Business Wire | Nov 10, 2021 04:06PM EST

CCC Intelligent Solutions Holdings Inc. Announces Third Quarter Fiscal 2021 Financial Results

Nov. 10, 2021

CHICAGO--(BUSINESS WIRE)--Nov. 10, 2021--CCC Intelligent Solutions Holdings Inc. (CCC) (NYSE: CCCS), a leading SaaS platform for the P&C insurance economy, today announced its financial results for the three months ended September 30, 2021.

"CCC continued to perform at a high level in the third quarter, highlighted by 18% adjusted revenue growth and 31% adjusted EBITDA growth. We continue to see strong adoption of our expanding product portfolio as demand for cloud-based solutions to digitize workflows increases across the P&C insurance economy," said Githesh Ramamurthy, Chairman & CEO of CCC.

Ramamurthy continued, "Our performance demonstrates the power of our growth model and we will continue to invest in the business to benefit our customers. We are thrilled with the pace of product innovation and the quality of customer feedback, giving us great confidence in our growth potential."

Third Quarter 2021 Financial Highlights

Revenue

* Total revenue was $176.6 million for the third quarter of 2021, compared to $157.8 million for the third quarter of 2020. Adjusted for the impact of the divestiture of a portion of our professional services casualty solution in December 2020, total revenue grew 18% in the third quarter of 2021.

Profitability

* GAAP gross profit was $118.8 million, representing a gross margin of 67%, for the third quarter of 2021, compared with $107.3 million, representing a gross margin of 68%, for the third quarter of 2020. Adjusted gross profit was $138.4 million, representing an adjusted gross margin of 78%, for the third quarter of 2021, compared with $113.4 million, representing an adjusted gross margin of 76%, for the third quarter of 2020. * GAAP operating loss was $189.2 million for the third quarter of 2021, compared with GAAP operating income of $23.1 million for the third quarter of 2020. Adjusted operating income was $62.5 million for the third quarter of 2021, compared with adjusted operating income of $49.1 million for the third quarter of 2020. * GAAP net loss was $189.8 million for the third quarter of 2021, compared with GAAP net income of $4.7 million for the third quarter of 2020. Adjusted net income was $29.7 million for the third quarter of 2021, compared with $21.1 million for the third quarter of 2020. * Adjusted EBITDA was $70.1 million for the third quarter of 2021, compared with adjusted EBITDA of $53.6 million for the third quarter of 2020. Adjusted EBITDA grew 31% in the third quarter of 2021 as compared to the third quarter of 2020.

Liquidity

* CCC had $160.5 million in cash and cash equivalents and $800.0 million of total debt at September 30, 2021. The Company generated $36.9 million in cash from operating activities and had free cash flow of $25.0 million during the third quarter of 2021, compared with $43.0 million generated in cash from operating activities and $31.7 million in free cash flow in the third quarter of 2020.

The information presented above includes non-GAAP financial measures such as "adjusted EBITDA," "adjusted net income," "adjusted operating income," "adjusted gross profit," "adjusted gross profit margin," and "free cash flow." Refer to "Non-GAAP Financial Measures" for a discussion of these measures and reconciliations of each non-GAAP financial measure to the most directly comparable GAAP financial measure.

3rd Quarter and Recent Business Highlights

* Announced the first touchless estimating experience in the industry. The AI-powered CCC(r) Estimate-STP uses advanced AI and insurer-driven rules to automatically initiate and populate detailed and actionable estimates in seconds. In market with four national insurers, CCC Estimate-STP offers touchless line level estimates from photos and is part of CCC's broader offering that is digitizing the auto claims experience. * Signed multi-year renewals with a Top 5 insurer and one of the country's largest multi-store operators, or MSOs. As part of the multi-year agreements these customers have meaningfully expanded their annual commitment to CCC as they broadened the number of solutions they utilize from the platform. * Partnered with Toyota to deliver Collision Assistance, a just-in-time support service, which is now available to drivers within the Toyota and Lexus mobile apps. The CCC mobile technology combines guided accident documentation and access to claims and management services to assist drivers following a collision. This is an example of how CCC is delivering innovation that expands our ecosystem beyond traditional insurer and repair facility customers. * Successfully completed the refinancing of its existing secured credit facility with a new credit agreement comprised of an $800 million senior secured term loan facility (the "Term Loan") and a $250 million senior secured revolving credit facility (the "Revolving Facility") that lowered our effective interest rate from 4.0% to 3.0%.

