Thomson Reuters (TRI) 2 Nov 212021 Q3 Earnings call transcript

Good day, everyone, and welcome to the Q3 2021 Earnings Call. My name is Sharon and I am your event manager. [Operator Instructions] I’d like to advise all parties this conference is being recorded for replay purposes. And now, I’d like to hand over to Frank Golden, Head of Investor Relations. Please proceed.

you. Thank thank XXXX joining earnings and our today all quarter third call. you morning, us for for Good I am will joined our and and our today take presentation. by our Mike will each CEO, Eastwood, of questions whom your report results CFO, our following Steve Hasker; appreciate one open To would question one when get we each phone possible, to would lines. you us as many and if enable as limit the questions to we it yourselves to follow-up discuss revenue when well we compare we currency, organic performance Throughout rates today’s as growth period-on-period, as basis. presentation, before an on We believe measure of this provides underlying business. to the best the the basis performance forward-looking contains presentation financial statements Today’s measures. and non-IFRS reports Actual to uncertainties results the other agencies. COVID to to a differ in we due and regulatory related filings from provide number and of time that time to materially risks pandemic and discussed may risks

You by or our may contacting our on these access Relations Department. website documents Investor

Steve me over now Hasker. to it turn Let

and I quarter. half Frank, year you, the thanks first in for of of to you we in momentum third the pleased Thank the continued am us saw all today. the to joining report

Our for revenue and performance and our QX XXXX. position us strong, expectations, exceeded and sales well was

across of close the of tax, market performance fit footing a year the appreciate the legal, corporate markets remain go compliance and our demonstrates and customers. forward needs and efforts to on products teams. growing expect our We our our out and strong risk sales strong to our This and healthy

enable their to products professionals better serve Our them their clients. to to equip effectively

transform who events to learn synergy firms, conferences of organizations, conferences world. our livestreams engagement understand X,XXX their can roles. and and for corporate their data-driven the legal improving want experience are for annual future tax These customer seeing technology and how the also professionals including and are agencies our premier the professions, We tools around registrations

customers Nashville. joining of of Professionals nearly our Elizabeth Beastrom business, and Tax our be Our quarter, continue an the Sunil drive plays opportunities prospects. synergy continued will business, both mentioned customers capitalize the positions. in conferences as advantage we seeing we our leadership will Corporates for Pandita Accounting This November I on our & economic team, our and confidence upcoming their President are last the growth And and in environment to own potent X,XXX including of and ecosystem to the President to in exhibit our improving expand in that

Now results. the for

our X% organic of X.X% performance Our revenue third results provided putting five standout August. of third organic quarter That performance. of quarter revenue well segments X%. growth us above reflected in company guidance total in growth a recorded X% the Four business resulted to

healthy a confidence markets us That providing our fourth in nine tailwind, quarter. results the are tailwind. with month our us give for with prospects coupled Our

year the now guidance. our forecast approximately between to $X.X revenue again flow and forecast cash X full result, year for for Free growth company approximately billion. the As revenue organic raised Full be free X% be X.X% Big X% businesses. once flow year cash a total we and to is is now and

are becoming making we – work work operating we as we an consistent Program, Change progress toward our to Turning company. as integrated through

XXXX, I’ll million As by putting in savings plan which million, path million we end $XXX $XXX a the savings to to recorded of we of aggregate on year by is $XXX achieve of September reinvest million target XX, us runrate end. $XXX you business. about the remind of our

August. program end. $X.X of the active the bought Finally, program quarter stock announced and share billion billion back year complete in already we We’ve the we expect we were $X.X executing on during to buyback before

for we making, progress also the XXXX reaffirmed XXXX. guidance given our and So are we

the results the for for Now quarter.

Adjusted to the Big this up Thanks declined $XXX nearly businesses. performance a more to Latin emerging and Reuters. and related Contributing strong Third growth margin markets our American XX% to was businesses resulting Change strong from up revenues of with businesses organic million, were from revenues X% growth XX%. to organic due from X%. in X% results the Asia than quarter EBITDA and Program, of reported XX% our X to costs

