MSCI Reports Financial Results for Fourth Quarter and Full Year 2023
- Operating revenues increased by 19.8% to $690.1 million.
- Diluted EPS grew by 89.9% to $5.07.
- Adjusted EBITDA was up by 22.3% to $414.6 million.
- Total debt to adjusted EBITDA ratio was 3.0x.
- The company declared a cash dividend of $1.60 per share for the first quarter 2024.
- None.
Insights
MSCI's reported financials, with a 19.8% increase in operating revenues and significant growth in diluted EPS by 89.9%, indicate a robust performance that outpaces the broader market. The organic operating revenue growth of 14.7% suggests strong underlying business momentum, which is particularly noteworthy in a climate of economic uncertainty. Additionally, the increase in the dividend by 15.9% is a positive signal to investors, reflecting confidence in the company's cash flow generation abilities. Looking at the share repurchase activity, the aggressive buyback strategy, with $458.7 million spent, underscores a commitment to shareholder value but also raises questions about future capital allocation strategies.
From a valuation standpoint, the total debt to net income ratio of 3.9x and total debt to adjusted EBITDA of 3.0x are within reasonable limits, suggesting a balanced approach to leverage. However, investors should monitor these ratios, especially as interest rates fluctuate. The retention rate of 93.6% is a testament to the company's strong customer relationships and product stickiness, which are critical for future revenue predictability.
MSCI's performance reflects broader secular trends in the investment industry, such as the rising demand for portfolio customization and ESG products. The company's ability to capitalize on these trends is evident in the growth of its ESG and Climate segment, with revenues up by 20.0% and an impressive Adjusted EBITDA margin improvement from 29.5% to 33.5%. This suggests that MSCI is effectively tapping into the growing investor appetite for sustainable investment options.
The Index Segment remains a cornerstone of MSCI's business, as evidenced by its 17.8% revenue increase. The growth in asset-based fees, driven by an increase in average AUM of ETFs linked to MSCI equity indexes, highlights the company's strong position in the ETF ecosystem. The Analytics Segment also demonstrates resilience with a 10.0% revenue growth, indicating robust demand for analytical tools amidst market volatility.
MSCI's financial report includes a noteworthy element regarding a one-time gain from the remeasurement of its equity method investment in Burgiss. This non-taxable gain significantly impacted the effective tax rate, which dropped to 13.8% from 19.1% year-over-year. While this positively affected net income, investors should consider this as a one-off event that may not recur in subsequent quarters. The company's legal and strategic maneuvers, such as the acquisition of Burgiss and integration of Trove, are indicative of MSCI's efforts to strengthen its position in the private assets and ESG spaces—a move that aligns with current regulatory and investor focus on transparency and sustainability.
Financial and Operational Highlights for Fourth Quarter 2023
(Note: Unless otherwise noted, percentage and other changes are relative to the three months ended December 31, 2022 (“fourth quarter 2022”) and Run Rate percentage changes are relative to December 31, 2022).
-
Operating revenues of
$690.1 million 19.8% ; Organic operating revenue growth of14.7% -
Recurring subscription revenues up
16.8% ; Asset-based fees up15.9% -
Operating margin of
53.7% ; Adjusted EBITDA margin of60.1% -
Diluted EPS of
$5.07 89.9% ; Adjusted EPS of$3.68 29.6% -
New recurring subscription sales up by
1.9% ; Organic recurring subscription Run Rate growth of9.9% ; Retention Rate of93.6% -
In full year 2023 and through trade date of January 29, 2024, a total of
$458.7 million $468.26 -
In fourth quarter 2023, dividends of
$109.2 million $1.60 15.9%
|
|
Three Months Ended |
|
Year Ended |
||||||||||||||||||
In thousands, except per share data (unaudited) |
|
Dec. 31,
|
|
Dec. 31,
|
|
% Change |
|
Dec. 31,
|
|
Dec. 31,
|
|
% Change |
||||||||||
|
|
|
|
|
|
|||||||||||||||||
Operating revenues |
|
$ |
690,106 |
|
|
$ |
576,208 |
|
|
19.8 |
% |
|
$ |
2,528,920 |
|
|
$ |
2,248,598 |
|
|
12.5 |
% |
Operating income |
|
$ |
370,745 |
|
|
$ |
308,750 |
|
|
20.1 |
% |
|
$ |
1,384,609 |
|
|
$ |
1,207,640 |
|
|
14.7 |
% |
Operating margin % |
|
|
53.7 |
% |
|
|
53.6 |
% |
|
|
|
|
54.8 |
% |
|
|
53.7 |
% |
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income |
|
$ |
403,380 |
|
|
$ |
214,971 |
|
|
87.6 |
% |
|
$ |
1,148,592 |
|
|
$ |
870,573 |
|
|
31.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Diluted EPS |
|
$ |
5.07 |
|
|
$ |
2.67 |
|
|
89.9 |
% |
|
$ |
14.39 |
|
|
$ |
10.72 |
|
|
34.2 |
% |
Adjusted EPS |
|
$ |
3.68 |
|
|
$ |
2.84 |
|
|
29.6 |
% |
|
$ |
13.52 |
|
|
$ |
11.45 |
|
|
18.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted EBITDA |
|
$ |
414,627 |
|
|
$ |
339,022 |
|
|
22.3 |
% |
|
$ |
1,522,951 |
|
|
$ |
1,329,671 |
|
|
14.5 |
% |
Adjusted EBITDA margin % |
|
|
60.1 |
% |
|
|
58.8 |
% |
|
|
|
|
60.2 |
% |
|
|
59.1 |
% |
|
|
||
“MSCI delivered impressive results to close out 2023, despite continued external headwinds. In the fourth quarter, we achieved Adjusted EPS growth of nearly
“We continue to capitalize on important secular trends that are reshaping the global investment landscape, such as rising demand for portfolio customization at scale. Looking ahead, MSCI remains committed to making organic investments and bolt-on acquisitions that add value, while returning excess capital to our owners through share buybacks and dividend payments. As always, we will balance our long-term strategic investments with our commitment to rigorous financial management and short-term execution,” Mr. Fernandez added.
Fourth Quarter Consolidated Results
Operating Revenues: Operating revenues were
Run Rate and Retention Rate: Total Run Rate at December 31, 2023 was
Expenses: Total operating expenses were
Operating Income: Operating income was
Headcount: As of December 31, 2023, headcount was 5,794 employees, with approximately
Other Expense (Income), Net: Other expense (income), net was
Income Taxes: In the fourth quarter 2023, 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 |
|
Year Ended |
||||||||||||||||||
In thousands |
|
Dec. 31,
|
|
Dec. 31,
|
|
% Change |
|
Dec. 31,
|
|
Dec. 31,
|
|
% Change |
||||||||||
|
|
|
|
|
|
|||||||||||||||||
Operating revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Recurring subscriptions |
|
$ |
210,737 |
|
|
$ |
189,970 |
|
|
10.9 |
% |
|
$ |
814,582 |
|
|
$ |
729,710 |
|
|
11.6 |
% |
Asset-based fees |
|
|
145,148 |
|
|
|
125,238 |
|
|
15.9 |
% |
|
|
557,502 |
|
|
|
528,127 |
|
|
5.6 |
% |
Non-recurring |
|
|
32,110 |
|
|
|
14,053 |
|
|
128.5 |
% |
|
|
79,731 |
|
|
|
45,372 |
|
|
75.7 |
% |
Total operating revenues |
|
|
387,995 |
|
|
|
329,261 |
|
|
17.8 |
% |
|
|
1,451,815 |
|
|
|
1,303,209 |
|
|
11.4 |
% |
Adjusted EBITDA expenses |
|
|
89,446 |
|
|
|
80,866 |
|
|
10.6 |
% |
|
|
344,842 |
|
|
|
317,802 |
|
|
8.5 |
% |
Adjusted EBITDA |
|
$ |
298,549 |
|
|
$ |
248,395 |
|
|
20.2 |
% |
|
$ |
1,106,973 |
|
|
$ |
985,407 |
|
|
12.3 |
% |
Adjusted EBITDA margin % |
|
|
76.9 |
% |
|
|
75.4 |
% |
|
|
|
|
76.2 |
% |
|
|
75.6 |
% |
|
|
||
Index operating revenues were
Growth in recurring subscription revenues was primarily driven by strong growth from market-cap weighted Index products.
