MSCI Reports Financial Results for Second Quarter and Six Months 2024
MSCI Inc. (NYSE: MSCI) reported strong financial results for Q2 2024:
- Operating revenues up 14.0% to $707.9 million
- Organic operating revenue growth of 9.7%
- Operating margin of 54.0%
- Diluted EPS up 9.1% to $3.37
- Adjusted EPS up 11.7% to $3.64
Key highlights include record AUM balances in MSCI-linked products, 16% ABF run rate growth, and a 94.8% retention rate. The company expanded its ESG partnership with Moody's and launched MSCI Private Capital Indexes. MSCI repurchased $289.9 million in shares and declared a $1.60 per share dividend for Q3 2024.
MSCI Inc. (NYSE: MSCI) ha riportato risultati finanziari molto solidi per il secondo trimestre del 2024:
- Ricavi operativi aumentati del 14,0% a 707,9 milioni di dollari
- Crescita organica dei ricavi operativi del 9,7%
- Margine operativo del 54,0%
- EPS diluito aumentato del 9,1% a 3,37 dollari
- EPS rettificato aumentato dell'11,7% a 3,64 dollari
I punti salienti includono bilanci AUM record nei prodotti legati a MSCI, una crescita del run rate ABF del 16% e un tasso di retention del 94,8%. L'azienda ha ampliato la sua partnership ESG con Moody's e ha lanciato gli Indici di Capitale Privato MSCI. MSCI ha riacquistato azioni per 289,9 milioni di dollari e ha dichiarato un dividendo di 1,60 dollari per azione per il terzo trimestre del 2024.
MSCI Inc. (NYSE: MSCI) reportó resultados financieros sólidos para el segundo trimestre de 2024:
- Ingresos operativos aumentaron un 14,0% a 707,9 millones de dólares
- Crecimiento orgánico de los ingresos operativos del 9,7%
- Margen operativo del 54,0%
- EPS diluido aumentó un 9,1% a 3,37 dólares
- EPS ajustado aumentó un 11,7% a 3,64 dólares
Los aspectos destacados incluyen saldos de AUM récord en productos vinculados a MSCI, un crecimiento del 16% en la tasa de ejecución de ABF y una tasa de retención del 94,8%. La empresa amplió su asociación ESG con Moody's y lanzó los Índices de Capital Privado MSCI. MSCI recompró acciones por 289,9 millones de dólares y declaró un dividendo de 1,60 dólares por acción para el tercer trimestre de 2024.
MSCI Inc. (NYSE: MSCI)는 2024년 2분기 강력한 재무 실적을 보고했습니다:
- 운영 수익이 14.0% 증가하여 7억 7천 9백만 달러에 달했습니다
- 유기적 운영 수익 성장률이 9.7%입니다
- 운영 마진이 54.0%입니다
- 희석 EPS가 9.1% 증가하여 3.37달러입니다
- 조정 EPS가 11.7% 증가하여 3.64달러입니다
주요 하이라이트로는 MSCI 연계 제품에서의 AUM 기록 보유, 16% ABF 실행률 성장, 94.8%의 고객 유지율이 있습니다. 회사는 무디스와 ESG 파트너십을 확장했으며 MSCI 사모펀드 지수를 출시했습니다. MSCI는 2억 8,990만 달러의 주식을 재매입했으며 2024년 3분기 주당 1.60달러의 배당금을 선언했습니다.
MSCI Inc. (NYSE: MSCI) a annoncé de solides résultats financiers pour le deuxième trimestre 2024 :
- Revenus d'exploitation en hausse de 14,0% à 707,9 millions de dollars
- Croissance organique des revenus d'exploitation de 9,7%
- Marges d'exploitation de 54,0%
- EPS dilué en hausse de 9,1% à 3,37 dollars
- EPS ajusté en hausse de 11,7% à 3,64 dollars
Les faits saillants incluent des soldes AUM records dans les produits liés à MSCI, une croissance du taux d'exécution ABF de 16 % et un taux de fidélisation de 94,8 %. L'entreprise a élargi son partenariat ESG avec Moody's et a lancé les indices de capital privé MSCI. MSCI a racheté des actions pour 289,9 millions de dollars et a déclaré un dividende de 1,60 dollar par action pour le troisième trimestre 2024.
MSCI Inc. (NYSE: MSCI) berichtete über starke finanzielle Ergebnisse für das zweite Quartal 2024:
- Betriebsumsätze stiegen um 14,0% auf 707,9 Millionen Dollar
- Organisches Umsatzwachstum von 9,7%
- Betriebsgewinnmarge von 54,0%
- Verdünntes EPS stieg um 9,1% auf 3,37 Dollar
- Bereinigtes EPS stieg um 11,7% auf 3,64 Dollar
Wichtige Höhepunkte sind Rekord-AUM-Bestände in MSCI-gebundenen Produkten, ein Wachstum von 16% beim ABF-Laufzeitverbrauch und eine Retentionsrate von 94,8%. Das Unternehmen erweiterte seine ESG-Partnerschaft mit Moody's und führte die MSCI Private Capital Indizes ein. MSCI kaufte Aktien im Wert von 289,9 Millionen Dollar zurück und erklärte eine Dividende von 1,60 Dollar pro Aktie für das dritte Quartal 2024.
- Operating revenues increased 14.0% to $707.9 million
- Organic operating revenue growth of 9.7%
- Diluted EPS up 9.1% to $3.37
- Adjusted EPS up 11.7% to $3.64
- Asset-based fees up 18.2%
- Record AUM balances in financial products linked to MSCI indexes
- ABF run rate growth of 16%
- Best-ever Q2 of new recurring subscription sales
- Retention rate of 94.8%
- Total Run Rate up 14.6% to $2,807.3 million
- Index segment Adjusted EBITDA up 10.8% to $306.99 million
- Analytics segment Adjusted EBITDA up 25.4% to $81.67 million
- Operating margin decreased to 54.0% from 55.7% in Q2 2023
- Total operating expenses increased 18.2%
- ESG and Climate segment Adjusted EBITDA margin decreased to 30.0% from 32.0% in Q2 2023
- All Other - Private Assets segment Adjusted EBITDA margin decreased to 26.8% from 32.6% in Q2 2023
MSCI's strong financial performance in the second quarter of 2024 is significant for investors. The company demonstrated a robust 14% increase in operating revenues and a healthy 60.7% Adjusted EBITDA margin, indicating efficient operational management. The increase in recurring subscription revenues by 14.4% and asset-based fees by 18.2% underscores the growing demand for MSCI's products and services. With a retention rate of 94.8%, MSCI is successfully retaining its client base, which is important for sustained revenue growth.
One notable point is the company's aggressive share repurchase program, having bought back
However, the increase in operating expenses by 18.2% raises a cautionary note, especially with substantial costs related to recent acquisitions. While these acquisitions can potentially drive future growth, investors need to monitor how effectively MSCI integrates these new entities to realize the anticipated benefits.
Overall, MSCI's financial performance indicates a strong and growing business, but the rising expenses and integration risks should be closely watched.
MSCI's performance in the second quarter reflects the company's strategic market positioning and product diversification. The 14% revenue growth and strong subscription retention rates illustrate the company's ability to meet the evolving needs of the investment community. The growth in asset-based fees and the launch of new indexes, particularly in ESG and private capital, highlight MSCI’s capability to innovate and expand its market segments.
Interestingly, the company reported a significant 72% increase in revenues from Private Assets, driven by acquisitions like Private Capital Solutions. This diversification into private markets can provide MSCI with a new revenue stream and reduce reliance on traditional indexing products. Moreover, the strategic partnership with Moody’s in ESG and sustainability can enhance MSCI's offerings in a growing market segment.
However, the market should closely monitor the competitive landscape, particularly in the ESG and analytics domains. As these areas become more crowded, maintaining a leading position could become challenging. Furthermore, the 18.8% rise in operating expenses poses a risk if revenue growth slows down.
In conclusion, MSCI's diversified growth strategy and innovation in new product areas are commendable, yet the rising competitive pressure and cost structures warrant investor attention.
The technological advancements and new product launches by MSCI are pivotal to its robust performance this quarter. The integration of recent acquisitions like Fabric and Foxberry indicates MSCI's commitment to enhancing its technological capabilities and product offerings. The increase in headcount by 21.7% is primarily attributed to these acquisitions, reflecting the company's focus on scaling its tech-driven solutions.
In particular, MSCI's development in ESG and climate analytics showcases its ability to navigate and capitalize on the growing demand for sustainability-related investment tools. The launch of MSCI Private Capital Indexes and partnerships in ESG highlight the company's innovative approach to cater to niche investment segments.
