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    MSCI Reports Financial Results for Fourth Quarter and Full Year 2024

    1/29/25 6:45:00 AM ET
    $MSCI
    Business Services
    Consumer Discretionary
    Get the next $MSCI alert in real time by email

    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 December 31, 2024 ("fourth quarter 2024") and full year ended December 31, 2024 ("full year 2024").

    Financial and Operational Highlights for Fourth Quarter 2024

    (Note: Unless otherwise noted, percentage and other changes are relative to the three months ended December 31, 2023 ("fourth quarter 2023") and Run Rate percentage changes are relative to December 31, 2023).

    • Operating revenues of $743.5 million, up 7.7%; Organic operating revenue growth of 7.4%
    • Recurring subscription revenues up 7.5%; Asset-based fees up 20.8%
    • Operating margin of 54.5%; Adjusted EBITDA margin of 60.8%
    • Diluted EPS of $3.90, down 23.1%; Adjusted EPS of $4.18, up 13.6%
    • New recurring subscription sales down by 0.9%; Organic recurring subscription Run Rate growth of 7.9%; Retention Rate of 93.1%
    • In full year 2024 and through January 28, 2025, a total of $865.5 million or 1,599,271 shares were repurchased at an average repurchase price of $541.20
    • In fourth quarter 2024, dividends of $124.8 million were paid to shareholders; Cash dividend of $1.80 per share declared by MSCI Board of Directors for first quarter 2025, an increase of 12.5%

     

     

    Three Months Ended

     

    Year Ended

     

     

    Dec. 31,

     

    Dec. 31,

     

     

     

    Dec. 31,

     

    Dec. 31,

     

     

    In thousands, except per share data (unaudited)

     

    2024

     

    2023

     

    % Change

     

    2024

     

    2023

     

    % Change

    Operating revenues

     

    $

    743,509

     

    $

    690,106

     

    7.7%

     

    $

    2,856,128

     

    $

    2,528,920

     

    12.9%

    Operating income

     

    $

    405,194

     

    $

    370,745

     

    9.3%

     

    $

    1,528,518

     

    $

    1,384,609

     

    10.4%

    Operating margin %

     

     

    54.5%

     

     

    53.7%

     

     

     

     

    53.5%

     

     

    54.8%

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Net income

     

    $

    305,515

     

    $

    403,380

     

    (24.3)%

     

    $

    1,109,128

     

    $

    1,148,592

     

    (3.4)%

     

     

     

     

     

     

     

     

     

     

     

     

     

    Diluted EPS

     

    $

    3.90

     

    $

    5.07

     

    (23.1)%

     

    $

    14.05

     

    $

    14.39

     

    (2.4)%

    Adjusted EPS

     

    $

    4.18

     

    $

    3.68

     

    13.6%

     

    $

    15.20

     

    $

    13.52

     

    12.4%

     

     

     

     

     

     

     

     

     

     

     

     

     

    Adjusted EBITDA

     

    $

    452,254

     

    $

    414,627

     

    9.1%

     

    $

    1,716,484

     

    $

    1,522,951

     

    12.7%

    Adjusted EBITDA margin %

     

     

    60.8%

     

     

    60.1%

     

     

     

     

    60.1%

     

     

    60.2%

     

     

    "In 2024, MSCI delivered strong financial metrics that once again demonstrated our scale and leadership in servicing the global investment ecosystem. Fourth-quarter highlights included our best-ever recurring sales in Index, 15% Fixed Income run-rate growth across our product lines, and 15% asset-based fees run-rate growth. This performance reflects our attractive business model and the benefits of the investments we've made across our large and broad opportunity set," said Henry A. Fernandez, Chairman and CEO of MSCI.

    "In 2025 and beyond, MSCI is increasingly well positioned to expand our footprint among established and newer client segments alike, thanks to our continued investment in data, models, and technology. We believe these advantages can help us drive compounding growth across market cycles," Fernandez added.

    Fourth Quarter Consolidated Results

    Operating Revenues: Operating revenues were $743.5 million, up 7.7%. Organic operating revenue growth was 7.4%. The $53.4 million increase was driven by $37.9 million in higher recurring subscription revenues and $30.2 million in higher asset-based fees, partially offset by a $14.7 million decline in non-recurring revenues primarily related to the Index segment.

    Run Rate and Retention Rate: Total Run Rate at December 31, 2024 was $2,921.7 million, up 8.8%. Recurring subscription Run Rate increased by $147.8 million, and asset-based fees Run Rate increased by $87.7 million. Organic recurring subscription Run Rate growth was 7.9%. Retention Rate in fourth quarter 2024 was 93.1%, compared to 93.6% in fourth quarter 2023.

    Expenses: Total operating expenses were $338.3 million, up 5.9%, including $4.0 million of operating expenses associated with Carbon Markets (formerly known as Trove Research Ltd), Fabric RQ Inc. ("Fabric") and Foxberry Ltd ("Foxberry").

    Adjusted EBITDA expenses were $291.3 million, up 5.7%, primarily reflecting higher compensation and incentive compensation expenses related to higher headcount to support business growth as well as increases in non-compensation costs, primarily reflecting higher professional fees, information technology and market data costs.

    Adjusted EBITDA expenses also included $2.7 million of expenses associated with Carbon Markets, Fabric and Foxberry. Approximately $1.3 million of depreciation and amortization related to these acquisitions was excluded from Adjusted EBITDA expenses.

    Total operating expenses excluding the impact of foreign currency exchange rate fluctuations ("ex-FX") and adjusted EBITDA expenses ex-FX increased 6.5% and 6.3%, respectively.

    Operating Income: Operating income was $405.2 million, up 9.3%. Operating income margin in fourth quarter 2024 was 54.5%, compared to 53.7% in fourth quarter 2023.

    Headcount: As of December 31, 2024, we had 6,132 employees, reflecting a 5.8% increase, with 30.9% and 69.1% of employees located in developed market and emerging market locations, respectively.

    Other Expense (Income), Net: Other expense (income), net was $41.8 million in fourth quarter 2024, as compared to ($97.1) million for the fourth quarter 2023, primarily driven by the non-taxable one-time gain on the remeasurement of our equity method investment in The Burgiss Group, LLC ("Burgiss") of $143.0 million in the fourth quarter of 2023.

    Income Taxes: In the fourth quarter 2024, the effective tax rate was 15.9% compared to 13.8% in the fourth quarter 2023. Fourth quarter 2024 has the benefit of a favorable change to the state effective tax rate as well as the benefit of one-time audit settlements. Fourth quarter 2023 has the benefit of a non-taxable one-time gain on the acquisition of Burgiss and certain other one-time discrete items.

    Net Income: As a result of the factors described above, net income was $305.5 million, down 24.3%.

    Adjusted EBITDA: Adjusted EBITDA was $452.3 million, up 9.1%. Adjusted EBITDA margin in fourth quarter 2024 was 60.8%, compared to 60.1% in fourth quarter 2023.

    Index Segment:

    Table 1A: Results (unaudited)

     

     

    Three Months Ended

     

    Year Ended

     

     

    Dec. 31,

     

    Dec. 31,

     

     

     

    Dec. 31,

     

    Dec. 31,

     

     

    In thousands

     

    2024

     

    2023

     

    % Change

     

    2024

     

    2023

     

    % Change

    Operating revenues:

     

     

     

     

     

     

     

     

     

     

     

     

    Recurring subscriptions

     

    $

    228,438

     

    $

    210,737

     

    8.4%

     

    $

    882,367

     

    $

    814,582

     

    8.3%

    Asset-based fees

     

     

    175,339

     

     

    145,148

     

    20.8%

     

     

    657,501

     

     

    557,502

     

    17.9%

    Non-recurring

     

     

    16,422

     

     

    32,110

     

    (48.9)%

     

     

    56,277

     

     

    79,731

     

    (29.4)%

    Total operating revenues

     

     

    420,199

     

     

    387,995

     

    8.3%

     

     

    1,596,145

     

     

    1,451,815

     

    9.9%

    Adjusted EBITDA expenses

     

     

    97,043

     

     

    89,446

     

    8.5%

     

     

    374,091

     

     

    344,842

     

    8.5%

    Adjusted EBITDA

     

    $

    323,156

     

    $

    298,549

     

    8.2%

     

    $

    1,222,054

     

    $

    1,106,973

     

    10.4%

    Adjusted EBITDA margin %

     

     

    76.9%

     

     

    76.9%

     

     

     

     

    76.6%

     

     

    76.2%

     

     

    Index operating revenues were $420.2 million, up 8.3%. The $32.2 million increase was driven by $30.2 million in higher asset-based fees and $17.7 million in higher recurring subscription revenues, partially offset by a $15.7 million decrease in non-recurring revenues. Organic operating revenue growth for Index was 8.3%.

    The growth in recurring subscription revenues was primarily driven by growth from market-cap weighted Index products and factor, ESG and climate index products.

    The growth in revenues attributed to asset-based fees were primarily driven by increased average AUM in ETFs linked to MSCI equity indexes and non-ETF indexed funds linked to MSCI indexes.

    Non-recurring revenues were $16.4 million, down 48.9%. The $15.7 million decrease was primarily driven by $16.0 million recognized in the fourth quarter of 2023 related to one-time fees for unlicensed usage of our content in historical periods.

    Index Run Rate as of December 31, 2024 was $1.6 billion, up 11.1%. The $160.6 million increase was comprised of a $87.7 million increase in asset-based fees and a $72.9 million increase in recurring subscription Run Rate. The increase in asset-based fees Run Rate primarily reflected growth in AUM in ETFs linked to MSCI equity indexes and non-ETF indexed funds linked to MSCI indexes. The increase in recurring subscription Run Rate was primarily driven by growth from market cap-weighted as well as custom Index and special packages products. The increase reflected growth across all regions. Organic recurring subscription Run Rate growth for Index was 8.4%.