Business Outlook

Based on information as of today, November 10, 2021, the Company is issuing the following financial guidance:

Fourth Quarter Fiscal 2021 Full Year Fiscal 2021

Revenue $182 million to $184 million $683 million to $685 million





Adjusted EBITDA $69 million to $71 million $255 million to $257 million

Year-over-year revenue growth for the fourth quarter of 2021 is forecasted to be 10% - 11%, or 16% - 17% when adjusted for the impact of the divestiture of a portion of our casualty solution (specifically, First Party Clinical Services) in December 2020. Year-over-year revenue growth for the full year 2021 is forecasted to be 8%, or 14% on an adjusted basis. First Party Clinical Services revenue was $8.6 million and $34.7 million for our fiscal fourth quarter and full year 2020, respectively.

Conference Call Information

CCC will host a conference call today, November 10, 2021, at 5:00 p.m. (Eastern Time) to discuss the Company's financial results and financial guidance. To access this call, dial 877-407-0784 (domestic) or 201-689-8560 (international). The conference ID number is 13723556. A live webcast of this conference call will be available on the "Investor Relations" page of the Company's website at https://ir.cccis.com, and a replay will be archived on the website as well.

About CCC Intelligent Solutions

CCC Intelligent Solutions Inc. (CCC), a subsidiary of CCC Intelligent Solutions Holdings Inc. (NYSE: CCCS), is a leading SaaS platform for the multi-trillion-dollar P&C insurance economy powering operations for insurers, repairers, automakers, part suppliers, lenders, and more. CCC cloud technology connects more than 30,000 businesses digitizing mission-critical workflows, commerce, and customer experiences. A trusted leader in AI, IoT, customer experience, network and workflow management, CCC delivers innovations that keep people's lives moving forward when it matters most. Learn more about CCC at www.cccis.com.

Forward Looking Statements

This press release contains forward-looking statements that are based on beliefs and assumptions and on information currently available. In some cases, you can identify forward-looking statements by the following words: "may," "will," "could," "would," "should," "expect," "intend," "plan," "anticipate," "believe," "estimate," "predict," "project," "potential," "continue," "ongoing" or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words. These statements involve risks, uncertainties and other factors that may cause actual results, levels of activity, performance or achievements to be materially different from the information expressed or implied by these forward-looking statements. Forward-looking statements in this press release include, but are not limited to, statements regarding future events, goals, plans and projections regarding the company's financial position, results of operations, market position, product development and business strategy. Such differences may be material. We cannot assure you that the forward-looking statements in this press release will prove to be accurate. These forward looking statements are subject to a number of risks and uncertainties, including, among others, the general economic, political, business and competitive conditions; the impact of COVID-19 on CCC's business; failure to realize the anticipated benefits of the business combination of CCC's parent corporation and Dragoneer Growth Opportunities Corp. (the "business combination"); costs related to the business combination; the ability of the Company to grow and manage growth profitably and retain its key employees; the risk that the adoption of CCC(r) Estimate-STP does not occur on the expected timing; the risk that the Company fails to realize the expected benefits of customer renewals and expanding the Company's customer base; the inability to maintain CCC's listing of securities on the NYSE; changes in applicable laws or regulations; and other risks and uncertainties, including those included under the header "Risk Factors" in the definitive proxy statement/prospectus filed by Dragoneer Growth Opportunities Corp. with the Securities and Exchange Commission ("SEC") on July 6, 2021, which can be obtained, without charge, at the SEC's website (www.sec.gov). The forward-looking statements in this press release represent our views as of the date of this press release. We anticipate that subsequent events and developments will cause our views to change. However, while we may elect to update these forward-looking statements at some point in the future, we have no current intention of doing so except to the extent required by applicable law. You should, therefore, not rely on these forward-looking statements as representing our views as of any date subsequent to the date of this press release.

