VRSK - Earnings call transcript Q1 2019

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Operator

Good day, everyone, and welcome to Verisk First Quarter 2019 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 Head of Investor Relations, Stacey Brodbar. Ms. Brodbar, you may begin your conference.

Stacey Brodbar

good everyone. and Natalia, you, day to Thank We of results. our joining us a discussion today for first appreciate you quarter XXXX financial call will by Chief led of will Chairman, Today's and President the Scott business. Executive a provide Stephenson, who brief overview Officer, be industry to our our senior and an operating perspective effort with broader deeper the executives. provide In to community offer investment a on verticals to access Specialized provide President an will update Markets of segment. Energy our Anderson, Neal then and Wood on Mackenzie,

Officer, Financial financial as Chief release Lastly, highlight Chief some Officer, can our Shavel, Lee release have been that our this the dial-in. call well earnings days in an X-K about points website will associated XX-Q Q&A. be to to furnished performance. will Operating call key has the referenced XX on by The Anquillare, also found Mark replay as the of team be will The investors join section of we attached on and SEC. our the A website, for this available earnings verisk.com. for

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

over the Scott. call turn to Now I'll

Scott Stephenson

report that off and Stacey, is pleased good to Thanks, XXXX morning, to everyone. a able at solid be to start Verisk. I'm

value integration an working our are see of to was analytics. by our London that broad-based improvements leveraging to are workflow cross-sell. in leveraging important segment. number integrated them innovative the to and accelerate of introduce end, Markets of to the from across which an solutions more Insurance growth our continued Verisk in for new customers, regard most X.X%, and their across recent a to at while to Verisk cross-sell, we was client and Moreover, improving strength measure our quarter of was get we innovation Verisk growth vertical, growth ongoing marked a as products, to vitality of vertical our suite remains first the are early beginning organic of solid relationships technologies success and to Specialized In with the to of and of them acquisitions and the all closer innovation to With solutions family. deliver to by the across new help into revenue clients capabilities To same constant-currency product achieve helping we some creation existing Insurance customers. The more Energy time our driven their of our continued cross-sell market the to a responsive efforts clients This quality be help organization. drive

the assess integrated In and end As Analyze card Mackenzie's prior the markets, losses the clients These perform had an impact This between opportunities leverage about this able reduce exposure mining, to integrated including more is we've cost a to X line regard relationships. time success our utilities bankruptcy Specialized in the it quoting portfolio months previously management you and replicated review by integrations to during LCI's a expanding marketing can a least process. oil industry data these bankruptcy out a Argus and seeing are customer day. accumulations, intelligence that gas of to Wood and leveraging with minutes, talk early strategies. XX to vertical, appropriate products utilization States. our PowerAdvocate, Neal their have customers taken broadly proprietary and United could example, predict AIR very comprehensive much In We core and enable accurately We such quarter solution, of customer detail. Markets, Re on more new risk deep built in analytics success insurers Verisk in to clients through who of as London within filing. at have the markets overall will Financial metals Services credit early to significantly from data where now should with Sequel, think ensure bankruptcy bankruptcy more engagement. enable applications and to as consortium credit our with extreme bank the be into commercial policy active to determine Energy we event properties real

quarter, very products offered This driving disruptive City. were claims Conference and our team. the and segment. artificial resulted well well as Lake account in intelligence The and In as Markets Specialized policyholders our throughout X,XXX computer the enhanced that advantage. now our Neal to natural experts Neal. data with and analytics Energy almost executives. engagement intent cutting-edge turn process Welcome, customer contractors and new The managers, speed insights from vision Insurers call is we is place over and level understand clearly lab the fact, features with imagery over they like the claims to taking U.S., requests industry and included to claims The the positions and XX showcase featured, to of some engagement analytics to around first, customers; of meet claims from and events the and focus solid. maintaining to product Europe. we an image and on process In additional respond of second, chatbots innovation hosted to processing February, InsurTech. enhanced in digitally topics use industry many interpretation competitive enhance a XXX use I'd Salt by digital the product increased are interest language engagement. innovation conference executive automate claims cycle; introduce attendance customer automation our and through engagement better on as engage for increased these hosted vendors the And unprecedented third, customers focused growth. in Elevate insurance in to of and This attendance adjusters, future The remote event and Canada our advanced better to our the provide and solutions to and utilizing on us such demos and