Revenues from ETFs linked to MSCI equity indexes, mainly driven by an increase in average AUM, drove more than half of the increase in revenues attributable to asset-based fees. The balance of the increase was contributed by non-ETF indexed funds linked to MSCI indexes, driven by an increase in average AUM as well as an increase in average basis point fees.
Non-recurring revenues were
Index Run Rate as of December 31, 2023 was
Analytics Segment:
Table 1B: Results (unaudited)
|
|
Three Months Ended |
|
Year Ended |
||||||||||||||||||
In thousands |
|
Dec. 31,
|
|
Dec. 31,
|
|
% Change |
|
Dec. 31,
|
|
Dec. 31,
|
|
% Change |
||||||||||
|
|
|
|
|
|
|||||||||||||||||
Operating revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Recurring subscriptions |
|
$ |
160,015 |
|
|
$ |
146,957 |
|
|
8.9 |
% |
|
$ |
603,291 |
|
|
$ |
567,004 |
|
|
6.4 |
% |
Non-recurring |
|
|
4,722 |
|
|
|
2,754 |
|
|
71.5 |
% |
|
|
12,665 |
|
|
|
9,103 |
|
|
39.1 |
% |
Total operating revenues |
|
|
164,737 |
|
|
|
149,711 |
|
|
10.0 |
% |
|
|
615,956 |
|
|
|
576,107 |
|
|
6.9 |
% |
Adjusted EBITDA expenses |
|
|
87,572 |
|
|
|
83,300 |
|
|
5.1 |
% |
|
|
341,081 |
|
|
|
328,212 |
|
|
3.9 |
% |
Adjusted EBITDA |
|
$ |
77,165 |
|
|
$ |
66,411 |
|
|
16.2 |
% |
|
$ |
274,875 |
|
|
$ |
247,895 |
|
|
10.9 |
% |
Adjusted EBITDA margin % |
|
|
46.8 |
% |
|
|
44.4 |
% |
|
|
|
|
44.6 |
% |
|
|
43.0 |
% |
|
|
||
Analytics operating revenues were
Analytics Run Rate as of December 31, 2023, was
ESG and Climate Segment:
Table 1C: Results (unaudited)
|
|
Three Months Ended |
|
Year Ended |
||||||||||||||||||
In thousands |
|
Dec. 31,
|
|
Dec. 31,
|
|
% Change |
|
Dec. 31,
|
|
Dec. 31,
|
|
% Change |
||||||||||
|
|
|
|
|
|
|||||||||||||||||
Operating revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Recurring subscriptions |
|
$ |
74,828 |
|
|
$ |
62,198 |
|
|
20.3 |
% |
|
$ |
282,351 |
|
|
$ |
223,160 |
|
|
26.5 |
% |
Non-recurring |
|
|
1,425 |
|
|
|
1,361 |
|
|
4.7 |
% |
|
|
5,217 |
|
|
|
5,151 |
|
|
1.3 |
% |
Total operating revenues |
|
|
76,253 |
|
|
|
63,559 |
|
|
20.0 |
% |
|
|
287,568 |
|
|
|
228,311 |
|
|
26.0 |
% |
Adjusted EBITDA expenses |
|
|
50,689 |
|
|
|
44,799 |
|
|
13.1 |
% |
|
|
195,890 |
|
|
|
167,217 |
|
|
17.1 |
% |
Adjusted EBITDA |
|
$ |
25,564 |
|
|
$ |
18,760 |
|
|
36.3 |
% |
|
$ |
91,678 |
|
|
$ |
61,094 |
|
|
50.1 |
% |
Adjusted EBITDA margin % |
|
|
33.5 |
% |
|
|
29.5 |
% |
|
|
|
|
31.9 |
% |
|
|
26.8 |
% |
|
|
||
ESG and Climate operating revenues were
ESG and Climate Run Rate as of December 31, 2023, was
All Other – Private Assets Segment:
Table 1D: Results (unaudited)
|
|
Three Months Ended |
|
Year Ended |
||||||||||||||||||
In thousands |
|
Dec. 31,
|
|
Dec. 31,
|
|
% Change |
|
Dec. 31,
|
|
Dec. 31,
|
|
% Change |
||||||||||
|
|
|
|
|
|
|||||||||||||||||
Operating revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Recurring subscriptions |
|
$ |
59,774 |
|
|
$ |
33,373 |
|
|
79.1 |
% |
|
$ |
171,066 |
|
|
$ |
139,649 |
|
|
22.5 |
% |
Non-recurring |
|
|
1,347 |
|
|
|
304 |
|
|
n/m |
|
|
|
2,515 |
|
|
|
1,322 |
|
|
90.2 |
% |
Total operating revenues |
|
|
61,121 |
|
|
|
33,677 |
|
|
81.5 |
% |
|
|
173,581 |
|
|
|
140,971 |
|
|
23.1 |
% |
Adjusted EBITDA expenses |
|
|
47,772 |
|
|
|
28,221 |
|
|
69.3 |
% |
|
|
124,156 |
|
|
|
105,696 |
|
|
17.5 |
% |
Adjusted EBITDA |
|
$ |
13,349 |
|
|
$ |
5,456 |
|
|
144.7 |
% |
|
$ |
49,425 |
|
|
$ |
35,275 |
|
|
40.1 |
% |
Adjusted EBITDA margin % |
|
|
21.8 |
% |
|
|
16.2 |
% |
|
|
|
|
28.5 |
% |
|
|
25.0 |
% |
|
|
||
All Other – Private Assets operating revenues, which reflects the Real Assets operating segment and the Private Capital Solutions (formerly known as Burgiss) operating segment, 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 amount of debt outstanding as of December 31, 2023 was
MSCI seeks to maintain total debt to adjusted EBITDA in a target range of 3.0x to 3.5x.
