CCC Intelligent Solutions (CCCS) 30 Apr 242024 Q1 Earnings call transcript

Good day, and thank you for standing by. Welcome to the CCC Intelligent Solutions First Quarter Fiscal 2024 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded.

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

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

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

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

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

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

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

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

strong and and for today. to also XX% In our to and note. $XXX CCC's of our was all am a the CCC began of revenue thanks pleased up Bill, XXXX $XX quarter range, million, guidance guidance million, margin was you, XXXX, ahead EBITDA first joining XX%. Adjusted our was on us ahead of you year-over-year adjusted report that of I EBITDA total range. Thank

to industry digital of be be of innings that our and continues is early positioned Our CCC in to customers' transformation. partner choice well the for transformation,

I'd helping Intelligent customers share the navigate CCC today's this our I'll how call, across the innovations. is we growing are Cloud journey Experience to like and also On our recent seeing we enabling provide customers' progress in have our Intelligent digital made CCC topic broadening Cloud base. the an My shareholder update the role our of transformation. on adoption in is first the continued Experience

annually. pioneer back the of in our cloud and commerce our of This suppliers range initial Since powers to and today, is parts the cloud with for And rapid manufacturers, applications strengthened auto insurers, than customers a mission-critical and have with then, billion investment on technology a deployment. and continuously a well of companies XX,XXX CCC enabler and to ability and over more was SaaS effort $XXX return computing of XXX% backbone serve: processes multi-tenant key our customers continuous minimal expanded early innovation platform capabilities. provide on repairs, we connects hyperscale wide launch collision platform more, an in our XXXX. we

customers efficient. more XXXX, teams releases scalability our is X,XXX reliability. than operating In highly platform client engineering to leverage, Our also deployed high and with

advantages. infrastructure public cloud private Our transition last further to year from reinforce these

day-to-day a make wide addressed by best operations. AI-enabled can of serve, adopt their is and a business. connected that to to complexity CCC to highly customers our and macroeconomic including faster challenges innovation increasingly driven highly we platform. it markets the This being changes, variety solutions through into be and drive easier are increasing forces, trend labor Across looking integrated, shortages in

at this businesses and businesses they're without transform workflows, consumers walls, operations. rapidly scale requires the data not across And just they the to their with. four a simplify and within but their orchestrating customer's looking intelligently interact critically, Doing disrupting and existing

with make we this recent use IX architecture of CCC problem new platform customer This And It of to will CCC cloud enhancing will platform. the or need easier ability better. day. a micro approach faster Cloud short, cloud not are customers Cloud existing number new can every deploy to for cloud also multiple customer Customers introduction enhancement an and cloud solve increase many-to-many CCC to customers' with do our the CCC the use and represents gets Experience to CCC's solutions they systems. existing overlays IX the IX workflows as a solutions ways and services-based Cloud CCC CCC and for already into customers The it event-driven together. Intelligent the applications, upgrade partner just

to that insurance Throughout way today. solve CCC to Cloud technology most to complexity solve P&C has in navigate the our we use customers advanced, the the for increase our industry accelerate business in journey see history, designed is this and the helped in highly economy connected a substantial problems. The IX of CCC purpose-built is complexity pressing

industries and operating in and customers highly align experience. function event-driven complex consumer to data and can so that And Each tasks, our moments helps and is collision new different chain, distribute materials hundreds an repair supply and customers. in decisions, finished supply repairs. our the supply instead most crucial predetermined and accident into a and into spontaneously are where so an them economy, occurs. the customers employee for and of their their performance insurance products this step a unique, insurance architecture, go created improvement Unlike the manner, claim These existing chain chain raw P&C flows in claims and our is converts are drive repeatable after those

