Financial Data and Key Metrics Changes - The company reported a strong underlying revenue growth of 7% for the first nine months of the year, with an unchanged full-year outlook at both the group level and for each of the four business areas [2][4] - In the risk segment, underlying revenue growth was 8%, while business services, which accounts for over 40% of divisional revenue, also showed strong growth driven by Financial Crime Compliance and Fraud and Identity solutions [2][3] - The STM segment experienced a 5% underlying revenue growth, supported by new product introductions and strong article submission growth of over 20% [3][4] - The legal segment reported a 9% underlying revenue growth, with double-digit growth in law firms and corporate legal driven by the success of Lexis+AI [4][5] Business Line Data and Key Metrics Changes - Risk: Underlying revenue growth of 8%, with strong performance in Financial Crime Compliance and Fraud and Identity solutions [2][3] - Business Services: Continued strong growth, particularly in Financial Crime Compliance [2] - STM: Underlying revenue growth of 5%, with significant growth in databases and electronic reference tools [3] - Legal: Underlying revenue growth of 9%, with strong renewals and new sales across all key segments [4] Market Data and Key Metrics Changes - The legal industry is currently in relatively good shape, with law firms showing interest in leveraging new tools for competitive advantage [74] - The company maintains a strong position in the auto insurance market, continuously innovating and adding value without raising prices on existing tools [72] Company Strategy and Development Direction - The company is focused on a higher quality growth profile, driven by a shift towards higher growth analytics and decision tools [2][4] - The strategy includes integrating AI solutions across all relevant touchpoints in the legal ecosystem, enhancing customer accessibility and value [10][51] - The company aims to leverage AI-driven digital tools to add value in both academic and applied research, with a gradual increase in STM growth potential [36][37] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term structural growth of the Financial Crime Compliance market, driven by innovation and technology [8][9] - The company anticipates gradual growth in the STM segment, acknowledging the complexity and regulatory nature of the industry [36][37] - Management noted that the legal industry is receptive to new product launches, indicating a positive sales cycle [75] Other Important Information - The company has established partnerships with around 25 legal technology vendors to enhance the accessibility of its AI solutions [10] - The company continues to focus on organic development while remaining open to acquisitions that align with its growth strategy [77] Q&A Session Summary Question: Growth in Financial Crime and Compliance - Management highlighted strong growth in Financial Crime Compliance driven by innovation and a long-term structural growth market [8][9] Question: Legal Product Sales - Management clarified that Protégé is designed to complement existing tools like Harvey, allowing law firms to utilize multiple solutions [10][13] Question: STM Solution Launch - The STM solution is positioned as a next-generation upgrade to ScienceDirect AI, with separate pricing and capabilities [19][20] Question: Legal Industry Financial State - Management indicated that the legal industry is in good shape, with law firms interested in leveraging new tools for competitive advantage [74][75] Question: Capital Allocation Strategy - Management confirmed a focus on organic growth, with buybacks and potential acquisitions considered to enhance development [77]

