VRSK - Earnings call transcript Q4 2017

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Operator

Good day, everyone, and welcome to the Verisk Analytics Fourth 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 Chief Financial Officer, Mr. Lee Shavel. Mr. ahead. go may you Shavel,

Lee Shavel

this Thank Chief you, joining fourth We you Officer; this morning, XXXX President Stephenson, and Chief Officer. and today for good Executive call on us me our Mark results. everyone. are the Scott financial Chairman, Anquillare, appreciate and With Heidi, morning Operating discussion quarter of

questions. be all open The some reconciliation replay the The dial-in. website, earnings call our we release. found financial of available about we our on comments X-K Scott, release to the up earnings by section SEC. call will operations. in Following the A points reflect by otherwise, of our find website EBITDA, as press Mark EBITDA referenced release All key call, and can which Unless as for today discuss discussions Investors a verisk.com. this also your furnished we you and to that our well for can results reflect an on myself this been will stated has have for XX attached highlighting continuing days be XX-K, the will in performance, adjusted of associated

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

over will the call I Stephenson. Scott turn Now to

Scott Stephenson

Lee's developments are call as Lee welcome as It's already from his CFO earnings time and first good contributing experience morning. to insight to you, pleasure Thank Verisk. to and real Verisk's at new CFO. NASDAQ his a

and candid a been This jobs first your exercise some tour the of shareholders in rudiments about we do our us, be dislikes for feedback believe complete grounded already expressed is our our communication and has listening he and on practices coming concerned. your of we with the Lee has the budget Verisk to he to owning your to the so has and of major in become expected, quickly cycle and annual hear able institutional feedback in likes for will business. quarters. of an agreed him was evolving I One policies been healthy

As we A is that our organic achieving moved revenue from solutions to strong Investor revenue by driver Verisk nice and primary in described is multiyear of the our recent multiyear levels have demonstration sale best advances of growth, of subscriptions. to high-quality have the subscription Day, organic the must-have.

XX encouraging Over large issuer data rights the name world in not English-speaking to have along a multiyear with major several days, agreement acquired credit three, with last the subscription there was the a First, that only Argus customer. card associated been the developments,

WoodMac saw we our Geomni our our Argus, rolled context a focus and third, where are progress And X the in test program X imagery and signings, the it X When tested to with in good revenue. solutions contract Subscriptions, about even standard the such cut all, of they But against points saw pleased subscription the the very catastrophe industry subscription our stood number as to signed. new reduction most are see $XX legacy ways. vertical, and more carriers work of exclusively X compensate X a success sales perhaps and had of the important agreement with to and million grow. an the subscription of to of have and conditions Second, value many in agreement make choose and companies at backdrop In models on of value insurance companies had to value chance commitment course, both we of the in lost, capture other exclusive agreement. finalized that price analysis. we annual degree takes XXXX, off can we government which of at merger of

XXXX, several material into risk business result thousand increases that relationship related majority verticals. more into of revenue to the one will observed in our see our of assess two time the primarily The are immaterial lost adoption substantial suite. our 'XX a across energy, year-over-year no in merger insurance we subscription customer our be and of we impacts. in combined revenue customers, following as at a relatively in with relationships of we of And financial produced the services As customer this accounts product a showing

customer have merger. to down aware but financial a of financial in We the level due steady no the in expect In and due exists described, revenues thereafter one where one first are we materially of where services be year-over-year revenue. previously in revenue to is In lower this spike to high-quality the year only services example, two XXXX. the phenomenon energy, case we due to by longer followed implementation, subscription energy, of accounts,

degree. a Our environment than but preserve our for to growth in the we slightly will and 'XX at growth in industry-standard softness 'XX. deliberately insurance rate show moderated in Because lower to a XXXX, solutions of cross-sell general modest opportunities,

the and WoodMac we above expect sources renewable chemicals. move However, and growth cross-selling 'XX in the 'XX. exciting sets, we we to to In the including primarily the growth hardening expansion see analytics, rate be of of subsurface that in energy will growth product relate positive. will to continues 'XX, or market, at and

beyond our more the We are increases in growth and overall pricing opportunities, 'XX minimizing support expect in still mix. price make in of use of cross-selling to but 'XX

organic new observe new solutions. our InsureTech of makers the quality of it is CEOs decision teams bespoke days, our to Verisk's themselves last that X jointly senior number in which we had One on In offices company with develop bring had best asked we, XX we senior indicators their growth and occasions, meetings encouraging leading our that in revenue opportunities and to is creation. of and to customers, or context, value the at for the explore

we the winning entrants into Another newer me the is that indicator with success leading meaning markets serve. has our for business in

all interest is For example, flavors and XXXX. in relatively is X evidence the events, with quality And risk-managing them integrated 'XX alive our was the into world driven of integration leading work business to the integration companies to at at flexibility proposition. of is Verisk. value that currently extreme organizations, that those of to precision platforms the with value Of not capture, which was in with national speed of have of by Maria and customers. entirely previously are function and our a to mature acquired work addition of in progress other with one platform, I and tested. X weather acquired Verisk. moment, link HR the of risk-bearing core the entities, InsureTech merge the the to us we the endeavor image who where, I'm their our responsiveness and integration lenders X here. companies customers end Sequel operate year, were following since Rico and Hurricane Success that InsureTech elsewhere the with take we our pleased in the image or pleased the unlocked in freshness regional this as are image last is firms them 'XX different as our mortgage We're primary in seven financial busy Puerto space. the founded work of end that the integrating I entity. we PowerAdvocate At first, spectrum, this of intent to The integration the capture really is of At operations such integration, permitted see this to proposition. of with

WoodMac to modeling AIR's and well are on Sequel and gas Specifically, analytics Touchstone work. platform. this oil PowerAdvocate Teams underway to

which world's X a In oil Both with the fact, sale had both involves have one companies together. would national report the of WoodMac. of part not we've deliverables come PowerAdvocate recently the not and contract signed largest this happened teams on companies, major

to insurance, channel the of increase immediate The of organizations, harness is series in distribution Verisk third product category them the to a work where smaller is most sales.

