MSCI Inc. (“MSCI” or the “Company”) (NYSE: MSCI), a leading
provider of critical decision support tools and services for the
global investment community, today announced its financial results
for the three months ended December 31, 2021 (“fourth quarter
2021”) and full year ended December 31, 2021 (“full year
2021”).
Financial and Operational Highlights for Fourth Quarter
2021 (Note: Unless otherwise noted, percentage and other
changes are relative to the three months ended December 31, 2020
(“fourth quarter 2020”) and Run Rate percentage changes are
relative to December 31, 2020).
- Operating revenues of $549.8 million, up 23.9%; Organic
operating revenue growth of 19.8%
- Recurring subscription revenues up 19.3%; Asset-based fees
up 34.4%
- Operating margin of 51.0%; Adjusted EBITDA margin of
58.0%
- Diluted EPS of $2.32, up 24.1%; Adjusted EPS of $2.51, up
28.1%
- New recurring subscription sales growth of 43.1%; Organic
subscription Run Rate growth of 13.4%; Retention Rate of
94.4%
- In first quarter 2022 and through trade date of January 25,
2022, a total of $474.3 million or 915,866 shares were repurchased
at an average repurchase price of $517.83
- Approximately $85.8 million in dividends were paid to
shareholders in fourth quarter 2021; Cash dividend of $1.04 per
share declared by MSCI Board of Directors for first quarter
2022
Three Months Ended
Year Ended
Dec. 31,
Dec. 31,
%
Dec. 31,
Dec. 31,
%
In thousands, except per share
data
2021
2020
Change
2021
2020
Change
Operating revenues
$
549,842
$
443,661
23.9
%
$
2,043,544
$
1,695,390
20.5
%
Operating income
$
280,587
$
234,085
19.9
%
$
1,072,725
$
884,764
21.2
%
Operating margin %
51.0
%
52.8
%
52.5
%
52.2
%
Net income
$
193,865
$
156,216
24.1
%
$
725,983
$
601,822
20.6
%
Diluted EPS
$
2.32
$
1.87
24.1
%
$
8.70
$
7.12
22.2
%
Adjusted EPS
$
2.51
$
1.96
28.1
%
$
9.95
$
7.83
27.1
%
Adjusted EBITDA
$
318,660
$
256,136
24.4
%
$
1,196,790
$
971,510
23.2
%
Adjusted EBITDA margin %
58.0
%
57.7
%
58.6
%
57.3
%
“MSCI’s ground-breaking performance in the fourth quarter and
full year of 2021 reflected strong success on key strategic
investments, a laser focus on the needs of our clients, and
unprecedented demand for our solutions. Among other milestones, we
achieved record full-year and quarterly recurring sales and
recurring net new sales, along with the 32nd consecutive quarter of
double-digit subscription growth in our Index business,” said Henry
A. Fernandez, Chairman and CEO of MSCI.
“Over the course of 2022, we will continue investing and
executing aggressively to meet growing client demand and secure
leadership positions across the enormous growth opportunities in
front of us, including ESG and Climate. The global race to net-zero
keeps accelerating, and we have positioned MSCI as a leading
provider of climate-related tools for the capital markets
industry,” added Mr. Fernandez.
Fourth Quarter Consolidated
Results
Operating Revenues:
Operating revenues were $549.8 million, up 23.9%. Organic operating
revenue growth was 19.8%. The $106.2 million increase was comprised
of $61.9 million in higher recurring subscription revenues and
$38.3 million in higher asset-based fees, as well as $6.0 million
in higher non-recurring revenues.
Run Rate and Retention Rate:
Total Run Rate at December 31, 2021 was $2,203.9 million, up 20.3%.
Recurring subscriptions Run Rate increased by $246.2 million and
asset-based fees Run Rate increased by $125.2 million. Organic
recurring subscriptions Run Rate growth was 13.4%. Retention Rate
in fourth quarter 2021 was 94.4%, compared to 92.6% in fourth
quarter 2020.
Expenses: Total operating
expenses were $269.3 million, up 28.5%. Adjusted EBITDA expenses
were $231.2 million, up 23.3%, primarily reflecting higher
compensation and benefits costs, related to continued investments
to support growth, including increased headcount in product
development and research and technology and increased
non-compensation costs in the areas of information technology
costs, professional fees, market data costs and marketing costs.
Approximately $8.7 million in impairment charges related to the
sublease of leased property were excluded from Adjusted EBITDA
expenses. Total operating expenses excluding the impact of foreign
currency exchange rate fluctuations (“ex-FX”) and adjusted EBITDA
expenses ex-FX increased 29.0% and 23.9%, respectively.
Headcount: As of December
31, 2021, headcount was 4,303 employees, with approximately 37% and
approximately 63% of employees located in developed market and
emerging market locations, respectively.
Other Expense (Income), Net:
Other expense (income), net was $34.8 million, down 10.5% primarily
reflecting a one-time gain of $7.0 million related to the gain
resulting from changes in ownership interest of The Burgiss Group,
LLC, an equity method investee, partially offset by higher interest
expense due to higher debt balances versus the prior period.
Income Taxes: The effective
tax rate was 21.1% in fourth quarter 2021, compared to 20.0% in
fourth quarter 2020, primarily driven by higher net unfavorable
discrete expenses, including accruals for potential audit
settlements and other prior year items.
Net Income: As a result of
the factors described above, net income was $193.9 million, up
24.1%.
