CCCS - Earnings call transcript Q2 2022 | CCC Intelligent Solutions Holdings Inc.

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Operator

Greetings, ladies and gentlemen, and welcome to the CCC Intelligent Solutions Second Quarter of 2022 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, Mr. of President Vice Warmington, Investor Relations. William

William Warmington

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

are Further, the and to The Relations implementation CEO; that plans or our annual Any States profit CFO. Ramamurthy, Q&A prior CCC’s materially. statements otherwise XX-K without Factors retransmission, are the results may and we on other today releases Risk same make a that the subject actual of follows or Joining the and are the in in CCC heading call and These are vary for recording Chairman the Herb, risks uncertainties CCC laws. use Incorporated. Brian me under Githesh on or XXXX company’s plans and to CCC’s prohibited other discussed forward-looking comments results and violation of reproduction risks and consent about of available Holdings these company’s Intelligent the on website of cause copyrighted Solutions is and the the report earnings SEC. our copyright United the and by Form filed Investor with

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

Githesh Ramamurthy

$XXX us Thank you, public returning week Bill, important company. and their marked our thanks their to support. to top joining are CCC pleased customers million, quarter a CCC’s of our year-over-year In execution the ongoing for that I’d year full to XX% and our milestone revenue strong guidance markets, in that of and trust revenue Adjusted CCC EBITDA and quarter to range. as adjusted all for XXXX, one our EBITDA am continued the I opportunity thank the public shareholders range. ahead an you today. year. total our line up raising delivered was we This was take second and report team of results, another for journey ahead $XX our our of of guidance for also million, thank in CCC, to of our tremendous like this for year-over-year thank up bottom XX% their and guidance anniversary

call, highlight was margin like that underpin performance. three XXX XX%, points our themes EBITDA I’d today’s adjusted On year-over-year. Our to basis up

business cycles. CCC’s through end model resilience economic and a is first The of range the of structural markets

for we round call again United our growing The to efforts. from solutions how of momentum firsthand businesses use customers broader they Colorado customer’s from model our market vast home. ability budget with evident the to and business event discuss the Over a direct person. creation solutions. our in our councils. we insurance clients makes for work economy At our progress insurance car This advisory number is in May to was would vehicle clients operational consumer’s tables, economy challenges in long-term The And need. can resilience the mandated less The and strategic part classic the durability customers. that majority and face invest broader in our insurance discretionary market. business the sessions for like of solid in The auto theme. the decades is This to States, the to everyone STP customer the markets we’re industry-based near conference, joined begins in the second solutions adoption our drivers of example with importance first in XXXX. of us help guide there you making great Start our personal their of a meaningful the coalition XXX are Americans is from challenges was to their innovation third of highlight I’ll improvements between diagnostic we exchanges, see It a to opportunity conduct efforts. XX complexity. is hearing Estimate-STP are conference a delivering repair really our and and the and where Springs. us we we innovation when is of the first vital they our in-person our serve. for I held own helping from win-win experience end Auto their the These increasing since they four-day deal the clients insurance us move to is this of about tell of with auto where which auto our deliver all sturdiness and customers refinement CCC and where provides across

being operate our concurrently, markets, consumer are in pressures, rising by macroeconomic three end customers Although complexity, and forces they significant resilient impacted expectations.

and sense consumers and and with. the wages. impact average has the to The customers claim total parts rentals moving to Advanced overall. insurance Labor of the XX% driver less magnitude our in vehicles the short almost everything repair rising from supply. are $XX,XXX currently macroeconomic To vehicles assistance the are technicians, the happy auto just pressures, insurance them of longer affecting in need dominated from our of are this driven vehicles, inflation car of and Clients customers processes The complexity people tools with needed them. Supply meaning headlines first, and complexity challenges, chain a times, repair repair and systems, of repair longer months. the impacting to the macro electric from from pressures across ecosystem to to economy cost and for auto the the are about about give you increased diagnostic loss claims staff to struggling cars to time $XX,XXX appraisers shortages vehicles the complexity. systems insurance on of repair has dealing XXXX

to customer expectations from of efficiency combination and accurate help consumer AI-driven of terms multiple in complexity antidote to that greater faced It through in from from in greater speed one island profitable challenges the ecosystem. also moving others complexity accuracy and processes clients CCC and manner. is ultimately tools There’s network to clients challenges was assessing all of operational constituent resolving increase by and The at this levels, presents or to the of simplify insurance indirectly. integrations an our making no shareholders efficient either and convenience directly with rising my that execution in growing provides clear expectation complexity terms growth. an speed, and on a claims Specifically, and support affect decision the personalization. conversation one that

