CCC Intelligent Solutions Holdings Inc at Goldman Sachs Communacopia + Technology Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Gabriela Borges - Goldman Sachs Group, Inc., Research Division - Analyst : So Githesh, one of the consistent learnings over the past year has been in order to have an AI strategy, you need to have a data strategy. And a more proprietary data set, the more interesting things you can do with your AI road map. So let's start with the data set. What do you view as the most differentiated about the data set that CCC has?

Question: Gabriela Borges - Goldman Sachs Group, Inc., Research Division - Analyst : It leads to the question on what comes next. And so I think AI has been, you've mentioned, very consistent part of your strategy. What are the 1 or 2 AI priorities on your road map for the next 10 years? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 07, 2023 / 5:50PM, CCCS.OQ - CCC Intelligent Solutions Holdings Inc at Goldman Sachs Communacopia + Technology Conference

Question: Gabriela Borges - Goldman Sachs Group, Inc., Research Division - Analyst : Let's stay on the topic of straight-through processing. So at CCC Next, there was a really interesting conversation around intelligence straight-through processing, the platform for insurers. So walk us through. We can see a little bit of the Estimate-STP value proposition today. There is a whole ecosystem around this and a longer term road map to build it into a broader straight-through processing strategy. How do we get from (inaudible)?

Question: Gabriela Borges - Goldman Sachs Group, Inc., Research Division - Analyst : One of the dichotomies that I often find listening to CCC talk about the technology platform. Is there's so much sophistication to it? And when you think about the level of technology adoption in the auto insurance industry and it feels kind of painful from the outside in. And so how do you reconcile those 2 things? You have incredibly sophisticated technology and you have a customer base that historically hasn't been the most willing to lean into those types of technology catalysts.

Question: Gabriela Borges - Goldman Sachs Group, Inc., Research Division - Analyst : I want to ask a follow-up here, which is, is CCC and yourself and your sales force at or in a position where you can have that AI strategic conversation at the highest level of the organization?

Question: Gabriela Borges - Goldman Sachs Group, Inc., Research Division - Analyst : Are you at the point where you can come away from that and call the account executive on that account and say, because of this conversation we now have a plan to be able to solve products, ABC over the next 12 months, which will increase the account value of CCC at this account by 1.5 or 1.2?

Question: Gabriela Borges - Goldman Sachs Group, Inc., Research Division - Analyst : Very fair. Maybe I frame it as does the road map conversation over the next 3 years lead you and Brian to say there is a real potential for acceleration here to our revenue?

Question: Gabriela Borges - Goldman Sachs Group, Inc., Research Division - Analyst : It's interesting hearing you talk through the product set, because there are so many modules and solutions that you offer that are broad to customers. And it leads to the question, both from the investor perspective looking in and for your sales training and enablement, you mentioned earlier how the amount of alignment that you have between your CCC folks and the customer is incredibly close. How do you think about the 1 or 2 products that can move the needle? Or perhaps that's the wrong question to ask. And how do you think holistically about executing on a cross-sell?

Question: Gabriela Borges - Goldman Sachs Group, Inc., Research Division - Analyst : Absolutely. Going to pause and go to the audience. Questions from the audience. Brian, one of my favorite things to ask you about is the potential for margin model to continue to go up and to the right. And we've talked about and we see this in information services companies where comeback full circle to the proprietary data set that you have. Where in many ways, you have the best of a business model of an info services company, coupled with the best of a business model as a software company. And so how do you think about, I guess, pricing to begin with and extracting and bundling of solutions in a way that is a win for the customer and a win for CCC? And two, where do you think your medium-term EBITDA target of mid-40s -- talked about how there's actually not a feeling on that number? So how does that evolve over the long term? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 07, 2023 / 5:50PM, CCCS.OQ - CCC Intelligent Solutions Holdings Inc at Goldman Sachs Communacopia + Technology Conference

Question: Gabriela Borges - Goldman Sachs Group, Inc., Research Division - Analyst : What determines whether a product falls into the 3:1 category versus the 7:1 category?

Question: Gabriela Borges - Goldman Sachs Group, Inc., Research Division - Analyst : When it comes to the growth algorithm, I think you've been pretty consistent in talking about a large percentage of growth coming from cross-sell, because of the customer wins that you already have and your flagship positions at 38 of the top 40. For the first time in the last 3 or 4 quarters, you've been breaking out the emerging product contribution. Should we be reading into that the percentage of the portfolio is shifting more towards products that are emerging that can potentially drive that contribution from emerging products bigger over time?

Question: Gabriela Borges - Goldman Sachs Group, Inc., Research Division - Analyst : Is the 1 to 2 points going into 3 to 4 points additive to the growth algorithm or substitutive?

Question: Gabriela Borges - Goldman Sachs Group, Inc., Research Division - Analyst : What is the limiting factor to taking you a data set? And making it useful to international customers and leaning into new (inaudible)?

Question: Gabriela Borges - Goldman Sachs Group, Inc., Research Division - Analyst : Absolutely. Good stuff. Let's leave it there. Thank you both for your time.