    Analytics Segment:

    Table 1B: Results (unaudited)

     

     

    Three Months Ended

     

    Year Ended

     

     

    Dec. 31,

     

    Dec. 31,

     

     

     

    Dec. 31,

     

    Dec. 31,

     

     

    In thousands

     

    2024

     

    2023

     

    % Change

     

    2024

     

    2023

     

    % Change

    Operating revenues:

     

     

     

     

     

     

     

     

     

     

     

     

    Recurring subscriptions

     

    $

    167,781

     

    $

    160,015

     

    4.9%

     

    $

    658,610

     

    $

    603,291

     

    9.2%

    Non-recurring

     

     

    4,971

     

     

    4,722

     

    5.3%

     

     

    16,479

     

     

    12,665

     

    30.1%

    Total operating revenues

     

     

    172,752

     

     

    164,737

     

    4.9%

     

     

    675,089

     

     

    615,956

     

    9.6%

    Adjusted EBITDA expenses

     

     

    88,628

     

     

    87,572

     

    1.2%

     

     

    346,794

     

     

    341,081

     

    1.7%

    Adjusted EBITDA

     

    $

    84,124

     

    $

    77,165

     

    9.0%

     

    $

    328,295

     

    $

    274,875

     

    19.4%

    Adjusted EBITDA margin %

     

     

    48.7%

     

     

    46.8%

     

     

     

     

    48.6%

     

     

    44.6%

     

     

    Analytics operating revenues were $172.8 million, up 4.9%. The $8.0 million increase was driven by growth from recurring subscriptions related to both Equity Analytics and Multi-Asset Class products. Organic operating revenue growth for Analytics was 4.8%.

    Analytics Run Rate as of December 31, 2024, was $698.4 million, up 5.5%. The increase of $36.5 million was driven by growth in both Equity Analytics and Multi-Asset Class products, and reflected growth across all regions and client segments. Organic recurring subscription Run Rate growth for Analytics was 6.5%.

    ESG and Climate Segment:

    Table 1C: Results (unaudited)

     

     

    Three Months Ended

     

    Year Ended

     

     

    Dec. 31,

     

    Dec. 31,

     

     

     

    Dec. 31,

     

    Dec. 31,

     

     

    In thousands

     

    2024

     

    2023

     

    % Change

     

    2024

     

    2023

     

    % Change

    Operating revenues:

     

     

     

     

     

     

     

     

     

     

     

     

    Recurring subscriptions

     

    $

    82,881

     

    $

    74,828

     

    10.8%

     

    $

    318,835

     

    $

    282,351

     

    12.9%

    Non-recurring

     

     

    2,338

     

     

    1,425

     

    64.1%

     

     

    7,766

     

     

    5,217

     

    48.9%

    Total operating revenues

     

     

    85,219

     

     

    76,253

     

    11.8%

     

     

    326,601

     

     

    287,568

     

    13.6%

    Adjusted EBITDA expenses

     

     

    55,521

     

     

    50,689

     

    9.5%

     

     

    221,893

     

     

    195,890

     

    13.3%

    Adjusted EBITDA

     

    $

    29,698

     

    $

    25,564

     

    16.2%

     

    $

    104,708

     

    $

    91,678

     

    14.2%

    Adjusted EBITDA margin %

     

     

    34.8%

     

     

    33.5%

     

     

     

     

    32.1%

     

     

    31.9%

     

     

    ESG and Climate operating revenues were $85.2 million, up 11.8%. The $9.0 million increase was primarily driven by growth from recurring subscriptions related to Ratings, Climate and Screening products. Organic operating revenue growth for ESG and Climate was 9.0%.

    ESG and Climate Run Rate as of December 31, 2024, was $343.7 million, up 7.6%. The $24.4 million increase primarily reflects growth from Ratings, Climate and Screening products with contributions across all regions. Organic recurring subscription Run Rate growth for ESG and Climate was 10.1%.

    All Other – Private Assets:

    Table 1D: Results (unaudited)

     

     

    Three Months Ended

     

    Year Ended

     

     

    Dec. 31,

     

    Dec. 31,

     

     

     

    Dec. 31,

     

    Dec. 31,

     

     

    In thousands

     

    2024

     

    2023

     

    % Change

     

    2024

     

    2023

     

    % Change

    Operating revenues:

     

     

     

     

     

     

     

     

     

     

     

     

    Recurring subscriptions

     

    $

    64,199

     

    $

    59,774

     

    7.4%

     

    $

    254,633

     

    $

    171,066

     

    48.9%

    Non-recurring

     

     

    1,140

     

     

    1,347

     

    (15.4)%

     

     

    3,660

     

     

    2,515

     

    45.5%

    Total operating revenues

     

     

    65,339

     

     

    61,121

     

    6.9%

     

     

    258,293

     

     

    173,581

     

    48.8%

    Adjusted EBITDA expenses

     

     

    50,063

     

     

    47,772

     

    4.8%

     

     

    196,866

     

     

    124,156

     

    58.6%

    Adjusted EBITDA

     

    $

    15,276

     

    $

    13,349

     

    14.4%

     

    $

    61,427

     

    $

    49,425

     

    24.3%

    Adjusted EBITDA margin %

     

     

    23.4%

     

     

    21.8%

     

     

     

     

    23.8%

     

     

    28.5%

     

     

    All Other – Private Assets operating revenues, which reflect the Real Assets and the Private Capital Solutions operating segments, were $65.3 million, up 6.9%. The $4.2 million increase was primarily driven by growth from recurring subscriptions in both Private Capital Solutions and Real Assets. The increase in Private Capital Solutions was driven by growth from Transparency Data and Total Plan. The increase in Real Assets was primarily driven by growth from Index Intel and Performance Insights products. Organic operating revenue growth for All Other – Private Assets was 6.7%.

    All Other – Private Assets Run Rate, which reflects the Real Assets and the Private Capital Solutions operating segments, was $266.7 million as of December 31, 2024, up 5.6%. The increase of $14.0 million was primarily driven by growth from Private Capital Solutions. The growth in Private Capital Solutions Run Rate was primarily driven by growth from Transparency and Universe Data products and reflected growth across all regions. Organic recurring subscription Run Rate growth for All Other – Private Assets was 6.8%.

    Select Balance Sheet Items and Capital Allocation

    Cash Balances and Outstanding Debt: Cash and cash equivalents was $409.4 million as of December 31, 2024. MSCI typically seeks to maintain minimum cash balances globally of approximately $225.0 million to $275.0 million for general operating purposes.

    Total principal amount of debt outstanding as of December 31, 2024 was $4.5 billion. The total debt to net income ratio (based on trailing twelve months net income) was 4.1x. The total debt to adjusted EBITDA ratio (based on trailing twelve months adjusted EBITDA) was 2.6x.

    MSCI seeks to maintain total debt to adjusted EBITDA in a target range of 3.0x to 3.5x.

    Capex and Cash Flow: Capex was $36.0 million, and net cash provided by operating activities increased by 10.7% to $430.6 million, primarily reflecting higher cash collections from customers, partially offset by higher cash expenses paid in the quarter. Free cash flow was up 7.5% to $394.7 million.

    Share Count and Share Repurchases: Weighted average diluted shares outstanding were 78.4 million in fourth quarter 2024, down 1.4% year-over-year. Total shares outstanding as of December 31, 2024 were 77.7 million. A total of $1.5 billion remains on the outstanding share repurchase authorization as of January 28, 2025.

    Dividends: Approximately $124.8 million in dividends were paid to shareholders in fourth quarter 2024. On January 28, 2025, the MSCI Board of Directors declared a cash dividend of $1.80 per share for first quarter 2025, payable on February 28, 2025 to shareholders of record as of the close of trading on February 14, 2025.

    Full-Year 2025 Guidance

    MSCI's guidance for the year ending December 31, 2025 ("Full-Year 2025") is based on assumptions about a number of factors, in particular related to macroeconomic factors and the capital markets. These assumptions are subject to uncertainty, and actual results for the year could differ materially from our current guidance, including as a result of the uncertainties, risks and assumptions discussed in the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of our Annual Report on Form 10-K, as updated in quarterly reports on Form 10-Q and current reports on Form 8-K filed or furnished with the SEC. See "Forward-Looking Statements" below.

    Guidance Item

    Guidance for Full-Year 2025

    Operating Expense

    $1,405 to $1,445 million

    Adjusted EBITDA Expense

    $1,220 to $1,250 million

    Interest Expense

    (including amortization of financing fees)(1)

    $182 to $186 million

    Depreciation & Amortization Expense

    $185 to $195 million

    Effective Tax Rate

    17.5% to 20.0%

    Capital Expenditures

    $115 to $125 million

    Net Cash Provided by Operating Activities

    $1,525 to $1,575 million

    Free Cash Flow

    $1,400 to $1,460 million

     

    (1) A portion of our annual interest expense is from our variable rate indebtedness under our Revolving Credit Facility, while the majority is from fixed rate senior unsecured notes. Changes to the secured overnight funding rate ("SOFR") and indebtedness levels can cause our annual interest expense to vary.

    Conference Call Information

    MSCI's senior management will review the fourth quarter and full year 2024 results on Wednesday, January 29, 2025 at 11:00 AM Eastern Time. To listen to the live event via webcast, visit the events and presentations section of MSCI's Investor Relations website, https://ir.msci.com/events-and-presentations. Participants who wish to join via telephone can click here to register in advance, and will receive an email confirmation with a unique PIN to access the conference call. The earnings call webcast will include an accompanying slide presentation that can be accessed through MSCI's Investor Relations website.

    About MSCI Inc.

    MSCI is a leading provider of critical decision support tools and services for the global investment community. With over 50 years of expertise in research, data and technology, we power better investment decisions by enabling clients to understand and analyze key drivers of risk and return and confidently build more effective portfolios. We create industry-leading research-enhanced solutions that clients use to gain insight into and improve transparency across the investment process. To learn more, please visit www.msci.com. MSCI#IR

    Forward-Looking Statements

    This earnings release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including without limitation, MSCI's Full-Year 2025 guidance. These forward-looking statements relate to future events or to future financial performance and involve underlying assumptions, as well as known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these statements. In some cases, you can identify forward-looking statements by the use of words such as "may," "could," "expect," "intend," "plan," "seek," "anticipate," "believe," "estimate," "predict," "potential" or "continue," or the negative of these terms or other comparable terminology. You should not place undue reliance on forward-looking statements because they involve known and unknown risks, uncertainties and other factors that are, in some cases, beyond MSCI's control and that could materially affect actual results, levels of activity, performance or achievements.

    Other factors that could materially affect actual results, levels of activity, performance or achievements can be found in MSCI's Annual Report on Form 10-K for the fiscal year ended December 31, 2023 filed with the Securities and Exchange Commission ("SEC") on February 9, 2024 and in quarterly reports on Form 10-Q and current reports on Form 8-K filed or furnished with the SEC. If any of these risks, uncertainties or other matters materialize, or if MSCI's underlying assumptions prove to be incorrect, actual results may vary significantly from what MSCI projected. Any forward-looking statement in this earnings release reflects MSCI's current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to MSCI's operations, results of operations, growth strategy and liquidity. MSCI assumes no obligation to publicly update or revise these forward-looking statements for any reason, whether as a result of new information, future events, or otherwise, except as required by law.

