IHS Markit (INFO) 23 Mar 212021 Q1 Earnings call transcript

Ladies and gentlemen, thank you for standing by. And welcome to the Q1 2021 IHS Markit Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today’s conference is being recorded. now today, hand Investor Eric would to conference Relations. I speaker your Boyer, Instructions] like the to over [Operator Head of Please go ahead.

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

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

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

pause the of just friends Okay. love may over before the moment to passed been year. we all passed place family at in Eric. of to Thank just And our for This and do respect a moment have moment for the I’d from people taken those passed the And all and like those have that COVID have that past has and pandemic. know a we offices. UK and silence we who call, through you, start here away have that

take So we and silence just could started. a then moment if get

of Okay. for thank us margin Thank was set pleased Eric. expect now adjusted of you. the guidance. XXXX the basis you, started Adjusted year $X.XX Overall, earnings the provides for XX.X%, of with Markit And $X.XX, growth the a to organic in joining call. QX year. Thank QX of for which $XXX year. full revenue our we you upper up great results deliver billion, X%. year-over-year, XXX QX half with the and foundation of strong a very results, IHS We of points up the an our year start over million EBITDA EPS are of prior X% with and

Services well Within included services, businesses. growth our contributors pricing, for Main terms increased valuation of quarter organic verticals, reference X%. Information in Financial let solid of demand Financial data industry growth indices as organic Services, SFTR of our had In XX% of and as and platform growth our reporting first with which segment, our had start QX. me record another core in continued

capital Solutions actions, our across market performance XX% all offerings markets, a of and contributors. significant Solutions and compliance corporate and by with our had strong solid adoption very were driven growth, private greater organic quarter reg issuance Increased businesses.

growth the large expect to be We for year. Solutions contributor full continue a to

grew as Finally, organically, our Processing and business with strength expected. in performance X% loans derivative

time XX% X% higher want to of I a organic we record to and the record IHS on Services went that be our to since year, end together That's had the For Markit just team we XX% congratulate first quarter. the Markit growth that the Financial full targeted now public X% expect in range. quarter.

to congratulations everybody. So

had growth Transportation, X% on organic QX. in revenue which improved to to Moving

As continue at expected, we to see varying across our rebound the businesses speeds.

recurring quarter. growth revenue improved X% see particularly We’re the in to to pleased our

facing CARFAX and pre-COVID rates experienced across automotiveMastermind, facing approaching strong dealer with Our growth growth dealer revenue levels.

New business across Trade Maritime very remain strong in we portfolio outlook was line in year, the QX, good was and in had of which Also Transportation, the for the our a to our confident the rest with start the & about year. expectations. business

conference TPM virtual successful a hosted in also We March.

new recurring growth performance retention will business rest acceleration year. an through and revenue drive We strong of expect the the of

be the now Transportation’s to which growth range, expect is XX% to XX%. our For organic up from XX% in we the XX% full to year, original

on decline QX. Resources, organic negative where was in to Moving XX%

In business is XXXX. place expected. help put as XXXX, playing into Resources return should the we conditions, to drivers out a that in given number industry us of growth Our

for for XXXX QX As which recurring expect revenue. of ACV through and expected, rest our to bottomed it the year, has in slowly well the bodes recover

should XX,XXX were future growth and through the with in leaders the together technology the organic of we year. world bring expected able of Even the conference, CERAWeek to participants. event, accelerate finance of had and discuss energy. revenue downstream which rest virtual as over Our our In to performed energy March, the beginning industry, governments, the held we

down compared In organic to to improve successful we We continues revenue Conference. continue trajectory. upstream and its as in virtual single XXXX, expect World XXXX Petrochemical results improves to a be digits, year-over-year within downstream growth and low also Resources to hosted

negative growth line Finally, in was X% CMS the organic of with for quarter. expectations our revenue

We Product TMT through expect continue across to results improving and Design, ECR year. the

organic deliver mid expect still full growth. the For we single digit to year, CMS

