IHS Markit (INFO) 26 Jun 192019 Q2 Earnings call transcript

Good day, ladies and gentlemen and welcome to the IHS Markit's Second Quarter 2019 Earnings Conference Call. [Operator Instructions] As a reminder, this conference call is being recorded.

I would now like to turn the conference over to Eric Boyer, Senior Vice President, Investor Relations. Sir, you may begin.

Good morning and thank you for joining us for the IHS Markit Q2 2019 earnings conference call. issued to earnings Relations the we posted release website. morning materials supplemental IHS this our press QX and Earlier Markit Investor

financial numbers, enhance items. they IHS Our measures believes non-GAAP a performance, its amortization information. not quarter but should the are Markit of acquired which useful considered isolation our substitute results be earnings for as on most definitions GAAP adjusted operating reconciliations refer supplement to website of to and measures. the other discussion release Please compensation, understanding exclude from are in and includes intangibles, comparable our a non-GAAP stock-based measures the to for of or GAAP to or directly our non-GAAP of and the ongoing

is the reminder, information recorded of written events the may future Any this and is IHS call our expected uncertainties. of without property this IHS contain rebroadcast and that especially is of This a outlook, statements forward-looking part webcast prior risks conference copyrighted about and in are to conference and of call, Markit. prohibited. subject the consent discussion Markit or being whole As

Todd take cause available IHS EVP in website. be expectations materially to results be found Hyatt, and prepared remarks, SEC will can our After Chief questions. Officer to and in Factors differ and the Chairman could Markit's that CEO the actual with Markit Financial filings from and your IHS Uggla, Lance

it's call to that, over Lance Uggla. With pleasure Lance? to my the turn

you call. QX Thank us Markit earnings Thank the for for joining you, IHS Eric.

a us expectations, begin announced $XXX to and enhances a resources quarter with our buyback to and delivery, our allowing target business delivering We range flow. we to continued progress growth, in and I also of strong asset our our downstream strategic model exchange business. strength QX, good as cash was revenue pleased we QX line solid our million the with with in profit to leverage that diversified margin continued demonstrate make delivered

billion, up XX% Some the key financial an and of highlights on X% Revenue of organic $X.XXX basis quarter are. overall.

three adjusted performance EBITDA Continued margin And up our points XX% of basis over of year-over-year. and prior up Financial XXX $X.XX, across year. of Services, solid Resources. EPS verticals; XX%, scaled $XXX Adjusted the and million Transportation,

of now me Automotive Transportation from Let quarter at continued perform X% from in revenue segment quarter, ongoing the used forecasting car of transition Canada level our provide business CARFAX's a to with subscription The to some recall a Mastermind, the and listing in the our high businesses. of highlights. top strong and auto growth at benefited insurance the single-digit performance CARFAX business end and businesses, guidance. and the banking high organic model,

we growth which Within product chain includes pipeline. auto believe launch, product long-term auto, we to Life, new to from the is and CARFAX across market well the our for early This value our and experiencing CARFAX diversification due positioned complexity continue increasing for benefit good traction. are strong new latest

Unity our We also Platform. continue progress auto's to

and technology Aerospace forecasting businesses, forecast vehicle project trade new Unity our a And product in our The a analytics. both single is within product. launch including the development expectations. transportation, finally, business, new Defense and our performed autonomous forecasting platform various auto accelerating into leveraging already supporting combines maritime and our of databases Unity auto and to

performance. strong global within strong portfolio WSO, continued double-digit our Ipreo loans as markets digital we In particular a our management reported service business the for rebounded organic markets here the quarter software results expected, business solutions capital and and managed Services, while capital X% business. Financial growth. its growth private

quarter revenue solid resources, included growth. we downstream and by anchored stable in chemicals, growth growth ahead plan. quarter integration of with non-recurring recurring CERAWeek. the revenue organic In is pricing, delivered strong The another Strong and X% performers

positioned stable our organic by XXmonth recent single-digit revenue trends is revenue We growth contract strong annual supported oil target, despite the to trailing are XX-month and which mid our well growth year of - industry non-recurring value, our to price pipeline. deliver for movements, the

signed We with for agreements commitment the The a of have Agribusiness of focus Informa's business market exchange majority intelligence strength TMT definitive long-term markets Intelligence where also Informa we grow. to the particular Group. increases our deal for and core our on

our the crop existing and We'll market in services in biofuels. expands resources protection this to our Agriculture into and expanding our while segment. insights, downstream forecasting the builds which chemical intelligence agribusiness portfolio be new fertilizer data, within the chemical Informa world integrating our and businesses, transaction capabilities our end pricing, is chemical largest upon and capabilities

process our also across strategically, at is Reviewing of we our and the what lens and best continuous our long-term is the through for something look interest Company in financially shareholders, that businesses a portfolio for colleagues. the of

be impacted by contract. single CMS negative of business non-renewal TMT growth Finally, our organic revenue the to X% was continues a as

make expect to the continue design, CMS, the low cost organic digits for CMS be continued We its Product on within structure. to business progress to growth single year. largest the in

on data to for Finally, we've the platform ourselves. want our to which costs The is lake while on data the our a and strategy, working I both reducing data and have we to on provide merger. our lake organization's since explore customers designed access give progress made been an update single

help and discover will savings, new create opportunities. Our commercial help lake insights, realize new data and new us synergies

data place. the underlying in our data and infrastructure mapped lake now of cataloged is is and all Currently,

