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 June 30, 2022 (“second quarter 2022”)
and six months ended June 30, 2022 (“six months 2022”).
Financial and Operational Highlights for Second Quarter
2022
(Note: Unless otherwise noted, percentage and other changes are
relative to the three months ended June 30, 2021 (“second quarter
2021”) and Run Rate percentage changes are relative to June 30,
2021).
- Operating revenues of $551.8 million, up 10.8%; Organic
operating revenue growth of 8.4%
- Recurring subscription revenues up 16.9%; Asset-based fees
down 2.9%
- Operating margin of 54.4%; Adjusted EBITDA margin of
60.0%
- Diluted EPS of $2.59, up 30.2%; Adjusted EPS of $2.78, up
13.5%
- New recurring subscription sales growth of 21.3%; Organic
recurring subscription Run Rate growth of 14.1%; Retention Rate of
95.5%
- In six months 2022 and through trade date of July 25, 2022,
a total of $1.1 billion or 2,184,665 shares were repurchased at an
average repurchase price of $480.65
- Approximately $84.0 million in dividends were paid to
shareholders in second quarter 2022; Cash dividend of $1.25 per
share declared by MSCI Board of Directors for third quarter 2022,
an increase of 20.2%
Three Months Ended
Six Months Ended
In thousands,
June 30,
June 30,
June 30,
June 30,
except per share data
(unaudited)
2022
2021
% Change
2022
2021
% Change
Operating revenues
$
551,806
$
498,180
10.8
%
$
1,111,751
$
976,603
13.8
%
Operating income
$
300,381
$
257,533
16.6
%
$
589,359
$
511,908
15.1
%
Operating margin %
54.4
%
51.7
%
53.0
%
52.4
%
Net income
$
210,587
$
165,423
27.3
%
$
439,010
$
362,242
21.2
%
Diluted EPS
$
2.59
$
1.99
30.2
%
$
5.37
$
4.34
23.7
%
Adjusted EPS
$
2.78
$
2.45
13.5
%
$
5.76
$
4.91
17.3
%
Adjusted EBITDA
$
331,144
$
294,949
12.3
%
$
649,688
$
571,535
13.7
%
Adjusted EBITDA margin %
60.0
%
59.2
%
58.4
%
58.5
%
“Despite a challenging external environment, MSCI delivered
another strong quarter. Globally, we posted record levels of
second-quarter recurring subscription sales and recurring net new
sales. We generated particularly strong results in ESG &
Climate, Analytics, and Futures & Options. Meanwhile, our Index
business achieved its 34th consecutive quarter of double-digit
subscription run rate growth,” said Henry A. Fernandez, Chairman
and CEO of MSCI.
“Our sales pipeline remains strong, and we expect many of our
solutions to outperform in periods of uncertainty and volatility.
While our AUM-linked fees may remain challenged by depressed equity
markets, we continue to see strength across most client segments
and geographies. This underscores the durability of our all-weather
franchise,” added Mr. Fernandez.
Second Quarter Consolidated
Results
Operating Revenues:
Operating revenues were $551.8 million, up 10.8%. Organic operating
revenue growth was 8.4%. The $53.6 million increase was comprised
of $58.9 million in higher recurring subscription revenues offset
by a $3.9 million decrease in asset-based fees, and a $1.4 million
decrease in non-recurring revenues.
Run Rate and Retention Rate:
Total Run Rate at June 30, 2022 was $2,213.2 million, up 11.8%.
Recurring subscriptions Run Rate increased by $253.5 million, and
asset-based fees Run Rate decreased by $19.9 million. Organic
recurring subscriptions Run Rate growth was 14.1%. Retention Rate
in second quarter 2022 was 95.5%, compared to 94.4% in second
quarter 2021.
Expenses: Total operating
expenses were $251.4 million, up 4.5%. Adjusted EBITDA expenses
were $220.7 million, up 8.6%, primarily reflecting higher
compensation and benefits costs related to continued investments to
support growth, including increased headcount in technology,
research and client coverage. The increase also reflected higher
non-compensation costs including in the areas of information
technology costs, professional fees and market data costs. Total
operating expenses excluding the impact of foreign currency
exchange rate fluctuations (“ex-FX”) and adjusted EBITDA expenses
ex-FX increased 8.4% and 13.0%, respectively.
Headcount: As of June 30,
2022, headcount was 4,513 employees, with approximately 36% and
approximately 64% of employees located in developed market and
emerging market locations, respectively.
Other Expense (Income), Net:
Other expense (income), net was $40.3 million, down 34.8%. The
lower net expenses were primarily driven by the absence of debt
extinguishment costs in second quarter 2022 and favorable foreign
currency exchange rate gains, partially offset by higher interest
expense due to higher average debt balances versus the same period
last year.
Income Taxes: The effective
tax rate was 19.0% in second quarter 2022 compared to 15.5% in
second quarter 2021. The increase was primarily related to the
absence of the impact of significant discrete tax benefits in
second quarter 2021, in relation to pretax income, including the
tax impact of loss on debt extinguishment recognized in second
quarter 2021. In addition, the second quarter of 2021 reflected the
tax impact of the revaluation of deferred taxes as a result of the
enactment of a tax rate increase in the UK and the tax impact of
prior year refund claims.
