8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(D)

OF THE SECURITIES EXCHANGE ACT OF 1934

Date of report (Date of earliest event reported): March 1, 2022

CCC Intelligent Solutions Holdings Inc.

(EXACT NAME OF REGISTRANT AS SPECIFIED IN CHARTER)

Delaware	001-39447	98-1546280
(State or other jurisdiction<br>of incorporation)	(Commission<br>File Number)	(IRS Employer<br>Identification No.)

167 N. Green Street, 9th Floor

Chicago, IL 60607

(Address of Principal Executive Offices, including Zip Code)

(800) 621-8070

(Registrant’s telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if this Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading<br>Symbol(s)	Name of each exchange<br>on which registered
Common stock, par value $0.0001 per share	CCCS	The New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).

Emerging growth company  ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

ITEM 2.02	RESULTS OF OPERATIONS AND FINANCIAL CONDITION.

Attached hereto as Exhibit 99.1 and incorporated by reference into this Item 2.02 is a copy of the press release, date March 1, 2022, announcing the financial results of CCC Intelligent Solutions Holdings Inc. for the quarter and year ended December 31, 2021.

The information in this Item 2.02, including Exhibit 99.1 attached hereto, is being furnished and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section and shall not be incorporated by reference into any registration statement or other document filed pursuant to the Securities Act of 1933, as amended, or the Exchange Act, except as otherwise expressly stated in such filing.

ITEM 9.01	FINANCIAL STATEMENTS AND EXHIBITS.

(d) Exhibits

Exhibit<br>Number	Description
99.1	Press release, dated March 1, 2022
104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	CCC INTELLIGENT SOLUTIONS HOLDINGS INC.
Date: March 1, 2022
	By:	/s/ Brian Herb
	Name:	Brian Herb
	Title:	Executive Vice President, Chief Financial and Administrative Officer

EX-99.1

Exhibit 99.1

CCC Intelligent Solutions Holdings Inc. Announces Fourth Quarter and Fiscal Year 2021 Financial Results

March 1, 2022 – CCC Intelligent Solutions Holdings Inc. (“CCC” or the “Company”) (NYSE: CCCS), a leading SaaS platform for the P&C insurance economy, today announced its financial results for the three months and year ended December 31, 2021.

“CCC delivered another strong quarter, highlighted by 19% adjusted revenue growth and 30% adjusted EBITDA growth. We continue to see positive demand trends across each of our key product and customer categories, especially our AI solutions,” said Githesh Ramamurthy, Chairman & CEO of CCC.

Ramamurthy continued, “We continued to lay the foundation in 2021 for sustained growth as we delivered more than 1,700 product releases on the CCC cloud during the year. The deployment of CCC solutions continues to expand within our customer base. For all of us at CCC it is truly exciting to see our customers across the P&C insurance economy increasingly leverage our unique and comprehensive cloud platform to fully digitize their operations.”

Fourth Quarter 2021 Financial Highlights

Revenue

•	Total revenue was $187.1 million for the fourth quarter of 2021, compared to $165.4 million for the<br>fourth quarter of 2020. Adjusted for the impact of the divestiture of a portion of our professional services casualty solution in December 2020, total revenue grew 19% in the fourth quarter of 2021.

Profitability

•	GAAP gross profit was $139.4 million, representing a gross margin of 75%, for the fourth quarter of 2021,<br>compared with $112.1 million, representing a gross margin of 68%, for the fourth quarter of 2020. Adjusted gross profit was $147.0 million, representing an adjusted gross margin of 79%, for the fourth quarter of 2021, compared with<br>$118.4 million, representing an adjusted gross margin of 76%, for the fourth quarter of 2020.
•	GAAP operating income was $15.3 million for the fourth quarter of 2021, compared with GAAP operating income<br>of $24.1 million for the fourth quarter of 2020. Adjusted operating income was $69.3 million for the fourth quarter of 2021, compared with adjusted operating income of $53.4 million for the fourth quarter of 2020.<br>
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•	GAAP net loss was $57.9 million for the fourth quarter of 2021, compared with GAAP net income of<br>$5.6 million for the fourth quarter of 2020. Adjusted net income was $49.2 million for the fourth quarter of 2021, compared with $25.0 million for the fourth quarter of 2020.
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•	Adjusted EBITDA was $75.7 million for the fourth quarter of 2021, compared with adjusted EBITDA of<br>$58.1 million for the fourth quarter of 2020. Adjusted EBITDA grew 30% in the fourth quarter of 2021 as compared to the fourth quarter of 2020.
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Full Year 2021 Financial Highlights

