| Metric (Unit) | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|---------------|---------|---------|---------|---------|---------|---------|---------|---------|
| AUM in ETFs (Billion USD) | $1,222.9  **[0001157523-23-000122_a53293691ex991.htm:14]**  | $1,305.4  **[0001157523-23-000602_a53386588ex99_1.htm:13]** **[0001408198-23-000032_msci-20230331.htm:19]**  | $1,372.5  **[0001157523-23-001139_a53475341ex99_1.htm:14]** **[0001408198-23-000039_msci-20230630.htm:25]**  | $1,322.8  **[0001157523-23-001582_a53705949ex99_1.htm:14]** **[0001408198-23-000055_msci-20230930.htm:28]**  | $1,468.9  **[0001157523-24-000130_a53889070ex99_1.htm:15]** **[0001408198-24-000030_msci-20231231.htm:72]**  | $1,582.6  **[0001408198-24-000072_earningsrelease-20240331.htm:14]**  | $1,631.9  **[0001408198-24-000129_earningsrelease-20240630xf.htm:19]**  | $1,761.8  **[0001408198-24-000165_earningsrelease-20240930xf.htm:20]**  |
| Run Rate (USD) | $2,320,307,000  **[0001408198-23-000011_msci-20221231.htm:78]**  | $2,379,110,000  **[0001408198-23-000032_msci-20230331.htm:28]**  | $2,449,801,000  **[0001408198-23-000039_msci-20230630.htm:39]**  | $2,468,390,000  **[0001408198-23-000055_msci-20230930.htm:42]**  | $2,686,161,000  **[0001408198-24-000030_msci-20231231.htm:81]**  | $2,726,484,000  **[0001408198-24-000075_msci-20240331.htm:36]**  | $2,807,292,000  **[0001408198-24-000131_msci-20240630.htm:46]**  | $2,894,190,000  **[0001408198-24-000170_msci-20240930.htm:49]** **[0001408198-24-000165_earningsrelease-20240930xf.htm:20]**  |
| Retention Rate (%) | 93.0  **[0001408198-23-000011_msci-20221231.htm:81]** **[0001157523-23-000122_a53293691ex991.htm:13]**  | 95.2  **[0001408198-23-000032_msci-20230331.htm:31]**  | 95.5  **[0001408198-23-000039_msci-20230630.htm:43]** **[0001157523-23-001139_a53475341ex99_1.htm:13]**  | 95.4  **[0001408198-23-000055_msci-20230930.htm:46]** **[0001157523-23-001582_a53705949ex99_1.htm:13]**  | 93.6  **[0001408198-24-000030_msci-20231231.htm:84]** **[0001157523-24-000130_a53889070ex99_1.htm:14]**  | 92.8  **[0001408198-24-000075_msci-20240331.htm:39]**  | 94.8  **[0001408198-24-000131_msci-20240630.htm:51]**  | 94.2  **[0001408198-24-000170_msci-20240930.htm:54]** **[0001408198-24-000165_earningsrelease-20240930xf.htm:17]**  |