    Website and Social Media Disclosure

    MSCI uses its investor relations website ir.msci.com and social media outlets, such as LinkedIn or X (@MSCI_Inc), as channels of distribution of company information. The information MSCI posts through these channels may be deemed material. Accordingly, investors should monitor these channels, in addition to following MSCI's press releases, SEC filings and public conference calls and webcasts. In addition, you may automatically receive email alerts and other information about MSCI when you enroll your email address by visiting the "Email Alerts" section of MSCI's Investor Relations homepage at http://ir.msci.com/email-alerts. The contents of MSCI's website, including its quarterly updates, blog, podcasts and social media channels are not, however, incorporated by reference into this earnings release.

    Notes Regarding the Use of Operating Metrics

    MSCI has presented supplemental key operating metrics as part of this earnings release, including Retention Rate, Run Rate, subscription sales, subscription cancellations and non-recurring sales.

    Retention Rate is an important metric because subscription cancellations decrease our Run Rate and ultimately our future operating revenues over time. The annual Retention Rate represents the retained subscription Run Rate (subscription Run Rate at the beginning of the fiscal year less actual cancels during the year) as a percentage of the subscription Run Rate at the beginning of the fiscal year.

    The Retention Rate for a non-annual period is calculated by annualizing the cancellations for which we have received a notice of termination or for which we believe there is an intention not to renew or discontinue the subscription during the non-annual period, and we believe that such notice or intention evidences the client's final decision to terminate or not renew the applicable agreement, even though such termination or non-renewal may not be effective until a later date. This annualized cancellation figure is then divided by the subscription Run Rate at the beginning of the fiscal year to calculate a cancellation rate. This cancellation rate is then subtracted from 100% to derive the annualized Retention Rate for the period.

    Retention Rate is computed by operating segment on a product/service-by-product/service basis. In general, if a client reduces the number of products or services to which it subscribes within a segment, or switches between products or services within a segment, we treat it as a cancellation for purposes of calculating our Retention Rate except in the case of a product or service switch that management considers to be a replacement product or service. In those replacement cases, only the net change to the client subscription, if a decrease, is reported as a cancel. In the Analytics and the ESG and Climate operating segments, substantially all product or service switches are treated as replacement products or services and netted in this manner, while in our Index and Real Assets operating segments, product or service switches that are treated as replacement products or services and receive netting treatment occur only in certain limited instances. In addition, we treat any reduction in fees resulting from a down-sell of the same product or service as a cancellation to the extent of the reduction. We do not calculate Retention Rate for that portion of our Run Rate attributable to assets in index-linked investment products or futures and options contracts, in each case, linked to our indexes.

    Run Rate estimates at a particular point in time the annualized value of the recurring revenues under our client license agreements ("Client Contracts") for the next 12 months, assuming all Client Contracts that come up for renewal, or reach the end of the committed subscription period, are renewed and assuming then-current currency exchange rates, subject to the adjustments and exclusions described below. For any Client Contract where fees are linked to an investment product's assets or trading volume/fees, the Run Rate calculation reflects, for ETFs, the market value on the last trading day of the period, for futures and options, the most recent quarterly volumes and/or reported exchange fees, and for other non-ETF products, the most recent client-reported assets. Run Rate does not include fees associated with "one-time" and other non-recurring transactions. In addition, we add to Run Rate the annualized fee value of recurring new sales, whether to existing or new clients, when we execute Client Contracts, even though the license start date, and associated revenue recognition, may not be effective until a later date. We remove from Run Rate the annualized fee value associated with products or services under any Client Contract when we (i) have received a notice of termination, non-renewal or an indication the client does not intend to continue their subscription during the period and (ii) have determined that such notice evidences the client's final decision to terminate or not renew the applicable products or services, even though such termination or non-renewal may not be effective until a later date.

    "Organic recurring subscription Run Rate growth" is defined as the period over period Run Rate growth, excluding the impact of changes in foreign currency and the first year impact of any acquisitions. It is also adjusted for divestitures. Changes in foreign currency are calculated by applying the currency exchange rate from the comparable prior period to current period foreign currency denominated Run Rate.

    Sales represents the annualized value of products and services clients commit to purchase from MSCI and will result in additional operating revenues. Non-recurring sales represent the actual value of the customer agreements entered into during the period and are not a component of Run Rate. New recurring subscription sales represent additional selling activities, such as new customer agreements, additions to existing agreements or increases in price that occurred during the period and are additions to Run Rate. Subscription cancellations reflect client activities during the period, such as discontinuing products and services and/or reductions in price, resulting in reductions to Run Rate. Net new recurring subscription sales represent the amount of new recurring subscription sales net of subscription cancellations during the period, which reflects the net impact to Run Rate during the period.

    Total gross sales represent the sum of new recurring subscription sales and non-recurring sales. Total net sales represent the total gross sales net of the impact from subscription cancellations.

    Notes Regarding the Use of Non-GAAP Financial Measures

    MSCI has presented supplemental non-GAAP financial measures as part of this earnings release. Reconciliations are provided in Tables 9 through 14 below that reconcile each non-GAAP financial measure with the most comparable GAAP measure. The non-GAAP financial measures presented in this earnings release should not be considered as alternative measures for the most directly comparable GAAP financial measures. The non-GAAP financial measures presented in this earnings release are used by management to monitor the financial performance of the business, inform business decision-making and forecast future results.

    "Adjusted EBITDA" is defined as net income before (1) provision for income taxes, (2) other expense (income), net, (3) depreciation and amortization of property, equipment and leasehold improvements, (4) amortization of intangible assets and, at times, (5) certain other transactions or adjustments, including, when applicable, impairment related to sublease of leased property and certain acquisition-related integration and transaction costs.

    "Adjusted EBITDA expenses" is defined as operating expenses less depreciation and amortization of property, equipment and leasehold improvements and amortization of intangible assets and, at times, certain other transactions or adjustments, including, when applicable, impairment related to sublease of leased property and certain acquisition-related integration and transaction costs.

    "Adjusted EBITDA margin" is defined as adjusted EBITDA divided by operating revenues.

    "Adjusted net income" and "adjusted EPS" are defined as net income and diluted EPS, respectively, before the after-tax impact of: the amortization of acquired intangible assets, including the amortization of the basis difference between the cost of the equity method investment and MSCI's share of the net assets of the investee at historical carrying value and, at times, certain other transactions or adjustments, including, when applicable, the impact related to certain acquisition-related integration and transaction costs, the impact from impairment related to sublease of leased property, the impact related to write-off of deferred fees on debt extinguishment and the impact related to gain from changes in ownership interest of investees.

    "Capex" is defined as capital expenditures plus capitalized software development costs.

    "Free cash flow" is defined as net cash provided by operating activities, less Capex.

    "Organic operating revenue growth" is defined as operating revenue growth compared to the prior year period excluding the impact of acquired businesses, divested businesses and foreign currency exchange rate fluctuations.

    Asset-based fees ex-FX does not adjust for the impact from foreign currency exchange rate fluctuations on the underlying assets under management ("AUM").

    We believe adjusted EBITDA, adjusted EBITDA margin and adjusted EBITDA expenses are meaningful measures of the operating performance of MSCI because they adjust for significant one-time, unusual or non-recurring items as well as eliminate the accounting effects of certain capital spending and acquisitions that do not directly affect what management considers to be our ongoing operating performance in the period.

    We believe adjusted net income and adjusted EPS are meaningful measures of the performance of MSCI because they adjust for the after-tax impact of significant one-time, unusual or non-recurring items as well as eliminate the impact of any transactions that do not directly affect what management considers to be our ongoing operating performance in the period. We also exclude the after-tax impact of the amortization of acquired intangible assets and amortization of the basis difference between the cost of the equity method investment and MSCI's share of the net assets of the investee at historical carrying value, as these non-cash amounts are significantly impacted by the timing and size of each acquisition and therefore not meaningful to the ongoing operating performance in the period.

    We believe that free cash flow is useful to investors because it relates the operating cash flow of MSCI to the capital that is spent to continue and improve business operations, such as investment in MSCI's existing products. Further, free cash flow indicates our ability to strengthen MSCI's balance sheet, repay our debt obligations, pay cash dividends and repurchase shares of our common stock.

    We believe organic operating revenue growth is a meaningful measure of the operating performance of MSCI because it adjusts for the impact of foreign currency exchange rate fluctuations and excludes the impact of operating revenues attributable to acquired and divested businesses for the comparable prior year period, providing insight into our ongoing operating performance for the period(s) presented.

    We believe that the non-GAAP financial measures presented in this earnings release facilitate meaningful period-to-period comparisons and provide a baseline for the evaluation of future results.

    Adjusted EBITDA expenses, adjusted EBITDA margin, adjusted EBITDA, adjusted net income, adjusted EPS, Capex, free cash flow and organic operating revenue growth are not defined in the same manner by all companies and may not be comparable to similarly-titled non-GAAP financial measures of other companies. These measures can differ significantly from company to company depending on, among other things, long-term strategic decisions regarding capital structure, the tax jurisdictions in which companies operate and capital investments. Accordingly, the Company's computation of these measures may not be comparable to similarly-titled measures computed by other companies.

    Notes Regarding Adjusting for the Impact of Foreign Currency Exchange Rate Fluctuations

    Foreign currency exchange rate fluctuations reflect the difference between the current period results as reported compared to the current period results recalculated using the foreign currency exchange rates in effect for the comparable prior period. While operating revenues adjusted for the impact of foreign currency fluctuations includes asset-based fees that have been adjusted for the impact of foreign currency fluctuations, the underlying AUM, which is the primary component of asset-based fees, is not adjusted for foreign currency fluctuations. Approximately three-fifths of the AUM is invested in securities denominated in currencies other than the U.S. dollar, and any such impact is excluded from the disclosed foreign currency-adjusted variances.