However, the rise in information technology costs and professional fees should be monitored. While these investments are necessary for growth, they need to be balanced with overall cost management to maintain profitability.
Overall, MSCI's technological initiatives and acquisitions position it well for future growth, but investors should watch the cost implications of these tech investments.
Financial and Operational Highlights for Second Quarter 2024
(Note: Unless otherwise noted, percentage and other changes are relative to the three months ended June 30, 2023 (“second quarter 2023”) and Run Rate percentage changes are relative to June 30, 2023).
-
Operating revenues of
, up$707.9 million 14.0% ; Organic operating revenue growth of9.7% -
Recurring subscription revenues up
14.4% ; Asset-based fees up18.2% -
Operating margin of
54.0% ; Adjusted EBITDA margin of60.7% -
Diluted EPS of
, up$3.37 9.1% ; Adjusted EPS of , up$3.64 11.7% -
Organic recurring subscription Run Rate growth of
8.6% ; Retention Rate of94.8% -
In second quarter 2024 and through July 19, 2024, a total of
or 598,928 shares were repurchased at an average repurchase price of$289.9 million $484.01 -
Approximately
in dividends were paid to shareholders in second quarter 2024; Cash dividend of$126.6 million per share declared by MSCI Board of Directors for third quarter 2024$1.60
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||||||||
|
|
June 30, |
|
June 30, |
|
|
|
June 30, |
|
June 30, |
|
|||||||||||
In thousands, except per share data (unaudited) |
|
2024 |
|
2023 |
% Change |
|
2024 |
|
2023 |
|
% Change |
|||||||||||
Operating revenues |
|
$ |
707,949 |
|
|
$ |
621,157 |
|
|
14.0 |
% |
|
$ |
1,387,914 |
|
|
$ |
1,213,375 |
|
|
14.4 |
% |
Operating income |
|
$ |
382,608 |
|
|
$ |
345,953 |
|
|
10.6 |
% |
|
$ |
721,990 |
|
|
$ |
660,555 |
|
|
9.3 |
% |
Operating margin % |
|
|
54.0 |
% |
|
|
55.7 |
% |
|
|
|
|
52.0 |
% |
|
|
54.4 |
% |
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income |
|
$ |
266,758 |
|
|
$ |
246,825 |
|
|
8.1 |
% |
|
$ |
522,712 |
|
|
$ |
485,553 |
|
|
7.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Diluted EPS |
|
$ |
3.37 |
|
|
$ |
3.09 |
|
|
9.1 |
% |
|
$ |
6.59 |
|
|
$ |
6.05 |
|
|
8.9 |
% |
Adjusted EPS |
|
$ |
3.64 |
|
|
$ |
3.26 |
|
|
11.7 |
% |
|
$ |
7.17 |
|
|
$ |
6.40 |
|
|
12.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted EBITDA |
|
$ |
429,955 |
|
|
$ |
377,306 |
|
|
14.0 |
% |
|
$ |
813,528 |
|
|
$ |
722,035 |
|
|
12.7 |
% |
Adjusted EBITDA margin % |
|
|
60.7 |
% |
|
|
60.7 |
% |
|
|
|
|
58.6 |
% |
|
|
59.5 |
% |
|
|
“MSCI’s second quarter results demonstrate the strength of our all-weather franchise, our blue-chip client base, our wide range of solutions, and our relentless focus on execution. Highlights included another quarter of record AUM balances in financial products linked to MSCI indexes, ABF run rate growth of
“As we capture and commercialize the next evolution of global investing, MSCI is expanding our footprint among large and rapidly growing client segments while strengthening our position among more mature and traditional segments. Our recent announcements, including our game-changing ESG and sustainability partnership with Moody’s and our launch of the MSCI Private Capital Indexes, can help us accelerate this strategy,” Fernandez added.
Second Quarter Consolidated Results
Operating Revenues: Operating revenues were
Run Rate and Retention Rate: Total Run Rate at June 30, 2024 was
Expenses: Total operating expenses were
Adjusted EBITDA expenses were
Adjusted EBITDA expense included
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 June 30, 2024, we had 6,059 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 |
|
Six Months Ended |
||||||||||||||||||
|
|
June 30, |
|
June 30, |
|
|
|
June 30, |
|
June 30, |
|
|
||||||||||
In thousands |
|
|
2024 |
|
|
|
2023 |
|
|
% Change |
|
|
2024 |
|
|
|
2023 |
|
|
% Change |
||
Operating revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Recurring subscriptions |
|
$ |
217,032 |
|
|
$ |
200,714 |
|
|
8.1 |
% |
|
$ |
429,984 |
|
|
$ |
397,392 |
|
|
8.2 |
% |
Asset-based fees |
|
|
163,281 |
|
|
|
138,162 |
|
|
18.2 |
% |
|
|
313,540 |
|
|
|
271,288 |
|
|
15.6 |
% |
Non-recurring |
|
|
16,879 |
|
|
|
23,440 |
|
|
(28.0 |
)% |
|
|
27,540 |
|
|
|
33,018 |
|
|
(16.6 |
)% |
Total operating revenues |
|
|
397,192 |
|
|
|
362,316 |
|
|
9.6 |
% |
|
|
771,064 |
|
|
|
701,698 |
|
|
9.9 |
% |
Adjusted EBITDA expenses |
|
|
90,202 |
|
|
|
85,246 |
|
|
5.8 |
% |
|
|
186,314 |
|
|
|
170,946 |
|
|
9.0 |
% |
Adjusted EBITDA |
|
$ |
306,990 |
|
|
$ |
277,070 |
|
|
10.8 |
% |
|
$ |
584,750 |
|
|
$ |
530,752 |
|
|
10.2 |
% |
Adjusted EBITDA margin % |
|
|
77.3 |
% |
|
|
76.5 |
% |
|
|
|
|
75.8 |
% |
|
|
75.6 |
% |
|
|
Index operating revenues were
The growth in recurring subscription revenues was primarily driven by growth from market-cap weighted indexes.
The growth in revenues attributed to asset-based fees were primarily driven by ETFs linked to MSCI equity indexes, primarily due to an increase in average AUM. The balance of the increase was driven by non-ETF indexed funds linked to MSCI indexes, driven by an increase in average AUM and average basis points fees and an increase in revenue from futures and options contracts linked to MSCI indexes.
Non-recurring revenues in second quarter 2024 were lower than second quarter 2023, as second quarter 2023 included one-time fees related to unlicensed usage of our content in historical periods.
