CCC Intelligent Solutions Holdings Inc (CCC) 2022 Q4 法說會逐字稿

Thank you for standing by, and welcome to CCC Intelligence Solutions Fourth Quarter and Fiscal 2022 Earnings Conference Call. (Operator Instructions)

感謝您的支持，歡迎來到 CCC Intelligence Solutions 第四季度和 2022 財年收益電話會議。 （操作員說明）

I would now like to hand the call over to Vice President, Investor Relations, Bill Warmington. Please go ahead.

我現在想將電話轉交給投資者關係副總裁 Bill Warmington。請繼續。

Good afternoon, and thank you for joining us today to review CCC's fourth quarter 2020 financial results, which we announced in the press release issued following the close of the market today. Joining me on the call are Githesh Ramamurthy, CCC's Chairman and CEO; and Brian Herb, CCC's CFO.

下午好，感謝您今天加入我們，回顧 CCC 2020 年第四季度的財務業績，我們在今天收盤後發布的新聞稿中宣布了這一業績。 CCC 董事長兼首席執行官 Githesh Ramamurthy 和我一起參加電話會議；和 CCC 的首席財務官 Brian Herb。

The forward-looking statements we make today about the company's results and plans are subject to risks and uncertainties that may cause the actual results and the implementation of the company's plans to vary materially. These risks are discussed in the earnings releases available on our Investor Relations website and under the heading Risk Factors in our 2022 annual report on Form 10-K filed today with the SEC.

我們今天就公司的業績和計劃所做的前瞻性陳述受到風險和不確定性的影響，這些風險和不確定性可能導致實際結果和公司計劃的實施發生重大變化。這些風險在我們投資者關係網站上的收益發布中以及我們今天向美國證券交易委員會提交的 10-K 表格中的 2022 年年度報告中的風險因素標題下進行了討論。

Further, these comments and the Q&A that follows are copyrighted today by CCC Intelligent Solutions Holdings, Inc. Any recording or retransmission or reproduction or other use of the same for profit or otherwise without prior consent of CCC is prohibited in a violation of the United States copyright and other laws.

此外，這些評論和隨後的問答今天由 CCC Intelligent Solutions Holdings, Inc. 擁有版權。未經 CCC 事先同意，禁止任何記錄、轉發、複製或以其他方式使用相同內容以營利或以其他方式違反美國法律版權和其他法律。

Additionally, while we've approved the publishing of a transcript of this call by a third party, we take no responsibility for inaccuracies that may appear in that transcript. Please note the discussion on today's call includes certain non-GAAP financial measures as defined by the SEC. The company believes these non-GAAP financial measures provide useful information to management and investors regarding certain financial and business trends relating to the company's financial condition and the results of operations.

此外，雖然我們已批准第三方發布此次通話的文字記錄，但我們對該文字記錄中可能出現的不准確之處不承擔任何責任。請注意，今天電話會議的討論包括美國證券交易委員會定義的某些非 GAAP 財務措施。公司認為，這些非 GAAP 財務指標為管理層和投資者提供了有關與公司財務狀況和經營業績相關的某些財務和業務趨勢的有用信息。

A reconciliation of GAAP to non-GAAP measures is available in our earnings release that is available on our Investor Relations website. Thank you.

我們的投資者關係網站上的收益發布中提供了 GAAP 與非 GAAP 措施的對賬。謝謝。

And now I'll turn the call over to Githesh.

現在我將把電話轉給 Githesh。

Thank you, Bill, and thanks to all of you for joining us today.

謝謝你，比爾，感謝大家今天加入我們。

I'm pleased to report that CCC delivered another quarter of strong top and bottom-line performance to complete another record year in 2022. For the fourth quarter of 2022, CCC's total revenue was $204 million, up 9% year-over-year and ahead of our guidance range. Adjusted EBITDA was $80 million, also ahead of our guidance range. Adjusted EBITDA margin for the fourth quarter was 39%. Revenue for the full year 2022 was $782 million, up 14% year-over-year, 2% above the high end of our initial 2022 guidance range.

我很高興地報告，CCC 在 2022 年又實現了強勁的頂線和底線業績，再創新高。2022 年第四季度，CCC 的總收入為 2.04 億美元，同比增長 9%，領先於我們的指導範圍。調整後的 EBITDA 為 8000 萬美元，也超出了我們的指導範圍。第四季度調整後的 EBITDA 利潤率為 39%。 2022 年全年收入為 7.82 億美元，同比增長 14%，比我們最初的 2022 年指導範圍的上限高出 2%。

Adjusted EBITDA for the full year 2022 was $305 million, 4% above the high end of our initial guidance range and more than twice our 2018 adjusted EBITDA of $148 million. For a compounded annual growth rate of 20%, we believe our strong performance reflects both the nondiscretionary nature of the P&C insurance economy we serve, and the durability of our business as we continue to deliver innovation and operational efficiency for our customers.

2022 年全年調整後的 EBITDA 為 3.05 億美元，比我們最初指導範圍的上限高出 4%，是我們 2018 年調整後的 EBITDA 1.48 億美元的兩倍多。對於 20% 的複合年增長率，我們相信我們的強勁表現既反映了我們所服務的 P&C 保險經濟的非自由裁量權性質，也反映了我們業務的持久性，因為我們繼續為客戶提供創新和運營效率。

Based on our performance in 2022 and the confidence in our growth trajectory, we are providing revenue and adjusted EBITDA guidance for the first quarter and full year 2023, which Brian will walk through.

根據我們 2022 年的業績和對我們增長軌蹟的信心，我們將提供 2023 年第一季度和全年的收入和調整後的 EBITDA 指導，Brian 將完成這些指導。

Today, I'd like to discuss 3 important topics with you: CCC's focus on growth, innovation and our industry-leading AI Platform. Our customers continue to face a difficult operating environment with multiple challenges. Once a challenge is a severe labor shortage of claims adjusters at insurers and repair technicians at collision repair facilities. Another challenge is inflation across labor rates, parts prices, medical cost, new and used vehicle prices as well as supply chain issues affecting the availability of parts.

今天，我想與您討論三個重要話題：CCC 對增長、創新的關注以及我們行業領先的 AI 平台。我們的客戶繼續面臨困難的經營環境和多重挑戰。曾經的挑戰是保險公司的索賠理算員和碰撞維修機構的維修技術人員嚴重短缺。另一個挑戰是通貨膨脹，包括人工費率、零件價格、醫療費用、新車和二手車價格以及影響零件可用性的供應鏈問題。

You can add to that increasing complexity of the vehicles themselves that now require more parts and labor hours to fix as well as diagnostic scans and recalibration of the growing number of cameras and sensors on the vehicles. The average time to get a vehicle repaired after an accident has gone up from about 4 weeks in 2019 to about 10 weeks currently, a real headwind for consumer satisfaction. These are important challenges for our customers. The solutions to which require them to find ways to do more with less while simultaneously improving their consumer experience.

您還可以增加車輛本身日益增加的複雜性，現在需要更多的零件和工時來修理以及診斷掃描和重新校準車輛上越來越多的攝像頭和傳感器。事故發生後車輛維修的平均時間從 2019 年的約 4 週增加到目前的約 10 週，這對消費者滿意度來說是一個真正的阻力。這些都是我們客戶面臨的重要挑戰。解決方案要求他們找到事半功倍的方法，同時改善他們的消費者體驗。

To solve these problems in a seamlessly integrated way, our customers are adopting a broader suite of CCC solutions. These solutions increasingly leverage CCC's AI capabilities and interconnected network to deliver operational efficiency and a more holistic experience for their customers. We are delivering solutions to our customers at scale, touching more claims with more solutions than ever before. Our insurance customers, for example, processed more claims using CCC solutions in 2022 than in any other year in the company's 42-year history.

為了以無縫集成的方式解決這些問題，我們的客戶正在採用更廣泛的 CCC 解決方案套件。這些解決方案越來越多地利用 CCC 的 AI 功能和互聯網絡來為客戶提供運營效率和更全面的體驗。我們正在大規模地為客戶提供解決方案，用比以往更多的解決方案處理更多的索賠。例如，我們的保險客戶在 2022 年使用 CCC 解決方案處理的索賠比公司 42 年曆史上的任何一年都多。

The number of claims processed by our insurance customers using 4 or more of CCC's AI applications doubled year-over-year in 2022. During Q4, we also renewed one of our top 10 insurers based on direct premium written for a 5-year extension. Q4 also saw numerous successes delivering additional solutions to existing customers, including several insurance clients who added casualty solutions to their portfolio of existing CCC products for the first time. Casualty remains one of our biggest growth opportunities with insurers. We added over 1,000 rooftops in our repair facility customer group in 2022, ending the year with over 28,000 repair facilities in our network.

