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 September 30, 2020 (“third quarter
2020”) and nine months ended September 30, 2020 (“nine months
2020”).
Financial and Operational Highlights for Third Quarter
2020 (Note: Percentage and other changes are relative to the
three months ended September 30, 2019 (“third quarter 2019”) unless
otherwise noted).
- Operating revenues of $425.3 million, up 7.9%
- Recurring subscription revenues up 8.7%; Asset-based fees up
4.5%; Non-recurring revenues up 16.2%
- Operating margin of 53.5%; Adjusted EBITDA margin of
58.6%
- Diluted EPS of $2.16, up 35.0%; Adjusted EPS of $2.20, up
31.0%
- New recurring subscription sales growth of 7.4%; Organic
subscription Run Rate growth of 9.4%; Retention Rate of
94.5%
- During third quarter 2020 and through October 23, 2020, a
total of 745,032 shares were repurchased at an average price of
$345.78 per share for a total value of $257.6 million
- Approximately $65.3 million in dividends were paid to
shareholders in third quarter 2020; Cash dividend of $0.78 per
share declared by MSCI Board of Directors for fourth quarter
2020
Three Months Ended
Nine Months Ended
In thousands,
Sep. 30,
Sep. 30,
YoY %
Sep. 30,
Sep. 30,
YoY %
except per share data
(unaudited)
2020
2019
Change
2020
2019
Change
Operating revenues
$
425,333
$
394,251
7.9
%
$
1,251,729
$
1,151,190
8.7
%
Operating income
$
227,620
$
201,219
13.1
%
$
650,679
$
556,272
17.0
%
Operating margin %
53.5
%
51.0
%
52.0
%
48.3
%
Net income
$
182,358
$
136,983
33.1
%
$
445,606
$
440,865
1.1
%
Diluted EPS
$
2.16
$
1.60
35.0
%
$
5.26
$
5.15
2.1
%
Adjusted EPS
$
2.20
$
1.68
31.0
%
$
5.87
$
4.77
23.1
%
Adjusted EBITDA
$
249,447
$
220,789
13.0
%
$
715,374
$
630,292
13.5
%
Adjusted EBITDA margin %
58.6
%
56.0
%
57.2
%
54.8
%
“In the midst of a global pandemic which has resulted in
economic turmoil and significant changes in how we and our clients
work, we are proud of our team’s delivery of another quarter of
over 10% growth in recurring subscription Run Rate. MSCI’s third
quarter results reflect our clients’ continued demand for our
mission-critical solutions and the resilience of our franchise,”
said Henry A. Fernandez, Chairman and CEO of MSCI.
“We have returned nearly $800 million in capital to our
shareholders year-to-date through October 23, 2020, including
opportunistic repurchases of our shares at an average price of
$283.33 and quarterly dividends. We also continue to invest in a
number of attractive ‘Triple Crown’ opportunities across our
franchise, as we remain highly confident in our long-term growth
prospects,” added Mr. Fernandez.
Third Quarter Consolidated
Results
Operating Revenues:
Operating revenues were $425.3 million, up 7.9%. The $31.1 million
increase was driven by $25.1 million in higher recurring
subscription revenues, $4.4 million in higher asset-based fees and
$1.6 million in additional non-recurring revenues.
Run Rate and Retention Rate:
Total Run Rate at September 30, 2020 was $1,719.6 million, up 10.9%
compared to September 30, 2019. The $168.9 million increase was
driven by a $123.7 million increase in recurring subscription Run
Rate and a $45.2 million increase in asset-based fees Run Rate.
Organic subscription Run Rate growth was 9.4%, driven by increases
across all three reporting segments. Retention Rate was 94.5%,
compared to 95.0% in third quarter 2019 and 93.5% in second quarter
2020.
Expenses: Total operating
expenses were $197.7 million, up slightly from third quarter 2019.
Adjusted EBITDA expenses were $175.9 million, also up slightly,
reflecting higher compensation costs partially offset by lower
travel and entertainment expense and professional fees. Total
operating expenses excluding the impact of foreign currency
exchange rate fluctuations (“ex-FX”) and adjusted EBITDA expenses
ex-FX increased 2.2% and 1.1%, respectively.
Headcount: As of September
30, 2020, headcount was 3,545 employees, with approximately 36% and
approximately 64% of employees located in developed market and
emerging market locations, respectively.
Other Expense (Income), Net:
Other expense (income), net was $38.6 million, up 18.8%. The
increase primarily reflected lower interest income due to lower
rates earned on cash balances and higher interest expense
associated with a higher debt balance for third quarter 2020
compared to third quarter 2019.
Income Taxes: The effective
tax rate was 3.5% in third quarter 2020, compared to 18.8% in third
quarter 2019. The decline was primarily due to an approximately
$27.5 million favorable impact of final regulations released during
the third quarter 2020 clarifying certain provisions established in
the Tax Cuts and Jobs Act that was enacted on December 22, 2017 and
an approximately $5.5 million income tax benefit related to the
revaluation of the cost of deemed repatriation of foreign earnings,
partially offset by an approximately $3.5 million lower benefit
associated with other prior year adjustments.
