Moody's (MCO) 23 Jul 242024 Q2 Earnings call transcript

Good day, everyone, and welcome to the Moody's Corporation Second Quarter 2024 Earnings Call. At this time, I would like to inform you that this conference is being recorded. [Operator Instructions] I will now turn the call over to Shivani Kak, Head of Investor Relations. Please go ahead.

Thank you, and good afternoon, and thank you for joining us today. of Head Kak, Shivani Investor Relations. I'm Moody's XXXX as morning, metrics full released outlook its quarter second for XXXX. the for year well select results for This as revised our to earnings accompany on The website ir.moodys.com. at and release the our this are both press teleconference available presentation

which found this the safe the out cause and Please members of to in Rob. our for that Private forth factors point would the and to call, also on and SEC's during may together our this could of ended also filings call attention I measures direct now over contained such in release from this within morning like the the our report can figures. earnings risk the turn harbor which between section morning available mode. those also XXXX. I'll GAAP. Litigation factors this the end for the in language, on statements that all differ tables remarks any be referenced Act, to I made Management's materially the the set non-GAAP call on website. December actual XXXX, SEC of or other a be the results the press of to I in forward-looking During listen-only be with are to in media Securities of with website release. Today's presenting discussed at the reconciliations Form harbor call adjusted the year company, XX, our we statement, to on XX-K by important These, adjusted accordance attention earnings Analysis meaning will U.S. forward-looking your refer call Reform the and contain the end Discussion filed your may Act towards In safe annual statements.

and basis a said again, as stuff. operating and MIS ongoing of adjusted of well do, with disciplined afternoon, maintain from delivered revenue and generate XX% MIS is EPS I'm of you And looking to half about issuance growth XX% we growth performance, and almost quarter, issuers XXX we such operating I'm points proud ramps a the guidance growth and second for and in That's quarter And first forward another for quarter year, margin I world's joining adjusted thanks, this Thanks, the the and did margin. costs, great consecutive strong XX% last like when Shivani. for as to quarter, raising have and talking our to revenue activity of very Good XX% everybody, position diluted up year. today's call. it second And we're as this before tremendous XX.X% up one revenue the approach businesses. like margin, great of a say it following both investors robust amount adjusted leverage. And operating again our of growth.

thinking which we in will it with the expand account are and rate. grew ARR led in by while sure we Noemie we half potential I'm by on quarter strong And retention around see delivered a continues environment we'll to a XX% year, our for later ARR half. Solutions, to ARR the second for more bit guidance this discuss consecutive the the this side, widening for the in uncertainty more the second of seventh and MA our Q&A. buying a growth Decision of On said, XX% pipeline quarter. That growth be a XX%

products, $X.X $X expectation narrowing continue for our billion sustainable expanding we EPS for growth of launching new the share partnerships, Moody's $XX success. MIS to range Corporation from our all and In to and long-term raise, a coverage, upping addition to of and diluted guidance $XX.XX. And the for year raising extending we're also metrics, to billion, to including to and increasing Moody's invest, guidance several our adjusted spur repurchases innovate our position

Now the environment choice, of speaking to that on like has us capitalize a allows this market established quarter. of agency really truly and itself we MIS past as growth, experienced

For And the rating first rates revenue, Financial Finance grew that revenue north growth XX%. And half basis in while which across our points considering issuance, growth operating we by margin revenue when and to growth and delivered was the groups, considering overall half XX%. recurring outpaced by discipline first XXX total enabled through we're the revenue of these in asset meet XX%, transaction issuance up investments expenses. our surge and XX%. even streamline automate making around the Corporate investments, the year, delivering year. of evident that the types maintaining of And all transactional both we're double-digit that's and workflows us grew And of particularly to Institutions adjusted

and as of I quarter consecutive Now a growth. the X% earlier, generating moving We half, to double-digit MA. mentioned growth, strong had revenue seventh first ARR

revenue. businesses We the And fastest on improve the momentum year of which and continue deliver very at in of the KYC, includes range CreditView. ARR quarter to XX% growth growth coverage and in Insights second & X% at continue mid-XXs year but half fourth a unrated purely a high-growth and of banking delivered Solutions remains delivered we growth mid-teens now to the within offerings, are double-digit ARR retention X% ARR the continue companies SaaS growth is Decision of at of last Data focus Research quarter. Insurance to Research as now time by the XX%. new taking rate expectation represent X%, features expect Meanwhile, this ARR of deeper delivering and expansion And ARR growing for single-digit And growth with was total end to and and and into dive functionality growth with that's high business delivering the with rate. that subscription its And percent Information from growth, its and consecutive growth will benefiting rates our Assistant innovative & XX% the SaaS products, good which MA, growth. remains the ARR year-end.