Subsequent to December 31, 2023, 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 fourth quarter 2023, 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 |
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 fourth quarter and full year 2023 results on Tuesday, January 30, 2024 at 11:00 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 1-800-715-9871 conference ID 2144291 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, 2022 filed with the Securities and Exchange Commission (“SEC”) on February 10, 2023 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 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 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 cancellation. 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 14 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, impairment related to sublease of leased property and 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, impairment related to sublease of leased property and 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 from impairment related to sublease of leased property 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 are invested in securities denominated in currencies other than the
Table 2: Condensed Consolidated Statements of Income (unaudited)
|
|
Three Months Ended |
|
Year Ended |
||||||||||||||||||
In thousands, except per share data |
|
Dec. 31,
|
|
Dec. 31,
|
|
% Change |
|
Dec. 31,
|
|
Dec. 31,
|
|
% Change |
||||||||||
|
|
|
|
|
|
|||||||||||||||||
Operating revenues |
|
$ |
690,106 |
|
|
$ |
576,208 |
|
|
19.8 |
% |
|
$ |
2,528,920 |
|
|
$ |
2,248,598 |
|
|
12.5 |
% |
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cost of revenues (exclusive of depreciation and amortization) |
|
|
122,557 |
|
|
|
102,384 |
|
|
19.7 |
% |
|
|
446,581 |
|
|
|
404,341 |
|
|
10.4 |
% |
Selling and marketing |
|
|
75,160 |
|
|
|
71,912 |
|
|
4.5 |
% |
|
|
276,204 |
|
|
|
264,583 |
|
|
4.4 |
% |
Research and development |
|
|
39,220 |
|
|
|
29,026 |
|
|
35.1 |
% |
|
|
132,121 |
|
|
|
107,205 |
|
|
23.2 |
% |
General and administrative |
|
|
40,440 |
|
|
|
33,864 |
|
|
19.4 |
% |
|
|
153,967 |
|
|
|
146,857 |
|
|
4.8 |
% |
Amortization of intangible assets |
|
|
36,886 |
|
|
|
23,805 |
|
|
55.0 |
% |
|
|
114,429 |
|
|
|
91,079 |
|
|
25.6 |
% |
Depreciation and amortization of property, equipment and leasehold improvements |
|
|
5,098 |
|
|
|
6,467 |
|
|
(21.2 |
)% |
|
|
21,009 |
|
|
|
26,893 |
|
|
(21.9 |
)% |
Total operating expenses(1) |
|
|
319,361 |
|
|
|
267,458 |
|
|
19.4 |
% |
|
|
1,144,311 |
|
|
|
1,040,958 |
|
|
9.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating income |
|
|
370,745 |
|
|
|
308,750 |
|
|
20.1 |
% |
|
|
1,384,609 |
|
|
|
1,207,640 |
|
|
14.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest income |
|
|
(3,400 |
) |
|
|
(6,609 |
) |
|
(48.6 |
)% |
|
|
(34,479 |
) |
|
|
(11,769 |
) |
|
193.0 |
% |
Interest expense |
|
|
46,954 |
|
|
|
45,610 |
|
|
2.9 |
% |
|
|
186,679 |
|
|
|
171,571 |
|
|
8.8 |
% |
Gain on remeasurement of equity method investment |
|
|
(143,029 |
) |
|
|
— |
|
|
— |
% |
|
|
(143,029 |
) |
|
|
— |
|
|
— |
% |
Other expense (income) |
|
|
2,345 |
|
|
|
4,087 |
|
|
(42.6 |
)% |
|
|
6,377 |
|
|
|
3,997 |
|
|
59.5 |
% |
Other expense (income), net |
|
|
(97,130 |
) |
|
|
43,088 |
|
|
nm |
|
|
15,548 |
|
|
|
163,799 |
|
|
(90.5 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income before provision for income taxes |
|
|
467,875 |
|
|
|
265,662 |
|
|
76.1 |
% |
|
|
1,369,061 |
|
|
|
1,043,841 |
|
|
31.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Provision for income taxes |
|
|
64,495 |
|
|
|
50,691 |
|
|
27.2 |
% |
|
|
220,469 |
|
|
|
173,268 |
|
|
27.2 |
% |
Net income |
|
|
403,380 |
|
|
|
214,971 |
|
|
87.6 |
% |
|
|
1,148,592 |
|
|
|
870,573 |
|
|
31.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Earnings per basic common share |
|
$ |
5.10 |
|
|
$ |
2.69 |
|
|
89.6 |
% |
|
$ |
14.45 |
|
|
$ |
10.78 |
|
|
34.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Earnings per diluted common share |
|
$ |
5.07 |
|
|
$ |
2.67 |
|
|
89.9 |
% |
|
$ |
14.39 |
|
|
$ |
10.72 |
|
|
34.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Weighted average shares outstanding used in computing earnings per share: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic |
|
|
79,115 |
|
|
|
79,989 |
|
|
(1.1 |
)% |
|
|
79,462 |
|
|
|
80,746 |
|
|
(1.6 |
)% |
Diluted |
|
|
79,499 |
|
|
|
80,424 |
|
|
(1.2 |
)% |
|
|
79,843 |
|
|
|
81,215 |
|
|
(1.7 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
n/m: not meaningful. |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
(1) Includes stock-based compensation expense of |
||||||||||||||||||||||
Table 3: Selected Balance Sheet Items (unaudited)
|
|
As of |
||
In thousands |
|
Dec. 31, 2023 |
|
Dec. 31, 2022 |
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 |
|
Year Ended |
||||||||||||||||||
In thousands |
|
Dec. 31, 2023 |
|
Dec. 31, 2022 |
|
% Change |
|
Dec. 31, 2023 |
|
Dec. 31, 2022 |
|
% Change |
||||||||||
|
|
|
|
|
|
|||||||||||||||||
Net cash provided by operating activities |
|
$ |
388,953 |
|
|
$ |
315,427 |
|
|
23.3 |
% |
|
$ |
1,236,029 |
|
|
$ |