over now our speed becoming data combined noticed clients industry are of our first decades. leadership shift rely to solutions. also a someone are These be now for claims technology connected to billion deep product. industry well claims developed help relationships the handling and leveraging $X the CCC, network, customers auto and towards customers paid historical longstanding long-term our artificial try by we using new United predictable This more leading first. on out interesting of customer us relationships usually underpinning financial become why the for of our our resilient combination the with else our vital, over efficient and in each But are wanted past, be asking a the many intelligence, Fortunately, an mission our of increasingly expertise inclined insurance And critical trillion over new close with to accumulated I’ve positioned model. power is functions In States attitudes insurers year. also to in $XXX

have contracts. from to from our under We revenue a volumes, XX% XX% portion of transaction our of gross of software a reviews our claims medical of year than to parts regional About three carriers, which comes retention less rate tied XX%. dollar And and five is suppliers. revenue is bill

product a reliable large digital time, sold result, become X% year-over-year. one has others. the of the loss total year-over-year We where insurers. across of dealers, customer including And Today, As products Black delivered CCC revenue pandemic customer resilience OEMs, parts for segment over solutions has multiple we one event facilities, still That insurers suppliers, growth CCC’s to revenue our grew with repair and began diversified. provide base the and decades. up increasingly during held revenue groups, Swan dozens

continuously way behalf. into are tech vehicle our on theme, cycles take challenges customers’ business of not than sell claims to multi-year that of value ability most our to the deliver of deliver Another business and better we that results before, is core differentiating systems. on The to inflation, model. CCC’s our on solutions modernization we policy a of versus are already and delivering underwriting labor enabled throughout invest implementations the directly and matter the XX CCC we ensure wraps of and tangible up can characteristic supply doing us What profitably business are is we has business operate a or in weeks business R&D side shortages my the businesses our the customers’ months and our chain based all for Because to able first complexity. insurers’ in impact model days. economic our side in projects resiliency years. I This not cloud, durability results This mentioned ROI means place and fast structure that time can IT issues insurer that clients less in

three of momentum The is are processing and insurance a financial application grade would requiring and we Then is processing actually if right, automatically, to the varies insurance I demand doesn’t that I’d talk are services about and applications. becoming to broader Adoption process, it’s adoption the time. November estimate through much insurer an trading. knew creation because industry, last Six pave get that growing pressure hundreds in tens like it that second auto the claims first human We with that would insurers, we process. but the by more in step, days of could financial today suite that insurer And refers first auto easy writing QX innovation are auto theme of manual way eight. efficiencies States. to we the we chose STP of increasingly to estimate the There throughout potential several is of thought said, an write added call and for automated STP toughest CCC’s AI-system But digitally is help the industry up securities that our a later figure to half billions with their the areas still number claims knew are insurers customers associated of estimate because and up was there be in unlock particularly ahead believe adoption Estimate-STP create insurers. not to we more estimates most it our XX STP XX the applications years STP. interventions insurance out would of felt straight running our line a the then economy needle. today commonly rolled payments Estimate-STP. most services could The on industrial item That less May, with aggregate increasing for move like of or than intervention. transactions vertical that being broad the less for now of we of comfortable greatly of insurers of months insurers auto can within out. Estimate-STP STP. United are in is We and minimal top be earnings of in Estimate-STP. the yet insurance have year. early dollars recent the includes volume We which over economy. Since

$XXX photos substantial refine teams enables cases the solve of edge adapt receiving Another time exciting feedback we is our to to scale. basis. a daily are comfortable car minutes. of at that and aspect us This real estimate only is XX uploading for of taking increasingly various next XX than this expect And of phase Estimate-STP ROI spending our see processed meaningfully We represents over repairable adoption for also claims and eligible our the are the to more damaged in much accelerate for currently for therefore will We as in AI-models estimate, to be on $XXX the when and manually Consumers scale you that the delighted as prepare insurers Estimate-STP digitizing to long-term over strong months. to with opportunity the with U.S. customers believe of time. multi $XXX million a CCC. the process an majority million a

decisions we a claim processing economy. foundational today, the and of exist opportunity Estimate-STP much broader in a number the across Given into represents touchpoints manual entry insurance believe point a set that