We end fiscal and data our starting extensive across are now run to to now catalog by Colleagues lake datasets. the relevant with access have sets have are our and analytics to the data year. the plan completed populating of this

the the made longer-term of execution beginning has results. another to date, but we're forward with of to lot in our at look updates. been just A to we I progress strategy. financial providing are of of Overall, solid realize future terms starting pleased and benefits quarter

Todd. over the And to call with that, I'll turn

Lance. you, Thank

our and organic net results XX% of X%; an our of and GAAP of and $X.XXX million $X.XX. $XXX discussed, growth were of with expectations billion, line revenue income in increase Lance EPS of QX As included

of with up of organic included points of organic or our an margin recurring stable revenue, EBITDA QX X% and X%, of non-recurring fixed and flat variable revenue Adjusted $X.XX increase basis of of to EPS XX.X%, million, an of growth XX%. adjusted organic $X.XX, of Relative organic $XXX XX% XXX increase recurring year-over-year X%.

of was X% FX. non-recurring. segment at including growth and X% Transportation X%, Looking Resources recurring was revenue and X% revenue XX% performance, negative growth growth of revenue revenue FX. and including X% X% comprised negative Organic growth was organic X% organic

comprised and recurring was increase X% a revenue organic The of XX% non-recurring.

increased trailing which million, organic versus $X to ACV increased up $XXX QX our $XX Our million XX organic month ACV and was X% year. million prior

declined trend X% in X% continue supportive TMT X% level to benchmarking an organic CMS a Organic expectation. non-renewal our business. We at FX. revenue of and revenue XXXX negative the been contract our including ACV has negatively by of decline impacted revenue

Recurring $X non-recurring organic organic was flat, million and XX%. or declined

We year Code. expect half the of revenue Boiler second the approximately $XX million growth of from organic in

expect continue in low be to full to organic year growth CMS We the digits. single

revenue million sales growth recognition flat was FX. negative growth of Non-recurring XX%, X% Services and and from standard. recurring organic software acquisitive with organic of X%, by fixed driven growth software increased non-recurring XX% was revenue X%, Financial revenue $X Recurring organic strong organic organic benefiting variable was XX% the was growth. including new

a XX%. prior which X% information was organic digit due challenging organically to mid-single grew business our confident for remain comparison versus the year organic the primarily Our We growth year. growth in

see in and bond to valuation credit continue businesses pricing We and stability in services. loan and pricing our strong growth

Derivative businesses our in in We was business. supported declined also was in processing organic loans offset Processing growth. index decline or increased X%. growth million by expect our by but AUM up, part processing $X

business, the loan software new growth organic in standard. XX% revenue from was software recognition sales benefiting Solutions primarily by led our management

in We in impact expect slow to from standard. the part QX, revenue solutions negative growth to new due

due increased markets. in As to million expected, quarter, Ipreo part improved in $XX equity revenue to the

Turning Adjusted and XX% EBITDA was million, margins. $XXX million up versus $XX or now year. profits prior to

points Our Ipreo normalized XXX EBITDA up was basis and FX. XX.X%, XXX basis a adjusted reported basis on points margin for and up

basis points. $XX of with of Transportation's EBITDA Resources' with of basis adjusted XX.X%, adjusted up XXX was segment XX XX.X% CMS million Regarding million $XXX million points. $XXX with margin EBITDA margin up XX.X%, adjusted XX was up basis margin EBITDA points. profitability, was

EBITDA with for up adjusted basis. from XXX flow Financial margin Services XX.X%, driven basis prior and and points revenue basis part through of $XXX Services' Ipreo normalized up margin was a strong reductions year reported favorable Financial by mix. was on million XXX product in cost benefiting points

increased in second was the in expect to margin due lower and diluted half Adjusted or some XX% EPS services We improvement. increase $X.XX investment, share, a revenue. $X.XX in services per financial margin moderation

adjusted Our rate GAAP was and XX%. tax our tax rate XX% was

flow cash free QX strong delivered we of million. expected, $XXX As

rate conversion cash of free was flow XX-month and trailing billion $X.XXX a represented XX%. Our

the to sheet. Turning balance

X.X and basis. quarter-end to approximately was and share leverage ratio bank on buyback. times our resume a return range In covenant will a balance gross leverage Our our debt represented QX, target billion $X.X we of

In closed cash balance including and the terming XX% $X coupon total end. essentially $X out coupon a million X.XXX% debt revolver of and rate $XXX billion bonds ten-year quarter with of of of million We at at our capital of our as the public completed of financing, rate. quarter, million X.XX% $XXX debt completed a a we bonds at of We've the five-year approximately debt structure with a fixed billion. quarter was percent $XXX undrawn