Excluding Change adjusted year per costs, in earnings margin quarter was the XX.X%. Program Adjusted to share the was $X.XX prior share $X.XX compared EBITDA period. for per

with to Big the X% continues size The quarter. U.S. as highest organic results in achieved for X% Legal’s the as of the decade. X across third across be to firms quarter growth, mid its again Turning growth quarterly growth by healthy quarter X%, and small, for second well was consecutive this of large growth more was for board, segment, than strong of legal businesses organic revenue a geographies. revenue very performance legal’s government market late and the

guidance. Edge ended value For contract ACV annual quarter to example, achieve Westlaw continues penetration or ACV sales growth year of strong an and with XX% achieving full the our penetration

performance reported strong in workflow growing double-digits. forecast as legal XXXX invest legal segment, the in to again growth continue continues Law Practical key and Second, in its initiative. similar this We

double-digit is Government grow organically. XX% and our to sales segment, four, in recording and mid-single-digit continues to month willingness our customers’ businesses nine again quarter legal sales And legal and both grew perform managed Canada, all periods invest reflecting quarter. the products. business, for the FindLaw strong enhancing our in recurring Legal which ability Third, Asia, growth productivity in to within XX% Europe and grew achieved and

XX% also products. Latin by American from was and in COVID-XX & consecutive This over grew Corporates XX%. quarter the growth by which X%, increased for business, grew expected, than driven legal, Reuters solutions products continues revenue was of X% Events, came to to in business, revenues the And which our demand the Accounting year. the strong the growth X% of called to stronger impact XXXX. a and from Dominio, and improvement organic first thanks Tax growth. Reuters performance which customers X% increased audit recover to half business, of tax from of revenues than our negative is News’ organic includes which professional more increasing from second This organic X% tax the risk Turning our

declined X% Finally, take less print a return strong our Global but third-party to granted. for In a higher we organic gradual office Print quarter, expected due summary, by very continued to revenues. it customers than and nothing revenues was

growth, We our and case and our investors past appropriate low-single-digit I growth X believe support Program, see momentum successful next improve that talented on of and slower not growers. in work the fact, continue and Change have to do Big building will viewed us have am know our comment past with in and investments, businesses invest is very the team in much who over XXXX to growing quarters, basis. you We this fourth together firmly we on We in and timelines. XX historically tax the perceived businesses with believe think assembled year. customers which us and properly we continue for in many for months markets combined still over our I businesses as and sustainable Change into that’s and quarter with can to a working a have our progress executing particular Program as the as legal we’ve to enable our execution the further well being our can the slide, understand pleased position beyond. One additional XX regarding goals are our clearly to-date.

we we and upper we are and we Seven levers dynamic are X% over of have businesses sub-segments. a well XXXX range markets This to are so. which performing us we broad of the can These will to guidance in the positions we believe us X%. pull Strategic investing Also our consistent confluence to where the our on Our well strong in revenue continue effect have initiatives, places expect do a right factors and the achieve mid-single-digit grow position in across numerous and position our of to cycle. end basis they

our guidance discuss full when further we XXXX report quarter year will February. and our in fourth results We

Let digit referred I will contribute mid-single we revenue sustainable products that to believe example me share growth an just to. of

becoming customers while if an company, customer Investor innovation, goal a a recall integrating includes to offering, at at experience. excelling with our content-driven discussed delivering Day, and I So excellent technology products which of you provide our seamless our successfully product

we who loyalty This HighQ. helps Contract and and It documents, visualization This of Express, increase Contract as Express. solutions adding of We four growing corporate tools company reflected Law and Day, integrated our structure revenue XE legal lawyers these example customers Practical more the legal professionals release of our of innovations to focused example an professionals client Law with the example help XX fraud in improve and our upgrades. Last are legal innovation on are key will slide. it improving portfolios this our product support And Pat over companies content-driven Tax truly comprising professionals matters their example weeks more improved customers in with transparency are are to how new both increase driving seeking Mike. Elite to legal, on integration. client the Microsoft identify include greater to double-digit, I in solutions includes of to progress. investments the with and how more Two an segments. fund with holistic building and for. and and product overseen Corporates Elite coming quarters. over and fund month, work & compliance; at and latest to data we and will automate opportunities focus our our Today, Officer, capital released innovation and is by support integrates expect corporate of Law, to Practical workflow through spend strengthen than is how examples to features establishment Practical strategic would solution company that thinking to and retention work companies products productively you Ventures we Legal legal venture greater insights. customers XE, workflow One are integrated the XX% The for asking Accounting, Teams share version professionals. driving an news our it the more to to Contract HighQ total expect Chief of identify the an breakthrough building integrations further of just and I with innovative contributing announced provide enhancements their concentrate are example to across leverages legal will and working Thomson workflow across we about of deliver markets; a around that Reuters more final one organic technology. Investor and we satisfaction. $XXX million It’s greater it be turn enables other businesses. this ago, and Express It’s This Those continue of enhance products to team growth. customer several I future priorities further with innovation we will the highlighted HighQ, on such risk solutions, for seven HighQ to Strategy innovations growth It allow media of Wilburn. operate before clients.

