S&P Global (SPGI) 30 Jul 242024 Q2 Earnings call transcript

Good morning, and welcome to S&P Global's Second Quarter 2024 Earnings Conference Call. I'd like to inform you that this call is being recorded for broadcast. [Operator Instructions] To access the webcast and slides, go to investor.spglobal.com. [Operator Instructions]

I would now like to introduce Mr. President Relations Vice S&P Senior Grant, of for Investor Global. Mark may begin. you Sir,

Good today's are for quarter you Officer. and morning, thank and Chief Interim joining and Executive call. Financial on Chris Craig, President XXXX Presenting S&P today's Peterson, call Doug Chief Officer; earnings second Global

For S&P also Global joined the today's Martina by will portion we of Ratings. Cheung, Q&A call, be President of

today. a issued press We our earlier release results with

results and In have our additional a information slide supplemental with addition, deck guidance. we posted on

If downloaded need the and you copy a release deck, financial of supplemental the they schedules at or can be investor.spglobal.com.

economic The future matters Act in conference Any events. Reform estimates these on of are cause of actual meaning statements current forward-looking and risks uncertainties call from may projections, discussed current materially forward-looking in differ such and expectations within the statements Litigation results that today's Private conditions and XXXX, of Securities descriptions the based anticipated statements. including results may to subject are to contain and

concerning information filings can Exchange be and Securities most and these including uncertainties our our U.S. the filed Commission, Form with recently found XX-K. in risks Additional

release conference providing adjusted provided between the perspective periods call, information. the business In during view non-GAAP company's comparisons is today's as to from to same This company's we're information make investors operating performance and financial enable management. meaningful press the the of and to

The GAAP unless be otherwise. accordance such to and The of supplemental metrics, corresponds explicitly press non-GAAP contain the the release we'll and discussing non-GAAP with the and that release deck non-GAAP GAAP metrics refer contains in calculated noted we're adjusted measures. press measures to today measures providing, financial financial reconciliations

company. to to on X% of call more investor of the should Global also your the investor regulations. of expects Relations or S&P potential better the certain would this Any I contact or legislation to obtain understand ownership impact to European like and has Investor who attention

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that is However, Relations the intended be this media be call for team, ask to found information in Media and directed whose contact can we questions from would release. the investors, our

this I Doug to to call turn the At over Doug? time, Peterson. like would

S&P quarter an as company's history. accelerated significant XXXX margin revenue Mark. half our and you, quarterly in incredible first Global the Thank adjusted delivered saw in expansion the highest second EPS growth,

subscription company revenue XX% more to the excluding continues at the divestiture Transaction also Engineering in market outperformance revenue drive are common XX%, despite Total year. of growth. X% Solutions. than industry revenue our year-over-year across quarter, that increased the headwinds Ratings this products significant across of all our in But our increased from the division some second

points demand our margin as growth. expansion We contained delivered of XXX year-over-year and captured XX% in growth basis we market EPS and expense

announced we you As succession CEO our moment. discuss plan, last month, saw which a I'll also in

launched cultivating just of our included we new S&P been Commodity second June the benchmarks coming than to innovation market we're The Cap quarter. in more pleased Global, enhancements, significant with We've product and release Insights. Pro the IQ the in leaders and at

AI deployment capabilities, We and division accelerate both enterprise level. the of our generative continue at to launched and new

close Fincentric, quarter quarter. and optimize in an to and Visible businesses closing continue also of the we in recent which products expect divest to with portfolio agreement third Alpha We our the of second signing the to

of $X each to the quarter, developments cover get our in rated more second this quarter. billed customers. of strategic than key we trillion that pillars with in issuance S&P Global excited our We're beginning X

quarter. Revenue in S&P from markets year-over-year than credit Growth was increased the risk. assessing Global in the for public participants diversified services more second in market increasingly private to across rating as private XX% markets, and expertise private turn

solutions and to $XXX million continue to products rate nearly second We create achieved combined incremental Global we for of synergies. sets new and run the customers. the create quarter, our IHS Markit In of annualized data value S&P revenue from

achieve As we're Chris us XXXX. will discuss targeting in in to the the pace ahead in synergies revenue million $XXX this moment, a puts of

that able to these we're the market our despite of impact continue results, well-known to that remarkable business. It's deliver strong pockets headwinds

and Our tailwinds. diverse overall customer often stable portfolio financial more headwinds base offset the broad provide product for by can as company for performance be

were As slightly slightly in was largely Insights. dynamics initial in lower our not are last than year year included renewal quarter, an this while last renewal Intelligence Commodity These higher financial and rates in were market example, Market guidance. impact than unexpected, the rates

their we our help This align product our was ways cyclicality, to data innovation Transition needs differentiated our macroeconomic customer Despite goals to from Energy offerings. the and growth Private find quarter with Market demonstrated investment ability in and acceleration by second to achieve & continue using offerings. our Sustainability and in the customers our further revenue product Solutions

second to year-over-year the billed back It quarter. increased XX% issuance. in Turning

to continue to credit see tight market contributing conditions. We favorable spreads

We to environment. lent of issuance also that macroeconomic in indicators, strength the North have in the modest saw America, important improvement some particularly

and We robust in with see investment-grade growth finance, strength continue particular high-yield to bonds. in structured bank loans along

issuers future uncertainty Refinancing XXXX well some saw refinancing half This as as issuers refinancings activity back year the we grade get the out-year wait in of the see and around we maturities. quarter XXXX leaves into was from very a maturities how XXXX. pull much strong of pulled investment-grade speculative to forward refinancing issuance as as

Ratings second in continues than the business. This transaction half view billed in softer that first inform will be the half to revenue of terms and our our issuance

likelihood With a of in assumes decline year-over-year the the fourth quarter. still still and modest case market base in any uncertain, U.S. our issuance the in rate cuts timing

