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 September 30, 2023 (“third quarter
2023”) and nine months ended September 30, 2023 (“nine months
2023”).
Financial and Operational Highlights for Third Quarter
2023 (Note: Unless otherwise noted, percentage and other
changes are relative to the three months ended September 30, 2022
(“third quarter 2022”) and Run Rate percentage changes are relative
to September 30, 2022).
- Operating revenues of $625.4 million, up 11.6%; Organic
operating revenue growth of 10.9%
- Recurring subscription revenues up 10.7%; Asset-based fees
up 12.3%
- Operating margin of 56.5%; Adjusted EBITDA margin of
61.8%
- Diluted EPS of $3.27, up 22.0%; Adjusted EPS of $3.45, up
21.1%
- Organic recurring subscription Run Rate growth of 10.7%;
Retention Rate of 95.4%
- In third quarter 2023 and through trade date of October 30,
2023, a total of $17.9 million or 38,263 shares were repurchased at
an average repurchase price of $467.13
- Approximately $109.2 million in dividends were paid to
shareholders in third quarter 2023; Cash dividend of $1.38 per
share declared by MSCI Board of Directors for fourth quarter
2023
Three Months Ended
Nine Months Ended
Sep. 30,
Sep. 30,
Sep. 30,
Sep. 30,
In thousands, except per share data
(unaudited)
2023
2022
% Change
2023
2022
% Change
Operating revenues
$
625,439
$
560,639
11.6
%
$
1,838,814
$
1,672,390
10.0
%
Operating income
$
353,309
$
309,531
14.1
%
$
1,013,864
$
898,890
12.8
%
Operating margin %
56.5
%
55.2
%
55.1
%
53.7
%
Net income
$
259,659
$
216,592
19.9
%
$
745,212
$
655,602
13.7
%
Diluted EPS
$
3.27
$
2.68
22.0
%
$
9.32
$
8.05
15.8
%
Adjusted EPS
$
3.45
$
2.85
21.1
%
$
9.85
$
8.61
14.4
%
Adjusted EBITDA
$
386,289
$
340,961
13.3
%
$
1,108,324
$
990,649
11.9
%
Adjusted EBITDA margin %
61.8
%
60.8
%
60.3
%
59.2
%
“During the third quarter, MSCI delivered impressive results in
an uncertain environment, posting Adjusted EPS growth of 21.1%,
revenue growth of 11.6%, and a retention rate of 95.4%. Index, our
largest product line, continued to report double-digit subscription
Run Rate growth and Climate achieved a Run Rate increase of nearly
50% across our product lines firm-wide. Meanwhile, our Analytics
segment delivered a near-record retention rate of 95.1%,” said
Henry A. Fernandez, Chairman and CEO of MSCI.
“We continue to benefit from MSCI’s resilient business model,
underpinned by recurring revenues and mission-critical investment
tools. Our recent acquisitions of Burgiss and Trove will help us
further capture major industry trends and strengthen our ability to
provide clients with market-leading portfolio solutions,” Mr.
Fernandez added.
Third Quarter Consolidated
Results
Operating Revenues:
Operating revenues were $625.4 million, up 11.6%. Organic operating
revenue growth was 10.9%. The $64.8 million increase was comprised
of $44.8 million in higher recurring subscription revenues and
$15.4 million in higher asset-based fees, as well as a $4.6 million
increase in non-recurring revenues.
Run Rate and Retention Rate:
Total Run Rate at September 30, 2023 was $2,468.4 million, up
12.0%. Recurring subscription Run Rate increased by $198.9 million,
and asset-based fees Run Rate increased by $66.1 million. Organic
recurring subscription Run Rate growth was 10.7%. Retention Rate in
third quarter 2023 was 95.4%, compared to 96.4% in third quarter
2022.
Expenses: Total operating
expenses were $272.1 million, up 8.4%. Adjusted EBITDA expenses
were $239.2 million, up 8.9%, primarily reflecting higher
compensation and incentive compensation expenses related to higher
headcount to support business growth. Total operating expenses
excluding the impact of foreign currency exchange rate fluctuations
(“ex-FX”) and adjusted EBITDA expenses ex-FX increased 6.4% and
6.7%, respectively.
Operating Income: Operating
income was $353.3 million, up 14.1%. Operating income margin in
third quarter 2023 was 56.5%, compared to 55.2% in third quarter
2022.
Headcount: As of September
30, 2023, headcount was 5,005 employees, with approximately 33.5%
and approximately 66.5% of employees located in developed market
and emerging market locations, respectively.
Other Expense (Income), Net:
Other expense (income), net was $35.7 million, down 11.6% primarily
driven by higher interest income, reflecting higher yields, and the
impact of favorable foreign currency exchange rate fluctuations,
partially offset by higher interest expense due to higher interest
rates.
Income Taxes: The effective
tax rate was 18.3% in the third quarter 2023 compared to 19.5% in
third quarter 2022. The decrease was primarily related to favorable
discrete prior-year items in the third quarter 2023.
Net Income: As a result of
the factors described above, net income was $259.7 million, up
19.9%.
Adjusted EBITDA: Adjusted
EBITDA was $386.3 million, up 13.3%. Adjusted EBITDA margin in
third quarter 2023 was 61.8%, compared to 60.8% in third quarter
2022.
Index Segment:
Table 1A: Results (unaudited)
Three Months Ended
Nine Months Ended
Sep. 30,
Sep. 30,
Sep. 30,
Sep. 30,
In thousands
2023
2022
% Change
2023
2022
% Change
Operating revenues:
Recurring subscriptions
$
206,453
$
185,531
11.3
%
$
603,845
$
539,740
11.9
%
Asset-based fees
141,066
125,620
12.3
%
412,354
402,889
2.3
%
Non-recurring
14,603
11,089
31.7
%
47,621
31,319
52.1
%
Total operating revenues
362,122
322,240
12.4
%
1,063,820
973,948
9.2
%
Adjusted EBITDA expenses
84,450
76,273
10.7
%
255,396
236,936
7.8
%
Adjusted EBITDA
$
277,672
$
245,967
12.9
%
$
808,424
$
737,012
9.7
%
Adjusted EBITDA margin %
76.7
%
76.3
%
76.0
%
75.7
%
Index operating revenues were $362.1 million, up 12.4%. The
$39.9 million increase was driven by $20.9 million in higher
recurring subscription revenues, $15.4 million in higher
asset-based fees and $3.5 million in higher non-recurring
revenues.
Growth in recurring subscription revenues was primarily driven
by strong growth from market-cap weighted Index products.