insurance the many evaluating ecosystem. successfully We automation lenders, ecosystem and and that economy streamlining connected key casualty. suppliers, have ranging to of create network add to be operational facilities, others. We dozens CCC needs delivers deliver or to interconnectivity industry solutions, insurance believe which interconnectivity CCC automation enables is in other efficiency participant deliver are from that total to a insurers, participants and STP including Ultimately to that the of diverse OEMs, and loss auto the economy, and all to connects parts self-reinforcing participants. use growing cases participants. digitization that This while we the position to our differentiator, to the many truly subrogation to auto repair and ecosystem connected

of our which by network to diagnostic final complexity is our growing and on amplified utilized departure increase good multiple touch repair process I of of sophisticated third lane in growing of has the increasingly the and The wanted vehicles. call, anyone repair be in of are process. about progress vehicles dealing our as XX,XXX The these making with the such facilities. is theme A warning repair calibration in complexity and as cameras. talked diagnostics necessity notable diagnostics we and importance cruise example in On accident technologies include proliferation we of the solution, the technology control, systems, QX this the can scanning, today automated

became CCC of facilities, for diagnostics In $XX increasing insurers, ONE solution collision solution also collaboration into repair everyone which seamlessly integrates about Diagnostics into the with billion Our processes repair year. and repairs integrated July, currently CCC data the platform, invoicing and workflow involved. in diagnostic This is efficiency our Diagnostics. Today ONE. a customers the Diagnostics and XX% days AirPro integrating directly part leading network. subscribe into to CCC providers, Diagnostics AirPro joins of still three facility XX,XXX Opus It’s Diagnostics. of about Honda, CCC service CCC for early other repair asTech, only

as We continue OEMs. facilities, CCC. as to as additional deploy $XXX opportunity potential million about million Diagnostics revenue see solutions, for growth in and $XX repair related the feel number confident of a to vehicles insurers, Diagnostics increasingly a requiring well scans to long-term We

example And with on example Diagnostics of Payments And for is insurance opportunity to That’ll we We with expect pleased a innovation across opportunity having early have drive contribute solve forward as there. point a continue to adoption. one growth. validate is dependent of of help workflows we invest will is and progress broad with auto of move we’re the innovation. XXXX. array made full the Diagnostics balanced to an given not we in of that an growth customers. revenue the cases use challenges space, economy. And one a we portfolio are continues strong that a of the any the in benefits large timing that

customers, diversified any regardless is given solutions of use term. focused which on solving portfolio of near solves the most cases customer challenge Our multiple in for operational

in Our I’ve pipeline is today, decades. ever as as opportunities full seen product of

that engaged to develop Our as actively become us solutions efficient with needs. and their meet help we clients more need our are

see profitability change portfolio said, revenue two continue from and Brian we growth who of in will to our I adoption of about excited and on call use opportunities business We their are resilient step have products our opportunities. Today, the progress in turn The model to time XX industry’s operational now streamline growth portfolio I the workflows. us. and drive will Estimate-STP years. consumer our to experience of Diagnostics results. focused our that That of of has walk over a front for repair delivered and across sizable efficiency to tested insurance through potential increased improvement growing a related facilities you growth capabilities

Brian Herb

Githesh. Thanks,

focused in numbers, jump them to difficult to passed as anniversary one year wanted We more our a control, we challenging been a year public clients, we the at markets. and the It’s a can remained acknowledge of support into to the a what capital earlier which to Before challenges. company their moment we solving operating company, I take time, delivering year same gratifying that for is operational a innovation this some public on as our overall week.

And in generate value achieve for ability our so our we long-term and our continue to our targets near be customers term and to operational to confident shareholders. and

turn the like of second suppliers. to the XXXX of been up full of quarter million, new by domestic. X% revenue XX% I’d results from note for of QX $XXX.X upsell XX% and discuss parts points our was second second expansion shops I’d several also the of About the repair past four came from adoption logos year about in and half incremental quarters. mostly like An percentage came the our half talking was XX% Total driven our AI that digital revenue and the to quarter last XX% deals solutions for base that quarter mobile, and Engage. large signed we and our in we’ve XXXX. was prior cross-sell period. As year revenue base the from for into then the second installed client in the Approximately second guidance numbers, include year updated first, broad review growth our our

our metrics. key Now turning to

compared prior the GDR reflects year captures GDR quarter. and customers QX at to base stickiness the of Software software XXXX, was we the effect. GDR gross provide XX% period. the from the last of believe retained amount or our consistent with In revenue client We our dollar retention our value network