Vitality. Turning to

CARFAX & of for listings demand revenue million generated quarter. products Key we Group. $XXX Index to quarter enhanced XX% Newer reported from CARFAX the unchanged the our improvement the and are an Banking see second represents contributors from XX% This last in and we quarter. our total Vitality as last strong Insurance

our transition from and bonds products energy division Ratings. sustainable growth strong Commodity climate and from see Insights also We in

As thematic- matured key and Index several valuations as pricing the last indices well out contributors quarter, Vitality as recall you'll of from at the factor-based end and from data our reference year. the of of the our Vitality by We're at above innovation of XX% maintaining target. the of Global pace Index to the S&P look or continued encouraged forward and acceleration

to second of in we thread expertise platform commodity to innovation, running markets. As Platts massive a AI. and Dimensions Pro we're many platform launched access quarter, products look the to Platts with Platts Connect, a Connect. the amount our In power common truly Launched global we examples new the is that as data, research Connect bringing ChatAI market insights of on enterprise provides to a generative combining IHS the through of

need users ChatAI powerful knew find With the of depth daily is information navigate in and customer an critical the platform, to information way intuitive and breadth a their that workflows. would the we would Kensho the a to through them Commodity make uses developed generative AI data necessary informed, conversational real-time of partnership queries provide to tool faster and quickly that help to models decisions. to to find Insights user be responses

In assessments market. Insights addition to interface, to price new bring benchmark continues to Commodity this AI-powered

These report our to beef for daily with poultry Our introduced assessments market. in continue strengthen and assessments agriculture new well broaden the price daily proteins for a as up-to-date as price and Platts coverage position of X X team commodities.

second year. including internal our enhanced functionality model countries artificial platform we've internally offerings. demand We Spark tools, years. With new going functionality XX,XXX enables develop modeling Approximately which people continued to Assist the intelligence, focus building earlier our a our enterprise S&P XXX scenario few our months. this global Spark for are energy back over transition scale after Assist differentiated introduced just of new on XX We also in short in in the deep energy than datasets integrated in using to we significantly now quarter, and continue using more energy

scalable be those we with vendor-agnostic, we're platform share As iterate and collaboration and use is developments company. on effective, to to encouraging enterprise, designed By across quarter, secure the across last design. time-saving the this shared cost quickly cases able by highly you

documents. for empowering to to to employee also Spark feedback and and more We're rewrite that what optimize We've users S&P act town effectively files halls, it used surveys already to matters our seeing and people. most configuration on migrations our through aggregate received leverage summarize and software Assist we the leadership complex engagement ideas code, digest

approach models. Leveraging vendor. We AI to using the shortens innovation sources LLMs crowd-sourced taking technology developing locked tools to a believe this new single us from into gen applications time to place the multiple ecosystem allows the discover being develop rapid and without across from benefit

XX platform. our Cap the believe the it fixed from makes strengthen will the competitive more million IQ value fixed income that readily which platform position create meaningful IHS fully release data securities enhancements we customers. of Markit, June Pro and brings data the than We through government to powerful agency available and Lastly, our integrated corporate income for IQ brought Cap and

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brokers. Visible without the on feed contributing that the via world. from over customers XXX in of it. financial Alpha analysts estimates frequently us the anywhere X,XXX joining compiles call, their hear they analysts, Visible detailed most has consensus most detailed We Alpha available do not from With including highly this models over comprehensive could direct and contributing jobs

increase and we've S&P X% partner last the brand of and markets financial Global's a trusted S&P doors months. equity, asset in Global's strength teams, number banking X a the consulting contributing relationships, management is the for seen driving the opening and of Leveraging in brokers research. across commercial Alpha private position penetration already and further just Visible in and as

generated see leads to conjunction numerous the opportunities We leverage XX We closed In Global deals forward datasets and over in the new in S&P content. the unique platform coming create to differentiated deep sector Visible Alpha addition, to sharing look throughout developments already. sales we've XXX quarters. with

of we June, we Ratings be the November announced that very S&P second XX on will listed under Global strategic that effective of XXth X. years we in announcement President made Exchange since of and Lead Sponsor CEO as Now Global Inspire. a exciting X Cheung, the comes role CEO quarter our become President my were the over turning and New In S&P will pillar, from I Stock York ago. the to SustainableX, Martina retiring and fittingly of

succession with a Board unanimous decision We of Martina designed, are see over as the to focused a months strong results development pleased it I'm leaders few transition work comprehensive I our strong from next before way takes our work was Directors. with in November. plan internal of she on very on delivering over the plan resulting

adviser meeting of I'll November. and is to get on until As Martina shareholders Directors the next hard have end and joined until might of the already seen, you an Board the stay on XXXX. working for as Board has ready the

next We the transition the outpouring support to on but from have and more and see quarter, been will to customers, it's employees appreciation wonderful for of shareholders. Martina say

saw results. Turning expense to increasing continue basis, And have maintaining on financial the a revenue XXX market meet across basis quarter. expanded points. growth division, We growth demand, every in we by XX-month accelerating With our our to operating trailing while we strong discipline. margin

our interim you. CFO, review results. let to Craig, Chris, financial me over to turn the Chris to Now

of XXXX double-digit growth achieving the quarter with Thank X exceptional divisions entire We operating and performance across finished both of X revenue you, profit. with Doug. second in the company,

also quarter. which And areas, grew revenue second on shortly. by of earlier, we the parts investment are XX% strategic to seeing performance Reported a benefited strong our market-driven Doug touch $X.X highlighted across businesses year-over-year record the I'll while tailwinds from billion in

was a growth, This earnings diluted revenue Adjusted fully to a margin of our XX% increased in of combination diluted share per $X.XX. year-over-year driven X% basis count. XXX reduction expansion share points strong by and

all across for offerings. I'm advisory where pleased strategic services transition growth Sustainability revenue initiatives. grew million saw areas, demand in we quarter, and to Now by to the strong investment Commodity Insights' turning report driven XX% & to accelerate energy Transition Energy $XX subscription

leveraging Our SustainableX expertise to expand industry team customers & Transition company's Sustainability continues while broader Energy the our cross-divisional offerings, to with solutions. provide

revenue $XXX iLEVEL. our Market Private Private million. and Market products bank XX% Intelligence, was increased ratings Growth like and CLO In driven loan debt, demand Solutions, which within by for includes Market to Qval Solutions by and

with For revenue synergies, second annualized rate exited $XXX run an quarter we of million.