到 2022 年，我們的保險客戶使用 4 個或更多 CCC 的 AI 應用程序處理的索賠數量同比翻了一番。在第四季度，我們還根據為 5 年延期編寫的直接保費續簽了我們排名前 10 位的保險公司之一。第 4 季度還見證了為現有客戶提供額外解決方案的眾多成功，其中包括一些首次將傷亡解決方案添加到其現有 CCC 產品組合中的保險客戶。傷亡仍然是我們與保險公司最大的增長機會之一。 2022 年，我們的維修設施客戶群中增加了 1,000 多個屋頂，到年底，我們的網絡中有超過 28,000 個維修設施。

In addition to new rooftops, we also delivered a number of incremental solutions, which were important drivers of growth for our repair facility customer group. In Q4, for example, we expanded our relationship with a leading multi-store operator, or MSO, looking to bring platform standardization across the collision, fleet, and paint operations for an additional 400 locations. In addition, the number of shops using 4 or more solutions has increased by 20% since 2020. An example of an emerging solution that we believe can continue our growth in average annual revenue per repair facility is Diagnostics.

除了新屋頂，我們還提供了一些增量解決方案，這些解決方案是我們維修設施客戶群增長的重要驅動力。例如，在第四季度，我們擴大了與一家領先的多店運營商 (MSO) 的關係，希望在另外 400 個地點的碰撞、車隊和油漆操作中實現平台標準化。此外，自 2020 年以來，使用 4 種或更多解決方案的商店數量增加了 20%。我們認為可以繼續增加每個維修設施的平均年收入的新興解決方案的一個例子是診斷。

Today, only about 10% of industry repairs are being scanned through integrated solutions with CCC. As adoption increases, we believe Diagnostics could become a $50 million to $100 million revenue opportunity for CCC. Our parts customer group now has over 4,500 parts suppliers in its network. We are still in the early stages of adoption for electronic parts ordering, but that adoption is growing quickly. The industry volume of parts ordered electronically by repair facilities in the CCC network increased from about 10% in 2020 to about 15% in 2022. We continue to believe parts is an attractive growth opportunity.

如今，只有約 10% 的行業維修通過 CCC 集成解決方案進行掃描。隨著採用率的提高，我們相信 Diagnostics 可能會為 CCC 帶來 5000 萬至 1 億美元的收入機會。我們的零件客戶群現在在其網絡中擁有超過 4,500 家零件供應商。我們仍處於採用電子零件訂購的早期階段，但這種採用正在迅速增長。通過 CCC 網絡中的維修設施以電子方式訂購的零部件行業數量從 2020 年的約 10% 增加到 2022 年的約 15%。我們仍然認為零部件是一個有吸引力的增長機會。

Innovation, the second topic I'd like to talk to you about today has been a key factor in how we continually identify additional ways we can help our customers improve their operational performance. Each new insurance claim leads to hundreds of decisions. Our goal is to develop new solutions that help our clients bring greater efficiency to more and more decision points in the insurance claims life cycle. Innovation is foundational to CCC's success, which is why we have invested over $1 billion in R&D over the past 10 years. But it's not just capital that has made our product development efforts successful.

創新是我今天想與大家討論的第二個話題，它是我們如何不斷確定可以幫助客戶提高運營績效的其他方法的關鍵因素。每一項新的保險索賠都會導致數百個決定。我們的目標是開發新的解決方案，幫助我們的客戶在保險理賠生命週期中越來越多的決策點提高效率。創新是 CCC 成功的基礎，這也是我們在過去 10 年中投資超過 10 億美元進行研發的原因。但讓我們的產品開發工作取得成功的不僅僅是資金。

I believe an organization needs 3 things to produce innovation on a sustained basis. The first is, close relationships with customers. Before we can solve our customers' problems, we need to understand them. We spend a lot of time with our customers trying to understand the challenges they face at both an industry and company-specific level, including consulting projects, quarterly business reviews, semiannual advisory councils. We believe the intimacy of our customer relationships is a part of what drives our 99% gross dollar retention and industry-leading Net Promoter Score, or NPS. CCC's NPS increased from 80 to 82 in 2022, a year in which the national average NPS declined 4 points. For context, an NPS of 82 is about 4.5x higher than the insurance industry average of 18% and about 6x higher than the software industry average NPS of 14%.

我相信一個組織需要 3 件事來持續地產生創新。首先是與客戶的密切關係。在解決客戶的問題之前，我們需要了解他們。我們花了很多時間與客戶一起，試圖了解他們在行業和公司特定層面面臨的挑戰，包括諮詢項目、季度業務審查、半年一次的諮詢委員會。我們相信，我們客戶關係的親密關係是推動我們 99% 的總美元保留率和行業領先的淨推薦值 (NPS) 的部分原因。 CCC 的 NPS 在 2022 年從 80 增加到 82，這一年全國平均 NPS 下降了 4 個百分點。就上下文而言，82 的 NPS 比保險業平均水平 18% 高出約 4.5 倍，比軟件行業平均 NPS 14% 高出約 6 倍。

The second thing an organization needs to produce innovation is a technology platform on which we can develop and deliver solutions to address our customers' problems. Our multi-tenant cloud architecture is highly scalable with 99.95% uptime that enables us to deliver new products and well over 1,000 new releases per year quickly and cost effectively. Our sizable R&D investment over the past decade has enabled us to build a significant lead in the development and application of artificial intelligence capabilities.

組織產生創新所需的第二件事是技術平台，我們可以在該平台上開發和提供解決方案來解決客戶的問題。我們的多租戶雲架構具有高度可擴展性和 99.95% 的正常運行時間，這使我們能夠快速且經濟高效地交付新產品和每年超過 1,000 個新版本。我們在過去十年的大量研發投入使我們在人工智能能力的開發和應用方面建立了顯著的領先地位。

And the third element is a strong customer-focused culture that emphasizes innovation. Our 2022 survey results place CCC in the top quartile for employee engagement and I believe that is an important component in how we achieve a strong Net Promoter Score. We are focused on expanding our innovation culture by adding world-class talent across the organization especially in product development and product management.

第三個要素是強調創新的強大的以客戶為中心的文化。我們的 2022 年調查結果將 CCC 列為員工敬業度的前四分之一，我認為這是我們實現強大淨推薦值的重要組成部分。我們專注於通過在整個組織中招募世界一流的人才，特別是在產品開發和產品管理方面，來擴展我們的創新文化。

During 2022, we grew our engineering staff month capacity by about 20% and we view the current disruption in the technology markets as an opportunity for us to continue to attract best-in-class talent. The confirmation that our strategy around innovation is working is that in 2022, about 1/3 of our revenue came from products introduced in the last 5 years.

2022 年期間，我們的工程人員月產能增加了約 20%，我們將當前技術市場的混亂視為我們繼續吸引一流人才的機會。到 2022 年，我們大約 1/3 的收入來自過去 5 年推出的產品，這證實了我們圍繞創新的戰略正在發揮作用。

The third and final topic I'd like to discuss with you today is our industry-leading AI platform where we have put a significant portion of our R&D spend over the last 10 years. A key requirement in building large-scale AI models is massive data sets and more than $1 trillion of accident-related data has been processed across our network. You also need to find, recruit, and retain the best talent, which we have been able to do because we offer people the opportunity to work on industrial-grade real-world commercial AI applications that are changing how the auto insurance economy operates.

今天我想與大家討論的第三個也是最後一個主題是我們行業領先的 AI 平台，我們在過去 10 年中投入了大量的研發支出。構建大規模人工智能模型的一個關鍵要求是海量數據集，我們的網絡已經處理了超過 1 萬億美元的事故相關數據。您還需要尋找、招募和留住最優秀的人才，我們之所以能夠做到這一點，是因為我們為人們提供了從事工業級真實世界商業人工智能應用程序的機會，這些應用程序正在改變汽車保險經濟的運作方式。

As a result, we are increasingly using AI across our solution sets to help our clients make decisions faster. Today, over 100 of our 300-plus insurance customers are actively using CCC's AI-powered capabilities, application of advanced computer vision AI for claims processing increased 60% year-over-year and a total of over 14 million unique claims have been processed using a CCC AI solution with 2022 at 3x the level of 2019. We are still early in the adoption cycle for AI-driven solutions. These solutions are poised for even greater adoption going forward as the P&C insurance economy moves increasingly towards straight-through processing to drive operating efficiency and better consumer experiences. In a survey of over 100 insurance executives in September 2022, for example, 90% of respondents stated that implementing straight-through processing is a high priority for them.

因此，我們越來越多地在我們的解決方案集中使用人工智能來幫助我們的客戶更快地做出決策。今天，我們的 300 多家保險客戶中有 100 多家正在積極使用 CCC 的人工智能功能，高級計算機視覺人工智能在理賠處理中的應用同比增長 60%，總共處理了超過 1400 萬件獨特的索賠2022 年的 CCC AI 解決方案是 2019 年水平的 3 倍。我們仍處於 AI 驅動解決方案採用周期的早期階段。隨著 P&C 保險經濟越來越多地轉向直通式處理以提高運營效率和更好的消費者體驗，這些解決方案有望在未來得到更大程度的採用。例如，在 2022 年 9 月對 100 多名保險業高管進行的一項調查中，90% 的受訪者表示，實施直通式處理是他們的首要任務。

In late 2021, we introduced the auto insurance industries first AI-powered touchless estimating solution, Estimate-STP. This industrial strength AI solution can auto generate a complete repair estimate on a qualified repairable claim in seconds without human intervention. We announced our first customer in November 2021 and have since signed up 15 insurers including 7 of the top 10 carriers, representing over 50% of U.S. auto claims volume. Volumes are growing quickly, but still remain a small fraction of the overall claim volumes as insurers align their internal processes to leverage the new technology. Another reason the adoption of Estimate-STP is so significant for our customers and for CCC is that it is an important proof point for much broader adoption of AI-driven straight-through processing solutions that improves speed and consumer experience across the auto insurance economy.

