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

Oct 30, 2019 • 08:30 am ET

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

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Q & A
Operator
Operator

[Operator Instructions] Our first question comes from the line of Manav Patnaik. Your line is open.

Analyst
Manav Patnaik

Thank you. Good morning, gentlemen. My first question is just broadly around innovation, and I guess the existing contribution from those products. You mentioned a lot on the call today, and I think recently you launched the data exchange, court side [Phonetic], et cetera, et cetera. Is there anyway to parse out like how much of the last several years of innovation is contributing to the revenue growth today?

Executive
Scott G. Stephenson

It's kind of hard to separate the effects, Manav. The reason is that some of the innovation shows up as an entirely unique product with a very discrete revenue stream but it also shows up as increased penetration of an existing product or price realization related to an existing product. So it actually shows up in several places. And an example of that would be the Lens platform, which is supportive of the whole suite of WoodMac solutions, but also represents a discrete revenue stream in and of itself.

Operator
Operator

Thank you. Next question comes from the line of Toni Kaplan. Your line is open.

Analyst
Toni Kaplan

Thank you. Scott, you discussed the impact of the litigation with regard to Geomni, but could you just give us a sense of if you feel the future opportunity is reduced or I know you mentioned you're trying to find non-infringing ways to address the roofing opportunity. But are you shifting some focus to the non-roofing opportunities or I guess how should we think about the future here?

Executive
Scott G. Stephenson

So we've always been interested in remote imagery for a whole variety of reasons. And actually those reasons relate to use cases which are even beyond the insurance vertical, and we're energetically pursuing those as well. So, first of all, by way of context, what we do is a lot more than just roof reporting. And we remain very interested in the category. We think that imaging remotely and then being able to, in a very automated way, translate what you've seen with the sensor is just, that's an important technology for the world going forward, and we're intending to participate in it. We have participated in it, and there are a number of ways to monetize the imagery itself. And so, no, I don't think that our opportunity is -- we don't see it any differently than we did.

Analyst
Toni Kaplan

Thank you.

Executive
Scott G. Stephenson

You're welcome. Thanks.

Operator
Operator

Thank you. Next question comes from the line of Ashish Sabadra. Your line is open.

Analyst
Ashish Sabadra

Thanks for taking my question. Can just help size the annualized revenues of the two acquisitions Genscape and BuildFax, and then also just talk about the historic growth and margin profile for these two acquisitions? Thanks.

Executive
Lee M. Shavel

Ashish, thanks for the question. We haven't broken out the revenues for those acquisitions separately. It will become organic or still closing Genscape and expect that within the next couple of weeks, but would expect for the organic components to become incorporated in the fourth quarter results where