Adjusted EBITDA: Adjusted
EBITDA was $318.7 million, up 24.4%. Adjusted EBITDA margin in
fourth quarter 2021 was 58.0%, compared to 57.7% in fourth quarter
2020.
Index Segment:
Table 1A: Results (unaudited)
Three Months Ended
Year Ended
Dec. 31,
Dec. 31,
%
Dec. 31,
Dec. 31,
%
In thousands
2021
2020
Change
2021
2020
Change
Operating revenues:
Recurring subscriptions
$170,141
$148,762
14.4%
$650,629
$580,393
12.1%
Asset-based fees
149,398
111,129
34.4%
553,991
399,771
38.6%
Non-recurring
12,268
8,749
40.2%
47,144
36,331
29.8%
Total operating revenues
331,807
268,640
23.5%
1,251,764
1,016,495
23.1%
Adjusted EBITDA expenses
79,429
63,710
24.7%
300,452
250,002
20.2%
Adjusted EBITDA
$252,378
$204,930
23.2%
$951,312
$766,493
24.1%
Adjusted EBITDA margin %
76.1%
76.3%
76.0%
75.4%
Index operating revenues were $331.8 million, up 23.5%. The
$63.2 million increase was primarily driven by $38.3 million in
higher asset-based fees mainly reflecting an increase in revenues
from exchange traded funds (“ETFs”) linked to MSCI equity indexes.
This increase reflected higher average AUM in ETFs linked to MSCI
equity indexes, partially offset by a decline in average basis
point fees on those AUM.
Recurring subscription revenues increased by $21.4 million,
primarily reflecting strong contributions from market cap-weighted
index products and from factor, ESG and climate index products. The
$3.5 million increase in non-recurring revenues reflected higher
licenses of derivative and factor and ESG index products, including
client license and usage fees related to prior periods.
Index Run Rate as of December 31, 2021 was $1.3 billion, up
18.6%. The $201.4 million increase was comprised of a $125.2
million increase in asset-based fees Run Rate and a $76.2 million
increase in recurring subscription Run Rate. The increase in
asset-based fees Run Rate was primarily driven by higher AUM in
ETFs linked to MSCI equity indexes and higher AUM in non-ETF
indexed funds linked to MSCI indexes. The increase in recurring
subscription Run Rate was primarily driven by growth across
products, including market cap-weighted index products and strong
growth in factor, ESG and climate index products and reflected
growth across all regions and all client segments.
Analytics Segment:
Table 1B: Results (unaudited)
Three Months Ended
Year Ended
Dec. 31,
Dec. 31,
%
Dec. 31,
Dec. 31,
%
In thousands
2021
2020
Change
2021
2020
Change
Operating revenues:
Recurring subscriptions
$133,818
$129,796
3.1%
$533,178
$506,301
5.3%
Non-recurring
4,264
2,604
63.7%
11,121
7,507
48.1%
Total operating revenues
138,082
132,400
4.3%
544,299
513,808
5.9%
Adjusted EBITDA expenses
85,119
87,016
(2.2%)
345,500
340,884
1.4%
Adjusted EBITDA
$52,963
$45,384
16.7%
$198,799
$172,924
15.0%
Adjusted EBITDA margin %
38.4%
34.3%
36.5%
33.7%
Analytics operating revenues were $138.1 million, up 4.3%. The
$5.7 million increase was driven primarily by higher recurring
subscription revenues from Equity Analytics products.
Analytics Run Rate as of December 31, 2021 was $585.2 million,
up 5.4%. The increase of $30.1 million was also driven by growth in
both Multi-Asset Class and Equity Analytics products. Analytics
organic Run Rate growth was 6.8%.
ESG and Climate Segment:
Table 1C: Results (unaudited)
Three Months Ended
Year Ended
Dec. 31,
Dec. 31,
%
Dec. 31,
Dec. 31,
%
In thousands
2021
2020
Change
2021
2020
Change
Operating revenues:
Recurring subscriptions
$47,310
$30,984
52.7%
$162,609
$109,945
47.9%
Non-recurring
1,133
294
285.4%
3,583
1,419
152.5%
Total operating revenues
48,443
31,278
54.9%
166,192
111,364
49.2%
Adjusted EBITDA expenses
39,280
25,210
55.8%
136,444
88,513
54.2%
Adjusted EBITDA
$9,163
$6,068
51.0%
$29,748
$22,851
30.2%
Adjusted EBITDA margin %
18.9%
19.4%
17.9%
20.5%
ESG and Climate operating revenues were $48.4 million, up 54.9%.
The $17.2 million increase was primarily driven by strong growth
from Ratings, Climate and Screening products. Excluding foreign
currency exchange rate fluctuations, ESG and Climate revenue growth
was 53.0%.
ESG and Climate Run Rate as of December 31, 2021 was $199.6
million, up 44.3%. The $61.3 million increase primarily reflects
strong growth from Ratings, Climate and Screening products with
contributions across all regions and client segments. ESG and
Climate organic Run Rate growth was 47.1%.