Revenues from ETFs linked to MSCI equity indexes, mainly driven
by an increase in average AUM drove about three-fourths of the
increase in revenues attributable to asset-based fees. Non-ETF
indexed funds linked to MSCI indexes drove the balance of the
increase, mainly driven by an increase in average AUM and average
basis point fees, partially offset by lower revenues from exchange
traded futures and options contracts linked to MSCI indexes, driven
by lower volumes.
Index Run Rate as of September 30, 2023, was $1.4 billion, up
12.2%. The $150.7 million increase was comprised of a $84.5 million
increase in recurring subscription Run Rate and a $66.1 million
increase in asset-based fees Run Rate. The increase in recurring
subscription Run Rate was primarily driven by growth from market
cap-weighted products and custom Index products and special
packages. The increase reflected growth across all regions and
client segments. The increase in asset-based fees Run Rate
primarily reflected higher AUM in ETFs linked to MSCI equity
indexes.
Analytics Segment:
Table 1B: Results (unaudited)
Three Months Ended
Nine Months Ended
Sep. 30,
Sep. 30,
Sep. 30,
Sep. 30,
In thousands
2023
2022
% Change
2023
2022
% Change
Operating revenues:
Recurring subscriptions
$
151,269
$
142,751
6.0
%
$
443,276
$
420,047
5.5
%
Non-recurring
2,999
2,164
38.6
%
7,943
6,349
25.1
%
Total operating revenues
154,268
144,915
6.5
%
451,219
426,396
5.8
%
Adjusted EBITDA expenses
82,487
77,281
6.7
%
253,509
244,912
3.5
%
Adjusted EBITDA
$
71,781
$
67,634
6.1
%
$
197,710
$
181,484
8.9
%
Adjusted EBITDA margin %
46.5
%
46.7
%
43.8
%
42.6
%
Analytics operating revenues were $154.3 million, up 6.5%. The
$9.4 million increase was primarily driven by growth from recurring
subscriptions related to both Equity Analytics and Multi-Asset
Class products. Excluding the impact of foreign currency exchange
rate fluctuations, Analytics operating revenue growth was 6.6%.
Analytics Run Rate as of September 30, 2023, was $639.5 million,
up 7.0%. The increase of $41.7 million was driven by growth in
Multi-Asset Class and Equity Analytics products, and reflected
growth across all regions. Excluding the impact of foreign currency
exchange rate fluctuations, Analytics Run Rate growth was 6.2%.
ESG and Climate Segment:
Table 1C: Results (unaudited)
Three Months Ended
Nine Months Ended
Sep. 30,
Sep. 30,
Sep. 30,
Sep. 30,
In thousands
2023
2022
% Change
2023
2022
% Change
Operating revenues:
Recurring subscriptions
$
71,744
$
56,353
27.3
%
$
207,523
$
160,962
28.9
%
Non-recurring
1,294
1,242
4.2
%
3,792
3,790
0.1
%
Total operating revenues
73,038
57,595
26.8
%
211,315
164,752
28.3
%
Adjusted EBITDA expenses
47,598
41,685
14.2
%
145,201
122,418
18.6
%
Adjusted EBITDA
$
25,440
$
15,910
59.9
%
$
66,114
$
42,334
56.2
%
Adjusted EBITDA margin %
34.8
%
27.6
%
31.3
%
25.7
%
ESG and Climate operating revenues were $73.0 million, up 26.8%.
The $15.4 million increase was primarily driven by strong growth
from recurring subscriptions related to Ratings which drove about
44% of the increase and the balance from Climate and Screening
products. Excluding the impact of foreign currency exchange rate
fluctuations, ESG and Climate operating revenue growth was
20.3%.
ESG and Climate Run Rate as of September 30, 2023, was $297.3
million, up 25.0%. The $59.4 million increase primarily reflects
strong growth from Ratings, Screening and Climate products with
contributions across all regions and client segments. Excluding the
impact of foreign currency exchange rate fluctuations, ESG and
Climate Run Rate growth was 21.9%.
All Other – Private Assets
Segment:
Table 1D: Results (unaudited)
Three Months Ended
Nine Months Ended
Sep. 30,
Sep. 30,
Sep. 30,
Sep. 30,
In thousands
2023
2022
% Change
2023
2022
% Change
Operating revenues:
Recurring subscriptions
$
35,531
$
35,581
(0.1
)%
$
111,292
$
106,276
4.7
%
Non-recurring
480
308
55.8
%
1,168
1,018
14.7
%
Total operating revenues
36,011
35,889
0.3
%
112,460
107,294
4.8
%
Adjusted EBITDA expenses
24,615
24,439
0.7
%
76,384
77,475
(1.4
)%
Adjusted EBITDA
$
11,396
$
11,450
(0.5
)%
$
36,076
$
29,819
21.0
%
Adjusted EBITDA margin %
31.6
%
31.9
%
32.1
%
27.8
%
All Other – Private Assets operating revenues, which reflect the
Real Assets operating segment, were $36.0 million, up 0.3%. The
increase was primarily driven by growth from recurring
subscriptions related to Index Intel, Property Intel and Climate
Insights products, as well as favorable foreign currency exchange
rate fluctuations, offset by a one-time revenue catch-up in the
prior period. Excluding the impact of foreign currency exchange
rate fluctuations, All Other – Private Assets operating revenues
decreased 1.3%.
All Other – Private Assets Run Rate, which reflects the Real
Assets operating segment, was $150.7 million as of September 30,
2023, up 9.7%, driven by growth in the Index Intel, RCA and
Performance Insights products. Excluding the impact of foreign
currency exchange rate fluctuations, All Other – Private Assets Run
Rate growth was 7.5%.
Select Balance Sheet Items and Capital
Allocation
Cash Balances and Outstanding
Debt: Cash and cash equivalents was $928.6 million as of
September 30, 2023. MSCI typically seeks to maintain minimum cash
balances globally of approximately $225.0 million to $275.0 million
for general operating purposes.
Total principal amounts of debt outstanding as of September 30,
2023, were $4.5 billion. The total debt to net income ratio (based
on trailing twelve months net income) was 4.7x. The total debt to
adjusted EBITDA ratio (based on trailing twelve months adjusted
EBITDA) was 3.1x.
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 $21.0 million, and cash provided by operating activities
declined by 9.9% to $291.1 million, primarily reflecting higher tax
payments and higher operating expenses partially offset by higher
cash collections from clients. Free cash flow for third quarter
2023 was down 11.4% to $270.2 million.
Share Count and Share
Repurchases: Weighted average diluted shares outstanding
were 79.5 million in third quarter 2023, down 1.7% year-over-year.