Neal Anderson

energy specialized Thank in are you, the Scott. environment It's this you we'll update give the base. here customer Wood the operates new Mackenzie's customer morning on pleasure mining response focus lastly, you the a to Specialized our business will PowerAdvocate to to to expertise the data on energy our will also and extent And the talk success our higher discuss an business. to performing. highlight and of where Energy be I macro about I and leveraging Wood recent platform. businesses Mackenzie of vertical Lens, analytic which and Markets

the Regarding macro environment.

last As gas falling through over you challenging the to and prices. been oil the the very has industry a years are time aware, few due oil

However, in things. divesting to prior focus oil price the in noncore than free rebuilding in previous gas the key it allowed to above life assets, oil In oil oil in customers crash focus $XXX XXXX. next In turn, prices surpassed cash health a investment to become and oil shape peak exceed $XXX investments. was We our prices, will billion cutting in XXXX amazing and robust industry in seen the XXXX much are future flow and is summary, the industry low-cost, were XXXX, sheets, The them to in long and speed estimate balance now the costs concentrate upon metric. free a drop years. barrel. Indeed, in with has aggressively financial which with returning when better the responded their gas cash capital flow new few

deliver in growth for continued the years, result, X and are platforms the poised X recover markets a particularly Middle stronger downstream pre-oil crash. new coming As years Simultaneously, stronger believe to majors Africa finance we the investment East, and leading team growth the strong to emerging down in demand, Asia. our in price production will

challenges grappling transition customers and need energy energy core by lower climate energy carbon sources. with are opportunities change and the to for presented an Our also

core demand and X have recognize our long to term. in and chemical term. demand primary long become the is to breakout from deliver Wood Mackenzie's renewable energy specially operators, up customers aware, and and the we the global expansion power from the to customers they far continues also strong are data material demand moves support areas, that growth The business you The outside molecule these is energy over As and consistently driver. where likely core business driven driver positions Mackenzie's This renewables. double-digit by businesses oil to medium complemented across traditional complex business. and as a oil delivering our growth customers medium namely over believe double-digit as chemicals helps demand This cry customers from rapid will was Wood established advise and in, is mix a chemicals we've and the of transportation far grown world to nascent, demand renewables is chemical the investment renewables power gas electron. and this. the in strive We strong the continue key by as developers the build navigate its their power global our

drove bring previously to oil on production mentioned, As a the breakevens. crash focus price XXXX efficiency down cost

to cost oil into data Our and analytical to applying through spend diverse major the sector. help PowerAdvocate more unique customers the been and mining and with customers metals able set to is benchmarks. cutting-edge traditional expand its gas PowerAdvocate's Mackenzie beyond customer U.S. industry placed has ideally Wood to business techniques allied sets, utilities recently,

sizes have As result, deal significantly a as margins. have increased

talk late about integrated on production timely Lower which analytics energy that alongside We to upstream platform, customers value develop Lastly, year, to the continue a XX namely offering, the release unique our new I reaction dynamic, is secure, first and mobile, Lens market of chain. to like and scalable, launched exploration would and Lens. the along focuses the work last to data

the XX is truly very quality we still near-term the journey, pipeline at While leading turn is secured paying through what But start the both already opportunities. of of to the call with the bracket we're our customers strong range of results. over cover let anchor exciting which the independents a have bands. customers to financial from to oil under me major that, Lee With companies the much