All Other – Private Assets
Segment:
Table 1D: Results (unaudited)
Three Months Ended
Year Ended
Dec. 31,
Dec. 31,
%
Dec. 31,
Dec. 31,
%
In thousands
2021
2020
Change
2021
2020
Change
Operating revenues:
Recurring subscriptions
$31,269
$11,134
180.8%
$79,624
$51,536
54.5%
Non-recurring
241
209
15.3%
1,665
2,187
(23.9%)
Total operating revenues
31,510
11,343
177.8%
81,289
53,723
51.3%
Adjusted EBITDA expenses
27,354
11,589
136.0%
64,358
44,481
44.7%
Adjusted EBITDA
$4,156
$(246)
nm
$16,931
$9,242
83.2%
Adjusted EBITDA margin %
13.2%
(2.2%)
20.8%
17.2%
All Other – Private Assets operating revenues, which reflects
the Real Estate operating segment, were $31.5 million, up 177.8%,
and included $18.7 million from the acquisition of RCA which closed
on September 13, 2021. Excluding the acquisition of RCA, All Other
– Private Assets segment revenues increased 13.0% reflecting strong
growth in Global Intel and Real Estate Climate Value-at-Risk
products. Excluding foreign currency exchange rate fluctuations and
contributions from RCA, All Other – Private Assets revenue growth
was 12.9%.
All Other – Private Assets Run Rate, which reflects the Real
Estate operating segment, was $135.1 million as of December 31,
2021, up 139.2%, and included $76.0 million associated with the RCA
business. Excluding the acquisition, the increase reflected
contributions from Global Intel products, as well as strong growth
in new sales of Real Estate Climate Value-at-Risk products. All
Other – Private Assets organic subscription Run Rate growth was
7.6%.
Select Balance Sheet Items and Capital
Allocation
Cash Balances and Outstanding
Debt: Cash and cash equivalents was $1.4 billion as of
December 31, 2021. MSCI typically seeks to maintain minimum cash
balances globally of approximately $200.0 million to $250.0 million
for general operating purposes.
Total principal amounts of debt outstanding as of December 31,
2021 was $4.2 billion. The total debt to net income ratio (based on
trailing twelve months net income) was 5.7x. The total debt to
adjusted EBITDA ratio (based on trailing twelve months adjusted
EBITDA) was 3.5x.
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 $16.6 million, cash provided by operating activities increased
by 18.5% to $279.7 million due to higher cash collections and free
cash flow was $263.1 million, up 20.1%.
Share Count and Share
Repurchases: Weighted average diluted shares outstanding
were 83.6 million in fourth quarter 2021, down 0.2% year-over-year.
Total share repurchases during the quarter were $5.2 million or
9,069 shares at an average repurchase price of $577.76. In first
quarter 2022 and through trade date of January 25, 2022, a total of
$474.3 million or 915,866 shares were repurchased at an average
repurchase price of $517.83. Total shares outstanding as of
December 31, 2021 were 82.4 million. A total of $1.1 billion
remains on the outstanding share repurchase authorization as of
trade date of January 25, 2021.
Dividends: Approximately
$85.8 million in dividends were paid to shareholders in fourth
quarter 2021. On January 24, 2022, the MSCI Board of Directors
declared a cash dividend of $1.04 per share for first quarter 2022,
payable on February 28, 2022 to shareholders of record as of the
close of trading on February 18, 2022.
Full-Year 2022 Guidance
MSCI's guidance for the year ending December 31, 2022
(“Full-Year 2022”) is based on assumptions about a number of
macroeconomic and capital market factors, in particular related to
equity 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 ongoing uncertainty
related to the duration, magnitude and impact of the ongoing
COVID-19 pandemic.
Guidance Item
Current Guidance for Full-Year
2022
Operating Expense
$1,075 to $1,115 million
Adjusted EBITDA Expense
$975 to $1,005 million
Interest Expense (including
amortization of financing fees)(1)
~$162 million
Depreciation & Amortization
Expense
$100 to $110 million
Effective Tax Rate
15.5% to 18.5%
Capital Expenditures
$60 to $70 million
Net Cash Provided by Operating
Activities
$1,120 to $1,160 million
Free Cash Flow
$1,050 to $1,100 million
(1) Interest income will continue to be
impacted by the lower rates available on cash balances.
The guidance provided above assumes, among other things, that
MSCI maintains its current debt levels. On January 26, 2022, the
MSCI Board of Directors authorized management to opportunistically
explore financing options that would increase the Company's
leverage ratio and interest expense. Any potential financing is
subject to market and other conditions, and there can be no
assurance as to the timing or certainty of a transaction.
Conference Call Information
MSCI's senior management will review the fourth quarter and full
year 2021 results on Thursday, January 27, 2022 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 1-877-376-9931 conference ID: 3990859 within the United
States. International callers may dial 1-720-405-2251 conference
ID: 3990859. The teleconference will also be webcast with an
accompanying slide presentation which can be accessed through
MSCI's Investor Relations website.
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 2022 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, 2020 filed with the Securities and Exchange Commission
(“SEC”) on February 12, 2021 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 website, including its quarterly updates, blog,
podcasts and social media channels, including its corporate Twitter
account (@MSCI_Inc), 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, quarterly
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 Subscription” 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
100% to derive the annualized Retention Rate for the period.
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
Estate 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-sale 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 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,
including the acquisition of RCA completed on September 13, 2021.
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 15 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 impairment related to
sublease of leased property and certain non-recurring
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 impairment
related to sublease of leased property and certain non-recurring
acquisition-related integration and transaction costs.
