Q3 2023 Earnings Summary
Reported on Jan 4, 2025 (Before Market Open)
Pre-Earnings Price$481.99Last close (Oct 30, 2023)
Post-Earnings Price$473.00Open (Oct 31, 2023)
Price Change
$-8.99(-1.87%)
- MSCI's strategic acquisition of Burgiss enhances its capabilities in private assets, providing a strong foundation to develop new products like better benchmark indices for private assets, expand climate-related offerings, and accelerate cross-selling opportunities, aiming to significantly outpace sales growth in this area.
- The company maintains strong engagement and momentum across client segments, with 9% run rate growth from asset managers and solid double-digit growth across other major client segments, indicating robust demand for MSCI's products even in uncertain environments.
- MSCI continues to see ESG and Climate as attractive growth areas with big opportunities, achieving high retention rates (96%) and significant growth in Europe (35%) and APAC (22%), reflecting that ESG and Climate are becoming mission-critical structural parts of the investment process.
- MSCI's ESG and Climate segment is experiencing slower growth in the Americas, with growth of only 15% compared to 35% in EMEA, and these challenges are expected to persist due to longer sales cycles and more measured purchasing decisions.
- The acquisition of Burgiss, which has a stand-alone adjusted EBITDA margin of around 15%, is expected to lower MSCI's overall firm margin in 2024, potentially constraining margins next year.
- MSCI is experiencing increased cancellations from clients, particularly hedge funds, due to client events and budget pressures in the current economic environment.