2021 年底，我們推出了汽車保險行業首個人工智能非接觸式估算解決方案 Estimate-STP。這種具有工業實力的 AI 解決方案可以在幾秒鐘內自動生成符合條件的可維修索賠的完整維修估算，無需人工干預。我們於 2021 年 11 月宣布了我們的第一個客戶，此後與 15 家保險公司簽約，其中包括前 10 大承運人中的 7 家，占美國汽車索賠量的 50% 以上。數量正在快速增長，但仍然只佔總索賠量的一小部分，因為保險公司調整其內部流程以利用新技術。採用 Estimate-STP 對我們的客戶和 CCC 如此重要的另一個原因是，它是更廣泛採用人工智能驅動的直通式處理解決方案的重要證據，可以提高整個汽車保險經濟的速度和消費者體驗。

Increasingly, these new solutions rely on a combination of our artificial intelligence and our interconnected network to deliver results. CCC's interconnected network is large and complex and includes a growing number of participants, including insurers, collision repair facilities, part suppliers, lenders, OEMs and more. Last year, our network connected over 30,000 of our customers to tens of millions of their customers, generating value for all participants and supporting mission-critical processes across more than $100 billion of commerce.

這些新解決方案越來越依賴於我們的人工智能和互連網絡的結合來交付結果。 CCC 的互連網絡龐大而復雜，包括越來越多的參與者，包括保險公司、碰撞修復設施、零件供應商、貸方、原始設備製造商等。去年，我們的網絡將超過 30,000 名客戶與其數千萬客戶聯繫起來，為所有參與者創造價值，並支持超過 1000 億美元商業中的關鍵任務流程。

We believe that CCC's interconnected network is an essential enabler of the auto insurance economies, digital transformation and a great way for our customers to address the rapidly increasing complexity they face.

我們相信，CCC 的互連網絡是汽車保險經濟、數字化轉型的重要推動力，也是我們客戶解決他們所面臨的迅速增加的複雜性的好方法。

Let me conclude by saying that we are incredibly proud of what our team accomplished in 2022. We're excited about what we have planned for 2023, and we remain confident in our ability to continue to deliver on our strategic and financial objectives.

最後，我要說的是，我們為我們的團隊在 2022 年取得的成就感到無比自豪。我們對 2023 年的計劃感到興奮，我們對繼續實現戰略和財務目標的能力充滿信心。

I will now turn the call over to Brian, who will walk you through our results.

我現在將把電話轉給布賴恩，他將向您介紹我們的結果。

Thanks, Githesh. As we now turn to the numbers, I'd like to review our fourth quarter and fiscal year 2022 results and then provide guidance for the first quarter and full year 2023.

謝謝，吉塞什。當我們現在轉向數字時，我想回顧一下我們第四季度和 2022 財年的業績，然後為第一季度和 2023 年全年提供指導。

Total revenue for the fourth quarter was $204.1 million, up 9% from the prior year period. Total revenue for the fiscal 2022 was $782 million, up 14% from 2021. Githesh our $1 billion-plus investment in R&D that's been made over the last 10 years. We are seeing returns from that investment in innovation as our newer solutions contribute to our financial performance.

第四季度總收入為 2.041 億美元，比去年同期增長 9%。 2022 財年的總收入為 7.82 億美元，比 2021 年增長 14%。Githesh 我們在過去 10 年中進行的超過 10 億美元的研發投資。隨著我們更新的解決方案為我們的財務業績做出貢獻，我們正在看到創新投資的回報。

Approximately 1/3 of our revenue growth in 2022, for example, came from solutions introduced in the past several years, confirming that our strategy around innovation is taking hold. Approximately 6 points of our revenue growth in Q4 was driven by cross-sell and upsell into our installed client base, including continued adoption of solutions like mobile, Engage and our digital solutions around total loss. An incremental 3 percentage points came from new logos, mostly through repair shops and part suppliers. There was no growth contribution in Q4 from the large expansion deals signed in the second half of 2021 as we have fully lapped that growth impact. Also worth noting is that 99% of our revenue in the fourth quarter was domestic.

例如，我們 2022 年收入增長的大約 1/3 來自過去幾年推出的解決方案，這證實了我們圍繞創新的戰略正在站穩腳跟。我們在第四季度的收入增長中約有 6 個百分點是由交叉銷售和追加銷售到我們已安裝的客戶群所推動的，包括繼續採用移動、Engage 等解決方案和我們圍繞全損的數字解決方案。新徽標增加了 3 個百分點，主要來自維修店和零件供應商。 2021 年下半年簽署的大型擴張交易對第四季度沒有增長貢獻，因為我們已經完全消化了這種增長影響。同樣值得注意的是，我們第四季度 99% 的收入來自國內。

Now turning to our key metrics. Software gross dollar retention or GDR and captures the amount of revenue retained from our client base compared to the prior year period. In Q4 2022, GDR was 99%. That is consistent with the last quarter and all of 2022. We believe our strong software GDR reflects the value we provide and the significant benefits that accrue to our customers from participating in the broader CCC network. Software GDR is a core tenet to our predictable and resilient business model. Software net dollar retention, or NDR, captures the amount of cross-sell and upsell from our existing customers compared to the prior year period as well as volume movements in our auto physical damage client base.

現在轉向我們的關鍵指標。軟件總美元保留或 GDR 並獲取與去年同期相比從我們的客戶群中保留的收入金額。 2022 年第四季度，GDR 為 99%。這與上個季度和 2022 年全年一致。我們相信我們強大的軟件 GDR 反映了我們提供的價值以及我們的客戶通過參與更廣泛的 CCC 網絡而獲得的顯著利益。軟件 GDR 是我們可預測且有彈性的業務模型的核心原則。軟件淨美元保留率 (NDR) 捕獲了我們現有客戶與去年同期相比的交叉銷售和追加銷售量，以及我們汽車物理損壞客戶群的數量變動。

In Q4 2022, software NDR was 106%. We One last point to note on revenue. In Q4, we had about 2 percentage points of contribution to total growth from revenue not included in our NDR calculation, such as casualty, parts volume in the normal year-end true ups. This offset the 2 points of headwind from Q4 2021 that we've been referencing in the prior earnings call.

2022 年第四季度，軟件 NDR 為 106%。我們最後一點要注意收入。在第四季度，我們的 NDR 計算中未包括的收入對總增長的貢獻約為 2 個百分點，例如正常年終調整中的傷亡人數、零部件數量。這抵消了我們在之前的財報電話會議中提到的 2021 年第四季度的 2 個不利因素。

Now I'll move to the income statement in more detail. As a reminder, unless otherwise noted, all metrics are non-GAAP, and we've provided a reconciliation of GAAP to non-GAAP in our press release. Adjusted gross profit in the quarter was $157 million, with an adjusted gross profit margin of 77%. That's down from 79% in the fourth quarter of last year, which included the benefit of higher nonrecurring revenue in Q4 2021. Adjusted gross profit in the fiscal year 2022 was $605 million, with an adjusted gross profit margin of 77%, down slightly from 78% in the fiscal year 2021. We feel good about the operating leverage and scalability of our business and being able to deliver against our long-term target of 80% in terms of expenses, adjusted operating expense in Q4 2022 was $81.8 million, up 5% year-over-year.

現在我將更詳細地轉到損益表。提醒一下，除非另有說明，否則所有指標均為非 GAAP，我們在新聞稿中提供了 GAAP 與非 GAAP 的對賬。本季度調整後毛利為 1.57 億美元，調整後毛利率為 77%。這低於去年第四季度的 79%，其中包括 2021 年第四季度非經常性收入增加的好處。2022 財年調整後的毛利潤為 6.05 億美元，調整後的毛利率為 77%，略低於2021 財年為 78%。我們對我們業務的運營槓桿和可擴展性感到滿意，並且能夠實現我們 80% 的長期目標，2022 年第四季度調整後的運營費用為 8180 萬美元，同比增長同比增長 5%。

Adjusted operating expense in fiscal year 2022 was $324.8 million, up 9% year-over-year. In Q4, growth in these expenses were largely driven by headcount addition and to a lesser extent, recovering travel and other discretionary spend that have now mostly normalized. On the headcount point, we are pleased with the progress made to advance both operational capabilities and capacity for new product innovation. We added key positions across the company, including increasing our staff month capacity and product development by approximately 20%. We feel we are in a strong position to continue to deliver ongoing innovation to the market and execute against our strategic agenda.