And with four, sharing account; in the X produce revenue business, well leading expanding integration workflows; by a one, being, customer of underway methods customers; last an are particularly our fronts. expertise; our three, recent described unique struck this our organic days, the enterprise. with customer reach sustained market company At growth that on deep effectiveness XX those across particularly over arising a can global our synergies moated vertical Investor datasets, the ideally U.K. progress markets, by to growing all the overseas and on qualities from I capabilities two, basis, I We our which strong Day, see work. I'm and five, make contributed

in longer-term growth revenue with organic goals. X.X%, our quarter result, a consistent As the our was

like of revenue an was our EBITDA tax Verisk made growth of X%, through growth From up meaning significant implications will revenue end EBITDA and enterprise about take cash and I'd lower reinvest strategic and than function, the we of as XXXX, specific implications. Lee that a quarter the people. rate corporate treating than Our to to particularly, you as organic XXXX. we growth. enacted I reform comment as in to In perspective, investment after-tax growth our that in for expect on the ramp regards this Geomni continue to organic relationship that operation. be we reversed, the are the flow was in rate tax a the accounting at greater organic opportunity

increase we our greater taken purchase in for most and materially expanded to stock double long-term employee matching have programs. our And in categories the budgets training and contributions to form to so of wealth our XXX(k) people the decision

Mark this all additional strong our to our we year. intend the some for and highest-return it looking be disciplined with of these hand that, into bottom shareholders. to line looking return I'll budget and still money, opportunities to expect on have built the opportunities business. XXXX over to insurance capital a on the investor's comments for favorably cash, After With investment investments free We

Mark Anquillare

catastrophe you, with estimating, contributing insurance and remote standard planes another strong had imagery In insurance-facing analytics business, repair we Thank the cost our all industry growth. to businesses, quarter, Scott. programs, modeling,

Let several future. for data new and sources growth areas top in us to line position the that update me highlight a growth better of on drove to initiatives few you aggregate

the analytics second in of in Our uptick claims half XXXX. businesses, experienced nice claims cost growth repair a and estimating

insurance new analytic concept. in a our been to customers successful experienced opportunities use cases, accounts beyond also fraud during tools compensation broadening information, these surge as traditional about these aggregating the form major such of administrators. solutions business, take licensing our self-insured multiyear our and workers' some most and analytics, claims bringing of a third-party additional prevention entities cases, our have opportunities In expanding as by business. We extensions extending insurance in contracts, instances, antifraud paid our We've XXXX. our start on optimistic We're but proof business, of several in companies

[indiscernible] Over a past to couple automation customers enhanced This successful of proven the and increased has invested years, to investment customers. our as provide attract we we've pipeline. implement new sales growing and

the to commercial property. document learning business insurers machine residential imagery damage affected, people fourth for the one aerial helps in regional response information and commercial that process the accelerate buildings, remote proactively quarter, Southern its homes the to and operational and and technologies During and to harnesses collected of provide capture provide deployed estimation sensing Geomni, efficiencies our California structures, Imagery about hubs restoration fires. helping protect and areas

programs, to can customers Exchange and are data the use use a usage-based metric Honda reward drivers behavior and filed insurance new with mentioned with quarter. will we join Data Exchange customers, behavior. As for use Insurers states. earlier their thrilled that signing the rates Honda geographic of the Geomni, designed driving Driving Verisk his access with Verisk or coverage. consenting Honda's safe an cars. XX to Verisk from can owners connected approved building significant Verisk simple driver have Verisk from We exclusive Honda provide sign progress in analytics agreement driving comments, that Score, in Scott the scores advancing Data were the data the typically the today made to in at

million total Data market This participating share to XX vehicles it's The cars, telematics a to help increased Exchange miles the each information exchange with of data. than remote and in the close month. has Honda, addition of broader more key customers. now of States. find billion With Verisk information devices, at homes, sold information growing United mission mobile component sensing insights data is includes X in connected our the of And vehicles This to the from automakers of aggregate remote driving to connected buildings. sensing our XXX,XXX XX%

research AIR our insurance. an IoT writing growth long-term homes, homeowners' expansion efforts data of our our International AIR Lyft part important Limited, plan. a reinsurance assess expansion using continues manage to reinsurance has with business. catastrophe for Company example, improved underwriting company, for has or of portfolio is Reinsurance For collaborated connected shown with customers growing lead opportunities leading as our international results PICC its better Chinese and risk to

ISO's Another clients flood international benefit The our along front cloud positive typhoon work infrastructure with a Japan progressed and front-end Sequel's was with technology modular integration on assessment Touchstone information capabilities. with management of acquisitions to Sequel In and from has approach the our allow Sequel, cross-sell with as features of conjointly well our enhancements inland customers enable gained is seamless The AIR. to product underwriting data acquired to and newly the visualization introduction model. AIR's will international transfer and of Japan, have Solutions. term, modeling business goal platform Verisk's existing our for we integrate new Specific intelligence longer portfolio model new Verisk smoothly. immediate as to exposure businesses by tools leveraging to customers. Sequel's This

in the opportunity also are let serve by we performance Sequel in insurance analytics directions, evidenced leverage Lee the quantitatively, over results. to some claims an All analytics are the with and qualitatively customers. at existing Sequel business pleased business. X of our working our that, to cover claims financial call to me With for both efforts integration to turn software all, Our U.S. our as

Lee Shavel

Thanks, Mark.

honor saying me have and this by serve great is opportunity to company to what and and for shareholders his management and an it to start its here Scott me be Let with the work team.

quarterly and understand two, past to in implementing speak to spoke and areas, meet discipline; improve Scott in demonstrate received. operating a months on that voting end, about top communication with for investors, XX% representing the a of enhancements reviewing active management improvements As many be of we'll to wide a received and shareholders. active both a transparency XX mentioned, but first quarter and the perspectives, or interest I've our the topics, the one, X desire opportunity of came our better consistently, of had We XX I've areas the feedback earnings variety across X for our performance structure thoughtful XXXX. up directly we'll that performance. of confident financial presentation our of provide business XXXX that our are the will and based lines, In And consistent other we company's I've considering I'm capital

Moving in the on quarterly comparable basis. on a the in revenue a in growth constant-currency X.X%, or the from deals XXXX of of Sequel and consistent constant-currency performance and of quarter. like acquired contributed Day, would growth note the and expected. in organic Organic August to second we in we at the that revenue X solid basis in I had as growth. for moved of combined with margins to long-term momentum quarter. first revenue for $XX from the a acquisitions, guidance I'd million expectation of total XX%, quarter organic with half. an the was Average focusing X.X% haven't half, $XX X.X% the LCI, revenue increase the financial growth second compared key million constant-currency around X% half organic financial X.X% growth our acceleration organic results on substantiating into the of GX, and that all basis, quarter, a very on XXXX to X.X% growth discussed third year-over-year fourth was demonstrated start quarter was and level by high two EBITDA metrics Verisk the at Investor the

year, recognition the X.X% Argus in particularly full X.X% on our of revenues required, delivered and contract XXX, growth first the accounting on XXXX. quarter and be constant-currency the For result quick note organic reduced targeted company XXXX, side ASC level A the a as revenue at new as the from adopting below WoodMac half. in revenue at first of of revenue basis, will headwinds and the the Verisk that standard, expirations industry

our to impact results. to be We immaterial expect financial the

organic So breaking down the revenue growth.