we $XX from the synergies, new recognized of from activity and revenue During in quarter, a which million revenue mix products. generated came cross-sell

the value divisions. quarter revenue second impact the our previously. we're when that content excluding impacted of the grew capabilities, and markets the in by quarter. Growth we've market data. our Intelligence including the customers was focused Alpha X%, X% the new adding for softness in Turning fixed securities introducing or and increased Market on end to from by financial recent the highlighted income Desktop integration in X% continued services Visible acquisition. performance improving Nevertheless,

Data by & and grew company driven offerings. Advisory industry product of expanded and in coverage the areas high-growth continued and investment our Solutions valuations data market and data X%,

as our and such market XX% and markets group primary ClearPar loan equity as in grew stronger were quarter. beneficiaries Solutions Enterprise activity platforms debt the of capital

business purposes, it's Enterprise line note the Solutions important Fincentric. modeling For that to includes

of Solutions RatingsXpress RatingsDirect due IQ distribution and user demand in Europe. Credit grew and Risk & also Pro. for America North benefiting X% from platforms adoption RatingsDirect is our to Capital

an by with and expenses acquisition, increased services. Visible driven impact offset headcount in Alpha primarily reduction compensation a in the and by year-over-year the increase of X% expenses Adjusted partially associated outside

increased XX-month operating basis XX.X%. points profit increased XX XX.X%. Operating points expanded margins to Trailing X%, and margin XX basis to

grew Now the bank XX%, bond Ratings, mandates, due Transaction an return second increased growth revenue primarily annual from internal we the in quarter, to turning revenue increase an high-yield by by which to loan and new exceeded revenue fee revenue XX% where saw our X%, of issuance. of Nontransaction in fueled issuers. expectations. in increased and increase particularly exceptional

expenses Adjusted increase point as a resulted strategic This basis profit X%, incentives including to well an investments margin operating by driven higher in in increase XX.X%. in in initiatives. increased XX% as and compensation, operating XXX

For the margin months, XXX points expanded trailing basis XX Ratings to XX.X%.

double performance with Insights. of Data Commodity Revenue Price driven and now both increased business. strong Energy at the lines Assessments fifth quarter all in digits. Insights And business marks XX%, turning Resources to & Notably, by across Price our consecutive this & growing double-digit growth Assessments

Resources XX%, & Energy & Insights products. and strong XX% businesses Assessments grew performance in refined crude and Price Both Data respectively. and from benefited

subscription favorable we Asia. and including across continue sales addition, In across see commercial segments, Africa conditions East, both strong to Middle

in trading acquisition. excluding activity, energy Advisory transition-related consulting XX% & strong across volumes the exceptional Global initiatives. pickup quarter, Services by Trading Transactional sectors growing with for a Services had when from revenue XX% Hydrogen key or the World Leaders an and is impact in driven This particularly

investments, X% well grew improvement contribution our as meaningful Upstream year-over-year, from from continued offerings Data organic transition benefiting energy upstream as including by Insights retention in & rates. revenue

low we for year, full Upstream. the growth expect For single-digit

Adjusted costs, X% expenses growth the acquisition investments compensation Hydrogen World to increased initiatives Leaders. ongoing due higher in of and

XX.X%. to and basis increased XX.X%. profit for increased XXX margin basis by XXX XX%, operating XX-month points Operating Insights to by Trailing margin points Commodity improved

listings of new Now business or aftersales X% in divestiture driven success Dealer CARFAX. turning increased as year-over-year to and continued the business. car new the Mobility. by XX% X% in products growth the excluding Revenue impact when increased such year-over-year, revenue of

on our strong in the revenue, period. activity given by of in which particularly any modestly business, sales. of fluctuate by another level partially in a X%, by recall can transaction This declined recall offset decrease onetime driven was based Manufacturing subscription quarter

from Financials historically increased XX% underwriting as Other & the benefited line business volumes. high

increasing to in XX-month the X% partially margin increased to in for Trailing and to basis basis by improving operating This strategic XX initiatives, compensation margin XX.X%. expenses XX.X%. growth contracted XX% by in XX operating reduction points Adjusted resulted investments due by profit planned points offset expense. a incentive quarter by

S&P Custom which and in Indices. increased higher to turning strong benefited from growth due our Jones Data Now offerings. Subscriptions AUM XX%, to growth fees, & asset-linked primarily Dow in Revenue

Asset-linked were inflows. fees XX%, and market appreciation by driven up

inflows excess ETF Impressively, the highlighting market $XXX a for basis, future shift the on opportunities XX-month global passive trailing saw to in of record billion growth. continued investing and

an by & increased Exchange-Traded Derivatives business incentive volumes products. increased complex year-over-year strategic grew Data driven strong our X% and expense. Custom equity driven compensation growth real-time year-over-year, data. X%, revenue Expenses primarily by and initiatives driven in by growth end-of-day X% increase investments contracts across in new in Subscriptions

increased basis points XX-month On a impressively, operating to profit points And XXX by XX.X%. basis Indices trailing to basis, operating XXX operating XX%. expanded by margin Indices expanded margin XX.X%.