Non-GAAP Financial Measures

This press release includes certain financial measures not presented in accordance with generally accepted accounting principles in the U.S. ("GAAP"), including, but not limited to, "adjusted EBITDA," "adjusted net income," "adjusted operating income," "adjusted gross profit," "adjusted gross profit margin," and "free cash flow" in each case presented on a non-GAAP basis, and certain ratios and other metrics derived therefrom. These non-GAAP financial measures are not measures of financial performance in accordance with GAAP and may exclude items that are significant in understanding and assessing the Company's financial results. Therefore, these measures should not be considered in isolation or as an alternative to other measures of profitability, liquidity or performance under GAAP. You should be aware that the Company's calculation of these non-GAAP measures may not be comparable to similarly-titled measures used by other companies.

The Company believes these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to the Company's financial condition and results of operations. The Company believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends in and in comparing the Company's financial measures with other similar companies, many of which present similar non-GAAP financial measures to investors. These non-GAAP financial measures are subject to inherent limitations as they reflect the exercise of judgments by management about which expense and income are excluded or included in determining these non-GAAP financial measures. Please refer to the reconciliations of these measures below to what the Company believes are the most directly comparable measures evaluated in accordance with GAAP.

This press release also includes certain projections of non-GAAP financial measures. Due to the high variability and difficulty in making accurate forecasts and projections of some of the information excluded from these projected measures, together with some of the excluded information not being ascertainable or accessible, the Company is unable to quantify certain amounts that would be required to be included in the most directly comparable GAAP financial measures without unreasonable effort. Consequently, no disclosure of estimated comparable GAAP measures is included and no reconciliation of the forward-looking non-GAAP financial measures is included for these projections.

CCC INTELLIGENT SOLUTIONS HOLDINGS INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE SHEETS(In thousands, except share data)

September 30, December 31, 2021 2020

(Unaudited) ASSETS CURRENT ASSETS: Cash and cash 160,465 162,118 equivalents $ $

Accountsreceivable-Netof allowancesof $3,972 and$4,224 for 82,367 74,107 September 30,2021 andDecember 31,2020,respectively Income taxes receivable 6,915 2,037

Deferred 13,833 11,917 contract costs Other current 36,261 31,586 assets 299,841 281,765 Total current assets SOFTWARE, 121,018 101,438 EQUIPMENT, AND PROPERTY-Net OPERATING LEASE 38,774 - ASSETS INTANGIBLE 1,237,950 1,311,917 ASSETS-Net GOODWILL 1,466,884 1,466,884

DEFERRED FINANCING FEES, 3,053 746REVOLVER-Net DEFERRED 18,893 14,389 CONTRACT COSTS EQUITY METHOD 10,228 - INVESTMENT OTHER ASSETS 21,584 18,416

3,218,225 3,195,555 TOTAL $ $

LIABILITIES,MEZZANINEEQUITY AND STOCKHOLDERS'EQUITY CURRENT LIABILITIES: Accounts 16,083 13,164 payable $ $

Accrued 81,771 52,987 expenses Income taxes payable 7,161 5,129

Current 25,381 portion of 8,000 long-term debt Currentportion of long-term 2,661 2,540licensingagreement-Net Operating - lease 8,855 liabilities Deferred 29,384 26,514 revenues 153,915 125,715 Total current liabilities LONG-TERM DEBT: First Lien Term - 1,292,597 Loan-NetTerm B Loan-Net 780,218 -

780,218 1,292,597 Total long-term debt DEFERRED INCOME 255,849 322,348 TAXES-Net LONG-TERM 34,320 36,331 LICENSING AGREEMENT-Net OPERATING LEASE 50,550 - LIABILITIES WARRANT 85,348 - LIABILITIES OTHER 32,770 LIABILITIES 6,808

1,367,008 1,809,761 Total liabilities COMMITMENTS ANDCONTINGENCIES (Notes 22 and23) MEZZANINE EQUITY: Redeemable 14,179 14,179 non-controlling interest STOCKHOLDERS' EQUITY: Preferredstock, $0.0001par;100,000,000 - - sharesauthorized; noshares issuedor outstanding Commonstock-$0.0001par;5,000,000,000shares authorized;603,170,380 and504,274,890shares issued and outstandingat September 30, 2021 and 60 50 December 31,2020,respectively Additional 2,525,750 1,501,206 paid-in capital Accumulated (688,483 ) (129,370 )deficit Accumulated other (289 ) (271 )comprehensiveloss Total 1,837,038 1,371,615 stockholders'equity 3,218,225 3,195,555 TOTAL $ $

CCC INTELLIGENT SOLUTIONS HOLDINGS INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME(In thousands, except share and per share data)(Unaudited)

