In This Article:
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Fourth-Quarter Revenue: $736 million, up 8.6% year-over-year.
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Income from Continuing Operations: $204 million, up 12% year-over-year.
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Diluted GAAP EPS from Continuing Operations: $1.44, up 15% year-over-year.
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Organic Constant Currency (OCC) Revenue Growth: 8.6% in Q4; 7.1% for full-year 2024.
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OCC Adjusted EBITDA Growth: 13.5% in Q4; 9.9% for full-year 2024.
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Adjusted EBITDA Margin: 54.1% in Q4; 54.7% for full-year 2024, up 120 basis points year-over-year.
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Subscription Revenue Growth: 11% on an OCC basis in Q4.
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Transactional Revenue Decline: 1.1% on an OCC basis in Q4.
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Free Cash Flow: $200 million in Q4; $920 million for full-year 2024, up 11% year-over-year.
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Capital Returned to Shareholders: $355 million in Q4 through repurchases and dividends; over $1 billion for full-year 2024.
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2025 Revenue Guidance: $3.03 billion to $3.08 billion.
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2025 Adjusted EBITDA Guidance: $1.67 billion to $1.72 billion.
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2025 Adjusted EPS Guidance: $6.80 to $7.10.
Release Date: February 26, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Verisk Analytics Inc (NASDAQ:VRSK) reported strong fourth-quarter results with 11% subscription growth and solid margin expansion, leading to double-digit profit growth.
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The company achieved organic constant currency revenue growth of 8.6% in the fourth quarter, driven by sales momentum and storm-related transactional activity.
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For the full year 2024, Verisk delivered OCC revenue growth of 7.1%, OCC adjusted EBITDA growth of 9.9%, and 120 basis points of margin expansion, resulting in 16% EPS growth.
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Verisk's strategic initiatives, including enhancing go-to-market approaches and investing in innovation, have contributed to strong sales and client engagement.
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The company has introduced new products and modules, such as the Actuarial Hub and Future of Forms, which have been well-received by clients and are expected to drive further growth in 2025.
Negative Points
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Transactional revenues were down slightly in the quarter due to the ongoing conversion of transactional revenues into committed subscription contracts.
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The company experienced a modest headwind in the quarter's margin from foreign exchange translation.
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Net interest expense increased to $35 million due to higher interest expenses from the issuance of senior notes at a higher interest rate.
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The reported effective tax rate increased to 26% in the fourth quarter, reflecting the timing of certain discrete tax items.
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Verisk's guidance for 2025 includes potential challenges such as transactional revenue volatility and the impact of the divestiture of AER, which contributed $17 million in revenue in 2024.