in particularly, $X will good solution estimating business insurance Even you million Decision in Analytics Table repair and this in financial in and Analytics growth cost up the X.X% the severe X organic contributed into growth see growth third organic about our insurance primary growth in the and improvement analytics of As in cost press Decision X.X%. and, solutions energy was to quarter. over quarter, growth quarter XX.X%, with in claims underwriting the at the imagery-based to solutions, fourth revenue. estimating third from X.X% demonstrated Analytics release, contributor this excluding strong in revenue positive also. The on was revenue, the Decision with organic weather an quarter repair fourth spilled impact

the Given basis, constant-currency was prior energy impact principally note and has energy, of the would for quarters. X a for currency revenue I each X.X% increased WoodMac, growth that, on

are algorithms to Decision business good market We in quarters a typically growth from warehousing which prior reversal products, X.X% the year-over-year continuing strength trends driven decreases in and leading positive, of data fourth number, subscription a of by the indicator. as result share financial consulting be is Analytics quarter, to expirations. of Organic complemented in represented see solutions. our analytical by pleased which X they services, At revenue a was growth the contract delivered media wallet of effectiveness model

growth services contribute it Fintellix clients. in media the GX to business effectiveness, well as with fourth well, in Assessment integrate regulatory growth quarter, year-over-year from X.X% to in underway, the has as quarters continue programs the annual XXXX. in growth revenue. effective in each solutions which roadshows X.X% insurance believe for period, X third competitive decisioning the Organic new growth the We new Risk basis insurance contributed significant underwriting remain was XXXX opportunities, revenue over EBITDA and organic growth solutions. quarter of confident and X.X% in a Organic notably. that by investment demonstrated to received products and increased analytical up and solutions in benchmarking, have an XXXX. X.X% will the increase growth with LCI Scott product internal clients, also win and progress industry-standard cost joint the as including invoices solutions, of to most the growth Geomni continue by we that SG&A by described, revenue of several for quarter financial steadily subscription of and organic reflected continued year-over-year sector. organic new in expense was on clear driven driving X.X% been well generated compared We result of in having also and in as algorithms

year, cost organic organic over several growth. in investment revenue and was the and the relative full compared WoodMac growth Argus X.X% EBITDA growth the XXXX of For of X.X% opportunities of internal to growth at to revenue targets also continued below reflecting growth growth SG&A, as result revenue expense year in X% and

impact organic initiatives, million I'm and from XXXX, of in from of XX% On in quarter from impact capital operations internal prior the for XX% Depreciation impact as from organic and -- expenditures EBITDA higher and XXXX, basis, rate XX% margin reflecting XXXX, periods. EBITDA -- essentially continuing XX% investment was XXXX, for up result the than XX the million sorry, margin slightly grew revenue at acquisitions down a amortization XXXX. up the both Excluding an quarter, up $XX $XXX of of increased of growth in the the was unchanged. EBITDA related year to expense organic in acquisitions. Adjusted the was primarily

$X of $XXX of the from XXXX, amortization fixed assets the expense million expect from $XXX X% year in XX, and up for and $XX in and to amortization was of XXXX. million intangible about We billion million million at Interest about $XXX Total December XXXX. XXXX. quarter, quarter, asset depreciation debt prior $XXX was million down XX%

we at X.Xx level leverage X.Xx, and bring end our Our to expect quarter time. the to back leverage over fourth the of was our of reference

equivalents cash the $XXX and end about were million at cash of Our XXXX.

We adjusted quarter XXXX. of primarily recently prior net in fourth the reflect was periods of up and the EPS for benefit be $X.XX $X.XX continuing rate increase year XX.X% naturally, tax XXXX, rate in and a positive for XXXX. the for revaluation in The both liabilities XXXX was tax an XX.X% impact These negative to resulting from full tax our the deferred enacted from year in reform. tax between operations effective a reported our estimate the tax rates XXXX XX% from legislation. of from from up $XX Diluted Our effective $X.XX effective the quarter, reflects, for quarter XX%. and $X.XX million

from shares prior was the quarter, end benefit count reform of Excluding in share the from the diluted the XXXX. was fourth XXXX, up was and $X.XX of $X.XX share up X% the for diluted average XXXX $X.XX EPS XXX.X per for tax quarter, XXX.X The diluted at million shares. year, for adjusted share million our count the quarter, X% and

decline. of care of million revenues $XXX aerial to share capital XXXX, of to excluding expect share of continuing the operations sale in cash including million X.X flow. $XXX X.X% XXXX. the we $XX.XX. taxes by activities XXXX. a percentage Capital million from in from XXXX. had million XXXX, of Net the million operations to to $XXX increase at XXXX weighted that expect cash be $XXX health of CapEx shareholders investment continue million flow $XXX authorization, million capital from business remaining XXXX, XXXX. in related of our paid for XX% was an XXXX, We steadily price in repurchase under provided XXXX, were Free repurchased for to peak reflecting we from as repurchases $XXX investments shares million we and XX, We will Geomni. XX% after and a primarily million up December imagery for in XXXX, At to our million anticipate expenditures continued average a in million return total Moving $XXX up increased continuing in in Subsequently, at between $XXX operating Geomni was in expenditures $XXX $XXX in cash solutions

in part the in exceptional revenue progress certain organic in WoodMac in with businesses as and an revenue growth contract energy severe targeted the of the particularly demonstrated second for third continues strong helped returned generated in the summary, to the growth quarter. decline FX saw at headwinds half cyclical to in our targets, Mackenzie, both organic Argus. of year part in in Wood by first growth second challenges Argus level by our half, along if second revenue long-term the insurance at results So weather sector the of our resulting and in the XXXX from We XXXX. some We confident with half. Both expirations reflected performance remain the improve at in we from growth business,

about the to pleased investments capital We're strength to have are structure We we and drive term. financial our with to that remain We invest, the support opportunities long-term excited for XXXX looking long plan. the growth. confident profitable

[Operator in And We operator continue to appreciate the for and to interest up the with all questions. the open line support Verisk. Instructions]. ask I'll that,

Operator

Instructions]. [Operator

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

Timothy McHugh

separate the about the of I the essentially. just first, programs? elaborate kind -- more bit insurance from guess, to, being industry little the ask talked Because one, it for why, in a I think guess, take of standard on the pricing, environment related the like, kind approach sounded industry. somewhat past about cautious you've I Can pricing comment, capability your I to

terms And on anything about how that. significant just what program? be elaborate the drove [indiscernible] that of maybe So in might

Scott Stephenson

Tim. you, Thank

but progression end. Let go folks through the me of be start not with a as we particularly XXXX. course, our significant will It's year-over-year effect, watching

not as just talking We're we about just was this, that visibility for it. reason material It's -- So to businesses. their did the accounted the points. they effect. in business solutions. that's very of everybody, our were I the to there we growth that is the evident of have round suite we basis And into insurance insurance where of the in hope far, have wanted so note a total and we've by own And it cross-selling exited customers 'XX, most our thing important our the of state

where of we in suite the And other the facing a little leaning decision insurance our And we're about the take XXXX. a made towards bit at our to so, gains essentially, margin, parts going customers. more we're

So all. out because call we highly note at for material. It's item it We that a we not to just report, just you. line but not it's a wanted to wanted it's big effect it

Timothy McHugh

just Decision And that's forth? the about of were you standard, industry clear, not including so -- Okay. broader to by be and kind driven that Analytics talking just insurance

Scott Stephenson

That's about we The overall the insurance item was business. within talking our line correct. industry very standard suite. I only -- insurance about feel good the overall

Operator

And your the Jeff Meuler from line next comes of question from Baird.