Total share repurchases during the quarter were $17.9 million or
38,263 shares at an average repurchase price of $467.13. Total
shares outstanding as of September 30, 2023 were 79.1 million. A
total of approximately $0.8 billion remains on the outstanding
share repurchase authorization as of trade date of October 30,
2023.
Dividends: Approximately
$109.2 million in dividends were paid to shareholders in third
quarter 2023. On October 30, 2023, the MSCI Board of Directors
declared a cash dividend of $1.38 per share for fourth quarter
2023, payable on November 30, 2023, to shareholders of record as of
the close of trading on November 9, 2023.
Full-Year 2023 Guidance
MSCI’s guidance for the year ending December 31, 2023
(“Full-Year 2023”) is based on assumptions about a number of
factors, in particular related to macroeconomic factors and the
capital markets. These assumptions are subject to uncertainty, and
actual results for the year could differ materially from our
current guidance, including as a result of the uncertainties, risks
and assumptions discussed in the “Risk Factors” and “Management’s
Discussion and Analysis of Financial Condition and Results of
Operations” sections of our Annual Report on Form 10-K, as updated
in quarterly reports on Form 10-Q and current reports on Form 8-K
filed or furnished with the SEC. See “Forward-Looking Statements”
below.
Guidance Item
Current Guidance for Full-Year
2023
Prior Guidance for Full-Year
2023
Operating Expense
$1,135 to $1,165 million
$1,090 to $1,130 million
Adjusted EBITDA Expense
$1,000 to $1,020 million
$965 to $995 million
Interest Expense (including
amortization of financing fees)(1)
$187 million
$185 to $187 million
Depreciation & Amortization
Expense
$135 to $145 million
$125 to $135 million
Effective Tax Rate
16.5% to 18.0%
17.0% to 20.0%
Capital Expenditures
$85 to $95 million
$80 to $90 million
Net Cash Provided by Operating
Activities
$1,145 to $1,195 million
$1,145 to $1,195 million
Free Cash Flow
$1,060 to $1,120 million
$1,060 to $1,120 million
(1) A portion of our annual interest expense is from our
variable rate Term Loan A facility, while the majority is from
fixed rate senior unsecured notes. Changes to the secured overnight
funding rate (“SOFR”) can cause our annual interest expense on the
Term Loan A facility to vary, and changes in our indebtedness
levels would cause our interest expense to vary.
Conference Call Information
MSCI’s senior management will review the third quarter 2023
results on Tuesday, October 31, 2023 at 11:00 AM Eastern Time. To
listen to the live event via webcast, visit the events and
presentations section of MSCI’s Investor Relations website,
https://ir.msci.com/events-and-presentations, or via telephone,
dial 1-800-715-9871 conference ID 6401331 within the United States.
International callers may dial 1-646-307-1963 conference ID
6401331. The teleconference will also be webcast with an
accompanying slide presentation that 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 2023 guidance.
These forward-looking statements relate to future events or to
future financial performance and involve known and unknown risks,
uncertainties and other factors that may cause our actual results,
levels of activity, performance or achievements to be materially
different from any future results, levels of activity, performance
or achievements expressed or implied by these statements. In some
cases, you can identify forward-looking statements by the use of
words such as “may,” “could,” “expect,” “intend,” “plan,” “seek,”
“anticipate,” “believe,” “estimate,” “predict,” “potential” or
“continue,” or the negative of these terms or other comparable
terminology. You should not place undue reliance on forward-looking
statements because they involve known and unknown risks,
uncertainties and other factors that are, in some cases, beyond
MSCI’s control and that could materially affect actual results,
levels of activity, performance or achievements.
Other factors that could materially affect actual results,
levels of activity, performance or achievements can be found in
MSCI’s Annual Report on Form 10-K for the fiscal year ended
December 31, 2022 filed with the Securities and Exchange Commission
(“SEC”) on February 10, 2023 and in quarterly reports on Form 10-Q
and current reports on Form 8-K filed or furnished with the SEC. If
any of these risks or uncertainties materialize, or if MSCI’s
underlying assumptions prove to be incorrect, actual results may
vary significantly from what MSCI projected. Any forward-looking
statement in this earnings release reflects MSCI’s current views
with respect to future events and is subject to these and other
risks, uncertainties and assumptions relating to MSCI’s operations,
results of operations, growth strategy and liquidity. MSCI assumes
no obligation to publicly update or revise these forward-looking
statements for any reason, whether as a result of new information,
future events, or otherwise, except as required by law.
Website and Social Media Disclosure
MSCI uses its Investor Relations homepage, Corporate
Responsibility homepage and corporate X (formerly 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, SEC filings and public
conference calls and webcasts. In addition, you may automatically
receive email alerts and other information about MSCI when you
enroll your email address by visiting the “Email Alerts” section of
MSCI’s Investor Relations homepage at
http://ir.msci.com/email-alerts. The contents of MSCI’s website,
including its quarterly updates, blog, podcasts and social media
channels are not, however, incorporated by reference into this
earnings release.
Notes Regarding the Use of Operating Metrics
MSCI has presented supplemental key operating metrics as part of
this earnings release, including Retention Rate, Run Rate,
subscription sales, subscription cancellations and non-recurring
sales.
Retention Rate is an important metric because subscription
cancellations decrease our Run Rate and ultimately our future
operating revenues over time. The annual Retention Rate represents
the retained subscription Run Rate (subscription Run Rate at the
beginning of the fiscal year less actual cancels during the year)
as a percentage of the subscription Run Rate at the beginning of
the fiscal year.
The Retention Rate for a non-annual period is calculated by
annualizing the cancellations for which we have received a notice
of termination or for which we believe there is an intention not to
renew or discontinue the subscription during the non-annual period,
and we believe that such notice or intention evidences the client’s
final decision to terminate or not renew the applicable agreement,
even though such notice is not effective until a later date. This
annualized cancellation figure is then divided by the subscription
Run Rate at the beginning of the fiscal year to calculate a
cancellation rate. This cancellation rate is then subtracted from
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 recurring subscription Run Rate growth” is defined as
the period over period Run Rate growth, excluding the impact of
changes in foreign currency and the first year impact of any
acquisitions. It is also adjusted for divestitures. Changes in
foreign currency are calculated by applying the currency exchange
rate from the comparable prior period to current period foreign
currency denominated Run Rate.
Sales represents the annualized value of products and services
clients commit to purchase from MSCI and will result in additional
operating revenues. Non-recurring sales represent the actual value
of the customer agreements entered into during the period and are
not a component of Run Rate. New recurring subscription sales
represent additional selling activities, such as new customer
agreements, additions to existing agreements or increases in price
that occurred during the period and are additions to Run Rate.
