VRSK - Earnings call transcript Q4 2024

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Operator

Good day, everyone, and welcome to the Verisk Fourth Quarter and Full Year 2024 Earnings Results Conference Call. This call is being recorded. [Operator Instructions]

For the opening remarks and introductions, I would like to turn the call over to Verisk Head of Investor Relations, Ms. Stacey Brodbar. Ms. ahead. go please Brodbar,

Stacey Brodbar

and for everyone. fourth a XXXX full operator, joining quarter appreciate us year results. today discussion financial good you, We day, you and Thank of our

Verisk's the President Elizabeth On Chief Officer. Financial are today Lee Mann, and Executive Officer; call Chief and Shavel,

quarterly we be website, release this found Investors of been have our traditional will dial-in. in The earnings to and available earnings the well our attached as call the A The to of presentation also for on as that replay associated X-K has SEC. verisk.com. release furnished referenced our on an earnings days XX-K by can section the this be website call and XX

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

of in reconciliation today's X-K and A website, our presentation discussed financial section verisk.com. earnings Investors on of our posted the and is call historic on this measures reported provided non-GAAP

certain of projected be tax other losses from and of not because However, which the margin EBITDA EBITDA and unreasonable excluded from margin, to example, reconciliation and to adjusted and items effect able we results of consequences, effort expenses, significant. are unpredictability EBITDA expected comparable the are that gains a for adjusted provide may the projected estimating of GAAP adjusted most nonrecurring high non-GAAP directly costs, adjusted and EBITDA acquisition-related including, dispositions

over turn And the Shavel. to I'd now to Lee like call

Lee Shavel

growth to and everyone, subscription delivered that Verisk underscored solid pleased into double-digit fourth share today. Good margin in growth. am profit by translating for quarter call XX% results, and expansion, thank strong participating I our morning, you

from was and hurricanes the and down growth by that activity about Despite constant momentum quarter of driven the storm sales Organic contracts a spoken of storm-related X.X% underlying due Milton. benefits, third benefits from from sequential revenue the we currency elevated certain to subscription quarter transactional improvement with Helene transactional revenues the recently conversion into have revenues transactional ]. committed you to ongoing [ slightly in were along

fourth compounded on of in strong quarter set annual Day was that in the line we Investor expectations This growth and XXXX off a capped our with at performance solid in guidance and longer-term XXXX. top

results-oriented adjusted our of revenue and results are financial the growth her expansion, OCC of XXXX, EBITDA growth. Elizabeth XXX points further but trajectory review, our X.X% in details basis OCC predictable XX% and delivered For resulting growth Verisk provide and X.X% of will margin growth in EPS demonstration these of culture.

year throughout the and We of scale go-to-market these our and and by enhancing clients; delivered investing one, at X with built intensifying momentum focusing approach; on elevating strategic strong dialogue results initiatives: our innovation industry. behalf on the in three, key two,

to plan of a few each profitability another them on Let and we advance invention. how XXXX further year deliver to me and spend minutes growth, on discuss in strong

an First, strategies business. to our enhancement tailored consultant worked in for sales outside businesses incorporate XXXX, each with

best match sales and territories As we in client force with industry and new and a coverage, needs sales practices. XXXX, implemented plans result, business compensation teams improved aligned account better for that

integration a certain process. Additionally, businesses we simpler in product sales introduced for

clients. with optimization and Finally, more to tools conversation we a introduced value-based pricing strategies drive

and strong as in price we Events are value-based our Extreme Specifically, recently further we client-centric enter realization where areas sales sales extending to opportunities. teams next-generation have renewals. of suite including we identified in sales from are global this improve, new Verisk, new of as our all After business, record models, as across cross-business-unit contract a year energized benefited capturing duration our they collaboration of introduced we approach XXXX

enhancing second strengthened clients' has needs, clients have on opened has participants. insights stronger These carriers, This has ecosystem accelerating we Our Verisk and initiative stronger our been industry-wide into and engagement level. given and have C-suite growth. enterprise intermediaries, significant and regulators and focused deeper to to relationships, renewals clients where outcomes. broadened especially us opportunities bring other deepening connections discuss ecosystem across our with the our achieved impact broader have sales allowed the within value and reinsurers, and new This in with approach improved largest we resulted the

this we are reinforcing more our clients, with approach expanding XXXX, In trusted partnerships.

every broadened to increasing business Prime help day. insurance core platform engagement Insurance created state our to National departments advanced serve example, for Bureau. approach new Anti-Fraud the number analytic the our the ClaimSearch leveraging agencies we and By these triage receive automate opportunities has and criminal and industry leads tools, referrals and For our of

and Our operate ultimately saving while efficiently improving consumer. fraud to bureaus money effectively, work system state helping more benefits is the the