We are invest. excited they to see what

of is topic second our solutions. My the growing adoption

driven new network Our multisided from existing continued the traction by solid performance was solutions. of expansion in and and QX and our

insurers had and their we addition, CCC. and APD top XX relationships out rolling expanding last multiple In renewing began announced we with client year new the insurance

parts repair We have network. add facilities and the CCC to also continued to suppliers new

also saw groups. our strong and adoption demand of across our AI-enabled different solutions We customer

out. of and solutions testing, piloting automation workflow For and clients applies see and progress example, are that for AI of number volume, Estimate-STP, Subrogation, continue rolling Other suite we CCC to across examples computer to our to and the as photos on as the vehicle. subrogation, outbound of uses predict injuries damaged involved inbound which vision accident the to occupancy potential an based both Dynamics, well Impact vehicle in a of adoption

significantly the growing results more solutions of millions customers. in customers continue using often in Both them, deliver interest these positive dollars, multiple of resulting to for from

bottom given expect We these demand significant the line insurers are seeing positive trends to these continue solutions. benefits adoption and from

In add to takes we like less repair or to facilities, minutes. rooftops than adoption hour X strong thousands ], generate launched repair repair continuing Mobile more JumpStart XXXX repair the X.X JumpStart end almost an it facility of and the we of facilities an products seeing the reduce new time that are to initial new of estimator of at dramatically AI tens to For uses of used [ are to in from X,XXX average estimate, industry QX, estimates. an complete solution

partner of a operations focus Amplify beyond see run of businesses traditional customers to up for CCC and strong enabled and quick which our over One repair its for collections continuing in also has way website consumer to One [ in Two the facility ], a help deep already set CCC their such facilities modern to payment our examples billion repair overall. $X payment professional-looking customers. interest on repair into solution expansion are easy solutions We're our with integration

AI grounded many for see of category additional new follows We growth that for with a opportunities. and long-term these tangible customer great The capabilities. turn to opportunity runway rapid these solutions over observed feel have strong solutions in growth customer and decades, given network pattern of building potential relationships, ROI of provides good and innovation about value and both a leads the a additional for repair progression facilities early platform, we and traction multiple expansion which referenceable other in product our a

losses vehicles. to established extended facility We insurers estimating assess to solution for exists the repair The a to expansive same today. and a then repair state-of-the-art estimating a network insurer tool that damaged those pathway establishing help we credibility original our direct provided repairable to facilities with total product, deploy capabilities us repair

year insurers has extended to the system industry-first our repair for customers; since, casualty manage for help to innovations them then advanced with and steady platform manage integrated additional facilities day-to-day delivered to value and and parts digital workflow AI-based from to of thousands first ordering tools In and the operations, range suppliers, stream operating parts appraisal a loss process, their subrogation more. even appraisal of to mobile that notice of solutions connected an

with The And because initial reference such adopt manufacturers. different time. and base. incubate relationships Our is level then of and we depth core, its solutions different customers can innovation, particular concepts, innovations customer collision of at lets repairs, suppliers increments in auto parts us other record portfolio different have deploy based delivering at customers that a these of across broad solutions their been innovation the on an by needs enabled them over customer and test has, insurers, with our our track flywheel new result scale

decades and last year P&C in the at to opportunity our long-term insurance $XXX ahead growth business consistently R&D heart of in of enables past million representing digitizing This a dynamic $X durable us of we in and over market have with the economic billion-plus of we And invest XXXX projected fraction decade. $XX model we revenue our the believe across is cycles, economy, billion us. well the see

our significant and our advances of progress an continued and made increasing third shares. liquidity in the broadening base have our Since base. in My we the on is public, we going update expanding made final shareholder topic have shareholder

increased our about to shares as X last and this year, currently. our in our float offerings see from towards commitment as block development total shareholders. as from measured outstanding October an months from secondary have over of trades fulfilling to of the Bloomberg investors equity past public important private about our percent a We XX% XX% The

for financial innovation for of ability through Let rising AI-based driving solutions solutions and across the track CCC in strategic we our our to of and growth me IX have with XXXX, to adopting via us that customer objectives. excited ease demand gives confidence the conclude we are on what the planned deliver our record cloud combined about base, our continue our saying by increasing

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

Githesh. Thanks,

As Githesh expansions IX and our of growth model. durable category innovation track as business enables and are our architecture our the business easier momentum highlighted, adoption and driving reflected of in we Cloud our record solutions strong through across cross-selling, seeing client

growth are We bottom balance in which both performance our a initiatives discipline. investment and line between pleased margin and reflects with top ongoing

solutions client X Approximately About emerging X Total QX the XXXX. I points by quarter package revenue growth in to point quarter including and provide the cross-sell, across results with our review shop casualty subrogation. of in QX numbers, from will and X suppliers. quarter our prior mainly XX% and mostly Now in full new turn the of upgrades, came continued adoption our for first parts. points then up of XXXX adoption guidance our million, repair base, driven as the ongoing in parts logos, upsell year solutions was first Estimate-STP of strength from from diagnostics, second solutions and $XXX.X the our year approximately we was and growth of our came digital repair and facilities and growth period.