9a068c89d66dcf0a55fc4660495e39cc899b130d905d0fe9ee75fc578eb2c764

| Segment / Quarter | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|-------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| **Index** ($ million) | **329.3**  **[0001157523-23-000122_a53293691ex991.htm:2]**  | **339.4**  **[0001157523-23-000602_a53386588ex99_1.htm:2]**  | **362.3**  **[0001157523-23-001139_a53475341ex99_1.htm:2]**  | **362.1**  **[0001408198-23-000055_msci-20230930.htm:37]**  | **388.0**  **[0001157523-24-000130_a53889070ex99_1.htm:2]**  | **373.9**  **[0001408198-24-000072_earningsrelease-20240331.htm:2]**  | **397.2**  **[0001408198-24-000129_earningsrelease-20240630xf.htm:2]**  | **404.9**  **[0001408198-24-000170_msci-20240930.htm:25]**  |
| **Analytics** ($ million) | N/A | **147.1**  **[0001408198-23-000032_msci-20230331.htm:14]**  | **148.3**  **[0001157523-23-001139_a53475341ex99_1.htm:4]**  | N/A | **172.3**  **[0001157523-24-000130_a53889070ex99_1.htm:2]**  | **164.0**  **[0001408198-24-000072_earningsrelease-20240331.htm:2]**  | N/A | **172.4**  **[0001408198-24-000170_msci-20240930.htm:25]**  |
| **ESG and Climate** ($ million) | N/A | **67.1**  **[0001408198-23-000032_msci-20230331.htm:14]**  | **73.8**  **[0001157523-23-001139_a53475341ex99_1.htm:4]**  | N/A | **87.4**  **[0001157523-24-000130_a53889070ex99_1.htm:2]**  | N/A | N/A | **83.6**  **[0001408198-24-000170_msci-20240930.htm:25]**  |
| **All Other - Private Assets** ($ million) | **33.7**  **[0001157523-23-000122_a53293691ex991.htm:4]**  | **38.7**  **[0001408198-23-000032_msci-20230331.htm:14]**  | **37.7**  **[0001157523-23-001139_a53475341ex99_1.htm:4]**  | **36.0**  **[0001157523-23-001582_a53705949ex99_1.htm:4]**  | **41.4**  **[0001157523-24-000130_a53889070ex99_1.htm:2]**  | N/A | **64.9**  **[0001408198-24-000129_earningsrelease-20240630xf.htm:4]**  | **63.8**  **[0001408198-24-000170_msci-20240930.htm:25]**  |
| **Total Revenue** ($ million) | **576.2**  **[0001157523-23-000122_a53293691ex991.htm:1]**  | **592.2**  **[0001408198-23-000032_msci-20230331.htm:14]**  | **621.2**  **[0001157523-23-001139_a53475341ex99_1.htm:1]**  | **625.4**  **[0001157523-23-001582_a53705949ex99_1.htm:1]**  | **690.1**  **[0001157523-24-000130_a53889070ex99_1.htm:1]**  | **680.0**  **[0001408198-24-000072_earningsrelease-20240331.htm:0]**  | **707.9**  **[0001408198-24-000129_earningsrelease-20240630xf.htm:0]**  | **724.7**  **[0001408198-24-000170_msci-20240930.htm:25]**  |

0a81cae50a17690b944c432ff71205b9ddfc1e954eca8d24c92514b5a45fe0f9

db98c0e9e2464d82439b9ab766c7bb54f8f5360951c3ec068be70f87f5049f07

ad75c02d30e6df3aca3c3b343bf35e960c161547ed13cdbc0d8cbf761ac4b32f

| Metric [USD Million] | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|----------------------|---------|---------|---------|---------|---------|---------|---------|
| **Americas**         | **265.95**  **[0001408198-23-000032_msci-20230331.htm:15]**  | N/A     | N/A     | N/A     | **311.0**  **[0001408198-24-000075_msci-20240331.htm:21]**  | N/A     | **330.2**  **[0001408198-24-000170_msci-20240930.htm:26]**  |
| - United States      | 238.42  **[0001408198-23-000032_msci-20230331.htm:15]**  | N/A     | N/A     | N/A     | 280.7  **[0001408198-24-000075_msci-20240331.htm:21]**  | N/A     | 297.6  **[0001408198-24-000170_msci-20240930.htm:26]**  |
| - Other              | 27.54  **[0001408198-23-000032_msci-20230331.htm:15]**   | N/A     | N/A     | N/A     | 30.4  **[0001408198-24-000075_msci-20240331.htm:21]**   | N/A     | 32.6  **[0001408198-24-000170_msci-20240930.htm:26]**  |
| **EMEA**             | **229.98**  **[0001408198-23-000032_msci-20230331.htm:15]**  | N/A     | N/A     | N/A     | **265.0**  **[0001408198-24-000075_msci-20240331.htm:21]**  | N/A     | **280.1**  **[0001408198-24-000170_msci-20240930.htm:26]**  |
| - United Kingdom     | 91.66  **[0001408198-23-000032_msci-20230331.htm:15]**   | N/A     | N/A     | N/A     | 113.3  **[0001408198-24-000075_msci-20240331.htm:21]**  | N/A     | 122.4  **[0001408198-24-000170_msci-20240930.htm:26]**  |
| - Other              | 138.32  **[0001408198-23-000032_msci-20230331.htm:15]**  | N/A     | N/A     | N/A     | 151.7  **[0001408198-24-000075_msci-20240331.htm:21]**  | N/A     | 157.7  **[0001408198-24-000170_msci-20240930.htm:26]**  |
| **Asia & Australia** | **96.29**  **[0001408198-23-000032_msci-20230331.htm:15]**   | N/A     | N/A     | N/A     | **104.0**  **[0001408198-24-000075_msci-20240331.htm:21]**  | N/A     | **114.4**  **[0001408198-24-000170_msci-20240930.htm:26]**  |
| - Japan              | 26.02  **[0001408198-23-000032_msci-20230331.htm:15]**   | N/A     | N/A     | N/A     | 26.6  **[0001408198-24-000075_msci-20240331.htm:21]**   | N/A     | 28.8  **[0001408198-24-000170_msci-20240930.htm:26]**  |
| - Other              | 70.27  **[0001408198-23-000032_msci-20230331.htm:15]**   | N/A     | N/A     | N/A     | 77.4  **[0001408198-24-000075_msci-20240331.htm:21]**   | N/A     | 85.5  **[0001408198-24-000170_msci-20240930.htm:26]**  |
| **Total Revenue**    | **592.22**  **[0001408198-23-000032_msci-20230331.htm:15]**  | N/A     | N/A     | N/A     | **680.0**  **[0001408198-24-000075_msci-20240331.htm:21]**  | N/A     | **724.7**  **[0001408198-24-000170_msci-20240930.htm:26]**  |

