Verisk Analytics (VRSK) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue grew 7% to $725M, with organic constant currency growth of 6.8% and strong performance in both underwriting and claims segments.

• Net income from continuing operations rose 17.4% to $220M, with diluted GAAP EPS up 19.4% to $1.54 and adjusted EPS up 9.9% to $1.67.

• Adjusted EBITDA increased 9.4% to $401M, with margin expanding to 55.2% for the quarter.

• Free cash flow grew 22.9% to $241M, supporting $400M in share repurchases and a 15% dividend increase.

• Strategic focus on client engagement, product innovation, and leveraging proprietary data sets continues to drive growth.

Financial highlights

• Total revenue for Q3 2024 was $725M, up 7% year-over-year; nine-month revenue reached $2.15B, up 7.1%.

• Adjusted net income rose 7.8% to $239M; diluted adjusted EPS increased 9.9% to $1.67.

• Adjusted EBITDA margin for Q3 was 55.2%, trailing twelve months margin at 54.6%.

• Free cash flow for the nine months was $720M, up 13.5% year-over-year.

• Cash dividend of $0.39 per share paid in Q3, with a 15% increase approved for the next dividend.

Outlook and guidance

• 2024 revenue guidance reaffirmed at $2.84B–$2.9B; adjusted EBITDA $1.54B–$1.6B; margin 54%–55%.

• Adjusted EPS expected in the $6.30–$6.60 range; effective tax rate projected at 23%–25%.

• Capital expenditures projected at $240–$260M for 2024.

• Margin expansion targets remain, with continued investment in growth and technology.