VRSK stock gains from a subscription-based business model, boosting the company's recurring revenues.
Verisk (VRSK) reported earnings 30 days ago. What's next for the stock?
Upgraded Verisk Analytics to a buy rating due to strong subscription revenue growth and visible growth levers, particularly through product innovation and value-based pricing. VRSK's subscription revenue growth accelerated to 11% y/y, driven by new product uptake and bundling, with potential for further acceleration in FY25. The shift to a value-based pricing model enhances pricing power and reduces revenue growth volatility, supporting a premium valuation despite a high forward PE.
The final trades of the day with CNBC's Melissa Lee and the Fast Money traders.
Verisk Analytics, Inc. (NASDAQ:VRSK ) Q4 2024 Earnings Conference Call February 26, 2025 8:30 AM ET Company Participants Stacey Brodbar - Head of IR and FP&A Lee Shavel - President and CEO Elizabeth Mann - CFO Saurabh Khemka - Co-President, Underwriting Solutions Conference Call Participants Toni Kaplan - Morgan Stanley George Tong - Goldman Sachs Surinder Thind - Jefferies Kelsey Zhu - Autonomous Research Faiza Alwy - Deutsche Bank Andrew Steinerman - J.P. Morgan Alex Kramm - UBS Ashish Sabadra - RBC Capital Markets David Motemaden - Evercore ISI Jeff Meuler - Baird Andrew Nicholas - William Blair Jason Haas - Wells Fargo Russell Quelch - Redburn Atlantic Jeff Silber - BMO Capital Markets Operator Good day, everyone, and welcome to the Verisk Fourth Quarter and Full Year 2024 Earnings Results Conference Call.
VRSK's top line benefits from increasing revenues from the Underwriting and Rating, and Claims segments in the fourth quarter of 2024.
Verisk Analytics (VRSK) came out with quarterly earnings of $1.61 per share, beating the Zacks Consensus Estimate of $1.60 per share. This compares to earnings of $1.40 per share a year ago.
Verisk Analytics reported a better-than-expected profit for the fourth quarter on Wednesday, driven by strong demand for its data analytics products used by insurers to assess policy risks.
VRSK's top line in the fourth quarter of 2024 is expected to have gained from strong subscription growth.
Verisk (VRSK) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report.
Verisk Analytics is poised for double-digit earnings growth, supported by strong institutional investor confidence and a robust subscription-based business model. The company boasts a high net income margin and competitive advantages in the P&C insurance industry, outperforming peers like Wolters Kluwer and Equifax. Despite potential risks from natural disasters affecting P&C clients, Verisk's profitability and strategic client relationships make it a Buy with a $300 price target.
The VRSK stock benefits from transitioning to a subscription-based model from a transaction business model.