IHS Markit (INFO) 24 Mar 202020 Q1 Earnings call transcript

Ladies and gentlemen, thank you for standing by and welcome to the IHS Markit First Quarter 2020 Earnings Conference Call. At this time, all participant lines are in a listen-only mode. [Operator Instructions] Please be advised that today's conference is being recorded. [Operator Instructions] I would now like to hand the conference over to your speaker today, Eric Boyer, Senior Vice President of Investor Relations. Thank you. sir. ahead, go Please

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

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

of outlook, or conference this is webcast reminder, call, to IHS is Markit part, that recorded in our may actual this differ Any contain statements a can IHS discussion As and conference This rebroadcast materially the could IHS filings SEC from Markit the the and especially of information, be results with Factors risks IHS are call the consent of on and cause of to Markit's prior expectations events that copyrighted prohibited. forward-looking are in written whole being and Markit. without uncertainties. found website. property about and is expected future subject

Financial and our be After and CEO; available questions. prepared remarks, Lance Officer will Chief take and Gear, EVP Uggla, Jonathan Chairman to your

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

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

our will attention posted want started, our get your IR be supplemental which on I we website, Before we to referencing today. direct slides to

growth the the economic double-digit this investment oil more strong providing in with my the dynamics coming the even our year a times unprecedented for markets pandemic, as while and due shareholders. years. and and unparalleled We've both of markets are within making in impact such and supply In in to in analyzed to developed earnings challenges. COVID-XX of turmoil, actions demand deliver to and taking decisive living the committed we've to human you, room times over plan to transparency change financial continued certainly and maintaining and $XXs cost I'm We're our these, and colleagues all

low changing our annual parts plus on our that culture have within our liquidity, more diversification model even and balance must is Our markets are fortunate of our but innovate renewal services, end-markets, subscriptions customers, extremely products strong will revenue got part large strong and challenged we've drive that cash due with resilient. concentration be be and whole, to end-markets conversion, rapidly profit to business will revenue sheet, honed high others, we're a and and in than with This rates and across We've products continue flow efficiencies, XX% and challenging environments. a a excellent multi-year light across recurring in CapEx revenue. model to firm-wide

more through and virtual challenging and home these opportunity and times been using as from been conducting We're that. customers working also investing be learned mean impact Now to XX,XXX quickly ensuring that as management to teams support we've infrastructure we've tested I our IT reviews needed, and with the by our and and on on in, all remotely, in APAC, situation, even an with COVID-XX certainly business calls we visible webinars. offices manage our that early could all, how employees

help us of benefit customers these these have that more hear to uncertainty. times to through our them even in need We the environments, from

there the managing about essential the current activities. for make models good challenging adjusting we with customers market X,XXX feel opportunities single our to are these over sure experts, developing we're of them, reaching and every global times them to I support thousands we're are good these and them Overall, about conditions. day and of I Our our customers feel our we're changing conditions through during how times. business helping complexity our of how equally model, using

going go how we're go then growth over over is and to plan we've the QX on multi-year I'll Now results, our plan achieve that suggested. to going Jonathan earnings to

Jonathan. to you, Over

increase an $X.XX, XX% Great. and growth an EBITDA $XXX margin for increase were of Thank normalized the income growth you, $X.XX, results X%. million a included AVS revenue It the of $X.XX very, which EPS adjusted is net of and Lance. of total and a billion, QX of X% for And or normalized very delivered of adjusted $XXX EPS $X.XX million, delivered divestiture of divestiture. indeed of organic XX.X%. GAAP is strong. which we of X%, We AVS of revenue

QX was primarily driven by growth This organic in comp X% revenue, recurring of non-recurring organic financial our X%. year-on-year non-recurring included Regarding X% revenue and of organic of growth services. decline strong decline tough in a

in Services recurring X% quarter. three drove of segments growth Financial strong segment to X%, on performance; sub Moving organic our the performances. delivered All segment including

from Transportation non-recurring, Our and saw the lines. delivered recurring included operational of of one-time decline business. expected a driven CARFAX excellent growth business our quarter, by the automotiveMastermind XX% exceptional an of auto in decline in this growth organic in segment our We revenue metrics, X% X% and particular in

non-recurring broken and segment X% as Resources growth. organic growth, X% X% is which down recurring delivered growth Our

Our million, or trailing $X million ACV increased remained X%. organic our XX-month and ACV QX $XX by organic up

X% non-recurring. and XX% CMS segment total recurring X% growth growth, a including in Our delivered

RootMetrics total impressive organic year normalized customer an prior CMS loss Our X%. was from growth

Turning or prior to million, for margins, normalized up and now divestiture. AVS adjusted million versus EBITDA $XXX was year profits which is X% $XX

line XX.X%, gain for AVS which our improvement EPS $X.XX per in XX EBITDA bips. the was were up which was excludes is diluted EPS adjusted sale expectations. is also with the of or margins $XXX $X.XX Adjusted share, adjusted the one-time XX% The on Segment divestiture. of margin a million. Our normalized

flow cash $XXX XX%. free rate GAAP was QX million. adjusted our rate was tax tax Our X% and was

QX due seasonally typical, is payments. low cash As was bonus to

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

reminder, QX just one-time impacted we conversion our XX-month Now a rates XXXX. that had the of payments by trailing were tax in

$X.X sheet, times ending QX in policy. position. quarter billion represented a balance ratio was and million was the our gross balance leverage our great revolver undrawn approximately our the a We line a is closed which $XXX on with $XXX with liquidity to million, Turning basis, of balance bank capital X.X QX covenant of and and cash approximately represents