Now Global merger. Markit the S&P overwhelmingly of on and IHS approve shareholders to both March voted XXth, the

still with I’ll second are turn expect And a call to close. the now relevant Jonathan. half bodies We working regulatory and the over

growth recurring revenue Lance. X%. Thanks, total with of of $X.XX. billion, Great. organic increase income million X% of $X.XX QX and $XXX GAAP X%, and which EPS of revenue of results represents growth of Net included

XXX we also of increase $XXX with EPS this margin adjusted an million, of basis EBITDA expansion XX.X%, And of of $X.XX, X%. an margins adjusted points. X%, delivered increase of Our of represents

non-recurring Regarding to primarily revenue, recurring decline OEM our decline organic X% lower and activities, purchases driven X%. of last consulting X% lower by of QX was transactional product organic and and of when design growth for of non-recurring compared This QX activities, content automotive growth included in upstream energy organic year.

Moving segment on to performance.

of Our X% recurring Financial organic Services segment drove in XX%, growth quarter. including the

loan and XX% increase, X% actions, driven portfolio Solutions, in and delivering our corporate performance, information particular monitoring in by compliance had capital core management and activities, strength pricing respectively. and strong markets, tools, strength in reg from organic had growth, equity organic offerings, a and and while each processing market primarily valuations

X% by segment of This included activity businesses. Our growth lower growth primarily organic by in continued QX the marketing CARFAX recall. revenue growth declined strong as our quarter. X% in of digital Non-recurring driven X%, automotiveMastermind delivered within and recurring, Transportation had and

decline. ACV last is have organic Our which $X American our a XX% severely year. as the through Resources decline month non-recurring decreased cycled decline, our XX%, of since the North in subscription of million by we XX% largely recurring comprised energy is X% end the QX renewals down XX was organic impacted at segment and had trailing QX ACV organic and quarter market

recurring and Our X% including X% decline a non-recurring. had CMS segment decline, increased XX% of organic

prior up up EBITDA points. million of Adjusted to EBITDA Moving XX.X%, margins. $XX million, $XXX margin profits basis versus was and XXX Adjusted with grew year. now a X%

points. of Financial a million, $XXX up of Services strong segments. was XXX adjusted Moving we quarters, XX.X%, on a adjusted basis margin result points, up adjusted expense points. $XXX was to XX.X%, a down EBITDA while of margin million, adjusted of margin driven forward EBITDA revenue $XX XXX was Services in growth. margin revenue moderate continued XXX to a with of investment. XXX tied see lower a million, revenue. our as do EBITDA - expect XX.X%, million, by Transportation’s of to with $XX as growth, points. with We to decrease more Financial margin basis a was margins with basis was XX.X%, supporting CMS Resources EBITDA basis

expect mix X%. primarily an This was the driven improve $X.XX by year. per Adjusted of during shift, increase was which share, we to decrease diluted quarter EPS

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

our lowest As QX free cash is a seasonally reminder, flow quarter.

balance the sheet. to Turning

was approximately covenant and cash, basis ending X.X our X.X on approximately bank times We closed [ph] revolver of $X.X balance of $XXX billion. a of a and QX and was represented Our times leverage balance gross cash. net the million billion, with ratio debt undrawn QX quarter $X.XXX

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

shares. the share repurchase As we with other based repurchase of the QX, requirements to our currently therefore, Global withholding compensation. tax agreement our And shares purchase share our program restricts associated suspended, for in with for than mentioned is ability S&P merger

including X% EBITDA XXXX our expansion of guidance X%, now include results half great revenue, Moving an adjusted X%, start adjusted with to revenue billion $X.XX growth and in of to adjusted deliver billion, billion the EBITDA $X.XXX of following, guidance. EBITDA expect adjusted of to $X growth basis for to to FX, EPS recurring to ranges, to and XXX X% of upper when with of billion, revenue margin organic organic adjusted points We a $X.XX year, adjusted of $X.XXX which the X.XX. to had EPS the

mid turn cash back Finally, one-time XXs to And that, Lance. will lap with over cash in our impacts. expect the as call conversion we we the XXXX I

colleagues year work ready us on want that, for continued their questions. for we we’re results. the start which focus the strong dedication It the merger with Global. Thanks, up our puts a Okay. closing Operator? deliver S&P was during great Jonathan. challenges towards to open as thank and XXXX, full pandemic to to of exciting I With and to track