holistically, Looking factors asset price to and across at Market growth strength saw businesses. the broad volumes we market-driven appreciation quarter strong the business. our in contributed like issuance

And workflow the investment benefited differentiated capabilities. continued data, our in content and business from our subscription lines

We of are quarter. profitable and with by the demand the disciplined pleased the combination in execution customer delivered growth strong

I And turn back now for Doug? Doug will with it the of the to that, half our second to discuss year. outlook

Thank you, Chris.

inflation crude per GDP of of Our barrel. average guidance X.X%, for assumes Brent $XX global X% and of financial growth price U.S. an

case in still XXXX. of second for the market continue assumes see U.S. be one cuts, cut our rate the fluctuations half We the to there expectations though base in in rate will

raising increasing XXXX the While issuance last percentage XX financial very similar the points. for guidance We're help billed for full significantly quarter, forecast to indicators we're nearly our are our by that macroeconomic outlook inform our year.

issuance to range billed prior XX% in increase XX%. Given we expect be compared in of half, the X% dramatic in our to to issuance growth now the first approximately

debt most volume mature analysts by the easily financing, interpreted presenting different to more years. several over have past and study We're this the of in hopes data examined the we than slightly of our debt next a in recent the set we way In it's in investors.

of compare years of months we Global-rated XX and amount more Here, July debt months, out in than so X last the years. S&P set as X mature the over the X X each next to on, of

you to is half prior very though what the of with debt consistent seen in we've mature little there years. over can set this XXXX, see, As is second

of activity in cumulative a on coming next several On timing us basis. predict the difficult to remains of confidence gives refinancing the a strength basis, quarter-by-quarter that walls the maturity business, over long-term though the years our

All new growth, stronger of guidance these calling slide free of cash. illustrates and factors impact year GAAP for This generation our results. higher substantial full guidance our for current margins

adjusted outlook our We're the adjusted the range of to enterprise the for strength in operating of EPS improved growth and X% second headline diluted from to XXX the guidance. now expansion for the expect margin We year once XXX revenue in on $XX.XX, all basis second raising and our representing half. a given quarter full the $X.XX again of prior metrics, points of range $XX.XX to outlook increase XX%, our

financial on strong from can guidance and up adjusted to $XXX the details flow year-to-date. found we've free approximately results release, for press million our but wanted prior $X.X that consolidated guidance our on guidance to reflecting be billion, our our Additional note increased also I cash

Moving outlook. our to division

in X.X%. of the quarter. reflects Our in Alpha, the following later from the we guidance which this continue loss for by of Market to unchanged, expect largely May, offset X% growth This Intelligence divestiture to of contribution revenue range guidance revenue closed Fincentric the revenue is and Visible

line the a while Market Enterprise the half, a the accelerate Visible which corresponding the in see the is particularly for reported fourth Alpha should second in second basis Importantly, reported for following Fincentric which in on in half in models, divestiture, reported Solutions deceleration quarter. Intelligence, business, should Desktop business is the

the seasonality, second Ratings pull softer place We're exacerbated business be took first, for year. raising by but performance. quarter thus the second following of reflecting believe our level the outlook this that forward far we substantially still than to expect normal the We half

slightly a both a billed favorable the modest second the improved year-over-year optimistic transaction For inform in fourth the quarter and quarter. revenue conditions Ratings and view half, decline issuance visibility more around the in market third and

Our the is slightly We're revenue and for guidance growth. range tightening revenue for guidance unchanged. Mobility lowering Commodity Insights

second morning, soft As last and in has half. recall business expect abnormally year-to-date, the softness we noted and that quarter to been this we continue the

tighter lowered X.X% business the difficult prior The range more and growth but means to subscription, X% the of of revenue compared the range to gives revenue is XX%. to that recall the is predictable, which confidence us predict, to remainder nonrecurring the recurring X% of outlook in

Indices raising from of we're in We've in growth division now XX%, in first revenue guidance also seen outperformance half, to our range to XX%. up the the significant again. our XX% We and expect X%

at are June. the Importantly, this levels from of end guidance assumes market flat essentially levels

Turning to our margin outlook.

Intelligence, while dilutive Alpha from is XXXX. in For offsetting, largely expected the net are Visible margins the to impact modestly revenue Fincentric Market to and impacts be

As such, to XX%. Intelligence we're lowering the a margin guidance to for XX% of range Market

by margin revenue raising to Ratings, partially guidance the compensation expected outperformance, higher we're by basis reflect offset For the expense. XXX points incentive strong

Commodity unchanged. guidance is Insights margin

For Mobility, prior expect the points of XX.X% from given for division now expectations in XX.X%, revenue we margins be the slightly the guidance. in basis to range down business, from XX lower softer to recall our

plan continue growth higher revenue and for expected business despite we Our the the are beyond. to for margin investing growth as Indices through unchanged, expectations XXXX position to

to I'd Lead questions. Executive for to over like Cheung, Ratings President Global call S&P invite your for turn With Mark of us. Mark? to SustainableX, back that, the Martina and I'll join

Thank you, first Operator, question. now Instructions] [Operator Doug. take will the we

Sabadra first with Markets. Ashish Our question Capital RBC comes from

Congrats to off both MI. wanted with Martina. and kick to Doug just I

about talk about there. the you're -- As if trend. the you sales was we talk wondering I cycle you if pipeline on about seeing what Also, could could think

it Visible growth we but the the going forward? acceleration in of Desktop underlying Alpha, Obviously, business just do from data that see the there. business info about think gap how And we all getting with the

Doug. is This Ashish. you, Thank

mentioning saw of And was something that me we for thank let we all, by softness that you start expected. the question. First that the