Net Income: As a result of
the factors described above, net income was $210.6 million, up
27.3%.
Adjusted EBITDA: Adjusted
EBITDA was $331.1 million, up 12.3%. Adjusted EBITDA margin in
second quarter 2022 was 60.0%, compared to 59.2% in second quarter
2021.
Index Segment:
Table 1A: Results (unaudited)
Three Months Ended
Six Months Ended
June 30,
June 30,
June 30,
June 30,
In thousands
2022
2021
% Change
2022
2021
% Change
Operating revenues:
Recurring subscriptions
$179,711
$160,061
12.3%
$354,209
$315,178
12.4%
Asset-based fees
132,216
136,142
(2.9%)
277,269
262,848
5.5%
Non-recurring
9,022
9,760
(7.6%)
20,230
20,428
(1.0%)
Total operating revenues
320,949
305,963
4.9%
651,708
598,454
8.9%
Adjusted EBITDA expenses
75,779
72,495
4.5%
160,663
145,107
10.7%
Adjusted EBITDA
$245,170
$233,468
5.0%
$491,045
$453,347
8.3%
Adjusted EBITDA margin %
76.4%
76.3%
75.3%
75.8%
Index operating revenues were $320.9 million, up 4.9%. The $15.0
million increase was driven by $19.7 million in higher recurring
subscription revenues offset by $3.9 million in lower asset-based
fees and $0.7 million in lower non-recurring revenues.
Growth in recurring subscription revenues was primarily driven
by strong growth from both market-cap weighted and factor, ESG and
climate Index products.
The decrease in revenues attributable to asset-based fees
reflected a decline in revenues from ETFs linked to MSCI equity
indexes, driven by a decrease in average AUM and average basis
point fees. Declines in fees from non-ETF indexed funds linked to
MSCI indexes also contributed to the decrease in revenues driven by
adjustments to revenue related to lower period over period
client-reported AUM balances. The decrease in revenues attributable
to asset-based fees was partially offset by an increase in revenues
from exchange traded futures and options contracts linked to MSCI
indexes, driven by volume increases.
Index Run Rate as of June 30, 2022, was $1.3 billion, up 4.9%.
The $58.7 million increase was comprised of a $78.6 million
increase in recurring subscription Run Rate offset by a $19.9
million decrease in asset-based fees Run Rate. The increase in
recurring subscription Run Rate was primarily driven by strong
growth from market cap-weighted, factor, ESG and climate, and
custom and specialized Index products, and reflected growth across
all regions and client segments. The asset-based fees Run Rate
decline was driven by lower AUM in ETFs linked to MSCI equity
indexes and an average basis point fee decrease in ETFs, partially
offset by higher exchange traded futures and options volume and
higher AUM in non-ETF indexed funds linked to MSCI indexes.
Analytics Segment:
Table 1B: Results (unaudited)
Three Months Ended
Six Months Ended
June 30,
June 30,
June 30,
June 30,
In thousands
2022
2021
% Change
2022
2021
% Change
Operating revenues:
Recurring subscriptions
$139,497
$133,368
4.6%
$277,296
$265,040
4.6%
Non-recurring
2,187
2,534
(13.7%)
4,185
4,879
(14.2%)
Total operating revenues
141,684
135,902
4.3%
281,481
269,919
4.3%
Adjusted EBITDA expenses
78,723
86,088
(8.6%)
167,631
174,374
(3.9%)
Adjusted EBITDA
$62,961
$49,814
26.4%
$113,850
$95,545
19.2%
Adjusted EBITDA margin %
44.4%
36.7%
40.4%
35.4%
Analytics operating revenues were $141.7 million, up 4.3%. The
$5.8 million increase was primarily driven by growth from recurring
subscriptions related to both Multi-Asset Class and Equity
Analytics products.
Analytics Run Rate as of June 30, 2022, was $592.0 million, up
5.0%. The increase of $28.1 million was also driven by growth in
both Multi-Asset Class and Equity Analytics products. Analytics
organic Run Rate growth was 7.4%.
ESG and Climate Segment:
Table 1C: Results (unaudited)
Three Months Ended
Six Months Ended
June 30,
June 30,
June 30,
June 30,
In thousands
2022
2021
% Change
2022
2021
% Change
Operating revenues:
Recurring subscriptions
$54,037
$38,567
40.1%
$104,609
$72,707
43.9%
Non-recurring
1,091
741
47.2%
2,548
1,351
88.6%
Total operating revenues
55,128
39,308
40.2%
107,157
74,058
44.7%
Adjusted EBITDA expenses
40,796
33,588
21.5%
80,733
63,293
27.6%
Adjusted EBITDA
$14,332
$5,720
150.6%
$26,424
$10,765
145.5%
Adjusted EBITDA margin %
26.0%
14.6%
24.7%
14.5%
ESG and Climate operating revenues were $55.1 million, up 40.2%.
The $15.8 million increase was primarily driven by strong growth
from recurring subscriptions related to Ratings, Climate and
Screening products. Excluding foreign currency exchange rate
fluctuations, ESG and Climate operating revenue growth was
50.0%.
