CCCS Stock Forecast & Price Target

CCC Intelligent Solutions Holdings Inc. demonstrated robust financial performance with a Q4/24 revenue increase of 8% to $246.5 million, driven by significant cross-sell and upsell activities, along with the acquisition of new clients. For the full year 2024, the company reported organic revenue growth of 9% to $944.8 million and a 12% increase in adjusted EBITDA to $397.4 million, which led to a 130 basis points expansion in its adjusted EBITDA margin to 42%. The growing contribution of total digital revenues, which improved to 33.6% year-over-year, underscores the company's effective utilization of its AI-enabled solutions in the property and casualty insurance market.

CCC Intelligent Solutions Holdings Inc. has provided growth targets for FY25 that, while exceeding consensus revenue expectations by $30.5 million, come with a disappointing adjusted EBITDA midpoint that falls $12.3 million short of consensus due to losses associated with the EvolutionIQ acquisition. The guidance indicates a decline in adjusted EBITDA margin from 42% in 2024 to 40% in 2025, primarily driven by EvolutionIQ's negative contribution, which suggests that without its impact, the margin could improve to around 43%. Additionally, increasing depreciation expenses and the accelerated growth of lower-margin casualty solutions are contributing to a decline in gross margin, further heightening the negative outlook on the company's financial performance.