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Dec 31, 2024
Morningstar Q4 2024 Earnings Report
Morningstar reported strong Q4 2024 earnings with revenue growth across key business segments.
Key Takeaways
Morningstar, Inc. reported a 9.7% increase in Q4 2024 revenue to $591.0 million, with adjusted EPS growing 8.6% to $2.14. Operating income rose 78.2% to $168.2 million, driven by the sale of US TAMP assets. Free cash flow improved to $112.8 million. PitchBook and Morningstar Credit led revenue growth, supported by higher demand for investment insights and analytics.
Revenue grew 9.7% year-over-year to $591.0 million, with organic revenue increasing 10.6%.
Operating income surged 78.2% to $168.2 million, benefiting from a $64.0 million asset sale gain.
Diluted EPS increased 58.5% to $2.71, while adjusted EPS grew 8.6% to $2.14.
PitchBook and Morningstar Credit were the largest contributors to revenue growth.
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
Morningstar expects continued growth in PitchBook and Morningstar Credit segments, along with enhanced AI-driven product offerings. The company remains focused on expanding its financial services ecosystem while navigating macroeconomic uncertainties.
Positive Outlook
- Projected continued revenue growth in core business segments.
- Expansion of AI-driven tools to enhance client workflows.
- Increased demand for investment insights and analytics services.
- Strong market performance supporting AUMA growth.
- Operational efficiency improvements leading to margin expansion.
Challenges Ahead
- Potential headwinds from economic uncertainty affecting financial markets.
- Higher compensation costs impacting profitability.
- Regulatory challenges in global markets.
- Increased competition in financial data and analytics space.
- Volatility in asset-linked revenue streams.