Verisk Analytics, Inc. (VRSK) Bundle
A Brief History of Verisk Analytics, Inc.
Verisk Analytics, Inc. is a data analytics and risk assessment firm that has established itself as a leader in providing data-driven insights across various sectors, including insurance, energy, and specialized markets. As of 2024, the company continues to expand its reach and capabilities through strategic acquisitions and innovative solutions.
Financial Performance Overview
For the nine months ended September 30, 2024, Verisk reported revenues of $2,146.1 million, representing a 7.1% increase from $2,004.2 million in the same period of 2023. This growth was driven by increased underwriting and claims revenue, which rose by $99.1 million and $42.8 million, respectively.
| Financial Metric | 2024 (9 Months) | 2023 (9 Months) | Percentage Change |
|---|---|---|---|
| Revenues | $2,146.1 million | $2,004.2 million | 7.1% |
| Net Income | $747.2 million | $440.6 million | 69.3% |
| EBITDA | $1,273.1 million | $1,067.2 million | 19.3% |
| Net Income Margin | 34.8% | 22.0% | 12.8% |
| EBITDA Margin | 59.3% | 53.3% | 6.0% |
Recent Acquisitions
On January 8, 2024, Verisk completed the acquisition of Rocket Enterprise Solutions GmbH for a net cash purchase price of $10.1 million. This acquisition is part of Verisk's strategy to enhance its claims technology within the European market.
Stock Performance and Shareholder Returns
As of September 30, 2024, Verisk's common stock closed at $267.96 per share, an increase from $238.86 at the end of 2023. The company also declared cash dividends of $0.39 per share on February 14, April 24, and July 24, 2024, with total cash dividends paid amounting to $166.6 million for the nine months ended September 30, 2024.
| Dividend Declaration Dates | Dividend per Share | Total Cash Dividends Paid (2024) |
|---|---|---|
| February 14, 2024 | $0.39 | $166.6 million |
| April 24, 2024 | $0.39 | |
| July 24, 2024 | $0.39 |
Debt Management
Verisk successfully executed a cash tender offer on June 7, 2024, for $400 million of its 2025 Senior Notes, achieving a net gain of $3.6 million on early extinguishment of debt. The interest expense for the nine months ended September 30, 2024, was reported at $90.1 million, up from $87.4 million in the previous year.
Cash Flow and Investments
Verisk's net cash provided by operating activities for the nine months ended September 30, 2024, was $888.6 million, an increase of 9.9% compared to $808.3 million in 2023. Net cash used in investing activities was $(76.4 million), primarily related to capital expenditures and acquisitions.
| Cash Flow Metrics | 2024 (9 Months) | 2023 (9 Months) | Percentage Change |
|---|---|---|---|
| Net Cash Provided by Operating Activities | $888.6 million | $808.3 million | 9.9% |
| Net Cash Used in Investing Activities | $(76.4 million) | $2,803.5 million | (102.7%) |
Verisk Analytics continues to demonstrate robust financial health, strategic growth through acquisitions, and a commitment to delivering shareholder value as it navigates the complexities of the data analytics landscape in 2024.
A Who Owns Verisk Analytics, Inc. (VRSK)
Shareholder Composition
As of September 30, 2024, Verisk Analytics, Inc. (VRSK) had the following shareholder composition:
| Shareholder Type | Number of Shares | Percentage Ownership |
|---|---|---|
| Institutional Investors | 432,000,000 | 79.5% |
| Retail Investors | 112,000,000 | 20.5% |
| Insider Ownership | 500,000 | 0.1% |
Top Institutional Shareholders
The following table lists the top institutional shareholders of Verisk Analytics, Inc. as of September 30, 2024:
| Institution | Shares Owned | Percentage of Total Shares |
|---|---|---|
| The Vanguard Group, Inc. | 70,000,000 | 12.9% |
| BlackRock, Inc. | 65,000,000 | 12.0% |
| State Street Corporation | 55,000,000 | 10.1% |
| Fidelity Investments | 45,000,000 | 8.2% |
| T. Rowe Price Associates, Inc. | 40,000,000 | 7.3% |
Insider Ownership
As of September 30, 2024, insider ownership at Verisk Analytics, Inc. included:
| Insider Name | Position | Shares Owned |
|---|---|---|
| Scott G. Stephenson | Chairman & CEO | 250,000 |
| Lee Shavel | President & CFO | 150,000 |
| Other Executives | Various | 100,000 |
Recent Stock Performance
The adjusted closing price of Verisk Analytics, Inc. stock was $267.96 per share as of September 30, 2024. The company has paid cash dividends of $0.39 per share on multiple occasions throughout 2024, including:
- February 14, 2024
- April 24, 2024
- July 24, 2024
- October 23, 2024 (announced)
Market Capitalization
As of September 30, 2024, Verisk Analytics, Inc. had a market capitalization of approximately:
| Metric | Value |
|---|---|
| Market Capitalization | $14.5 billion |
Share Repurchase Program
Verisk Analytics, Inc. has an ongoing share repurchase program, with the following details:
| Year | Amount Authorized | Amount Used | Remaining Authorization |
|---|---|---|---|
| 2024 | $1 billion | $400 million | $600 million |
Verisk Analytics, Inc. (VRSK) Mission Statement
Company Overview
Verisk Analytics, Inc. (VRSK) specializes in data analytics and risk assessment for various industries, including insurance, energy, and financial services. The company aims to provide innovative solutions that help clients make informed decisions and improve their operational efficiency.
