CCCS - Earnings call transcript Q3 2021 | CCC Intelligent Solutions Holdings Inc.

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Operator

Greetings and welcome to CCC Intelligent Solutions Third Quarter 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Brian Denyeau from ICR.

Brian Denyeau

the you XXXX us announced financial press issuing thank CCC's to in and today. release quarter market third results, after afternoon, for today joining review our Good of closing which we

prohibited During are the CCC's CEO; the July we Herb, that that definitive Brian otherwise, risks in the Company laws. filed results statements in Githesh results actual profit Any consent proxy of X, or CFO. Relations are Opportunities vary forward-looking the same Incorporated. retransmission recording, follows implementation is in are Company's is for by the today or other the Further statement/prospectus Corp. release to these the today Chairman and risks subject The to Solutions the and heading Holdings and without website Growth Intelligent CCC's other Risk Investor make prior comments by States and on we've materially. Factors SEC of plan call, CCC available These copyright Q&A cause discussed and got the the Dragoneer use Ramamurthy, are XXXX. our and plans copyrighted violation earnings or our uncertainties the on on reproduction CCC, with under United the of

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

Githesh Ramamurthy

Thanks, do of to related future was our This growth and we to impacts trends power XXXX. ahead performing CCC for thanks to to positive continue our is solutions. all some for summarizing results. you the business Revenue investment some opportunities of to financial quarter. in line to consecutive growth for our due report today. and our business while plan year. start of Overall, generating the the that higher terrific that model guidance joining was quarter and quarter ahead up from of delivers fifth third and bottom $XXX.X us third to of million, driving like This XX% well rank initiatives. of basis our that in profitability. represents Adjusted in margin favorable timing is and Brian, top points of I'd together of by $XX.X invest coming our EBITDA the million, I'm our pleased wanted guidance was accelerated our us last levels three from benefiting divestiture growth. are than high nearly adjusted a XX% of to allows XXX We which was of demand results

first model. The deployment scalable and cloud flexible this the and our growing demand is for CCC platform,

value economy. to a insurance by is effects, able powerful P&C participants entire create are across network Second to of we delivering the each the

like strong insurance to going and leverage the some of digitization, to minutes increase is The of of the combination more towards key on in forward. early few innovate historical our than our relatively and sales. quickly deployment trend is The these $X us of data opportunity platform. its still trillion AI plenty expanding a delivering to from profitability highlights growth I'd quarter. the stages, spend P&C reviewing economy CCC of providing and three capabilities allows trends third The set that solutions continue

First, I'll how start are reviewing customers innovations. our new adopting by

expanded breadth of new results significantly growth delivered we years, cross-sell which across this we have our In to great In in depth expanded Our activity avenues providing QX, continue quarter. Many the our and the use business. business is trend cloud-based of CCC see for the now recent positively. the quarter. additional customers strategy product portfolio, of solutions

within renewal. example, CCC satisfaction and product for drive have It's of range This greater suite. revenue XXXX, latest the CCC deployed since many In has XX as is additional our deployed further they'll be nearly been number important fully rolling latest transaction, multi will customer top out. a mobile deployed out solutions customer products the additional this that part traditional our believe that these in significant expansion, solutions For meaningfully than solutions. increase including customer efficiency enhance We double five this of CCC they AI insurer workforce. across and from of their rolled this from solutions yet expanded a claims note when not customer who expansion of more a even management years has year with to products several this our this