    Table 2: Condensed Consolidated Statements of Income (unaudited)

     

     

    Three Months Ended

     

    Year Ended

     

     

    Dec. 31,

     

    Dec. 31,

     

    %

     

    Dec. 31,

     

    Dec. 31,

     

    %

    In thousands, except per share data

     

    2024

     

    2023

     

    Change

     

    2024

     

    2023

     

    Change

    Operating revenues

     

    $

    743,509

     

     

    $

    690,106

     

     

    7.7%

     

    $

    2,856,128

     

     

    $

    2,528,920

     

     

    12.9%

    Operating expenses:

     

     

     

     

     

     

     

     

     

     

     

     

    Cost of revenues (exclusive of depreciation and amortization)

     

     

    131,567

     

     

     

    122,557

     

     

    7.4%

     

     

    514,382

     

     

     

    446,581

     

     

    15.2%

    Selling and marketing

     

     

    76,835

     

     

     

    75,160

     

     

    2.2%

     

     

    291,220

     

     

     

    276,204

     

     

    5.4%

    Research and development

     

     

    38,471

     

     

     

    39,220

     

     

    (1.9)%

     

     

    158,653

     

     

     

    132,121

     

     

    20.1%

    General and administrative

     

     

    44,382

     

     

     

    40,440

     

     

    9.7%

     

     

    182,340

     

     

     

    153,967

     

     

    18.4%

    Amortization of intangible assets

     

     

    42,721

     

     

     

    36,886

     

     

    15.8%

     

     

    164,037

     

     

     

    114,429

     

     

    43.4%

    Depreciation and amortization of property,

     

     

     

     

     

     

     

     

     

     

     

     

    equipment and leasehold improvements

     

     

    4,339

     

     

     

    5,098

     

     

    (14.9)%

     

     

    16,978

     

     

     

    21,009

     

     

    (19.2)%

    Total operating expenses(1)

     

     

    338,315

     

     

     

    319,361

     

     

    5.9%

     

     

    1,327,610

     

     

     

    1,144,311

     

     

    16.0%

     

     

     

     

     

     

     

     

     

     

     

     

     

    Operating income

     

     

    405,194

     

     

     

    370,745

     

     

    9.3%

     

     

    1,528,518

     

     

     

    1,384,609

     

     

    10.4%

     

     

     

     

     

     

     

     

     

     

     

     

     

    Interest income

     

     

    (3,902

    )

     

     

    (3,400

    )

     

    14.8%

     

     

    (21,277

    )

     

     

    (34,479

    )

     

    (38.3)%

    Interest expense

     

     

    45,505

     

     

     

    46,954

     

     

    (3.1)%

     

     

    185,500

     

     

     

    186,679

     

     

    (0.6)%

    Gain on remeasurement of equity method

    investment

     

     

    —

     

     

     

    (143,029

    )

     

    n/m

     

     

    —

     

     

     

    (143,029

    )

     

    n/m

    Other expense (income)

     

     

    246

     

     

     

    2,345

     

     

    (89.5)%

     

     

    8,127

     

     

     

    6,377

     

     

    27.4%

    Other expense (income), net

     

     

    41,849

     

     

     

    (97,130

    )

     

    n/m

     

     

    172,350

     

     

     

    15,548

     

     

    n/m

     

     

     

     

     

     

     

     

     

     

     

     

     

    Income before provision for income taxes

     

     

    363,345

     

     

     

    467,875

     

     

    (22.3)%

     

     

    1,356,168

     

     

     

    1,369,061

     

     

    (0.9)%

     

     

     

     

     

     

     

     

     

     

     

     

     

    Provision for income taxes

     

     

    57,830

     

     

     

    64,495

     

     

    (10.3)%

     

     

    247,040

     

     

     

    220,469

     

     

    12.1%

    Net income

     

     

    305,515

     

     

     

    403,380

     

     

    (24.3)%

     

     

    1,109,128

     

     

     

    1,148,592

     

     

    (3.4)%

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Earnings per basic common share

     

    $

    3.91

     

     

    $

    5.10

     

     

    (23.3)%

     

    $

    14.09

     

     

    $

    14.45

     

     

    (2.5)%

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Earnings per diluted common share

     

    $

    3.90

     

     

    $

    5.07

     

     

    (23.1)%

     

    $

    14.05

     

     

    $

    14.39

     

     

    (2.4)%

     

     

     

     

     

     

     

     

     

     

     

     

     

    Weighted average shares outstanding used

     

     

     

     

     

     

     

     

     

     

     

     

    in computing earnings per share:

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Basic

     

     

    78,070

     

     

     

    79,115

     

     

    (1.3)%

     

     

    78,710

     

     

     

    79,462

     

     

    (0.9)%

    Diluted

     

     

    78,365

     

     

     

    79,499

     

     

    (1.4)%

     

     

    78,960

     

     

     

    79,843

     

     

    (1.1)%

     

     

     

     

     

     

     

     

     

     

     

     

     

    n/m: percentage change is not meaningful

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    (1) Includes stock-based compensation expense of $23.3 million and $17.0 million for the three months ended Dec. 31, 2024 and Dec. 31, 2023, respectively. Includes stock-based compensation expense of $96.4 million and $73.0 million for the year ended Dec. 31, 2024 and Dec. 31, 2023, respectively.

    Table 3: Condensed Consolidated Balance Sheet (unaudited)

     

     

    As of

     

     

    Dec. 31,

     

    Dec. 31,

    In thousands

     

    2024

     

    2023

    ASSETS

     

     

     

     

    Current assets:

     

     

     

     

    Cash and cash equivalents (includes restricted cash of $3,497 and $3,878 at December

    31, 2024 and December 31, 2023, respectively)

     

    $

    409,351

     

    $

    461,693

    Accounts receivable (net of allowances of $5,284 and $3,968 at December 31, 2024 and

    December 31, 2023, respectively)

     

     

    820,709

     

     

    839,555

    Other current assets

     

     

    113,961

     

     

    116,905

    Total current assets

     

     

    1,344,021

     

     

    1,418,153

    Property, equipment and leasehold improvements, net

     

     

    70,885

     

     

    55,920

    Right of use assets

     

     

    119,435

     

     

    115,243

    Goodwill

     

     

    2,915,167

     

     

    2,887,692

    Intangible assets, net

     

     

    907,613

     

     

    956,234

    Other non-current assets

     

     

    88,318

     

     

    84,977

    Total assets

     

    $

    5,445,439

     

    $

    5,518,219

     

     

     

     

     

    LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT)

     

     

     

     

    Current liabilities:

     

     

     

     

    Current portion of long-term debt

     

    $

    —

     

    $

    10,902

    Deferred revenue

     

     

    1,123,423

     

     

    1,083,864

    Other current liabilities

     

     

    462,231

     

     

    422,259

    Total current liabilities

     

     

    1,585,654

     

     

    1,517,025

    Long-term debt

     

     

    4,510,816

     

     

    4,496,826

    Long-term operating lease liabilities

     

     

    121,153

     

     

    120,134

    Other non-current liabilities

     

     

    167,813

     

     

    123,998

    Total liabilities

     

     

    6,385,436

     

     

    6,257,983

     

     

     

     

     

    Total shareholders' equity (deficit)

     

     

    (939,997)

     

     

    (739,764)

    Total liabilities and shareholders' equity (deficit)

     

    $

    5,445,439

     

    $

    5,518,219

    Table 4: Condensed Consolidated Statement of Cash Flow (unaudited)

     

     

    Three Months Ended

     

    Year Ended

     

     

    Dec. 31,

     

    Dec. 31,

     

    %

     

    Dec. 31,

     

    Dec. 31,

     

    %

    In thousands

     

    2024

     

    2023

     

    Change

     

    2024

     

    2023

     

    Change

    Cash flows from operating activities

     

     

     

     

     

     

     

     

     

     

     

     

    Net income

     

    $

    305,515

     

     

    $

    403,380

     

     

    (24.3)%

     

    $

    1,109,128

     

     

    $

    1,148,592

     

     

    (3.4)%

    Adjustments to reconcile net income to net cash provided by operating activities:

     

     

     

     

     

     

     

     

     

     

     

     

    Gain on remeasurement of equity method investment

     

     

    —

     

     

     

    (143,029

    )

     

    n/m

     

     

    —

     

     

     

    (143,029

    )

     

    n/m

    Amortization of intangible assets

     

     

    42,721

     

     

     

    36,886

     

     

    15.8%

     

     

    164,037

     

     

     

    114,429

     

     

    43.4%

    Stock-based compensation expense

     

     

    22,969

     

     

     

    16,278

     

     

    41.1%

     

     

    95,204

     

     

     

    71,653

     

     

    32.9%

    Depreciation and amortization of property, equipment and leasehold improvements

     

     

    4,339

     

     

     

    5,098

     

     

    (14.9)%

     

     

    16,978

     

     

     

    21,009

     

     

    (19.2)%

    Amortization of right of use assets

     

     

    5,678

     

     

     

    6,297

     

     

    (9.8)%

     

     

    25,260

     

     

     

    23,781

     

     

    6.2%

    Loss on impairment of right of use assets, net

     

     

    —

     

     

     

    477

     

     

    n/m

     

     

    —

     

     

     

    477

     

     

    n/m

    Loss on extinguishment of debt

     

     

    —

     

     

     

    —

     

     

    n/m

     

     

    1,510

     

     

     

    —

     

     

    n/m

    Other adjustments

     

     

    (27,089

    )

     

     

    22,643

     

     

    n/m

     

     

    16,767

     

     

     

    (3,340

    )

     

    n/m

    Net changes in other operating assets and liabilities

     

     

    76,500

     

     

     

    40,923

     

     

    86.9%

     

     

    72,743

     

     

     

    2,457

     

     

    n/m

    Net cash provided by operating activities

     

     

    430,633

     

     

     

    388,953

     

     

    10.7%

     

     

    1,501,627

     

     

     

    1,236,029

     

     

    21.5%

     

     

     

     

     

     

     

     

     

     

     

     

     

    Cash flows from investing activities

     

     

     

     

     

     

     

     

     

     

     

     

    Acquisition of a business, net of cash acquired

     

     

    —

     

     

     

    (727,342

    )

     

    n/m

     

     

    (27,467

    )

     

     

    (727,342

    )

     

    (96.2)%

    Capitalized software development costs

     

     

    (21,708

    )

     

     

    (18,014

    )

     

    20.5%

     

     

    (81,356

    )

     

     

    (68,094

    )

     

    19.5%

    Capital expenditures

     

     

    (14,247

    )

     

     

    (3,815

    )

     

    273.4%

     

     

    (33,762

    )

     

     

    (22,757

    )

     

    48.4%

    Other

     

     

    (778

    )

     

     

    (796

    )

     

    (2.3)%

     

     

    (1,670

    )

     

     

    (1,185

    )

     

    40.9%

    Net cash used in investing activities

     

     

    (36,733

    )

     

     

    (749,967

    )

     

    (95.1)%

     

     

    (144,255

    )

     

     

    (819,378

    )

     

    (82.4)%

     

     

     

     

     

     

     

     

     

     

     

     

     

    Cash flows from financing activities

     

     

     

     

     

     

     

     

     

     

     

     