Subscription cancellations reflect client activities during the
period, such as discontinuing products and services and/or
reductions in price, resulting in reductions to Run Rate. Net new
recurring subscription sales represent the amount of new recurring
subscription sales net of subscription cancellations during the
period, which reflects the net impact to Run Rate during the
period.
Total gross sales represent the sum of new recurring
subscription sales and non-recurring sales. Total net sales
represent the total gross sales net of the impact from subscription
cancellations.
Notes Regarding the Use of Non-GAAP Financial
Measures
MSCI has presented supplemental non-GAAP financial measures as
part of this earnings release. Reconciliations are provided in
Tables 9 through 14 below that reconcile each non-GAAP financial
measure with the most comparable GAAP measure. The non-GAAP
financial measures presented in this earnings release should not be
considered as alternative measures for the most directly comparable
GAAP financial measures. The non-GAAP financial measures presented
in this earnings release are used by management to monitor the
financial performance of the business, inform business
decision-making and forecast future results.
“Adjusted EBITDA” is defined as net income before (1) provision
for income taxes, (2) other expense (income), net, (3) depreciation
and amortization of property, equipment and leasehold improvements,
(4) amortization of intangible assets and, at times, (5) certain
other transactions or adjustments, including, when applicable,
certain acquisition-related integration and transaction costs.
“Adjusted EBITDA expenses” is defined as operating expenses less
depreciation and amortization of property, equipment and leasehold
improvements and amortization of intangible assets and, at times,
certain other transactions or adjustments, including, when
applicable, certain acquisition-related integration and transaction
costs.
“Adjusted EBITDA margin” is defined as adjusted EBITDA divided
by operating revenues.
“Adjusted net income” and “adjusted EPS” are defined as net
income and diluted EPS, respectively, before the after-tax impact
of: the amortization of acquired intangible assets, including the
amortization of the basis difference between the cost of the equity
method investment and MSCI’s share of the net assets of the
investee at historical carrying value and, at times, certain other
transactions or adjustments, including, when applicable, the impact
related to certain acquisition-related integration and transaction
costs and the impact related to gain from changes in ownership
interest of investees.
“Capex” is defined as capital expenditures plus capitalized
software development costs.
“Free cash flow” is defined as net cash provided by operating
activities, less Capex.
“Organic operating revenue growth” is defined as operating
revenue growth compared to the prior year period excluding the
impact of acquired businesses, divested businesses and foreign
currency exchange rate fluctuations.
Asset-based fees ex-FX does not adjust for the impact from
foreign currency exchange rate fluctuations on the underlying
assets under management (“AUM”).
We believe adjusted EBITDA, adjusted EBITDA margin and adjusted
EBITDA expenses are meaningful measures of the operating
performance of MSCI because they adjust for significant one-time,
unusual or non-recurring items as well as eliminate the accounting
effects of certain capital spending and acquisitions that do not
directly affect what management considers to be our ongoing
operating performance in the period.
We believe adjusted net income and adjusted EPS are meaningful
measures of the performance of MSCI because they adjust for the
after-tax impact of significant one-time, unusual or non-recurring
items as well as eliminate the impact of any transactions that do
not directly affect what management considers to be our ongoing
operating performance in the period. We also exclude the after-tax
impact of the amortization of acquired intangible assets and
amortization of the basis difference between the cost of the equity
method investment and MSCI’s share of the net assets of the
investee at historical carrying value, as these non-cash amounts
are significantly impacted by the timing and size of each
acquisition and therefore not meaningful to the ongoing operating
performance in the period.
We believe that free cash flow is useful to investors because it
relates the operating cash flow of MSCI to the capital that is
spent to continue and improve business operations, such as
investment in MSCI’s existing products. Further, free cash flow
indicates our ability to strengthen MSCI’s balance sheet, repay our
debt obligations, pay cash dividends and repurchase shares of our
common stock.
We believe organic operating revenue growth is a meaningful
measure of the operating performance of MSCI because it adjusts for
the impact of foreign currency exchange rate fluctuations and
excludes the impact of operating revenues attributable to acquired
and divested businesses for the comparable prior year period,
providing insight into our ongoing operating performance for the
period(s) presented.
We believe that the non-GAAP financial measures presented in
this earnings release facilitate meaningful period-to-period
comparisons and provide a baseline for the evaluation of future
results.
Adjusted EBITDA expenses, adjusted EBITDA margin, adjusted
EBITDA, adjusted net income, adjusted EPS, Capex, free cash flow
and organic operating revenue growth are not defined in the same
manner by all companies and may not be comparable to
similarly-titled non-GAAP financial measures of other companies.
These measures can differ significantly from company to company
depending on, among other things, long-term strategic decisions
regarding capital structure, the tax jurisdictions in which
companies operate and capital investments. Accordingly, the
Company’s computation of these measures may not be comparable to
similarly-titled measures computed by other companies.
Notes Regarding Adjusting for the Impact of Foreign Currency
Exchange Rate Fluctuations
Foreign currency exchange rate fluctuations reflect the
difference between the current period results as reported compared
to the current period results recalculated using the foreign
currency exchange rates in effect for the comparable prior period.
While operating revenues adjusted for the impact of foreign
currency fluctuations includes asset-based fees that have been
adjusted for the impact of foreign currency fluctuations, the
underlying AUM, which is the primary component of asset-based fees,
is not adjusted for foreign currency fluctuations. Approximately
three-fifths of the AUM is invested in securities denominated in
currencies other than the 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
Nine Months Ended
Sep. 30,
Sep. 30,
%
Sep. 30,
Sep. 30,
%
In thousands, except per share
data
2023
2022
Change
2023
2022
Change
Operating revenues
$
625,439
$
560,639
11.6
%
$
1,838,814
$
1,672,390
10.0
%
Operating expenses:
Cost of revenues (exclusive of
depreciation and amortization)
105,311
98,418
7.0
%
324,024
301,957
7.3
%
Selling and marketing
66,581
65,545
1.6
%
201,044
192,671
4.3
%
Research and development
31,438
25,941
21.2
%
92,901
78,179
18.8
%
General and administrative
36,826
30,702
19.9
%
113,527
112,993
0.5
%
Amortization of intangible assets
26,722
23,375
14.3
%
77,543
67,274
15.3
%
Depreciation and amortization of
property,
equipment and leasehold improvements
5,252
7,127
(26.3
)%
15,911
20,426
(22.1
)%
Total operating expenses(1)
272,130
251,108
8.4
%
824,950
773,500
6.7
%
Operating income
353,309
309,531
14.1
%
1,013,864
898,890
12.8
%
Interest income
(10,314
)
(3,938
)
161.9
%
(31,079
)
(5,160
)
n/m
Interest expense
46,902
44,162
6.2
%
139,725
125,961
10.9
%
Other expense (income)
(935
)
103
n/m
4,032
(90
)
n/m
Other expense (income), net
35,653
40,327
(11.6
)%
112,678
120,711
(6.7
)%
Income before provision for income
taxes
317,656
269,204
18.0
%
901,186
778,179
15.8
%
Provision for income taxes
57,997
52,612
10.2
%
155,974
122,577
27.2
%
Net income
$
259,659
$
216,592
19.9
%
$
745,212
$
655,602
13.7
%
Earnings per basic common share
$
3.28
$
2.69
21.9
%
$
9.36
$
8.09
15.7
%
Earnings per diluted common share
$
3.27
$
2.68
22.0
%
$
9.32
$
8.05
15.8
%
Weighted average shares outstanding
used
in computing earnings per share:
Basic
79,116
80,500
(1.7
)%
79,580
81,001
(1.8
)%
Diluted
79,500
80,874
(1.7
)%
79,959
81,481
(1.9
)%
n/m: not meaningful.