We operators a new In of solutions, each market, the two a which drive to that sign of we of one repair for long-term renewals including workflows signed AI multi-store renewal added suite largest their the also MSO. solutions with with efficiencies. other insurers, into embeds CCC country's notable smart facility

mobile connect time, rolled our combines new our this customer the this This clients. Engage solution capabilities, of AI for network agreement, or applications create of all demonstrates repair increased several these that product rates, over their Each of adoption has that solutions, increased facilities. whether and across value next part its As examples model innovations of seamlessly we growth existing commitment to for it's powers number annual retention out revenue CCC the growing our of years multi-year workflows. best-in-class with our partners turn in to ways

revenue objectives. their as CCC each the these they a for customer annual expanded we for with solutions With transformation commitment they utilize renewals runway to of number significant to serve digital significant broadened have platform. our opportunity we We growth every of almost the customer's and accelerate

and additional growth our pleased there are is highlight, into continue second to still which opportunities leads our We customers. believe are us want our with customers to innovation. terrific product of from I This the area each solutions select

provide to believe with cases have will passion development foundation in the update expand have innovation size the challenging our we solutions. for and bring of that a I'd built our solving comprehensive solutions market relationship to that most on the efforts industry, insight course platform an have us the few with newest and the an business additional increase our a early front of and a the built quickly the some into like personalization have a of Coupled many confidence deep most cloud We market we decades, to be We enables demand. is customers. product problems feedback of developed facing in on it customers. a our market great with that to how prioritize we over potential

exciting the released this solution straight-through seeing that year. processing to are or earlier we Estimate-STP We success

impacted This including second these from our improvements of are magnitude customers' owners actively recent line insurance to level carriers factor service this deep institution heart We sophistication been USAA and provide policy. goal qualified photos estimating facilities, other first low the of CCC customers is especially have fully insurers, damage, have range are A estimates deployment These the to received policyholders. that of as in repairable of wholly claims provide covered automakers, XXX names Almost by more and deployed be can claims the and have grows. same to Street or Estimate-STP end-to-end workers. repair. which Wall photos estimating for to touchless noted digital in leaves all fantastic the result A these this, suppliers, at and the or historical in our I industry not realizing are the a of customers is accurately now and process is customers replaced integrations significant years repair and offering workflows. where the assess seconds. disguises and shortens of from Journal, has reaches vehicle by and over The The that able populate being repaired estimates It as of those prospects, what in success time, members. years longstanding are parts a we developed USAA identify of to a parts been days P&C an personalized to a an the and and deliver complex capability President to providers division At USAA built provide Estimate-STP article billion shortage story need from detailed customers process highly instrumental processing to claims from automatically early a to a sophisticated is orders claims incidents cloud represent now national the top for On we business vehicle algorithms, its service for qualified repairs AI participated initiate trillion this our have actionable XX% striking systems manner. here. of carriers feedback its of network using experience Four a a solution designed Estimate-STP dollars are getting seconds. and improvement. as well implementation. data to to touch At has no the including we

Estimate-STP of been efficiency has greater. never and speed for need the So

area to be financial needs diagnostics to to systems operational what is of partners Another and repair analyze the integrate where and are part facilities an good assess properly into repair effective traction the provides as facilities easy with our need and calibration process. today's increasingly way which sophisticated solution, generating we to fixed Repair in diagnostic vehicles workflow. their the

better in provider build the efficiency process compliance importing and diagnostics which Additionally, process they report the and facility, need invoice, revenue simplifies procedures. the for by creates diagnostics experience and to operating a including recognition. CCC greatly repair standard greatly improves

including early in with our diagnostics, deployed, strong the solution. around the multi-tour top repair but operators of of using the are early are seeing facilities currently adoption stages We with two X%

potential We track for reinforce We processing growth with billing the and that in our payments rollout opportunity significant in partner. our This payments, CCC our the is confident also belief our a payment of conversations on rollout. long-term which recently through integration customers are the early first in pay deliver. CCC with released step the payment payments with invoice on payments an enables and its first iteration solution. the can important tenants And remain of value

long-term not As opportunity important this but an a will it reminder, material XXXX. revenue for a is in contributor CCC, be

is customer next adoption. refine to the begin product focus and year to Our scale

the us allows is the generates developed most believe, have extend third to comprehensive expand our solutions amounts our an reach like of in of data we to to broader providers, tremendous us institutions I'd how that among market to array a We and fleet An we OEM of is to continue emerging on provide platform area to to offer areas financial that our This The market. emerging update area others. the for the network. rental CCC OEMs from allows channel. customers

