Verisk Analytics (VRSK) 1 Nov 172017 Q3 Earnings call transcript

Company Profile

Participants

David E. Cohen	Verisk Analytics, Inc.
Scott G. Stephenson	Verisk Analytics, Inc.
Mark V. Anquillare	Verisk Analytics, Inc.
Eva F. Huston	Verisk Analytics, Inc.
Tim J. McHugh	William Blair & Co. LLC
Jeff P. Meuler	Robert W. Baird & Co., Inc.
Manav Patnaik	Barclays Capital, Inc.
Hamzah Mazari	Macquarie Capital (NYSE:USA), Inc.
Arash Soleimani	Keefe, Bruyette & Woods, Inc.
David Mark Togut	Evercore Group LLC
Gary Bisbee	RBC Capital Markets LLC
William A. Warmington	Wells Fargo Securities LLC
Andrew Charles Steinerman	JPMorgan Securities LLC
Alex Kramm	UBS Securities LLC
Mike Reid	Cantor Fitzgerald Securities
Henry Sou Chien	BMO Capital Markets (United States)
Kevin McVeigh	Deutsche Bank Securities, Inc.
Andrew Jeffrey	SunTrust Robinson Humphrey, Inc.
Nicholas Verhein	Credit Suisse Securities (USA) LLC (Broker)
David E. Ridley-Lane	Bank of America Merrill Lynch

Call transcript

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Operator

Good day, everyone, and welcome to the Verisk Third Quarter 2017 Earnings Results Conference Call. This call is being recorded. At this time, for opening remarks and introductions, I would like to turn the call over to Verisk's EVP of Investor Relations, Mr. David Cohen. Mr. ahead. go please Cohen,

David E. Cohen

morning and Officer; today to third for With Officer. Mark call financial Ivy, and Chairman, your Executive Eva Chief quarter We Huston, joining results. Officer; this the on us discussion Chief me Scott good you, Stephenson, everyone. President Operating day Anquillare, appreciate XXXX are and Thank of Financial our Chief

website, the up about the and will our earnings of A Scott, earnings dial-in. earnings The for we comments Mark Eva we which non-GAAP for associated website call, been highlighting XX of this that will key results we The days on performance, by well referenced release X-K an Unless open on priorities strategic will our reflect questions. section XX-Q as several has call. points call will and your in to contains The have all stated the release financial furnished by replay the Following and Investors be we some reference measures, can on this available reconciliations as call continuing of otherwise, operations. attached our be to today also release discuss SEC. verisk.com. today's found

what our of that the more at summarized our suggested as about about may as from future include could by end earnings Verisk's performance Information detail forward-looking our affect as today. filings. SEC factors future forth Finally, is contained press set well release, performance in materially in the differ statements yesterday's comments in today's call could recent performance. release is Actual

Stephenson. will turn I the Now, Scott over to call

Scott G. Stephenson

our solutions, plus bring the contribute addressable QX demand of X%. X% create we the as their in and on organic at with new other organic addressable in almost the faster XXXX. are to expanding initiative, The growth partnership subscription with This as incremental an as that revenue investor upcoming ACV X% partnership growth the the the than At management markets Reported good our in well very first in has first Thank return excluding third CEO to expected. the is developments we base. WoodMac, and accelerating at margins to constant extreme growth Argus you, decision-making. in markets do solutions to markets evidenced we serve, range our TSYS also products to of new will stabilized. doing in it have delivered pleased year-to-date. about the core an for in call. revenue of job, weather their outstanding is morning, remain in our excited Mark team analytical to support X%. Investor opportunities and new will initiatives announced total customers We're remained report and Combined currency half. WoodMac due part XX%. customers improve to Profitability growth strong insurance as and banks continues recent expected positive growth data organic half half a help new acceleration This and Argus, pleased saw by demo newer XX% hurricanes. allow on to position our and about by to to to solid to continues to was effort David. some continue us a their track year will the quarter, the of The quarter there recent excellent We're second as of EBITDA team driving with their the about the Good our organic We the organic market for end customers growth an as was by serving to growth grew We're Day. all. was to talk teams and our job responding some extraordinary growth. versus

active have acquisitions the are in is the the Many the XXXX mostly especially M&A capital throughout in have and the the third tracking quarter. been front, and On a of timing function companies allocation been years, we of we targets. availability for of

smooth integrations timing brisk, the the the been nature of given While has been have and purchases. our quick,

acquisitions three groups. in into XXXX fall Our

extended for our to seamlessly of these and products solutions to an such analytics. our into names group When Fintellix margins. and small are data consists at rate product the MAKE functionality generation Arium, liability the double-digits all of run cases, will provides to here sets brought that and ENI, global for Collectively In existing amounts characteristics these ENI at modeling the of leader Helix runs immediately existing into with of product our claim MAKE. we client damage the and compliance and the while leader quick leading of products helps Arium The global have provider to new analytics wind in The in gain ramping sets integrating Argus, for first a is with that automobiles generation channels insurers solar banks promising property sets million. $XX modeling. $XX they revenue quickly distribution product analytics, time determine insurance in million and that bringing we our expectation travel AIR's to fall integration with is transaction-level platform these with in parallel at around banks Europe. time the Healix, relates market. our verticals. with profile of add paid seamlessly credibility grow acquisitions settlements our loss loss we for Fintellix all is

operations seven regional quarter. imaging The as in latest image paid decades. season. expertise been these by we were value remote customers noted We operated Geomni has revenues was our brought companies $XX straightforward, Their the who in capture these million for and experts acquisition of XXXX storm includes last of the group States. real whose which our have smooth companies led second United companies team Integration for $XX million to

in third which three which bought Web categories. we well market expect at a companies both in which moment as Services, these focus London purchased as GX distinct provides with but acquisitions margins. with world of of Argus' banking solutions the as enhancing as Lastly, for commercial Mark through growth their We both leaders Lloyd's we complex solutions was larger in time in and rate Sequel, LCI Collectively to all double-digit and the provide insurance the them more we paid to about bring retail particular on related strong three quarter, all the for the million will ramping $XX well leverage a whose distribution overlapping capabilities. products businesses, revenue about run million. $XXX them say cases of

will We solutions, their further on economics businesses detail markets, and our at these December. in provide upcoming Day including Investor

in repurchase for we $XX our our (sic) September also remains of At reauthorization $XXX stock purchase million third quarter have shares use the M&A we (XX:XX). [share program. authorization] of priority our longstanding XXXX, million September through in worth our share the including million remaining Year-to-date $XXX under repurchased quarter. free cash, While through XX, we repurchased had XX,

built capital deep three, integration first generating will domain workflows. and bring of even unique distinctives assets, deployment. market our four, cash on one, data strategy down capability to innovations the in further the expertise, into strong We assuming Verisk leverage two, remain customer confident Our our deep

distinctives customers. are with and know, of come innovation you From percentage this our economies ongoing foundation effects, a subscription As include we on our executing serving network large scale which on the revenue. and focused plans

to constructive Mark a comments. have that we ahead of businesses. view look some we for our additional with And As it for turn over all I'll

