IHS Markit (INFO) 14 Jan 202019 Q4 Earnings call transcript

Ladies and gentlemen, thank you for standing by. And welcome to the IHS Fourth Quarter 2019 Earnings Conference Call. At this time, all participant lines are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today’s conference is being recorded. now today, hand Investor Eric would to conference Relations. I speaker your Boyer, Instructions] like the to over [Operator Head of Thank you. sir. Please ahead, go

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

and quarter adjusted order amortization on the they GAAP in are items. intangibles numbers, of excludes discussion or non-GAAP for useful or to enhance understanding as not of and based from our believes Our to ongoing substitute measures Markit financial compensation, operating information. are which stock-based performance, supplement acquired be but a are non-GAAP isolation a considered other IHS in on should to results

reminder, This the Resources that, be and Lance. the EVP and it’s over turn will Chief to of Chairman questions. subject actual this Uggla, rebroadcast Markit’s to and IHS results found prepared expected and Financial Markit. CEO; that are IHS webcast in Markit IHS and materially looking pleasure part, Hyatt, SEC call is contain prior is discussion CMS, Officer; Transportation, forward can property future and being without and the Lance in events call, expectations uncertainties. about may in Todd or call filings Any outlook, prohibited. be to President, could to copyrighted risks is conference differ Factors from whole statements recorded Markit my the IHS take and consent our that of conference Gear, available Jonathan cause on the especially our your As and of of information, this with a With website. written to remarks, After

thank and us Thank call. the QX for Year joining Eric. New Happy for IHS Okay. Markit you earnings you,

capital allocation of for we increase the commitment, reaffirming new we another to once capital and commitments. our year our continue policy was our return successful guidance, Overall, we year cash financial across results, longer innovation that delivered with including the firm. IHS rebalanced dividend, of portfolio, financial our year We we consistent within XXXX increased updated XXXX term Markit. the a Our another is and which our pace again a solid are quarterly QX finished

Organic XX% and Now and EBITDA quarter the on for XX% financial adjusted margin basis was and quarter to for points basis ex-FX and XXX the quarter the in was growth in the highlights. year. X% the Adjusted both in year, growth the was expansion, year. the XXX EPS points revenue

of terms provide QX In core our outlook for industry XXXX verticals, and then and XXXX. I'll year full highlights

segment. Financial First, Services

in Services Financial was for and So year. organic the QX growth X% full

within successfully ETF regulatory year Index, of a data and already of has a the new product first the indices, number new mandate. that our and launched information, launched valuations first pricing its reference won we During offerings, the and expanded its including solutions, global Carbon kind

global against energy Hundsun Technologies services, great progress needs our bond continues to platforms offerings. efficiencies desire and replatforming XXX into private with made meet over wins drive new customer with increase efficiency adoption progress targets. our the completed included markets. opportunities management extend progress syndication We China new the announced range. for and with the Services, connectivity the solutions solutions with markets in X% and risk. capabilities reduce for long-term growth integration to Services into in managed cross-business Within Financial also a strong processing, of in our that new we we expect In in data X% synergy alone. sector. a our venture accelerated next-generation Our and solutions integration asset of systems we of our of Financial platform. that added and portfolio within XXXX, which tools to regulatory continue of joint classes Within expanded actions core we We corporate organic FX the invested our and innovate capabilities, in the invest team our to compliance to Ipreo the to increased alternative We growth made customers the We

the data gains. our services from Information, continued Within reference valuation from share we and expect pricing growth and businesses

investing index and and Our due tools, equities products from shift to management from looking alternative year and new for across continued launched. a continued we regulatory and by Solutions, diversified our the we growth within Within classes. asset on-boarding our compliance franchise are expect strong new our business driven products offerings particularly to passive especially

drive We in both book loans expect and will to and debt expected market that businesses. and to our flat in up mixed solid to issuance equity syndication see slightly markets. year-over-year also conditions normalized building be Processing performance with of is levels derivative

CARFAX growth of year. high the we and Moving to within the with the for in results Unity and Life on with marketing. which strong dealers tools. to our analytic new auto In Transportation single-digits data made revenue new service lake produce continues their autos, progress successfully We organic platform, target forecasting line helps launched which product, our quarter better which very XXXX leverages

product. analytics positioning, that regulatory a compliance and for competitive our of provides combined We integrated but its support leveraging to acquisition we emissions our loyalty small, conquest continued And improve strategic offerings. partner JV Mastermind's and

within to to organic results. markets and we single-digits positive post-merger transportation performance. driven XXXX, initiatives Finally by expect financial in with the continue recurring maritime drive to In continue high trade, strong growth be we into cross-sell revenue

business product. results listings, vehicle new continue will reporting history continue its Our products steady CARFAX and Life our and car will The used used for growth. from car core strong banking our insurance business see to

growth expand is to part of to challenging will that our the newly deliver the support were footprint. of which product it we and dealer X% And Mastermind as XX% down its automobile due expected to then XXXX. globally business expect in maritime business as launch for trade car new within which the to growth manage compliance expected our car Our built results continues lake. double-digit is industry leveraging sales through data new finally strong is to contribute accelerating in looks our be new trade, strong

Moving was growth where year. quarter organic X% full X% to the the in Resources and for on

businesses grew downstream business launches. product for and high year, -- end new our once the single-digits a again Here to due market healthy

