MSCI Reports Financial Results for First Quarter 2024
- Operating revenues increased by 14.8% to $680.0 million.
- Recurring subscription revenues were up by 15.2%.
- Adjusted EPS grew by 12.1% to $3.52.
- Approximately $126.8 million in dividends were paid in Q1 2024.
- Total Run Rate increased by 14.6% to $2,726.5 million.
- Operating income margin was 49.9% in Q1 2024.
- Adjusted EBITDA margin was 56.4% in Q1 2024.
- MSCI had 5,858 employees as of March 31, 2024, reflecting a 20.9% increase.
- Cash and cash equivalents stood at $519.3 million.
- Weighted average diluted shares outstanding decreased by 1.2% year-over-year.
- Retention Rate decreased to 92.8% in Q1 2024 from 95.2% in Q1 2023.
- Total operating expenses increased by 22.7% to $340.6 million.
- Operating income margin declined to 49.9% in Q1 2024 from 53.1% in Q1 2023.
- Adjusted EBITDA margin decreased to 56.4% in Q1 2024 from 58.2% in Q1 2023.
- Total debt to net income ratio was 3.9x as of March 31, 2024.
Insights
Financial and Operational Highlights for First Quarter 2024
(Note: Unless otherwise noted, percentage and other changes are relative to the three months ended March 31, 2023 (“first quarter 2023”) and Run Rate percentage changes are relative to March 31, 2023).
-
Operating revenues of
$680.0 million 14.8% ; Organic operating revenue growth of10.3% -
Recurring subscription revenues up
15.2% ; Asset-based fees up12.9% -
Operating margin of
49.9% ; Adjusted EBITDA margin of56.4% -
Diluted EPS of
$3.22 8.4% ; Adjusted EPS of$3.52 12.1% -
Organic recurring subscription Run Rate growth of
8.7% ; Retention Rate of92.8% -
Approximately
$126.8 million $1.60
|
|
Three Months Ended |
|||||||||
|
|
Mar. 31, |
|
Mar. 31, |
|
|
|||||
In thousands, except per share data (unaudited) |
|
2024 |
|
2023 |
|
% Change |
|||||
Operating revenues |
|
$ |
679,965 |
|
|
$ |
592,218 |
|
|
14.8 |
% |
Operating income |
|
$ |
339,382 |
|
|
$ |
314,602 |
|
|
7.9 |
% |
Operating margin % |
|
|
49.9 |
% |
|
|
53.1 |
% |
|
|
|
|
|
|
|
|
|
|
|||||
Net income |
|
$ |
255,954 |
|
|
$ |
238,728 |
|
|
7.2 |
% |
|
|
|
|
|
|
|
|||||
Diluted EPS |
|
$ |
3.22 |
|
|
$ |
2.97 |
|
|
8.4 |
% |
Adjusted EPS |
|
$ |
3.52 |
|
|
$ |
3.14 |
|
|
12.1 |
% |
|
|
|
|
|
|
|
|||||
Adjusted EBITDA |
|
$ |
383,573 |
|
|
$ |
344,729 |
|
|
11.3 |
% |
Adjusted EBITDA margin % |
|
|
56.4 |
% |
|
|
58.2 |
% |
|
|
|
“MSCI’s first-quarter financial results affirm that we can deliver solid earnings amid continued operating environment challenges. Record AUM balances in MSCI-linked index products drove strong revenue growth from asset-based fees, which helped offset lower subscription revenue. This highlights the underlying strength and stability of our all-weather franchise,” said Henry A. Fernandez, Chairman and CEO of MSCI.
“Our operating metrics showed resilience in our new recurring sales, especially in Analytics, which was our highest first quarter in a decade. Elevated cancels reflected a concentration of unusual client events, including a large merger among our banking clients. We are managing through these pressures and do not expect this level of cancels to continue,” Fernandez added.
“We are encouraged by our deep client engagement across segments, which is enabling us to accelerate product innovation. Our long-term strategy and recent acquisitions have positioned us well to benefit from secular trends that are reshaping our industry, such as portfolio indexation and customization, the growth of private assets and the global sustainability revolution. All of this supports our conviction that we can maintain attractive profitability and growth in 2024 and beyond.”
First Quarter Consolidated Results
Operating Revenues: Operating revenues were
Run Rate and Retention Rate: Total Run Rate at March 31, 2024 was
Expenses: Total operating expenses were
Adjusted EBITDA expenses were
Total operating expenses excluding the impact of foreign currency exchange rate fluctuations (“ex-FX”) and adjusted EBITDA expenses ex-FX increased
Operating Income: Operating income was
Headcount: As of March 31, 2024, we had 5,858 employees reflecting a
Other Expense (Income), Net: Other expense (income), net was
Income Taxes: The effective tax rate was
Net Income: As a result of the factors described above, net income was
Adjusted EBITDA: Adjusted EBITDA was
Index Segment:
Table 1A: Results (unaudited)
|
|
Three Months Ended |
|||||||||
|
|
Mar. 31, |
|
Mar. 31, |
|
|
|||||
In thousands |
|
2024 |
|
2023 |
|
% Change |
|||||
Operating revenues: |
|
|
|
|
|
|
|||||
Recurring subscriptions |
|
$ |
212,952 |
|
|
$ |
196,678 |
|
|
8.3 |
% |
Asset-based fees |
|
|
150,259 |
|
|
|
133,126 |
|
|
12.9 |
% |
Non-recurring |
|
|
10,661 |
|
|
|
9,578 |
|
|
11.3 |
% |
Total operating revenues |
|
|
373,872 |
|
|
|
339,382 |
|
|
10.2 |
% |
Adjusted EBITDA expenses |
|
|
96,112 |
|
|
|
85,700 |
|
|
12.1 |
% |
Adjusted EBITDA |
|
$ |
277,760 |
|
|
$ |
253,682 |
|
|
9.5 |
% |
Adjusted EBITDA margin % |
|
|
74.3 |
% |
|
|
74.7 |
% |
|
|
|
Index operating revenues were
Revenues from ETFs linked to MSCI equity indexes, driven by an increase in average AUM, drove more than
More than
Index Run Rate as of March 31, 2024, was
Analytics Segment:
Table 1B: Results (unaudited)
|
|
Three Months Ended |
|||||||||
|
|
Mar. 31, |
|
Mar. 31, |
|
|
|||||
In thousands |
|
2024 |
|
2023 |
|
% Change |
|||||
Operating revenues: |
|
|
|
|
|
|
|||||
Recurring subscriptions |
|
$ |
160,551 |
|
|
$ |
144,503 |
|
|
11.1 |
% |
Non-recurring |
|
|
3,415 |
|
|
|
2,567 |
|
|
33.0 |
% |
Total operating revenues |
|
|
163,966 |
|
|
|
147,070 |
|
|
11.5 |
% |
Adjusted EBITDA expenses |
|
|
91,754 |
|
|
|
86,290 |
|
|
6.3 |
% |
Adjusted EBITDA |
|
$ |
72,212 |
|
|
$ |
60,780 |
|
|
18.8 |
% |
Adjusted EBITDA margin % |
|
|
44.0 |
% |
|
|
41.3 |
% |
|
|
|
Analytics operating revenues were
Analytics Run Rate as of March 31, 2024, was
ESG and Climate Segment:
Table 1C: Results (unaudited)
|
|
Three Months Ended |
|||||||||
|
|
Mar. 31, |
|
Mar. 31, |
|
|
|||||
In thousands |
|
2024 |
|
2023 |
|
% Change |
|||||
Operating revenues: |
|
|
|
|
|
|
|||||
Recurring subscriptions |
|
$ |
76,418 |
|
|
$ |
65,732 |
|
|
16.3 |
% |
Non-recurring |
|
|
1,466 |
|
|
|
1,326 |
|
|
10.6 |
% |
Total operating revenues |
|
|
77,884 |
|
|
|
67,058 |
|
|
16.1 |
% |
Adjusted EBITDA expenses |
|
|
56,793 |
|
|
|
49,182 |
|
|
15.5 |
% |
Adjusted EBITDA |
|
$ |
21,091 |
|
|
$ |
17,876 |
|
|
18.0 |
% |
Adjusted EBITDA margin % |
|
|
27.1 |
% |
|
|
26.7 |
% |
|
|
|
