Total Revenue [USD, Millions]

Cost of Goods Sold (COGS) [USD, Millions]

Selling, General, and Administrative Expenses (SG&A) [USD, Millions]

Research and Development (R&D) [USD, Millions]

Depreciation and Amortization (D&A) [USD, Millions]

Interest Expense [USD, Millions]

Operating Income (EBIT) [USD, Millions]

Net Income [USD, Millions]

Earnings Per Share (EPS) - Basic [USD]

Earnings Per Share (EPS) - Diluted [USD]

91a825c804f0c2eb68fc2ca1a9c349f35839aac885015dfb7623f709ad45c00b

| Metric [USD Million] | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|----------------------|---------|---------|---------|---------|---------|---------|---------|
| United States        | 770  **[0001059556-23-000030_mco-20230331.htm:33]**  | 782  **[0001059556-23-000052_mco-20230630.htm:43]**  | 768  **[0001059556-23-000102_mco-20230930.htm:44]**  | N/A     | 969  **[0001059556-24-000090_mco-20240331.htm:28]**  | 974  **[0001059556-24-000128_mco-20240630.htm:42]**  | 999  **[0001059556-24-000184_mco-20240930.htm:42]**  |
| Non-U.S. Total       | 700  **[0001059556-23-000030_mco-20230331.htm:33]**  | 712  **[0001059556-23-000052_mco-20230630.htm:43]**  | 704  **[0001059556-23-000102_mco-20230930.htm:44]**  | N/A     | 817  **[0001059556-24-000090_mco-20240331.htm:28]**  | 843  **[0001059556-24-000128_mco-20240630.htm:42]**  | 814  **[0001059556-24-000184_mco-20240930.htm:42]**  |
| EMEA                 | 451  **[0001059556-23-000030_mco-20230331.htm:33]**  | 470  **[0001059556-23-000052_mco-20230630.htm:43]**  | 455  **[0001059556-23-000102_mco-20230930.htm:44]**  | N/A     | 542  **[0001059556-24-000090_mco-20240331.htm:28]**  | 566  **[0001059556-24-000128_mco-20240630.htm:38]**  | 546  **[0001059556-24-000184_mco-20240930.htm:42]**  |
| Asia-Pacific         | 151  **[0001059556-23-000030_mco-20230331.htm:33]**  | 146  **[0001059556-23-000052_mco-20230630.htm:43]**  | 145  **[0001059556-23-000102_mco-20230930.htm:44]**  | N/A     | 155  **[0001059556-24-000090_mco-20240331.htm:28]**  | 164  **[0001059556-24-000128_mco-20240630.htm:38]**  | 157  **[0001059556-24-000184_mco-20240930.htm:42]**  |
| Americas (excl. U.S.)| 98  **[0001059556-23-000030_mco-20230331.htm:33]**   | 96  **[0001059556-23-000052_mco-20230630.htm:43]**   | 104  **[0001059556-23-000102_mco-20230930.htm:44]**  | N/A     | 120  **[0001059556-24-000090_mco-20240331.htm:28]**  | 113  **[0001059556-24-000128_mco-20240630.htm:38]**  | 111  **[0001059556-24-000184_mco-20240930.htm:42]**  |
| Total Revenue        | 1,470  **[0001059556-23-000030_mco-20230331.htm:33]**  | 1,494  **[0001059556-23-000052_mco-20230630.htm:43]**  | 1,472  **[0001059556-23-000102_mco-20230930.htm:44]**  | N/A     | 1,786  **[0001059556-24-000090_mco-20240331.htm:28]**  | 1,817  **[0001059556-24-000128_mco-20240630.htm:42]**  | 1,813  **[0001059556-24-000184_mco-20240930.htm:42]**  |

9240871ea9c91983d0b5b36ae4fc9a28c115aade542943ea955bdc9ec0f39739

| Metric [Unit: $ Million] | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|--------------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| **Moody's Analytics (MA) Total Revenue** | 714  **[0001059556-23-000005_a4q22earningsprnew.htm:0]**  | 737  **[0001059556-23-000030_mco-20230331.htm:33]**  | 747  **[0001059556-23-000046_a2q23earningspr.htm:0]**  | 776  **[0001059556-23-000097_a3q23earningsrelease.htm:0]**  | N/A | 799  **[0001059556-24-000090_mco-20240331.htm:28]**  | 802  **[0001059556-24-000123_a2q24earningsrelease.htm:1]**  | 831  **[0001059556-24-000180_a3q24earningsrelease.htm:10]**  |
| **Decision Solutions (DS)** | N/A | 354  **[0001059556-23-000030_mco-20230331.htm:34]**  | N/A | 354  **[0001059556-23-000097_a3q23earningsrelease.htm:0]**  | N/A | 365  **[0001059556-24-000090_mco-20240331.htm:28]**  | 366  **[0001059556-24-000123_a2q24earningsrelease.htm:1]**  | 383  **[0001059556-24-000184_mco-20240930.htm:14]**  |
| **Research and Insights (R&I)** | N/A | 195  **[0001059556-23-000030_mco-20230331.htm:34]**  | N/A | 222  **[0001059556-23-000097_a3q23earningsrelease.htm:0]**  | N/A | 222  **[0001059556-24-000090_mco-20240331.htm:28]**  | 226  **[0001059556-24-000123_a2q24earningsrelease.htm:1]**  | 235  **[0001059556-24-000184_mco-20240930.htm:14]**  |
| **Data and Information (D&I)** | N/A | 188  **[0001059556-23-000030_mco-20230331.htm:34]**  | N/A | 200  **[0001059556-23-000097_a3q23earningsrelease.htm:0]**  | N/A | 212  **[0001059556-24-000090_mco-20240331.htm:28]**  | 210  **[0001059556-24-000123_a2q24earningsrelease.htm:1]**  | 213  **[0001059556-24-000184_mco-20240930.htm:14]**  |
| **Moody's Investors Service (MIS) Total Revenue** | 576  **[0001059556-23-000005_a4q22earningsprnew.htm:0]**  | 733  **[0001059556-23-000023_a1q23earningspr.htm:0]**  | 747  **[0001059556-23-000046_a2q23earningspr.htm:0]**  | 696  **[0001059556-23-000097_a3q23earningsrelease.htm:0]**  | N/A | 987  **[0001059556-24-000090_mco-20240331.htm:28]**  | 1,015  **[0001059556-24-000123_a2q24earningsrelease.htm:1]**  | 982  **[0001059556-24-000180_a3q24earningsrelease.htm:10]**  |
| **Corporate Finance (CFG)** | N/A | N/A | N/A | 346  **[0001059556-23-000097_a3q23earningsrelease.htm:0]**  | N/A | 529  **[0001059556-24-000090_mco-20240331.htm:28]**  | 525  **[0001059556-24-000123_a2q24earningsrelease.htm:1]**  | 515  **[0001059556-24-000184_mco-20240930.htm:14]**  |
| **Structured Finance (SFG)** | N/A | N/A | N/A | 102  **[0001059556-23-000097_a3q23earningsrelease.htm:0]**  | N/A | 114  **[0001059556-24-000090_mco-20240331.htm:28]**  | 131  **[0001059556-24-000123_a2q24earningsrelease.htm:1]**  | 135  **[0001059556-24-000184_mco-20240930.htm:14]**  |
| **Financial Institutions (FIG)** | N/A | N/A | N/A | 126  **[0001059556-23-000097_a3q23earningsrelease.htm:0]**  | N/A | 195  **[0001059556-24-000090_mco-20240331.htm:28]**  | 195  **[0001059556-24-000123_a2q24earningsrelease.htm:1]**  | 170  **[0001059556-24-000184_mco-20240930.htm:14]**  |
| **Public, Project and Infrastructure Finance (PPIF)** | N/A | N/A | N/A | 115  **[0001059556-23-000097_a3q23earningsrelease.htm:0]**  | N/A | 141  **[0001059556-24-000090_mco-20240331.htm:28]**  | 154  **[0001059556-24-000123_a2q24earningsrelease.htm:1]**  | 154  **[0001059556-24-000184_mco-20240930.htm:14]**  |
| **MIS Other** | N/A | N/A | N/A | 7  **[0001059556-23-000097_a3q23earningsrelease.htm:0]**  | N/A | 8  **[0001059556-24-000090_mco-20240331.htm:28]**  | 10  **[0001059556-24-000123_a2q24earningsrelease.htm:1]**  | 8  **[0001059556-24-000184_mco-20240930.htm:14]**  |
| **Total MCO Revenue** | 1,300  **[0001059556-23-000005_a4q22earningsprnew.htm:0]**  | 1,470  **[0001059556-23-000030_mco-20230331.htm:33]**  | 1,500  **[0001059556-23-000046_a2q23earningspr.htm:0]**  | 1,472  **[0001059556-23-000097_a3q23earningsrelease.htm:0]**  | N/A | 1,786  **[0001059556-24-000090_mco-20240331.htm:28]**  | 1,800  **[0001059556-24-000123_a2q24earningsrelease.htm:1]**  | 1,813  **[0001059556-24-000180_a3q24earningsrelease.htm:10]**  |