Now metrics. key turning to our

in year base retention in quarter XXXX, the last that since compared or GDR GDR CCC driven industry and by client and XX% line down, In that benefits our Note dollar QX and XX% significant primarily our with period. revenue our network. amount GDR GDR is rounded XXXX, which of believe the our either shop strong XX% churn. broader accrue from retained between prior and is captures we gross participating customers provide Software to been reflects to our repair quarter. first up the has of value was We the the from or the

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

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

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

XX% on against profit XXXX. our unless margin metrics to the in reminder, XX% slightly all was gross in margin noted, quarter up XX%, are Adjusted GAAP gross gross in $XXX non-GAAP. down in Adjusted was million. a provide release. revenue. and from a The profit year-over-year of metrics As otherwise adjusted of the reflects non-GAAP incremental QX QX profit reconciliation press operating primarily stronger leverage We

operating the profit XX%. to adjusted ability gross target model our margin about and Overall, against of our we feel leverage good of and scalability our long-term business deliver

which in driven terms XX%. $XX.X $XX.X expenses, as investment quarter Adjusted X% an well costs for EBITDA QX million, adjusted is EBITDA up million, higher our XXXX adjusted In as with operating mainly up functions. was year-over-year customer-facing IT-related the year-over-year. of was by This expense in of was margin XX%

turning to adjusted our the cash balance $XXX EBITDA. equivalents, Now in debt. the a million, ended was end basis QX cash year-over-year. cash XX% flow and Free flows. flow which was of the leverage Free is to net cash period. cash with on the up of compared million and in trailing At the million prior sheet We quarter, $XXX million million X.Xx in year was $XX.X XX-month $XX.X $XXX quarter

XX% year QX was flow margin cash ago. XX% to a compared free trailing Our in XX-month XXXX

or cash conversion flow it's quarter adjusted usually our our QX our XX% pay EBITDA. QX free approximately million when because $XX annual of incentives. Unlevered lowest was is we in

flow While expect of in an basis. mid-XX% free we EBITDA quarter-to-quarter, range adjusted our annual to to vary level average the on our it continue cash can of out

I'll now in QX XXXX. beginning cover guidance

of revenue X% $XXX.X million growth million, to total X% to $XXX.X represents year-over-year. expect which We

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

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

you XXXX. keep full quarter our think in X second and for So things guidance as year to mind about

of we our is first of in that that the remain with we across The increased our the broad-based target have the guidance and ranges. confident XXXX We're midpoint pleased business financial saw in mind point strength contracts revenue because subscription solutions. in timings, can pace volume-based that of new vary keep client and revenue rates the elements with adoption quarter-to-quarter year-over-year contract variations But growth QX. of and

new of Emerging we about the contributed of contribute of about feedback growth about to continue remarks, the to that upsell, points his as X solutions, is in Solutions growth are X solutions point the in and in cross-sell they second scale. and these these us The of expect QX, back point growth we gives seeing XXXX in XXXX. this around confidence engagement Githesh half the in mentioned emerging contribution positive client will

second adjusted our the that margin half employee-related be the The levels. is industry with our seasonality EBITDA years, consistent in In pattern, third half point half of we point with being prior in levels our and this being year. low we constrained the experienced above the by the first for XXXX first to conference. being with expect margins expenses the reset cost of QX

strong reinforces network renewals, in underlying new strength business AI The combination the interconnected confidence the seeing the and help capabilities, model, experience reduce adoption the throughout advanced insurance solution in relationship broad trends to consumers' business. expansions costs process. our in puts of claims the we're us while solution economy our Overall, a improving unique the and P&C durable set in their times position and administrative our cycle their customers of

our deliver target execute EBITDA X% against mid-XXs continue long-term to our of our and in for generate value strategic shareholders. to adjusted organic ability and XX% and to revenue confident priorities are on growth both as margin our customers We our we