ESG and Climate operating revenues were
ESG and Climate Run Rate as of March 31, 2024, was
All Other – Private Assets Segment:
Table 1D: Results (unaudited)
|
|
Three Months Ended |
|||||||||
|
|
Mar. 31, |
|
Mar. 31, |
|
|
|||||
In thousands |
|
2024 |
|
2023 |
|
% Change |
|||||
Operating revenues: |
|
|
|
|
|
|
|||||
Recurring subscriptions |
|
$ |
63,134 |
|
|
$ |
38,334 |
|
|
64.7 |
% |
Non-recurring |
|
|
1,109 |
|
|
|
374 |
|
|
196.5 |
% |
Total operating revenues |
|
|
64,243 |
|
|
|
38,708 |
|
|
66.0 |
% |
Adjusted EBITDA expenses |
|
|
51,733 |
|
|
|
26,317 |
|
|
96.6 |
% |
Adjusted EBITDA |
|
$ |
12,510 |
|
|
$ |
12,391 |
|
|
1.0 |
% |
Adjusted EBITDA margin % |
|
|
19.5 |
% |
|
|
32.0 |
% |
|
|
|
All Other – Private Assets operating revenues, which reflect the Real Assets and Private Capital Solutions operating segments, were
All Other – Private Assets Run Rate, which reflects the Real Assets and Private Capital Solutions operating segments, was
Select Balance Sheet Items and Capital Allocation
Cash Balances and Outstanding Debt: Cash and cash equivalents was
Total principal amounts of debt outstanding as of March 31, 2024, were
MSCI seeks to maintain total debt to adjusted EBITDA in a target range of 3.0x to 3.5x.
During the quarter, we amended and restated the credit agreement governing our credit facilities (the “Credit Agreement”) to provide for a new revolving credit facility (the “Revolving Credit Facility”) with an aggregate of
Capex and Cash Flow: Capex was
Share Count and Share Repurchases: Weighted average diluted shares outstanding were 79.5 million in first quarter 2024, down
Dividends: Approximately
Full-Year 2024 Guidance
MSCI’s guidance for the year ending December 31, 2024 (“Full-Year 2024”) is based on assumptions about a number of factors, in particular related to macroeconomic factors and the capital markets. These assumptions are subject to uncertainty, and actual results for the year could differ materially from our current guidance, including as a result of the uncertainties, risks and assumptions discussed in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of our Annual Report on Form 10-K, as updated in quarterly reports on Form 10-Q and current reports on Form 8-K filed or furnished with the SEC. See “Forward-Looking Statements” below.
Guidance Item |
Current Guidance for Full-Year 2024 |
Operating Expense |
|
Adjusted EBITDA Expense |
|
Interest Expense (including amortization of financing fees)(1) |
|
Depreciation & Amortization Expense |
|
Effective Tax Rate |
|
Capital Expenditures |
|
Net Cash Provided by Operating Activities |
|
Free Cash Flow |
|
(1) A portion of our annual interest expense is from our variable rate indebtedness under our Revolving Credit Facility, while the majority is from fixed rate senior unsecured notes. Changes to the secured overnight funding rate (“SOFR”) and indebtedness levels can cause our annual interest expense to vary.
Conference Call Information
MSCI’s senior management will review the first quarter 2024 results on Tuesday, April 23, 2024 at 10:00 AM Eastern Time. To listen to the live event via webcast, visit the events and presentations section of MSCI’s Investor Relations website, https://ir.msci.com/events-and-presentations, or via telephone, dial 1-833-630-1956 within
About MSCI Inc.
MSCI is a leading provider of critical decision support tools and services for the global investment community. With over 50 years of expertise in research, data and technology, we power better investment decisions by enabling clients to understand and analyze key drivers of risk and return and confidently build more effective portfolios. We create industry-leading research-enhanced solutions that clients use to gain insight into and improve transparency across the investment process. To learn more, please visit www.msci.com. MSCI#IR
Forward-Looking Statements
This earnings release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including without limitation, MSCI’s Full-Year 2024 guidance. These forward-looking statements relate to future events or to future financial performance and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these statements. In some cases, you can identify forward-looking statements by the use of words such as “may,” “could,” “expect,” “intend,” “plan,” “seek,” “anticipate,” “believe,” “estimate,” “predict,” “potential” or “continue,” or the negative of these terms or other comparable terminology. You should not place undue reliance on forward-looking statements because they involve known and unknown risks, uncertainties and other factors that are, in some cases, beyond MSCI’s control and that could materially affect actual results, levels of activity, performance or achievements.
Other factors that could materially affect actual results, levels of activity, performance or achievements can be found in MSCI’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023 filed with the Securities and Exchange Commission (“SEC”) on February 9, 2024 and in quarterly reports on Form 10-Q and current reports on Form 8-K filed or furnished with the SEC. If any of these risks or uncertainties materialize, or if MSCI’s underlying assumptions prove to be incorrect, actual results may vary significantly from what MSCI projected. Any forward-looking statement in this earnings release reflects MSCI’s current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to MSCI’s operations, results of operations, growth strategy and liquidity. MSCI assumes no obligation to publicly update or revise these forward-looking statements for any reason, whether as a result of new information, future events, or otherwise, except as required by law.
Website and Social Media Disclosure
MSCI uses its Investor Relations homepage and its Corporate Responsibility homepage as channels of distribution of company information. The information MSCI posts through these channels may be deemed material. Accordingly, investors should monitor these channels, in addition to following MSCI’s press releases, SEC filings and public conference calls and webcasts. In addition, you may automatically receive email alerts and other information about MSCI when you enroll your email address by visiting the “Email Alerts” section of MSCI’s Investor Relations homepage at http://ir.msci.com/email-alerts. The contents of MSCI’s website, including its quarterly updates, blog, podcasts and social media channels are not, however, incorporated by reference into this earnings release.
