MSCI Inc.'s (MSCI) first-quarter 2024 adjusted earnings of $3.52 per share beat the Zacks Consensus Estimate by 2.33% and increased 12.1% year over year.Revenues increased 14.8% year over year to $680 million but missed the consensus mark by 0.38%. Organic revenues increased 10.3% year over year.Recurring subscriptions of $513.1 million increased 15.2% year over year and accounted for 75% of revenues.Asset-based fees of $150.3 million increased 12.9% year over year and contributed 21% of revenues.Non-recurr ...

Part I – Financial Information [Item 1. Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) This section presents MSCI's unaudited condensed consolidated financial statements for Q1 2024, highlighting a **14.8%** increase in operating revenues to **$680.0 million** and a **7.2%** rise in net income to **$256.0 million** Condensed Consolidated Statements of Income (Q1 2024 vs Q1 2023) | Metric | Q1 2024 (in thousands) | Q1 2023 (in thousands) | % Change | | :--- | :--- | :--- | :--- | | **Operating revenues** | $679,965 | $592,218 | 14.8% | | **Operating income** | $339,382 | $314,602 | 7.9% | | **Net income** | $255,954 | $238,728 | 7.2% | | **Diluted EPS** | $3.22 | $2.97 | 8.4% | Condensed Consolidated Statements of Financial Condition | Metric | March 31, 2024 (in thousands) | December 31, 2023 (in thousands) | | :--- | :--- | :--- | | **Total assets** | $5,478,589 | $5,518,219 | | **Total liabilities** | $6,129,106 | $6,257,983 | | **Total shareholders' equity (deficit)** | $(650,517) | $(739,764) | Condensed Consolidated Statements of Cash Flows | Metric | Q1 2024 (in thousands) | Q1 2023 (in thousands) | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $300,137 | $264,141 | | **Net cash used in investing activities** | $(32,333) | $(21,762) | | **Net cash used in financing activities** | $(207,223) | $(158,293) | [Notes to Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) These notes provide detailed disclosures on accounting policies, recent acquisitions, and segment performance, noting BlackRock as a significant customer accounting for **10.0%** of consolidated operating revenues - BlackRock, Inc. accounted for **10.0%** of the Company's consolidated operating revenues for the three months ended March 31, 2024, down slightly from 10.2% in the same period of 2023[36](index=36&type=chunk) Operating Revenues by Segment (Q1 2024) | Segment | Recurring Subscriptions (in thousands) | Asset-based Fees (in thousands) | Non-recurring (in thousands) | Total (in thousands) | | :--- | :--- | :--- | :--- | :--- | | **Index** | $212,952 | $150,259 | $10,661 | $373,872 | | **Analytics** | $160,551 | $— | $3,415 | $163,966 | | **ESG and Climate** | $76,418 | $— | $1,466 | $77,884 | | **All Other - Private Assets** | $63,134 | $— | $1,109 | $64,243 | | **Total** | **$513,055** | **$150,259** | **$16,651** | **$679,965** | - The company completed the acquisition of Fabric RQ, Inc. on January 2, 2024, a wealth technology platform, which is now part of the Analytics segment. The aggregate purchase price was **$16.1 million**, including **$8.1 million** in contingent consideration[53](index=53&type=chunk)[54](index=54&type=chunk)[55](index=55&type=chunk) Segment Profitability (Adjusted EBITDA) | Segment | Q1 2024 (in thousands) | Q1 2023 (in thousands) | | :--- | :--- | :--- | | **Index Adjusted EBITDA** | $277,760 | $253,682 | | **Analytics Adjusted EBITDA** | $72,212 | $60,780 | | **ESG and Climate Adjusted EBITDA** | $21,091 | $17,876 | | **All Other - Private Assets Adjusted EBITDA** | $12,510 | $12,391 | | **Total** | **$383,573** | **$344,729** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=29&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2024 financial results, noting a **14.8%** increase in operating revenues and **11.3%** Adjusted EBITDA growth to **$383.6 million**, while the Adjusted EBITDA margin slightly compressed to **56.4%** [Results of Operations](index=31&type=section&id=Results%20of%20Operations) Operating revenues for Q1 2024 increased **14.8%** to **$680.0 million**, driven by recurring subscriptions and asset-based fees, while total operating expenses rose **22.7%** due to higher compensation and amortization, leading to a **7.2%** net income growth Operating Revenues by Type (Q1 2024 vs Q1 2023) | Revenue Type | Q1 2024 (in thousands) | Q1 2023 (in thousands) | % Change | | :--- | :--- | :--- | :--- | | **Recurring subscriptions** | $513,055 | $445,247 | 15.2% | | **Asset-based fees** | $150,259 | $133,126 | 12.9% | | **Non-recurring** | $16,651 | $13,845 | 20.3% | | **Total operating revenues** | **$679,965** | **$592,218** | **14.8%** | - The average value of AUM in ETFs linked to MSCI equity indexes for Q1 2024 was **$1,508.8 billion**, a **17.2%** increase from **$1,287.5 billion** in Q1 2023, driving growth in asset-based fees[119](index=119&type=chunk)[120](index=120&type=chunk) - Total operating expenses increased by **22.7%**, primarily driven by a **22.8%** rise in compensation and benefits costs and a **56.5%** increase in amortization of intangible assets, largely due to recent acquisitions and headcount growth[124](index=124&type=chunk)[134](index=134&type=chunk) - Employee headcount grew **20.9%** to **5,858** as of March 31, 2024, from **4,846** a year prior, primarily due to acquisitions, with emerging market centers increasing to **67.2%**[136](index=136&type=chunk) [Segment Results](index=42&type=section&id=Segment%20Results) All segments reported revenue growth in Q1 2024, with Index growing **10.2%** to **$373.9 million**, Analytics **11.5%** to **$164.0 million**, ESG and Climate **16.1%** to **$77.9 million**, and Private Assets surging **66.0%** to **$64.2 million** due to acquisitions - **Index Segment:** Revenue grew **10.2%** YoY to **$373.9 million**. Asset-based fees increased **12.9%** driven by higher average AUM in linked ETFs. Adjusted EBITDA rose **9.5%** to **$277.8 million**[157](index=157&type=chunk)[159](index=159&type=chunk) - **Analytics Segment:** Revenue increased **11.5%** YoY to **$164.0 million**, driven by growth in both Multi-Asset Class and Equity Analytics products. Adjusted EBITDA grew **18.8%** to **$72.2 million**[161](index=161&type=chunk)[162](index=162&type=chunk) - **ESG and Climate Segment:** Revenue