Our analytics, American upstream business and driven by offset showed by insights data, North modest growth, international data. partially

from another of more partner had attendance X,XXX and Conference our year XX the thought CERAWeek as than with a industry. Our position to over demonstrating countries, leader delegates record critical

markets greenhouse range. of the scenarios the they of energy weigh in provides trends In relationships, continuation growth synergies, new excited the our retailers. trade great continue are capabilities new our X% these share ESG. Energy stay for capture Within and future global Studio, to We've relevance new XXXX expect and is upstream platform growth our demand of and as use by we expect we of integration Downstream we Today's organic product made the to many impact in increasing strong complex to a solutions also with analytic Intelligence tale and Agribusiness for petroleum and progress saw an to our the plastic Agribusiness the for role the which developing industry will downstream customers fuel the benefit acquisition data for from for businesses. increasing we're with longer-term favorable growing We dynamics, businesses, XXXX, our revenue gas connected in visualization provide our increasing due X% upstream, been of our markets. internally will car, the the of for evolving us retail delivery that for renewables, lake. and the growth Within of to enhanced support and rollouts to of our downstream of space. launch also ourselves pricing which organizing data cars

year. organic Finally, CMS, was to and to X% In rates. low growth and for quarter in stabilizing product recurring we deliver progress the mid-single-digit growth X% continue also made our royalty full design, revenue good revenue the

CMS, We mid-single-digit XXXX research expect of market to divestiture TMT. deliver business our also In within to the growth. organic completed low within we

XXXX around and very strategic about culture of of product our I some in a innovation to development. progress our continuing drive on the initiatives made and across Moving good that firm. we innovation feel to

data continue within new beyond. innovation created lab look experts, launch the for capabilities a assets, data more customers Services ways product our ideas new and programs Financial XXXX launched firm-wide to in in and leverage our a month industry formalized science we'll and help and to to innovation time. We These held revenues. our to growing our better We new create that first

seeing of strategic we're our all also on-boarding benefits. and data our We the early data lake into met already goal key

product In customers. development, product efficiencies of Going products forward, distribution the around the future. forward to we lake and I call data in further of across faster our With we'll I'll turn to data value to expect commercialize the drive our the growing see improved to further Todd. look that, businesses. to data innovation and and ingestion, updates XXXX, giving over to you look

you, finish with results ahead strong year to of had the expectations. Thank We Lance. a our

of revenue of million Our XX.X%; delivered the an GAAP growth pleased with billion the XX%. Relative XXXX. organic throughout of of adjusted with and X%; $X.XX; organic with financial of and all-in to of and $XXX of and and our X% organic increase to X%. growth $XXX organic $X.XX was income we were EPS an X% of of revenue solid QX $X.XX million, EPS We EBITDA increase of QX performance revenue of included or recurring performance and $X.XX, X% net GAAP included revenue X% growth the adjusted of growth non-recurring margin profit finish revenue, year increase

million and organic Looking including while Financial growth XX%. FX. X%, declined organic X% was was Recurring Services revenue at flat performance, organic segment $X non-recurring X% or

business by declined strength in indices, Our organic X%. X% our pricing Information and Processing organic was led

revenues. to in by see continue offset processing loan processing We growth lower derivatives

organic percentage for corporate the part was X%, growth comp of continued good in organic Non-recurring software organic organic growth was acquisitive XX% data enterprise and declined new strong organic, was business, comprised actions X% offset X% million included to Ipreo Recurring X the and recurring FX. with in X% including flat growth of X%. and of Transportation revenue including the million and from X% due quarter $X Organic in with revenue growth and flat performance analytics standard. in revenue X% recognition XX% Financial by FX. X% with of by our revenue growth in revenue operational point organic or year benefiting management Resources our Services increased the its Solutions X%, $XX non-recurring. businesses. difficult quarter.

ACV and We X%, growth XX%, was year. prior impact of versus organic, flat organic with pressure CMS QX vessel ACV negative million. $XXX was year increased X% X% million the in $X our $X and XX% ended recurring of declined up uplift Our revenue TMT increased design business. $XX ACV the from including X% was year organic million, to product divestiture million primarily full and code. which organic included Non-recurring Recurring FX. our boiler or X%, due

and Turning profits million, now up X%. margins, EBITDA to was adjusted $XXX

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

down profitability, up with XXX Financial was XXX was segment $XXX of $XXX $X.XX with Transportation's basis points. margin XXX was XX.X%, points. $XXX per basis adjusted with share. down XX.X% income million of up XX.X%, $XX EBITDA adjusted of or Services points. EBITDA XXX Regarding $XXX million net million CMS basis EBITDA XX.X%, was was margin GAAP Resources million million adjusted with EBITDA margin points. basis margin of adjusted

over $X.XX prior Our was adjusted XX% share improvement and the EPS diluted $X.XX or year. per

adjusted year cash free QX flow million. $XXX rate XX%. full Our was tax was

which impacted the percentage X point a offset as impacted sale free year was campus. represented from free discussed investing and free was Free to therefore from flow of cash with a $XXX rate flow payment flow points, points tax buildings tax payment reported QX calculation. by from cash full consolidation our sale TMT our call. did one of was was our year the Denver cash our the statement X cash by also conversion XX%. further percentage million from sale negatively was our and due flow The proceeds cash full assets to capital onetime Denver flow in the The spend associated of of capital of X and of not in on flow assets our proceeds of percentage Our spend section Denver by through

billion, we X.X billion. $X.XXX reduced our the and approximately to with our At $X revolver balance was a extended balance November times cash. leverage and amended ratio to sheet, Turning credit XXXX In the facility quarter a gross $XXX balance billion. our through year-end size from was debt approximately which closed covenant of also bank the $X.XX on million the quarter, basis billion revolving we of represented year-end, undrawn and $X

count and Our XXX.X count million was diluted fully QX, share fully average year shares average XXX.X weighted share weighted our million diluted was full shares.