Now detail it the let for turn Mike over for quarter. on more to the me results

joining and you, for today. thanks Thank us Steve,

and As currency an I before a reminder, basis. will growth organic revenue talk through on

in is the X% continue and to X% businesses. Let marks XX% rate. grown FindLaw me forward. least to quarter Westlaw both organic segments. quarter. X%. a X currency total third It’s expected and and Recurring our revenue have our Big increased similar This XXX performance a added Edge X Legal related at Professional’s grew by level Government consecutive start organic and about fifth the third increased and transaction organic the revenues our for maintaining points revenues revenues at quarter. to at up Legal’s growth to Organic discussing quarter Elite, healthy premium revenue constant X% Big segments of were basis the contribute revenues going

and which Normalizing growth revenue fraud XX%. Law, XX% Practical Our Tax our by of revenue and Government timing second businesses of deadlines. includes driven & X% this emerging X%. In returned organic and is as up was And our for a organic filing businesses finally, X% businesses from organic Tax by third for quarter will year, Tax of grew markets. growth resulting Solutions, total growth. and by driven within growth Accounting you organic the which had revenues in Transactions’ and revenue America, Latin X% shifted driven organic organic business, America and total QX. Recurring Accounting’s Segment, quarter revenue was our in declined revenue from of individual the XX% Latin revenues tax CLEAR, Corporate much as I recurring were XX% quarter. revenues & to increased recurring due revenues Asia to X% the revenue organic Confirmation. strong Transactions’ Growth of growth and well and and risk, timing, Paper Indirect year-over-year Audit total remind compliance the reported last and organic Legal of with includes

quarter and Reuters we Global to primarily was includes organic professional Moving and growth achieving lower the at business of of third performance X% organic of X%. Reuters and In minus to the minus News, total X%, declined agency revenues Events. Print, due to which revenue X% total business range strong have forecast end

organic a each and full revenues between increased expect decline Global year total Print and basis, X%. On X% We quarter revenue X%. to consolidated third

recurring the results side, revenue to growth X% was for look Before third the for QX, compared in last at we left quarter quarter company for revenues grew profitability, to the of total of in compared above above points of let’s QX recurring on and XXXX company X% quarter basis in X, third quarter. X% the see impact Big revenues due XXX transaction closer Starting year. which organic X%, XXXX to revenue the third X%. X increase of the same turning at third XXXX last QX organic If you the the COVID. period X%, Total performance organic X% year’s and revenues to look recurring XXXX Big was grew will organic

were of Events up our Turning affected Reuters to and by the as Implementation this revenues Transaction the which in the bottom quarter was right impacted X% third the slide, XXXX of COVID, graph Services, business.

We to us in the by This encouraged XXXX, recurring confidence the gives trajectory remain and XXXX. continue momentum our especially of for sustainability in business revenues. beyond

an we with previous the from have chart full X.X% estimate Starting X% total of approximately previous of grow revenues X Steve, guidance full X.X%. X.X% is to previously As to the now guidance. on year This grow our total Big are X%. between the and The by increase X% organic and to TR increased the up X%. organic revenue from left, stated total and will year we top the year, forecast guidance revenues for full

an Reuters from to forecast News. We business. X% year X%, This Professional revenues to and previous of Moving X% grow by the Reuters organic and full between total mainly is our driven X%. increase guidance to

year an to improvement full to decline X%, Print guidance previous a decline. our Global and are Finally, between expected from of revenues X% X% X%

for Turning to strong year benefit three our up Big higher million, cost as in and business was driven by the revenue growth, of profitability a usual the initiatives, advance performance offset prior The of was from in growth investments savings the each third quarter, X incremental by period. X% adjusted businesses XXXX for the EBITDA $XXX from segments XXXX. EBITDA

a initiatives, reported the second XXXX in QX. costs enterprise concentration with greater Program we As Corporate will in level. you at discussed of in to market capabilities Change data spend and analytics remind operating quarter, the I second more the are go the technology, are half in investing and of

of adjusted lower Moving and to year due $XX period XXX decline prior EBITDA the Global driven revenues adjusted more growth. the impact $XX revenue. by decrease margin EBITDA than million, million $X with margin was dilutive revenue Reuters points print about News, in basis a million to of was third-party XX%, of a Print’s the

was versus So QX total $XXX company million, decrease in XXXX. EBITDA aggregate, adjusted a X%

related the increased Change cost Program, EBITDA Excluding to X%. adjusted

related basis quarter’s Change Program. an margin and underlying was XX.X% the third The XX% excluding was cost EBITDA to adjusted on