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

dollar of volume opportunities to is software damage including year. customers performance last was have compared is QX captures of our in strong upsell the cross-sell execute Software physical base, existing signed across we’ve XXX%, core and upsell the XXXX, or client half amount the as large driver in net base. to the The above with foreseeable In NDR client quarters reflects auto consistently year and NDR in had as from business, movements recent we our our which average. retention NDR this period, expansion our historical prior second in the NDR cross-sell deals success a and future. our our for well excellent the opportunities

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

was As unless $XXX.X of quarter million and gross which is the consistent XX%, to the in of metrics with noted non-GAAP non-GAAP a year. of adjusted profit margin press last GAAP are gross otherwise a reconciliation release. with we’ve quarter provided our Adjusted all reminder, in second profit

about continue being long-term operating able target of scalability business against leverage XX%. deliver our to our of to feel good and the We and

adjusted the to as expenses, in headcount largely discretionary expenses additions, operating these in-person $XX.X by quarter. of our in spend these were increase expenses hosting in terms including In the continue year-over-year. industry grew driven million, costs conference during were company which normalize, expenses public Growth XX%

adding a strong a positions market advance Adjusted management pleased and agenda. our to and across Margin XX% EBITDA XX% and improved strategic operational into made our product leverage scalable we’re On to and compared our by QX points efficient $XX.X EBITDA expansion the as position reflects grew the the continue in last the with to progress adjusted of quarter operating capabilities year. against product with deliver continue ongoing we feel development. key scale margins business basis for Adjusted from to year-over-year headcount model with revenue. margin. to We we XXX point, executing innovation EBITDA are million

$XX.X completion Chicago, of range million balance million adjusted million flow year cash timing $XXX equivalent converted payout adjusted the of our unlevered was we’ve the approximately cash to adjusted million our cash flow. in XX% annual end cash to net and $XXX we and low flow the quarter in of our results. was our Year-to-date, historical the Free new quarter Normalizing ended in leverage into would’ve and for compared the approximately EBITDA headquarters flow, to in EBITDA. At $XX.X in free and free cash X.X the addition estimated out of times of consistent prior the sheet Turning payments, incentive the year-to-date debt. cash the with period. XX% tax quarter, been of build the in unlevered with

guidance, finish beginning with Now third I’d to quarter. the like with

million midpoint. the We $XXX $XXX million. represents expect revenue year-over-year of XX% at to This growth

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

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

expect represents to guidance midpoint. between EBITDA year-over-year million in expect year full which Implicit at the at adjusted X% between $XXX which adjusted quarter million, revenue $XXX margin for $XXX is represents midpoint. to we million the a XX% guidance which fourth We and the EBITDA $XXX million, QX growth the our for

We points which guidance. mind to at EBITDA $XX a about represents midpoint. to $XX second in million half expect EBITDA our adjusted between keep adjusted XX% Three margin the million,

of we in four year. quarter of last in signed we of are the points quarter second growth expansion second X% deals is growth the large These half in first first the lapping The XXXX. of the of that contributed XXXX, deals

quarter from and will third benefit no We get in deals the in this of about quarter. benefit point fourth these one

X% to to a of X% would point from second without of the this two-point year. is revenue of fourth point the creates X% The fourth revenue quarter the quarter. year. be XX% growth is now the quarter implied for in quarter us in of percentage headwind My growth range headwind last fourth point fourth had in the two-point two contribution that revenue we This non-recurring

EBITDA point margin our adjusted remains for third unchanged. that the The is forecast full year

and between basis XXXX. will points margin be We the expect year expansion for following XXXX flat XXXX of XXX EBITDA full adjusted

position for mid while in portfolio adjusted to as subrogation be our solutions the as and our at reflects the more financial and investing support in solutions confidence ambitions, in towards targets our emerging guidance for margin operating We XXs on growth our near innovation packages long-term both same time well payments, EBITDA continue digitization Overall, the underlying the to targets. across like on Estimate-STP to the well progressing P&C repair like our focused in positioned across well feel The about need is opportunities momentum the Diagnostics. shop our many and our CCC of economy CCC of insurance revenue our good highlighted long-term in and and we strategic term. have established the year. positioned opportunities profitability continues But the Engage. of durable Today, we the deliver and emerging product solutions, our the to and business. other growth portfolio. accelerate drive exciting to We is casualty, long in two

beyond. We are of year our targets confident and in X% our ability XX% to long-term to deliver revenue on next growth organic

our and believe our to continue will we shareholders. we execute take operator, ready With customers for priorities, we’re strategic both questions. Thank you. to on generate As our value we significant that,

Operator

session. and Ladies we of conducting be first time, Becker you, Dylan comes will The this Thank at question Instructions] William Blair. from sir. a gentlemen, [Operator question-and-answer