We to have over further opportunities identified time. this states initiative additional into scale

is scale initiative on of Our behalf investing the innovation at third in industry.

allows in improving Our value strong industry address to our invest solutions free needs. to new the of cash and inventing both us flow existing generation solutions

we cost platform, to a the of pricing provides market. our tools loss which the is new introduced and digital to of the Our ISO for risk Throughout address insurers example like prime data Lines evolving help we driving quickly Hub, the Actuarial the needs clients. value confidently leverage Core are Reimagined XXXX, and onto features project greater insights

impacting market. we and quarter, efficiency changes Filing for Intelligence Additionally, our tool underwriters just owners are fourth And Future introduced speed line. react business helping of quickly form the to Future in Forms driving is faster and the analyze and of Forms filings, to that

forms experience download from bulk improved library also a a We ISOnet. an introduced experience ISO legacy includes from The new library. intuitive of function, the user library ability our forms our replatforming library forms new experience with the search more the and forms to

and XX an introduce slated to in number In even Lines modules are of we we greater throughout introduced XXXX. total, across modules XXXX, Reimagined Core

accurate Ana had $XX the winds scenarios are and Santa the devastating who $XX X loss that models impacts that In wildfires. have contributed proven released business, we events, to XXXX, that estimated June our cutting-edge for to We've to Events predictive the downslope science In and of were has Extreme to a and range an model technologies wildfire the that billion predictive these using included clients tragically occurred. losses simulated Palisades and investment our already model and the hurricanes access be delivered update wildfires. that through to of our loss recent Eaton behind of California sustained of advanced billion

U.S. We investment at convective keep to predictive have continuing of of our pace update later our typical science an and are released be models this model to levels our to the for year. storm severe plans highest

too flowing we you ecosystem. invention across with within behind help integrated, We step new end, strategic that we on to journey. one To initiatives they Claims most are are one siloed And from Extreme that and investment hearing moves this from across year, are and focus information inventions data also Day, this that organization with that investing discussed from the sets own a their Investor better want that closer Events. our from clients they focused we taking conversations clients elevated are us towards and integrate Underwriting, organizations the learnings on. is we increasing that more how are moving At and

This ensure differentiation and our solution Verisk pricing from solution one coverage. Augmented Underwriting with unique Solutions sets combines in is is help to our competitive our that catastrophe long-standing evaluate seamless Underwriting invent industry Business property innovative Specialty to with and Verisk solutions example. provide bridge large-scale modeling such a software position great rich that a clients inquiries these data our to property expertise capabilities can in to enables optimal end-to-end practices.

files way Underwriting numbers clients better and, they with could evaluate to ultimately, address optimization. enabling Augmented not property manual an offers processes, selection previously that risk large automated portfolio of

over operations now improved our participants, drive in the continue we more the Estimating from industry. we well new the grow seamless we Within within as which a last clients industry XX partners and added our for to year, ecosystem interoperability platform connectivity Additionally, and to workflow more outcomes. ecosystem our Property as streamlines to that Solutions, XXX connect have offers choice tool claims

We are waste and with our approach to business, add to in plans new solid and extending and policyholders. XXXX to benefit in within fraud, XXXX. consumers industry Anti-Fraud ultimately that up enable partners also effectively partners the growth ecosystem and abuse, fight will from XX X This more

of our set other or this quarter, fourth Atmospheric part Environmental portfolio and AER's the a of management. and subsegment. Underwriting or Research, customer AER, had which further asset overlap called we sale is little evidence strategic businesses, During our nonstrategic our small was solution with active sold

wildfires businesses, communities to Before devastating to which our actively Estimating individuals, Southern clients this restoration process. in take California, a adjusters I had address a close, have want rebuilding on with contractors Across tools challenging claims I profound are clients. moment impact time. business, the Verisk, estimation Within supporting industry streamline Property we insurance are to and Solutions our and during our equipping claims we the and

provide offering more including the to only policyholders. modules, more capabilities the effectively of the they not critical clients for accurate AI-enabled are as property deliver to efficiency help faster its and Lean process assistance ] Solution, support recovery. Experience also navigate and but [ expense additional Specifically, and living we claims collaborate These personal policyholders their enhance

Extreme have first into representatives our and understand the Models ultimately Verisk in organization before we ground initiative as from risks the to to survey will to the California year's was can benefit availability stakeholders. Insurance from real to models. all of support and state, teams Events provide Even believe, time part increased our disaster Underwriting stabilize of the disruption help submit We this insights incorporate model fires, and, insurance Department into across insurance impact wildfires wildfire the of the also the market. which a on natural

of the improving bearing profitability in growth XXXX their related to overall losses data, Notwithstanding the and a businesses. improved premium interest for and industry's significant capability and analytics technology integrate the industry buyers, trends strong the L.A. to the into adopt positive are and is

me turn as well the quarter let full our to guidance Now the Elizabeth XXXX. for results fourth to as for review and year, our provide call detailed over financial

