we across payment the that horizontal say providers, And the payments facilities. solution of from a on the payments for to all insurers medical joining. sense facilities forms in see parts the repair thank repair payment to to payments providers, applies it as solution, from you I solution network,

through, working with early the some customers we that And use works we platform. we've So, solution primarily the seeing to opportunities And really cases. revenue what are starting flow been across a do built is have ecosystem. have generic but across we more payment the

So particular application. not any it one in is

And maybe the then is claims And currently what the Okay now How mobile of been the has on perfect. increasing? share mobile? of elaborate you channel? settled through it could adoption

So mobile now is January we of zero center what the very COVID, we a are hitting at start very, a from before XX.X%, the start right seen dead of have of XX%. - XXXX, little of threshold slightly of almost a under about

benefits And and efficiencies solution also to the continued so consumer. enhance we to that all -- steadily to that increase And of number it continues have the provides substantially. because has

So guided of we the can can not only schedule help photos repair. take the you accident, you

You get updates throughout process. the repair

brought to we've a has of So mobile to repair so way. the ago, and continues facilities a that we've it big in very XX% And about grow was also today. capabilities become of integrated it XX% part to increase. And mobile probably platform, think our I seen in that years couple range a

As take I whether ability from mentioned, the consumers get and it's to pictures estimates paid for or self-paid. Engage has a fundamental facilities, repair insurance solution

to linking a and terms tablets, we've capabilities brought mobile So repairs consumers. of years the collision both of phones in lot over to mobile

it Thank like you. back Board, Chairman the Githesh I Ramamurthy, turn of for closing and remarks. would to to CEO

We customers, ability to on to model come continues our our our confident to future quarter sooner. when not in us. strategic business a you joining early our in if like all to talking solutions. for and of remain so Thank much in The second trust financial report our objectives while your to again and for members forward you results, team and through, for deliver continued CCC helping our customers XXXX. Thank August today. we shareholders us in great in you look we investing durability start our our to thank I'd

does conference. the for your This today's Thank you participation program. conclude in

You may disconnect. now