$XXX share average million million weighted count million ASR. we quarter Our shares QX completing of shares, our repurchased including XXX the in was diluted $XXX

also We launched $XXX a on March X. ASR million

it you. pass to I'll Lance, now back And

usual predict from COVID-XX and wider range may all mute the impact our business length long year the disruption based the to of with of impacts Maybe and XXXX Jonathan. assumptions in Thanks, a onto over uncertainty, and for account the go three are going of certainty and that we upon make To Okay. outcomes can are scenarios on for any we the out the providing laid how last. than this economic We deep remainder there. that these drivers market-specific cannot macroeconomic are supplement.

revenue all as and of pressure. shock business we a We're allow prices spending oil shut general impacting a our near-term decision-making, new Resources also will worst and The taking case communities scenarios, course auto CapEx slowdown In earnings even consumer down. lower impacting significantly cost reality our to customers slowdown, Upstream an double-digit actions business, face us three growth, economic deliver of that under scenario. of to our

what recovery; scenario, coming $XX's, second QX, is our average lower driving the then recovery Brent the And QX and that's OPEC have in first this settle our plus prices rebound an our recovery to you QX. and requires in see the upper scenario, demand QX agreement year-end the terms guidance, $XX's volatility upper buying world our oil we'd would our continued Under by in Now and and recovery to equity continue we'd a of driving impacted would is and in used quickly. businesses an in to in car this scenario, expect new rise now pricing the valuation then for expect the half, services, low see which end begin. QX the issuances in of to we'd of to would

Okay, let's second at the look scenario.

which auto sales year of to the financial an of recovery closed scenario QX been growth new be delayed the equity throughout in markets would has uncertain, is of remain moves drives services volatility a Second most lead price Oil agreement end average QX; by demand until the shutdown mid-$XX's, the for U-shaped year. of solutions, plus half. the followed issuance to in with would the OPEC for new slow Brent second recovery continued demand

Now the and that in Gives the a call recovery team expected global no I are third scenario, with XXXX XXXX. worst-case with recovery longer scenario. recession in my begins which

agreement our and both, industry, of industry is through any here personally returning stay any new OPEC no XXXX. is a used throughout the year, profit financial believe until will This really customers continued markets has challenged sales conditions well. price I of recession auto modeled Now, in XXXX, a worst-case of low are there and impacted with disintegrated, A as we've very plus into $XX's sign sustained XXXX the cars pressure Brent scenario. normal throughout an without this in XXXX. average under that

able there's scenario. view to you to you scenario update portion we'll our my now costs financial give XXXX to regardless put robust entice these our million our great we story prudently, that case process those team many you we'll quarter IHS revenue XXXX scenario working deliver mind our normal levels. with, and already back we'll But more cost the in QX have which my going are and that deliver we've of downside be costs. of modeling can merger modeled we've as to colleagues worst base reductions $XXX Many to I'll forward. place Markit levers is in providing you you in hard strong this off a cost this provide minimum and managed that to since you order we QX against a $XX for and bring all plan. of protection, be outcome, model We're of we're the Now profitability and also each we it, with the those able globally measures assumptions are that of some that to transparency permanent updating variable very efforts recovery every recovers exercises; going examples regularly. you million and can costs costs, the in worst-case to and and going cost been know, revenue recovery, as of than There against making as keep be in as have call to and our

for the And are Board, optimizing my and on cuts reductions, myself, the projects, hiring, night, a a is in next place. course approved will equally April, a Cash meeting that also revenue, natural curtailed, both reduction. bonuses contractor in my of Last set facilities replacement entertainment, expenses top we're XXX levers, for spend, costs those people. executive new Autos business within also with adjust non-critical be a Board optimized. and the freeze Board workforce salary lease Now, especially are in purchase being and negotiations, of reduction travel also considering variable and

providing reductions to these first the now No great were addition whopping recovery. in alternatives one us our product, in performance are a auto which allowing segments earnings XX% our each cost a really environment, double-digit In growth cut the investing team investments investments around had Mastermind enterprise business, have at. been of Mastermind in levels our challenging we and maintain at every to quarter,

this Markit of will XXXX Our and forward to of environment, beyond. regardless initiatives as those around build globally climate, climate services prepared into and going the look and be IHS away not current are we challenges

will and efficiencies team our that working bring asset industry a asset the still new technology management operations finally, on fully invested. then will in management And be to platform

offer investing been be people transform working shape, customers and to that in to are and our to lakes, our revenue we've teams to exciting technology data services underway taken new from Next, in globally the already stack, and our able pipeline.

our carry fully. Our on investment transformation to will cloud the in

see XXXX and the plans as presented each three is as well within scenarios, returning you the of as growth. to us in for the All of guidance this XXXX in provided

with you the how gain may dealing on plan we're can different me color equally providing of each the understand and you some uncertainty that provide we're you. in impact the our segments confidence let so Now, current levers

average industry price pressure to is supply, We global our resources. of the from an scenarios with XXXX oil further roughly start global in the increasing are reduction of of and disruption Let's under XX% largest demand. With going XX% XXXX. in CapEx assume know

resources upstream upstream with remember our revenue. is business cut XX% will bulk to America, Now, the now only of North this of impact the business, and our

upstream revenue broken data, insights our Remember, businesses. is into and analytics our parts; three

period. stronger large, negative but national this a to downturn, North by and our environment. We're of our our analysis; be forecast, time; companies. they're help We we be to insights they E&P and super on small followed up within oil expect very among America, insight upstream independents. on on with decision-making held offerings, provide market, to better where the still data includes our customers well them are their the analytics, data has reside calling of business and There market and information tough small analytics expect through manage them up us our insights million $XXX corporations, even and are to and financial business this mid-sized, mostly most difficult during business last revenue and this the largest are scenarios make impact The drawing the time and independent small as companies, pressure governments well the independents is majors, our only diversified this going through to all

-- Moving expect the produce to chemicals, our OPIS of and downstream business; renewables, base power, is business to these our mostly we and as agriculture fact. continue customers, very diversified well resources customer businesses non-E&P growth our gas, in and to revenue regular diversified now very XX%