Net Income: As a result of
the factors described above, net income was $182.4 million, up
33.1%.
Adjusted EBITDA: Adjusted
EBITDA was $249.4 million, up 13.0%. Adjusted EBITDA margin in
third quarter 2020 was 58.6%, compared to 56.0% in third quarter
2019.
Index Segment:
Table 1A: Results (unaudited)
Three Months Ended
Nine Months Ended
Sep. 30,
Sep. 30,
YoY %
Sep. 30,
Sep. 30,
YoY %
In thousands
2020
2019
Change
2020
2019
Change
Operating revenues:
Recurring subscriptions
$146,387
$133,403
9.7%
$431,631
$393,222
9.8%
Asset-based fees
100,371
96,013
4.5%
288,642
265,554
8.7%
Non-recurring
8,933
8,011
11.5%
27,582
18,974
45.4%
Total operating revenues
255,691
237,427
7.7%
747,855
677,750
10.3%
Adjusted EBITDA expenses
60,971
59,747
2.0%
186,292
183,944
1.3%
Adjusted EBITDA
$194,720
$177,680
9.6%
$561,563
$493,806
13.7%
Adjusted EBITDA margin %
76.2%
74.8%
75.1%
72.9%
Index operating revenues for third quarter 2020 were $255.7
million, up 7.7%. The $18.3 million increase was driven by $13.0
million in higher recurring subscription revenues, $4.4 million in
higher asset-based fees and $0.9 million in higher non-recurring
revenues.
The increase in recurring subscription revenues was primarily
driven by growth in core products, strong growth in factor and
ESG/Climate index products and growth in custom index products. The
increase in non-recurring revenues reflected higher contributions
from licenses of historical data.
Growth in asset-based fees primarily consisted of increases from
exchange traded funds (“ETFs”) linked to MSCI indexes and from
non-ETF funds linked to MSCI indexes. The increase in revenues from
ETFs linked to MSCI indexes was driven by a 10.2% increase in
average AUM in equity ETFs linked to MSCI indexes, partially offset
by the impact of a change in product mix.
Index Run Rate as of September 30, 2020 was $1.0 billion, up
11.1%. The $99.9 million increase was driven by a $54.7 million
increase in recurring subscription Run Rate and a $45.2 million
increase in asset-based fees Run Rate. The increase in recurring
subscription Run Rate was primarily driven by strong growth in core
products, custom and specialized index products and factor and
ESG/Climate index products, with growth across all regions and all
client segments. The increase in asset-based fees Run Rate was
primarily driven by higher volume in futures and options, higher
AUM in equity ETFs linked to MSCI indexes and higher AUM in non-ETF
indexed funds linked to MSCI indexes.
Analytics Segment:
Table 1B: Results (unaudited)
Three Months Ended
Nine Months Ended
Sep. 30,
Sep. 30,
YoY %
Sep. 30,
Sep. 30,
YoY %
In thousands
2020
2019
Change
2020
2019
Change
Operating revenues:
Recurring subscriptions
$126,251
$122,120
3.4%
$376,505
$363,929
3.5%
Non-recurring
2,086
1,483
40.7%
4,903
4,790
2.4%
Total operating revenues
128,337
123,603
3.8%
381,408
368,719
3.4%
Adjusted EBITDA expenses
83,281
85,806
(2.9%)
253,868
255,453
(0.6%)
Adjusted EBITDA
$45,056
$37,797
19.2%
$127,540
$113,266
12.6%
Adjusted EBITDA margin %
35.1%
30.6%
33.4%
30.7%
Analytics operating revenues for third quarter 2020 were $128.3
million, up 3.8%. The $4.7 million increase was driven by higher
recurring subscription revenues, predominantly from Multi-Asset
Class Analytics products.
Analytics Run Rate as of September 30, 2020 was $544.3 million,
up 6.9%. The increase of $35.1 million was primarily driven by
growth in Multi-Asset Class Analytics products, with increases
across all regions. Analytics organic subscription Run Rate growth
was 5.9%.
All Other Segment:
Table 1C: Results (unaudited)
Three Months Ended
Nine Months Ended
Sep. 30,
Sep. 30,
YoY %
Sep. 30,
Sep. 30,
YoY %
In thousands
2020
2019
Change
2020
2019
Change
Operating revenues:
Recurring subscriptions
$40,552
$32,585
24.4%
$119,363
$102,470
16.5%
Non-recurring
753
636
18.4%
3,103
2,251
37.8%
Total operating revenues
41,305
33,221
24.3%
122,466
104,721
16.9%
Adjusted EBITDA expenses
31,634
27,909
13.3%
96,195
81,501
18.0%
Adjusted EBITDA
$9,671
$5,312
82.1%
$26,271
$23,220
13.1%
Adjusted EBITDA margin %
23.4%
16.0%
21.5%
22.2%
All Other operating revenues for third quarter 2020 were $41.3
million, up 24.3%. The $8.1 million increase was driven by $5.8
million of higher ESG operating revenues, primarily driven by
strong growth from Ratings, Climate and Screening products, and
$2.3 million of higher Real Estate operating revenues, primarily
driven by strong growth in Enterprise Analytics and Global Intel
products. Total ESG operating revenues were $28.5 million and total
Real Estate operating revenues were $12.8 million. All Other
organic operating revenue growth was 18.6%, including ESG organic
operating revenue growth of 19.4% and Real Estate organic operating
revenue growth of 16.7%.