Mark V. Anquillare

Thank you, Scott.

we attendance in Risk compliance of complements business three a primarily a Verisk you a management and the payment strong acquisition than world's now prediction GX commercial addressing combination and specialty consumer is LCI best our for saw the a with decisioning Sequel with comprehensive to up at know, and Scott's from worldwide global that to insurance and insurance annual to offerings customers commercial algorithms, insurance-facing and number Following need had an attendees. pioneer exciting allow record clients further applicable businesses. software risk the some banks expands includes regulated The and need will weather. providers. Growth our London aimed insurance is providing bankruptcy us acquisitions, customer insurance losses intelligence is proprietary insights, violations. today. the specialty our and work to in growing with provider comments across with also are monitor is represented on other risk primarily month, we of insurance risk state-of-the-art the merchant The risks banks our solution capabilities nicely. solutions players. of other industry-leading LCI of fines specialty and and Argus GX extends some our insight, Argus' market provider August important with for to terms banks reinsurance companies to largest clients. a that commercial payment Last Summit. banking system and regarding and among range processes. customer solutions capabilities our as industry-leading in an software We're and solutions premiums to Sequel the U.S. in innovation example, existing acquirers, companies is U.S. the market. beyond serving predicting complex an ongoing industry strength improve, Analytics complex for LCI and focus confident of our and diverse Fighting continued We on insurance creditors. base serve solutions and and and specialist the help GX of the leading merchant is for theme due networks, to bad-actor relationships that new introduce Engagement bankruptcy of of fraud the mapping opportunity management larger reduce fraud flow

companies We well-informed very and citing of benefits of edge demonstrations forward-looking attendees the some and panels. provoking Feedback cutting solutions. our speakers, with examples from newer and engaging encouraging thought also had of was

know, you seen calm of few unusually the period relative surge catastrophes have months. an over past As in after we a long

billion. standard Our periods exceed areas XX most U.S., event risk is and three PCS so $XX Canada in designation far Turkey. events property with to claims estimation has the but designated insured the of and insured services business active developing estimates or record, the industry In across catastrophe still loss PCS loss likely one for on

provided the Global the Energy cyber this is to major Cyber the platform year. Global addition Cyber in PCS earlier following lines the two estimates to launch United Marine and of hurricanes in risk PCS Global loss following PCS States, events loss loss reporting the addition latest growing insured launch In on the September. specialty PCS

note particular With and which real-time September XX since customers modeling AIR estimates notify hurricanes, serves catastrophe to happening we in the the loss events to losses XX around holders. deploy proactively potential than to policy the the information has insurance unfolding clients business world. on X more assess or as insurers, cases the reinsurers were for claims use provided and brokers Our provided to and proactively some adjusters alerts catastrophes

revenue customers as positive As been has to the clock a market AIR reminder, the our teams cases give in isn't subscribe the solutions on benefit. some since a these around Client feedback there to worked reports basis. a to real-time have timely

clients their with these and At volumes speak over were unfold. business, result In period. for volumes Xactware, cost the plan quarter the loss imagery catastrophes. to on of dialogues double continue as the a meaningfully to as months continue our increased the experience prior-year repair versus claims nearly actual estimating coming We

minimum of many increase integration customers. does our for on more this growth, (XX:XX) it provide value volumes, revenue reminder, a and we highlight a contracts proxy isn't full so to are based our direct deep As volume the

helpful capture our and from tool newer served they very as which customers are Claim solutions, to able proved our cost to repair images for Experience, Claim information Experience One customers be to allows estimates. their generate of insurance. we customers' our a

the edge customer on Geomni, flying hours of business, assist solution XX quarter, able technology. generating times, service lot second customers which a our new level in were with to of this and insurers before focus the Texas their response capability FAA estimate remote the automate a in States images into industry our We interest. of their we incremental and to could example, even claims algorithms, the soon as out to our capturing cutting back cost the Harvey start with for Florida. repair computer These images, one after largest in allowing, customers paying lifted United flight restrictions as get in processing, combination in our was and the imagery new As is took homes. vision

me critical proud time our response more are Eva, turn help been We that, it to a detail. to such having and deliver our results for of outstanding With able over customers let cover such homeowners. speed at service financial in of to

Eva F. Huston

with calls. we investing earnings again third the the potential acquisition comments Thank in XX.X%; our revenue In also currency Growth revenue X%. Revenue and each in the see release revenue last help consistent EBITDA improved while grew on effect long-term the Mark. streams. our constant again with grew you lines. solutions for organic table grew revenue again, of you, a has The and quarter quarter press two to meaningful currency

quarter $X.X GX, $XX and in into the Sequel haven't LCI. reminder, acquired that As from in revenue recent three acquisitions acquisitions constant quarter. revenue. contributions Currency current the growth contributed revenue the And applied $X period the from about results currency including organic organic was moved excludes from quarter period by million. exchange all to contribution Revenue deals from million in period and rates a the reflects million, helped total prior partial August

revenue currency in X.X%. organic revenue growth quarter The revenue performance currency third loss led Analytics currency solutions and imagery-based X.X%. the increased constant Decision and Decision repair the revenue basis, markets On Organic imagery was currency Organic grew and estimating XX.X%. quantification hurricane- modeling XX.X%. cost with for increased X.X%. about claims growth contributed good the Wood $X was revenue insurance million Within increased solution Energy and X.X%. constant revenue catastrophe XX.X% constant constant very insurance. an about in specialized Decision analytics. quarter Mackenzie organic strong Analytics Analytics related Growth in remote revenue segment, was by in growth increased underwriting, and

quarter. constant We X% are XXXX early increased declined subscription The we in complemented environment XXXX, see be trajectory. by renewals pleased revenue revenue good an business to see positive, consulting we continue and stable customer trends the Organic our finalize in in Financial continuing Services certain and encouraging revenue. XX.X%. to the remains while business currency to

on contracts in XXXX. million As we last had calls, prior we've year which several discussed $XX about conclude contributed

expanding $X.X to and $XXX in expansion. organic line see close continue year. expense fourth to Risk was through recent paths are reflecting X.X%, making the debt margin increased with to reported September to million. innovation. $XX solutions. the newer an our cost that billion at spend increased quarter. SG&A margins businesses and The are from on focus expect for continue to for to the expect we top X.X% We to acquisitions core EBITDA baseline fund basis continued XXXX. Acquisitions quarter future due well-defined XXXX and added from contributions Assessment related were in as XXX the expenses for in that continue existing EBITDA the growth contribution the constant acquisitions X.X% an and and combined the to reduced we we X.X% revenue Total was about X.X% our fees, Reported the in to are efficiency grew XX.X%. revenue and interest and XX, revenue our year-to-date Organic quarter. currency to revenue which on growth points Margins invoices including growth. growth effect million The were quarter by Total organic of was year. as re-purposing the acquisitions basis

