Morningstar(MORN) - 2024 Q4 - Annual Results

Revenue Growth - Reported revenue for Q4 2024 increased 9.7% to $591.0 million, with organic revenue growth of 10.6%[3] - Full-year 2024 revenue increased 11.6% to $2.3 billion, with organic revenue growth of 11.8%[7] - Total revenue for the year ended December 31, 2024, reached $2,275.1 million, an 11.6% increase compared to $2,038.6 million in 2023[48] - Organic revenue for the year ended December 31, 2024, reached $2,272.5 million, reflecting an 11.8% growth compared to $2,033.3 million in 2023[58] Profitability - Operating income rose 78.2% to $168.2 million, including a $64.0 million gain from the sale of US TAMP assets[3] - Consolidated net income for the year ended December 31, 2024, was $369.9 million, a 162.2% increase from $141.1 million in 2023[44] - Consolidated net income for Q4 2024 was $116.9 million, a 59% increase from $73.5 million in Q4 2023[47] - Adjusted operating income for the year increased by 51.2% to $493.8 million from $326.5 million in 2023[58] Earnings Per Share - Diluted net income per share for Q4 2024 increased 58.5% to $2.71, while adjusted diluted net income per share rose 8.6% to $2.14[10] - Adjusted diluted net income per share for the year was $7.89, a 54.1% increase from $5.12 in 2023[59] Cash Flow - Cash provided by operating activities for the full year increased 87.0% to $591.6 million, and free cash flow increased 127.5% to $448.9 million[34] - Cash provided by operating activities for Q4 2024 was $153.4 million, up from $137.8 million in Q4 2023[47] - Free cash flow for the year ended December 31, 2024, was $448.9 million, representing a 127.5% increase from $197.3 million in 2023[59] Assets and Liabilities - Reported assets under management and advisement (AUMA) increased 12.3% to $62.3 billion, supported by strong market performance[25] - Total current assets increased to $1,014.1 million as of December 31, 2024, from $815.7 million in 2023[46] - Cash and cash equivalents rose to $502.7 million in 2024, compared to $337.9 million in 2023[46] - Total liabilities decreased to $1,930.3 million in 2024 from $2,075.6 million in 2023[46] - The company’s total equity increased to $1,618.6 million as of December 31, 2024, up from $1,327.8 million in 2023[46] Business Segments Performance - Morningstar Credit revenue grew 33.8% to $82.3 million, driven by strong performance in commercial mortgage-backed securities[21] - PitchBook revenue increased 12.5% to $162.5 million, with licensed users growing 16.4%[19] - Morningstar Data and Analytics revenue grew by 5.5% year-over-year to $788.1 million in 2024, with an adjusted operating margin of 45.1%[48] - PitchBook revenue increased by 12.0% year-over-year to $618.4 million in 2024, with adjusted operating income rising by 25.9%[48] - Morningstar Credit revenue surged by 35.1% year-over-year to $291.1 million in 2024, despite a decrease in adjusted operating margin to 26.0%[48] Debt and Share Repurchase - Morningstar reduced its debt by $273.8 million net in 2024 and repurchased $11.6 million of its shares[36] - The company repurchased $11.6 million in common shares during the year, compared to $1.4 million in 2023[47] Operational Efficiency - The company reported an operating margin of 28.5% for Q4 2024, up 11.0 percentage points from 17.5% in Q4 2023[44] - Consolidated operating margin improved to 28.5% in Q4 2024, up 11.0 percentage points from 17.5% in Q4 2023[59] Future Outlook - The company aims to maintain growth across its businesses despite potential geopolitical and regulatory challenges[41]