Revenue

•	Total revenue was $688.3 million for the full year 2021, compared to $633.1 million for the full year<br>2020. Adjusted for the impact of the divestiture of a portion of our professional services casualty solution in December 2020, total revenue grew 15% in the full year 2021.

Profitability

•	GAAP gross profit was $492.6 million, representing a gross margin of 72%, for the full year 2021, compared<br>with $424.3 million, representing a gross margin of 67%, for the full year 2020. Adjusted gross profit was $533.5 million, representing an adjusted gross margin of 78%, for the full year 2021, compared with $447.7 million,<br>representing an adjusted gross margin of 75%, for the full year 2020.
•	GAAP operating loss was $144.7 million for the full year 2021, compared with GAAP operating income of<br>$77.0 million for the full year 2020. Adjusted operating income was $236.8 million for the full year 2021, compared with adjusted operating income of $184.7 million for the full year 2020.
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•	GAAP net loss was $248.9 million for the full year 2021, compared with GAAP net loss of $16.9 million<br>for the full year 2020. Adjusted net income was $130.3 million for the full year 2021, compared with $79.3 million for the full year 2020.
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•	Adjusted EBITDA was $261.4 million for the full year 2021, compared with adjusted EBITDA of<br>$202.8 million for the full year 2020. Adjusted EBITDA grew 29% in the full year 2021 as compared to the full year 2020.
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Liquidity

•	CCC had $182.5 million in cash and cash equivalents and $800.0 million of total debt at<br>December 31, 2021. The Company generated $127.3 million in cash from operating activities and had free cash flow of $89.0 million during the full year 2021, compared with $103.9 million generated in cash from operating activities<br>and $73.3 million in free cash flow in the full year 2020.

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

4^th^ Quarter andRecent Business Highlights

•	Signed multi-year renewals that included meaningful expansions with two of the top ten largest P&C insurers<br>and one of the nation’s largest MSOs. These customers will be deploying new solutions, including Mobile/AI, CCC Estimate - STP and Engage, and are great examples of the opportunity CCC has to increase the value we deliver for customers and<br>generate future growth from our expanding solution portfolio.
•	Achieved a number of important milestones that highlight the scale and breadth of the CCC Cloud network,<br>including: processing more than 9 million unique claims with our deep learning AI solutions, up more than 80% year-over-year; expanding our repair facility customer base to more than 27,000, more than 30% of which have adopted Engage; growing<br>electronics parts ordering on the CCC platform by 40%, and number of unique shops ordering electronically by over 20%.
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•	Acquired Safekeep, an AI leader in subrogation claims management technology. Safekeep is an enterprise platform<br>that leverages AI to speed and improve subrogation management across auto, property, workers’ comp, and other insurance lines of business. The acquisition of Safekeep extends CCC’s AI-powered claims<br>software to include subrogation management, a critical function in achieving claims resolution, and now part of CCC’s completely digital, AI-enabled, end-to-end claims solutions.
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Business Outlook

Based on information as of today, March 1, 2022, the Company is issuing the following financial guidance:

	First Quarter Fiscal 2022		Full Year Fiscal 2022
Revenue	$	182.5 million to $184.5 million	$	760 million to $768 million
Adjusted EBITDA	$	70 million to $72 million	$	286 million to $292 million

Conference Call Information

CCC will host a conference call today, March 1, 2022, at 8:00 a.m. (Eastern Time) to discuss the Company’s financial results and financial guidance. To access this call, dial 877-407-0784 (domestic) or 201-689-8560 (international). The conference ID number is 13727037. A live webcast of this conference call will be available on the “Investor Relations” page of the Company’s website at https://ir.cccis.com, and a replay will be archived on the website as well.