XXX was average weighted diluted QX million Our count shares. share

by year-end. approximately our have complete weighted This to count, count shares. expect We reduce average $XXX buyback year-end minimal on will XXXX share share X million our will share but XXXX million a impact diluted by

an definitive Finally, values Markit we million intelligence the as reflect agribusiness at of two our agreement exchange group. EBITDA EBITDA we larger XXnd, signed business contributing May with of with for on to multiples $XX contribution intelligence announced exchange business. IHS businesses Informa equivalent Informa Informa's for agreements TMT The to cash TMT the from majority the the additional market

The adjusted to neutral intelligence CMS the decline to June is annual million, of the As result resources will exchange exchange, our EPS. close annual agribusiness expected close revenue by by The intelligence increase while market million. Xst. is and acquisition $XX August slightly dilutive a transaction approximately TMT adjusted our will to expected XX, $XX EBITDA is revenue to

our In terms guidance. are reaffirming we prior guidance, of

outsized through of QX think become strongest to note quarter, the flow as is we see compared leverage rest to As through tend to and of you modeling our margin the the has year, rest the that seasonally year. it such, operating and important

revenue full four-month billion to $X.XXX period stub to Ipreo Our for provides X%. XX X% billion X% for organic Ipreo Including months contribution. growth increase to of revenue total year organic with X% $X.X growth to of including guidance organic would

expect EBITDA FX conversion, for expect normalized from with we Ipreo. and to point margin $X.XX adjusted including EBITDA cash adjusted EBITDA also We Adjusted $X.XX Ipreo or $X.X of basis $X.XX target excluding of than to Adjusted including mid-XXs $XXX Ipreo. XX points $X.XX. XXX finally million conversion more expansion in margin billion, billion of of billion cash line of basis EPS And free flow. our and

call with back I will to And over Lance. turn that, the

Thanks Todd.

I'm our financial us results, pleased with put deliver on track to to QX commitments. full year our which

and have margins business. that made Ipreo exchange flow. enhances and progress We our expanding revenue diversified positive targets a strong with solid free synergy continue resources portfolio cash our to growth towards We made continued downstream

we'll start a half. be the QX, deliver million of by to repurchasing shareholders during to our Finally, capital upon shares to committed position in XXX return in second

to ready lines for we open are questions. up Operator, the

comes from Piper first with Our Appert question Jaffray. Instructions] [Operator Peter

is open. line Your

a emboldens if the you remains related terms year then Todd, in of in and strategy something just And seeing terms where think more margin next you've perhaps data Lance of little can margin wondering you're that of this wondering you year impressive. very margin I'm lake needle over So the the or to be this course is I'm progress to - progress moves two? that go. margins that, the outlined, aggressive

- Peter. And are those good guess I questions. thanks both well,

Todd with then the start add the then and I'll and do I'll So data can first lake. one

consistent correct periods to So is I conviction hit guess market's place been of gaining basis We committed those we margin, points think head next think our and XXX year the that's can to IHS mid-XX%s the on have a to we've for that confidence strong we've numbers at. I dead-on mid-XX%s. I and we pretty something that every over and get the margin to that much Markit that

points the strategy, we technology, go hard have that's get deliver X% got basis are you've locations using XXX and At the real work and points And then you to and - revenue at to using basis work. another to which managing million naturally to work find to so out means million, XX are or get firm X% XX you having leading but We personally, costed points. how growth, basis better and $XX we that still $XX it's through hard probably XX the firm. leverage,

for to we X%, may to perform like X% what to consistently start differently. give in we haven't we think cash And open at forward X% as consistently X%s some X% yet, to to look incremental I'd look I'd up an to X%, from as And hitting guidance and going to and done zero that consistently an to opportunity us our start that revenue X%, I of we us see range start invest at that consistently that and X% margin is us. us end X%s, to to X%. hit start upper the to went to we to occasionally additional that's enable like that

people, we revenue in our look and investment. our also products, to additional our the the technology, to our efficiency short-term, in X% driving growth of range; takes using organic say gains technology will internal also a invest I'd some of platforms, bit But in X% operating

So, the on that's margins. it

So I'm don't be the sure expect day. out will questions a half, XXX of of favorite lot in the of one which the more second

that one to So, we'll put rest.