Jeffrey Meuler

just EBITDA the comment expanding guess, questions. just in related So on I XXXX, margins about two organic

the transaction the that margins? with you us just So reinvestment headwinds is the that before give up can in then also of you can being so, anniversaried XXXX the the of And acquired/deferred XXXX of any revenue regard magnitude roughly some reinvestment? some and of help effect lot size tax acquisitions There's savings? And prior just if expenses. acquisition on pieces a sense of moving in

I size margin organic revenue the reinvestment? So on is, the -- And then does if please. outlook, the up first can you or organic pieces, question include guess those help it two us

Scott Stephenson

Right, bump to it start, Lee. Jeff. I'll over then thanks, I'll

of whatsoever. to that organic So statement organic is EBITDA tax the of exceeding any revenue, about projection effects that with the respect before

net is business in total. we're the that the in of investing So doing that all

With your Lee, all you to that? want detail of some respect And add question. underneath, the to so that's do hopefully, to anything to responsive

Lee Shavel

tax think Yes. I of benefits. of Jeff, to so reinvestment part the the prior question the is

the investment are our for business of as core think expectation reflects we so the in And EBITDA initiatives. at the organic growth I growth kind the looking

with comments, at saw, in exclude that's the that to how where core quarter. I organic in to XXXX, the to impact what as make like investments. as had regard on And acquisitions, that's you year-over-year that, the acquisitions organic one, will margin when expansion to. core into the predict But How acquisitions that impact of from focused performing? to really what we're we you've of what We'd contribute because actually we're we is over how overall those business on EBITDA will that then is currently managing seen indicated those the their the improvement really margin, once It's is margin. focus investments expect are initially, the we we a we're fold. EBITDA in dilutive fruition will have -- the of the organic is does come of Secondly, that reach margin my expansion Naturally, as disclosures, investments, what really provided the that impact, an is, difficult businesses we performance? fourth over the margin some acquisitions, of the level but time on We those on focused time. as EBITDA And performing? see

color So hopefully, on organic margin some the that you gives EBITDA question.

Jeffrey Meuler

the the or And at an That's think, there's I on growth services I -- organic Investor client a 'XX outlook, new today think, yes. comes outsized said Day was be Scott, grow-over expectation, was it there onetime then that a your about, was as effect was -- the XXXX then year. Argus in you should Nana think I financial And a moment in large there helpful. online. from And his question head where about revenue nodding a a comment

even expectation, the organic has year? growth XXXX Argus, an outsized is So including that

Scott Stephenson

Yes, it is.

Operator

comes of from from Barclays. the Yes, line your Manav Patnaik next question

Manav Patnaik

said revenue guess, I in moving growth you XXXX broadly on, a correctly. 'XX. in Scott, I heard guess, than 'XX. lot And first I comments. and would bigger be The pieces wondering I insurance, you was think, I answered of, question, organic that if just

the -- with growth, the in you in you'd a long-term walked through organic second set context, out. half Lee, line range Just that also obviously,

pieces front of put in think So guess, just I laid call, all out of should those moving we trying exactly? you to 'XX the how

Scott Stephenson

Right.

So item because again, this do out one was called programs. I My of Tim's part it's related question And industry-standard as only we and about price moderating comment separately. well. line only insurance that what we increases that's it to report insurance, a

to you impact. a immaterial So see it. get relatively It's

well very as see is in the insurance, With which on clear is everybody a 'XX all respect that we that of we as hopefully, we do year. the everything So positive sum as DA in that. that do insurance, things to both

only to insurance respect comment, to is thing little the respect a 'XX sails industry to premium there of even is taking programs And in be place with add more should that because will the hardening in in 'XX so the wind that, standard the you with my insurance. our in environment

of in factor So saw we you actually macro will forward extension 'XX in go one 'XX. as that a good latter what 'XX, be we half see of And there's from 'XX. positive the as

Lee Shavel

that offered the first, though X% even making, I comments quarter, have to if just Manav, that, look and some fourth set out be that targets targets both X% we we've was continue I EBITDA we to revenue the think, we the of the beyond expansion that of at and summary So organic have progress to those think address to you I at the WoodMac achieved that is at made growth Argus.

our the on we discussed. -- the those feel of that in something elements we about expectations factoring all continued for XXXX. so And us there positive continue that deliver clearly, is to ability upside is in And to that

Manav Patnaik

And then phasing results. organic the making which of in some investments of it. expect the time and on my are more we Got of should question just sort second is these you

weather So when home, start the with you're obviously, telematics, But do other like sounds talk some you you that seen all connected see we you've activity. things return giving Geomni expecting? about, these of fruition already the extreme

Scott Stephenson

Right.

add of insurance things care start important that So of just is our here. is highlight something theme one new insurance say Mark, and pulled that to want And is inside a vertical. forms I and both represent outside Because you of types new of telematics -- outset the in application very the of for that be can Geomni here data and decisioning. data application business, anything. to I'd vertical. of have And types from also both the let me that to have They in like if that those the

I in that grow but expand forward, about we're see is we're going inside will of believe vertical, in go will think insurance the is to believe ways also themselves how mostly the that they what what they other to then will first we vertical, we you as you'll as monetize I marketplaces. investments find both but see making, express that -- So

of So that's kind the general here. story

Geomni fruits then. of Yes, now investments the seeing to developments. down the we're your So exciting write back very question

that's what are realtime. dollars you'd one, IoT that, There revenue going for reasons front, are it's encouraged absolute others. a Mark, the by progressive but the of highlight generated like more by some amount add which We're to IoT. I'll so And on really terms very see we maybe, to be build of in of

movement. showing that the the about talked very leadership feel I we we're category. pleased So very, that car in connected with

total is the at their the are leader for trend. We a category. United cars grow turned fleets the a cars a the States, to But essentially that existing rate over that It be have for while percentage automakers of connected in longer-term take and of as which will all of population cars in the all to natively connected. the

auto a some the take the machine greater may big car wave you long off associated a wave, take value is, is of -- of of moving of than washing bit but in some through be ways, little that in steady kind faster, home, effect but with wave ways, signal a the the slower of of a a little in you be or some that's slow So world. that bit signal toaster. in the it's may IoT a The because that a off ways a the or value

build. sort but think Mark? Anything to are we And kind -- of a it's add that, long think It's I I of so a seeing it today. IoT you want to IoT a be longer-term will building, --

Mark Anquillare

At paradigm and And think importantly will rating underwritten we it's vision think determined. I I that more automobiles in to I shift people that said. to the premiums as well the the all is bespoke their help for today, information a scores. about internal little own kind perfect same bit and every of it's behavioral so little every bit it's the time, to modeling insurers and about claims, vehicle a how are have mean, person. hope