(1) Includes stock-based compensation
expense of $18.4 million and $12.0 million for the three months
ended Sep. 30, 2023 and Sep. 30, 2022, respectively. Includes
stock-based compensation expense of $56.0 million and $45.4 million
for the nine months ended Sep. 30, 2023 and Sep. 30, 2022,
respectively.
Table 3: Selected Balance Sheet Items (unaudited)
As of
Sep. 30,
Dec. 31,
In thousands
2023
2022
Cash and cash equivalents (1)
$928,552
$993,564
Accounts receivable, net of allowances
$603,266
$663,236
Current deferred revenue
$837,479
$882,886
Current portion of long-term debt (2)
$8,719
$8,713
Long-term debt(3)
$4,500,063
$4,503,233
(1) Includes restricted cash of $3.8
million at September 30, 2023 and $0.4 million at December 31,
2022.
(2) Consists of gross current portion of
long-term debt, net of deferred financing fees. Gross current
portion of long-term debt was $8.8 million at September 30, 2023
and $8.8 million at December 31, 2022.
(3) Consists of gross long-term debt, net
of deferred financing fees. Gross long-term debt was $4,532.5
million at September 30, 2023 and $4,539.1 million at December 31,
2022.
Table 4: Selected Cash Flow Items (unaudited)
Three Months Ended
Nine Months Ended
Sep. 30,
Sep. 30,
%
Sep. 30,
Sep. 30,
%
In thousands
2023
2022
Change
2023
2022
Change
Net cash provided by operating
activities
$
291,131
$
323,069
(9.9
)%
$
847,076
$
779,942
8.6
%
Net cash used in investing activities
(20,981
)
(18,000
)
(16.6
)%
(69,411
)
(52,413
)
(32.4
)%
Net cash (used in) provided by financing
activities
(130,312
)
(269,891
)
51.7
%
(842,364
)
(1,252,827
)
32.8
%
Effect of exchange rate changes
(3,615
)
(10,366
)
65.1
%
(313
)
(29,039
)
98.9
%
Net (decrease) increase in cash, cash
equivalents and restricted cash
$
136,223
$
24,812
n/m
$
(65,012
)
$
(554,337
)
88.3
%
n/m: not meaningful.
Table 5: Operating Results by Segment and Revenue Type
(unaudited)
Index
Three Months Ended
Nine Months Ended
Sep. 30,
Sep. 30,
%
Sep. 30,
Sep. 30,
%
In thousands
2023
2022
Change
2023
2022
Change
Operating revenues:
Recurring subscriptions
$
206,453
$
185,531
11.3
%
$
603,845
$
539,740
11.9
%
Asset-based fees
141,066
125,620
12.3
%
412,354
402,889
2.3
%
Non-recurring
14,603
11,089
31.7
%
47,621
31,319
52.1
%
Total operating revenues
362,122
322,240
12.4
%
1,063,820
973,948
9.2
%
Adjusted EBITDA expenses
84,450
76,273
10.7
%
255,396
236,936
7.8
%
Adjusted EBITDA
$
277,672
$
245,967
12.9
%
$
808,424
$
737,012
9.7
%
Adjusted EBITDA margin %
76.7
%
76.3
%
76.0
%
75.7
%
Analytics
Three Months Ended
Nine Months Ended
Sep. 30,
Sep. 30,
%
Sep. 30,
Sep. 30,
%
In thousands
2023
2022
Change
2023
2022
Change
Operating revenues:
Recurring subscriptions
$
151,269
$
142,751
6.0
%
$
443,276
$
420,047
5.5
%
Non-recurring
2,999
2,164
38.6
%
7,943
6,349
25.1
%
Total operating revenues
154,268
144,915
6.5
%
451,219
426,396
5.8
%
Adjusted EBITDA expenses
82,487
77,281
6.7
%
253,509
244,912
3.5
%
Adjusted EBITDA
$
71,781
$
67,634
6.1
%
$
197,710
$
181,484
8.9
%
Adjusted EBITDA margin %
46.5
%
46.7
%
43.8
%
42.6
%
ESG and Climate
Three Months Ended
Nine Months Ended
Sep. 30,
Sep. 30,
%
Sep. 30,
Sep. 30,
%
In thousands
2023
2022
Change
2023
2022
Change
Operating revenues:
Recurring subscriptions
$
71,744
$
56,353
27.3
%
$
207,523
$
160,962
28.9
%
Non-recurring
1,294
1,242
4.2
%
3,792
3,790
0.1
%
Total operating revenues
73,038
57,595
26.8
%
211,315
164,752
28.3
%
Adjusted EBITDA expenses
47,598
41,685
14.2
%
145,201
122,418
18.6
%
Adjusted EBITDA
$
25,440
$
15,910
59.9
%
$
66,114
$
42,334
56.2
%
Adjusted EBITDA margin %
34.8
%
27.6
%
31.3
%
25.7
%
All Other - Private Assets
Three Months Ended
Nine Months Ended
Sep. 30,
Sep. 30,
%
Sep. 30,
Sep. 30,
%
In thousands
2023
2022
Change
2023
2022
Change
Operating revenues:
Recurring subscriptions
$
35,531
$
35,581
(0.1
)%
$
111,292
$
106,276
4.7
%
Non-recurring
480
308
55.8
%
1,168
1,018
14.7
%
Total operating revenues
36,011
35,889
0.3
%
112,460
107,294
4.8
%
Adjusted EBITDA expenses
24,615
24,439
0.7
%
76,384
77,475
(1.4
)%
Adjusted EBITDA
$
11,396
$
11,450
(0.5
)%
$
36,076
$
29,819
21.0
%
Adjusted EBITDA margin %
31.6
%
31.9
%
32.1
%
27.8
%
Consolidated
Three Months Ended
Nine Months Ended
Sep. 30,
Sep. 30,
%
Sep. 30,
Sep. 30,
%
In thousands
2023
2022
Change
2023
2022
Change
Operating revenues:
Recurring subscriptions
$
464,997
$
420,216
10.7
%
$
1,365,936
$
1,227,025
11.3
%
Asset-based fees
141,066