Lee Shavel

Neal. Thanks,

provides is to to data, our a organic reporting and our would no the website. The have may attention margins. notice everyone's support change One quarterly First, non-GAAP trends bring presentation analysis to that I today. is EBITDA we our that constant-currency that disclosure background, are on like organic measures we earnings you adjusted presentation available longer conversation in posted or

measures stated EBITDA to provide complexity of course, We, best our a to and continue metrics our the the for revenue single and constant-currency and between margin. organic we will investors, organic and health and use adjusted business believe own adjusted margins these have simplify we decided of differential evaluate the we decreased the are to plans. for metrics in growth given as As both our just its EBITDA compensation total provide are overall

adopted new XXX, quarter have and the lease of immaterial. Finally, standard, we income the first in ASC statement was XXXX impact to our the

to of a compared for On diluted GAAP to well number the by GAAP to quarter. consolidated $XXX impacted Net with $X.XX acquisitions for relative grew results quarter been have and quarter. expense income was for in GAAP earn-out of GAAP revenue increased million X.X% net quarter to the same the targets. increase an the a XXXX. and increased for million. was Moving the $XXX first XXXX, performing financial basis, Diluted in EPS X.X% earn-out that X% income of the period EPS

and our Let's acquisitions costs including comparisons, now for which to nonrecurring first of growth and constant-currency constant-currency year-over-year growth Insurance all results organic discussion impact Verisk in an Energy full on quarterly earnouts the we quarter nonoperating On improving fluctuations, and currency of in growth reflecting items. Specialized don't X.X% across strong Markets. for and the segment rates acquisition-related delivered our results the revenue recent year-over-year XXXX, basis, organic focus of eliminate have organic

XX.X% adjusted EBITDA in impact organic reflect While demonstrating reduced both Acquisitions and reflecting margin adjusted to implementation leverage storm below the the some carryover our an long-term the Organic and period. in our organic the growth, the basis. nonrecurring margin EBITDA. growth model prior was XX.X% and still includes prior on and XX for Total from results expansion in was year expand the revenue total X.X%, EBITDA constant-currency of ability revenue and EBITDA period, This margin of margin quarter constant-currency by discipline. margins operating modest absorb basis EBITDA target up revenue in in business through adjusted for leverage. year period, increase organic organic the points adjusted EBITDA reflecting organic acquisitions cost our

Let's turn constant-currency segment organic on results an our now to basis.

reported increased by business, and imagery remote adjusted point balanced commercial and offset impact part healthy performance As the in was This storm our decline programs, an growth reflects current strong some catastrophe from claims, in in points growth revenue reflecting storm impact Insurance acquisitions of while lines. which the Within in growth year solutions Total margin driven revenue revenue. margin. impact personal services. margin industry-standard lines in our cost compensation EBITDA you modeling reduced and XX.X% in prior solutions. insurance was the weakness a in This the growth claims basis repair EBITDA saw and year of in period. negative X.X%, the property-specific XX.X% workers' estimating underwriting prior the was rating underwriting the We to see and release, solutions, solid improvement the resolution modest in by in some higher-margin X.X% offset period. basis claims, revenue and year quarter XX from press by across Within analytics declined adjusted ratings period XX prior the claim in period underwriting

delivered by solutions Our sequential the in growth. year-end to pension Strong and Markets building negatively drove of related increased expense continuing revenue also improvement. the the XXXX core market on and marketing Energy for were Insurance trend revenues intelligence margins X.X% performance. cost quarter, growth research affected growth of legacy Specialized

health global analysis We from also and had and positive our contributions business. safety environmental risk

analytics leverage Energy and the Specialized by to with the the Financial Markets. on and and in offset in driven energy growth our the XX.X% from at customer leveraging strong strong margin Energy revenue quarter, enterprise Services opportunities X.X% we increased management, data by increased earlier, power expanded EBITDA savings. developing in spend-informed delivering for increased XX.X% revenue XX.X% X.X% the our PowerAdvocate customers a be EBITDA as WoodMac more of and across led solid in margin and expansion energy results and growth ongoing the revenue weakness data and can As investments adjusted Lens in by drive our help and Neal cost industry relationships growth of in subsurface continuing we to that businesses are solutions Total have all breakouts. opportunities healthy efficient and Services quarter, by Markets. for portfolio growth management inclusion renewables effective, chemicals, our in like driving revenue breakout Adjusted solutions. our Specialized organic Financial but and despite mentioned