2022 財年調整後的運營費用為 3.248 億美元，同比增長 9%。在第 4 季度，這些費用的增長主要是由於員工人數的增加，以及在較小程度上恢復的差旅和其他可自由支配的支出，這些支出現已基本正常化。在員工人數方面，我們對在提昇運營能力和新產品創新能力方面取得的進展感到高興。我們在整個公司增加了關鍵職位，包括將我們的員工月產能和產品開發增加了大約 20%。我們認為我們處於有利地位，可以繼續向市場提供持續創新並執行我們的戰略議程。

Adjusted EBITDA for the quarter was $80.1 million, up 6% year-over-year and an adjusted EBITDA margin of 39.2%. Adjusted EBITDA for the full year 2022 was $305.4 million, up 17% year-over-year with an adjusted EBITDA margin of 39%. This is another year of 100 basis point plus margin improvement and an increase of 900 basis points over the last 3 years.

本季度調整後的 EBITDA 為 8010 萬美元，同比增長 6%，調整後的 EBITDA 利潤率為 39.2%。 2022 年全年調整後的 EBITDA 為 3.054 億美元，同比增長 17%，調整後的 EBITDA 利潤率為 39%。這又是 100 個基點加上利潤率改善的一年，並且在過去 3 年中增加了 900 個基點。

Now turning to the balance sheet and cash flow. We ended the quarter with $324 million in cash and cash equivalents and $792 million of debt. At the end of the quarter, our net leverage was approximately 1.5x adjusted EBITDA. Free cash flow in the quarter was $72.4 million compared to $17.3 million in the prior year period. Free cash flow for the fiscal year 2022 was $152 million compared to $89 million in fiscal year 2021. For the fiscal year 2022, we converted approximately 59% of our adjusted EBITDA into unlevered free cash flow. If you adjust for the interest rate cap, the completion of the headquarters build-out and determination and buyout of a real estate lease at year-end, our adjusted unlevered free cash flow would have been in the mid-60s range for the full year 2022, which is consistent with historical results.

現在轉向資產負債表和現金流量。本季度結束時，我們擁有 3.24 億美元的現金和現金等價物以及 7.92 億美元的債務。本季度末，我們的淨槓桿約為調整後 EBITDA 的 1.5 倍。本季度的自由現金流為 7240 萬美元，而去年同期為 1730 萬美元。 2022 財年的自由現金流為 1.52 億美元，而 2021 財年為 8900 萬美元。在 2022 財年，我們將調整後 EBITDA 的大約 59% 轉換為無槓桿自由現金流。如果你調整利率上限、總部擴建的完成以及年底房地產租賃的確定和買斷，我們調整後的全年無槓桿自由現金流量將在 60 年代中期的範圍內2022年，與歷史結果一致。

I'd like to finish with guidance beginning with the first quarter of 2023. We expect total revenue of $202 million to $204 million. This represents 8% to 9% year-over-year growth. We expect adjusted EBITDA of $76 million to $78 million, which represents a 38% adjusted EBITDA margin at the midpoint. For the full year 2023, we expect revenue of $842 million to $850 million, which represents 8% to 9% year-over-year growth. We expect adjusted EBITDA of $330 million to $338 million, which represents a 39% adjusted EBITDA margin at the midpoint.

我想以 2023 年第一季度開始的指導作為結束。我們預計總收入為 2.02 億美元至 2.04 億美元。這意味著同比增長 8% 至 9%。我們預計調整後的 EBITDA 為 7600 萬美元至 7800 萬美元，這意味著調整後的 EBITDA 利潤率中點為 38%。對於 2023 年全年，我們預計收入為 8.42 億美元至 8.5 億美元，同比增長 8% 至 9%。我們預計調整後的 EBITDA 為 3.3 億美元至 3.38 億美元，這相當於 39% 的調整後 EBITDA 利潤率中點。

Three points to keep in mind as you think about our first quarter and full year guidance: The first is our emerging solutions contributed about 1 point of growth in 2022 with Diagnostics being the largest contributor. We do expect this set of solutions to be a more significant contributor in 2023.

在考慮我們的第一季度和全年指導時，請牢記三點：首先是我們的新興解決方案在 2022 年貢獻了約 1 個百分點的增長，其中診斷是最大的貢獻者。我們確實希望這套解決方案在 2023 年成為更重要的貢獻者。

The second point is that we expect adjusted EBITDA margin in the first half of 2023 to be constrained by the reset of employee-related expenses and multiple clients and internal events. We expect most of the year-over-year margin progression to take place in the second half of 2023 as we lap the higher than we did in the second half of 2022, and we benefit from continued operating leverage in the business.

第二點是，我們預計 2023 年上半年調整後的 EBITDA 利潤率將受到員工相關費用重置以及多個客戶和內部事件的限制。我們預計大部分同比利潤率增長將發生在 2023 年下半年，因為我們的股價高於 2022 年下半年的水平，並且我們受益於該業務的持續運營槓桿。

The third point is that we will continue to focus on investing in innovation to support our growth ambitions while at the same time progressing towards our long-term target of mid-40s adjusted EBITDA margin. Overall, our guidance reflects our confidence in the underlying momentum of the business. The combination of our advanced AI capabilities and our interconnected network puts us in a unique position to help our customers improve the speed and accuracy of their decision-making, support cost efficiency across their operations and their overall customer experience.

第三點是，我們將繼續專注於創新投資，以支持我們的增長雄心，同時朝著我們 40 年代中期調整後 EBITDA 利潤率的長期目標邁進。總體而言，我們的指引反映了我們對業務潛在勢頭的信心。我們先進的 AI 功能與互聯網絡相結合，使我們處於獨特的位置，可以幫助我們的客戶提高決策速度和準確性，支持其運營的成本效率和整體客戶體驗。

We believe we have many shots on goal across our solution set. This includes solutions that we've had in the market for some time, light casualty and repair shop package upsells. And solutions that have launched in the past few years that are contributing to growth like mobile and Engage as well as our new set of emerging solutions such as Diagnostics, Estimate-STP and Subrogation. The need for digitization across the P&C insurance economy continues to accelerate, and CCC is well positioned to drive durable growth in both revenue and profitability in the near and long term. We are confident in our ability to deliver against our long-term target of 7% to 10% organic revenue growth and adjusted EBITDA margins expanding into the mid-40s.

我們相信我們在整個解決方案集中有很多機會。這包括我們在市場上已有一段時間的解決方案、輕傷和維修店套餐加售。以及在過去幾年中推出的解決方案，這些解決方案有助於移動和 Engage 等增長，以及我們新的一套新興解決方案，例如 Diagnostics、Estimate-STP 和 Surogation。整個 P&C 保險經濟對數字化的需求持續加速，而 CCC 有能力在近期和長期推動收入和盈利能力的持久增長。我們有信心實現 7% 至 10% 有機收入增長的長期目標，並將調整後的 EBITDA 利潤率擴大到 40 多歲。

As we continue to execute on our strategic priorities, we believe we will generate significant value for both our customers and our shareholders.

隨著我們繼續執行我們的戰略重點，我們相信我們將為我們的客戶和股東創造巨大的價值。

With that, operator, we're now ready to take questions.

有了這個，接線員，我們現在準備好接受提問了。

(Operator Instructions) Our first question comes from the line of Gabriela Borges of Goldman Sachs.

（操作員說明）我們的第一個問題來自高盛的 Gabriela Borges。

This is Kelly on for Gabriela. Congrats on the quarter. First one for me is just you talked about one of your focus areas within payments as the carrier to repair facility payments. How is progressing from a technical perspective? And how is customer conversations been going?

這是加布里埃拉的凱利。祝賀這個季度。對我來說，第一個就是你談到了支付中的一個重點領域，作為維修設施支付的承運人。從技術角度來看進展如何？客戶對話進行得如何？

Thanks for joining. I would say that the conversations are going well. We are continuing to see a fair amount of interest in really getting not only the carrier to repair, there's a lot of complexity there. So people are excited about that. We also expect that our payment solutions will generate revenue, and we are finding broader applications. So it's coming along.

感謝您的加入。我會說談話進行得很順利。我們繼續看到人們對真正讓航母進行維修的興趣相當大，那裡有很多複雜性。所以人們對此感到興奮。我們還希望我們的支付解決方案能夠產生收入，並且我們正在尋找更廣泛的應用。所以它來了。

And then just as a follow-up, how has progress been with Subrogation? Is there any difference in how you're approaching the go-to-market with that product? And how has that kind of trended relative to your initial expectations?

然後作為後續行動，代位求償的進展如何？您對該產品進入市場的方式有何不同？與您最初的預期相比，這種趨勢如何？

Sure. So we've done 3 things on the Subrogation front. First and foremost, we have substantially upgraded some of the technology underpinnings in terms of platform and architecture from the acquisition. So network -- that development work is complete so that we can actually execute at scale. So that's gone really well. The early conversations with customers in terms of pilots, capability, product expansion. Those are going well. The integration is going well. So we feel good about the strategic direction as well as the work to date to integrate Subrogation to be a key part of our offering.