125,620
12.3
%
412,354
402,889
2.3
%
Non-recurring
19,376
14,803
30.9
%
60,524
42,476
42.5
%
Operating revenues total
625,439
560,639
11.6
%
1,838,814
1,672,390
10.0
%
Adjusted EBITDA expenses
239,150
219,678
8.9
%
730,490
681,741
7.2
%
Adjusted EBITDA
$
386,289
$
340,961
13.3
%
$
1,108,324
$
990,649
11.9
%
Operating margin %
56.5
%
55.2
%
55.1
%
53.7
%
Adjusted EBITDA margin %
61.8
%
60.8
%
60.3
%
59.2
%
Table 6: Sales and Retention Rate by Segment
(unaudited)(1)
Three Months Ended
Nine Months Ended
Sep. 30,
Sep. 30,
Sep. 30,
Sep. 30,
In thousands
2023
2022
2023
2022
Index
New recurring subscription sales
$
23,978
$
24,130
$
80,156
$
74,493
Subscription cancellations
(7,402
)
(5,388
)
(22,617
)
(18,468
)
Net new recurring subscription sales
$
16,576
$
18,742
$
57,539
$
56,025
Non-recurring sales
$
14,679
$
13,375
$
54,365
$
41,357
Total gross sales
$
38,657
$
37,505
$
134,521
$
115,850
Total Index net sales
$
31,255
$
32,117
$
111,904
$
97,382
Index Retention Rate
96.2
%
96.9
%
96.1
%
96.5
%
Analytics
New recurring subscription sales
$
18,787
$
17,568
$
50,751
$
50,391
Subscription cancellations
(7,543
)
(6,029
)
(24,094
)
(22,523
)
Net new recurring subscription sales
$
11,244
$
11,539
$
26,657
$
27,868
Non-recurring sales
$
3,206
$
2,505
$
8,734
$
8,412
Total gross sales
$
21,993
$
20,073
$
59,485
$
58,803
Total Analytics net sales
$
14,450
$
14,044
$
35,391
$
36,280
Analytics Retention Rate
95.1
%
95.9
%
94.8
%
94.9
%
ESG and Climate
New recurring subscription sales
$
12,124
$
14,270
$
38,497
$
55,617
Subscription cancellations
(2,639
)
(1,303
)
(7,331
)
(3,315
)
Net new recurring subscription sales
$
9,485
$
12,967
$
31,166
$
52,302
Non-recurring sales
$
1,532
$
1,375
$
4,066
$
3,553
Total gross sales
$
13,656
$
15,645
$
42,563
$
59,170
Total ESG and Climate net sales
$
11,017
$
14,342
$
35,232
$
55,855
ESG and Climate Retention Rate
96.0
%
97.4
%
96.3
%
97.8
%
All Other - Private Assets
New recurring subscription sales
$
4,788
$
5,218
$
14,746
$
16,490
Subscription cancellations
(3,153
)
(1,744
)
(8,634
)
(5,080
)
Net new recurring subscription sales
$
1,635
$
3,474
$
6,112
$
11,410
Non-recurring sales
$
262
$
83
$
1,069
$
690
Total gross sales
$
5,050
$
5,301
$
15,815
$
17,180
Total All Other - Private Assets net
sales
$
1,897
$
3,557
$
7,181
$
12,100
All Other - Private Assets Retention
Rate
91.3
%
94.8
%
92.1
%
95.0
%
Consolidated
New recurring subscription sales
$
59,677
$
61,186
$
184,150
$
196,991
Subscription cancellations
(20,737
)
(14,464
)
(62,676
)
(49,386
)
Net new recurring subscription sales
$
38,940
$
46,722
$
121,474
$
147,605
Non-recurring sales
$
19,679
$
17,338
$
68,234
$
54,012
Total gross sales
$
79,356
$
78,524
$
252,384
$
251,003
Total net sales
$
58,619
$
64,060
$
189,708
$
201,617
Total Retention Rate
95.4
%
96.4
%
95.4
%
95.9
%
(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.
Table 7: AUM in ETFs Linked to MSCI Equity Indexes
(unaudited)(1)(2)
Three Months Ended
Nine Months Ended
Sep. 30,
Dec. 31,
Mar. 31,
June 30,
Sep. 30,
Sep. 30,
Sep. 30,
In billions
2022
2022
2023
2023
2023
2022
2023
Beginning Period AUM in ETFs linked to
$
1,189.5
$
1,081.2
$
1,222.9
$
1,305.4
$
1,372.5
$
1,451.6
$
1,222.9
MSCI equity indexes
Market Appreciation/(Depreciation)
(105.7
)
118.8
75.1
48.4
(56.1
)
(402.7
)
67.4
Cash Inflows
(2.6
)
22.9
7.4
18.7
6.4
32.3
32.5
Period-End AUM in ETFs linked to
MSCI equity indexes
$
1,081.2
$
1,222.9
$
1,305.4
$
1,372.5
$
1,322.8
$
1,081.2
$
1,322.8
Period Average AUM in ETFs linked to
MSCI equity indexes
$
1,208.9
$
1,182.1
$
1,287.5
$
1,333.8
$
1,376.5
$
1,295.6
$
1,332.6
Period-End Basis Point Fee(3)
2.52
2.54
2.53
2.52
2.51
2.52
2.51
(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% 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
Sep. 30,
Sep. 30,
%
In thousands
2023
2022
Change
Index
Recurring subscriptions
$
835,334
$
750,818
11.3
%
Asset-based fees
545,548
479,399
13.8
%
Index Run Rate
1,380,882
1,230,217
12.2
%
Analytics Run Rate
639,462
597,752
7.0
%
ESG and Climate Run Rate
297,297
237,930
25.0
%
All Other - Private Assets Run
Rate
150,749
137,401
9.7
%
Total Run Rate
$
2,468,390
$
2,203,300
12.0
%
Total recurring subscriptions
$
1,922,842
$
1,723,901
11.5
%
Total asset-based fees
545,548
479,399
13.8
%
Total Run Rate
$
2,468,390
$
2,203,300
12.0
%
(1) See "Notes Regarding the Use of
Operating Metrics" for details regarding the definition of Run
Rate.