Notes Regarding the Use of Operating Metrics
MSCI has presented supplemental key operating metrics as part of this earnings release, including Retention Rate, Run Rate, subscription sales, subscription cancellations and non-recurring sales.
Retention Rate is an important metric because subscription cancellations decrease our Run Rate and ultimately our future operating revenues over time. The annual Retention Rate represents the retained subscription Run Rate (subscription Run Rate at the beginning of the fiscal year less actual cancels during the year) as a percentage of the subscription Run Rate at the beginning of the fiscal year.
The Retention Rate for a non-annual period is calculated by annualizing the cancellations for which we have received a notice of termination or for which we believe there is an intention not to renew or discontinue the subscription during the non-annual period, and we believe that such notice or intention evidences the client’s final decision to terminate or not renew the applicable agreement, even though such notice is not effective until a later date. This annualized cancellation figure is then divided by the subscription Run Rate at the beginning of the fiscal year to calculate a cancellation rate. This cancellation rate is then subtracted from
Retention Rate is computed by operating segment on a product/service-by-product/service basis. In general, if a client reduces the number of products or services to which it subscribes within a segment, or switches between products or services within a segment, we treat it as a cancellation for purposes of calculating our Retention Rate except in the case of a product or service switch that management considers to be a replacement product or service. In those replacement cases, only the net change to the client subscription, if a decrease, is reported as a cancel. In the Analytics and the ESG and Climate operating segments, substantially all product or service switches are treated as replacement products or services and netted in this manner, while in our Index and Real Assets operating segments, product or service switches that are treated as replacement products or services and receive netting treatment occur only in certain limited instances. In addition, we treat any reduction in fees resulting from a down-sell of the same product or service as a cancellation to the extent of the reduction. We do not calculate Retention Rate for that portion of our Run Rate attributable to assets in index-linked investment products or futures and options contracts, in each case, linked to our indexes.
Run Rate estimates at a particular point in time the annualized value of the recurring revenues under our client license agreements (“Client Contracts”) for the next 12 months, assuming all Client Contracts that come up for renewal, or reach the end of the committed subscription period, are renewed and assuming then-current currency exchange rates, subject to the adjustments and exclusions described below. For any Client Contract where fees are linked to an investment product’s assets or trading volume/fees, the Run Rate calculation reflects, for ETFs, the market value on the last trading day of the period, for futures and options, the most recent quarterly volumes and/or reported exchange fees, and for other non-ETF products, the most recent client-reported assets. Run Rate does not include fees associated with “one-time” and other non-recurring transactions. In addition, we add to Run Rate the annualized fee value of recurring new sales, whether to existing or new clients, when we execute Client Contracts, even though the license start date, and associated revenue recognition, may not be effective until a later date. We remove from Run Rate the annualized fee value associated with products or services under any Client Contract with respect to which we have received a notice of termination, non-renewal or an indication the client does not intend to continue their subscription during the period and have determined that such notice evidences the client’s final decision to terminate or not renew the applicable products or services, even though such notice is not effective until a later date.
“Organic recurring subscription Run Rate growth” is defined as the period over period Run Rate growth, excluding the impact of changes in foreign currency and the first year impact of any acquisitions. It is also adjusted for divestitures. Changes in foreign currency are calculated by applying the currency exchange rate from the comparable prior period to current period foreign currency denominated Run Rate.
Sales represents the annualized value of products and services clients commit to purchase from MSCI and will result in additional operating revenues. Non-recurring sales represent the actual value of the customer agreements entered into during the period and are not a component of Run Rate. New recurring subscription sales represent additional selling activities, such as new customer agreements, additions to existing agreements or increases in price that occurred during the period and are additions to Run Rate. Subscription cancellations reflect client activities during the period, such as discontinuing products and services and/or reductions in price, resulting in reductions to Run Rate. Net new recurring subscription sales represent the amount of new recurring subscription sales net of subscription cancellations during the period, which reflects the net impact to Run Rate during the period.
Total gross sales represent the sum of new recurring subscription sales and non-recurring sales. Total net sales represent the total gross sales net of the impact from subscription cancellations.
Notes Regarding the Use of Non-GAAP Financial Measures
MSCI has presented supplemental non-GAAP financial measures as part of this earnings release. Reconciliations are provided in Tables 9 through 13 below that reconcile each non-GAAP financial measure with the most comparable GAAP measure. The non-GAAP financial measures presented in this earnings release should not be considered as alternative measures for the most directly comparable GAAP financial measures. The non-GAAP financial measures presented in this earnings release are used by management to monitor the financial performance of the business, inform business decision-making and forecast future results.
“Adjusted EBITDA” is defined as net income before (1) provision for income taxes, (2) other expense (income), net, (3) depreciation and amortization of property, equipment and leasehold improvements, (4) amortization of intangible assets and, at times, (5) certain other transactions or adjustments, including, when applicable, certain acquisition-related integration and transaction costs.
“Adjusted EBITDA expenses” is defined as operating expenses less depreciation and amortization of property, equipment and leasehold improvements and amortization of intangible assets and, at times, certain other transactions or adjustments, including, when applicable, certain acquisition-related integration and transaction costs.
“Adjusted EBITDA margin” is defined as adjusted EBITDA divided by operating revenues.
“Adjusted net income” and “adjusted EPS” are defined as net income and diluted EPS, respectively, before the after-tax impact of: the amortization of acquired intangible assets, including the amortization of the basis difference between the cost of the equity method investment and MSCI’s share of the net assets of the investee at historical carrying value and, at times, certain other transactions or adjustments, including, when applicable, the impact related to certain acquisition-related integration and transaction costs, the impact related to write-off of deferred fees on debt extinguishment and the impact related to gain from changes in ownership interest of investees.
“Capex” is defined as capital expenditures plus capitalized software development costs.
“Free cash flow” is defined as net cash provided by operating activities, less Capex.
“Organic operating revenue growth” is defined as operating revenue growth compared to the prior year period excluding the impact of acquired businesses, divested businesses and foreign currency exchange rate fluctuations.
Asset-based fees ex-FX does not adjust for the impact from foreign currency exchange rate fluctuations on the underlying assets under management (“AUM”).
We believe adjusted EBITDA, adjusted EBITDA margin and adjusted EBITDA expenses are meaningful measures of the operating performance of MSCI because they adjust for significant one-time, unusual or non-recurring items as well as eliminate the accounting effects of certain capital spending and acquisitions that do not directly affect what management considers to be our ongoing operating performance in the period.
We believe adjusted net income and adjusted EPS are meaningful measures of the performance of MSCI because they adjust for the after-tax impact of significant one-time, unusual or non-recurring items as well as eliminate the impact of any transactions that do not directly affect what management considers to be our ongoing operating performance in the period. We also exclude the after-tax impact of the amortization of acquired intangible assets and amortization of the basis difference between the cost of the equity method investment and MSCI’s share of the net assets of the investee at historical carrying value, as these non-cash amounts are significantly impacted by the timing and size of each acquisition and therefore not meaningful to the ongoing operating performance in the period.
