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Mar 31, 2020

Moody's Q1 2020 Earnings Report

Moody's Corporation reported resilient first quarter performance with impressive growth in both revenue and margins.

Key Takeaways

Moody's Corporation reported a strong first quarter with revenue up 13% to $1.3 billion and diluted EPS of $2.57, a 33% increase year-over-year. However, due to the anticipated economic implications of COVID-19, the company has reduced its full year 2020 diluted EPS and adjusted diluted EPS guidance ranges.

Q1 2020 revenue reached $1.3 billion, a 13% increase compared to Q1 2019.

Moody's Investors Service (MIS) revenue was $794 million, up 19% from the prior year.

Moody's Analytics (MA) revenue increased by 5% to $496 million.

Diluted EPS for Q1 2020 was $2.57, a 33% increase from Q1 2019, while adjusted diluted EPS was $2.73, up 32%.

Total Revenue
$1.29B
Previous year: $1.14B
+13.0%
EPS
$2.73
Previous year: $2.07
+31.9%
Operating Margin
45.9%
Adjusted Operating Margin
50.3%
Gross Profit
$950M
Previous year: $800M
+18.7%
Cash and Equivalents
$2.14B
Previous year: $1.2B
+78.9%
Free Cash Flow
$324M
Previous year: $347M
-6.6%
Total Assets
$11.3B
Previous year: $9.52B
+18.8%

Moody's

Moody's

Moody's Revenue by Segment

Moody's Revenue by Geographic Location

Forward Guidance

Moody's updated outlook for 2020 reflects numerous assumptions about many factors that could affect its business based on information reviewed by management through and as of today’s date, including observations and assumptions regarding the impact of COVID-19.

Revenue & Expenses

Visualization of income flow from segment revenue to net income