COVID over were eliminated As seats and since banks cycle. there you from the banks that were investment know, XX,XXX

We -- saw with inflation. come some up. the of business had softness XXXX interest that in starting underlying as spiked under see do gone back. They've rates We to

You saw markets, capital debt very equity markets. strong capital

of a M&A. be Some there that signaled return the banks to was investment of going

the -- do side, But we some within is large of a vendor we that the see sell basically about consolidation, talk the so there that don't slowdown banks, contracts. in there's negotiation

a So let about me of talk ways think it. the we few about

of First We strong we not know, enterprise contracts. as people we opportunity The you discussion, to at not all, seat. that contracts the They're data as by bring are negotiated enterprise and a have year. more vendor negotiated every see to more look single consolidation. have

As products our have. that our technology, we services and all improve we of enhance different we

about talk us new with products. been Desktop new the and heard we've doing enhancing by it with You services what

products that, turn of quickly to a let me themselves. with the But very couple

As was with Alpha. Visible the must-have Visible you know, Desktop enhanced a and Alpha service. is product

it. in We've said increase to coming is using prepared call on product. great probably I a the seen everybody in this people remarks, the As

XXX deal, the we contributing When brokers. closed we had

we over have Now XXX.

We release visualization of we also a saw really new that good from the Desktop, added. the tools new that with results the

-- Let at XX%. on Solutions, we what very with That improving. me by which also the markets driven capital the was other much one mention saw happening of grew Enterprise subsegments one other

Market many Intelligence. aspects as see, different to you know, we So

earlier said mention Thanks for last I The with guidance, we did we had question. this the reiterate line which our year. want is thing is what in to

Patnaik question next Barclays. comes Manav Our with from

just in on Intelligence. that up Market could I follow If

the I us help what's lost with contribution, from Fincentric? guess, you and, annualized could Visible both Firstly, from Alpha

well? of cleaned are lines, things those participation like along just your this And we as should could there anticipate up other Fincentric continued in consolidation? that in what And be terms there vendor

believe important for really Yes, is we allocation our us let me model. capital start with is what

that through looking know, that portfolio either our whole be that for opportunities of the sort through S&P that's believe some you consolidation, in continue at product stronger, to Global see to sales As -- technology, to we it's part of through important et to contributes the ensure really part we enterprise that of cycles, cetera. helps research, everything be

-- really this -- and Visible a S&P both -- valuable coming of for Global. was both Fincentric for were these transactions, Alpha will So we we that believe coming out in -- going overall

Now about when we Alpha the remarks, Visible I growth Fincentric and the X% that -- on you of about think adds of that mentioned prepared growth. roughly out about basically modeling X% takes

in segments. segment different the The Enterprise the also, mentioned I is Visible in the Solutions Alpha and is Desktop Fincentric they're As in segment.

you're to going slightly of on based So a coming rates in going see Alpha growth Visible Fincentric different and those in out. each

Financial To the have or bring we because traditional and and other part organizations, your the Market platform. vendor Not the the with question different discussions analytics only about strength across of consolidation second entire have of data we Intelligence Desktop incredible the Services, we the and do solutions.

credit, private information, We also investing private markets. have for example, which in we've been

and more strong a really sustainability important. platform, is which more We becoming have

bring across at make it relevant any Global services, from to S&P we're having as their discussion very datasets consolidating data relationships. look can data we So and people

Mark this. to is add to going

The make not be to that revenue sure to Yes. whole. company Manav, a here. -- Intelligence just growth were as we're about talking percentage clear we're Market points impact to the really

Tong Sachs. Our from question Goldman George next with comes

You raised about XX% your to for billed year. to XX% the from issuance X% outlook full

issuance In the category, drivers? what where the terms of your most the did issuance? And outlook year billed for for changed were

say loan I high-yield in for I say bank would ratings. so the in growth saw issuance growth George, we would it's question. all outlook Martina. but the accelerated year categories, and across for billed Thanks full much the

A done in in the year. of full but was expectations of investment grade QX. more a in strong see characterized lot taper that investment first for more in issuance year It's in did We bit slightly that refinancing the tapering half investment overall. there was a so grade, off very QX, grade by activity off in modest QX, an for acceleration last

seeing maybe High-yield data for for BLR, couple I hope issuance a quite have from number example. a very is sub-asset a example, year are I securitizations. in the And would strong structured standpoint, of of highlight. classes to say CLOs center that finance sub-asset other helps. for an to of growth classes strong growth. that Thanks question. very bit expected a

Thanks, George.

from comes question next Bank. Our Faiza with Deutsche Alwy

data the to I of about specifically wanted with talked business there one I here. you're subscriptions. point, seeing the and accelerating ask and about growth Index we what know had at

curious on generally business seeing in Index So type and the what side. trends on you're subscription just the of

Yes.

me with seeing what we're let thematically. start it So at

and space, trend. a mentioned U.S. remarks, And that. equities, bulk passive. flows of picks know, that be flows massive in S&P equities. within Indices And a Jones the prepared go active the the to continues up we've Dow you to As within as seen That lot from Chris to U.S. of

that So coming seen in AUM that in -- last quarter the There through the also of value. was some volume. increase value, terms you've

the So that in benefited XX% from asset-linked growth the we fees. with

As know, to seen fees lagged are be going basis. those on a of some you

into going to to So as we our through the continue that built year. guidance the see remain of would but expect year, we was rest for flat we some that market the the average of expectation come flows the the increase rest those

of we of lot continue a see types in to of asset classes. interest terms themes, In different

