Verisk Analytics Inc (VRSK) Reports 11.1% Revenue Growth in Q3 2023
Verisk Analytics Inc (NASDAQ:VRSK) reported an 11.1% increase in revenue for Q3 2023, reaching $677.6 million.
Income from continuing operations rose by 13.1% to $187.4 million.
The company's diluted EPS attributable to Verisk increased by 22.9% to $1.29.
Verisk's Insurance segment saw an 11.1% growth in revenue, driven by strong performance in underwriting and claims.
On November 1, 2023, Verisk Analytics Inc (NASDAQ:VRSK), a leading global data analytics and technology provider, announced its financial results for the third quarter ended September 30, 2023. The company reported a solid 11.1% increase in revenue, reaching $677.6 million, compared to $610.1 million in the same period last year. The company's income from continuing operations also saw a significant increase of 13.1%, amounting to $187.4 million.
Financial Highlights
Verisk's Insurance segment was a key driver of growth, with revenues increasing by 11.1% to $677.6 million. The segment's underwriting and claims sectors experienced strong growth, contributing to the overall increase in revenue. The company's diluted EPS attributable to Verisk also saw a significant increase of 22.9%, reaching $1.29 for the third quarter of 2023.
However, the company's net cash provided by operating activities decreased by 10.7% to $250.1 million, and free cash flow also saw a decrease of 8.7%, amounting to $195.8 million. The decline in operating cash flow was attributed to lower tax payments in the prior year due to an overpayment of estimated tax carried forward to the third quarter.
Company's Performance and Future Outlook
Verisk's strong performance in the third quarter of 2023 demonstrates the resilience of its economic model and the mission-critical nature of its solutions. The company remains focused on its strategy to deliver value for its clients, which in turn will create long-term value for shareholders.
Looking ahead, Verisk's guidance for 2023 remains unchanged, with revenue expected to be in the range of $2.63-$2.66 billion, adjusted EBITDA between $1.39-$1.43 billion, adjusted EBITDA margin in the 53%-54% range, and adjusted EPS in the range of $5.50-$5.70.
Dividends and Share Repurchases
During the third quarter, Verisk repurchased $49.8 million of common stock at an average price of $239.20. This was in addition to the $2.5 billion accelerated share repurchase program initiated during the first quarter and is expected to be completed in the fourth quarter. As of September 30, 2023, the company had $891.5 million remaining under its share repurchase authorization.
On September 30, 2023, Verisk paid a cash dividend of 34 cents per share of common stock issued and outstanding to the holders of record as of September 15, 2023. The company's Board of Directors also approved a cash dividend of 34 cents per share of common stock issued and outstanding, payable on December 29, 2023, to holders of record as of December 15, 2023.
Explore the complete 8-K earnings release (here) from Verisk Analytics Inc for further details.
This article first appeared on GuruFocus.