ESG and Climate Run Rate as of June 30, 2022, was $231.2
million, up 40.9%. The $67.1 million increase primarily reflects
strong growth from Ratings, Climate and Screening products with
contributions across all regions. ESG and Climate organic Run Rate
growth was 47.2%.
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
2022
2021
% Change
2022
2021
% Change
Operating revenues:
Recurring subscriptions
$33,804
$16,134
109.5%
$70,695
$32,937
114.6%
Non-recurring
241
873
(72.4%)
710
1,235
(42.5%)
Total operating revenues
34,045
17,007
100.2%
71,405
34,172
109.0%
Adjusted EBITDA expenses
25,364
11,060
129.3%
53,036
22,294
137.9%
Adjusted EBITDA
$8,681
$5,947
46.0%
$18,369
$11,878
54.6%
Adjusted EBITDA margin %
25.5%
35.0%
25.7%
34.8%
All Other – Private Assets operating revenues, which reflects
the Real Assets operating segment, were $34.0 million, up 100.2%,
and included $19.3 million from RCA. Excluding the impact of the
acquisition, operating revenues decreased 13.5%. All Other –
Private Assets organic operating revenues decreased by 5.5%,
primarily due to timing of service deliveries and changes in
contract structures.
All Other – Private Assets Run Rate, which reflects the Real
Assets operating segment, was $137.7 million as of June 30, 2022,
up 137.1%, and included $79.2 million associated with the RCA
business. Excluding the impact of the acquisition, Run Rate
increased 0.8%. All Other – Private Assets organic subscription Run
Rate growth was 8.7%, driven by growth in Climate Value-at-Risk and
Global Intel products.
Select Balance Sheet Items and Capital
Allocation
Cash Balances and Outstanding
Debt: Cash and cash equivalents was $842.3 million as of
June 30, 2022. On June 9, 2022, the Company drew down $350.0
million of term loan borrowings, maturing in February 2027. The
Company maintains its existing undrawn revolving credit facility.
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 June 30, 2022,
was $4.6 billion. The total debt to net income ratio (based on
trailing twelve months net income) was 5.6x. 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 $19.1 million, and cash provided by operating activities
decreased by 5.5% to $212.7 million primarily reflecting higher
income tax payments and cash expenses paid in the quarter,
partially offset by higher cash collections from customers. Free
cash flow for second quarter 2022 was down 9.5% to $193.6
million.
Share Count and Share
Repurchases: Weighted average diluted shares outstanding
were 81.3 million in second quarter 2022, down 2.4% year-over-year.
Total share repurchases during the quarter were $277.0 million or
685,522 shares at an average repurchase price of $404.06. Total
shares outstanding as of June 30, 2022, were 80.5 million. A total
of $539.1 million remains on the outstanding share repurchase
authorization as of trade date of July 25, 2022.
Dividends: Approximately
$84.0 million in dividends were paid to shareholders in second
quarter 2022. On July 25, 2022, the MSCI Board of Directors
declared a cash dividend of $1.25 per share for third quarter 2022,
payable on August 31, 2022, to shareholders of record as of the
close of trading on August 12, 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 as well as the economic and market impacts of
elevated inflation levels and Russia’s invasion of Ukraine.
Guidance Item
Current Guidance for Full-Year
2022
Prior Guidance for Full-Year
2022
Operating Expense
$1,045 to $1,085 million
$1,075 to $1,115 million
Adjusted EBITDA Expense
$940 to $970 million
$975 to $1,005 million
Interest Expense (including
amortization of financing fees)
~$172 million
~$162 million
Depreciation & Amortization
Expense
$105 to $115 million
$100 to $110 million
Effective Tax Rate
15.5% to 18.5%
15.5% to 18.5%
Capital Expenditures
$65 to $75 million
$60 to $70 million
Net Cash Provided by Operating
Activities
$1,080 to $1,120 million
$1,120 to $1,160 million
Free Cash Flow
$1,005 to $1,055 million
$1,050 to $1,100 million
Conference Call Information
MSCI's senior management will review the second quarter 2022
results on Tuesday, July 26, 2022 at 10:30 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 to join via
telephone, please register yourself at
https://ir.msci.com/events-and-presentations. Upon registration,
telephone participants will receive a confirmation email detailing
how to join the conference call, including a dial-in number and a
unique participant pin that can be used to access the call. 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, 2021 filed with the Securities and Exchange Commission
(“SEC”) on February 11, 2022 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 future
operating revenues over time. The annual Retention Rate represents
the retained subscription Run Rate (subscription Run Rate at the
beginning of the fiscal year less actual cancels during the year)
as a percentage of the subscription Run Rate at the beginning of
the fiscal year.
The Retention Rate for a non-annual period is calculated by
annualizing the cancellations for which we have received a notice
of termination or for which we believe there is an intention not to
renew or discontinue the subscription during the non-annual period,
and we believe that such notice or intention evidences the client’s
final decision to terminate or not renew the applicable agreement,
even though such notice is not effective until a later date. This
annualized cancellation figure is then divided by the subscription
Run Rate at the beginning of the fiscal year to calculate a
cancellation rate. This cancellation rate is then subtracted from
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
Assets operating segments, product or service switches that are
treated as replacement products or services and receive netting
treatment occur only in certain limited instances. In addition, we
treat any reduction in fees resulting from a down-sell of the same
product or service as a cancellation to the extent of the
reduction. We do not calculate Retention Rate for that portion of
our Run Rate attributable to assets in index-linked investment
products or futures and options contracts, in each case, linked to
our indexes.