59efe936fdc52c26a80ad1ca431a7dc471a5b77ad0aef48665e7ecf33f9f45f4

Moody's Corporation operates as a global integrated risk assessment firm, providing essential services through its two main segments: Moody's Analytics (MA) and Moody's Investors Service (MIS). The company offers data, intelligence, and analytical tools to assist business and financial leaders in making informed decisions, as well as publishing credit ratings and assessment services for various debt obligations and entities worldwide **[MCO_3376947_5]** **[0001059556-24-000017_mco-20231231.htm:9]** **[MCO_3376947_3]**. Moody's Analytics is comprised of three lines of business: Research & Insights, Data & Information, and Decision Solutions, while Moody's Investors Service primarily generates revenue from credit rating assignments and monitoring **[MCO_3376947_6]** **[0001059556-24-000128_mco-20240630.htm:39]** **[0001059556-24-000090_mco-20240331.htm:29]** **[0001059556-24-000017_mco-20231231.htm:135]**.

1. **Moody's Analytics (MA)** - Provides data, intelligence, and analytical tools to help business and financial leaders make confident decisions **[MCO_3376947_5]** **[0001059556-24-000017_mco-20231231.htm:9]** **[MCO_3376947_3]**.
   - **Research & Insights** - Offers research services and credit scoring tools, contributing significantly to MA's revenue **[MCO_3376947_5]** **[0001059556-24-000017_mco-20231231.htm:9]** **[MCO_3376947_3]**.
   - **Data & Information** - Delivers data feed activities and master data management applications, supporting use cases like supply chain analysis and KYC, including products like Orbis **[MCO_3376947_6]** **[MCO_3376947_3]**.
   - **Decision Solutions** - Focuses on cloud-based SaaS businesses serving banking, insurance, and KYC workflows **[0001059556-24-000128_mco-20240630.htm:39]** **[0001059556-24-000090_mco-20240331.htm:29]**.

2. **Moody's Investors Service (MIS)** - Publishes credit ratings and provides assessment services on a wide range of debt obligations and entities worldwide, with revenue primarily from fees for credit rating assignments and monitoring **[0001059556-24-000017_mco-20231231.htm:135]** **[0001059556-24-000090_mco-20240331.htm:29]**.

50c3ee9f3f093b3e6ede24bb3fb7c95b7d4acad401556dc7a2b699f7e307d502

Adjustments for Non-Cash Items

Stock-Based Compensation

Changes in Working Capital

Capital Expenditures (CapEx)

Proceeds from / Repayments of Debt

Share Repurchases

Dividend Payments

Net Change in Cash

210450c11b78086c39f8d5ad65183d69e951dcfd93e4ec5fa946074ba8dac047

1. Given the tough comps from this year's near-record issuance levels, how confident are you that the anticipated tailwinds, such as lower default rates and refunding walls approaching **$5 trillion over the next 4 years**  **[MCO_3403201_7]** , will offset potential headwinds like geopolitical risks and economic uncertainties in 2025?

2. With private credit assets under management expected to reach up to **$3 trillion by 2028**  **[MCO_3403201_2]** , how is Moody's positioning itself to capture growth opportunities in this market, and what specific steps are you taking to meet the demand for independent third-party ratings and assessments?

3. Regarding the RMS acquisition, while you report improvements in growth and margins  **[MCO_3403201_3]** , can you elaborate on how RMS has contributed to cross-selling opportunities within Moody's, and what challenges remain in fully realizing its potential across your product offerings?

4. Your adjusted diluted EPS guidance implies Q4 EPS growth will be **relatively flat to slightly down** compared to the prior period and down approximately **30% sequentially from Q3**  **[MCO_3403201_17]** ; can you explain the primary factors behind this expected decline, especially in light of strong year-to-date performance?

5. Given that ARR growth in MA slowed to **9%** due to factors like increased attrition and lower sales to banks and asset managers  **[MCO_3403201_18]** , what specific strategies are you implementing to accelerate ARR growth back to double digits and improve new business sales execution?