About CCC Intelligent Solutions

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

Forward Looking Statements

This press release contains forward-looking statements that are based on beliefs and assumptions and on information currently available. In some cases, you can identify forward-looking statements by the following words: “may,” “will,” “could,” “would,” “should,” “expect,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “project,” “potential,” “continue,” “ongoing” or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words. These statements involve risks, uncertainties and other factors that may cause actual results, levels of activity, performance or achievements to be materially different from the information expressed or implied by these forward-looking statements. Forward-looking statements in this press release include, but are not limited to, statements regarding future events, goals, plans and projections regarding the company’s financial position, results of operations, market position, product development and business strategy. Such differences may be material. We cannot assure you that the forward-looking statements in this press release will prove to be accurate. These forward looking statements are subject to a number of risks and uncertainties, including, among others, our revenues, the concentration of our customers and the ability to retain our current customers; our ability to negotiate with our customers on favorable terms; our ability to maintain and grow our brand and reputation cost-effectively; the execution of our growth strategy; the impact of COVID-19 on our business and results of operations; our projected financial information, growth rate and market opportunity; the health of our industry, claim volumes, and market conditions; changes in the insurance and automotive collision industries, including the adoption of new technologies; global economic conditions and geopolitical events; competition in our market and our ability to retain and grow market share; our ability to develop, introduce and market new enhanced versions of our solutions and products; our sales and implementation cycles; the ability of our research and development efforts to create significant new revenue streams; changes in applicable laws or regulations; changes in international economic, political, social and governmental conditions and policies, including corruption risks in China and other countries; currency fluctuations; our reliance on third-party data, technology and intellectual property; our ability to protect our intellectual property; our ability to keep our data and information systems secure from data security breaches; our ability to acquire or invest in companies or pursue business partnerships, which may divert our management’s attention or result in dilution to our stockholders, and we may be unable to integrate acquired businesses and technologies successfully or achieve the expected benefits of such acquisitions, investments or partnership; our ability to raise financing in the future and improve our capital structure; our success in retaining or recruiting, or changes required in, our officers, key employees or directors; our officers and directors allocating their time to other businesses and potentially having conflicts of interest with our business; our estimates regarding expenses, future revenue, capital requirements and needs for additional financing; our financial performance; our ability to expand or maintain its existing customer base; our ability to service our indebtedness; and other risks and uncertainties, including those included under the header “Risk Factors” in the prospectus that forms a part of the registration statement on Form S-1 filed by the Company with the Securities and Exchange Commission (“SEC”) on September 9, 2021, and in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021 to be filed with the SEC, each of which can be obtained, without charge, at the SEC’s website (www.sec.gov) when available, and in our other filings with the SEC. The forward-looking statements in this press release represent our views as of the date of this press release. We anticipate that subsequent events and developments will cause our views to change. However, while we may elect to update these forward-looking statements at some point in the future, we have no current intention of doing so except to the extent required by applicable law. You should, therefore, not rely on these forward-looking statements as representing our views as of any date subsequent to the date of this press release.

Non-GAAP Financial Measures

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

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

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

Investor Contact:

Brian Denyeau

ICR, LLC

646-277-1251

IR@cccis.com

Media Contact:

Michelle Hellyar

Director Public Relations, CCC Intelligent Solutions Inc.

mhellyar@cccis.com

CCC INTELLIGENT SOLUTIONS HOLDINGS INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

AS OF DECEMBER 31, 2021 AND 2020

(In thousands, except share data)