Run Rate estimates at a particular point in time the annualized
value of the recurring revenues under our client license agreements
(“Client Contracts”) for the next 12 months, assuming all Client
Contracts that come up for renewal, or reach the end of the
committed subscription period, are renewed and assuming
then-current currency exchange rates, subject to the adjustments
and exclusions described below. For any Client Contract where fees
are linked to an investment product’s assets or trading
volume/fees, the Run Rate calculation reflects, for ETFs, the
market value on the last trading day of the period, for futures and
options, the most recent quarterly volumes and/or reported exchange
fees, and for other non-ETF products, the most recent
client-reported assets. Run Rate does not include fees associated
with “one-time” and other non-recurring transactions. In addition,
we add to Run Rate the annualized fee value of recurring new sales,
whether to existing or new clients, when we execute Client
Contracts, even though the license start date, and associated
revenue recognition, may not be effective until a later date. We
remove from Run Rate the annualized fee value associated with
products or services under any Client Contract with respect to
which we have received a notice of termination, non-renewal or an
indication the client does not intend to continue their
subscription during the period and have determined that such notice
evidences the client’s final decision to terminate or not renew the
applicable products or services, even though such notice is not
effective until a later date.
“Organic 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 13 below that reconcile each non-GAAP financial measure
with the most comparable GAAP measure. The non-GAAP financial
measures presented in this earnings release should not be
considered as alternative measures for the most directly comparable
GAAP financial measures. The non-GAAP financial measures presented
in this earnings release are used by management to monitor the
financial performance of the business, inform business
decision-making and forecast future results.
“Adjusted EBITDA” is defined as net income before (1) provision
for income taxes, (2) other expense (income), net, (3) depreciation
and amortization of property, equipment and leasehold improvements,
(4) amortization of intangible assets and, at times, (5) certain
other transactions or adjustments, including, when applicable,
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, when
applicable, 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 and, at times, certain other
transactions or adjustments, including, when applicable, 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 and the impact related to gain from
changes in ownership interest of equity method investee.
“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 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, 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 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
Six Months Ended
June 30,
June 30,
%
June 30,
June 30,
%
In thousands, except per share
data
2022
2021
Change
2022
2021
Change
Operating revenues
$
551,806
$
498,180
10.8
%
$
1,111,751
$
976,603
13.8
%
Operating expenses:
Cost of revenues (exclusive of
depreciation and amortization)
100,768
87,327
15.4
%
203,539
173,107
17.6
%
Selling and marketing
61,073
58,191
5.0
%
127,126
114,658
10.9
%
Research and development
23,916
27,531
(13.1
%)
52,238
52,393
(0.3
%)
General and administrative
36,724
30,182
21.7
%
82,291
64,910
26.8
%
Amortization of intangible assets
22,179
30,396
(27.0
%)
43,899
45,464
(3.4
%)
Depreciation and amortization of
property,
equipment and leasehold improvements
6,765
7,020
(3.6
%)
13,299
14,163
(6.1
%)
Total operating expenses(1)
251,425
240,647
4.5
%
522,392
464,695
12.4
%
Operating income
300,381
257,533
16.6
%
589,359
511,908
15.1
%
Interest income
(924
)
(347
)
166.3
%
(1,222
)
(733
)
66.7
%
Interest expense
41,085
39,557
3.9
%
81,799
77,141
6.0
%
Other expense (income)
188
22,628
(99.2
%)
(193
)
23,777
(100.8
%)
Other expense (income), net
40,349
61,838
(34.8
%)
80,384
100,185
(19.8
%)
Income before provision for income
taxes
260,032
195,695
32.9
%
508,975
411,723
23.6
%
Provision for income taxes
49,445
30,272
63.3
%
69,965
49,481
41.4
%
Net income
$
210,587
$
165,423
27.3
%
$
439,010
$
362,242
21.2
%
Earnings per basic common share
$
2.60
$
2.01
29.4
%
$
5.40
$
4.39
23.0
%
Earnings per diluted common share
$
2.59
$
1.99
30.2
%
$
5.37
$
4.34
23.7
%
Weighted average shares outstanding
used
in computing earnings per share:
Basic
80,923
82,454
(1.9
%)
81,255
82,546
(1.6
%)
Diluted
81,295
83,295
(2.4
%)
81,789
83,393
(1.9
%)
(1) Includes stock-based compensation
expense of $11.2 million and $13.2 million for the three months
ended Jun. 30, 2022 and Jun. 30, 2021, respectively. Includes
stock-based compensation expense of $33.4 million and $32.5 million
for the six months ended Jun. 30, 2022 and Jun. 30, 2021,
respectively.