當然。所以我們在代位求償方面做了三件事。首先，我們從收購中大幅升級了平台和架構方面的一些技術基礎。所以網絡——開發工作已經完成，這樣我們就可以真正大規模地執行。所以這真的很順利。在試點、能力、產品擴展方面與客戶進行早期對話。那些進展順利。整合進展順利。因此，我們對戰略方向以及迄今為止將代位求償整合為我們產品的關鍵部分的工作感到滿意。

Our next question comes from the line of Dylan Becker of William Blair.

我們的下一個問題來自威廉布萊爾的迪倫貝克爾。

This is (inaudible) on for Dylan. I know you guys touched on the Estimate-STP, but can you elaborate on that journey and what the typical rollout looks like as you have like a large share of the DWP customers, but there's relatively low overall penetration. So how are you guys thinking of that value realization driving the ramp towards greater wallet share over time?

這是 Dylan 的（聽不清）。我知道你們談到了 Estimate-STP，但是你們能否詳細說明這段旅程以及典型的推出是什麼樣的，因為你們有很大一部分 DWP 客戶，但總體滲透率相對較低。那麼你們如何看待隨著時間的推移推動更大錢包份額的價值實現？

Yes. So here's how we -- how the solution itself is developing. As you recall, we said -- we delivered the product after many, many years of R&D in November of 2021. And we started working with early customers who wanted to test these capabilities and see how it works. And what we are really seeing is that the ramp follows really 3 particular ways -- 3 particular ways. So first, people test the solution for accuracy, capability, because this is, again, the first of its kind. So before people are willing to make a commitment, that testing can take a fair amount of time. So we're truly excited that today- as of today, 15 of our customers have selected, including, as you pointed out, 7 of the top 10.

是的。所以這就是我們如何 - 解決方案本身是如何發展的。正如您所記得的，我們說過——經過多年的研發，我們在 2021 年 11 月交付了該產品。我們開始與想要測試這些功能並了解其工作原理的早期客戶合作。我們真正看到的是，斜坡實際上遵循 3 種特定方式 - 3 種特定方式。所以首先，人們測試解決方案的準確性和能力，因為這又是同類產品中的第一個。因此，在人們願意做出承諾之前，測試可能需要相當長的時間。所以我們真的很高興今天 - 截至今天，我們的 15 位客戶已經選擇，包括正如您指出的前 10 名中的 7 位。

The second thing people do once they feel very comfortable with the solution is to start rolling it out in limited geographies. So people might start in 1 state or 2 states or 3 states. And then -- and as people get more comfortable, make the adjustments, start rolling it out in about all 50 states. Third, we've been very careful and very thoughtful in terms of which claims qualify for Estimate-STP and the AI. And so the third step is to now to have what -- the percentage of claims that go through Estimate-STP start to gradually increase as this thing applies to more and more qualified claims.

一旦人們對解決方案感到非常滿意，他們做的第二件事就是開始在有限的地區推出它。所以人們可能從 1 個狀態或 2 個狀態或 3 個狀態開始。然後——隨著人們越來越適應，做出調整，開始在大約所有 50 個州推廣。第三，對於哪些聲明符合 Estimate-STP 和 AI 的條件，我們一直非常謹慎和深思熟慮。因此，第三步是現在擁有什麼——隨著這件事適用於越來越多的合格索賠，通過 Estimate-STP 的索賠百分比開始逐漸增加。

So those are really the 3 metrics -- 3 ways in terms of adoption. And it's not really very different from adoption we've seen over many, many years for many other products where people start out and then continue to expand over time and -- but the early design wins, if you would, with customers making decisions on the platform, we view that as very, very fundamental. I hope that answered your question.

所以這些實際上是 3 個指標 - 就採用而言的 3 種方式。這與我們多年來看到的許多其他產品的採用並沒有太大的不同，人們開始使用這些產品，然後隨著時間的推移繼續擴展——但是早期的設計獲勝，如果你願意的話，客戶會做出決定平台，我們認為這是非常非常重要的。我希望這回答了你的問題。

No, that was super helpful. And then just a follow-up on kind of switching lanes here. Can you talk about that broader medical opportunity and how the data, the cutline structure and the overall complexity differs from other aspects of your business and what it takes to build out that piece of the claims equation?

不，那非常有幫助。然後只是這里關於切換車道的跟進。您能否談談更廣泛的醫療機會以及數據、切割線結構和整體複雜性與您業務的其他方面有何不同，以及構建索賠方程式需要什麼？

Sure. We have been delivering Casualty solutions for, say, almost a decade now. And roughly one in -- call it, roughly 1 in 5 auto claims results in a casualty claim. So there's a fair amount of linkage between an auto -- what happens in an auto claim and what results in a medical or casualty claim. So we have a number of solutions for medical bill review, a number of workflow solutions, a couple of mobile solutions to work directly with consumers, both in first party, first party, which is the claimant of the insurance company, or third party, which is the policyholder of the car on the other side. So we've built a number of solutions over there.

當然。近十年來，我們一直在提供傷亡解決方案。大約有五分之一的汽車索賠導致傷亡索賠。因此，汽車之間存在相當多的聯繫——汽車索賠中發生的事情與醫療或傷亡索賠的結果。所以我們有一些醫療賬單審查解決方案，一些工作流程解決方案，一些直接與消費者合作的移動解決方案，無論是第一方，第一方，即保險公司的索賠人，還是第三方，這是另一邊汽車的保單持有人。所以我們在那裡建立了許多解決方案。

And what -- and we've also spent a fair amount of R&D and capability in upgrading these platforms over the last several years, and we are now starting to see the benefit of customers adopting more casualty solutions. One metric to keep in mind is that while we have 300 insurance customers, we only have about 50 Casualty customers as of now. So that's why we view the growth opportunity is significant.

什麼——在過去的幾年裡，我們也花費了大量的研發和能力來升級這些平台，我們現在開始看到客戶採用更多傷亡解決方案的好處。要記住的一個指標是，雖然我們有 300 名保險客戶，但截至目前我們只有大約 50 名傷亡客戶。所以這就是為什麼我們認為增長機會很重要。

Our next question comes from the line of Michael Funk of Bank of America.

我們的下一個問題來自美國銀行的 Michael Funk。

Yes. A couple if I could. So first, for a high level, any change in spending plans or activity from your customers?

是的。如果可以的話一對夫婦。那麼首先，對於較高的水平，您的客戶的支出計劃或活動有任何變化嗎？

Look, we are monitoring the macro environment very, very carefully. And we have not seen a material change. And I would attribute part of that really a handful of things. One, what we deliver is mission critical. And as we talked about, the operational efficiencies to really address inflation, to address labor shortage, to address vehicle complexity, our solutions deal directly with these solutions. And I think the other thing that helps to some degree is that the ROI for these solutions is very tight. We can get -- we can deploy a solution and our customers can see the impact literally in 30, 60 or 90 days. So it does not require a multiyear forklift big upgrade of platform.

看，我們正在非常非常仔細地監控宏觀環境。我們還沒有看到實質性的變化。我會將其中的一部分歸因於少數幾件事。第一，我們提供的是關鍵任務。正如我們所說，真正解決通貨膨脹、解決勞動力短缺、解決車輛複雜性的運營效率，我們的解決方案直接處理這些解決方案。我認為在某種程度上有幫助的另一件事是這些解決方案的投資回報率非常低。我們可以獲得 - 我們可以部署一個解決方案，我們的客戶可以在 30、60 或 90 天內真正看到影響。所以它不需要多年的叉車平台大升級。

Third, since we are already integrated deep into people, into our customers platforms and systems, additional functionality is also easier to deploy in terms of training and rolling it out. So I think those things are helping. But I would say the single most important thing is and this is mission critical. And we are monitoring the situation carefully but have not seen any material changes.

第三，由於我們已經深入地融入到人、我們的客戶平台和系統中，因此在培訓和推廣方面也更容易部署額外的功能。所以我認為這些事情是有幫助的。但我會說最重要的事情是，這是關鍵任務。我們正在仔細監測情況，但沒有看到任何實質性變化。

And then you mentioned AI earlier in your script, obviously, your massive data set, strong adoption to date, STP, for example. But can you talk more broadly about the opportunity longer term incorporating AI, maybe quantifying the potential market there for you looking forward?

然後你在腳本的前面提到了人工智能，很明顯，你的海量數據集，迄今為止的廣泛採用，例如 STP。但是，您能否更廣泛地談談長期結合 AI 的機會，也許可以量化那裡的潛在市場以供您期待？

Yes. We have not actually publicly quantified the markets across the board. But one specific thing that Estimate-STP has done is this is actually one of the most complex applications of artificial intelligence because you're taking pictures around the car and understanding the 3-dimensional spatial structure of the vehicle, the damage to the vehicle, what parts are damaged, different color combination, cars, pickup trucks and the like. So it requires an extraordinary level of complexity and many, many layers of neural networks that you've build. And by deploying this solution first and dealing with that complexity, we also feel it's given us a lot of credibility with our customers to be able to go to really what we think is a much bigger and broader application of artificial intelligence. That is straight-through processing. By straight-through processing -- sorry, go ahead.

