CCC Intelligent Solutions Q3 revenue rises 10%, beats estimates

Overview

• SaaS and AI platform's Q3 revenue rose 10% yr/yr, beating analyst expectations

• Adjusted net income for Q3 increased yr/yr

• Company to be acquired by GTCR and Elliott in $6.1 bln deal, closing expected Q1 2027

Outlook

• Company is suspending its practice of providing guidance due to the pending acquisition

• CCC will not host a conference call or webcast to discuss results amid acquisition process

• Company says proposed acquisition by GTCR and Elliott expected to close in Q1 2027

Result Drivers

• AI ADOPTION - Co said insurers expanded use of AI across core claims workflows, driving 40% yr/yr growth in AI-related revenue

• NEW PRODUCT DEPLOYMENT - Co said a leading insurer adopted Medhub for Auto Casualty, marking largest application of EvolutionIQ’s tech in P&C auto market

• PLATFORM EFFICIENCY - CEO said increased platform adoption helped customers operate more efficiently across insurance economy

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 6 "hold" and 2 "sell" or "strong sell"

• The average consensus recommendation for the software peer group is "buy."

• Wall Street's median 12-month price target for CCC Intelligent Solutions Holdings Inc. is $7.75, about 1% above its October 28 closing price of $7.67

• The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 11 three months ago

Reuters Recommended Reads

• Oct 28 - Cybersecurity firm Fortinet's Q3 revenue rises 20%, adj EPS beats estimates

• Oct 28 - Cybersecurity firm Gen Digital's Q2 revenue beats on strong demand; raises FY outlook

• Oct 27 - Manhattan Associates Q3 revenue beats estimates on cloud subscription growth

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)