S&P of some U.S., the large XXX S&P economic So we've within asset even XXX quality, with XXX S&P with the partnerships XXX cap class the asset managers had funds, S&P new ETF. large types of new the

our lot in products interesting of that index. ADR. We've a XXXX income the We the out new using seen see bring some bond indices, mid-cap iBoxx also CBOE fixed and Global through coming market Vanguard around emerging S&P also really innovation credit

the new asset seeing lot a of interest, classes. we're board, So across

already relates to is be which that has we'll credit private take a building the Thanks, in we to we mention We an area positions asset much class, out want strong in lot markets have which Another markets. as the this credit. indices. of more very And and private one where have This interest advantage we Faiza. briefly private of lead. a

Our next question from of America. Balsky with comes Heather Bank

investments. terms I there? the continues issuance investment you're your going as spend, recover? was about Any seeing spending thinking strategic the especially of pace especially hoping are changes success ask to How given philosophy in about to of you forward, in

products, new areas, for services. investment us And have always take me let it's as that know, Heather, that. you new to new believe we in important

You of saw the of many this benefit those quarter.

to we about for of important which that innovation, growth Index, a this XX% grew quarter of see to XX%. making. we're revenue, investments beginning the is indicator with for the year percentage to see want a very the that to Vitality Our start in us revenue the our we the That's what approach

we've been couple of you As one. know, key investing Private in a markets areas. is

Another for relates and one, is intelligence there's are Energy & other Artificial us. Transition. subcategories to that important many Sustainability

the to that the generate We we to is know customers, positive the the for to based to on to customers. pricing bring our be have bring markets, to our ability we that continue going value always value us ability loyal

in So we're us to we last you're Thanks for mean do, much That successful question, invest. going so to years. see we've very the but record continue to aside few with capital are we the successful been we with everything the very track And fortunately, set that have. pleased doesn't Heather.

Morgan next question Kaplan Toni Our comes from Stanley. with

AI. I ask wanted to about

but just Kensho, your opportunity new viewing start the to head maybe when position you're talk early just competitive Microsoft? also gap your working now. about maybe with closed very how data proprietary about bought use competitors a within products. talk you by the And AI Have had You

for to over practical Martina, that. then Toni, start to who it and give I'm applications. Thanks, can some hand going

especially has decisions had us now intelligence out, used like we're we tools that ago, be by enhance make Kensho vision our this you moved decision-making, going to allow to artificial As play us data. us people when were first X seeing call bought generative faster on -- that know, years more with we intelligence AI. And make to a to artificial into that

Chief know, have company. a of for have Officer we where place AI you a in we the system governance, As

AI an have Council. We

the system We have the ensuring towards training we kind of across right company. a that entire have

We have really an a accelerator if fast move to we that see we opportunity good on. want

it's everything the Assist, architecture a to use But of called really, agnostic It we model S&P us that new now an S&P by foundation think users. all We've and it something allows means which is bring built garden is as into kinds model. used opportunities. Assist of best. XX,XXX model copilot. Spark bringing our over at which can We towards be open is that us models our Spark

summaries launch add transcript Martina But ground a she's good the announced on product. of in This this Ratings. ChatAI can on is think this saw Connect. You Platts seeing with quarter IQ really use we Pro. the that some quarter, actually to myself really the I I are on valuable. the this applications Cap Those

quality, the Thanks, business. Great. our dozens for organizations, Yes. and to Doug. core excited in We're Thanks Ratings improve potential market other question. for I underway. time pilots to very say would most efficiency the gen AI create for had, to overall that we've of about Ratings like

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Toni. Thanks,

Kramm Our UBS. next question comes from Alex with

the the little in market a is Just to come came cyclical that interested the more Market in, And Intelligence cyclical. and particularly back upside business wanted downside. since obviously realized performance and all there. to We I'm

than look variable, I more this or quarter, digits. double and up And when double recurring both nonsubscription at digits

helping the little already. So it seems side like you cyclical a bit is

are maybe up. up, things biggest about in can upsides And So for, even cyclical as on still markets cetera, dimensionalize -- and you maybe looking you you should can talk et where that potential open the upside IPO you we think elements markets i.e., drive just be the higher? that opening business to from in cyclical what more terms revenue of

Yes. Thanks, Alex.

the our we subsegment already almost the place, As you we guidance cyclicality Solutions know, the that some when we Enterprise XX%. in of took we expectation grew into at look But in gave. that built

in this like included the things compliance. very strong some We nonsubscription some And had and that growth regulatory areas by some are revenue are lending And of that driven solutions from in these revenue, volume. growth had strong really these and came markets. we were --

ask the to of one. decrease closely, going obviously, more fourth number If one our very the in what that the the is of gave some end towards We the interest of rate factors XX at rates you be quarter, the fourth we're expectation key basis of would you of me, end watching be are likely interest year points quarter.

that. markets have show But X recent the of see couple calls, that any up guidance. our views they year. banks including interest different We a of not on earnings declines have the into to this we're own rate In that would that

weak. strong not what factor M&A at XXXX, a XXXX. relatively been banks. on other quite The weak. in seen. investment activity was Ever M&A in we're it's then, It for have revenue quite look going to closely we still normally track the would incredibly It's and since is is M&A

a some lot the a green ready, equity. in capital, quarter, for from that's so pent-up getting we lot of did private of And that's M&A equity There's corporates. shoots exits. of of believe, ready in There's credit, activity this there's see sidelines but lot a private a of private lot activity we M&A firepower on sitting

looking to to and their going own capital managing balance sheets going their positions. be they're own at be how We're

tailwinds Alex. our So over to but guidance going for not year. be view this these it's us, our built that's some would benefit that time, into are that Thanks,

Our Scott with Research. next question Wolfe Wurtzel comes from

very back product targets. it on you're your quarters, more the there a little few ask bit the from we've shift last like to seems wanted about making new know to going talked cross-sell I Obviously, progress I good revenue synergy against side. maybe development.