But to coming so Now, much entered company, as company the under than in we're quarters. better going remain the is the XXXX. E&P industry pressure that positioned a

XX% in XX% XX%, in today. cancellations Here last company XXXX. operating our are of were decline downstream only versus revenue revenue is reasons; data the now more are said, growing led International as total lower business, our is then. of the which back they much the back resources in only as Upstream balanced, large our are businesses XX% some fast are the time U.S. mainly independents I

got analytics investments operating through Our team's and help much the better us. made due we're with to all support before, to they've this post-merger systems and playbook data the we've been in

we growth the for this, one-time -- expect adjusted to all cancellation positive Given XXXX. be segment's digits low-single of to events digits, organic our negative low-single events resources the in

to at XX the Okay, want we've in results level that delivered, absolutely very quarters. Transportation. double-digit delivering QX, for revenue organic really XX high I stellar the let's the growth team performing which with go to and Included they a was congratulate past in been of and

in this Transportation experience scenarios. business our headwinds in current the our Now, environment, will and is discussed

home with and The perform three now for to during impact should saw dealerships and growth know be As digits. And our regions customers. positive dealerships in pressure around significantly easy is downturn. the their negative how is shutdown dealer on are not wide beginning will policies between cyclical consumers unprecedented the a virus, dynamic the representative deal the range out world we're and traffic of to not digits to and it's enact segment decline is to We cars. America. stay that to profit mid-single believe to short-term slow recovery. industry at buying North do We of The seeing put China the would this continue tremendous to period our this scenarios now low-single tied the an outcomes normal during in this

expect Let's performed organic is what We mid-single Financial three the have product exceptionally QX in Services, the move diversification to digits team. growth also penetration, very just market now done a and which strong fueled and assuming. innovation, years, over well here in by and we're past

and are due recurring so in stable the products going these and must you're of volatile revenue more have environments. across high So This information. to revenue all is even haves these to

quarters. potential Services, much full with demand needed in in the corporate actions, are in very valuations growth corporate all demand, coming Our

the a and processing has of through volatility of see which derivatives and segment lower coming secondary are markets is and challenging is it tailwinds sizes loan some course, the derivative processing Processing, the ticket to due there the course higher quarters. two-thirds of been and the volumes but and are Now, volumes we'll

going due of some the business. though, software cycles, longer sales volumes lower expect also in It's We within to solutions. weakness some Issuer Services to be

are We no million municipals, improvements our half in see revenue. for expect $XX best equities, In with second to XXXX. scenario, QX our we our through improvement to scenarios in our early some annual combined lower of volumes which start worst-case about and bonds through variable the

great insights for see challenging CMS pandemic. to product is within we work knowledge this in We on country finally as us coming health sciences the where supporting and COVID-XX offerings, offerings Now, and see for the time, and challenges and here economic to CMS over demand it's for due steady our demand our across provide hard called team risk XXX paying continued off. design [ph] through our And but advice being well countries. into is our

All in changing in CMS expect a support of in world our the customers and need be growth rapidly organic to single low digits. increased we

going to call guidance. XXXX turn to provide back will I'm the Now, the who Jonathan, details on

Thank great. Lance. That's you,

million Now relative reminder, Again, reminder, million EPS by Approximately the guidance, will to remaining of events our to a CERAWeek we due health cancellations original cancellation previously revenue COVID-XX announced our cancellation impact segment [ph] to the a million our Resources QX The the of revenue to the by and of TPM and adjusted these other of to due the impact due negatively as $X.XX. our and concerns. $XX $XX the Transportation events. relates cancellation relates Maritime to $XX as CHEMWeek events. segment

$XX the for on a adjusted foreign of revenue year, We approximately since have negative currency change also FX rates exchange million. of causing impact in the the beginning

of quarters. price few we due evolve to account XXXX, next months the the scenarios virus, how developed over assumptions and In the situations into take terms three uncertainty of have oil, as different stated, and Lance economic to our forward for the view on

$X.XX growth billion three to $X.XX $X.XXX EPS detail of the the X% adjusted billion; of the following billion $X.XX. EBITDA ranges; normalized $X.XX between of X% billion; for of $X.XXX of events; schedules to with organic the impact supplemental and revenue QX adjusted scenarios Our and to

As Lance mentioned, lower end to of this the we would these ranges direct time. your at estimate

are in these costs. recovers costs forward of return XXXX portion the our return executing We process of in go XXXX million as of XXXX. Now actions, cost $XX level to terms The and in variable reductions. permanent salaries expect of in of approximately costs be $XXX revenue businesses normal we and will approximately Auto do to million

with XX% guidance approximately below All conditions. costs except stock-based of conversion EBITDA our prior delays reduction capital are guidance cash expect items for to we efforts working due market unchanged due to one-time Finally, and adjusted comp. cost from

Our original year higher expense stock-based expect a $XXX guidance U.K. in one-time expense will our of million full National full to guidance than impact range expense our call exercises. a now for from on This comp to option comp our year comp represents to GAAP $XXX stock-based $XX XXXX million. level. be approximately employer stock-based million original higher the in due taxes XXXX XXXX increase expenses expense and Insurance We not

given maintaining plan to do and share flexibility. In levels conditions, current buybacks high terms focused We our of capital liquidity pause allocation, under capital maximize to of and on we credit the our bank market are plan facility. structure capacity

a ladder balance However, a in QX paid and maturity we a the diversified and and healthy rating, debt well-positioned strong as maintain continue planned. dividend sheet, We very group. strong initiated bank investor-grade cash will

in still yet While that growth. solid model external negative challenges, we risk impacts do a the this there the absorb deliver will can have environment, from current earnings