I'd we've The implementing a strategy, lake on merger. of is stack, data got the and say say infrastructure. selecting we're into planning, post years and I'd second technology thing year three half it's that a - the

is infrastructure fully Our implemented.

out science teams our teams and and now product We our the set have the our with busy data architecture, lake. are technology filling data indexing,

enable data two is we what thought could things. lake the that Now strategy merger at we that said

new it. efficiencies that's some so shorten but help going development change to cycle the so us our margin, more with importantly product create life One,

once So our I from targets lake. more data is is lake would readily to our product data upper expect, and going forward, opportunity occurring development the hit revenue full the end of direct

with that more also have our we with - I'd say opportunities customers.

it, distribution as lot expand our connect customers a that lake information, range because them our in our data a and to becomes today. tool sell of don't broader buy for probably So, to the navigate ways a easier we commercially data to customers to

both that think hear about look hard, as you're forward. more I and part I'm more merger that and the And three going vitality of very revenue forms very so, those us excited our about to I'd years of think talking we We things. and since that it's worked new to sources love

Patnaik Manav Our next question Barclays. from comes with

open. line is Your

the policy? made I just in My question was just swap comments what talk review. about asset Maybe you help - guess, is reiterate the just broadly capital reviewed was else some interesting, allocation us portfolio being and maybe just the

a is move, Well, exceptional I really It is an business. in of Informa for off think their and it's Markit. terms building both I hats technology team. the IHS Informa exchange think portfolio to

data It's into of it number a sets, great Informa. resources business for in protection. world-class sub-scale extending and market-leading new opportunity have crop one of pricing same and types position was It chemicals, is of our and information, for perfectly position, team this news that downstream We tens fits thousands us. more added extends customers, biofuels, fertilizers, really

we types On had assets. three side, the TMT of TMT

tech benchmarking automotive assets our business assets our assets other some synergies wind, with and automotive important we energy technology We and around renewable had in important to have around parts Group. solar had and the have of space, have we very to We storage, to do our assets important and very the the battery and in technology semiconductors, both which energy. franchise

to were core whole but been screens, to tech was shed Informa. So not us of things video, as maintain to core us what back which those the focused to a were able benchmarking displays, bunch will smaller, that be business more we've a assets business, into redistribute and non-core

within do around So what exactly you the for and small That's for that assets, not or good I to be team there I core as portfolio us. want our continued exactly to the people, is of good guys sub-scale creative the are as portfolio. well assets cleanup know do or some our are

to runs intelligence pricing look to have types opportunity portfolio make it. do, structure our of of we're are things that more those financial join reporting business Brian to excited makes deal Crotty the and for of sense, constantly OPIS downstream the do we actually and super agricultural who and our occurs, businesses. looking downstream the will if the win-wins And and we're into we'll at changes that And

comes next Our America with question from Gary Bank Bisbee of Merrill Lynch.

Your line is open.

give is On very most that of can et asked penetration key strong a CARFAX Can the of some investors right. there business, some the the and in assets question just of business us we growth within I the around you. core I particularly cetera. help transportation this tougher parts Thank on are guess where the other understand me get on growth, an against forecasting, of there? comp you here, just from you business update curve and offerings the the

I'll I think few businesses personally I the start I'll now. know but that off and do very Todd with this well of together, a one

example growing So digits. car used double take We're listings. strong for

best into the UX, vehicle double-digits a We've big with lot and product. CARFAX we're players growing have product us. the reporting of in we've great integrated of experience, a great created listings we've front of and We revenue history our got

it have we to stick So to do to the the years, knitting, growth do there three five significant continue my well. view we what just a and is, do next over

capabilities Next listings, respect growth Mastermind Markit lane. IHS we're our as to across service our acquired Group, overall with is the as sure piece the of course integration of automotive, car used CARFAX make and and especially across the of well services leveraging

we're that market an that and ways is sales sales a in audiences our good or spent sure job. cars expanding is help to we're complex. marketing other the whether targeting and And on our those make of customers we're making thing for revenue. the for And doing automotive team I'd and customers building increasingly the market, a easy say is chain being channels is there dollars tough

given stream outperform. subject growing complexity, expanded giving the forecasting an suites to matter experts our providing componentry us AVs, the of revenue OEMs EVs, new into is the starting and is all of that research the

That But you quarters, segments, the each we're those the names have our next things diversity outperformed depth and and are complexity look So we our is I'd in regularly. increasing. back last shows to just the piece, of business spaces and in this be the that the you what you changing XX say. did quarter. we forecasting in in told remember It of quarter over is around the if would

the dealers I'd what that, to slowing positive competitors' trade and car, and a car or new tools go for with - any is that's to and in cars cars we Mastermind, is say sell car great is of Finally, support and for service market provide down for to the additional us CARFAX, actually exchange a cars or after one the help be. their or therefore a a a place sell

really we So be X X we net-net, to could again X, at and high-single single-digits been high to that. wouldn't we high-single be continue at happen The we a have X, quarter, do in have make are work been to could digits, me, X, they and are but it difference every continue maximize X, to at hard digits to and revenue to me, right. teams confident

to add want you do that? to something Todd,

I'll have. just market to is we another that the lens, give you it appreciate position which have

of car. entire servicing talking or dealer the market very used car a position car it's CARFAX an car important in car, used a a part a across about if taking that trade-in a workflow chain, the selling have we and in We we're are whether strong

really process. So in we're core that

the business the VHR revenue we've is so that it's expand start strategically other done and And streams. then the what one-time, with into lifetime

but with service lane. about create product So VHR we're monetize, used don't we dealer talked into the We have we evaluation that moving value product. car listing, now we for which the