during wondering in cross-sell. help in synergies contextualize terms could So more maybe if you were a the just recognized terms of little product quarter of new versus that bit the

Scott. you, Thank

still are launching very now Let talk cross-sell. see mostly important. are what me that important and successfully about source we're the our take new That's seeing really we products. of but most growth, We

Intelligence. XX over products launched had We so far were year that in this Market

X Insights then between in between divisions. the the of rest the have And have we about Commodity We another X good those a of year XX area. pipeline

the cross-sell credit new a to approach custom Indices, providing indices and launched from Markit. as has important. said, really, fixed income In been IHS that indices series really But we've of were using the I

have. S&P the And the probably underestimated brand. power the diversified probably also relationships underestimated we of We that the Global value and we

very was business, think But It's a you services. business. always et at it wealth sell at government, If Financial It's Markit, Financial all business a we've Services the strong Services types funds, about Global, cetera. had academics, IHS sovereign financial corporate side. buy of S&P side,

products services powerful of bring That's had clients, the services to So of financial many and we them upsides. believe the we've to that the been one for bring more set that opportunity big clients products. and many, very diversified

a into something to just Pro, Adding our one Cap tangible. But prices, That's was million bond and of let things one opportunities. that talked back couple step me prices that's point about. IQ XX.X take of already synergy we

You that. can see

earlier ChatAI, We've new products. of also added whole had which was feature. in a set We Commodity Insights about a to talked

and have what IHS platform. platform a takes Insights So intelligence layered we of platform. the that which top from Commodity of on Markit was was merger Platts Connect, Pro artificial That Dimensions

rate. there, the very, We're that. and it So very run we're and we're you track. million the actually at was can with of $XXX in everywhere see track, in company. million We're on pleased That $XX quarter, ahead

will Thank much. so keep we delivering. so you and asking, keep And

Andrew comes Our from next with Nicholas William question Blair.

first about private in from public if any And quarter, you -- this I quarter Andrew. more of being the refinanced to saw Roesch Tom want is the provide the in where a that public. public deals coming you color trend This you markets. talked could of for what wondering if private to number from of kind continuing I on private guys sense on was of the markets. coming the markets is you that than refis see in

question. X interesting. quarters. the Tom, different this been is in some trends Martina. the Yes, Thanks Certainly, it's for

quarter go private public. actually in first in directions more the both quarter. from saw said, you saw to second We going the certainly we As

the markets been have Some in being more first in we available compared private to attractive might what see that of as quarter. the pricing

will specific strategy and had markets. private We've that had markets, of around we strategy think original around very we all we Day it. to we which since I one, Investor comes, the be to this continued market But number And this or a see the it whether have that thesis to opportunity. private public goes debt it's is, serve wherever say the ready

market on the Ratings, you private And private see the rating obviously, growth the the well XX% growth QX, as in that broader public as side results with as well. bond the we've in transaction our strategy market that seen out revenues on on play side

the this, So question. We've way this for is around we the us. are about either right our right a good Thanks story got X the position complementary going feel good We've to and expertise for us. These capacity. serve for debt got forward. the trends

Thanks, Tom.

comes question next from with Our Owen Lau Oppenheimer.

I'm teens but you assumptions. full try of your the understand and to not one way any delta different have to done Rating, have growth the XX% see analysis high if for to that and So year, to to It's off, for curious guided competitors growth. around XX% you

revenue And also for your quarter much Rating guidance? cut, think, the at impact I impact rate end of assumption run your how fourth the would

Thanks so Owen. much,

the to As competitors about way with that's in strategy that ways. you out. plan overperformance say comes feel we know, we a variety the it. Obviously, set very a clear if mind, don't in good of We

a market revenues, the over handle in other and also in capacity also very and specific either last case can volumes. but it years, couple additional been strategy preserved demand we've of had as private expertise First, the a we've analyst is we meet markets, because we've strong that cases where the but of to able

good So that. we about very feel

of a in his guidance, couple I overall, Doug say, rate with would reflects that highlighted the to drivers remarks. our growth key new XX%, XX%

continue are is issuers in to First that that totally the we from market avoiding, QX. hear particular,

And for us so has half of a tapering on the the year certainly back overall. that effect

also half, very, it's from revenue -- we've strong modest a to QX. the year, in maybe back this we'd the Doug from say bit And said, a of in I alluded second a I little a also tougher CP lapping year-over-year half of you as whether expect very QX would comp think last last year. decline onetime but that

and full as about the the good reflects side, quarter, if we growth to key in on that our like we where the fees annual mandates. second at as with have areas you reflected things good we overall, really economics value but performance the it. feel just and transaction customer continue strategic with the growth year, look such in on the strong But the It not align growth areas, other new

Thanks I So story overall, us for for a question. think. the great

Thanks, Owen.

Our next Huber question Research from Huber with comes Partners. Craig

guys Great. revenue in you I the believe half Market second growth rates the ago, X perhaps improvements expected Intelligence of year. said the of Intelligence months see in Market that in some you've to

for the obviously of Do happened the flat products the have year. given it's new you here? the kept feel you year, first guidance what's outlook half where for you've revenue given in the your possible You just still full cited

Craig, it's possible.

whether the of business, activity, we I it's don't on about we tailwinds the questions a to in As wishful the you to potential rates, in heard ago, of couple related but build thinking. that based some could see talked guidance M&A

we are. We see, have what our expectations to what build on

was the we've why now in see it consistent last guidance. the is Craig. top that's Thanks, provided built So where market, be the we guidance right based what the growth to line time and on we for guided

comes with next Our JPMorgan. from Andrew question Steinerman

growth organic possibility compared growth just at MI accelerating? Doug, growth? did to revenue on directionally my organic MI the MI, with tell is, acceleration, us is question the could of quarter second in the And ACV organic ACV you how

with earlier, our open the It's doors do for in We we report Well, on pleased we the very we sales with report We that clients. the power the see don't with I metric we brand, -- revenue. opportunities mentioned ability a ACV. cross-sell, to at we're obviously, not And on new what of with use. look pipelines.