Our leverage X.X of quarter the end third was the at times. about

Our growth. strong explore to an drive we asset capital is opportunities as continue structure to

the quarter reported Our in rate was XX.X%. tax effective

million XX% of tax, EPS where quarter would This over XXX,XXX the tax benefits. $XXX applying EPS growth for from for quarter to million an growth quarter. meaningful an X.X% of XXX price unchanged be Our included count a third the to of income the be X%. Normalizing adjusted at have some in one-time rate adjusted down was XQ represented about tax million XXXX and share increase $X.X $X.XX. diluted net Average the million about adjusted shares $XX.XX. rate at to on period XXXX, the in been based tax the We of the prior reason $XX provision XXXX to was average bought

months repurchase capital. including operating cost ended our million million our and and be dollars the provided $XXX August September million XX, of purchase remote Capital million. was September. CapEx to annualized was of and increased investments operations three flow of of our $X million the were cash was year-to-date XX.X% Our about for XXXX. September month date, supporting the been U.S. for On Sequel, successful activities million was revenue continuing should EBITDA XX EBITDA in XXXX, accounting quarter in X.X% September $XXX XX.X% cash business. revenue an imagery XX, from diluted year-to-date. acquisitions, has count the $XX fourth expenditures for revenue should Net by shares. above share generating versus haircut flow the to around Across cash nine $XXX period nine ended ended IRRs program increase Free Free nine-month XXX.X reflecting XX.X% be period at

As of and $XXX $XXX to current about for year. for the of CapEx million rates, $XXX debt asset interest includes you about amortization XXXX, on million intangibles think be and issuance models costs. XXXX, non-cash balances XXXX our fixed imagery of XXXX and in million. This interest amortization after will amortization $XXX about remote initial of Based of debt investments we revenue about the your by and depreciation X% expense we million. CapEx normalize of around to expect expect

higher. full-year tax rate to or be the We possibly XX% a expect around little bit

tax for note pleased to XXX net generation, flow effect. continue amortization. revenue opportunities we shares. use on growth, XX% have finally, strong effect You UK that rate year. And intangible ever. quarter we overall about of the million a expect tax the weighted all continuing this adjusted We're improvement think cash will the free capital change XXX discussed we in as and law diluted In growth for prudent retroactive share will We tax in deployment remain a as take we the higher fourth the will implies calculation to assume as count a with revenue average million income

the and capital have to financial strength long-term. for support the We structure investment

We interest the in continue Verisk. and all support to appreciate

of number large ask the we open that, the to with that you Given questions. up follow-up. one And ask operator us, for to the your and we covering I'll have analysts limit line question questions one

Operator

from question first line Tim from Blair. the Your McHugh of comes William

Your line is open.

Tim J. McHugh

you. Thank

seeing? you insurance – versus wanted just we talk guess, I the know pace in X% I growth. don't Is And mentioned that insurance. what is growth on some but of kind short-term just acceleration to if the ask underlying excluding that sustainable? hurricanes, been also about can cyber that about kind of revenue, of X%, First, in the growth drove I the of sustainability had X% events, vertical, that you drove the little talk bit a know that

Scott G. Stephenson

always didn't reverse had. lot. Cyber a is a that set a so contribute extension Yes, Tim, in order, Think it cyber insurance real thing. we've a of really of as new product

of our small. to cyber premiums, On line insurance the relate is do, a in remains the to going revenue the small relative fairly and pricing we hand, others. fairly – it's other the premium to what or And most

remember one-time think part anomaly way to was the you'll relative the part nonrecurring the XXXX, early didn't to for the I earlier interpret year, the respect where year with say, that the we revenue is described quarter of in XXXX example. in some to, effects the recur of more third

not catastrophes, like revenue, expectation there's really point factor our of time to as here we're is business now effects of And we for at over to that kind vertical. the what seeing that of kind the than other feel anything is a sort in got. so contributing unique the quarter seeing the we've out normal of insurance insurance-facing was you're what that think I kind So would the more of the stand

Tim J. McHugh

that and the in And you. does carry quarter of fourth over short-term kind boost? catastrophes, into of claims of Thank impact a terms Okay. any on the on

Scott G. Stephenson

quickly imagine, actually when the so much to deal Yeah, very very catastrophe-oriented of are no, occur, they that. you so do and dealt get not a days motivated tend would events of claims with within lot. Basically, as with our very actually customers not to

Tim J. McHugh

you. Thank Okay.

Scott G. Stephenson

welcome. You're

Operator

question from line next comes Baird. Jeff the Meuler of Your from

open. Your line is

Jeff P. Meuler

Argus, can half. trend On just in us help obviously a understand, there's you. the Thank improvement you in Yeah. the second there big

in new meaningful the these online, come new online there As an the second this revenue a customers to one-time come is partnerships increase more is half or subscription contribution or base? the

Scott G. Stephenson

It's both.

is for got taking at nature of to And So the described I related of and before, an analytics we've to is for or but the paid quality bit cases, essentially partner's of think we've towards you customer new is the needs platform subscription effectiveness. our there's that thereafter there business looking is to for then work with spend done a get that sustaining use all platform integration. our pointing that them example, be that associated media interesting set happens integrate and revenue there that, what to that with We one-time of revenues. a

it's at really ends. both So

on new So same yes, and customer the substantial substantial, subscription customers there time enduring associated meaningful a revenue. are effects in of we moment but tail bringing at time, will be there with and an on bring is of the many

Jeff P. Meuler

Is But not the calling – I'm is, revenue on call. or at material the it grow-over for result growing quantifying impact? is I create not I trend trying out going it below effects big it have a question the but that there mean, Argus boarding on is XXXX enough get in you're or to to guess to