a the OEM the by repair of process. the insurance of provides newest our to is this within our OEM connectivity across domestic technology, other During the Assistance launch OEMs. We as the platform owners' believe which now with auto on step with added past relationships the Toyota instructions of apps, participants economy. apps, its post-collision is great provides CCC the on built the Toyota OEMs key quarter, navigate opportunity XX value the August, is two a the and Collision the existing of customer our customers the available and expanded platform. have and and In announced example space we and OEM XX as how We in Lexus step

the signed auto the Sedgwick Another independent of deploy announcement with auto with X,XXX from a offering and related agreement Loss exciting and quality which to and more pilot example heavy lender total our is entitled to letters of recent solutions power network high to appraisal multiyear automate to equipment loss a Sedgwick, Care loss to resolution. digitize designed requests CCC's Total We program, guarantee of appraisal and mobile solutions workflows of resolution. leading level than launched way its provider process our claims AI appraisers. notice is from all the the first payoff and

discussed view we largest lenders top we These of just piloting are solutions, some with into We prior also platform. and signing integrated have examples. release In earnings our how few multiple CCC. customers a five the for carriers economy relationships and make opportunities evolve. we auto the growth more agreements will the like prospects calls, to investments our up have wrap lien attractive that and taking P&C or deepen create gig repair are show partner fleet and solutions value our needs large focused will on all are our the I saying insurance future in markets. in for that make with outside of drivers. plan to ability providers facility generate and to We how our emerging economy performance. meaningful tech-enabled Buckle long-term an platform continue for by of market these business What about potential traditional current to low companies customers ourselves leverage like is the to of We examples have the additional excited identifying of a pride how CCC, our would is insurer

we insurance been has and for providing Market both profitability our the our in in a economy, and of year. feedback the in favorable cloud-based of the never P&C digitalization product which technologies and the ahead pace and the great thrilled guidance receiving, of are our are growth interest And we We spending potential. growth raising targets customer gives confidence with that solutions. again quality future greater our adopting environment innovation us are for

be Brian, I'd the after take which we'll turn call like Now, your happy it questions. to to over to

Brian Herb

on revenue provide at the us our Githesh. and revenue adjusted Today, excludes 'XX which the last third of best a of casualty quarter the quarter year XXX.X XX% services, quarter all the product for divested review at, portion Total performance was From can and I'll third We an end XXXX. look professional this sequential perspective, clinical quarterly a from prior XXXX from fourth of provides business, quarter growth our our be We today. trend basis, on of for And adjusted the period for Thanks million, of a that joining is so at revenue, like-for-like accelerating our full growth. year. XX% looked into the the year believe line, growth view up basis. growth results year-over-year basis. on underlying an thanks fifth guidance the

segment. installed new Our cross-sell our facilities, and solutions, our client the base. being within by coupled gross with driven repair supplier growth primarily solid logos, is into the of up-sell largely newer Across portfolio, including digital and adoption parts customer product from

recovery contribute the for While we total some increases on playing small see X% on track remains of do impact continue from in a it is recovery, to relatively transactional to quarter approximately volume year. growth the full

key amount to of is our of our which dollar value QX GDR retention believe, XX%, the the to our from base software customers prior retained now We captures software Turning our the or 'XX, we gross revenue effect. the consistent it client In historical metrics, the GDR reflects stickiness levels. compared was with provide and network year our period.