1,095,369 |
|
|
12.8 |
% |
Net cash used in investing activities |
|
|
(749,967 |
) |
|
|
(26,922 |
) |
|
n/m |
|
|
|
(819,378 |
) |
|
|
(79,335 |
) |
|
n/m |
|
Net cash (used in) provided by financing activities |
|
|
(111,567 |
) |
|
|
(172,553 |
) |
|
35.3 |
% |
|
|
(953,931 |
) |
|
|
(1,425,380 |
) |
|
33.1 |
% |
Effect of exchange rate changes |
|
|
5,722 |
|
|
|
10,500 |
|
|
(45.5 |
)% |
|
|
5,409 |
|
|
|
(18,539 |
) |
|
129.2 |
% |
Net (decrease) increase in cash, cash equivalents and restricted cash |
|
$ |
(466,859 |
) |
|
$ |
126,452 |
|
|
n/m |
|
|
$ |
(531,871 |
) |
|
$ |
(427,885 |
) |
|
(24.3 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
n/m: not meaningful. |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Table 5: Operating Results by Segment and Revenue Type (unaudited)
Index |
|
Three Months Ended |
|
Year Ended |
||||||||||||||||||
In thousands |
|
Dec. 31,
|
|
Dec. 31,
|
|
% Change |
|
Dec. 31,
|
|
Dec. 31,
|
|
% Change |
||||||||||
|
|
|
|
|
|
|||||||||||||||||
Operating revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Recurring subscriptions |
|
$ |
210,737 |
|
|
$ |
189,970 |
|
|
10.9 |
% |
|
$ |
814,582 |
|
|
$ |
729,710 |
|
|
11.6 |
% |
Asset-based fees |
|
|
145,148 |
|
|
|
125,238 |
|
|
15.9 |
% |
|
|
557,502 |
|
|
|
528,127 |
|
|
5.6 |
% |
Non-recurring |
|
|
32,110 |
|
|
|
14,053 |
|
|
128.5 |
% |
|
|
79,731 |
|
|
|
45,372 |
|
|
75.7 |
% |
Total operating revenues |
|
|
387,995 |
|
|
|
329,261 |
|
|
17.8 |
% |
|
|
1,451,815 |
|
|
|
1,303,209 |
|
|
11.4 |
% |
Adjusted EBITDA expenses |
|
|
89,446 |
|
|
|
80,866 |
|
|
10.6 |
% |
|
|
344,842 |
|
|
|
317,802 |
|
|
8.5 |
% |
Adjusted EBITDA |
|
$ |
298,549 |
|
|
$ |
248,395 |
|
|
20.2 |
% |
|
$ |
1,106,973 |
|
|
$ |
985,407 |
|
|
12.3 |
% |
Adjusted EBITDA margin % |
|
|
76.9 |
% |
|
|
75.4 |
% |
|
|
|
|
76.2 |
% |
|
|
75.6 |
% |
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Analytics |
|
Three Months Ended |
|
Year Ended |
||||||||||||||||||
|
|
Dec. 31, |
|
Dec. 31, |
|
% |
|
Dec. 31, |
|
Dec. 31, |
|
% |
||||||||||
In thousands |
|
|
2023 |
|
|
|
2022 |
|
|
Change |
|
|
2023 |
|
|
|
2022 |
|
|
Change |
||
Operating revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Recurring subscriptions |
|
$ |
160,015 |
|
|
$ |
146,957 |
|
|
8.9 |
% |
|
$ |
603,291 |
|
|
$ |
567,004 |
|
|
6.4 |
% |
Non-recurring |
|
|
4,722 |
|
|
|
2,754 |
|
|
71.5 |
% |
|
|
12,665 |
|
|
|
9,103 |
|
|
39.1 |
% |
Total operating revenues |
|
|
164,737 |
|
|
|
149,711 |
|
|
10.0 |
% |
|
|
615,956 |
|
|
|
576,107 |
|
|
6.9 |
% |
Adjusted EBITDA expenses |
|
|
87,572 |
|
|
|
83,300 |
|
|
5.1 |
% |
|
|
341,081 |
|
|
|
328,212 |
|
|
3.9 |
% |
Adjusted EBITDA |
|
$ |
77,165 |
|
|
$ |
66,411 |
|
|
16.2 |
% |
|
$ |
274,875 |
|
|
$ |
247,895 |
|
|
10.9 |
% |
Adjusted EBITDA margin % |
|
|
46.8 |
% |
|
|
44.4 |
% |
|
|
|
|
44.6 |
% |
|
|
43.0 |
% |
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
ESG and Climate |
|
Three Months Ended |
|
Year Ended |
||||||||||||||||||
|
|
Dec. 31, |
|
Dec. 31, |
|
% |
|
Dec. 31, |
|
Dec. 31, |
|
% |
||||||||||
In thousands |
|
|
2023 |
|
|
|
2022 |
|
|
Change |
|
|
2023 |
|
|
|
2022 |
|
|
Change |
||
Operating revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Recurring subscriptions |
|
$ |
74,828 |
|
|
$ |
62,198 |
|
|
20.3 |
% |
|
$ |
282,351 |
|
|
$ |
223,160 |
|
|
26.5 |
% |
Non-recurring |
|
|
1,425 |
|
|
|
1,361 |
|
|
4.7 |
% |
|
|
5,217 |
|
|
|
5,151 |
|
|
1.3 |
% |
Total operating revenues |
|
|
76,253 |
|
|
|
63,559 |
|
|
20.0 |
% |
|
|
287,568 |
|
|
|
228,311 |
|
|
26.0 |
% |
Adjusted EBITDA expenses |
|
|
50,689 |
|
|
|
44,799 |
|
|
13.1 |
% |
|
|
195,890 |
|
|
|
167,217 |
|
|
17.1 |
% |
Adjusted EBITDA |
|
$ |
25,564 |
|
|
$ |
18,760 |
|
|
36.3 |
% |
|
$ |
91,678 |
|
|
$ |
61,094 |
|
|
50.1 |
% |
Adjusted EBITDA margin % |
|
|
33.5 |
% |
|
|
29.5 |
% |
|
|
|
|
31.9 |
% |
|
|
26.8 |
% |
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
All Other - Private Assets |
|
Three Months Ended |
|
Year Ended |
||||||||||||||||||
|
|
Dec. 31, |
|
Dec. 31, |
|
% |
|
Dec. 31, |
|
Dec. 31, |
|
% |
||||||||||
In thousands |
|
|
2023 |
|
|
|
2022 |
|
|
Change |
|
|
2023 |
|
|
|
2022 |
|
|
Change |
||
Operating revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Recurring subscriptions |
|
$ |
59,774 |
|
|
$ |
33,373 |
|
|
79.1 |
% |
|
$ |
171,066 |
|
|
$ |
139,649 |
|
|
22.5 |
% |
Non-recurring |
|
|
1,347 |
|
|
|
304 |
|
|
n/m |
|
|
|
2,515 |
|
|
|
1,322 |
|
|
90.2 |
% |
Total operating revenues |
|
|
61,121 |
|
|
|
33,677 |
|
|
81.5 |
% |
|
|
173,581 |
|
|
|
140,971 |
|
|
23.1 |
% |
Adjusted EBITDA expenses |
|
|
47,772 |
|
|
|
28,221 |
|
|
69.3 |
% |
|
|
124,156 |
|
|
|
105,696 |
|
|
17.5 |
% |
Adjusted EBITDA |
|
$ |
13,349 |
|
|
$ |
5,456 |
|
|
144.7 |
% |
|
$ |
49,425 |
|
|
$ |
35,275 |
|
|
40.1 |
% |
Adjusted EBITDA margin % |
|
|
21.8 |
% |
|
|
16.2 |
% |
|
|
|
|
28.5 |
% |
|
|
25.0 |
% |
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Consolidated |
|
Three Months Ended |
|
Year Ended |
||||||||||||||||||
|
|
Dec. 31, |
|
Dec. 31, |
|
% |
|
Dec. 31, |
|
Dec. 31, |
|
% |
||||||||||
In thousands |
|
|
2023 |
|
|
|
2022 |
|
|
Change |
|
|
2023 |
|
|
|
2022 |