458465ce20ed985eaa5f611f750fa6177244100d930c58c556d34340ec52085d

MSCI Inc. is a leading provider of critical decision support tools and solutions for the global investment community, helping investors address challenges in a transforming investment landscape **[0001408198-24-000075_msci-20240331.htm:23]** **[0001408198-24-000030_msci-20231231.htm:65]** **[0001408198-24-000030_msci-20231231.htm:4]**. The company operates through four reportable segments: Index, Analytics, ESG and Climate, and All Other – Private Assets, which includes Real Assets and Private Capital Solutions **[0001408198-24-000075_msci-20240331.htm:23]** **[0001408198-24-000030_msci-20231231.htm:65]** **[0001408198-24-000030_msci-20231231.htm:4]**. MSCI's product lines include indexes, portfolio construction and risk management tools, ESG and climate solutions, and private asset data and analysis **[0001408198-24-000030_msci-20231231.htm:4]** **[0001408198-24-000075_msci-20240331.htm:7]**.

1. **Index** - Provides a comprehensive range of indexes that serve as benchmarks for global investment portfolios and are used for asset-based fees, primarily calculated based on assets under management linked to MSCI indexes **[0001408198-24-000075_msci-20240331.htm:23]** **[0001408198-24-000131_msci-20240630.htm:27]** **[0001408198-24-000030_msci-20231231.htm:66]**.
2. **Analytics** - Offers portfolio construction and risk management tools that help investors make informed decisions by analyzing and managing investment risks **[0001408198-24-000030_msci-20231231.htm:4]** **[0001408198-24-000075_msci-20240331.htm:7]**.
3. **ESG and Climate** - Delivers ESG and climate solutions that enable investors to integrate environmental, social, and governance factors into their investment processes **[0001408198-24-000030_msci-20231231.htm:4]** **[0001408198-24-000075_msci-20240331.htm:7]**.
4. **All Other – Private Assets** - Includes Real Assets and Private Capital Solutions, providing data and analysis for private asset investments **[0001408198-24-000075_msci-20240331.htm:23]** **[0001408198-24-000030_msci-20231231.htm:65]** **[0001408198-24-000030_msci-20231231.htm:4]**.

52f7bc0040a56cdbfaff148674ec7427300ad8de6b93df4decc872f2d27f0391

1. Given the technical challenges and data access issues in creating private capital indices, how does MSCI plan to ensure the accuracy and reliability of these indices, and what are the key risks associated with relying on data directly from general partners?  **[MSCI_3393945_11]** 

2. With the contribution of price increases to new sales being slightly smaller than last year and with moderated price increases due to the economic environment, how do you plan to sustain revenue growth, especially considering potential pressures on client spending?  **[MSCI_3393945_19]** 

3. Despite the recent strong performance in the Analytics segment, what factors might cause future subscription growth to be lumpy, and how sustainable is double-digit organic growth in this segment given the challenging dynamics you've mentioned?  **[MSCI_3393945_15]** 

4. As you focus on expanding your footprint among mature client segments like asset managers while also targeting newer segments such as wealth managers and corporates, how do you plan to navigate the pressures and headwinds affecting your traditional client base?  **[MSCI_3393945_2]** 