amortization $X.XX share increase an share Program turn income share, decrease and $X.XX primarily let cash share, performance offset adjusted by per prior the by in me Now EPS lower lower per The per year with cost. increase. per in adjusted Starting and partially earnings a taxes, versus earnings was XX% free period, to Change our EBITDA. flow driven was and depreciation

quarter. XX% to Currency adjusted full years year, rate and between various guidance had prior positive XX% due the results and tax favorable in For of on from tax to the the $X.XX a have our EPS decreased impact settlement jurisdictions. we

our for cash first flow months. turn nine Let free me to performance now the

the compared in Program to previous year we million. billion Our made due UK Consistent factors This for preparation $XXX Authority cash impacting reported outflows first flow of an improvement discontinued period. cash million as the of was $X year more $XX payments prior prior quarters, distorting nine the component than operations to Change Tax the related was with prior $X payments related flow the $XXX the In slide free million free bottom this performance. to million year that flow cost slide from the free was REFINITIV period, primarily Working our million $XX versus removes of upwards, cash the from months, from of the business. former cash the REFINITIV was period. our

if cash free favorable This just primarily interest than billion, dividends EBITDA, $X.X was our prior shy operations comparable due $XXX in period. items, better working LSEG. of So, increase to the and you adjust for year continuing flow was movements, million these from from capital higher

an This on for annual of In $XXX runrate achieved Change expense operating Program the million update savings. we runrate to Program. million the annual $XX up third savings our Now, operating savings. cumulative Change quarter, brings runrate expense the

operating expense We $XXX forecasting savings end of of year. annual million are attain to by cumulative runrate this the

gross anticipate As operating Achieving savings $XXX or by savings towards expense back would a operating of one-third our way by XXXX reinvesting the of savings million us of put of million business of by $XXX of of reminder, $XXX XXXX, while net $XXX the end million. million savings the XXXX. $XXX we million into expense goal

savings. provide We runrate on quarterly Change will to Program’s updates continue

anticipate and forecast systems, and capital $XXX $XXX Spend and third CapEx Program million in in quarter third third-party step a to $XX the for now between which support fourth quarter. million, the streamlining the cost Change the Total cloud quarter includes was $XX nine related up We OpEx expenditures. during spend months million XXXX. higher contractors was million. rest internal and of of spending Now, the to is update $XX OpEx year of Spend our the the program million an million CapEx. and $XXX Change migration, on of to first

the is CapEx million. the $XXX Change Program OpEx million and and For million. lower to slightly year, than full now million be This between guidance to we $XXX $XXX range expect spend $XXX of previous

lower in to into expecting we over as the approximately expect carry XXXX over $XXX million spend incur the course We XXXX program. still to are of the

will is provide There fourth Change OpEx and We guidance results Program on formal when our about no the CapEx. for anticipated quarter spend we change in XXXX XX% of February. split in XX% report

growth. continue will We our TR outlined, Big X today, on quarterly increased revenue Change Steve outlook spend. to year Program for And as updates our total we provide full and

our cash also We free guidance $X.X full increased to year flow billion. approximately

CapEx spend on our Program to and slightly Additionally, XXXX. over we have carry XXXX lowered both for that Change spend guidance for under OpEx and

our which slide. decreased tax on also have are both this outlook We reflected effective rate of

the XXXX in previously reaffirm metrics. XXXX of as guidance, XXXX for year our full achieving balance we targets we confident remain Lastly, guidance well the and as And all provided. our

for turn back questions. Let me to now it Frank

formal Thank remarks third open concludes we’d results you, Mike and for quarter and call questions. the our now Steve. to on like That our

could So please? if the operator, question have first we

Drew line today for proceed. McReynolds Please from question of the RBC. first our And Instructions] [Operator with comes

in are You the live call.

Thanks very morning. good much and

my questions. two So

the tracking end you of year. growth guidance upper are to your hear First, for great next to

So, data point. thank you that for

price this you update things provide environment, move in are the volume then, just follow-up, dynamics front M&A the balancing inflationary can stand that And as and the as an context just all buyback? on Thank where at Just we you of with next? environment, of a give as on how maybe us kind into on some with that and year you. around are if just how end us changing, versus to wondering, you could current Steve, the

discussed to currently throughout on prior not pricing we that the regards calls. questions remain in to XXXX. we are inflationary price much and volume dynamics regards the Drew, change and consistent thanks They for very seeing the dynamics, the

as agreements in reminder, customer Legal, business our about our of Just XX% contracts a number growth within a under significant Tax and Corporates multi-year XX% there. are within with XX% are are

on But are I eye we Steve’s certainly something far So, there. echo volume keeping on changes significant an dynamics the no Drew. comments price thus earlier.

performance very of very, We sales strong management results. and teams, account are which driving are for all seeing our consistent the