Table 9: Reconciliation of Net Income to Adjusted EBITDA
(unaudited)
Three Months Ended
Nine Months Ended
Sep. 30,
Sep. 30,
Sep. 30,
Sep. 30,
In thousands
2023
2022
2023
2022
Net income
$
259,659
$
216,592
$
745,212
$
655,602
Provision for income taxes
57,997
52,612
155,974
122,577
Other expense (income), net
35,653
40,327
112,678
120,711
Operating income
353,309
309,531
1,013,864
898,890
Amortization of intangible assets
26,722
23,375
77,543
67,274
Depreciation and amortization of
property,
equipment and leasehold improvements
5,252
7,127
15,911
20,426
Acquisition-related integration and
transaction costs(1)
1,006
928
1,006
4,059
Consolidated adjusted EBITDA
$
386,289
$
340,961
$
1,108,324
$
990,649
Index adjusted EBITDA
$
277,672
$
245,967
$
808,424
$
737,012
Analytics adjusted EBITDA
71,781
67,634
197,710
181,484
ESG and Climate adjusted EBITDA
25,440
15,910
66,114
42,334
All Other - Private Assets adjusted
EBITDA
11,396
11,450
36,076
29,819
Consolidated adjusted EBITDA
$
386,289
$
340,961
$
1,108,324
$
990,649
(1) Represents transaction expenses and
other costs directly related to the acquisition and integration of
acquired businesses, including professional fees, severance
expenses, regulatory filing fees and other costs, in each case that
are incurred no later than 12 months after the close of the
relevant acquisition.
Table 10: Reconciliation of Net Income and Diluted EPS to
Adjusted Net Income and Adjusted EPS (unaudited)
Three Months Ended
Nine Months Ended
Sep. 30,
Sep. 30,
Sep. 30,
Sep. 30,
In thousands, except per share
data
2023
2022
2023
2022
Net income
$
259,659
$
216,592
$
745,212
$
655,602
Plus: Amortization of acquired intangible
assets and
equity method investment basis
difference
16,722
16,811
50,356
50,564
Plus: Acquisition-related integration and
transaction costs(1)
1,006
928
1,006
4,220
Less: Gain from changes in ownership
interest of investees
—
—
(447
)
—
Less: Income tax effect
(3,327
)
(3,537
)
(8,880
)
(8,630
)
Adjusted net income
$
274,060
$
230,794
$
787,247
$
701,756
Diluted EPS
$
3.27
$
2.68
$
9.32
$
8.05
Plus: Amortization of acquired intangible
assets and
equity method investment basis
difference
0.21
0.21
0.63
0.62
Plus: Acquisition-related integration and
transaction costs(1)
0.01
0.01
0.01
0.05
Less: Gain from changes in ownership
interest of investees
—
—
(0.01
)
—
Less: Income tax effect
(0.04
)
(0.05
)
(0.10
)
(0.11
)
Adjusted EPS
$
3.45
$
2.85
$
9.85
$
8.61
(1) Represents transaction expenses and
other costs directly related to the acquisition and integration of
acquired businesses, including professional fees, severance
expenses, regulatory filing fees and other costs, in each case that
are incurred no later than 12 months after the close of the
relevant acquisition.
Table 11: Reconciliation of Operating Expenses to Adjusted
EBITDA Expenses (unaudited)
Three Months Ended
Nine Months Ended
Full-Year
Sep. 30,
Sep. 30,
Sep. 30,
Sep. 30,
2023
In thousands
2023
2022
2023
2022
Guidance (1)
Total operating expenses
$
272,130
$
251,108
$
824,950
$
773,500
$1,135,000 -
$1,165,000
Amortization of intangible assets
26,722
23,375
77,543
67,274
Depreciation and amortization of
property,
equipment and leasehold improvements
5,252
7,127
15,911
20,426
$135,000 - $145,000
Acquisition-related integration and
transaction costs(2)
1,006
928
1,006
4,059
Consolidated adjusted EBITDA
expenses
$
239,150
$
219,678
$
730,490
$
681,741
$1,000,000 -
$1,020,000
Index adjusted EBITDA expenses
$
84,450
$
76,273
$
255,396
$
236,936
Analytics adjusted EBITDA expenses
82,487
77,281
253,509
244,912
ESG and Climate adjusted EBITDA
expenses
47,598
41,685
145,201
122,418
All Other - Private Assets adjusted EBITDA
expenses
24,615
24,439
76,384
77,475
Consolidated adjusted EBITDA
expenses
$
239,150
$
219,678
$
730,490
$
681,741
$1,000,000 -
$1,020,000
(1) We have not provided a full line-item
reconciliation for total operating expenses to adjusted EBITDA
expenses for this future period because we believe such a
reconciliation would imply a degree of precision and certainty that
could be confusing to investors and we are unable to reasonably
predict certain items contained in the GAAP measure without
unreasonable efforts. This is due to the inherent difficulty of
forecasting the timing or amount of various items that have not yet
occurred and are out of the Company's control or cannot be
reasonably predicted. For the same reasons, the Company is unable
to address the probable significance of the unavailable
information. Forward-looking non-GAAP financial measures provided
without the most directly comparable GAAP financial measures may
vary materially from the corresponding GAAP financial measures. See
“Forward-Looking Statements” above.
(2) Represents transaction expenses and
other costs directly related to the acquisition and integration of
acquired businesses, including professional fees, severance
expenses, regulatory filing fees and other costs, in each case that
are incurred no later than 12 months after the close of the
relevant acquisition.
Table 12: Reconciliation of Net Cash Provided by Operating
Activities to Free Cash Flow (unaudited)
Three Months Ended
Nine Months Ended
Full-Year
Sep. 30,
Sep. 30,
Sep. 30,
Sep. 30,
2023
In thousands
2023
2022
2023
2022
Guidance (1)
Net cash provided by operating
activities
$
291,131
$
323,069
$
847,076
$
779,942
$1,145,000 -
$1,195,000
Capital expenditures
(3,564
)
(3,275
)
(18,942
)
(8,012
)
Capitalized software development costs
(17,417
)
(14,726
)
(50,080
)
(44,425
)
Capex
(20,981
)
(18,001
)
(69,022
)
(52,437
)
($85,000 - $95,000)
Free cash flow
$
270,150
$
305,068
$
778,054
$
727,505
$1,060,000 -
$1,120,000
(1) We have not provided a line-item
reconciliation for free cash flow to net cash provided by operating
activities for this future period because we believe such a
reconciliation would imply a degree of precision and certainty that
could be confusing to investors and we are unable to reasonably
predict certain items contained in the GAAP measure without
unreasonable efforts. This is due to the inherent difficulty of
forecasting the timing or amount of various items that have not yet
occurred and are out of the Company's control or cannot be
reasonably predicted. For the same reasons, the Company is unable
to address the probable significance of the unavailable
information. Forward-looking non-GAAP financial measures provided
without the most directly comparable GAAP financial measures may
vary materially from the corresponding GAAP financial measures. See
“Forward-Looking Statements” above.