Operator

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

Hamzah Mazari

increases is with XXXX My pricing. WoodMac mentioned broadly But just know in on first also cross-selling not significant. you insurance I price in on piece, it's potential some minimizing the you pricing. question mentioned and on

you speaking, the long just of and for underappreciated term? So you here Or view share guys lever broadly cross-sell? look lever pricing do have because pricing an is we huge market it just high is very business as as not a

Scott Stephenson

Yes.

price So the the making year, relative in ways. is and part year-over-year. up which in we're we degree XXXX. our me insurance I of in mechanism in let of Pricing part of every our XXXX what use even two and this But is one the a do revenue in energy. that in of insurance progression noted to including part in state in energy, of pricing

all to be, believe is XXXX, add sure please in that be relative And concerned there for I environment customers insurance one Wood price I Mackenzie's yet the hardening improved. hand that. to So strength generally the evermore that is, has XXXX, then to on commodity and opportunity as stated. the cycle cycle reasons The note would to where more I will that continuing to

even I 'XX. in -- the be So the line 'XX, there price effect with in it than is in effect. And differences. was 'XX. will believe 'XX, there will It's noted it 'XX be a in I was stronger price relatively what in

Hamzah Mazari

of guys give that and in rules? Do us CapEx forward you down going reform tax you what Very XXXX savings in to helpful. XX%. are tax a reform. remind remind on impact in to Could XXXX, the And a reform. from -- question, just tax Lee us And for comes know reform? gave tax or XX% pull you XXXX us is I on you you heavy more because cycle through I little CapEx detail that, maybe a Just tax Could rate, follow-up tax relation cash the book guess.

Lee Shavel

Sure. Hamzah. Thank you,

question on regard So investing of has I our view we life in we standpoint. and no, timing, expectations with on each answer million projects in U.S. to your that business that natural tax think that $XX rate, drop them reform impact the And additional any rate approximately those resulting the of so XXXX. will whether our tax flow from tax anticipate generate from a our their as the to answer pursuing of in is would incremental CapEx the an cash

So front. anticipated no on change that

Operator

And line question Tong next Sachs. with Goldman George the from comes of the

George Tong

You XXXX at had organically. half in your should similar a insurance as the overall second pace indicated XXXX run of growth

strengthening from from Given 'XX the some the catastrophe of strength expectation you'll other within incremental came of modeling, areas half in that the weather-related second insurance? is see

Scott Stephenson

that. want on right. I expand to that's Yes, Mark, if And you know don't

Mark Anquillare

from I tough the weather across think good our point. businesses. It's the did we severe of benefit weather. predict so your we pretty future, Clearly, all severe to feel in note I customers both contract of XXXX. But strong were like signings, pays of I feel and benefit. think our at that ultimately we engaged businesses end the And are most which deeply with

Scott Stephenson

Mark started that remember side the on of our claims comments You'll his commenting business.

So is for to impacts. weather that severe in is that example, related there's not actually lot that, a

the we do in seen you've on rate as half insurance, in everything 'XX. across solutions to insurance And organic portfolio of second at of see performance broad the do that we yes, look we the so growth of revenue and

George Tong

then obviously might you in when a And acquisitions realizing And company? as in to secondly, you number integrating XXXX. acquisitions, the on it Can be helpful. these margin-neutral you've your Very made it. relates Got elaborate to of acquisitions particularly these synergies? to progress expect overall

Scott Stephenson

Yes, so two actually yes. questions. you're asking different very asking -- you're And

So the well one are hand. them is in of integrations

You'll three categories. remember sort I commented the of on different

needed the we substantially success relates the -- quickly up keep test the feet really where it we regional had was earlier move So fourth using it quarter of in in really achieved. of is to national was with had put a the out capture, businesses. category That -- image third I where some recounting to because of capability there's we had events. as moving quarter, a keep we our XXXX and had integration fourth we that set to where capability And create of to of to to

integration And business. of -- that the substantially achieved. do a point, so fixed-cost the we just At function a margin of what not we've progression but that, I growing demonstrated business. been has at fixed-cost business, think a It is is it's entirely this Geomni really

ripen. naturally will margins the it, grow we as So

question likely longer-term that margins and asking were about acquired other of you businesses. was intermediate the progression at the The

across of nature PowerAdvocate will that in of the the reach acquisitions And Verisk, but the in are handful profiles tend be level a But level that of test don't were margin move incrementally, before, as and example, Verisk. their the what in businesses, have the then absolute for to not that rest we to positive. they we of of rest necessarily we at growth they do more to the They're those smaller With margins would EBITDAs we direction. more talked already their that hold the product and organizations, mature the of the grow, expect, there's Sequel about good. will

Operator

is question Wells line next from your with Fargo. of Bill Warmington And the

William Warmington

and in So are a like There They And question automation. to Lemonade. Verisk compete, automation interact and for Pie catchy you see? and number Insurance with underwriting. collaborate, of how does accelerate these start-ups on underwriters have some names, looking they start-ups? a Do tech wait

Lee Shavel

start to there. happy So I'm

they of couple InsureTech's was tell where customers. a risk-bearing they amount more instances cases, two many Scott as lot spend of us There's right. they actually are wrote there's these some I will in from first an with you you, on should than think, actually all, the types, I perspective, And understand a are in entities. start-ups, that highlighted, There's premiums.

they as are us want analytic. become So upon good relationships, those and very dependent they're very to

have think that I with other we of frequently, actually blossoming really or well that And is customer of a and in are that the kind world. lift most ones have talk question of a tune usually at I around little your And environment the world now. very are door. InsureTech very two started that is our think get we bit or to

a highlight, on R&D. of, of think a ultimate kind customers, of I be InsureTech. We time lot we the many spend lot lot to cases, think believe our like to I'd in ourselves a thing of other and this. do We The I

in around of a that some lot and is is leadership well have We think with that methods, analytic that ideas customers. with I of thought cutting-edge share some application, application, And something respected. search we

William Warmington

my second the win. on Honda congratulations for question, So

the guess, have tipping for point when do more hit share. question my You you I XX% adoption? is, accelerated

Lee Shavel

again. So that I'll do

Let to try highlight. me

a as need going matter over smaller for a is time, cars I focusing What the of today. that information. to all fraction transition have, of think the to most of do, part, most we on is as are now -- source fact, we and connected industry insurers cars that us not

but the we the next about combination which the years, the to So also X over vehicle think I information through connected XX car be get is is and behavior the and of way a relevant the devices. car, to driving very going

Your phone has a lot of information. pertinent

with a X be to believe You insurers in. what premiums looking of some pricing are and that I and rates And it database to over opt-in But the tap every is I ours, will information, months, change. This and will form, driving service. was past hope to understand that behavior to type opt all ultimately, today, that decision of models fine-tune underwrite. obviously and pricing build

we're I the will think insurance, well positioned. way for that's rating and the think we paradigm shift

Operator

comes Kramm And line with the question of Alex your next UBS. from

Alex Kramm

the want come to because, pieces. still the a margin bit quite frankly, with back little I to moving confused all I'm outlook

investments margin also be incremental impact I Is down is of Or decline? like overall it and guess, the you bit. should would where just sounds it mean, story? any we magnitude margins? the the out So, a be organic little you also Lee, be it acquisitions, together, I all really can Assessment but a margins expansion, should the Decision mean, Analytics when roughly the helpful. kind about of give comment Risk So I the shaking put for

Lee Shavel

Sure. Thanks, Alex.

and kind Alex, on it, subsurface a comments, margins the expect, EBITDA of Scott's and in summarize of described. the should meaning the of chemicals the the we've and is that, XXXX, growth the we Geomni initiatives business, would is at and that our that that organic basis, business WoodMac organic I and And total combination core building at an off others way the So expand.

