IHS Markit (INFO) 23 Jun 202020 Q2 Earnings call transcript

Ladies and gentlemen, thank you for standing by and welcome to the IHS Second 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

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

it's remarks, Lance be turn on to that, questions. prepared Before Financial Officer we our Chief website IR our take which Jonathan available my posted Uggla, to over the get pleasure today. call Gear, to your Lance? we CEO; slides After and started, I be and supplemental want attention to Chairman direct will to With our Uggla. EVP will referencing and your Lance

you discrimination everybody more solidarity I Markit have face events the Markit are inclusivity U.S., the around the world. those us Eric IHS of you, say call. colleagues In and the all we murder specifically, At that for the want and IHS lot black joining learn. stands with and in with recent I’ve light in much our thank learned in to of to who the to equality. George of weeks our IHS Okay, in few Floyd, committed Markit, a and communities QX earnings for last thank

tolerate not firm our actions long-term communities and in take will the any in commitments These racial We and and inclusion months temporary we’ll in events, our in actions coming workplace improve prejudice reactions but the diversity to around current aggressive to not to be will us. weeks change.

due expected, to As quarter pandemic. the was a QX COVID challenging

and have profit for in we period. management, result personally model. this work in pleased cost downside adjusted positioned and expansion revenue globally includes, revenue strong against organization dedication hard the extremely And team investments also further I This within challenging a for initiatives. new funded on and want our double-digit on our provided our call. normalized growth recurring earnings the basis. am way responded results Through QX a are growth growth, strong the protected thank my and organic with great ranges to However, to work scenario their I A deliver we margin

growth discussion, financial the For excluding the Aerospace and divestiture, as Defense the EPS. normalized when today’s we cancellation impact well the we results, of to events are and on EBITDA, for speak as revenue, rates

basis. call, on down management strong lot which adjusted recovery. market and highlights us reacting, year, the year-over-year Adjusted confidence in upon suggested a potential XX.X%, since a now of and financial cost three a million and have EBITDA start X% scenarios, based guidance are prior in due Revenue a basis. organic recovery XXXX $XXX a XXXX the our XX% up the provided XXX of we a in our markets QX billion, giving with our On of assumptions let’s March, So QX, $X.XX, up and clarity quarter. EPS to normalized basis how of over on of is can on we normalized call, our macro $X.XX again points margin QX in assumptions. customers QX we and and say We revenue

our in year line into Additionally, year. have strong EPS EBITDA of given early us cost sight actions executed adjusted the adjusted and the for

guidance providing are As such, revenue, now EPS. we EBITDA adjusted XXXX comfortable tight a range adjusted and for

Services provide slower provided firm temporary pricing Now results offset from QX of our areas This volatility QX strength Within X%. key for of market the Information assumptions. by benefited year increased and commentary segment for Processing, which from let with led strong organic information. equities achieved very some me growth of rest the Information’s strong resilience was volumes. services, higher with and business indices Processing, growth and in included to Solutions. somewhat valuation and Financial derivatives

the in COVID of Solutions year terms being period Last in services was quarter a pressured some implementation. from was year-over-year QX of course comparison. hard a through and delayed XX%

and for organic decline the in organic new revenue XX%. and for was year continued Solutions strength dealer activity growth QX customers, to some of normalized Information, Revenue business resuming revenue auto Used impacted by voluntary from operations our mid-single-digit are expect our of we price growth normalize sales to a a their Car reported volume forward, portion cancellations. pre-COVID release pause Going in the Processing Transportation customers normal in in improving with as levels.

and business pause Car negatively a non-recurring impacted recall around New in around new sales was marketing. and services Our activity

Our as Maritime performed business Trade expected. and

now to Transportation for low decline year. the is a guidance revenue Our of for mid-single-digits for

Used New in Within the second half. remain to We our negatively customers until demand gradual a somewhat benefit over to the improvement expect global trade with industry, to as impacted mode we improve. late assume and shipping our Trade, and second business conservation as consumer Maritime improve be begins half as business Car continues Car to

global range previous year expectations. on Now line reductions which organic our was the industry of CapEx for challenged with moving to the The normalized organic our a pace growth XX% a Resources, offset decline environment. in X%, downstream revenue reported in by upstream remains for

As as in strength organic normalized our growth expect product CMS growth business. offset to design, year revenue somewhat be in with for low-single-digits. the negative expected TMT such, was by weakness organic revenue we low-single-digits

For organic the continue the of boiler we impact vessel to low-single-digits the expect the code. excluding growth pressure year, in

to to long-term well I were detail Jonathan? strong our QX positioned deliver I cost Overall, which earnings the pleased on of am very to that both to speed results. after growth year over return actions, focusing say have initial revenue and to this growth our organic achieved and in objectives. reductions I’ll our XXXX, we goes with are Jonathan Moving and solid exceeded near-term level necessities optimization. We cost

expansion results of $X.XX of revenue decline of was organic EPS X%, of million of $XXX QX This a Lance. GAAP included million, EPS the XX% margin represents of EBITDA a which is normalized net Thanks, margins income decline XX.X%. an normalized normalized with X% basis. XXX of XX%; points, on increase an Revenue following: adjusted $X.XX; decline and basis, adjusted a and on X%; $XX finally, basis Great. a of of of organic increase billion, total $X.XX, and of

Services, auto by of recurring lower OEM Regarding organic decline growth non-recurring X% primarily decline Financial a in driven year-on-year X% tough included XX%. activities in of This non-recurring Consulting. revenue, and Energy lower QX comp organic of our and was normalized decline organic

strong and segment organic organic software quarter. quarter their to the had year’s including delivering X% lower Now drove recurring Information growth and to due of moving in X%, difficult on X% organic Financial consulting while a a respectively, to Processing prior COVID our Services delays. and segment Solutions X% growth driven had by performances and performance; X% comp delivery decline