Table 3: Selected Balance Sheet Items (unaudited)
As of
June 30,
Dec. 31,
In thousands
2022
2021
Cash and cash equivalents
$842,300
$1,421,449
Accounts receivable, net of allowances
$586,815
$664,511
Current deferred revenue
$808,020
$824,912
Current portion of long-term debt (1)
$6,532
$—
Long-term debt(2)
$4,505,338
$4,161,422
(1) Consists of gross current portion of
long-term debt, net of deferred financing fees. Gross current
portion of long-term debt was $6.6 million at Jun. 30, 2022. (2)
Consists of gross long-term debt, net of deferred financing fees.
Gross long-term debt was $4,543.4 million at Jun. 30, 2022 and
$4,200.0 million at Dec. 31, 2021.
Table 4: Selected Cash Flow Items (unaudited)
Three Months Ended
Six Months Ended
June 30,
June 30,
June 30,
June 30,
In thousands
2022
2021
% Change
2022
2021
% Change
Net cash provided by operating
activities
$
212,689
$
225,057
(5.5
%)
$
456,873
$
440,514
3.7
%
Net cash used in investing activities
(19,103
)
(11,961
)
(59.7
%)
(34,413
)
(22,321
)
(54.2
%)
Net cash (used in) provided by financing
activities
(16,819
)
11,316
(248.6
%)
(982,936
)
256,858
n/m
Effect of exchange rate changes
(13,782
)
443
n/m
(18,673
)
(3,570
)
n/m
Net (decrease) increase in cash and
cash equivalents
$
162,985
$
224,855
(27.5
%)
$
(579,149
)
$
671,481
(186.2
%)
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
2022
2021
% Change
2022
2021
% Change
Operating revenues:
Recurring subscriptions
$179,711
$160,061
12.3%
$354,209
$315,178
12.4%
Asset-based fees
132,216
136,142
(2.9%)
277,269
262,848
5.5%
Non-recurring
9,022
9,760
(7.6%)
20,230
20,428
(1.0%)
Total operating revenues
320,949
305,963
4.9%
651,708
598,454
8.9%
Adjusted EBITDA expenses
75,779
72,495
4.5%
160,663
145,107
10.7%
Adjusted EBITDA
$245,170
$233,468
5.0%
$491,045
$453,347
8.3%
Adjusted EBITDA margin %
76.4%
76.3%
75.3%
75.8%
Analytics
Three Months Ended
Six Months Ended
June 30,
June 30,
June 30,
June 30,
In thousands
2022
2021
% Change
2022
2021
% Change
Operating revenues:
Recurring subscriptions
$139,497
$133,368
4.6%
$277,296
$265,040
4.6%
Non-recurring
2,187
2,534
(13.7%)
4,185
4,879
(14.2%)
Total operating revenues
141,684
135,902
4.3%
281,481
269,919
4.3%
Adjusted EBITDA expenses
78,723
86,088
(8.6%)
167,631
174,374
(3.9%)
Adjusted EBITDA
$62,961
$49,814
26.4%
$113,850
$95,545
19.2%
Adjusted EBITDA margin %
44.4%
36.7%
40.4%
35.4%
ESG and Climate
Three Months Ended
Six Months Ended
June 30,
June 30,
June 30,
June 30,
In thousands
2022
2021
% Change
2022
2021
% Change
Operating revenues:
Recurring subscriptions
$54,037
$38,567
40.1%
$104,609
$72,707
43.9%
Non-recurring
1,091
741
47.2%
2,548
1,351
88.6%
Total operating revenues
55,128
39,308
40.2%
107,157
74,058
44.7%
Adjusted EBITDA expenses
40,796
33,588
21.5%
80,733
63,293
27.6%
Adjusted EBITDA
$14,332
$5,720
150.6%
$26,424
$10,765
145.5%
Adjusted EBITDA margin %
26.0%
14.6%
24.7%
14.5%
All Other - Private Assets
Three Months Ended
Six Months Ended
June 30,
June 30,
June 30,
June 30,
In thousands
2022
2021
% Change
2022
2021
% Change
Operating revenues:
Recurring subscriptions
$33,804
$16,134
109.5%
$70,695
$32,937
114.6%
Non-recurring
241
873
(72.4%)
710
1,235
(42.5%)
Total operating revenues
34,045
17,007
100.2%
71,405
34,172
109.0%
Adjusted EBITDA expenses
25,364
11,060
129.3%
53,036
22,294
137.9%
Adjusted EBITDA
$8,681
$5,947
46.0%
$18,369
$11,878
54.6%
Adjusted EBITDA margin %
25.5%
35.0%
25.7%
34.8%
Consolidated
Three Months Ended
Six Months Ended
June 30,
June 30,
June 30,
June 30,
In thousands
2022
2021
% Change
2022
2021
% Change
Operating revenues:
Recurring subscriptions
$407,049
$348,130
16.9%
$806,809
$685,862
17.6%
Asset-based fees
132,216
136,142
(2.9%)
277,269
262,848
5.5%
Non-recurring
12,541
13,908
(9.8%)
27,673
27,893
(0.8%)
Operating revenues total
551,806
498,180
10.8%
1,111,751
976,603
13.8%
Adjusted EBITDA expenses
220,662
203,231
8.6%
462,063
405,068
14.1%
Adjusted EBITDA
$331,144
$294,949
12.3%
$649,688
$571,535
13.7%
Adjusted EBITDA margin %
60.0%
59.2%
58.4%
58.5%
Operating margin %
54.4%