theme value that's streams And also, demonstrating that in and in the so anchor around and with the and supporting car. the entire new revenue position to innovation to and me, the customers theme product chain additional the is to me our used value cars, doing a driving creation additional that way the

but on ownership. VPAC, we product. and emissions underlying a talked audience analytic added we've about we have have drive strong added the information We've production car We products. position forecasting, revenue that through in Lance building the

have. building So, to about it's our assets and positions market streams that we additional me revenue from

comes next Our Bill question from with Wells Fargo. Warmington

open. is line Your

a So, Ipreo. on question

from need second the If in the with comes is QX you million, $XXX million accelerate $XXX in in guidance, will which end to in in $XXX for to annualize order further softness the the under of up just the make $XX the but in low line half million million QX. revenue to revenue

QX? how in did how confidence the is question - quarter QX in the revenue acceleration the what progress So and gives and the during you

did in Yes, the you well, of markets great the working Ipreo have the think I market synergies, Kevin, of our Adam, and of entire the and terms in and teams acquisition the job know, through performed - a QX terms the integration. the Ipreo IHS line in expectations with teams of Markit synergies and ahead got

in I when we you'll incremental that pick would annualize the and end of QX, up you that, revenue expect up pick QX in level range. the to QX quarters above you the top both move -

we top in think, run rate, So, of the think end the end of up at I terms range. I

the - lower and the will end nothing terms to is performance of and on a breaks There on it. be that we'll on actual, The in look the in tough you move that think one. of we quarter the continue that range QX revenue at say. of I and is to well know, build that's performing that's of to previous business each else we and range

Baird. question next Meuler with Jeff Our from comes

line open. is Your

if OEMs. Platform were products, growth not the on outs from past the the related questions auto And new ask of of which a my to Want of more the as a the I that other of is - strength guess transportation to Unity contribution is call is forecasting driver it's couple out commissions now. couple quarters there as from common VPAC occurring call about for Unity or a maybe

and launch. to Just Unity performance the to product what's not it totally strong the clear since client is a me other facing forecasting in back-end of development understand And platform that comments. or that us platform auto is help tie enabling serving

modern part science, even Unity spent the since into the going Now, the putting case Markit several that update product data merger accelerated re-forecasting that to quarterly in was important we really our basis automotive allows tools strategy you the changes merger of look and group, automotive tech was IHS and - year is and big our acceptable. business, it the a data lake structure development forecasting a years historical our for it's in and back what if was forecasting sets now on to data across model have into a auto probably forecasting that acceptable and the

real updates just it want what Today, to talk to about Chief we you databases. data want can't be Yaacov Oracle maybe terms stack therefore businesses that, is and little with a Scientist modern how and automotive lake the Unity deliver spreadsheets and we're at a CTO with and bit our like customers tech need Actually, forecasting We helping our and here, doing our Mutnikas, in is. team. where that do almost of strategy that's to in time that's Data in

across out our an - interface and products, as to and that the data of projects to analytics earlier, taxonomy mentioned unified integrating with standard Lance and facilitates data to consistent we in data interface as lake taxonomy unified that deliver value sets build engage, new data with lake, were assets across data to have - many we all business. an Briefly all so others a such new and couple Unity that the

more much a way. rapid in And Yes.

revenue sets development we lifecycles data forward, job great shorter our So to the team. automotive of It continued as our gain all product our they're of when out and is to look infrastructure. forecasting, definitely growth building will key lake

with Our comes from next question JPMorgan. Michael Cho

is Your line open.

Ipreo's to activity - growth for on behind Thanks. question past comments. outlook you color what ACV two, still that is around us At the in just the the clarification ACV improve or second year. some growth first in and give assuming you're And the revenue can case I the mentioned on end-market think Is quarter? throughout was you just accelerate year-over-year ACV expected you Ipreo, commentary? the a what organic that My

With the absolute quarter. ACV, growing at we in moved are number a bit this up dollars X%,

million I by from quarter. think we moved $X up last

and So we continue in ACV expect continue that's digit still guided to staying the we're see the We a single-digit to the half to we're a to mid-single ACV to digit growth in we resources still support - so level progression improve and be ACV. of on see year, going mid business. back sub-revenue do would mid-single of good, the ACV stable but guidance that growth with

So modest as level year. the of improvement we through move

next Tim McHugh Blair. comes with Our question William from

line is Your open.

as elaborate the which think I out just impactful I particularly on wondered solutions. called if you could you being WSO, to growth of

Just what's driving the growth there, I think would be helpful. Thanks.