Scott G. Stephenson

performance there a relative it business something and of not the there be – not... will not customers, to to but be in but will material. there, are It's business say effect there we dynamic the to an need business mean, definitely, the adding where there continue I is overall I would but And so grow it's particularly in we

Jeff P. Meuler

And then in. one I just Okay. could sneak more Great. if

lean and potential a shareholders. for your it as source continue add you into see value obviously of to On the M&A program, it

you. of on you compensation M&A capital some your the talk assesses board of just Can there's about the program. their how and some review think management of maybe Thank I from allocation programs? in more shareholders your skepticism terms

Scott G. Stephenson

Yeah.

so We we discussions bring the questions management of that board depth effect With me, I the opportunity. every of our in with to do working the there, in to according so me board acquisitions is through and and our I is the is think interacts go on, the maybe were relate how always our asked board performance what board. compensation, been The discretion. you their think affirm exercising we then not to you actually it two program and to that the of performance their us, shareholders? primary pays for view to view do respect to, trying how particularly board of has is

Jeff P. Meuler

Okay. Thanks, Scott.

Operator

Your next question comes from the Barclays. line of Manav Patnaik from

Your line is open.

Manav Patnaik

guess that just of I hoping you. hurricane the aspect wasn't quarter impact curious do question Good million first I that Thank acquired clarify, referring beyond million, would it Scott, you go attribute that and inorganic does was was the number you was morning. the I imagery it just activity? the just that that repeat wanted think that to $X I because not it how to hurricane you allowed were post to and of I $X to the that remote you understand assets to why an much that all that

Scott G. Stephenson

Yes.

first of yes. So, all,

sets of causing Verisk. quarter, Verisk actually insurance The revenues. in not existing bleeding that the in the classification we've vertical. related remote not heard the not some activity, correctly. You business do of The period, end entirely in the on terms businesses million and Most million is We anything that and did time acquired insurance to into for we the $X that sentence. straightforward was acquired and infrastructure. that of is me fourth very had $X particularly vertical, of so But imagery the it's solution

Manav Patnaik

to forth, positive at you're Investor show forth Day more be synergies just it. mean, on tied and to I us two-and-a-half on question between guess, sounded WoodMac products of I new insurance WoodMac, in, my Got like then was years commentary And the developments, tracking? some might you'd give it so and hoping going and the so some is sort there was how I revenue

Scott G. Stephenson

Yes.

called data One analytics get exciting our things insurance revenue really it's about It's that product. are not you'll to energy a data Day the the It's now, is chance the right our it. of kind that. and a Investor at but we you'll very really, early synthesis stages, is so analytics, a material, in where really (XX:XX), of and excited concerned of new EPICS see see

Manav Patnaik

right. All a lot, Thanks guys.

Scott G. Stephenson

You're welcome.

Operator

Your next line Mazari question Macquarie of the Capital. Hamzah from comes from

Macquarie Your line - is Good open. morning. Capital (USA), Inc. Hamzah you. Mazari Thank

just pricing. to just Could like is insurance sense price companies on know give market book by first opportunity you owned that. think seems your to business? there's us a some maybe update share still you it an give an pretty pricing or the whether on about were relative low The you is your of and color us question just I and how

Scott G. Stephenson

been. everywhere, basis I effect that little that's price add would price, and parts with it's we're be less haul. do, our programs. a what the standard really amount for effect different us insurance no other stronger; a just it our are pricing Well, long bit it And there is our the the for pricing it distinctiveness that There where only I than that to strength do. is a we're effect on some Yes. parts our and in of a a is transaction proxy relates of But would ever we're solutions we our example, value that strong, of really the the respect bringing to because for for very would would – customers. of more Across in is we business everything there pricing which long-standing to a bit then, industry the probably be where pricing. little

lot about new opportunity grounded relationships solutions, our our and new endure of our want value We customers. customers decisions existing are really bring solutions, to we about with a making is we how to price because and them to our our growth to care

just - feel we Capital from business, Mazari maybe with auto or be and just in a universe, exposure see responsible of a price you of burden to Outside give personal vehicles. question. any Hamzah And what So insurance us Inc. follow-up your Great. and autonomous either great headwinds a that flavor P&C whether we the is our homes Macquarie to products. how insurance (USA),

sense the not how of for you a that's of any P&C think and or outside you about Thank avenue you. really. world whether Just growth

Scott G. Stephenson

we're complex two Well, very media of principally whole into vertical parts And extensions, folks we serve the markets, be think believe growth and parts, most P&C retail three I about then natural opportunities. banking effectiveness energy meaning the other and going forward. both have of excited business, know, and them resources. revenue the the We as insurance, its which and retail would sustained analytics, strong including them non-P&C very

We I leaders see to changing that the connected think ask believe, as announced connected that the the cars. you partnerships of of to like actually, We autonomous have an actually about with announce and way also personal States of more and cetera. effect United et the we'll vehicles lines opportunity. in and We've in and were data future. off are are automobiles harvesting vehicles, in kind we the trying

(USA), And so Thank Mazari an you. we it's Capital - it can we our Great. Hamzah as new data Macquarie methods, basically Inc. view analytic that so into opportunity. pull

Operator

of Your next KBW. Soleimani the question line Arash from comes from

Your line is open.

Arash Soleimani

market million mentioned imagery I some if Thank large insurance outside opportunities could the outside market how more of was insurance. you $XXX you. addressable addressable know and I sector? the wanted provide a perhaps detail the aerial you to know on insurance is

Scott G. Stephenson

bigger all vertical. insurance of for TAM vertical of about magnitude are applications outside the insurance an the the order Yes, than of the

be (XX:XX) from a sort but that's home important the is unmuted So that's phone of are our vertical Maybe as (XX:XX). There is where other insurance noise. into extensions to (XX:XX). us we actually, of vertical going to lot markets started base, we talk something, somebody's background about

Arash Soleimani

detail Analytics? question bit (XX:XX) about Decision could was, and The you a provide Sequel does get that more rolled what into up had just does second I

Mark V. Anquillare

Yes, is hi. This Mark.

representation visual a claims, be analytics a provide just that solutions market good is to suite tool bit march to in me (XX:XX) underwriting a inside a little do to they provides of a in One, and there versus (XX:XX). that all upfront of world would they and what major the captured insight. have behind everything carriers admin London perspective, policy an and to London, (XX:XX), of have little VI you so a Let from bit even the of scenes of provides Sequel nuanced wonderful reinsurance the the from the really

of we're So great to there's side to analytic things maybe going we some to to those customers What things, which bring geographic underwriting. we (XX:XX). end, to insurance well is as an U.S. and visual do of to of back as invest in there's approach our some solutions think which VA would on that is analytic are use aspect front going end be the (XX:XX) opportunities the as the the well

of supercharge kind insights the also we of their We some solution set. inside can analytics (XX:XX) hope

very So we're are excited in by very market we've general. very pleased and it. feedback Customers gotten good the from some