Instructions] [Operator Kevin Our from you. with first Suisse. Thank Credit comes question McVeigh

You your question. may with proceed

Hey, of the think gave business does get could that impact detail want core growth the on Thanks organic you Financial sense Financial good in business? congratulations given it strength, the side non-recurring. balance the just you episodic as was a And issues Jonathan, the much. overall the of really step-up Great. outsized you XX% And Services, for But growth as Services more to Lance just over or overall, unpack about year within of, it you some and think maybe as about results. business? there. great structural really on both then the that a non-recurring the Is that so

were organic referring XX% Financial Services you - to you're growth? So

Lance. right, That’s

Yeah, breakdown. to just take the

XX% are and breakdown the strong well. the give I’ll that he Adam? what where as real a Adam the on parts go-forward Okay. pass and he bit to sees can and of you

Sure. Thanks.

we’re saw and markets, seen a few with in capabilities the very expect capital strong equity a some We’ve that to QX. platforms quarter. the built of do obviously strength in particularly really So strong quarter. pleased you year, first We markets have through that yeah, very strong continue throughout strength

strength seen We’ll as well. look And balance some the what see to the strong. markets, continues in the of brings. similarly, quarter we’ve of Second loans year

the the So about we rates to we’ve continue the higher targeted, that of targets. in feel pretty grow good towards at businesses. core those ends cases, They some

of addition future brings. continue our it’s us are like that to here. into opportunities quarter the product We’ll deliver - when strong what say, really to take know, you double-digit strong. gives of those the opportunity advantage the a I’d With about markets capital positioning see future. we’ll we just the love markets, did But about to that the

Okay. has performance to Also, managers we it’s really teams markets while. performance and great team. their structures been private XX%, cost see And across seen the to hadn’t for back Thanks, strong a as are a assessing tailwind which generally for Solutions Solutions Adam. the the asset

all So, around. great results

question? Next

you. Thank

Patnaik Manav from with Barclays. comes question next Our

question. You may your with proceed

morning. just years. from CERAWeek Good of maybe was X to I next when over and key years takeaways couple the X help you. the look you some out Thank you Lance, of hoping provide could

was could insights obviously hoping know, some a what figure of just trajectory You And out help those lot Resources is? the I of there’s for us movement.

Yeah.

great a question, that’s No, Okay. Manav.

strong play first And in So around big discussion agenda the pathway. guess positions for around that’s with from with and which the how was well to COPXX is transition. industrial will the transition, the And demand now upstream real think discussion That the very, for the energy shift important transitioning business plenaries their the they an clear how being needed, change. towards you think very look And responding look new to a need IHS a you associated the formation support provision with to as that of is XXX up, fossil come businesses see barrels a for XXXX. crosshairs step what energy of know, administration, away world’s might energy said, discussions at for post-COVID the support continue X.X is you that to day the climate in when I is the start you as gears million the strong participate about of CERAWeek, respect fuels to it to still from of I coming level needs and be a the in CERAWeek team degree going role that transition pretty therefore, off, energy participants Markit’s our supplied. Biden when the world growth in

to that I working team we leadership, are that’s thought and transition and win the world. supply, to upstream in required a think support our the So a to of decarbonize both variety a ways, expected very storage solar, wind, hydrogen player other activities solutions the itself through hard

think job. I we’re So doing a good

XXXX maintain bit contracts through I longer energy we’re sung a to a well-positioned price. of CERAWeek think to new ever and our than the to story really think me, lower get we’ve and stronger that has. I transition managed to And term it growth

slightly I’d into want expect year. single growth through And all? go we’ll XXXX. you at see so, digit And that to the we Brian, to this do add negative mid as impact

No. a the Yeah, and transition, I we’re in physical having in I looking to and event the But, all next event energy event. hit physical carbon just ESG, you India, points capture. a did into clean virtual high of think course, forward great a And migrating tech, know, job team October you’ve think with the March. taking

we’re All looking to forward these position our of a that customers them. are good things to, help in

Thanks, Hey. Thanks. Okay. Manav.

question? Next

Thank you.