Index Run Rate as of June 30, 2024, was
Analytics Segment:
Table 1B: Results (unaudited)
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||||||||
|
|
June 30, |
|
June 30, |
|
|
|
June 30, |
|
June 30, |
|
|
||||||||||
In thousands |
|
|
2024 |
|
|
|
2023 |
|
|
% Change |
|
|
2024 |
|
|
|
2023 |
|
|
% Change |
||
Operating revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Recurring subscriptions |
|
$ |
162,128 |
|
|
$ |
147,504 |
|
|
9.9 |
% |
|
$ |
322,679 |
|
|
$ |
292,007 |
|
|
10.5 |
% |
Non-recurring |
|
|
3,867 |
|
|
|
2,377 |
|
|
62.7 |
% |
|
|
7,282 |
|
|
|
4,944 |
|
|
47.3 |
% |
Total operating revenues |
|
|
165,995 |
|
|
|
149,881 |
|
|
10.8 |
% |
|
|
329,961 |
|
|
|
296,951 |
|
|
11.1 |
% |
Adjusted EBITDA expenses |
|
|
84,323 |
|
|
|
84,732 |
|
|
(0.5 |
)% |
|
|
176,077 |
|
|
|
171,022 |
|
|
3.0 |
% |
Adjusted EBITDA |
|
$ |
81,672 |
|
|
$ |
65,149 |
|
|
25.4 |
% |
|
$ |
153,884 |
|
|
$ |
125,929 |
|
|
22.2 |
% |
Adjusted EBITDA margin % |
|
|
49.2 |
% |
|
|
43.5 |
% |
|
|
|
|
46.6 |
% |
|
|
42.4 |
% |
|
|
Analytics operating revenues were
Analytics Run Rate as of June 30, 2024, was
ESG and Climate Segment:
Table 1C: Results (unaudited)
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||||||||
|
|
June 30, |
|
June 30, |
|
|
|
June 30, |
|
June 30, |
|
|
||||||||||
In thousands |
|
|
2024 |
|
|
|
2023 |
|
|
% Change |
|
|
2024 |
|
|
|
2023 |
|
|
% Change |
||
Operating revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Recurring subscriptions |
|
$ |
78,000 |
|
|
$ |
70,047 |
|
|
11.4 |
% |
|
$ |
154,418 |
|
|
$ |
135,779 |
|
|
13.7 |
% |
Non-recurring |
|
|
1,855 |
|
|
|
1,172 |
|
|
58.3 |
% |
|
|
3,321 |
|
|
|
2,498 |
|
|
32.9 |
% |
Total operating revenues |
|
|
79,855 |
|
|
|
71,219 |
|
|
12.1 |
% |
|
|
157,739 |
|
|
|
138,277 |
|
|
14.1 |
% |
Adjusted EBITDA expenses |
|
|
55,925 |
|
|
|
48,421 |
|
|
15.5 |
% |
|
|
112,718 |
|
|
|
97,603 |
|
|
15.5 |
% |
Adjusted EBITDA |
|
$ |
23,930 |
|
|
$ |
22,798 |
|
|
5.0 |
% |
|
$ |
45,021 |
|
|
$ |
40,674 |
|
|
10.7 |
% |
Adjusted EBITDA margin % |
|
|
30.0 |
% |
|
|
32.0 |
% |
|
|
|
|
28.5 |
% |
|
|
29.4 |
% |
|
|
ESG and Climate operating revenues were
ESG and Climate Run Rate as of June 30, 2024, was
All Other – Private Assets Segment:
Table 1D: Results (unaudited)
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||||||||
|
|
June 30, |
|
June 30, |
|
|
|
June 30, |
|
June 30, |
|
|
||||||||||
In thousands |
|
|
2024 |
|
|
|
2023 |
|
|
% Change |
|
|
2024 |
|
|
|
2023 |
|
|
% Change |
||
Operating revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Recurring subscriptions |
|
$ |
64,309 |
|
|
$ |
37,427 |
|
|
71.8 |
% |
|
$ |
127,443 |
|
|
$ |
75,761 |
|
|
68.2 |
% |
Non-recurring |
|
|
598 |
|
|
|
314 |
|
|
90.4 |
% |
|
|
1,707 |
|
|
|
688 |
|
|
148.1 |
% |
Total operating revenues |
|
|
64,907 |
|
|
|
37,741 |
|
|
72.0 |
% |
|
|
129,150 |
|
|
|
76,449 |
|
|
68.9 |
% |
Adjusted EBITDA expenses |
|
|
47,544 |
|
|
|
25,452 |
|
|
86.8 |
% |
|
|
99,277 |
|
|
|
51,769 |
|
|
91.8 |
% |
Adjusted EBITDA |
|
$ |
17,363 |
|
|
$ |
12,289 |
|
|
41.3 |
% |
|
$ |
29,873 |
|
|
$ |
24,680 |
|
|
21.0 |
% |
Adjusted EBITDA margin % |
|
|
26.8 |
% |
|
|
32.6 |
% |
|
|
|
|
23.1 |
% |
|
|
32.3 |
% |
|
|
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 June 30, 2024, were
MSCI seeks to maintain total debt to adjusted EBITDA in a target range of 3.0x to 3.5x.
Capex and Cash Flow: Capex was
Share Count and Share Repurchases: Weighted average diluted shares outstanding were 79.2 million in second 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 |
Prior 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 second quarter 2024 results on Tuesday, July 23, 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 8653237 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 termination or non-renewal may not be 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 when we (i) have received a notice of termination, non-renewal or an indication the client does not intend to continue their subscription during the period and (ii) have determined that such notice evidences the client’s final decision to terminate or not renew the applicable products or services, even though such termination or non-renewal may not be 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, 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 |
|
Six Months Ended |
||||||||||||||||||
|
|
June 30, |
|
June 30, |
|
% |
|
June 30, |
|
June 30, |
|
% |
||||||||||
In thousands, except per share data |
|
|
2024 |
|
|
|
2023 |
|
|
Change |
|
|
2024 |
|
|
|
2023 |
|
|
Change |
||
Operating revenues |
|
$ |
707,949 |
|
|
$ |
621,157 |
|
|
14.0 |
% |
|
$ |
1,387,914 |
|
|
$ |
1,213,375 |
|
|
14.4 |
% |
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cost of revenues (exclusive of depreciation and amortization) |
|
|
128,109 |
|
|
|
110,066 |
|
|
16.4 |
% |
|
|
256,623 |
|
|
|
218,713 |
|
|
17.3 |
% |
Selling and marketing |
|
|
71,454 |
|
|
|
67,988 |
|
|
5.1 |
% |
|
|
143,622 |
|
|
|
134,463 |
|
|
6.8 |
% |
Research and development |
|
|
41,073 |
|
|
|
30,140 |
|
|
36.3 |
% |
|
|
81,598 |
|
|
|
61,463 |
|
|
32.8 |
% |
General and administrative |
|
|
39,706 |
|
|
|
35,657 |
|
|
11.4 |
% |
|
|
96,397 |
|
|
|
76,701 |
|
|
25.7 |
% |
Amortization of intangible assets |
|
|
40,773 |
|
|
|
26,154 |
|
|
55.9 |
% |
|
|
79,377 |
|
|
|
50,821 |
|
|
56.2 |
% |
Depreciation and amortization of property, |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
equipment and leasehold improvements |
|
|
4,226 |
|
|
|
5,199 |
|
|
(18.7 |
)% |
|
|
8,307 |
|
|
|
10,659 |
|
|
(22.1 |
)% |
Total operating expenses(1) |
|
|
325,341 |
|
|
|
275,204 |
|
|
18.2 |
% |
|
|
665,924 |
|
|
|
552,820 |
|
|
20.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating income |
|
|
382,608 |
|
|
|
345,953 |
|
|
10.6 |
% |
|
|
721,990 |
|
|
|
660,555 |
|
|
9.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest income |
|
|
(6,110 |
) |
|
|
(10,403 |
) |
|
(41.3 |
)% |
|
|
(12,158 |
) |
|
|
(20,765 |
) |
|
(41.4 |
)% |
Interest expense |
|
|
46,633 |
|
|
|
46,617 |
|
|
— |
% |
|
|
93,307 |
|
|
|
92,823 |
|
|
0.5 |
% |
Other expense (income) |
|
|
2,091 |
|
|
|
2,581 |
|
|
(19.0 |
)% |
|
|
4,954 |
|
|
|
