Verisk Analytics, Inc. (NASDAQ:VRSK) Q3 2019 Earnings Conference Call - Final Transcript

Oct 30, 2019 • 08:30 am ET


Verisk Analytics, Inc. (NASDAQ:VRSK) Q3 2019 Earnings Conference Call - Final Transcript


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Good day, everyone, and welcome to the Verisk Third Quarter 2019 Earnings Results Conference Call. My name is Jay and I'll be your conference operator for today. At this time, all participants have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. [Operator Instructions]

I would now like to turn the call over to Verisk's Head of Investors Relation, Ms. Stacey Brodbar, for opening remarks and introduction. Mr. Brodbar, you may begin your conference.

Stacey Brodbar

Thank you, Jay, and good day to everyone. We appreciate you joining us today for a discussion of our third quarter 2019 financial results. Today's call will be led by Scott Stephenson, Chairman, President and Chief Executive Officer, who will provide a brief overview of the strategic direction of our business. Mark Anquillare, Chief Operating Officer, will then provide an update on our Insurance segment. Lastly, Lee Shavel, Chief Financial Officer, will highlight some key points about our financial performance.

The earnings release referenced on this call as well as the associated 10-Q can be found in the Investors section of our website The earnings release has also been attached to an 8-K that we have furnished to the SEC. A replay of this call will be available for 30 days on our website and by dial in. Finally, as set forth in more detail in today's earnings release, I will remind everyone that today's call may include forward-looking statements about Verisk's future performance. Actual performance could differ materially from what is suggested by our comments today. Information about the factors that could affect future performance is contained in our recent SEC filings.

Now, I'll turn the call over to Scott.

Scott G. Stephenson

Thanks, Stacy. Good morning, everyone. I'm pleased to share that Verisk had another strong quarter of growth fueled by our market-leading innovation and continued focus on delivering an exceptional customer experience.

Verisk reported organic constant currency revenue growth of 7.6% and organic constant currency adjusted EBITDA growth of 7.7%. This growth was driven by strength in our Insurance segment and solid improvement in Energy and Specialized Markets. On the innovation front, I'm especially pleased to see strong revenue growth tied to the investments we have made in platform to analytic environments. Such environments include our visualized ClaimSearch for fraud fighting and claims adjudication, our Touchstone platform for catastrophe modeling, X1 for global property estimating, Lens for energy analytics and our power advocate platform for ingesting and understanding supply chain costs in the Energy space. These platforms take the level of intimacy with our customers and their workflows to a whole new level and deliver enhanced growth and operating leverage.

Specifically at Wood MacKenzie, this month, we released the second module to Lens called Global Upstream Valuations, which expand screening and valuation capabilities across the whole world. This solution enables our customers to analyze and interact with our comprehensive global upstream dataset to make faster data-driven commercial decisions.

We continue to be encouraged by the early