    Repurchase of common stock held in treasury

     

     

    (374,048

    )

     

     

    (27

    )

     

    n/m

     

     

    (885,266

    )

     

     

    (504,188

    )

     

    75.6%

    Payment of dividends

     

     

    (125,129

    )

     

     

    (109,353

    )

     

    14.4%

     

     

    (509,109

    )

     

     

    (440,993

    )

     

    15.4%

    Repayment of borrowings

     

     

    (195,000

    )

     

     

    (2,187

    )

     

    n/m

     

     

    (559,063

    )

     

     

    (8,750

    )

     

    n/m

    Proceeds from borrowings

     

     

    220,000

     

     

     

    —

     

     

    n/m

     

     

    556,875

     

     

     

    —

     

     

    n/m

    Payment of debt issuance costs

     

     

    —

     

     

     

    —

     

     

    n/m

     

     

    (3,739

    )

     

     

    —

     

     

    n/m

    Payment of contingent consideration and deferred purchase price from acquisitions

     

     

    (2,006

    )

     

     

    —

     

     

    n/m

     

     

    (2,006

    )

     

     

    —

     

     

    n/m

    Net cash used in financing activities

     

     

    (476,183

    )

     

     

    (111,567

    )

     

    n/m

     

     

    (1,402,308

    )

     

     

    (953,931

    )

     

    47.0%

     

     

     

     

     

     

     

     

     

     

     

     

     

    Effect of exchange rate changes

     

     

    (9,345

    )

     

     

    5,722

     

     

    n/m

     

     

    (7,406

    )

     

     

    5,409

     

     

    n/m

     

     

     

     

     

     

     

     

     

     

     

     

     

    Net increase (decrease) in cash, cash equivalents and restricted cash

     

     

    (91,628

    )

     

     

    (466,859

    )

     

    (80.4)%

     

     

    (52,342

    )

     

     

    (531,871

    )

     

    (90.2)%

    Cash, cash equivalents and restricted cash, beginning of period

     

     

    500,979

     

     

     

    928,552

     

     

    (46.0)%

     

     

    461,693

     

     

     

    993,564

     

     

    (53.5)%

    Cash, cash equivalent and restricted cash, end of period

     

    $

    409,351

     

     

    $

    461,693

     

     

    (11.3)%

     

    $

    409,351

     

     

    $

    461,693

     

     

    (11.3)%

     

     

     

     

     

     

     

     

     

     

     

     

     

    n/m: not meaningful.

     

     

     

     

     

     

     

     

     

     

     

     

    Table 5: Operating Results (unaudited)

    Index

     

    Three Months Ended

     

    Year Ended

     

     

    Dec. 31,

     

    Dec. 31,

     

    %

     

    Dec. 31,

     

    Dec. 31,

     

    %

    In thousands

     

    2024

     

    2023

     

    Change

     

    2024

     

    2023

     

    Change

    Operating revenues:

     

     

     

     

     

     

     

     

     

     

     

     

    Recurring subscriptions

     

    $

    228,438

     

     

    $

    210,737

     

     

    8.4%

     

    $

    882,367

     

     

    $

    814,582

     

     

    8.3%

    Asset-based fees

     

     

    175,339

     

     

     

    145,148

     

     

    20.8%

     

     

    657,501

     

     

     

    557,502

     

     

    17.9%

    Non-recurring

     

     

    16,422

     

     

     

    32,110

     

     

    (48.9)%

     

     

    56,277

     

     

     

    79,731

     

     

    (29.4)%

    Total operating revenues

     

     

    420,199

     

     

     

    387,995

     

     

    8.3%

     

     

    1,596,145

     

     

     

    1,451,815

     

     

    9.9%

    Adjusted EBITDA expenses

     

     

    97,043

     

     

     

    89,446

     

     

    8.5%

     

     

    374,091

     

     

     

    344,842

     

     

    8.5%

    Adjusted EBITDA

     

    $

    323,156

     

     

    $

    298,549

     

     

    8.2%

     

    $

    1,222,054

     

     

    $

    1,106,973

     

     

    10.4%

    Adjusted EBITDA margin %

     

     

    76.9

    %

     

     

    76.9

    %

     

     

     

     

    76.6

    %

     

     

    76.2

    %

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Analytics

     

    Three Months Ended

     

    Year Ended

     

     

    Dec. 31,

     

    Dec. 31,

     

    %

     

    Dec. 31,

     

    Dec. 31,

     

    %

    In thousands

     

    2024

     

    2023

     

    Change

     

    2024

     

    2023

     

    Change

    Operating revenues:

     

     

     

     

     

     

     

     

     

     

     

     

    Recurring subscriptions

     

    $

    167,781

     

     

    $

    160,015

     

     

    4.9%

     

    $

    658,610

     

     

    $

    603,291

     

     

    9.2%

    Non-recurring

     

     

    4,971

     

     

     

    4,722

     

     

    5.3%

     

     

    16,479

     

     

     

    12,665

     

     

    30.1%

    Total operating revenues

     

     

    172,752

     

     

     

    164,737

     

     

    4.9%

     

     

    675,089

     

     

     

    615,956

     

     

    9.6%

    Adjusted EBITDA expenses

     

     

    88,628

     

     

     

    87,572

     

     

    1.2%

     

     

    346,794

     

     

     

    341,081

     

     

    1.7%

    Adjusted EBITDA

     

    $

    84,124

     

     

    $

    77,165

     

     

    9.0%

     

    $

    328,295

     

     

    $

    274,875

     

     

    19.4%

    Adjusted EBITDA margin %

     

     

    48.7

    %

     

     

    46.8

    %

     

     

     

     

    48.6

    %

     

     

    44.6

    %

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    ESG and Climate

     

    Three Months Ended

     

    Year Ended

     

     

    Dec. 31,

     

    Dec. 31,

     

    %

     

    Dec. 31,

     

    Dec. 31,

     

    %

    In thousands

     

    2024

     

    2023

     

    Change

     

    2024

     

    2023

     

    Change

    Operating revenues:

     

     

     

     

     

     

     

     

     

     

     

     

    Recurring subscriptions

     

    $

    82,881

     

     

    $

    74,828

     

     

    10.8%

     

    $

    318,835

     

     

    $

    282,351

     

     

    12.9%

    Non-recurring

     

     

    2,338

     

     

     

    1,425

     

     

    64.1%

     

     

    7,766

     

     

     

    5,217

     

     

    48.9%

    Total operating revenues

     

     

    85,219

     

     

     

    76,253

     

     

    11.8%

     

     

    326,601

     

     

     

    287,568

     

     

    13.6%

    Adjusted EBITDA expenses

     

     

    55,521

     

     

     

    50,689

     

     

    9.5%

     

     

    221,893

     

     

     

    195,890

     

     

    13.3%

    Adjusted EBITDA

     

    $

    29,698

     

     

    $

    25,564

     

     

    16.2%

     

    $

    104,708

     

     

    $

    91,678

     

     

    14.2%

    Adjusted EBITDA margin %

     

     

    34.8

    %

     

     

    33.5

    %

     

     

     

     

    32.1

    %

     

     

    31.9

    %

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    All Other - Private Assets

     

    Three Months Ended

     

    Year Ended

     

     

    Dec. 31,

     

    Dec. 31,

     

    %

     

    Dec. 31,

     

    Dec. 31,

     

    %

    In thousands

     

    2024

     

    2023

     

    Change

     

    2024

     

    2023

     

    Change

    Operating revenues:

     

     

     

     

     

     

     

     

     

     

     

     

    Recurring subscriptions

     

    $

    64,199

     

     

    $

    59,774

     

     

    7.4%

     

    $

    254,633

     

     

    $

    171,066

     

     

    48.9%

    Non-recurring

     

     

    1,140

     

     

     

    1,347

     

     

    (15.4)%

     

     

    3,660

     

     

     

    2,515

     

     

    45.5%

    Total operating revenues

     

     

    65,339

     

     

     

    61,121

     

     

    6.9%

     

     

    258,293

     

     

     

    173,581

     

     

    48.8%

    Adjusted EBITDA expenses

     

     

    50,063

     

     

     

    47,772

     

     

    4.8%

     

     

    196,866

     

     

     

    124,156

     

     

    58.6%

    Adjusted EBITDA

     

    $

    15,276

     

     

    $

    13,349

     

     

    14.4%

     

    $

    61,427

     

     

    $

    49,425

     

     

    24.3%

    Adjusted EBITDA margin %

     

     

    23.4

    %

     

     

    21.8

    %

     

     

     

     

    23.8

    %

     

     

    28.5

    %

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Consolidated

     

    Three Months Ended

     

    Year Ended

     

     

    Dec. 31,

     

    Dec. 31,

     

    %

     

    Dec. 31,

     

    Dec. 31,

     

    %

    In thousands

     

    2024

     

    2023

     

    Change

     

    2024

     

    2023

     

    Change

    Operating revenues:

     

     

     

     

     

     

     

     

     

     

     

     

    Recurring subscriptions

     

    $

    543,299

     

     

    $

    505,354

     

     

    7.5%

     

    $

    2,114,445

     

     

    $

    1,871,290

     

     

    13.0%

    Asset-based fees

     

     

    175,339

     

     

     

    145,148

     

     

    20.8%

     

     

    657,501

     

     

     

    557,502

     

     

    17.9%

    Non-recurring

     

     

    24,871

     

     

     

    39,604

     

     

    (37.2)%

     

     

    84,182

     

     

     

    100,128

     

     

    (15.9)%

    Operating revenues total

     

     

    743,509

     

     

     

    690,106

     

     

    7.7%

     

     

    2,856,128

     

     

     

    2,528,920

     

     

    12.9%

    Adjusted EBITDA expenses

     

     

    291,255

     

     

     

    275,479

     

     

    5.7%

     

     

    1,139,644

     

     

     

    1,005,969

     

     

    13.3%

    Adjusted EBITDA

     

    $

    452,254

     

     

    $

    414,627

     

     

    9.1%

     

    $

    1,716,484

     

     

    $

    1,522,951

     

     

    12.7%

    Operating margin %

     

     

    54.5

    %

     

     

    53.7

    %

     

     

     

     

    53.5

    %

     

     

    54.8

    %

     

     

    Adjusted EBITDA margin %

     

     

    60.8

    %

     

     

    60.1

    %

     

     

     

     

    60.1

    %

     

     

    60.2

    %

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Table 6: Sales and Retention Rate (unaudited)(1)

     

     

    Three Months Ended

     

     

     

    Year Ended

     

     

     

     

    Dec. 31,

     

    Dec. 31,

     