Financial Data and Key Metrics Changes - The company reported a strong underlying revenue growth of 7% for the first nine months of the year, with an unchanged full-year outlook at both the group level and for each of the four business areas [2][4] - In the risk segment, underlying revenue growth was 8%, while business services, which accounts for over 40% of divisional revenue, also showed strong growth driven by financial crime compliance and fraud solutions [2][3] - The STM segment experienced a 5% underlying revenue growth, supported by new product introductions and strong article submission growth of over 20% [3][4] Business Line Data and Key Metrics Changes - In the insurance sector, which represents around 40% of divisional revenue, strong growth was attributed to the expansion of solution sets and positive market factors [3] - The legal division saw an underlying revenue growth of 9%, with double-digit growth in law firms and corporate legal driven by the success of Lexis+ AI and the Protégé product [4][25] - The exhibitions segment also reported an 8% underlying revenue growth, reflecting improved event portfolio performance and digital initiatives [4] Market Data and Key Metrics Changes - The company continues to see positive momentum across all segments, indicating a healthy market environment for its offerings [2][4] - The legal industry is described as being in relatively good shape, with law firms interested in leveraging new tools for competitive advantage [75] Company Strategy and Development Direction - The company is focused on a long-term growth trajectory with a higher quality growth profile, driven by a shift towards higher growth analytics and decision tools [2][4] - There is an emphasis on integrating AI solutions across all business lines to enhance customer value and improve operational efficiency [10][39] - The company aims to maintain a competitive edge by continuously innovating and introducing new products that add value to customers [72][77] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term structural growth of the financial crime compliance market, indicating that this growth is expected to continue [8][9] - The company is optimistic about the potential of AI-driven tools to enhance value for customers in both academic and applied research sectors, although growth in the STM segment may take longer to materialize [36][37] - Management noted that the legal industry is receptive to new product launches, which bodes well for future sales [75] Other Important Information - The company maintains a strong position in the auto insurance market, focusing on adding value through innovation rather than raising prices [72] - The company has a diverse portfolio of journals and continues to adapt to changes in open access and copyright regulations [40][49] Q&A Session Summary Question: Growth in financial crime and compliance - Management highlighted strong growth in financial crime compliance driven by innovation and a long-term structural growth market [8][9] Question: Legal product differentiation - Management clarified that Lexis+ AI and Protégé can coexist in law firms, enhancing their legal research capabilities [10][13] Question: STM solution launch timing - Management confirmed that the new STM solution is expected to be available for purchase early next year, with a focus on integrating it with existing products [19][20] Question: Legal industry financial state - Management indicated that the legal industry is in good shape, with law firms interested in leveraging new tools for competitive advantage [75] Question: Capital allocation strategy - Management stated that the focus remains on organic development, with buybacks used to balance capital structure while considering M&A opportunities that align with growth strategies [77]

Financial Data and Key Metrics Changes - The company reported a strong underlying revenue growth of 7% in the first nine months of the year, with an unchanged full-year outlook at both the group level and for each of the four business areas [1][3] - In the risk segment, underlying revenue growth was 8%, while business services, which accounts for over 40% of divisional revenue, also showed strong growth driven by financial crime compliance and fraud solutions [1][2] - The legal division experienced a 9% underlying revenue growth, with double-digit growth in law firms and corporate legal segments [2][3] Business Line Data and Key Metrics Changes - In business services, strong growth was attributed to financial crime compliance and fraud and identity solutions, with robust new sales [1][2] - The insurance segment, representing around 40% of divisional revenue, also saw strong growth due to the expansion of solution sets and positive market factors [2] - The STM segment had an underlying revenue growth of 5%, supported by new product introductions and renewals, with databases and electronic reference tools showing strong performance [2][3] Market Data and Key Metrics Changes - The legal segment's growth was driven by the success of Lexis+ AI and the rapid adoption of Protégé, the next-generation AI legal assistant [3] - The exhibitions segment reported an 8% underlying revenue growth, reflecting improved growth profiles and progress on digital initiatives [3] Company Strategy and Development Direction - The company is focusing on a higher quality growth profile, driven by a shift towards higher growth analytics and decision tools [1][3] - There is an emphasis on integrating AI solutions across various platforms to enhance customer accessibility and value [9][10] - The company aims to leverage AI-driven tools to add value in academic and applied research, with a gradual approach to growth in the STM segment [30][31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term structural growth of the financial crime compliance market, driven by innovation and technology [7][8] - The legal industry is currently in good shape, with customers interested in leveraging new tools for competitive advantage [67] - The company does not foresee any material impact from economic cycles on the growth trajectory of its STM division due to its global and diverse nature [26][27] Other Important Information - The company maintains a focus on organic development while being open to acquisitions that can enhance growth [71] - The legal division's renewal discussions are ongoing, with a significant portion of renewals now involving generative AI solutions [55][56] Q&A Session Summary Question: Growth in financial crime and compliance - Management noted strong growth in financial crime compliance due to ongoing innovation and a long-term structural growth market [6][7] Question: Differences between Protégé and Harvey - Management clarified that Protégé is designed to integrate with various legal tech tools, including Harvey, and aims to enhance customer accessibility [9][10] Question: New STM solution launch timing - The STM solution is expected to be available for purchase early next year, with a focus on being an upgrade to existing products [14][16] Question: Legal industry financial state and budget capacity - The legal industry is in relatively good shape, with customers actively seeking new tools to enhance their competitive edge [67] Question: Capital allocation strategy - The company plans to balance capital structure through buybacks while focusing on organic growth opportunities [71]