decreased in We continue to year implementation experience prior in Adjusted prior some challenging year-over-year comparisons due from to of total some declined year nonrecurring the EBITDA result implementation nonrecurring, a the also margin revenues adjusted some X.X%, XX.X% XX.X%, and high-margin revenues by period. EBITDA quarter. to

individual exercise quarter and lines. to business have As approach been that steady a transitioning Verisk of in Services bottoms-up the emphasis and reflects an with review a we a we Financial orientation and top-down on growth, this previously, productivity from profitability of both discussed impact progress represents

see repayment We down due $X.X X/X% billion our of year-end XXXX, reported January continue March this quarter time million and quarter, expense borrowings our at growth to of with $XXX revolving billion $XX expect notes potential over that XXXX. year of Reported credit the the as underlying with senior million the in from investors XX, from was from facility. prior X.X% we was the interest XXXX will the debt Total $X.X business at X transition. down more in clearly

Our first was of leverage quarter at end the the X.Xx.

amounts under successfully purposes. debt credit for reflecting and easily demand outstanding to to We capital was million proceeds X.XXX% senior credit access revolving our markets. oversubscribed, and the $XXX unsecured The the strong XX-year facility we quarter, the used repay general investment-grade for the During corporate of our notes. issued transaction ability

Our cash million cash and XX, $XXX equivalents consolidated were March at XXXX.

$XX prior the was both contributions Our XXXX up XX% count. amortization in tax XX%. net was be expense This and partially software rate. the rate by the lower reflecting organic for share Adjusted from and the prior maintain Net prior and growth first $XXX year. operating due for businesses year, a the represented the of the the were initiative effective in from up and quarter, from the Capital as depreciation million quarter, in exercises. increased primarily and tax effective $X.XX CapEx tax the in acquisitions. growth to quarter, increase an cash in year expenditures quarter, by to following reflecting prior in on for the were development XX% in capital increase for primarily organic offset revenue, X.X% reported up XX% decline of higher compared our income provided year flow lower from a $XXX the activities between quarter the to was of million rate approximately promote estimate intensity prior our spending increase effective recent million was level cases. for of year Free full result million to XX% X.X% XX.X% and option adjusted The its XX% year. an acquisitions ramp-up. initial was quarter, $XXX diluted business, capital EPS of benefits the cash total reflects We reduced expected Geomni from the

$XX repurchases returned During $XXX.XX the we million for repurchased we weighted $XXX at million. of million through total a to authorization. remaining We under capital a share repurchase first shareholders approximately average quarter, and XX, price XXXX, share shares XXX,XXX dividends. in At had cost our $XXX March of

-- stock June June share record on of per XXXX, XX, per on our of on the accelerated dividend stock. XXXX. to common second we cash in And $XX $X.XX of per addition, On cash In common of be XX quarter. repurchase a of million March of Directors paid for XXXX, XX, our share share first initiated a executed new payable shareholders we XX, $X.XX Board $X.XX dividend April approved share

non all expense ahead vesting Before that the quarter quarter, will into upon in XX vesting XXXX. XXXX. of the the incur I plan, consistent conclude age margin accounting the of the noncash impact. compensation an to period the and will on benefit provisions amortizing share-based a want CEO, awards the second million for result, I see in And beginning second be in that impact basis, GAAP share-based compensation an expense and Scott the compensation you XXXX quarter. a results next XX we are to the new will a during incur $X simply incremental share-based and and turn looking in a reflect our That affect we will to inform Based instead of ongoing will related we over of next upon we quarter. financial -- attainment the approximately of the of compensation discernible as term. our impact a timing our accounting of expense but Stephenson, full Also as there expensing employees costs be this remaining requires quarter said, quarters second of time the of over on will impact concentration stock in will granted,

the through to We financial the confident the strategic long invest to and and for structure we are that return through our excited opportunities share have the investment prudently in term. strength dividends We shareholders about manage and acquisitions continue to investment, business capital capital support internal capital repurchases. of and to remain