			December 31,
			2020
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	182,544		$	162,118
Accounts receivable—Net of allowances of 3,791 and 4,224 as of December 31, 2021 and<br>2020, respectively	78,793			74,107
Income taxes receivable	318			2,037
Deferred contract costs	15,069			11,917
Other current assets	46,181			31,586
Total current assets	322,905			281,765
SOFTWARE, EQUIPMENT, AND PROPERTY—Net	135,845			101,438
OPERATING LEASE ASSETS	37,234			—
INTANGIBLE ASSETS—Net	1,213,249			1,311,917
GOODWILL	1,466,884			1,466,884
DEFERRED FINANCING FEES, REVOLVER—Net	2,899			746
DEFERRED CONTRACT COSTS	22,117			14,389
EQUITY METHOD INVESTMENT	10,228			—
OTHER ASSETS	26,165			18,416
TOTAL	3,237,526		$	3,195,555
LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable	12,918		$	13,164
Accrued expenses	66,691			52,987
Income taxes payable	7,243			5,129
Current portion of long-term debt	8,000			25,381
Current portion of long-term licensing agreement—Net	2,703			2,540
Operating lease liabilities	8,052			—
Deferred revenues	31,042			26,514
Total current liabilities	136,649			125,715
LONG-TERM DEBT:
First Lien Term Loan—Net	—			1,292,597
Term B Loan—Net	780,610			—
Total long-term debt	780,610			1,292,597
DEFERRED INCOME TAXES—Net	275,745			322,348
LONG-TERM LICENSING AGREEMENT—Net	33,629			36,331
OPERATING LEASE LIABILITIES	56,133			—
WARRANT LIABILITIES	62,478			—
OTHER LIABILITIES	5,785			32,770
Total liabilities	1,351,029			1,809,761
COMMITMENTS AND CONTINGENCIES (Notes 22 and 23)
MEZZANINE EQUITY:
Redeemable non-controlling interest	14,179			14,179
STOCKHOLDERS’ EQUITY:
Preferred stock, 0.0001 par; 100,000,000 shares authorized; no shares issued or<br>outstanding	—			—
Common stock—0.0001 par; 5,000,000,000 shares authorized; 609,768,296 and 504,274,890 shares<br>issued and outstanding at December 31, 2021 and 2020, respectively	61			50
Additional paid-in capital	2,618,924			1,501,206
Accumulated deficit	(746,352	)		(129,370	)
Accumulated other comprehensive loss	(315	)		(271	)
Total stockholders’ equity	1,872,318			1,371,615
TOTAL	3,237,526		$	3,195,555

All values are in US Dollars.

CCC INTELLIGENT SOLUTIONS HOLDINGS INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME

(In thousands, except share and per share data)

	Three Months EndedDecember 31,						Year Ended December 31,
	2021			2020			2021			2020
REVENUES	$	187,083		$	165,386		$	688,288		$	633,063
COST OF REVENUES
Cost of revenues, exclusive of amortization of acquired technologies		41,117			46,740			169,335			182,414
Amortization of acquired technologies		6,580			6,578			26,320			26,303
Total cost of revenues^(1)^		47,697			53,318			195,655			208,717
GROSS PROFIT		139,386			112,068			492,633			424,346
OPERATING EXPENSES:
Research and development^(1)^		37,097			27,377			165,991			109,508
Selling and marketing^(1)^		27,511			18,102			148,861			74,710
General and administrative^(1)^		41,353			24,378			250,098			90,838
Amortization of intangible assets		18,126			18,078			72,358			72,310
Total operating expenses		124,087			87,935			637,308			347,366
OPERATING (LOSS) INCOME		15,299			24,133			(144,675	)		76,980
INTEREST EXPENSE		(7,442	)		(19,415	)		(58,990	)		(77,003	)
GAIN (LOSS) ON CHANGE IN FAIR VALUE OF INTEREST RATE SWAPS		—			3,384			8,373			(13,249	)
CHANGE IN FAIR VALUE OF WARRANT LIABILITIES		(37,612	)		—			(64,501	)		—
LOSS ON EARLY EXTINGUISHMENT OF DEBT		—			—			(15,240	)		(8,615	)
OTHER INCOME (EXPENSE)—Net		113			28			114			332
PRETAX (LOSS) INCOME		(29,642	)		8,130			(274,919	)		(21,555	)
INCOME TAX (PROVISION) BENEFIT		(28,227	)		(2,512	)		26,000			4,679
NET (LOSS) INCOME INCLUDING NON-CONTROLLING<br>INTEREST		(57,869	)		5,618			(248,919	)		(16,876	)
Less: net (loss) income attributable to non-controlling<br>interest		—			—			—			—
NET (LOSS) INCOME ATTRIBUTABLE TO CCC INTELLIGENT SOLUTIONS HOLDINGS INC.	$	(57,869	)	$	5,618		$	(248,919	)	$	(16,876	)
Net (loss) income per share attributable to common stockholders:
Basic	$	(0.10	)	$	0.01		$	(0.46	)	$	(0.03	)
Diluted	$	(0.10	)	$	0.01		$	(0.46	)	$	(0.03	)
Weighted-average shares used in computing net (loss) income per share attributable to common<br>stockholders:
Basic		596,023,745			504,274,914			543,558,222			504,115,839
Diluted		596,023,745			520,274,793			543,558,222			504,115,839
COMPREHENSIVE (LOSS) INCOME:
Net (loss) income including non-controlling<br>interest		(57,869	)		5,618			(248,919	)		(16,876	)
Other comprehensive income (loss)—Foreign currency translation adjustment		(26	)		61			(44	)		126
COMPREHENSIVE (LOSS) INCOME INCLUDING NON-CONTROLLING<br>INTEREST		(57,895	)		5,679			(248,963	)		(16,750	)
Less: comprehensive (loss) income attributable to<br>non-controlling interest		0			0			—			—
COMPREHENSIVE (LOSS) INCOME ATTRIBUTABLE TO CCC INTELLIGENT SOLUTIONS HOLDINGS INC.		(57,895	)		5,679		$	(248,963	)	$	(16,750	)
^(1)^  Includes<br>stock-based compensation expense as follows (in thousands):
	Three months endedDecember 31,						Year ended December 31,
	2021			2020			2021			2020
Cost of revenues	$	1,081		$	114		$	13,644		$	494
Research and development		3,933			279			40,681			1,174
Sales and marketing		4,985			470			65,045			2,024
General and administrative		16,583			3,002			142,625			7,644
Total stock-based compensation expense	$	26,582		$	3,865		$	261,995		$	11,336