是的。我們實際上並沒有公開全面量化市場。但 Estimate-STP 所做的一件具體事情是，這實際上是人工智能最複雜的應用之一，因為你在汽車周圍拍照並了解車輛的 3 維空間結構、車輛的損壞情況、什麼零件損壞，不同的顏色組合，汽車，皮卡車等。所以它需要非常複雜的水平和你構建的很多很多層的神經網絡。通過首先部署這個解決方案並處理這種複雜性，我們也覺得它給了我們很多客戶的信任，讓我們能夠真正實現我們認為更大更廣泛的人工智能應用。那就是直通式處理。通過直接處理——抱歉，請繼續。

No, no, no, I'm sorry, I cut you off. Apologies.

不，不，不，對不起，我打斷了你。道歉。

Yes. So straight-through processing is a much, much broader application. So straight through processing, the way we think about it applies everything from first, when you report a claim, what should I do with this vehicle to routing, to scheduling, to parts ordering, to repair, to which claims to subrogate, which claims to not subrogate, what do I send to salvage.

是的。所以直通式處理是一個非常非常廣泛的應用。因此，直接通過處理，我們考慮它的方式適用於一切，從首先，當你報告索賠時，我應該如何處理這輛車到路線安排，到計劃，到零件訂購，到維修，到代位索賠，索賠不代位，我送什麼去打撈。

And then on the repair side, artificial intelligence applies extensively because you may be seeing -- as a repair technician, you might be seeing a car for the first -- this particular car and this particular damage for the first time. But any -- a car might have 20,000-plus parts, might have complex repair procedures, paint techniques, so we think AI applies in those areas, it applies across a very, very broad range. So the heart of it is really 2 things: One, continue to make sure our data set is really good that allows us to rev hundreds of AI models; and second, deploy that in line inside the workflow that we are already in.

然後在維修方面，人工智能得到廣泛應用，因為你可能會看到——作為一名維修技術人員，你可能第一次看到汽車——這輛特殊的汽車和這種特殊的損壞是第一次。但是任何——一輛汽車可能有 20,000 多個零件，可能有復雜的維修程序、油漆技術，所以我們認為人工智能適用於這些領域，它適用於非常非常廣泛的範圍。所以它的核心實際上是兩件事：第一，繼續確保我們的數據集非常好，使我們能夠改進數百個 AI 模型；其次，將其部署在我們已經處於的工作流程中。

Our next question comes from the line of Arvind Ramnani of Piper Sandler.

我們的下一個問題來自 Piper Sandler 的 Arvind Ramnani。

I just wanted to ask you about some of the investments you are making, I mean you're talking about the roughly 100 bps margin expansion this year and kind of 900 bps of margin expansion over the past several years. With that said, like I just -- I'm just trying to get an understanding of this AI and kind of automation opportunity that lies in front of you. And would it make sense to kind of double the efforts on making investments in that regard?

我只是想問你一些你正在進行的投資，我的意思是你說的是今年大約 100 個基點的利潤率擴張，以及過去幾年 900 個基點的利潤率擴張。話雖如此，就像我剛才 - 我只是想了解這個人工智能和擺在你面前的那種自動化機會。在這方面加倍努力投資是否有意義？

Yes. Maybe we'll handle it in 2 parts, with me and Brian jumping in. So I'll take kind of the first part of your question, Arvind.

是的。也許我們會分兩部分處理，我和 Brian 會參與進來。所以我會回答你問題的第一部分，Arvind。

So I do think at the heart of it, what we've spent -- done over the last decade is build enormous core AI capability. That means the ability to build models, the ability to rev models, the ability to deploy models. And that -- and actually build a lot of talent right, with people, with doctors and everything from neural nets to AI and machine learning. So we built -- we feel we've built a lot of those capabilities. And what we are doing is being fairly judicious in terms of applying AI to a number of use cases and one of the things, as I mentioned earlier in my call, we have a Net Promoter Score of 82.

所以我確實認為它的核心是，我們在過去十年中所做的是建立巨大的核心 AI 能力。這意味著構建模型的能力、修改模型的能力、部署模型的能力。那——實際上培養了很多人才，與人、醫生以及從神經網絡到人工智能和機器學習的一切。所以我們建立了——我們覺得我們已經建立了很多這樣的能力。我們正在做的是在將 AI 應用於許多用例和其中一件事方面相當明智，正如我之前在電話中提到的那樣，我們的淨推薦值是 82。

So if you -- to get to a Net Promoter Score of 82, it means you have to be very judicious about the quality of what you deliver and the speed and rate of adoption. So AI will be deployed across the board because we see this as a secular opportunity of the many, many years but there's a certain rate at which you invest or the money is wasted. So we're being very balanced and very prudent.

因此，如果你——要獲得 82 的淨推薦值，這意味著你必須非常審慎地審視你交付的內容的質量以及採用的速度和比率。所以 AI 將全面部署，因為我們認為這是很多年的長期機會，但你投資或浪費金錢的速度是一定的。所以我們非常平衡，非常謹慎。

Brian, if you want to jump in.

布賴恩，如果你想加入。

Yes. I would just echo Githesh's point. I mean we remain super focused on a balanced approach. So investing in innovation and at the same time driving operational efficiency. And we believe we can do both. I mean, you highlighted the points you made or we made about 900 basis points of improvement over the past several years. At the same time, we referenced putting $1 billion into R&D. We talked about adding 20% of capacity and headcount focused on product development. So we believe we can do both, continue to put a significant investment in the business and really drive the AI capabilities. At the same time, continue to progress margins and move to our long-term targets of margins in the mid-40s.

是的。我只想回應 Githesh 的觀點。我的意思是我們仍然非常專注於平衡的方法。因此，投資於創新，同時提高運營效率。我們相信我們可以做到這兩點。我的意思是，您強調了您提出的觀點，或者我們在過去幾年中取得了大約 900 個基點的改進。同時，我們提到將 10 億美元用於研發。我們談到了增加 20% 的產能和員工人數，專注於產品開發。因此，我們相信我們可以做到這兩點，繼續對業務進行大量投資，並真正推動 AI 功能的發展。與此同時，繼續提高利潤率，並在 40 年代中期實現我們的長期利潤率目標。

Perfect. And I mean, I think if you -- that ChatGPT is sort of like kind of rages, everyone's talking about ChatGPT and generative AI, but I guess one of the limitations is that the data that available is only available until 2021. Your data is like a lot more real time, right? Like I talked about inflation and some of the kind of more kind of repair shops and the delay in getting automobile repair and stuff. Your data is a lot more real time. Are you able to kind of talk a little bit about how real time is it? Is it still like 3 months dated? Or is it real time as like every day it gets updated? And any kind of commonalities or differences between that generative AI.

完美的。我的意思是，我認為如果你 - ChatGPT 有點像憤怒，每個人都在談論 ChatGPT 和生成人工智能，但我想其中一個限制是可用的數據只能在 2021 年之前使用。你的數據是更實時，對吧？就像我談到通貨膨脹和一些更多種類的維修店以及汽車維修和其他東西的延遲。您的數據更加實時。你能談談它的實時性嗎？它仍然像 3 個月約會？還是像每天更新一樣實時？以及該生成式 AI 之間的任何類型的共性或差異。

Yes. I'll take your question in really 2 parts. And this is actually one of the most fundamental questions some of our customers are asking. In fact, we had a customer just last week in the office and this was actually one of the key things. And I think your point becomes extraordinarily relevant if you look at one data point, for an example, I'll just pick one. The price of used cars has increased by almost 50% in the last 18 months or so. It goes up, sometimes it goes up significantly and then sometimes it goes down and then goes back up. So used car pricing might literally change on a week-to-week, month-to-month basis. Same thing with parts prices and so on.

是的。我會分兩部分回答你的問題。這實際上是我們的一些客戶提出的最基本的問題之一。事實上，我們上周剛在辦公室接待了一位客戶，這實際上是其中一件關鍵的事情。而且我認為，如果您查看一個數據點，您的觀點就會變得非常相關，例如，我將只選擇一個。在過去 18 個月左右的時間裡，二手車的價格上漲了近 50%。它會上升，有時會大幅上升，有時會下降，然後又回升。因此，二手車定價可能會逐週、逐月發生變化。零件價格等也是如此。

So one of the benefits we have is that on any given day, the scale of transactional data repairs, estimates, supply chain information flowing through a network is massive. So even if you build an AI model, that currency and the speed at which you can rev this model, we learned how to do that with software releases. We did over 1,000 software releases last year and maintained a network or uptime of 99.95. So we had to do the same thing with AI, and we can literally rev some of the models on a monthly basis. Some of this gets updated. And not only do rev and update these models, there's also an important element of AI called drift that you have to manage.

因此，我們擁有的好處之一是，在任何一天，交易數據修復、估計、流經網絡的供應鏈信息的規模都是巨大的。因此，即使你構建了一個 AI 模型、貨幣和你可以修改這個模型的速度，我們也學會瞭如何通過軟件發布來做到這一點。去年我們發布了 1,000 多個軟件版本，並保持了 99.95 的網絡或正常運行時間。所以我們不得不對 AI 做同樣的事情，我們可以每月對一些模型進行修改。其中一些得到更新。不僅要改進和更新這些模型，還有一個重要的 AI 元素，稱為漂移，您必須對其進行管理。

So drift is the difference between what your initial AI model is -- was seeing and what you're seeing in practical and real time and monitoring that drift also governs the frequency with which your models are updated. So all of these capabilities take enormous amount of time, compute power and the ability to scale and deploy especially across a large customer set. So you're absolutely right. That currency we think is critical.