4,967 |
|
|
(0.3 |
)% |
Other expense (income), net |
|
|
42,614 |
|
|
|
38,795 |
|
|
9.8 |
% |
|
|
86,103 |
|
|
|
77,025 |
|
|
11.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income before provision for income taxes |
|
|
339,994 |
|
|
|
307,158 |
|
|
10.7 |
% |
|
|
635,887 |
|
|
|
583,530 |
|
|
9.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Provision for income taxes |
|
|
73,236 |
|
|
|
60,333 |
|
|
21.4 |
% |
|
|
113,175 |
|
|
|
97,977 |
|
|
15.5 |
% |
Net income |
|
$ |
266,758 |
|
|
$ |
246,825 |
|
|
8.1 |
% |
|
$ |
522,712 |
|
|
$ |
485,553 |
|
|
7.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Earnings per basic common share |
|
$ |
3.37 |
|
|
$ |
3.10 |
|
|
8.7 |
% |
|
$ |
6.60 |
|
|
$ |
6.08 |
|
|
8.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Earnings per diluted common share |
|
$ |
3.37 |
|
|
$ |
3.09 |
|
|
9.1 |
% |
|
$ |
6.59 |
|
|
$ |
6.05 |
|
|
8.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Weighted average shares outstanding used |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
in computing earnings per share: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic |
|
|
79,085 |
|
|
|
79,592 |
|
|
(0.6 |
)% |
|
|
79,140 |
|
|
|
79,815 |
|
|
(0.8 |
)% |
Diluted |
|
|
79,245 |
|
|
|
79,905 |
|
|
(0.8 |
)% |
|
|
79,377 |
|
|
|
80,193 |
|
|
(1.0 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
n/m: not meaningful. |
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes stock-based compensation expense of |
Table 3: Condensed Consolidated Balance Sheet (unaudited)
|
|
As of |
||||||
|
|
June 30, |
|
Dec. 31, |
||||
In thousands |
|
2024 |
|
2023 |
||||
ASSETS |
|
|
|
|
||||
Current assets: |
|
|
|
|
||||
Cash and cash equivalents (includes restricted cash of |
|
$ |
451,401 |
|
|
$ |
461,693 |
|
Accounts receivable (net of allowances of |
|
|
709,487 |
|
|
|
839,555 |
|
Other current assets |
|
|
154,164 |
|
|
|
116,905 |
|
Total current assets |
|
|
1,315,052 |
|
|
|
1,418,153 |
|
Property, equipment and leasehold improvements, net |
|
|
63,974 |
|
|
|
55,920 |
|
Right of use assets |
|
|
129,542 |
|
|
|
115,243 |
|
Goodwill |
|
|
2,909,415 |
|
|
|
2,887,692 |
|
Intangible assets, net |
|
|
949,166 |
|
|
|
956,234 |
|
Other non-current assets |
|
|
89,684 |
|
|
|
84,977 |
|
Total assets |
|
$ |
5,456,833 |
|
|
$ |
5,518,219 |
|
|
|
|
|
|
||||
LIABILITIES AND SHAREHOLDERS’ EQUITY (DEFICIT) |
|
|
|
|
||||
Current liabilities: |
|
|
|
|
||||
Current portion of long-term debt |
|
$ |
— |
|
|
$ |
10,902 |
|
Deferred revenue |
|
|
1,017,997 |
|
|
|
1,083,864 |
|
Other current liabilities |
|
|
358,445 |
|
|
|
422,259 |
|
Total current liabilities |
|
|
1,376,442 |
|
|
|
1,517,025 |
|
Long-term debt |
|
|
4,508,730 |
|
|
|
4,496,826 |
|
Long-term operating lease liabilities |
|
|
130,559 |
|
|
|
120,134 |
|
Other non-current liabilities |
|
|
175,585 |
|
|
|
123,998 |
|
Total liabilities |
|
|
6,191,316 |
|
|
|
6,257,983 |
|
|
|
|
|
|
||||
Total shareholders’ equity (deficit) |
|
|
(734,483 |
) |
|
|
(739,764 |
) |
Total liabilities and shareholders’ equity (deficit) |
|
$ |
5,456,833 |
|
|
$ |
5,518,219 |
|
Table 4: Condensed Consolidated Statement of Cash Flow (unaudited)
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||||||||
|
|
June 30, |
|
June 30, |
|
% |
|
June 30, |
|
June 30, |
|
% |
||||||||||
In thousands |
|
2024 |
|
2023 |
|
Change |
|
2024 |
|
2023 |
|
Change |
||||||||||
Cash flows from operating activities |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income |
|
$ |
266,758 |
|
|
$ |
246,825 |
|
|
8.1 |
% |
|
$ |
522,712 |
|
|
$ |
485,553 |
|
|
7.7 |
% |
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Amortization of intangible assets |
|
|
40,773 |
|
|
|
26,154 |
|
|
55.9 |
% |
|
|
79,377 |
|
|
|
50,821 |
|
|
56.2 |
% |
Stock-based compensation expense |
|
|
19,396 |
|
|
|
16,143 |
|
|
20.2 |
% |
|
|
53,732 |
|
|
|
37,231 |
|
|
44.3 |
% |
Depreciation and amortization of property, equipment and leasehold improvements |
|
|
4,226 |
|
|
|
5,199 |
|
|
(18.7 |
)% |
|
|
8,307 |
|
|
|
10,659 |
|
|
(22.1 |
)% |
Amortization of right of use assets |
|
|
6,024 |
|
|
|
5,804 |
|
|
3.8 |
% |
|
|
11,837 |
|
|
|
11,586 |
|
|
2.2 |
% |
Loss on extinguishment of debt |
|
|
— |
|
|
|
— |
|
|
— |
% |
|
|
1,510 |
|
|
|
— |
|
|
100.0 |
% |
Other adjustment |
|
|
51,915 |
|
|
|
(6,178 |
) |
|
n/m |
|
|
|
42,037 |
|
|
|
(3,262 |
) |
|
n/m |
|
Net changes in other operating assets and liabilities |
|
|
(39,844 |
) |
|
|
(2,143 |
) |
|
n/m |
|
|
|
(70,127 |
) |
|
|
(36,643 |
) |
|
(91.4 |
)% |
Net cash provided by operating activities |
|
|
349,248 |
|
|
|
291,804 |
|
|
19.7 |
% |
|
|
649,385 |
|
|
|
555,945 |
|
|
16.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash flows from investing activities |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Capitalized software development costs |
|
|
(18,707 |
) |
|
|
(17,312 |
) |
|
(8.1 |
)% |
|
|
(38,673 |
) |
|
|
(32,663 |
) |
|
(18.4 |
)% |
Capital expenditures |
|
|
(8,618 |
) |
|
|
(9,153 |
) |
|
5.8 |
% |
|
|
(12,889 |
) |
|
|
(15,378 |
) |
|
16.2 |
% |
Cash paid for acquisitions, net of cash acquired |
|
|
(19,647 |
) |
|
|
— |
|
|
100.0 |
% |
|
|
(27,467 |
) |
|
|
— |
|
|
100.0 |
% |
Other |
|
|
(153 |
) |
|
|
(203 |
) |
|
24.6 |
% |
|
|
(429 |
) |
|
|
(389 |
) |
|
(10.3 |
)% |
Net cash used in investing activities |
|
|
(47,125 |
) |
|
|
(26,668 |
) |
|
(64.1 |
)% |
|
|
(79,458 |
) |
|
|
(48,430 |
) |
|
(64.1 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash flows from financing activities |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Repurchase of common stock held in treasury |
|
|
(241,718 |
) |
|
|
(441,457 |
) |
|
45.2 |
% |
|
|
(311,709 |
) |
|
|
(485,417 |
) |
|
35.8 |
% |
Payment of dividends |
|
|
(126,918 |
) |
|
|
(110,115 |
) |
|
(15.3 |
)% |
|
|
(258,223 |
) |
|
|
(222,260 |
) |
|
(16.2 |
)% |
Repayment of borrowings |
|
|
— |
|
|
|
(2,187 |
) |
|
100.0 |
% |
|
|
(339,063 |
) |
|
|
(4,375 |
) |
|
n/m |
|
Proceeds from borrowings |
|
|
— |
|
|
|
— |
|
|
— |
% |
|
|
336,875 |
|
|
|
— |
|
|
100.0 |
% |
Payment of debt issuance costs |
|
|
— |
|
|
|
— |
|
|
— |
% |
|
|
(3,739 |
) |
|
|
— |
|
|
100.0 |
% |
Net cash used in financing activities |
|
|
(368,636 |
) |