3b9ca6bceaed1651a30744a74f5a75165716bca8d3a0507282164c2b6af449a3

691eea3cbd99ad87e09e74c2e25f2862238ff1b607f637f715d2b34690d973dd

### Q3 2024 Earnings Call
- **Issued Period**: Q3 2024
- **Guided Period**: FY 2024
- **Guidance**:
  - **MIS Revenue Growth**: High 20s percentage range  **[MCO_3403201_5]** .
  - **MIS Adjusted Operating Margin**: 59% to 60%  **[MCO_3403201_5]** .
  - **Overall Revenue Growth**: High teens percentage range  **[MCO_3403201_5]** .
  - **Expenses**: Increase by approximately 10%  **[MCO_3403201_5]** .
  - **Adjusted Operating Margin**: 47% to 48%  **[MCO_3403201_5]** .
  - **Free Cash Flow**: Approximately $2.3 billion  **[MCO_3403201_5]** .
  - **Adjusted Diluted EPS**: $11.90 to $12.10  **[MCO_3403201_5]** .
  - **ARR for MA**: High single to low double digits  **[MCO_3403201_18]** .
  - **MA Adjusted Operating Margin**: 30% to 31%  **[MCO_3403201_22]** .

### Q2 2024 Earnings Call
- **Issued Period**: Q2 2024
- **Guided Period**: FY 2024
- **Guidance**:
  - **MIS Revenue Growth**: High-teens percentage range  **[MCO_3393957_5]** .
  - **MIS Adjusted Operating Margin**: 58% to 59%  **[MCO_3393957_5]** .
  - **MA Revenue Growth**: High single-digit growth  **[MCO_3393957_5]** .
  - **MA Adjusted Operating Margin**: 30% to 31%  **[MCO_3393957_5]** .
  - **Year-End ARR Growth for MA**: High single-digit to low double-digit percent growth  **[MCO_3393957_5]** .
  - **Overall Revenue Growth**: Low teens percent range  **[MCO_3393957_5]** .
  - **Expenses Growth**: High single-digit range  **[MCO_3393957_5]** .
  - **Adjusted Operating Margin**: 46% to 47%  **[MCO_3393957_5]** .
  - **Free Cash Flow**: $2 billion to $2.2 billion  **[MCO_3393957_5]** .
  - **Share Repurchases**: Approximately $1.3 billion  **[MCO_3393957_5]** .
  - **Adjusted Diluted EPS**: $11 to $11.40  **[MCO_3393957_5]** .

### Q1 2024 Earnings Call
- **Issued Period**: Q1 2024
- **Guided Period**: FY 2024
- **Guidance**:
  - **MIS Revenue Growth**: High single-digit to low double-digit percent growth  **[MCO_3382162_6]** .
  - **MA Revenue Growth**: High single-digit percent range  **[MCO_3382162_6]** .
  - **ARR Growth**: Low double-digit range  **[MCO_3382162_6]** .
  - **MA Operating Margin**: 30% to 31%  **[MCO_3382162_6]** .
  - **MIS Adjusted Operating Margin**: 56% to 58%  **[MCO_3382162_6]** .
  - **Adjusted Diluted EPS**: $10.40 to $11  **[MCO_3382162_6]** .
  - **Total Company Operating Margin**: 44% to 46%  **[MCO_3382162_12]** .
  - **Incentive Compensation**: $105 million for Q1, with expectations for subsequent quarters  **[MCO_3382162_22]** .
  - **Expense Cadence**: Flat in Q2, gradual increases in Q3 and Q4  **[MCO_3382162_22]** .
  - **FX Assumptions**: Euro to USD at $1.08, Euro to GBP at $1.26  **[MCO_3382162_6]** .
  - **Issuance Outlook**: Mid- to high single-digit growth  **[MCO_3382162_5]** .
  - **MIS Margin Seasonality**: Higher in Q2, decreasing sequentially  **[MCO_3382162_21]** .
  - **MA Revenue Outlook**: Adjusted for currency and sales seasonality  **[MCO_3382162_7]** .

### Q4 2023 Earnings Call
- **Issued Period**: Q4 2023
- **Guided Period**: FY 2024
- **Guidance**:
  - **Revenue Growth**: High single to low double-digit percent range  **[MCO_3373071_6]** .
  - **MIS Revenue Growth**: High single to low double-digit percent range  **[MCO_3373071_2]** .
  - **MA Revenue Growth**: Approximately 10%  **[MCO_3373071_1]** .
  - **Adjusted Operating Margin**: 44% to 46%  **[MCO_3373071_6]** .
  - **MIS Adjusted Operating Margin**: 55.5% to 57.5%  **[MCO_3373071_7]** .
  - **MA Adjusted Operating Margin**: 30% to 31%  **[MCO_3373071_7]** .
  - **Adjusted Diluted EPS**: $10.25 to $11  **[MCO_3373071_2]** .
  - **Free Cash Flow**: $1.9 billion to $2.1 billion  **[MCO_3373071_7]** .
  - **Depreciation and Amortization**: Approximately $450 million  **[MCO_3373071_7]** .
  - **Tax Rate**: 22% to 24%  **[MCO_3373071_2]** .
  - **Capital Expenditures**: Increase for SaaS-based solutions  **[MCO_3373071_7]** .
  - **Recurring Revenue**: Low double-digit percent growth  **[MCO_3373071_1]** .

cd6bbfabe76fb7deee9a2ed3f4d64f5a4ce3fec838645ed89ea30cc0a12f54bb

- Other CRAs (Credit Rating Agencies)  **[0001059556-24-000017_mco-20231231.htm:36]** 
- Investment banks and brokerage firms that offer credit opinions in research  **[0001059556-24-000017_mco-20231231.htm:36]** 
- Non-NRSROs that evaluate debt risk for issuers or investors  **[0001059556-24-000017_mco-20231231.htm:36]** 
- Local rating agencies supported by governments in some countries  **[0001059556-24-000017_mco-20231231.htm:36]** 
- Consulting firms and technology and information providers  **[0001059556-24-000017_mco-20231231.htm:38]** 

7dae58b86b9f4c9767650cb1b2bd11d7f897c82b10af5a3888a89a273bcfc087

0e3504bdba8d1ec5b830e39b3f7f3718aa2a28c7cc4a07ecd101b3c91706e9fc

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

United States

Non-U.S.