We believe that free cash flow is useful to investors because it relates the operating cash flow of MSCI to the capital that is spent to continue and improve business operations, such as investment in MSCI’s existing products. Further, free cash flow indicates our ability to strengthen MSCI’s balance sheet, repay our debt obligations, pay cash dividends and repurchase shares of our common stock.
We believe organic operating revenue growth is a meaningful measure of the operating performance of MSCI because it adjusts for the impact of foreign currency exchange rate fluctuations and excludes the impact of operating revenues attributable to acquired and divested businesses for the comparable prior year period, providing insight into our ongoing operating performance for the period(s) presented.
We believe that the non-GAAP financial measures presented in this earnings release facilitate meaningful period-to-period comparisons and provide a baseline for the evaluation of future results.
Adjusted EBITDA expenses, adjusted EBITDA margin, adjusted EBITDA, adjusted net income, adjusted EPS, Capex, free cash flow and organic operating revenue growth are not defined in the same manner by all companies and may not be comparable to similarly-titled non-GAAP financial measures of other companies. These measures can differ significantly from company to company depending on, among other things, long-term strategic decisions regarding capital structure, the tax jurisdictions in which companies operate and capital investments. Accordingly, the Company’s computation of these measures may not be comparable to similarly-titled measures computed by other companies.
Notes Regarding Adjusting for the Impact of Foreign Currency Exchange Rate Fluctuations
Foreign currency exchange rate fluctuations reflect the difference between the current period results as reported compared to the current period results recalculated using the foreign currency exchange rates in effect for the comparable prior period. While operating revenues adjusted for the impact of foreign currency fluctuations includes asset-based fees that have been adjusted for the impact of foreign currency fluctuations, the underlying AUM, which is the primary component of asset-based fees, is not adjusted for foreign currency fluctuations. Approximately three-fifths of the AUM is invested in securities denominated in currencies other than the
Table 2: Condensed Consolidated Statements of Income (unaudited)
|
|
Three Months Ended |
|||||||||
|
|
Mar. 31, |
|
Mar. 31, |
|
% |
|||||
In thousands, except per share data |
|
2024 |
|
2023 |
|
Change |
|||||
Operating revenues |
|
$ |
679,965 |
|
|
$ |
592,218 |
|
|
14.8 |
% |
Operating expenses: |
|
|
|
|
|
|
|||||
Cost of revenues (exclusive of depreciation and amortization) |
|
|
128,514 |
|
|
|
108,647 |
|
|
18.3 |
% |
Selling and marketing |
|
|
72,168 |
|
|
|
66,475 |
|
|
8.6 |
% |
Research and development |
|
|
40,525 |
|
|
|
31,323 |
|
|
29.4 |
% |
General and administrative |
|
|
56,691 |
|
|
|
41,044 |
|
|
38.1 |
% |
Amortization of intangible assets |
|
|
38,604 |
|
|
|
24,667 |
|
|
56.5 |
% |
Depreciation and amortization of property, |
|
|
|
|
|
|
|||||
equipment and leasehold improvements |
|
|
4,081 |
|
|
|
5,460 |
|
|
(25.3 |
)% |
Total operating expenses(1) |
|
|
340,583 |
|
|
|
277,616 |
|
|
22.7 |
% |
|
|
|
|
|
|
|
|||||
Operating income |
|
|
339,382 |
|
|
|
314,602 |
|
|
7.9 |
% |
|
|
|
|
|
|
|
|||||
Interest income |
|
|
(6,048 |
) |
|
|
(10,362 |
) |
|
(41.6 |
)% |
Interest expense |
|
|
46,674 |
|
|
|
46,206 |
|
|
1.0 |
% |
Other expense (income) |
|
|
2,863 |
|
|
|
2,386 |
|
|
20.0 |
% |
Other expense (income), net |
|
|
43,489 |
|
|
|
38,230 |
|
|
13.8 |
% |
|
|
|
|
|
|
|
|||||
Income before provision for income taxes |
|
|
295,893 |
|
|
|
276,372 |
|
|
7.1 |
% |
|
|
|
|
|
|
|
|||||
Provision for income taxes |
|
|
39,939 |
|
|
|
37,644 |
|
|
6.1 |
% |
Net income |
|
$ |
255,954 |
|
|
$ |
238,728 |
|
|
7.2 |
% |
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|||||
Earnings per basic common share |
|
$ |
3.23 |
|
|
$ |
2.98 |
|
|
8.4 |
% |
|
|
|
|
|
|
|
|||||
Earnings per diluted common share |
|
$ |
3.22 |
|
|
$ |
2.97 |
|
|
8.4 |
% |
|
|
|
|
|
|
|
|||||
Weighted average shares outstanding used in computing earnings per share: |
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|||||
Basic |
|
|
79,195 |
|
|
|
80,041 |
|
|
(1.1 |
)% |
Diluted |
|
|
79,508 |
|
|
|
80,482 |
|
|
(1.2 |
)% |
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|||||
(1) Includes stock-based compensation expense of |
|||||||||||
Table 3: Selected Balance Sheet Items (unaudited)
|
|
As of |
||
|
|
Mar. 31, |
|
Dec. 31, |
In thousands |
|
2024 |
|
2023 |
Cash and cash equivalents (1) |
|
|
|
|
Accounts receivable, net of allowances |
|
|
|
|
|
|
|
|
|
Current deferred revenue |
|
|
|
|
Current portion of long-term debt (2) |
|
$— |
|
|
Long-term debt (3) |
|
|
|
|
|
|
|
|
|
(1) Includes restricted cash of |
||||
(2) Consists of gross current portion of long-term debt, net of deferred financing fees. Gross current portion of long-term debt was |
||||
(3) Consists of gross long-term debt, net of deferred financing fees. Gross long-term debt was |