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

range. volume the QX captures and NDR existing of referenced, software NDR had cross-sell well or last as Similar to retention our dollar net 'XX, period, which performance this Githesh was our software up-sell the Software Few cross-sell large base. as quarter compared up-sell including above underpinning customers components. and to amount the from In client was renewals movement XXX%. factors NDR significant year our prior APD within historical

the adoptions impact quarter. strong combination mobile, activity of saw the some of installed recovery In volumes at also new had of across end like about of base. AI solutions We our from in a transactional one client impact, point hurricane COVID engage,

revenue Software customer the comes base. NDR growth is our given a from key majority driver existing of of our subscription our

the in detail. Now more income to review statement

last otherwise gross Adjusted non-GAAP quarter our the to of profit GAAP non-GAAP. compared As the provided quarter margin was the third cost and profit profit margin to strong gross XXX.X of notably in the base a million, of reconciliation semi-fixed scale year. revenue. financials in We've Gross reminder, of metrics in and XX%, the economies with XX% of press reflects all was increased the fixed unless margin profit noted, release. cost a are quarter of gross and relatively in within

for hiring in discretionary was costs lower like the expenses XX% operating coupled to we ago. XX growth quarter, the the of expenses, in February were being than COVID. up Expense lower anticipated, somewhat ongoing a slower travel Turning with operating to effects non-GAAP million year our quarter, to due

hire We adjusted growth that quarter core for of a areas XX% which million, EBITDA continue sequential and revenue XX.X to forward. levels the This within reflects the I see EBITDA outlined. to margin. in Adjusted aggressively and XX% just performance our step-off lower investment operating expenses expect to is spending was going Adjusted grew EBITDA expect year-over-year. the outperformance

objectives our however, in in quarters. future for margin at expect remain EBITDA performed highlights which strength the XX% outlined, to focused remain model, the investing remain We on in upcoming the well of do you do margin long-term confident on growth. While that not the 'XX, very business we we we've level

Turning debt. leverage million cash with XXX.X now XXX of balance to equivalents the We X.X At cash approximately net flow. the the end was quarter in ended cash and and and our quarter, times. sheet of million the

to run to quarter of the XX flow benefit onetime Tax tax refinancing a related XX% payments COVID annual the the associated refund rate year. debt. the compared business to than include the in the the prior have XXX existing and a and with reduced leverage loan million facility. of a effective also more with million in we XX did for interest our on new credit secured reduced interest proceeds prior million from more relief cash our facility to cash our Free revolving prior XX secured than from and balance a was with compared X%. strengthened together combination the million program. year credit to by federal combination further we transaction, business senior This refinancing our million successfully rate During quarter completed term sheet the This X% XXX

converted free unlevered flow our of cash year-to-date adjusted flow. XX% into on EBITDA at cash we basis, an Looking approximately unlevered

Now in quarter. guidance let's fourth just finish with the beginning

quarter. revenue point. We at on total revenue adjusted for the represents expect year-over-year million XXX of basis million XXX to growth This the an XX%

We expect point. between the million the quarter, which adjusted margin EBITDA for adjusted XX a represents to EBITDA million at XX% XX

year. full raising For we outlook the year are 'XX for the our

performs the represents momentum EBITDA EBITDA a the points expecting revenue final expect adjusted margin between at XXX we We strong million an XXX million, wrap to We now and business or growth the year-to-date. at to it XXX are on million XX% few up revenue experiencing across adjusted basis which now midpoint. midpoint. to million consider, year-over-year XXX adjusted XX% are To underlying between well

This the revenue profitability within highlights quarter both our of combination performance combination the growth, model. and business

Our innovation we that our efficiencies value-add to focus believe are adopting And we solutions that, customers as significant are shareholders With on to continue questions. our engine ready we continues are over time. deliver a take to drive now you. generate Thank value to well their they to and customers business continue journeys. goals their digital address to positioned finally, operator, both our and to some

Operator

Thank you.

comes Please be a Our Suri now session. proceed. Instructions] with Bhavan will question-and-answer [Operator William conducting We first Blair. from question

Bhavan Suri

congrats want quarter. I team. taking my really, Brian touch to job I and guess a on solid bit and question Githesh, for Nice AI there, about the Thanks really a module. little

to what value, adoption You've the the around module of, side really adopted Obviously, AI is then have the base drives size out innovation, love have both in repair understand sort of on streamline seen the adopted process. shops planning the of, importantly, insurance but percentage repair modules to think really next of this more the shop XX the months? feedback nice and sort or I'd in a and customer as what module you about carrier