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

may your question. You proceed with

Hey, morning. Good guys.

if your or do, cost maybe synergies got it to asked continue more you you a Thank relates you just the guess most where I thoughts on some side? is merging bit I see us with to S&P, within the know, you. I to merger Market run more pending as get on wonder on color for Financial big question any of opportunities side, the he just slated within the Adam a segments. business granular color to is give revenue on more more So importantly either Lance the or little Intelligence,

I’ll side I cost Teams maybe on the hand is we start teams been out. to fruit of out. he the post-merger Well, have is The index can making And my are equation has very Adam low-hanging to sure couple is And synergies. one side, in add then exciting to opportunities engaged revenue But results. substantive side they well. want deliver can Okay. that and the right both the are Services, and aligned, opportunity I over very years. course, well integration say start, the can that’s you are given meeting and mapped regularly. Financial next and revenue of the focused that that started discussions. Doug view is the them the that Adam, that see probably as to you for map spoke about. teams They for And thing chat, maybe in And of

I scale when in And it’s franchise, core bringing that the the assets index and customers of and efficient capabilities we The continue Yeah. then, make capabilities talked customers. manage into and areas risk significant ESG be credit to Doug by together play equity and in an delivery private a industry to data really our in to multi-asset as identified a available and underlying the our looking tools ability areas merger. used supply of to those strong And back credit benchmarks markets, the whether of and can combined of business, class Those the and chain financials, around set the to customers. of growing well area their company more Lance that the are of quite of upfront that as would about rapidly, assets it were role knowledge the opportunity, refer core you to private private in course, portfolios. deep data

be proven quite the identified out through So as of a discovery, to extended for were we’ve that all of us areas forward. upfront, opportunities period gone significant more

I do teams It’s think will views still the on that. to our update in synergies. months, coming publicly early the

phase. – We’re we in know, have expectations dug regulatory it’s period in a out. the more, approval as all had discovery that you still and still more a of But and in we proven

you. Thank

Adam. you, Thank

Next question.

you. Thank

from Our Baird. Jeff comes Meuler next question with

You with may proceed question. your

so and good Question that looks Thank recurring Transport, comp, price me lift Yeah. a I year think it’s on particularly the effectively given you. two business. tough a lost that in to still you or

improve So driving is digital Thanks. an what’s is more then for? back they your some And on that to product initiatives marketing, perspective Mastermind is in haven’t in watching or of the we should suite cross-selling there that’s it be business that yet, factor environmental where just from the leaned your or resulting broader positioning that?

Edouard?

your are And growth. our of hi, Right. question. is right, And Jeff. the Thanks revenue quarter for the recurring you story

the to the you happy offerings, at subscription offerings, growing it look CARFAX It’s are with - I quarter. significantly showing these driving What's core supply should shows the We’re chain look businesses think some the the in products, at if underlying Mastermind it? And very like core developing our if you right? our and it resilience it’s plan. the it. and the technology, of according you and if first strength at all strengthen So good year. look of products business, throughout or are of

today, inventory rebuild resumed low what of that? so But the ago. On supply reasons, spending quarters to subdued for American will advertising is A and this has still tends least. and levels when where industry in see advertising be. we catching And is to levels. chain of seeing digital is couple spend pre-COVID it was coming are and is inventory three levels in seeing ones be not the where is still or digital we to yet to at one quite The back is that’s lower. the trying big particular we’re we’re inventories. low, side, in would marketing spend couple Why it advertising And quarters two still of relative to the next inventories the it not spend And marketing but why market. North up like

strength are the in business. We seeing

activities quarters it was We two are higher - ago. far than

digital So year stronger marketing to the be by. as we expect goes

Thanks.