    %

     

    Dec. 31,

     

    Dec. 31,

     

    %

    In thousands

     

    2024

     

    2023

     

    Change

     

    2024

     

    2023

     

    Change

    Index

     

     

     

     

     

     

     

     

     

     

     

     

    New recurring subscription sales

     

    $

    38,110

     

     

    $

    35,860

     

     

    6.3%

     

    $

    118,191

     

     

    $

    116,016

     

     

    1.9%

    Subscription cancellations

     

     

    (10,854

    )

     

     

    (9,681

    )

     

    12.1%

     

     

    (45,730

    )

     

     

    (32,298

    )

     

    41.6%

    Net new recurring subscription sales

     

    $

    27,256

     

     

    $

    26,179

     

     

    4.1%

     

    $

    72,461

     

     

    $

    83,718

     

     

    (13.4)%

    Non-recurring sales

     

    $

    18,153

     

     

    $

    33,410

     

     

    (45.7)%

     

    $

    62,840

     

     

    $

    87,775

     

     

    (28.4)%

    Total gross sales

     

    $

    56,263

     

     

    $

    69,270

     

     

    (18.8)%

     

    $

    181,031

     

     

    $

    203,791

     

     

    (11.2)%

    Total Index net sales

     

    $

    45,409

     

     

    $

    59,589

     

     

    (23.8)%

     

    $

    135,301

     

     

    $

    171,493

     

     

    (21.1)%

     

     

     

     

     

     

     

     

     

     

     

     

     

    Index Retention Rate(2)

     

     

    95.0

    %

     

     

    95.0

    %

     

     

     

     

    94.7

    %

     

     

    95.8

    %

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Analytics

     

     

     

     

     

     

     

     

     

     

     

     

    New recurring subscription sales

     

    $

    26,282

     

     

    $

    28,284

     

     

    (7.1)%

     

    $

    82,419

     

     

    $

    79,035

     

     

    4.3%

    Subscription cancellations

     

     

    (11,105

    )

     

     

    (10,581

    )

     

    5.0%

     

     

    (39,106

    )

     

     

    (34,675

    )

     

    12.8%

    Net new recurring subscription sales

     

    $

    15,177

     

     

    $

    17,703

     

     

    (14.3)%

     

    $

    43,313

     

     

    $

    44,360

     

     

    (2.4)%

    Non-recurring sales

     

    $

    2,556

     

     

    $

    5,645

     

     

    (54.7)%

     

    $

    16,368

     

     

    $

    14,379

     

     

    13.8%

    Total gross sales

     

    $

    28,838

     

     

    $

    33,929

     

     

    (15.0)%

     

    $

    98,787

     

     

    $

    93,414

     

     

    5.8%

    Total Analytics net sales

     

    $

    17,733

     

     

    $

    23,348

     

     

    (24.0)%

     

    $

    59,681

     

     

    $

    58,739

     

     

    1.6%

     

     

     

     

     

     

     

     

     

     

     

     

     

    Analytics Retention Rate(3)

     

     

    93.3

    %

     

     

    93.1

    %

     

     

     

     

    94.1

    %

     

     

    94.4

    %

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    ESG and Climate

     

     

     

     

     

     

     

     

     

     

     

     

    New recurring subscription sales

     

    $

    16,036

     

     

    $

    16,595

     

     

    (3.4)%

     

    $

    55,397

     

     

    $

    55,092

     

     

    0.6%

    Subscription cancellations

     

     

    (5,493

    )

     

     

    (3,592

    )

     

    52.9%

     

     

    (22,989

    )

     

     

    (10,923

    )

     

    110.5%

    Net new recurring subscription sales

     

    $

    10,543

     

     

    $

    13,003

     

     

    (18.9)%

     

    $

    32,408

     

     

    $

    44,169

     

     

    (26.6)%

    Non-recurring sales

     

    $

    2,163

     

     

    $

    1,559

     

     

    38.7%

     

    $

    9,015

     

     

    $

    5,625

     

     

    60.3%

    Total gross sales

     

    $

    18,199

     

     

    $

    18,154

     

     

    0.2%

     

    $

    64,412

     

     

    $

    60,717

     

     

    6.1%

    Total ESG and Climate net sales

     

    $

    12,706

     

     

    $

    14,562

     

     

    (12.7)%

     

    $

    41,423

     

     

    $

    49,794

     

     

    (16.8)%

     

     

     

     

     

     

     

     

     

     

     

     

     

    ESG and Climate Retention Rate

     

     

    93.1

    %

     

     

    94.7

    %

     

     

     

     

    92.8

    %

     

     

    95.9

    %

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    All Other - Private Assets

     

     

     

     

     

     

     

     

     

     

     

     

    New recurring subscription sales

     

    $

    10,881

     

     

    $

    11,429

     

     

    (4.8)%

     

    $

    40,758

     

     

    $

    26,175

     

     

    55.7%

    Subscription cancellations

     

     

    (8,573

    )

     

     

    (6,703

    )

     

    27.9%

     

     

    (23,685

    )

     

     

    (15,337

    )

     

    54.4%

    Net new recurring subscription sales

     

    $

    2,308

     

     

    $

    4,726

     

     

    (51.2)%

     

    $

    17,073

     

     

    $

    10,838

     

     

    57.5%

    Non-recurring sales

     

    $

    1,517

     

     

    $

    1,082

     

     

    40.2%

     

    $

    3,878

     

     

    $

    2,151

     

     

    80.3%

    Total gross sales

     

    $

    12,398

     

     

    $

    12,511

     

     

    (0.9)%

     

    $

    44,636

     

     

    $

    28,326

     

     

    57.6%

    Total All Other - Private Assets net sales

     

    $

    3,825

     

     

    $

    5,808

     

     

    (34.1)%

     

    $

    20,951

     

     

    $

    12,989

     

     

    61.3%

     

     

     

     

     

     

     

     

     

     

     

     

     

    All Other - Private Assets Retention Rate

     

     

    86.4

    %

     

     

    88.8

    %

     

     

     

     

    90.6

    %

     

     

    90.4

    %

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Consolidated

     

     

     

     

     

     

     

     

     

     

     

     

    New recurring subscription sales

     

    $

    91,309

     

     

    $

    92,168

     

     

    (0.9)%

     

    $

    296,765

     

     

    $

    276,318

     

     

    7.4%

    Subscription cancellations

     

     

    (36,025

    )

     

     

    (30,557

    )

     

    17.9%

     

     

    (131,510

    )

     

     

    (93,233

    )

     

    41.1%

    Net new recurring subscription sales

     

    $

    55,284

     

     

    $

    61,611

     

     

    (10.3)%

     

    $

    165,255

     

     

    $

    183,085

     

     

    (9.7)%

    Non-recurring sales

     

    $

    24,389

     

     

    $

    41,696

     

     

    (41.5)%

     

    $

    92,101

     

     

    $

    109,930

     

     

    (16.2)%

    Total gross sales

     

    $

    115,698

     

     

    $

    133,864

     

     

    (13.6)%

     

    $

    388,866

     

     

    $

    386,248

     

     

    0.7%

    Total net sales

     

    $

    79,673

     

     

    $

    103,307

     

     

    (22.9)%

     

    $

    257,356

     

     

    $

    293,015

     

     

    (12.2)%

     

     

     

     

     

     

     

     

     

     

     

     

     

    Total Retention Rate

     

     

    93.1

    %

     

     

    93.6

    %

     

     

     

     

    93.7

    %

     

     

    94.7

    %

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    (1) See "Notes Regarding the Use of Operating Metrics" for details regarding the definition of new recurring subscription sales, subscription cancellations, net new recurring subscription sales, non-recurring sales, total gross sales, total net sales and Retention Rate.

    (2) Retention rate for Index excluding the impact of the acquisition of Foxberry was 95.0% and 94.7% for the three months and year ended Dec. 31, 2024, respectively.

    (3) Retention rate for Analytics excluding the impact of the acquisition of Fabric was 93.3% and 94.1% for the three months and year ended Dec. 31, 2024, respectively.

    Table 7: AUM in ETFs Linked to MSCI Equity Indexes (unaudited)(1)(2)

     

     

    Three Months Ended

     

    Year Ended

     

     

    Dec. 31,

     

    Mar. 31,

     

    June 30,

     

    Sep. 30,

     

    Dec. 31,

     

    Dec. 31,

     

    Dec. 31,

    In billions

     

    2023

     

    2024

     

    2024

     

    2024

     

    2024

     

    2023

     

    2024

    Beginning Period AUM in ETFs linked to

     

    $

    1,322.8

     

    $

    1,468.9

     

    $

    1,582.6

     

    $

    1,631.9

     

    $

    1,761.8

     

     

    $

    1,222.9

     

    $

    1,468.9

    MSCI equity indexes

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Market Appreciation/(Depreciation)

     

     

    130.5

     

     

    92.8

     

     

    21.2

     

     

    111.3

     

     

    (85.3

    )

     

     

    197.9

     

     

    140.0

    Cash Inflows/(Outflows)

     

     

    15.6

     

     

    20.9

     

     

    28.1

     

     

    18.6

     

     

    48.2

     

     

     

    48.1

     

     

    115.8

    Period-End AUM in ETFs linked to

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    MSCI equity indexes

     

    $

    1,468.9

     

    $

    1,582.6

     

    $

    1,631.9

     

    $

    1,761.8

     

    $

    1,724.7

     

     

    $

    1,468.9

     

    $

    1,724.7

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Period Average AUM in ETFs linked to

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    MSCI equity indexes

     

    $

    1,364.9

     

    $

    1,508.8

     

    $

    1,590.6

     

    $

    1,677.0

     

    $

    1,755.4

     

     

    $

    1,340.7

     

    $

    1,632.9

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Period-End Basis Point Fee(3)

     

     

    2.50

     

     

    2.48

     

     

    2.47

     

     

    2.44

     

     

    2.44

     

     

     

    2.50

     

     

    2.44

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    (1) The historical values of the AUM in ETFs linked to our equity indexes as of the last day of the month and the monthly average balance can be found under the link "AUM in ETFs Linked to MSCI Equity Indexes" on our Investor Relations homepage at http://ir.msci.com. Information contained on our website is not incorporated by reference into this Press Release or any other report filed or furnished with the SEC. The AUM in ETFs also includes AUM in Exchange Traded Notes, the value of which is less than 1.0% of the AUM amounts presented.

    (2) The value of AUM in ETFs linked to MSCI equity indexes is calculated by multiplying the equity ETFs net asset value by the number of shares outstanding.