|
|
Change |
||
Operating revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Recurring subscriptions |
|
$ |
505,354 |
|
|
$ |
432,498 |
|
|
16.8 |
% |
|
$ |
1,871,290 |
|
|
$ |
1,659,523 |
|
|
12.8 |
% |
Asset-based fees |
|
|
145,148 |
|
|
|
125,238 |
|
|
15.9 |
% |
|
|
557,502 |
|
|
|
528,127 |
|
|
5.6 |
% |
Non-recurring |
|
|
39,604 |
|
|
|
18,472 |
|
|
114.4 |
% |
|
|
100,128 |
|
|
|
60,948 |
|
|
64.3 |
% |
Operating revenues total |
|
|
690,106 |
|
|
|
576,208 |
|
|
19.8 |
% |
|
|
2,528,920 |
|
|
|
2,248,598 |
|
|
12.5 |
% |
Adjusted EBITDA expenses |
|
|
275,479 |
|
|
|
237,186 |
|
|
16.1 |
% |
|
|
1,005,969 |
|
|
|
918,927 |
|
|
9.5 |
% |
Adjusted EBITDA |
|
$ |
414,627 |
|
|
$ |
339,022 |
|
|
22.3 |
% |
|
$ |
1,522,951 |
|
|
$ |
1,329,671 |
|
|
14.5 |
% |
Operating margin % |
|
|
53.7 |
% |
|
|
53.6 |
% |
|
|
|
|
54.8 |
% |
|
|
53.7 |
% |
|
|
||
Adjusted EBITDA margin % |
|
|
60.1 |
% |
|
|
58.8 |
% |
|
|
|
|
60.2 |
% |
|
|
59.1 |
% |
|
|
||
Table 6: Sales and Retention Rate by Segment (unaudited)(1)
|
|
Three Months Ended |
|
Year Ended |
|||||||||||||
|
|
Dec. 31, |
|
Dec. 31, |
|
Dec. 31, |
|
Dec. 31, |
|||||||||
In thousands |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
Index |
|
|
|
|
|
|
|
|
|||||||||
New recurring subscription sales |
|
$ |
35,860 |
|
|
$ |
35,206 |
|
|
$ |
116,016 |
|
|
$ |
109,699 |
|
|
Subscription cancellations |
|
|
(9,681 |
) |
|
|
(8,635 |
) |
|
|
(32,298 |
) |
|
|
(27,103 |
) |
|
Net new recurring subscription sales |
|
$ |
26,179 |
|
|
$ |
26,571 |
|
|
$ |
83,718 |
|
|
$ |
82,596 |
|
|
Non-recurring sales |
|
$ |
33,410 |
|
|
$ |
16,203 |
|
|
$ |
87,775 |
|
|
$ |
57,560 |
|
|
Total gross sales |
|
$ |
69,270 |
|
|
$ |
51,409 |
|
|
$ |
203,791 |
|
|
$ |
167,259 |
|
|
Total Index net sales |
|
$ |
59,589 |
|
|
$ |
42,774 |
|
|
$ |
171,493 |
|
|
$ |
140,156 |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Index Retention Rate |
|
|
95.0 |
% |
|
|
95.0 |
% |
|
|
95.8 |
% |
|
|
96.1 |
% |
|
|
|
|
|
|
|
|
|
|
|||||||||
Analytics |
|
|
|
|
|
|
|
|
|||||||||
New recurring subscription sales |
|
$ |
28,284 |
|
|
$ |
25,193 |
|
|
$ |
79,035 |
|
|
$ |
75,584 |
|
|
Subscription cancellations |
|
|
(10,581 |
) |
|
|
(14,648 |
) |
|
|
(34,675 |
) |
|
|
(37,171 |
) |
|
Net new recurring subscription sales |
|
$ |
17,703 |
|
|
$ |
10,545 |
|
|
$ |
44,360 |
|
|
$ |
38,413 |
|
|
Non-recurring sales |
|
$ |
5,645 |
|
|
$ |
2,731 |
|
|
$ |
14,379 |
|
|
$ |
11,143 |
|
|
Total gross sales |
|
$ |
33,929 |
|
|
$ |
27,924 |
|
|
$ |
93,414 |
|
|
$ |
86,727 |
|
|
Total Analytics net sales |
|
$ |
23,348 |
|
|
$ |
13,276 |
|
|
$ |
58,739 |
|
|
$ |
49,556 |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Analytics Retention Rate |
|
|
93.1 |
% |
|
|
90.0 |
% |
|
|
94.4 |
% |
|
|
93.6 |
% |
|
|
|
|
|
|
|
|
|
|
|||||||||
ESG and Climate |
|
|
|
|
|
|
|
|
|||||||||
New recurring subscription sales |
|
$ |
16,595 |
|
|
$ |
23,363 |
|
|
$ |
55,092 |
|
|
$ |
78,980 |
|
|
Subscription cancellations |
|
|
(3,592 |
) |
|
|
(2,303 |
) |
|
|
(10,923 |
) |
|
|
(5,618 |
) |
|
Net new recurring subscription sales |
|
$ |
13,003 |
|
|
$ |
21,060 |
|
|
$ |
44,169 |
|
|
$ |
73,362 |
|
|
Non-recurring sales |
|
$ |
1,559 |
|
|
$ |
715 |
|
|
$ |
5,625 |
|
|
$ |
4,268 |
|
|
Total gross sales |
|
$ |
18,154 |
|
|
$ |
24,078 |
|
|
$ |
60,717 |
|
|
$ |
83,248 |
|
|
Total ESG and Climate net sales |
|
$ |
14,562 |
|
|
$ |
21,775 |
|
|
$ |
49,794 |
|
|
$ |
77,630 |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
ESG and Climate Retention Rate(2) |
|
|
94.7 |
% |
|
|
95.4 |
% |
|
|
95.9 |
% |
|
|
97.2 |
% |
|
|
|
|
|
|
|
|
|
|
|||||||||
All Other - Private Assets |
|
|
|
|
|
|
|
|
|||||||||
New recurring subscription sales |
|
$ |
11,429 |
|
|
$ |
6,723 |
|
|
$ |
26,175 |
|
|
$ |
23,213 |
|
|
Subscription cancellations |
|
|
(6,703 |
) |
|
|
(2,489 |
) |
|
|
(15,337 |
) |
|
|
(7,569 |
) |
|
Net new recurring subscription sales |
|
$ |
4,726 |
|
|
$ |
4,234 |
|
|
$ |
10,838 |
|
|
$ |
15,644 |
|
|
Non-recurring sales |
|
$ |
1,082 |
|
|
$ |
574 |
|
|
$ |
2,151 |
|
|
$ |
1,264 |
|
|
Total gross sales |
|
$ |
12,511 |
|
|
$ |
7,297 |
|
|
$ |
28,326 |
|
|
$ |
24,477 |
|
|
Total All Other - Private Assets net sales |
|
$ |
5,808 |
|
|
$ |
4,808 |
|
|
$ |
12,989 |
|
|
$ |
16,908 |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
All Other - Private Assets Retention Rate(3) |
|
|
88.8 |
% |
|
|
92.6 |
% |
|
|
90.4 |
% |
|
|
94.4 |
% |
|
|
|
|
|
|
|
|
|
|
|||||||||
Consolidated |
|
|
|
|
|
|
|
|
|||||||||
New recurring subscription sales |
|
$ |
92,168 |
|
|
$ |
90,485 |
|
|
$ |
276,318 |
|
|
$ |
287,476 |
|
|
Subscription cancellations |
|
|
(30,557 |
) |
|
|
(28,075 |
) |
|
|
(93,233 |
) |
|
|
(77,461 |
) |
|
Net new recurring subscription sales |
|
$ |
61,611 |
|
|
$ |
62,410 |
|
|
$ |
183,085 |
|
|
$ |
210,015 |
|
|
Non-recurring sales |
|
$ |
41,696 |
|
|
$ |
20,223 |
|
|
$ |
109,930 |
|
|
$ |
74,235 |
|
|
Total gross sales |
|
$ |
133,864 |
|
|
$ |
110,708 |
|
|
$ |
386,248 |
|
|
$ |
361,711 |
|
|
Total net sales |
|
$ |
103,307 |
|
|
$ |
82,633 |
|
|
$ |
293,015 |
|
|
$ |
284,250 |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total Retention Rate |
|
|
