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Sep 30, 2024
Morningstar Q3 2024 Earnings Report
Morningstar's financial performance for Q3 2024 showed double-digit revenue growth and expanded operating margins.
Key Takeaways
Morningstar, Inc. reported a 10.5% increase in revenue to $569.4 million and a 65.0% increase in operating income to $115.5 million in Q3 2024. Diluted net income per share increased by 204.4% to $2.77, with adjusted diluted net income per share increasing by 56.3% to $2.00. The company's growth was primarily driven by Morningstar Credit, PitchBook, and Morningstar Data and Analytics.
Revenue increased by 10.5% to $569.4 million, with organic revenue growth of 10.1%.
Operating income increased by 65.0% to $115.5 million, and adjusted operating income increased by 41.6%.
Diluted net income per share increased by 204.4% to $2.77; adjusted diluted net income per share increased 56.3% to $2.00.
Cash provided by operating activities increased 46.8% to $191.9 million, and free cash flow increased 53.6% to $155.8 million.
Morningstar
Morningstar
Morningstar Revenue by Segment
Revenue by Segment
Morningstar Direct Revenue
CapyFin.comPitchBook Revenue
CapyFin.comMorningstar Credit Revenue
CapyFin.comMorningstar Wealth Revenue
CapyFin.comMorningstar Retirement Revenue
CapyFin.com 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.
Positive Outlook
- The Company offers an extensive line of products and solutions that serve a wide range of market participants, including individual and institutional investors in public and private capital markets, financial advisors and wealth managers, asset managers, retirement plan providers and sponsors, and issuers of fixed-income securities.
- Morningstar provides data and research insights on a wide range of investment offerings, including managed investment products, publicly listed companies, private capital markets, debt securities, and real-time global market data.
- Morningstar also offers investment management services through its investment advisory subsidiaries
- The Company operates through wholly-owned subsidiaries in 32 countries.
- Morningstar encourages all interested parties to submit questions in writing.
Challenges Ahead
- failing to maintain and protect our brand, independence, and reputation
- failure to prevent and/or mitigate cybersecurity events and the failure to protect confidential information, including personal information about individuals
- compliance failures, regulatory action, or changes in laws applicable to our credit ratings operations, investment advisory, environmental, social, and governance, and index businesses
- failing to innovate our product and service offerings, or anticipate our clients’ changing needs
- the impact of artificial intelligence and related technologies on our business, legal, and regulatory exposure profile and reputation
Revenue & Expenses
Visualization of income flow from segment revenue to net income