WoodMac in overall growth will growth And we to to us Argus, growth. function revenue target that achieve to continued and and of continuing the revenue organic EBITDA so enable improvement in X% X% the believe, excess of

to net difficult a are of up from achieve of extent end can to the impact, we acquisitions standpoint of coming will effect overall that's more that obviously, to the balancing on. being margin variable anticipate, terms the an is relates it some organic that the by a impact in offset As acquisition and what expansion,

leverage. more EBITDA time, would all we our that business, are making is business. at, what emphasize to we you the the have look that over focus so then acquisitions And that we're of around to that core similar great trying so margin, the that And I meaningfully operating progression organic give see can in

And so growth. their excess EBITDA to in in organic expect that they contribute revenue growth those that overall we of will businesses

becomes you're know X. net on So is impact hopefully, between the is that that impact the the for that answers it. probably the what I acquisitions that net whole, to what but looking

The we important folks want EBITDA feel to thing margin, focus that which XXXX. organic feel we that on in confident, we expand is will

Scott Stephenson

just hear have messages organic one that, And growth organic with And to that Right. was organic benefited maybe tour and progression. Lee like then that increased EBITDA us emphasis emphasized clear engaged revenue has results, was that the very to our I general, of about investors, would talk investors. in from to that with Lee add write listening upfront and we the our also

hearing in organic us emphasis the to future. us this contributions year make an and they they'll contributions about line the on bottom excited have of the have. because which in But our also, And to about we're more And But contributing top and are so you're a part to of hear excited like investors the what we're told going they'll the very the that you're that's as our presentation. acquisitions make XXXX overall company.

Lee Shavel

to Clearly, we certain the capital the around of to has financial or component financial thing It's with we in a returns from add performance. "Are has let talked the capital addition And to a I've make Investor impact a financial that good on returns at of because of investors, we me lot entities overall, standpoint performance that we but concerns. it on that disclosure want the the build one just be provided focused want to there in for be, business?" I as not Day focus acquisitions those about on allay the -- the generating any to don't

And be around enhance so XXXX, I working those where think that be that we'll you'll components. will to something disclosure see in

So just point. that wanted add to

Alex Kramm

All right.

shifting maybe a for And then forward guess. Looking second. to disclosures secondly, then, to WoodMac I more just

at think again, it highlighted I post fourth think you cyclical kind Investor I of -- but at renewal energy the in the some the gave cycle kind like and beginning, challenges last commentary I you was of think Day, Scott, the quarter market.

you tells if was transition XXXX, you how the point we'll So a little I worse more to then going But that went? is renewal be where to about business? you just think And me maybe, the speaking? can said last forward, renewals. to looking but is now this it fastest-growing XXXX us, a get do bit be Or it like year, good how behind add generally maybe color still feel WoodMac, the can

Scott Stephenson

at Investor of terms in substantially thank you. correctly the message Yes, you me Day. And got

Let you it for a tune me just little bit.

there renewals first are it's of typically fourth -- are and lot case So WoodMac the the the a there in that with quarter quarter.

of carry the progression So through terms the quarter now and we're right the just going a in we always went of through subscriptions of fair meaning quarter amount the year-over-year.

would the about whose the report I which are the feels, the overall. renewals say, There positive negotiated in larger heard was the middle some you've quarter, same. now. we're substantially are And of right So quarter which being fourth first a customers quarter,

we want you of for correct do. And progression watch consulting XXXX customers' that. also I to be Investor tend that that which and signals leading emphasize the round we But lot Lee a you which substantially positive everything Mackenzie. one me out to appetite indicator terms we there Day as a moving through Wood So we're me. in referenced of a then our from of got at can And into are heard lot, revenues, is XXXX. that of yes,

we be 'XX. into And of to commodity I all product even believe effects about was believe to 'XX more be year us mechanism to We think as these cycle frame. therefore, we're will the it 'XX that removed 'XX, in and of 'XX, do I 'XX that, more 'XX, because opportunities 'XX use price enhance we to will be just removed 'XX, new certainly available time in will price want and the opportunities, that from I that. saw even how choosing more we get to the want X just well new sold. 'XX than the thoughtful in And the the the that the mechanism addition in be 'XX in cross-sell products from cross-sells.

Operator

comes the from Andrew question And next line JPMorgan. Steinerman of with your

Andrew Steinerman

know reinsurance of wanted percentage revenues I And that to Verisk doing? insurance related revenues to of what segment is insurance are how clients?

Scott Stephenson

you on? to Mark, one want take that

Mark Anquillare

Yes.

it of was first world, So some the the as a soft under of on side our those across -- pressure. were of it for cause -- did especially What when those did us to a result think modeling we that X, I and consolidation against what industry reinsurance more lose premiums, mergers. highlighted customers. become experience, very X major all, our lose times XXXX, couple of reinsurers. some a that led meaning market, reinsurers in we to revenue And It cat a did few difficult was was

I sure that I'm reinsurers, an piece programs, answer modest. use would reinsurer I industry-standard have not for well as as insurers, you. it, the ISO, So or in exact the rather say

inside little a business, the we at that's modeling minority that But material represents our of where all. XXXX. probably wouldn't and that experienced in I cat back of rather revenue, call headwind that So a of substantial

Scott Stephenson

XX% add, said it's I of can -- When do you said Mark? than When less everything we insurance. just across you

Mark Anquillare

little to be I trying absolutely. a was everything, Across specific.