Dylan Becker

adoption, growing job. think I base I Githesh, question maybe Nice of do about within customer taking kind your the guess existing here. appreciate And first you that product guys. Hey for here. I

of point, especially side the to expense environment they’re able it down to these trying initial that with value relative customer in so equation that interests hammer given the that, deliver You on to historically? kind current valuable the the much the the How inflection where is customers maybe touched align to deliver value side to immediate ROI of of contributes and equation. fact that that just faster kind of and you’ve been to

Githesh Ramamurthy

joining. thanks for Absolutely. Hey,

one usually a cloud the implementation we’re a having test Many into into solutions national operate production, a or it or regional. to put but able to Again, deploy XX state, works fact, states. solution, In be what scale and pretty of and in production on in customers And the it deliver product of also that’s geographies. is very big on we’re our ability being and pilot just results, rapidly. many short and benefits one to the the single to put They a able seeing across not cycle. are once two every of deliver scale it CCC try

So of early which why I customers many to are we able our be move first. is to many demand comment solutions made customers our that I saying, for do actually from to are would seeing the of increased like faster, hey,

Dylan Becker

something dig It touching the traction Yes. ton a of in makes as That scale the about I particular you And of you’ve platform. Thanks. as talked how data well, want some But you seeing sense. do offering, advantage together the to of think have on not with that about historical are how just the in have you that side that to put since How into right? the that you standpoint which like a data speaks overnight, automation your of right? from and STP competitive can a here. but you’re valuable your pain on seems deliver of scale address, You probably the scale well? be network, those have capabilities, the to industry, looking something complexity to upon is it’s the again, big have people infrastructure data point maybe guys guys

Githesh Ramamurthy

Sure.

comes following right. ways, the very really scale So specific in

getting solutions repairable losses have our the thinking repairables per I of month. and – in and solution. are national of AI total total the and representing, you we billions think is of customers literally Estimate-STP half more The that first more What like adopt deploy. we we’re to loss foremost, refining So dollars carriers I of photographs started fact and year, about I I processing a guess XXX million as And half the our and that mentioned over that the majority about. collect country when are talked

a you reflecting does of cases, blue that in tree thousands AI, edge deal sunlight is what to AI which refine under can on have car feedback, a So we the your solution, of when light especially using your standing people Florida, right. with at speed scale South the refine the

So that our pretty there’s conditions rapidly. to edge us and all do allows scale these

is element of across which state volume that's So across pure one every functions. scale, different

we been efficient based running The running that platform. a aspect cloud scale of second highly on and is are have

the So with the people customer elastic for a hardest the to are customer behavior to a one them And element individual do and do made and how the tools. by thousands at tens is a actually cloud, things that we and scale scale. of is we rapidly what do is that parts are deploy country a pretty able adjusters to down of and that of providers the point up of like, with second I of and to take a my is across deploy at that often able decisions are change deploy and which

third to sometimes that customers, Hope a that across have customer, the implement answers of and able that point have element network of the your element When every the to ecosystem. to model, XXX need it OEM, the scale of element one is you question. it actually be maybe insurance third providers, parts interconnected is thousands solution, just do itself. for to do almost don’t but That scale. you repair XX,XXX I’ll The out last of that third collision facilities, where you

Dylan Becker

incredibly it's I and appreciate guys. congrats No, again, it in-depth.

Operator

Goldman question Sachs. next of Borges Gabriela comes The from

Unidentified Analyst

the are before. noticed on Hi, CCC business, And this side? Gabriela. quarter. the is building that can and your of market? Kelly on of in side be you anything question regarding has My Congrats casualty share take off the competitive for have How going that anything changed the different on kind that question things confidence on from would

Githesh Ramamurthy

the made investments absolutely for us. have technology years investments particularly I adoption, party well Physical of customers share and we as you scale have of and with casualty casualty seeing for how seeing say and we I customer about we made, in you And smaller platform, also when the joining feel much Yes, – to and customers, are we party would products. of much that and increased thanks that what casualty third engaging are base first we our continuing customers, pretty confident it adoption Damage and know, for smaller say, we’re the are of to would terms we’ve of Auto in compare a again, the customers. see

So it nice a opportunity. very represents growth

Unidentified Analyst

then what Safekeep? And follow-up you been How customers? is hearing give great. just, us Okay, is on trending? And you adoption can update have my an from

Githesh Ramamurthy

done delighted. really things Sure. for us. customers seem it’s On Safekeep, And two

who customers a is which CCC in is natural already are this solutions of billions both fit terms are very spent. many dollars of For using for subrogation, whereas,

trained that board teams own work and terrific. our So the receptivity has the also with customers been across we’ve

on end. that’s one So

important, their knowledge, components, frankly, would board been the we development the on say of example, second the even security. integration mundane, Their for brought on I mundane On things it's the that the several and not depth, have right, side, various like solutions, of it's has fantastic. team as building,

components of those many integration coming So are also well. along

two So we those perspectives. from good feel

Unidentified Analyst

congrats the in you again color and Thank the for quarter.