||||
Table 4: Selected Cash Flow Items (unaudited)
|
|
Three Months Ended |
|||||||||
|
|
Mar. 31, |
|
Mar. 31, |
|
% |
|||||
In thousands |
|
2024 |
|
2023 |
|
Change |
|||||
Net cash provided by operating activities |
|
$ |
300,137 |
|
|
$ |
264,141 |
|
|
13.6 |
% |
Net cash used in investing activities |
|
|
(32,333 |
) |
|
|
(21,762 |
) |
|
(48.6 |
)% |
Net cash (used in) provided by financing activities |
|
|
(207,223 |
) |
|
|
(158,293 |
) |
|
(30.9 |
)% |
Effect of exchange rate changes |
|
|
(2,959 |
) |
|
|
2,958 |
|
|
(200.0 |
)% |
Net (decrease) increase in cash, cash equivalents and restricted cash |
|
$ |
57,622 |
|
|
$ |
87,044 |
|
|
(33.8 |
)% |
|
|
|
|
|
|
|
|||||
Table 5: Operating Results by Segment and Revenue Type (unaudited)
Index |
|
Three Months Ended |
|||||||||
|
|
Mar. 31, |
|
Mar. 31, |
|
% |
|||||
In thousands |
|
2024 |
|
2023 |
|
Change |
|||||
Operating revenues: |
|
|
|
|
|
|
|||||
Recurring subscriptions |
|
$ |
212,952 |
|
|
$ |
196,678 |
|
|
8.3 |
% |
Asset-based fees |
|
|
150,259 |
|
|
|
133,126 |
|
|
12.9 |
% |
Non-recurring |
|
|
10,661 |
|
|
|
9,578 |
|
|
11.3 |
% |
Total operating revenues |
|
|
373,872 |
|
|
|
339,382 |
|
|
10.2 |
% |
Adjusted EBITDA expenses |
|
|
96,112 |
|
|
|
85,700 |
|
|
12.1 |
% |
Adjusted EBITDA |
|
$ |
277,760 |
|
|
$ |
253,682 |
|
|
9.5 |
% |
Adjusted EBITDA margin % |
|
|
74.3 |
% |
|
|
74.7 |
% |
|
|
|
|
|
|
|
|
|
|
|||||
Analytics |
|
Three Months Ended |
|||||||||
|
|
Mar. 31, |
|
Mar. 31, |
|
% |
|||||
In thousands |
|
2024 |
|
2023 |
|
Change |
|||||
Operating revenues: |
|
|
|
|
|
|
|||||
Recurring subscriptions |
|
$ |
160,551 |
|
|
$ |
144,503 |
|
|
11.1 |
% |
Non-recurring |
|
|
3,415 |
|
|
|
2,567 |
|
|
33.0 |
% |
Total operating revenues |
|
|
163,966 |
|
|
|
147,070 |
|
|
11.5 |
% |
Adjusted EBITDA expenses |
|
|
91,754 |
|
|
|
86,290 |
|
|
6.3 |
% |
Adjusted EBITDA |
|
$ |
72,212 |
|
|
$ |
60,780 |
|
|
18.8 |
% |
Adjusted EBITDA margin % |
|
|
44.0 |
% |
|
|
41.3 |
% |
|
|
|
|
|
|
|
|
|
|
|||||
ESG and Climate |
|
Three Months Ended |
|||||||||
|
|
Mar. 31, |
|
Mar. 31, |
|
% |
|||||
In thousands |
|
2024 |
|
2023 |
|
Change |
|||||
Operating revenues: |
|
|
|
|
|
|
|||||
Recurring subscriptions |
|
$ |
76,418 |
|
|
$ |
65,732 |
|
|
16.3 |
% |
Non-recurring |
|
|
1,466 |
|
|
|
1,326 |
|
|
10.6 |
% |
Total operating revenues |
|
|
77,884 |
|
|
|
67,058 |
|
|
16.1 |
% |
Adjusted EBITDA expenses |
|
|
56,793 |
|
|
|
49,182 |
|
|
15.5 |
% |
Adjusted EBITDA |
|
$ |
21,091 |
|
|
$ |
17,876 |
|
|
18.0 |
% |
Adjusted EBITDA margin % |
|
|
27.1 |
% |
|
|
26.7 |
% |
|
|
|
|
|
|
|
|
|
|
|||||
All Other - Private Assets |
|
Three Months Ended |
|||||||||
|
|
Mar. 31, |
|
Mar. 31, |
|
% |
|||||
In thousands |
|
2024 |
|
2023 |
|
Change |
|||||
Operating revenues: |
|
|
|
|
|
|
|||||
Recurring subscriptions |
|
$ |
63,134 |
|
|
$ |
38,334 |
|
|
64.7 |
% |
Non-recurring |
|
|
1,109 |
|
|
|
374 |
|
|
196.5 |
% |
Total operating revenues |
|
|
64,243 |
|
|
|
38,708 |
|
|
66.0 |
% |
Adjusted EBITDA expenses |
|
|
51,733 |
|
|
|
26,317 |
|
|
96.6 |
% |
Adjusted EBITDA |
|
$ |
12,510 |
|
|
$ |
12,391 |
|
|
1.0 |
% |
Adjusted EBITDA margin % |
|
|
19.5 |
% |
|
|
32.0 |
% |
|
|
|
|
|
|
|
|
|
|
|||||
Consolidated |
|
Three Months Ended |
|||||||||
|
|
Mar. 31, |
|
Mar. 31, |
|
% |
|||||
In thousands |
|
2024 |
|
2023 |
|
Change |
|||||
Operating revenues: |
|
|
|
|
|
|
|||||
Recurring subscriptions |
|
$ |
513,055 |
|
|
$ |
445,247 |
|
|
15.2 |
% |
Asset-based fees |
|
|
150,259 |
|
|
|
133,126 |
|
|
12.9 |
% |
Non-recurring |
|
|
16,651 |
|
|
|
13,845 |
|
|
20.3 |
% |
Operating revenues total |
|
|
679,965 |
|
|
|
592,218 |
|
|
14.8 |
% |
Adjusted EBITDA expenses |
|
|
296,392 |
|
|
|
247,489 |
|
|
19.8 |
% |
Adjusted EBITDA |
|
$ |
383,573 |
|
|
$ |
344,729 |
|
|
11.3 |
% |
Operating margin % |
|
|
49.9 |
% |
|
|
53.1 |
% |
|
|
|
Adjusted EBITDA margin % |
|
|
56.4 |
% |
|
|
58.2 |
% |
|
|
|
Table 6: Sales and Retention Rate by Segment (unaudited)(1)
|
|
Three Months Ended |
||||||
|
|
Mar. 31, |
|
Mar. 31, |
||||
In thousands |
|
|
2024 |
|
|
|
2023 |
|
Index |
|
|
|
|
||||
New recurring subscription sales |
|
$ |
23,513 |
|
|
$ |
25,090 |
|
Subscription cancellations |
|
|
(14,702 |
) |
|
|
(7,082 |
) |
Net new recurring subscription sales |
|
$ |
8,811 |
|
|
$ |
18,008 |
|
Non-recurring sales |
|
$ |
12,811 |
|
|
$ |
12,782 |
|
Total gross sales |
|
$ |
36,324 |
|
|
$ |
37,872 |
|
Total Index net sales |
|
$ |
21,622 |
|
|
$ |
30,790 |
|
|
|
|
|
|
||||
Index Retention Rate |
|
|
93.2 |
% |
|
|
96.4 |
% |
|
|
|
|
|
||||
Analytics |
|
|
|
|
||||
New recurring subscription sales |
|
$ |
14,088 |
|
|
$ |
13,674 |
|
Subscription cancellations |
|
|
(10,794 |
) |
|
|
(9,183 |
) |
Net new recurring subscription sales |
|
$ |
3,294 |
|
|
$ |
4,491 |
|
Non-recurring sales |
|
$ |
2,462 |
|
|
$ |
1,370 |
|
Total gross sales |
|
$ |
16,550 |
|
|
$ |
15,044 |
|
Total Analytics net sales |
|
$ |
5,756 |
|
|
$ |
5,861 |
|
|
|
|
|
|
||||
Analytics Retention Rate(2) |
|
|
93.5 |
% |
|
|
94.0 |
% |
|
|
|
|
|
||||
ESG and Climate |
|
|
|
|
||||
New recurring subscription sales |
|
$ |
11,471 |
|
|
$ |
12,486 |
|
Subscription cancellations |