share year were QX. repurchases price shares, a of approximately XXXX. million during December $XXX ASR will million average $XXX on full ASR an $XX.XX. million Our completed or We X X, be launched The

also that and we'll Board meeting at January We on XX; the have regularly a QX Board recommend approve scheduled a dividend. time,

XX% the In through terms we of of capital of the end capital increase to return to allocation high capital capital to our capacity. $XXX have additional of We our in-year shareholders plan and approximately return dividend, already buybacks. ASR XXXX with committed our million of return share XX% planned capital target annual

the on A&D sale our we X. In of $XXX terms closed December for M&A, million business of

net early December, We of Also the AMM. $XXX paid XX% million now expect additional from own acquire of proceeds transaction $XX an in the million. AMM of we to We approximately XX% business.

We will an, acquire EBITDA AMM to the remaining mechanic, earn performance. adjusted tied on based later no out, December than X% XXXX, of

growth of growth total growth all-in with results, growth X%. XX%. revenue X%. of Services revenue which growth financial year was All-in X%, was organic billion, acquisitive, was Resources X% and with including organic of revenue was represented X%. X% year negative X% organic all-in recurring organic, with CMS revenue revenue X%, XX%, all-in revenue of decline organic full Financial X%, growth revenue Transportation with of full to FX. XX%. was Moving revenue growth organic growth was growth X%, revenue $X.XXX

versus EPS with of XXX excluding million EBITDA net GAAP XX% XXX margin $XXX And impact. year. reported or normalized of XX% profits; was points points was increase XX.X%, with adjusted reported adjusted margin versus Adjusted basis up basis to now $X.XX. Turning was billion, $X.XX, of $X.XX $X.XXX expansion year. GAAP margin income expansion and prior EPS EBITDA FX a was prior

guidance of In to margin to XTH, growth revenue which billion $X.XX of Adjusted XXX EBITDA of XXXX X%, are recurring $X.XX to including November $X.XX organic X%. billion our of our X% EBITDA and with EPS of of we for; of with to growth to guidance X% revenue basis expansion provides terms This billion adjusted organic points provided call. reaffirming guidance, on billion adjusted $X.XX. we $X.XX $X.XX guidance

expect be profit progression. cadence the to XXXX in the line of of terms In with quarterly profitability, we progression

U.K. account Finally, with free billion Lance. we to cash back turn expect termination the in call of over low or will XXs U.S. that, conversion approximately $X.XX of plans. And cash and of I flow, our pension the taking

partnership, strong for their And his as Todd. say come years asked consistent has be over announced. And thank and his our as have complete And Thanks another better couldn't the together, have a but whole we through just personally on struck want results I delivered call to the momentum as I I transition XXXX first I to Todd X, we've We delivering Feb entering want thank to in that results of work, of colleagues for the I and partner. the previously for relationship we call firm, last our Todd world financial turn this been Okay. year partnership the up have class. last personally hard in but shareholders. the CFO three Q&A, and around earnings not XXXX. for customers will for before

So, thank you.

Lance. you, Thank

We're open for questions.

Our from of Bisbee with comes first [Operator Instructions] America. Bank Gary question

line is Your open.

fun to I'll you. add morning. my been Hey a ride. Yeah It's Todd, congratulations good

margin was of questions a some You ago, into was know, the but investment – forward maybe performance QX, pulling the excellent. some the quarter around discussion margins, there

you. then, give just cadence there? the Anything I a the what understand, some at moves negative to of if you like? lot of Thank terms was if investment there any the And looks wanted Todd, just So, segment and could us of out in stand color, level? explaining positive moves of

You want to…

we the Well, part guidance that years. on to we our do long-term guidance. I XXX three therefore, on to part returning our look delivering points basis we it's of throttle feel investments It's focus is something internally next delivery. just of the could that confident for long-term say I'd to five What against margin, our and of do margin do shareholders. in our And start.

year, look think And the FX-adjusted so if points we whole I I across XXX delivered basis margin.

that. We expect organic year. And to to invest do the next we over and same incrementally, above our look pipeline growth in

to add, want You Todd?

Gary, Financial revenue I put the schedule. very QX, probably you really a well, year-over-year a what at see saw but margin that, And little Ipreo Financial certainly Services. when the throughout consistently was of Yeah. Transport, bumpiness, a recurring. together in was that strong margin a about say strong in level, segment for benefited. really I What and bit do we really year-over-year lower And you year look flow would strong just year. it really the talked growth which actually at general, margin strong through. Ipreo is, Services I performed recall, recall,

couple good the actually segments So product that strong, the seen color pretty look I there. not year CMS, challenged But provides a think by on yes, of level. think a design bit been that quarters. of has bit year. I'm But encouraged of about. a within what we've at good the with timing Resources a CMS, then a performance little when we've I I at what of And as in some last margin follows headwinds over talked some QX, through. had but in

Todd. Thanks,

question. Next

with question Manav Patnaik Barclays. next from comes Our

Your is open. line

called non-recurring in at Resources. in side, I had I the of Good mid-single just X%. And on recurring then was moving could for us just walk but came hoping Yeah. X%. digits, down Thank you. you was think why I wondering, pieces was even the morning. some you through

So, context pieces? are in I those what are was you wondering year. expecting just of, next the moving What

Right.