With that, questions. operator, ready we're to now take

first comes Instructions] Kalia question of [Operator from Barclays. Our Saket

and quarter straightforward to Listen, to the Okay. strong start year. Sure. with earlier point. the the maybe you. start the to pretty are Great Githesh, nice guide

qualitatively, how start just talked I'll of room little there's competitive about Can you've casualty are maybe need casualty base. do conversations question. the adoption types happen? solutions sounding recently? just maybe I So for for maybe that think customer to with environment to how higher-level market? more And displace plenty the educational a APD those bit make just what talk we a within you your about of

just back kind like further. of said, Saket, to dial you Sure. little a

geography, to they in what foremost, the auto claim. X for that board and that key medical and bring more fairly significantly, dollars is table a of one lot And There's X across increasing involved first vary So is our more starting is every in. managing that costs and the complexity are results a by in creep claim we the jurisdiction. of medical a seeing claims unique complexity, lot we're by advantages to the vary customers

So helped claims of physical when the auto you have the actually when that's the you what we important breadth or side the have inform very the a happens of and what physics not damage the business damage medical may have, with auto deal to visibility accident to that physical claim. of between may and downstream, the happen connection

visibility very have some we are things there So to. unique

an takes Impact that claims adopted or One or we medical and one very, people accident, AI-based road. in that solution impact. not, introduced existing of a it be solution, impact significant carrier of adopt Dynamics, is down top unique of very when And call projections the of a the probably that the the the that we the imputes the can I That's which photos -- can accident, is of had examples mentioned last it. physics offering last and a potential is the and we that -- think X by whether existing saw adopt customers so

linkage. the that's So

to some that broader working where is very would solutions. over there's customers year see more those And our they're the casualty I have we've basis, unique solve on clients really trying always focused in say with of solve. aspect challenges we problems. adopt to been a last And to just continued terms that's

bottom view that's on of the continuing of are adoption line So what to But of casualty. customers overall seeing. we're see really we kind is

growing the contribution very talked very my from sort for for emerging follow-up Brian, it. That's Got maybe helpful. solutions. of about clear, you you,

but to about you growth, increase usage? healthy little growth talk the points dependent in it of I of X I a have bit from sort confidence will you into on year. course, have Is Or growth volume of degree of gives that what very for that? you point just which that, think maybe that's of is -- here X that mean said QX a of that small visibility of go base, you kind into visibility sort some that into in we element growth contracted off is there Can contribution?

Yes. Saket. Sure,

the on just metrics. So

the go We're from So emerging to you do X through that of visibility, it we of are using emerging ramp existing to growth look the that. QX, around is from they and product had year. question product, areas. volume To adopt for full at the as We expect year. for contribution as we X continue clients have up step points visibility into growth solutions. we we and their up continue that the point said, around the paying One expecting X that the volume to and scale

We visibility. the product that rollout, testing move from pay we'll have into good and again, production clients also and which are there's full test

And pipelines, third new solutions. the is new signing then onto converting to clients these

good we X step-up and that second So half. confident across those areas, have feel we're the the expecting visibility in in

long the about that will get develop emerging and are that towards metrics going and year. product X more second the made into of growth, as Githesh from the testing seeing And step-up well, talk we're the the in operating half over feedback of positive time. that like testing the the we his to that the being we the solutions term, or points X we then remarks, using very product is feel all As is clients do as -- they're

coming will Funk of be Michael And our of America. Bank from question

Yes.

So you. Githesh, for first one

from call, emerging the times and the very mentioned cloud the the in are You a early transformation solutions. benefit obviously on highlighted few customers

events So like the of clearly, human to mean the are opportunity the replace and remind AI. Subrogation. I repeatable with revenue very just attractive us from products interaction maybe Estimate-STP

point we the we'll transformation? tipping ramp you adoption? revenue where you in want in are to talked tonight. do And see So expect If about you you maybe again the highlight towards that a opportunity

Sure, Sure. Michael.