Operator

your Merrill of Ridley-Lane America with David And Lynch. question Bank from comes next line the of

David Ridley-Lane

Sure.

an Just value update on the fourth you give you comments contract in following of trends annual quarter. on saw if some around I the could the WoodMac. that us up wondering

Scott Stephenson

business really for was contract our overall. cumulative the and the signings. of before And about There is progression question, of comment a thanks that the effect

fourth for the As all annual you XXXX. quarter progression agreements, the -- of in the signs the reported the you're which, is but pointed greater result, in multi-year out, outcome values overall contract WoodMac know, than effect seeing Lee substantially as

progression the in of So course 'XX. because is effect it we're renewals the and got has that XXXX, signing of over the of that

trend. So it's been a positive

David Ridley-Lane

Financial you Day, Investor And mentioned, then X signed agreements multi-year believe, at in Services I the segment.

a that in if Wondering all is had another had quarter. card come the to those or fourth in if win obviously, You, contracts started in credit to quarter win XXXX. -- yield the fourth revenue

Scott Stephenson

'XX. in come to Mostly

Operator

of line from Soleimani from next comes your question the Arash KBW. And

Arash Soleimani

at when could look to challenge resolution Just improvements satellite of the offering? extent first you Geomni's question aerial in is, imagery, that what imagery

Scott Stephenson

Right. and miles degree that you time, any the And of We it's are never risk likely intermediate any at period it to substitution get of the be don't substitute. a object on earth differences, a of say, X,XXX miles and Two see material feet the from, that opposed face reason able actually will of image an in up geometric. up. one when imaging of precision the your to you're major is as is

dimensions. that, able you it able need and X three-dimensional miles oblique observe you're both to to view able do is anything. to structure very be miles to difficult be miles -- an away, but to it When of And is do you and obliquely. to to what be image in also get So to orthogonally, oblique have

you're So which that's to capture, a going function miles looking have not than and the of through atmosphere. first Basically, atmosphere, any is with And that the point. miles miles point the if second deal different the and is properties to has you radiometry. of signal looking through

do benefit is same face you the that day satellites. of and couple satellites can potentially of a potentially on now that a times So spot the with have earth the one image

to it going to something wasn't it to that's inexpensive, of have the satellite -- as commands cause have actually image and to specific, not change otherwise because as you Now benefit potential frequency. do if easy but to the not actually you for you have that, it's the that do necessarily

observations. of we the there giving to substitute. customers, to that a that of general give with the answers we is need satellites, think as can set laying global they kinds So a you that of a our in But in don't the we of we're terms see for sort precision foundation of help role comprehensive satellites

Mark Anquillare

And phones and of a images. drone, aerial, I'll our other maybe ground and set your it, solution just addition, type friendly truth, includes call satellite,

So we are comprehensive in solution.

Arash Soleimani

mentioned Should using be Okay. Great. different still And to just the quick amortization? numbers I something rate. we you slightly XX% question. for tax know XX%

Lee Shavel

I the use would recommend you intangibles. amortization that the of XX% for

Operator

And your next question Morgan with comes from the line of Toni Stanley. Kaplan

Toni Kaplan

want in ask a I way. different the to margin again question

me That So EBITDA. you rewarding training with budgets rolls so impact and the the and savings. tax it to sounds that would doubling employees into OpEx, mentioned like

includes want So that these this just EBITDA to extra confirm -- organic spending.

Scott Stephenson

correct. these categories does It of -- is extra spending. That those include

Toni Kaplan

you think, be earlier, Hamzah's million going on when I to then of the answered Great. savings, there areas that are Okay. as question And other Or spent this? all $XX well? is

Scott Stephenson

was it? I'm sorry. What

Lee Shavel

million whether opportunities? is Your spent is educational question on $XX the being full the

Scott Stephenson

I The would to vast the shareholders. you, of is No. the put Toni, that majority it tax our way very is benefit available to

Toni Kaplan

the of buybacks? In form

Scott Stephenson

free but available our on or buybacks determine whether deploy it it's invest to how we're Well, behalf of is is activity. that to we'll cash M&A shareholders, capital, flow going

Lee Shavel

on for that and the which across deployed the generate best process be of returns we -- we the business, investments, do use internally repurchases. returns share investments internal will that within see external range where capital we the in is It for the capital same

Scott Stephenson

together I it try summarize. me Let quickly. everybody to to all put realize really trying is

keep me Let again. honest. me Lee, try

'XX that in happy with percent. of of our benchmark We're as second rate stop. to Our growth was X-plus overall. organic overall revenue XXXX Full for the compete half

statement second The statement, is, an that's the we revenue and -- organic statement. first expect that's

talking is, rate revenue about. wealth our rate educational exceed those we're The employees second what organic we EBITDA of our into growth growth, to organic and for opportunities with expect that statement of our all built is and of

Operator

Foresi comes line of next Fitzgerald. from Cantor Joseph question your the with And

Joseph Foresi

really your acquisitions those. the wondering could start and flat? It up. margins reported up, how around what magnitude margin. sounded your maybe I guess the wondering we XXXX, or guess about to to like, comments, wondering of where any by end could reported I comments, like, on in by they that order -- we're model what is determine Are depend expect do you And be sounded our down it or we're

Lee Shavel

Yes.

indicated, So organic margin. we are we've as on focused the Joseph,

expect expand. that difficult to of to acquisitions impact is We The predict.

We that, forward-looking aren't that statement providing impact expectations that a point. any going to our the aren't margins, making or XXXX a have something is. overall it's reported on material We impact for a on anticipate but wouldn't as at this to prediction what is we

Joseph Foresi

the then are FS in contracts And of should nature? in cadence about throughout do the a around maybe bit around, about rolling be you Anything and and wondering, moving some And off? you we expect talked talk beginning. linear? from of margins Okay. could that be and Anything little it you slowness contracts energy on some to and aware that XXXX? revenues that I'm

Scott Stephenson

Yes, let upfront. to I what me said come back

majority That's We report subscription have many the thousands of XXXX. and showing of intact our and across business agreements, in providing what's we progression upfront vast remaining was XXX% in that in year-over-year I was all look are and thousands those as value. The them happening of relationships those, relationships of that, of those multi-year. XXXX, virtually are growth in

Operator

And question Togut the ISI. next Evercore comes from your line of with David

David Togut

expand feedback going to very You've Could one you post how been tour. expect of to you bit toward number top investors terms in highlighted they've that allocation capital Are capital on forward? change of discipline going your upon and you management going a buyback listening forward? acquisitions. little Historically, your priorities buyback toggle as from point focused the more

Scott Stephenson

Yes.

actually, a So thank to done the higher shareholders, you where to very into largest deals. been for at deals noting we've ones chance has that on shareholders. what those our had also -- has medium Investor comfortable the the whole both over be our of our digits, the always double return acquisition of and which been see time. most done, has and larger everybody we've for the that, capital returning to presentation small somewhat both return that rate for, in saw of we practice, XX-plus-year productive that the Day, program been program lean you period very and recent time we've also over Hopefully, But very for found is with productive been a we've but

fact when So actually are given remarks would together. not sale together significant account those you you the opportunities. it in put special, not Mackenzie, if we're take two put we caught going together you Verisk the what and different? moment, there any What that is with Hopefully, conditions the alert a to At the that with had put to to happened market. companies you in something have Wood that earlier have reference of PowerAdvocate you the remain get which my we is

the any of the the XXXX. to the hopefully, for thoughtfully logic at ultimately expect moment, where program. behind thoughtful capital prices and of shareholders the will be going it's balance real-time is we're And return the to And of going not be definitely given in we course, will that's So deploy expect balanced that capital sense you've over I in the approach, a so capital the in so program. are that you sense Lee it heard to capital to what also we a expect periods market. about make the returning reference it to be -- M&A of make But say will return I function to believe time conditions. it that we're we what that be from And can will case M&A I is think rate that long Verisk invest? what --