- EMEA

- Asia-Pacific

- Americas

Total Revenue

9045badfcd5d44c98c3e6bf5fba10190354500aed5f5a02844a128554dda11bd

| Name             | Position                                                      | Start Date       | Short Bio                                                                                                                                                                                                                                                                                                                                 |
|------------------|---------------------------------------------------------------|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Robert Fauber    | President and Chief Executive Officer                         | January 2021     | Robert Fauber has served as the President and Chief Executive Officer of Moody's Corporation since January 2021. He joined the Board of Directors in October 2020 and currently serves on the Executive Committee of the Board. Prior to his role as CEO, Mr. Fauber held several senior leadership positions within Moody's  **[0001059556-24-000017_mco-20231231.htm:21]** **[0001193125-24-044477_d636277dpre14a.htm:38]** **[0001059556-23-000016_mco-20221231.htm:23]** **[0001193125-23-064073_d433468ddef14a.htm:38]** . |
| Caroline Sullivan| Interim Chief Financial Officer, Chief Accounting Officer, and Controller | December 2018    | Caroline Sullivan is the Interim Chief Financial Officer, Chief Accounting Officer, and Corporate Controller at Moody's Corporation. She has served as the company's Chief Accounting Officer and Corporate Controller since December 2018. Prior to joining Moody's, she held several roles at Bank of America from 2011 to 2018  **[0001059556-24-000017_mco-20231231.htm:21]** **[0001059556-23-000016_mco-20221231.htm:24]** . |
| Richard Steele   | Senior Vice President and General Counsel                     | September 2023   | Richard Steele is the Senior Vice President and General Counsel at Moody's Corporation. He has served in this role since September 2023. Mr. Steele joined Moody's KMV Company in 2006 as its Chief Legal Officer and was named General Counsel of Moody's Analytics in January 2008  **[0001059556-24-000017_mco-20231231.htm:21]** .                                                                                   |
| Stephen Tulenko  | President, Moody's Analytics                                  | November 2019    | Stephen Tulenko has served as the President of Moody's Analytics since November 2019. Before this role, he was the Executive Director of ERS from 2013 to October 2019 and the Executive Director of Global Sales, Customer Service, and Marketing from 2008 to 2013. Mr. Tulenko joined Moody's in 1990  **[0001059556-24-000017_mco-20231231.htm:21]** **[0001059556-23-000016_mco-20221231.htm:24]** .                                                        |
| Michael West     | President, Moody's Investors Service                          | November 2019    | Michael West has served as the President of Moody's Investors Service, Inc. since November 2019. Prior to this role, he was the Managing Director—Head of MIS Ratings and Research from June 2016 to October 2019. Michael West joined Moody's in 1998 after working at Bank of America and HSBC in various credit roles  **[0001059556-24-000017_mco-20231231.htm:21]** **[0001059556-23-000016_mco-20221231.htm:24]** .                                      |

1f098c73bc781b1740b6f5593e5429630a53f4c4d5770da421c7c74dc6c90f55

| Program Details          | Program 1                       | Program 2                       |
|--------------------------|---------------------------------|---------------------------------|
| Approval Date            | February 5, 2024  **[0001059556-24-000184_mco-20240930.htm:55]** **[0001059556-24-000184_mco-20240930.htm:67]**          | October 15, 2024  **[0001059556-24-000184_mco-20240930.htm:55]** **[0001059556-24-000184_mco-20240930.htm:67]**          |
| End Date/Duration        | N/A                             | N/A                             |
| Total Additional Amount  | **$1 billion**  **[0001059556-24-000184_mco-20240930.htm:55]** **[0001059556-24-000184_mco-20240930.htm:67]**            | **$1.5 billion**  **[0001059556-24-000184_mco-20240930.htm:55]** **[0001059556-24-000184_mco-20240930.htm:67]**          |
| Remaining Authorization  | **$547 million**  **[0001059556-24-000184_mco-20240930.htm:55]** **[0001059556-24-000184_mco-20240930.htm:67]**          | **$1.5 billion**  **[0001059556-24-000184_mco-20240930.htm:55]** **[0001059556-24-000184_mco-20240930.htm:67]**          |
| Details                  | Part of capital allocation strategy to maintain financial flexibility and manage leverage around a **BBB+ rating**.  **[MCO_3226215_7]**  | Recently authorized, full amount likely available.  **[0001059556-24-000184_mco-20240930.htm:55]** **[0001059556-24-000184_mco-20240930.htm:67]**  |

412c8434b8ff3f5b2e2f914662d339688c984120cd9cdebe688523d2d97a71f5

**Annual guidance for FY 2024:**
- **MIS Revenue Growth**: High 20s percentage range  **[MCO_3403201_5]**  (raised from high-teens percentage range  **[MCO_3393957_5]** )  
- **MIS Adjusted Operating Margin**: 59% to 60%  **[MCO_3403201_5]**  (raised from 58% to 59%  **[MCO_3393957_5]** )  
- **Overall Revenue Growth**: High teens percentage range  **[MCO_3403201_5]**  (raised from low teens percent range  **[MCO_3393957_5]** )  
- **Expenses**: Increase by approximately 10%  **[MCO_3403201_5]**  (raised from high single-digit range  **[MCO_3393957_5]** )  
- **Adjusted Operating Margin**: 47% to 48%  **[MCO_3403201_5]**  (raised from 46% to 47%  **[MCO_3393957_5]** )  
- **Free Cash Flow**: Approximately $2.3 billion  **[MCO_3403201_5]**  (raised from $2 billion to $2.2 billion  **[MCO_3393957_5]** )  
- **Adjusted Diluted EPS**: $11.90 to $12.10  **[MCO_3403201_5]**  (raised from $11 to $11.40  **[MCO_3393957_5]** )  
- **ARR for MA**: High single to low double digits  **[MCO_3403201_18]**  (no change from prior guidance  **[MCO_3393957_5]** )  
- **MA Adjusted Operating Margin**: 30% to 31%  **[MCO_3403201_22]**  (no change from prior guidance  **[MCO_3393957_5]** )  

5e202eaa33b175081848178f70c904d8fc8825c53d3e9baa76402eb1a83b2b0e

| Name     | Start Date | End Date | Reason for Change |
|----------|------------|----------|-------------------|
| KPMG LLP | 2008  **[0001059556-24-000017_mco-20231231.htm:84]**    | Present  | Current auditor   |

a0865aa43abaef58b2f6d0bfbe16327b805508a0fbc90654985e77461597778a

719729895554ba72e03e9f7a49b024088c1a426074e09faad1ee770337b48a40

- Total Revenue: $1,813 million (+23% YoY)  **[0001059556-23-000102_mco-20230930.htm:16]** **[0001059556-24-000184_mco-20240930.htm:15]**   
- Moody’s Analytics: $831 million (+7% YoY)  **[0001059556-23-000102_mco-20230930.htm:39]** **[0001059556-24-000184_mco-20240930.htm:15]**   
- Moody’s Investors Service: $982 million (**+32%** YoY)  **[0001059556-23-000102_mco-20230930.htm:39]** **[0001059556-24-000184_mco-20240930.htm:15]**   
  - Corporate Finance: $515 million (**+49%** YoY)  **[0001059556-23-000102_mco-20230930.htm:15]** **[0001059556-24-000184_mco-20240930.htm:15]**   
- United States Revenue: $999 million (+30% YoY)  **[0001059556-23-000102_mco-20230930.htm:15]** **[0001059556-24-000184_mco-20240930.htm:15]**   
- Non-U.S. Revenue: $814 million (+16% YoY)  **[0001059556-23-000102_mco-20230930.htm:15]** **[0001059556-24-000184_mco-20240930.htm:15]**   
- Net Income: $534 million (**+1,269%** YoY)  **[0001059556-23-000102_mco-20230930.htm:7]** **[0001059556-24-000184_mco-20240930.htm:6]**   