All Other Run Rate as of September 30, 2020 was $175.2 million,
up 24.0%. The $34.0 million increase was driven by a $29.1 million
increase in ESG Run Rate, reflecting strong growth in Ratings and
Climate products. Real Estate Run Rate increased $4.9 million,
reflecting growth in Global Intel and Enterprise Analytics
products. All Other organic subscription Run Rate growth was 19.5%,
with ESG organic subscription Run Rate growth of 26.3% and Real
Estate organic subscription Run Rate growth of 6.5%.
Select Balance Sheet Items and Capital
Allocation
Cash Balances and Outstanding
Debt: Cash and cash equivalents was $1.3 billion as of
September 30, 2020. MSCI typically seeks to maintain minimum cash
balances globally of approximately $200.0 million to $250.0 million
for general operating purposes but may maintain higher minimum cash
balances while the COVID-19 pandemic continues to impact global
economic markets.
Total outstanding debt as of September 30, 2020 was $3.4
billion. The total debt to net income ratio (based on trailing
twelve months net income) was 5.9x. The total debt to adjusted
EBITDA ratio (based on trailing twelve months adjusted EBITDA) was
3.6x.
MSCI seeks to maintain gross leverage to adjusted EBITDA in a
target range of 3.0x to 3.5x.
Capex and Cash Flow: For
third quarter 2020, Capex was $11.7 million, cash provided by
operating activities was $199.8 million, up 6.0%, and free cash
flow was $188.1 million, up 8.2%.
Share Count and Share
Repurchases: Weighted average diluted shares outstanding
were 84.5 million in third quarter 2020, down 1.3% year-over-year.
In third quarter 2020, a total of 598,031 shares were repurchased
at an average price of $345.41 per share for a total value of
$206.6 million. From October 1st through 23rd, an incremental
147,001 shares were repurchased at an average price of $347.26 per
share for a total value of $51.0 million. A total of $0.8 billion
of outstanding share repurchase authorization remains as of October
23, 2020. Total shares outstanding as of September 30, 2020 were
83.0 million.
Dividends: Approximately
$65.3 million in dividends was paid to shareholders in third
quarter 2020. On October 26, 2020, the MSCI Board of Directors
declared a cash dividend of $0.78 per share for fourth quarter
2020, payable on November 30, 2020 to shareholders of record as of
the close of trading on November 13, 2020.
Full-Year 2020 Guidance
MSCI's guidance for 2020 is based on assumptions about a number
of macroeconomic and capital market factors, in particular related
to equity 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 ongoing uncertainty
related to the duration, magnitude and impact of the COVID-19
pandemic.
Guidance Item
Current Guidance for Full-Year
2020
Prior Guidance for Full-Year
2020
Operating Expense
$800 to $820 million
$790 to $840 million
Adjusted EBITDA Expense
$710 to $730 million
$700 to $750 million
Interest Expense (including
amortization of financing fees)(1)
~$158 million
~$158 million
Depreciation & Amortization
Expense
~$90 million
~$90 million
Effective Tax Rate
11.5% to 13.5%
16% to 19%
Capital Expenditures
$50 to $55 million
$50 to $60 million
Net Cash Provided by Operating
Activities
$705 to $750 million
$600 to $650 million (toward the
upper end of the range)
Free Cash Flow
$650 to $700 million
$540 to $600 million (toward the
upper end of the range)
(1) Interest income will continue to be
impacted by the lower rates available on cash balances.
Conference Call Information
MSCI's senior management will review the third quarter 2020
results on Tuesday, October 27, 2020 at 11:00 AM Eastern Time. To
listen to the live event, visit the events and presentations
section of MSCI's Investor Relations homepage,
https://ir.msci.com/events-and-presentations, or dial
1-877-376-9931 conference ID: 9725609 within the United States.
International callers may dial 1-720-405-2251 conference ID:
9725609. The teleconference will also be webcast with an
accompanying slide presentation which can be accessed through
MSCI's Investor Relations website. An archived replay of the
webcast also will be available shortly after the live event on
MSCI's Investor Relations website,
https://ir.msci.com/events-and-presentations.
About MSCI Inc.
MSCI is a leading provider of critical decision support tools
and services for the global investment community. With over 45
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 2020 guidance.
These forward-looking statements relate to future events or to
future financial performance and involve 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, 2019 filed with the Securities and Exchange Commission
(“SEC”) on February 18, 2020 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 or uncertainties 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 website, including its quarterly updates, blog,
podcasts and social media channels, including its corporate Twitter
account (@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, quarterly
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 Subscription” 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 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 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 notice is not
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 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 Estate
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-sale 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 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 with respect to
which we have received a notice of termination or non-renewal
during the period and have determined that such notice evidences
the client’s final decision to terminate or not renew the
applicable products or services, even though such notice is not
effective until a later date.