Githesh Ramamurthy

Thank you.

Operator

from comes David question next The Kelley Jefferies. of

David Kelley

for $XX spoke Hey, the about revenue I question. Diagnostics AirPro the afternoon. Thanks good Last to of taking of you quarter, my light to million in potential your opportunity. million believe for Wanted addition with $XXX start to network.

point both OEM markets. scanning potentially today remote seems cornered the end, of Diagnostics. it this from highlighted year and From You like a our you’ve growth

guess my to to network timeline of on million those maybe customers and about getting the $XX I run think ramping potential the up repair the question of about how $XXX So Diagnostics you can talk rate? to facility that is, revenues you process million more

Githesh Ramamurthy

have Again, you think really Diagnostics and about to three David. maybe components. Sure

you a so of you scan has to sometimes complete what be for repair damaged substantial after calibration that is the complexity need and First need the that report the is actually the scan the process the accident And car. And absolute to done. is there in as over has what after Diagnostics the tells we’ve Diagnostics. is seen essentially an vehicle years, the car increased,

for as in the for it cars, but new So older last car was years. few mandatory, not in produced – the last every almost

board So first do to to have repairers, across that and for of the foremost, super consistency scanning super, that’s transparency been critical. need and and the insurers,

thing we’ve first done, second So foremost. that’s what so that and we’ve is the done

ONE. when our deep Secondly, works way that we at into you look solution have is the CCC integrated

living like. ordering tools, it if whether about it our scheduling on thousands tens whether they’re parts, of CCC of repairing it CCC you’ve the tablet, going is system think vehicles, whether the day, desktop, on given as cars, day, in you are got and the is any So mobile engaged people every in about process is the the of who repairing doing production

repair directly is base. So is out we today a base so a literally after important. is that it collision customer rolled entire making we step, it of months, Where to process that our repair of super integrating XX% are few into and that into to Diagnostics and this seamless component that available customer our

is Diagnostics. repair of element And maybe because diagnostics all of so Opus. and important process to element service started on work know, it works seamless now really with with you which a very our were their is other The we scaling. it as providers very tightly. that very, providers, make added Diagnostics to element will the and asTech, another continue added It be last we first that’s end sure makes a as They is we We’ve for different that of to facility. of added scaling AirPro we’ve these engagement to add providers Honda, we’ve customer, able and

continuing $XXX So those how on scale three our of to kind million mark. Hence diagnostics. to $XX three to components confidence we about are that scale how million ways, to really in this think

David Kelley

given stands you. Okay, you. a for X% out new wanted Thank was quarter, Believe in got just then That’s helpful. on as contribution. the growth touch follow-up typically contributor the it. And secondary logo a to it’s it

growing facilities you can parts solve the where logo traction new quarter maybe talk bit some versus between your a breakout So supplier network? you about and repair more in

Brian Herb

Brian Yes. Yes. cover Yes. here. that. can I Hi. It’s

It So is areas. said, largely for four quarter, in facilities. points the you two repair the it comes as

parts shops don’t So on is supplier. the but it’s shops percentages, those the and facility the piece. repair break out We largest the

a If you that. trending a look rooftops year facilities, from average, about a X,XXX historical new like and again repair a metric at over towards we’re add we

of that’s new on So logo. largest X% the the driver

David Kelley

the for Okay, Thanks taking questions. perfect.