    (3) Based on period-end Run Rate for ETFs linked to MSCI equity indexes using period-end AUM.

    Table 8: Run Rate (unaudited)(1)

     

     

    As of

     

     

     

     

    Dec. 31,

     

    Dec. 31,

     

    %

    In thousands

     

    2024

     

    2023

     

    Change

    Index

     

     

     

     

     

     

    Recurring subscriptions

     

    $

    934,251

     

    $

    861,366

     

    8.5%

    Asset-based fees

     

     

    678,599

     

     

    590,872

     

    14.8%

    Index Run Rate

     

     

    1,612,850

     

     

    1,452,238

     

    11.1%

     

     

     

     

     

     

     

    Analytics Run Rate

     

     

    698,377

     

     

    661,922

     

    5.5%

     

     

     

     

     

     

     

    ESG and Climate Run Rate

     

     

    343,741

     

     

    319,324

     

    7.6%

     

     

     

     

     

     

     

    All Other - Private Assets Run Rate

     

     

    266,719

     

     

    252,677

     

    5.6%

     

     

     

     

     

     

     

    Total Run Rate

     

    $

    2,921,687

     

    $

    2,686,161

     

    8.8%

     

     

     

     

     

     

     

    Total recurring subscriptions

     

    $

    2,243,088

     

    $

    2,095,289

     

    7.1%

    Total asset-based fees

     

     

    678,599

     

     

    590,872

     

    14.8%

    Total Run Rate

     

    $

    2,921,687

     

    $

    2,686,161

     

    8.8%

     

     

     

     

     

     

     

    (1) See "Notes Regarding the Use of Operating Metrics" for details regarding the definition of Run Rate.

    Table 9: Reconciliation of Net Income to Adjusted EBITDA (unaudited)

     

     

    Three Months Ended

     

    Year Ended

     

     

    Dec. 31,

     

    Dec. 31,

     

    Dec. 31,

     

    Dec. 31,

    In thousands

     

    2024

     

    2023

     

    2024

     

    2023

    Net income

     

    $

    305,515

     

    $

    403,380

     

     

    $

    1,109,128

     

    $

    1,148,592

    Provision for income taxes

     

     

    57,830

     

     

    64,495

     

     

     

    247,040

     

     

    220,469

    Other expense (income), net

     

     

    41,849

     

     

    (97,130

    )

     

     

    172,350

     

     

    15,548

    Operating income

     

     

    405,194

     

     

    370,745

     

     

     

    1,528,518

     

     

    1,384,609

    Amortization of intangible assets

     

     

    42,721

     

     

    36,886

     

     

     

    164,037

     

     

    114,429

    Depreciation and amortization of property,

     

     

     

     

     

     

     

     

    equipment and leasehold improvements

     

     

    4,339

     

     

    5,098

     

     

     

    16,978

     

     

    21,009

    Impairment related to sublease of leased property

     

     

    —

     

     

    477

     

     

     

    —

     

     

    477

    Acquisition-related integration and transaction

    costs(1)

     

     

    —

     

     

    1,421

     

     

     

    6,951

     

     

    2,427

    Consolidated adjusted EBITDA

     

    $

    452,254

     

    $

    414,627

     

     

    $

    1,716,484

     

    $

    1,522,951

     

     

     

     

     

     

     

     

     

    Index adjusted EBITDA

     

    $

    323,156

     

    $

    298,549

     

     

    $

    1,222,054

     

    $

    1,106,973

    Analytics adjusted EBITDA

     

     

    84,124

     

     

    77,165

     

     

     

    328,295

     

     

    274,875

    ESG and Climate adjusted EBITDA

     

     

    29,698

     

     

    25,564

     

     

     

    104,708

     

     

    91,678

    All Other - Private Assets adjusted EBITDA

     

     

    15,276

     

     

    13,349

     

     

     

    61,427

     

     

    49,425

    Consolidated adjusted EBITDA

     

    $

    452,254

     

    $

    414,627

     

     

    $

    1,716,484

     

    $

    1,522,951

     

     

     

     

     

     

     

     

     

    (1) Represents transaction expenses and other costs directly related to the acquisition and integration of acquired businesses, including professional fees, severance expenses, regulatory filing fees and other costs, in each case that are incurred no later than 12 months after the close of the relevant acquisition.

    Table 10: Reconciliation of Net Income and Diluted EPS to Adjusted Net Income and Adjusted EPS (unaudited)

     

     

    Three Months Ended

     

    Year Ended

     

     

    Dec. 31,

     

    Dec. 31,

     

    Dec. 31,

     

    Dec. 31,

    In thousands, except per share data

     

    2024

     

    2023

     

    2024

     

    2023

    Net income

     

    $

    305,515

     

     

    $

    403,380

     

     

    $

    1,109,128

     

     

    $

    1,148,592

     

    Plus: Amortization of acquired intangible assets and

     

     

     

     

     

     

     

     

    equity method investment basis difference

     

     

    25,815

     

     

     

    24,873

     

     

     

    103,041

     

     

     

    75,229

     

    Plus: Impairment related to sublease of leased property

     

     

    —

     

     

     

    492

     

     

     

    —

     

     

     

    492

     

    Plus: Acquisition-related integration and transaction costs(1)

     

     

    —

     

     

     

    1,421

     

     

     

    6,994

     

     

     

    2,427

     

    Plus: Write-off of deferred fees on debt extinguishment

     

     

    —

     

     

     

    —

     

     

     

    1,510

     

     

     

    —

     

    Less: Gain from changes in ownership interest of investees

     

     

    —

     

     

     

    (143,029

    )

     

     

    —

     

     

     

    (143,476

    )

    Plus/(Less): Income tax effect(2)(3)

     

     

    (3,983

    )

     

     

    5,071

     

     

     

    (20,415

    )

     

     

    (3,809

    )

    Adjusted net income

     

    $

    327,347

     

     

    $

    292,208

     

     

    $

    1,200,258

     

     

    $

    1,079,455

     

     

     

     

     

     

     

     

     

     

    Diluted EPS

     

    $

    3.90

     

     

    $

    5.07

     

     

    $

    14.05

     

     

    $

    14.39

     

    Plus: Amortization of acquired intangible assets and

     

     

     

     

     

     

     

     

    equity method investment basis difference

     

     

    0.33

     

     

     

    0.31

     

     

     

    1.30

     

     

     

    0.94

     

    Plus: Impairment related to sublease of leased property

     

     

    —

     

     

     

    0.01

     

     

     

    —

     

     

     

    0.01

     

    Plus: Acquisition-related integration and transaction costs(1)

     

     

    —

     

     

     

    0.02

     

     

     

    0.09

     

     

     

    0.03

     

    Plus: Write-off of deferred fees on debt extinguishment

     

     

    —

     

     

     

    —

     

     

     

    0.02

     

     

     

    —

     

    Less: Gain from changes in ownership interest of investees

     

     

    —

     

     

     

    (1.79

    )

     

     

    —

     

     

     

    (1.80

    )

    Plus/(Less): Income tax effect(2)(3)

     

     

    (0.05

    )

     

     

    0.06

     

     

     

    (0.26

    )

     

     

    (0.05

    )

    Adjusted EPS

     

    $

    4.18

     

     

    $

    3.68

     

     

    $

    15.20

     

     

    $

    13.52

     

     

     

     

     

     

     

     

     

     

    Diluted weighted average common shares outstanding

     

     

    78,365

     

     

     

    79,499

     

     

     

    78,960

     

     

     

    79,843

     

     

     

     

     

     

     

     

     

     

    (1) Represents transaction expenses and other costs directly related to the acquisition and integration of acquired businesses, including professional fees, severance expenses, regulatory filing fees and other costs, in each case that are incurred no later than 12 months after the close of the relevant acquisition.

    (2) Adjustments relate to the tax effect of non-GAAP adjustments, which were determined based on the nature of the underlying non-GAAP adjustments and their relevant jurisdictional tax rates.

    (3) The pre-tax gain from changes in ownership interest of Burgiss of $143.0 million is non-taxable; however, $8.6 million of income tax expense recognized during the three and twelve months ended December 31, 2023 was related to the remeasurement of the deferred tax liability on the Company's previous equity method investment in Burgiss.

    Table 11: Reconciliation of Operating Expenses to Adjusted EBITDA Expenses (unaudited)

     

     

    Three Months Ended

     

    Year Ended

     

    Full-Year

     

     

     

    Dec. 31,

     

    Dec. 31,

     

    Dec. 31,

     

    Dec. 31,

     

    2025

     

    In thousands

     

    2024

     

    2023

     

    2024

     

    2023

     

    Outlook(1)

     

    Total operating expenses

     

    $

    338,315

     

    $

    319,361

     

    $

    1,327,610

     

    $

    1,144,311

     

    $1,405,000 - $1,445,000

     

    Amortization of intangible assets

     

     

    42,721

     

     

    36,886

     

     

    164,037

     

     

    114,429

     

     

     

    Depreciation and amortization of property,

     

     

     

     

     

     

     

     

     

     

     

    equipment and leasehold improvements

     

     

    4,339

     

     

    5,098

     

     

    16,978

     

     

    21,009

     

    $185,000 - $195,000

     

    Impairment related to sublease of leased property

     

     

    —

     

     

    477

     

     

    —

     

     

    477

     

     

     

    Acquisition-related integration and transaction costs(2)

     

     

    —

     

     

    1,421

     

     

    6,951

     

     

    2,427

     

     

     

    Consolidated adjusted EBITDA expenses

     

    $

    291,255

     

    $

    275,479

     

    $

    1,139,644

     

    $

    1,005,969

     

    $1,220,000 - $1,250,000

     

     

     

     

     

     

     

     

     

     

     

     

     

    Index adjusted EBITDA expenses

     

    $

    97,043

     

    $

    89,446

     

    $

    374,091

     

    $

    344,842

     

     

     

    Analytics adjusted EBITDA expenses

     

     

    88,628

     

     

    87,572

     

     

    346,794

     

     

    341,081

     

     

     

    ESG and Climate adjusted EBITDA expenses

     

     

    55,521

     

     

    50,689

     

     

    221,893

     

     

    195,890

     

     

     

    All Other - Private Assets adjusted EBITDA expenses

     

     

    50,063

     

     

    47,772

     

     

    196,866

     

     

    124,156

     

     

     

    Consolidated adjusted EBITDA expenses

     

    $

    291,255

     

    $

    275,479

     

    $

    1,139,644

     

    $

    1,005,969

     

    $1,220,000 - $1,250,000

     

     

     

     

     

     

     

     

     

     

     

     

     

    (1) We have not provided a full line-item reconciliation for total operating expenses to adjusted EBITDA expenses for this future period because we believe such a reconciliation would imply a degree of precision and certainty that could be confusing to investors and we are unable to reasonably predict certain items contained in the GAAP measure without unreasonable efforts. This is due to the inherent difficulty of forecasting the timing or amount of various items that have not yet occurred and are out of the Company's control or cannot be reasonably predicted. For the same reasons, the Company is unable to address the probable significance of the unavailable information. Forward-looking non-GAAP financial measures provided without the most directly comparable GAAP financial measures may vary materially from the corresponding GAAP financial measures. See "Forward-Looking Statements" above.