Financial Performance - RELX Group reported strong financial results in H1 2025, with underlying revenue growth of +7%[7, 30] and underlying adjusted operating profit growth of +9%[7, 30] - Adjusted EPS growth at constant currency was +10%[7, 30], and the interim dividend saw a growth of +7%[7] - The adjusted operating profit margin increased to 348%[30, 33] - Adjusted cash flow conversion was strong at 100%[30] Segment Performance - Risk segment revenue grew by +8%[10, 31] and adjusted operating profit by +9%[12, 32] - Scientific, Technical & Medical (STM) segment revenue grew by +5%[10, 31] and adjusted operating profit by +7%[15, 32] - Legal segment revenue grew by +9%[10, 31] and adjusted operating profit by +11%[18, 32] - Exhibitions segment revenue grew by +8%[10, 23] and adjusted operating profit by +9%[23, 32] Strategic Direction and Outlook - RELX expects continued strong underlying revenue growth and adjusted operating profit growth for the full year 2025[13, 16, 19, 23, 39] - The company is focused on developing sophisticated information-based analytics and decision tools[28] - Share buybacks amounted to £1 billion[30]

Industry Overview - The Zacks Internet - Content industry is facing challenges due to persistent inflation and higher interest rates, negatively impacting ad spending, which is the primary revenue source for industry participants [1][4] - Despite these challenges, there is solid demand for digital offerings, with increasing importance placed on video content and cloud-based applications [1][3] - The proliferation of AI and Generative AI is aiding industry players, with companies like RELX and DHI Group expanding their presence across social media, display, connected TV, and search [1][2] Trends and Challenges - The industry is experiencing rapid technological change and evolving consumer behavior, driving demand for mobile, digital, and cloud-based offerings [3] - Advertising and subscriptions remain major revenue sources, but macroeconomic challenges are expected to hurt ad spending in the near term [4] - Regulatory pressures, particularly in China and the EU, are increasing, with regulations affecting direct advertising and data protection [5] Industry Performance - The Zacks Internet - Content industry ranks 203, placing it in the bottom 17% of over 250 Zacks industries, indicating dull near-term prospects [6][7] - The aggregate earnings outlook is negative, with a 3.4% decrease in the Zacks Consensus Estimate for the industry's 2025 earnings since May 31, 2024 [8] Stock Performance - The industry has outperformed the broader Zacks Computer and Technology sector and the S&P 500 over the past year, returning 20.9% compared to 10% for the S&P 500 and 8% for the sector [11] - The current trailing 12-month price-to-sales ratio for the industry is 6.92X, higher than the S&P 500's 5.29X and the sector's 7.14X [13] Notable Companies - RELX, a Zacks Rank 2 (Buy) company, is benefiting from strong demand for Financial Crime Compliance and Digital Fraud and Identity Solutions, with a recent earnings estimate increase to $1.72 per share for 2025 [17][18] - DHI Group, also a Zacks Rank 2 stock, is seeing benefits from improved offerings and cost savings, with a 4-cent increase in the earnings estimate to 15 cents per share for 2025 [21][23]

Core Insights - LexisNexis Legal & Professional has launched the InterAction+ Cloud API and expanded the InterAction+ Partner Network to enhance integration options for clients, driving transparency, automation, and growth [1][5] Group 1: InterAction+ Cloud API - The InterAction+ Cloud API provides organizations with direct access to high-quality data through a scalable cloud-based API, improving performance and facilitating two-way integrations for managing contacts and activities [2] - This API streamlines workflows and enhances relationship insights, allowing for better management of client interactions [2] Group 2: Partner Network Expansion - The expanded InterAction+ Partner Network is a strategic alliance program aimed at collaborating with third-party software solutions and data providers to deliver seamless integrations for clients [3] - This network enhances the capabilities of InterAction+ by enabling broader access to tools and data sources [5] Group 3: Microsoft 365 Integration - A significant focus of InterAction+ is on creating solutions for clients using Microsoft 365 apps, including embedding CRM data into workflows across Outlook, Excel, and Word [4] - Future integrations will include a Microsoft Power Platform connector and additional planned integrations with LinkedIn and Microsoft 365 Copilot [4] Group 4: Client Benefits - Clients using the InterAction+ Cloud API and expanded Partner Network can expect improved relationship intelligence and visibility into growth opportunities [5] - Key benefits include centralized data access, smarter campaign targeting, time-saving automation, and improved compliance and accuracy [8]