“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, the impact related to costs
associated with debt extinguishment, the impact related to certain
non-recurring acquisition-related integration and transaction
costs, the impact from impairment related to sublease of leased
property, the impact related to gain from changes in ownership
interest of equity method investee, and, at times, certain other
transactions or adjustments. We also exclude the tax impact
of adjustments for the Tax Cuts and Jobs Act that was enacted on
December 22, 2017 (“Tax Reform”), except for certain amounts
associated with active tax planning implemented as a result of Tax
Reform.
“Adjusted tax rate” is defined as the effective tax rate
excluding the impact of Tax Reform adjustments (except for certain
amounts associated with active tax planning implemented as a result
of Tax Reform).
“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 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 adjusted tax rate is useful to investors because
it increases the comparability of period-to-period results by
adjusting for the estimated net impact of Tax Reform.
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, adjusted net income,
adjusted EPS, adjusted tax rate, 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 U.S. dollar, and accordingly, any such
impact is excluded from the disclosed foreign currency-adjusted
variances.
Table 2: Condensed Consolidated Statements of Income
(unaudited)
Three Months Ended
Year Ended
Dec. 31,
Dec. 31,
%
Dec. 31,
Dec. 31,
%
In thousands, except per share
data
2021
2020
Change
2021
2020
Change
Operating revenues
$
549,842
$
443,661
23.9
%
$
2,043,544
$
1,695,390
20.5
%
Operating expenses:
Cost of revenues
95,903
75,935
26.3
%
358,684
291,704
23.0
%
Selling and marketing
68,708
56,662
21.3
%
243,185
216,496
12.3
%
Research and development
30,819
27,056
13.9
%
111,564
101,053
10.4
%
General and administrative
44,873
27,872
61.0
%
147,893
114,627
29.0
%
Amortization of intangible assets
21,023
14,770
42.3
%
80,592
56,941
41.5
%
Depreciation and amortization of
property,
equipment and leasehold improvements
7,929
7,281
8.9
%
28,901
29,805
(3.0
%)
Total operating expenses(1)
269,255
209,576
28.5
%
970,819
810,626
19.8
%
Operating income
280,587
234,085
19.9
%
1,072,725
884,764
21.2
%
Interest income
(368
)
(301
)
22.3
%
(1,497
)
(5,030
)
(70.2
%)
Interest expense
40,336
37,330
8.1
%
159,614
156,324
2.1
%
Other expense (income)
(5,144
)
1,890
nm
56,472
47,245
19.5
%
Other expenses (income), net
34,824
38,919
(10.5
%)
214,589
198,539
8.1
%
Income before provision for income
taxes
245,763
195,166
25.9
%
858,136
686,225
25.1
%
Provision for income taxes
51,898
38,950
33.2
%
132,153
84,403
56.6
%
Net income
193,865
156,216
24.1
%
725,983
601,822
20.6
%
Earnings per basic common share
$
2.35
$
1.89
24.3
%
$
8.80
$
7.19
22.4
%
Earnings per diluted common share
$
2.32
$
1.87
24.1
%
$
8.70
$
7.12
22.2
%
Weighted average shares outstanding
used
in computing earnings per share:
Basic
82,473
82,737
(0.3
%)
82,508
83,716
(1.4
%)
Diluted
83,578
83,707
(0.2
%)
83,479
84,517
(1.2
%)
nm: not meaningful
(1) Includes stock-based compensation expense of $12.2 million
and $12.3 million for the three months ended Dec. 31, 2021 and Dec.
31, 2020, respectively. Includes stock-based compensation expense
of $58.5 million and $55.6 million for the year ended Dec. 31, 2021
and Dec. 31, 2020, respectively.
Table 3: Selected Balance Sheet Items (unaudited)
As of
Dec. 31,
Dec. 31,
In thousands
2021
2020
Cash and cash equivalents
$1,421,449
$1,300,521
Accounts receivable, net of allowances
$664,511
$558,569
Deferred revenue
$824,912
$675,870
Long-term debt(1)
$4,161,422
$3,366,777
(1) Consists of gross long-term debt, net of deferred financing
fees. Gross long-term debt was $4,200.0 million at Dec. 31, 2021
and $3,400.0 million at Dec. 31, 2020.