Let over first X we've seen decades. literally customers last or the patterns broad-based X me with with kind of really that start our

deal vehicle decisions, parts complexity. up into So of used Today, with what that minor per are typically of per give number couple customers major right? looking X lead happens The you to some a is to to we're that parts I'll be per parts examples XX continuously vehicle. vehicle.

less. at So the for the time, is of talked customers, people the macro facilities, same trend number fronts the strong, the increasing. in which and talented repair experienced our is demand capable decreasing the complexity people range on industry about, the is of And insurance both supply a whereas really is of experienced the whole is for we've people

we start And across more macro in to now what the And and seeing seeing, more much, trying are a much big to is problems manner. to are we a complex trend are So about that our that starts in broader we as customers digital be the effective more is seen. what more especially customers have pricing broad make efficient way. solve normalize, thoughtful transformation board,

digital we more seeing So are in transformation. interest

say, -- was If AI months. you I has about last estimate, AI November XX we as let's our XX solution, remember, went was which when that been, of an XXXX, first to think the to introduced not our widely from photo in it talked

So comfortable that that the board. more to really capability starting capability their people a get handle more people's amplifies across has quickly to AI decisions are

technology is So that digitizing, decisions view macro of make to using happening.

to question. the getting specifics your now So of

speed very staff a produced. for give response that -- which a XXX like an in when precise it solution in really think consumers of increases estimate you might for so estimates get page minute or like like at Estimate jump-started repair can can really substantially at a the be speeds accuracy. where demand reduces in really when very fast and matter you for inbound picture, you that subrogation, to then what So at And Estimate-STP, you something and solutions X get you our facility the is or at you're send look ability look something that when seeing appraisers the

so we're very the hence, has So focused effectiveness, every and many different across a of in these people terms developing innovating ROI. solution efficiency, specific we're increasing why the that's characteristics solutions. on of single And productivity

I Brian, more, quickly. one Maybe could, if

on that you've to cloud talking the margin from that Any made private you how or impacting that are operating transition comment about public. as about talked to leverage think infrastructure You've transition?

have Mike, yes, fully we transitioned.

infrastructure and are down, clients We environment we'll over winding doing are and time. we and serving cloud that. on the do still have some that that solutions be deploying we So through legacy new

the costs And innovation hosting of and that up is growth the the then is Part environment in just being that decommissioning so pipeline we building the part wind of talk the it go legacy and quarter. the forward. will about IT against of platform business and of out down as we

happy we're or basis still XXX Overall, progression. We quarter-over-quarter really points with about margin the of had progression year-over-year. margin

within again, in So feel like spot we we're good base. that, within really cost a our

our coming of from Tyler Citi. is Radke And next question

ask architecture, a more new wanted I at the I'm sure out can we'll on couple of weeks. to about the lot about But conference the that Githesh, hear call. referenced a in you, here you if monetization, this just for you that? And a with an talk from architecture? use price back-end there's to cases, SKUs about perspective future enable or opportunity technology you're either new doing the new theoretical what event-driven increases

Sure, take to Tyler. that question. Happy

we that not loss. what be is but network. taking by that total a turn might a terms across have you of over see customers repair repair, as years, of have What actually -- step-up we the to repair decisions and that facility giving a multi-tenant been for place the cloud many do know, means that? a the And at events we key is mean That out things are taking have getting performance So a running you done I in in might years. one really our a platform

some other decision You the might on front. have medical

that might a her downstream. to reflected You changed have mind or something consumer about be his who needs

essentially lot one place place is of to needed have performance because these every overall from move from permutations made of architecture other. of data can quickly and very events decisions take decisions to and of really claim be So to events have event-based we that's claim the the literally moves a many the developed the one be intense can there maximizing would intense. that what And time an other, the in hundreds the to and pretty be are that

on seeing the really what more with major our which IX platform, way is functionality combination is of we in capability. existing we're delivered architecture. call and is has an -- deliver been And overlay AI our CCC we AI, a think, workflows line Cloud, and which with architecture, the and to XX as And which this existing the

So path. works, works It's included. line. in There's it have already get automatically. without everything what customers no will upgrade disrupting works It they and

ROI But across what and across gives chain supply by more to they'll does the innovations supply their be many very ROIs. those solutions really having ability those not us the with is this unique specific entire solutions it and And the entire have deployed those will unique -- pricing, will deliver and own many, but be customers, for architecture.