|
|
(7,351 |
) |
|
|
(2,635 |
) |
Net new recurring subscription sales |
|
$ |
4,120 |
|
|
$ |
9,851 |
|
Non-recurring sales |
|
$ |
1,672 |
|
|
$ |
1,219 |
|
Total gross sales |
|
$ |
13,143 |
|
|
$ |
13,705 |
|
Total ESG and Climate net sales |
|
$ |
5,792 |
|
|
$ |
11,070 |
|
|
|
|
|
|
||||
ESG and Climate Retention Rate(3) |
|
|
90.8 |
% |
|
|
96.1 |
% |
|
|
|
|
|
||||
All Other - Private Assets |
|
|
|
|
||||
New recurring subscription sales |
|
$ |
8,264 |
|
|
$ |
5,143 |
|
Subscription cancellations |
|
|
(4,922 |
) |
|
|
(2,856 |
) |
Net new recurring subscription sales |
|
$ |
3,342 |
|
|
$ |
2,287 |
|
Non-recurring sales |
|
$ |
1,089 |
|
|
$ |
213 |
|
Total gross sales |
|
$ |
9,353 |
|
|
$ |
5,356 |
|
Total All Other - Private Assets net sales |
|
$ |
4,431 |
|
|
$ |
2,500 |
|
|
|
|
|
|
||||
All Other - Private Assets Retention Rate(4) |
|
|
92.2 |
% |
|
|
92.1 |
% |
|
|
|
|
|
||||
Consolidated |
|
|
|
|
||||
New recurring subscription sales |
|
$ |
57,336 |
|
|
$ |
56,393 |
|
Subscription cancellations |
|
|
(37,769 |
) |
|
|
(21,756 |
) |
Net new recurring subscription sales |
|
$ |
19,567 |
|
|
$ |
34,637 |
|
Non-recurring sales |
|
$ |
18,034 |
|
|
$ |
15,584 |
|
Total gross sales |
|
$ |
75,370 |
|
|
$ |
71,977 |
|
Total net sales |
|
$ |
37,601 |
|
|
$ |
50,221 |
|
|
|
|
|
|
||||
Total Retention Rate(5) |
|
|
92.8 |
% |
|
|
95.2 |
% |
|
|
|
|
|
||||
(1) See "Notes Regarding the Use of Operating Metrics" for details regarding the definition of new recurring subscription sales, subscription cancellations, net new recurring subscription sales, non-recurring sales, total gross sales, total net sales and Retention Rate. |
||||||||
(2) Retention rate for Analytics excluding the impact of the acquisition of Fabric was |
||||||||
(3) Retention rate for ESG and Climate excluding the impact of the acquisition of Trove was |
||||||||
(4) Retention rate for All Other – Private Assets excluding the impact of the acquisition of Burgiss was |
||||||||
(5) Total retention rate excluding the impact of the acquisitions of Fabric, Trove and Burgiss was |
||||||||
Table 7: AUM in ETFs Linked to MSCI Equity Indexes (unaudited)(1)(2)
|
|
Three Months Ended |
||||||||||||||
|
|
Mar. 31 |
|
Jun. 30 |
|
Sep. 30 |
|
Dec. 31 |
|
Mar. 31 |
||||||
In billions |
|
2023 |
|
2023 |
|
2023 |
|
2023 |
|
2024 |
||||||
Beginning Period AUM in ETFs linked to |
|
|
|
|
|
|
|
|
|
|
||||||
MSCI equity indexes |
|
$ |
1,222.9 |
|
$ |
1,305.4 |
|
$ |
1,372.5 |
|
|
$ |
1,322.8 |
|
$ |
1,468.9 |
Market Appreciation/(Depreciation) |
|
|
75.1 |
|
|
48.4 |
|
|
(56.1 |
) |
|
|
130.5 |
|
|
92.8 |
Cash Inflows |
|
|
7.4 |
|
|
18.7 |
|
|
6.4 |
|
|
|
15.6 |
|
|
20.9 |
Period-End AUM in ETFs linked to |
|
|
|
|
|
|
|
|
|
|
||||||
MSCI equity indexes |
|
$ |
1,305.4 |
|
$ |
1,372.5 |
|
$ |
1,322.8 |
|
|
$ |
1,468.9 |
|
$ |
1,582.6 |
|
|
|
|
|
|
|
|
|
|
|
||||||
Period Average AUM in ETFs linked to |
|
|
|
|
|
|
|
|
|
|
||||||
MSCI equity indexes |
|
$ |
1,287.5 |
|
$ |
1,333.8 |
|
$ |
1,376.5 |
|
|
$ |
1,364.9 |
|
$ |
1,508.8 |
|
|
|
|
|
|
|
|
|
|
|
||||||
Period-End Basis Point Fee(3) |
|
|
2.53 |
|
|
2.52 |
|
|
2.51 |
|
|
|
2.50 |
|
|
2.48 |
|
|
|
|
|
|
|
|
|
|
|
||||||
|
||||||||||||||||
(1) The historical values of the AUM in ETFs linked to our equity indexes as of the last day of the month and the monthly average balance can be found under the link “AUM in ETFs Linked to MSCI Equity Indexes” on our Investor Relations homepage at http://ir.msci.com. Information contained on our website is not incorporated by reference into this Press Release or any other report furnished or filed with the SEC. The AUM in ETFs also includes AUM in Exchange Traded Notes, the value of which is less than |
||||||||||||||||
(2) The value of AUM in ETFs linked to MSCI equity indexes is calculated by multiplying the equity ETFs net asset value by the number of shares outstanding. |
||||||||||||||||
(3) Based on period-end Run Rate for ETFs linked to MSCI equity indexes using period-end AUM. |
||||||||||||||||
Table 8: Run Rate by Segment and Type (unaudited)(1)
|
|
As of |
|
|
|||||
|
|
Mar. 31, |
|
Mar. 31, |
|
% |
|||
In thousands |
|
2024 |
|
2023 |
|
Change |
|||
Index |
|
|
|
|
|
|
|||
Recurring subscriptions |
|
$ |
869,931 |
|
$ |
795,621 |
|
9.3 |
% |
Asset-based fees |
|
|
619,431 |
|
|
534,491 |
|
15.9 |
% |
Index Run Rate |
|
|
1,489,362 |
|
|
1,330,112 |
|
12.0 |
% |
|
|
|
|
|
|
|
|||
Analytics Run Rate |
|
|
662,079 |
|
|
621,611 |
|
6.5 |
% |
|
|
|
|
|
|
|
|||
ESG and Climate Run Rate |
|
|
320,611 |
|
|
278,947 |
|
14.9 |
% |
|
|
|
|
|
|
|
|||
All Other - Private Assets Run Rate |
|
|
254,432 |
|
|
148,440 |
|
71.4 |
% |
|
|
|
|
|
|
|
|||
Total Run Rate |
|
$ |
2,726,484 |
|
$ |
2,379,110 |
|
14.6 |
% |
|
|
|
|
|
|
|
|||
Total recurring subscriptions |
|
$ |
2,107,053 |
|
$ |
1,844,619 |
|
14.2 |
% |
Total asset-based fees |
|
|
619,431 |
|
|
534,491 |
|
15.9 |
% |
Total Run Rate |
|
$ |
2,726,484 |
|
$ |
2,379,110 |
|
14.6 |
% |
|
|
|
|
|
|
|
|||
(1) See "Notes Regarding the Use of Operating Metrics" for details regarding the definition of Run Rate. |
|||||||||
Table 9: Reconciliation of Net Income to Adjusted EBITDA (unaudited)
|
|
Three Months Ended |
