01—Abstract
Summary
Summary of the 10-K filed February 7, 2025. Cited figures are marked; the original filing is the authoritative source.
MSCI Inc. reported full-year 2024 operating revenues of $2.86 billiona, up 12.9% from $2.53 billion in 2023, with net income of $1.11 billion, down 3.4% from $1.15 billion.
Adjusted EBITDA rose 12.7% to $1.72 billionb, with an Adjusted EBITDA margin of 60.1% versus 60.2% in 2023. Growth was led by asset-based fees, which rose 17.9% to $657.5 million on higher AUM in ETFs linked to MSCI equity indexes, and recurring subscriptions, which rose 13.0% to $2.11 billion. Total Run Rate reached $2.92 billion, up 8.8%, and the Retention Rate for the full year was 93.7%.
The company's results were also shaped by acquisitions, including Burgiss (acquired October 2023 for $696.8 millionc in cash for the remaining 66.4% interest), Trove, Fabric and Foxberry. Operating expenses rose 16.0%, driven by compensation growth tied to headcount, and amortization of intangible assets rose 43.4%. Other expense, net increased to $172.4 million from $15.5 million, largely because 2023 included a $143.0 million non-taxable remeasurement gain on Burgiss.
Cash from operations was $1.50 billiond, and the company returned capital through $885.3 million of share repurchases and $509.1 million of dividends paid during 2024. Borrowings rose to $4.51 billion of long-term debt, including $4.20 billion of senior notes and $336.9 million drawn on the Revolving Credit Facility.
The company's Consolidated Leverage Ratio was 2.34:1.00 against a maximum of 4.25:1.00, and its Consolidated Interest Coverage Ratio was 10.16:1.00 against a minimum of 4.00:1.00. The filing also notes concentration risk, with BlackRock accounting for 10.2% of consolidated operating revenues, and risks tied to asset-based fee pressure, regulation of benchmarks and ESG ratings, and AI.
02—Key points
Key Highlights
- Operating revenues of $2,856.1 million, up 12.9% year over year; recurring subscriptions were $2,114.4 million, up 13.0%.
- Asset-based fees rose 17.9% to $657.5 million, mainly driven by higher average AUM in ETFs linked to MSCI equity indexes, which averaged $1.63 trillion in December 2024 quarter-end terms as reported in the average AUM table, and an average value up $292.2 billion or 21.8% for the year.
- Net income was $1,109.1 million, down 3.4%, as 2023 benefited from a $143.0 million non-taxable gain on remeasurement of the Burgiss equity method investment.
- Adjusted EBITDA was $1,716.5 million, up 12.7%, with an Adjusted EBITDA margin of 60.1% compared with 60.2% in 2023.
- Total Run Rate was $2,921.7 million at December 31, 2024, up 8.8%; full-year Retention Rate was 93.7%, and net new recurring subscription sales were $165.3 million, down 9.7%.
- Capital returns in 2024 included $885.3 million in share repurchases and $509.1 million in dividends paid; the Board declared a $1.80 quarterly dividend in January 2025, up 12.5%.
- Total debt principal was $4,536.9 million, with a Consolidated Leverage Ratio of 2.34:1.00 and an Consolidated Interest Coverage Ratio of 10.16:1.00 at year end.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2024filed February 7, 2025Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $2.86B$2.53B | +12.9% |
| R&D Expenses | $158.65M$132.12M | +20.1% |
| Operating Expenses | $1.33B$1.14B | +16.0% |
| Operating Income | $1.53B$1.38B | +10.4% |
| Net Income | $1.11B$1.15B | −3.4% |
| EPS (Basic) | $14.09$14.45 | −2.5% |
| EPS (Diluted) | $14.05$14.39 | −2.4% |
| Shares Outstanding (Basic) | 78.71M79.46M | −0.9% |
| Shares Outstanding (Diluted) | 78.96M79.84M | −1.1% |
05—Questions
Frequently Asked Questions
How did MSCI's revenue and profitability change in 2024?
Operating revenues increased 12.9% to $2.86 billion, and Adjusted EBITDA increased 12.7% to $1.72 billion. Net income declined 3.4% to $1.11 billion, mainly because 2023 included a $143.0 million non-taxable remeasurement gain on the Burgiss equity method investment and 2024 other expense, net rose to $172.4 million.
What is driving MSCI's growth?
Asset-based fees increased 17.9% to $657.5 million, primarily from growth in revenues from ETFs linked to MSCI equity indexes and non-ETF indexed funds linked to MSCI indexes. Recurring subscriptions rose 13.0%, led by Index, ESG and Climate, Analytics, and All Other - Private Assets products, the last of which grew 48.9% largely due to the Burgiss step acquisition.
How concentrated is MSCI's revenue base?
BlackRock, the largest client by revenue, accounted for 10.2% of consolidated operating revenues in 2024 and 17.9% of Index segment operating revenues. The filing notes that clients can generally stop using MSCI indexes and that asset-based fees may be renegotiated to lower levels.
How much debt does MSCI carry and how is it positioned against its covenants?
As of December 31, 2024, MSCI had $4,200.0 million of senior unsecured notes and $336.9 million outstanding under its Revolving Credit Facility. Its Consolidated Leverage Ratio was 2.34:1.00 against a maximum of 4.25:1.00, and its Consolidated Interest Coverage Ratio was 10.16:1.00 against a minimum of 4.00:1.00. The company also reported $1.4 billion of share repurchase authorization remaining as of February 6, 2025.
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