X% into look guidance Okay. think, parts. forward that that. Resources a year, similar we've delivered laid into we'll year. is three I up I tale do think out. into the right this that to nicely we or really of as No, I of midpoint But And X% long-term has shaped And next it

parts, When two The third and growth internationally high And business as division on you've slight domestically on of North our of the has transition having well. – focused one analytics was led data this negative finally, third You've about know software, got those offsets single-digit therefore with downstream the upstream on was single-digits play high in events and an into subs. the each. of CERAWeek Agribusiness, got and a renewables, that America, whole you other get mid growth and you this like energy of power upstream. then a OPIS, chemicals,

I about is X% in upstream our of guidance; all stand net-net, One slightly activities. quarter-to-quarter. X% other I into mix think, albeit, good that next So the slightly it vary assets to business, us our leads about data that the resources storefront thing is -- year. But feel strongly really

So relationships and because would to market data and around with deep plus really primarily strong look and our the if those the energy that plus. the around help research we've customers feeds solid at we our the data forward analytics our software navigate marketplaces. coming them. XXXX. of got where because ourselves for too, challenges at grows respect same experts It that are CERAWeek just seeing that's like XX% be pipeline assets XX% nonrecurring our revenue with need up building same growing into are the and And you the at consulting It world to with

to to that's one? do want you -- Todd, So add that

feel is was Resources. for think really always the software specific not that think non-recurring timing when Non-recurring quarter, mean, see there year, non-recurring that other do okay a the there. The quarter inside And we're consulting performance, a some good Good we're backlog where add in we non-recurring year year. about significantly at. expect in in I to going always And we consulting good was another thing the X%. into called in the out I -- record-breaking at on analytics it investing And end is CERAWeek. I I'd story while the we Lance next script performs look well

It’s good.

Good. Thank you.

question. Next

Our next question Fargo. Wells with comes from Bill Warmington

line open. Your is

to and a Todd on morning, happy Good And run great congratulations everyone. trails.

the data question a data mentioned you lake, the lake you So, is for that on full.

wanted passing the it lake also the the in data you some is thoughts You products know how And remarks. plan commercialized us, to mentioned review if today? in for in I you commercialize being prepared on could And future? how to further your

Okay.

actually to So him I'll what to now. with going add I'm so say Yaacov parts is me, let of

new off, to the data commitment making and -- our it we data begin in products that to verticals was And we'd had across we the about all first throughout various So sure think a outing. XXXX by I get lake. in also said that those quarterly commercialization the the And the talked was about And into is of building calls. XXXX lake. year data our Board sets successful

success. great a So

discoverability just data for the single So to to internally gain we not to who access want our in across of our first the time That's people but also data entire for externally, product have location. firm valuable development. a the

our want We'd our or X,XXX globally As X,XXX of both be -- discover readily new And and key into commercial we customers, to therefore, data going like subject XXXX, our for discoverable, research data discover X,XXX that just to that to want we'd we be parts create on abroad. our various experts like be are the assets. matter packets domestically to sets data to them available we move information we incremental sets, marketplace our are able able our don't of growth see forward. to to as more and that experts our

commercial building about is model. that that Finally, I'd say this year

of an on you're that come in reporting types executive terms Yaacov, comments started. do to you are her hired that XXXX? passed of aspects for she he's lake already lead taken data lake, data So things to my excitement Sally working Yaacov offering the want and to there of you exciting the in who's over to add around Moore product and anything the to to responsibility, commercial the has recently

So, thank you, Lance.

of data a available externally Just in our points. few discoverable data use is About to-date. to XX% anybody, curated is internally, to all and lake

Although, to-date we internal XXXX. up only the lake March opened use data for to

the are lake various projects engaging way have data Although, the of during powered science data BAU, data data today we because with lake, the lake constructed and opportunities March people have with and for been wanted that is the this what to thing opens. to worldwide trained how engage that the year it's the The next businesses build, the it technology by mention, the platform going multi-tenant to the level way, a our data we allows us my partner us pathway our or engage with subject opens cetera. open data we way clients which engage a API the client together partners. access, to in of view, our this security of coalesce way constraints, our et the same ease for the opportunity same and and In new with discoverability, to I

that's unstructured as data and structured and XXXX our is structured time, In mostly all data. before ingest objective focused terms our on it structured technology, this question content a relevant. to any and research generally well graph. to end we there feature XXXX, in as in way I stop and a processes, of It which of make will a called up in our discoverable semi-structured issues data similar content point similar answer other key enterprise knowledge we to our discover engineering the connect to of -- is research through

Thanks good. Yaacov. that's No,

but that we is and technology ingestion into from investments lowering few pay-off XXX we post-merger, a quest as points we in -- last data It our from margin that of the some the lot the for commercially, to basis from of year, begin firm the on. handling some initiative years there's cost data hope for over there. coming XXX a also that to hope we come the well. XXXX, in expect that will the of efficiencies of strategic going will basis we've exciting that a start points see margin our And a in stack pay-off but So, made firm

Next question?

Jeff from comes question Baird. Meuler next Our with

open. line Your is

whatever you Thank And on it then, for transportation Is service Life CARFAX or Is Yeah. where with about at are they quarter? app, sign-ups you consumer how mover the are you. morning. needle particularly monetizing CARFAX strong a On delivered the measuring this and trending? Life, that are are? initiative? KPIs point? you recurring Good How terms myCARFAX in engagement Thank for this success of growth you. it the provider the

Jonathan, you grab that? to want Thanks.