因此，漂移是您最初的 AI 模型所看到的與您實際和實時看到的之間的差異，並且監控漂移也決定了您的模型更新的頻率。因此，所有這些功能都需要大量的時間、計算能力以及擴展和部署的能力，尤其是在大型客戶群中。所以你是絕對正確的。我們認為這種貨幣至關重要。

And then the second part of your question regarding ChatGPT, ChatGPT today relies on a lot of public data, lot of data that's in the public domain. And it's web data, et cetera. Even if the data goes from -- and we are actually quite excited about the technology, and we'll deploy it in probably some pieces of where it makes sense. But much of the data sets that we're talking about are changing on a very deep and real-time basis that unless you're deep in the middle of these transactions, you don't actually see this data set.

然後是關於 ChatGPT 的問題的第二部分，今天的 ChatGPT 依賴於大量公共數據，大量數據屬於公共領域。它是網絡數據，等等。即使數據來自——我們實際上對這項技術感到非常興奮，我們也會將它部署在一些有意義的地方。但是我們談論的大部分數據集都在非常深入和實時的基礎上發生變化，除非你深入這些交易的中間，否則你實際上看不到這個數據集。

Does that help, Arvind, in terms of the questions.

就問題而言，這對 Arvind 有幫助嗎？

(technical difficulty)

（技術難度）

Process and consume data in real time. I mean I think that seems to be even more relevant in an environment where prices are moving, like you said, up and down, a little bit more dramatically than in the past.

實時處理和使用數據。我的意思是，我認為這在價格波動的環境中似乎更為相關，就像你說的那樣，上下波動，比過去更加劇烈。

Yes. Arvind, we lost you for a few seconds. So I didn't know whether you had a question or a comment.

是的。 Arvind，我們失去了你幾秒鐘。所以我不知道你是否有問題或意見。

No, no, I was just saying it was helpful because it just makes me realize that your solution is a lot more relevant in this environment where prices are moving up and down. And so it becomes a lot more compelling to use a solution that you can get more real-time data. So I was just -- saying just, thanks.

不，不，我只是說它有幫助，因為它只是讓我意識到你的解決方案在這個價格上下波動的環境中更為相關。因此，使用可以獲得更多實時數據的解決方案變得更有吸引力。所以我只是 - 只是說，謝謝。

Our next question comes from the line of David Kelley of Jefferies.

我們的下一個問題來自 Jefferies 的 David Kelley。

I was hoping you could talk a bit more about the MSO relationship expansion that you announced, I guess, from our end to 400 location additions, seems like a nice add-on for quarters. So curious how impactful those MSO contract expansion tend to be for you, particularly as we step back and think about those customers continue to consolidate the repair facility sector at their level.

我希望你能多談談你宣布的 MSO 關係擴展，我想，從我們的終端到 400 個位置的添加，似乎是一個不錯的季度附加組件。很好奇這些 MSO 合同擴展對您的影響有多大，特別是當我們退後一步並考慮這些客戶繼續在他們的水平上鞏固維修設施部門時。

Yes, David, it's Brian. Yes, so we certainly -- the MSO relationships are a meaningful part of our business, and we continue to build those out. If you step back and look at our metrics on kind of the new logos. If you go back 5 years, we've been adding about 1,000 new rooftops per year. And certainly, the MSOs and the expansion of those relationships have contributed to that. And we feel really good about where that's going as well as we look forward.

是的，大衛，是布萊恩。是的，所以我們當然 - MSO 關係是我們業務的重要組成部分，我們將繼續建立這些關係。如果您退後一步，看看我們關於新徽標的指標。如果回溯 5 年，我們每年都會增加大約 1,000 個新屋頂。當然，MSO 和這些關係的擴展促成了這一點。我們對未來的發展方向以及我們的期待感到非常滿意。

The $400 million that we talked about didn't necessarily play much into this year because we signed it at the end of the year and the onboarding will bleed into next year, but it will be part of our new logo growth in the repair facilities into '23. and we feel really good about kind of continuing the cadence of adding 1,000 shops a year.

我們談到的 4 億美元不一定對今年起到很大作用，因為我們在年底簽署了它，入職將流血到明年，但這將是我們在維修設施中新徽標增長的一部分'23。我們對繼續每年增加 1,000 家商店的節奏感到非常滿意。

And by next year, Brian, I think you meant '23.

到明年，布賴恩，我想你的意思是 23 歲。

Yes. I'm sorry, yes, 23.

是的。對不起，是的，23歲。

Okay. Got it. That's super helpful. And then appreciate the color on the Diagnostics ramp within that emerging solutions contribution, you mentioned. I guess should we expect Diagnostics will again be, let's call it, like the leading driver of emerging growth in 2023. We're seeing massive vehicle evolution and clearly, vehicle level demand for Diagnostics. So could you speak to customer appetite to adopt the CCC Diagnostic solution, just kind of what you're hearing from NIM and how quickly they're looking to adopt that sort of solution set?

好的。知道了。這非常有幫助。然後欣賞您提到的新興解決方案貢獻中診斷斜坡上的顏色。我想我們是否應該期待診斷將再次成為 2023 年新興增長的主要驅動力？我們看到了大規模的車輛發展，並且很明顯，車輛級對診斷的需求。那麼，您能否談談客戶採用 CCC 診斷解決方案的意願，就像您從 NIM 聽到的那樣，以及他們希望採用這種解決方案集的速度有多快？

Yes. So first and foremost, what's been happening over the last several years is that as the vehicle mix changes, any cars that have really come in almost the last decade or so require a scan of some kind to understand what sensors are broken, what sensors need to be redone. So typically, the scans take place before and after. So that has been increasing and there's been a lot of inconsistencies in the market by way of how scans are done. And what we did was to bring a level of order and integration to those capabilities because manufacturers require it, consumer safety requires it. And -- so we've tried to bring a lot of order to that process.

是的。因此，最重要的是，過去幾年發生的事情是，隨著車輛組合的變化，幾乎在過去十年左右真正出現的任何汽車都需要進行某種掃描，以了解哪些傳感器損壞，哪些傳感器需要重做。所以通常，掃描發生在之前和之後。因此，這種情況一直在增加，並且市場上在掃描方式方面存在很多不一致之處。我們所做的是為這些功能帶來一定程度的秩序和集成，因為製造商需要它，消費者安全也需要它。而且 - 所以我們已經嘗試為該過程帶來很多秩序。

And with that said, the amount of diagnostic scans going through our platform is still a relatively low number. I don't know we've -- Brian, we've published the amount of what percentage of repairs are going through diagnostics, but still not a big number. But what we are seeing is that across the board, by integrating the most popular diagnostics providers into CCC ONE, it has provided a level of transparency and a seamless level of integration. So we do think this will continue to grow very nicely over the next several years. But again, we see Diagnostics as one element of a much broader portfolio of solutions that we are bringing out to the marketplace.

話雖如此，通過我們平台進行的診斷掃描數量仍然相對較少。我不知道我們 - 布賴恩，我們已經公佈了通過診斷進行維修的百分比，但仍然不是一個大數字。但我們看到的是，通過將最流行的診斷提供商集成到 CCC ONE 中，它全面提供了一定程度的透明度和無縫集成。因此，我們確實認為這將在未來幾年內繼續保持良好的增長。但同樣，我們將診斷視為我們正在推向市場的更廣泛的解決方案組合中的一個元素。

Our next question comes from the line of Chris Moore of CJS Securities.

我們的下一個問題來自 CJS 證券公司的 Chris Moore。

First, the real-time conversation you just had a few minutes ago was -- that was fascinating, very helpful. Just trying to get a little better handle on the evolution of the CCC model. So at this stage, you talked about growth coming roughly 20% from new logo, 80% cross-sell, upsell, historically that have been more like 1/3, 2/3. So is that current level something that will change over time? Or more likely, it's just a mix within the 80% that could change kind of the relatively newer versus more mature products within there.

首先，您幾分鐘前剛剛進行的實時對話是——這很有趣，非常有幫助。只是想更好地處理 CCC 模型的演變。所以在這個階段，你談到增長大約來自新標識 20%，80% 交叉銷售，追加銷售，歷史上更像是 1/3，2/3。那麼當前的水平會隨著時間的推移而改變嗎？或者更有可能的是，這只是 80% 的混合，可能會改變其中相對較新和較成熟產品的種類。

Yes, Chris, it's Brian. Yes, you have the metrics, right? So those are the metrics that we've put out. The shift from 1/3 new logo to 2/3 cross-sell, upsell of our installed base and moving to a 20% new logo and 80% upsell, cross-sell. That shift is happening, and we saw progress against that in '22, and we'll continue to move in that direction. We've given further color as you break down the 80% of cross-sell, upsell to the base and we've said over time, about half of that will come from existing solutions that have been in the market for the past several years and half of the growth will come from these newer emerging solutions that we've more recently brought into market such as Diagnostics, such as Estimate-STP and Subrogation. So we do think we'll have a meaningful impact from these newer set of solutions, but that will build out over time.