Edouard. Thanks,

question? Next

Thank you.

question Kramm UBS. comes comes with Alex next from Our from

with your may proceed You question.

bit about good a expectations. It Hey, small better, since your other updated the impacted You of guidance. has and also how quarter. the FX change? in automotive the then [ph] But with A in outlook some talk I kind to of one currencies you on got a line me opposite of direction. the little major first benefit and like in think, Can morning. financials quick kind sounds business is doing moved have then,

much, So wondering, the range? guidance if the to how end higher the Thanks. driving benefits just are any, of FX

FX Sure. end answer certainly This on Jonathan. [ph] are That the range. at is, of the we're I’ll guidance at upper jump being question. that some some top-line getting of of the forward We about revenue. benefit will words impact the and saying

that from of Resources year lot is [ph] that operational and Transportation the we’re that outlook the for for we improvement see seeing - both continue AFS and the to CMS. rest just However, of from as core also the

at get Alex, FX, the you You does a our should know, from also end note, top because impact it from we expenses. - benefit

both of and And a expenses. both, of – is impacting so improvement seeing really from revenues FX reflection as the EBITDA you’re the

flow and core I EPS improvement. operational would is through So the EBITDA call

Very good. Thanks.

you. Thank

Jonathan. Thanks,

question? Next

you. Thank

with Andrew JPMorgan. from comes Steinerman question next Our

with proceed question. your may You

kind off industry yet? the Hi. IHS could has nature what of of the business, business lifted of terms other non-subs non-subs? Consulting for what doing in business non-subs industry tell Energy as like you is Resources, if the and And us, the bottom the is Within recovers, the

Brian. is This hi. Yeah,

have we because, consulting, we’re back. consulting business when is already us, So consulting double-digit is is in forward, following. a bouncing the which for yeah, so on the to - your good going subscriptions look - back, having bounces growth even be out then When upstream you sign usually,

you. Thank Okay.

Next question?

you. Thank

Hamzah comes Our from question with next Mazari Jefferies.

may with your You proceed question.

be as was the My for know mechanics with JV? And, assets question relates JV sale. about, morning. on just Any that listed merger? serve particular the thinking CME. have Hey, it you. Thank around that you. as you Thank market to good should we of sort I larger

want you to answer one? Adam, that

Yeah.

the value talked industry in not of combination wasn’t a a around data much to be couple for connection the we've will of the sets pull continue that's that We’ll It to was related of larger really making some in customers and done and think, part business. years, that about post-trade come more leverage look those for important continue strategy looking that I the an around the or with It assets to really it, part anticipation core together merger. in opportunities will of our to processing in offerings. process terms efficient set. in that. of maximizing It and assets out of that to a joint

be no think I to but So it connection. complementary Thanks. direct to the continues combined business,

Thanks, Adam.

question? Next

you. Thank

Our next question comes from Ashish Sabadra with Deutsche Bank.

may question. You your with proceed

Thanks solid congrats quarter. taking on question for a my and

this Just margin expansion? the quarters itself? question accelerate within - further takeout was cost margin and more Thanks. opportunities for are on structural some robust saw of the changes through a My there expansion seen IHS is Markit margin question quarter, in expansion. And several the we this that we’ve

can you start, I and can then Maybe Jonathan, add.

be especially Resources North America, and operate virtually can will - this of the merger, the strategic continue that India, better a opportunity Europe have that view And new to Resources, on of IHS a Eastern some Markit, we in to and to at world, East. within in. that with virtual the that America, within off, the Europe, see carry see strong we first understanding cost South So, locations is Far through there

offshore of locations. have to better cost centers our All or - major close proximity some are on

a plays So big location role.

thing that for us also use and The the operationally-focused and opportunity manage technology is continued of that’s expansion. a to role technology margin more increasingly gives our big playing second jobs

the add opportunity want points continue there look of to for we as Jonathan, combination that as at in you we a to see we XXX can all? expansion support. So basis one to year, that be that do will well. forward, margin margin And as

Lance. No,

really just always of top levers we I cost But, that really, think you you it well, the natural course, on covered I of to the path guess, lift. the benefit other our which thing through, scalability of is, see the I comes we add of pulling, said well. I’ll get basis that Lance, XXX for revenue as that at suggested this year. helps clear points it it as think, with very you’re

Thank Okay. you.

Thanks.

