Verisk Analytics, Inc. (NASDAQ:VRSK) Q3 2019 Earnings Conference Call - Final Transcript
Oct 30, 2019 • 08:30 am ET
Scott G. Stephenson
results of Lens, but equally important is the fact that having a new and unique product in the marketplace has really energized our sales teams. This has translated into improving sales of our core research as well as strong growth in our breakout solutions, including subsurface, chemicals and the energy transition practice. Our energy transition practice was previously known as power and renewables, and this shift reflects our commitment to helping our clients cope with changes in the energy markets.
In our PowerAdvocate business, we are experiencing strong growth as we are helping our energy customers use data to more effectively spend their capital and save costs. We see opportunities to leverage the C-suite relationships from Wood MacKenzie to introduce PowerAdvocate at an enterprise-wide level and also to help bring our spend and cost solutions to new markets.
One of my leading indicators of the health of our business is how we are doing with the new disruptive players in our verticals as well as the largest and most established players. We are doing well on both fronts. We continue to win new business with InsurTechs as they find value in our full suite of solutions. And we continue to see progress in the cross-selling of even more valuable solutions to the established leaders in all three of our verticals. I've spent several weeks in Asia recently visiting with client leaders across our verticals from Saudi Arabia to India to Japan. What struck me was how alert the CEOs of the leading companies around the globe are to data analytic innovation and their extreme interest in Verisk's solutions. We see this driving an increasing level of inquiry and a growing pipeline of opportunities for our products.
I'm also pleased with the progress we have made with respect to our infrastructure and analytic methods over the past 90 days. We continue to make steady progress in moving our computing infrastructure to the cloud. In the past, you've heard me talk about how cloud capacity grows in a linear fashion, whereas on-premise computing gets retired episodically at what I call shelves. Because of the great work of our team, we have now reached the first of those shelves and are seeing the expected efficiencies. We will continue to pursue these infrastructure improvements in savings persistently business by business and product by product over the next few years.
The global expansion of our data science team is coming along nicely and we are delighted with the quality and capacity of our emerging data science team in Krakow. We are now out in the market with industry standard insurance solutions that incorporate machine-learned methodologies, which take the world of regulatory-ready methods to a whole new level.
On the strategic acquisition front, our focus continues to be on adding valuable data sets within our existing verticals that can be leveraged across our enterprise to drive high returns on capital. Genscape and BuildFax represent opportunities to both extend their businesses and enhance our existing products and