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Msci 8-K Report, Financial Results (Jan 29, 2025)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed January 29, 2025
Period End
January 29, 2025
Security
MSCI
In the record · 2016–202610-K1110-Q338-K133

MSCI filed 11 annual reports (10-K), 33 quarterly reports (10-Q) and 133 current reports (8-K) between 2016 and 2026.

  1. Leadership change8-K · Mar ’18Mar ’18
  2. Material agreement8-K · May ’20May ’20
  3. Material agreement8-K · Jun ’22Jun ’22
  4. Leadership change8-K · Aug ’26Aug ’26

01—Abstract

Summary

Summary of the 8-K filed January 29, 2025. Cited figures are marked; the original filing is the authoritative source.

MSCI Inc. reported fourth-quarter and full-year 2024 results on January 29, 2025, furnishing a press release as Exhibit 99.1.

For Q4 2024, operating revenues were $743.5 milliona, up 7.7% (organic growth of 7.4%), operating margin was 54.5%, and adjusted EBITDA margin was 60.8%. Diluted EPS was $3.90, down 23.1%, while adjusted EPS was $4.18, up 13.6%. Net income for the quarter was $305.5 million, down 24.3%, reflecting a $143.0 million non-taxable one-time gain on the Burgiss remeasurement recorded in Q4 2023.

For full year 2024, operating revenues were $2.86 billionb, up 12.9%, with adjusted EBITDA of $1.72 billion, up 12.7%, and adjusted EPS of $15.20, up 12.4%. The company ended 2024 with a total Run Rate of $2.92 billion, up 8.8%, and a Retention Rate of 93.1% for the quarter. Asset-based fees rose 20.8% in Q4, driven by higher average AUM in ETFs linked to MSCI equity indexes.

Cash and cash equivalents were $409.4 millionc, total debt principal was $4.5 billion, and the debt-to-adjusted-EBITDA ratio was 2.6x against a stated target range of 3.0x to 3.5x. Free cash flow for Q4 rose 7.5% to $394.7 million. The board declared a first-quarter 2025 dividend of $1.80 per share, an increase of 12.5%.

Full-year 2025 guidance includes operating expense of $1,405 to $1,445 milliond, adjusted EBITDA expense of $1,220 to $1,250 million, an effective tax rate of 17.5% to 20.0%, capital expenditures of $115 to $125 million, and free cash flow of $1,400 to $1,460 million. The filing notes that $1.5 billion remained on the share repurchase authorization as of January 28, 2025.

02—Key points

Key Highlights

  1. Q4 2024 operating revenues of $743.5 million, up 7.7%, with organic operating revenue growth of 7.4%
  2. Q4 2024 asset-based fees up 20.8%, while non-recurring revenues declined 37.2% versus the prior year quarter
  3. Full-year 2024 operating revenues of $2.86 billion, up 12.9%, and adjusted EBITDA of $1.72 billion, up 12.7%
  4. Q4 2024 diluted EPS of $3.90, down 23.1%; adjusted EPS of $4.18, up 13.6%, excluding the prior-year Burgiss gain
  5. Total Run Rate of $2.92 billion at December 31, 2024, up 8.8%; Q4 Retention Rate of 93.1% versus 93.6% a year earlier
  6. Q1 2025 cash dividend declared at $1.80 per share, an increase of 12.5%
  7. 2025 guidance: free cash flow of $1,400 to $1,460 million and operating expense of $1,405 to $1,445 million

03—Questions

Frequently Asked Questions

  1. Why did MSCI's Q4 2024 net income decline 24.3% despite revenue growth?

    The filing attributes the decline mainly to the prior-year quarter, which included a non-taxable one-time gain of $143.0 million on the remeasurement of the equity method investment in The Burgiss Group, LLC. Other expense (income), net was $41.8 million in Q4 2024 compared with ($97.1) million in Q4 2023, and the effective tax rate rose to 15.9% from 13.8%.

  2. How did MSCI's segments perform in the fourth quarter?

    Index operating revenues were $420.2 million, up 8.3%, with adjusted EBITDA margin of 76.9%. Analytics revenues were $172.8 million, up 4.9%. ESG and Climate revenues were $85.2 million, up 11.8%. All Other – Private Assets revenues were $65.3 million, up 6.9%.

  3. What is MSCI's leverage and liquidity position at year-end 2024?

    Cash and cash equivalents were $409.4 million, and total debt principal was $4.5 billion. The debt-to-trailing-twelve-month adjusted EBITDA ratio was 2.6x, and MSCI stated a target range of 3.0x to 3.5x for that ratio. Net cash provided by operating activities for the full year was $1.50 billion.

  4. What does MSCI guide for full-year 2025?

    Guidance includes operating expense of $1,405 to $1,445 million, adjusted EBITDA expense of $1,220 to $1,250 million, D&A expense of $185 to $195 million, interest expense of $182 to $186 million, an effective tax rate of 17.5% to 20.0%, capital expenditures of $115 to $125 million, net cash from operating activities of $1,525 to $1,575 million, and free cash flow of $1,400 to $1,460 million.

  5. How much capital has MSCI returned to shareholders?

    In full-year 2024 and through January 28, 2025, MSCI repurchased $865.5 million, or 1,599,271 shares, at an average price of $541.20. Dividends of $124.8 million were paid in Q4 2024, and $1.5 billion remained on the repurchase authorization as of January 28, 2025.

04—Continue

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