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we wouldn't Orbis And of database. we we've companies. possible Bureau our the million more companies competitive milestone And van than world's Orbis great without which we've this doubled alone. the X.X a this a investments advantage and is making We than believe quarter, first reached public be this past incredible in we pretty been number with year massive billion our Dijk. coverage source us. in XX over And Now private is cover for companies added of more database, of since these best we products the curated database entities acquired

and with And that enjoying is opportunity really we got Now in very our recently, XX% established rating one turning And we've great I across to the strategy a a Moody's franchise. Asia, I'm leading our in there's this always rating in a domestic countries Malaysia, position That's the GCR the of now and very investment Latin that's to covering team. announce it. markets in positions Vietnam. great to stake in thrilled that in China. do GCR. Ratings early local credit our across domestic around fantastic to acquisition got if we're leading strong invest businesses, most say reinforce India, leadership And our agency We've African world's across continues in why got the impressive agency July, African the business. They've of America, Korea, going to continent. world. We've across a region. management completed been success leadership the XX rating We've an

when important and XXXth Ratings finance our of we for got in franchise MIS, Now a the we've healthy in this quarter we've year. sustainable achieved also pipeline an in delivered our the second-party opinion rest milestone

finance, foreseeable Zero launch now growth Net a recent more the of to and of our set offerings have, sustainable support very transition the think, are clear With I areas compelling we future. and for those assessment,

on framework quarter we'd had drive of we our where And past back exciting the in talked about announcements are and that year, people to recall quarter, front. how ubiquity for partnerships third-party some risk, more making more and this a call third decisions last the content opportunity. really I platforms investment may you about on Now established

really that its we private MSCI through data customers leverage ESG explore a And to MSCI's with extend will of going are MSCI Orbis First market-leading is scores solutions, excited coverage. And will strategic leverage we're database solutions our and ESG and our company nor to provide ESG our company just And around range does markets. Moody's private it offer not to credit. and collaboration our to and the community ratings impact and climate capabilities credit does and distribution ESG to across with very greater clear, private our investment the be insight MSCI's global collaboration transition credit extensive affect firm. data the models work expertise and scoring our into in our together,

a the exciting AI further risk And enterprise board CRE Moody's they're and to a data a agents that's exchange, users, announced we're Last again they month, June, that they to leadership as data collaboration that audience new Diligent, their properties. We're governance make Moody's decisions will data help Zillow will starting Now particularly the separate enterprise dashboard their platform. we to be X back in second, of available their multifamily company. into for to will Vertex leading and management this Moody's relationship trusted that broadening And in grounding also SaaS extensive and our deepening announced our audience module their providers as Zillow's In enhances rental that data than further customers this insights for source. And tapped market content content. Google. XXX,XXX CRE Moody's access and for around risk have announced our both be expands to analyses, and offered property in the X May, foundational establishes Zillow with is confident grounding platform. compliance it as first-of-its-kind as going month, more a customers. and we with finally, with And Moody's collaboration gain dramatically serve a opportunity adding Zillow

offerings of accelerate mind growth. and partners our expanding reach the of of to the sets our helping and decision in these So thousands of of service the are us ultimately data analytics partnerships kinds long-term and enhancing key makers share while

note, it that hand financial more the quarter. over Noemie talk our about let So for performance to to on me

the we Yes. afternoon, first Thank very that good momentum I'm delivered pleased to on Rob, from performance very Building a strong you, in everyone. and the QX. share quarter,

basis nearly was by XXX illustrating points, operating operating revenue our $X.X Our XX% year-on-year, our strong billion, up and leverage. margin adjusted XX% improved of

grew revenue revenue XX.X%, up quarter Analytics Moody's operating revenue adjusted or this performance. segment, points last revenue, $X.X ARR X% the segment or up year-on-year. up X% margin Annualized which to billion, X% year. XX% in currency our Turning was basis million constant And XX% was Recurring basis. from second represents on of $XXX XX a or year-on-year. recurring the was

grew we attrition quarters from our grew while line called Solutions, business and to KYC, at largest asset XX% sequential observed growth our a similar bps see Insights Insurance we & QX. growth from this previously ARR with of uptick in best-in-class X%, Decision our and for line ARR we've by by sectors, corporate demand Growth with as business, and business mid Our solutions. Data trend when Research in grew was and growth modest managers enabled government low customer where banks teens strong acceleration some to seen XX% Information credit of what recent in we from XXX continue out. & workflow high-teens in ARR

I business Revenue Our outpacing of in moderation growth we expect our growing around will the overall some that ARR MIS. the second to growth revenue a Transactional the combination for activity increasing retention versus the positive I M&A-related our XX%, and the rise issuance, partially certain increase when rate which while quarter in revenue stickiness half, growth, Ratings to saw XX%, of revenue customers, which XX% our a marked from the from issuers, I overall seventh metric of record, record billion. XX% level remains large insurance. to grew in deals. And with in quarter do infrequent the about subsegment and in for resulting on highest XX% to second of rates double-digit revenue XX% investment-grade XX% of note of favorable of primarily areas total solutions. guidance. Switching Institutions XX% address in due $X is a topping quarter our of this high, was mix close We evidence represented several our insurance in want group against this issuance Financial and MIS. transaction XX% refinancing mix a in revenue saw increase due transaction in to a a talk

on Now automation, tight us the controls expense and focus enabled adjusted levels of XX.X%. deliver our coupled to margin with activity, issuance increased an of strong operating

is I'll biggest for the of a upfront, metrics issuance are updating the mentioned we rated our improved Rob As guidance with number so start change, which outlook.