I'll and the question. Sure. for ahead into. Thanks go dive

So in launched this terms in we before we of of a bolt-on in consumer but it, again, the in in app launched metrics, lot the of been XXXX. building program myCARFAX early the historical It's uptake that XXXX. formally

in around We to metrics the dealer So -- XXXX VHR vehicle our really primarily as were an our add-on, customer penetration. sell customers. it core

that. all feel progress the milestones had penetration. the been We we very, about hit have very rooftop there. metrics around So good around – the being made It’s internal hit really

a needle had revenue that. impact a XXXX. mover, in We not of huge terms In certainly

the some impact I But used-car UCL growth this six, expect saw from really then those XXXX. you'll for see a one core I that be long-term think seven we the build to which CARFAX in last in beginning CARFAX, years with we've to see of impact VHR seen engines have growth and impact Life, XXXX. driver really beyond. listings, to from in certainly XXXX starting

Jonathan. Thanks,

Next question?

with Our next question Kevin comes from Credit McVeigh Suisse.

open. is line Your

Great. real to Todd well. as congrats quick. Jonathan Thanks. Hey, Hey, and Todd

automotive mastermind. Just kind you've of done

term? longer-term swap growth informer model can clearly the given, of into it longer deal, the think way higher can about, A&D. portfolio, the mean organic growth do growth transitioning inform to there markets, to you're done Ipreo any sale position what as that end what you the the You've Is for

is the existing me, start. companies mean, I I think I'll so and addressed sure it are Lance jump you that I'm to positions. asset complementary acquire in. want our Well, we on support to to will key acquisitions

the the underlying Ipreo. assets, we can that's use also assets we what support our acquired so assets those that we but And see be acquired to And think with support more successful, you to businesses. can core I

offering, our synergistic data pricing see value loan Ipreo, bringing our additional municipal You to to bond with business.

very effective being on cross-selling You the a Ipreo of alternative FS lot account into managers see our space. the

the now okay, underlying our about the and and to look And AMM, information me, an Likewise, we mastermind to start dealer acquiring to positions a similarly, in so space have it are core gap our where we assets support building say, AMM can really that. using advantage And presence product. AMM. build is OEM filled really core new car and to enterprise use we competitive didn't in AMM, life we on in our at very complementary are and to market automotive portfolio, product support space. we that

So we've done that's to successfully. what me

I to think continue is what we'll do.

I I verticals, our data role And to bit each there's may that a the look you of processing at of cleaning, add the to you synergies at well. those as Resources, in and a look lake. If our plays verticals, financial Transportation, providing look around and where each you and them you just customers big the that three scaled markets at a use look decision-making. management look little to to at lot of Right. data at of in data relationship

as think full So we to and lake, our path. be delivery And had continuing leverage that and are ingestion. efficiency we want commercial, in data heavy our can ample from got assets as we've well that technology, down our gains our

is do experts has The second data. be that to to the we to we want thing want our company applied

on which data customers customers around with just issues experts get we key in. write with to So data they're the them three we basis, And are a engage able verticals our operate the -- to surround scaled research respect them have data want helping is application in have X,XXX a make into finally, to within they efficiencies decision that the science, environments really technology not organization lake, able the our subscription we the called and those as and math across with then the of our the synergies. sets of engine and growth data those those to to

an an customers when company and science energy and look research as markets, make data consulting products insights information So, you providing us get now ourselves happen albeit, company you managing and offering to help in transportation at financial which we decisions. be information, think the transportation, our markets financial energy inside as to of

think we'll cleaning the revenue managed got So, up to able we and basis XXX points company organic margin double-digit earnings growth information for you can X% as be X% our our expense to against maintain portfolio We've of managing we we've the X% the by to deliver growth room that, growth. expansion well. objectives, and

that So, because high to to very end and the our we're of guidance, shareholders. us dissatisfied and as the to operating X% our to respect opportunities given long-term but we've that be just contribute much guidance intact we'll it well guidance, perform to continue at allows got

Next question?

Our next with Andrew comes from JPMorgan. question Steinerman

line is open. Your

Ipreo organic rate Hi. share XXXX growth revenue within Could you the what is assumed the guide?

don't that. We do

it's performing we about think and double at it, digits. talked when double digit I been acquired we

Yes.

Next question?

Our next question Jeffrey SunTrust. comes from Andrew with

is line open. Your

the question. morning Thanks Hi. particular, a you auto the taking Lance, hope a for new in guys. I on made side Good the on in had business. little bit comment could elaborate of you

environment. present of than sort you're to flesh like opportunities. might think manage challenges SAAR help well-positioned mentioned would that bit? a out of manufacturers, I Could you just rather that, I you kind that you little more think through challenging feel

that was a So, comment. notable

of Okay. auto EVs, Well, to I into think management componentry transition by and development quite overall research makers these are car, complex. all AVs, the and the the connected the

the all ourselves those And environment processing term what that somebody we're playing so those decision-making, regulatory subscription for based favorably like into things emissions, are benchmarking, longer are finding, contracts. in and around data cleaning, demanding are

actual of don't in market, So, strong. see not at have substantive year-over-year auto the -- ups And a quarter recurring the anything our decline downs very was if in growth us. it's so XX%, X% the really the they really impacting can you and

with our spend. executive audience tough mastermind, us. for leaders in customers those media, challenges. is of would their a and so of our big car incentives an in terms CARFAX calling we're the and that, billions got they've cars registration hired for terms print-based terms very of and a twofold very incentive customers become master the to and advertising, we and piece. product is And second and minds, we're that's to help I it's thing our enterprise the markets, in seasoned that The sell in applying TV, building marketplace direct it lead one to One, audience of And they're our and registration to help marrying require data say plays tens incentives mastermind, incentives to well social world build ability

advertising there bit around a to the second right audiences well. The have the we building with gets play great that's their And footprint. is the and the that important the dealer as spends really and role down into of help also dealers marketplaces need

declines decision-making complexities the automotive, trying what that. feel the general, role to on buying them segment up at I to our wake service substantive do today, So, savings don't us both I customers in I these you of help of I is resources going and to anything, saying and the And to our If have concern cost them and look morning X% things down. the we market a in a that at growing guess, have navigate in auto in a versus and from is, is their be look a them. I'm own the to transportation

well feel our Company. complex challenged around I data insight make, customers' decision when Analytics So, helping in we're at insulated market,