9cc0f4025b352fc8cb915b3bfed3f80afa167b0c8cc99511955fc047b97e2fe7

447a1d1f93c2caa32d2291019db7be02458276d2630d2e6359cfa4202e510bbc

45a326fbf4dd498960f6df484c41104ec928d26ffaf37900c0be5f859550f3b6

| Year  | Amount Due (in millions) | Debt Type                  | Interest Rate | % of Total Debt |
|-------|--------------------------|----------------------------|---------------|-----------------|
| 2025  | $700 **[0001059556-24-000184_mco-20240930.htm:32]**             | 3.75% 2020 Senior Notes **[0001059556-24-000184_mco-20240930.htm:32]** | 3.75% **[0001059556-24-000184_mco-20240930.htm:32]** | 9.0% = (700 / 7,795) * 100 **[0001059556-24-000184_mco-20240930.htm:32]** **[0001059556-24-000184_mco-20240930.htm:32]** |
| 2027  | $558 **[0001059556-24-000184_mco-20240930.htm:32]**             | 1.75% 2015 Senior Notes **[0001059556-24-000184_mco-20240930.htm:32]** | 1.75% **[0001059556-24-000184_mco-20240930.htm:32]** | 7.2% = (558 / 7,795) * 100 **[0001059556-24-000184_mco-20240930.htm:32]** **[0001059556-24-000184_mco-20240930.htm:32]** |
| 2028  | $500 **[0001059556-24-000184_mco-20240930.htm:32]**             | 3.25% 2017 Senior Notes **[0001059556-24-000184_mco-20240930.htm:32]** | 3.25% **[0001059556-24-000184_mco-20240930.htm:32]** | 6.4% = (500 / 7,795) * 100 **[0001059556-24-000184_mco-20240930.htm:32]** **[0001059556-24-000184_mco-20240930.htm:32]** |
| 2029  | N/A                      | 4.25% 2018 Senior Notes **[0001059556-24-000184_mco-20240930.htm:32]** | 4.25% **[0001059556-24-000184_mco-20240930.htm:32]** | N/A             |
| 2030  | N/A                      | 0.950% 2019 Senior Notes **[0001059556-24-000184_mco-20240930.htm:32]** | 0.950% **[0001059556-24-000184_mco-20240930.htm:32]** | N/A             |
| 2031  | N/A                      | 2.00% 2021 Senior Notes **[0001059556-24-000184_mco-20240930.htm:32]** | 2.00% **[0001059556-24-000184_mco-20240930.htm:32]** | N/A             |
| 2032  | N/A                      | 4.25% 2022 Senior Notes **[0001059556-24-000184_mco-20240930.htm:32]** | 4.25% **[0001059556-24-000184_mco-20240930.htm:32]** | N/A             |
| 2034  | N/A                      | 5.00% 2024 Senior Notes **[0001059556-24-000184_mco-20240930.htm:32]** | 5.00% **[0001059556-24-000184_mco-20240930.htm:32]** | N/A             |
| 2041  | N/A                      | 2.75% 2021 Senior Notes **[0001059556-24-000184_mco-20240930.htm:32]** | 2.75% **[0001059556-24-000184_mco-20240930.htm:32]** | N/A             |
| 2044  | N/A                      | 5.25% 2014 Senior Notes **[0001059556-24-000184_mco-20240930.htm:32]** | 5.25% **[0001059556-24-000184_mco-20240930.htm:32]** | N/A             |
| 2048  | N/A                      | 4.875% 2018 Senior Notes **[0001059556-24-000184_mco-20240930.htm:32]** | 4.875% **[0001059556-24-000184_mco-20240930.htm:32]** | N/A             |
| 2050  | N/A                      | 3.25% 2020 Senior Notes **[0001059556-24-000184_mco-20240930.htm:32]** | 3.25% **[0001059556-24-000184_mco-20240930.htm:32]** | N/A             |
| 2052  | N/A                      | 3.75% 2022 Senior Notes **[0001059556-24-000184_mco-20240930.htm:32]** | 3.75% **[0001059556-24-000184_mco-20240930.htm:32]** | N/A             |
| 2060  | N/A                      | 2.55% 2020 Senior Notes **[0001059556-24-000184_mco-20240930.htm:32]** | 2.55% **[0001059556-24-000184_mco-20240930.htm:32]** | N/A             |
| 2061  | N/A                      | 3.10% 2021 Senior Notes **[0001059556-24-000184_mco-20240930.htm:32]** | 3.10% **[0001059556-24-000184_mco-20240930.htm:32]** | N/A             |
| Thereafter | $6,037 **[0001059556-24-000184_mco-20240930.htm:32]**      | N/A                        | N/A           | 77.4% = (6,037 / 7,795) * 100 **[0001059556-24-000184_mco-20240930.htm:32]** **[0001059556-24-000184_mco-20240930.htm:32]** |

2ecfe57683b1262bf26acafee273fc5da0c0065a3bef918ff18547a88d348b46

2baf9ef8d01984098f73bb3b8d09e18ada8f5e29464a0be8ddd2303a48d5a620

- **Moody's adjusted diluted EPS guidance for Q4 implies growth will be relatively flat to slightly down** compared to the prior year, and **down approximately 30% sequentially from Q3**, indicating a potential slowdown in earnings momentum.  **[MCO_3403201_17]**
- **MIS revenue and margins are expected to be lower in Q4** due to anticipated lower revenues, which could negatively impact overall profitability.  **[MCO_3403201_17]**
- The company recorded an **increase in incentive compensation accruals by 54% in Q3 2024** compared to the prior year, with total incentive compensation expected to be **approximately $490 million for the full year**, potentially pressuring margins.  **[MCO_3403201_14]**

6510ce696d86e14a5f7414b2f96e1157ad41dcfa58452fd988bc3601c71fde9e

- **Moody's Analytics (MA) reduced its revenue outlook due to foreign exchange headwinds and sales linearity, indicating potential softness in the business**.  **[MCO_3382162_13]**  Additionally, the Research & Insights division experienced a **deceleration in ARR growth and modest retention pressures from banks and asset managers**.  **[MCO_3382162_15]** **[MCO_3382162_7]**
- **Expenses are expected to increase in the coming quarters due to strategic investments, merit increases, and variable costs**, which may impact profitability.  **[MCO_3382162_22]**  Specifically, expenses are projected to increase by about **$20 million to $30 million between Q2 and Q3 and by $15 million to $25 million in Q4**.  **[MCO_3382162_22]**
- Despite a strong Q1, **Moody's is not raising its full-year guidance for MIS due to uncertainties such as potential issuance pull-forward, geopolitical tensions, inflation concerns, and upcoming elections**, suggesting caution about future revenue growth.  **[MCO_3382162_9]** **[MCO_3382162_12]** **[MCO_3382162_21]**