XX% digital in Car the a in non-recurring, Our portion included Transportation decline retail recalls and and of segment of a the in delays of decline decline primarily by quarter. our organic XX% marketing, Used delivered recurring of driven business. normalized This XX%

resources non-recurring Our X% recurring decreased events the decline had X.X% trailing negative organic Our $XX ACV X% CMS X% XX-month million and declines. ACV including in organic flat of segment XX% comprised delivered normalized total and growth by non-recurring. organic is segment QX recurring growth, in quarter our is and X% which for

EBITDA $XXX adjusted down to X% Turning margins, year. normalized grew $XX basis. million, EBITDA now million was Adjusted on a the versus and profits prior our

XX.X%, was margin which up is basis EBITDA points. adjusted Our XXX

of was basis Resources adjusted some post up margin adjusted of a do XX ECR. margin discussed. $XX We was by dealer was margin driven segment which expect XXX XXX concessions was $XX great by points. points. margin Services second strong margin benefiting mix. the XX.X%, from profitability, TMT investments a an EBITDA in points. in Services of XXX $XXX large increased XX.X%, reductions with product with flow design is increase a Financial adjusted $XXX driven moderation This the Financial the basis last product million pricing year million mix. half adjusted product Moving across in points, the of million and Resources’ control shift with measures divestiture CMS and basis margin a and a through favorable down a EBITDA revenue with XX%, million increase the EBITDA prior was rationalization and was cost XX.X%, cost of up EBITDA Services due Financial to to which basis we have of our year’s by Transportation’s driven

the normalized on $X.XX divestiture XX% a $X.XX for diluted events increase or EPS, once of EPS was share, adjusted albeit to cancellation. ADS an Moving decline to X%, our and adjusted per of the

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

QX million. free was $XXX Our cash flow

our the reminder, reduction with QX I one-time associated our costs in with out and majority tax exercising of non-recurring remaining a with was the outstanding a and our U.S. month impacted of QX associated the QX taxes rate and by trailing UK would tax plans; one-time the finally, As options; the payments several provisions; call of associated settlement items twelve U.S cost the following: XXXX in changes efforts. pension payroll conversion

$X.X a leverage cash, sheet, X.X a represented with which bank of balance X.X basis, is top-end approximately was net of capital times times billion, debt QX balance to of and policy. the covenant ratio line on our Turning in our ending gross

product with manage to cash June, balance a provide QX within position. great undrawn down the TMT. and flexibility liquidity liquidity a investment small small We revolver in this AI-based in we very our made and within million tear continue our In representing also business approximately acquisition APAC of sheet pricing divested a to closed solution. capabilities $XXX with We that balance processing environment. our an and fuel million retail QX, quarter our Derivatives $XXX closed In small we extends

ASR We million. Our in repurchase an QX XXX $XXX count is QX was $XX.XX. repurchased completing including diluted share of shares $XXX million shares. average share at XXX Year-to-date, million our average quarter million of weighted price the

buybacks operating three our capital two maintaining to while next share We of times this expect to to range. later gross policy leverage year the or early return year within

entered we strong are assumes visibility line comfortable no very stated, second of Lance Moving major additional which we clear lock-ins. on tighter this, range, Based guidance as to to the and half providing a guidance, sight a to earnings. revenues with on

XX.X%; adjusted XXXX. at $X.XX outlook run to is adjusted guidance year to billion, a adjusted XX% X%; as to an organic full and now for $X.XXX expect year-on-year this margin And EBITDA between representing of EPS follows: X.XX we represents our $X.XX $X.XXX to revenue Lance for growth will Our through call back EBITDA. and $X.X billion of billion; flow the XX% of year billion turn this represents of growth to X% the rate normalized of I cash go of free to

Jonathan by I Okay. that feel very the XXXX Thanks, as shown in tight provided ranges Jonathan. our guidance just confident you.

lock-ins small major be gradual there starting recently to as revenue. a and to have XXXX QX, look like Beijing, a enter ranges regional going further our world is with major recovery, global shutting we deep break we as and will actually well forward have are we we’ve practice to no lock-ins be XXXX insight lock-ins want that planning you again taking very XXXX and complete point seen seen give I in economic into in We’ll traditional to the down our managed these forecasts. Looking for and by that XXXX, but once events may conservative

Okay.

of year includes next assumptions growth to the revenue X%, which organic segment. by expect X% we top-line, So following

to Services its organic X% to more by our Financial return to Solutions, back X%. to first, will pipeline supported in revenues grow Processing to we well in term revenues will growth growth to return Strength expecting continue Transportation, And high-single-digit backlog which range of XX% So revenue We’ll in of longer XX%. levels. range is moderate the strong of orders. are normal and Information.

normalized this downstream and this were high, as division, organic be sounds a continued up X%. range. itself done made XXXX now Resources, OEM growth this which range XXXX but well assuming service organic And growth a in the we maintain down And by to of benefit weakness plus of then concessions being that energies growth supported is a due portion year-over-year our by strength, X% dealer a and of level. price Now expect CMS, of job revenue. our usual to mid-single-digit resumption more high-single-digits, to a revenue to is favorable on offset finally actually our result lower in seeing fully are reflected we expected growing of great bookings post-merger annual a in upstream is which has recurring in In

look a let’s at EBITDA. Okay, take

continue range Here XXX put of expect announcing in to basis expansion and This this of the within of range expansion COVID that going set points remain solidly period from lot work as but mid-XXs will margin when us intermediate goal a ability the confident we still approximately has margin team forward. year. this our done merger the we our in margin next we