Next question?

question from Jefferies. next with comes Our Mazari Hamzah

open. is line Your

question is Good luck overall as morning. in rates just around hard, well. Todd, portfolio. Best of My the retention

XXXX were you they XXs. Any rates in Thank opportunity retention I think back your in on across low portfolio? maybe you. as the look

that looks get our leads in can say of one it's tell revenue across firm you operate consistent. the you best XX%, the we that's improve would that. on the still pretty retention rate retaining and every that's the to But obviously but that best Well, business – customer to I it and try – seems I XX%

to a teams always that effort but that's in full-time been course, of their it by that so consistently up see move changing. and to the And slightly, don't has retention try low I XXs

Next question?

from with Kramm comes UBS. question next Alex Our

is open. line Your

good everyone. Hey, morning,

Todd come to Lance resources too. to I the wanted guess and Just back

plus when quarter, lumpy data this it's the historically, pretty comfortable the appreciate right, since of in that's kind You some here. of and with quarter-over-quarter, then but was a XXXX. think indicator. $XX very And million I leading growth look obviously $X But guys at plus importantly, I heard the guidance range year-over-year negative, lowest have Todd I soft sound think million ACV, I more it's mean, been I non-subscription you the

you're that actually adding that lower at subscription – So doesn't suggest a rate. suggest

is guidance? to issue? there a So so low Or timing your just, why is the relative ACV

I consistent – think been been ACV for the last three has years. pretty it's

XXXX. on that stability What focused very feel guided we've I we do for the really And to a X% consistently our that at see is it didn't consistently that our said on comfortable look of supports number within the the the a non-recurring path I big look we stable. it's right see in elevating period very at over you think performance we're now, within been X% think sort we know with we as business. will again, and step-up of time. the really – of is to plan but indicate. see that guided question when certainly, upward So is, we ACV. so a it clear We over-perform, in QX, it's range. the But something of range But deliver expectation acceleration. have we when ACV this don't that has And And certainly range we certainly,

larger fussed to at performance downstream, Maybe E&R. energy Good. price look now what the because And I with at can Yeah. at performance both We're acquisitions with battery in two and really add which I world leading I to chemicals, of I bit We're merger technology. around the storage, now, small We're look there. as never I OPIS, diversified plastics the look we've energy our in three and our sustainability. if transition since how – it, hydrogen, I've little can such it agribusiness, discussion solar leaders news relative so about a pricing in in around be small, chemicals. been that one bit topics, acquisition business go-to player

really there. You shortage that into financial food and support -- having story of understand customers. know them marketplace a climate Agribusiness. markets required worked with We which be a position understand of between the to that's the our And the and extension its we having to real we're will great We've and got ESG, there impact energy. on understanding our

last small of registry year, north environmental XX%. albeit Our grew

the carbon So of whole topic credits. voluntary

of it a I division. our of offset. North up the last go, demands at But and was I and interesting So revenue small look was around if were down storefront year that international is you're American data data and talking one-third that the

assets. are the international and those the merger time people But or year was lending go America are production. really North selling to understand the the They of look if efficiencies what gaining need, money customers operations They the downstream the in assets, need you If assets, that in was the benchmarking. at to you areas the growing. consolidating understand need flat their the before, assets, at buying markets. understand to to costs They and need and current

our time service. Our the Rushmore benchmarking year actually for grew first which service last is

Because -- I kind go, was our growth. is market can our I was data actual answer that it, the when X% support wake single-digits that mid and an really look growth the got and is revenue And lower to up down to So end impact down of at I you've flat X% if to story the even our X%? at at grow two-thirds of no. X% of to high

maybe at five to look at look your ago, you subscription So data when it sales the support the IHS around valuation. non-recurring you and really actually years and had to revenue

on building was I IHS if Now a Markit. valuation

of You XX% know And have we resources, know you to story. your your that's -- manage markets the build it X% and and your X%, off financial you how X% to upside costs. X% and Transportation X%

for invest growth. we You organic to know know how

innovating. we're know You

growth and science region. know analytics we're a which data adding You is

as therefore I look to I diversified markets is be are less impact up And And how for the and as auto or comfortable I going our million -- so, I wake set? the there that resources, quite -- don't running. or is guidance was price decision-making to day? is to than energy a and operating. barrels look is and asking going businesses in we're about And kind more the question the of that fourth at you're reaffirm guess, our the it go And impact whether down at our across up data asking and this ask year the CEO. I I autos or up XXX or it's down?

question? Next

question Silber comes with BMO Capital from Jeff Markets. Our next

is line Your open.