CCC INTELLIGENT SOLUTIONS HOLDINGS INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2020

(In thousands)

	2021			2020
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$	(248,919	)	$	(16,876	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization of software, equipment, and property		24,451			17,749
Amortization of intangible assets		98,678			98,613
Impairment of goodwill and intangible assets		—			—
Deferred income taxes		(46,883	)		(11,124	)
Stock-based compensation		261,995			11,336
Amortization of deferred financing fees		3,682			4,630
Amortization of discount on debt		604			738
Change in fair value of interest rate swaps		(8,373	)		13,249
Change in fair value of warrant liabilities		64,501			—
Loss on early extinguishment of debt		15,240			8,615
Non-cash lease expense		6,279			—
Gain on divestiture		(600	)		(3,800	)
Other		541			114
Changes in:
Accounts receivable—Net		(4,725	)		(10,558	)
Deferred contract costs		(3,152	)		(1,110	)
Other current assets		(12,273	)		(6,483	)
Deferred contract costs—Non-current		(7,728	)		(1,926	)
Other assets		(7,838	)		(9,187	)
Operating lease assets		6,354			—
Income taxes		3,833			6,724
Accounts payable		(1,052	)		(2,256	)
Accrued expenses		8,347			165
Operating lease liabilities		(8,398	)		—
Deferred revenues		4,513			1,376
Extinguishment of interest rate swap liability		(9,987	)		—
Other liabilities		(11,755	)		3,954
Net cash provided by operating activities		127,335			103,943
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of software, equipment, and property		(38,321	)		(30,107	)
Purchase of investment		—			—
Purchase of equity method investment		(10,228	)		—
Purchase of intangible asset		(49	)		(560	)
Net cash used in investing activities		(48,598	)		(30,667	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Principal payments on long-term debt		(1,336,153	)		(388,846	)
Proceeds from issuance of long-term debt, net of fees paid to lender		789,927			369,792
Payment of fees associated with early extinguishment of long-term debt		(4,821	)		(29	)
Proceeds from borrowings on revolving lines of credit		—			65,000
Repayment of borrowings on revolving lines of credit		—			(65,000	)
Net proceeds from equity infusion from the Business Combination		763,300			—
Dividends to CCCIS stockholders		(269,174	)		—
Deemed distribution to CCCIS option holders		(9,006	)		—
Tax effect of Business Combination transaction costs		1,395			—
Proceeds from exercise of stock options		5,085			(236	)
Proceeds from issuance of common stock		1,007			719
Repurchases of common stock		—			—
Proceeds from issuance of non-controlling interest in<br>subsidiary		—			14,179
Net cash used in financing activities		(58,440	)		(4,421	)
NET EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS		129			62
NET CHANGE IN CASH AND CASH EQUIVALENTS		20,426			68,917
CASH AND CASH EQUIVALENTS:
Beginning of period		162,118			93,201
End of period	$	182,544		$	162,118
NONCASH INVESTING AND FINANCING ACTIVITIES:
Unpaid liability related to software, equipment, and property	$	8,035		$	239
Leasehold improvements acquired by tenant improvement allowance	$	16,924		$	—
Fair value of assumed common stock warrants exercised	$	60,481		$	—
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid for interest, excluding extinguishment of interest rate swap liability	$	54,980		$	71,649
Cash (paid) received for income taxes—Net	$	(15,233	)	$	917