For the Three Months EndedFor the Nine Months EndedSeptember 30,September 30,2021

2020

2021

2020

REVENUES$

176,628

$

157,754

$

501,205

$

467,677

COST OF REVENUES Cost of revenues, exclusive of amortization of acquired technologies51,273

43,879

128,218

135,674

Amortization of acquired technologies6,580

6,576

19,740

19,725

Total cost of revenues57,853

50,455

147,958

155,399

GROSS PROFIT118,775

107,299

353,247

312,278

OPERATING EXPENSES: Research and development67,016

26,816

128,894

82,131

Selling and marketing80,382

17,427

121,350

56,608

General and administrative142,511

21,893

208,745

66,460

Amortization of intangible assets18,078

18,078

54,232

54,232

Total operating expenses307,987

84,214

513,221

259,431

OPERATING (LOSS) INCOME (189,212

)

23,085

(159,974

)

52,847

INTEREST EXPENSE(13,878

)

(19,788

)

(51,548

)

(57,588

)

GAIN (LOSS) ON CHANGE IN FAIR VALUE OF INTEREST RATE SWAPS2,007

3,894

8,373

(16,633

)

CHANGE IN FAIR VALUE OF WARRANT LIABILITIES(26,889

)

-

(26,889

)

-

LOSS ON EARLY EXINGUISHMENT OF DEBT(15,240

)

-

(15,240

)

(8,615

)

OTHER (EXPENSE) INCOME-Net(93

)

49

1

304

PRETAX (LOSS) INCOME(243,305

)

7,240

(245,277

)

(29,685

)

INCOME TAX BENEFIT (PROVISION)53,523

(2,520

)

54,227

7,191

NET (LOSS) INCOME INCLUDING NON-CONTROLLING INTEREST(189,782

)

4,720

(191,050

)

(22,494

)

Less: net (loss) income attributable to non-controlling interest-

-

-

-

NET (LOSS) INCOME ATTRIBUTABLE TO CCC INTELLIGENT SOLUTIONSHOLDINGS INC.$

(189,782

)

$

4,720

$

(191,050

)

$

(22,494

)

Net (loss) income per share attributable to common stockholders:Basic$

(0.34

)

$

0.01

$

(0.36

)

$

(0.04

)

Diluted$

(0.34

)

$

0.01

$

(0.36

)

$

(0.04

)

Weighted-average shares used in computing net (loss) income pershare attributable to common stockholders:Basic566,454,782

504,212,021

525,877,533

504,062,587

Diluted566,454,782

510,694,493

525,877,533

504,062,587

COMPREHENSIVE (LOSS) INCOME:Net (loss) income including non-controlling interest(189,782

)

4,720

(191,050

)

(22,494

)

Other comprehensive income (loss)-Foreign currency translation adjustment11

83

(18

)

65

COMPREHENSIVE (LOSS) INCOME INCLUDING NON-CONTROLLING INTEREST(189,771

)

4,803

(191,068

)

(22,429

)

Less: comprehensive (loss) income attributable to non-controlling interest-

-

-

-

COMPREHENSIVE (LOSS) INCOME ATTRIBUTABLE TO CCC INTELLIGENT SOLUTIONS HOLDINGS INC.$

(189,771

)

$

4,803

$

(191,068

)

$

(22,429

)

CCC INTELLIGENT SOLUTIONS HOLDINGS INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS)INCOME(In thousands, except share and per share data)(Unaudited)

For the Three Months Ended For the Nine Months Ended September 30, September 30, 2021 2020 2021 2020

176,628 157,754 501,205 467,677 REVENUES $ $ $ $

COST OF REVENUES Cost ofrevenues, exclusive of 51,273 43,879 128,218 135,674 amortization ofacquiredtechnologies Amortization 19,740 of acquired 6,580 6,576 19,725technologies Total 147,958 155,399 cost of revenues 57,853 50,455

GROSS PROFIT 118,775 107,299 353,247 312,278

OPERATINGEXPENSES: Research and 128,894 development 67,016 26,816 82,131

Selling and 121,350 marketing 80,382 17,427 56,608

General and 142,511 208,745 administrative 21,893 66,460

Amortization 54,232 of intangible 18,078 18,078 54,232assets Total 307,987 513,221 259,431 operating 84,214expenses OPERATING (LOSS) (189,212 ) (159,974 ) INCOME 23,085 52,847