51.7%
53.0%
52.4%
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
2022
2021
2022
2021
Index
New recurring subscription sales
$
27,946
$
25,635
$
50,363
$
46,491
Subscription cancellations
(7,161
)
(6,791
)
$
(13,081
)
(11,989
)
Net new recurring subscription sales
$
20,785
$
18,844
$
37,282
$
34,502
Non-recurring sales
$
14,267
$
10,769
$
27,982
$
21,974
Total gross sales
$
42,213
$
36,404
$
78,345
$
68,465
Total Index net sales
$
35,052
$
29,613
$
65,264
$
56,476
Index Retention Rate
95.9
%
95.6
%
96.2
%
96.1
%
Analytics
New recurring subscription sales
$
18,754
$
16,282
$
32,823
$
28,492
Subscription cancellations
(8,366
)
(10,096
)
$
(16,494
)
(15,975
)
Net new recurring subscription sales
$
10,388
$
6,186
$
16,329
$
12,517
Non-recurring sales
$
2,418
$
2,773
$
5,907
$
5,746
Total gross sales
$
21,172
$
19,055
$
38,730
$
34,238
Total Analytics net sales
$
12,806
$
8,959
$
22,236
$
18,263
Analytics Retention Rate
94.3
%
92.7
%
94.4
%
94.2
%
ESG and Climate
New recurring subscription sales
$
22,205
$
17,756
$
41,347
$
29,396
Subscription cancellations
(1,369
)
(1,246
)
$
(2,012
)
(2,298
)
Net new recurring subscription sales
$
20,836
$
16,510
$
39,335
$
27,098
Non-recurring sales
$
870
$
1,140
$
2,178
$
1,837
Total gross sales
$
23,075
$
18,896
$
43,525
$
31,233
Total ESG and Climate net sales
$
21,706
$
17,650
$
41,513
$
28,935
ESG and Climate Retention Rate
97.3
%
96.4
%
98.0
%
96.7
%
All Other - Private Assets
New recurring subscription sales
$
5,713
$
1,860
$
11,272
$
3,544
Subscription cancellations
(1,358
)
(887
)
$
(3,336
)
(1,585
)
Net new recurring subscription sales
$
4,355
$
973
$
7,936
$
1,959
Non-recurring sales
$
455
$
185
$
607
$
1,071
Total gross sales
$
6,168
$
2,045
$
11,879
$
4,615
Total All Other - Private Assets net
sales
$
4,810
$
1,158
$
8,543
$
3,030
All Other - Private Assets Retention
Rate(2)
96.0
%
93.7
%
95.1
%
94.4
%
Consolidated
New recurring subscription sales
$
74,618
$
61,533
$
135,805
$
107,923
Subscription cancellations
(18,254
)
(19,020
)
(34,923
)
(31,847
)
Net new recurring subscription sales
$
56,364
$
42,513
$
100,882
$
76,076
Non-recurring sales
$
18,010
$
14,867
$
36,674
$
30,628
Total gross sales
$
92,628
$
76,400
$
172,479
$
138,551
Total net sales
$
74,374
$
57,380
$
137,556
$
106,704
Total Retention Rate
95.5
%
94.4
%
95.7
%
95.3
%
(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 97.1% and 95.8% for the
three and six months ended Jun. 30, 2022, respectively.
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
2021
2021
2021
2022
2022
2021
2022
Beginning Period AUM in ETFs linked to
MSCI equity indexes
$
1,209.6
$
1,336.2
$
1,336.6
$
1,451.6
$
1,389.3
$
1,103.6
$
1,451.6
Market Appreciation/(Depreciation)
73.7
(30.7
)
56.5
(89.7
)
(207.3
)
116.9
(297.0
)
Cash Inflows
52.9
31.1
58.5
27.4
7.5
115.7
34.9
Period-End AUM in ETFs linked to
MSCI equity indexes
$
1,336.2
$
1,336.6
$
1,451.6
$
1,389.3
$
1,189.5
$
1,336.2
$
1,189.5
Period Average AUM in ETFs linked to
MSCI equity indexes
$
1,292.4
$
1,361.9
$
1,414.8
$
1,392.5
$
1,285.4
$
1,230.8
$
1,338.9
Period-End Basis Point Fee(3)
2.58
2.57
2.54
2.51
2.52
2.58
2.52
(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
June 30,
June 30,
In thousands
2022
2021
% Change
Index
Recurring subscriptions
$
732,081
$
653,448
12.0
%
Asset-based fees
520,092
539,984
(3.7
%)
Index Run Rate
1,252,173
1,193,432
4.9
%
Analytics Run Rate
592,043
563,938
5.0
%
ESG and Climate Run Rate
231,222
164,092
40.9
%
All Other - Private Assets Run
Rate
137,713
58,088
137.1
%
Total Run Rate
$
2,213,151
$
1,979,550
11.8
%
Total recurring subscriptions
$
1,693,059
$
1,439,566
17.6
%
Total asset-based fees
520,092
539,984
(3.7
%)
Total Run Rate
$
2,213,151
$
1,979,550
11.8
%
(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
Six Months Ended
June 30,
June 30,
June 30,
June 30,
In thousands
2022
2021
2022
2021
Index adjusted EBITDA
$
245,170
$
233,468
$
491,045
$
453,347
Analytics adjusted EBITDA
62,961
49,814
113,850
95,545
ESG and Climate adjusted EBITDA
14,332
5,720
26,424
10,765
All Other - Private Assets adjusted
