01—Abstract
Summary
Summary of the 10-Q filed May 1, 2024. Cited figures are marked; the original filing is the authoritative source.
Verisk Analytics, Inc. reported first-quarter 2024 revenues of $704.0 milliona, up from $651.6 million in the prior-year period, an increase of $52.4 million or 8.0%.
Operating income rose to $307.4 millionb from $294.1 million, and net income attributable to Verisk was $219.6 million, compared with $56.3 million in the first quarter of 2023. That prior-year figure included a $138.0 million loss from discontinued operations tied to the February 2023 sale of the Energy business. Diluted EPS was $1.52, versus $0.37 a year earlier, and EBITDA was $380.0 million with a 54.0% margin.
Underwriting revenue grew 8.2% to $498.4 millionc and claims revenue grew 7.6% to $205.6 million. Cash generation was steady, with operating cash flow of $372.2 million, up 1.9%, though the company paid a $37.0 million settlement with the Department of Justice related to a former subsidiary's government contracts. Capital returns continued: the company repurchased $200.0 million of stock including $30.0 million not yet settled, paid $55.8 million in dividends, and declared $0.39 per share.
Cash and cash equivalents totaled $352.4 milliond at quarter end, and $1,441.5 million remained available under the repurchase program. Total debt, excluding finance leases, was $2,850.0 million, and the company was in compliance with its covenants. The filing discloses several pending lawsuits, including telematics-related class actions against General Motors, OnStar, LexisNexis and Verisk, and a Daniel's Law suit.
For each, the company states that it is not possible to reasonably estimate the liability because the cases are at early stages. Total stockholders' equity fell to $287.8 million from $322.2 million, largely reflecting share repurchases and dividends.
02—Key points
Key Highlights
- Revenue rose 8.0% to $704.0 million, with underwriting up 8.2% and claims up 7.6%.
- Operating income increased to $307.4 million from $294.1 million.
- Net income attributable to Verisk was $219.6 million, versus $56.3 million a year earlier, when results included a $138.0 million loss from discontinued operations.
- Diluted EPS was $1.52, compared with $0.37 in the prior-year quarter.
- EBITDA reached $380.0 million, a 54.0% margin, up 7.0% year over year.
- Operating cash flow was $372.2 million, including a $37.0 million DOJ settlement payment.
- The company repurchased $200.0 million of stock and paid $55.8 million in dividends, with $1,441.5 million left under the repurchase program.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2024, Verisk Analytics kept $0.31.
- Revenue$704.0M100.0%
- Cost of revenue−$227.8M32.4%
- Gross profit$476.2M67.6%
- Operating costs−$168.8M24.0%
- Operating income$307.4M43.7%
- Interest, other & tax−$87.8M12.5%
- Net income$219.6M31.2%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2024filed May 1, 2024Financial Statements
Q1 FY2024 against Q1 FY2023
| Line item | Q1 FY2024Q1 FY2023 | Change |
|---|---|---|
| Revenue | $704.00M$651.60M | +8.0% |
| Cost of Revenue | $227.80M$216.20M | +5.4% |
| Gross Profit | $476.20M$435.40M | +9.4% |
| SG&A Expenses | $92.90M$79.00M | +17.6% |
| Operating Expenses | $396.60M$357.50M | +10.9% |
| Operating Income | $307.40M$294.10M | +4.5% |
| Interest Expense | $28.90M$26.40M | +9.5% |
| Net Income | $219.60M$56.30M | +290.1% |
| EPS (Basic) | $1.53$0.37 | +313.5% |
| EPS (Diluted) | $1.52$0.37 | +310.8% |
| Shares Outstanding (Basic) | 143.30M152.03M | −5.7% |
| Shares Outstanding (Diluted) | 143.97M152.71M | −5.7% |
05—Questions
Frequently Asked Questions
How did Verisk's revenue and profitability change in the first quarter of 2024?
Revenue increased to $704.0 million from $651.6 million, up 8.0%. Operating income rose to $307.4 million from $294.1 million, and income from continuing operations increased to $219.4 million from $194.4 million. The prior-year period also included a $138.0 million loss from discontinued operations related to the Energy business sale.
What drove the revenue growth?
Underwriting revenue increased $37.9 million, or 8.2%, to $498.4 million, driven by annual price increases, model and content enhancements, and expanded solutions. Claims revenue increased $14.5 million, or 7.6%, to $205.6 million, primarily from anti-fraud solutions and international revenues. Recent acquisitions contributed $5.8 million.
How much capital did Verisk return to shareholders?
Verisk repurchased $200.0 million of common stock, including $30.0 million of treasury stock not yet settled, and paid $55.8 million in dividends. The company declared a quarterly dividend of $0.39 per share, and $1,441.5 million remained available under its repurchase program as of March 31, 2024.
What are the main legal risks disclosed?
The filing describes several lawsuits, including putative class actions related to telematics data collection involving General Motors, OnStar, LexisNexis and Verisk, and a Daniel's Law claim. The company states it is not possible to reasonably estimate the liability for these matters because they are at early stages. The company also settled a DOJ civil inquiry tied to a former subsidiary for $37.0 million.
How strong is the balance sheet?
Cash and cash equivalents were $352.4 million, and total debt excluding finance leases was $2,850.0 million at March 31, 2024. The company was in compliance with its covenants, and $995.4 million was available under its revolving credit facility. Total stockholders' equity was $287.8 million, down from $322.2 million at year-end 2023.
06—Continue