(13,878 ) ) (51,548 ) (57,588 )INTEREST EXPENSE (19,788

GAIN (LOSS) ONCHANGE IN FAIR 8,373 (16,633 )VALUE OF 2,007 3,894INTEREST RATESWAPS CHANGE IN FAIR (26,889 ) - (26,889 ) - VALUE OF WARRANTLIABILITIES LOSS ON EARLY (15,240 ) - (15,240 ) )EXINGUISHMENT OF (8,615DEBT OTHER (EXPENSE) ) INCOME-Net (93 49 1 304

PRETAX (LOSS) (243,305 ) (245,277 ) (29,685 )INCOME 7,240

INCOME TAX ) 54,227 BENEFIT 53,523 (2,520 7,191(PROVISION) NET (LOSS) INCOME INCLUDING (189,782 ) 4,720 (191,050 ) (22,494 )NON-CONTROLLINGINTEREST Less: net(loss) income - - - - attributable tonon-controllinginterestNET (LOSS)INCOMEATTRIBUTABLE TOCCC INTELLIGENTSOLUTIONS (189,782 ) 4,720 (191,050 ) (22,494 )HOLDINGS INC. $ $ $ $

Net (loss)income per shareattributable tocommonstockholders: (0.34 ) 0.01 (0.36 ) (0.04 )Basic $ $ $ $

(0.34 ) 0.01 (0.36 ) (0.04 )Diluted $ $ $ $

Weighted-averageshares used incomputing net(loss) incomepershareattributable tocommonstockholders:Basic 566,454,782 504,212,021 525,877,533 504,062,587

Diluted 566,454,782 510,694,493 525,877,533 504,062,587

COMPREHENSIVE(LOSS) INCOME:Net (loss) income including (189,782 ) 4,720 (191,050 ) (22,494 )non-controllinginterestOthercomprehensiveincome (loss) ) -Foreign 11 83 (18 65currencytranslationadjustment COMPREHENSIVE(LOSS) INCOME (189,771 ) (191,068 ) (22,429 )INCLUDING 4,803NON-CONTROLLINGINTEREST Less:comprehensive(loss) income - - - - attributable tonon-controllinginterestCOMPREHENSIVE(LOSS) INCOMEATTRIBUTABLE TOCCC INTELLIGENT SOLUTIONS (189,771 ) 4,803 (191,068 ) (22,429 )HOLDINGS INC. $ $ $ $

CCC INTELLIGENT SOLUTIONS HOLDINGS INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(In thousands)(Unaudited)

For the Nine Months Ended September 30, 2021 2020

CASH FLOWS FROMOPERATING ACTIVITIES: (191,050 ) (22,494 ) Net loss $ $

Adjustments toreconcile netloss to net cash provided byoperatingactivities: Depreciationand amortization 18,161 13,039 of software, equipment, andproperty Amortization 73,972 73,957 of intangible assets Deferred (66,499 ) (18,018 )income taxes Stock-based 235,413 compensation 7,471

Amortization of deferred 3,204 3,475financing fees Amortization of discount on 537 553debt Change infair value of (8,373 ) 16,633 interest rateswaps Change infair value of 26,889 - warrantliabilities Loss on early 15,240 extinguishment of 8,615debt Non-cash - lease expense 5,029

Other 54 42

Changes in: Accounts (8,332 ) (12,644 )receivable-Net Deferred (1,916 ) )contract costs (507

Other (4,673 ) )current assets (755

Deferred (4,504 ) (1,246 )contract costs-Non-current Other (3,221 ) (10,795 )assets Operating - lease assets 5,133

Income (2,846 ) 11,597 taxes Accounts payable 1,399 2,080

Accrued 17,051 (5,183 )expenses Operating (5,935 ) - lease liabilities Deferred revenues 2,861 580

Extinguishment of (9,987 ) - interest rateswap liability Other ) liabilities (882 389

Netcash provided by 96,725 66,789 operatingactivities CASH FLOWS FROMINVESTING ACTIVITIES: Purchases ofsoftware, (25,022 ) (23,815 )equipment, andproperty Purchase of (10,228 ) - equity method investment Purchase of ) )intangible asset (49 (560