events. from illuminated XX% expect when in that’s witnessed the the of this impact that additional EPS COVID normalized to to growth finally, for opportunities through to And XXXX adjusted margin And Some the range. in XX% has from come the home. we of XX% expansion XX% and for be working we period

range. without So make be impacts sure normalizing solidly to us into and XX% you and think the But puts XX% about XX% events the XX% our to we’ll year, next that events. that

in an call, provided to QX our on forecast. as XXXX XXXX floor are our also forecast providing our we expected Now

be similar X% about downside thinking lock-down potential to just to one be magnitude accounts second we experienced. instance, scenario? growth X% floor organic our The that the would would a are to approximately for this in how In the that X%. So revenue

capacity and automotive through now and adjustment tough is in an adjusted revenue of lockdown this well challenging that be around In see marriage understood on. our within team really our high-single-digits. pleased protect during revenue will job deliver to us organic and am And longer-term excellent period, decisions about in invest we’d range would the substantive to automotive conclusion, of the in to continuing X% EPS come. So the to which that’s X% created done we’ve lockdown combination I growth an years expense make that earnings, for QX. has opportunities the enable And to we’d growth

U.S. we business to the world transparency still into challenging uncertainty, provide shareholders investment faces continue these navigate the While times. unparalleled managing we’ll how are to help

and in positioned deliver uncertainty, results firmly stronger this outlook our strong guidance to Operator, ready for range demonstrated performance open by lines are questions. tight We through we XXXX that the XXXX. for to are Jonathan even provided the

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

open. is line Your

Hey guys. Good morning.

Gary. Hi,

to Transportation. am a I in try sneak guess, going here I to on two-parter

press just And impacted would we of auto as about lot process how are seeing thoughts dealerships? just flow trend moving part, both portfolio the Cars first the we part, and/or continue reopening that the begin the Thank your second in you. are the or in recent you a more the see weeks process for or and online? seeing to through guess, seeing I of The on a is online? moving lot business transition discussion there going to in is how impact I this expect any dealers of Used of online plays of the sales new

me with on good are management questions. today. Those I’ve my team Great. got Okay.

and and So, if add transportation Edouard? Edouard Edouard it needed. take on Tavernier runs I’ll I’ll that all let to

Great. two-parter. Thank questions. take thanks, and Gary the you, Lance I’ll for your

new both in March, end challenged. for late expected the you since seen to activity we obviously, saw XX.X used drop-off sales year, recovery a the time, The April. car point of the pent-up market, car of which new car of in seen the part, have market an as At We the and remains outlook particular. in down first XX%. little in sales sales. is solid through expected have of been corresponding earlier for April, this that’s strong demand at a lasted June. to than There HX sales suggested solid. a year. we car the vehicles do we than in CARFAX despite in late rest that’s is the expect On of that cost bit million, see full $XX.X used May a has at and But total drop U.S. continue a once the and there activity or new In we us in increase supporting units in volume be We bit million of

see QX. a in environment new the in through particular challenges still car So, inventory we some markets challenging and

back new levels been have it dealers. are coming the been car stronger past So, that and significant this dealers retailing question, versus has two the your a one online in used stories right of On cars, by few has online to you in move market but here, months, seen we activity. second shift

We we number of a in have aggressively are embraced and ways. online retailing supporting them

can. We with been marketing its their were working that and automotive have who digital much great then with shift in sales to dealers in unit which participating drive assets dealers. business retailing has online some as automotiveMastermind leads who helping And working were we platform we this remotely we sense, staffs and to as market online are support

Excellent. Thanks, Edouard.

question? Next

next comes Patnaik Barclays. with from Our question Manav

Your open. line is

guys. Hey. Good morning

Manav. Hi,

that year. what we’re at your Lance, – means for understand floor a the wanted correctly the XXXX, just guidance shutdown maybe X% seeing similar to assumption basically I in this behind to

easier And through how the how about much resiliency we curious cut you so, Or revenue think why comps? so is is that just stronger, should that?

$XX about million Yes, at and at a next which to the X% well, X%, it’s if putting black of X% at scenario least swan is X% at look year range I below revenue.

seen shutdown here our around would offset substantive business. quite and that what in it’s global we’ve automotive than more this So

waiting more what with terms looking that is in solid basis. a teams there a instead with several months quarterly that, or you So, X%, the their another budgeting the sharing and I just my And use view substantive is is of forward I that if is, numbers second to the like? wave? bunch my whole seen of But on plan a tool a planning if waves to what things be that’s emerge to we’ve and will communities, governments, as I Beijing. management and faster. there personal X% again, challenge believe Well, would was business to we be that will there business question, globally for me, third that how to felt some hospitals, of like I resumption just return the view be other and in shutdown is look My of starting and therapeutics are will the waves and contained and

the run to X% think and floor that one know we solid else of add I run, in to a we in to you performing is we the second how think and really is returning running a normalized more and our But with our Jonathan, business. that that? confidence our X% anything to peak actually shareholders approach that wave. to to So, did businesses to how want do floor the a the provides X% terms

situation. the both a on how Lance. commerce think in react we react will your as I’ll that of as you provide primarily and a mathematically of and said, just have even back have said, us type to that sight and will know now And kind I also the think help would Well, a would comp Lance similar customers we year-on-year I line in clear view impact customers well, thing to – in about customers a the Lance our how point. be to automotive of key But own The goes shutdown. it is semi-shutdown how they in behave support point kind can we

Thanks, Jonathan.

Next question?

Fargo. from next Wells Bill comes Our with Warmington question

open. line is Your

morning Good everyone.