you. back the call turn with Lance, that And to I'll

Jonathan. Okay. Thanks,

against of actions As our update slide and to to years, anchor guidance not growth the on growth cost We're to longer-term cost conditions but XXXX we return our and double-digits in forward the range our those our to of would our expect you of organic revenue formal in cutting we'll regardless providing coming growth, we double-digit X%, upon revenue cost quarters. unfolds progress our EPS adjusted scenarios scenarios. scenario the and for our within as through XXXX move each X% based to actions end which of earnings our 'XX are year, layout, markets supplemental going actions, our with and

into my shareholders, tirelessly of uncertain continue support our dynamics our communities serve of all who you, unparalleled this colleagues against and in one, and within finally, update thank the progress 'XX two, be want and needed my basis. worst to our three, thank plan and and I and quarterly customers. world you you any show to to a commitment on to times want our changing case manage been against for around to rapidly those and give working to your of our XXXX level transparency my the these to will commitment adjustments And to I you scenario, multi-year local scenario markets, continue during project Now, have our

ready with for Now, operator, we're questions. that,

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

Your open. line is

team. Lance a of appreciate And like all giving. companies lot morning. than lot work, that's of a it's good more I Hi, lot it. color, thanks and for feel are taken the Obviously, a I appreciate it. we so

scenarios, rapidly how and in level persists worst coming in the dramatically have how bounce case a frankly mid your for quickly out XX that high of the the single-digits are Given revenue if things to able around especially what's days, particular, the this just and being to to so recession back while? changed things last confidence changing

Right.

them you at I've if guess, have the with worked look numbers, how team. I the So to

recovery to response also early forward. cost protection, of sure and protects that looking scenario that us that wanted but can us some our with our returns up sets of protect is of variable do I very indefinitely first well nature is worst thing the The decisive given for the those make then the and through team case us is nature

have X% with me linings able difficult on we're initiatives on in recovery say about periods. it some I'd depends lowest on to growth also revenue some will you is that chance services And the some time That the probabilities the existing want my depend new probability demands to in the and is, are view on my silver of scenario. scenario. scenario of but a that that's one, that deliver that our place my If organic XX% is two, scenarios ask one three, that

year maximum say scenario a has XX% going of a put that of XX%. probability the our scenario. on let's with recovery I'd on So, or XX% it probably similar end the XX% two that a also to into

really is to focus worst more all scenario, enough so me us therefore that which our what XX% do on at case protect than believe And really a the through level made confidence I environments I'm shareholders' really looking the the what-ifs. terms my at that a on in put fears of the the with And team. to modeling wanted about to lot I today of table out eliminate

So when share we each this come back with XXXX. I'll to level I base total on manage those I'll next but quarter we're you give also be And start tracking through the update we'll great with color, Gary, well-positioned impacts in us will scenarios. year, to you how of QX, revenue and think costs a that against and those

Next question?

Warmington Our with Fargo. next Wells from question Bill comes

Your line is open.

I are -- everyone. you to Hello, how wanted doing?

going Good. your to to so We're question. each who tough is all give on we're a hand take see signal virtual other to having

there It be it's associated pretty was would -- on think know. to these and you stigma But days. away. bark give the that a I with dog much used home I for working was the normal new and it

So detail scenario the around wanted say, appreciate the to also I I analysis.

in QX? And scenarios? resources very the unfold in think have wanted way maybe assumptions guidance. ask constructive going out how around the finished you you to up you comments how where to different ACV and the ACV repeat the to that's that's I -- about could lay helpful think the I and around that

Jonathan. leadership on my Adam, here all got I've Brian, team Well, Okay. and virtually Edouard,

So question who's to I'll up his directly. answer he models pass Brian can worked Brian? that that and

Can you hear me?

Yes.

Hey Bill.

it but yes, trailing data the really we that it mean, Data by segments taken really the and I Business we've see just model [indiscernible]. for it We've So the just -- little, we are a segment. mostly ACV, see we only customer. drilled

our And drilling really on segment focused of we're customer base. the so,

that projections a towards which -- But on is, that We're lot in downstream business earlier, So growing future sales more our is high-single the thing strength our the the as a said Lance down we've new now. saying with segment. our seeing coupled digits. businesses early nice lot of diversified still into are taken

Brian. add Good. to Thanks, you that? to Jonathan, wanted

going was the Yes, I to Bill. give numbers, you

QX I organic mentioned, X%. by million the increased So or ACV million organic up and $XX is the trailing as ACV XX-month $X

Thanks, Jonathan.

Next questions?

Jeff question Meuler Baird. Our from next comes with

Your line is open.

Yes. Thank hi, you. good -- morning. I just

the guess want are in just you that implying confirm that I lines could the want gave Transport year within And the in I'm we for make then, figures you us, that on full to QX, strong right? saw numbers different the would by including, QX QX growth the Well, the sure Just Autos Transport to are give or meaning total, outlook just you figures in color the something? outlook any us be product Thanks. understanding that appreciated? through

Okay.

segment. are of full for Automotive numbers Maritime the So bit have a [ph] color on and the and year the I and Edouard Tavernier on he'll give us

you, you, for the Thank Lance. question. Thank you. Jeff, thank Great,

in on downturn. seeing first-hand Canada, retail. U.S. I terms of are to not worked cyclical what color, business normal impact of retailers shutting this, as across Lance And is we communities would historically, our automotive the But a we said resilient call we've So said, down downturns. as and as many the with is cyclical

unprecedented shutting So no are home know, an hit entire our where dealer hurting, And consumer partners In mandates communities longer sell to number able issuing or increasing demand states vehicles. we stay are down. as are dealers may be these by shock. that you of are conditions, an they're seeing at

their seen a of had decline have to have temporarily. Others revenues. in Some dramatic close them

automotive the are forward showed, North well-positioned forward, earnings incredibly look and with we support partnership dealers. going QX our to to as So, we long-term industry American expanding our

is cases normal cancellations, business short-term, in dealer increased of business of levels business, longer the the when our May, their of depressed conditions. during we new temporary no However, are operate partners impacted in to to price being by in concessions able levels some month and

suppliers, In disruptions supply their them entire this them of makers face including the well-positioned be to to chain is supply challenges in help disruption, and crisis, the car COVID-XX in through facing terms chains. of very helping we manage continue and

Edouard. Thanks,

Next question?