5. With higher AUM levels potentially leading to expenses at the high end of your guidance ranges, how do you balance the need for investment in key growth areas with maintaining attractive profitability and free cash flow conversion?  **[MSCI_3393945_13]** **[MSCI_3393945_20]** 

8ba08543f18878bc26a57bf310bbc2200f27380d8147f810f4e878928888b495

733554cc5b5d0a6d22f741eb840f7e34d0d773c4ce939ae817c0efbf3371f585

### Q3 2024 Earnings Call
- **Issued Period**: Q3 2024
- **Guided Period**: Second half of 2024 (Q3 and Q4 2024)
- **Guidance**:
  1. **Depreciation and Amortization Expense and Operating Expenses**: Increased by **$5 million**, partly due to the impact of acquired intangible amortization expense from the Foxberry acquisition.
  2. **ETF AUM Levels**: Assumes a slight increase from June 30 levels through the end of the year. Higher AUM levels could lead to higher expense guidance ranges.
  3. **Quarterly Effective Tax Rate**: Expected to be in the range of **20% to 22%** for both Q3 and Q4, before any additional discrete items  **[MSCI_3393945_6]** .

### Q2 2024 Earnings Call
- **Issued Period**: Q2 2024
- **Guided Period**: Second half of 2024 (Q3 and Q4 2024)
- **Guidance**:
  1. **Depreciation and Amortization Expense**: Increased by **$5 million**, reflecting the impact of acquired intangible amortization expense from the Foxberry acquisition.
  2. **Operating Expenses**: Increased by **$5 million**, partly due to the Foxberry acquisition.
  3. **ETF AUM Levels**: Assumes a slight increase from June 30 levels through the end of the year. Higher AUM levels could lead to higher expense guidance ranges.
  4. **Quarterly Effective Tax Rate**: Expected to be in the range of **20% to 22%** for both Q3 and Q4, before any additional discrete items  **[MSCI_3393945_6]** .

### Q1 2024 Earnings Call
- **Issued Period**: Q1 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **2024 Guidance Across All Categories**: Assumes AUM will decline slightly in Q2 and rebound gradually in the second half of the year.
  2. **Effective Tax Rate**: Expected to be between **21% to 22%** each quarter before any discrete items  **[MSCI_3380237_7]** .

### Q4 2023 Earnings Call
- **Issued Period**: Q4 2023
- **Guided Period**: FY 2024
- **Guidance**:
  1. **AUM Levels**: Assumes AUM levels remain relatively flat to year-end levels through the first half of 2024, with a modest upturn in the second half.
  2. **Expenses**: Reflect ongoing investments and the impact of acquisitions of Burgiss, Trove, and Fabric, including slightly higher hardware purchases.
  3. **Interest Expense**: Reflects refinancing of credit facilities, assuming the existing balance of approximately **$340 million** remains outstanding for the year.
  4. **Tax Rate**: Reflects the impact of the OECD global minimum tax, statutory rate increases, and a slightly smaller projected impact from windfall benefits.
  5. **Free Cash Flow**: Reflects the expectation of slightly higher cash taxes  **[MSCI_3371135_6]** .

9f27c9401885b43489747608560af5a459796cd679ac9edbe316d857990b3b44

- **S&P Dow Jones Indices LLC** - A joint venture of S&P Global Inc. and CME Group Inc. Competes in the index category  **[0001408198-24-000030_msci-20231231.htm:18]** .
- **FTSE Russell** - A subsidiary of the London Stock Exchange Group plc, competes in the index category  **[0001408198-24-000030_msci-20231231.htm:18]** .
- **Solactive AG** - Competes in the index category  **[0001408198-24-000030_msci-20231231.htm:18]** .
- **Nasdaq Inc** - Competes in the index category  **[0001408198-24-000030_msci-20231231.htm:18]** .
- **Bloomberg Finance L.P.** - Competes in the index category and also in ESG and Climate offerings  **[0001408198-24-000030_msci-20231231.htm:18]** .
- **Axioma (part of SimCorp)** - Competes in analytics offerings  **[0001408198-24-000030_msci-20231231.htm:18]** .
- **BlackRock Solutions** - Competes in analytics offerings  **[0001408198-24-000030_msci-20231231.htm:18]** .
- **FactSet Research Systems Inc.** - Competes in analytics offerings  **[0001408198-24-000030_msci-20231231.htm:18]** .
- **Sustainalytics Holding B.V.** - A part of Morningstar, Inc., competes in ESG and Climate offerings  **[0001408198-24-000030_msci-20231231.htm:18]** .
- **Institutional Shareholder Services Inc.** - Majority owned by Deutsche Börse AG, competes in ESG and Climate offerings  **[0001408198-24-000030_msci-20231231.htm:18]** .
- **Trucost** - An S&P Global Inc. business, competes in ESG and Climate offerings  **[0001408198-24-000030_msci-20231231.htm:18]** .
- **Refinitiv** - A London Stock Exchange Group business, competes in ESG and Climate offerings  **[0001408198-24-000030_msci-20231231.htm:18]** .
- **Moody’s Corporation** - Competes in ESG and Climate offerings  **[0001408198-24-000030_msci-20231231.htm:18]** .