Table 13: Third Quarter 2023 Reconciliation of Operating
Revenue Growth to Organic Operating Revenue Growth
(unaudited)
Comparison of the Three Months
Ended September 30, 2023 and 2022
Total
Recurring Subscription
Asset-Based Fees
Non-Recurring Revenues
Index
Change Percentage
Change Percentage
Change Percentage
Change Percentage
Operating revenue growth
12.4 %
11.3 %
12.3 %
31.7 %
Impact of acquisitions and
divestitures
— %
— %
— %
— %
Impact of foreign currency exchange rate
fluctuations
0.1 %
0.1 %
— %
— %
Organic operating revenue growth
12.5 %
11.4 %
12.3 %
31.7 %
Total
Recurring Subscription
Asset-Based Fees
Non-Recurring Revenues
Analytics
Change Percentage
Change Percentage
Change Percentage
Change Percentage
Operating revenue growth
6.5 %
6.0 %
— %
38.6 %
Impact of acquisitions and
divestitures
— %
— %
— %
— %
Impact of foreign currency exchange rate
fluctuations
0.1 %
0.1 %
— %
(2.0) %
Organic operating revenue growth
6.6 %
6.1 %
— %
36.6 %
Total
Recurring Subscription
Asset-Based Fees
Non-Recurring Revenues
ESG and Climate
Change Percentage
Change Percentage
Change Percentage
Change Percentage
Operating revenue growth
26.8 %
27.3 %
— %
4.2 %
Impact of acquisitions and
divestitures
— %
— %
— %
— %
Impact of foreign currency exchange rate
fluctuations
(6.5) %
(6.6) %
— %
(2.9) %
Organic operating revenue growth
20.3 %
20.7 %
— %
1.3 %
Total
Recurring Subscription
Asset-Based Fees
Non-Recurring Revenues
All Other - Private Assets
Change Percentage
Change Percentage
Change Percentage
Change Percentage
Operating revenue growth
0.3 %
(0.1) %
— %
55.8 %
Impact of acquisitions and
divestitures
— %
— %
— %
— %
Impact of foreign currency exchange rate
fluctuations
(1.6) %
(1.6) %
— %
(1.6) %
Organic operating revenue growth
(1.3) %
(1.7) %
— %
54.2 %
Total
Recurring Subscription
Asset-Based Fees
Non-Recurring Revenues
Consolidated
Change Percentage
Change Percentage
Change Percentage
Change Percentage
Operating revenue growth
11.6 %
10.7 %
12.3 %
30.9 %
Impact of acquisitions and
divestitures
— %
— %
— %
— %
Impact of foreign currency exchange rate
fluctuations
(0.7) %
(0.9) %
— %
(0.6) %
Organic operating revenue growth
10.9 %
9.8 %
12.3 %
30.3 %
Table 14: Nine Months 2023 Reconciliation of Operating
Revenue Growth to Organic Operating Revenue Growth
(unaudited)
Comparison of the Nine Months
Ended September 30, 2023 and 2022
Total
Recurring Subscription
Asset-Based Fees
Non-Recurring Revenues
Index
Change Percentage
Change Percentage
Change Percentage
Change Percentage
Operating revenue growth
9.2 %
11.9 %
2.3 %
52.1 %
Impact of acquisitions and
divestitures
— %
— %
— %
— %
Impact of foreign currency exchange rate
fluctuations
0.2 %
0.2 %
0.1 %
— %
Organic operating revenue growth
9.4 %
12.1 %
2.4 %
52.1 %
Total
Recurring Subscription
Asset-Based Fees
Non-Recurring Revenues
Analytics
Change Percentage
Change Percentage
Change Percentage
Change Percentage
Operating revenue growth
5.8 %
5.5 %
— %
25.1 %
Impact of acquisitions and
divestitures
— %
— %
— %
— %
Impact of foreign currency exchange rate
fluctuations
0.4 %
0.4 %
— %
(0.1) %
Organic operating revenue growth
6.2 %
5.9 %
— %
25.0 %
Total
Recurring Subscription
Asset-Based Fees
Non-Recurring Revenues
ESG and Climate
Change Percentage
Change Percentage
Change Percentage
Change Percentage
Operating revenue growth
28.3 %
28.9 %
— %
0.1 %
Impact of acquisitions and
divestitures
— %
— %
— %
— %
Impact of foreign currency exchange rate
fluctuations
0.5 %
0.6 %
— %
(0.3) %
Organic operating revenue growth
28.8 %
29.5 %
— %
(0.2) %
Total
Recurring Subscription
Asset-Based Fees
Non-Recurring Revenues
All Other - Private Assets
Change Percentage
Change Percentage
Change Percentage
Change Percentage
Operating revenue growth
4.8 %
4.7 %
— %
14.7 %
Impact of acquisitions and
divestitures
— %
— %
— %
— %
Impact of foreign currency exchange rate
fluctuations
1.4 %
1.4 %
— %
(0.1) %
Organic operating revenue growth
6.2 %
6.1 %
— %
14.6 %
Total
Recurring Subscription
Asset-Based Fees
Non-Recurring Revenues
Consolidated
Change Percentage
Change Percentage
Change Percentage
Change Percentage
Operating revenue growth
10.0 %
11.3 %
2.3 %
42.5 %
Impact of acquisitions and
divestitures
— %
— %
— %
— %
Impact of foreign currency exchange rate
fluctuations
0.3 %
0.4 %
0.1 %
— %
Organic operating revenue growth
10.3 %
11.7 %
2.4 %
42.5 %
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231031472120/en/
MSCI Inc. Contacts Investor Inquiries
jeremy.ulan@msci.com Jeremy Ulan +1 646 778 4184 jisoo.suh@msci.com
Jisoo Suh + 1 917 825 7111 Media Inquiries PR@msci.com Sam
Wang +1 212 804 5244 Melanie Blanco +1 212 981 1049 Tina Tan + 852
2844 9320
MSCI (NYSE:MSCI)
Gráfico Histórico do Ativo
De Mai 2024 até Jun 2024
MSCI (NYSE:MSCI)
Gráfico Histórico do Ativo
De Jun 2023 até Jun 2024