EBITDA
8,681
5,947
18,369
11,878
Consolidated adjusted EBITDA
331,144
294,949
649,688
571,535
Amortization of intangible assets
22,179
30,396
43,899
45,464
Depreciation and amortization of
property,
equipment and leasehold improvements
6,765
7,020
13,299
14,163
Acquisition-related integration and
transaction costs(1)
1,819
—
3,131
—
Operating income
300,381
257,533
589,359
511,908
Other expense (income), net
40,349
61,838
80,384
100,185
Provision for income taxes
49,445
30,272
69,965
49,481
Net income
$
210,587
$
165,423
$
439,010
$
362,242
(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
Six Months Ended
June 30,
June 30,
June 30,
June 30,
In thousands, except per share
data
2022
2021
2022
2021
Net income
$
210,587
$
165,423
$
439,010
$
362,242
Plus: Amortization of acquired intangible
assets and
equity method investment basis
difference
16,854
9,565
33,753
19,123
Plus: Acquisition-related integration and
transaction costs(1)(2)
1,907
—
3,292
—
Plus: Debt extinguishment costs associated
with the
2025 and 2026 Senior Notes Redemptions
—
21,792
—
21,792
Plus: Write-off of internally developed
capitalized
software
—
16,013
—
16,013
Less: Income tax effect
(3,586
)
(8,973
)
(5,093
)
(9,823
)
Adjusted net income
$
225,762
$
203,820
$
470,962
$
409,347
Diluted EPS
$
2.59
$
1.99
$
5.37
$
4.34
Plus: Amortization of acquired intangible
assets and
equity method investment basis
difference
0.21
0.11
0.41
0.23
Plus: Acquisition-related integration and
transaction costs(1)(2)
0.02
—
0.04
—
Plus: Debt extinguishment costs associated
with the
2025 and 2026 Senior Notes Redemptions
—
0.26
—
0.26
Plus: Write-off of internally developed
capitalized
software
—
0.19
—
0.19
Less: Income tax effect
(0.04
)
(0.10
)
(0.06
)
(0.11
)
Adjusted EPS
$
2.78
$
2.45
$
5.76
$
4.91
(1) Acquisition-related integration and
transaction costs of $1.8 million and $3.1 million are presented
within "General and administrative" expenses and $0.1 million and
$0.2 million are presented within "Depreciation and amortization of
property, equipment and leasehold improvements" expenses for the
three and six months ended Jun. 30, 2022, respectively.
(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 11: Reconciliation of Adjusted EBITDA Expenses to
Operating Expenses (unaudited)
Three Months Ended
Six Months Ended
Full-Year
June 30,
June 30,
June 30,
June 30,
2022
In thousands
2022
2021
2022
2021
Outlook(1)
Index adjusted EBITDA expenses
$
75,779
$
72,495
$
160,663
$
145,107
Analytics adjusted EBITDA expenses
78,723
86,088
167,631
174,374
ESG and Climate adjusted EBITDA
expenses
40,796
33,588
80,733
63,293
All Other - Private Assets adjusted EBITDA
expenses
25,364
11,060
53,036
22,294
Consolidated adjusted EBITDA
expenses
220,662
203,231
462,063
405,068
$940,000 - $970,000
Amortization of intangible assets
22,179
30,396
43,899
45,464
Depreciation and amortization of
property,
$105,000 - $115,000
equipment and leasehold improvements
6,765
7,020
13,299
14,163
Acquisition-related integration and
transaction costs(2)
1,819
—
3,131
—
Total operating expenses
$
251,425
$
240,647
$
522,392
$
464,695
$1,045,000 -
$1,085,000
(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
Six Months Ended
Full-Year
June 30,
June 30,
June 30,
June 30,
2022
In thousands
2022
2021
2022
2021
Outlook(1)
Net cash provided by operating
activities
$
212,689
$
225,057
$
456,873
$
440,514
$1,080,000 -
$1,120,000
Capital expenditures
(3,483
)
(1,809
)
(4,737
)
(2,473
)
Capitalized software development costs
(15,615
)
(9,241
)
(29,699
)
(18,937
)
Capex
(19,098
)
(11,050
)
(34,436
)
(21,410
)
($75,000 - $65,000)
Free cash flow
$
193,591
$
214,007
$
422,437
$
419,104
$1,005,000 -
$1,055,000
(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: Second Quarter 2022 Reconciliation of Operating
Revenue Growth to Organic Operating Revenue Growth
(unaudited)
Comparison of the Three Months
Ended June 30, 2022 and 2021
Total
Recurring Subscription
Asset-Based Fees
Non-Recurring Revenues
Index
Change Percentage
Change Percentage