||||
|
|
Mar. 31, |
|
Mar. 31, |
||
In thousands |
|
2024 |
|
2023 |
||
Net income |
|
$ |
255,954 |
|
$ |
238,728 |
Provision for income taxes |
|
|
39,939 |
|
|
37,644 |
Other expense (income), net |
|
|
43,489 |
|
|
38,230 |
Operating income |
|
|
339,382 |
|
|
314,602 |
Amortization of intangible assets |
|
|
38,604 |
|
|
24,667 |
Depreciation and amortization of property, |
|
|
|
|
||
equipment and leasehold improvements |
|
|
4,081 |
|
|
5,460 |
Acquisition-related integration and transaction costs(1) |
|
|
1,506 |
|
|
— |
Consolidated adjusted EBITDA |
|
$ |
383,573 |
|
$ |
344,729 |
|
|
|
|
|
||
Index adjusted EBITDA |
|
$ |
277,760 |
|
$ |
253,682 |
Analytics adjusted EBITDA |
|
|
72,212 |
|
|
60,780 |
ESG and Climate adjusted EBITDA |
|
|
21,091 |
|
|
17,876 |
All Other - Private Assets adjusted EBITDA |
|
|
12,510 |
|
|
12,391 |
Consolidated adjusted EBITDA |
|
$ |
383,573 |
|
$ |
344,729 |
|
|
|
|
|
||
(1) Represents transaction expenses and other costs directly related to the acquisition and integration of acquired businesses, including professional fees, severance expenses, regulatory filing fees and other costs, in each case that are incurred no later than 12 months after the close of the relevant acquisition. |
||||||
Table 10: Reconciliation of Net Income and Diluted EPS to Adjusted Net Income and Adjusted EPS (unaudited)
|
|
Three Months Ended |
||||||
|
|
Mar. 31, |
|
Mar. 31, |
||||
In thousands, except per share data |
|
|
2024 |
|
|
|
2023 |
|
Net income |
|
$ |
255,954 |
|
|
$ |
238,728 |
|
Plus: Amortization of acquired intangible assets and |
|
|
|
|
||||
equity method investment basis difference |
|
|
25,267 |
|
|
|
16,809 |
|
Plus: Acquisition-related integration and transaction costs(1) |
|
|
1,506 |
|
|
|
— |
|
Plus: Write-off of deferred fees on debt extinguishment |
|
|
1,510 |
|
|
|
— |
|
Less: Gain from changes in ownership interest of investees |
|
|
— |
|
|
|
(447 |
) |
Less: Income tax effect(2) |
|
|
(4,008 |
) |
|
|
(2,196 |
) |
Adjusted net income |
|
$ |
280,229 |
|
|
$ |
252,894 |
|
|
|
|
|
|
||||
Diluted EPS |
|
$ |
3.22 |
|
|
$ |
2.97 |
|
Plus: Amortization of acquired intangible assets and |
|
|
|
|
||||
equity method investment basis difference |
|
|
0.32 |
|
|
|
0.21 |
|
Plus: Acquisition-related integration and transaction costs(1) |
|
|
0.02 |
|
|
|
— |
|
Plus: Write-off of deferred fees on debt extinguishment |
|
|
0.02 |
|
|
|
— |
|
Less: Gain from changes in ownership interest of investees |
|
|
— |
|
|
|
(0.01 |
) |
Less: Income tax effect(2) |
|
|
(0.06 |
) |
|
|
(0.03 |
) |
Adjusted EPS |
|
$ |
3.52 |
|
|
$ |
3.14 |
|
|
|
|
|
|
||||
Diluted weighted average common shares outstanding |
|
|
79,508 |
|
|
|
80,482 |
|
|
|
|
|
|
||||
(1) Represents transaction expenses and other costs directly related to the acquisition and integration of acquired businesses, including professional fees, severance expenses, regulatory filing fees and other costs, in each case that are incurred no later than 12 months after the close of the relevant acquisition. |
||||||||
(2) Adjustments relate to the tax effect of non-GAAP adjustments, which were determined based on the nature of the underlying non-GAAP adjustments and their relevant jurisdictional tax rates. |
||||||||
Table 11: Reconciliation of Operating Expenses to Adjusted EBITDA Expenses (unaudited)
|
|
Three Months Ended |
|
Full-Year |
||||
|
|
Mar. 31, |
|
Mar. 31, |
|
2024 |
||
In thousands |
|
2024 |
|
2023 |
|
Guidance(1) |
||
Total operating expenses |
|
$ |
340,583 |
|
$ |
277,616 |
|
|
Amortization of intangible assets |
|
|
38,604 |
|
|
24,667 |
|
|
Depreciation and amortization of property, |
|
|
|
|
|
|
||
equipment and leasehold improvements |
|
|
4,081 |
|
|
5,460 |
|
|
Acquisition-related integration and transaction costs(2) |
|
|
1,506 |
|
|
— |
|
|
Consolidated adjusted EBITDA expenses |
|
$ |
296,392 |
|
$ |
247,489 |
|
|
|
|
|
|
|
|
|
||
Index adjusted EBITDA expenses |
|
$ |
96,112 |
|
$ |
85,700 |
|
|
Analytics adjusted EBITDA expenses |
|
|
91,754 |
|
|
86,290 |
|
|
ESG and Climate adjusted EBITDA expenses |
|
|
56,793 |
|
|
49,182 |
|
|
All Other - Private Assets adjusted EBITDA expenses |
|
|
51,733 |
|
|
26,317 |
|
|
Consolidated adjusted EBITDA expenses |
|
$ |
296,392 |
|
$ |
247,489 |
|
|
|
|
|
|
|
|
|
||
(1) We have not provided a full line-item reconciliation for total operating expenses to adjusted EBITDA expenses for this future period because we believe such a reconciliation would imply a degree of precision and certainty that could be confusing to investors and we are unable to reasonably predict certain items contained in the GAAP measure without unreasonable efforts. This is due to the inherent difficulty of forecasting the timing or amount of various items that have not yet occurred and are out of the Company's control or cannot be reasonably predicted. For the same reasons, the Company is unable to address the probable significance of the unavailable information. Forward-looking non-GAAP financial measures provided without the most directly comparable GAAP financial measures may vary materially from the corresponding GAAP financial measures. See “Forward-Looking Statements” above. |