David Togut

Understood.

broadly As us could on terms and extent particular? And ventures joint you System market your of a business joint update more card processing in of Argus' the Services, Argus any issuer venture Total TSYS? follow-up, and with in in

Scott Stephenson

Right.

whom it is imagine, expected put fully And in where dialogue course, the as you're in year. today. are the other folks And out what would and relationship of processors sort of all, we're work we we together actually, relationship them. we there the There first when So not last very exactly named And was stand, right. we're with you even all world. on have TSYS with the pleased with

only category. whom was are So in company that several definitely work in TSYS relationships talked we that because of with -- in We companies the a category. about are today large we event. They're category. a pursuit it additional not there is that in that And

Operator

line from with question next comes Bisbee the RBC. Gary your And of

Gary Bisbee

back the need Let me -- go I hate margins. I to to to do but this,

I we appreciate the so to understand guess So struggle the to I course, focus of to all-in, why we think on difficult all I deals. organic, it's project including but the acquisition. model And

specifically. material in nearly a decline discussed, likely initial look persist you it answer the lot we systems that backwards, will annualize not, And on the of them QX, you much second that somewhat of the recur for margin linking the likely it's and lower deal how that short-term question part these? integration until that revenue Can offering. integration maybe to attached doing, into just maybe a versus as but a less out key bringing spending you've existing actual margin and is, to XXX these larger point -- that lot you're is at how if deals your is a So of Decision decline an Analytics, and basis costs dilution had was break in to XXXX from us, looking payments

Scott Stephenson

Yes. Thank you question. for the

costs are reason integration of us. when products about take this you over I that the the me link product Integration of bump have it not And Lee. enduring the second about that of companies buckets an that that talking Let Verisk. And are to then needs a is ways two material. is, kind if three are that and gave you're about we to statement to of part there nature think back part the the now you achieved, be to organizations, upfront, unique Verisk, that them really

and many company the acquired an and way platform, going our solution, if sales have solution is them blend that about we to encoded form solution, of Generally, getting to a find you're on those got. different have the budgets integration encoded thinking this them a just got and we relatively all to integration other code of and to so order you is, And is time. And the when in into One preexisting ready present nothing. moment set base then be those integrate has code a cost now it new accomplished ways, in bigger It's And a the are will you've all solution you're of because quickly. in the you've development developments now now integrated and bring marketplace. leveraging you're together.

Lee for and literal integration question, for costs, yes, comment, now, sure. to So part but of turn so here your the his are I'll is over a There's different it great. not there deal

cetera paid together. you get so to when the order lawyers have in all thing the et and deals the to And do there's moment, in bring that

definitely just are not but there and costs, company So the is we material. sense, an of bought, operational literal that Verisk deal together in tying the generally

Lee Shavel

into is, well in of integration are nature I acquisitions but is as this their we have. One the have that elements. the factors other also and near we're And that immediate upfront these that Gary, generally, to they as so this, we're as that two across are that think so thing the earlier-stage number costs be there going an of predict that with through ability element all companies, term in onetime to dealing tend -- the are immediately performance integration of

then business, capital it as that to should trying into be returns basis overall on organic they will when be able an we'd business. we ultimately relatively the what from efficiency of on indicated, that I -- what the the performance. and that contribute opposed get And our focus focus to creates that impact folded the and we is they overall to as small on is think to that I would those relevant suggest like as noise organic acquisitions. not predict think to We

about with more talk separately. to happy that you So

Gary Bisbee

extremely mean, I lot a reason is a believe thinking And heard I financial Yes, it it. should think in been numbers, of predict ways subscription, But think, other really of it's I'm your sure have to why. the it's reality forward-looking is, tour, and business I'm to as your probably to visibility I difficult quarter-to-quarter of improve companies. people sure have relative you performance. that's This you heard so the you're issue, extreme helpful kind be you that, the inability a big to on about you've heavily

color. the appreciate I So

Operator

Silber from question Jeff next your the BMO line Markets. with Capital And comes of

Jeffrey Silber

modeling interest should I one What know got for question. it's I've quick expense late. XXXX? be in we

Lee Shavel

Yes.

it's going target But to specific around aside, move our So debt expectation. to provided a I just we're we've specifically as I thinking that. not didn't materially. Jeff, want and don't guidance think set levels about

at balances significantly. it think I the the will at rate you historically, vary and think I look don't can

Jeffrey Silber

I yet? Or the the guess, the is sheet on lever that's acquisition, from the balance the And sheet been of -- PowerAdvocate year? balance that on really end is that the at not

Lee Shavel

No, it sheet. is that funded on substantially with the We balance debt.

Operator

of Jeffrey SunTrust. And from line Andrew the your with final question comes

Andrew Jeffrey

I I to businesses. newer, growth you would historical haven't you're talked And about there whether mention relative cyber looking how of or grow drivers whether to risk? a You've organic cyber And cyber. heard is opportunities some M&A something Verisk's lot about I wonder in are a of say, think at?

Scott Stephenson

Yes. risk, not of I'll a very the cyber cetera, it about it's if of, of of what Thanks et highly question, for talk with industry than is do Cyber actually today. insurance. expressed more part may modest premium world, relatively familiar far. line the the moment. the line Those the you dollars start cyber all so insurance -- actually It for and aware at lot It's the sort jump the Mark, and that we -- a is gets gets actually who a -- that line in interestingly, are want to in. be P&C cyber definitely you discussion

and we and We will cyber grow as have for continue expect models. already the line, modeling to line, cyber those a we of customers provide

beyond But an companies even that other will Interesting potentially jump interesting We're rapidly do all question cyber So help two, insurance then that. manage maybe, insurance to X in Mark, free and we to could with line feel we're number is, as for offering? cyber engaged. things one the grow helping to The here. operating exposures questions number in policies. the already us, the please how

want I anything you add to don't So do that? know. to Mark,

Mark Anquillare

think So think language in I of Investor And the is relates industry at a be have as policies. the more I the to highlighted the been of customers inside to we those future growth coverage we going promising where Day, the models. of is standard we it kind have lot

for London progress kick some in in of I'll working historically grow, will side. models, as, inside that up the we well the of of to United but future you that cyber most the years. which refer And States would as used is the and cyber, try people what us. for, made should market the the probably insurers. part, As 'XX, more inside underwrite be great it in being are the there. called to will a I marginal driver for folks growth And of now models, very in more it's some tell that and prominent cat of We've liability some

Scott Stephenson

And And Thank at Okay. forward you. many, conversation, to Well, I of with a you of think follow-up will us. joining out we're you the for very the we've enjoying quarter. again the report of with much lot next be the end many look questions. all us enjoyed to Lee doing -- being

have your time to today. continue a let's thank and for much dialogue, very So you

Lee Shavel

much. very Thank you

Operator

today's conference concludes This call.

disconnect. You may now

Verisk Analytics (VRSK) 21 Feb 182017 Q4 Earnings call transcript