Sequel. about do we're with what we So optimistic can

Scott G. Stephenson

please? next Operator, question,

Operator

Yes.

comes question David from the Evercore of next line Your from Togut ISI.

line open. Your is

David Mark Togut

Data, First This Argus' like processors bit here contract and any you FIS? large morning. Could exclusivity new a with particular, in if a comment that I'm Good preclude looks on you card with Fiserv, Thanks. intriguing issuer from might TSYS? a very other an there's wondering working

Scott G. Stephenson

world depth reasons and folks exclusivity, exist in of to to next knows ecosystem knows doesn't like because and us in better, actually, ecosystem one like the gets comes a one there come that our anywhere effect the which and the partner fact the that. TSYS the next is of as and with to last come of so partner No else the in, that network creates richness data the and in is in asset the one why

it first ecosystem. TSYS's and banks to pleased there's reach partnership, about of is all more of the in We're excited basically data very – no very as be a that would by say, a no, extending it asset into So exclusivity the I but it. that, actually yet specific part it addition creates of way improves

David Mark Togut

follow-up, And dimension size just contract is any as this Argus? for the there potentially of the quick a opportunity with and TSYS new way to market this of size

Scott G. Stephenson

out the Well, around we don't numbers really customer relationships. individual put

already. the some of wanted that, figure to relate to you processing of work If of share is are world of out to and on try we size that TSYS's sort do could the the business you what sort

David Mark Togut

Understood. Thank you.

Scott G. Stephenson

Welcome.

Operator

of from from next Bisbee Your the question comes Gary line RBC.

open. is line Your

Gary Bisbee

Yes. Thanks.

all. has? in to to of to it not things reason? UK revenue with opportunity to that integrated analytics customers the you but somewhat solution? wanted meaningful base a as opportunity Sequel approach assets interesting a really sense that your existing go really for opportunity is question integrated market the the more disparate consolidated past yet part an then Thank and haven't bought take that this or in, you. is into purchase. bunch from My given there, here, layer and the a Or Just And another that, that is what's an the foray some of I you offer add more completely and business and the on drive that wonder, of relationships

Scott G. Stephenson

bit the XXXX accurate. with I question, your maybe the Sequel. start to little just just me premise interact then more integrated, about not question, to that's smaller acquisitions with not like let Well, of is in you'd which your talk a Mark, want earlier being last

make globally, that. do create you respect it just local that have to So the But doing anywhere. see spoken the by your set how to business to. do yeah, you exactly into in record customization method relevant for having we first, and What way to to the to second, whatever can market that sets, pretty with need wants it data is be you to on growing much straight the market, local to analytics data speak

play mention, catastrophe you've nicely. these nicely. very then view and that that I'll is side, and they our together at today platform got Sequel on example, that Touchstone our do So to the we our how really grow side, modeling Sequel complement tools will business, of are there on things yes, the accumulation Verisk and for

is you up Mark, work pick already to it there? underway. do But, want kind that from So of

Mark V. Anquillare

I'd that of with thing Lloyd's, acquisitions, a the is bit I energy of putting team think program global we've lot work business syndicates. highlight time of there looking resources a to of kind this lot and is are and We've a go putting world, I buy. UK, done spending lot of work a think been to of place, quite the with other cover of some like in and but the Yeah, in a build management specifically development/sales we've done a combination

actual some up building expertise. are We

provided So one of to information. And of market States just it maybe maybe in that United fuller-blown, was traditional grown in it Today, around costs of a of It rating and here take the work, earlier underwriting brought property, the we some lot acquisitions call Ireland. we variables. ISO-type this bring to beyond I'll a loss (XX:XX) have significantly the is do an we trying UK. are to around things the example actuarial

kind that's of the we've We're the thinking, Ireland. build way put augmenting of that the move a into approach, So platform along into in substantial Verisk beyond and that to trying to Europe. type of acquisitions type UK way

and So of progress that's see think coming our more we as the years. strategy, I that clearly in you'll

Gary Bisbee

Great. there were you. a guess more aerial to of other their about take bit risk whether some is your after role. this And hurricanes imagery story people there some solutions that good insurers and of and dependence coming own a series tell do or out it's using to their was of follow-up, own? the insurers damage reduce potential to, beginning the adjuster then assess a pictures that, is just drones to or the on on some articles Thank the easy that from stuff the in I go of

Scott G. Stephenson

first of an or understand the an or how Yeah, the to the and independent avail it's that you changed. way an so works ecosystem of insured, adjuster all, the insurer imagery is asset need to as ability yourself

a things understanding of is before images, the precisely efficiently that the developed for one is also And damage, and reasons. damage the cost terms the is the has event, before your of to asset so of the that the in of one but what is necessary before truth, is sort occurs? that of which the of be view there both matters quality So things of

You need cannot do on And you is of And in single the What do do That see create the that not changing. can't the actually, of that drone. you is satellite we imagery. with way with terms aerial that view truth what either. a a is ground. to

drone get do So that that from very property which then is if an is some a inspecting one limited, wake it foundational. is visually in to to human the addition that adjuster building, radius What you the of being, you can remember, the because ways is fundamental hear can the as you can in a drone. in to operate and assess the a the of of an event, fly carriers

that. of the And to some do companies have begun

bit bit does they change. The really it. not always around that It kind get maybe adjusters better happened drone, using faster, It's drive to in be precise, adjusters actually. technical trunk. can may to some can their property which they would can do a literally to for is of we're they close much a what it find done, the what represent to a all an their really has augmentation try understand very the and a their they little have adjuster of of work So more little driving with drone small and images

solution of actually drone provide to and if get a those We us. to operating and customers can where have are sort to one to access they they homeowner images is the turnkey capture a direct able actually our – and as well drone, actually, back the

hasn't good you're the the effect, It one. is if but future going at point one. It's drones. nature So a the maybe claims overwhelming into an do do analytics that not more with will of scale, the to to them you're process, it have fundamental is changed going these development not really somewhat

Gary Bisbee

Thank helpful. you. That's

Scott G. Stephenson

welcome. You're

Operator

Your next question of the Warmington Fargo. comes from line Wells from Bill

Your is line open.