Githesh Ramamurthy

very, starting second on as good just In words, the with the question of part it's solution. second use have your other call. The Bhavan, have we you Hey, of carriers I'll the very we very, the four to to part your outline, few. is question. to answer start

also announced and is which collision early We solution adoption. for have Estimate-STP, in extremely our AI repairs its

to start So of want kind with that.

have very an other on we we're and What smart something have we've we we this we've like a is estimate. write AI the excited to that fundamental years, ability assisting, estimate, literally call done. super had for Estimate-STP where that been announced working solutions Now is with breakthrough to

So, a consumer what allows to does it this photos. is take

to then a process the First link the And calls photo. of photo AI CCC, carrier all, consumer guides and sends uploads carrier. taking the then our to

So, the are claims that eligible.

so we claims large line can our go there's if go this offering And built can literally 'XX. complete So so President Journal a seconds. that, AI rules, it a that And is offers sophisticated a less question? The said, know in USA. an the answer saw your which through have is experience. cannot Does of fairly engine touch that a number level through don't do the been estimate which of this, touch routed and in first this. He then Street able article. they've creates Wall a look, less that time Well, I you whole, be to

Bhavan Suri

think I'd bunch leakage, especially what how the double-digit network next guess guess, lifecycle, right? parts like as the number or which bit love streamline carriers with bigger face, sensors fluid from for facilities within right? benefits move figuring of year there's claims local challenges parts to hyper to dynamics, local to turn love I and I while what's hyper But little does. There's When more And complexity of minimize the I'll the and over a the exactly in person. the of more it and you the talk talk you for platform It electromagnetic effect to the of about et five a you complexity I'd about more trajectory, claims some out here, data. data electrical you the inventory? facilities as three complex cetera? follow-up, of here. can repair especially get you a electric happening number to in all and

Githesh Ramamurthy

specifically, fundamental are very this. think three really I things very we that drive say, will would Sure, that

of of is So, sheer amount parts. complexity the the say the in first, I number would

I've a what had been ago, few years bumper have but So a parts. XX might

Now the same bumper parts. is XX of made up

is car XX,XXX over average the parts. So

how do car. complexity the take So, car, the the you you repair how apart of

amount vehicle massive a of there's inherent complexity. So,

aspect of So it. one that's

combination collision front adjuster, you so, or have particular never in you're if may repair this an you. a seen of And repair

permutations particular as accidents, have So geography, combinations, look you in this this at seen. the may this vehicle never you and of type

you AI extraordinarily complexity assisting, So need, so that important. is

across Second, you of extraordinarily given other why is the what CVSA, second everyone's of claims These every local massive out, people scale, factor said and process got of into I've produces All data can labor a are in repairs, and shortage important pointed a local this that of fact it. hyper customers That exactly, a zip we and becomes important. means labor, our become local is are every local the board are also, data this as third, tremendous park kinds seeing them. we complexity the super breadth with this amount deal And the excited code, technicians prices, about extremely for as rates. right? and huge deficiencies huge. hiring complex

continue there's And also all third add of ADAS, point we're second kinds sensors, come that complexity I exactly things so, mentioning, element and seeing was in. as said, the EVs, cost. And to you

Operator

Ader comes question with proceed. from JPMorgan. Our Please next Jackson

Jackson Ader

Good evening guys. Thanks for taking questions. our

in I Is seeing can't single waves. it go Engage We're The software some maybe rolled These one the on big I'm for or all is first Engage, what shot? guess that? out repair has like the is things in rolling implementation that looks out facility curious location. to question implementations. other every

looks So, what I'm across when someone adopts rollout empire? the the curious like Engage