“Organic 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 15 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 the impact related to
the vesting of the multi-year restricted stock units subject to
performance payout adjustments granted in 2016 (the “Multi-Year
PSUs”).
“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 the impact
related to the vesting of the Multi-Year PSUs.
“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, the impact of divestitures,
the impact of adjustments for the Tax Cuts and Jobs Act that was
enacted on December 22, 2017 (“Tax Reform”), except for amounts
associated with active tax planning implemented as a result of Tax
Reform, and, at times, certain other transactions or adjustments,
including the impact related to the vesting of the Multi-Year PSUs
and costs associated with debt extinguishment.
“Adjusted tax rate” is defined as the effective tax rate
excluding the impact of Tax Reform adjustments (except for amounts
associated with active tax planning implemented as a result of Tax
Reform) and the impact related to the vesting of the Multi-Year
PSUs.
“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 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 adjusted tax rate is useful to investors because
it increases the comparability of period-to-period results by
adjusting for the estimated net impact of Tax Reform and the impact
related to the vesting of the Multi-Year PSUs.
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, adjusted net income,
adjusted EPS, adjusted tax rate, 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. More than
three-fifths of the AUM are invested in securities denominated in
currencies other than the U.S. dollar, and accordingly, any such
impact is excluded from the disclosed foreign currency-adjusted
variances.
Table 2: Condensed Consolidated Statements of Income
(unaudited)
Three Months Ended
Nine Months Ended
Sep. 30,
Sep. 30,
YoY %
Sep. 30,
Sep. 30,
YoY %
In thousands, except per share
data
2020
2019
Change
2020
2019
Change
Operating revenues
$
425,333
$
394,251
7.9
%
$
1,251,729
$
1,151,190
8.7
%
Operating expenses:
Cost of revenues
70,704
70,486
0.3
%
215,769
224,807
(4.0
%)
Selling and marketing
52,668
52,107
1.1
%
159,834
159,812
—
%
Research and development
24,901
24,310
2.4
%
73,997
71,234
3.9
%
General and administrative
27,613
26,559
4.0
%
86,755
80,434
7.9
%
Amortization of intangible assets
14,333
12,361
16.0
%
42,171
36,167
16.6
%
Depreciation and amortization of
property,
equipment and leasehold improvements
7,494
7,209
4.0
%
22,524
22,464
0.3
%
Total operating expenses(1)
197,713
193,032
2.4
%
601,050
594,918
1.0
%
Operating income
227,620
201,219
13.1
%
650,679
556,272
17.0
%
Interest income
(475
)
(3,673
)
(87.1
%)
(4,729
)
(11,104
)
(57.4
%)
Interest expense
37,536
35,922
4.5
%
118,994
107,752
10.4
%
Other expense (income)
1,516
222
n/m
45,355
2,839
n/m
Other expense (income), net
38,577
32,471
18.8
%
159,620
99,487
60.4
%
Income before provision for income
taxes
189,043
168,748
12.0
%
491,059
456,785
7.5
%
Provision for income taxes
6,685
31,765
(79.0
%)
45,453
15,920
185.5
%
Net income
$
182,358
$
136,983
33.1
%
$
445,606
$
440,865
1.1
%
Earnings per basic common share
$
2.18
$
1.62
34.6
%
$
5.30
$
5.21
1.7
%
Earnings per diluted common share
$
2.16
$
1.60
35.0
%
$
5.26
$
5.15
2.1
%
Weighted average shares outstanding
used
in computing earnings per share:
Basic
83,602
84,765
(1.4
%)
84,044
84,591
(0.6
%)
Diluted
84,479
85,550
(1.3
%)
84,789
85,533
(0.9
%)
n/m: not meaningful.
(1) Includes stock-based compensation
expense of $12.0 million and $10.6 million for the three months
ended Sep. 30, 2020 and Sep. 30, 2019, respectively. Includes
stock-based compensation expense of $43.3 million and $32.6 million
for the nine months ended Sep. 30, 2020 and Sep. 30, 2019,
respectively.
Table 3: Selected Balance Sheet Items (unaudited)
As of
Sep. 30,
Dec. 31,
In thousands
2020
2019
Cash and cash equivalents
$1,302,858
$1,506,567
Accounts receivable, net of allowances
$429,804
$499,268
Deferred revenue
$531,487
$574,656
Long-term debt(1)
$3,365,783
$3,071,926
(1) Consists of gross long-term debt, net
of deferred financing fees. Gross long-term debt was $3,400.0
million at Sep. 30, 2020 and $3,100.0 million at Dec. 31, 2019.