Steve. Thanks, Drew. Yes,

out and related very The Nelson a we we that rather Reuters the is sure reason we quarters robust opportunities work. that hard buy in answer of of in Scott the haven’t who constantly the your we’ve complicating additive of his number we’ve to we the customer question, doing is the of we leads which to not is meaningful Program and of last are buy high. any that the advantaged lot spent We our activities for trying hard lack targets. to quarter And hold we did at Big M&A I assets So, complementary want mentioned and experience. those call it we any prior owner quarterly on calls, would pipeline deals focused the M&A is pretty as thankless around than our we looking done that as And bar of previous really a done it’s to business haven’t a the Change make particularly X. have replenishing Thomson XXXX.

know, have you As elevated. prices

that So optimistic – do the view on we continue don’t to unapologetic that us. them. are and makes for will bar the as into deals that just it will we high pipeline, that turn even that crank turn we come keeps sense But to be that continue

be will very the to focused We Program customers and the are and call on to business in new that. secondary Change existing M&A very,

supplement on regards question your to Yes. M&A just activity. would Drew, I in

we which dividend billion are every for complete as of Doug It’s increase had we certainly, January, consider our have XXXX increase I we we buybacks surprise would XXXX. nearly in X% If capital if into at generation. range, free cash beyond which strategy certainly annual from increase reflects buyback. might is model go dividend XXXX. value our also increasing for Board look overall, and wouldn’t We It XX% be discuss in question The our the midpoint in mentioned, we option XXXX. confidence you additional we the with an will the are that a flow an $X.X the for anticipate

great color. Thank all you. That’s

our And comes you. next Thank Please with question Kevin line the from McVeigh Kevin. proceed, Suisse. of Credit

in You the are live call.

just there is us Thanks the or that really that. how the and then, Great. legal, little highest outcome much should either context feels I the opposed bit maybe to and a decade. just improvement the Mike, Can the underscores growth within in Change much new just the was I understand Steve of think and everything. associated the incremental about right, so you of of product with like VC how sounds longer got component on structural on congratulations It execution. fund And can that you help as and a if heard exceptional Hey, you Program retention to the within the really, you fund Steve tie term it for you’ve new innovation comments given It guess, like this into we the growth announced? context a is VC any product?

am the Michael add. congratulations. Kevin, I’ll word Thanks Yes. start, and sure I of for

that work all the particularly of particularly our put in year this have appreciative hard the colleagues in are of third and We quarter.

not particular or of or of that, uplift Legal sort in favor one and performance is that’s of of I quantity price the It’s in sub-segment thing any one that’s in year-to-date. vice any terms In particular Legal, reflective the product versa. pleasing or robust think

it’s diversified a of think pretty I balanced contributors. set

up So, the It third the and sentiment is small quarters. has example. ticked though, really second an as through

starting smallest Mid part finance largest business they cost, related are practices corporate law amongst firms’ the that Legal activity to our and with particularly more level year. are are enjoying to that be the optimistic. their important good a those of So, law an continues customers perform are of of That seeing diversified clients.

performance continue can pretty we continue and that are we about sits we that to think sit. as optimistic we So, where

to pertains Reuters. of major us innovation, it this is As new product a focus Thomson area at for

early tech So, you and Engineering as our elevated going center. David and us will on from came Product pretty and they Officer. Facebook. remember took in do are the as we we year roles, Mike with Chief Wong attracted We our out I new that after Malhotra our David Shawn our Toronto last went Head in of based in

elevated and We Contract product Express, leadership technology operations replenished have building Practical about, also, the and Christy to a within of and function under I which and XE broadly very, talent very that the make integrates on more that some Law, have The Rob’s we foundation. we talked more is example to that Elite our are solid sure HighQ an of come.

the leader product think with You’ll product in case of XXXX be serve. we become segments see through in us of aggressive terms of cadence I modest the our innovation innovations in that pretty but a very aspiration to thereafter

focus we really a be important focus. is bolt-on it on And will the after it’s part primary and focus M&A then, the are the so the sort And company of of secondary that. that putting the the

Practical the third just Legal bit We’ve quarter. portfolio Kevin, us in a quite let talked the Westlaw well we’ll basis XXXX go Westlaw which was get in we already of into well. Government. did to bought XX%. well Elite, goal did Law, did a Edge our all with of and of of July we XX% FindLaw, HighQ the really in regions about continue to as drive the Asia this XXX XX% markets and Edge for additional impact XXXX. that as really supplement, me We’ve in the did penetration year, entire points with

performance. So really solid

legal uptick slight versus are Kevin, which we business retention, you XXXX. a think the approaching for I about asked is XX%,

across performance good really So for the board legal.