Thanks so much.

to basis? Just back mentioned you to non-recurring of know you out quarter to there in about can year. quarter. X% I else got easy XXXX. Todd, in still kind anything But Thanks. point a you next I comps yet in to timing wanted year the Is performance of to confirming go would quarterly growth the fourth organic the into growth, know organic on that get cadence for some anything be you're your had think, X% great? X% the resources that guidance the the the we need will

aware I is don't to think there's QX a with be anything. I just have big quarter events. you mean,

anything. be I you you'll you'll see mean, of quarterly, going just non-recurring, probably -- enough. relative the that's at bumpiness that good close revenue think to I bit trends, little so there's year think if proportion I last be look the was as And in of as delivered but a always

Thanks Todd. Thanks.

question. Next

Stifel. from with question comes next Rosenbaum Shlomo Our

open. line Your is

here. questions two areas. for just Hey, on Hi. Thank squeezing over you me in

area, could give And are of the if down? product-specific the just can seems to you that in of have right growth comment And are in you Resources the being in solutions, made? investments they now which some also or trended the they on data kind Just area? examples lake then

and you then can do want to I Jonathan, start add?

Sure.

talk investments maybe one two natural and resources. call about I'll and kick-off I'll So, the in or energy And out. then

been mention Studio, few our we've the First, Lance quarters. platform Energy data. working for And did it's of on is something last all our which underlying

a of data. of data analyzing lake. will way state-of-the-art and platform leveraging delivering, launch our whole a brand-new will visualizing end that be the core be We There And kind to energy of year. expect this

ways puts in leverage it both underlying a to in very clients our competitive data. us for strong think position BXB new I very, competitors

new launching our of kind that singles past pricing, we've pricing seen around year year. it's this launch products some our lot we in QX, last providing and agriculture lots taking market doubles of core of around that's of business So, launched, models In launched thing successful world throughout also we've are adding been we had a is interesting, the the the and that intelligence, And acquisition have around then a year, and in energy our pricing model, there new quarter. benchmarks. of launching the that applying business end with data. Actually

to lots solutions? year that of Lance, of you the want add about so singles And up impactful. talk really throughout kind something to

BP's the potential. distribution Yeah. exciting just Arya, a energy that who of to strategy cross it say one -- the of team. I order the would always down, together Hydrogen was the what firm participants are Atul what more under together future know markets, it's market, tech with new for and market a the the for might revenue. sources discussions grid; starts types power the of you energy hydrogen. are financial I at look is pulled Take example and the And of non-recurring where energy call all buzzwords. to into those automotive. here we things lot And it there. and ex-Head future has He's contribution doing areas marketplaces, we're of understand you team pulled a around the In across are take energy, clean But big transition. if taken place

recurring the around or of So, the study. in or the back first do comes $X even report the a $X of might million year, $X million that million. may services we cross-industry add But out that subscription

And sustainability. We around and on market across group plastics so that formed we hydrogen. a within -- have going

the We sea commodities extending to ore. from project. iron coal that and crude We're at have to

initiatives our with where experts help the really need matter our we're are really, together marketplace interesting subject develop cross-market expertise formal to to to need new come affecting that's working good in very And to activity the customers and in our studies. and these make applying teams customers customers products. our data-led all So, decision at the

see you'll more transition, into revenue growth terms around and us of extensions so, in And that climate. energy cleantech, I the say then of would

question? Next

from comes Goldman question with Sachs. Tong next Our George

open. is line Your

you it performance? into the decline continue? and the also non-recurring Good decline Services, Todd, Within the ahead. organic add if you Thanks. I wishes also And to on morning. thanks revenue behind my Financial Hi. in drill should best quarter. want experienced XX% Ipreo factors Can touch a

continue. wouldn't relatively mean are it small. expect I I the to numbers

So George? the you if the again I anything And a can think out but think is or million on I wouldn't the question see I ups you year-over-year. and sequentially, specific $X And say few concern. you'll but percent call seems big, that then look downs, Ipreo, decline any

performance. the Just

And And throughout that. story. shared slow forward and And top and expect I line, cost, very level the Lance has think to performed very, We've to be we perspective, performing performed the and private we well. a it very talked was the good about start very It's the off the about this to We been high been performer at strong. from effective double-digit global at going I continue well. mean corporate talked that markets synergy very got also well a it in capital are I year. but mean deliver it QX. it would services. very earlier. a Ipreo to particularly particular But a services very expect strong, in good growth, the markets around

Todd. Thanks,

question? Next

Sabadra comes from question Deutsche Ashish Bank. next with Our

open. is line Your

is with pretty the And there portfolio growth strategic Thanks do in more but rest think for the My businesses, my there it was fit question about the digit, design. rationalization? of Thanks. how stable for question. good the think mid-single the you taking now? opportunity seen as We've you product on about

You want that? to start with

Sorry.

Todd the into an last be fit strong good and And as next I'll why asset. of we hit to it’s businesses, strong performer -- It's very of year, it's good I growing quarters profile a little royalty-bearing it It performance stable given rest interesting the the excel. as then was CMS, talk be. product. different Well, observation performance line. expect a than is in financially one. few we our going couple of has of a it portfolio. nature the terms in Jonathan, kind of to the mean the primarily look we our don't been It last years delivering firstly has again other up a your business But particularly become with think start, end I you up bit strong here. of

However, serve it serve does serve energy, the manufacturing the in customers automotive, we businesses. customers we in large rather

to to see No. see see add? we customer an want the particularly certainly on forward. So, Todd, you going synergies lands anything opportunity

Okay.

good. That's No.

Thank you.

Next question?

with question comes Capital from Our RBC Weber next Seth Markets.

Your line is open.

Hey for JV something say Thanks that good should if to and I I'm there you -- accelerate the we guys. keeping I expect market? Lance, -- thinking about call to your China? think, you your JVs, the see or what just Should in color any heard anything deals going. Thanks. expect morning business how wondering, there's update. in China remarks, you're prepared more there, about more we

North Well JVs within or It's across we've now, percentage definitely we but faster Okay. China term a three partnerships the on growing across several our Europe have than -- and terms. firm America, absolute verticals.