||||||||
(2) Represents transaction expenses and other costs directly related to the acquisition and integration of acquired businesses, including professional fees, severance expenses, regulatory filing fees and other costs, in each case that are incurred no later than 12 months after the close of the relevant acquisition. |
||||||||
Table 12: Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow (unaudited)
|
|
Three Months Ended |
|
Full-Year |
||||||
|
|
Mar. 31, |
|
Mar. 31, |
|
2024 |
||||
In thousands |
|
|
2024 |
|
|
|
2023 |
|
|
Guidance(1) |
Net cash provided by operating activities |
|
$ |
300,137 |
|
|
$ |
264,141 |
|
|
|
Capital expenditures |
|
|
(4,271 |
) |
|
|
(6,225 |
) |
|
|
Capitalized software development costs |
|
|
(19,966 |
) |
|
|
(15,351 |
) |
|
|
Capex |
|
|
(24,237 |
) |
|
|
(21,576 |
) |
|
( |
Free cash flow |
|
$ |
275,900 |
|
|
$ |
242,565 |
|
|
|
|
|
|
|
|
|
|
||||
(1) We have not provided a line-item reconciliation for free cash flow to net cash provided by operating activities for this future period because we believe such a reconciliation would imply a degree of precision and certainty that could be confusing to investors and we are unable to reasonably predict certain items contained in the GAAP measure without unreasonable efforts. This is due to the inherent difficulty of forecasting the timing or amount of various items that have not yet occurred and are out of the Company's control or cannot be reasonably predicted. For the same reasons, the Company is unable to address the probable significance of the unavailable information. Forward-looking non-GAAP financial measures provided without the most directly comparable GAAP financial measures may vary materially from the corresponding GAAP financial measures. See “Forward-Looking Statements” above. |
||||||||||
Table 13: First Quarter 2024 Reconciliation of Operating Revenue Growth to Organic Operating Revenue Growth (unaudited)
|
Comparison of the Three Months Ended March 31, 2024 and 2023 |
||||||||||
|
Total |
|
Recurring
|
|
Asset-Based Fees |
|
Non-Recurring
|
||||
Index |
Change
|
|
Change
|
|
Change
|
|
Change
|
||||
Operating revenue growth |
10.2 |
% |
|
8.3 |
% |
|
12.9 |
% |
|
11.3 |
% |
Impact of acquisitions and divestitures |
— |
% |
|
— |
% |
|
— |
% |
|
— |
% |
Impact of foreign currency exchange rate fluctuations |
0.2 |
% |
|
0.3 |
% |
|
0.1 |
% |
|
— |
% |
Organic operating revenue growth |
10.4 |
% |
|
8.6 |
% |
|
13.0 |
% |
|
11.3 |
% |
|
|
|
|
|
|
|
|
||||
|
Total |
|
Recurring
|
|
Asset-Based Fees |
|
Non-Recurring
|
||||
Analytics |
Change
|
|
Change
|
|
Change
|
|
Change
|
||||
Operating revenue growth |
11.5 |
% |
|
11.1 |
% |
|
— |
% |
|
33.0 |
% |
Impact of acquisitions and divestitures |
(0.1 |
)% |
|
(0.1 |
)% |
|
— |
% |
|
— |
% |
Impact of foreign currency exchange rate fluctuations |
0.5 |
% |
|
0.5 |
% |
|
— |
% |
|
1.7 |
% |
Organic operating revenue growth |
11.9 |
% |
|
11.5 |
% |
|
— |
% |
|
34.7 |
% |
|
|
|
|
|
|
|
|
||||
|
Total |
|
Recurring
|
|
Asset-Based Fees |
|
Non-Recurring
|
||||
ESG and Climate |
Change
|
|
Change
|
|
Change
|
|
Change
|
||||
Operating revenue growth |
16.1 |
% |
|
16.3 |
% |
|
— |
% |
|
10.6 |
% |
Impact of acquisitions and divestitures |
(1.9 |
)% |
|
(1.9 |
)% |
|
— |
% |
|
(3.1 |
)% |
Impact of foreign currency exchange rate fluctuations |
(3.2 |
)% |
|
(3.3 |
)% |
|
— |
% |
|
(0.3 |
)% |
Organic operating revenue growth |
11.0 |
% |
|
11.1 |
% |
|
— |
% |
|
7.2 |
% |
|
|
|
|
|
|
|
|
||||
|
Total |
|
Recurring
|
|
Asset-Based Fees |
|
Non-Recurring
|
||||
All Other - Private Assets |
Change
|
|
Change
|
|
Change
|
|
Change
|
||||
Operating revenue growth |
66.0 |
% |
|
64.7 |
% |
|
— |
% |
|
196.5 |
% |
Impact of acquisitions and divestitures |
(62.6 |
)% |
|
(62.6 |
)% |
|
— |
% |
|
(67.6 |
)% |
Impact of foreign currency exchange rate fluctuations |
(0.8 |
)% |
|
(0.8 |
)% |
|
— |
% |
|
(0.3 |
)% |
Organic operating revenue growth |
2.6 |
% |
|
1.3 |
% |
|
— |
% |
|
128.6 |
% |
|
|
|
|
|
|
|
|
||||
|
Total |
|
Recurring
|
|
Asset-Based Fees |
|
Non-Recurring
|
||||
Consolidated |
Change
|
|
Change
|
|
Change
|
|
Change
|
||||
Operating revenue growth |
14.8 |
% |
|
15.2 |
% |
|
12.9 |
% |
|
20.3 |
% |
Impact of acquisitions and divestitures |
(4.3 |
)% |
|
(5.7 |
)% |
|
— |
% |
|
(2.2 |
)% |
Impact of foreign currency exchange rate fluctuations |
(0.2 |
)% |
|
(0.2 |
)% |
|
0.1 |
% |
|
0.3 |
% |
Organic operating revenue growth |
10.3 |
% |
|
9.3 |
% |
|
13.0 |
% |
|
18.4 |
% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240423155431/en/
MSCI Inc.
Investor Inquiries
jeremy.ulan@msci.com
Jeremy Ulan +1 646 778 4184
jisoo.suh@msci.com
Jisoo Suh + 1 917 825 7111
Media Inquiries
PR@msci.com
Melanie Blanco +1 212 981 1049
Konstantinos Makrygiannis +44 (0)7768 930056
Tina Tan + 852 2844 9320
Source: MSCI Inc.
FAQ
What were MSCI's operating revenues for the first quarter of 2024?
How much did recurring subscription revenues increase by in the first quarter of 2024?
What was MSCI's adjusted EPS for the first quarter of 2024?
How much in dividends were paid to shareholders in the first quarter of 2024?
What was the total Run Rate as of March 31, 2024?