14e2ee7a7f05af2daaab54700a9763178801fb29c91223d3796805003cd1d3fc

1. **Issuance Outlook for 2025**  
   **Q:** Can issuance tailwinds offset tougher comps and pull-forward in 2025?  
   **A:** Moody's expects issuance tailwinds to outweigh headwinds in 2025, citing declining speculative-grade default rates, tight spreads near all-time lows, and anticipated lower interest rates creating a favorable environment for new issuance and refinancing. Significant "refunding walls" of nearly **$5 trillion** over the next four years, growth in speculative-grade maturities, and a modest pickup in M&A activity also support a positive outlook. However, macroeconomic factors, the upcoming election, and geopolitical events pose potential risks.  **[MCO_3403201_7]** 

2. **Pull-Forward Impact on Future Issuance**  
   **Q:** Has pull-forward lowered expectations for 2025 issuance growth?  
   **A:** Despite heavier pull-forward in speculative-grade issuance this year, overall pull-forward is in line with historical averages, and forward maturities one year out are **15% higher** than last year. Moody's believes this represents a tailwind for near-term issuance rather than a headwind for 2025 growth.  **[MCO_3403201_13]** 

3. **Private Credit Growth Opportunities**  
   **Q:** How is Moody's capitalizing on private credit market growth?  
   **A:** Moody's sees significant opportunities in the expanding private credit market. Major players like Apollo and Blackstone consider credit rating agencies essential for independent assessments. Moody's is experiencing rapid growth in rating BDCs and fund finance instruments, contributing to their Financial Institutions Group (FIG) revenue. They are also seeing increased demand for ratings in asset-backed finance and project finance, as investors seek third-party risk assessments. Partnerships, such as with MSCI, aim to further leverage these opportunities  **[MCO_3403201_11]** ,.  **[MCO_3403201_21]** 

4. **AI Product Adoption and Impact**  
   **Q:** What is the progress and adoption rate of Moody's AI products?  
   **A:** Moody's has launched several AI-enabled products, including Research Assistant, Navigators, an AI Early Warning System focused on commercial real estate, and automated solutions for banking workflows. Adoption is strong among smaller firms, but larger institutions face longer sales cycles due to regulatory and risk compliance frameworks. While this delays adoption, customer interest remains high, and Moody's expects uptake to increase over time  **[MCO_3403201_9]** ,.  **[MCO_3403201_16]** 

5. **Margin Expansion in Moody's Analytics**  
   **Q:** What are the expectations for MA margin expansion in Q4 and beyond?  
   **A:** Moody's expects the adjusted operating margin in Moody's Analytics (MA) to increase in the fourth quarter, slightly exceeding the guided range due to seasonal revenue strength. For the full year, they are maintaining a margin target of **30% to 31%**. Having completed most investments in areas like GenAI capabilities and platform development, the focus will shift to expanding margins by migrating customers from legacy platforms and disciplined management of discretionary spending, reaffirming commitment to medium-term margin targets.  **[MCO_3403201_22]** 

6. **ARR Growth in Research & Insights**  
   **Q:** Why didn't Research & Insights ARR growth accelerate as expected?  
   **A:** Research & Insights ARR grew **6%** in Q3, lower than the prior **9%** due to pressures in the banking sector and longer sales cycles for GenAI products among large financial institutions. While adoption is slower than anticipated, customer satisfaction remains high with new AI-enabled products, and a strong pipeline is expected to drive modest acceleration, though likely at the lower end of high single-digit growth.  **[MCO_3403201_9]** 

7. **Debt Velocity Below Historical Averages**  
   **Q:** Where does debt velocity stand, and what does it imply for future issuance?  
   **A:** Debt velocity remains below historical averages—approximately **12%** compared to the typical **14%**—due to the total stock of debt growing faster than issuance volume. This suggests room for increased issuance in the future, acting as a potential tailwind for Moody's business.  **[MCO_3403201_8]** 

8. **Favorable Revenue Mix in Ratings**  
   **Q:** What drove stronger transaction revenue relative to issuance growth?  
   **A:** A favorable revenue mix resulted from opportunistic issuance by infrequent investment-grade issuers, strong growth in leveraged finance—which is typically revenue mix friendly—and an uptick in first-time mandates that carry higher fees. Consistent pricing initiatives also contributed to stronger revenue relative to issuance volume.  **[MCO_3403201_14]** 

9. **Impact of AI Adoption Delays**  
   **Q:** Is AI product adoption pacing differently than expected?  
   **A:** Yes, adoption among larger financial institutions is slower due to their need to establish regulatory-compliant risk and control frameworks before deploying AI-enabled solutions. While this extends sales cycles, Moody's remains encouraged by elevated customer engagement and anticipates adoption will grow over time.  **[MCO_3403201_16]** 

10. **Moody's Analytics Medium-Term Targets**  
    **Q:** Any updates on MA's medium-term targets amid deceleration?  
    **A:** Moody's plans to update medium-term targets in the next earnings call. Growth strategies focus on expanding customer relationships in financial services through cross-selling and upselling, and targeting corporates with their extensive company databases for new use cases like trade credit and supplier risk. These initiatives aim to drive growth and achieve medium-term objectives despite current deceleration.  **[MCO_3403201_12]** 

6f11905c85b1acadc7a54e3a1ed7f171ccb1e949bea3655392aabbd0a2574232

1. **MIS Issuance Outlook**  
   **Q:** Why not fully raise MIS guidance despite strong Q1?  
   **A:** Management remains cautious despite a **strong Q1 issuance**, citing uncertainties like inflation, potential rate changes, and upcoming elections. They note possible pull-forward of issuance into the first half and prefer to see sustained M&A activity before adjusting guidance. They expect to be at the higher end of their range but are keeping full-year MIS guidance steady due to these factors.  **[MCO_3382162_9]** 

2. **Impact of Pull-Forward on Issuance**  
   **Q:** How does pull-forward of issuance affect future refinancing walls?  
   **A:** While some refinancing was pulled forward from later years into Q1, management believes that the significant amount of outstanding debt provides a solid base for future issuance. They note that maturity walls in **2025-2026** still present substantial refinancing opportunities, and the pull-forward does not deplete future issuance potential.  **[MCO_3382162_10]** 

3. **MA Revenue Guidance and FX Impact**  
   **Q:** Is the change in MA revenue guidance entirely due to FX?  
   **A:** Yes, the reduced MA revenue outlook is primarily due to a stronger U.S. dollar impacting foreign exchange rates, with some sales seasonality shifting revenue to later in the year. Importantly, ARR growth expectations remain unchanged, reflecting strong underlying business health.  **[MCO_3382162_13]** 

