Verisk Analytics, Inc. · NASDAQ:VRSK

Verisk Analytics — Q3 2024 Earnings Presentation

25 slides from Verisk Analytics's earnings presentation, Oct 30, 2024

  1. Slide 1: 3Q 2024 Earnings Presentation

    3Q 2024 Earnings Presentation October 30, 2024 ©Verisk Analytics, Inc. All rights reserved. 1

  2. Slide 2: Forward-Looking Statements, Safe Harbor, and Non-GAAP Financial Measures

    3Q 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

  3. Slide 3: Business and Financial Highlights

    3Q 2024 Earnings Presentation Business and Financial Highlights • Organic constant currency (OCC) revenue grew 6.8%, with 6.5% growth in Underwriting and 7.4% growth in Claims. • OCC subscription revenue grew 9.1%, with broad-based growth across most of our businesses including Forms, Rules and Loss

  4. Slide 4: Financial Results

    Financial Results ©Verisk Analytics, Inc. All rights reserved. 4

  5. Slide 5: Financial Summary

    3Q 2024 Earnings Presentation Financial Summary Subscription/Long-Term Revenue Three Months ended Sep 30, 2024 2023 % change Revenue $725M $678M 7.0% 82% 80% Net income 220 187 17.4 3Q 2024 3Q 2023 Adjusted net income 239 221 7.8 Adjusted EBITDA 401 366 9.4 International Revenue Adjusted EBITDA marg

  6. Slide 6: Subscription vs. Transactional Growth – Insurance Only

    3Q 2024 Earnings Presentation Subscription vs. Transactional Growth – Insurance Only Organic Constant Currency (OCC) OCC Growth Subscription Transactional Total 3Q24 Highlights FY21 7.1% 6.0% 6.9% • Subscription revenue growth of 9.1% reflects: FY22 6.9% 4.5% 6.5% – Strong price realization and rene

  7. Slide 7: Insurance Performance - Pro Forma

    3Q 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% 6.8% OCC Adj. EBITDA growth 8.0% OCC Adj. EBITDA growth 11.5% Adj. EBITDA Margi

  8. Slide 8: Underwriting – Revenue

    3Q 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

  9. Slide 9: Claims – Revenue

    3Q 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

  10. Slide 10: Cash Flow and Capital

    Cash Flow and Capital ©Verisk Analytics, Inc. All rights reserved. 10

  11. Slide 11: Cash Flow Utilization

    3Q 2024 Earnings Presentation Cash Flow Utilization (in $ millions) 2021 2022 2023 3Q23 3Q24 Net cash provided by operating activities1,2 $1,156M $1,059M $1,061M $250M $296M Capital expenditures (268)M (275)M (230)M (54)M (56)M Free cash flow (FCF) 888M 784M 831M 196M 241M Acquisitions (net of cash

  12. Slide 12: Capital Structure

    3Q 2024 Earnings Presentation Capital Structure as of (in $ millions) Sept. 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 Baa1 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2044 204

  13. Slide 13: Capital Expenditures – Insurance Only

    3Q 2024 Earnings Presentation Capital Expenditures – Insurance Only $224M $58M $58M $56M $55M $56M $200M $55M $54M $184M 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 2021 2022 2023 ©Verisk Analytics, Inc. All rights reserved. 13

  14. Slide 14: Capital Return

    3Q 2024 Earnings Presentation Capital Return Dividend per Share Share Repurchases 8.7% 9.6% $1.56 CAGR $2,800 $1.36 5.3% $1.24 $1.16 $1.08 $1,663 2.0% 1.5% 1.3% $750 $475 $349 2020 2021 2022 2023 YTD 2024 Share repurchases ($M) Repurchases as % of Weighted Avg. Shares Out 2020 2021 2022 2023 2024 1

  15. Slide 15: 2024 Outlook Remains Unchanged

    3Q 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

  16. Slide 16: Capital Management Philosophy

    3Q 2024 Earnings Presentation Capital Management Philosophy Focused on value creation and delivering ROIC • Understand and optimize operating capital generation. • Identify internal and external investment opportunities. • Compare estimated returns on invested capital relative to risk-weighted WACC.

  17. 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

  18. Slide 18: Non-GAAP Reconciliations

    3Q 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

  19. Slide 19: Non-GAAP Reconciliations

    3Q 2024 Earnings Presentation Non-GAAP Reconciliations Segment Results and EBITDA | Current and Prior-Year Period Segment Results Summary and 3Q24 3Q23 Adjusted EBITDA Reconciliation Revenues $725.3M $677.6M Revenues from acquisitions (0.6) — Organic revenues 724.7 677.6 EBITDA 393.8 346.8 Litigatio

  20. Slide 20: Non-GAAP Reconciliations

    3Q 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.

  21. Slide 21: Non-GAAP Reconciliations

    3Q 2024 Earnings Presentation Non-GAAP Reconciliations Adjusted Net Income/EPS and Free Cash Flow | Current and Prior-Year Period Adjusted Net Income and EPS 3Q24 3Q23 Net income $220.0M $187.4M plus: Amortization of intangibles 18.3 19.6 less: Income tax effect on amortization of intangibles (4.8)

  22. Slide 22: Non-GAAP Reconciliations

    3Q 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

  23. Slide 23: Non-GAAP Reconciliations 2021 and 2022 Pro Forma Revenues and EBITDA

    3Q 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) -

  24. Slide 24: 2023 Revenue Contribution

    3Q 2024 Earnings Presentation 2023 Revenue Contribution Extreme Event Solutions 13% 1 New Growth Vectors 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

  25. Slide 25: ©Verisk ©Verisk Analytics, Analytics, Inc.

    ©Verisk ©Verisk Analytics, Analytics, Inc. Inc. All All rights rights reserved. reserved. 25

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