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Verisk Analytics 8-K Report, Financial Results (May 1, 2024)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed May 1, 2024
Period End
May 1, 2024
Security
VRSK
In the record · 2016–202610-K1110-Q328-K115

VRSK filed 11 annual reports (10-K), 32 quarterly reports (10-Q) and 115 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · Mar ’19Mar ’19
  2. Leadership change8-K · Apr ’21Apr ’21
  3. Deal closed8-K · May ’23May ’23
  4. Leadership change8-K · Sep ’26Sep ’26

01—Abstract

Summary

Summary of the 8-K filed May 1, 2024. Cited figures are marked; the original filing is the authoritative source.

Verisk Analytics, Inc. reported first-quarter 2024 results in a press release furnished as Exhibit 99.1 to this Form 8-K.

Consolidated revenues were $704 milliona, up 8.0% (6.9% on an organic constant currency basis). Income from continuing operations was $219 million, up 12.9%, and adjusted EBITDA, a non-GAAP measure, was $380 million, up 11.8% (10.6% on an OCC basis). Diluted GAAP EPS from continuing operations was $1.52, up 19.7%, and diluted adjusted EPS was $1.63, up 26.4%.

Management cited strong underwriting growth and modest claims growth within the Insurance segment, along with a lower effective tax rate and a lower average share count. Cash generation and capital returns were also highlighted. Net cash provided by operating activities was $372 millionb, up 1.9%, and free cash flow was $317 million, up 4.2%.

The company repurchased $200 millionc of common shares in the quarter through an accelerated share repurchase program completed in April 2024, and it had $1,442 million remaining under its share repurchase authorization as of March 31, 2024. The Board approved a quarterly cash dividend of 39 cents per share payable June 28, 2024, an increase of 15% from 2023. The company reiterated its fiscal 2024 guidance, including revenue of $2,840 million to $2,900 million, adjusted EBITDA of $1,540 million to $1,600 million, an adjusted EBITDA margin of 54.0% to 55.0%, and diluted adjusted EPS of $6.30 to $6.60.

02—Key points

Key Highlights

  1. Q1 2024 revenue of $704 million, up 8.0% reported and 6.9% on an OCC basis, led by Underwriting revenue of $498 million (up 8.2%).
  2. Adjusted EBITDA of $380 million, up 11.8%, with an adjusted EBITDA margin of 54.0% versus 52.2% in the prior-year quarter.
  3. Diluted GAAP EPS from continuing operations of $1.52, up 19.7%; diluted adjusted EPS of $1.63, up 26.4%.
  4. Operating cash flow of $372 million (up 1.9%) and free cash flow of $317 million (up 4.2%).
  5. Repurchased $200 million of common shares via an accelerated share repurchase completed in April 2024 at an average price of $231.93; $1,442 million remained under the authorization at March 31, 2024.
  6. Quarterly dividend raised to 39 cents per share, an increase of 15% from 2023, payable June 28, 2024.
  7. Fiscal 2024 guidance reiterated: revenue of $2,840–$2,900 million, adjusted EBITDA of $1,540–$1,600 million, and diluted adjusted EPS of $6.30–$6.60.

03—Questions

Frequently Asked Questions

  1. What drove Verisk's revenue growth in the first quarter of 2024?

    Consolidated revenue rose 8.0% to $704 million. Underwriting revenue increased 8.2%, primarily from forms, rules and loss cost services, underwriting data solutions, and extreme event solutions, with life insurance and specialty business solutions also contributing and marketing solutions weakening. Claims revenue grew 7.6%, driven by anti-fraud and international solutions and property estimating solutions.

  2. How did profitability change compared with the prior-year quarter?

    Income from continuing operations increased 12.9% to $219 million, mainly from higher insurance operating income and a lower effective tax rate. Adjusted EBITDA rose 11.8% to $380 million, with the margin expanding to 54.0% from 52.2%, attributed to strong revenue growth and cost discipline.

  3. How is Verisk returning capital to shareholders?

    Verisk repurchased $200 million of common shares in the first quarter through an accelerated share repurchase program completed in April 2024. It paid a 39-cent dividend on March 29, 2024, and the Board approved another 39-cent dividend payable June 28, 2024, to holders of record as of June 15, 2024.

  4. What is the company's full-year 2024 outlook?

    Verisk reiterated fiscal 2024 guidance of $2,840 million to $2,900 million in revenue, $1,540 million to $1,600 million in adjusted EBITDA with a 54.0% to 55.0% adjusted EBITDA margin, and $6.30 to $6.60 in diluted adjusted EPS. It also guided to a 23.0% to 25.0% effective tax rate and $240 million to $260 million in capital expenditures.

04—Continue

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