Hi, Bill.

been business hinted on question making basis been if a could the variable harm ones what potential cuts of not the going then, a the context that a cost that permanent going going potential talk And growth the forward. you cuts so revenue of the I you a for you on you’ve for are basis, some those and about additional forward? cost this to that So, far, confidence am you little doing you bit maybe the have on those asking gives making reductions at in

and think expansion thought years, points in I couple Right. be I we’d protect an But have lockdown. to Yes, would and that’s I for called think even margin appropriate mid-XXs early approach the and a of of long-term we to longer against – leadership merger, heading to think there protect are year pandemic we those us, earnings now. of we’ve another our fair action not since the my the in for terms the growth XXXX we been period have consistent team in to in no, potential also and our probably took the measures

I And job. teams good the so, think a did

this XXXX Now probably and potentially direct a came get of their the necessarily compensation some salary levels the Those big the direct around half a to cuts. piece start normal resume – but of will of in return reports. at for my to second to in cuts not return the look appropriate year. time reports, I’ll

my see performance. the For year of second is at return into depending myself, look I the and past on a to prudent resumption year this half and reports next and most think

levels as going that have smaller need on took footprint have a in large were We forward. some some to action gave perform will and where on offices to on we’ll we coming come those leases back XXXX, XXXX. short-term But that for all at up it cash some us we changed in. reprieve We said a early bonus

more are SWAT We a bit rapidly those team. that of cuts those require a very little executed So permanent restructuring. with

come will We in cuts, so costs declined, came mainly automotive revenue in of marketing back but around costs as play, and parallel. revenue the grows, the when actually into have course, those together the are they

with easy that the harm worked think am and I I I staff team made but large my around that teams also them. thing our then units. portion sometimes And really replacement And to lot the of a is no there. a expensive way cuts in initiatives that times on contract my biggest it’s into for done a they So, is being was to hard place to proud really basis, accelerates staff, of put which manage an hired

immediately So, on Those permanent underperforming contractor our cost a a changes initiatives. back, are won’t cut take cost but is initiatives few calls. some savings, that restructuring but when then done better the permission a footprints. And maybe the team great come somewhere and We into challenge job. pandemic, we actually but a has do there only no made tough the

of expansion any next do the much there And so, don’t our the business I Bill, and coming over the appropriate support a managing net-net, continue that lot more issues current I years appropriate into adjustable from the with our say, years. forward believe to mid-XXs of margin to our staff our lot and a initiatives. forward substantive I XX few support of look pleased studying, from and our am we manage we we for with are of leases got this teams see a products. any to the still doing feel forward as with the redevelopment I we’ve though, to performance footprint. as see the is XX And lot expire I of to to a ongoing upwards levels continue And savings surveying, footprint investments. the

So, that’s where stand. we

are is strong. The motivated. So teams the business

We’ve at that we levels that’s Google that we tech here scores thought glimpse, the only And been I could highest they think are go. achieve, the but in got merger. for a satisfaction great employee the since companies the have delivering results. have that firm workforce really satisfied and our I

Next question?

from comes question next Our Meuler with Baird. Jeff

Your line is open.

you. Yes. Thank

still guess, forecast answer it solid XXXX kind it looks your lofting or in car follow-up done the for of two and down you high-end But and I like then materially. pretty But outlook of on the So, maybe XXXX. year looks good looks are guidance CAGR. transport of the which in auto is you new kind like the question – the have

the the So, range on any at for of leading the what I that that confidence XXXX? in detail of more XXXX. importantly, kind giving top-end in seeing then both stage, guidance taking guess, reacceleration this transport just Thanks. are And to more what’s magnitude that’s to in you you

do Edouard, take that? you want to

the Thanks questions. Great. Yes. for

I in into than broadly XXXX better today do as what going the see was XXXX So in to it speaking industry condition great in an a which recession.

we and are back that on see getting OEMs And believe the from market are in in customers, the holding the and the expenditure so, they is pushing for the signals they growth cash, our discretionary our are industry. that XXXX suppliers beyond but partners, recovery the they they and of

especially about recovery seeing are one-time revenues are which outlook pushed in XXXX. a year, half along into spending we of moderate in good that feel this result standpoint outlook is new the our the that what business. So would discretionary why see and being year That’s from out we by the XXXX. for driven QX the second into car But we

to go question. I’ll the add. to Nothing Edouard. next Thanks,

McVeigh question with next Suisse. Kevin comes from Credit Our

Your open. line is

accelerate a feels of higher basis COVID? points structural still and result or a – are if XXX targeted like cost given been level leverage kind more Hey Jonathan, growth little just you. a margin of the to bit of reinvest of been this expect Thank see a conversation structural, extensions the Great. the – to result that was that able you business, most of to we some Lance in the more you’ve as able it is really margin trying expenses a you that’s and of of expansion should as some savings,

pass I’ll start Jonathan. it and to Yes, I’ll maybe

five was we’d merger, that the over towards that for task to personal a XX% I next heading margin that a and was it. that hand XXs, us in high execute a have to a view from shifting do So, that since that XX% seven and years, margin,

footprint can sit the have of money margin if work cloud, continue a build locations our flexible means be better cost looking be Milan use take Raleigh us time staff XX% or and a London, change without to into that flexible save can so, my One, Gurgaon cloud-based New locations through cost we Frankfurt. personal able attrition XXXX cost levers, our and at we versus general support from it’s technology through Gdansk how that, opportunities two, view, York, to better supporting all versus to versus And it do and are into and our our disruptive, more services, forward understanding our being here and footprint, and forward more to infrastructure and to work home versus two out over things. cost Manchester

have forward and a team border has our Ontario the and up planning. achieved built across – office we Windsor, So even substantive in in their savings CARFAX great cost

our say the look footprint, and be type able of growth wage I XXX post-merger. top-line have do I stop, and points we’ll with when it’s X% to to so. Kevin, I is, inflation, general year we a at of – teams are appropriate and my our for investments a business until think better year we X% So or at view able And the continue ourselves, and team to the generate fourth amount our it’s basis