Brian Herb

you. Thank

Operator

Materne ISI. from of question Evercore Kirk comes next The

Adi Ahire

Adi is taking question you This the – are signed XXXX like you and of of guys. see being I I mentioned Hey But Ahire you kind dialing payments. guess on more to of in first last just know XXXX? that contributing there terms in your for that or What for conversations Thanks guys kind a Kirk. having? question. you do meaningful quarter. revenue, in customer

Githesh Ramamurthy

Yes.

not First of doing today payments on was joking are payments place, did know, to And our for you infrastructure in goal the we're get we what all, that. as guidance we providing you is, aside, XXXX the first know, front as or XXXX.

customers to Second start use and was cases customer building out the to then with refine work pipeline.

to worked closely nuances of of some all we through shop So conditions, the different customers. it it’s of Whether a areas. right with to we’re those with cases now be we and those or specific will things, – contributor other specific carrier customers. then right? shop of working through into this use I Again, are material kind going kind And not payments And year. working as mentioned, of

Adi Ahire

then it. if on that? with And kind Got your the just of headcount hiring curious color up you just a today, any quick-follow have on market

Githesh Ramamurthy

have say faster customers, of and say in more in some is a are people our towards kind talent, the the then able engineering of couple terms some terms hire key to that than of management lately Brian give specifics. need would of of servicing end product that what we that QX we seen we thought I in a we did ways talent talent. macro give you you maybe I’ll Sure. will more

seen change to actually you and markets. good anything in our add if we Brian, And we’ve to we’ve that recruit. about And to as recruit seen ability up in the pick shift specifically a to our that. feel know, employment ability to So continue don’t want I and

Brian Herb

where Yes. innovation we’ve roadmap, and bringing about product development I heads focused thinking market. new we’ve really the funnel products would largely been the in capabilities been adding just on add into management that, new and product

So talked we’ve really really a the holding that at we’re capacity it part around good. We’ve capability been headcount, a large that’s been on on. And focused the perspective. margins has year, XX% at area this and bringing holding pacing both reason of been the is about and

executing on we’re good So we that. against feel how

Adi Ahire

it. guys. it. color Got Thank the for you Appreciate

Brian Herb

Adi. Thanks,

Githesh Ramamurthy

Thanks.

Operator

The Securities. next question CJS from comes Moore of Chris

Chris Moore

up, to lots public, maybe the question a kind Thanks of U.S. in one guys. taking for year just U.S. a questions. afternoon, I good or it’s two two. picture Coming already Obviously, recognize you white attack. you’re about guys space there’s the more big clear the or Hey, leader went of since in

there? Is there? player opportunity Looking an an important more at be much to still understanding CCC is market, longer there Europe, it’s a for fragmented on race the term

Githesh Ramamurthy

Sure.

opportunity space, can First if especially especially about opportunity, take big things you including the you is pointed that selective come products, have first and exist, white continue for amount the is think as very all Europe, white enter market. us into, have, our of we and you claims how new broader where the the thoughtful lot And products the our and the the get European STP first, to to be to said, that foremost With address to we're which the countries with Chris. you in largest our the out continues picture United States. we’re of in for and of as have Exactly who asking STP, feel very and growth solutions building, existing combination insurance. of keep the and And auto number customers substantial. of auto going by Estimate-STP we invited a space we just terms for opportunity the we as know, we five

Chris Moore

Got with it. that. Staying that I appreciate theme.

meaningful mean, pace would talked same in reason to there you the point that expect painfully next it some there the generally expect foreseeable can in at you future? have is edge, I Do digitization continue to at P&C be three to point So, be about not the the inflection a cutting five Or industry, being years? slow.

Githesh Ramamurthy

example, been or Estimate-STP. trying, for we innovation we even of is example that and in testing not deployment. is these are but customers it deploying, amount about you quoted eye to just the of holding our deployment And towards customers the at, many trying interested That Chris We’ve for And with an capability our is the testing for saw really what with see example, was to conferences the things that exciting years. industry conference. latest one so

precursor the was Estimate-STP product called a to Estimate. So Smart

estimate as from many moved using year. to tuning of fine dozens So we And a ability to had there customers introduced adopt are the and when photo of first of built doing lot we Smart and Estimate-STP, then we Estimate, AI. them adopting. the We customers an our jumpstart

we that blessed seeing customers, so we’re customers. with amazing of and our So are actually many some

We’re but testing, on towards out. towards of these also closely eye many us not an very innovations an working towards eye with with rolling

to continue to going to do hence, I pace a think up. our broad is pick solutions. invest of pretty on of set to digitization that's, continue So desire the And

Chris Moore

it appreciate I guys. I there. will Thanks leave it.