Manav with from comes Barclays. question Our Patnaik next

Your line is open.

thanks could there? year. morning. Good help but Thank your just is how morning, of next you by the the services as organic mid-single-digit couple us assumption guys just quarters in the hoping for that given color financial And much of Lance. well, full driven you. guys. processing the the growth with, on expectations helping Good was of you volatility Hey, for I volumes,

a through Yes, see them leadership time -- team I I'll to let conservative say flat. a the back the put the have that here, year, volumes that of they rest more in and speak wish we're I we I couldn't derivatives but to starting Adam see every should moment,

So showing is modicum in terms the you that in there of models a upside processing. of we're

there bet maintain is our the is that current business. So really real we

the services for the We we regulations demand rollout some new and really a are and of similar second in seeing and financial volatile that the maintaining information, incrementally And have the for something of through the pricing saw strong third and 'XX we're pipeline now. period. markets need this

and Adam, a you bit done, modeled decline. just other more Brian give Financial detail. color a don't have We Services have of demand out of though on like course Edouard will And pieces of that bit in why

Sure. Manav. Lance, thanks Thanks, and

the captured bigger Lance picture I very think well.

provide. different a the across we think types our services, and products think I well-diversified pretty you services financial it's and when business, customers of about business

So this in moment does but fixed ways issuance credit equity for see performance volatile in [ph] income with starts outsized a Holocene the to markets times real processing and and some within like issuance. also places processing, you're drive looking upside, other in fits seeing volatility will this business real and interesting we our

upside several be So -- given a and we bakes things aggregate The markets a year the it may look to full vision over you through is think in what thanks. of balanced downside. last long package. we've think conservative the each on depending months, may opportunities the scenarios I is that what go how of next like year see like tend as three on estimate in would the we what of happen There

Adam. Thanks,

question? Next

Mazari from next Our Hamzah Jefferies. with comes question

Your line is open.

the as for Hi, good well. morning. Thank you color

same? Maybe if then the the you downturn structured versus is mentioned downturn Is from anything Upstream You costs, guys you last lower, know Downstream, touch have different the can our much diversified, of cycle. being and contracts side? contracts? your just spoke versus playbook permanent. and of also about the you $XX cycle? could are you you sort on differently on more talked $XXX being million the have business do And million multi-year cost Do there you period last the cancellation, then of notice more I the playbook last

downturn And you. to if maybe you contract this changes have playbook last any just Thank the it's how structure, then at compare different So time? maybe all? from time,

if Brian, he Okay. Jonathan to I'll necessary. and to it that pass pass first then can

Sure.

things of of on Just a cycle the Lance comments says kind comments. are his and emphasize where that we some earlier in couple in

First of are our heavier QX type and renewals of periods. all, QX

is two gotten of through So obviously those which periods, you kind helpful.

at job The second potential a where understanding of and risk going I'll where in also team. and the we really and excellent customer-by-customer renewal where done They've see they thing through and in they are the level. customer-by-customer, an compliment are oil Brian their identifying position, cycle the patch

we far add? you cycle. have So think and in where Brian, kind anything want are greater analytics to of control this we for I transparency again,

is only agreement. out No, on add last the coming of downturn, multi-year did I'll the focus thing we

So we have increased our percentage.

to we pretty we those So feel well. continue sell where in are good as and those we about

Excellent. Thank you.

question? Next

next with comes Suisse. question Credit from McVeigh Our Kevin

line open. Your is

Great, thanks.

job. hey, well Just Really done. real quick, just, Lance, great

allocation. the on ASR million the to you $XXX number draw going on going Just Did hold I Number you that revolver? on want say, the capital you down Jonathan, well? two, are are or to then that's And to on ASR one. as clarify complete

Yes.

and pass I'll Okay, Jonathan. I'll start then to

ASR. that's the been April. in quarter, completed million we sometime which completed going the $XXX ASRs, $XXX be through will million we, started We a probably So

to and see down any years into we sight we them group not into strong see In forward we've need talked ASRs modeled bank we marketplace. and bank draw until billion of a those We've of looking each lines. forward to $X -- that's we're halted next better have our don't liquidity to year going modeling We our return the a a draw all with the about to and lines. on growth, those the in a in further down year and following on diversified got buybacks

Jonathan, say. I'd what add that? that's So to

that the a in have really draw I'll a we well. need very, that to very, over group, this, don't thing actually amplify And covered again [ph], XX have bank a well, we've banks Yes, group, strong everyone. bit. very frankly to down to We very Atlanta spoken

So to we we liquidity certainly the this to in have again, choose we point at plans don't But have any it. do there should the future.

Thank you.

question? Next

Our Morgan. next question comes with from J.P. Andrew Steinerman

open. is line Your

X%, growth revenue your what have And versus around X% organic to XXXX? during and to to set get in third assumption scenario, in to non-subs up also I what's XXXX Hi, two organic yourself painted the questions. revenue a subs happen needs guide which growth? you second that question, XXXX the X% In the XXXX to that plus is

Right.