Jonathan? got I be don’t we forward. and missing we’ve think I we’ll missed and going at a yet great haven’t cadence think executing

points, Yes, just couple add to Lance. a

right the the we what through to I way to said, actions year despite as me, the manage or our think margin hit in in mean, world in the the it a And the to challenging will a expansion fact gave permanent particularly basis to half I over the on, margin are made by unusual will mentioned gave going now drive teams points we deliver really us XXX as addressing Lance to this future and it’s deliver ability so in is, which it’s growth it across I actually had. that in environment. number, overshooting we you target equally expansion earlier we but And say first, easiest is as do drive first, here, major initiatives confidence growth and and top-line us, obviously cost year’s more overshot years. it organic ones the cost, Lance this invest second QX to as

the a continue does think flexibility us model until and think we our as until have. So, margin grow is really expansion as normally has, you nature Lance said, business through we that we than focus that given I we of otherwise. have we has – our driving that more on, think we to the keep with drive tell I will But

Thanks, Jonathan.

question? Next

question JPMorgan. with Steinerman comes next Our from Andrew

is line open. Your

Hi, Andrew.

Good morning, Andrew. morning. Good it’s

XXXX second underway us XXXX how the embedded the terms sense the lift in current just of fiscal a am talking quarter? I guide, organic you third quarter. In give fiscal revenue of growth about that’s So is much the already revenue half could recovery in

Jonathan, grab do you want to that?

go I’ll Andrew. ahead it, and Yes, tackle

seeing are uncertainty lift so and consumer was Edouard about biggest there lift, the mean, to actually is behavior biggest be answered And talked in part you back. we is, is – XX about the what I had change ago, I lock this the which the U.S. we obviously you was they the would key really change second in recovery the purchases lift, market. used of and consumer when biggest question. is call lock-ins the like. The if car look days resurgence did And car pent-up And So, the not behavior we Transportation. used signal or this covered the of the also come we’ve this around that recall, as think

at said then move So a continue of the done it. very very, closely our and have strong the our think Edouard are year. a customers, as has And have as lot particularly we line that’s we with element the have of They a cars of Resources, build appropriate build job sites, Brian should I see car directly had we back-up QX to kind clients. for very very Financial in new as we OEMs strong around a had Services working of detailed upstream, amount business. level, they within of risk third QX also a particularly result and inventory they in and the build driving are confidence Transportation we’ve in an portfolio. the I with half out think understanding the as built working used to into And around moderation our And the second our the sight team, incredible the revenue of have, portion

it’s terms year. this feel the most an right now uncertainty. order revenue in think at the very, rest where there for of margin I of and the year very Andrew, So, arguably our I’d point, in is good actually

Okay. Thanks, Jonathan.

question? Next

Jeffrey from comes Andrew SunTrust. question next Our with

line open. Your is

around us that’s back sanguine alternatives question driving structural can and around market growth Hi. for resurgent next in half business for questions. into Ipreo? that just of thinking is thinking you Good outlook the comment can give wonder And your update your a particular, how morning. much on you year? in I My and taking IPO factors sort if of how the an into add-on, Financial and the an Services on Lance, your apparently specifically and – you Appreciate pretty positioning Services Financial an in Ipreo,

Yes.

is Adam And, call. with also me on the Okay.

add So, say. I him have to I’ll to ask to what

is that So, increasing portion all through business, have the at but perform the you assets I The to get the private I the first in private opportunity one plus have activities valuations well, of XX% have equities Ipreo performed our revenues. definitely of is in is markets off, But range. pinned share alternatives in the And well markets, growing growing XX% this Ipreo that’s hasn’t the Ipreo its to look very when when is range. the against, piece period. piece to having XX% of that say to

need as team Adam, are they the of and want valuations issuance established. investor business taken the services I have the that the so, that that equity maybe of into that you munis, really – for and in the are move to one leadership there reporting prospects debt, continue that alternatives, bit assets the talk in our in around growth about other And we benefit well a then how our and looking a developed will performing a role forward. tools think marketplaces well more have little and and as independence to out really alternatives, couple are

Sure. Lance. Thanks,

I think you described it well.

I about think think the the of the across classes. to overall asset way balance think set is about businesses to

new markets. in services. of So, the to have you issuance, in when issuers seen period, desirable that range income, But significant the IPO lot a into opportunity is provide gives fixed what because us municipal we’ve a IPO of a coming and strong slow actually current uptick market Obviously, to markets shock see of periods in been tick and late few we with June, post of into are strong the initial last shutdowns in a IPO the May, even COVID global activity lot the activity back the of markets early starting is the market start to even up quite are weeks.

largely few of I you’ll in in IPO with levels last classes we’ve hope numbers of the income market then business a bit other markets a but view issuance businesses, drive the resumption moderation active which of highly some the is, weeks. over our of normal other, see offsetting the that each in So asset maybe the fixed seen

seen. roll growth you altogether, we we’ve have year, it balanced of when kind through portfolio the think a So, that the sustains you

Good. Thanks – thanks, Adam.