Thank you.

question? Next

Thank you.

next Our question with from Rosenbaum Shlomo Stifel. comes

You with may proceed your question.

future. morning. Hey, for Good Hi. the new can Data and you is just product there not, momentum you’ve the give innovation how Lance, the you qualitatively. like commercial Lake going? - for share kind my a stuff Some generate the to how the building taking us if question. like, the Thank can little of quantitative going more you info of any or, from, on years insight are that the into flywheel been going sales Is

the I’ve after Brian What as I and a Yeah. with hedge But pipeline impressed Lake add quantitative to and connectivity some from they reach the anything have qualitative fund bigger capabilities. funds the broader those making of that contracts, data it’s the have hedge new and Data community, Lake, consume data, those Adam, say know, around the to tools What you to from or way that Data pipeline, more can us efficiently. and of and assessment of vast quantities the especially decision the if some where Edouard can. is, want this, - growing been is is to also

a have for data, grappling seeing corporates platform their and with connectivity them provide and leverage own who our some own able to own. vendors [ph] a construct to, provide be Lake, distribution some where their been Data just We’re even to not for them mid-size their technology but they can as of us also

the So grow. revenue. do some [ph]. paying you're using then it starts Edouard? starting to customers do very Data AFS want and to maybe, are that for to on Lake add to you lead Edouard, now, to that. How automotive? discussions strong to want you And the Adam, might that same within There is

Sure, address kind about And Yeah. innovation. I’ll Lance. product point of broader the innovation,

X I growth. think past for use X think years. don't that story, division the with is the we has Transportation, measure I past we of index, vitality the And it. over products over a internally to measure after publish or increased - year the like recall right, years. the new metric contribution our X right? that But contribution year we We

essentially high repositioned and business products example, of has a strongly workflows, are the it become our Trade reduces the high and business, development been targeting right, growth transformation essentially you X assets. concrete Maritime an by an our single product a part which data innovations owned solutions legacy And cycle. data Data give increasing And the revenue But growth look incredibly always you a of Lake life kind trade have valuable compliance A number overall risk and workflows, business this management these To has growth. workflows. through into digit New a of kind at of in terms. it’s analytics products years, enabled commodities business. lot of past if over

to certainly a something? it’s Adam, So there. you I if know don't want innovation add good story

I sets the what their and uptake which excited our data customers about data add catalog, our been of own to today is, adoption sets. in guess into over sets would integrate Lake we’ve pretty I the Yeah. XXXX allows Data data

obviously, We’re and in in just asset the other corporates, managers, banks side. but parts seeing that of not also uptake, buy

out. those S&P And the sets, and you discovery and exciting data think have as we Data to data proving of and also paying about the their do within We had we’ve know, interesting and customers. aspects efficient of, believed of a our particularly we’re finalize how we the will their marketplace excited can Lake down customers sets road strong what more our way call amount ability how value, see that be vast these that’s merger I as pipeline that of and and data about more is together, for in all you’d One access come to think catalog forward. which always today of together our alternative really the the sets come seems the do adopt data clients

Thanks, add how want using for Lake Brian, you’re some of do energy, the and drive to Adam. opportunity? started Data to from it initiatives you the

Sure, yes.

one So - just to support all, what first of you said.

tech So we for can’t at information companies we’re products, companies both Data developing nice of, when do kind doing. looking perhaps they in clean into a see take what we’re lake the said, other get solutions other Lake the what banking and our and into chemical from go of customers doing, can looking places. - clean are energy, what Like we especially Edouard pipeline

we So good that our cycles like and shorten place things build things in. interested out where it’s emissions customers are can development life just a to product

combination of identify leading analysis. it analytics margin you. through everybody, exists competitive and terms for to to been own secondly, sets to numbers in that more building us opportunities that, that The bigger in managing expansion. edge the think over to to with of and that when things all real hedge sell back One, we the see our I would quantitative out ability data larger want within years. is a our Thank that content, the that us to there learn additive efficiencies significant that’s think corporate we’re give two points. able said of data Markit about distribution, large interrogate the of and But customers starting give also signals for just to funds, piece which would are who and us Lake decision and but to it customers merger, give coming third-parties And content. be decision-making Okay. world about some is I And remind distribute we us IHS Data the to our

on way our we’re starting think through to revenue as I and to gaining follow we’re see well. efficiencies the well the So

story. So good a

Next question?

you. Thank

from Goldman comes question next Our George with Tong Sachs.