congrats and Shawn, outcome. Good fantastic enough. really again just

Kevin. Thanks, Yes.

question from the Toni. of Morgan Please next from comes Toni Stanley. Your proceed, line Kaplan

to sort started. another interesting avenue sort just or you you I way with really ask of M&A incubator? the to trends to for Are viewing you you. an investment an about Or that as on the is capital a keep way Thank industry ground fund this this innovation ideas? wanted in more question venture of the get and

Yes. Hi, Toni.

bit our more core and I emphasis innovations think aperture them, periphery opening at on of a all segments. it’s put I’d to increasing our of new but little the

me think biggest of I area focus. is that the for

and amount compliance. a and focus as make I view want core to aware of of we think to product those abreast and response than of to an sure new Kevin’s markets. build got bringing fraud keeping to organic continually much real said example, is and As up put from capital in this some we fair we smarter areas venture serve from that can’t supplementary. and in customers capital like and are very into, legal that emphasis going those way allowing company There we a our benefiting those question, workflow make better and to money of for to to them. And group, a That’s as to solutions a a are benefit as customers area as a we’ve work of huge what’s innovations our innovations getting of our on and risk, we going sure on

down not As that’s But primary certainly the track, would it the to M&A whether focus. I probably leads does. to hope it

Big X% to the came at last you also, at ask X%. to Terrific. in Wanted had X, for to expected it come quarter, XQ in X.X%

So that result. great was a

comp? last Tax of trying were & conservative strong particular came versus the that expected where low-single-digit outperformance in you from anything be you difficult thinking this been think because strength real in Just the Was quarter? I ahead. you’ve be and of what came Thanks. to anything on to there sort drove or Accounting that

in some Yes. happy the to happen shared there. across I really board. We comment Kevin you Legal. Toni, start regards with just

Practical strong focus really performance from on segment now. I’ll Law. had So, We Corporate just the

Within tax remind really clear once Corporates. we did Indirect Just business and and well. in Law American business, Elizabeth's really, Audit strong it’s business between Dominio, Latin Accounting, Tax Practical mentioned Tax & clear the with Professionals our split well performance Corporates. specifically businesses, that as Legal comes business did as within The Solutions the again it’s from also and really had Steve the Government

haven't Reuters done across side, any the from Reuters of the Toni, physical including really momentum QX. through the thus we events we So far Print good board, on had Events, all segments, and

Reuters a for have person in in physical - QX. will We in event

retention momentum Reuters Accounting for Toni good earlier, a across seeing Tax Corporates but our are is So we segments. the across slight slightly retention. also and mentioned of all uptick increasing I board, & really and in

Thank you.

next you, George. of George question Goldman Tong Sachs. proceed, with from the line Toni. Please And our Thank comes

Hi. Thanks. XX% where Good penetration morning. you year-end With term? Westlaw reached and thoughts the Edge, on to your provide you'd penetration by ACV updated see like quarter, in longer can

would end, are at components I are looking XX% by XXXX. for George, two year-end to Yes. there XX% there. we say year

we horizon, around think reach time will Over XX%. penetration the

it runway reach will we're into there. additional referring XXXX. we we to X.X. the the So released go throughout by And max Edge – what internally It's as time Westlaw have penetration, we

we Westlaw confident So XXX are we very able that basis Edge points George, we'll be recent lift are sustain the seeing quarters. to from in

So on we next confident are very Edge version. Westlaw and the

helpful. it. That's Got

you seeing the are in a in investment all are Change you the areas seeing talk Program Program. where progress? You of bit Change about seven progress most the Can

laid morning. Change at Look, as got good and Investor to the Program. we've we components Day George, beyond, I Yes. three think, out

in new capabilities a building omni digital The first whole of of our customers, in service set particularly self-serve is channel.

We on context of modest it's suite marquee but bit that of capabilities the of do our of some say States. ahead track, a of in the all the sort to I business we very versions first United those products would full that, geographies and that And product have introduced or the in here in. the little is

start, to much good but a say do. would I work So

of the the of tech about migration part that enhance that, slightly Change in revenues technology of percent modernization and our we to our We've well the in XX% which A is by significantly of above aspiration We're more A big revenues an is currently the XX%, stack. products be. to contemporary get cloud. Program making and customer of think the course, the experience set cloud. XXXX. We our is out to, of ahead we can we'd where course, improving thought and component second that at to of stack. The of operations

long our headway the organization, good is optimizing and design And way then And XXXX, and still So, our made so and to think we really I third location there, we've rightsizing organization but in progress, strategy. made good far. a really go. structure our

we've So together. of people sort put the

slightly or executing plan at of that think, are, We ahead on I the one.

