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Jun 30, 2023

Verisk Q2 2023 Earnings Report

Verisk demonstrated strong financial performance, driven by growth in underwriting and claims, and increased financial outlook for 2023.

Key Takeaways

Verisk reported a strong second quarter with a 10.1% increase in consolidated revenues, reaching $675.0 million. Income from continuing operations rose by 17.7% to $204.3 million, and diluted GAAP earnings per share increased by 8.9% to $1.35. The company raised its financial outlook for 2023, expecting consolidated revenue to be in the range of $2.63 billion to $2.66 billion, adjusted EBITDA to be in the range of $1.39 billion to $1.43 billion, and diluted adjusted EPS to be between $5.50 and $5.70.

Consolidated revenues increased by 10.1% to $675.0 million, with organic constant currency growth of 9.8%.

Income from continuing operations grew by 17.7% to $204.3 million.

Diluted GAAP earnings per share increased by 8.9% to $1.35.

Free cash flow increased by 120.8% to $134.7 million.

Total Revenue
$675M
Previous year: $746M
-9.6%
EPS
$1.51
Previous year: $1.53
-1.3%
Organic Constant Currency Revenue Growth
9.8%
Previous year: 5.3%
+84.9%
Gross Profit
$458M
Previous year: $417M
+9.8%
Cash and Equivalents
$309M
Previous year: $481M
-35.8%
Free Cash Flow
$135M
Previous year: $61M
+120.8%
Total Assets
$4.32B
Previous year: $7.51B
-42.5%

Verisk

Verisk

Forward Guidance

Verisk is increasing its financial outlook for 2023.

Positive Outlook

  • Consolidated revenue to be in the range of $2.63 billion to $2.66 billion.
  • Adjusted EBITDA to be in the range of $1.39 billion to $1.43 billion.
  • Diluted adjusted EPS to be between $5.50 and $5.70.
  • Adjusted EBITDA margins are unchanged at 53-54%.
  • Company is confident in its ability to deliver on its growth strategy and margin expansion commitments.