|
|
(553,759 |
) |
|
33.4 |
% |
|
|
(575,859 |
) |
|
|
(712,052 |
) |
|
19.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Effect of exchange rate changes |
|
|
(1,401 |
) |
|
|
344 |
|
|
n/m |
|
|
|
(4,360 |
) |
|
|
3,302 |
|
|
n/m |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net (decrease) increase in cash, cash equivalents and restricted cash |
|
|
(67,914 |
) |
|
|
(288,279 |
) |
|
76.4 |
% |
|
|
(10,292 |
) |
|
|
(201,235 |
) |
|
94.9 |
% |
Cash, cash equivalents and restricted cash, beginning of period |
|
|
519,315 |
|
|
|
1,080,608 |
|
|
(51.9 |
)% |
|
|
461,693 |
|
|
|
993,564 |
|
|
(53.5 |
)% |
Cash, cash equivalents and restricted cash, end of period |
|
$ |
451,401 |
|
|
$ |
792,329 |
|
|
(43.0 |
)% |
|
$ |
451,401 |
|
|
$ |
792,329 |
|
|
(43.0 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
n/m: not meaningful. |
|
|
|
|
|
|
|
|
|
|
|
|
Table 5: Operating Results by Segment and Revenue Type (unaudited)
Index |
|
Three Months Ended |
|
Six Months Ended |
||||||||||||||||||
|
|
June 30, |
|
June 30, |
|
% |
|
June 30, |
|
June 30, |
|
% |
||||||||||
In thousands |
|
2024 |
|
2023 |
|
Change |
|
2024 |
|
2023 |
|
Change |
||||||||||
Operating revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Recurring subscriptions |
|
$ |
217,032 |
|
|
$ |
200,714 |
|
|
8.1 |
% |
|
$ |
429,984 |
|
|
$ |
397,392 |
|
|
8.2 |
% |
Asset-based fees |
|
|
163,281 |
|
|
|
138,162 |
|
|
18.2 |
% |
|
|
313,540 |
|
|
|
271,288 |
|
|
15.6 |
% |
Non-recurring |
|
|
16,879 |
|
|
|
23,440 |
|
|
(28.0 |
)% |
|
|
27,540 |
|
|
|
33,018 |
|
|
(16.6 |
)% |
Total operating revenues |
|
|
397,192 |
|
|
|
362,316 |
|
|
9.6 |
% |
|
|
771,064 |
|
|
|
701,698 |
|
|
9.9 |
% |
Adjusted EBITDA expenses |
|
|
90,202 |
|
|
|
85,246 |
|
|
5.8 |
% |
|
|
186,314 |
|
|
|
170,946 |
|
|
9.0 |
% |
Adjusted EBITDA |
|
$ |
306,990 |
|
|
$ |
277,070 |
|
|
10.8 |
% |
|
$ |
584,750 |
|
|
$ |
530,752 |
|
|
10.2 |
% |
Adjusted EBITDA margin % |
|
|
77.3 |
% |
|
|
76.5 |
% |
|
|
|
|
75.8 |
% |
|
|
75.6 |
% |
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Analytics |
|
Three Months Ended |
|
Six Months Ended |
||||||||||||||||||
|
|
June 30, |
|
June 30, |
|
% |
|
June 30, |
|
June 30, |
|
% |
||||||||||
In thousands |
|
2024 |
|
2023 |
|
Change |
|
2024 |
|
2023 |
|
Change |
||||||||||
Operating revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Recurring subscriptions |
|
$ |
162,128 |
|
|
$ |
147,504 |
|
|
9.9 |
% |
|
$ |
322,679 |
|
|
$ |
292,007 |
|
|
10.5 |
% |
Non-recurring |
|
|
3,867 |
|
|
|
2,377 |
|
|
62.7 |
% |
|
|
7,282 |
|
|
|
4,944 |
|
|
47.3 |
% |
Total operating revenues |
|
|
165,995 |
|
|
|
149,881 |
|
|
10.8 |
% |
|
|
329,961 |
|
|
|
296,951 |
|
|
11.1 |
% |
Adjusted EBITDA expenses |
|
|
84,323 |
|
|
|
84,732 |
|
|
(0.5 |
)% |
|
|
176,077 |
|
|
|
171,022 |
|
|
3.0 |
% |
Adjusted EBITDA |
|
$ |
81,672 |
|
|
$ |
65,149 |
|
|
25.4 |
% |
|
$ |
153,884 |
|
|
$ |
125,929 |
|
|
22.2 |
% |
Adjusted EBITDA margin % |
|
|
49.2 |
% |
|
|
43.5 |
% |
|
|
|
|
46.6 |
% |
|
|
42.4 |
% |
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
ESG and Climate |
|
Three Months Ended |
|
Six Months Ended |
||||||||||||||||||
|
|
June 30, |
|
June 30, |
|
% |
|
June 30, |
|
June 30, |
|
% |
||||||||||
In thousands |
|
2024 |
|
2023 |
|
Change |
|
2024 |
|
2023 |
|
Change |
||||||||||
Operating revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Recurring subscriptions |
|
$ |
78,000 |
|
|
$ |
70,047 |
|
|
11.4 |
% |
|
$ |
154,418 |
|
|
$ |
135,779 |
|
|
13.7 |
% |
Non-recurring |
|
|
1,855 |
|
|
|
1,172 |
|
|
58.3 |
% |
|
|
3,321 |
|
|
|
2,498 |
|
|
32.9 |
% |
Total operating revenues |
|
|
79,855 |
|
|
|
71,219 |
|
|
12.1 |
% |
|
|
157,739 |
|
|
|
138,277 |
|
|
14.1 |
% |
Adjusted EBITDA expenses |
|
|
55,925 |
|
|
|
48,421 |
|
|
15.5 |
% |
|
|
112,718 |
|
|
|
97,603 |
|
|
15.5 |
% |
Adjusted EBITDA |
|
$ |
23,930 |
|
|
$ |
22,798 |
|
|
5.0 |
% |
|
$ |
45,021 |
|
|
$ |
40,674 |
|
|
10.7 |
% |
Adjusted EBITDA margin % |
|
|
30.0 |
% |
|
|
32.0 |
% |
|
|
|
|
28.5 |
% |
|
|
29.4 |
% |
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
All Other - Private Assets |
|
Three Months Ended |
|
Six Months Ended |
||||||||||||||||||
|
|
June 30, |
|
June 30, |
|
% |
|
June 30, |
|
June 30, |
|
% |
||||||||||
In thousands |
|
2024 |
|
2023 |
|
Change |
|
2024 |
|
2023 |
|
Change |
||||||||||
Operating revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Recurring subscriptions |
|
$ |
64,309 |
|
|
$ |
37,427 |
|
|
71.8 |
% |
|
$ |
127,443 |
|
|
$ |
75,761 |
|
|
68.2 |
% |
Non-recurring |
|
|
598 |
|
|
|
314 |
|
|
90.4 |
% |
|
|
1,707 |
|
|
|
688 |
|
|
148.1 |
% |
Total operating revenues |
|
|
64,907 |
|
|
|
37,741 |
|
|
72.0 |
% |
|
|
129,150 |
|
|
|
76,449 |
|
|
68.9 |
% |
Adjusted EBITDA expenses |
|
|
47,544 |
|
|
|
25,452 |
|
|
86.8 |
% |
|
|
99,277 |
|
|
|
51,769 |
|
|
91.8 |
% |
Adjusted EBITDA |
|
$ |
17,363 |
|
|
$ |
12,289 |
|
|
41.3 |
% |
|
$ |
29,873 |
|
|
$ |
24,680 |
|
|
21.0 |
% |
Adjusted EBITDA margin % |
|
|
26.8 |
% |
|
|
32.6 |
% |
|
|
|
|
23.1 |
% |
|
|
32.3 |
% |
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Consolidated |
|
Three Months Ended |
|
Six Months Ended |
||||||||||||||||||
|
|
June 30, |
|
June 30, |
|
% |
|
June 30, |
|
June 30, |
|
% |
||||||||||
In thousands |
|
2024 |
|
2023 |
|
Change |
|
2024 |
|
2023 |
|
Change |
||||||||||
Operating revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Recurring subscriptions |
|
$ |
521,469 |
|
|
$ |
455,692 |
|
|
14.4 |
% |
|
$ |
1,034,524 |
|
|
$ |
900,939 |
|
|
14.8 |
% |
Asset-based fees |
|
|
163,281 |
|
|
|
138,162 |
|
|
18.2 |
% |
|
|
313,540 |
|
|
|
271,288 |
|
|
15.6 |
% |
Non-recurring |
|
|
23,199 |
|
|
|
27,303 |
|
|
(15.0 |
)% |
|
|
39,850 |
|
|
|
41,148 |
|
|
(3.2 |
)% |
Operating revenues total |
|
|
707,949 |
|
|
|
621,157 |
|
|
14.0 |
% |
|
|
1,387,914 |
|
|
|
1,213,375 |
|
|
14.4 |
% |
Adjusted EBITDA expenses |
|
|
277,994 |
|
|
|
243,851 |
|
|
14.0 |
% |
|
|
574,386 |
|
|
|
491,340 |
|
|
16.9 |
% |
Adjusted EBITDA |
|
$ |
429,955 |
|
|
$ |
377,306 |
|
|
14.0 |
% |
|
$ |
813,528 |
|
|
$ |
722,035 |
|
|
12.7 |
% |
Operating margin % |
|
|
54.0 |
% |
|
|
55.7 |
% |
|
|
|
|
52.0 |
% |
|
|
54.4 |
% |
|
|
||
Adjusted EBITDA margin % |
|
