Tue, Jul 23, 9:00 PM (46 days ago)
MSCI Inc. reports strong financial performance for Q2 2024, with operating revenues up 14% YoY to $707.9M, driven by growth in recurring subscriptions and asset-based fees. Recurring subscriptions grew 14.4%, led by All Other - Private Assets (71.8% increase) and Index products (8.1% increase). Asset-based fees rose 18.2%, mainly from ETFs and non-ETF indexed funds linked to MSCI equity indexes. However, non-recurring revenues fell 15%. Operating expenses increased 18.2% to $325.3M, due to higher compensation and non-compensation costs. Adjusted EBITDA rose 14% to $430M, maintaining a margin of 60.7%. Net income grew 8.1% to $266.8M, with an effective tax rate of 21.5%. The company also completed acquisitions of Fabric, Foxberry, and Trove, contributing to revenue and expense growth. MSCI maintains strong liquidity with $451.4M in cash and equivalents, and a $1.25B revolving credit facility. The company continues share repurchases and declared a quarterly dividend of $1.60 per share.