Table 4: Selected Cash Flow Items (unaudited)
Three Months Ended
Nine Months Ended
Sep. 30,
Sep. 30,
YoY %
Sep. 30,
Sep. 30,
YoY %
In thousands
2020
2019
Change
2020
2019
Change
Net cash provided by operating
activities
$
199,795
$
188,535
6.0
%
$
575,181
$
465,880
23.5
%
Net cash used in investing activities
(11,725
)
(14,765
)
(20.6
%)
(224,899
)
(35,292
)
n/m
Net cash used in financing activities
(274,433
)
(58,766
)
n/m
(549,484
)
(450,315
)
22.0
%
Effect of exchange rate changes
4,244
(4,971
)
185.4
%
(4,507
)
(3,299
)
(36.6
%)
Net increase (decrease) in cash and
cash equivalents
$
(82,119
)
$
110,033
(174.6
%)
$
(203,709
)
$
(23,026
)
n/m
n/m: not meaningful.
Table 5: Operating Results by Segment and Revenue Type
(unaudited)
Index
Three Months Ended
Nine Months Ended
Sep. 30,
Sep. 30,
YoY %
Sep. 30,
Sep. 30,
YoY %
In thousands
2020
2019
Change
2020
2019
Change
Operating revenues:
Recurring subscriptions
$
146,387
$
133,403
9.7
%
$
431,631
$
393,222
9.8
%
Asset-based fees
100,371
96,013
4.5
%
288,642
265,554
8.7
%
Non-recurring
8,933
8,011
11.5
%
27,582
18,974
45.4
%
Total operating revenues
255,691
237,427
7.7
%
747,855
677,750
10.3
%
Adjusted EBITDA expenses
60,971
59,747
2.0
%
186,292
183,944
1.3
%
Adjusted EBITDA
$
194,720
$
177,680
9.6
%
$
561,563
$
493,806
13.7
%
Adjusted EBITDA margin %
76.2
%
74.8
%
75.1
%
72.9
%
Analytics
Three Months Ended
Nine Months Ended
Sep. 30,
Sep. 30,
YoY %
Sep. 30,
Sep. 30,
YoY %
In thousands
2020
2019
Change
2020
2019
Change
Operating revenues:
Recurring subscriptions
$
126,251
$
122,120
3.4
%
$
376,505
$
363,929
3.5
%
Non-recurring
2,086
1,483
40.7
%
4,903
4,790
2.4
%
Total operating revenues
128,337
123,603
3.8
%
381,408
368,719
3.4
%
Adjusted EBITDA expenses
83,281
85,806
(2.9
%)
253,868
255,453
(0.6
%)
Adjusted EBITDA
$
45,056
$
37,797
19.2
%
$
127,540
$
113,266
12.6
%
Adjusted EBITDA margin %
35.1
%
30.6
%
33.4
%
30.7
%
All Other
Three Months Ended
Nine Months Ended
Sep. 30,
Sep. 30,
YoY %
Sep. 30,
Sep. 30,
YoY %
In thousands
2020
2019
Change
2020
2019
Change
Operating revenues:
Recurring subscriptions
$
40,552
$
32,585
24.4
%
$
119,363
$
102,470
16.5
%
Non-recurring
753
636
18.4
%
3,103
2,251
37.8
%
Total operating revenues
41,305
33,221
24.3
%
122,466
104,721
16.9
%
Adjusted EBITDA expenses
31,634
27,909
13.3
%
96,195
81,501
18.0
%
Adjusted EBITDA
$
9,671
$
5,312
82.1
%
$
26,271
$
23,220
13.1
%
Adjusted EBITDA margin %
23.4
%
16.0
%
21.5
%
22.2
%
Consolidated
Three Months Ended
Nine Months Ended
Sep. 30,
Sep. 30,
YoY %
Sep. 30,
Sep. 30,
YoY %
In thousands
2020
2019
Change
2020
2019
Change
Operating revenues:
Recurring subscriptions
$
313,190
$
288,108
8.7
%
$
927,499
$
859,621
7.9
%
Asset-based fees
100,371
96,013
4.5
%
288,642
265,554
8.7
%
Non-recurring
11,772
10,130
16.2
%
35,588
26,015
36.8
%
Operating revenues total
425,333
394,251
7.9
%
1,251,729
1,151,190
8.7
%
Adjusted EBITDA expenses
175,886
173,462
1.4
%
536,355
520,898
3.0
%
Adjusted EBITDA
$
249,447
$
220,789
13.0
%
$
715,374
$
630,292
13.5
%
Adjusted EBITDA margin %
58.6
%
56.0
%
57.2
%
54.8
%
Operating margin %
53.5
%
51.0
%
52.0
%
48.3
%
Table 6: Sales and Retention Rate by Segment
(unaudited)(1)
Three Months Ended
Nine Months Ended
Sep. 30,
Sep. 30,
Sep. 30,
Sep. 30,
In thousands
2020
2019
2020
2019
Index
New recurring subscription sales
$
18,743
$
17,553
$
58,073
$
54,408
Subscription cancellations
(7,050
)
(5,066
)
$
(19,589
)
(13,033
)
Net new recurring subscription sales
$
11,693
$
12,487
$
38,484
$
41,375
Non-recurring sales
$
10,001
$
9,029
$
30,734
$
20,092
Total gross sales
$
28,744
$
26,582
$
88,807
$
74,500
Total Index net sales
$
21,694
$
21,516
$
69,218
$
61,467
Index Retention Rate
95.0