Netcash used in (35,299 ) (24,375 )investingactivities CASH FLOWS FROMFINANCING ACTIVITIES: Proceeds fromissuance of - 14,179 non-controlling interest insubsidiary Deemeddistribution to (9,006 ) - CCCIS optionholders Net proceedsfrom equity 763,300 - infusion from the BusinessCombination Principal (1,336,154 ) (385,385 )payments on long-term debt Proceeds fromissuance of 789,927 369,792 long-term debt, net of fees paidto lender Proceeds fromborrowings on - 65,000 revolving linesof credit Repayment ofborrowings on - (65,000 )revolving linesof credit Proceeds from - issuance of 1,007 common stock Payment of feesassociated with (3,320 ) )early (29extinguishment oflong-term debt Proceeds from exercise of stock 503 618options Repurchases of - )common stock (123

Dividends to (269,174 ) - CCCIS stockholders Net cash used in (62,917 ) (948 )financingactivities NET EFFECT OFEXCHANGE RATE ) CHANGES ON CASH (162 108AND CASHEQUIVALENTS NET CHANGE IN (1,653 ) 41,574 CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS: Beginning of 162,118 93,201 period 160,465 134,775 End of period $ $

NONCASH INVESTINGAND FINANCING ACTIVITIES: Unpaidliability related 4,054 - to software, $ $equipment, andproperty Leaseholdimprovements acquired by $ 10,556 $ - tenantimprovementallowance SUPPLEMENTALDISCLOSURES OF CASH FLOWINFORMATION: Cash paid forinterest, excluding $ 47,312 $ 52,217 extinguishment ofinterest rateswap liability Cash received (15,119 ) 770 (paid) for income $ $taxes-Net CCC INTELLIGENT SOLUTIONS HOLDINGS INC. AND SUBSIDIARIESRECONCILIATION OF GROSS PROFIT TO ADJUSTED GROSS PROFIT(In thousands, except profit margin percentage data)(Unaudited)

Three months ended September 30, Nine months ended September 30, (amounts inthousands, 2021 2020 2021 2020 exceptpercentages)Gross Profit $ 118,775 $ 107,299 $ 353,247 $ 312,278

First Party Clinical - (645 ) - (3,035 )Services-GrossProfitAmortization 6,580 6,576 19,740 19,725 of acquiredtechnologiesBusiness combination 905 - 905 - transactioncostsStock-based 12,169 12,563 compensation 141 380

Adjusted Gross $ 138,429 $ 113,371 $ 386,455 $ 329,348 Profit Gross Profit 67 % 68 % 70 % 67 %MarginAdjusted Gross 78 % 76 % 77 % 75 %Profit Margin CCC INTELLIGENT SOLUTIONS HOLDINGS INC. AND SUBSIDIARIESRECONCILIATION OF GAAP OPERATING (LOSS) INCOMETO ADJUSTED OPERATING INCOME(In thousands)(Unaudited)

Three months ended September 30,Nine months ended September 30,(dollar amounts in thousands)2021

2020

2021

2020

Net operating (loss) income$

(189,212

)

$

23,085

$

(159,974

)

$

52,847

Stock-based compensation expense219,876

1,869

235,413

7,471

Lease abandonment 438

-

2,256

-

Lease overlap costs924

-

2,773

-

Net costs related to divestiture338

-

2,605

-

Business combination transaction costs5,516

93

10,471

93

Amortization of intangible assets18,078

18,078

54,232

54,232

Amortization of acquired technologies-Cost of revenue6,580

6,576

19,740

19,725

First Party Clinical Services-Revenue-

(7,830

)

-

(26,083

)

First Party Clinical Services-Cost of revenue-

7,185

-

23,048

Adjusted operating income$

62,538

$

49,056

$

167,516

$

131,333

CCC INTELLIGENT SOLUTIONS HOLDINGS INC. AND SUBSIDIARIESRECONCILIATION OF GAAP OPERATING (LOSS) INCOME TO ADJUSTED OPERATING INCOME(In thousands)(Unaudited)

Three months ended September 30, Nine months ended September 30, (dollar amounts 2021 2020 2021 2020 in thousands)Net operating $ (189,212 ) $ 23,085 $ (159,974 ) $ 52,847 (loss) incomeStock-based 219,876 1,869 235,413 7,471 compensationexpenseLease 2,256 abandonment 438 - -