start from the half, be improved first to with range. be growth and of to and year slightly in the range high strong growth revenue for XX% teens issuance expectation forecasting in Given very the we're a the albeit second a the percentage to the slowdown now notable XX% half,

prior rest year, with second the the the issuance and Looking versus range to issuance very 'XX, the out second roughly consistent with year down line mid-teens guide. QX half at now to in in prior of we expect of be half our expect continue to QX, be we

issuance higher second the it and taken the slide in we've is about for we'll color than really outlook Q&A. of happy bit quarter some numbers, to talk previously. We've here now more beat QX our additional is this provided for asset on changed various a classes, what's and be So this the was into our

thinking. Given in this to provide some our context profitability growth, raising Ratings behind a level our like take metrics I'd high-level across business. of revenue guidance to moment we're and

year busier of consistently a than we've unchanged. From outlook for year. of standpoint, global between this and full to first As remainder to stated, X% and expect the the remains the have the and we a we GDP for positive view the half X% year expect half, the macroeconomic be be second

that of the rates published gradually April agnostic global relatively in default default just report, number June decline months. last cuts And continue to which are expected XX timing to week, year. the will in peaked coming and is signaling Our this later was we rate also and

range. expect operating the in Now be to range for in now the guidance in are to to context full we year adjusted MIS high-teens margin raising with that mind, percentage growth be MIS we of XX% revenue our XX%. And

revenue XX% our we're XX% single-digit a high MA, margin. For to for guidance growth and of maintaining

However, we're single-digit low for adjusting wider to our growth. of ARR range a to double-digit percent year-end expectations high

the we are the estimate strategic account of more provide midpoint have couple notable. ARR color make for at midyear, some end and a But at high current uncertainties upper usually taking single-digit decided and to Our the that into of growth changes update factors range. is that you with on we this additional

commitment change to customers our as pipeline year-end line with this the sales offering. First, MSCI as our renewals well announced a represents a the impact for This of shift and we strategic business. may our in reduce partnership

our certain of government were purchasing highlighted sectors. as be are build the trend businesses. these and be have traction as continues banks & along we be half we'd which the all year, at note impacted. On in in asset to newly the is and over could customer positive a if managers, Assistant, year. we of Research particularly we in we tight has to KYC, points; most while the continue conditions new fall, look we we the back on see and U.S. close also agencies banking, those patterns, this and tight U.S. Second, able have products earlier, note, expected enhanced impactful been improved This that of optimistic launched price very deals Insights upcoming higher that timing line didn't would with toward head the And remiss elections the third, gaining with course pipeline to of products: to Research renewals be several Rob into and

durable continuing years to we're to invest growth our all So all, to strong, and drive the come. in in is double-digit pipeline innovate

a teens increases we in percent in This to asset the our our repurchases this raising capital to and the allocation and the charge. From single-digit EPS in increasing for doing to high free share low strategy we to related by development, all $X.X Moody's range billion. grow half increase share guidance expense our form primarily to we growth guidance year grow to midpoint, of in XX% incentive for the comp to an around diluted our shift year increasing represents are flow In $X.XX stockholders cash $X to $XX and increase update flow noncash so, high million from to XX%. charge a single-digit the related the our guidance I'm Rob take are of at adjusted the percent XXXX. the expenses reflects we in data dividends together, a our of last as a billion and $XX.XX, to And expect range, now year. approximately adjusted of operating to that margin perspective, $XXX cash mentioned finally, the earlier, over about and bringing second range, billion the range XX% return revenue full source buybacks scores of MSCI. which are Now versus a also That's we additional will XX% ESG of plan and that to range to to to happy $X.X free guidance

very for looks we my open be Operator, can up questions, please? and strong And strong wrap a So prepared remarks. by to first on what up the I'll call year. I'm that just very very colleagues congratulating a excited our concludes for half,

Lau Oppenheimer And Co. with will the our of line & come [Operator first Instructions] Owen question from

do want to to go I back issuance. So

second like You in good the to But be strong of again, continued information have provided a already. lot quarter. issuance

you than your view give expectation? do maybe Can less ago? like few impact expect months for raised you elaborate had on MIS. little pull please guidance on could expected forward us more that? And you now You updated a pull-forward maybe on an bit a you But the

say I'd of question. there's Great kinds X pull forward.

and fourth is second touching on forward that is The think this both terms second we maturities. year to pull quarter, say the be from of in We the lot the was of have and much the going it's election-related forward calendar a the be muted that the would of issuers issuance. to And we going given half. in financing in of kind within been think have earlier think are think of first in in planned seen I due and guided quarter. turbulence to part in terms banks year, because pull a I by while in particular, November a as favorable the Noemie to more I avoid forward And bit the is issue market year what fourth any December the conditions that's

