RELX(US:RELX)2025-10-23 08:32Financial 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]