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Jun 30, 2023

Morningstar Q2 2023 Earnings Report

Morningstar reported solid second-quarter revenue growth, driven by the performance of its license-based products.

Key Takeaways

Morningstar's second-quarter revenue grew by 7.3% to $504.7 million, with organic revenue up 5.1%. License-based revenue increased 14.8%, while transaction-based revenue declined 18.5%. The company's adjusted diluted net income per share increased 11.1% to $1.30.

Revenue grew 7.3% to $504.7 million.

License-based revenue increased 14.8% versus the prior-year period, or 12.2% on an organic basis.

Second-quarter operating income was $41.7 million, a decline of 22.6%.

Adjusted diluted net income per share increased 11.1% to $1.30.

Total Revenue
$505M
Previous year: $470M
+7.3%
EPS
$1.6
Previous year: $1.17
+36.8%
Assets under management and advisement
$264B
Previous year: $253B
+4.3%
Gross Profit
$288M
Previous year: $273M
+5.7%
Cash and Equivalents
$343M
Previous year: $417M
-17.6%
Free Cash Flow
-$5.8M
Previous year: $37M
-115.7%
Total Assets
$3.46B
Previous year: $3.47B
-0.2%

Morningstar

Morningstar

Morningstar Revenue by Segment

Forward Guidance

The Company expects that these activities will be substantially complete by the end of the third quarter of 2023 and will result in lower ongoing run-rate costs from the overall net reduction in the related headcount and certain overhead expenses.

Revenue & Expenses

Visualization of income flow from segment revenue to net income