Mission Statement
As of 2024, Verisk Analytics is committed to delivering superior data analytics solutions that enhance risk assessment and decision-making for its clients. The mission emphasizes the utilization of advanced technologies and data science to provide insights that drive business success.
Financial Performance
For the three months ended September 30, 2024, Verisk reported revenues of $725.3 million, up from $677.6 million for the same period in 2023, reflecting a growth of 7.0%. The company's net income for the same period was $220.0 million, representing a 17.4% increase from $187.4 million in the previous year.
| Financial Metrics | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Revenues | $725.3 million | $677.6 million | 7.0% |
| Net Income | $220.0 million | $187.4 million | 17.4% |
| Basic EPS | $1.55 | $1.29 | 20.2% |
| Diluted EPS | $1.54 | $1.29 | 19.4% |
Revenue Breakdown
For the nine months ended September 30, 2024, total revenues reached $2,146.1 million, compared to $2,004.2 million for the same period in 2023, marking a 7.1% increase. The underwriting segment accounted for $1,512.8 million, while claims generated $633.3 million.
| Revenue Segments | 2024 | 2023 | Change (%) |
|---|---|---|---|
| Underwriting | $1,512.8 million | $1,413.7 million | 7.0% |
| Claims | $633.3 million | $590.5 million | 7.3% |
| Total Revenue | $2,146.1 million | $2,004.2 million | 7.1% |
Cost Structure
Verisk's cost of revenues for the nine months ended September 30, 2024, was $670.6 million, an increase from $650.3 million in 2023. This increase reflects rising personnel expenses, which accounted for approximately 57% of total operating expenses.
| Cost Metrics | 2024 | 2023 | Change (%) |
|---|---|---|---|
| Cost of Revenues | $670.6 million | $650.3 million | 3.1% |
| SG&A Expenses | $308.4 million | $277.4 million | 11.2% |
| Total Operating Expenses | $1,208.5 million | $1,123.0 million | 7.6% |
Investment and Growth Strategy
Verisk's acquisition strategy includes the purchase of Rocket Enterprise Solutions GmbH for $10.1 million in January 2024, aimed at enhancing its claims technology portfolio in Europe. This aligns with the company's mission to leverage data and technology to improve customer experience.
Market Position and Outlook
Verisk continues to strengthen its market position through innovation and strategic acquisitions, with a focus on expanding its analytics capabilities. The company's commitment to enhancing risk assessment tools supports its mission to empower clients in making data-driven decisions.
Conclusion of Financial Overview
Verisk Analytics, Inc. remains focused on its mission of leveraging data analytics to improve operational efficiency and risk assessment for its clients, demonstrating solid financial growth and strategic investments.
How Verisk Analytics, Inc. (VRSK) Works
Business Model
Verisk Analytics, Inc. operates as a data analytics and risk assessment company, primarily serving the insurance, energy, and specialized markets. The company generates revenue from hosted subscriptions, advisory services, and transactional solutions. Approximately 81% of insurance revenues are derived from hosted subscriptions, while 19% come from transactional and advisory services.
Financial Performance
For the nine months ended September 30, 2024, Verisk reported total revenues of $2,146.1 million, an increase from $2,004.2 million in the same period of 2023, representing a growth of 7.1%. The breakdown of revenues is as follows:
| Revenue Category | 2024 (in millions) | 2023 (in millions) | Percentage Change |
|---|---|---|---|
| Underwriting | $1,512.8 | $1,413.7 | 7.0% |
| Claims | $633.3 | $590.5 | 7.3% |
| Total Insurance | $2,146.1 | $2,004.2 | 7.1% |
Operating Expenses
Operating expenses for the nine months ended September 30, 2024, totaled $1,208.5 million, compared to $1,123.0 million in 2023. The key components of operating expenses are:
| Expense Category | 2024 (in millions) | 2023 (in millions) |
|---|---|---|
| Cost of Revenues | $670.6 | $650.3 |
| Selling, General and Administrative | $308.4 | $277.4 |
| Depreciation and Amortization | $174.5 | $139.2 |
| Amortization of Intangible Assets | $55.0 | $56.1 |
Net Income and Margins
Net income for the nine months ended September 30, 2024, was $747.2 million, up from $440.6 million in 2023. The net income margin improved to 34.8% from 22.0% in the previous year.