You question. proceed with may your

business, your Hi, morning. thanks. the that in Good In trends strong Transportation dealers Mastermind discuss seeing are CARFAX. Can you OEM Automotive, you and customers? saw growth among

This Edouard. George. Yes. Hi, is

recovering you they that the QX QX, customers sort to different So the from dealers more the this. But a in really year they in still and if in of OEM slightly sense hit last them cycle had normally. operating COVID crisis will, are were the

are they today better. much So doing

is and demand the chain you up As world. the is significantly is to is know, one would I this in caveat that in still bring globally as adjusting The US supply for picking production. post-COVID XXXX, vehicles

have the the million particular well-documented, some our chain have XXXX of forecast issues shortages. So - And revise us down by X.X been led in those they to semiconductor supply vehicles.

So kind there shortfall a last southern of in a the ago. temporary has feedstocks. in in few of That’s There it bout the actually created a also in There slowing right? Western the weather other fire is challenges, chain. a are plant. shock of inventories that it's was US shock, down nonetheless. markets. severe of chemical is weeks So was impacting week And a semiconductor a but some a supply recovery That major Japan

impacting our of are So the end, of customers. the recovery sort these But the back. all in recovery, but is it’s delaying coming

those in the data are in these critical We’re supporting are good the suppliers industry, some solutions helping them. and transformations, are multi-year of and OEMs transformations our sense place secular that structural we to our in a and and with

So slower is the recovering for but positive. the and nonetheless industry outlook recovery,

Edouard… Thanks,

it. Got

Next question?

you. Thank

Kaplan question Morgan Our Toni with Stanley. from next comes

may with question. You proceed your

Thank you.

Sort of you, Lance. a question long-term for

a Your changes. number industry that spans significant through are going business of end-markets

products does help different within solutions and their just And about technology means become to less the shifting this new players, get changes And more opportunities as And maybe to are changes any a changes the place? Transportation, talked be I et does but selling customers, of datasets to sort I transition. about there helpful? there new what as strategies. datasets receive know more - customers, with cetera, your these shift also providing IHS? existing existing take this also them technology can enable to Thanks. this talk used, energy be Is demand? these within companies So Do towards up-selling to more guess long-term. take these mean you customers color would but you seems You’ve traditional this with place?

the change definitely that a good vision. zero are a we a strategic driven look for are in in decarbonization, impact around one for participating all question forward. and they and our a very encompasses being us by that quest team, And changing net focused technology world my – the on That's or Okay. as therefore, either marketplaces of that's good

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question? Next

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

your question. with may You proceed

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question? Next

you. Thank

Our next Blair. question with comes from William Andrew Nicholas

You may with your proceed question.

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Edouard?

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financial data proprietary So, monetizing as highly a Markit content. long That yes, progress years early since still the automotive the and and fairly stages X growth ago in the community the right? some community you’re assets. content made spot of we’re But to these in significant unique investment have IHS a We is on, valuable merger We whole. runway.

business. Market penetration look So, highly at be the But if valuable the very, strong potentially also pockets target. our there That one you very number of in are there other kind of order Intelligence customer investment will for community. the customers are is which base,

and later. assumptions idea some of working refine this the hard we’re that’s where So, to these more

Thanks, Edouard.

Next question?

you. Thank

comes Andrew question next with from Jeffrey Our Truist Securities.

may proceed You your with question.

focus around, to road? for areas the talk you any to FI Thanks. so, It’s opportunities see of you above Lance, top-line in markets the trend me activity do can squeezing investing robust example, mean, could strength those above per excess revenue growth growth? for back about remarkable support I thoughts [ph] into the business? I where you plough in you towards trend take capital down think if end. And the are appreciate

products to the and in Right. this Well, fund services the of the financial synergies there. so our you reporting our into there substantive see We in support We in like an those world markets, private and made And class can - invest investment side. administration to activities integration the that iLEVEL markets in space. start alternative know, one acquisitions of have admins we opportunities support made we year.

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Thanks.

remarks. like further call the now to for further And you. not at company I the would any time. Thank I’m showing turn this questions over to any back

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

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

now You may disconnect.