CCC Intelligent 2025 Q1 Earnings Misses Targets as Net Loss Widens Over 2800%
Daily EarningsWednesday, May 7, 2025 4:58 am ET
27min readCCC Intelligent Solutions Holdings Inc. (“CCC” or the “Company”) (NASDAQ: CCCS) announced its fiscal 2025 Q1 earnings on May 6, 2025, revealing an 11% revenue growth but significantly wider net losses compared to the previous year. The company slightly missed expectations with its earnings report. raised its full-year revenue guidance, indicating optimism despite challenges. The company anticipates continued pressure on claim volumes and a cautious outlook due to macroeconomic uncertainties.
Revenue
CCC Intelligent reported a total revenue increase of 10.7% to $251.56 million for 2025 Q1, up from $227.24 million in 2024 Q1. Software subscriptions contributed a substantial $242.54 million, while other revenue sources added $9.03 million, culminating in the total revenues of $251.56 million.
Earnings/Net Income
The company's losses deepened to $0.03 per share in 2025 Q1 from $0.00 per share in 2024 Q1, representing a 971.4% increase in loss per share. The net loss widened to $17.42 million in 2025 Q1, a significant rise from the $597,000 loss in 2024 Q1. The EPS performance is concerning due to the substantial increase in net loss.
Price Action
The stock price of has dropped 7.21% during the latest trading day, has tumbled 11.09% during the most recent full trading week, and has dropped 3.43% month-to-date.
Post-Earnings Price Action Review
Historically, purchasing CCC Intelligent shares after a revenue decline quarter-over-quarter and holding for 30 days resulted in a 8.57% return over the past five years, compared to a benchmark return of 38.73%. The strategy's compound annual growth rate was 3.60%, with a maximum drawdown of -5.54% and a Sharpe ratio of 0.74, suggesting a reasonable risk-adjusted return. Despite the strategy's moderate success, the recent stock performance indicates investor concerns following the wider-than-expected losses and uncertain outlook.
CEO Commentary
Githesh Ramamurthy, Chairman & CEO, expressed satisfaction with CCC's strong start to 2025, citing year-over-year revenue growth surpassing guidance and reaching a $1 billion revenue run rate milestone. He emphasized CCC's role in addressing the complexities faced by clients in the automotive insurance sector, noting increased client commitment to CCC's innovation platform, which positions the company for sustained growth.
Guidance
For Q2 2025, CCC expects revenue between $255.5 million and $257.5 million, reflecting 10% to 11% year-over-year growth. Full-year revenue guidance has been adjusted to a range of $1.046 billion to $1.056 billion, indicating 11% growth at the midpoint. Adjusted EBITDA is projected between $420 million and $428 million, with a margin of 40% at the midpoint. The company remains cautious about sales and implementation cycles amid macroeconomic uncertainties.
Additional News
CCC Intelligent has announced plans to accelerate the integration of EvolutionIQ's AI technologies into its auto casualty offerings, with Medhub for Casualty expected to launch ahead of schedule in Q3. This initiative aims to enhance insurers' ability to manage complex injury claims through AI-powered recommendations. Additionally, CCC extended its long-term relationship with Caliber Collision, the nation's largest auto collision repair provider, leveraging CCC ONE® solutions to improve operational efficiency across 1,800 locations. Lastly, CCC signed a new partnership with a leading OEM in the EV sector, reflecting the company's expanding network and the applicability of its solutions in the broader insurance economy.
Revenue
CCC Intelligent reported a total revenue increase of 10.7% to $251.56 million for 2025 Q1, up from $227.24 million in 2024 Q1. Software subscriptions contributed a substantial $242.54 million, while other revenue sources added $9.03 million, culminating in the total revenues of $251.56 million.
Earnings/Net Income
The company's losses deepened to $0.03 per share in 2025 Q1 from $0.00 per share in 2024 Q1, representing a 971.4% increase in loss per share. The net loss widened to $17.42 million in 2025 Q1, a significant rise from the $597,000 loss in 2024 Q1. The EPS performance is concerning due to the substantial increase in net loss.
Price Action
The stock price of has dropped 7.21% during the latest trading day, has tumbled 11.09% during the most recent full trading week, and has dropped 3.43% month-to-date.
Post-Earnings Price Action Review
Historically, purchasing CCC Intelligent shares after a revenue decline quarter-over-quarter and holding for 30 days resulted in a 8.57% return over the past five years, compared to a benchmark return of 38.73%. The strategy's compound annual growth rate was 3.60%, with a maximum drawdown of -5.54% and a Sharpe ratio of 0.74, suggesting a reasonable risk-adjusted return. Despite the strategy's moderate success, the recent stock performance indicates investor concerns following the wider-than-expected losses and uncertain outlook.
CEO Commentary
Githesh Ramamurthy, Chairman & CEO, expressed satisfaction with CCC's strong start to 2025, citing year-over-year revenue growth surpassing guidance and reaching a $1 billion revenue run rate milestone. He emphasized CCC's role in addressing the complexities faced by clients in the automotive insurance sector, noting increased client commitment to CCC's innovation platform, which positions the company for sustained growth.
Guidance
For Q2 2025, CCC expects revenue between $255.5 million and $257.5 million, reflecting 10% to 11% year-over-year growth. Full-year revenue guidance has been adjusted to a range of $1.046 billion to $1.056 billion, indicating 11% growth at the midpoint. Adjusted EBITDA is projected between $420 million and $428 million, with a margin of 40% at the midpoint. The company remains cautious about sales and implementation cycles amid macroeconomic uncertainties.
Additional News
CCC Intelligent has announced plans to accelerate the integration of EvolutionIQ's AI technologies into its auto casualty offerings, with Medhub for Casualty expected to launch ahead of schedule in Q3. This initiative aims to enhance insurers' ability to manage complex injury claims through AI-powered recommendations. Additionally, CCC extended its long-term relationship with Caliber Collision, the nation's largest auto collision repair provider, leveraging CCC ONE® solutions to improve operational efficiency across 1,800 locations. Lastly, CCC signed a new partnership with a leading OEM in the EV sector, reflecting the company's expanding network and the applicability of its solutions in the broader insurance economy.
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