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

Operator

[Operator Instructions].

from Bisbee Gary line with of America. is question Bank of the Your first

Gary Bisbee

business to X-parter. the that sharp like looked didn't returning of the pace relative margin and on as growth, you're XXXX. costs was Now grow throughout but the also a great energy business and question the it slowdown sort a to Obviously,

businesses? you cost the of -- is And more can areas of see was quickly us you're there or is going and on that newer wouldn't how Part the sort that B that why sustainable? much is you in as anything sense give So expand any just those investing we growing

Scott Stephenson

this Well, Scott. is let --

we way talked business that me, you Lee, then renewables. me comments. it's then we agenda in that in with jump characterization, But chemicals, got you've But subsurface, where general power where a to a rest actually just a particular or the business, been before, Neal, give to of operating investing excuse are are a categories is the want the Lens, discipline. where very in that the and lot concerned, you lot we maybe Let about there's of you balanced got want you've any maybe --

that is say, And operation the that you so of that moving in way do this see is forward. into the activities we core back and research can actually the just the

selective an to that. you want So agenda, Neal, where spending. if no, being wonder it's to we're we're investment-minded about I add but anything

Neal Anderson

Lens. is Certainly, to we internal Lens Also No. drive the efficiencies, pleased big to expansion of Lens Scott. we're really on also that side, as the margin and roll focus see out

Operator

is line from of Your Barclays. next with Manav question the Patnaik

Manav Patnaik

on color the I'll move do are headwind side. us what quantify that help the the the hoping a segment a could the another financial piece maybe when give and you you more And think growth? becoming underlying businesses was Maybe doing of little well stops bit overall I EDM to growth is. to bit little a

Scott Stephenson

So little of, context? with I you just the at provide color to the start Lee, and level want on do results a then can kind

Lee Shavel

Sure. Yes.

and question. the credit risk growth So for solid management. fraud the spend-informed Manav, analytics and in thanks that, saw We

had north So year-over-year that revenue but year-over-year we mid-single-digits was management that That quarter. business. in a XX% the of is core kind in obviously in with first some decline the that of the to of is reflects growth regard that, as the where recognizing range. And implementation of The we Data the described that. Management, portfolio Enterprise

associated choppiness a that So continues concentrated business And is segment. reflect and within the with also ongoing it that developing to of the across sector. and effect business, development some new that greater

Scott Stephenson

in and cycle our just customers is to of a But given bit some I the we've time it moment business environment. that improve the their inherently year try attention there. data is of add smooth real analytic that's, where really lumpy helping No, to would because to one it's that's parts of all little can Yes. that those out exist

Operator

Mazari next with line Hamzah from of the question Macquarie. Your is

Hamzah Mazari

was of I Geomni. how elevated and you could if have through talked give hoping a quantify going Cloud us your much Migration, we sort of sense about do spend you CapEx? just about or talked So you investment P&L

to elevated sort should flow when how comes cash about spend to longer this way in more a trying think at investment normalized gauge high term, to level? Just there of a step free a down about we change a think that level? your Is

Lee Shavel

Hamzah, thanks question. So for the

a there it think think it is, it and to about around I revolves is way CapEx.

decline And so other of a lot acceleration a so proportionally of at words, in level Geomni CapEx the our continue intensity, relative you this the purchase the while we level ramp-up in to that showed that investment internally takes in terms of had the that slower saw in And absolute planes in software to level. quarter, lot revenues And scale growth we invest the capital to of as developed CapEx. to as is it and saw business, form a discussed captured And in sensors in business. with a you than was the on, in, hopefully, had lower a and previously, a of percentage been of and of the it rate relative build that's growth. associated the past. And as of revenue,

think to business. that intensity within think is about the capital of level way so the one And I

expect we we grow across breakout business. expenses initiatives fund new initiatives of OpEx as have breakout that that, continue a the to associated to Beyond these with we and number our

we them reasonable may some expansion profitable, we lower-margin are at our expand or at earlier a them overall achieve. and investment be expect of to board, scaled yet. to they are of margin stage to profitable would continue against seek the operating not an that pace across But Some where that

Operator

next Stanley. is Morgan question Kaplan Toni with Your the of line from

Scott Stephenson

Toni, are you there?

