MSCI Inc
For the period ended Dec 31, 2024. Filed Feb 7, 2025.
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FY2024 · Filed Feb 7, 2025
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Segment Results
The results for each of our three reportable segments and All Other - Private Assets for the years ended December 31, 2024, and 2023 are presented below:
Index Segment
The following table presents the results for the Index segment for the years indicated:
| Years Ended | |||
|---|---|---|---|
| (in thousands) | December 31, 2024 | December 31, 2023 | Increase/(Decrease) |
| Operating revenues: | |||
| Recurring subscriptions | $882,367 | $814,582 | 8.3% |
| Asset-based fees | 657,501 | 557,502 | 17.9% |
| Non-recurring | 56,277 | 79,731 | (29.4%) |
| Operating revenues total | 1,596,145 | 1,451,815 | 9.9% |
| Adjusted EBITDA expenses | 374,091 | 344,842 | 8.5% |
| Adjusted EBITDA | $1,222,054 | $1,106,973 | 10.4% |
| Adjusted EBITDA margin % | 76.6% | 76.2% | |
Index operating revenues increased 9.9% for the year ended December 31, 2024, driven by growth from asset-based fees and recurring subscriptions, partially offset by a decrease in non-recurring revenue. Adjusting for the impact of the acquisition of Foxberry and foreign currency exchange rate fluctuations, Index segment operating revenues would have increased 10.0%.
Operating revenues from recurring subscriptions increased 8.3% for the year ended December 31, 2024, primarily driven by growth from market cap-weighted and factor, ESG and climate index products.
Operating revenues from asset-based fees increased 17.9% for the year ended December 31, 2024, primarily driven by growth in revenues from ETFs linked to MSCI equity indexes and non-ETF indexed funds linked to MSCI indexes. Operating revenues from ETFs linked to MSCI equity indexes and non-ETF indexed funds linked to MSCI indexes increased by 20.0% and 19.4%, respectively, primarily driven by increases in average AUM.
Operating revenues from non-recurring revenues decreased 29.4% for the year ended December 31, 2024, primarily driven by one-time fees for unlicensed usage of our content in historical periods recognized in 2023.
Index segment Adjusted EBITDA expenses increased 8.5% for the year ended December 31, 2024, primarily driven by increases in compensation expense, relating to higher wages and salaries and incentive compensation. The increase was also driven by non-compensation expenses reflecting higher professional fees and market data costs. Adjusting for the impact of the acquisition of Foxberry and foreign currency exchange rate fluctuations, Index segment Adjusted EBITDA expenses would have increased 7.7%.
Analytics Segment
The following table presents the results for the Analytics segment for the years indicated:
| Years Ended | |||
|---|---|---|---|
| (in thousands) | December 31, 2024 | December 31, 2023 | Increase/(Decrease) |
| Operating revenues: | |||
| Recurring subscriptions | $658,610 | $603,291 | 9.2% |
| Non-recurring | 16,479 | 12,665 | 30.1% |
| Operating revenues total | 675,089 | 615,956 | 9.6% |
| Adjusted EBITDA expenses | 346,794 | 341,081 | 1.7% |
| Adjusted EBITDA | $328,295 | $274,875 | 19.4% |
| Adjusted EBITDA margin % | 48.6% | 44.6% | |
Analytics operating revenues increased 9.6% for the year ended December 31, 2024, primarily driven by growth from recurring subscriptions related to both Multi-Asset Class and Equity Analytics products. Adjusting for the impact of the acquisition of Fabric and foreign currency exchange rate fluctuations, Analytics operating revenues would have increased 9.8%.
Analytics segment Adjusted EBITDA expenses increased 1.7% for the year ended December 31, 2024, primarily driven by increases in non-compensation expense, relating to higher information technology and professional fees. Adjusting for the impact of the acquisition of Fabric and foreign currency exchange rate fluctuations, Analytics segment Adjusted EBITDA expenses would have increased 0.8%.
ESG and Climate Segment
The following table presents the results for the ESG and Climate segment for the years indicated:
| Years Ended | |||
|---|---|---|---|
| (in thousands) | December 31, 2024 | December 31, 2023 | Increase/(Decrease) |
| Operating revenues: | |||
| Recurring subscriptions | $318,835 | $282,351 | 12.9% |
| Non-recurring | 7,766 | 5,217 | 48.9% |
| Operating revenues total | 326,601 | 287,568 | 13.6% |
| Adjusted EBITDA expenses | 221,893 | 195,890 | 13.3% |
| Adjusted EBITDA | $104,708 | $91,678 | 14.2% |
| Adjusted EBITDA margin % | 32.1% | 31.9% | |
ESG and Climate operating revenues increased 13.6% for the year ended December 31, 2024, primarily driven by growth from recurring subscriptions related to Ratings, Climate and Screening products. Adjusting for the impact of the acquisition of Trove and foreign currency exchange rate fluctuations, ESG and Climate operating revenues would have increased 10.2%.
ESG and Climate segment Adjusted EBITDA expenses increased 13.3% for the year ended December 31, 2024, primarily driven by increases in compensation expenses, relating to higher wages and salaries, incentive compensation and benefits costs. Adjusting for the impact of the acquisition of Trove and foreign currency exchange rate fluctuations, ESG and Climate segment Adjusted EBITDA expenses would have increased 6.6%.
All Other – Private Assets
The following table presents the results for All Other – Private Assets for the years indicated:
| Years Ended | |||
|---|---|---|---|
| (in thousands) | December 31, 2024 | December 31, 2023 | Increase/(Decrease) |
| Operating revenues: | |||
| Recurring subscriptions | $254,633 | $171,066 | 48.9% |
| Non-recurring | 3,660 | 2,515 | 45.5% |
| Operating revenues total | 258,293 | 173,581 | 48.8% |
| Adjusted EBITDA expenses | 196,866 | 124,156 | 58.6% |
| Adjusted EBITDA | $61,427 | $49,425 | 24.3% |
| Adjusted EBITDA margin % | 23.8% | 28.5% | |
All Other – Private Assets operating revenues increased 48.8% for the year ended December 31, 2024, primarily driven by revenues attributable to the step acquisition of Burgiss. Adjusting for the impact of the step acquisition of Burgiss and foreign currency exchange rate fluctuations, All Other – Private Assets operating revenues would have increased 3.4%.
All Other – Private Assets Adjusted EBITDA expenses increased 58.6% for the year ended December 31, 2024, driven by increases in both compensation expenses and non-compensation expenses, primarily due to the step acquisition of Burgiss. Adjusting for the impact of the step acquisition of Burgiss and foreign currency exchange rate fluctuations, All Other - Private Assets Adjusted EBITDA expenses would have decreased 1.2%.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.