Second, around and you give future mostly we've XXXX seen mostly maturities. forward that. just pull years from context spec-grade. bit the maybe from forward some a And little That's of I'll

year issuers having until with market access to something If don't like to true it's maturities it not That's common decade, risk-off risk prior makes want always forward a wait think market about last And market. and if period month the actually you Owen, access. the much it, less to pretty investment-grade spec-grade because X from issuers or pull have generally back you go the sense to maturity. spec-grade who in see a in due immediate

forward the they year prior right? I lower the time want prior typically actually have So because -- highest would for also issuance ranges than down XXXX seen seen that's it's we some I'd meaningful those is forward amount rates have note pull spec-grade. immediate spec-grade seen. within XXXX certainly of maturities, also issuers maturities from for that the a forward. And pull to years from the I year were of XXXX, pull at bit forward some we But ranges forward see on probably before that just think that record. of in a say, pull the we've pull come

debt to lot refinanced, a that's to got get the there's contributing volume. refi So of that's just spec-grade

year. forward. at would yes, The point, that next don't changes to my be these think ranges that, this we historical I think, I think pull there's future how I So years from feel forward seen. Owen, in takeaway it we've about appears is pull And

question Nicholas next of Andrew the Blair. with comes William from Our line

of little maybe in you baking geopolitical on sounds on bit of benefit macro forward rate kind sort. but question you're any more. like like it a that hit But you're end, Rob, bit, pull and at doesn't up And issuance to bit yet it little a want that little the kind muted a factors cuts. and from uncertainty sound follow around I quite of more expecting

Just kind interplay the wondering about both of maybe to at how and think start of those you of the X this year end dynamics, next. even

Yes.

cautious, I I how if think on Noemie focusing here right. So basically half what's with that's based our believe about we're on you bit for of think happen very as going fourth how we We about first I thinking actually say strength pretty issuance just said, interest quarter. And year the talked of year, balance the third the mean about dependent of issuance then we're a on thinking moment. remained into the we through for probably conditions not the the our of balance half of strong the the particularly I'd outlook first We I'm year, it, rates. about, to the about now the took outlook. upped a quarter.

catalyst would what and going I are expect the a for be been pull guess. see gone XXXX fourth probably issuance think my I largely, there's rate would that's cuts, be this cuts, there forward, think if So given to if we quarter, I in rate in-year has

question next Stanley. from comes Morgan Toni the Kaplan Our of line with

Maybe move for MA moment. for Toni. just on Parrish to This to is Greg a

second towards expectations for on Insights to partially high single I the in digits. update R&I lowered expect So us accelerate. but of you Maybe half drivers to still & accelerate the because you Research ARR that reiterated there because, you just mean, your

not it thought, you understand. so update maybe to reconcile better So why environment to fast is us And wanted on kind as us as expect again like that. kind quarter this And accelerate. just of just it you help sounds maybe the improving of then

Yes.

that's of line So with Research Insights, first quarter. the & in in ARR in X%, saw what we growth

which some of our consolidation expected. I with CreditView talked some banking of call, think pressures on that. modest the offering, had we some came We retention from about that last anticipated the was

That quarter upsell, banking conditions, I our last think sectors and it's offerings, And pricing those on pressures. she retention, Noemie really in been in cost we focused particular, also mentioned pressure and tight and said, Assistant. why things. But investing the that that we've I as innovating on of management experiencing, both some are of very think talked asset puts -- kinds got growth some in continues Research Assistant what just for going this. We've our a to and in Assistant. to And because strong part of is ARR drive data Research expansion. the to in true. moment & on Research very be this for is maybe Part Research pipeline coverage Assistant points. got a pickup encouraging double-click that's Insights Research good, We've a about

past some in the couple have We of sales good months. momentum

shorter is deal since we've is Specifically, We've Assistant users. Research the quarter, customer by usage and up average seen up We've of first some with cycles, doubled experienced Xx. the sales number sizes increase customers for satisfaction Research and Assistant.

all that the that's So me line. going direction, and in to the and believe of support growth that that leading right we're to is moving encouraging to in continue pickup

Yes.

rate MA Insights for in remaining is & I is around retention the solid thing add, very general Research and XX%. other Rob, on The would

Our next Barclays. question with will Manav line Patnaik come from of the

I the wanted double click, Rob, just MSCI I to on guess, partnership.

on Just I think the the is piece time line, self-explanatory. ESG

if sells how that. maybe you does impact referred let's could Just that ESG on the the $XX ESG sample and if appreciate upticks you private follow us seeing have? you? And I you say, million, like just to size help from that credit just could side. currently much of up, what you business on if think of Noemie time just And side, line envision the I MSCI some negative

And then and we're to are ESG standard. to really market they're MSCI excited provide because have really to start able the because customers. for -- know, about think Yes. coverage. do that be going MSCI it's I I'll expand corporate and going customers leveraging a our Manav, content scores I you our I Orbis data to to win-win to considered be to their as through insurance, are And say, hand and the banking, think it this we a partnership Noemie.

spirit partnership, great real partnership a it's with of So MSCI. a

timing, scoring to of the going solutions. terms be what In the a able terms the and expertise Manav, of of content credit it's through third-party distribution of capabilities very to to do earnest, a end and begun, there's some around to of investment in it credit risk there's I Meanwhile, we credit. do to bit our our community, but well think transition their already a into global and around transition, do work you private in we've have think to clear integrate and ideas if good year assessment probably that take got about to space. good can private credit say the the that. in work And has need desire I'd as as

But the focus given here together ESG to around be I So our sleeves don't some quickly September, credit line think the might ideas we've the our come something good Manav. there. And actually we say the in would when get need, to and around a say got we'll up the to time ESG get to probably we're And private integration I now back the stuff sometime came solutions. we would into well. work I start think pretty there. quickly. going I going initial have right roll market from I is to work market, on as summer, when

a in of a remainder not MA our our swing pretty little side it's our material revised relative It's into business, going it's business. is the to guidance for the a climate for the which and ESG for But bit pipeline the on overall overall the of to affect of It's business part small. small ARR. And our ESG factored MA. year, Yes.