Change Percentage
Change Percentage
Operating revenue growth
4.9%
12.3%
(2.9%)
(7.6%)
Impact of acquisitions and
divestitures
—%
—%
—%
—%
Impact of foreign currency exchange rate
fluctuations
0.4%
0.5%
0.2%
—%
Organic operating revenue growth
5.3%
12.8%
(2.7%)
(7.6%)
Total
Recurring Subscription
Asset-Based Fees
Non-Recurring Revenues
Analytics
Change Percentage
Change Percentage
Change Percentage
Change Percentage
Operating revenue growth
4.3%
4.6%
—%
(13.7%)
Impact of acquisitions and
divestitures
—%
—%
—%
—%
Impact of foreign currency exchange rate
fluctuations
0.9%
0.9%
—%
4.4%
Organic operating revenue growth
5.2%
5.5%
—%
(9.3%)
Total
Recurring Subscription
Asset-Based Fees
Non-Recurring Revenues
ESG and Climate
Change Percentage
Change Percentage
Change Percentage
Change Percentage
Operating revenue growth
40.2%
40.1%
—%
47.2%
Impact of acquisitions and divestures
—%
—%
—%
—%
Impact of foreign currency exchange rate
fluctuations
9.8%
9.8%
—%
7.9%
Organic operating revenue growth
50.0%
49.9%
—%
55.1%
Total
Recurring Subscription
Asset-Based Fees
Non-Recurring Revenues
All Other - Private Assets
Change Percentage
Change Percentage
Change Percentage
Change Percentage
Operating revenue growth
100.2%
109.5%
—%
(72.4%)
Impact of acquisitions and divestures
(117.5%)
(123.8%)
—%
—%
Impact of foreign currency exchange rate
fluctuations
11.8%
12.3%
—%
1.4%
Organic operating revenue growth
(5.5%)
(2.0%)
—%
(71.0%)
Total
Recurring Subscription
Asset-Based Fees
Non-Recurring Revenues
Consolidated
Change Percentage
Change Percentage
Change Percentage
Change Percentage
Operating revenue growth
10.8%
16.9%
(2.9%)
(9.8%)
Impact of acquisitions and
divestitures
(4.0%)
(5.7%)
—%
—%
Impact of foreign currency exchange rate
fluctuations
1.6%
2.2%
0.2%
1.3%
Organic operating revenue growth
8.4%
13.4%
(2.7%)
(8.5%)
Table 14: Six Months 2022 Reconciliation of Operating Revenue
Growth to Organic Operating Revenue Growth (unaudited)
Comparison of the Six Months
Ended June 30, 2022 and 2021
Total
Recurring Subscription
Asset-Based Fees
Non-Recurring Revenues
Index
Change Percentage
Change Percentage
Change Percentage
Change Percentage
Operating revenue growth
8.9%
12.4%
5.5%
(1.0%)
Impact of acquisitions and
divestitures
—%
—%
—%
—%
Impact of foreign currency exchange rate
fluctuations
0.3%
0.4%
0.2%
0.1%
Organic operating revenue growth
9.2%
12.8%
5.7%
(0.9%)
Total
Recurring Subscription
Asset-Based Fees
Non-Recurring Revenues
Analytics
Change Percentage
Change Percentage
Change Percentage
Change Percentage
Operating revenue growth
4.3%
4.6%
—%
(14.2%)
Impact of acquisitions and
divestitures
—%
—%
—%
—%
Impact of foreign currency exchange rate
fluctuations
0.7%
0.7%
—%
2.6%
Organic operating revenue growth
5.0%
5.3%
—%
(11.6%)
Total
Recurring Subscription
Asset-Based Fees
Non-Recurring Revenues
ESG and Climate
Change Percentage
Change Percentage
Change Percentage
Change Percentage
Operating revenue growth
44.7%
43.9%
—%
88.6%
Impact of acquisitions and divestures
—%
—%
—%
—%
Impact of foreign currency exchange rate
fluctuations
6.5%
6.5%
—%
6.9%
Organic operating revenue growth
51.2%
50.4%
—%
95.5%
Total
Recurring Subscription
Asset-Based Fees
Non-Recurring Revenues
All Other - Private Assets
Change Percentage
Change Percentage
Change Percentage
Change Percentage
Operating revenue growth
109.0%
114.6%
—%
(42.5%)
Impact of acquisitions and divestures
(115.8%)
(120.0%)
—%
—%
Impact of foreign currency exchange rate
fluctuations
9.8%
10.0%
—%
3.0%
Organic operating revenue growth
3.0%
4.6%
—%
(39.5%)
Total
Recurring Subscription
Asset-Based Fees
Non-Recurring Revenues
Consolidated
Change Percentage
Change Percentage
Change Percentage
Change Percentage
Operating revenue growth
13.8%
17.6%
5.5%
(0.8%)
Impact of acquisitions and
divestitures
(4.0%)
(5.7%)
—%
—%
Impact of foreign currency exchange rate
fluctuations
1.2%
1.6%
0.2%
1.0%
Organic operating revenue growth
11.0%
13.5%
5.7%
0.2%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220726005144/en/
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