Toni Kaplan

Can you hear me?

Scott Stephenson

Yes.

Toni Kaplan

of The specialized how X the use years. and growth rate next you saw and sort industry in the Neal, in couple the see about you years rates of source revising down data talked in has for I highest coming trends been stronger Energy CapEx that growth years. growth organic X

products you're seeing. pipeline color because wanted disparity get sense your I have process between I the or of, data of on some are guess Is strong just if the sort what's to thinking So -- the sales what any sources of and how maybe outperforming because you you're providing? you about products? market your you're of of the a that

Scott Stephenson

Neal, do take to you want that?

Neal Anderson

Scott. absolutely, No, Yes.

growth the I see over key think X years, next customers investment of our first modest on of all, Toni. we

mentioned the the market, to intuitive our in paying I the the already folks now really I then which XX look launch data is year, than a as on customers. in that introduction, introduction, unique strengths more in we you with great investment the data are And sets, of side, environment starting that terms last mentioned As and we're platform Wood is the of And adding analytic of have Lens. in know, the fall of cost in Wood being as at Mackenzie to operating traditional the rather Mackenzie. prudent for a credibility

see continue that growth We medium to the term. going over

Scott Stephenson

as of unconventionals. wonder that's in data Maybe I at the Lower little a little if shift Maybe number bit effect about operating XX. CapEx looking so is XX? contextual Neal, is macro in very not thought about your at towards Maybe the agility you just level, just there's quickly a a the a or to it intensity Toni of operations for kind little it's CapEx rebalance also. there a the the also? some and of ability sources. bit Hey, question really there much the a is also Lower bit mix rebalance in

Neal Anderson

into referring What operators' discipline XX. little absolutely, Scott. coming bit the plane I to right. was Scott a No, in more is global Toni, we're is CapEx. Yes. absolutely the Lower see starting to

Operator

of line Tim is question the next from Your with Blair. McHugh William

TimMcHugh

comp, ask tough you the a noticed elaborate even to the the little seems comparison. claims can the despite -- guess wanted still grew Maybe I bit given business? side more it on on Xactware I the insurance like Just of side.

of So you've remote a remote the little you, the can talk least is what's driving kind you bit aerial times think imagery there? first at I one highlighted about And or this the in of presentation, solutions. growth

of So of have noticeable base? amongst the pickup adoption you a client in kind seen that

Scott Stephenson

one? you do to take Mark, want that

Mark Anquillare

Sure.

many I So the you've themes. captured of think

So let across the bit the cost that back first There of a of XQ revenue robust strong. in that will business, would the be all where was Xactware I all, repair and of you know businesses, 'XX. little storm-related to continues of be very estimate

So that. over grew we kind of

or well Our continues claims analytics nicely very very ClaimSearch but be growing. business to penetrated

large We a of signed insurance analytic add some outside lot We the well customers continue spurred very to growth. contracts of as as of solutions. which last new year,

we to onboard are an Geomni organic do the well Geomni do growth and inside contributor thirdly, aerial in expanding clearly this we from those year well customers in customers. those imagery. the of and perspective, breadth And continue So a to to taking category, continue is that with and

So strength board. the across

Operator

Your the with is from Baird. of question Jeff Meuler line next

Jeff Meuler

as WoodMac way think about about the aggregated at related previously the I were is I acquisition and and of was was part it, and Lens data originally, So this, to that I X.X think automating Neal, time guess, or, process. I of the what think that you talked referencing

to now supplying or that large So there from process companies that new automated journey? fields aggregated, data, Have process data you largely where that, energy I And in getting guess that you the are the of are automated? aggregation then with related you're data? you additional the is is are that data