Lease overlap 2,773 costs 924 - -

Net costs related 2,605 to divestiture 338 - -

Business 5,516 10,471 combination 93 93transaction costsAmortization of 18,078 18,078 54,232 54,232 intangible assetsAmortization ofacquired 6,580 6,576 19,740 19,725 technologies-Costof revenueFirst Party (7,830 ) (26,083 )Clinical - -Services-RevenueFirst Party Clinical - 7,185 - 23,048 Services-Cost ofrevenue Adjusted $ 62,538 $ 49,056 $ 167,516 $ 131,333 operating income CCC INTELLIGENT SOLUTIONS HOLDINGS INC. AND SUBSIDIARIESRECONCILIATION OF NET (LOSS) INCOMETO ADJUSTED EBITDA(In thousands)(Unaudited)

Three months ended September 30,Nine months ended September 30,(dollar amounts in thousands)2021

2020

2021

2020

Net (loss) income$

(189,782

)

$

4,720

$

(191,050

)

$

(22,494

)

Interest expense13,878

19,788

51,548

57,588

Income tax provision (benefit)(53,523

)

2,520

(54,227

)

(7,191

)

Amortization of intangible assets18,078

18,078

54,232

54,232

Amortization of acquired technologies-Cost of revenue6,580

6,576

19,740

19,725

Depreciation and amortization related to software, equipment and property7,694

4,496

18,161

13,039

EBITDA(197,075

)

56,178

(101,596

)

114,899

(Gain) loss on change in fair value of interest rate swaps(2,007

)

(3,894

)

(8,373

)

16,633

Change in fair value of warrant liabilities26,889

-

26,889

-

Stock-based compensation expense219,876

1,869

235,413

7,471

Loss on early extinguishment of debt15,240

-

15,240

8,615

Business combination transaction costs5,516

93

10,471

93

Lease abandonment 438

-

2,256

-

Lease overlap costs924

-

2,773

-

Net costs related to divestiture338

-

2,605

-

First Party Clinical Services-Revenue-

(7,830

)

-

(26,083

)

First Party Clinical Services-Cost of revenue-

7,185

-

23,048

Adjusted EBITDA$

70,139

$

53,601

$

185,678

$

144,676

CCC INTELLIGENT SOLUTIONS HOLDINGS INC. AND SUBSIDIARIESRECONCILIATION OF NET (LOSS) INCOME TO ADJUSTED EBITDA(In thousands)(Unaudited)

Three months ended September 30, Nine months ended September 30, (dollar amounts 2021 2020 2021 2020 in thousands)Net (loss) income $ (189,782 ) $ 4,720 $ (191,050 ) $ (22,494 )

Interest expense 13,878 19,788 51,548 57,588

Income tax (53,523 ) 2,520 (54,227 ) (7,191 )provision(benefit)Amortization of 18,078 18,078 54,232 54,232 intangible assetsAmortization ofacquired 6,580 6,576 19,740 19,725 technologies-Costof revenueDepreciation andamortizationrelated to 7,694 4,496 18,161 13,039 software,equipment andproperty EBITDA (197,075 ) 56,178 (101,596 ) 114,899

(Gain) loss onchange in fair (2,007 ) (3,894 ) (8,373 ) 16,633 value of interestrate swapsChange in fair 26,889 26,889 value of warrant - -liabilitiesStock-based 219,876 1,869 235,413 7,471 compensationexpenseLoss on early 15,240 15,240 8,615 extinguishment of -debtBusiness 5,516 10,471 combination 93 93transaction costsLease 2,256 abandonment 438 - -

Lease overlap 2,773 costs 924 - -

Net costs related 2,605 to divestiture 338 - -

First Party (7,830 ) (26,083 )Clinical - -Services-RevenueFirst Party Clinical - 7,185 - 23,048 Services-Cost ofrevenue Adjusted EBITDA $ 70,139 $ 53,601 $ 185,678 $ 144,676

CCC INTELLIGENT SOLUTIONS HOLDINGS INC. AND SUBSIDIARIESRECONCILIATION OF GAAP NET (LOSS) INCOMETO ADJUSTED NET INCOME(In thousands)(Unaudited)

Three months ended September 30,Nine months ended September 30,(dollar amounts in thousands)2021

2020

2021

2020

Net (loss) income$

(189,782

)