business that to general whole out in we markets yielding people called I the acquisition in in public in and leverage see in reach continuing higher and to space our grow Ipreo, alternative driving loans, the I've of liquid yields the of - think Well, assets. terms private to low alternatives,

and performance. private areas, had looking looking for raising They're capital great players You've got that ways and new more invest. amounts of are diversified they've for other large equity to

players private So, equity debt. many moving we see into new private

way You've I got credit traditional into markets move up asset expertise find that its market from to that available all thing into that, And systems public the the bond markets. the fits when public very one private sneaking start people, its OMS the in are you do managers, is for traditional and rarely in isn't there marketplace. buying a common well these manager trying asset all see

office. for it requires tools, leader software, - a the world pricing, requires leveraged doesn't. loan, private it WSO a leveraged indices is Buying And bond, loan and back

hands, So team's JP using customers. Investor Services Morgan's that ago which both we of our When came banks. out it Group, into for asset they we some years other bought their attracted that were came

attracted to the all and that participate wanted hedge We leverage asset managers the also funds in space. loan

So that's area. a growth

compliance in we with think them markets the that characteristics then strong has in when tools, capital the you and private we've the a equity alternatives, our deal add we called anything I of have debt, markets, Ipreo, around that out around support start do valuations. products debt private through really private do growth strong we private also tools been very rolling our the - suite flow, acquired which reporting to to

the and is good out done WSO marketplace. our platform their of ten have probably that getting chosen job generally share that's a times nine So teams of the

So well there. we've Thank you. done

Our question Jeffrey SunTrust. from with comes next Andrew

line Your open. is

X mostly up the your view, the I'm product - growth Lance, drivers step or on in Are commentary success organic that entirely you're to other intrigued or dependent or aspirations. longer-term and to and the to? is time that, data strategy acceleration development from a around is in there by X revenue market X looking some lake and say to addition

I there drivers, four the revenue or think key okay. is Yes, three

So, be course people. to and of got people to you've have you've great able to keep good people got your

important have strong that it's our we financial and performance a well. can So people pay

On product of lake. help leveraging first. product lake many groups the be be doing them me the will margins to by by product, to improve of the enhanced people suites. it data all data data than will different times going across So ingestion is It's our product rather

reinvest of gains the margin the to which investing spend going will growth. So incremental for data you of commit the with able share is, trade because lake some be some product in incremental I'm therefore the for technology and those your your to to with strategy development and be plans will groups leverage my off and the strong provide time to

firm's is being markets growth that thing the above the in level. But are other organic actually growing

at I to a that So, those the are one divisions allow And ranges. long-term - areas IHS there, opportunity where two areas are accretive to that our growth one us our every think growth. perform is are accretive driving or of at and in in Markit least more level to there can and at growth

is largest debt, the So financial go double-digit, markets, with it's if It's to you to private to and do. of I alternatives. strong, capital it's one players definitely say private in have there we're lots and do anything

I that. So, like

those - growing those serving providers they gain definitely scale up as to thing that. some and squeeze that the they the I'd of finding need to then share percentage asset of that the technology opportunity fee is any the don't we're are their will information business therefore, the is of gaining operations of aren't of and second fees our say need The and into have costs and reduce substantive feeling services - cost a are managers ones

index be So into in structure. - active and will my that AUM type where would get going there IHS Markit cut AUM. to active active other at - getting passive, growth, product platforms coming, Those it active, well new rolled an now one, growth is bode is ETF for indices,

that if six to the financial or therefore, midpoint move to look of to to with So, us at I up upper that that. eight, able markets, to end consistently shift I Ipreo be see I'd love of

strong and of In were Those most and they the against are and sometimes downstream platforms double the Platts love accretive our exciting the digits. we think energy Argus all thing ourselves course. the PRA-type news with single-digit space, I businesses. and OPIS We news upper pricing growth, pricing compete where and

organically continuing are great having there, to a out new We see that product TAM. I as build

are but LNG that LNG should the the piece The is to presence do think our the into transition, and renewables. have analytics coal given markets. It's we our of big energy all which other knowledge I have - a underperforming, around it's everything around outperform transition and pie from of the one is therefore around

lake our data driven strategy. of with Again, again driven strategy in of data the transportation it's strong terms of fast, out our marriage out lake commodities, analytics of

mid-single of to that transition, value range to volatile market are growth got and clean of you XX%-plus in is do a the us right energy, in energy our We still around have still We're the our upstream like and of So again, I'd business of middle those out digit our do, markets. anything to do. extract see what in renewables them. around but right we we tech break what XX%

I'm there. always a little cautioned So bit

And accretive of then to in automotive lots our engines we've growth got we and growth. are

But assets some say growth we the growing should view to you to then X%. a temper that lower you'd if we growth to point or our should some do at growth. of have move of So dilutive percentage matured are - organic up at move the looked you to assets, X% so on that, your with just

you - to haven't it, progress range willing it as we opportunity to be but then us that's - to beating the and is that management, to And done and that's move the upper a an our end because I yet. think of and end call word, the upper consistently I'm at continue we'll opportunity the know but up, if we going move we're we'd it's and our that, for not the portfolio challenge through fair of it see range

can at we organically our therefore confident give say double-digit drive basis a and flow, XXX are framework shareholders, it a a small some growth. return to use lot grow points to shareholders cash we capital carefully of where bolt-ons So free at with level create we very what earnings we're of operating

the to - our some the forecasts. that's grow on It to gets when with differentials best when or you close space, I X% do. better. renewed we're we're And and should And probably easier think the come and drive us multiple we'll that at trying back as in gap to there, definitely what