Brian Herb

the across of of days. part is repair locations platform this in get XX reason initiative done Again, lots our Yes, even a large at we with is country. can Start the the facilities cloud-based. fundamentally typically this MSO get and large, a

insurers, no schedule an cloud, as to is this to of is to There's appointment. local things None install. allows no over soon software Engage as all there So, in. deployed these hardware policyholders And the add. also the come

we their the in have repair collision facilities So, schedules the of production cloud.

repair So repair, cloud the when appointment the a need can go the says, into collision drop and directly facility. a on they I calendar it consumer schedule to of

-- So, the are pretty inside we generally and can the straightforward quarter. so rollouts

Jackson Ader

you that's dying payments, just payments faster? are step, their to great. like then, be kind right us we're what, steps pain remind big so of And capabilities can into integrated the so thinking they have the Can paid points, now first right, who's biggest that the payments stack, in about where

Brian Herb

Sure.

inside So and like. up claims types We cases in 'XX, I payment which again, from use those involved versions There for where facilities, exactly, liens? half repair doing the repair that deductibles did How with for they the have very banks facilities? now the early I the as we the is do do some integration our insurers hold the running. we are pay our our and pay time, by working partners, how our At What going with certain we're same also who of opportunities medical did of can solutions, that up were process. the of And payments get payments we specific stood use cases. payments the platform, platform consumers of up have stand to some we working exactly got second we said platform that. on

product. to Score working is tested, those get a those trying we've points. focus with do Promoter why this customers what to we're it is, that's specific use use early on really cases. And been deliver Net able the mindset piloted, frankly, refine get cases we're right defined, get them on that So them And of to pain just substantial on is getting

Operator

Our comes with Prestopino question Gary next Barrington from Research.

Gary Prestopino

logo going to can that? in Or give the the you was are organic or that in you give did what the give you growth breakdown Brian, quarter?

Brian Herb

to Happy Gary.

posted we adjusted XX% basis. revenue So, on

and And representing new growth cross-sell that's was across bay. driven XX% repair then of from logos. facilities, mentioned, that parts I largely suppliers. up-sell been was we've from So, the And our and our the XXX software as NDR,

X% then revenue for gets cross-sell, XX% So from think logos up-sell, and you the if you adjusted the that about quarter? XX% from new

Gary Prestopino

change it then move quarter, mobile, amount QX of upwards that Did you about bit? that it about the processed little materially gave statistics And in the some did last claims was through of needle kind were or Githesh XX%. the a

Githesh Ramamurthy

that Yes, these right. of into are went to starting points. bit the because But is see. are platform, AI key percentage up a mobile interesting also ticked It our funnel little a what is it up couple we really claims

So it context, think as you about that have well. in to

So years implemented well well. facilities, became carriers sequence to wise AI for claims we three for and almost as mobile repair the as two, or it funneling for ago, as XXX as as important a channel very

Gary Prestopino

but lastly, you then, to something or ADAS, to be into calibration, diagnostic take new have where cars anything AR on Do you get calibrated? a they having to even these have And account you out back that may some need electric cars handle what products there, and So was? have do to it with calibration do even with especially a there's do the how collision that with fixing bumper, to repair? you're of

Githesh Ramamurthy

fact, exactly in Gary, is we we're what would this seeing say offer our I why diagnostics Yes, solution. that is,

So CCC I'll you take scan you give And vehicle a to the actually integrate CCC allows from that important. a couple into solutions diagnostic of one. statistics. that's really the been

when number If tells X% through have you means scan. at vehicles modules look you scan. a cars of was roughly understand And other the that vehicle issues, QX of all that folded. it's In or it XXXX, that That what airbag QX are midst you going diagnostic of all of then to at a the XX% calibrated. things need deployed of be XXXX, diagnostics for

out from is we're earlier but already So why QX essentially XX% in of capability. couple of capability. complexity X% diagnostics MSOs QX nothing and and as will to going course the starting increases, as our our we roll investing a, diagnostics there to question, XXXX, XXXX have as I the This a scans is repair facilities it's over the of And increase. we from of mentioned, see to you're