Operator

from comes question Tyler Citi. next of Radke The

Tyler Radke

for thanks ago. at great see question few and you the conference taking a months to the Hey,

or that quarter. back on in on new that just obviously, Just terms that the it and observed conference generation just note, any timing had why strong just it expansion logo activity? being curious theme the was in was pipeline a you impact you’ve of I’m person, think seen Thank you. of that

Githesh Ramamurthy

to is And the but way other. lot at coming it you was the for great thanks products with and and the all, of exposure saw, a as solutions does first a tune allows to more. really solutions our Tyler, meeting, it conference. Hey, we or us the conference broad very What conference, displayed change give things really the doesn’t a the itself one dramatically

up picks as we’ve I the if out I that want towards was It conference solutions. the they But and solutions. are would of know, it to it as continued Brian, driven and it. more you the more quantification of deploying So add to any feel say our to digitization customers speed these adopt, is pressures, just macro se. don’t per not roll roll

Brian Herb

that I over for the performance. the the and I strong the to at opportunity particularly really underpinning see I been quarters say that last see logo continue – several repair shops point, – you it would the to No, have new we covered forward. momentum earlier And the going we well, think

So momentum X% And reflects we that marketplace. that. we the good about I the feel think traction and the really in have

Githesh Ramamurthy

the continues As side. at ability a shortage right? on hire increasing people increasing, is volume also collisions to facilities, is repair the And repair to the are be

people So to efficiency demand. are the service more also looking and more for

Tyler Radke

a Makes lot Yes. sense. of

for there have currency How in larger you carriers. with different pipeline deals you given the exposure? expansions? of terms the – things anything deal exposure of deal just some Just as the changes do have particularly you – not the you’re like I obviously, dependent. are just where are assuming insurance guess kind what X think, don’t not and about Tier where large in in foreign for for And thinking macro expansion do environment larger rates the you back half, you have of

Githesh Ramamurthy

multi-year for require major We relatively the really beginning, payoff be the Tyler, a of short dollars dollars for relatively fully does basically can not hundreds of integrated no is deployed. solutions exactly and small and bring the can the answer up millions IT and which change. described huge. is we’re is reasons of Again, the ROI I at the solutions expense. running. It’s It these

see the architecture our any way platform deploy the change, given and especially our solutions. So of we we don’t

Brian Herb

raise put – the about Yes, we It’s thing feel would the that we and is, the reflects, also of the pipeline, the add model business I I good Tyler. Brian. would only and the resiliency the half year? as to confidence key of and the that sight second we the of in have half second year the overall full for our deals land delivering line clearly to need

Tyler Radke

it. Appreciate Great.

Operator

Research. comes from of next The Barrington question Gary Prestopino

Gary Prestopino

to that I’m have organization? get usage uptaking. with within Githesh carriers new Hey, their assuming process far this of product as as all. once fairly insurance seen this claims afternoon that the What good product is adoption you a Hey, are this Estimate-STP they

Githesh Ramamurthy

because would say, the AI parameters and a variation, wide of that it required hundreds So and making has we’re literally I seeing Gary tuning hundreds adjustments. Hey, of right?

relatively different XX%. different even X% to have using gone people and some use got up and at we’re of adoption. customers is the So almost now, customers channel requirements, volume we’ve for some faster, And customers like from products adopters to XX% early there, move of some XX% at we’ve it small photo Even where we’re what the some needs. seeing it amount

integrated with into because it’s So super Estimate-STP, platform. our everyone board, is excited, across estimating the deeply

in have are in but or some varies, have two so and three the people of mentioned, I’d in as also say states, tried it out then tried customers, it just And one states some I out. of rolling process

range sight of industry this now – – the But we thing So solution. half we of line the pretty a have over broad of adoption. half of have to the half is exciting adopting of

Gary Prestopino

on this mechanism Okay. I realizing product. based a increased do software have as do to And a go usage forward? you you mean this is price

Githesh Ramamurthy

yes. The short answer is

Gary Prestopino

you. Thank Okay.

Operator

over of gentlemen, session. the remarks. closing CEO for Thank we the you. and Ramamurthy the question-and-answer reached to end now turn Githesh I will call Ladies have

Githesh Ramamurthy

joining us thank Well, for you today. all

team members our to proud our during making where a And We year thank of our help and the say all, customers, our to in markets. our they I that most of CCC want are in performance first public shareholders, reality. back you

objectives As you we financial to through as on talking our our third call continue interest customers. at again to in behalf sooner. CCC. operational We’ll and in our all early colleagues deliver November, not of innovation and on business mentioned, strategic we you continues for we deliver confident ability resilience my and with remain the on come the strategic look forward efficiency CCC of our in Thank for model to quarter continued of your to if

Operator

you for participation your lines. you today's Ladies now disconnect concludes you. Thank may conference. Thank and gentlemen, that your and

CCC Intelligent Solutions (CCCS) 6 Aug 222022 Q2 Earnings call transcript