Elizabeth Mann

GAAP was was and day both the year, XX% prior $XXX litigation and up reflecting the $X.XX, consolidated continuing million, On operations count. diluted levels versus earnings GAAP strong expense The prior-year in XX% prior share diluted GAAP increase a per by in prior were EPS year. reserve operations up lower versus basis, Lee, period share Income on operating up call. versus growth from continuing fourth driven year, while underwriting to from and good the a the of performance, million, and X.X% was Thanks, solid claims. $XXX revenue quarter the across everyone

Moving the of organic currency for to items, adjusted constant defined as nonoperating our measures press results section our financial in non-GAAP release.

In results our and Claims. both year with XXXX across operating off X% and X.X%, underwriting both OCC Our revenue that XX.X% our across we of sequential represents Investor subsegments growth improvement our grew results claims. in rates the revenues quarter, longer-term targets in in fourth and in line Underwriting laid growth demonstrated at growth of another Day. This capped with out

full For strong revenue we of the X.X%, OCC year revenue compounding growth the OCC from X.X% XXXX, growth XXXX. on delivered

total we the an XXXX, during throughout quarter. growth the Our conversion businesses across consistent XX% trends as our our grew contracts. well subscription fourth have largest in revenues, strength XX% revenue subscription on from as of quarter which to with transactional including the quarter, in continued were subscription-based the drivers of seen The basis OCC previously comprised

helping growth customer Core additional waste. which in Event as extended delivering analytics, Loss renewals on Estimating our in and we our and Solutions, mentioned business. our we Reimagined our terms. of as continue enhanced Rules wins weather in outcomes Within strong clients, of as with We investment strong strong Forms value including is costs new earlier, Lines bundling finally, strategy strategy And hail leading In solid well go-to-market is focus Extreme are as to see driving our positive Anti-Fraud for to renewals. our advanced Solutions, our applications, sales is pricing Exact seeing Property and Experts, drive

impact spoken during basis continued Our This about previously. OCC transactional the including reflects discrete decrease the previously to of from revenues, fourth have subscription the we you contract transactional revenue X an quarter. declined to X.X% on conversion the

Helene customer transactional InsurTech We auto normalized attrition, of Property also partially segment by the more experienced and a our within level Estimating business. offset hurricanes decline was our volume elevated business in to of Milton. particularly Solutions levels the related The of

results. EBITDA organic results was adjusted includes from points adjusted both inorganic year. EBITDA margin, basis and the in up XX.X%, the OCC Moving EBITDA to while total in growth prior quarter, XX results, now our was which XX.X% the adjusted reported

strong ongoing experience the This third initiatives. modest quarter's talent quarter's margin from of expansion the effects foreign in global we this margin our including and offsetting growth highlights of revenue a the cost We quarter. benefits headwind optimization discipline, experienced did exchange that benefit the translation, in

full also quarterly absorbing year also of our XXXX, impact variability, EBITDA full growth. investments XXX the back solid to of adjusted while cost currency had on basis year points continued future the core and margin results. note reflects it into the foreign translation self-funded half year-over-year were business leverage up on fund range. minimal For XX.X%, upper discipline our and our caused margins guided This operating I while revenue our growth impact would in that

maturity forward. income compared year. quarter due to expense Continuing X million the the We $XX refinance the last we $XXX our targeted down an a This was leading is higher leverage XXXX, a given primarily from in at rate, that EBITDA, Xx and expense in rate in the going June expenses adjusted of range million, interest interest run notes interest due period our have below issuance likely increase to of to year. is coming increased higher slightly statement, the of do end will during second $XX senior same the to low million net

well the well to compared from disposition the discrete year XX.X%, quarter, in prior AER prior-year certain XX%, to as in the quarter. the energy discrete of On the the rate as timing in tax our Our from our XX.X% divestiture onetime tax as was certain current the items XX.X% year the items impact year. reflecting rate as reported tax tax a was compared the prior effective basis, in benefit full impact reflecting as in year, from of

net the $XXX income revenue a count. expansion The This partially higher strong primarily increase tax increased to quarter. and million was average a increased $X.XX and offset XX.X% lower XX% Adjusted and the interest to higher growth, solid by by adjusted diluted for is EPS rate. margin share driven expense

rate For reflecting in and EPS the interest $X.XX XX.X%, share operational of count, offset was lower full lower by year, adjusted part strong up a higher expense. growth, tax