Table 4: Selected Cash Flow Items (unaudited)
Three Months Ended
Year Ended
Dec. 31,
Dec. 31,
%
Dec. 31,
Dec. 31,
%
In thousands
2021
2020
Change
2021
2020
Change
Net cash provided by operating
activities
$
279,664
$
235,928
18.5
%
$
936,069
$
811,109
15.4
%
Net cash used in investing activities
(49,834
)
(16,892
)
(195.0
%)
(1,035,713
)
(241,791
)
nm
Net cash (used in) provided by financing
activities
(91,744
)
(229,554
)
60.0
%
229,505
(779,038
)
129.5
%
Effect of exchange rate changes
(1,301
)
8,181
(115.9
%)
(8,933
)
3,674
nm
Net (decrease) increase in cash and cash equivalents
$
136,785
$
(2,337
)
nm
$
120,928
$
(206,046
)
158.7
%
nm: not meaningful
Table 5: Operating Results by Segment and Revenue Type
(unaudited)
Index
Three Months Ended
Year Ended
Dec. 31,
Dec. 31,
%
Dec. 31,
Dec. 31,
%
In thousands
2021
2020
Change
2021
2020
Change
Operating revenues:
Recurring subscriptions
$170,141
$148,762
14.4%
$650,629
$580,393
12.1%
Asset-based fees
149,398
111,129
34.4%
553,991
399,771
38.6%
Non-recurring
12,268
8,749
40.2%
47,144
36,331
29.8%
Total operating revenues
331,807
268,640
23.5%
1,251,764
1,016,495
23.1%
Adjusted EBITDA expenses
79,429
63,710
24.7%
300,452
250,002
20.2%
Adjusted EBITDA
$252,378
$204,930
23.2%
$951,312
$766,493
24.1%
Adjusted EBITDA margin %
76.1%
76.3%
76.0%
75.4%
Analytics
Three Months Ended
Year Ended
Dec. 31,
Dec. 31,
%
Dec. 31,
Dec. 31,
%
In thousands
2021
2020
Change
2021
2020
Change
Operating revenues:
Recurring subscriptions
$133,818
$129,796
3.1%
$533,178
$506,301
5.3%
Non-recurring
4,264
2,604
63.7%
11,121
7,507
48.1%
Total operating revenues
138,082
132,400
4.3%
544,299
513,808
5.9%
Adjusted EBITDA expenses
85,119
87,016
(2.2%)
345,500
340,884
1.4%
Adjusted EBITDA
$52,963
$45,384
16.7%
$198,799
$172,924
15.0%
Adjusted EBITDA margin %
38.4%
34.3%
36.5%
33.7%
ESG and Climate
Three Months Ended
Year Ended
Dec. 31,
Dec. 31,
%
Dec. 31,
Dec. 31,
%
In thousands
2021
2020
Change
2021
2020
Change
Operating revenues:
Recurring subscriptions
$47,310
$30,984
52.7%
$162,609
$109,945
47.9%
Non-recurring
1,133
294
285.4%
3,583
1,419
152.5%
Total operating revenues
48,443
31,278
54.9%
166,192
111,364
49.2%
Adjusted EBITDA expenses
39,280
25,210
55.8%
136,444
88,513
54.2%
Adjusted EBITDA
$9,163
$6,068
51.0%
$29,748
$22,851
30.2%
Adjusted EBITDA margin %
18.9%
19.4%
17.9%
20.5%
All Other - Private Assets
Three Months Ended
Year Ended
Dec. 31,
Dec. 31,
%
Dec. 31,
Dec. 31,
%
In thousands
2021
2020
Change
2021
2020
Change
Operating revenues:
Recurring subscriptions
$31,269
$11,134
180.8%
$79,624
$51,536
54.5%
Non-recurring
241
209
15.3%
1,665
2,187
(23.9%)
Total operating revenues
31,510
11,343
177.8%
81,289
53,723
51.3%
Adjusted EBITDA expenses
27,354
11,589
136.0%
64,358
44,481
44.7%
Adjusted EBITDA
$4,156
$(246)
nm
$16,931
$9,242
83.2%
Adjusted EBITDA margin %
13.2%
(2.2%)
20.8%
17.2%
Consolidated
Three Months Ended
Year Ended
Dec. 31,
Dec. 31,
%
Dec. 31,
Dec. 31,
%
In thousands
2021
2020
Change
2021
2020
Change
Operating revenues:
Recurring subscriptions
$382,538
$320,676
19.3%
$1,426,040
$1,248,175
14.3%
Asset-based fees
149,398
111,129
34.4%
553,991
399,771
38.6%
Non-recurring
17,906
11,856
51.0%
63,513
47,444
33.9%
Operating revenues total
549,842
443,661
23.9%
2,043,544
1,695,390
20.5%
Adjusted EBITDA expenses
231,182
187,525
23.3%
846,754
723,880
17.0%
Adjusted EBITDA
$318,660
$256,136
24.4%
$1,196,790
$971,510
23.2%
Adjusted EBITDA margin %
58.0%
57.7%
58.6%
57.3%
Operating margin %
51.0%
52.8%
52.5%
52.2%
nm: not meaningful.