for you, Very helpful. question Brian. If I could follow-up a ask

quarter X way up points path about to solutions full or sounds it something of X points guess by to the the exit Or So the an emerging the to think contribution it above should we there, think this QX? X? for get rate point like year. is X just I ramps the X points on about is

see to go we're progress good the points as we'll X to stepping and we full points, for beyond. guide, the larger the reiterate and the would that we I time, as down expecting contribution run Yes, as long-term continue X going half. this the year. going of how about on over talked just said, up year have is and the we We year step-up see exit in specifically within kind to Tyler. through we're We're from that's breaking rate. I X exit to not Yes, the to go and feel 'XX be second into

than we're So get not this at going to specific that stage. more

one right? So point all deliver one all when add at were I'd thing about more vantage you From point, or my Brian solution these the other, we Tyler, there's it, what revenue said. the to think emerging an today just of solutions.

they're In years X fact, that continuing still years solutions, runways. which I of emerging they And excited were later, about very is all the later, point, get what at grow. long some to have XX

some very later to are years And XX grow nicely. continuing

those and long I So as often just with well. our is make -- want that delivering on piece And building add runways. those long sure that I focus solutions to

is And coming from Alexei Gogolev question of our next JPMorgan.

Githesh, payments. I wanted to ask you about

flow? You've your mentioned transactions you platform. expect a more greater do in the in billion pronounced When again, the involvement tailwind from $XXX see Once on today's to to payments revenue call. growth on

As are solutions other payment -- solutions I problems towards we a as we solutions of to hopefully of latter pace for is a the with slower we to a sure. we have expand our before, said like -- lot complexity. don't year, run, can seeing want will day our to I customers. opportunities us part the and on at and and of the that can think, said, more it compared you an the of hear There's from solve, But of you, I've capabilities update continued give complexities think, that of our customers the broader solve. good to think what It we And that. -- every set

work to that's continuing but that, are. on where we been we've So

increase you to elaborate in bit And in stock-based on compensation Brian, could more a I the ask quarter? the sequential

absolutely. Yes,

-- year. quarter We more through down where the to to the step go as in the did revenue. it trending percent we for and comp the high recently. up be yes, the we is a go So down quarter expect it's stock-based watermark versus been expect move of as do QX

'XX will kind and to revenue. going XX% like expect we of more look a of from it XX% be forward. get As like normalized into what That's more we XXXX, rate running

normalize So the when to next in year. do we QX we into saw moderate and get step-up that to expect we

And Josh Baer of coming our will Stanley. be Morgan next question from

strong a quarter. Congrats on

growth Emerging the exciting. It's solutions is definitely algorithm. a increasing clear Another positive. question on contribution

is on the of think parts XX% X growth growth question The it's points total. of of the on this at going on if to growth durability to quarter key X% a I overall growth. coming points several of algorithm, X That's contribution solutions rest the the was point emerging away.

solutions that -- more growth from? where wouldn't So why just where wondering established logos in the or coming is be And durable?

absolutely. Yes,

way can frame we then term. and backwards the the maybe started So -- the long walk way long-term the we because guide we

cross-sell, from XX% talk So X XX% logo. to we from growth about We organic of that over new clients be time. XX and say existing will revenue upsell with

from the become And are So the of upsell, as to you set out seeing highlighted, we more time, going cross-sell, remaining part percentages high of to from equation the we emerging we expect expectation from growth new larger a we're growth that's moving XX% about forward. just then where as Over towards the today, where be logo. we're established.

glide how playing a we path more it's over cutover, but a So it than see time. hard of it out is

that in a on it new put Does year. growth over that step-up have upside to full way the in more positive solutions, spin another bit quarters guess logo would solutions in established more the durable you and I sense? emerging next if make held or a for Okay. confidence few the be

does. I mean or the to have deliver against we the in Yes, it the that market. guide we're always looking guide outperform

new established logos emerging. driving solutions, pushing we're on and core hard hard -- and to the at strong it, remain getting the building So behind all then continuing out and the of momentum the at the sides driving

of So all we're driving X those.

of framing good it. a way that's yes, So

Dylan question next of from will coming be Becker William Our Blair.