year. basis, operating year $XXX of million, million, flow cash a to activities higher interest cash generation flow net business free increased a and a certain to from model. XX% $XXX From increased perspective, last versus million, X% subscription-based on to in prior demonstrating reported for free onetime while cash a X% $XXX timing of reflecting the items cash payments the characteristics Verisk, the full basis, our increased flow strong flow record year On cash

have through repurchases. approved and that in and demonstrating pleased We am capital we through over has returned are our repurchases in and I capital additional dividend to to share $XXX row third million during our year capital returned committed shareholders. that confidence billion in in shareholders to model and XX% shareholders, share billion a our dividends to our returning quarter, return to XXXX the to repurchase marks $X the dividends. to our And a an we $X commitment increase and economic authorization, Board

with delivered end, builds for and momentum. outlook XXXX. the are strong entering to we deliver upon we pleased our energized discussed, we we performance which are in As XXXX To strong that XXXX,

was in Underwriting the our in reflects AER, subsegment. revenue contributed which within of divestiture $XX XXXX and guidance included Our million

tax and rates. exchange also interest guidance Our foreign currency assumes current current rates, rates current

of to expect OCC of to This $X.XX billion. consolidated billion revenue be in growth specifically, revenue XXXX to the to X% $X.XX X%. translates More range for we

in $X.XX range We adjusted to the the adjusted billion EBITDA expect and up EBITDA of to XXXX. XX.X% to XX.X% from be XX% range $X.XX in in billion of margin

of in million, $XXX the to of depreciation timing the expect completion be projects. $XXX subject and range and to down Further P&L, amortization assets of fixed the million to we

be of amortization to approximately expect $XX We intangibles million.

XXXX, $XXX the tax some expense benefits. we million recorded return compared and rate to higher $XXX We to rates. tax onetime be million higher interest XX.X% as debt expect level million, than the higher XX% XX% to in to to expect to XXXX normalized our in reflecting range, interest in And which $XXX between a balances included

This culminates in per $X.XX. the $X.XX in adjusted earnings to share range of

of investment website, been We expect deck, guidance $XXX the to earnings Investors prioritize business. million our slide capital organic listing to as A in section has expenditures can complete million be found verisk.com. posted which of between be continue and we measures to $XXX all the our in

will turn some for Lee closing comments.. I now back And to over call the

Lee Shavel

as capital In investment summary, and remain returning are opportunities while to unchanged our our capital and on predictable delivering consistent we shareholders. strategic to return growth highest priorities focused allocating on excess

unique data scale a behalf at individual on in of this insurance the we industry company and culture ownership place through cost an by organization and investment invention have pursue and lower and in and We a of their have our for We're insurance XXXX. can to it opportunity clients value in to team, create on invest technology excited than own. at the opportunity

appreciate to interest Verisk. the support We continue and in

the the to that And ask number for you yourself operator us, the covering of line I'll we X analysts have limit Given ask large to with question. questions. we open that,

Operator

line your So question from Morgan of comes Kaplan Toni Stanley. first the with Instructions] [Operator

Toni Kaplan

realization. Wanted ask to on a question price

you as boat want customers? much strong didn't of XX% and the you from the get in one that subscription around the past, was growth from drivers to are How of the this because rock it there getting sort the really rate know the mentioned that. raising of I pushback insurers on driving You for prices quarter. data sensitivity

look you to more terms 'XX And how taking of usual? the are price elevated the So are pricing? expecting pace of in than you

Lee Shavel

Toni, this Lee. is

part me to in the we increases. Let I have I the XXXX at it's want point had question, important XXXX. ahead -- momentum and been to that I value-driven and we really think an appreciate in that think that I looking we're more price is the been of successful driving emphasize what And

we've a our to, I orientation. would come on communicating that things. is point more of think Reimagined value examples that lot that value that that clients in Lines our which this the substantial has orienting us and also experiencing. are improvement now investments heard a where telling we've their made, X specific that are the then has in and around about, productivity. focusing ours also in that Core very have communicated value One, that seeing a the about that fact, And they're of sales Two clients one We've efforts been they as improvements delivering indirect I function product channels, from that of significant talked

position So where renew able that are though -- a puts been from value clients contracts have pricing where standpoint greater is we a it. from in demonstrably they clearly our to us as these getting feel