Scott Stephenson

favorite a Have topic. your go. Neal,

Neal Anderson

onshore domain, that Lower We Data is about sets this which capture for to Chief Officer, truly Lens, automation began the this them and year them want reimagining sets, the looking a or of that started Nabeel of you, he We routes. end-to-end public secure, new be for process on data to bringing we're produce new indeed, exploration in the interpretation Absolutely rollout the XX, currently and referred Scott. production. for of And data looking upstream products terms we that to. we to add out data process rolling this clients. the was But an And in in then the a expansion question, our that global margin turn a wonderful which Thank year. tirelessly other how part analysts you and and in new be transformation data second always the big U.S., of partnerships their sets. the the and win thing we're through automate of is is automation Azar, the of for

Operator

from the Steinerman of next JPMorgan. Andrew is question with Your line

Andrew Steinerman

and in this It's Andrew. quarter to you're reported initiatives. still that levels expansion have key investment Higher placed to investing reported margins in the Lee, of spending was year? with accomplished first up is directionally in Verisk mind, be score margin growth in Verisk Lee, obviously, XXXX.

Lee Shavel

on So question. looking appreciate margin. for the Again, guidance Andrew, I

quarter We every and are than continue despite work revenues increase that. our we'll on investments that We a EBITDA. achieved higher deliver to to at to this striving quarter rate

so we ahead I in and show certainly said, growth comparisons, time by to year-over-year some improvement the was think there. creates as successful think diminish if over certainly tougher that we're this quarter opportunity which us I impacted some for an

Operator

Your next with question of the is George Tong Sachs. from line Goldman

George Tong

typically Underwriting you this The pretty to is grows underwriting underwriting revenue and insurance point claims quarter, ratings the initiatives the that grew the in business maybe claims. internal and rate X.X% which slower accelerate Can than for of pace surpass than slightly typical. could growth? growth a where the growth discuss the potentially it revenue of was slower at claims piece

Scott Stephenson

you do take want that Mark, one? to

Mark Anquillare

Sure.

to time, we that -- business the the business forms refer Verisk -- first grow what foundation and business pricing But need all It on to of it's I many provides coverage. a and That's the as highlight years. a penetrated underwriting base. kind focused very, dramatically. and many, well solid of we're that is that So difficult to the our at the will its very for same for and

to that, and tried double-digit that been we've seeing growth. of in to we And very go to international added what underwriting and new products are high the have growth is those many do growth rating. areas, accelerate around accelerate we grow So trying and overall to

as described, a a catastrophe But quarter, bonds market very of analytics grow important. that's with little beyond And those and core with to some very cat to investment those we're that's was the in the way try question, this continues made. happening. is bond expand So one with I nonetheless, progress modeling cat solutions, to answer to, extend our the your pleased international going category, nicely of But and kind baseline, efforts. inside pleased We're slow. being the we're on

the question. bit of and we portfolio So I about a hope little to with answer I think you provided how your it

Operator

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

Drew Kootman

Drew This for is Joe. Kootman on

mentioned guys a the recent was acquisitions. on I pipeline a forward. having hoping been couple have guys You success that moving seeing just the discuss integration, you of lot could highlight you those of you're and

Scott Stephenson

of we've supply and the the talked cost business synchronized intelligence demand been Neal in side to all and some the ways of side able marketplace. about So business the the side that get the of

Mark, the some and got and and Services. little the AIR data that's talked how front, Sequel, So anything do Analyze bankruptcy-related -- LCI a want Financial trifecta, fraud order you on in about together to kind to talk on the you more more the view of want pulled that sort you about energy topics also we we work sets to and bit Re? in of Argus of