Next question?

question next Mazari comes from Jefferies. Our with Hamzah

Your open. is line

question morning. Good Hey. My on is just allocation. capital

buybacks. on touched You

on visibility You software small in recovery. very the doing did you sort year. terms changed of transaction, first as a into of deal seeing tuck-ins more your this Has outlook are M&A a more

transactions? You’ve cut is any margin more a do if of thoughts profile up, already cost, ton you

that businesses. of key I the call across I our felt all three Okay. looking last anchored in said initiatives investments or think were in Well, things our some I forward organic two quarter’s around growth key the

Resources energy in as of and it we our XX% focused we’ve investing So, those continued a on and one growing We and big climate a that north assets in division. market of see been diversification been specific are very resources, growth transition. current TAM, have

continue our there. invested acquisition to into through agro So, in we are in very invest business. We keen agriculture to

expect set forward correct business, double-digit team forward. and as Brian there We to invested in high-single-digits to going path the re-staffed we’ve is also a the working on growth it with

could and – acquire be and see TAM to ever, automotive, OEM spend. digital CARFAX is activities. digital and associated surpassed looking first small all management else, further design build tuck-ins think host for organic at to Times organically. we go to it focused think When We AMM Edouard I kind marketing everything yesterday new are – read automotive, participants on the teams well we a that focused mentioned with which transition dollars into Mastermind managers. that’s the to us energy climate-related on of of draw the is again, that’s are needing the managers OEM and together large to and I those The at on, on. asset costs, I the now of platform here is look it So has of time organic. the targeting continuation our key amount spend focused And we very don’t marketing you Financial I although looking very and or pull in we’ve together working with for financial and organically cut Edouard was that incentives very dollars. markets U.S. marketing asset assets solutions in I QX been in to the drive one That’s in And asset positioned papers there market

organic growth look So, a business. go, existing and that, really continue to substantive We we I’ve at don’t I to we when have our acquisitions. lot I need got of complementary and invest

our capital times team, of can to And And capital They do runs initiatives. and excess working is, and any therefore, leverage on treasury, view the are maximum our is for it I below anything acquisition the that. I terms you to on or? a and see slew manage my the buybacks that at top Jonathan, add want don’t range resuming for So support three buybacks. Granat they big needed of upper-end forward. growth going keeping see use that. in share our to share else Jonathan of him long-term

we because the very important to No, And I the remaining M&A, you capital I where our you deploy captured have you cash less more of it of policy said, on buybacks we times, three under emphasize to it’s goes. us. think just committed kind spend, as Lance on to and what remain

Thank you.

Next question?

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

open. is Your line

the for morning. guys. Hi question. taking Thanks Good

the transport just to they the just I a basis I back the really, trying understanding concessions in into a expectation I year-over-year second. Just, continued? June transportation segment think, to back for am just margins make positive half and on you. the go third I still I have into I is sure can Did the you dealer that quarter? of could could understand the wanted year? to messaging, bleed turn am Thank price continue the guess to that want whether just

this going keep on Nigel, one. Edouard?

Yes, sure.

a already to completely in segments that will out concessions been the of few that pricing vast our the support August. place markets have phased we of have question? have majority still answer we month by So, removed of Did the some and the these

Yes. Thank you, Edouard. I mute. Thanks. was on

question. Next

Our comes Alex next Kramm UBS. with question from

open. Your line is

Hey. everyone. Good morning

cancellations. Just on you the prepared some about talked remarks

that talk anything you was I the in the mean, using just what critical this it great. and on would think Thanks. quarter has I their some but as can things would be mission cancellation you color be business? fairly well, you primarily the you customers ACV time when across any at that it are I to second spend broadly, as look about they as may as not think seeing saw Or describe thought? resources, been limited gave more

took space team discuss. I and a of across look, this an Energy – But script I referred we’ve to I going it think in think to stance reputation am in work a I in here beginning automotive got start really would market the I with in a to let just moment. actually our anything and opportunity. is the the add that cancellations. great to with always significant refer, And don’t the then was in written I small QX Brian referred I to I within firm, customers.

team really our us tough term opportunities think there some to I We that. upfront us contracts want the longer year, wherever to where I price team troubled are going the and be term help did for we in for think the customers through And concessions price to at well increase was and and have execute longer contracts. customers and I can a concessions did

I to XXXX benefit in XXXX, into coming five, longer. plus two, when years were fit or impact now in two, going in dragging also I to minus through back have with extensions energy have the three, the XXXX, but XXXX, for, an it’s so, contract going am because our And seven within XXXX, that general

see this and long-term team modeled. good I don’t job actually should we’ve think do what challenges the And so, it’s firm great in a a I any environment. what did exactly But beyond

that lenders higher looking rates lack Now challenge. we is within of want through returns, that just with moves numbers. modeled gave some I continued private the there CapEx, Permian, we’ve a think your and their And how lower are challenge for made this maybe therefore, energy that that the commentary up And hurdle viewing you top you the period. our equity prices, and some to tough specifics recovery energy of I on into Brian, on and of

on it the hit you head. Lance, all it know You

I think it’s largely a North issue. America

You have your production crude. price than cost there the higher of

is, seeing what with are we go are doing up. we But are bankruptcies customers You working on price.

longer-term them So growing for we contracts. growth again, business keep in that’s our in we our actually get that and And upstream. international in example, the

of So, America right I pressure a customers that under think of the to real are care focus for been lot North now. take those trying us has

Brian. Thanks,

question. Next

next with Shlomo question Rosenbaum Stifel. from comes Our

is line open. Your

question. my taking I am in for you there? Thank

Sorry, I I got you. you. Yes, got

Just phased make anything being the just XX% sneak in of on wasn’t want at significant concessions. There that the in from time? revenue out terms the was recurring just the this transport, in just on that was decline dealer all else to sure of point the just really that, quarter, back to that one,

correct. that’s Yes,

you. Okay. Thank

Shlomo. Thanks,

Next question.