Our Foresi Joseph with comes from Fitzgerald. next Cantor question

open. Your line is

I just wanted to kind of updates. two get

and on of that were reviewed the under movement news end there. the be in oil, the and budgets year. for some much been was always obviously they seen at set impression it's pretty year that I would the First we've the

Thanks. back place, then if I the share second, buyback any about with change So, in sure in the you're And do wasn't acquisitions? seeing think we how that?

off you with Do - Todd? start with want start

that's remains in operate as it's the though price, even see to it within that long in oil expect think why the budgets set, the your energy really affect essentially volatility - get decisions are price and we level underlying these range of those with some operational right to. decision, you companies I which doesn't companies, it so Yes, long-term so a

to Brian, the we good a it tool, stable said of - to before, improvement, very see team doing I've will will over job think time. this and at it they're but we're a I just out, it continue expect be really continues be and of period to Jamie, Dan, entire energy Dave, grinding be and So operating the business

of question? the second What was part the

Acquisitions.

and you to I two QX to resume is - three pencil is I That three times. year. mean year, the run math, out color we, of move in Acquisitions? as allocation the the is capital I forward through allocation Board below more policy the we capital leverage strategy we'll as the capital and we can excess doesn't for us lot mean, this just year acquisitions every provide think that We'll then capital million $XXX review our the but this allows on with year the buyback, get leave for set. a

our that also think also I strategy. disciplined to you very and should investors signaled expect our of And approach we've to part is management shareholders return our and capital very Yes. - said consistently, a to we're a capital key

Our next question comes Hamzah Macquarie from with Mazari Capital.

open. is line Your

[indiscernible] organic Just downturn. the think how growth to about in

You know, you organic just do positive the to do still given [indiscernible] expect churn?

Yes.

growth of So our the downturn. breaking in there, I divisions, bit little I in were think organic each a sorry, but you the got up

will space. single-digit in and with us other positioning that's a automotive around things maintain to downturn, in cars, lane markets new many allow a X service X, cars high outlook, fee alternative besides X, challenges, still financial digits feel our high-single So growing we used

of away and of of little mid-single a we end the with to that strategy ones of to much been maybe at X have the that then lower that markets then chain right - a new with is the approach think X data our the more of really downturn, balanced upstream digits there of end move of you've product full and consistently And - range a lots are data we energy value shifting lots lake have distribution is terms got and up this you and development. number. We've the a irons financial to fire, that in got upper which of all the focused more on diversifying in from energy, across end overlaying

confident across digits in with to firm, can that. above it very maintaining mid that severe opportunities In growth I'm see operate any even the was positive a downturn, issue with I single a organic consistently downturn. a don't we accelerate if

Credit Kevin with Our McVeigh from next Suisse. question comes

open. is line Your

buyback. the on up following Just

the in the Just Informa a things. the the market, would couple guidance Does or timing million, of and $XXX impact in be that that of upside? you additional is can exchange the EPS be is when

No, and yes.

in the So we up - net-net, million. $XXX count doesn't it mean $XX million cash we built buyback affect the end execute the into of for with forward we and will I guidance. Informa, we - share have

is this a there impact year. I big not said, As

impactful start or at So it a average diluted year XXXX. fully it's share be count, will shares. X million a the lower We'll definitely weighted $X but off in million

next will year. benefit a definitely it So be

next Our UBS. Kramm with question Alex from is

Your line is open.

the dissect the second Ipreo. a margin mentioned then why are go half? to the come job to as we on you're into including of And performance, here tremendous a into wanted things business, like this maybe bunch outlook much done the I already. Just - conservative synergies back It how again you've margin the like financials with mean yet. more, margin the being your you rolling contributed, strong just that the in a various businesses bit Can really you integration little seems

So Thanks. why is it not sustainable?

synergies I I of this, the said the but ahead to and full-year mean and we made ground of synergies, still in expense in so, probably and Ipreo we've QX. level getting see with make number. Lance of good have terms the the out Well, progress up high integration to confidence coming

bit is margin. I from the coming space, revenue in We that a thing area that see subtle that in lower that big The called product in be have back compliance we more do see half year. shift red we'll mix will will the out a the of

favorable year, the had in both and half mix so, product And margin of software. products first high with a very we information

forward the expect we have make so we performance, a back a we the margin that services do of little then investment half strong year. given and in And the financial see bit of of that bit of reversal to a in

years now. be appropriate an the been want to strong in we story make and the for But investing sure has term decisions level. margin a business Continues really, for really to and long we're making right and it manage the three

a the in down expansion coming of margin So the half see back do we bit. year

comes with Stifel. question Shlomo Rosenbaum next from Our

is line Your open.

