Lucas Cerisola

Lucas Cerisola inquired about the potential impact of autonomous vehicles on claim volumes and how CCC's role, business model, or value proposition might evolve in such a future. He also asked if large insurance carrier customers are expected to in-house software development for parts of CCC's workflows.

Answer

Githesh Ramamurthy, CCC's Chairman and CEO, explained that while there's a small decline in claim frequency, the increase in severity (dollar spent) and complexity far outweighs it. He cited data from San Francisco showing slightly higher claim frequency. Regarding in-housing software, Mr. Ramamurthy noted that customers build horizontal systems, but CCC provides deep vertical expertise in claims, and current conversations indicate continued expansion with CCC's AI and solutions.

Lucas Cerisola asked about the potential impact of autonomous vehicles on claim volumes, CCC's business model, and its value proposition to customers in the future, and whether large insurance carrier customers are expected to in-house software development for parts of CCC's workflows.

Answer

CEO Githesh Ramamurthy explained that while claim frequency might slightly decline, severity (dollar spent) and complexity far outweigh this, citing data from San Francisco showing slightly higher claim frequency with more autonomous vehicles. He added that large customers build horizontal components, but CCC provides deep vertical expertise in claims, and customers are keen to expand with CCC's AI and solutions alongside their own systems.

Lucas Cerisola inquired about Formation Nation's contribution to LegalZoom's Q4 subscription and transaction revenue and its expected progression, as well as the additional investments required for scaling human-in-the-loop and last-mile services.

Answer

Noel Watson, Chief Operating Officer and Chief Financial Officer, reported that Formation Nation contributed $9.8 million to transaction revenue and $5.7 million to subscription revenue in Q4, with expectations for continued growth in 2026. Jeffrey Stibel, Chairman and Chief Executive Officer, stated that significant investment is ongoing for human-in-the-loop services, which is offset by material savings from internal AI adoption, allowing for margin expansion. Watson added that the company's guidance reflects a balance of revenue growth and profitability, with expected margin improvements from increasing efficiencies.

Lucas Cerisola asked about Formation Nation's contribution to subscription and transaction revenue in Q4, and the additional investments required to scale human-in-the-loop and last-mile services, including new product expansion.

Answer

Noel Watson, Chief Operating Officer and Chief Financial Officer, reported Formation Nation contributed $9.8 million in transaction revenue and $5.7 million in subscription revenue in Q4, with expectations for continued growth in 2026. Jeffrey Stibel, Chairman and Chief Executive Officer, stated that significant investment in human-in-the-loop services will continue, offset by material savings from AI-driven internal efficiencies. Watson added that the 2026 guidance reflects a balance of revenue growth and profitability, with expected margin improvements from ongoing efficiencies.

Lucas Cerisola inquired about the fastest-growing verticals for commerce media beyond traditional retail, and the revenue opportunity from these non-retail commerce networks. He also asked for an update on CTV momentum, specifically regarding the Netflix integration, including brand adoption, typical spend, and comparison to other CTV platforms.

Answer

CEO Scott Howe identified travel, food delivery (e.g., Uber, DoorDash), and finance as rapidly growing commerce media verticals, noting they expose LiveRamp to new SMB clients, which the new pricing model and self-serve capabilities are designed to capture. CFO Lauren Dillard highlighted CTV as a strong growth component for both the data marketplace and activation network, with Netflix and other integrations scaling nicely. She added that 70% of the 50 largest integrations are CTV-related, and CTV is a catalyst for Clean Room adoption, especially for measurement.

Lucas Cerisola asked about the most significant growth verticals beyond traditional retail in commerce media, such as with new partners like Uber and PayPal, and the revenue opportunity from these non-retail networks. He also asked for more details on CTV momentum, including the Netflix integration, brand leveraging, typical spend, and comparison to other CTV platforms.

Answer

CEO Scott Howe identified travel (airlines), food delivery (Uber, DoorDash), and finance as fast-growing commerce media areas, exposing LiveRamp to SMB clients, which the new pricing model and self-serve capabilities are designed to serve. CFO Lauren Dillard added that CTV is a strong, growing component of both Data Marketplace and the activation network, with Netflix and other integrations scaling nicely. She noted that CTV data purchases outpace overall Data Marketplace growth, and 70% of LiveRamp's 50 largest integrations are CTV-related, also serving as a catalyst for Clean Room adoption.

Lucas Cerisola inquired about hiring expectations for the year ahead, including projected headcount growth and specific investment areas within and outside Intelligent Agreement Management (IAM).

Answer

Allan Thygesen (CEO, DocuSign) projected modest overall headcount growth, prioritizing the maintenance of efficiency gains while disproportionately investing in product and security. Blake Grayson (CFO, DocuSign) added that they've added just over 200 net headcount in the past year, primarily in lower-cost locations, reflecting a methodical approach.