93.6 |
% |
|
|
93.0 |
% |
|
|
94.7 |
% |
|
|
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 ESG and Climate excluding the impact of the acquisition of Trove was |
|||||||||||||||||
(3) Retention rate for All Other – Private Assets excluding the impact of the acquisition of Burgiss was |
|||||||||||||||||
Table 7: AUM in ETFs Linked to MSCI Equity Indexes (unaudited)(1)(2)
|
|
Three Months Ended |
|
Year Ended |
|
|||||||||||||||||||
|
|
Dec. 31, |
|
Mar. 31, |
|
June 30, |
|
Sep. 30, |
|
Dec. 31, |
|
Dec. 31, |
|
Dec. 31, |
|
|||||||||
In billions |
|
2022 |
|
2023 |
|
2023 |
|
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|||||
Beginning Period AUM in ETFs linked to MSCI equity indexes |
|
$ |
1,081.2 |
|
$ |
1,222.9 |
|
$ |
1,305.4 |
|
$ |
1,372.5 |
|
|
$ |
1,322.8 |
|
$ |
1,451.6 |
|
|
$ |
1,222.9 |
|
Market Appreciation/(Depreciation) |
|
|
118.8 |
|
|
75.1 |
|
|
48.4 |
|
|
(56.1 |
) |
|
|
130.5 |
|
|
(283.9 |
) |
|
|
197.9 |
|
Cash Inflows/(Outflows) |
|
|
22.9 |
|
|
7.4 |
|
|
18.7 |
|
|
6.4 |
|
|
|
15.6 |
|
|
55.2 |
|
|
|
48.1 |
|
Period-End AUM in ETFs linked to MSCI equity indexes |
|
$ |
1,222.9 |
|
$ |
1,305.4 |
|
$ |
1,372.5 |
|
$ |
1,322.8 |
|
|
$ |
1,468.9 |
|
$ |
1,222.9 |
|
|
$ |
1,468.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Period Average AUM in ETFs linked to MSCI equity indexes |
|
$ |
1,182.1 |
|
$ |
1,287.5 |
|
$ |
1,333.8 |
|
$ |
1,376.5 |
|
|
$ |
1,364.9 |
|
$ |
1,267.2 |
|
|
$ |
1,340.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Period-End Basis Point Fee(3) |
|
|
2.54 |
|
|
2.53 |
|
|
2.52 |
|
|
2.51 |
|
|
|
2.50 |
|
|
2.54 |
|
|
|
2.50 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
(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 filed or furnished 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 |
|
|
|||||
|
|
Dec. 31, |
|
Dec. 31, |
|
% |
|||
In thousands |
|
2023 |
|
2022 |
|
Change |
|||
Index |
|
|
|
|
|
|
|||
Recurring subscriptions |
|
$ |
861,366 |
|
$ |
777,633 |
|
10.8 |
% |
Asset-based fees |
|
|
590,872 |
|
|
514,253 |
|
14.9 |
% |
Index Run Rate |
|
|
1,452,238 |
|
|
1,291,886 |
|
12.4 |
% |
|
|
|
|
|
|
|
|||
Analytics Run Rate |
|
|
661,922 |
|
|
616,069 |
|
7.4 |
% |
|
|
|
|
|
|
|
|||
ESG and Climate Run Rate |
|
|
319,324 |
|
|
267,019 |
|
19.6 |
% |
|
|
|
|
|
|
|
|||
All Other - Private Assets Run Rate |
|
|
252,677 |
|
|
145,333 |
|
73.9 |
% |
|
|
|
|
|
|
|
|||
Total Run Rate |
|
$ |
2,686,161 |
|
$ |
2,320,307 |
|
15.8 |
% |
|
|
|
|
|
|
|
|||
Total recurring subscriptions |
|
$ |
2,095,289 |
|
$ |
1,806,054 |
|
16.0 |
% |
Total asset-based fees |
|
|
590,872 |
|
|
514,253 |
|
14.9 |
% |
Total Run Rate |
|
$ |
2,686,161 |
|
$ |
2,320,307 |
|
15.8 |
% |
|
|
|
|
|
|
|
|||
(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 |
|
Year Ended |
|||||||||
|
|
Dec. 31, |
|
Dec. 31, |
|
Dec. 31, |
|
Dec. 31, |
|||||
In thousands |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
2022 |
||
Net income |
|
$ |
403,380 |
|
|
$ |
214,971 |
|
$ |
1,148,592 |
|
$ |
870,573 |
Provision for income taxes |
|
|
64,495 |
|
|
|
50,691 |
|
|
220,469 |
|
|
173,268 |
Other expense (income), net |
|
|
(97,130 |
) |
|
|
43,088 |
|
|
15,548 |
|
|
163,799 |
Operating income |
|
|
370,745 |
|
|
|
308,750 |
|
|
1,384,609 |
|
|
1,207,640 |
Amortization of intangible assets |
|
|
36,886 |
|
|
|
23,805 |
|
|
114,429 |
|
|
91,079 |
Depreciation and amortization of property, equipment and leasehold improvements |
|
|
5,098 |
|
|
|
6,467 |
|
|
21,009 |
|
|
26,893 |
Impairment related to sublease of leased property |
|
|
477 |
|
|
|
— |
|
|
477 |
|
|
— |
Acquisition-related integration and transaction costs(1) |
|
|
1,421 |
|
|
|
— |
|
|
2,427 |
|
|
4,059 |
Consolidated adjusted EBITDA |
|
$ |
414,627 |
|
|
$ |
339,022 |
|
$ |
1,522,951 |
|
$ |
1,329,671 |
|
|
|
|
|
|
|
|
|
|||||
Index adjusted EBITDA |
|
$ |
298,549 |
|
|
$ |
248,395 |
|
$ |
1,106,973 |
|
$ |
985,407 |
Analytics adjusted EBITDA |
|
|
77,165 |
|
|
|
66,411 |
|
|
274,875 |
|
|
247,895 |
ESG and Climate adjusted EBITDA |
|
|
25,564 |
|
|
|
18,760 |
|
|
91,678 |
|
|
61,094 |
All Other - Private Assets adjusted EBITDA |
|
|
13,349 |
|
|
|
5,456 |
|
|
49,425 |
|
|
35,275 |
Consolidated adjusted EBITDA |
|
$ |
414,627 |
|
|
$ |
339,022 |
|
$ |
1,522,951 |
|
$ |
1,329,671 |
|
|
|
|
|
|
|
|
|
|||||
(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 |
|
Year Ended |
|||||||||||||
|
|
Dec. 31, |
|
Dec. 31, |
|
Dec. 31, |
|
Dec. 31, |
|||||||||
In thousands, except per share data |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
Net income |
|
$ |
403,380 |
|
|
$ |
214,971 |
|
|
$ |
1,148,592 |
|
|
$ |
870,573 |
|
|
Plus: Amortization of acquired intangible assets and equity method investment basis difference |
|
|
24,873 |
|
|
|
16,809 |
|
|
|
75,229 |
|
|
|
67,373 |
|
|
Plus: Impairment related to sublease of leased property |
|
|
492 |
|
|
|
— |
|
|
|
492 |
|
|
|
— |
|
|
Plus: Acquisition-related integration and transaction costs(1)(2) |
|
|
1,421 |
|
|
|
— |
|
|
|
2,427 |
|
|
|
4,220 |
|
|
Less: Gain from changes in ownership interest of investees |
|
|
(143,029 |
) |
|
|
— |
|
|
|
(143,476 |
) |
|
|
— |
|
|
Plus/(Less): Income tax effect(3)(4) |