%
96.0
%
95.3
%
96.5
%
Analytics
New recurring subscription sales
$
15,229
$
15,285
$
41,426
$
41,705
Subscription cancellations
(8,211
)
(7,854
)
$
(27,008
)
(22,720
)
Net new recurring subscription sales
$
7,018
$
7,431
$
14,418
$
18,985
Non-recurring sales
$
2,562
$
4,876
$
7,486
$
10,084
Total gross sales
$
17,791
$
20,161
$
48,912
$
51,789
Total Analytics net sales
$
9,580
$
12,307
$
21,904
$
29,069
Analytics Retention Rate
93.8
%
93.6
%
93.2
%
93.8
%
All Other
New recurring subscription sales
$
9,344
$
7,495
$
29,861
$
22,724
Subscription cancellations
(1,871
)
(1,002
)
$
(6,167
)
(4,179
)
Net new recurring subscription sales
$
7,473
$
6,493
$
23,694
$
18,545
Non-recurring sales
$
247
$
487
$
1,852
$
1,571
Total gross sales
$
9,591
$
7,982
$
31,713
$
24,295
Total All Other net sales
$
7,720
$
6,980
$
25,546
$
20,116
All Other Retention Rate
95.1
%
96.8
%
94.6
%
95.5
%
Consolidated
New recurring subscription sales
$
43,316
$
40,333
$
129,360
$
118,837
Subscription cancellations
(17,132
)
(13,922
)
(52,764
)
(39,932
)
Net new recurring subscription sales
$
26,184
$
26,411
$
76,596
$
78,905
Non-recurring sales
$
12,810
$
14,392
$
40,072
$
31,747
Total gross sales
$
56,126
$
54,725
$
169,432
$
150,584
Total net sales
$
38,994
$
40,803
$
116,668
$
110,652
Total Retention Rate
94.5
%
95.0
%
94.3
%
95.2
%
(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.
Table 7: AUM in Equity ETFs Linked to MSCI Indexes
(unaudited)(1)(2)(3)
Three Months Ended
Nine Months Ended
Sep. 30,
June 30,
Mar. 31,
Dec. 31,
Sep. 30,
Sep. 30,
Sep. 30,
In billions
2020
2020
2020
2019
2019
2020
2019
Beginning Period AUM in equity ETFs linked
to
MSCI indexes
$
825.4
$
709.5
$
934.4
$
815.0
$
819.3
$
934.4
$
695.6
Market Appreciation/(Depreciation)
57.0
117.4
(216.5
)
63.5
(9.2
)
(42.1
)
84.0
Cash Inflows
26.5
(1.5
)
(8.4
)
55.9
4.9
16.6
35.4
Period-End AUM in equity ETFs linked
to
MSCI indexes
$
908.9
$
825.4
$
709.5
$
934.4
$
815.0
$
908.9
$
815.0
Period Average AUM in equity ETFs linked
to
MSCI indexes
$
893.4
$
776.9
$
877.1
$
869.1
$
810.9
$
849.1
$
796.1
Period-End Basis Point Fee(4)
2.67
2.67
2.71
2.82
2.81
2.67
2.81
(1) The historical values of the AUM in
equity ETFs linked to our indexes as of the last day of the month
and the monthly average balance can be found under the link “AUM in
equity ETFs Linked to MSCI 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 with the SEC. The AUM in equity ETFs also
includes AUM in Exchange Traded Notes, the value of which is less
than 1.0% of the AUM amounts presented.
(2) The values for periods prior to April
26, 2019 were based on data from Bloomberg and MSCI, while the
values for periods on or after April 26, 2019 were based on data
from Refinitiv and MSCI. De minimis amounts of data are reported on
a delayed basis.
(3) The value of AUM in equity ETFs linked
to MSCI indexes is calculated by multiplying the equity ETFs net
asset value by the number of shares outstanding.
(4) Based on period-end Run Rate for
equity ETFs linked to MSCI indexes using period-end AUM.
Table 8: Run Rate by Segment and Type (unaudited)(1)
As of
Sep. 30,
Sep. 30,
YoY %
In thousands
2020
2019
Change
Index
Recurring subscriptions
$
598,799
$
544,059
10.1
%
Asset-based fees
401,196
356,013
12.7
%
Index Run Rate
999,995
900,072
11.1
%
Analytics Run Rate
544,315
509,261
6.9
%
All Other Run Rate
175,243
141,283
24.0
%
Total Run Rate
$
1,719,553
$
1,550,616
10.9
%
Total recurring subscriptions
$
1,318,357
$
1,194,603
10.4
%
Total asset-based fees
401,196
356,013
12.7
%
Total Run Rate
$
1,719,553
$
1,550,616
10.9
%
(1) See "Notes Regarding the Use of
Operating Metrics" for details regarding the definition of Run
Rate.