William A. Warmington

everyone. morning, Good

Scott G. Stephenson

Bill. Morning,

Eva F. Huston

Morning.

William A. Warmington

and QX of come weather EBITDA basis should think second we've question had So the into about margins a been were guidance XXXX. be QX how in that we going understand QX XXX margins the to points half for that. benefit. and wanted I ahead I into The had ask margins. had on you with extreme to flat the heading just

Eva F. Huston

Well, in and model of Yes. margin the hit some of the we talked you saw the think head margins I terms Bill. business of when about the Thanks, benefits certainly our and the in quarter one you certainly, benefit. incremental storm is have nice the we nail of on that

the around acquisitions. which on is the that discussed margins our We we've impact also had

So the we be think pulldown little sort fourth a quarter. as bit a margins those will on of of the about

put it gave brought quarter, roughly the a that's storm think how kind an will the would benefit. I because margins over those much all that you numbers on the around together, that contribute the what XX% call We in said. of I fourth we some of have margin have did very third quarter We margins as will of say in of sort we've in in time, but you based some new acquisitions. expectation specific scale versus outperformance Those

factors So fourth probably than and I certainly to the look would we model of be your pulldown, quarter, other those pullup you for would I a but quarter. more margins, will drive there fourth in about think a put back – as in

William A. Warmington

And from a revenue quick extreme may. on weather. follow up if the housekeeping the I impact A question

to You the If that mentioned extreme it X.X%, make about giving a like benefit, basis X.X% the XXX Is mean so that the the X.X% looked want was just that, right? million third $X insurance right. it and the QX. coming in would quarter about points benefit the from constant weather versus to organic I point for couple piece. math sure having my is currency

Eva F. Huston

are Bill. on, spot You

William A. Warmington

context should that be then – And – QX organic to higher right. there to is should the we be that versus the X.X% level? we expect growth All think normalized

Eva F. Huston

Yes.

guidance quarterly rates So growth so far. and know, throughout do that year, you've (XX:XX) of specific I as into you express in terms get think our Bill, don't we seen we the

William A. Warmington

Thank you much. very Well Okay. excellent.

Eva F. Huston

Thank you, Bill.

Operator

the line Your next Andrew comes from of question JPMorgan. from Steinerman

open. Your line is

Andrew Charles Steinerman

now in of Hi. organic revenue third then effect, I for insurance. because part internally-built imaging aerial base? you revenues in acquisitions quarter then of Could And you question wanted moving revenues. If how to big prior is kind the the hurricane of jump and sense us in for right revenues including be it's a would added $XX my thought aerial imaging the give still aerial back imaging of Geomni million your the indicated business? wasn't total nascent are needle into DA your the I it second

Scott G. Stephenson

the effect those at just say absent the very, even Andrew, nicely. point, the I'll aimed insurance and Geomni same have business would the growing is vertical of growing both very think that I the and questions and in are grown weather, extreme

of not million, So $X it there solutions. was the boost but attributable that as to before of was a quarter most Geomni, pre-existing Verisk I in said

it of So call in third though have effect. Geomni even almost and to it growing, grown quarter scale anymore, even nascent nicely where But would the early we're It's sort to in growing have begin would a the nicely. weather not can still is grown, getting the is we journey. and absent extreme

Andrew Charles Steinerman

Okay. Thank you.

Scott G. Stephenson

welcome. You're

Eva F. Huston

Thanks.

Operator

line comes the next Kramm UBS. of from question Your from Alex

open. is line Your

Alex Kramm

Maybe this is it Q growing everyone. asked I've at the that Analytics continues actually I morning, and in your good to look really non-subscription, there when but Hey, to Yeah. and Decision relates before, out prior the and the this question, subscription disclosures rapidly. non-subscription line stand about

right I million. think it was back like that XX% year if $XX into or I over year

you in is is guess to can secondly, for it driving growth? example? continues for Decision Analytics? quarter I the the organic Is Because aerial then question that look subscription bit an And what So imagery anemic. a little all that number give non-subscription one,

Scott G. Stephenson

Yes.

serving preference So And for a need. which to sort a either a do subscription a they us point they're we're we're buy transaction in – or shows new them. of that which they with more least into growth to solutions, often the category that let at mode as it which into for a them to it's into don't we mode, get me because have respect is how than new as solutions, rather way to for this exactly new that much moving how is the know business prefer general get that customers going particularly we're or topic, happy that reason of it in is make they

don't to because subscription be low revenues very transaction-based ripen they So into mature, we quality they revenues, frequently agreements. consider

an just example, in world I'm So and Geomni as for example, – transaction-priced. the taking that we're today

you is without of would guess imagery buying a to be would our as it, have One customers on mode, can begin of property I of to be mature, of aerial we kind want at. platform you of say ways we the to that the where essentially respect that plans would that at one more any look sort been them subscription length the the offer worked I individual in offerings to way has

start would So in And mode. a want transaction a an for of be as progressive the tomorrow of transaction subscription example that to a normal the what kind analytics business. booked road movement of be is out or would there effect into revenue. be customers It's today would a revenue common very that's of booked data as down what inside to

Eva F. Huston

that. and, to add I to Yeah, Alex, going just was

growth the than that. well some as lot growth look subscription we rates, that the generally a well. organic of has growth the a the numbers and are transactional. you has dollars businesses the are but you accelerated quarter that me, third growth quarter of relativity of front think, I higher subscription, growth. bit in rates actually, And in that what's – would rates don't quite the XX% because in meaningfully associated are in of terms remember, with the that really acceleration subscription were transactional growth, as subscription second in we're look I the driving progression the at see actually transactional I in But the as more subscription certainly say at would when have bringing if growth the the you

transactional to think down So out a see I I think organic, you that growth more if would balance. rate your you were of bit to parse but

good and activity revenue. storm transactions, said, as have we nonetheless, is so Although Scott

that. So take we'll

Alex Kramm

That's very color. much. helpful very Thank you

that you acceleration that time? models and this, you maybe out extreme like longer-term end of of Will to some impact purchase. drive business, think, will the Or more the of extreme in be fourth but premium this should you maybe Like quarter, there discussions Just thinking could subscription more people bleed a in parts how or Because term? into incremental example, secondly demand market? than I customers hurricane be more, see real longer about the or this longer some better seen mentioned quick, potentially event For with aerial? more see have will was, years. is good, which weather I change we've the some should kind term? on very coming where What's