decline there I in then, sequentially. that's like year-over-year, to the catch down Hi Todd, seasonal explain - that recurring you want $X.X went can you the million. as just growth Ipreo there me anything didn't one It throw if I can well. resource's why looks squeeze even and just like Is organic if to it one, would other revenue in

a trending and last at where that point thing the and we we've called a in and the been so out rec And, growth level don't I rev call a double-digit full XX% Remember we're rate last in a think but that to benefit favorable delivers actually resources, line quarters. normalized we that in out was with revenue quarter growth, of from we right year provided growth organic or that range specific the Ipreo, Ipreo. couple with year for big full

with next comes Morgan Kaplan Toni Our from Stanley. question

line Your is open.

you the your low slide. one last to year in which had, growth, know I one is guess, that full note I mid I expectation on Ipreo, you than lower foot first that quarter Just on had just mentioned XX% think guidance the teens

it full So, just feel for you much quarter as a just year just there the a after little to growth don't just like I to catch up lower why bit be first to you or wanted weaker can better, understand Ipreo understand, now. the given wanted expectation I seems getting was is that

we move mean I on as the fully catch We're rebound, up that up of saying couple to expect to range, supports to of inside the that as high next part, rate part middle don't business in mid talked rate expect last the Lance move a run quarters, did. the quarter original QX. that basis now we the a I run and at think we it said, to that about Yes. we range

end why lower of that's in that the range. QX, so And went to guidance down we

George with comes from Goldman next Our Tong question Sachs.

line Your open. is

run discuss that forward million to 'XX have fiscal exiting incremental can step-up selling on from a previously synergies in initiatives and drive continued indicated You've exiting in increase market rate revenue you $XX 'XX. progress $XXX help quarter you're fiscal going million that you the your a revenue cross synergies? Can the to of track

Thanks, so. George. Yes,

I'd our can really that drive and thing is Markit first in I if think played the products have to to growth consistently terms of definitely - me merger participants, distribution organic IHS from a we the X% out Markit that say real original I've of synergies be basis, market financial good the outcome we view and up said in be a rate us positive IHS a into before, are across above to which million, on job. allows up slower terms a we've a $XXX bit think golden a of done of start. little run rate, the run that's I to But

I'm just the Montreal, call I've coming - in tell can New back trip. don't I off L.A., you here I'm where from Toronto, of What the do to about can Newport in customer Boston, fact been and Beach of is, a we York risk and, go a customer in now terms time today of doing country any we're what talking big don't the lot know, spend I meeting measures. I is, from you

investments. do - can impacts energy supporting how terms of ex in and we Permian, What exploration, it LNG, types investments any energy of into transition

called support Our automotive experts getting in a financial investment. to

markets one That's synergies. set. be financial strong to really my with the a of revenue value being out and customer So, those continuing as lot a information fact this, of place Company is view an we're to of extract

organic team, X% and but from we of if which growth if six really really merger real harder ongoing, harder least a disappointed activities, coming that's to been have think do measure, I positive. I'd related points the be organic gets growth, the at is

be growth, if out drive to data start the to back, not merger of that if, getting vitality second that is, that. I'd us And three we the and scale can every put a we're years I'll saying our which you of call to we're margin allow consistent I have lake that incremental us X% or ability vitality growth disappointed and margin disappointed when the of then we the giving want the out measure, is investments, take type on strategy the to of would thing is really will and is and to of look of feel more better when out be shareholders organic got what we that our to say the with growth margin pressure the we X% organic invest

IHS into that the the really against. I been scale that IHS plus the So outcome distribution into base customer a Markit, of market strong products performing That's kind one you we've markets. of merger, financial gives think of the consistently and

Next question?

Our Bank. comes with Ashish next Deutsche Sabadra question from

is line Your open.

cross strategy. a those follow-up how does you on none which differentiated also your the data in be, because industry on for competitors Maybe of help just have, quick Lance, Thanks data view would lake insight great it that insights. color provide a lake have of great all a asset data color and portfolio on that maybe the maybe using examples machine on also strategy, any of your if any anything processing Yaacov, there front. language or learning follow-up on or you industry for Thanks. give natural cloud that front? a can enablement across are technology So, such

can first the Okay, I'll take the second part take Yaacov and part.

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from data terms time Strait of what And from, for where commodities is energy at I And in subset oil we all basically real cetera. finally et which it's the ships world, the potential in projects, like can various mention Hormuz that understand of we when and across in science and all coming centers challenges, can anticipate is going where can the specific wanted business value. it's we let's out to going, to these it's oil we sea, going of the project oil movements, potentially the terms it of our that where of to example influence at know any the points maritime all carrying can where the time, understand oil commercial movements reach oil point one in movements ship various say of

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call And to like Boyer I'm this I'd for time. questions over to no closing back currently at remarks. Eric the showing further turn

and international hours about This running through XXX-XXX-XXXX replay for Markit. July X, or XXXX. in you conference XXXXXXX can accessed call thank IHS We interest your two ID beginning via dial-in in be XXX-XXX-XXXX

will our appreciate be In year we on addition, and your website. the interest webcast you, and Thank archived one for time.

and day. this joining. concludes Thank gentlemen, Have you wonderful conference. today's a for Ladies