Operator

Kirk next ISI. Please Evercore is Our from proceed. question with Materne

Kirk Materne

platform, I was customer it a their of AI-powered sense or sort that can curious, there either your just embedded running about into time I technology legacy the Just was get stack kind just of technology from for done involved, the how and quickly from kind customers? like Githesh perspective? maybe to a was sort estimation an get any get It process some guess value friction of, business technology, curious gets even stacks of existing with on trying and it? on. to up I

Githesh Ramamurthy

Sure.

me done question. the we've So years start or with XX, answer let last that over to XX what XX

our integrations, customers. first each foremost, of very carrier we've the and deep cloud, and integrations So real CCC time cloud built our between

interfaces. real that amounts security, with so back going obviously built and those tremendous integrated their deep systems we've time into we're of data with So forth,

So the adopts on when then side AI running solution, a our of our actually they're client integration.

carrier So last the the the what years. the sending through consumer, our policyholder have or types are then going we're consumers for already built our to AI the we same cloud, running the data CCC back, for to the sent link models goes directly being pipe producing estimate. is cloud from XX is the the on And back the XX

two, your question? that customers XX these adoption the is one, massive without of or having also and efforts allows really quickly. So the pilot Otherwise, over years these this Is speeds last and get XX exactly three that up integration test all integrations year to why this it built of answered running, capability. to very it

Kirk Materne

that base time, meaning? Brian, concert or your a for be curious start nice there's maybe any expansion a seemed point kind aware to opportunity clients. all. I And you there's for up-sell thanks. inter-acted should really Yes, we it obvious we fourth be quarter either all? seasonality that’s out? and Or realize one to talking would Obviously, but that renewal you influences helpful, understand the lumpiness expansion complex if Is deals, all if the a for spread you all if I with there multiyear renewal if the cross process of about quarter was you, of at just in probably an that your should super with obviously,

Brian Herb

not renewals, spread Most of there's seasonal, they're year. the drives out are that a deals, the clients really on across and carrier our multiyear

So, not renewal. with lumpiness real there's that

renewal good of with really have retention We rates the dollar gross XX%.

So, opportunity important we're front confident Githesh our of there with in we the us very I core was covered a in that remarks And renewals, growth the ability as his other opening in is think material to ongoing the part expansion well. which as see of point renew.

Operator

comes Moore proceed. CJS Our with from next Securities. question Chris Please

Chris Moore

prior mobile follow-up penetration. My question just a a first regarding maybe on the

kind that two now, an I was is mobile that? a penetration comment I'm to that you kind the trying of is just goal AI. getting mobile there, year chicken of a that couple egg understand there mean, do is XX% low of it years? do of the and interesting mobile could the penetration in If to target and So, to look in three what penetration? to of of like kind mobile funnel XXs kind

Githesh Ramamurthy

Chris. average Sure, our I gave you Good customer was base. the number to have across you When on an call.

as mobile adoption high mobile adoption. So some XX%, as we have XX% XX% customers

the X% in customers certainly continue this or will have to adoption. you You happen. And mobile see some X% that will

precondition. get is that mobile not AI, an Does a it So for but help? it is accelerator

Chris Moore

helps it for sure. Yes,

Githesh Ramamurthy

channel way. way, with degree other continue to because could mobile to for want in dealt it of mobiles that and including It'll for a off produces, and mobile benefits who the digital capabilities hours all repairs, collision be social of consumers with our worked customer especially very a also provide move customer produces satisfaction it and distancing, by the high

Chris Moore

the just number. Maybe more on one

things So on the just about I this up Brian there. Were Is that gross there this economies think talked going scale. we even other side? level high. very won’t not anything margin should at else -- margin assuming there scheme] [bond of in mean, to is with obviously, about the there? I'm gross level, stay XX.X%,

Brian Herb

Yes.

scale leverage quarter it this as and getting we by quarter the towards think It that The about did margin targets, talked XX% operating but over lower, do begins pace. guide, So fluctuate the benefit we The feel fluctuate strength up impact talked power of said, time. we kind moving quarter long-term the it when margin revenue on of slightly some and well. quarter about as cost I have XX% from But we the strong we and also will the long-term we as growth. guidance to has clearly the being the the quarter good hiring really overtime, gross about that XX% the and about talked to bit. highlights model a will setting quarter of to to

Operator

proceed. next Our question comes Please from Yitchuin Wong with Citi.