Our next George Tong Sachs. question comes from with Goldman

open. is line Your

due bookings to Hi, achieve X% thanks. fully offset be target? Good weakness upstream to down you need describe in by and year revenues. in being evolve Resources’ for you the oil X%, next up discussions to XXXX morning. how expect Can fiscal organic to over you Do this prices XXXX growth OPEC downstream reflected strength in was lower

all you and don’t Yes, Brian can covered. have if again I it add start I’ll

the plus mid-teens now X% different. am scenarios two, start. by a I’ve you guess I two currently, given we recovering to is minus that is July, this so bit I Financial doing am doing X company. remember, am isn’t we off I you high-single-digits. December what a that August which tools XXXX, period, X% – done Services, in the to for Transportation gave really is comp, ready a So, gave In low of And you forecasting that throughout scenarios normally – giving the QX, you what previously I a my for Energy

but really So, that marketplace be sticky. equation you supply/demand which upstream full concessions our get $XXX supply/demand the those out to full there, some structural in XXXX, issues we concessions completely data. data and they of our is, impact in shifts that will million if very customers the XXXX. of for fact caused of some important customers to. are used premerger cause whack have because are upstream cost not plus customers to Energy, revenues that customer structural the to they our larger $XXX in of buying us not of in price we is disappear, are not very view Price And million gave year the any year. But about some whole went know some also and We

from then, So contracts us. built through to growth And our cost longer. we that continues going years in even forward years on two seven and

good disappearing. team the down become forward. small way for $XXX a two out So, rolling I it starts our But company that about get think issue the your XX%. reflects challenges. that data billion billion that plus And were XXXX, become CapEx to some of revenue two $X.X the customers revenues real those in And to that, has as business gives you an job concessions a certainty made, and minus of above the us upstream nice done $X in of million and on

in unless at I can the to have planning to X%, hand, two to the opportunities anything than doing. of plan the to all and for that? the rest and you want you I our customers to be what would manage to no no manage of the add for business other I What period, how and know about strong can’t worse am likely certainty heads. XX%. X%, revenues planning, the for of our combination whether his unless team I reasonableness now we precise $XXX And I pipeline and are million I rate that with grew customer of better Brian – that’s us do negative double-digits. error On in Brian, tell you renewals X% the and plus how of business division other two going the has And I than closer tell that’s moment, with XX%. grow the Resources to firm

events swing events definitely impact have there events, is well. Yes, is, going the or that’s only thing have a would we if we mention to range, as don’t I in the

missed think a are And I XXXX you to X% time Now, in our that’s it’s we or we And – right Yes, I back don’t division. honestly the – that. last that in in. with haven’t in some guess a at million if Brian. is of that story, returning put I what, back level. that? to if that’s But I’d Just events coming back my at so, make put put add to events, full challenges forecast, disclosed now, analysis haven’t I the of the that people to there in potential remember when was some the view you events we we U.S. quarter numbers with do in didn’t if fact, see I any But put of Jonathan, right revenue And some the in division, for want events right, virtual I together. the some of you my definitely X% come growth that sure President, talking and events boggle in. is potentially $XX smaller to there. put team, that, XXXX. personal

no. No,

strong the You assume on the – range, is low-end, a I what mean, had events said, coming fashion. But coming it events high-end a moderate in back Brian we that I call out and right. would on of assume it’s very back just we

item that swing range. is So a that in

top we level less Right. returning And would would you events or our a a little or little in more? see to – range, XXXX

less less. than XXXX levels, little little a you A It’s assumed. the

yes. Yes,

Okay.

said. I how that’s So Good.

perfect. you. Thank Okay,

Next question.

Our next question comes from Morgan Toni Stanley. with Kaplan

Your open. line is

delays this Solutions? I sales in and morning. but Could are if COVID willingness like sense any customers’ pull And of Thank about trying get strong, just on improvement of, point. sales. It pipeline to you. to assume to some understand the the try you is sounded trigger wanted implementation over. is your Good new But sales just about talk that conversions comments new a within the at cycle there

Okay. question. ready No. follow-up I’ll start, to if Good Adam, here. can

year’s think X%, ten on sales big even I if Solutions in is normalize to though probably actually the us, running have at say, are you for reflecting number this not or quarters, over QX, last eight normalize year-over-year So, I quarter, we the XX%.

normalize – an So might strong. still The high. it’s delay it also is this, very a at all-time Solutions pipeline

better in there the into slowly therefore, pipeline pipeline. And for is generally customers of that So interest of the year, and it lots this closing rest those that return into feel we’ll we next and production. year putting

And so, I do think a of the low strong view how of if some as the just you pre-COVID forward, levels. some add Solutions contributor we I to look your Adam, XXXX? highlights, Services and of at Financial growth look to back challenges want I lights, forecast to

Yes.

biggest give base efficiency. think use I with think work larger of actually of the solutions from customers Lance. of solutions COVID driver that in pipeline. thing customer months types and our they I that’s year our opportunity their for to decision-making we to at the bringing we each And a of and and efficient together risk management a lot services is of at some solutions overall most packages lot has six Coupled summed our maintain been offer. larger with and customers that really growth the to our well, interesting experience for Solutions the it tools implementing you of up looking a lot where can and of accelerated of formalized other ago, the it’s The looked

more been it’s this little of to doing interested There be quite are through takes deals little customers So, accelerant. close. in a larger will think I time that. bit But bit because in delay little period, these a a that, are that an

like this were you part I from our of adjusting open. home through all saw delayed operating this by been the low through restarted an are that stayed software markets you of and larger little largely which pretty of looked have period. That at bit gives weeks, have and working and is, four we point. into early But basically little larger got have to Markets software of about to work home, path. implementations some think as insight QX to implementations maybe optimistic the from forward active Financial have what what a the why customers adjusting six might environments in

thanks, Good. Adam. Thanks –

question. Next

comes with next question Deutsche Bank. from Sabadra Our Ashish

is line open. Your

growth drill my down company for want The question. to further this CPU just opportunities. year. earlier on vehicle taking AMM I Thanks and car launched the for actually automotiveMastermind used

forward AMM possible So my car question penetration is as current is for using new CARFAX? of what And least both cross-sell just, opportunity well to the prior it the just at and to the AMM reaccelerate existing we as growth Thanks. crisis can double-digit And follow-up sales? to of question, to come cars, used at dealership out the XX% was the quantify AMM is that to crisis? going growing as strong

Edouard? Good. Thanks.