|
60.7 |
% |
|
|
60.7 |
% |
|
|
|
|
58.6 |
% |
|
|
59.5 |
% |
|
|
Table 6: Sales and Retention Rate by Segment (unaudited)(1)
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
|
June 30, |
|
June 30, |
|
June 30, |
|
June 30, |
||||||||
In thousands |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Index |
|
|
|
|
|
|
|
|
||||||||
New recurring subscription sales |
|
$ |
31,297 |
|
|
$ |
31,088 |
|
|
$ |
54,810 |
|
|
$ |
56,178 |
|
Subscription cancellations |
|
|
(10,312 |
) |
|
|
(8,133 |
) |
|
|
(25,014 |
) |
|
|
(15,215 |
) |
Net new recurring subscription sales |
|
$ |
20,985 |
|
|
$ |
22,955 |
|
|
$ |
29,796 |
|
|
$ |
40,963 |
|
Non-recurring sales |
|
$ |
17,993 |
|
|
$ |
26,904 |
|
|
$ |
30,804 |
|
|
$ |
39,686 |
|
Total gross sales |
|
$ |
49,290 |
|
|
$ |
57,992 |
|
|
$ |
85,614 |
|
|
$ |
95,864 |
|
Total Index net sales |
|
$ |
38,978 |
|
|
$ |
49,859 |
|
|
$ |
60,600 |
|
|
$ |
80,649 |
|
|
|
|
|
|
|
|
|
|
||||||||
Index Retention Rate(2) |
|
|
95.2 |
% |
|
|
95.8 |
% |
|
|
94.2 |
% |
|
|
96.1 |
% |
|
|
|
|
|
|
|
|
|
||||||||
Analytics |
|
|
|
|
|
|
|
|
||||||||
New recurring subscription sales |
|
$ |
21,269 |
|
|
$ |
18,290 |
|
|
$ |
35,357 |
|
|
$ |
31,964 |
|
Subscription cancellations |
|
|
(6,900 |
) |
|
|
(7,368 |
) |
|
|
(17,694 |
) |
|
|
(16,551 |
) |
Net new recurring subscription sales |
|
$ |
14,369 |
|
|
$ |
10,922 |
|
|
$ |
17,663 |
|
|
$ |
15,413 |
|
Non-recurring sales |
|
$ |
4,057 |
|
|
$ |
4,158 |
|
|
$ |
6,519 |
|
|
$ |
5,528 |
|
Total gross sales |
|
$ |
25,326 |
|
|
$ |
22,448 |
|
|
$ |
41,876 |
|
|
$ |
37,492 |
|
Total Analytics net sales |
|
$ |
18,426 |
|
|
$ |
15,080 |
|
|
$ |
24,182 |
|
|
$ |
20,941 |
|
|
|
|
|
|
|
|
|
|
||||||||
Analytics Retention Rate(3) |
|
|
95.8 |
% |
|
|
95.2 |
% |
|
|
94.7 |
% |
|
|
94.6 |
% |
|
|
|
|
|
|
|
|
|
||||||||
ESG and Climate |
|
|
|
|
|
|
|
|
||||||||
New recurring subscription sales |
|
$ |
18,557 |
|
|
$ |
13,887 |
|
|
$ |
30,028 |
|
|
$ |
26,373 |
|
Subscription cancellations |
|
|
(4,570 |
) |
|
|
(2,057 |
) |
|
|
(11,921 |
) |
|
|
(4,692 |
) |
Net new recurring subscription sales |
|
$ |
13,987 |
|
|
$ |
11,830 |
|
|
$ |
18,107 |
|
|
$ |
21,681 |
|
Non-recurring sales |
|
$ |
2,835 |
|
|
$ |
1,315 |
|
|
$ |
4,507 |
|
|
$ |
2,534 |
|
Total gross sales |
|
$ |
21,392 |
|
|
$ |
15,202 |
|
|
$ |
34,535 |
|
|
$ |
28,907 |
|
Total ESG and Climate net sales |
|
$ |
16,822 |
|
|
$ |
13,145 |
|
|
$ |
22,614 |
|
|
$ |
24,215 |
|
|
|
|
|
|
|
|
|
|
||||||||
ESG and Climate Retention Rate(4) |
|
|
94.3 |
% |
|
|
96.9 |
% |
|
|
92.5 |
% |
|
|
96.5 |
% |
|
|
|
|
|
|
|
|
|
||||||||
All Other - Private Assets |
|
|
|
|
|
|
|
|
||||||||
New recurring subscription sales |
|
$ |
11,654 |
|
|
$ |
4,815 |
|
|
$ |
19,918 |
|
|
$ |
9,958 |
|
Subscription cancellations |
|
|
(5,580 |
) |
|
|
(2,625 |
) |
|
|
(10,502 |
) |
|
|
(5,481 |
) |
Net new recurring subscription sales |
|
$ |
6,074 |
|
|
$ |
2,190 |
|
|
$ |
9,416 |
|
|
$ |
4,477 |
|
Non-recurring sales |
|
$ |
752 |
|
|
$ |
594 |
|
|
$ |
1,841 |
|
|
$ |
807 |
|
Total gross sales |
|
$ |
12,406 |
|
|
$ |
5,409 |
|
|
$ |
21,759 |
|
|
$ |
10,765 |
|
Total All Other - Private Assets net sales |
|
$ |
6,826 |
|
|
$ |
2,784 |
|
|
$ |
11,257 |
|
|
$ |
5,284 |
|
|
|
|
|
|
|
|
|
|
||||||||
All Other - Private Assets Retention Rate(5) |
|
|
91.2 |
% |
|
|
92.8 |
% |
|
|
91.7 |
% |
|
|
92.5 |
% |
|
|
|
|
|
|
|
|
|
||||||||
Consolidated |
|
|
|
|
|
|
|
|
||||||||
New recurring subscription sales |
|
$ |
82,777 |
|
|
$ |
68,080 |
|
|
$ |
140,113 |
|
|
$ |
124,473 |
|
Subscription cancellations |
|
|
(27,362 |
) |
|
|
(20,183 |
) |
|
|
(65,131 |
) |
|
|
(41,939 |
) |
Net new recurring subscription sales |
|
$ |
55,415 |
|
|
$ |
47,897 |
|
|
$ |
74,982 |
|
|
$ |
82,534 |
|
Non-recurring sales |
|
$ |
25,637 |
|
|
$ |
32,971 |
|
|
$ |
43,671 |
|
|
$ |
48,555 |
|
Total gross sales |
|
$ |
108,414 |
|
|
$ |
101,051 |
|
|
$ |
183,784 |
|
|
$ |
173,028 |
|
Total net sales |
|
$ |
81,052 |
|
|
$ |
80,868 |
|
|
$ |
118,653 |
|
|
$ |
131,089 |
|
|
|
|
|
|
|
|
|
|
||||||||
Total Retention Rate(6) |
|
|
94.8 |
% |
|
|
95.5 |
% |
|
|
93.8 |
% |
|
|
95.4 |
% |
|
|
|
|
|
|
|
|
|
||||||||
(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 Index excluding the impact of the acquisition of Foxberry was |
||||||||||||||||
(3) Retention rate for Analytics excluding the impact of the acquisition of Fabric was |
||||||||||||||||
(4) Retention rate for ESG and Climate excluding the impact of the acquisition of Trove was |
||||||||||||||||
(5) Retention rate for All Other – Private Assets excluding the impact of the acquisition of Burgiss was |
||||||||||||||||
(6) Total retention rate excluding the impact of the acquisitions of Foxberry, Fabric, Trove and Burgiss was |
Table 7: AUM in ETFs Linked to MSCI Equity Indexes (unaudited)(1)(2)
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||||||||
|
|
June 30, |
|
Sep. 30, |
|
Dec. 31, |
|
Mar. 31, |
|
June 30, |
|
June 30, |
|
June 30, |
||||||||
In billions |
|
2023 |
|
2023 |
|
2023 |
|
2024 |
|
2024 |
|
2023 |
|
2024 |
||||||||
Beginning Period AUM in ETFs linked to |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
MSCI equity indexes |
|
$ |
1,305.4 |
|
$ |
1,372.5 |
|
|
$ |
1,322.8 |
|
$ |
1,468.9 |
|
$ |
1,582.6 |
|
$ |
1,222.9 |
|
$ |
1,468.9 |
Market Appreciation/(Depreciation) |
|
|
48.4 |
|
|
(56.1 |
) |
|
|
130.5 |
|
|
92.8 |
|
|
21.2 |
|
|
123.5 |
|
|
114.0 |
Cash Inflows |
|
|
18.7 |
|
|
6.4 |
|
|
|
15.6 |
|
|
20.9 |
|
|
28.1 |
|
|
26.1 |
|
|
49.0 |
Period-End AUM in ETFs linked to |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
MSCI equity indexes |
|
$ |
1,372.5 |
|
$ |
1,322.8 |
|
|
$ |
1,468.9 |
|
$ |
1,582.6 |
|
$ |
1,631.9 |
|
$ |
1,372.5 |
|
$ |
1,631.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Period Average AUM in ETFs linked to |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
MSCI equity indexes |
|
$ |
1,333.8 |
|
$ |
1,376.5 |
|
|
$ |
1,364.9 |
|
$ |
1,508.8 |
|
$ |
1,590.6 |
|
$ |
1,310.7 |
|
$ |
1,549.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Period-End Basis Point Fee(3) |
|
|
2.52 |
|
|
2.51 |
|
|
|
2.50 |
|
|
2.48 |
|
|
2.47 |
|
|
2.52 |
|
|
2.47 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
