Non-recurring revenues of $23.2 million fell 15% year over year and contributed 3.3% to revenues. At the end of the reported quarter, average assets under management (AUM) were $1.631 trillion in ETFs linked to MSCI indexes. The total retention rate was 94.8% in the quarter under review. Top-Line Details In the second quarter, Index revenues of $397.2 million surpassed the Zacks Consensus Estimate by 7.21% and increased 9.6% year over year. Recurring subscriptions and asset-based fees increased 8.1% and 18. ...

This quarterly report represents an earnings surprise of 2.25%. A quarter ago, it was expected that this maker of software tools to help portfolio managers make investment decisions would post earnings of $3.44 per share when it actually produced earnings of $3.52, delivering a surprise of 2.33%. MSCI shares have lost about 10.5% since the beginning of the year versus the S&P 500's gain of 16.7%. There are no easy answers to this key question, but one reliable measure that can help investors address this is ...

New York – July 23, 2024 – 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, 2024 ("second quarter 2024") and six months ended June 30, 2024 ("six months 2024"). Three Months Ended Six Months Ended "As we capture and commercialize the next evolution of global investing, MSCI is expanding our footprint among large and rapidly growing ...

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The latest move bodes well with MSCI's focus on enhancing ESG transparency and expanding private company ESG coverage through leveraging Moody's Orbis database and credit scoring models. In first-quarter 2024, MSCI achieved 10% organic revenue growth, driven by strong performance across various segments, including Analytics, ESG and Index Investments. The company witnessed growth in its ESG and Climate solutions, with organic run rate growth of 13%. MSCI (MSCI) recently announced a partnership with Moody's ...

- First, people have such a wide variety of ways that they like to define and screen for them, and What Makes A Compounder? Why Is MSCI A Compounder? At a base level, in case you're new to MSCI, the company provides data and index products to mostly institutional investors. TradingView 'Compounder' stocks are an interesting breed for a couple of reasons. Many have a view that finding a compounder is a game of 'inputs' - in that, a business that is in the right market, with the right management, and with a h ...

A month has gone by since the last earnings report for MSCI (MSCI) . Shares have added about 8.4% in that time frame, outperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is MSCI due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts. MSCI Q1 Earnings Beat, Recurring Subscriptions Rise Y/Y MSCI's f ...

MSCI (MSCI) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.Over the past month, shares of this maker of software tools to help portfolio managers make investment decisions have returned -15%, compared to the Zacks S&P 500 composite's -0.2% change. During this period, the Zacks Business - Software Services industry, which MSCI falls in, has lost 3.7%. The key question now is: Wh ...

3 Henry Fernandez Chairman & CEO Baer Pettit President & COO 1Q24 Financial Results Snapshot 6 1Q24 Diluted EPS Growth 7 56.4% MSCI (8 1Q24 Net cash provided by operating activities +11% $300M +8% 49.9% 14 1Q24 Recurring Subscription Run Rate by Region Americas $959M +17% YoY 1Q24 Recurring Net New Subscription Sales by Region EMEA $797M +12% YoY APAC $351M +12% YoY Americas $7M -31% YoY EMEA $7M -59% YoY APAC $5M -28% YoY Organic: $875M; +7% YoY Organic : $781M; +9% YoY Organic : $349M; +12% YoY 1Q24 Opera ...

Financial Data and Key Metrics Changes - MSCI achieved organic revenue growth of 10%, adjusted earnings per share growth of 12%, and free cash flow growth of 14% [4] - Non-recurring sales increased by 16% to $18 million, reflecting the lingering impact of market volatility and pressures on investment firms [77] - The effective tax rate for Q1 was 13.5%, benefiting from favorable discrete items and higher excess tax benefits recognized on stock-based compensation [28] Business Line Data and Key Metrics Changes - ABF revenue grew by 13%, driven by record AUM balances in ETFs and non-listed products linked to MSCI indices [4] - Analytics revenue grew by 12%, with recurring sales of the RiskManager tool up by 60% [80] - Index subscription run rate growth was 9.3%, with 12% growth in Asia-Pacific and 24% growth among hedge funds [97] Market Data and Key Metrics Changes - AUM in equity ETF products linked to MSCI indices reached a record high of $1.58 trillion, while AUM in non-listed products hit $3.23 trillion [24] - ESG and Climate segment saw organic run rate growth of 13%, with Europe at nearly 18% and Asia at close to 22% [10] - The Americas experienced 9% growth in the ESG and Climate segment [10] Company Strategy and Development Direction - MSCI is focused on capitalizing on trends such as portfolio customization, indexation, and the growth of private assets [5] - The acquisition of Foxberry aims to enhance custom index production and provide simulation and back-testing capabilities [5] - The company is committed to maintaining high levels of revenue growth and profitability despite external challenges [78] Management's Comments on Operating Environment and Future Outlook - Management noted that elevated cancellations were primarily due to industry consolidation and client events, but do not expect this trend to continue [77][30] - There is confidence in the resilience of the business model, supported by high levels of client engagement across all segments [78] - The company anticipates a gradual rebound in AUM and retention rates in the latter part of the year [28][106] Other Important Information - The company reported a retention rate of 94%, with clients using multiple product lines accounting for 85% of the total subscription run rate [79] - The integration of Burgiss is on track, contributing over $24 million in revenue for the quarter with a retention rate of nearly 96% [83] - MSCI's analytics team is experiencing massive demand for products amid market volatility, with significant growth in risk insights and multi-asset class models [80] Q&A Session Summary Question: What is the outlook on closures and cancellations? - Management confirmed that the elevated cancellations were largely due to a significant client event and do not expect this level to continue [12][85] Question: How is the company addressing the longer sales cycles? - Management acknowledged longer sales cycles due to budget constraints but expressed optimism about converting client engagements into bookings [51][106] Question: What is the growth potential for custom index products? - Custom index products saw a strong run rate growth of 19%, with significant market opportunities identified [57] Question: How does MSCI balance reinvestments with margin performance? - The company aims to maintain high profitability while investing in growth opportunities, focusing on efficiency and strategic investments [128] Question: What is the impact of new regulations on ESG demand? - New regulations in Europe are expected to drive demand for ESG products, while the company remains focused on financial materiality [91]