and we of big I So spread to be our more back-end and slightly the the thought ahead I have And and those this would Having an year or say where impact make awful working across our on it lives throughout lot capabilities XXXX Program pretty colleagues' service levers. easier of productive. to I evenly would and said think three do kind customers track of the Change through is to work is build point. the this of of at that,

So much to do. good start,

to We've a first-time the of would our additional customers regards of as just platform refer transactions. customer and number And got account milestone it in log-ins internally of on customer the today and experience. significant our George, I XX,XXX self-service as seeing to it add experience. We also in success number we're increase one

experience that So customer well speaks really journey. for our

Thank Got you. it. helpful. Very

George. you, Thank

Our next from Bank. Please question comes proceed, from Manav. the line Barclays of Patnaik Manav

the in call. live are You

hoping the environment. you is the price you. much versus between growth How just perhaps was Big could Thank I segments. coming X address pricing from that of volume? And

Manav. and is thus with consistent couple X% is seeing – start Corporates pricing of in & the mentioned around earlier in question, directional Legal I there. about is a years. Professionals, with that last far pricing, as In X% that. approximately the are Sure, very regards Accounting the talked starting XXXX with Tax we see X%. I seen viewpoint to what we I'll with we've Drew's

it year, we pricing, segments, far have this As but earlier, contracts of I multiyear quarter-to-quarter consistent can pretty the mentioned Manav. across and thus that the fluctuate given year-to-year number

which Legal Okay. changes now? been and and has Got any other competitive just it. side, that And on widened of the the there, of gap I Westlaw some particularly historically? most has more think the Edge Or even kind competitively, innovations

of Westlaw Edge as own been earlier customers. innovation able has what me. said couple happy say, with foremost, would product we're our from I and We're I a focused, on roadmap. our very comments, So, first Manav, for to do

We can it ACV the and are the driven rest we've the that penetration and year happy to-date we for take with of beyond. that where

that very of competitive I of moment in others. respectful at think and our don't product intensity. seeing anything of terms Highly focused the of the generations we're are of We notable changing but next level competitors, on

Thank Okay. you.

comes next from the you, Steinerman Please of line JPMorgan. our Thank proceed. Manav. And Andrew with question

I I wanted Obviously, Hi. the implied just guidance. comments builds the to continued make about into sure your fourth heard that fourth quarter. momentum I year in understood quarter

full X.X% X.X% growth of revenue seem X% that that net math, make it year, a does think to deceleration. around recent also of of to the you just the get touch you company. for the I answer to give us dynamic that organic in a forward you do versus total you on you when over like It year somewhere trends Could that's go sense reported? touch question, momentum? as – just the kind maybe of sales And just X%

regards been Sure, net good board. Andrew. the to sales, momentum In has across

full QX, one net we momentum to December, QX is a regards year-over-year our I the period. quota XXXX, But XX% point, Andrew, November, comes the feel for XX% splits we reminder, COVID are of reasons given into and and continues. the across to some as As in by it think update comps book for of into XX% think is at that that overall, QX good into we head occurs QX. period October, until all would In about our segments quota About there is us. February the which the our about of guidance of I degree business largest XX% have sales visibility highest Certainly, to XXXX quota there. we the month, play waiting the board But why the momentum impact. the

you. Thank it. Got

Andrew. you, Thank

Canaccord proceed. Aravinda Please Our Galappatthige question next comes of from Genuity. with the line

Two my Good results taking congrats for the on far. from so and Thanks me. morning. questions

maybe I just may coming solutions? Thank of remind just of you or players Mike, were about know sort tax of is the The sort question element, more of be the up the the us that backdrop. the on that bit? it I kind competing an incumbents, little secondly, originally, that for comment competitive about mean outflow on can you sort Can you that you with smallest you've you are UK sort around in about the concerned reaction Or of then stand? generally more of been to software when with? maybe QX you. just dispute, where can landscape that. talk up first, follow at competitive innovative expecting we things just of larger look about sort a more account workflow start-ups And

tax question, Yes, Mike then, take Aravinda, – UK competitive Steve. and thanks. I'll question. start with It's can the tax the perhaps the and

are we So, very focused both. on

the focus the meeting, understanding focus. product As getting just primary roadmap on at own our primary and I better said, needs. exceeding better and is our and predicting, and customers' That's

that what communicate – to very We new emerging, very, respectful also watch one I both. of private on put segments respectful carefully be they that the they're and innovations years We're greater kinds it'd other. and of driving. However, you than VC wouldn't particularly equity-funded been for and emphasis sort do of the and in competitors of us players. software our core with new have the the

