CHICAGO - CCC Intelligent Solutions Holdings Inc. (NASDAQ: CCCS), a leading provider of cloud-based solutions for the property and casualty (P&C) insurance industry, announced today a secondary offering of 30 million shares of common stock. The shares are being sold by affiliates of Advent International, L.P. and Oak Hill Capital Partners, referred to as the Selling Stockholders.
The offering will occur sporadically, with shares sold at prevailing market prices through negotiated transactions or other means. CCC will not receive any proceeds from the sale of shares in this offering, as all shares are offered by the Selling Stockholders.
BofA Securities and Goldman Sachs (NYSE:GS) & Co. LLC are serving as the joint book-running managers for the offering. The shares are available pursuant to an effective shelf registration statement filed with the Securities and Exchange Commission (SEC) on October 14, 2022.
The company has cautioned that this announcement shall not constitute an offer to sell or a solicitation of an offer to buy the securities, and the sale will not be conducted in any state or jurisdiction where such an offering would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction.
CCC Intelligent Solutions Inc., a subsidiary of CCC Intelligent Solutions Holdings Inc., operates the CCC Intelligent Experience (IX) Cloud. This platform leverages artificial intelligence (AI) and an event-based architecture to connect over 35,000 businesses, facilitating intelligent experiences for insurers, repairers, automakers, and part suppliers.
The press release also contains forward-looking statements based on current expectations, which are subject to risks and uncertainties. These include the possibility that the offering may not close on the anticipated terms or at all, market conditions, and other customary closing conditions.
The information for this article is based on a press release statement, and the offering is subject to the detailed terms and conditions outlined in the prospectus supplement and accompanying base prospectus, which interested parties may obtain from the SEC website or directly from the joint book-running managers.
In other recent news, CCC Intelligent Solutions Holdings Inc. announced a secondary offering of 50 million shares of common stock. The shares, to be sold by affiliates of Advent International, L.P. and Oak Hill Capital Partners, will be sold periodically at prevailing market prices. This offering does not involve new shares, and therefore, CCC Intelligent Solutions will not receive any proceeds from the transactions. The offering is being managed by J.P. Morgan, Morgan Stanley (NYSE:MS), BofA Securities, and Goldman Sachs & Co. LLC.
In financial updates, CCC Intelligent Solutions reported strong Q1 results for fiscal year 2024, with total revenue reaching $227 million, an 11% year-over-year increase. The firm's adjusted EBITDA also exceeded forecasts at $94 million, reflecting an adjusted EBITDA margin of 41%. The company attributes its success to the growing adoption of its Intelligent Experience Cloud and the expansion of its shareholder base.
Looking ahead, the company projects Q2 2024 revenue to be between $228.5 million and $230.5 million, with adjusted EBITDA expected to be between $89 million and $91 million. Full-year 2024 revenue is forecasted to be between $944 million and $950 million, with adjusted EBITDA between $389 million and $395 million.
InvestingPro Insights
As CCC Intelligent Solutions Holdings Inc. (NASDAQ: CCCS) embarks on its secondary offering of shares, investors are keenly observing the company's financial health and market performance. With a market capitalization of $7.16 billion, CCCS stands as a significant player in the P&C insurance tech industry. The company's impressive gross profit margin of 76.86% in the last twelve months as of Q1 2024, as reported by InvestingPro, underscores its ability to efficiently manage costs relative to its revenue.
InvestingPro Tips suggest that management's aggressive share buyback strategy and the expectation of net income growth this year could be indicative of CCCS's confidence in its financial future and operational strategy. Additionally, the company's liquid assets surpassing short-term obligations signal a strong liquidity position, which could reassure investors of its ability to meet immediate financial obligations.
While the company does not pay dividends, which might deter income-focused investors, the potential for profitability, as forecasted by analysts, presents an opportunity for those interested in capital gains. It's worth noting, however, that CCCS trades at high valuation multiples, with a P/E Ratio of -73.18 and an even higher adjusted P/E Ratio for the last twelve months as of Q1 2024 at -258.25, suggesting that the market has high expectations for future earnings growth.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and metrics on CCCS, which could prove invaluable in making informed investment decisions. By using the coupon code PRONEWS24, readers can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, accessing a total of 12 InvestingPro Tips for CCCS, including insights on earnings revisions and stock volatility.
Before the next earnings date on July 31, 2024, interested parties are encouraged to review the detailed financial data and analyst targets, which suggest a fair value of $14, compared to InvestingPro's fair value estimate of $9.27. Such discrepancies highlight the importance of thorough research and consideration of multiple valuation models when assessing investment opportunities.
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