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Mar 31, 2021

MSCI Q1 2021 Earnings Report

MSCI reported strong Q1 2021 results with revenue and adjusted EPS growth.

Key Takeaways

MSCI Inc. reported a strong first quarter 2021, with operating revenues up 14.8% to $478.4 million and diluted EPS up 36.4% to $2.36. The company saw growth in recurring subscription revenues and asset-based fees, and a retention rate of 96.3%.

Operating revenues increased by 14.8% to $478.4 million.

Recurring subscription revenues were up 10.9% and asset-based fees increased by 26.5%.

Diluted EPS rose by 36.4% to $2.36, and adjusted EPS increased by 29.5% to $2.46.

Retention Rate was strong at 96.3%.

Total Revenue
$478M
Previous year: $417M
+14.8%
EPS
$2.46
Previous year: $1.9
+29.5%
Retention Rate
96.3%
Previous year: 95%
+1.4%
Gross Profit
$393M
Previous year: $342M
+14.8%
Cash and Equivalents
$1.75B
Previous year: $1.07B
+63.8%
Free Cash Flow
$205M
Previous year: $109M
+87.9%
Total Assets
$5.63B
Previous year: $3.91B
+44.0%

MSCI

MSCI

MSCI Revenue by Segment

Forward Guidance

MSCI provided full-year 2021 guidance based on macroeconomic and capital market assumptions, which are subject to uncertainty related to equity markets and the COVID-19 pandemic.

Positive Outlook

  • Operating Expense: $885 to $920 million
  • Adjusted EBITDA Expense: $795 to $825 million
  • Interest Expense: ~$150 million
  • Net Cash Provided by Operating Activities: $885 to $925 million
  • Free Cash Flow: $825 to $875 million

Challenges Ahead

  • Effective Tax Rate: 15.0% to 18.0%
  • Depreciation & Amortization Expense: $90 to $95 million
  • Capital Expenditures: $50 to $60 million
  • Guidance is based on assumptions about macroeconomic and capital market factors.
  • Actual results could differ materially from our current guidance, including as a result of ongoing uncertainty related to the duration, magnitude and impact of the COVID-19 pandemic.

Revenue & Expenses

Visualization of income flow from segment revenue to net income