5b7729698650d14bc255bc42472ce0c8c9522e42c7943ce519fc206c0f1e2167

d610ac9351de46195de619e0f146df1898fda615caa52f5ba8c78a3cb4edda50

AUM in ETFs (Billion USD)

Run Rate (USD)

Retention Rate (%)

894ab753893541fc4e4eaab186f62b1191db4df6012954494a95fc1132b18498

Adjustments for Non-Cash Items [USD, Thousands]

Stock-Based Compensation [USD, Thousands]

Changes in Working Capital [USD, Thousands]

Capital Expenditures (CapEx) [USD, Thousands]

Proceeds from Debt [USD, Thousands]

Repayments of Debt [USD, Thousands]

Share Repurchases [USD, Thousands]

Dividend Payments [USD, Thousands]

Net Change in Cash [USD, Thousands]

9363593e92d973b3707debe193650f989a595e0e61ac51327ad0c97d6503b28f

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

| Name                  | Position                                      | Start Date         | Short Bio                                                                                                                                                                                                 |
|-----------------------|-----------------------------------------------|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Henry A. Fernandez    | Chairman and Chief Executive Officer          | 1998               | Henry A. Fernandez has served as **Chairman of the Board since 2007** and as **Chief Executive Officer and a director since 1998**. He was the head of the MSCI business from 1996 to 1998 and served as President from 1998 to October 2017  **[0001408198-24-000030_msci-20231231.htm:23]** **[0001408198-24-000061_msci-20240313.htm:23]** **[0001408198-23-000011_msci-20221231.htm:23]** . |
| C.D. Baer Pettit      | President and Chief Operating Officer         | 2000               | C.D. Baer Pettit has been with MSCI since **2000**. He has served as the company's President since **October 2017** and as Chief Operating Officer since **January 2020**. He was appointed as a Director on the company's Board in **January 2023**  **[0001408198-24-000030_msci-20231231.htm:23]** **[0001408198-24-000061_msci-20240313.htm:24]** **[0001408198-23-000011_msci-20221231.htm:24]** . |
| Andrew C. Wiechmann   | Chief Financial Officer                       | September 2020     | Andrew C. Wiechmann has served as the Chief Financial Officer of MSCI since **September 2020**. He held various roles within the company, including Treasurer and Chief Strategy Officer, before becoming CFO  **[0001408198-24-000030_msci-20231231.htm:23]** **[0001408198-23-000011_msci-20221231.htm:24]** .                             |
| Robert J. Gutowski    | General Counsel                               | January 2020       | Robert J. Gutowski has served as the General Counsel of MSCI since **January 2020**. Before this role, he was the Deputy General Counsel and the Head of Compliance from 2010 to 2019  **[0001408198-24-000030_msci-20231231.htm:23]** **[0001408198-23-000011_msci-20221231.htm:24]** .                                                   |
| Scott A. Crum         | Chief Human Resources Officer                 | April 2014         | Scott A. Crum has served as the Chief Human Resources Officer at MSCI since **April 2014**. Before joining MSCI, he held the position of global head of human resources for four publicly traded companies  **[0001408198-24-000030_msci-20231231.htm:24]** **[0001408198-23-000011_msci-20221231.htm:24]** .                              |
| Michelle Seitz        | Independent Director, Member of the Audit and Risk Committee | August 5, 2024     | Michelle Seitz was appointed as an independent director on the Board of MSCI Inc., effective **August 5, 2024**. She also serves as a member of the Audit and Risk Committee  **[0001408198-24-000139_msci-20240731.htm:1]** **[0001408198-24-000139_exhibit9918-k202408.htm:0]** .                                                           |
| Chirantan "CJ" Desai  | Former Independent Director, Member of the Strategy and Finance Committee | March 11, 2024     | Chirantan "CJ" Desai was appointed as an independent director on the Board of MSCI Inc. on **March 11, 2024**. He resigned from his position as a director on **July 25, 2024**  **[0001408198-24-000061_msci-20240313.htm:31]** **[0001408198-24-000134_msci-20240725.htm:1]** .                                                        |
| C. Jack Read          | Global Controller and Chief Accounting Officer | August 8, 2024     | C. Jack Read serves as the **Global Controller and Chief Accounting Officer** at MSCI Inc. He is listed as an officer in a Form 3 filing dated **August 8, 2024**  **[0001408198-24-000147_xslF345X02/wk-form3_1723233918.xml:0]** .                                                                         |

