Slide 1: 1Q2024 Earnings Presentation
1Q2024 Earnings Presentation May 1, 2024 ©Verisk Analytics, Inc. All rights reserved. 1
Slide 2: Forward-Looking Statements, Safe Harbor, and Non-GAAP Financial Measures
1Q2024 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
1Q2024 Earnings Presentation Business and Financial Highlights • Organic constant currency (OCC) revenue grew 6.9%, with 7.8% growth in Underwriting and 4.7% growth in Claims. • OCC subscription revenue grew 7.8%, with broad-based growth across most of our businesses including forms, rules and loss
Slide 4: Financial Summary
1Q2024 Earnings Presentation Financial Summary Three Months ended Mar 31, Subscription/Long-Term Revenue 2024 20231 % change Revenue $704M $652M 8.0% Net income 219 194 12.9 80% 80% 1Q2024 1Q2023 Adjusted net income 234 196 19.1 Adjusted EBITDA 380 340 11.8 Adjusted EBITDA margin 54.0% 52.2% 180 bps
Slide 5: 2023 Revenue Contribution
1Q2024 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 6: Financial Results
Financial Results ©Verisk Analytics, Inc. All rights reserved. 6
Slide 7: Subscription vs. Transactional Growth – Insurance Only
1Q2024 Earnings Presentation Subscription vs. Transactional Growth – Insurance Only Organic Constant Currency (OCC) 1Q24 Highlights OCC Growth Subscription Transactional Total • Subscription revenue growth of 7.8% reflects strong contribution from: FY21 7.1% 6.0% 6.9% – forms, rules, and loss costs
Slide 8: Insurance Performance - Pro Forma
1Q2024 Earnings Presentation Insurance Performance1 - Pro Forma Revenue (Pro Forma) FY Revenue & Adjusted EBITDA (Pro Forma) 9.8% 9.8% 9.4% 6.0% 6.9% OCC Revenue growth 6.5% OCC Revenue growth 8.7% OCC Adj. EBITDA growth 8.0% OCC Adj. EBITDA growth 11.5% Adj. EBITDA Margin 52.0% Adj. EBITDA Margin 5
Slide 9: Underwriting – Revenue
1Q2024 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 10: Claims – Revenue
1Q2024 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 11: Cash Flow and Capital
Cash Flow and Capital ©Verisk Analytics, Inc. All rights reserved. 11
Slide 12: Cash Flow Utilization
1Q2024 Earnings Presentation Cash Flow Utilization (in $ millions) 2021 2022 2023 1Q23 1Q24 Net cash provided by operating activities1,2 $1,156M $1,059M $1,061M $365M $372M Capital expenditures (268)M (275)M (230)M (61)M (55)M Free cash flow (FCF) 888M 784M 831M 304M 317M Acquisitions (net of cash a
Slide 13: Capital Structure
1Q2024 Earnings Presentation Capital Structure as of (in $ millions) Mar. 2024 1,000 Bonds $2,850 900 Revolver Drawn - Total Debt 1 $2,850 600 500 500 Debt/EBITDA 2 1.9x 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 14: Capital Expenditures – Insurance Only
1Q2024 Earnings Presentation Capital Expenditures – Insurance Only $58M $224M $56M $200M $55M $55M $184M $54M 1Q23 2Q23 3Q23 4Q23 1Q24 2021 2022 2023 ©Verisk Analytics, Inc. All rights reserved. 14
Slide 15: Capital Return
1Q2024 Earnings Presentation Capital Return Dividend per Share Share Repurchases 8.7% 8.0% $1.36 CAGR $1.24 5.3% $1.16 $2,800 $1.08 1.5% 1.3% $0.78 $1,663 0.6% $475 $349 $200 2020 2021 2022 2023 YTD 2024 Share repurchases ($M) Repurchases as % of Weighted Avg. Shares Out 2020 2021 2022 2023 YTD 2024
Slide 16: 2024 Outlook
1Q2024 Earnings Presentation 2024 Outlook 2024 YoY Growth at Metric 2023 Guidance Midpoint Total Revenue $2.84 – $2.90B $2.68B 7.0% Adjusted EBITDA $1.54 – $1.60B $1.43B 9.5% Adjusted EBITDA margin 54.0% – 55.0% 53.5% 100 bps Diluted Adjusted EPS $6.30 – $6.60 $5.71 13.0% Tax rate 23% – 25% 25.2% (1
Slide 17: Capital Management Philosophy
1Q2024 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 18: Appendix: Supplemental Slides and/or Non-GAAP Reconciliations
Appendix: Supplemental Slides and/or Non-GAAP Reconciliations ©Verisk Analytics, Inc. All rights reserved. 18
Slide 19: Non-GAAP Reconciliations
1Q2024 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 20: Non-GAAP Reconciliations
1Q2024 Earnings Presentation Non-GAAP Reconciliations Segment Results and EBITDA | Current and Prior-Year Period Segment Results Summary and 1Q24 1Q23 Adjusted EBITDA Reconciliation Revenues $704.0M $651.6M Revenues from acquisitions and dispositions (7.8) (1.9) Organic revenues 696.2 649.7 EBITDA 3
Slide 21: Non-GAAP Reconciliations
1Q2024 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 22: Non-GAAP Reconciliations
1Q2024 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 1Q24 1Q23 Net income $614.4M $954.3M $219.4M $56.4M Income from discontinued operations, net of tax expense (154.0) (87.8) — 138.0 In
Slide 23: Non-GAAP Reconciliations: 2021 and 2022 Pro Forma Revenues and EBITDA
1Q2024 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: ©Verisk ©Verisk Analytics, Analytics, Inc.
©Verisk ©Verisk Analytics, Analytics, Inc. Inc. All All rights rights reserved. reserved. 24