Mark Anquillare

of found an kind perspective, opportunities I nice in London the some a in in think the referenced From we very mean I international market. Yes. U.K., high level. specifically

reassuring of are ability scenes you created about our show Geez, give the been a we it, comfortable, thought us how and customers have vision, really of analytic and all kind talk that they promise. continues that to behind a way I an fit of the the a into to who solutions contracts to good integrating also and product? most coming are about a lot seamlessly We customers. it of That has see them Wouldn't saying, consumer way a like but the very this a in surprisingly business and don't UK which are growing, And have opportunities team and our to the walk in? in opportunity suite seeing has a see and and of way, lot data satisfy that and customer, credit in to know

Scott Stephenson

which almost it on their ties Sequel understanding it part where about that is accumulations, exposures the adding and AIR with States. is said you're And in integration sold in Yet tools the to The relate Mark, very but we to franchise just of a United that this. strong exclusively our AIR, in talking today. Europe

real So there's pull together a there.

Mark Anquillare

UK The the opportunity just not is

Operator

line from Your the of SunTrust. with Oscar Turner is next question

Oscar Turner

Has I to the have So some focus And the my customers? product been what's give then you been Lens. the for existing about? product? customers most color question wondering, can of on was is excited into cross-selling on go-to-market that what aspects

Scott Stephenson

Neal, you take want do that to one?

Neal Anderson

about And customer we've Wood existing both terms absolutely. also from new in of No, really and huge it's into had clients, excited to our base, interest track. Yes. new We're cross-selling Mackenzie. dual a Lens logos

been it laptop, we've the from by And they their some much customer, how really experience, So it's got can it certainly and love iPad. love it. both. that that use the it Other folks is, intuitive dynamic very on the customer Lens, feedback ranges iPhone, nature user of

build want have put our will with then value minutes assumptions if change of we fly and time. which we before valuations really sets. they change, chain, that other which seconds. build various integrated over So the in to have taken a can unique recalculate on true then that in the continue build folks And data and value along approach matter And they and to would

Scott Stephenson

you is force customers our solutions the that maybe of same kind is taking comment out already that out on of it's also same sales the, Lens market. other to just the taking to all Neal,

Neal Anderson

Yes. No, This can they terms how service just support for and customers. of other is in absolutely. avenue one sales our force

Scott Stephenson

being there's that point The here. leverage

Operator

the question [Operator with Securities. Bill Wells is Warmington Instructions] Your of from line next Fargo

Bill Warmington

Can wanted smartphone that telematics motion let couldn't having to your two impact after your product Basically, you how market? after ask So And the platform expand go go capability? you addressable before? does a does segments partnership. you about I it

Scott Stephenson

Mark, that's something for you.

Mark Anquillare

Sure.

partnered can a Honda, XX some data we've We're of vehicle, claims to initiate we've or this reminding insurers the behavior claim. what do get the from it And regard programs actually all lot modeling with million consortium themselves we those price harvested understand and OEMs, a do drivers can to, to me data. so So of billion insurance. you, we're let understand where GM. our and the of to use miles, trying cases we so price is try have they available insurance assistance help Hyundai, provide customers that help X the to to around with use a up cars, done either helping our risk There's is better. get our better vehicle What and also is

the about users, can they idea distance do driving, information we about mobile identified have the connected some driver. vehicle. information So that to type with, same the the In vehicle we the information other cases, of what in in from devices the that consent know of by quality so all the provide is of way, both cases traveled, that ways; about

a as is it to help assessment a a the strategy broader a of So to and much risk. part information aggregate vehicle of about about driver that

understand can vehicle an you hopefully, OnStar, be harvesting standpoint as telematics well what example. of from phone the as of itself, mobile involved with can expansive So from the nature telematics the as the from

Operator

There are no further questions.

Scott Stephenson

support. and thanks, continued up And everybody, appreciate us. you. you be interest a number with We joining the Well, of following Okay. for as we'll know,

great rest a have day. the So of

Lee Shavel

Thank you.

Mark Anquillare

all. you Thank

Operator

Thank you your earnings today's participation. This conference for call. concludes

You may now disconnect.

Verisk Analytics (VRSK) 1 May 192019 Q1 Earnings call transcript