$

4,720

$

(191,050

)

$

(22,494

)

Amortization of intangible assets18,078

18,078

54,232

54,232

Amortization of acquired technologies-Cost of revenue6,580

6,576

19,740

19,725

(Gain) loss on change in fair value of interest rate swaps(2,007

)

(3,894

)

(8,373

)

16,633

Change in fair value of warrant liabilities26,889

-

26,889

-

Stock-based compensation expense219,876

1,869

235,413

7,471

Loss on early extinguishment of debt15,240

-

15,240

8,615

Business combination transaction costs5,516

93

10,471

93

Lease abandonment 438

-

2,256

-

Lease overlap costs924

-

2,773

-

Net costs related to divestiture338

-

2,605

-

First Party Clinical Services-Revenue-

(7,830

)

-

(26,083

)

First Party Clinical Services-Cost of revenue-

7,185

-

23,048

Tax effect of adjustments(72,360

)

(5,716

)

(89,134

)

(26,947

)

Adjusted net income$

29,730

$

21,081

$

81,062

$

54,293

Adjusted net income per share attributable to common stockholdersBasic $

0.05

$

0.04

$

0.15

$

0.11

Diluted$

0.05

$

0.04

$

0.15

$

0.11

Weighted average shares outstandingBasic 566,454,782

504,212,021

525,877,533

504,062,587

Diluted599,675,416

510,694,493

554,818,300

510,252,470

CCC INTELLIGENT SOLUTIONS HOLDINGS INC. AND SUBSIDIARIESRECONCILIATION OF GAAP NET (LOSS) INCOME TO ADJUSTED NET INCOME(In thousands)(Unaudited)

Three months ended September 30, Nine months ended September 30, (dollar amounts 2021 2020 2021 2020 in thousands)Net (loss) income $ (189,782 ) $ 4,720 $ (191,050 ) $ (22,494 )

Amortization of 18,078 18,078 54,232 54,232 intangible assetsAmortization ofacquired 6,580 6,576 19,740 19,725 technologies-Costof revenue(Gain) loss onchange in fair (2,007 ) (3,894 ) (8,373 ) 16,633 value of interestrate swapsChange in fair 26,889 26,889 value of warrant - -liabilitiesStock-based 219,876 1,869 235,413 7,471 compensationexpenseLoss on early 15,240 15,240 8,615 extinguishment of -debtBusiness 5,516 10,471 combination 93 93transaction costsLease 2,256 abandonment 438 - -

Lease overlap 2,773 costs 924 - -

Net costs related 2,605 to divestiture 338 - -

First Party (7,830 ) (26,083 )Clinical - -Services-RevenueFirst Party Clinical - 7,185 - 23,048 Services-Cost ofrevenueTax effect of (72,360 ) (5,716 ) (89,134 ) (26,947 )adjustments Adjusted net $ 29,730 $ 21,081 $ 81,062 $ 54,293 income Adjusted netincome per shareattributable tocommonstockholdersBasic $ 0.05 $ 0.04 $ 0.15 $ 0.11

Diluted $ 0.05 $ 0.04 $ 0.15 $ 0.11

Weighted averagesharesoutstandingBasic 566,454,782 504,212,021 525,877,533 504,062,587

Diluted 599,675,416 510,694,493 554,818,300 510,252,470

CCC INTELLIGENT SOLUTIONS HOLDINGS INC. AND SUBSIDIARIESRECONCILIATION OF NET CASH FLOW FROM OPERATING ACTIVITIES TO FREE CASH FLOW(In thousands)(Unaudited)

Three months ended September 30,Nine months ended September 30,(dollar amounts in thousands)2021

2020

2021

2020

Net cash provided by operating activities$

36,905

$

43,013

$

96,725

$

66,789

Less: Purchases of software, equipment, and property(11,864

)

(11,303

)

(25,022

)

(23,815

)

Less: Purchase of intangible assets-

-

(49

)

(560

)

Free Cash Flow$

25,041

$

31,710

$

71,654

$

42,414

View source version on businesswire.com: https://www.businesswire.com/news/home/20211110006211/en/

CONTACT: Investor Contact: Brian Denyeau ICR, LLC 646-277-1251 IR@cccis.com Media Contact: Michelle Hellyar Director Public Relations, CCC Intelligent Solutions Inc. mhellyar@cccis.com