Slide 1: 2Q 2024 Earnings Presentation
2Q 2024 Earnings Presentation July 31, 2024 ©Verisk Analytics, Inc. All rights reserved. 1
Slide 2: Forward-Looking Statements, Safe Harbor, and Non-GAAP Financial Measures
2Q 2024 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 e
Slide 3: Business and Financial Highlights
2Q 2024 Earnings Presentation Business and Financial Highlights • Organic constant currency (OCC) revenue grew 6.0%, with 6.0% growth in Underwriting and 5.8% growth in Claims. • OCC subscription revenue grew 8.3%, with broad-based growth across most of our businesses including forms, rules and loss
Slide 4: Financial Results
Financial Results ©Verisk Analytics, Inc. All rights reserved. 4
Slide 5: Financial Summary
2Q 2024 Earnings Presentation Financial Summary Subscription/Long-Term Revenue Three Months ended Jun 30, 2024 2023 % change Revenue $717M $675M 6.2% 81% 79% Net income 308 204 50.7 2Q 2024 2Q 2023 Adjusted net income 249 220 13.2 Adjusted EBITDA 397 365 8.8 International Revenue Adjusted EBITDA mar
Slide 6: Subscription vs. Transactional Growth – Insurance Only
2Q 2024 Earnings Presentation Subscription vs. Transactional Growth – Insurance Only Organic Constant Currency (OCC) 2Q24 Highlights OCC Growth Subscription Transactional Total FY21 7.1% 6.0% 6.9% • Subscription revenue growth of 8.3% reflects strong contribution from: FY22 6.9% 4.5% 6.5% – Forms, r
Slide 7: Insurance Performance - Pro Forma
2Q 2024 Earnings Presentation Insurance Performance1 - Pro Forma $ in million USD Revenue (Pro Forma) FY Revenue & Adjusted EBITDA (Pro Forma) 9.8% 9.8% 9.4% OCC Revenue growth 6.5% OCC Revenue growth 8.7% 6.0% 6.9% 6.0% OCC Adj. EBITDA growth 8.0% OCC Adj. EBITDA growth 11.5% Adj. EBITDA Margin 52.
Slide 8: Underwriting – Revenue
2Q 2024 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 resolut
Slide 9: Claims – Revenue
2Q 2024 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 indu
Slide 10: Cash Flow and Capital
Cash Flow and Capital ©Verisk Analytics, Inc. All rights reserved. 10
Slide 11: Cash Flow Utilization
2Q 2024 Earnings Presentation Cash Flow Utilization (in $ millions) 2021 2022 2023 2Q23 2Q24 Net cash provided by operating activities1,2 $1,156M $1,059M $1,061M $193M $212M Capital expenditures (268)M (275)M (230)M (58)M (58)M Free cash flow (FCF) 888M 784M 831M 135M 154M Acquisitions (net of cash
Slide 12: Capital Structure
2Q 2024 Earnings Presentation Capital Structure as of (in $ millions) June 30, 2024 $1,000 Bonds $3,050M Revolver Drawn - Total Debt1 $3,050M $600 $600 $500 $500 $500 Debt/EBITDA2 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
Slide 13: Capital Expenditures – Insurance Only
2Q 2024 Earnings Presentation Capital Expenditures – Insurance Only $224M $58M $58M $56M $55M $200M $55M $54M $184M 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 2021 2022 2023 ©Verisk Analytics, Inc. All rights reserved. 13
Slide 14: Capital Return
2Q 2024 Earnings Presentation Capital Return Dividend per Share Share Repurchases 8.7% 8.0% CAGR $1.36 $1.24 $1.16 $1.17 5.3% $1.08 $2,800 $1.00 1.3% 1.5% 1.1% $1,663 $475 $349 $350 2020 2021 2022 2023 YTD 2024 2019 2020 2021 2022 2023 YTD 2024 1 Share repurchases ($M) Repurchases as % of Weighted A
Slide 15: 2024 Outlook Remains Unchanged
2Q 2024 Earnings Presentation 2024 Outlook Remains Unchanged 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 amortiza
Slide 16: Capital Management Philosophy
2Q 2024 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 17: Appendix: Supplemental Slides and/or Non-GAAP Reconciliations
Appendix: Supplemental Slides and/or Non-GAAP Reconciliations ©Verisk Analytics, Inc. All rights reserved. 17
Slide 18: Non-GAAP Reconciliations
2Q 2024 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 19: Non-GAAP Reconciliations: Segment Results and EBITDA
2Q 2024 Earnings Presentation Non-GAAP Reconciliations Segment Results and EBITDA | Current and Prior-Year Period Segment Results Summary and 2Q24 2Q23 Adjusted EBITDA Reconciliation Revenues $716.8M $675.0M Revenues from acquisitions and dispositions (4.4) (2.8) Organic revenues 712.4 672.2 EBITDA
Slide 20: Non-GAAP Reconciliations: Segment Results and EBITDA
2Q 2024 Earnings Presentation Non-GAAP Reconciliations Segment Results and EBITDA 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 dispositions (42.9) — — (10.5) (22.
Slide 21: Non-GAAP Reconciliations: Adjusted Net Income/EPS and Free Cash Flow
2Q 2024 Earnings Presentation Non-GAAP Reconciliations Adjusted Net Income/EPS and Free Cash Flow | Current and Prior-Year Period Adjusted Net Income and EPS 2Q24 2Q23 Net income $307.8M $196.8M Income from discontinued operations, net of tax expense — 7.5 Income from continuing operations 307.8M 20
Slide 22: Non-GAAP Reconciliations: Adjusted Net Income/EPS and Free Cash Flow
2Q 2024 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 Net income $614.4M $954.3M Income from discontinued operations, net of tax expense (154.0) (87.8) Income from continuing operations
Slide 23: 2021 and 2022 Pro Forma Revenues and EBITDA
2Q 2024 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 24: 2023 Revenue Contribution
2Q 2024 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 Internati
Slide 25: ©Verisk ©Verisk Analytics, Analytics, Inc.
©Verisk ©Verisk Analytics, Analytics, Inc. Inc. All All rights rights reserved. reserved. 25