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
2021
2020
2021
2020
Index
New recurring subscription sales
$
33,649
$
27,338
$
99,686
$
85,411
Subscription cancellations
(6,207
)
(7,809
)
(24,399
)
(27,398
)
Net new recurring subscription sales
$
27,442
$
19,529
$
75,287
$
58,013
Non-recurring sales
$
14,690
$
10,729
$
54,030
$
41,463
Total gross sales
$
48,339
$
38,067
$
153,716
$
126,874
Total Index net sales
$
42,132
$
30,258
$
129,317
$
99,476
Index Retention Rate
96.0
%
94.4
%
96.1
%
95.1
%
Analytics
New recurring subscription sales
$
27,275
$
20,112
$
71,656
$
61,538
Subscription cancellations
(9,103
)
(12,995
)
(34,291
)
(40,003
)
Net new recurring subscription sales
$
18,172
$
7,117
$
37,365
$
21,535
Non-recurring sales
$
4,284
$
3,510
$
12,407
$
10,996
Total gross sales
$
31,559
$
23,622
$
84,063
$
72,534
Total Analytics net sales
$
22,456
$
10,627
$
49,772
$
32,531
Analytics Retention Rate
93.4
%
90.1
%
93.8
%
92.4
%
ESG and Climate
New recurring subscription sales
$
23,258
$
14,658
$
69,964
$
40,786
Subscription cancellations
(1,175
)
(1,120
)
(4,811
)
(5,593
)
Net new recurring subscription sales
$
22,083
$
13,538
$
65,153
$
35,193
Non-recurring sales
$
1,208
$
432
$
4,135
$
1,134
Total gross sales
$
24,466
$
15,090
$
74,099
$
41,920
Total ESG and Climate net sales
$
23,291
$
13,970
$
69,288
$
36,327
ESG and Climate Retention Rate
96.6
%
95.6
%
96.5
%
94.5
%
All Other - Private Assets
New recurring subscription sales
$
8,119
$
2,388
$
14,142
$
6,121
Subscription cancellations
(3,856
)
(1,093
)
(6,737
)
(2,787
)
Net new recurring subscription sales
$
4,263
$
1,295
$
7,405
$
3,334
Non-recurring sales
$
493
$
292
$
1,694
$
1,442
Total gross sales
$
8,612
$
2,680
$
15,836
$
7,563
Total All Other - Private Assets net
sales
$
4,756
$
1,587
$
9,099
$
4,776
All Other - Private Assets Retention
Rate(2)
88.1
%
91.4
%
90.5
%
94.5
%
Consolidated
New recurring subscription sales
$
92,301
$
64,496
$
255,448
$
193,856
Subscription cancellations
(20,341
)
(23,017
)
(70,238
)
(75,781
)
Net new recurring subscription sales
$
71,960
$
41,479
$
185,210
$
118,075
Non-recurring sales
$
20,675
$
14,963
$
72,266
$
55,035
Total gross sales
$
112,976
$
79,459
$
327,714
$
248,891
Total net sales
$
92,635
$
56,442
$
257,476
$
173,110
Total Retention Rate
94.4
%
92.6
%
94.7
%
93.9
%
(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 All Other – Private Assets excluding the
impact of RCA was 87.0% for the three months ended Dec. 31, 2021
and 92.4% for the year ended Dec. 31, 2021.
Table 7: AUM in ETFs Linked to MSCI Equity Indexes
(unaudited)(1)(2)
Three Months Ended
Year Ended
Dec. 31,
Sep. 30,
June 30,
Mar. 31,
Dec. 31,
Dec. 31,
Dec. 31,
In billions
2021
2021
2021
2021
2020
2021
2020
Beginning Period AUM in ETFs linked to
MSCI equity indexes
$
1,336.6
$
1,336.2
$
1,209.6
$
1,103.6
$
908.9
$
1,103.6
$
934.4
Market Appreciation/(Depreciation)
56.5
(30.7
)
73.7
43.2
135.7
142.7
93.6
Cash Inflows
58.5
31.1
52.9
62.8
59.0
205.3
75.6
Period-End AUM in ETFs linked to
MSCI equity indexes
$
1,451.6
$
1,336.6
$
1,336.2
$
1,209.6
$
1,103.6
$
1,451.6
$
1,103.6
Period Average AUM in ETFs linked to
MSCI equity indexes
$
1,414.8
$
1,361.9
$
1,292.4
$
1,169.2
$
999.2
$
1,309.6
$
886.7
Period-End Basis Point Fee(3)
2.54
2.57
2.58
2.61
2.67
2.54
2.67
(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 1.0% of the
AUM amounts presented.
(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
2021
2020
% Change
Index
Recurring subscriptions
$
694,591
$
618,391
12.3
%
Asset-based fees
589,320
464,108
27.0
%
Index Run Rate
1,283,911
1,082,499
18.6
%
Analytics Run Rate
585,223
555,145
5.4
%
ESG and Climate Run Rate
199,597
138,317
44.3
%
All Other - Private Assets Run
Rate
135,150
56,499
139.2
%
Total Run Rate
$
2,203,881
$
1,832,460
20.3
%
Total recurring subscriptions
$
1,614,561
$
1,368,352
18.0
%
Total asset-based fees
589,320
464,108
27.0
%
Total Run Rate
$
2,203,881
$
1,832,460
20.3
%
(1) See "Notes Regarding the Use of Operating Metrics" for
details regarding the definition of Run Rate.
Table 9: Reconciliation of Adjusted EBITDA to Net Income
(unaudited)
Three Months Ended
Year Ended
Dec. 31,
Dec. 31,
Dec. 31,
Dec. 31,
In thousands
2021
2020
2021
2020
Index adjusted EBITDA
$
252,378
$
204,930
$
951,312
$
766,493
Analytics adjusted EBITDA
52,963
45,384
198,799
172,924
ESG and Climate adjusted EBITDA
9,163
6,068
29,748
22,851
All Other - Private Assets adjusted
EBITDA
4,156
(246
)
16,931
9,242
Consolidated adjusted EBITDA
318,660
256,136
1,196,790
971,510
Amortization of intangible assets
21,023
14,770
80,592
56,941
Depreciation and amortization of
property,
equipment and leasehold improvements
7,929
7,281
28,901
29,805
Impairment related to sublease of leased
property
7,702
—
7,702
—
Acquisition-related integration and
transaction costs(1)
1,419
—
6,870
—
Operating income
280,587
234,085
1,072,725
884,764
Other expense (income), net
34,824
38,919
214,589
198,539
Provision for income taxes
51,898
38,950
132,153
84,403
Net income
$
193,865
$
156,216
$
725,983
$
601,822
(1) Incremental and non-recurring costs attributable to
acquisitions directly related to the execution of the transaction
and integration of the acquired business that have occurred no
later than 12 months after the close of the transaction.