    (2) Represents transaction expenses and other costs directly related to the acquisition and integration of acquired businesses, including professional fees, severance expenses, regulatory filing fees and other costs, in each case that are incurred no later than 12 months after the close of the relevant acquisition.

    Table 12: Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow (unaudited)

     

     

    Three Months Ended

     

    Year Ended

     

    Full-Year

     

     

    Dec. 31,

    Dec. 31,

     

    Dec. 31,

    Dec. 31,

     

    2025

    In thousands

     

    2024

    2023

     

    2024

    2023

     

    Outlook(1)

    Net cash provided by operating activities

     

    $

    430,633

     

    $

    388,953

     

    $

    1,501,627

     

    $

    1,236,029

     

     

    $1,525,000 - $1,575,000

    Capital expenditures

     

     

    (14,247

    )

     

    (3,815

    )

     

    (33,762

    )

     

    (22,757

    )

     

     

    Capitalized software development costs

     

     

    (21,708

    )

     

    (18,014

    )

     

    (81,356

    )

     

    (68,094

    )

     

     

    Capex

     

     

    (35,955

    )

     

    (21,829

    )

     

    (115,118

    )

     

    (90,851

    )

     

    ($115,000 - $125,000)

    Free cash flow

     

    $

    394,678

     

    $

    367,124

     

    $

    1,386,509

     

    $

    1,145,178

     

     

    $1,400,000 - $1,460,000

     

     

     

     

     

     

     

     

    (1) We have not provided a line-item reconciliation for free cash flow to net cash provided by operating activities for this future period because we believe such a reconciliation would imply a degree of precision and certainty that could be confusing to investors and we are unable to reasonably predict certain items contained in the GAAP measure without unreasonable efforts. This is due to the inherent difficulty of forecasting the timing or amount of various items that have not yet occurred and are out of the Company's control or cannot be reasonably predicted. For the same reasons, the Company is unable to address the probable significance of the unavailable information. Forward-looking non-GAAP financial measures provided without the most directly comparable GAAP financial measures may vary materially from the corresponding GAAP financial measures. See "Forward-Looking Statements" above.

    Table 13: Fourth Quarter 2024 Reconciliation of Operating Revenue Growth to Organic Operating Revenue Growth (unaudited)

     

    Comparison of the Three Months Ended December 31, 2024 and 2023

     

    Total

     

    Recurring

    Subscription

     

    Asset-Based Fees

     

    Non-Recurring

    Revenues

    Index

    Change

    Percentage

     

    Change

    Percentage

     

    Change

    Percentage

     

    Change

    Percentage

    Operating revenue growth

    8.3%

     

    8.4%

     

    20.8%

     

    (48.9)%

    Impact of acquisitions and divestitures

    (0.1)%

     

    (0.1)%

     

    —%

     

    —%

    Impact of foreign currency exchange rate fluctuations

    0.1%

     

    0.1%

     

    —%

     

    —%

    Organic operating revenue growth

    8.3%

     

    8.4%

     

    20.8%

     

    (48.9)%

     

     

     

     

     

     

     

     

     

    Total

     

    Recurring

    Subscription

     

    Asset-Based Fees

     

    Non-Recurring

    Revenues

    Analytics

    Change

    Percentage

     

    Change

    Percentage

     

    Change

    Percentage

     

    Change

    Percentage

    Operating revenue growth

    4.9%

     

    4.9%

     

    —%

     

    5.3%

    Impact of acquisitions and divestitures

    (0.1)%

     

    (0.2)%

     

    —%

     

    —%

    Impact of foreign currency exchange rate fluctuations

    —%

     

    0.1%

     

    —%

     

    (0.6)%

    Organic operating revenue growth

    4.8%

     

    4.8%

     

    —%

     

    4.7%

     

     

     

     

     

     

     

     

     

    Total

     

    Recurring

    Subscription

     

    Asset-Based Fees

     

    Non-Recurring

    Revenues

    ESG and Climate

    Change

    Percentage

     

    Change

    Percentage

     

    Change

    Percentage

     

    Change

    Percentage

    Operating revenue growth

    11.8%

     

    10.8%

     

    —%

     

    64.1%

    Impact of acquisitions and divestitures

    (0.5)%

     

    (0.5)%

     

    —%

     

    (0.5)%

    Impact of foreign currency exchange rate fluctuations

    (2.3)%

     

    (2.3)%

     

    —%

     

    0.5%

    Organic operating revenue growth

    9.0%

     

    8.0%

     

    —%

     

    64.1%

     

     

     

     

     

     

     

     

     

    Total

     

    Recurring

    Subscription

     

    Asset-Based Fees

     

    Non-Recurring

    Revenues

    All Other - Private Assets

    Change

    Percentage

     

    Change

    Percentage

     

    Change

    Percentage

     

    Change

    Percentage

    Operating revenue growth

    6.9%

     

    7.4%

     

    —%

     

    (15.4)%

    Impact of acquisitions and divestitures

    —%

     

    —%

     

    —%

     

    —%

    Impact of foreign currency exchange rate fluctuations

    (0.2)%

     

    (0.2)%

     

    —%

     

    2.5%

    Organic operating revenue growth

    6.7%

     

    7.2%

     

    —%

     

    (12.9)%

     

     

     

     

     

     

     

     

     

    Total

     

    Recurring

    Subscription

     

    Asset-Based Fees

     

    Non-Recurring

    Revenues

    Consolidated

    Change

    Percentage

     

    Change

    Percentage

     

    Change

    Percentage

     

    Change

    Percentage

    Operating revenue growth

    7.7%

     

    7.5%

     

    20.8%

     

    (37.2)%

    Impact of acquisitions and divestitures

    (0.1)%

     

    (0.1)%

     

    —%

     

    —%

    Impact of foreign currency exchange rate fluctuations

    (0.2)%

     

    (0.4)%

     

    —%

     

    —%

    Organic operating revenue growth

    7.4%

     

    7.0%

     

    20.8%

     

    (37.2)%

    Table 14: Full-Year 2024 Reconciliation of Operating Revenue Growth to Organic Operating Revenue Growth (unaudited)

     

    Comparison of the Years Ended December 31, 2024 and 2023

     

    Total

     

    Recurring

    Subscription

     

    Asset-Based Fees

     

    Non-Recurring

    Revenues

    Index

    Change

    Percentage

     

    Change

    Percentage

     

    Change

    Percentage

     

    Change

    Percentage

    Operating revenue growth

    9.9%

     

    8.3%

     

    17.9%

     

    (29.4)%

    Impact of acquisitions and divestitures

    —%

     

    (0.1)%

     

    —%

     

    —%

    Impact of foreign currency exchange rate fluctuations

    0.1%

     

    0.3%

     

    0.1%

     

    —%

    Organic operating revenue growth

    10.0%

     

    8.5%

     

    18.0%

     

    (29.4)%

     

     

     

     

     

     

     

     

     

    Total

     

    Recurring

    Subscription

     

    Asset-Based Fees

     

    Non-Recurring

    Revenues

    Analytics

    Change

    Percentage

     

    Change

    Percentage

     

    Change

    Percentage

     

    Change

    Percentage

    Operating revenue growth

    9.6%

     

    9.2%

     

    —%

     

    30.1%

    Impact of acquisitions and divestitures

    (0.1)%

     

    (0.1)%

     

    —%

     

    —%

    Impact of foreign currency exchange rate fluctuations

    0.3%

     

    0.3%

     

    —%

     

    0.5%

    Organic operating revenue growth

    9.8%

     

    9.4%

     

    —%

     

    30.6%

     

     

     

     

     

     

     

     

     

    Total

     

    Recurring

    Subscription

     

    Asset-Based Fees

     

    Non-Recurring

    Revenues

    ESG and Climate

    Change

    Percentage

     

    Change

    Percentage

     

    Change

    Percentage

     

    Change

    Percentage

    Operating revenue growth

    13.6%

     

    12.9%

     

    —%

     

    48.9%

    Impact of acquisitions and divestitures

    (1.4)%

     

    (1.3)%

     

    —%

     

    (2.0)%

    Impact of foreign currency exchange rate fluctuations

    (2.0)%

     

    (2.1)%

     

    —%

     

    0.1%

    Organic operating revenue growth

    10.2%

     

    9.5%

     

    —%

     

    47.0%

     

     

     

     

     

     

     

     

     

    Total

     

    Recurring

    Subscription

     

    Asset-Based Fees

     

    Non-Recurring

    Revenues

    All Other - Private Assets

    Change

    Percentage

     

    Change

    Percentage

     

    Change

    Percentage

     

    Change

    Percentage

    Operating revenue growth

    48.8%

     

    48.9%

     

    —%

     

    45.5%

    Impact of acquisitions and divestitures

    (45.0)%

     

    (45.1)%

     

    —%

     

    (37.1)%

    Impact of foreign currency exchange rate fluctuations

    (0.4)%

     

    (0.5)%

     

    —%

     

    1.2%

    Organic operating revenue growth

    3.4%

     

    3.3%

     

    —%

     

    9.6%

     

     

     

     

     

     

     

     

     

    Total

     

    Recurring

    Subscription

     

    Asset-Based Fees

     

    Non-Recurring

    Revenues

    Consolidated

    Change

    Percentage

     

    Change

    Percentage

     

    Change

    Percentage

     

    Change

    Percentage

    Operating revenue growth

    12.9%

     

    13.0%

     

    17.9%

     

    (15.9)%

    Impact of acquisitions and divestitures

    (3.3)%

     

    (4.4)%

     

    —%

     

    (1.1)%

    Impact of foreign currency exchange rate fluctuations

    —%

     

    (0.1)%

     

    0.1%

     

    0.1%

    Organic operating revenue growth

    9.6%

     

    8.5%

     

    18.0%

     

    (16.9)%

     

    View source version on businesswire.com: https://www.businesswire.com/news/home/20250129668562/en/

    MSCI Inc.

    Investor Inquiries

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