Research. line next Wolfe with question Scott of the from comes Our Wurtzel

digital finance, the I investment to transition are new product that love Just And that where strategic on wanted go talked AI-related you private are just around sort of of kind you it would course year. of back where we the we've And about the but other the maybe sort on making this investment to are of mean we finance, investments over of this credit, update hear progress kind now? like in products gen cycle? are us can seems side, some we cycle. to on specifically just where in of

take I'll communicated earlier well. in remain we with year. on we've I'll expand let and as the Maybe Rob Yes. initially But what that track

a bit deployed on me so of you color far. we've investments where Let give

let me start AI. with So gen

we've quarter, around our last heard You gen established development. a framework AI

called really gaps that company enablement rolled of the We this across It documentation have be our process accelerate earlier to the gen automate our the filling tools AI Able year. In be commercial some us value acquisition we've a and chain. helped across done year will made a was jobs out end-to-end assistant set for loan that lending banking, build suite banking the workflow. lending AI and a small of product to this in of

talked tight where business. our of it. example environment. and on Ratings an framework we're use controls we're that Obviously, we've lot capabilities. the rolled that's rolling copilot very Everybody in well. have expand with So expanding AI our regulators, invested. Internally, ratings and a across CSA tools as other and gen out around We've of using AI we've Copilot out of completed and we Copilot can that, We've is gen and internally our Rob a

lot just internal usage look exciting and strong a hackathons very our uptick have for when in example at that We things conducted. we of we

for gen that's So AI.

that our some across us platform, also third behavior user and are and helps together further architecture Those road customer area, the was supplier on help launch investments, strong credit area a sales workflow we optimization, trade to MA, platforming, in use to teams the that sign-on, different which corporate important a drive across drive additional efficiencies technology entitlements, platform. customer cases build a which our into insight reaps last, platform. And analytics and better our and the on our which other engineering helps data hear we growth On the monitoring products That's are address really feedback, later that here we're into retention build lot of of are resonate more product have for map use customers to that also cases functionalities us use on needs marketing gives of in bringing risk. track a the engineering onboarding, and year areas support single as those the around and to in That development and of business. we on our customers, platform well. for experience, but and

applications we MIS, on For our to continue deploy platform.

full We us to our enhancing saw volumes. allow more we're in a increased process to compliance. scaling to that be ability And the in to will on teams and issuance other That that ratings our first really in regulatory already team also efficiently automation, throughout have cycle that's deliver the margin life you MIS. number of year. helpful And going

doing So well. in we're general,

very well We we plan to year. this the investment earlier communicated you tracking are against

it. have add, nailed you anything think I Noemie. I to don't

Alex next Kramm will line Our of with from question UBS. come the

of a going now demand. I take very couple and the to like AI the new products think just side topic. do sounds on mentioned you lot, which like other continue seems It of it there's you sounds stay question decent sensible today, to and that I'm a

us how seeing So far, to the expect update here? change on really contribution trajectory have an you're and you can give so you a revenues that material

it's Alex, Yes, Rob.

So data I a of, scratch base. launched. Assistant. if some the think from we've is gave you This revenue points ever and huge products we've that fastest-growing But got Research around one I not, starting

over to that that up, is of importantly that time satisfaction not to material confidence So it's I think be gives really said, scheme customer a the Moody's I is going things but and are of of doubled some But encouraging usage and not grand in we're it. Like up. going and we've number Analytics, sizes deal just the Research us able there's about very customers, in lot Assistant. monetize

and year. go It's solutions, We've a next going that's Assistant, the So the into one-trick several and to of longer back launched pony. it's just not no year through on half now other right? Research

solutions, we're also are particular. working going there's I also would private we've Alex, of early new AI with got their solutions, our because And say, on those extending our automated I memo going leveraging I into partnerships embedded more solutions. warning. So customers with suite. Like up content folks like their that think us to to pathways Microsoft number some already mode in AI credit monetization be our their solution on be Copilot more both that and for will into and and a for said, open preview products important coming that's Google

So that in is process.

definitely but see some it's quite that things material So still not are encouraging. we

question line comes from Our Capital Markets. of the next Jeffrey Silber with BMO

you've You guess, bit that talked about, I the purchasing little tighter been seeing. a pattern

down we're can was of give little You about. some more. you bit Maybe drill gave can little if what a color. just talking you examples I wondering a

I put this, -- from say, mean about I And I in the the team point rating guess agency. and asset the in I Yes. just finer sales some at cost to it, and general, finer a would a of Noemie sector. we see point on coming talked banking pressures ran kind management one

