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Mar 31, 2023
Morningstar Q1 2023 Earnings Report
Morningstar's Q1 2023 financial results were released, revealing revenue growth driven by license-based product areas, but impacted by soft credit issuance and market volatility.
Key Takeaways
Morningstar's first-quarter revenue grew by 5.0% to $479.7 million, with organic revenue up 2.8%. Growth was driven by license-based product areas, while asset-based and transaction-based areas faced headwinds. The company reported a net loss of $7.6 million, or ($0.18) per diluted share.
Revenue increased by 5.0% to $479.7 million, with organic revenue growing by 2.8%.
License-based revenue rose by 16.7%, driven by PitchBook, Morningstar Sustainalytics, Morningstar Data, and Morningstar Direct.
Asset-based revenue decreased by 4.7% due to lower revenue from Investment Management and Workplace Solutions.
The company is managing the business cautiously during this period of economic uncertainty and have slowed our headcount growth significantly in 2023.
Revenue by Segment
Forward Guidance
The company expects significant product enhancements in the coming months, including the integration of LCD into PitchBook, the launch of our index calculation capability, the introduction of our climate data, the buildout of our wealth platform, and the expansion of our ratings effort across even more managed investment products.
Positive Outlook
- Integration of LCD into PitchBook
- Launch of index calculation capability
- Introduction of climate data
- Buildout of wealth platform
- Expansion of ratings effort across more managed investment products
Challenges Ahead
- Soft credit issuance
- Market volatility
- Economic uncertainty
- Decline in asset-based revenue
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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