CCC INTELLIGENT SOLUTIONS HOLDINGS INC. AND SUBSIDIARIES

RECONCILIATION OF GROSS PROFIT TO ADJUSTED GROSS PROFIT

(In thousands, except profit margin percentage data)

(Unaudited)

	Three months endedDecember 31,						Year ended December 31,
(amounts in thousands, except percentages)	2021			2020			2021			2020
Gross Profit	$	139,386		$	112,068		$	492,633		$	424,346
First Party Clinical Services—Gross Profit		—			(394	)		—			(3,429	)
Amortization of acquired technologies		6,580			6,578			26,320			26,303
Business combination transaction costs		—			—			905			—
Stock-based compensation		1,081			114			13,644			494
Adjusted Gross Profit	$	147,047		$	118,366		$	533,502		$	447,714
Gross Profit Margin		75	%		68	%		72	%		67	%
Adjusted Gross Profit Margin		79	%		76	%		78	%		75	%

CCC INTELLIGENT SOLUTIONS HOLDINGS INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP OPERATING EXPENSES TO ADJUSTED OPERATING EXPENSES

(In thousands)

(Unaudited)

	Three months endedDecember 31,						Year ended December 31,
(dollar amounts in thousands)	2021			2020			2021			2020
Operating expenses	$	124,087		$	87,935		$	637,308		$	347,366
Stock-based compensation expense		(25,501	)		(3,751	)		(248,351	)		(10,842	)
Lease abandonment		(326	)		—			(2,582	)		—
Lease overlap costs		(924	)		—			(3,697	)		—
Net costs related to divestiture		428			(35	)		(2,177	)		(35	)
Business combination transaction costs		(1,914	)		(1,095	)		(11,480	)		(1,188	)
Amortization of intangible assets		(18,126	)		(18,078	)		(72,358	)		(72,310	)
Adjusted operating expenses	$	77,724		$	64,976		$	296,663		$	262,991

CCC INTELLIGENT SOLUTIONS HOLDINGS INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP OPERATING (LOSS) INCOME TO ADJUSTED OPERATING INCOME

(In thousands)

(Unaudited)

	Three months endedDecember 31,						Year ended December 31,
(dollar amounts in thousands)	2021			2020			2021			2020
Net operating income (loss)	$	15,299		$	24,133		$	(144,675	)	$	76,980
Stock-based compensation expense		26,582			3,865			261,995			11,336
Lease abandonment		326			—			2,582			—
Lease overlap costs		924			—			3,697			—
Net costs related to divestiture		(428	)		35			2,177			35
Business combination transaction costs		1,914			1,095			12,385			1,188
Amortization of intangible assets		18,126			18,078			72,358			72,310
Amortization of acquired technologies—Cost of revenue		6,580			6,578			26,320			26,303
First Party Clinical Services—Revenue		—			(8,659	)		—			(34,742	)
First Party Clinical Services—Cost of revenue		—			8,265			—			31,313
Adjusted operating income	$	69,323		$	53,390		$	236,839		$	184,723