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make dispute, regards and In we tax the of UK second made QX to payment payment we in the did in a XXXX QX.

we the receivable. was our payments over of will majority So recover reflected sheet those XXXX our behind us. on are long-term belief a balance those It payments for as time intent and horizon. are The that those

you. Thank

question next Steep Paul Scotiabank. our from Please with the And proceed. Aravinda. line comes of Thanks,

second the you ties you one. say in recap noted the heard more it could Steve, the towards give of well? us maybe as sense a see journey And from us given that that the verticals? opportunity products obviously, part a where up on maybe Big on Morning. rationalization of broaden XX%, comment, We've move XX%. a eDiscovery a as I platform. platform I at give to where think you out you're others? of then And and Can sense Thanks. end-of-life that to transition cloud like you'd you've, X product Point just notices is, final

Paul. Thanks, sure. Yes,

So Big we the expand of see plentiful each opportunities to within X.

example Law gave Contract quick the a integration prepared with of Just and Express and my extension about of Elite the Practical HighQ XE. I remarks in couple of HighQ and examples. the

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where Reuters' different looks really that that we're take made able sort to relative & been on audit was seeing the acquisition like we Confirmation in significant place back In very ownership. of to So prior growth Thomson acquisition. Tax where it we've to an to of Accounting, a it the

opportunity. example Tax think, one I we where some that's, in see Accounting So &

other Tax is the & in think area I Accounting international.

Accounting. & Tax on US-focused heavily are We

an truly that customer that's a think global. need I industry is and

newest of, sort And put we've to in leadership, pieces of sort unit. is place so in And of a we'd then, this sense, Pandita's our runway is business and like Sunil we're there see to the think starting internationally. pick And under that our in Corporates, some that lots up.

quarter. third for the So for the first X% half then X% and

areas and of is signs opportunity really that one though So vibrancy point many fraud, global I'd indirect of and there in like and The including are areas in trade. good there, Corporates to tax risk, compliance.

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I of we've first but the progress, a question. to part your good On product that's making we're way So go. got rationalization, think long

and and they become financial complex fairly not very result acquisitions rationalize. profile. can importance our I more we think, we we and financial to perspective, less on. years, But are the the we have, journey important are that's part we will of simpler our technology do the From that a that long a of challenges the tail obviously, terms products rationalize, operations particularly in think many I a the As become a their over and many, of we of significant

Just conversion to clarify and cloud that cloud, on comment. thirdly lastly, my

whereby in making XXXX, by in public XXXX, the we'll a XX% we're of cloud. the transition end So, have revenues our over of

at currently quarter the the journey end that's of the at are XXXX. third which We're be of XX%, so And expected we slightly on. we is where ahead to

want So, happy that we'll we where journey, exactly to with get to that well progressing and get. are optimistic

Thank you.

we’d question Operator, please. like take one to final

you. Thank

Our Arthur Douglas proceed, last of question from comes with the line Huber. Please Douglas.

is even Yes. Events Thank couple called you growth the back. at also you. from guess, Mike, just not when it you've in or I the some growth, you benefit out a quarter virtual to some COVID that still there is sort of got international a QX, And had covered comps coming year COVID year-over-year the wondering, of I was last the am third you that way of still look the in, relevant though markets. quarter? for year, any normalize X, the in some organic strong business ago Slide growth you the mentioned

business, Events currently XXXX down, XXXX. In our me there. revenue break Reuters to Let forecasted in is to in it regards Doug, our few in double vectors a the revenue

COVID, are on. So with two to I about there XXXX XXXX items when think key normalizing would that you focus

play, Events two the Doug, the being the call be the with revenue two normalization. Print Print impacted office Kessler Jennifer Print. with we Global progress that mentioned had on, closures the the – obviously, into of would Reuters business. I the be we transactional physical Events, Reuters Prescott, given Certainly, and XXXX Ryan and ones. shipments Print Global am Print and, certainly driven one would number comes second a be had there. larger normal this the to the key year items those it from was pleased just in the but one very First for I focus would our But as

to Fognini. within the XX% the then led refer for emerging quarter America, and about of XX% international them by Latin Doug. XX% Rhodes, And about our as businesses. Latin led Jackie asked You markets AEM, growth America We by for Adrian regions and another company. Asia

Thank Great. Okay. you.

We'd to good to quarter And will speaking up you our results. to our look our a to when thank QX report with feel for we for day. we question. That all follow you results. Have be us. final in February like joining us Please third forward free

today. Thank you concludes that your conference call for and

may now very have day. everyone. Thank you for and good Thank You a disconnect. joining you