01—Abstract
Summary
Summary of the 8-K filed October 30, 2024. Cited figures are marked; the original filing is the authoritative source.
Verisk Analytics, Inc. furnished a press release (Exhibit 99.1) reporting its financial results for the third quarter ended September 30, 2024.
Consolidated revenues were $725 milliona, up 7.0% (6.8% on an organic constant currency basis). Income from continuing operations was $220 million, up 17.4%, and Adjusted EBITDA was $401 million, up 9.4%. Diluted GAAP EPS from continuing operations was $1.54, up 19.4%, and diluted adjusted EPS was $1.67, up 9.9%.
Net cash provided by operating activities was $296 millionb and free cash flow was $241 million, up 22.9%. Management cited strength in its subscription-based model, with underwriting revenues up 6.7% and claims revenues up 7.9%. The company completed a $400 million accelerated share repurchase on October 25, 2024, repurchasing 1,515,616 shares at an average price of $263.92, and had $892 million remaining under its repurchase authorization as of September 30, 2024.
The Board approved a 39-cent quarterly dividend payable December 31, 2024, which the filing describes as a 15% increase from 2023. The company reaffirmed its unchanged 2024 guidance: revenue of $2,840 million to $2,900 millionc, 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
- Q3 2024 revenue of $725 million, up 7.0% reported and 6.8% on an organic constant currency basis; underwriting up 6.7% and claims up 7.9%.
- Income from continuing operations of $220 million, up 17.4%, helped by strong revenue growth, cost discipline, a lower effective tax rate, and a $19.2 million litigation reserve expense recorded in the prior-year period.
- Adjusted EBITDA of $401 million, up 9.4% (7.2% on an OCC basis), with an Adjusted EBITDA margin of 55.2% for the quarter.
- Diluted GAAP EPS of $1.54, up 19.4%; diluted adjusted EPS of $1.67, up 9.9%.
- Free cash flow of $241 million, up 22.9%, and operating cash flow of $296 million, up 18.4%.
- Completed a $400 million accelerated share repurchase on October 25, 2024; $892 million remained under the authorization as of September 30, 2024.
- Board approved a 39-cent cash dividend payable December 31, 2024, and 2024 guidance was left unchanged.
03—Questions
Frequently Asked Questions
Did Verisk change its 2024 financial guidance?
No. The filing states that the company's 2024 financial outlook remains unchanged, with revenue of $2,840 million to $2,900 million, Adjusted EBITDA of $1,540 million to $1,600 million, and diluted adjusted EPS of $6.30 to $6.60.
What drove the growth in Verisk's third-quarter results?
The filing attributes underwriting revenue growth primarily to forms, rules and loss cost services and extreme event solutions, with specialty business and life solutions also contributing. Claims revenue growth was driven mainly by anti-fraud solutions and property estimating solutions. Income growth was attributed to strong revenue growth and cost discipline.
How much capital did Verisk return to shareholders?
The company paid a 39-cent dividend on September 30, 2024, and repurchased $400 million of common shares during the third quarter. The $400 million accelerated share repurchase was completed on October 25, 2024, with 1,515,616 shares repurchased at an average price of $263.92.
What is the status of the quarterly dividend?
On October 23, 2024, the Board approved a cash dividend of 39 cents per share, payable December 31, 2024, to holders of record as of December 13, 2024. The filing states this is an increase of 15% from 2023.
04—Continue