Verisk Analytics (VRSK) Q4 2024 earnings summary

Executive summary

• Organic constant currency (OCC) revenue grew 8.6% in Q4 and 7.1% for FY24, with strong performance in both Underwriting and Claims segments and consolidated Q4 revenues of $736M, up 8.6% year-over-year.

• Adjusted EBITDA grew 13.5% in Q4 and 9.9% for FY24, with margins expanding to 54.1% in Q4 and 54.7% for the year, reflecting operational leverage and cost discipline.

• Diluted adjusted EPS increased 15% in Q4 to $1.61 and 16.3% for the year, with full-year EPS at $6.64.

• Strategic focus on enhancing go-to-market, deepening client engagement, and investing in innovation, including new product modules and advanced analytics.

• Returned $1.3B to shareholders in FY24 through dividends and share repurchases, including a $300M accelerated share repurchase in Q4.

Financial highlights

• Q4 revenue was $736M, up 8.6% year-over-year; income from continuing operations was $204M, up 11.6%.

• Adjusted net income for Q4 was $228M, up 11.6% year-over-year; diluted adjusted EPS was $1.61.

• Free cash flow for FY24 reached $920M, a company record, with Q4 free cash flow at $200M.

• OCC revenue growth for Q4: 7% in underwriting, 12.7% in claims; subscription revenues comprised 82% of total revenue, up 11%.

• Board approved a 15% dividend increase and $1B additional share repurchase authorization.

Outlook and guidance

• 2025 consolidated revenue expected at $3,030M–$3,080M, OCC revenue growth of 6–8%.

• Adjusted EBITDA guidance: $1,670M–$1,720M; margin expected at 55–55.8%.

• Adjusted EPS projected at $6.80–$7.10; tax rate to normalize at 23–25%.

• Capital expenditures planned at $245M–$265M, prioritizing organic investment.

• Guidance reflects the divestiture of AER, which contributed $17M in 2024 revenue.