Scott G. Stephenson

two will three things touch on Mark on third. and I'll to first mind. your are the the in pick There keep up

that fourth First that of the clearly. everybody to all, we heard heard and said into respect hopefully just with third quarter revenue, don't quarter bleed the so extreme events that

our to of thing know second we're business here sort about and The insurance. about just talking obviously,

we're to been and We But anomaly just major excited you then in the you financial thing spacing that time to in the where the in put that sort has has the in passed want so are energy basically is space, actually. back I very out and since insurance the and there, going and and complex there. about the continue of in the unusual services have of can last had event, you Sandy Katrina go say XXXX amount

the related happen. not Major of think a which States, also things, about all those now sensitivity They that year. to things and you them so you hardened a growing. so understand you in about same should but been in be things provide extended like that's business. a a Verisk, the extreme software just happen think every business the of and in we part actually and is a year. want talk the customers new events what happen two they is they We've of little our pattern when does the major to up one so the our if whole balanced way really not of won't against We'll major events. in So event an is so what you've that for and Mark every we example, period you hurricane, sort didn't what atmospherically very but frequency to that. do to think see that flooding with is of a a anomaly way, where hurricane is claims by be help insurance-facing But solutions lot suite show it driven – events there's any is not part of It also It's for mean I things, got just bit? the is, want necessarily United which may that our having way platforms to about said

Mark V. Anquillare

is whether across that pricing. going I What bolster a to solutions to different of From model to we've take geographies, help it's about for little the thoughts think us rate perspective that's bit things a growing more appetite AIR a help upsurge to wants be a regard have or some in of customers also they're how someone question sometimes in could event perspective what and extent that reinsurance, talked these little are different industry. who I (XX:XX) like see maybe a a your is opportunity. the insurer catastrophes with does Just, cat buy do our modeling, reinsurance going should the big to road, we're That more an pricing in our From a and it don't a customers' opportunities and (XX:XX) around perils, it helps to suite the couple down reinsurer primary so think there second future bit. typically additional an that maybe things. an customers comprehensive with

other tertiary benefit just those wanted another observations. So to to that's but maybe us, just share

that's searching I you what well. were for think as maybe

Alex Kramm

Thank was I you. Yes. for. Exactly what looking

Eva F. Huston

Thanks.

Operator

line the Foresi from of from Joseph comes Cantor Fitzgerald. question next Your

Your is open. line

Mike Reid

is have impact XXXX effect all to our with CapEx bit see having from little the any storms, at for Mike if Thanks for thought Joe. going capacity questions. that the some on energy the taking Hi, of a you and would any spending guys. We business? offline just This in Reid on could that for production

Scott G. Stephenson

your the you engineering-intense in get of can way example, ground business days, the basically five is south of the hydrocarbons nature a States extracting the it's and to within the No, blip. United No. from three unconventional so central a established for in well very space

Mike Reid

Do it. how acquisitions? you a have more leverage would little Got all with necessary going And high with to a ratio up go the the with ceiling acquisitions, the complete the ratio you bit. Okay. leverage

Scott G. Stephenson

maybe yes, so those? stated have curbs you just want Eva describe So to we and

Eva F. Huston

done don't opportunities. our times really have talked way we'll aren't that Yes, above debt those but about it for we really being we We've really to about a go constraint the for X.X we in point think I mean reference the covenants, we've The that EBITDA us. past. – is

look at for we how the our QX, to you is de-lever free us, take generate a if and cash really flow. especially in I does long it So business, lot of us measure think

cash expect relatively So quickly down absent that that opportunities. spending I come would would ratio any that on other

flexibility. very So we lot a got feel comfortable we've of

Mike Reid

All guys. Thanks, right.

Scott G. Stephenson

you. Thank

Operator

from BMO. from Jeff next the line of question Silber Your comes

is Your open. line

Henry Sou Chien

on for follow-up Chien aerial imagery a Henry product, morning. on just Jeff. say. products, It's Good had Hey. should I the or I

In time of meaningful the or sense just of we business could wondering that, can insurance terms least when you of line. growth customers, was the impact us the line a give if see rollout to in a at segment I on and

Scott G. Stephenson

rate in growth impacting market It's now now. the and our

Henry Sou Chien

the for terms multiples, us in sense the aerial on imagery acquisitions? of could acquisition are And a you give those Okay. what levels

Scott G. Stephenson

the imaging seven actually I about think that really smallish remind X-ish at time we talked think, imagery don't we aerial we – EBITDA the I of I acquisitions? bought Eva, I million companies. the acquired mean, regional me, dollars but think

Henry Sou Chien

the terms of they in And so far? Okay. have multiples? trended How

Scott G. Stephenson

So paid we $XX million...

Eva F. Huston

million. $XX

Scott G. Stephenson

Pardon me?

Eva F. Huston

million. $XX

Scott G. Stephenson

those for million $XX businesses.

Henry Sou Chien

Okay. Got it.

right. Thank Okay. All you.

Operator

next from Deutsche Bank. line of comes the Kevin question from Your McVeigh

open. is line Your

Kevin McVeigh

the Great. and breach, of kind authorization kind are Hey, to Equifax step-up you. just any of pre-approval in it demand seeing you Thank around post as relates Argus?

Scott G. Stephenson

and quite Argus. not sure you're of pre-approval Authorization I'm what asking.

Kevin McVeigh

any trying are terms potential you detection at demand seeing clients? of of manage pre-approval process step-up to or fraud, the of fraud point kind authorization, from in in Scott, a early, in

Scott G. Stephenson

Argus does. if demand the that's really question, your Well, but – are what understanding for not good, not that's very factors I'm Argus

Kevin McVeigh

so potentially into? get ask, let I that potential area could guess, me a but is Right, is you – that

Scott G. Stephenson

banks, – You with cybersecurity? mean companies for help help their to example,

Kevin McVeigh

Yes.

Scott G. Stephenson

insurers insurance, that That Verisk. their on work in that cyber about how insurance do help not we we future. That is though today. but potentially do something we at do something to could could products, something today, hardening We against manage the banks, not potentially doing actually so is we something is think that we cyber-attack consider companies, that including do

Kevin McVeigh

you. Thank Okay.