In with EES evaluations value perception models did the also and addition, Events outside an stronger that is one standpoint that other products. of we our where the the strength of of there Extreme underlying in our was we a saw business consultant sales around

in extent. armed put a stronger perspective, to able from And communicate that and to be us realize sales pricing a information, to that position so a it with

efforts our for Claims business, have to and the that made open I clients, in value has have that been that helpful. created more our think we also ecosystem

across value-driven has aren't those effects. been that seeing in of pricing one subscription. onetime key And we're the that So strength of elements the the impact business,

how to in that structural us that of results pricing, an I that continue for to been 'XX we philosophical has overall drive beyond. expect terms and in we and approach think change

Operator

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

Unknown Analyst

Brendan was there to This on for from conversions the more is I wanted benefit ask the subscription. just on Manav. -- obviously, to

think guess, there? the maybe for how how Just runway about longer term about that and just see, then wanted I to 'XX to think to

Elizabeth Mann

for thanks question. Brendan, the

will same about So it's let specific the the quarter second one fourth of persist We about the impact the quarter. That in talked in that into through X the contract and We quantified quarter. me break pieces. middle it third conversion.

-- in So the full kind next next quarter would the of year. be last the impact of first

success been business the generally, revenue transactional elsewhere creating one and more our our talked we've of certainly subscription we've converting across That's in creating an impact business that talked the seen But packages, business. license that packages. we've about Anti-Fraud about or in

also of specific Specifically half Anti-Fraud, the that a in adjusters year. continue through self-insured. the will set customer targeted with and we third-party And the specific next really impact first

the across a sustained longer-term contracts, But business, about, as talked tailwind to the side. more see commit subscription generally that Lee customers the value and may as be on

Operator

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

Keen Fai Tong

storm and Transaction saw much in revenue of from from the you benefit quarter about storms benefit of you benefited elevated in in how activity. expect you talk the much XXXX? Can a how a quarter

Elizabeth Mann

for thanks the George, question.

growth. of they the the side, On impact X transactional when Storms percentage revenue we've previously said storms, exact on threshold to amount to impact of the a have the are quantify at that we point least

As it you prepared threshold. that heard hit did in my not remarks,

But I -- same fourth business the of XXXX. the longer has this hits double. will our revenue no been the the impact it the in approximately of as grown fact that is Hurricane fourth business Ian matter had the the the But quarter fact was of is that of rest in that impact with quarter say

fourth expectations for and happened the late XXXX, early into early -- these storms Helene and quarter. actually very Milton quarter in third quite themselves, As the in

expect don't XXXX. much them those we impact -- storms themselves have So to for

we we of you but As activity. for sort of prospectively, a know, storm level normalized assume as don't forecast,

Operator

Surinder comes question line with Thind of Your from the Jefferies. next

Surinder Thind

companies state? going versus in versus does state the that and the insurance business of the state active what's Can the of perspective insurance the in in towards revenue the kind being the sense you impact a on California shift How being the provide the not thoughts maybe some insurer just from state of or in also around of being choice. active

Lee Shavel

a question. Surinder, question. very thanks lot It's obviously timely the a for

are that And industry impact, the most carriers wildfires. the certainly, losses L.A. So reporting. in that that course, that the I are are -- are from the we're seeing bearing they results of financial think, the clearly the immediate

consequences it been think need that, within recently, heightened until I California not of for certainly did or pricing. the -- and for a basis have to one market. of the risk And And up the allow forward-looking points increased that need has models they pricing since adjusted is the the for challenges as that. that

to in I we as model the As mentioned our the first be earlier, proud submit remarks to very wildfire were a basis for pricing.

we a So and That greater I to path changed. headed compensate are has whether evaluate think the we'll risk-based risk. rationale course pricing see acceptable environment out And there good of should to we scale, towards -- the serve there stability a play have themselves provided carriers risk is the provide think the rate its a over and strong But that the incentive getting that recognition that they're to for see to But adequate in pricing market we continue for a themselves that to adequacy. there. pricing XXXX. is because naturally will of California

to our clients. certainly these risks pinpointing within globally, analytics and U.S. where general deliver experiencing are understanding also demand risk levels we estate our the in of strong modeling of California think see in for within I continued And are and do we and greater higher that heightens that importance markets we the catastrophic and expertise real the risks that

Operator

comes Your from with Kelsey the of line Autonomous next Research. question Zhu

Kelsey Zhu

input revenues And from premium have was X-year a contracts of direct that we're XX% also XXXX to a year year but of growth come premium growth your with premium the strong lag. pretty elevated XXXX. XX% in growth, for of So in a third

to should compared how X% think, could And would growth to growth think think closer to curious just to more overall levels to, quantify XXXX, pricing I pricing if helpful. to contribution XXXX be historical was So in really that contribution we in about about you X%.

