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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.
Revenue by Segment
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.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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