On February 26, 2025, Verisk Analytics Inc (VRSK, Financial) released its 8-K filing, showcasing a strong financial performance for the fourth quarter and full year of 2024. Verisk Analytics, a leading provider of data analytics and technology solutions for the insurance industry, reported consolidated revenues of $736 million for Q4 2024, marking an 8.6% increase on an organic constant currency basis. For the full year, revenues reached $2,882 million, up 7.5%.
Verisk Analytics Inc (VRSK, Financial) is a prominent player in the data analytics sector, primarily serving the property and casualty insurance industry in the United States. The company utilizes a vast contributory database and proprietary data assets to develop analytical tools that assist insurance providers in risk assessment, operational efficiency, and claim settlement optimization. Verisk is also expanding its reach into life insurance, marketing, and international markets.
Verisk's performance in Q4 2024 was marked by an 11.6% increase in income from continuing operations, reaching $204 million. The company's adjusted EBITDA rose by 9.9% to $398 million, reflecting strong revenue growth and cost discipline. However, challenges such as increased interest payments due to bond refinancing could impact future cash flows.
Verisk's financial achievements are significant for the business services industry, where data-driven insights are crucial for competitive advantage. The company's diluted GAAP earnings per share (EPS) from continuing operations increased by 15.2% to $1.44, while the diluted adjusted EPS rose by 15.0% to $1.61. These figures were below the analyst estimates of $1.50 EPS for GAAP EPS but surpassed the estimates for adjusted EPS, highlighting Verisk's strong operational performance.
Verisk's net cash provided by operating activities was $255 million for Q4 2024, a 1.2% increase, while free cash flow rose by 2.0% to $200 million. For the full year, operating cash flow was $1,144 million, up 7.9%, and free cash flow was $920 million, up 10.8%. These metrics are crucial for assessing the company's ability to generate cash for reinvestment and shareholder returns.
Lee Shavel, president and CEO of Verisk, stated, "Verisk delivered strong fourth quarter results capping off another year of strong top line growth and margin improvement. We enter 2025 with strong momentum and are energized by the opportunities arising from our strategic engagement with clients."
Verisk paid a cash dividend of 39 cents per share on December 31, 2024, and announced a 15% increase to 45 cents per share, payable on March 31, 2025. The company also executed a $300 million accelerated share repurchase program, reflecting its commitment to returning capital to shareholders.
Verisk's robust financial performance, driven by strong revenue growth and disciplined cost management, positions the company well for continued success in 2025. The strategic focus on innovation and client engagement is expected to drive further growth and shareholder value. However, potential challenges such as increased interest expenses and market volatility should be monitored closely.
| Metric | Q4 2024 | Q4 2023 | Change |
|---|---|---|---|
| Revenues | $736 million | $677 million | 8.6% |
| Income from Continuing Operations | $204 million | $182 million | 11.6% |
| Adjusted EBITDA | $398 million | $362 million | 9.9% |
| Diluted EPS | $1.44 | $1.25 | 15.2% |
| Free Cash Flow | $200 million | $196 million | 2.0% |
Explore the complete 8-K earnings release (here) from Verisk Analytics Inc for further details.
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