CCC Intelligent Solutions Holdings Inc. (Nasdaq: CCCS) said May 6 its first quarter 2025 revenue rose 11% to $251.6 million, with gross profit rising 10% to $185 million. Adjusted gross profit, a non-GAAP metric, was about 9% higher, at $192.5 million, according to an earnings release.
Gross margin and adjusted gross profit margin were 74% and 77%, respectively. Chicago-based CCC said on a conference call with analysts it aims for 80% adjusted gross profit, according to a transcript.
CCC swung to an operating loss in the quarter of $10.7 million, versus operating income of $7.8 million, year-over-year. Its net loss was $17.4 million, from a $600,000 net loss YOY. Adjusted net income was flat at $54.4 million.
Adjusted EBITDA grew 6% to $99.1 million; adjusted EBITDA margin was 39%.
Chairman and CEO Githesh Ramamurthy in the release said revenue growth and adjusted EBITDA margin beat company guidance. “Our solid start to 2025 reflects multiple new business wins, renewals and contract expansions across our customer groups.”
CFO Brian Herb on the earnings call noted “uncertainty in the current macroeconomic environment [from] lower claims volumes [and] client buying behavior. … About 20% of our revenue is tied to volumes,” he said. Industry product and service providers have recently attributed lower first-quarter results to consumer choices, inflation, tariffs and other macroeconomic factors.
CCC sells software to some 35,000 body shops, automakers, parts suppliers and insurance companies.
Quarterly Moves, Including Caliber Collision, OEM
Caliber Collision in Q1 renewed its contract with CCC, expanding that to include more estimating elements. Caliber has some 1,850 locations and began working with CCC products when it had 100 sites.
CCC said in the quarter it also signed a new client, an unnamed OEM “with a captive insurance business and a leading market position in EVs [including] both the insurance and the collision repair sides of the business.”
Ramamurthy said the OEM “has several hundred repair facilities in its certified repair program,” according to the earnings call transcript.
He also said: “We completed multiple renewals and expansions with existing clients in auto physical damage.” CCC expects auto casualty business products flowing from its January $730 million cash-and-stock buy of EvolutionIQ to bow in the third quarter. Business from the new work is expected to add up to $50 million in revenue this year.
More offerings “across the auto casualty claims lifecycle” will follow, the release said.
Advent Continues Its Exit of CCC Position
On March 3, shareholders Cypress Investor Holdings and affiliates of Advent International LP sold 42 million shares of CCC stock, a regulatory filing said. As of Dec. 31, Advent owned 139 million shares -- 22% of CCC, a list of institutional holders showed.
Advent affiliates last year, and Oak Hill Capital Partners, offered 70 million shares worth about $800 million, two regulatory filings said. Reuters reported in September that Advent was looking to sell its stake, and Bloomberg said interested buyers were TPG and Bain Capital, but other media reports a month later said Advent had dropped its exploratory move.
Private equity firm Advent had at one time been majority owner of CCC, having bought it from Leonard Green and TPG in 2017, when CCC was valued at about $3 billion, media reports said. Advent took CCC public four years later, merging with a special purpose acquisition company affiliate of Dragoneer Investment Group, for a value of $6.5 billion, The Wall Street Journal said.
Shares that hit $12.86 in early December declined 10% in trading May 6 to $8.15, a $5.4 billion market cap.