4. **AI Monetization Strategies**  
   **Q:** What's the progress on AI frameworks and monetization?  
   **A:** The company is integrating AI into products with different monetization strategies, including enhancing user experience (navigators) and offering proprietary content integration (skills and assistants). They expect AI to support value propositions, potentially improving pricing and retention, but detailed monetization plans are still evolving.  **[MCO_3382162_11]** 

5. **MA Growth in KYC and Research & Insights**  
   **Q:** What drives growth in KYC and expectations for Research & Insights?  
   **A:** KYC is experiencing strong growth due to expanding demand and product innovation, with revenue growth of **24%** this quarter. For Research & Insights, despite recent deceleration, management expects ARR growth to accelerate in the second half as new enhancements like CreditView expansion and Research Assistant gain traction.  **[MCO_3382162_7]** **[MCO_3382162_24]** 

6. **Margins and Expense Outlook**  
   **Q:** How do you expect margins and expenses to trend?  
   **A:** Despite Q1 outperformance, management maintains full-year margin guidance, increasing MIS adjusted operating margin outlook by **50 bps** and keeping MA margins steady. They plan to manage expenses carefully, investing strategically while building efficiencies, expecting expenses to increase modestly in the second half.  **[MCO_3382162_12]** **[MCO_3382162_22]** 

7. **RMS Progress and Synergies**  
   **Q:** How is RMS contributing to revenue and synergies?  
   **A:** RMS is showing improved ARR growth, now aligning with overall MA growth, driven by customer migration to the Intelligent Risk Platform. This migration enhances cross-selling opportunities and has led to significant customer wins, including providing catastrophe models to large banks for climate risk assessment.  **[MCO_3382162_18]** 

8. **Capital Allocation and Potential Acquisitions**  
   **Q:** Is there a change in capital allocation or acquisition plans?  
   **A:** Management states they are maintaining their capital allocation approach, focusing on thoughtful investment balancing growth and efficiency. They have not changed their buyback pace significantly and have no current plans indicating a shift towards increased acquisitions.  **[MCO_3382162_20]** 

9. **CFO's Focus on Improvement**  
   **Q:** What areas does the new CFO aim to improve?  
   **A:** The new CFO intends to focus on capital allocation, balancing investment in future growth with margin expansion, shifting towards recurring revenue models, and driving efficiencies both internally and for customers. She aims to leverage her experience with SaaS businesses to enhance the company's value.  **[MCO_3382162_17]** 

d4159acf8a81687cccc1a23bc23de379847874459dca5dd548570863ad90258f

- **Moody's KYC solutions are experiencing accelerating growth, with revenue increasing **23%** in the quarter, driven by broadening demand, product innovation, and expansion into corporate markets.**  **[MCO_3382162_24]**
- **Moody's Analytics has a strong sales pipeline and healthy demand drivers, including digitization, automation, and GenAI adoption, supporting continued growth despite cost pressures among financial institution clients.**  **[MCO_3382162_8]**
- **Research & Insights ARR growth is expected to accelerate towards high single digits in the second half of the year, supported by new product enhancements like Research Assistant and unrated coverage expansion, indicating strong future growth prospects.**  **[MCO_3382162_15]**

6c0085322bb6017423bb9e191dae990f87d180000d2bf11f606edc6e1c52a367

- Moody's achieved its highest Annualized Recurring Revenue (**ARR**) growth rate this quarter, over **10%**, with Decision Solutions growing at **13%**, aligning with medium-term targets.  **[MCO_3393957_21]**
- The company has a **healthy sales pipeline** and is experiencing strong demand for its products, including **shorter sales cycles** for its **gen AI offerings** among early adopters.  **[MCO_3393957_12]**
- Despite pressures in certain sectors, Moody's continues to invest in innovation and product development, and has seen the **highest volume of sales meetings post-pandemic**, indicating strong customer engagement and potential for future growth.  **[MCO_3393957_12]** **[MCO_3393957_21]**

e4ca8e272fe9cbaf10cd1da4ac38c9e8743152ed73787d089f1deebb59de8fe9

1. **2024 Debt Issuance Outlook**  
   **Q:** What's your outlook for debt issuance in 2024?  
   **A:** Management expects **2024 debt issuance to be slightly above the long-term average**. They anticipate stronger issuance in the **first half of the year**, with around **30% of annual issuance in Q1**. Issuance is expected to be driven by constructive conditions, tighter spreads, and improving sentiments. **Corporate issuance and leveraged finance** are projected to recover, with **mid-single-digit growth in structured finance**, particularly in ABS and CLOs.  **[MCO_3373071_9]** **[MCO_3373071_10]** **[MCO_3373071_16]** **[MCO_3373071_23]** 

2. **MIS Margin Expansion**  
   **Q:** Why aren't MIS margins higher despite revenue growth?  
   **A:** Management expects **200 basis points of adjusted operating margin expansion in 2024** for MIS. They are investing in technology and resources to enhance efficiency and handle issuance surges without adding staff. These investments aim to drive future efficiencies and maintain their **low 60s percent margin target**.  **[MCO_3373071_11]** **[MCO_3373071_19]** 

3. **GenAI Strategic Investments and ROI**  
   **Q:** How will GenAI investments impact growth and ROI?  
   **A:** Management is investing in **GenAI products**, expecting contributions to revenue growth, particularly in SaaS and hosted solutions. New GenAI products are launching this year, targeting both financial and non-financial sectors. Early engagements show **fast adoption among smaller clients** and transformational projects with larger institutions.  **[MCO_3373071_8]** **[MCO_3373071_12]** **[MCO_3373071_13]** 

4. **Commercial Real Estate Impact**  
   **Q:** How is the commercial real estate stress affecting your business?  
   **A:** The stress in commercial real estate, especially in office sectors, leads to **muted CMBS issuance**. However, demand for risk assessment tools increases, particularly among banking customers using Moody's **CreditLens CRE module**. This situation presents an attractive dynamic as clients seek Moody's insights during heightened risk periods.  **[MCO_3373071_15]** 

5. **Increase in Depreciation and Amortization**  
   **Q:** What's causing the 20% increase in D&A expenses?  
   **A:** The increase in D&A reflects higher capital expenditures in **SaaS product development**. Capitalized software costs are depreciated over **4 to 5 years**, in accordance with U.S. GAAP. This supports growth in SaaS revenues, expected to grow in **low double digits**.  **[MCO_3373071_22]** 

6. **Customer Willingness to Pay for GenAI**  
   **Q:** Are customers willing to pay more for GenAI enhancements?  
   **A:** Early feedback indicates customers recognize the value of GenAI products. **Smaller clients are adopting quickly**, with faster decision cycles and multiyear agreements. **Larger institutions** are engaging at senior levels for **transformational projects**, suggesting a willingness to invest in these solutions.  **[MCO_3373071_13]** **[MCO_3373071_18]** 