what for Alpha. We're the ability what -- cross-sell innovation very there, pleased opportunities I almost can't it a about coming pipeline of gush to of incredibly have just it, We that's through. Alpha. our means I can are strong Visible with because Visible

that to Enterprise think Solutions. powerful a Desktop that it's industry is and looking in for I data the and providing, the research keep then we're advisory, So forward, us Credit the the this it's in really area, Solutions Risk whether franchise, the in &

market. of Risk We area happening in is the the that know what's of in demand Credit & Solutions growing an because is volatility

pleased our across progress. board, we're So the quite with

use we the You we're one on. delivering don't can synergies. ACV [ from use Thanks, from metrics that not we Andrew. the (sic) for -- also what ASV see ]. we report of That's that But it

Meuler Our next with question comes from Baird. Jeff

good. a to make beyond I in The there's weakness I Vitality products it. just get segment are or of reason variability. guidance. products the recall sound good. a is there's nothing ask range lower the margin sales also the Mobility looks I products But margin. lowered lot of you the want know recall growth sure think And I I but there,

impact just or I'm a trajectory clients ran on subs in booking or wasn't confirm change else. So similar the there anything trends trying the some CDK your of to from

you Well, quarter. back, that look look for out the subscription we your the at growth, When for driven and growth, grew sure, been revenue Thanks subscription it's this tremendous question. of is actually XX.X%. XX% of when

the recall actually business through. activities, very high-margin comes of terms In that

recall, in actually do significantly. that we when margins does fairly slowdown and the So loss impact that see

Thanks, Jeff.

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

I in was out? you the XQ. can what call expecting provide the provide expense don't Anything or wondering issuance else you're quarter, you mentioned if that us. specific will quarter, XQ, by line you be to guidance expect You anything know I fourth for in a on color between any but decline but helpful revenue

you guidance quarter. by provide As we mentioned, don't

the which potentially third You the that we've nothing and else. to relates mentioned between seen, one fourth quarter. some issuance thing already there's But

add Chris, want you do to anything?

else. nothing No,

Thanks, Great. Jeff. Thank Okay. you.

comes question Redburn Atlantic. with Quelch next from Our Russell

quarter In X.X% the top Commodity growth. for guidance Insights, this midpoint line double-digit implies fourth of is the HX. The of growth

Insights. expecting slowdown I'm strong Commodity such in So wondering HX why a you're in

seasonality, if normally around way first it's normally half. seems is stronger than It look And is than the in other comp. second at a the the tough more half I much

just you that can So please? address me, for

Yes.

global Let me for all, the Insights had really good area important of mention, first has Commodity It's an a markets. run.

about that talking You kind everywhere with we're talking conversation have, I about every future ESG, mining. transition, of happening metals, we single we're talking see energy go, about of we're what's the ever

As and strong had transaction beef you products really, ag, at new we've poultry But you when business, the some dynamic we a the benchmarks. see, related advisory look really the services launched overall performance to in area. in and

volume grew It -- the the that kind going This project is at of It's rest in for of to to it's more driven. area We of an don't that, XX% level driven. the want necessarily services transaction quarter. is year that transaction is continue.

from to from of level So the which assessments, coming data resources the a of is guided more and upstream, energy and blend rates price we've from insight.

difference So us Russell. that's level a down you what to brought Thanks, from the to can X%. see that X% the back

Jefferies. with Thind Surinder from come will question final Our

of terms picture guidance about think on together when big question relative put you maybe to overall, visibility past? been you years it's a environment Just current do in the where in how

forecast how Is to should across the at the Or some quality of client this the behavior a bit of point? line we think different about project items? more difficult

We year. Well, for good on believe year I the the pipeline think rest that's half we've a got what of left. that the view pretty is a

are around interest that. uncertainty be there rates market to factors a are little always throughout, maybe bit As more and mentioned which There's certain driven, I going like M&A.

with analysts feedback the side, work close that working buy side. There's them. We have to that closely all with analysts get sell the to are from our are the market. the time We

seeing pipelines capital relationships We capital directly have bankers in they're debt markets, to M&A. also their of markets, understand with what equity

our into built the to for that an and something formal the that. and So gather to And informal use for this of guidance at very rest we carefully way year, year. information have look we've we it's

results very Overall, you You pleased that, the we're call. for incredibly But Surinder, we see of much joining are. with that. with thank where the

thank to want being today wrap here, Martina, congratulate everyone questions. the she's thank also your joining for to again the much CEO for thank and want us. let for I the on for And appointment and want of call. her I call And to joining next you S&P room, I Global. for in Martina the call. close it me up as the very

well. more hear At is of the it's want which to next I about going also to always. place, people, earnings lot transition, starting call, to the and a our you're take incredibly going as all thank

people quarter. tremendous in delivered a have We that strong this company

delivering We've generative that AI. got we're really with and with markets, good in energy developing initiatives sustainability, incredible, private transition,

merger, and pleased of We we're make great continue synergies progress our the with all very that. to on from

hope So everybody I of also time a that gets summer. bit little this

So enjoy some to time seeing I the forward all very look and on you summer, call. much. next everyone the Thank over

hours. available morning's PDF the this concludes call. slides That in investor.spglobal.com. available version about will call be A from entire of is downloading for Replays X the of presenter

maintained webcast S&P telephone audio-only will slides and The X for for be replay will with month. Global's year. maintained website The on audio be X

for On day. we you a thank participating S&P you Global, behalf of good wish and