(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 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 |
|
|
|||||
|
|
June 30, |
|
June 30, |
|
% |
|||
In thousands |
|
2024 |
|
2023 |
|
Change |
|||
Index |
|
|
|
|
|
|
|||
Recurring subscriptions |
|
$ |
891,633 |
|
$ |
818,780 |
|
8.9 |
% |
Asset-based fees |
|
|
646,811 |
|
|
557,414 |
|
16.0 |
% |
Index Run Rate |
|
|
1,538,444 |
|
|
1,376,194 |
|
11.8 |
% |
|
|
|
|
|
|
|
|||
Analytics Run Rate |
|
|
674,609 |
|
|
631,218 |
|
6.9 |
% |
|
|
|
|
|
|
|
|||
ESG and Climate Run Rate |
|
|
333,683 |
|
|
291,802 |
|
14.4 |
% |
|
|
|
|
|
|
|
|||
All Other - Private Assets Run Rate |
|
|
260,556 |
|
|
150,587 |
|
73.0 |
% |
|
|
|
|
|
|
|
|||
Total Run Rate |
|
$ |
2,807,292 |
|
$ |
2,449,801 |
|
14.6 |
% |
|
|
|
|
|
|
|
|||
Total recurring subscriptions |
|
$ |
2,160,481 |
|
$ |
1,892,387 |
|
14.2 |
% |
Total asset-based fees |
|
|
646,811 |
|
|
557,414 |
|
16.0 |
% |
Total Run Rate |
|
$ |
2,807,292 |
|
$ |
2,449,801 |
|
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 |
|
Six Months Ended |
||||||||
|
|
June 30, |
|
June 30, |
|
June 30, |
|
June 30, |
||||
In thousands |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||
Net income |
|
$ |
266,758 |
|
$ |
246,825 |
|
$ |
522,712 |
|
$ |
485,553 |
Provision for income taxes |
|
|
73,236 |
|
|
60,333 |
|
|
113,175 |
|
|
97,977 |
Other expense (income), net |
|
|
42,614 |
|
|
38,795 |
|
|
86,103 |
|
|
77,025 |
Operating income |
|
|
382,608 |
|
|
345,953 |
|
|
721,990 |
|
|
660,555 |
Amortization of intangible assets |
|
|
40,773 |
|
|
26,154 |
|
|
79,377 |
|
|
50,821 |
Depreciation and amortization of property, |
|
|
|
|
|
|
|
|
||||
equipment and leasehold improvements |
|
|
4,226 |
|
|
5,199 |
|
|
8,307 |
|
|
10,659 |
Acquisition-related integration and transaction costs(1) |
|
|
2,348 |
|
|
— |
|
|
3,854 |
|
|
— |
Consolidated adjusted EBITDA |
|
$ |
429,955 |
|
$ |
377,306 |
|
$ |
813,528 |
|
$ |
722,035 |
|
|
|
|
|
|
|
|
|
||||
Index adjusted EBITDA |
|
$ |
306,990 |
|
$ |
277,070 |
|
$ |
584,750 |
|
$ |
530,752 |
Analytics adjusted EBITDA |
|
|
81,672 |
|
|
65,149 |
|
|
153,884 |
|
|
125,929 |
ESG and Climate adjusted EBITDA |
|
|
23,930 |
|
|
22,798 |
|
|
45,021 |
|
|
40,674 |
All Other - Private Assets adjusted EBITDA |
|
|
17,363 |
|
|
12,289 |
|
|
29,873 |
|
|
24,680 |
Consolidated adjusted EBITDA |
|
$ |
429,955 |
|
$ |
377,306 |
|
$ |
813,528 |
|
$ |
722,035 |
|
|
|
|
|
|
|
|
|
||||
(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 |
|
Six Months Ended |
||||||||||||
|
|
June 30, |
|
June 30, |
|
June 30, |
|
June 30, |
||||||||
In thousands, except per share data |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Net income |
|
$ |
266,758 |
|
|
$ |
246,825 |
|
|
$ |
522,712 |
|
|
$ |
485,553 |
|
Plus: Amortization of acquired intangible assets and |
|
|
|
|
|
|
|
|
||||||||
equity method investment basis difference |
|
|
25,893 |
|
|
|
16,825 |
|
|
|
51,160 |
|
|
|
33,634 |
|
Plus: Acquisition-related integration and transaction costs(1) |
|
|
2,348 |
|
|
|
— |
|
|
|
3,854 |
|
|
|
— |
|
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) |
|
|
(6,164 |
) |
|
|
(3,357 |
) |
|
|
(10,172 |
) |
|
|
(5,553 |
) |
Adjusted net income |
|
$ |
288,835 |
|
|
$ |
260,293 |
|
|
$ |
569,064 |
|
|
$ |
513,187 |
|
|
|
|
|
|
|
|
|
|
||||||||
Diluted EPS |
|
$ |
3.37 |
|
|
$ |
3.09 |
|
|
$ |
6.59 |
|
|
$ |
6.05 |
|
Plus: Amortization of acquired intangible assets and |
|
|
|
|
|
|
|
|
||||||||
equity method investment basis difference |
|
|
0.32 |
|
|
|
0.21 |
|
|
|
0.64 |
|
|
|
0.42 |
|
Plus: Acquisition-related integration and transaction costs(1) |
|
|
0.03 |
|
|
|
— |
|
|
|
0.05 |
|
|
|
— |
|
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) |
|
|
(0.08 |
) |
|
|
(0.04 |
) |
|
|
(0.13 |
) |
|
|
(0.06 |
) |
Adjusted EPS |
|
$ |
3.64 |
|
|
$ |
3.26 |
|
|
$ |
7.17 |
|
|
$ |
6.40 |
|
|
|
|
|
|
|
|
|
|
||||||||
Diluted weighted average common shares outstanding |
|
|
79,245 |
|
|
|
79,905 |
|
|
|
79,377 |
|
|
|
80,193 |
|
|
|
|
|
|
|
|
|
|
||||||||
(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 |
|
Six Months Ended |
|
Full-Year |
||||||||
|
|
June 30, |
|
June 30, |
|
June 30, |
|
June 30, |
|
2024 |
||||
In thousands |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
Guidance (1) |
||||
Total operating expenses |
|
$ |
325,341 |
|
$ |
275,204 |
|
$ |
665,924 |
|
$ |
552,820 |
|
|
Amortization of intangible assets |
|
|
40,773 |
|
|
26,154 |
|
|
79,377 |
|
|
50,821 |
|
|
Depreciation and amortization of property, |
|
|
|
|
|
|
|
|
|
|
||||
equipment and leasehold improvements |
|
|
4,226 |
|
|
5,199 |
|
|
8,307 |
|
|
10,659 |
|
|
Acquisition-related integration and transaction costs(2) |
|
|
2,348 |
|
|
— |
|
|
3,854 |
|
|
— |
|
|
Consolidated adjusted EBITDA expenses |
|
$ |
277,994 |
|
$ |
243,851 |
|
$ |
574,386 |
|
$ |
491,340 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Index adjusted EBITDA expenses |
|
$ |
90,202 |
|
$ |
85,246 |
|
$ |
186,314 |
|
$ |
170,946 |
|
|
Analytics adjusted EBITDA expenses |
|
|
84,323 |
|
|
84,732 |
|
|
176,077 |
|
|
171,022 |
|
|
ESG and Climate adjusted EBITDA expenses |
|
|
55,925 |
|
|
48,421 |
|
|
112,718 |
|
|
97,603 |
|
|
All Other - Private Assets adjusted EBITDA expenses |
|
|
47,544 |
|
|
25,452 |
|
|
99,277 |
|
|
51,769 |
|
|
Consolidated adjusted EBITDA expenses |
|
$ |
277,994 |
|
$ |
243,851 |
|
$ |
574,386 |
|
$ |
491,340 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
(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 |
|
Six Months Ended |
|
Full-Year |
||||||||||||
|
|
June 30, |
|
June 30, |
|
June 30, |
|
June 30, |
|
2024 |
||||||||
In thousands |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
Guidance (1) |
||||||||
Net cash provided by operating activities |
|
$ |
349,248 |
|
|
$ |
291,804 |
|
|
$ |
649,385 |
|
|
$ |
555,945 |
|
|
|
Capital expenditures |
|
|
(8,618 |
) |
|
|
(9,153 |
) |
|
|
(12,889 |
) |
|
|
(15,378 |
) |
|
|
Capitalized software development costs |
|
|
(18,707 |
) |
|
|
(17,312 |
) |
|
|
(38,673 |
) |
|
|
(32,663 |
) |
|
|
Capex |
|
|
(27,325 |
) |
|
|
(26,465 |
) |
|
|
(51,562 |
) |
|
|
(48,041 |
) |
|
( |
Free cash flow |
|
$ |
321,923 |
|
|
$ |
265,339 |
|
|
$ |
597,823 |
|
|
$ |