rose **16.1%** YoY to **$77.9 million**, led by growth in Ratings, Climate, and Screening products. Adjusted EBITDA increased **18.0%** to **$21.1 million**[164](index=164&type=chunk) - **All Other – Private Assets Segment:** Revenue surged **66.0%** YoY to **$64.2 million**, primarily due to the Burgiss acquisition. Adjusted EBITDA was nearly flat, up **1.0%** to **$12.5 million**, as expenses also rose significantly post-acquisition[166](index=166&type=chunk)[168](index=168&type=chunk)[169](index=169&type=chunk) [Operating Metrics](index=45&type=section&id=Operating%20Metrics) Total Run Rate grew **14.6%** to **$2.73 billion**, but net new recurring subscription sales decreased **43.5%** to **$19.6 million** due to higher cancellations, leading to an overall Retention Rate decline to **92.8%** Run Rate by Segment (as of March 31) | Segment | 2024 (in thousands) | 2023 (in thousands) | % Change | | :--- | :--- | :--- | :--- | | **Index** | $1,489,362 | $1,330,112 | 12.0% | | **Analytics** | $662,079 | $621,611 | 6.5% | | **ESG and Climate** | $320,611 | $278,947 | 14.9% | | **All Other - Private Assets** | $254,432 | $148,440 | 71.4% | | **Total Run Rate** | **$2,726,484** | **$2,379,110** | **14.6%** | Sales and Cancellations (Q1 2024 vs Q1 2023) | Metric (in thousands) | Q1 2024 | Q1 2023 | % Change | | :--- | :--- | :--- | :--- | | **New recurring subscription sales** | $57,336 | $56,393 | 1.7% | | **Subscription cancellations** | $(37,769) | $(21,756) | 73.6% | | **Net new recurring subscription sales** | **$19,567** | **$34,637** | **(43.5%)** | Retention Rate by Segment (Q1) | Segment | 2024 | 2023 | | :--- | :--- | :--- | | **Index** | 93.2% | 96.4% | | **Analytics** | 93.5% | 94.0% | | **ESG and Climate** | 90.8% | 96.1% | | **All Other - Private Assets** | 92.2% | 92.1% | | **Total** | **92.8%** | **95.2%** | [Liquidity and Capital Resources](index=49&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains liquidity through cash from operations and a **$1.25 billion** revolving credit facility, remaining in compliance with debt covenants, while declaring a **$1.60** per share dividend and retaining **$845.7 million** for share repurchases - On January 26, 2024, the company entered into a Second Amended and Restated Credit Agreement, providing a **$1.25 billion** revolving credit facility maturing in 2029, with proceeds used to prepay outstanding Tranche A Term Loans[190](index=190&type=chunk) - As of March 31, 2024, the company was in compliance with its financial covenants, with a Consolidated Leverage Ratio of **2.56:1.00** (below the maximum of **4.25:1.00**) and a Consolidated Interest Coverage Ratio of **9.16:1.00** (above the minimum of **4.00:1.00**)[194](index=194&type=chunk) - As of March 31, 2024, **$845.7 million** of authorization remained under the 2022 stock repurchase program, with no open market repurchases made during Q1 2024[195](index=195&type=chunk) - On April 22, 2024, the Board of Directors declared a quarterly cash dividend of **$1.60** per share, payable on May 31, 2024[97](index=97&type=chunk)[196](index=196&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=54&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is primarily exposed to foreign currency risk, with **16.8%** of Q1 2024 revenues and **41.3%** of operating expenses subject to fluctuations, mitigated by forward contracts - In Q1 2024, **16.8%** of revenues were subject to foreign currency risk, primarily from billings in Euros (**41.3%**), British pounds (**33.3%**), and Japanese yen (**17.3%**)[205](index=205&type=chunk) - Approximately **41.3%** of operating expenses for Q1 2024 were denominated in foreign currencies, with significant exposure to the British pound, Indian rupee, Euro, Hungarian forint, Mexican peso, and Swiss franc[207](index=207&type=chunk) [Controls and Procedures](index=54&type=section&id=Item%204.%20Controls%20and%20Procedures) The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of March 31, 2024, with no material changes to internal control over financial reporting during the quarter - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective as of the end of the period[209](index=209&type=chunk) - No changes in internal control over financial reporting occurred during Q1 2024 that have materially affected, or are reasonably likely to materially affect, internal controls[210](index=210&type=chunk) Part II – Other Information [Legal Proceedings](index=55&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal proceedings, but management believes their outcomes will not materially affect the business, financial condition, or cash flows - Management believes that the disposition of currently pending legal matters will not have a material effect on MSCI's business, operating results, financial condition, or cash flows[212](index=212&type=chunk) [Risk Factors](index=55&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the risk factors previously disclosed in the company's 2023 Annual Report on Form 10-K have been reported - The company reports no material changes to the risk factors previously disclosed in its 2023 Form 10-K[213](index=213&type=chunk)[214](index=214&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=55&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company acquired **119,928** shares at an average price of **$583.92** in Q1 2024, primarily for tax obligations on vested restricted stock units, with **$845.7 million** remaining for repurchases Issuer Purchases of Equity Securities (Q1 2024) | Period | Total Shares Purchased | Average Price Paid Per Share | | :--- | :--- | :--- | | Jan 2024 | — | $— | | Feb 2024 | 119,652 | $584.00 | | Mar 2024 | 276 | $551.68 | | **Total** | **119,928** | **$583.92** | - The approximate dollar value of shares that may yet be purchased under the publicly announced plan is **$845.7 million** as of March 31, 2024[218](index=218&type=chunk) [Other Information](index=55&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during Q1 2024 - No directors or officers adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during Q1 2024[218](index=218&type=chunk) [Exhibits](index=56&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including corporate documents, credit agreements, and CEO/CFO certifications