|
|
5,071 |
|
|
|
(3,218 |
) |
|
|
(3,809 |
) |
|
|
(11,883 |
) |
|
Adjusted net income |
|
$ |
292,208 |
|
|
$ |
228,562 |
|
|
$ |
1,079,455 |
|
|
$ |
930,283 |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Diluted EPS |
|
$ |
5.07 |
|
|
$ |
2.67 |
|
|
$ |
14.39 |
|
|
$ |
10.72 |
|
|
Plus: Amortization of acquired intangible assets and equity method investment basis difference |
|
|
0.31 |
|
|
|
0.21 |
|
|
|
0.94 |
|
|
|
0.83 |
|
|
Plus: Impairment related to sublease of leased property |
|
|
0.01 |
|
|
|
— |
|
|
|
0.01 |
|
|
|
— |
|
|
Plus: Acquisition-related integration and transaction costs(1)(2) |
|
|
0.02 |
|
|
|
— |
|
|
|
0.03 |
|
|
|
0.05 |
|
|
Less: Gain from changes in ownership interest of investees |
|
|
(1.79 |
) |
|
|
— |
|
|
|
(1.80 |
) |
|
|
— |
|
|
Plus/(Less): Income tax effect(3)(4) |
|
|
0.06 |
|
|
|
(0.04 |
) |
|
|
(0.05 |
) |
|
|
(0.15 |
) |
|
Adjusted EPS |
|
$ |
3.68 |
|
|
$ |
2.84 |
|
|
$ |
13.52 |
|
|
$ |
11.45 |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Diluted weighted average common shares outstanding |
|
|
79,499 |
|
|
|
80,424 |
|
|
|
79,843 |
|
|
|
81,215 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
(1) Acquisition-related integration and transaction costs of presented within "Depreciation and amortization of property, equipment and leasehold improvements" expenses for the year ended Dec. 31, 2022. |
|||||||||||||||||
(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. |
|||||||||||||||||
(3) 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. |
|||||||||||||||||
(4) The pre-tax gain from changes in ownership interest of Burgiss of |
|||||||||||||||||
Table 11: Reconciliation of Operating Expenses to Adjusted EBITDA Expenses (unaudited)
|
|
Three Months Ended |
|
Year Ended |
|
Full-Year |
|
||||||||
|
|
Dec. 31, |
|
Dec. 31, |
|
Dec. 31, |
|
Dec. 31, |
|
2024 |
|
||||
In thousands |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
Outlook(1) |
|
||||
Total operating expenses |
|
$ |
319,361 |
|
$ |
267,458 |
|
$ |
1,144,311 |
|
$ |
1,040,958 |
|
|
|
Amortization of intangible assets |
|
|
36,886 |
|
|
23,805 |
|
|
114,429 |
|
|
91,079 |
|
|
|
Depreciation and amortization of property, equipment and leasehold improvements |
|
|
5,098 |
|
|
6,467 |
|
|
21,009 |
|
|
26,893 |
|
|
|
Impairment related to sublease of leased property |
|
|
477 |
|
|
— |
|
|
477 |
|
|
— |
|
|
|
Acquisition-related integration and transaction costs(2) |
|
|
1,421 |
|
|
— |
|
|
2,427 |
|
|
4,059 |
|
|
|
Consolidated adjusted EBITDA expenses |
|
$ |
275,479 |
|
$ |
237,186 |
|
$ |
1,005,969 |
|
$ |
918,927 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Index adjusted EBITDA expenses |
|
$ |
89,446 |
|
$ |
80,866 |
|
$ |
344,842 |
|
$ |
317,802 |
|
|
|
Analytics adjusted EBITDA expenses |
|
|
87,572 |
|
|
83,300 |
|
|
341,081 |
|
|
328,212 |
|
|
|
ESG and Climate adjusted EBITDA expenses |
|
|
50,689 |
|
|
44,799 |
|
|
195,890 |
|
|
167,217 |
|
|
|
All Other - Private Assets adjusted EBITDA expenses |
|
|
47,772 |
|
|
28,221 |
|
|
124,156 |
|
|
105,696 |
|
|
|
Consolidated adjusted EBITDA expenses |
|
$ |
275,479 |
|
$ |
237,186 |
|
$ |
1,005,969 |
|
$ |
918,927 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
(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 |
|
Year Ended |
|
Full-Year |
|||||||||||||
|
|
Dec. 31, |
|
Dec. 31, |
|
Dec. 31, |
|
Dec. 31, |
|
2024 |
|||||||||
In thousands |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
Outlook(1) |
|
Net cash provided by operating activities |
|
$ |
388,953 |
|
|
$ |
315,427 |
|
|
$ |
1,236,029 |
|
|
$ |
1,095,369 |
|
|
|
|
Capital expenditures |
|
|
(3,815 |
) |
|
|
(5,605 |
) |
|
|
(22,757 |
) |
|
|
(13,617 |
) |
|
|
|
Capitalized software development costs |
|
|
(18,014 |
) |
|
|
(14,853 |
) |
|
|
(68,094 |
) |
|
|
(59,278 |
) |
|
|
|
Capex |
|
|
(21,829 |
) |
|
|
(20,458 |
) |
|
|
(90,851 |
) |
|
|
(72,895 |
) |
|
( |
|
Free cash flow |
|
$ |
367,124 |
|
|
$ |
294,969 |
|
|
$ |
1,145,178 |
|
|
$ |
1,022,474 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
(1) We have not provided a line-item reconciliation for free cash flow to net cash from 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: Fourth Quarter 2023 Reconciliation of Operating Revenue Growth to Organic Operating Revenue Growth (unaudited)
|
Comparison of the Three Months Ended December 31, 2023 and 2022 |
||||||||||
|
Total |
|
Recurring Subscription |
|
Asset-Based Fees |
|
Non-Recurring Revenues |
||||
Index |
Change Percentage |
|
Change Percentage |
|
Change Percentage |
|
Change Percentage |
||||
Operating revenue growth |
17.8 |
% |
|
10.9 |
% |
|
15.9 |
% |
|
128.5 |
% |
Impact of acquisitions and divestitures |
— |
% |
|
— |
% |
|
— |
% |
|
— |
% |
Impact of foreign currency exchange rate fluctuations |
0.1 |
% |
|
0.2 |
% |
|
— |
% |
|
— |
% |
Organic operating revenue growth |
17.9 |
% |
|
11.1 |
% |
|
15.9 |
% |
|
128.5 |
% |
|
|
|
|
|
|
|
|
||||
|
Total |
|
Recurring Subscription |
|
Asset-Based Fees |
|
Non-Recurring Revenues |
||||
Analytics |
Change Percentage |
|
Change Percentage |
|
Change Percentage |
|
Change Percentage |
||||
Operating revenue growth |
10.0 |
% |
|
8.9 |
% |