Elizabeth Mann

Kelsey, thanks for that.

will more providing. perception ultimate that previously And our with of XX% from that. we've conversations to say, using we're been to from input yes, growth. experience XX% importantly of the continue we from for but our our I of an us, that the premium clients' come said that that contracts pricing comes as revenue So input, outcome we've value

Lee so able value about clients. the trends think And been to I we've deliver the to of that some talked and at the beginning

So see XXXX of But us all clients those see strong is the pricing conversation input for that more of our off numbers. longer things and important do term we the the true. are continuing with Yes, value. we the

Operator

next question Alwy Your Bank. from the comes with Faiza line of Deutsche

Faiza Alwy

So I to on transaction follow revenues. up wanted

the impact we had we transaction those you So some that Elizabeth, Because talked you know, know think XXXX? revenue. that subscription about all to about I of I'm curious as comps. And ahead quantified you look curious But I subscription? difficult in amount how us. if should mentioned storm converting versus and that for was some of contracts to

Elizabeth Mann

a really to think be On contractors, of is transactional. may related subscription small but piece it primarily as primarily transactional. it question. of it There the that for Thanks Storms, Yes. from

into those the As first conversions. conversion I that the through side. as there we as We well the last transactional conversion, talked quarter, comps you're think one contract tail Anti-Fraud of discrete about and as XXXX, on said, are going right, some ahead the tough about from

to about auto, the auto transactional was quite into probably also think The in referenced would and -- has the the segment particularly on InsurTech a activity in we've there, the year. activity add continue yes, will I tough which auto some -- And the first quarter. still consist XXXX in weakness auto high comp, QX. side,

also you revenue, about was That mentioned think sale -- the a transactional AER. primarily transactional you of As we should business.

be standpoint, from is So not though, of an that will from OCC a as typically nominal standpoint, which how be that coming ourselves, course, measure out, we important. would

Estimating in Property standpoint, first seasonality weather the first typically is on less on side. in one quarter the less activity lower transactional market is with being then on drivers the for the Solutions the standpoint, ILS with active growth The typically And seasonality quarter.

those So that XXXX. and you hope takes I are some think the of help about puts

Operator

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

Andrew Steinerman

share about any year looks about in counting is refi to me Elizabeth, assumption? Two, D&A the to me. buyback just that to relative the 'XX? relative are stepped-up three, guide? interest also making questions punch assumption an looks planned really last in Like, 'XX. stepped the in a up expense the the And step-up driving you D&A interest to then few there guide. What's One, materially the

Elizabeth Mann

below-the-line Andrew, them order. in Yes, some the because those highlighted Yes, Taking are headwinds there we for thanks questions. there. there of items

share XXXX. share buyback do yes, in activity buyback, the On we assume

dynamics it was called The we've interest not important expense, one out, we thought but for understand there. historically, to the that's you

our the interest at quarter, to that -- level you any just the that run if refinancing. call, in even $XX our that fourth the mentioned fourth that in look the refinancing, annualize the gets almost already shows guidance quarter you you was so without of rate, XXXX assuming I impact If million, as and

that face environment. So rising rate a that's some are of -- there the in those with headwinds we as others

then we've D&A, projects finally, we've CapEx that had is on and in And invested. the investment consequence a that of the that our the

revenue that, D&A that comes as into we that's in projects they the that's and the As growth put the support service consequence.

Operator

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

Alex Kramm

previous to mean, I and but for X% the side. second, there's obviously, is guidance the with Just ranges. the staying particularly revenue on consistent on a X% range a

are in low all you get is -- you if much you're bracket end? how end of growth just talked subscription a there that So to earlier? already you really obviously, of . kind today? the volatility, other Or bit books you the the to focused high get low will it high on Is that of about which can that curious little And factors and the the that end maybe end. can transactional kind

Elizabeth Mann

the Yes. Alex. Thanks question, for

factors. of one transactional swing right, the volumes component You're is

other the side, could there's if attrition temporarily have California, in side, we customer including on impact. customers the attrition monitor On and that the end, a potential on potentially attrition short-term that back pull always low potentially

in On out we've faster or Discovery of and Specialty Estimating products we've the Liability a greater Augmented If about, we've than lot talked end, We've there. side. Underwriting. Navigator, we've and in, you that investing Exact rolling a upside product products we're in about the those White assumed, Solutions, about of Property the the XXXX. been about the excited Any could then Space Expert traction see Solutions from some in Business high there's talked the new talked

some end. there's the opportunity high So on there

ILS be And then just I'd as swing and And also We services variability. the finally, transactional just a of enumerate we on there our Weather customers factor, side auto bit support can about side. to specific, be talked about the variability mention businesses, the our on Life a more but can there. those. on transactional for be transactional driver maybe to talked a comps then a the

Lee Shavel

Alex, the for And thanks question.

things expectations. despite talked think always influence can around broader I that the and which us events, variance are we've demonstrated predictability really of our kind we've good I factors there But having, influence can for margin on tight very business the weather these think, as about us.