是的，克里斯，我是布萊恩。是的，你有指標，對吧？所以這些就是我們提出的指標。從 1/3 的新徽標轉變為 2/3 的交叉銷售，我們已安裝基礎的追加銷售，並轉向 20% 的新徽標和 80% 的追加銷售，交叉銷售。這種轉變正在發生，我們在 22 年看到了反對這種轉變的進展，我們將繼續朝著這個方向前進。當您將 80% 的交叉銷售、追加銷售分解為基礎時，我們給出了更多的顏色，我們已經說過，隨著時間的推移，其中大約一半將來自過去幾年市場上的現有解決方案一半的增長將來自我們最近引入市場的這些新興解決方案，例如診斷，例如 Estimate-STP 和 Surogation。所以我們確實認為我們會從這些較新的解決方案中產生有意義的影響，但這會隨著時間的推移而建立。

Got it. Helpful. And maybe my follow-up. Brian, you may have touched on this, but I came on a little bit late. You went through this -- the kind of the free cash flow dynamics for '22, did you talk at all in terms of expectations for '23.

知道了。有幫助。也許我的後續行動。布賴恩，你可能已經談到了這一點，但我來晚了一點。你經歷了這個——22 年的自由現金流動態，你是否談到過 23 年的預期。

No, I didn't specifically guide to '23. I talked about that if you look at our cash conversion on an adjusted EBITDA basis, we're converting about 59% of adjusted EBITDA into unlevered free cash flow in '22. There were 3 adjustments to it. And if you normalize it out, it gets to the mid-60s, which is consistent with our historical performance. That is a good benchmark as you think about modeling going forward using low to mid-60s as a cash conversion metric.

不，我沒有專門指導 '23。我談到過，如果您在調整後的 EBITDA 基礎上查看我們的現金轉換，我們將在 22 年將約 59% 的調整後 EBITDA 轉換為無槓桿自由現金流。有3個調整。如果將其標準化，它會達到 60 年代中期，這與我們的歷史表現一致。當您考慮使用 60 歲以下到中期作為現金轉換指標進行建模時，這是一個很好的基準。

Our next question comes from the line of Saket Kalia of Barclays.

我們的下一個問題來自巴克萊銀行的 Saket Kalia。

Okay. Great. Jumping between a couple of calls. So apologies if these questions were asked. But Githesh, maybe for you. It was great to see the commentary on Casualty. I was wondering if you could just remind us who is CCC usually displacing in a Casualty type of sale. And you mentioned, I think it was 50 insurance customers that are using Casualty, right? And of course, they're using the auto physical damage piece of the portfolio as well. When you cross-sell Casualty to that type of customer, what sort of a general kind of increase in run rate that you can see with that type of cross-sell? Does all that make sense?

好的。偉大的。在幾個電話之間跳轉。如果有人問這些問題，我們深表歉意。但是 Githesh，也許適合你。很高興看到關於傷亡的評論。我想知道你是否可以提醒我們 CCC 通常在傷亡類型的銷售中取代誰。你提到過，我認為有 50 個保險客戶在使用 Casualty，對吧？當然，他們也在使用產品組合中的汽車物理損壞部分。當您向此類客戶交叉銷售 Casualty 時，您可以通過這種類型的交叉銷售看到什麼樣的運行率普遍增加？這一切有意義嗎？

Yes. Sure. Saket, I'll have Brian take the second part of your question, and I'll take the first part of your question. First part of your question is that when some of our Casualty solutions or solutions that don't exist, for example, our mobile capability, and I think we had a press release on this thing with the client where our mobile capability that allows you to engage directly with the consumer and handle many of these things, those are like new-to-the-industry type capabilities. Certain capabilities, we might be -- there are multiple providers of different casualty solutions.

是的。當然。 Saket，我將讓 Brian 回答你問題的第二部分，我將回答你問題的第一部分。你的問題的第一部分是，當我們的一些傷亡解決方案或解決方案不存在時，例如，我們的移動功能，我認為我們與客戶就此問題發布了新聞稿，我們的移動功能允許您直接與消費者接觸並處理其中的許多事情，這些都是新的行業類型的能力。某些能力，我們可能 - 有不同的傷亡解決方案的多個供應商。

So we might go up against different players. And again, we don't generally go into the specifics of the who and what and where, but there are multiple providers and our real differentiation is the analytic capabilities, the integration into a single platform, those are the capabilities we bring.

所以我們可能會遇到不同的玩家。再說一次，我們通常不會詳細說明誰、什麼和在哪裡，但有多個供應商，我們真正的差異化是分析能力，集成到一個單一的平台，這些是我們帶來的能力。

In terms of dollars and impact and the addition it does, I think, Brian, if you want to pick that up and comment.

就美元和影響以及它所做的增加而言，我認為，布賴恩，如果你想拿起它並發表評論。

Yes, sure. So Saket, just from a sizing perspective, clearly, it will really be dependent on the size of the carrier and kind of what solutions they take on in Casualty. But just at a really macro level, today, our insurance APD clients are about 40% of revenue. Our Casualty clients about 10% of our total revenue. Those can be the same size in magnitude. So as you think about the opportunity that Casualty provides is really for them to move up and look like more of the size of our APD client base. And so there's 30% of revenue opportunity as those balance out over time. And that's probably the best way to think about the overall opportunity in sizing for Casualty.

是的，當然。所以 Saket，從規模的角度來看，很明顯，這實際上取決於承運人的規模以及他們在 Casualty 中採取的解決方案類型。但就真正的宏觀層面而言，今天，我們的保險 APD 客戶約佔收入的 40%。我們的傷亡客戶約占我們總收入的 10%。它們的大小可以相同。因此，當您考慮 Casualty 提供的機會時，他們確實會向上移動並看起來更像我們 APD 客戶群的規模。因此，隨著時間的推移，收入機會將達到 30%。這可能是考慮傷亡規模調整整體機會的最佳方式。

Yes. Got it. That's really helpful. Brian, maybe for you. I think you touched on this earlier with just the 80%, 20% kind of thought on growth from existing versus new. But maybe I'll just ask the question a little differently. As you look to 2023, anything to note just on net dollar retention expectations? And yes, I mean, I'll keep it open ended there.

是的。知道了。這真的很有幫助。布賴恩，也許適合你。我想你早些時候談到了這個問題，只是 80%，20% 的想法是關於現有增長與新增長的想法。但也許我只是問這個問題有點不同。展望 2023 年，僅關於淨美元保留預期有什麼需要注意的嗎？是的，我的意思是，我會在那裡保持開放。

Yes. I mean, again, I think we're seeing this progress. And I'd go back to the -- historically, it's been more like 2/3. And over time, it's going to look more like 80% of total revenue. If you look at '22 results, we are more like 25%, 75%, 75% from cross-sell, upsell. So again, it's showing that progression, and that will continue as we go into '23. So you can look at those ratios and then can look at it relative to the guide of 8% to 9% for the full year. And if you use those metrics, that will give you kind of a rough way to frame out the NDR impact into '23.

是的。我的意思是，我認為我們正在看到這一進展。而且我會回到 - 從歷史上看，它更像是 2/3。隨著時間的推移，它看起來更像是總收入的 80%。如果您查看 22 年的結果，我們更像是 25%、75%、75% 來自交叉銷售和追加銷售。因此，它再次顯示了這種進步，並且隨著我們進入 23 世紀，這種進步將繼續下去。所以你可以看看這些比率，然後可以看看它相對於全年 8% 到 9% 的指南。如果你使用這些指標，那將為你提供一種粗略的方法來將 NDR 影響納入 23 年。

Thank you. At this time, I'd like to turn the call back over to Githesh Ramamurthy for closing remarks. Sir?

謝謝。此時，我想將電話轉回給 Githesh Ramamurthy 以作結束語。先生？

Thank you all for joining us today, and I would like to thank our customers, our CCC team members and our shareholders for a great 2022. We are excited about what we have planned for 2023. The durability of our business model continues to come through, and we remain confident in our ability to deliver on our strategic and financial objectives while helping our customers and investing in future solutions.

感謝大家今天加入我們，我要感謝我們的客戶、我們的 CCC 團隊成員和我們的股東，讓我們在 2022 年取得了一個偉大的成就。我們對 2023 年的計劃感到興奮。我們的商業模式的持久性繼續得到體現，我們仍然相信我們有能力實現我們的戰略和財務目標，同時幫助我們的客戶和投資於未來的解決方案。

On behalf of all my colleagues at CCC, we look forward to talking to you again in early May when we do our first quarter, if not sooner. Thank you so much for your continued interest and your trust in CCC.

代表我在 CCC 的所有同事，我們期待在 5 月初我們做第一季度時再次與您交談，如果不是更早的話。非常感謝您一直以來對 CCC 的關注和信任。

This concludes today's conference call. Thank you for participating. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連接。