Table 9: Reconciliation of Adjusted EBITDA to Net Income
(unaudited)
Three Months Ended
Nine Months Ended
Sep. 30,
Sep. 30,
Sep. 30,
Sep. 30,
In thousands
2020
2019
2020
2019
Index adjusted EBITDA
$
194,720
$
177,680
$
561,563
$
493,806
Analytics adjusted EBITDA
45,056
37,797
127,540
113,266
All Other adjusted EBITDA
9,671
5,312
26,271
23,220
Consolidated adjusted EBITDA
249,447
220,789
715,374
630,292
Multi-Year PSU payroll tax expense
—
—
—
15,389
Amortization of intangible assets
14,333
12,361
42,171
36,167
Depreciation and amortization of
property,
equipment and leasehold improvements
7,494
7,209
22,524
22,464
Operating income
227,620
201,219
650,679
556,272
Other expense (income), net
38,577
32,471
159,620
99,487
Provision for income taxes
6,685
31,765
45,453
15,920
Net income
$
182,358
$
136,983
$
445,606
$
440,865
Table 10: Reconciliation of Net Income and Diluted EPS to
Adjusted Net Income and Adjusted EPS (unaudited)
Three Months Ended
Nine Months Ended
Sep. 30,
Sep. 30,
Sep. 30,
Sep. 30,
In thousands, except per share
data
2020
2019
2020
2019
Net income
$
182,358
$
136,983
$
445,606
$
440,865
Plus: Amortization of acquired intangible
assets and
equity method investment basis
difference
9,515
8,616
27,885
25,995
Plus: Multi-Year PSU payroll tax
expense
—
—
—
15,389
Less: Discrete excess tax benefit related
to
Multi-Year PSU vesting
—
—
—
(66,581
)
Plus: Debt extinguishment costs associated
with the
2024 and 2025 Senior Notes Redemptions
—
—
44,930
—
Less: Tax Reform adjustments
(5,497
)
—
(6,256
)
—
Less: Income tax effect
(532
)
(1,702
)
(14,483
)
(7,474
)
Adjusted net income
$
185,844
$
143,897
$
497,682
$
408,194
Diluted EPS
$
2.16
$
1.60
$
5.26
$
5.15
Plus: Amortization of acquired intangible
assets and
equity method investment basis
difference
0.11
0.10
0.33
0.30
Plus: Multi-Year PSU payroll tax
expense
—
—
—
0.18
Less: Discrete excess tax benefit related
to
Multi-Year PSU vesting
—
—
—
(0.78
)
Plus: Debt extinguishment costs associated
with the
2024 and 2025 Senior Notes Redemptions
—
—
0.53
—
Less: Tax Reform adjustments
(0.07
)
—
(0.07
)
—
Less: Income tax effect
—
(0.02
)
(0.18
)
(0.08
)
Adjusted EPS
$
2.20
$
1.68
$
5.87
$
4.77
Table 11: Reconciliation of Adjusted EBITDA Expenses to
Operating Expenses (unaudited)
Three Months Ended
Nine Months Ended
Full-Year
Sep. 30,
Sep. 30,
Sep. 30,
Sep. 30,
2020
In thousands
2020
2019
2020
2019
Outlook(1)
Index adjusted EBITDA expenses
$
60,971
$
59,747
$
186,292
$
183,944
Analytics adjusted EBITDA expenses
83,281
85,806
253,868
255,453
All Other adjusted EBITDA expenses
31,634
27,909
96,195
81,501
Consolidated adjusted EBITDA
expenses
175,886
173,462
536,355
520,898
$710,000 - $730,000
Multi-Year PSU payroll tax expense
—
—
—
15,389
Amortization of intangible assets
14,333
12,361
42,171
36,167
Depreciation and amortization of
property,
~$90,000
equipment and leasehold improvements
7,494
7,209
22,524
22,464
Total operating expenses
$
197,713
$
193,032
$
601,050
$
594,918
$800,000 - $820,000
(1) We have not provided a full line-item
reconciliation for adjusted EBITDA expenses to total operating
expenses for this future period because we do not provide guidance
on the individual reconciling items between total operating
expenses and adjusted EBITDA expenses.
Table 12: Reconciliation of Net Cash Provided by Operating
Activities to Free Cash Flow (unaudited)
Three Months Ended
Nine Months Ended
Full-Year
Sep. 30,
Sep. 30,
Sep. 30,
Sep. 30,
2020
In thousands
2020
2019
2020
2019
Outlook(1)
Net cash provided by operating
activities
$
199,795
$
188,535
$
575,181
$
465,880
$705,000 - $750,000
Capital expenditures
(4,555
)
(7,782
)
(12,152
)
(17,216
)
Capitalized software development costs
(7,170
)
(6,983
)
(21,931
)
(18,086
)
Capex
(11,725
)
(14,765
)
(34,083
)
(35,302
)
($55,000 - $50,000)
Free cash flow
$
188,070
$
173,770
$
541,098
$
430,578
$650,000 - $700,000
(1) We have not provided a line-item
reconciliation for free cash flow to net cash from operating
activities for this future period because we do not provide
guidance on the individual reconciling items between net cash from
operating activities and free cash flow.