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
2021
2020
2021
2020
Net income
$
193,865
$
156,216
$
725,983
$
601,822
Plus: Amortization of acquired intangible
assets and
equity method investment basis
difference
17,086
9,528
47,001
37,413
Plus: Debt extinguishment costs associated
with the
2024, 2025, 2026 and 2027 Senior Notes
Redemptions
—
—
59,104
44,930
Plus: Write-off of internally developed
capitalized software
—
—
16,013
—
Plus: Impairment related to sublease of
leased property(1)
8,702
—
8,702
—
Plus: Acquisition-related integration and
transaction costs(2)(3)
1,590
—
7,041
—
Less: Gain from changes in ownership
interest of equity method investee
(6,972
)
—
(6,972
)
—
Less: Tax Reform adjustments
—
—
—
(6,256
)
Less: Income tax effect
(4,497
)
(2,007
)
(26,462
)
(16,490
)
Adjusted net income
$
209,774
$
163,737
$
830,410
$
661,419
Diluted EPS
$
2.32
$
1.87
$
8.70
$
7.12
Plus: Amortization of acquired intangible
assets and
equity method investment basis
difference
0.20
0.11
0.56
0.44
Plus: Debt extinguishment costs associated
with the
2024, 2025, 2026 and 2027 Senior Notes
Redemptions
—
—
0.71
0.53
Plus: Write-off of internally developed
capitalized software
—
—
0.19
—
Plus: Impairment related to sublease of
leased property(1)
0.10
—
0.10
—
Plus: Acquisition-related integration and
transaction costs(2)(3)
0.02
—
0.08
—
Less: Gain from changes in ownership
interest of equity method investee
(0.08
)
—
(0.08
)
—
Less: Tax Reform adjustments
—
—
—
(0.07
)
Less: Income tax effect
(0.05
)
(0.02
)
(0.31
)
(0.19
)
Adjusted EPS
$
2.51
$
1.96
$
9.95
$
7.83
(1) Right-of-use impairment of $7.7 million related to sublease
of leased property is presented within "General and administrative"
expenses and the write-off of leasehold improvements of $1.0
million is presented within "Depreciation and amortization of
property, equipment and leasehold improvements" expenses.
(2) Acquisition-related integration and transaction costs of
$1.4 million are presented within "General and administrative"
expenses and $0.2 million are presented within "Depreciation and
amortization of property, equipment and leasehold improvements"
expenses.
(3) Incremental and non-recurring costs attributable to
acquisitions directly related to the execution of the transaction
and integration of the acquired business that have occurred no
later than 12 months after the close of the transaction.
Table 11: Reconciliation of Adjusted EBITDA Expenses to
Operating Expenses (unaudited)
Three Months Ended
Year Ended
Full-Year
Dec. 31,
Dec. 31,
Dec. 31,
Dec. 31,
2022
In thousands
2021
2020
2021
2020
Outlook(1)
Index adjusted EBITDA expenses
$
79,429
$
63,710
$
300,452
$
250,002
Analytics adjusted EBITDA expenses
85,119
87,016
345,500
340,884
ESG and Climate adjusted EBITDA
expenses
39,280
25,210
136,444
88,513
All Other - Private Assets adjusted EBITDA
expenses
27,354
11,589
64,358
44,481
Consolidated adjusted EBITDA
expenses
231,182
187,525
846,754
723,880
$975,000 - $1,005,000
Amortization of intangible assets
21,023
14,770
80,592
56,941
Depreciation and amortization of
property,
$100,000 - $110,000
equipment and leasehold improvements
7,929
7,281
28,901
29,805
Impairment related to sublease of leased
property
7,702
—
7,702
—
Acquisition-related integration and
transaction costs(2)
1,419
—
6,870
—
Total operating expenses
$
269,255
$
209,576
$
970,819
$
810,626
$1,075,000 -
$1,115,000
(1) We have not provided a full line-item reconciliation for
adjusted EBITDA expenses to total operating expenses for this
future period because we do not provide guidance on the individual
reconciling items between total operating expenses and adjusted
EBITDA expenses.
(2) Incremental and non-recurring costs attributable to
acquisitions directly related to the execution of the transaction
and integration of the acquired business that have occurred no
later than 12 months after the close of the transaction.
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,
2022
In thousands
2021
2020
2021
2020
Outlook(1)
Net cash provided by operating
activities
$
279,664
$
235,928
$
936,069
$
811,109
$1,120,000 -
$1,160,000
Capital expenditures
(6,390
)
(9,674
)
(13,509
)
(21,826
)
Capitalized software development costs
(10,207
)
(7,218
)
(39,285
)
(29,149
)
Capex
(16,597
)
(16,892
)
(52,794
)
(50,975
)
($70,000 - $60,000)
Free cash flow
$
263,067
$
219,036
$
883,275
$
760,134
$1,050,000 -
$1,100,000
(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 do not provide guidance on the individual
reconciling items between net cash from operating activities and
free cash flow.