You with have with real departments. conversations your customers, procurement

bit solutions. That -- I of got we've to able that think retention about CreditView. really around on or mentioned of in might to in pressure, as the value customers, mean we've seen little price in rates sure make again you're talked increases. of what you a articulate perhaps of upsells that see You've the proposition your terms might of pressure we terms annual

guess the also maybe a flavor. gives maybe of on So thing -- is might sales touch the that a bit little -- you I though just pipeline. I other hopefully gives the you

you products. a demand certain gives segments. But sales is There little the got pipeline. for a of bit very environment our strong sales in that healthy customer we've So very

that gen up our the actually we seeing shorter cases, cycles ARR offerings, seeing some You're second in that from through AI adopters. some some of put with of quarter. sales the we're early And the growth

and is for pipeline sales The The other that's time. activity. you I'd true to more you drivers meeting customers, say are been a long more likely meetings of do thing is of growth one the with the build pipeline

highest engagements were of pandemic, saw post like that and something we volume sales of the face-to-face quarter, XX% meetings This activity.

gives lot customers solutions. of me to around engage that a that confidence want our So

you of what there. flavor that a out we're for hopefully, gives So dealing a little bit with

Yes. more also and base, our in add discussion we've overall with and other would initiatives the is lot And -- thing traditional into plugged digital like the having customer we're banks the transformation a I now. we're C-suite elevated at their

know, you working I'm it that's build also around AI them as Now is, their time framework of the sure and have help some because gen flip we to take to side with adoption, they you products. also of also plays and going them They to gen a considerations risk by with take our into dynamic abide account, a role see to have that the have lot that regulations. in AI

line the stay curious, the was months any over last worse same? is better, just the I And X

what? the Is

X has months? over it or environment, any worse, The stayed last the the gotten better, same

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comes of the JPMorgan. line with question from Our Andrew Steinerman

the of digit quarter to Andrew digit. consistently Information subsegment I the just why understand growth odd variation Data subscription. organic was constant you wanted understand the ARR it and better It thought me fixed don't I And of of year-over-year. is second I been essentially this as organic had between subsegment, because there's ARR This revenue of organic as quarter currency been year-over-year. It growth has X% the & know, double which because strikes Information JPMorgan. revenue first decelerated double Data & in the the to in just

this create typical. I X% higher Andrew, from, right, impact a to product, probably probably growth down little sequential was a the revenue this quarter. is is lower basis, of little nature first numbers. in of of a a you're a from very a fact, think is, the bit little on in in bit quarter-to-quarter little is the good typical. the XX% variability contracts. of does question. than That XX% And mix quarter X% There than

performance. Andrew, I of full think I ARR can at as think, first business expect roughly growth. also the for pretty that's as you year of growth look half reflective the that's And what XX%, You well the

a And gives that so it's hopefully, -- but sense. that you a question I good think

Markets. RBC Capital comes question from of Ashish with next Our Sabadra the line

a should towards for to just as of the think half relatively we is the about mentioned into the the muted those we high high that fair that growth -- we guidance, end the year, has few And to and harder get How versus back assume year. in lower headwinds single-digit the it we end single-digit of been the revenues? you've get higher half headwinds the think So like comps growth? growth revenue given MA revenue as back of about ARR as

that. take me let Yes,

quarter second quarter, the remarks, is quarter. I So my QX. what to X% in saw growth what grew was the which But revenue first it for in similar MA, was revenue, XX% was constant X% revenue by second you in at we the take and as said in recurring currency. X% our if it It to of prepared similar

revenue rates focus for to second the half growth We recurring downwards expect to our you renewable trend will we trend continue down quarter in -- the the to year. throughout of sales, shifting We're as similar continue as in year. Transactional know. second was the and revenue

high So expect fourth in the quarter. think what quarter, that to higher less means, single-digit the the the or the the quarter we growth in ticking best to the about back more up in be that MA second the aligned with year, we half way to grow in third growth of the saw guide in end of second before

So behind that's what's our guidance.

Our comes George of Tong from next question Goldman Sachs. the from line

from pull within XXXX. saw you year both MIS, mentioned from the Within and forward a also you

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pull historical for we the basis. way this spec-grade about on back I of a this because I looked kind we're went is don't so George, last and at And no, instance, forward consistent is a the with what over of decade. maturities looked, to think tend we what pretty kind and forward seeing see a I year-to-year range think mentioned we year

about there's in-calendar, in is this we XXXX is forward year profile I a I then with growth forward. that outlook. impact me pull a forward the way our that don't do as to I the what's I the don't -- at talked because this There tells that think on obviously, unusual on go-forward pull would material point. that I and about pull forward. What's this on given don't that might anomalous going in-calendar pull issuance have but think going profile think think So see basis

the question next of Partners. Research comes from Our line Huber with Craig Huber

ago? all in the years incentive the Rob, what's mean banking what year could commercial a might How sector. And may that? the analysts here, real just the it compounding about my touch then your that to estate housekeeping concerned problems in is versus the for market on you recent and you U.S.? in question be here comp the are Noemie With quarter

Yes.