I our look really all our stronger lot at must investments -- X% I a I to guess, I and investments to top services that of making felt footing. at our even at XXXX the X% and performance, look we're I into performance having growth of made CMS in this confidence look that the well-demanded So in a our and range. divisions, incremental be going at at a put areas, I in of to QX and across range on ample year even of opportunity the lot have of our look

revenue provide company, earnings think be this As I've and this merger a to we fell double-digit situation, Andrew, what I able a down look position ongoing to organic is manage even to at is were growth. said X% an we we year, since that if expand margin in unparalleled this growth, and good

in this our team by the putting of position we us next see combination my And case, growth got to you in that we well as decisions worst-case even strong company as can those manage as to fall a well. in down year, levers scenario X% strong

X%, as COVID-XX that across next assuming diversified The So maintain X% long global a supplementals portion the would diversified recession But is see which and a into to would in revenue that in must cost suggest playing protracted that's be our us But X% the not recovery, customers you that peers pandemic we see through business showing we're to variable products. divisions our to got 'XX. growth recurring and in that the a going staying the can scenario that across to continue I us. the double-digit our model, resilient multi-year growth 'XX into you of than low. you'll if a in customers. on as of is of have. many to you'll respond put the that We're all our of model I'm variable out then that quite differently in recession right like very continues with your on margin question, lot very of and ahead we some and do earnings and is model see we've rolling tough challenges back navigate what expansion revenue

will alternatives our feel do manage would the forward think planning, than we future cost for is, I us the results. we audiences, at tough out, around and revenue that in and confident of building the trying to climate, your their financial expect course, business the dealers even exceptional a place we've X% we decisions stay be have the I advertising, of of can revenue to key and to would deliver variable management, plan initiatives recession and return that now part very able lower lower are put hopefully incentives that scenario, committed some platforms protracted in what into to single-digit go it of if ensure be asset and level, the if that I XXXX course, come markets place really to efforts a newer that's still meet and in will to if protracted around I'm and around cost Company to a say, And of reduction in the the a very management team sales cost going manage the that down has put that already beyond, into

you. Thank

Next question?

with question comes Our next from SunTrust. Andrew Jeffrey

open. is line Your

I Hey, down a you wonder good unprecedented short-lived anyway; projections. the little the Appreciate guys. morning cost hopefully savings times, relatively if Certainly I taking bit dig in question. could

standpoint -- to costs a would you that that look how rate I the too. comfortable at my growth you a on return significant all an side model, to are absolute they're other pretty terms mean, which that margin this. normal ability of in at are from presumably the impair your out As taking to be I environment doesn't compared accelerated

described cost take-outs, question. $XX take-outs. about million. -- Well these to of of so that's Right, that's are a One me, piece good pieces there's we them as two permanent so

to with we'll return this of profitability. to piece need takeout that scaled variable second against but return the a that are revenue, they The is cost

and So, more $X.X we of than cost big of billion base, costs. revenues a have $X.X billion

we've So got a cost base. big

that some initiatives you million fixed that look $XX take had we've maybe to means an that and to they terms know of the we're weren't revenue in office, are So haves. working on to an of some haves, were deep of dig nice were out nice based at things but that maybe to things expansion

been a the around might our to better-cost bring in we locations firm, using that contractors to have priced and in of this in-house. we environment, the We activities growth, look lot will have social around things to which higher accelerate move back our

that ready return for we're to growth. So

$XX The million, overall permanently. our is which cost we've rest base taken that So is of percent variable. of out about a couple

will has marketing our car things be tied use cost that's -- we that Travel that listings back with executive It's of that is will led and It's the variable? off. that over come CARFAX our time. what -- the some cuts So revenue tied I forward salary to slowly is team. will expense so our around It's events be which that entertainment. my support calendar, base -- a used

those I naturally -- some also you extended come in and with now in prices we've we've or they'll could works. that But offices. we million taken in we either decided XXX work that -- were of you how carry lower so put purchased going some expenses, and $XX forgot we've and renegotiated. there So, at to that see the got several around forward. a fixed. on leases we've eliminate just already We strategy There modeled a from for home million actually is back out variable bunch are have

other a earnings protect great gives on $XX in and planned. because, costs previous not me done team is has the job if variable worried revenue the So million it I nature that asked of the I'm like the about think than levers the question, I Andrew we've as to and the the -- slower

Jonathan, that? some do to you to add want

the that used both with thing which down be a Lance. great here is and automotive flexes I has of add for in business, our new would efforts One our business that variable up is summary, is our this of part happens business, is cars. the affected that scenario marketing revenue. part that most that most particularly our for And the and Sure, support being to cost

So there flex significant naturally. a down natural that comes is and

less will it as come need comes shops our dealers their As are If naturally closed. back traffic, down, up. back they

into 'XX executive So the drivers and in investing I opening that will we've And as focused. think in the the in team been mentioned management still us done and the key as thing all done team growth has are and very beyond. Lance his here, remarks, we've that levers growth key take we

take future. that And Good. be levels. that Thanks, we're levers to cutting to long-term -- our that that any of wouldn't new our important diversify those And be kind the great to to us whatsoever growth is, pleased was us of quite Jonathan. forward plans in important we point that are because probably teams we've initiatives got and further four the able announce they to last most

made think tough The made. that nobody the period. in on year collectively severance and that's decision decision important my of that leadership teams continuance that through any less cost really that compensation a than workforce is we this other their home an with side sent again, important to of enhanced is on thing I And terms reductions around is ensure a focus

question? Next

comes question from Alex next Our with UBS. Kramm

Your open. line is

that could could I growth look for guess back thing to come to XXXX more anybody about not are offset? Maybe you would that don't in just question And well. find get ask think would you everyone. where XXXX? the factors morning good I question, like, double-digit I to this what be the what that asked you the any you that same as guidance, the guess -- still Hey, make can't has below what

it's scenarios, these way -- double-digit I've Honestly, to guidance for probability the really produced don't guys and earnings hit growth in now Yes. a XXXX XXXX. that low I you me, not to this single-digit in

question? Next

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

line open. is Your

guys. morning, Good

maybe cut. Just the first guess, basis a that, should resource other just that permanent I clarification a relative the on Is million -- segments? we versus assume that's a on $XX to skewed