Table 13: Reconciliation of Effective Tax Rate to Adjusted
Tax Rate (unaudited)
Three Months Ended
Year Ended
Dec. 31,
Dec. 31,
Dec. 31,
Dec. 31,
2021
2020
2021
2020
Effective tax rate
21.1%
20.0%
15.4%
12.3%
Tax Reform impact on effective tax
rate
—%
—%
—%
0.9%
Adjusted tax rate
21.1%
20.0%
15.4%
13.2%
Table 14: Fourth Quarter 2021 Reconciliation of Operating
Revenue Growth to Organic Operating Revenue Growth
(unaudited)
Comparison of the Three Months
Ended December 31, 2021 and 2020
Total
Recurring Subscription
Asset-Based Fees
Non-Recurring Revenues
Index
Change Percentage
Change Percentage
Change Percentage
Change Percentage
Operating revenue growth
23.5%
14.4%
34.4%
40.2%
Impact of acquisitions and
divestitures
—%
—%
—%
—%
Impact of foreign currency exchange rate
fluctuations
0.2%
0.2%
0.2%
—%
Organic operating revenue growth
23.7%
14.6%
34.6%
40.2%
Total
Recurring Subscription
Asset-Based Fees
Non-Recurring Revenues
Analytics
Change Percentage
Change Percentage
Change Percentage
Change Percentage
Operating revenue growth
4.3%
3.1%
—%
63.7%
Impact of acquisitions and
divestitures
—%
—%
—%
—%
Impact of foreign currency exchange rate
fluctuations
0.5%
0.5%
—%
0.9%
Organic operating revenue growth
4.8%
3.6%
—%
64.6%
Total
Recurring Subscription
Asset-Based Fees
Non-Recurring Revenues
ESG and Climate
Change Percentage
Change Percentage
Change Percentage
Change Percentage
Operating revenue growth
54.9%
52.7%
—%
285.4%
Impact of acquisitions and divestures
—%
—%
—%
—%
Impact of foreign currency exchange rate
fluctuations
(1.9%)
(2.0%)
—%
12.2%
Organic operating revenue growth
53.0%
50.7%
—%
297.6%
Total
Recurring Subscription
Asset-Based Fees
Non-Recurring Revenues
All Other - Private Assets
Change Percentage
Change Percentage
Change Percentage
Change Percentage
Operating revenue growth
177.8%
180.8%
—%
15.3%
Impact of acquisitions and
divestitures
(165.7%)
(168.7%)
—%
—%
Impact of foreign currency exchange rate
fluctuations
0.8%
0.7%
—%
2.4%
Organic operating revenue growth
12.9%
12.8%
—%
17.7%
Total
Recurring Subscription
Asset-Based Fees
Non-Recurring Revenues
Consolidated
Change Percentage
Change Percentage
Change Percentage
Change Percentage
Operating revenue growth
23.9%
19.3%
34.4%
51.0%
Impact of acquisitions and
divestitures
(4.2%)
(5.9%)
—%
—%
Impact of foreign currency exchange rate
fluctuations
0.1%
0.2%
0.2%
0.6%
Organic operating revenue growth
19.8%
13.6%
34.6%
51.6%
Table 15: Full-Year 2021 Reconciliation of Operating Revenue
Growth to Organic Operating Revenue Growth (unaudited)
Comparison of the Years Ended
December 31, 2021 and 2020
Total
Recurring Subscription
Asset-Based Fees
Non-Recurring Revenues
Index
Change Percentage
Change Percentage
Change Percentage
Change Percentage
Operating revenue growth
23.1%
12.1%
38.6%
29.8%
Impact of acquisitions and
divestitures
—%
—%
—%
—%
Impact of foreign currency exchange rate
fluctuations
0.1%
0.1%
(0.1%)
—%
Organic operating revenue growth
23.2%
12.2%
38.5%
29.8%
Total
Recurring Subscription
Asset-Based Fees
Non-Recurring Revenues
Analytics
Change Percentage
Change Percentage
Change Percentage
Change Percentage
Operating revenue growth
5.9%
5.3%
—%
48.1%
Impact of acquisitions and
divestitures
—%
—%
—%
—%
Impact of foreign currency exchange rate
fluctuations
0.2%
0.2%
—%
(0.1%)
Organic operating revenue growth
6.1%
5.5%
—%
48.0%
Total
Recurring Subscription
Asset-Based Fees
Non-Recurring Revenues
ESG and Climate
Change Percentage
Change Percentage
Change Percentage
Change Percentage
Operating revenue growth
49.2%
47.9%
—%
152.5%
Impact of acquisitions and divestures
—%
—%
—%
—%
Impact of foreign currency exchange rate
fluctuations
(5.8%)
(5.9%)
—%
(1.9%)
Organic operating revenue growth
43.4%
42.0%
—%
150.6%
Total
Recurring Subscription
Asset-Based Fees
Non-Recurring Revenues
All Other - Private Assets
Change Percentage
Change Percentage
Change Percentage
Change Percentage
Operating revenue growth
51.3%
54.5%
—%
(23.9%)
Impact of acquisitions and
divestitures
(41.3%)
(43.1%)
—%
—%
Impact of foreign currency exchange rate
fluctuations
(6.0%)
(6.0%)
—%
(3.6%)
Organic operating revenue growth
4.0%
5.4%
—%
(27.5%)
Total
Recurring Subscription
Asset-Based Fees
Non-Recurring Revenues
Consolidated
Change Percentage
Change Percentage
Change Percentage
Change Percentage
Operating revenue growth
20.5%
14.3%
38.6%
33.9%
Impact of acquisitions and
divestitures
(1.3%)
(1.8%)
—%
—%
Impact of foreign currency exchange rate
fluctuations
(0.5%)
(0.7%)
(0.1%)
(0.3%)
Organic operating revenue growth
18.7%
11.8%
38.5%
33.6%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220127005100/en/
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