[indiscernible] could my It's with on more Dylan. seeing. that If I we're a trend question start high-level industry being for first

with see And overall in the increase, the this? uptick complexity ecosystem? into of to or either is continue how we claims stakeholders as react issues this how So we're an the you drivers level to different in seeing underinsured being are also seeing playing uninsured premiums

of Sure. A couple things.

mix. in that seeing well state some are variation We state as by

terms to and material started medical is on makes at change first that frequency had claims And customers deal a So not also into customers are how with our of way it's pay variety at places. and the a what in both notice really claim. noticing for is of its other and of have cost times of loss that --

differences it how recover seeing Subrogation, we impacted has, but our essentially customers, where specific you that's recover the in really number something like your dollars, they like are complexity So pointed in complexity. increased some out, for policyholders and hasn't those dollars, that where more you involved, and when is not we're it that especially seeing how

color. And are this talk the comfortable different together really and what's ecosystem? kind those IX question, cool. Subrogation How these with Okay, advancements stakeholders fitting been map call, to adopt the it? Cloud. AI more the on outcomes are And drive lot technology throughout better as and to between the my That's about a of helpful inbound for all then second the more for ahead of road look AI there's

Yes. CD The industry artificial to to to ROMs We've intelligence. estimates collision computers answer and is yes. pencil laptop short books, write from had of the benefit to this taking paper

our customers of adoption And for needs understanding. sophisticated our look you continued example, our kind And various customers. with at, very customer closely work so obviously, to base, OEM if have and of segments by we've

facility them that. I use Our pictures think in and said which repair jump facility to really customers, customers adopt right X,XXX seconds and allows over we repair take estimate augment just an we of our had start then that

really level insurance X So this the thoughtfully we these about, those years, the extraordinarily carefully of important. are to becomes and are are is the had And becomes customers important and also very came and of all for we companies, continue how And what where things important. and deliver deployed repair obviously, transparency traceability to comfort get X we starting we've algorithms can those from last really with facilities accuracy to a solutions adopt. seeing

answer using can a produce about their are we give are that our on. comfort when confident So produce confidence people and make customers about also we interval decisions how to something, an then those that we we to that confidence

strong overall, yes, the So is, see interest. answer we're to continuing short very

question from next coming Gary Barent of be will our Prestopino And Research.

couple of A questions.

la that a sold debt inbound obligation carte? With attached introduction is automatically of that or outbound inbound and using entities a were to the the the outbound la the cartes sold Subrogation,

adopted yes, the answer it can Gary, short individually. is be

inbound same customers chosen time. So the we outbound have adopt at have to that and both

We have customers that started outbound. out out -- starting with

And in work. all it work our And that's generally can solutions how so way. any

components. You because with can seamlessly the works components any other all it adopt

ones you that have the end-to-end we're solution? adopting that outbound rapidly finding to using inbound are Are that

way other around. the more actually It's

interest much are in to solutions. then more get to choosing we saying, We to this customers seeing are and once many want inbound those because your outbound also we move of rolled of complexity hey, out, the

starting with both. actually are Some

this and Cloud who of who data be taking the a at on show an one dispute with Can that And that at network was events where Does at help applicable product was if set to is got just accidents determined? a would fault bulk various decisions was fault also accident? that whole then there processing. since across you've that IX, to improve about question talking you're that if claims this --

that up probably fundamentally determination. talking you're because liability come with things are Those Yes. we'll what is about

So there when number of you liability come about factors actually think termination, are that a in.

taking data, For have weather a took way accident who when had someone example, a when intersection place. have is right turn we we the certain of left data,

pieces some accident construction. also We have do that can

So can can cloud put we all at performance. a introduce and manner these the claim that all individual are that an capabilities of together level, get is IX to power to so of easy these absorb seamless, in the pieces optimum you

Our next Samana Jefferies. from question be Samad of coming will

quick asked. questions This on Jeremy more Maybe is been for products. my already one of emerging lot one have A Samad. on

to client to what's in X terminal you points these do likely guess, you I the order that that the guess, what there is the X penetration of longer percent base term, products? achieve So I in and that see what's having adopt growth penetration? of need to

