MSCI Inc (MSCI)

MSCI Inc (MSCI) stock declined by 13.43% following its first-quarter 2024 earnings report. Despite positive results, the revenue missed analysts' estimate, leading to a decline in stock price.

• Q1 2024 results: The company reported adjusted earnings of *$3.52** per share, beating estimates by 2.33% and increasing 12.1% year over year. Revenues reached $680 million, a 14.8% increase year over year but slightly below consensus by 0.38%. Organic revenue growth was 10.3%. Recurring subscriptions rose by 15.2% year over year to $513.1 million, representing 75% of revenues. Asset-based fees increased 12.9% to $150.3 million, and non-recurring revenues surged 20.3% to $16.7 million.
• Operating Performance and Financial Position: Adjusted EBITDA increased by 11.3% to $383.6 million, with a margin of 56.4%. Total operating expenses rose by 22.7% to $340.6 million. Operating income improved by 7.9% to $339.4 million, with a margin of 49.9%. Total cash and cash equivalents were $519.3 million as of Mar 31, 2024, compared to $461.7 million as of Dec 31, 2023. Total debt remained unchanged at $4.5 billion, resulting in a debt-to-EBITDA ratio of 3.9 times.
• Guidance and Future Outlook: For 2024, MSCI expects total operating expenses between $1.300-$1.340 billion, adjusted EBITDA expenses between $1.130-$1.160 billion, and interest expenses between $185-$189 million. Net cash provided by operating activities and free cash flow are projected to be $1.33-$1.38 billion and $1.225-$1.285 billion, respectively.