|
— |
% |
|
71.5 |
% |
Impact of acquisitions and divestitures |
— |
% |
|
— |
% |
|
— |
% |
|
— |
% |
Impact of foreign currency exchange rate fluctuations |
0.2 |
% |
|
0.1 |
% |
|
— |
% |
|
(0.2 |
)% |
Organic operating revenue growth |
10.2 |
% |
|
9.0 |
% |
|
— |
% |
|
71.3 |
% |
|
|
|
|
|
|
|
|
||||
|
Total |
|
Recurring Subscription |
|
Asset-Based Fees |
|
Non-Recurring Revenues |
||||
ESG and Climate |
Change Percentage |
|
Change Percentage |
|
Change Percentage |
|
Change Percentage |
||||
Operating revenue growth |
20.0 |
% |
|
20.3 |
% |
|
— |
% |
|
4.7 |
% |
Impact of acquisitions and divestitures |
(1.2 |
)% |
|
(1.2 |
)% |
|
— |
% |
|
— |
% |
Impact of foreign currency exchange rate fluctuations |
(4.3 |
)% |
|
(4.3 |
)% |
|
— |
% |
|
(1.8 |
)% |
Organic operating revenue growth |
14.5 |
% |
|
14.8 |
% |
|
— |
% |
|
2.9 |
% |
|
|
|
|
|
|
|
|
||||
|
Total |
|
Recurring Subscription |
|
Asset-Based Fees |
|
Non-Recurring Revenues |
||||
All Other - Private Assets |
Change Percentage |
|
Change Percentage |
|
Change Percentage |
|
Change Percentage |
||||
Operating revenue growth |
81.5 |
% |
|
79.1 |
% |
|
— |
% |
|
343.1 |
% |
Impact of acquisitions and divestitures |
(75.5 |
)% |
|
(73.8 |
)% |
|
— |
% |
|
(263.8 |
)% |
Impact of foreign currency exchange rate fluctuations |
(1.6 |
)% |
|
(1.6 |
)% |
|
— |
% |
|
(1.0 |
)% |
Organic operating revenue growth |
4.4 |
% |
|
3.7 |
% |
|
— |
% |
|
78.3 |
% |
|
|
|
|
|
|
|
|
||||
|
Total |
|
Recurring Subscription |
|
Asset-Based Fees |
|
Non-Recurring Revenues |
||||
Consolidated |
Change Percentage |
|
Change Percentage |
|
Change Percentage |
|
Change Percentage |
||||
Operating revenue growth |
19.8 |
% |
|
16.8 |
% |
|
15.9 |
% |
|
114.4 |
% |
Impact of acquisitions and divestitures |
(4.6 |
)% |
|
(5.8 |
)% |
|
— |
% |
|
(4.3 |
)% |
Impact of foreign currency exchange rate fluctuations |
(0.5 |
)% |
|
(0.7 |
)% |
|
— |
% |
|
(0.2 |
)% |
Organic operating revenue growth |
14.7 |
% |
|
10.3 |
% |
|
15.9 |
% |
|
109.9 |
% |
Table 14: Full-Year 2023 Reconciliation of Operating Revenue Growth to Organic Operating Revenue Growth (unaudited)
|
Comparison of the Years Ended December 31, 2023 and 2022 |
||||||||||
|
Total |
|
Recurring Subscription |
|
Asset-Based Fees |
|
Non-Recurring Revenues |
||||
Index |
Change Percentage |
|
Change Percentage |
|
Change Percentage |
|
Change Percentage |
||||
Operating revenue growth |
11.4 |
% |
|
11.6 |
% |
|
5.6 |
% |
|
75.7 |
% |
Impact of acquisitions and divestitures |
— |
% |
|
— |
% |
|
— |
% |
|
— |
% |
Impact of foreign currency exchange rate fluctuations |
0.1 |
% |
|
0.2 |
% |
|
— |
% |
|
— |
% |
Organic operating revenue growth |
11.5 |
% |
|
11.8 |
% |
|
5.6 |
% |
|
75.7 |
% |
|
|
|
|
|
|
|
|
||||
|
Total |
|
Recurring Subscription |
|
Asset-Based Fees |
|
Non-Recurring Revenues |
||||
Analytics |
Change Percentage |
|
Change Percentage |
|
Change Percentage |
|
Change Percentage |
||||
Operating revenue growth |
6.9 |
% |
|
6.4 |
% |
|
— |
% |
|
39.1 |
% |
Impact of acquisitions and divestitures |
— |
% |
|
— |
% |
|
— |
% |
|
— |
% |
Impact of foreign currency exchange rate fluctuations |
0.3 |
% |
|
0.3 |
% |
|
— |
% |
|
(0.1 |
)% |
Organic operating revenue growth |
7.2 |
% |
|
6.7 |
% |
|
— |
% |
|
39.0 |
% |
|
|
|
|
|
|
|
|
||||
|
Total |
|
Recurring Subscription |
|
Asset-Based Fees |
|
Non-Recurring Revenues |
||||
ESG and Climate |
Change Percentage |
|
Change Percentage |
|
Change Percentage |
|
Change Percentage |
||||
Operating revenue growth |
26.0 |
% |
|
26.5 |
% |
|
— |
% |
|
1.3 |
% |
Impact of acquisitions and divestitures |
(0.4 |
)% |
|
(0.3 |
)% |
|
— |
% |
|
— |
% |
Impact of foreign currency exchange rate fluctuations |
(0.8 |
)% |
|
(0.8 |
)% |
|
— |
% |
|
(0.7 |
)% |
Organic operating revenue growth |
24.8 |
% |
|
25.4 |
% |
|
— |
% |
|
0.6 |
% |
|
|
|
|
|
|
|
|
||||
|
Total |
|
Recurring Subscription |
|
Asset-Based Fees |
|
Non-Recurring Revenues |
||||
All Other - Private Assets |
Change Percentage |
|
Change Percentage |
|
Change Percentage |
|
Change Percentage |
||||
Operating revenue growth |
23.1 |
% |
|
22.5 |
% |
|
— |
% |
|
90.2 |
% |
Impact of acquisitions and divestitures |
(18.0 |
)% |
|
(17.6 |
)% |
|
— |
% |
|
(60.6 |
)% |
Impact of foreign currency exchange rate fluctuations |
0.6 |
% |
|
0.6 |
% |
|
— |
% |
|
(0.3 |
)% |
Organic operating revenue growth |
5.7 |
% |
|
5.5 |
% |
|
— |
% |
|
29.3 |
% |
|
|
|
|
|
|
|
|
||||
|
Total |
|
Recurring Subscription |
|
Asset-Based Fees |
|
Non-Recurring Revenues |
||||
Consolidated |
Change Percentage |
|
Change Percentage |
|
Change Percentage |
|
Change Percentage |
||||
Operating revenue growth |
12.5 |
% |
|
12.8 |
% |
|
5.6 |
% |
|
64.3 |
% |
Impact of acquisitions and divestitures |
(1.2 |
)% |
|
(1.6 |
)% |
|
— |
% |
|
(1.3 |
)% |
Impact of foreign currency exchange rate fluctuations |
0.1 |
% |
|
0.2 |
% |
|
— |
% |
|
(0.1 |
)% |
Organic operating revenue growth |
11.4 |
% |
|
11.4 |
% |
|
5.6 |
% |
|
62.9 |
% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240130168751/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
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