The right other lot we're a thing activity front. is government the watching of is, the on there that now and regulatory course, of

we is that immediately there's on influence course, we the the and elements, that year. economic then, sorting environment course, As see new flux anything out are rates don't the broadly, and we interest the that factors more that. course FX but of will would of over And of identify, in lot us a are administration's

variability -- of vagaries has that momentum, those years. have broader over question still here. advantage those a despite out But positioned thanks to feel take business the some of to I the of think opportunity the beneath of next the the we exposures, strong But for several that of well elements kind

Operator

of from line Markets. Ashish Your next question Sabadra RBC Capital comes the with

Ashish Sabadra

wanted there on rationalization, for opportunities how but M&A? on focus if also portfolio to just is for I thoughts the pipeline Wanted is M&A. M&A and to see the more

Lee Shavel

relatively the remains opportunity for Ashish. say I'd unchanged. Thanks, pipeline

actively been opportunities, and in engaged at remain high. values have looking We

more some within value we're more delivering our for enhance of integrated broader dimension are finding additional opportunities that areas, better us our of how I more value would think one new businesses on basis businesses a expand opened propositions think of that variety as our potentially us that a I I and that I those ecosystem we on to -- business, a -- how in to think to knowledge fit the the clients. opportunities as across the might a are And are create to industry adding have integrated mention and understanding for to is understand across business. ability have we we thinking our

adding our continue value I So clients the that and industry. that to we to think And it unchanged, be are I companies the environment, is think, could delivering of how or remains to interesting improving. value own knowledge improve potentially enhance

Operator

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

David Motemaden

rolled modules you you XXXX that's realization. out XX Core Reimagined mentioned better had Lines driving across and that Lee, how in price

greater modules had of said introducing you Do that increase versus that your an in think drive XXXX? price number can XXXX a realizations or You in also -- uptick XXXX. in you're that

Lee Shavel

for David, So question. thanks the

each us short our we're I is some we answer to value that value to think delivering. that some But that hand in going our for and describe adding over we're I becomes of excited to about so believe Saurabh that we're an clients, 'XX of that . is my module to opportunity clients Khemka, adding out. rolling the to incremental the I'm colleague, think modules capture it that will be

Saurabh Khemka

Lee. Thanks, Yes.

As these across databases. to we our dimensions. providing enhanced from mentioned, you insights modules our One delivering customers proprietary are is X

to to that be adding to excited and So Executive more which going be Auto we're across things Module, be provide Commercial another module, out commercial are we're Index, XXXX, Experience we things Insights will going in where going rolling that. all our like value our customers are about lines to ISO know and the

have digital coming initiative will at us. our Forms these is Future content, delivery they customers our which there, new our And as And the Ratings of from the as analytics of of modules look increases second out. the Reimagined well dimension as initiatives productivity our

Elizabeth Mann

to realization jump David, on was -- because kind your about in of I'll price question the just -- address that.

And contracts. multiyear so I'll customers, of that, our add for large are many they on

new sustained the not introducing kind we're of so onetime a a from uptick. of opportunity, more benefit pricing modules and gradual is that these And

Operator

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

Jeffrey Meuler

half, bit subscription that been But every the little to there's a I organic get from growth subscription of help, constant of transaction accelerated back quarter XXXX. especially currency conversions. in the

like me. You're point it a XX% feels launching-off know I discussed revenue about OCC. some 'XX really bookings, initiatives, innovation totally you for That good the record momentum. doesn't at headwinds, good and but add to exiting up talking

anything just been that? to realized And pricing happening or like value kind kind offset anything rate else year is of on the you beginning XX%? calendar would of say or there like of of for midyear you any So from the that that's like an can exit like in when is shift

Elizabeth Mann

question, of Yes. We mean the Jeff. -- we specifically, quarter, couple I are To across the excited contract about the for had businesses. and helps. technical we the about our It's a strength. conversion. Thanks subscription fourth we talked yes,

said I easier basis conversion subscription, think the a prior. slightly quarter, was as quarter XX to portfolio. help just well the fourth across we that point for year last ongoing the And our was over as there a comp about then

So those the were of factors. just some

we've all are said, that that we pricing dynamics clients, the from excited and But that the value our recognition outcomes we had. the see, realization, the about

Operator

William line of from comes Andrew Nicholas with the Blair. question next Your

Andrew Nicholas

what and a of wanted I that? bit mentioned today. more think, describe contract is both benefits Elizabeth, way what Can If economics how those to in manage maybe maybe terms And extended I to you whether predictability in relationships? or on be there's enabling little renewals, the change Lee deal of you that the quantify you creates, about average length. duration touch which or it any