04402289a4379566755aab1bfb1ad3e99ba1b6e00a31d7b9584a92876ad58551

- The company's ambitious revenue growth guidance relies on **macro-economic assumptions**, including **rate cuts starting in the second quarter of this year**, which may not materialize, potentially impacting MIS revenue growth.  **[MCO_3373071_16]**
- Despite significant **incremental investments of $60 million** in GenAI products and platforming, the **monetization and ROI are uncertain**, with initial contributions expected only towards the end of 2024.  **[MCO_3373071_8]** **[MCO_3373071_12]** **[MCO_3373071_13]**
- **Margins are being compressed** due to increased investments, particularly in the MA segment, and the company acknowledges that the path to **medium-term margin targets is not linear**, posing a risk to profitability if expected ARR growth doesn't materialize.  **[MCO_3373071_21]** **[MCO_3373071_11]**

75bac783be47285bf1e192f07c050cc86cc6d52549750ea4541250dac9ba818c

- **Moody's is investing heavily in Generative AI (GenAI) and seeing early positive customer adoption of its GenAI-enabled products, such as the Research Assistant, which is expected to drive growth in high-growth areas.**  **[MCO_3373071_8]** **[MCO_3373071_13]**
- **Moody's expects strong revenue growth and margin expansion in both its Moody's Analytics (MA) and Moody's Investors Service (MIS) divisions in 2024, supported by constructive market conditions and increased issuance activity.**  **[MCO_3373071_16]** **[MCO_3373071_7]** **[MCO_3373071_11]**
- **New products like the Research Assistant are experiencing rapid customer uptake, with initial sales faster than normal and customers locking into multiyear agreements, indicating strong demand and potential for accelerated growth.**  **[MCO_3373071_17]** **[MCO_3373071_13]**

a4845427be60bccc4033ca3a45ae99fefa61516c30183532f17158f0b2391168

- **Moody's is expected to benefit from the significant growth in private credit markets**, which are projected to reach up to $3 trillion by 2028. Moody's is well-positioned to provide independent third-party credit assessments for this expanding sector.  **[MCO_3403201_11]**
- **Favorable issuance conditions are anticipated for 2025**, driven by tight spreads, expectations of lower interest rates, and large refunding walls of nearly **$5 trillion over the next 4 years**, particularly in speculative-grade debt which is up **19%**. These factors should support future growth in Moody's ratings business.  **[MCO_3403201_7]**
- **Moody's Analytics has a strong new business pipeline**, especially in areas like KYC where they've launched new products and are leveraging AI for screening agents. This positions MA for future growth, with maintained expectations of high single-digit revenue growth and ARR in the high single to low double digits.  **[MCO_3403201_18]**

4b2787131a3bb7a9648cd987d456244bc7caf51327ef682cc8f32adfe2ba3064

1. **Issuance Pull-Forward and Outlook**  
   **Q:** Does pull-forward issuance affect future periods?  
   **A:** Management acknowledged that while there has been pull-forward issuance both within the year and from 2025, it remains within historical ranges and doesn't alter their outlook for future issuance. They don't expect any material impact on 2025 issuance due to the pull-forward activity seen this year.  **[MCO_3393957_6]** **[MCO_3393957_7]** **[MCO_3393957_15]** 

2. **Moody's Analytics ARR Guidance and MSCI Partnership**  
   **Q:** How does the MSCI partnership affect ARR guidance?  
   **A:** The MSCI partnership involves transitioning to MSCI's ESG scores and integrating them into Moody's solutions, which may impact the sales pipeline and retention in the near term. However, management views this as a positive medium-term development, expecting benefits to materialize in 2025. The ESG scoring and data business is a small part of overall ESG and climate offerings.  **[MCO_3393957_9]** **[MCO_3393957_17]** 

3. **Strategic Investments in AI and New Products**  
   **Q:** What's the progress and impact of AI investments?  
   **A:** Moody's is on track with its AI investments, launching several products like Research Assistant and seeing encouraging signs with increased customers and usage. While not materially impacting revenue yet, management is confident that AI-driven solutions will drive growth over time, with partnerships extending potential monetization pathways.  **[MCO_3393957_10]** **[MCO_3393957_11]** 

4. **Medium-Term Growth Targets for MA**  
   **Q:** Are you rethinking medium-term growth targets?  
   **A:** Management remains confident in their medium-term targets, citing the highest ARR growth rate achieved this quarter at over **10%**, with Decision Solutions growing at **13%**. Despite a tougher environment, they see no need to change the outlook and will revisit targets annually.  **[MCO_3393957_21]** 

5. **Commercial Real Estate Market Concerns**  
   **Q:** How does commercial real estate affect the banking sector?  
   **A:** Management is monitoring commercial real estate, particularly the office sector, but doesn't foresee immediate significant impact on rated banks. They note that Class A office properties have held up well, and they're utilizing their data and models to assess potential stress scenarios.  **[MCO_3393957_16]** 

6. **Data & Information Revenue Growth Deceleration**  
   **Q:** Why did Data & Information revenue growth slow?  
   **A:** The Data & Information subsegment saw organic revenue growth decelerate to **8%** in Q2 from **12%** in Q1 due to product mix and contract nature. First-half growth averaged **10%**, which management sees as reflective of business performance and expects similar growth for the full year.  **[MCO_3393957_13]** 

7. **MA Revenue Growth Guidance**  
   **Q:** Should we expect lower MA revenue growth?  
   **A:** Management anticipates MA revenue growth in the third quarter to align with Q2 levels before ticking back up to the higher end of high single-digit growth in Q4. Recurring revenue grew by **9%** in Q2, and similar growth rates are expected throughout the year, while transactional revenue is declining.  **[MCO_3393957_14]** 

8. **Tighter Purchasing Patterns Impact**  
   **Q:** How are tighter purchasing patterns affecting you?  
   **A:** Cost pressures in the banking and asset management sectors are leading to some pressure on upsells, pricing, and retention rates, particularly with the CreditView offering. Management notes the environment is consistent with earlier in the year and is focusing on articulating their value proposition.  **[MCO_3393957_12]** 

9. **Insurance ARR Growth and Weather Impact**  
   **Q:** Will active weather season boost insurance ARR?  
   **A:** While the insurance ARR grew by **14%**, management doesn't expect the upcoming active weather season to immediately increase revenue or ARR. However, increased focus on climate risk is driving demand for their solutions over time, especially with their SaaS platform.  **[MCO_3393957_20]** 

10. **Land and Expand Strategy for MA Growth**  
    **Q:** What factors will accelerate MA growth?  
    **A:** Management is focusing on a land-and-expand strategy, leveraging cross-sell opportunities with banks and insurance companies, and expanding into corporates with use cases like sales optimization and supplier risk. Recent sales wins with multinational companies reinforce confidence in driving growth.  **[MCO_3393957_19]** 

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Moody's Corp (MCO)

Financials