507,904 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
(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: Second Quarter 2024 Reconciliation of Operating Revenue Growth to Organic Operating Revenue Growth (unaudited)
|
|
Comparison of the Three Months Ended June 30, 2024 and 2023 |
||||||||||
|
|
Total |
|
Recurring
|
|
Asset-Based Fees |
|
Non-Recurring
|
||||
Index |
|
Change Percentage |
|
Change Percentage |
|
Change Percentage |
|
Change Percentage |
||||
Operating revenue growth |
|
9.6 |
% |
|
8.1 |
% |
|
18.2 |
% |
|
(28.0 |
)% |
Impact of acquisitions and divestitures |
|
— |
% |
|
(0.1 |
)% |
|
— |
% |
|
— |
% |
Impact of foreign currency exchange rate fluctuations |
|
0.2 |
% |
|
0.4 |
% |
|
0.1 |
% |
|
— |
% |
Organic operating revenue growth |
|
9.8 |
% |
|
8.4 |
% |
|
18.3 |
% |
|
(28.0 |
)% |
|
|
|
|
|
|
|
|
|
||||
|
|
Total |
|
Recurring
|
|
Asset-Based Fees |
|
Non-Recurring
|
||||
Analytics |
|
Change Percentage |
|
Change Percentage |
|
Change Percentage |
|
Change Percentage |
||||
Operating revenue growth |
|
10.8 |
% |
|
9.9 |
% |
|
— |
% |
|
62.7 |
% |
Impact of acquisitions and divestitures |
|
(0.2 |
)% |
|
(0.1 |
)% |
|
— |
% |
|
— |
% |
Impact of foreign currency exchange rate fluctuations |
|
0.6 |
% |
|
0.6 |
% |
|
— |
% |
|
2.0 |
% |
Organic operating revenue growth |
|
11.2 |
% |
|
10.4 |
% |
|
— |
% |
|
64.7 |
% |
|
|
|
|
|
|
|
|
|
||||
|
|
Total |
|
Recurring
|
|
Asset-Based Fees |
|
Non-Recurring
|
||||
ESG and Climate |
|
Change Percentage |
|
Change Percentage |
|
Change Percentage |
|
Change Percentage |
||||
Operating revenue growth |
|
12.1 |
% |
|
11.4 |
% |
|
— |
% |
|
58.3 |
% |
Impact of acquisitions and divestitures |
|
(1.6 |
)% |
|
(1.7 |
)% |
|
— |
% |
|
(2.2 |
)% |
Impact of foreign currency exchange rate fluctuations |
|
(0.5 |
)% |
|
(0.5 |
)% |
|
— |
% |
|
1.3 |
% |
Organic operating revenue growth |
|
10.0 |
% |
|
9.2 |
% |
|
— |
% |
|
57.4 |
% |
|
|
|
|
|
|
|
|
|
||||
|
|
Total |
|
Recurring
|
|
Asset-Based Fees |
|
Non-Recurring
|
||||
All Other - Private Assets |
|
Change Percentage |
|
Change Percentage |
|
Change Percentage |
|
Change Percentage |
||||
Operating revenue growth |
|
72.0 |
% |
|
71.8 |
% |
|
— |
% |
|
90.4 |
% |
Impact of acquisitions and divestitures |
|
(70.9 |
)% |
|
(70.6 |
)% |
|
— |
% |
|
(105.4 |
)% |
Impact of foreign currency exchange rate fluctuations |
|
0.2 |
% |
|
0.3 |
% |
|
— |
% |
|
— |
% |
Organic operating revenue growth |
|
1.3 |
% |
|
1.5 |
% |
|
— |
% |
|
(15.0 |
)% |
|
|
|
|
|
|
|
|
|
||||
|
|
Total |
|
Recurring
|
|
Asset-Based Fees |
|
Non-Recurring
|
||||
Consolidated |
|
Change Percentage |
|
Change Percentage |
|
Change Percentage |
|
Change Percentage |
||||
Operating revenue growth |
|
14.0 |
% |
|
14.4 |
% |
|
18.2 |
% |
|
(15.0 |
)% |
Impact of acquisitions and divestitures |
|
(4.6 |
)% |
|
(6.1 |
)% |
|
— |
% |
|
(1.3 |
)% |
Impact of foreign currency exchange rate fluctuations |
|
0.3 |
% |
|
0.3 |
% |
|
0.1 |
% |
|
0.2 |
% |
Organic operating revenue growth |
|
9.7 |
% |
|
8.6 |
% |
|
18.3 |
% |
|
(16.1 |
)% |
Table 14: Six Months 2024 Reconciliation of Operating Revenue Growth to Organic Operating Revenue Growth (unaudited)
|
|
Comparison of the Six Months Ended June 30, 2024 and 2023 |
||||||||||
|
|
Total |
|
Recurring
|
|
Asset-Based Fees |
|
Non-Recurring
|
||||
Index |
|
Change Percentage |
|
Change Percentage |
|
Change Percentage |
|
Change Percentage |
||||
Operating revenue growth |
|
9.9 |
% |
|
8.2 |
% |
|
15.6 |
% |
|
(16.6 |
)% |
Impact of acquisitions and divestitures |
|
— |
% |
|
— |
% |
|
— |
% |
|
— |
% |
Impact of foreign currency exchange rate fluctuations |
|
0.2 |
% |
|
0.3 |
% |
|
0.1 |
% |
|
— |
% |
Organic operating revenue growth |
|
10.1 |
% |
|
8.5 |
% |
|
15.7 |
% |
|
(16.6 |
)% |
|
|
|
|
|
|
|
|
|
||||
|
|
Total |
|
Recurring
|
|
Asset-Based Fees |
|
Non-Recurring
|
||||
Analytics |
|
Change Percentage |
|
Change Percentage |
|
Change Percentage |
|
Change Percentage |
||||
Operating revenue growth |
|
11.1 |
% |
|
10.5 |
% |
|
— |
% |
|
47.3 |
% |
Impact of acquisitions and divestitures |
|
(0.1 |
)% |
|
(0.1 |
)% |
|
— |
% |
|
— |
% |
Impact of foreign currency exchange rate fluctuations |
|
0.6 |
% |
|
0.5 |
% |
|
— |
% |
|
1.8 |
% |
Organic operating revenue growth |
|
11.6 |
% |
|
10.9 |
% |
|
— |
% |
|
49.1 |
% |
|
|
|
|
|
|
|
|
|
||||
|
|
Total |
|
Recurring
|
|
Asset-Based Fees |
|
Non-Recurring
|
||||
ESG and Climate |
|
Change Percentage |
|
Change Percentage |
|
Change Percentage |
|
Change Percentage |
||||
Operating revenue growth |
|
14.1 |
% |
|
13.7 |
% |
|
— |
% |
|
32.9 |
% |
Impact of acquisitions and divestitures |
|
(1.8 |
)% |
|
(1.7 |
)% |
|
— |
% |
|
(2.7 |
)% |
Impact of foreign currency exchange rate fluctuations |
|
(1.8 |
)% |
|
(1.9 |
)% |
|
— |
% |
|
0.5 |
% |
Organic operating revenue growth |
|
10.5 |
% |
|
10.1 |
% |
|
— |
% |
|
30.7 |
% |
|
|
|
|
|
|
|
|
|
||||
|
|
Total |
|
Recurring
|
|
Asset-Based Fees |
|
Non-Recurring
|
||||
All Other - Private Assets |
|
Change Percentage |
|
Change Percentage |
|
Change Percentage |
|
Change Percentage |
||||
Operating revenue growth |
|
68.9 |
% |
|
68.2 |
% |
|
— |
% |
|
148.1 |
% |
Impact of acquisitions and divestitures |
|
(66.7 |
)% |
|
(66.5 |
)% |
|
— |
% |
|
(84.9 |
)% |
Impact of foreign currency exchange rate fluctuations |
|
(0.2 |
)% |
|
(0.3 |
)% |
|
— |
% |
|
(0.1 |
)% |
Organic operating revenue growth |
|
2.0 |
% |
|
1.4 |
% |
|
— |
% |
|
63.1 |
% |
|
|
|
|
|
|
|
|
|
||||
|
|
Total |
|
Recurring
|
|
Asset-Based Fees |
|
Non-Recurring
|
||||
Consolidated |
|
Change Percentage |
|
Change Percentage |
|
Change Percentage |
|
Change Percentage |
||||
Operating revenue growth |
|
14.4 |
% |
|
14.8 |
% |
|
15.6 |
% |
|
(3.2 |
)% |
Impact of acquisitions and divestitures |
|
(4.5 |
)% |
|
(5.9 |
)% |
|
— |
% |
|
(1.5 |
)% |
Impact of foreign currency exchange rate fluctuations |
|
0.1 |
% |
|
— |
% |
|
0.1 |
% |
|
0.2 |
% |
Organic operating revenue growth |
|
10.0 |
% |
|
8.9 |
% |
|
15.7 |
% |
|
(4.5 |
)% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240723764867/en/
MSCI Inc. Contacts
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.
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