at year. and not great One they our lot job attrition our of attrition operational No, our look near all. it has I do substantive margin offshore for testing our come know each development a through locations, Actually, a all gains expanding in which and roles. you if margin of replacing at expansion, teams, and thing about should have then other

gives of person in and costed So we've X,XXX got are more XX,XXX XXX,XXX of probably living per [ph]. locations than them us cost fully better that people, about

by the which teams naturally, well but been doing and that been we've costs developed. have expanding footprint, very is now leveraging So margin adding and our reducing staff

development, that so it's a tech, lot across product development we've look is we're folks. people finance, accelerating doing whether everything of the got whole HR, initiatives, the and of some what And at whether it's, means product those and firm, firm across here to

worst-case and across you great by division leverage It's quite being the globally when used and actually car scenario because at for view Upstream, the running whole deliver what's period have our Automotive, they scenario around is Listings CARFAX happening businesses performing driven is best worst-case CARFAX which the look a to the actually you the actually, as gave us Canada. we and this variability around interesting, do through is to there the have firm. Downstream and firm. the really to results us mean We which gives our that already opportunity Energy a Brian's footprint great team a that's lean, ample across diversification job and Midstream

prudent also return flexible combination automotive energy in with a So scenario of us our markets, performance puts for of here initiatives very the this we worried been the and expenses. absorbed delivery cost are they are, the would have because the financial worst-case a variable that is think, I outperformance place market but CMS in an position XXXX where completely in about put it's a everybody of profit in performance. energy us environment market but But where

actually since never far blip, my and I our guys well-positioned that XXXX give quarter. to think And managing but for really you going we've besides every We're now number there, merger how shared XXXX one single norm we, don't and we've out guess, going a important you to which you I I'm -- to little the to companies I planning is update given on we tool, with I'm just the missed you. was as company, it across felt models, be and basically

to going able surprise. don't So hopefully numbers us to be these forward. expect to do We plan and that hit

Okay, next question?

Our next Rosenbaum with question comes Stifel. Shlomo from

Your line is open.

my we're China? How see the questions. or you world can And what to detail talk I seen around forecasting. taking how appreciate Lance, you've may thank be applicable? in Hi, a and out about in other it the play things little you you the for you that again, bit so Asia-Pac, areas seeing far you where might not applicable believe of be what in think

one same the a question it's from time, recovery but happen. and at takes so and you little call, interesting. that probably bit can the the away us a see great That's Right, script how a can very

back things a through not being mask. are distancing, use home, shunned washing, sent at of the testing Today, and the ones a systems. our people we're weak -- masks was are happen. to social we home, respected. wear to learning from mostly make the We're able hands trying So of and working don't this very challenges them they the use started People about deals, deals offices managed Asia in are a and serious close travel into in everybody in region, that complete China, sent that our

the if the the mask the in funny they're and think People here recovery. are a a wear opposite the ones North to UK, look you problem in America. as We wearing and the challenge I prolong don't have going have get they're it if that mask

back and are people and running. our had Kong very China their Hong they're in but sales So of hands of masks from pipeline new we first. working terms and a orders coming about again, careful businesses and our Kong, cleanliness and now, in is we've pipelines, China, Singapore. Japan, is social actually strong, Actually Asia back But distances office had Hong recover together. quite -- bunch

that get would a If America, don't in still society but the anything, scenario wanted to to work with and quickly QX are know people, that, you And and for a I go the path to share at there you think QX a it recovery year when staying actually, I right. Europe to bet but do say, online with get got a is I the one of to as lot gives you we I including many well such out followed on is a danger you of it actually to that of and think many that's therefore be back that as yes, But people President can't and soon. not we do, U.S. reality, side. And night you I recovery home hope that democratic way our believe to I even think full last going to recovery other a the talk and North and to QX staying necessarily that if that Asian I our and lack recovery. the want quick get and you

are. So here we

probably a follows I'm starting hear got of QX optimistic view out it what path and to You've Italy. follows the Asia that

I big some to to start that control. Although starting others and in when you see see numbers the people see are colleagues in optimism talk Italy, in I Milan, to

but believe on QX If showing don't that, worst case scenario, to earnings. go decide I've right are your believe be protect push have recovery. want we deliver the now our back costs our the well, I and able if earnings levers strong, bet growth. about revenue, all company our got nice But models lever I for great comes, to keep I'm rolling you sure don't you if hit off protect And now don't make guys. of results of to that, the the When that recovery, people you opportunity liquidity in the lots to to recovery. you and the the then our we'll for variable, what's pay right And you that, and

Next question?

Sachs. Tong with Our next Goldman George question comes from

open. is line Your

cost reductions. go expect guidance when Thanks, EBITDA timeline Hi. back the your Can your morning. like good expansion? And you prior margin return the of to cost permanent expect to of to to you I'd annual of longer-term when for discuss might you bps XXX complete topic reductions? to

year, you'll have Well, Yes. the of this And, if in and XXX forecast of seen a continuation 'XX, excess you margin. 'XX as look basis you've we all that forward in scenarios into also points.

is, future. we our have on a to So have outperformance, even continue we to view organizational into been going that ample and we've still though the design expect that we're working scope for our strong

earnings So is revenues about are story my unknown level. margin is come this going that and perspective, at really a some to strong; story story the the off

will set return, revenue. cost reductions that and variable to back constructed be place need the return we with come therefore, to to in so never And set basis a on of and a

million in full would What for next talked mode, permanent got So for a impact I the are year. expect those on in I'll we execution the go-forward. full I a impact have X-month the set say about, I'd already and year. feel $XX for perfect model reductions, this up pass to we've that we

Jonathan?

