Slide 1: 4Q2023 Earnings Presentation
4Q2023 Earnings Presentation February 21, 2024 ©Verisk Analytics, Inc. All rights reserved. 1
Slide 2: Forward-Looking Statements, Safe Harbor, and Non-GAAP Financial Measures
4Q2023 Earnings Presentation Forward-Looking Statements, Safe Harbor, and Non-GAAP Financial Measures Forward-Looking Statements This release contains forward-looking statements about Verisk’s future performance, including those related to our financial guidance. These statements relate to future ev
Slide 3: Business and Financial Highlights – 4Q23
4Q2023 Earnings Presentation Business and Financial Highlights – 4Q23 • Organic constant currency (OCC) revenue grew 6.0%, with 7.3% growth in Underwriting and 2.8% growth in Claims. Normalizing for storm revenue in 4Q22, total OCC revenue grew 6.9% in 4Q23. • OCC subscription revenue grew 7.3%, wit
Slide 4: Business and Financial Highlights – FY23
4Q2023 Earnings Presentation Business and Financial Highlights – FY23 • Organic constant currency (OCC) revenue grew 8.7%, with 8.5% growth in Underwriting and 9.3% growth in Claims. • OCC subscription revenue grew 8.6%, with broad-based growth across most of our businesses. • OCC non-subscription r
Slide 5: Financial Summary – 4Q23
4Q2023 Earnings Presentation Financial Summary – 4Q23 Three Months ended Dec 311 Subscription/Long-Term Revenue 2023 2022 % change Revenue $677.2M $630.4M 7.4% Net income 173.8 61.2 184.0 80% 80% 4Q2023 4Q2022 Adjusted net income 203.9 224.8 (9.3) Adjusted EBITDA 362.0 332.0 9.0 Adjusted EBITDA marg
Slide 6: Financial Results
Financial Results ©Verisk Analytics, Inc. All rights reserved. 6
Slide 7: 2023 Revenue Contribution
4Q2023 Earnings Presentation 2023 Revenue Contribution Extreme Event Solutions 13% New Growth Vectors 1 9% Specialty Business Solutions 3% Property Estimating Solutions Underwriting Data Analytics 15% Solutions 14% $2.7B revenue Anti-Fraud Underwriting 9% Claims 71% Casualty 3% 29% Claims Internatio
Slide 8: Subscription vs. Non-subscription Growth – Insurance Only
4Q2023 Earnings Presentation Subscription vs. Non-subscription Growth – Insurance Only Organic Constant Currency (OCC) Non- 4Q23 Highlights OCC Growth Subscription Total subscription • Subscription revenue growth of 7.3% reflects strong FY21 7.1% 6.0% 6.9% contribution from: – forms, rules, and loss
Slide 9: Insurance Performance - Pro Forma
4Q2023 Earnings Presentation Insurance Performance1 - Pro Forma Revenue (Pro Forma) FY Revenue & Adjusted EBITDA (Pro Forma) 9.8% 9.8% 9.4% 8.1% OCC Revenue growth 6.5% OCC Revenue growth 8.7% 6.1% 6.4% 6.0% OCC Adj. EBITDA growth 8.0% OCC Adj. EBITDA growth 11.5% 5.3% Adj. EBITDA Margin 52.0% Adj.