CCC INTELLIGENT SOLUTIONS HOLDINGS INC. AND SUBSIDIARIES

RECONCILIATION OF NET (LOSS) INCOME TO ADJUSTED EBITDA

(In thousands)

(Unaudited)

	Three months endedDecember 31,						Year ended December 31,
(dollar amounts in thousands)	2021			2020			2021			2020
Net (loss) income	$	(57,869	)	$	5,618		$	(248,919	)	$	(16,876	)
Interest expense		7,442			19,415			58,990			77,003
Income tax provision (benefit)		28,227			2,512			(26,000	)		(4,679	)
Amortization of intangible assets		18,126			18,078			72,358			72,310
Amortization of acquired technologies—Cost of revenue		6,580			6,578			26,320			26,303
Depreciation and amortization related to software, equipment and property		6,290			4,710			24,451			17,749
EBITDA		8,796			56,911			(92,800	)		171,810
(Gain) loss on change in fair value of interest rate swaps		—			(3,384	)		(8,373	)		13,249
Change in fair value of warrant liabilities		37,612			—			64,501			—
Stock-based compensation expense		26,582			3,865			261,995			11,336
Loss on early extinguishment of debt		—			—			15,240			8,615
Business combination transaction costs		1,914			1,095			12,385			1,188
Lease abandonment		326			—			2,582			—
Lease overlap costs		924			—			3,697			—
Net costs related to divestiture		(428	)		35			2,177			35
First Party Clinical Services—Revenue		—			(8,659	)		—			(34,742	)
First Party Clinical Services—Cost of revenue		—			8,265			—			31,313
Adjusted EBITDA	$	75,726		$	58,128		$	261,404		$	202,804

CCC INTELLIGENT SOLUTIONS HOLDINGS INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP NET (LOSS) INCOME TO ADJUSTED NET INCOME

(In thousands)

(Unaudited)

	Three months ended December 31,						Year ended December 31,
(dollar amounts in thousands)	2021			2020			2021			2020
Net (loss) income	$	(57,869	)	$	5,618		$	(248,919	)	$	(16,876	)
Amortization of intangible assets		18,126			18,078			72,358			72,310
Amortization of acquired technologies—Cost of revenue		6,580			6,578			26,320			26,303
(Gain) loss on change in fair value of interest rate swaps		—			(3,384	)		(8,373	)		13,249
Change in fair value of warrant liabilities		37,612			—			64,501			—
Stock-based compensation expense		26,582			3,865			261,995			11,336
Loss on early extinguishment of debt		—			—			15,240			8,615
Business combination transaction costs		1,914			1,095			12,385			1,188
Lease abandonment		326			—			2,582			—
Lease overlap costs		924			—			3,697			—
Net costs related to divestiture		(428	)		35			2,177			35
First Party Clinical Services—Revenue		—			(8,659	)		—			(34,742	)
First Party Clinical Services—Cost of revenue		—			8,265			—			31,313
Tax effect of adjustments		15,450			(6,442	)		(73,684	)		(33,389	)
Adjusted net income	$	49,217		$	25,049		$	130,279		$	79,342
Adjusted net income per share attributable to common stockholders
Basic	$	0.08		$	0.05		$	0.24		$	0.16
Diluted	$	0.08		$	0.05		$	0.23		$	0.15
Weighted average shares outstanding
Basic		596,023,745			504,274,914			543,558,222			504,115,839
Diluted		637,445,530			520,274,793			575,619,243			519,748,819

CCC INTELLIGENT SOLUTIONS HOLDINGS INC. AND SUBSIDIARIES

RECONCILIATION OF NET CASH FLOW FROM OPERATING ACTIVITIES TO FREE CASH FLOW

(In thousands)

(Unaudited)

	Three months endedDecember 31,						Year ended December 31,
(dollar amounts in thousands)	2021			2020			2021			2020
Net cash provided by operating activities	$	30,610		$	37,154		$	127,335		$	103,943
Less: Purchases of software, equipment, and property		(13,299	)		(6,292	)		(38,321	)		(30,107	)
Less: Purchase of intangible assets		—			—			(49	)		(560	)
Free Cash Flow	$	17,311		$	30,862		$	88,965		$	73,276