what so just our continue and scenario a on bips couple hundred commitment. And we improvement backing to margins XXX XXXX; expect to I'll the in see have echo no Lance. we're off XXXX, from Great. XXXX George, we're to case improvements said what all of worst even through is, way bips then of you to way seeing

Jonathan. Thanks,

Next question?

next Sabadra Deutsche Our question from with Bank. Ashish comes

Your line open. is

the as Lance, listing site, is question think see there lot for as just My color auto of about lot there is on for colors Thanks And question. and biggest the that that follow-up, all you've a there was, the taking Maybe quick on front. you thanks the we a mentioned, just the thanks or for variability other provided. fastest just used-car in -- and think variability providing my in bounce quarter? see the cadence parts a even the maybe scenario, the there should And it case given growth; reaccelerate fair than is assume the to worst businesses part second about you of business would it? the way right that quicker the the to most you is that impact of also, back that

worst to you super you we're maybe scenario, you of of until to model. color any we've that. saying, think a case it. some that But again, that got Edouard add know, exactly recovery additional And view about how don't model have bounces wants that very strong our That's next year. off quickly, is we if But back

No, sector I on, very, the think responsive you're spot is very to Lance. consumer Obviously, demand.

partners dealership obviously, in our require we solutions, the so We've it declined our now in as activity levels tools as into precipitously seen logs, and hits take So past think the the this sector QX. our dealer and will two bigger right absolutely. other will dealer weeks customers, rebound soon but will before will because consumers back

you. Thank Excellent.

question? Next

Fitzgerald. with Joseph from comes question next Cantor Our [ph]

open. is line Your

and Hi, in scenarios thanks call. for the the

CapEx in oil, deal changes a you failures you budget being real-time what Our have oil in on are for Just of these seen and M&A and building scenarios? any possibility is any or in opened Thanks. spending? up

pass on further you smaller know, the came worst announcements We revenue, it's their for curtailed. a actually the really CapEx think definitely struggling, I'll significant. $XXX piece in that of of do puzzle. and is a it independents pay be We with therefore, I XX% followed that -- see will But we think I XX% we case cut we Brian mergers, out by which bankruptcies; of Shell all put modeled in potential can to so you think clearly, a -- to our million appropriately we failures and CapEx see see second. potential scenario, that potential

Given needs still the -- through the robust for a you product, know, future, ground. be demand to in that get a -- of brought and there to up; the a be supply out longer is needs that still to obviously, but ultimately, going term -- there is built tuned

fairly model think is robust. I So, our

add And on color want additional maybe some that? Brian, to

so. think I Yes,

hedged obviously, the oil CapEx the and actually But to down is stay weather independence us the does goes overseas. some try -- the You storm. of further in will and the know, you small out is it know, those in certainly that helps around I US so thing US,

So, business; in actually -- accelerate I go think guys -- know, know, and not that of before CapEx goes a will you while out so see decelerate you be down will to we it's and there curation will area, $XX to these companies lag [ph]. start these oil

Thanks, Brian.

Our next question?

with Nicholas Blair. Andrew from comes question next Your William

Your line is open.

of cost the projects to it hiring or to shift various that have other really business pipeline? tied same base internal new Hi, projects That least shift at previously work or working force's lake be or build any of employee virtual sell relied question. my data sales color on thanks if the then, more on impact practices helpful. heavily from be to the taking and home whether might expected to your your ability interaction? face-to-face the project you have is lower affected on any for the relatedly, underway, regions, How would the topic your provide And could you

been to have that's a never question. I've work-from-home. -- -- I good celebrator that's say, I've been Yes. of never No,

for you to here substantively have what's I'm with. etcetera, many been -- productivity to work so I found very if family, proper actually anything, pleased. for working of terms and I'm those way. And me that is that and actually of challenges from like without lessons that improved home for in But have my connection productivity have. policies some And would have substantive, it's rethink that -- learning my interruptions in others environment the with myself and companies flexibilities becomes funny has made But your many so, something work-from-home children, is, people improved actually that

have and some can hard, middle put tools think results early POCs Asian actually we've and [ph]. the our at We and damn early, showing the workplace in pipelines is, home an high, productivity; working that. And we so and started we look also are to are tools, have I analytics in the is people -- see we're been we that measure at post pretty productivity very what move,

jobs, On you to on developers headphones projects; sit know, have doing on at their are working commute not to and to they're be and side able own on side focus focused developers the of quite hand. by people and with and happy most their in work our world

our We have that have customers, services on professional is site actually curtailed. and course, go some this to people with of

some actually put very we've acceptance of implementation of those focused. And increased. but in customer's times it's of so And lot for again, slower a virtual has the activities,

So decision-making happening effectively. is

more at than my work-from-home, I'm here world in non-believer become sitting I a believer, care really, admit. a colleagues hours have lives to find I table let's again my impressive, we I've dining our they're that And I been fort for back the around up to interaction So, working room hope say But very have that in the soon. get some and holding social well.

Next question?

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

I before that big invest the to as are to all know, for us, money, just and to And a you feel of to you're decision our in you opening in and go shareholders day-to-day before Okay. well the that you -- investing was I happening making guess it in. transparency you say into phone; you detail to people's on shareholders sure to that of decisions it entrusted make represent in giving this like just really that detail, Eric, XXXX just need XXXX. terms you this, did as up want that in you're don't and times companies But the what's all have second of

be remain So back that will When at to management get situation. off did, until back updated my I'll highest a managing feel support. the And to and the we this we we you how and and every turn if levels. of we're trust accept transparency company, level for your quarter single ask that light will hopefully, normal I situation, you in myself both, normal to go thank back team always of the bulb your that

Eric?

Markit. at March HIS XXXX. replay Great, two call through ID beginning accessed about in your XXXXXXX Conference and or be thanks XX, in international interest This running hours via will dial-in for XXX-XXX-XXXX XXX-XXX-XXXX.

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

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

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