JV formed we markets. got Financial Services where the absolute a well amongst in performance JV course, largest are out particular more the building That full businesses leverage particular markets our debt book Of world. for still we Ipreo into Chinese building our strong syndicate bodes and which the expertise of to the developed book in

to we X% for do good growth organic X% that we see services. will some continued have financial the growth support targets So,

question? Next

comes Fitzgerald. question Foresi next Our from Joseph with Cantor

Your line is open.

from compared off years? coming sensitive to see Chang growth factors maybe Steve for the We do any And my the wondering how is for -- do now also, this Joe. verticals? prior Thank is just of you were you you. business Hi, question. Thanks think for any taking economically swing

divisions, think yet. or that for not fully undeveloped opportunities see growth got -- Yes, our I I in we've each of we are have strong developed

bit already solutions into And resources. car, of is call it's long-term you in to valuations, that Services, connected analytics Financial space middle it's one financial pricing about CARFAX talked get Mastermind, into biggest coming reporting transparency increased the for the from positioned When natural there. buying participants, from the So, about a not just energy that alternative about the science enterprise, data Life And And the transportation, marketplace. office, where, part and the markets. well around and I'd and about it's I are from and LPs of data finally, growing rapidly GPs, some which we're is I've providing see us energy but I the climate, in associations talked back for about starting the growth market and the the emissions science around and still transition, for analytics. bodies product There come regulatory compliance. then say a also

managers I And are see for I'd so finally, us ownership And a the of total there. cost -- asset their say cost role struggling the of then great with infrastructure.

post-XXXX, a provide growth cost the buy solutions, has for and in So, versus we'd place banks of build compliance the their to that the systems see corporate order asset managers shifted in ourselves and data tech and management, favorable to companies of actions, management like a around terms the risk, support we like footprint. tools

we're think processing for standards natural providing of our very the language dissemination data So, and efficiencies also search areas is specs capabilities of growth customers. design CMS, our one there and lake On and I product around leveraging the well-positioned.

into products to on lot tech to product of and growth footprint, time have areas, are all customer focus on. our current leveraging globally. develop a our our So, our teams both, those out of new figuring strategically new how our in we divisions, spending And footprint,

question. Next

next question Nicholas comes Blair. William Our with from Andrew

open. is line Your

in questions. Hi. Good you Ipreo XXXX. hoping at In was for the my major taking morning. to I could growth speak initiatives past. Thanks

doing products I of commentary focus around think Thank you other some about this Ipreo in you you. end new how relatedly, there's, cyclicality provide about I'm respect there's areas with specifically? about of terms year think work any And could additional market if investment? valuation. in investing talked to if But you've wondering any when then,

the there in of obviously, Well, security is, Right. cyclicality issuance. terms marketplace the around

that. we pretty of of look we terms actually has been budget So, that's municipals, average into equity private some long-term around, for tools years. cycle when and coming growth in number take course, we markets, a is And issuance low reporting real at steady. the We again, and of what into of But -- debt the model amount the to the markets. account deals we pretty in take us

call, in attributes of and markets the in alone of their see us, investments. globally, LPs in an expensive new we year. as of understanding organize and area -- said terms customers private LPs, that to tools themselves GPs, added we to compliance providing I of help And to growth for this the report As XXX

iLEVEL, synergies gain data office is products middle I tool really just well-positioned which about, management, looking of So, reporting between And Andrew we're there. Eisen. and products to our other now talked put -- We're in of WSO those under tools. leveraged terms for which building the the we reporting back the he's loan all market, and is

of and marketplace. Level I future put Eye for platforms sold our off the with two So, of one BlackRock growth. product the plays which alternative powerful bringing eFront, together alternative two which that And piece a acquisition most is alternatives those great of I recently is of data major in opportunity really Ipreo is the was the markets important in probably management that in the think terms revenue. building is

question. Next

Canaccord. with comes from question next Joseph Our Vafi

line Your open. is

guys. Hi,

side. related that from some now of in margin just investment delivery could remind margin And terms that mix new business? maybe the on today wondering, then potential could where on delivery margin to we a spend go? what the where of secondly, incremental of lower on just question Just the on products versus kind potential existing you Thanks. cost of geographies are kind if I in maybe us resource was

Okay.

location about in total cost, overall of our staff have our in terms We living. cost cost of health lowest XX% of cost benefits

Raleigh,. and of New And it's and cost we XX% have large of in Manchester, of We teams then, centers York in number course still and Calgary another probably have kind whether London advantageous our a Dallas. places that. Houston like nearshore

are Of more expensive. a course, lot those

of over that period see manage to and costs. and opportunity our allow five salaries those do and us the our there's ample year we course efficiencies benefits growth three, have a for So to two, us attrition on to fixed

be through spending around become learning the with that intensive. is ingestion we which Yaacov tech second that that a less actually gained The other efficient, fair people you are efficiencies to can technology alluded amount identifying we time one think to, more on have And is using piece data machine technologists on opportunities. tools benefits of that those

five-year margin, XX% the points, get think basis I which we is XX%, So to target. until a XXX

I think leads right to we've amount X% growth it also got margin investment that and the ample X% our opportunities to to growth. appropriate support our would of expansion deliver add organic

few think – of I be I the we're for to part next and on deliver strategy So able we're oiled think our that in that consistently a will well one years.

question? Next

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

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

at on your In -- will appreciate year be and website webcast our the one can Thank and be interest Thank time. for you we addition, www.ihsmarkit.com. you. archived

you. Thank

Ladies conference for and Thank call. gentlemen, participating. this you today's concludes

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