Q3 2023 Earnings Summary
Reported on Nov 1, 2023 (Before Market Open)
Pre-Earnings Price$227.36Last close (Oct 31, 2023)
Post-Earnings Price$221.55Open (Nov 1, 2023)
Price Change
$-5.81(-2.56%)
- Verisk delivered robust year-to-date performance with revenue growth expected to be approximately 8% to 9% on a reported basis, which is above their long-term targets.
- Successful execution of expense program has resulted in margin expansion, with over 90% of the benefit experienced in 2023, and continued focus on cost efficiency is expected to drive further improvements.
- Strong growth and substantial opportunities in the international business, which represents about 17% of total revenues, with positive contributions from Specialty Business Solutions and claims services in the UK and Europe.
- Decline in Verisk Marketing Solutions due to lower advertising spend: Verisk is experiencing declines in its Verisk Marketing Solutions business because insurance carriers are reducing advertising budgets. Carriers are focusing on profitability from their existing customer base, leading to lower overall advertising spend and impacting Verisk's marketing solutions revenue.
- Anticipated slowdown in growth for Q4 2023: Despite a strong Q3 performance, Verisk maintained its full-year guidance, implying a potential slowdown in Q4. The company acknowledges that growth comparisons will be tougher due to prior year benefits from storm revenue and tax benefits, which may not recur, potentially affecting Q4 results.
- Potential decrease in transactional revenue in 2024: Verisk's strong growth in 2023 was partly driven by higher levels of transactional activity in auto and property due to increased shopping and weather events. The company notes that these levels may not be sustained into 2024, indicating potential challenges in maintaining current growth rates.
Research analysts covering Verisk Analytics.