Verisk Reports Third-Quarter 2024 Financial Results

Financial Performance - Consolidated revenues for Q3 2024 were $725 million, up 7.0% YoY, with organic constant currency (OCC) growth of 6.8% [1] - Income from continuing operations increased by 17.4% to $220 million in Q3 2024 [1] - Adjusted EBITDA rose by 9.4% to $401 million, with OCC growth of 7.2% [1] - Diluted GAAP EPS from continuing operations grew 19.4% to $1.54, while diluted adjusted EPS increased 9.9% to $1.67 [1] - Net cash provided by operating activities increased by 18.4% to $296 million, and free cash flow grew 22.9% to $241 million [1] Revenue Breakdown - Insurance revenues grew 7.0% in Q3 2024, driven by underwriting (6.7% growth) and claims (7.9% growth) [6][7][10] - Underwriting growth was primarily due to forms, rules, loss cost services, and extreme event solutions, while claims growth was driven by anti-fraud and property estimating solutions [10] - For the nine months ended September 30, 2024, insurance revenues increased 7.1% to $2.146 billion [9] Profitability and Margins - Adjusted EBITDA margin for the trailing twelve months was 54.6%, reflecting strong margin expansion [3] - Insurance segment EBITDA margin improved to 54.3% in Q3 2024, up from 51.2% in Q3 2023 [13] - The increase in income from continuing operations was driven by strong revenue growth, cost discipline, and a lower effective tax rate [11] Shareholder Returns - The company paid a cash dividend of 39 cents per share on September 30, 2024, and announced a 15% increase in the dividend for December 31, 2024 [1][16] - $400 million of common shares were repurchased in Q3 2024, with an additional $892 million remaining under the share repurchase authorization [17] Industry and Strategic Focus - The company continues to innovate and invest at scale to enhance efficiency, effectiveness, and profitability in the insurance industry [3] - The subscription-based business model has demonstrated strong performance, with sequential improvements in underwriting and claims [3][6] Financial Guidance - The company reaffirmed its 2024 financial guidance, with revenue expected between $2.84 billion and $2.90 billion, and adjusted EBITDA between $1.54 billion and $1.60 billion [18] - Diluted adjusted EPS is projected to be in the range of $6.30 to $6.60 for 2024 [18]