Verisk Analytics, Inc. Common Stock Barclays 24th Annual Global Financial Services Conference

All right. Good morning, everybody. We'll keep this on time. Thank you for being here. Day two of our Global Financial Services Conference. For those of you who don't know me, my name is Manav Patnaik. I cover business and information services for Barclays. One of the companies under our coverage is Verisk, and we're very pleased to have Elizabeth Mann, the CFO, back with us here again. Thank you for being here, Elizabeth.

Thanks so much, Manav, for having us, and thank you all for coming.

I thought the best way to start would be to just talk about the current trends implied in your guide, the long-term guide. Maybe before that, let's just knock the question around the AccuLynx deal out of the way. Just the kind of latest update with the situation there.

Yeah. I think we've announced the AccuLynx transaction, which had been under litigation. We have appealed the decision now. That is under appeal. The hearings would start in late October. It is continuing to be handled on an expedited basis as the original trial was.

Got it. Okay. Fair enough. Maybe just getting back to this year's guide, maybe just remind us how the first half performance was, and then kind of the implied second half guide in there.

Yeah. Thanks a bunch. Yeah. Our revenue for the year, the first half, had been impacted by some near-term revenue headwinds that we have talked about. I am sure we will get into that. Short-term factors, the weather impact being the most significant, and primarily on the transactional revenue growth side, which is 17% of our revenues. Our subscription growth, at 83% of our revenues, continues to perform well. Then to your question on the second half, we have continued to say our expectation is that those short-term factors, we are working through them and working past the time that they would have an impact.

We expect to see continued accelerating growth into the second half of the year, with an expectation that we deliver within our quote-unquote, "our long term or Investor Day guidance range of 6%-8% organic constant currency growth." We expect to be in that range in the second half of the year. We have also said we are confident to deliver another year in that range, meaning the full year 2026 to be in that range.

Got it. Maybe just first follow up on the subscription side of the business. I mean, the first half of the year, the numbers actually got better, despite some of what we thought were probably tough comps heading in. What are some of the drivers of that slight acceleration in that subscription growth?

Yeah, I think we continue to see good outcomes and good interest from our customers on the value that's being delivered across the platform. It's not just one business or one upgrade. It is really across our largest businesses. Our forms, rules, and loss cost business, which is our largest business, continues to see the benefit of Core Lines Reimagined and the significant technology investments that we've put into our core products, including AI-based innovations. So that continues to express itself in the subscription growth there. Our catastrophe and risk solutions business just saw the launch of Verisk Synergy Studio, the new platform there, as well as the new model for U.S. hurricane risk. So that's seeing strong subscription growth as well.

Got it. I guess on both those, it sounds like you have a new platform and then Core Lines Reimagined is also new capabilities. Is there scope for further acceleration driven by those two? I guess, how early in the innings are we on those two contributors?

Yeah. I think we will continue to see the benefit of those play out over a long term, meaning a couple of years. Both of those businesses are some of our largest businesses, have very long-term contracts with customers, meaning three years to five years for some of the largest customers. So the benefits and enhancements that we've built in are being monetized in the subscription renewals. So we do anticipate continued strength.

Okay. But it's also fair to say that the current elevated or higher growth rate at subscription is sustainable. Then as the contracts come up for renewal, I suppose you can keep adding on more of the value in there.

Is that fair? That would absolutely be the intention.

We don't give specific- Yeah specific guidance by subscription or transactional revenue.