Verisk Analytics Shares Impressive 2024 Financial Performance
Verisk Analytics Sees Strong Revenue Growth in 2024
Verisk Analytics, Inc. (NASDAQ: VRSK), a prominent data analytics and technology provider, reported its financial results for the fourth quarter and full year of 2024, revealing robust performance across various segments. The consolidated revenues for the fourth quarter reached $736 million, growing by 8.6% on both consolidated and organic constant currency (OCC) bases. For the entire year, the company's revenues totaled $2,882 million, reflecting an annual increase of 7.5%.
Significant Increases in Income and Earnings
Income from continuing operations for Q4 was reported at $204 million, marking an increase of 11.6%. The adjusted EBITDA achieved was $398 million, an uptick of 9.9%, with a notable growth of 13.5% on an OCC basis. For the full fiscal year, income from continuing operations soared to $951 million, which is a staggering 23.7% increase compared to the previous year, while adjusted EBITDA reached $1,576 million, a 9.9% growth on a consolidated basis.
Improved Earnings Per Share
In terms of earnings, Verisk reported diluted earnings per share (EPS) from continuing operations of $1.44 for the fourth quarter, which is up 15.2%, and for the entire year, the diluted EPS increased to $6.66, reflecting a remarkable 27.6% jump. The diluted adjusted EPS, a measure that offers a clearer view of performance, was reported at $1.61 for Q4 and $6.64 for the full year, highlighting their commitment to shareholder value.
Cash Flow and Dividends Highlighted
The net cash provided by operating activities was $255 million for Q4, and free cash flow was reported at $200 million, demonstrating effective cash management strategies. For the full year, net cash from operating activities reached $1,144 million, with free cash flow at $920 million, reflecting a strong capacity for reinvestment and shareholder returns. Moreover, Verisk declared a cash dividend of $0.39 per share in December and announced a 15% increase to $0.45 per share, underscoring its financial health and commitment to returning value to shareholders.
Strategic Growth and Investments
Lee Shavel, president and CEO, emphasized the solid growth in revenues driven by their comprehensive service offerings spanning underwriting and claims management in the insurance sector. The company's strategy remains focused on investing in innovations and technologies that further strengthen the insurance ecosystem, ensuring long-term growth and value.
Future Outlook
As Verisk looks into 2025, the executive team is optimistic about the opportunities ahead that will enable the company to capitalize on its strategic initiatives. Continued investments toward their core business lines and innovation will be pivotal in driving future growth.
Key Financial Highlights
- Consolidated Q4 Revenue: $736 million (up 8.6%)
- Full Year Revenue: $2,882 million (up 7.5%)
- Income from Continuing Operations Q4: $204 million (up 11.6%)
- Adjusted EBITDA Q4: $398 million (up 9.9%)
- 2024 EPS: $6.66 (up 27.6%)
Frequently Asked Questions
What are the key financial results for Verisk in 2024?
Verisk reported a revenue of $2,882 million for the year, with an 8.6% growth in Q4 revenues, alongside increases in EPS and cash flow metrics.
How did the company perform in terms of cash flow?
Verisk generated $255 million in net cash from operating activities for Q4 and $1,144 million for the full year, demonstrating strong cash flow management.
What is the significance of the dividend announcement?
The company announced a 15% increase in dividends, reflecting confidence in ongoing financial performance and commitment to returning cash to shareholders.
What does Verisk's future outlook look like?
The management expressed optimism about leveraging growth opportunities in 2025, with continued focus on innovation and strategic investments to drive the business forward.
What are the growth drivers for Verisk?
Growth drivers include innovations in underwriting, claims management solutions, and strategic engagements with clients to enhance service offerings.
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