Yitchuin Wong

want you. Githesh, I first go to to

of out seeing You us and give CCC usage of trend providers there. CSP in Can very of and about usage models you definitely cloud growing colors talk growth us more and consumption cloud, you're of percentage kind customer cloud of going quantify and the seeing in BXC help of use what data the forward? the of that strong usage then you've cloud progress our opportunity on many kind the been

Githesh Ramamurthy

been Sure, clock actually a we've I decade. rewind the platform a bit, for to little well over based a cloud want because

years single and out them facilities our years is cloud over we platform Every providers. if insurer retail a our going on on rolled our nationally XX put In parts platform fact, XX, all XX ago. back cloud based not

a for So have been for first us, decade. well cloud we company company over are a first a and cloud

this percent So that are Does cloud we are any many platform. because say, don't not that report in many completely so based question? metrics cloud, why so cloud, are is percent we our answer well, the been

Yitchuin Wong

guess, growth more usage Yes, around? customer seen I your among been your or among Like Has across trending? or usage trends more around there that, cloud how's you've cloud that more cloud base. it's that

Githesh Ramamurthy

Is applications the about for that CCC. mean? other what saying you're themselves outside customers of you see I

Yitchuin Wong

Yes.

Githesh Ramamurthy

Yes.

CCC applications cloud for well Okay, decade because been all have over a of based.

completely cloud. are we So

cloud are relatively which it's on we would most still, I internal adoption running for are Most components say platforms carriers would moving are of phone, the some starting where cloud. move it. a carriers. of to So part, is for to who There the to integrate say their slow people I some theirs. systems, our on-prem

of go I say to pipe probably, the think say, say because And that systems they transition slow pace. to to have because connect several you this fairly most is why when the percentage, cloud enabled and So able been is our part, but many it's give is the from immediately, systems, our customers put for many, customer I precise like happening for to become And our I I somewhere solution, years, cloud will a between, we do our what cloud we're them essentially would it hard at instantly. years. probably, would benefit the would

Yitchuin Wong

And then growth calculating OpEx slightly calculation, looks OpEx your R&D expenses and off. next, mentioned it the just expected, it being Brian, looking lower be lower down you've hiring non-GAAP some over because is might of and than like

in see you do engineering where's where more person? trends? wondering, just folks you the or most your finally, challenge it for guys terms sales in I'm Is biggest focus hiring? of So, hiring Thanks. And the more

Brian Herb

Yes.

on hiring common is That for is around our had initiatives. in said, strategic our than R&D engineering as the broad based. we and the hiring So, teams, focus our planned biggest lower being we area focus

coming is biggest for forward on engineering, and will R&D, So driving going out. building that's where solutions we see for-- new the around both growth, focus innovation,

we of go be as So, forward the that Company. the the will across growth across focus

Operator

session. and of end Thank to to like I you. for Ladies gentlemen, reached question-and-answer the the turn call we Ramamurthy the Githesh any have back closing would remarks.

Githesh Ramamurthy

joining Thanks everybody for in.

from super we heard excited where about As you probably us, we're are.

the insurance We're customers. working us have and substantial for We of call you to see a about fantastic Thank base the we're today. on the economy. number digitize on innovations of excited joining P&C opportunities continue to

Operator

This conference. concludes today's

for may your time. great You your at participation you much Thank and lines very disconnect this day. have a

CCC Intelligent Solutions (CCCS) 13 Nov 212021 Q3 Earnings call transcript