I solutions base. existing Yes. the as look mean we at a question. Good Yes. across it the deployment of

kind the the with we of ecosystem, the the of where established when are think solutions. about have participants of and we many all So them ecosystem

them see up just the we emerging. the across stepping penetration So

not calling into it. will existing that out adoption more over of up So percent of we're convert a that It's it kind clients step the ramp if they our to time.

maybe That's quick one. helpful. Got you. And a then

that APD guess, do insurance insurer? like what does year. this remind us maybe rolling And last the the announced began you rollout out mentioned you You I look from you expect revenue the you can full like? client new XX when this contribution top

Yes, fully fully half second start It rolled the in contribute to the into but numbers, absolutely. play It will start will of to QX out. year. not the

So into fully out it the second will in then and come roll QX half. partially

just We started.

Materne. Kirk The is coming next question from

how insurance in ] up This Bill thinking mind, is about for Kirk. has on With that auto recently [ companies based in inflation. IT are on industry? The your spend been

talking was office customer just that In today. are can rapid solutions is my ROI. fact, just looking give a to for any them what I And they in

saying the is years that am ROI. me spend shown to looking to solutions. X very to or IT easily people should my give I decrease IT What are ready be solutions as I I are this And need So that my at that They're can should spend. put more increase that have place. in not open last I competitive. deploy people people

be of question will next CJ Chris Moore from The coming Securities.

was given conversation $XX XX% the than Cloud to, normal, know, IX with close board, the almost you and investment on obviously, making across But at started this million. you're I quarter. R&D the higher don't

to trying kind about this the we how kind of think that Just moving understand should at of Or normal if forward? is this level stage? new

stock. blue mining The

Yes, does, Chris. it

excluding -- it's in you the of look have comp. the So kind at Brian. Yes, it to stock

So that will be the biggest driver.

in drive innovation built pretty does that If system, in and feel capacity we capacity grow, we -- meaningful into talked step-up to what it's exclude to that but past moderate. it need about the continue we is forward. you comp, stock We there that's had like going the

And leverage continue talking the we're grow R&D margin year, comfortable that a the comfortable time. so the for progression. at on and to target about And will the grow, across to over of we're pace drive getting and business. very we're continue that about progression -- we're comfortable to mid-XXs but full reasonable margin our to the

from of Our next coming Borges Sachs. Goldman be will Gabriela question

of new to ways. different lever ask wanted question in [ the couple ] I of a

given that shop you bit ecosystem, new can red? that the little is you're think year network part there that about in around a within what any to in of the limiting is repair success and levers of community the number first there in the into remind effect given how us having The get factor is penetration

Gabriela. Yes.

that So over the the about of are XX,XXX if at adding, marketplace. repair with network you been in comfortable way and shop term. we is XX,XXX. X,XXX very Today, and shops to net kind we We've look have that back for see logos pacing and continue that look the the pacing the the past about we year near a several new year. years,

momentum, the adoption logo good new continuing at really see So in strength to shops.

past, That's overseas, new the the of it's you've question in expanding length talked when the a is, M&A. And with about part towards helpful. second logo themed

bit be right is give a So to expanding us M&A become to -- think more you exactly internationally? organically? expanding to might aggressive to little logos my what with when you And maybe to the update as on fees new and timing over is question an

that just I'd expanding first Gates. is say product this at the have to our look look domestic set. opportunities our Gabriela, in is at priority is we M&A we when

if years remember, fantastic Subrogation, great that example we it's little a those For example, of was a built look where -- out. almost now. X at. And that about a and took kinds been with And over you then really expansions team we

not in are at major continue both we terms stage front, as -- in to Europe. a spend you a not in focus already right international China, know, the not it, now is we at but On terms international. that time We're this of of looking

closing are call remarks. ahead, no would like to go sir. the queue. to And turn Please over more There Githesh in the I for questions

for investing financial all of you continued objectives CCC. like we sooner. so thank for report continues forward in for to deliver look team when not our your and remain helping results, much our time. and and same in you confident late on the talking your today. ability come in our to a the business our you thank saw future while again support if shareholders customers and to strategic you of to start July durability us Again, through. I'd solutions as quarter customers, 'XX. our second our We interest at We to great to our members model CCC joining our just Thank And hopefully

conclude call. today's Thank for participation. conference your does This you

disconnect. You may all