Slide 10: Underwriting – Revenue
4Q2023 Earnings Presentation Underwriting – Revenue Industry-leading data analytics and insights Underwriting Solutions Extreme Event Solutions Life Specialty Business Marketing International (incl. Forms, Rules, and Loss Costs Catastrophe and extreme Power for simplified Solutions Identity resoluti
Slide 11: Claims – Revenue
4Q2023 Earnings Presentation Claims – Revenue Industry-leading data analytics and insights Property Estimating Solutions Anti-Fraud Solutions Casualty Solutions International Loss quantification and repair cost Broad claims compliance solutions and A growing, global array of data and Unmatched indus
Slide 12: Cash Flow and Capital
Cash Flow and Capital ©Verisk Analytics, Inc. All rights reserved. 12
Slide 13: Cash Flow Utilization
4Q2023 Earnings Presentation Cash Flow Utilization (in $ millions) 2021 2022 2023 4Q22 4Q23 Net cash provided by operating activities1,2 $1,156M $1,059M $1,061M $249M $252M Capital expenditures (268)M (275)M (230)M (80)M (56)M Free cash flow (FCF) 888M 784M 831M 169M 196M Acquisitions (net of cash a
Slide 14: Capital Structure
4Q2023 Earnings Presentation Capital Structure as of (in $ millions) Dec. 2023 1,000 Bonds $2,850 900 Revolver Drawn - Total Debt 1 $2,850 600 500 500 Debt/EBITDA 2 2.0x 350 Investment Grade Ratings S&P BBB Moody’s Baa2 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2044 2045 2046 2049 2050
Slide 15: Capital Expenditures – Insurance Only
4Q2023 Earnings Presentation Capital Expenditures – Insurance Only $224M $57M $58M $56M $200M $55M $54M $52M $184M $48M $44M 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 2021 2022 2023 ©Verisk Analytics, Inc. All rights reserved. 15
Slide 16: Capital Return
4Q2023 Earnings Presentation Capital Return Dividend per Share Share Repurchases $3,500 8.7% 9.0% 8.0% $3,000 CAGR $1.36 7.0% $2,800 $1.24 $2,500 5.3% $1.16 5.0% $1.08 $1.00 $2,000 3.0% 1.3% 1.3% 1.5% $1,500 $1,663 1.0% $1,000 -1.0% $0.39 $500 -3.0% $475 $300 $349 $- -5.0% 1 2019 2020 2021 2022 2023
Slide 17: 2024 Outlook
4Q2023 Earnings Presentation 2024 Outlook 2024 Metric Guidance Total Revenue $2.84 – $2.90B Adjusted EBITDA $1.54 – $1.60B Adjusted EBITDA margin 54.0% – 55.0% Diluted Adjusted EPS $6.30 – $6.60 Tax rate 23% – 25% Capex $240 – $260M Fixed asset D&A $210 – $240M Intangible amortization $75M Q1 Divide
Slide 18: Capital Management Philosophy
4Q2023 Earnings Presentation Capital Management Philosophy Focused on value creation and improving ROIC • Understand and optimize operating capital generation. • Identify internal and external investment opportunities. • Compare estimated returns on invested capital relative to risk-weighted WACC. •
Slide 19: Appendix: Supplemental Slides and/or Non-GAAP Reconciliations
Appendix: Supplemental Slides and/or Non-GAAP Reconciliations ©Verisk Analytics, Inc. All rights reserved. 19
Slide 20: Non-GAAP Reconciliations
4Q2023 Earnings Presentation Non-GAAP Reconciliations Specified Metrics We have provided certain non-GAAP financial information as supplemental information regarding our operating results. These measures are not in accordance with, or an alternative for, U.S. GAAP and may be different from non-GAAP
Slide 21: Non-GAAP Reconciliations
4Q2023 Earnings Presentation Non-GAAP Reconciliations Segment Results and EBITDA | Current and Prior-Year Period Segment Results Summary and 4Q23 4Q22 Adjusted EBITDA Reconciliation Insurance E&SM FS Insurance E&SM FS Revenues $677.2M — — $630.4M —M —M Revenues from acquisitions and dispositions (6.
Slide 22: Non-GAAP Reconciliations – 2021 and 2022 Pro Forma Revenues and EBITDA
4Q2023 Earnings Presentation Non-GAAP Reconciliations 2021 and 2022 Pro Forma Revenues and EBITDA 2023 2022 2021 1Q 1Q 2Q 3Q 4Q FY 1Q 2Q 3Q 4Q FY Revenues (Insurance) $652M $586M $610M $610M $630M $2,437M $536M $550M $558M $563M $2,207M Revenues from acquisitions 23 (20) (28) (28) (28) (105) (1) - (
Slide 23: Non-GAAP Reconciliations
4Q2023 Earnings Presentation Non-GAAP Reconciliations Adjusted Net Income/EPS and Free Cash Flow | Current and Prior-Year Period Adjusted Net Income and EPS FY23 FY22 4Q23 4Q22 Net income $614.4M $954.3M $173.8M $61.2M Income from discontinued operations, net of tax expense (154.0) (87.8) (8.5) (154
Slide 24: Non-GAAP Reconciliations
4Q2023 Earnings Presentation Non-GAAP Reconciliations Segment Results and EBITDA | Current and Prior-Year Period Segment Results Summary and FY23 FY22 Adjusted EBITDA Reconciliation Insurance E&SM FS Insurance E&SM FS Revenues $2,681.4M — — $2,437.0M $22.4M $37.6M Revenues from acquisitions and disp
Slide 25: ©Verisk ©Verisk Analytics, Analytics, Inc.
©Verisk ©Verisk Analytics, Analytics, Inc. Inc. All All rights rights reserved. reserved. 25