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Sep 30, 2020

Morningstar Q3 2020 Earnings Report

Morningstar's financial performance increased in Q3 2020, driven by revenue growth and strategic acquisitions.

Key Takeaways

Morningstar, Inc. reported a 13.8% increase in revenue to $357.2 million for the third quarter of 2020. The company's net income was $76.2 million, or $1.76 per diluted share, which included a $1.18 per share holding gain related to Morningstar's previously held equity interest in Sustainalytics. Adjusted operating income increased by 42.3% to $91.2 million, and adjusted diluted net income per share increased by 46.2% to $1.55.

Revenue increased by 13.8% to $357.2 million, with organic revenue growth of 8.0%.

License-based revenue grew by 18.7%, driven by PitchBook, Morningstar Data, and Morningstar Direct.

Net income was $76.2 million, or $1.76 per diluted share, including a gain from Sustainalytics.

Adjusted operating income increased by 42.3% to $91.2 million, with an adjusted operating margin of 25.6%.

Total Revenue
$357M
Previous year: $314M
+13.8%
EPS
$1.55
Previous year: $1.39
+11.5%
Assets under management and advisement
$215B
0
Gross Profit
$219M
Previous year: $185M
+17.9%
Cash and Equivalents
$378M
Previous year: $322M
+17.4%
Free Cash Flow
$70.8M
Previous year: $85.6M
-17.3%
Total Assets
$2.56B
Previous year: $2.28B
+12.3%

Morningstar

Morningstar

Morningstar Revenue by Segment

Forward Guidance

This press release contains forward-looking statements as that term is used in the Private Securities Litigation Reform Act of 1995. These statements are based on our current expectations about future events or future financial performance, including the impacts of the current COVID-19 pandemic.

Revenue & Expenses

Visualization of income flow from segment revenue to net income