Elizabeth Mann

is hasn't gradual that not change Yes. a our length Maybe Thanks a for price future is for -- of the question, in impact, certainty are been largest gradual contract one maybe customers a change the business. as outcomes. material for our extension looking Andrew. It

drastic our change. our it's had business, in of contracts. in success have an some locking evolution And longer-term businesses in But not a

Lee Shavel

David. would that, add to Yes. And I

it and certainly from economic reflection incentive think to there I contract, But is those the longer predictability. on contracts. greater move a I level, that growth our in it's of also at there to place optionality end, the Obviously, that standpoint if our an the is of to around think one part demonstrates client wanting relationship that of that embedded maintain greater shorter of a clients those a think confidence that kind then more weren't of developing, I strategic and or see at you keep flexibility degree weren't contracts would stronger it. to in

So efficient I effective. more broadly to in comfort that we're areas and to barometer even more we're them and deeply and become partner those other us and ability it of embedded a focus to value a adding gives more more that as view making our on clients a it

Operator

Fargo. question comes Wells Your Haas Jason line with the next from of

Jason Haas

Because your pretty marketing talk from business you marketing spending your I'm we've what's XXXX. for performed and that the quarter the in curious good some could about insurance if fourth business and industry. how in seen expectation advertising

Elizabeth Mann

for question. thanks Jason, Yes, the

going more base strong the On next rest year. the based segment The marketing and muted customer see business, has on growth, insurance customer and advertising seen tailwinds been overall. of that we marketing segment the still into has the on

it that year. watching as into And next so we're develops business

Operator

question from next Redburn with comes of Russell line the Atlantic. Your Quelch

Russell Quelch

the below I quite wanted prior came CapEx. the range far CapEx I in to noted talk about guidance 'XX. in

what more comments, think I'm if with square in I that XXXX, CapEx guiding capitalization range for. especially were to your in year-on-year XX% trying maybe the about delayed some XX% to some you've projects Wondering your been of 'XX. you the guiding given it business. you below investing was up

Also more expectations you any growth want comments broadly, are XXXX? to in free provide there on cash flow

Elizabeth Mann

Thanks for question, the Russell.

XXXX expenses. be number, going wasn't the projects any delay spend we there. of just don't be We're -- On always we'll decision major of And there cautious. if forceful we're or mindful it, to

of space that's well. taking into timing think There's are OpEx I that pushed yes, some also a bit as things quite factors investment 'XX. in But place also there some just our

healthy what the business. amount give So we organic into investment a think things of those X is

think the growth I we into is in free of flow increase flow On we've growth, that, cash we communicated. but year the the confidence that don't the this have very full forecast measure next growth double-digit free a to cash And cash our free year. flow were dividend happy year in

Operator

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

Jeffrey Silber

business? it Is couple quarter. some events. a the to I happen did extreme numbers on difficult possible might give questions. know wildfires quantify estimate guess, of of the earlier in of to I of it's But what the, be California the Actually, quick impact us that your some

And directly either stuff your indirectly you of secondly, government-related some alluded or the in to Washington. federal Can you on Lee, to think had exposure I talk about going revenues?

Elizabeth Mann

Thanks, Jeff.

kind the On something and as quantify. watching. a just from will has of industry -- an it impact from tax everybody side, definitely -- about, is to wildfire to California that of part ] the hard be breath But will that numerical us, it's impact, be [ talked that we a

doubt, of situations, impact we support more on do less an -- business avoidance the the I they wildfire Estimating far we far to want for while repair, Just Solutions while but support that provide the in hurricanes concentrated. provide that have our are Property are as to geographically clarify can they

So it typically. financial turn does it not on business, I'll have Lee. our impact to the

Lee Shavel

Great. And ask. it's question think Jeff, to I a natural yes,

point, that of revenues or revenues believe we else, Washington we've been monitoring federal executive less So And from orders. out with trade are direct coming everyone closely. of government X% than changes any our we revenues. the have the exposure total at the don't this tariffs to Like

regulatory to efficiency insurance regulatory not still automation course, the the work and of policyholders. by interest, with on relatively the only a offering interest the involvement state-based management, think fundamentally which we with primarily our infrastructure, As overall of but industry federal and regime you government government is work -- save is industry, ultimately, in And federal of appreciate, risk light. the the state and being probably agencies insurance

Operator

no Thank the you, are in everyone. questions queue. There

concludes This today's call.

all Have may now everyone. disconnect. You nice day, a

Verisk Analytics (VRSK) 26 Feb 252024 Q4 Earnings call transcript