Tyler Radke: Yes, thank you and good evening. I wanted to ask you about the parts side of the business. You talked about how it’s growing significantly faster than the overall CCC business. Just help us understand kind of the pathway to get to the $100 million plus potential you referenced? Is that mostly existing products today? Or talk about kind of some new opportunities you’re seeing. Obviously, a lot of talk around inflation in supply chains being potential catalysts, but maybe just expand a little bit more on how you see that opportunity playing out.
Githesh Ramamurthy: Sure Tyler. I’ll give you a quick update, just from a macro standpoint, right? When you look at the number of dollars of parts that are ordered by the collision repair industry in the US, it’s somewhere between $18 billion and $19 billion — sorry, $18 billion and $19 billion. That’s parts that are ordered. And the other thing that you probably heard from an earlier stat is that the number of parts has gone from about 10.1 to about 13.1 over the last four years. So, the number of parts are increasing. Supply chain complexity is increasing, especially as you add EVs and other things. And so therefore, if you really want to manage cycle-time, understanding availability of parts in that particular geography, in a hyper local geography, let’s say, I am in Macon, Georgia, and I need to know the parts availability in that area for that vehicle on that particular day, so I can make the right decisions about which parts to use, those decisions become increasingly complex and have an impact on cycle-time as everyone is trying to reduce it.
So, we think we are roughly at about 15% adoption, 15% of GMV going through the CCC parts platform. We have a pretty broad network of parts providers, OEM providers. These are the car companies, aftermarket providers, including one we just extended a contract with. And what we’re seeing with that is that with specific OEMs are running specific programs on the CCC platform. At the same time, our insurance customers are also very keen on having transparency into parts and the deployment of parts. So, it’s really a combination of that transparency between parts providers, car companies, repairers and insurers providing one common platform across the board. So, it does not involve us radically rebuilding or rethinking our parts solution but continuing to do extensions.
And hence, what we did a couple of — last year, if you remember, when we did the earnings call a few quarters ago, we kept saying we’ve added 20% development capacity. That development capacity was deployed in a number of areas, including expanding and enhancing our parts operation. So, it does not require a radical change in our approach and strategy, but more will come from increasing adoption from our customers.
Brian Herb: And Tyler, I’d just add to the point. It’s Brian. Just on your market sizing math. We talked about the parts being about 5% of revenues, so say, $40 million, and as Githesh said, about 15% running through our platform, so if you just extrapolate those two out, that’s where you get the sizing of the opportunity.
Tyler Radke: That’s helpful framing. For a follow-up question, I just wanted to ask you about some of the highlights and momentum you’ve seen, just customer conversations post your user conference. You talked a lot about kind of the future of the industry, particularly as it relates to generative AI. How is your conversations with customers tracking? Anything you observed in terms of pipeline growth or deal activity post that event? Thank you.