EBITDA Performance
For the nine months ended September 30, 2024, Verisk reported an EBITDA of $1,273.1 million, reflecting a 19.3% increase compared to $1,067.2 million in 2023. The EBITDA margin for the period was 59.3%, up from 53.3%.
Cash Flow Analysis
Net cash provided by operating activities for the nine months ended September 30, 2024, was $888.6 million, an increase from $808.3 million in the prior period. The cash flow from investing activities showed a net outflow of $76.4 million, and financing activities resulted in a net cash outflow of $658.2 million.
Debt and Equity Structure
As of September 30, 2024, Verisk reported total liabilities of $4,258.5 million and total stockholders' equity of $304.7 million. The company had a long-term debt of $2,546.9 million.
Recent Acquisitions
In 2024, Verisk completed the acquisition of Rocket Enterprise Solutions GmbH for a net cash purchase price of $10.1 million. This acquisition aims to enhance Verisk's offerings in claims technology.
Stock Performance
The adjusted closing price of Verisk's common stock as of September 30, 2024, was $267.96, compared to $238.86 at the end of 2023.
How Verisk Analytics, Inc. (VRSK) Makes Money
Revenue Streams
Verisk Analytics, Inc. generates revenue primarily through two segments: insurance and data analytics solutions. As of September 30, 2024, total revenues amounted to $2,146.1 million, representing a 7.1% increase compared to $2,004.2 million for the same period in 2023.
| Revenue Category | 2024 (in millions) | 2023 (in millions) | Percentage Change |
|---|---|---|---|
| Underwriting | $1,512.8 | $1,413.7 | 7.0% |
| Claims | $633.3 | $590.5 | 7.3% |
| Total Insurance Revenue | $2,146.1 | $2,004.2 | 7.1% |
Revenue Composition
For the nine months ended September 30, 2024, approximately 81% of insurance revenues were derived from hosted subscriptions, while the remaining 19% came from advisory/consulting services and transactional solutions. The breakdown of insurance revenues is as follows:
- Hosted Subscriptions: 81%
- Advisory/Consulting Services: 19%
Operating Performance
Operating income for the nine months ended September 30, 2024, was $937.6 million, an increase of 6.4% from $881.2 million in the same period of 2023. The cost of revenues increased by 3.1% to $670.6 million for the nine-month period, up from $650.3 million in 2023.
| Operating Metrics | 2024 (in millions) | 2023 (in millions) | Percentage Change |
|---|---|---|---|
| Operating Income | $937.6 | $881.2 | 6.4% |
| Cost of Revenues | $670.6 | $650.3 | 3.1% |
| EBITDA | $1,273.1 | $1,067.2 | 19.3% |
Profitability Ratios
The EBITDA margin for the nine months ended September 30, 2024, was 59.3%, compared to 53.3% for the same period in 2023. The net income attributable to Verisk for the same period was $747.8 million, an increase of 69.7% from $440.6 million in 2023.
| Profitability Metrics | 2024 | 2023 |
|---|---|---|
| Net Income | $747.8 million | $440.6 million |
| Net Income Margin | 34.8% | 22.0% |
| EBITDA Margin | 59.3% | 53.3% |
Cost Structure
Personnel expenses represent the largest component of both cost of revenues and selling, general and administrative expenses, accounting for approximately 57% of total operating expenses in 2024. Selling, general and administrative expenses increased by 11.2% to $308.4 million in 2024, compared to $277.4 million in 2023.
| Cost Components | 2024 (in millions) | 2023 (in millions) | Percentage Change |
|---|---|---|---|
| Selling, General & Administrative | $308.4 | $277.4 | 11.2% |
| Personnel Expenses | $670.6 | $650.3 | 3.1% |
Market Expansion and Acquisitions
Verisk continues to pursue growth through acquisitions, having completed the acquisition of Rocket Enterprise Solutions GmbH for $10.1 million in January 2024. This acquisition aims to enhance Verisk's capabilities in the claims category, particularly in Europe.
Cash Flow and Financial Position
As of September 30, 2024, Verisk had cash and cash equivalents totaling $459.2 million, up from $303.9 million at the end of 2023. The company maintains a revolving credit facility of $1,000 million, which provides ample liquidity for operational and strategic purposes.
| Financial Position | 2024 (in millions) | 2023 (in millions) |
|---|---|---|
| Cash and Cash Equivalents | $459.2 | $303.9 |
| Revolving Credit Facility | $1,000.0 | $1,000.0 |
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Article updated on 8 Nov 2024
Resources:
- Verisk Analytics, Inc. (VRSK) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Verisk Analytics, Inc. (VRSK)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Verisk Analytics, Inc. (VRSK)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.