For the quarter ended March 2024, MSCI (MSCI) reported revenue of $679.97 million, up 14.8% over the same period last year. EPS came in at $3.52, compared to $3.14 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $682.53 million, representing a surprise of -0.38%. The company delivered an EPS surprise of +2.33%, with the consensus EPS estimate being $3.44.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they c ...

MSCI (MSCI) came out with quarterly earnings of $3.52 per share, beating the Zacks Consensus Estimate of $3.44 per share. This compares to earnings of $3.14 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 2.33%. A quarter ago, it was expected that this maker of software tools to help portfolio managers make investment decisions would post earnings of $3.29 per share when it actually produced earnings of $3.68, delivering a sur ...

MSCI Reports Financial Results for First Quarter 2024 New York – April 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 March 31, 2024 ("first quarter 2024"). Exhibit 99.1 Financial and Operational Highlights for First Quarter 2024 (Note: Unless otherwise noted, percentage and other changes are relative to the three months ended ...

Investors are always looking for stocks that are poised to beat at earnings season and MSCI Inc. (MSCI) may be one such company. The firm has earnings coming up pretty soon, and events are shaping up quite nicely for their report.That is because MSCI is seeing favorable earnings estimate revision activity as of late, which is generally a precursor to an earnings beat. After all, analysts raising estimates right before earnings — with the most up-to-date information possible — is a pretty good indicator of s ...

Analysts on Wall Street project that MSCI (MSCI) will announce quarterly earnings of $3.44 per share in its forthcoming report, representing an increase of 9.6% year over year. Revenues are projected to reach $682.53 million, increasing 15.3% from the same quarter last year.Over the last 30 days, there has been an upward revision of 1.3% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts ove ...

MSCI (MSCI) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended March 2024. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on April 23. On the o ...

NEW YORK--(BUSINESS WIRE)--MSCI Inc. (“MSCI” or the “Company”) (NYSE: MSCI), a leading provider of critical decision support tools and services for the global investment community, announced today that members of management will participate in the following investor events: Henry Fernandez, Chairman and Chief Executive Officer, at the RBC Global Financial Institutions Conference 2024 on March 6, 2024 at 12:00 PM Eastern Time Andy Wiechmann, Chief Financial Officer, at the UBS Financial Services Conferen ...

MSCI Inc (NYSE: MSCI) is a prominent global provider of various financial instruments and services. Its offerings include equity, fixed income, and real estate indices alongside multi-asset portfolio analysis tools. Additionally, MSCI specializes in environmental, social, and governance (ESG) and climate-focused products, contributing to its comprehensive offerings in the finance sector.MSCI has computed its global equity indices since 1969, with the MSCI World being a notable example. In 2018, MSCI signifi ...