Operator

from comes from line question SunTrust. Andrew Jeffrey Your next the of

line open. is Your

Andrew Jeffrey

squeezing the events and little more other (XX:XX:XX). is look in, particularly GX the me a so strategy, granular all and and Hi. My natural question the at Thanks disasters when forth. for Lundquist on color appreciate on acquisition I and

TransUnion for you doing not you particular, what in can adjacencies you little are I bureau differentiating financial wonder the what banks bureaus and is your think or about into business offerings on traditional a services about think bit offering, of moving or think your comment has perhaps and generally. I just whether sort if to been a how

Scott G. Stephenson

take that order. it think let me I – reverse Yes, in

is the is provide being wide because contributed them. a that Argus of So wide of set number contributing a back companies that is in and growing of that decision granularity utterly to set a founded on analysis the business unique. support a is And is data this the where unique beautiful data by consortium our – do and large, it and We they're data. participate that data

And ecosystem and related is that our whole new into to are cases that the of strengthening, use so Argus. content. finding growing the we ways and is And growth that of fundamental foundation

terms bit things their product data card the example, in about most your debit GX about can set application the diligence a data more merchants. doing of diligencing the date, really that one you they're insurance to one or to most to very you and is example, But do is degree can more there and categories To towards what the their what spending, you using point, is think with up you because of of us, out example. believe patterns the theme a little the something part set of their of borrower for of GX, kind has lot the we products. observe analytics, that's for the out consumers, credit a is that great transaction when of when of been can for a bureaus might and Then So relatively, does – come respect to back inside GX also of and it's ours sort then of us overlapping observe understand of which root new we of to at at can depth of have with so try pivot data, a for today providers synergy as for you start and for important of That's to sort when for out solution another payment end a and sort can set very of the comprehensive business believe overlap that. helps the these done already is used. LCI new and comprehensive there you where when there on that do is, already When more fraud, kind try have be you That's us we've that It's as we but fraud, there's thing that, these got. to available in of already supercharge products is towards the you being important we that's the to trying occurs that world different but merchant equipped where what of Argus we side. move LCI, of then do small looking merchants are players move including the Argus. you there activities what

we in to feel respect new with trying advantaged bring the fraud. merchants so And categories value like and market to to

Andrew Jeffrey

housekeeping much. it, standpoint. Okay. then this a just Eva, for comment the very intangible missed year? amortization I What Thank you And That's helpful. was

Eva F. Huston

million. intangible this amortization $XXX for is The year

Andrew Jeffrey

Terrific. Thank you very much.

Eva F. Huston

welcome. You're

Operator

question from Suisse. line from of the Anj comes Your next Credit Singh

Securities Credit open. is a line LLC Hi. specialized Thanks and growth energy Nick question. is maybe your to of WoodMac in for Verhein taking Your for Nicholas my (Broker) the the - you markets on (USA) This us was Verhein Suisse what just quarter? contribution Anj. sense revenue Could give

Scott G. Stephenson

and of the sort customer stable the sort aspire to price business any can conversations out Oh, some or environment? sort of on Credit update think maybe on X.X%. Securities - what what the low trending It oil in missed provide maybe growth updated thoughts you maybe some that. to I it's of sentiment, LLC we like of put must (Broker) Can have (USA) just that there. okay, an Nicholas was Verhein then Suisse just I

Scott G. Stephenson

that (USA) this data at so we're actually for like environment, we long I about large intimate have space of are of first and it's Customer pleased we just them, us these is conversations the so so really time with observe I all actually and Well, able we good. in we're also a to? said bought every of mean, time business said over that believe with customers stable now think specifically. very and Great. very say, that. our motive that about everything and to maybe Yeah. Verisk intermediate quality have you of Where Nicholas LLC Wood and feel strongly feel probably ours excited into the very I'm are absolutely faster Okay. still We so business our for Mackenzie doing they and need growth we global turn them commodity. also than has because like dynamic very be and periods Verhein a profitability going. that's we're it's in to good and with we noticed just both average a to fair where own opportunities, we partner essentially it, we price feel terms their story at trying Suisse and very and the relationships terrific of for the are there their where businesses we business we we you. to to the part environment and probable. towards the just have in feel we're Thank journey - else are grow on that Credit reason I meaningful looking get on assets terms of of closed I about like space been has customer that the that and lean in to them corners they so of progression all, their of why are do, Securities Brent growing for there's possible, unique, (Broker) environment, doing $XX-something And yesterday, by to time some

Operator

Ridley-Lane question Bank America. Your next from of of comes the from line David

open. is line Your

David E. Ridley-Lane

any renewal you planning Yes. your offer to planning on year, the products? the price downturn? rates Thank for to price you you have also, increases on how about want doing you those around for during next WoodMac. ask Did clients ACV did are concessions are trended? And As commentary then

Scott G. Stephenson

sort three-year so said of and we mix Yes. just two does subscriptions. We've what to before, before, of WoodMac – actually at talked about do reprise we this a a WoodMac effect one,

years and of was depth of this motion the at the on contracts actually there of in were the reported kind sort So part is were gets category. pressure in what a set being written And moment what right couple renewed ago. that of

we percent into when work way ACV report little while So the the year-to-date, for actually results. it progression reported X-plus that a to takes its

get talked things Mackenzie expressed as step a it's for these that and up, take happening, good about result. so while overall And are watching just the now, into they because several you're we've Wood to quarters this

So you're elevate. seeing WoodMac

looks for XXXX WoodMac. interesting think, very I

David E. Ridley-Lane

EBITDA And I acquisitions, a then drag points margins they the are your on basis understand XXX quarter. to in

you. thinking of slower? a a of too faster aggressive? In a or time it you thumb Thank rule about Could terms What's to narrow gap, period use? two-year line to that do is

Scott G. Stephenson

effect you – to margin basis is difference then Eva we sort businesses. much, are the I you're that example, than QX, in lower to about essentially Well, point highly did of will profitable for which would XXXX, talked. to rates. spend look QX months trying we XXX XX% which The think you talking a to level, help points, think like looking are these I but we've cases, to were their if within that like we've three of them XX were done the be you of run in that all in at they look And much acquisitions corporate that definitely expect XXX that the XX understand at basis was XXXX

Eva F. Huston

with effects associated would businesses. fees are I some we acquire there add, when revenue. one-time with accounting There's Yeah, that. associated also some There's some certain

So as be businesses more that's well. a to of going on near-term those weight

positive So those I think ramping of Scott up. as we're in said, terms

Scott G. Stephenson

incremental a the say, businesses Verisk, really high have good. fixed All which to the those quality degree margins same of and rest is three as of so of are those of costs businesses all in

Scott G. Stephenson

very just questioners can no for look I how newer seeing even a spend of behave We understanding and say on December. forward right are, they behave interest thank to very economically. you much you. And we'll I'll other so Day of Seeing time they deep and all Okay. the screen front, some of and our at time they you today. have in very, Hope there, that up us as in you these parts how more the your what the on join your market mentioned company Investor

Thanks today. us your join can you for hope So then. time

Operator

concludes conference This call. today's

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