Strong Revenue Growth in Fourth Quarter and Full Year Results
Verisk, a prominent global player in data analytics and technology for the insurance industry, recorded impressive consolidated revenues of $736 million in the fourth quarter of 2024. This marks an increase of 8.6% on both a consolidated and an organic constant currency (OCC) basis. For the full year, the company reported consolidated revenues amounting to $2,882 million, reflecting a 7.5% increase, with an OCC growth of 7.1%.
Income and Adjusted EBITDA Performance
In terms of income from continuing operations, Verisk posted $204 million for the fourth quarter, representing an 11.6% increase compared to the previous year. The adjusted EBITDA—a non-GAAP metric—was reported at $398 million, which is up 9.9% year-over-year, and 13.5% on an OCC basis. For the entire fiscal year, income from continuing operations climbed to $951 million, marking a stellar growth of 23.7% and adjusted EBITDA reached $1,576 million, with a 9.9% increase both classified as consolidated and OCC.
Exceptional Earnings Per Share (EPS)
Verisk reported diluted GAAP earnings per share from continuing operations of $1.44 in the fourth quarter, showcasing a remarkable 15.2% increase. Diluted adjusted EPS saw a rise of 15.0%, coming to $1.61. For the full year 2024, the diluted EPS attributable to Verisk reached $6.66, significantly up by 27.6%, while the diluted adjusted EPS landed at $6.64, which reflects a solid 16.3% increase.
Cash Flow and Financial Stability
The net cash provided by operating activities for the fourth quarter stood at $255 million, showcasing a modest increase of 1.2%, while free cash flow—a key performance indicator—was reported at $200 million, reflecting a 2.0% rise. For the entire year 2024, operating activities provided net cash of $1,144 million, up 7.9%, while free cash flow garnered an impressive $920 million, marking a 10.8% year-on-year growth.
Dividend and Shareholder Returns
Verisk's commitment to shareholder value was further demonstrated with a cash dividend of $0.39 per share paid on December 31, 2024, and an announced increase to $0.45 per share scheduled for March 31, 2025, which is a noteworthy rise of 15%.
Strategic Developments and Financial Outlook
Commenting on the results, Lee Shavel, President and CEO, stated, "Verisk delivered strong fourth quarter results that capped off another year of impressive top-line growth and enhanced margins. We enter the new year with substantial momentum due to strategic engagements with our clients, positioning us well for continued growth." Elizabeth Mann, CFO, emphasized that the organization's ongoing investments in high-return opportunities continue to produce favorable results for both the company and its shareholders.
Frequently Asked Questions
What were Verisk's revenues for the fourth quarter of 2024?
Verisk's consolidated revenues for the fourth quarter of 2024 were $736 million, indicating an increase of 8.6% year-over-year.
How did Verisk's adjusted EBITDA perform in 2024?
For 2024, Verisk reported adjusted EBITDA of $1,576 million, which is a 9.9% increase compared to the previous year.
What is the diluted EPS for Verisk in 2024?
The diluted EPS attributable to Verisk for the entire year of 2024 reached $6.66, showcasing a significant 27.6% increase.
When will Verisk increase its dividend?
Verisk has approved an increase of its dividend to $0.45 per share, payable on March 31, 2025.
What was the impact of share repurchases on Verisk's financials?
During the fourth quarter of 2024, Verisk executed an accelerated share repurchase program, signaling a strong commitment to returning capital to shareholders.