touch So of got real we've And entire we've Craig, an commercial data real got our that teams. Ratings. around company obviously space We've keen and is tools analytic real area points a the commercial estate got a on of lot a with lot estate also the analytical focus into estate. commercial across across

see I and held matter. type think think office. do property And certain up both has are office around on A, so this commercial A it's We pretty Class probably CMBS. real does generally, estate I with the of most too. Type of the concerns focused a well, type office,

asset, You've And also which -- actually seen banking and we teams from some think the really this our a at in CMBS, borrower put some perspective. then paper single looking about single articles out our share of you about scenarios the rated around it happy I'm estate interesting understand to research. real exposure and how commercial making we the with banks stress that. Really to sure call. after think

looks but tells that a interest CMBS quarter point, investor got small investor you say in there I CMBS a of this is We're So sentiment. this something which I just actually Craig, what some interesting on new the think there's -- the some soft is on about it given focus like actually issuance and showed we've quite would space, a landing, market lot at actually the it's it. Interestingly, fact life. of signs base,

million And remainder about Yes. we the saw. adjustment the $XXX to year, quarter an line we in second performance the we've in quarter. accrual second the to $XXX comp, recorded expense to on question quarterly expect made the top And the the be your that about of quarter. in incentive relation about million per reflect We for

estate. too, in to understand, our initial and to specifically the be an And allow that and time range talked might in focused to our impact sense of event, I our and you fraction understand but sensitize you offering a I on system, of might the get of event synthesizes models, in mean to a impact want potential start content our the early able this this thing otherwise. market to is warning -- call you the models happens broad a One real that other commercial really my data, it about call and of remarks, Craig, I the add, it is

good based resources on out need want some able be focus tools to very do you in folks so to that there's who from where figure can And our portfolio. to scarce interest the they like in market use actually imagine, to that,

from Our of next Shlomo with comes line Stifel. the question Rosenbaum

in kind a up through of links a bit if to color is what slowdown companies? can slowdown but to back was should X is we is pipeline about terms sales get the are may on this. think a want stuff selling of MSCI set just some understand, trying Just there of the you it how of XXXX a you on then Orbis? And the of just give ARR -- little some switching little in there's you in deal. not range explain the Is therefore, materialize to again I as bit then And probe widening of we the the change you're correct? Or it this pop things then something that of -- because Can this the between the more to the technologically strategy, in flip a of little products? of more kind year this this so thinking before? and MSCI side a should more over when in

Yes.

Noemie and you're I'll it's of of But small maybe call, business. of we defined scores said. The a I a climate what and overall, of exactly so just of actually by ago are really what our kind ESG So that. know part a the we years couple pretty data reiterating kind first that start fraction right.

is that's own through our we solutions. happen I a what's sales going think transition our to you threaded -- we have imagine, content pipeline as of can

opportunity medium be be to going to having got to integrate that's is is start to our through a data, customers. customers, our going to pretty through content retention go content. We've be of expect be in the our in We're impact and going MSCI be the pipeline build offer the in again, But integrating it back. And what a for small to we're in now ESG so is I event. to of I to that I able also ESG could impact purely the out sales scoring positive to best-in-class us. able kind some business a pipeline would the to and term. clearly us. we'll going the will that. term, And be able for talk solutions, think, XXXX to That to scoring the think But remember, near and term. our And near data,

other And going way, then the Orbis going them? the to back

Yes.

X like will And And customers. from able you MSCI to database thing Orbis Orbis think I opportunities there climate. with you scores, place to So our and with it's MSCI other be think that's for demand I our like going beyond opportunities. many and continue a to there's using ESG into build be and where ESG to leverage start simply for other sometimes start good partnerships,

think places. I And to a private so and in again, we'll of that's credit those event is XXXX be going see something probably one

the from of Deutsche Alwy Bank. comes with Our question Faiza line next

the government ARR So later that may up in one question had some consideration of be because but you I in terms of these a about on contracts side similar mentioned I the is that thinking think government year. for renewal

business we Is you really, think factor? curious it the different is if of But business. can assume government is administration? And any a of just that the is should about renewal? risk how for be. a how So color Or might remind appreciated. big the again, it this in timing I up sort further all mostly us And KYC

Yes.

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I -- think don't we this. were on I over-rotate want just to

about us quarter. little -- these a got bit I contracts. X-year think the And just in we've few trying were the fourth be a environment prudent. And we are These to talking a bit potential little -- for we've hear contracts. of bigger bumpier you

And of following that so might risk there we just some wanted that into be slip to acknowledge that the year. some could

that different factors And It's want high take as each end the they're made just individually, guidance significant the midpoint those of single-digit current to of range our of you if Yes. I things a of all and combination of is widen themselves. range in us of in it. percent that not said, those range. But upper the

put So around a that narrow I perspective. we're to range Again, just want into that talking ballpark.

business, probably it's say. in renewals, the our mostly And would Yes. Information & Data I

from question line Meuler of Jeffrey the next Our with Baird. comes

growth acceleration that growth I are insurance and well, the revenue, great have product is framework? the assumed in the And in into already other KYC callouts in go good because to rate, year. assumed doing the ask and launches accelerated R&I to Beyond this really scaling medium-term gen is what that AI MA a

is, on So doing [ just to markets diverse ]. how business all the with the of end but bank it one hard seems well

what self-help the So other are factors?