Right.

growth So, is Mastermind. of Ashish, your the question, of which will I with the start end

the few quarters saw actually growth we past until So, QX. in accelerating

year-on-year. delivered Mastermind organic growth QX, in remember may XX% You

really is that strong it the I’ll building driving really, So between on we’ve your been other And first acceleration which automotive organization. now growth? synergies Mastermind parts the that pick-up and is and what is point, of actually

give in examples, have we automotive business. the to using few our organ in So that built you now is that have capability Conquest we Mastermind safer

We market, of of as capability the are July we in of parts pre-owned this second again, for other the used we support the because half use a you many in have sales timing that and launched Transient car within that is leveraging kind have assets data. built a will used we said, and portfolio. we – is activity of to the the Mastermind year capability car automotive which just service that dealers CARFAX And is using capability in launching perfect kind

Mastermind quickly growth on a opens towards redeem year. we to So, as automotive up end this and the growth as which story, is our foundation the is expect anchored data that a of market

Thanks, Edouard.

Next question.

next comes Blair. with question Andrew Nicholas William from Our

is line open. Your

morning. good Hi,

range you impacts business, about the embedded you events guidance I term take pandemic that the of just in ramp the is touched back just But of curious, earlier. thinking and how am business some obviously is attend it to you’ve on or think are and it’s potential of conferences? willingness clients’ longer time Is travel outcomes terms Thanks. will the In to you to something a impaired permanently and review? XXXX

guess, everybody in I going imagine all I’ve been I a have Yes. No, dialogue I on quite virtual customers. with views. view have IHS personal pleased pooled our with slightly different and Markit if the on we the One phone, we’d

resilient data against supporting our COVID. So science. we we have issues our really lucky so products our no services, to feel and our with And datasets, therefore are research, I be out

probably events what globally of we X% revenue Our from is about do.

to is reasonable So and into the – a on that to speakers is as my crowded in in therefore, going there it It’s of to leadership. I be taken thought help companies a rooms, at subways, themselves want there think bag on that, support be – to rooms impact. to be they put numbers in provide fly, to vaccine got that. numbers to any view mix crowded scenario, crowded want is back so, be it’s want Otherwise, people to want the we’ve

should something less little expect said. we own as XX% our is X% scenario, Jonathan at my a than view So is, that,

So, little low-end and would XX. view at But no it’s XX growth high. XX. be And – scenario, a to it’s at black definitely to it’s X% in Maybe our the swan, of our not XX, maybe none. we events are my as

So, our I Chem look be I forward with want CERAWeek, big not careful as to sculpt maintain I substantive. three business, and at flagship am flagship TPM. events. our to Those teams the very are Week, looking

now got support are climate dialogue. We that. the around We leaders to also

a put the bigger a will numbers. IHS be a there our customers in us be But will is if going never events it’s tempered But, personal is to to. it or we than for of a events And us be more be We’ll world-class meetings forecast you a total prepared XXXX. small Jonathan? should view lot to vaccine gatherings, want virtually. not I that something face small We for numbers, Markit. trend in where reason know and that’s that have to go. lot But a hit our back will to of revenue you is will get of

reflected we our while day. QX the we always those leadership thought not branding the the the net point I about industries has three is, EPS said you revenue financially, That us to are important flagships in end still that and And talked the had cost. result losing frankly important we profitability the all of having a Lance events impact. events, on all one at are reasons, themselves community $X.XX Yes, think of the particularly as at this of serve. cancellation for was within you the said, to Lance those But announced

Dan Good. from to world outstanding Thanks, They’ve conversations events, world-class just sure are for can Jonathan. our to Yergin, say, teams who, virtually. dialogues. of have leading events be all energy that and at see a at I done what the But I And catch in supporting And, it’s they it with those to leaders an that do the I our having markets we CERAWeek. just minimum are – to they customers along everybody is say online key Jamey now happens. will Rosenfield leaders, virtual and are make founders let’s focused job CERAWeek are go lead thought and the on and right

Next question.

questions turn am time. any you. Boyer the Thank call to like And closing I further at would to over no this showing remarks. I back Eric for

Now we thank you…

Before Just want just to Eric, word. before Eric, one say I you last you go, go,

great could strong you, they great, able The thought know say from been and been shareholders I fortunate. around we’ve not companies and – team our haven’t strong a are many as customers, to having the firm globally say have life. that navigate with I’d first shareholders for people never thing These throughout working I have our to anything is times. given in like have And tough I my experienced thank support to us. this you the I are like

once providing, help that also shares be return waters And challenging thank by for transparency are do we that very have able have want well and I I But lucky fortunately in feel want get through to you you the up able we that been what in. reporting investors the pre-COVID well we’ve But I point, our to say, market and to I I couldn’t our done supported do. navigating this. performing all we to you that we that. us hope navigate and to the are with leadership So, our ourselves to I know levels allow been teams that through will feel to to just show

are are to Also I U.S. support forward challenges black And that I So, thank support that a all employees. their for of firm around in us I those firm making again, action-oriented communities all are out me. am And the be change we particularly happening been close – appreciate want colleagues the much. helping strategy through to front Markit. the we setting of from our you appreciating out all we to have to IHS that’s once us, we very some thanks the and all dealing in the of the at in want colleagues that in where

you. thank Eric, So, want do close? to you

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

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

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

may You disconnect. now