Table 13: Reconciliation of Effective Tax Rate to Adjusted
Tax Rate (unaudited)
Three Months Ended
Nine Months Ended
Sep. 30,
Sep. 30,
Sep. 30,
Sep. 30,
2020
2019
2020
2019
Effective tax rate
3.5%
18.8%
9.3%
3.5%
Tax Reform impact on effective tax
rate
2.9%
—%
1.2%
—%
Multi-Year PSU impact on effective tax
rate
—%
—%
—%
14.6%
Adjusted tax rate
6.4%
18.8%
10.5%
18.1%
Table 14: Third Quarter 2020 Reconciliation of Operating
Revenue Growth to Organic Operating Revenue Growth
(unaudited)
Comparison of the Three Months
Ended September 30, 2020 and 2019
Total
Recurring
Subscription
Asset-Based Fees
Non-Recurring
Revenues
Index
Change
Percentage
Change
Percentage
Change
Percentage
Change
Percentage
Operating revenue growth
7.7%
9.7%
4.5%
11.5%
Impact of acquisitions and
divestitures
—%
—%
—%
—%
Impact of foreign currency exchange
rate
fluctuations
(0.1%)
—%
—%
—%
Organic operating revenue growth
7.6%
9.7%
4.5%
11.5%
Total
Recurring
Subscription
Asset-Based Fees
Non-Recurring
Revenues
Analytics
Change
Percentage
Change
Percentage
Change
Percentage
Change
Percentage
Operating revenue growth
3.8%
3.4%
—%
40.7%
Impact of acquisitions and
divestitures
—%
—%
—%
—%
Impact of foreign currency exchange
rate
fluctuations
—%
(0.1%)
—%
(0.2%)
Organic operating revenue growth
3.8%
3.3%
—%
40.5%
Total
Recurring
Subscription
Asset-Based Fees
Non-Recurring
Revenues
All Other
Change
Percentage
Change
Percentage
Change
Percentage
Change
Percentage
Operating revenue growth
24.3%
24.4%
—%
18.4%
Impact of acquisitions and
divestitures
(2.1%)
(1.4%)
—%
(35.2%)
Impact of foreign currency exchange
rate
fluctuations
(3.6%)
(3.7%)
—%
(0.7%)
Organic operating revenue growth
18.6%
19.3%
—%
(17.5%)
Total
Recurring
Subscription
Asset-Based Fees
Non-Recurring
Revenues
Consolidated
Change
Percentage
Change
Percentage
Change
Percentage
Change
Percentage
Operating revenue growth
7.9%
8.7%
4.5%
16.2%
Impact of acquisitions and
divestitures
(0.2%)
(0.2%)
—%
(2.2%)
Impact of foreign currency exchange
rate
fluctuations
(0.4%)
(0.4%)
—%
(0.1%)
Organic operating revenue growth
7.3%
8.1%
4.5%
13.9%
Table 15: Nine Months 2020 Reconciliation of Operating
Revenue Growth to Organic Operating Revenue Growth
(unaudited)
Comparison of the Nine Months
Ended September 30, 2020 and 2019
Total
Recurring
Subscription
Asset-Based Fees
Non-Recurring
Revenues
Index
Change
Percentage
Change
Percentage
Change
Percentage
Change
Percentage
Operating revenue growth
10.3%
9.8%
8.7%
45.4%
Impact of acquisitions and
divestitures
—%
—%
—%
—%
Impact of foreign currency exchange
rate
fluctuations
—%
(0.1%)
—%
—%
Organic operating revenue growth
10.3%
9.7%
8.7%
45.4%
Total
Recurring
Subscription
Asset-Based Fees
Non-Recurring
Revenues
Analytics
Change
Percentage
Change
Percentage
Change
Percentage
Change
Percentage
Operating revenue growth
3.4%
3.5%
—%
2.4%
Impact of acquisitions and
divestitures
—%
—%
—%
—%
Impact of foreign currency exchange
rate
fluctuations
—%
(0.1%)
—%
(0.3%)
Organic operating revenue growth
3.4%
3.4%
—%
2.1%
Total
Recurring Subscription
Asset-Based Fees
Non-Recurring Revenues
All Other
Change
Percentage
Change
Percentage
Change
Percentage
Change
Percentage
Operating revenue growth
16.9%
16.5%
—%
37.8%
Impact of acquisitions and
divestitures
(1.2%)
(0.9%)
—%
(16.6%)
Impact of foreign currency exchange
rate
fluctuations
0.3%
0.3%
—%
0.6%
Organic operating revenue growth
16.0%
15.9%
—%
21.8%
Total
Recurring
Subscription
Asset-Based Fees
Non-Recurring
Revenues
Consolidated
Change
Percentage
Change
Percentage
Change
Percentage
Change
Percentage
Operating revenue growth
8.7%
7.9%
8.7%
36.8%
Impact of acquisitions and
divestitures
(0.1%)
(0.1%)
—%
(1.4%)
Impact of foreign currency exchange
rate
fluctuations
—%
—%
—%
(0.1%)
Organic operating revenue growth
8.6%
7.8%
8.7%
35.3%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20201027005333/en/
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