would our land it's probably in I nutshell, and strategy. a say expand Yes.

banks believe is are There into think cross-sell doing. So things that. to we more been remains we we're We've for focused there companies. insurance opportunity significant fairly that actually that time and there upside on some some a but

suite banks insurance us able so the of and and talked Some designed customer of across talked with the engineering better your platform about, some on. understand the making about things are companies. She with being investments some all and help expand that opportunity we're to that of Noemie of product usage cross-sell to

that. one. talk set bit of this And with cases us and of onboarding all risk, supplier an optimization, then about on corporates. expand credit, that's you a customer after opportunity marketing going monitoring, call heard a interconnected sales trade use So little And second around and is

that so had us opportunity further companies after invest And scale. has to big we've and wins confidence which a those all development all given -- there's of in offering sales product around some some industrialize nice our to really of multinational with around some go that use really cases, at or

the So from growth. continue drive accelerate that it's of of big landing and around these ability the generating it's us cases. to insurance gives with the expanding corporates banking confidence customers, revenue and around we're collection And and to that kind use

Redburn from the of comes Russell next Atlantic. line Quelch question Our with

the the migrating on touched You to in SaaS benefits of platform RMS.

lot. You ARR a talked about that XX% insurance in growth number. The a is great

of forecast you are to year? do you weather increased back the the in anticipate platform? Have a active to usage tailwind migrated going very of the U.S., the be baked Given in fact, season position that upcoming now for better in monetize guidance? into to RMS in for the end the And you these that's a given data, you've SaaS of periods

here. This is an the interesting question, moment Russell. I'm processing it at

some the a in American to I insurance climate of think translate bump. coming active a consequences more interest would our severity events season thematically, or extreme more cases, put mean particularly actually, understanding weather can beyond and and I revenue market. -- I extreme have weather on an very with of events frequency impact that, is weather and and on think our don't has, the the of that focus in North hurricanes, simply pressure driving insurance theme weather going change customers. that kind it's what extreme up, going financial immediate that that increased is in extreme an solutions. And say a I that's we while ARR would increasing may But say I into so

all an and interest models. by why that's in offering able which there's more and be high-definition -- Florida. can you models and data would that insurers, And have SaaS say climate able have for are they banks wanting the But understanding are there's actually general, that in realized the of to I that can also other organizations generation capacity, compute our seeing current way, seen to run better who that than risk. because this of these clearly instance, there's with understand need weather because, actually then banks leverage to models. But lot you're cloud-based better You've better in a and you're

banks the quite to the underwriting focused understand risk a So as wanting loan, they're of collateral become commercial they're now something taking, that's on. are

say climate modeling interest capabilities, it's set more weather So driving of more events. in wouldn't tie would our and I and seasonal and I catastrophe but a it to

Yes.

on for risk as customers, we is really that's gives the Just -- even platform, and for one enrich to open make with models makes platform the third-party to differentiator powerful a the insurance I that where can the ourselves. competitive that of us it final it more a more algorithm well point that think it's differentiate

And modeling that had through one only the for set that demand climate we the solutions playing is more a customers. saying the still because look, that made to the world-class and really And very very acquisition because out. call. those that platforms RMS, going segment we take And think into remember that; And own I more about got those there's in wanted feel for remember we weather of broader thread glad when I and to X but RMS that at reasons: that we insurance into much our clearly be get to to and capabilities great very Yes. I'm we back remember, scale -- bought years one, premier world's second, I to ahead. I of and I

comes from of the Balsky question America. line Heather with Bank next of Our

ask at Day, I want way? algorithm little you today back MA. gotten about a environment and out than that time. little -- you rethought originally Investor But you out? Have looks a probably about laid the there's growth to targets questions been about in a guidance. Do bit I the you I maybe laid your expected. bit any in thought in know tougher and zooming out more you algorithm guess, lot We're the than your taking, you think a of you've ARR think different

that to medium-term have Look, bit highest our consistent these is kind a of did Solutions this XX%. XX%. ARR Decision growing growth rate targets, we've of growth we a with at achieve over pace first of now I remind all, of had, all us, quarter, little ARR

So lot there's to to actually, feel there's some good our change outlook. -- a medium-term isn't about. There a

them would to lead drives about targets the material to this We that And I continue a about just call the we'll And of medium-term been. catalyst to medium-term There's I revisit that absent sort really hasn't the year. middle of some and annually, the need innovation nothing year. within have that view investments. been me would talk North targets to talk as believe Star expect there and a in the

our talked the pressure than strong you're right. and banks Heather, got in we've That's different little asset So the said, a managers. like SaaS businesses. on I We bit we very about growth put designed the to medium-term development, all to in those good partnership when environment We But the product we're innovations, about place. continuing strategies feel accelerate the sales targets invest. growth. engagement, the And

So we'll revisit in this topic February.

call remarks. now Rob closing will back hand to I any the for

to hope Take the for forward look and everybody, everyone with in wonderful October. has questions. I summer, care. talking a Thanks, again Okay. we you

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