c66375d6724c045b8f88352df985204d74d7dd7871e03599b8e98c2e89860f88

| Program Details          | Program 1          | Program 2          |
|--------------------------|--------------------|--------------------|
| Approval Date            | July 28, 2022  **[0001408198-24-000170_msci-20240930.htm:21]** **[0001408198-24-000170_msci-20240930.htm:58]**  | October 28, 2024  **[0001408198-24-000170_msci-20240930.htm:27]**  |
| End Date/Duration        | Not stated  **[0001408198-24-000170_msci-20240930.htm:21]** **[0001408198-24-000170_msci-20240930.htm:58]**   | Not stated  **[0001408198-24-000170_msci-20240930.htm:27]**      |
| Total additional amount  | $1,000.0 million  **[0001408198-24-000170_msci-20240930.htm:21]** **[0001408198-24-000170_msci-20240930.htm:58]**  | $1.5 billion  **[0001408198-24-000170_msci-20240930.htm:27]**    |
| Remaining authorization amount | $0 million  **[0001408198-24-000170_msci-20240930.htm:21]** **[0001408198-24-000170_msci-20240930.htm:58]**  | **$405.4 million**  **[0001408198-24-000170_msci-20240930.htm:21]** **[0001408198-24-000170_msci-20240930.htm:58]**  |
| Details                  | Can be modified, suspended, or terminated at any time  **[0001408198-24-000170_msci-20240930.htm:21]** **[0001408198-24-000170_msci-20240930.htm:58]**  | Can be modified, suspended, or terminated at any time  **[0001408198-24-000170_msci-20240930.htm:27]**  |

c2c71d426f6f2250d44b3178f89bf35fc200c4ca1fe23d5b8cba2f4a973bc7dd

**Annual guidance for FY 2024:**
- **Expense Guidance**: MSCI expects to be towards the higher end of their expense guidance range if markets remain at current levels or higher  **[MSCI_3404359_5]**  (no prior guidance)
- **Capital Expenditures (CapEx)**: Increased the CapEx guidance range by $10 million  **[MSCI_3404359_5]**  (no prior guidance)
- **Free Cash Flow Guidance**: Increased the free cash flow guidance range by $80 million  **[MSCI_3404359_5]**  (no prior guidance)
- **Interest Expense Guidance**: Lowered due to the paydown of $125 million on their revolver subsequent to the quarter-end  **[MSCI_3404359_5]**  (no prior guidance)
- **Effective Tax Rate**: 18% to 19.5%  **[MSCI_3404359_5]**  (no prior guidance)

139aa7b9fd48619d7ad7a5f7564680bc2d66645091a074d7daeba4b1eb8bac22

Index

- Recurring Subscriptions

- Asset-Based Fees

- Non-Recurring

Analytics

ESG and Climate

All Other - Private Assets

Total Revenue

516b04129310e953633fc9c491fc6bf09cb0f5b80aa5ed76808ca9b2826e443d

| Name                        | Start Date     | End Date   | Reason for Change                                                                 |
|-----------------------------|----------------|------------|----------------------------------------------------------------------------------|
| PricewaterhouseCoopers LLP  | March 11, 2014  **[0001193125-14-100205_d695246d8k.htm:1] [0001193125-15-069699_d832959dex231.htm:0] [0001193125-15-069699_d832959d10k.htm:101]**  | Present | Current auditor.                                                             |
| Deloitte & Touche LLP       | N/A            | March 11, 2014  **[0001193125-14-100205_d695246d8k.htm:1]**  | The Audit Committee conducted a competitive bidding process and selected PwC.  **[0001193125-14-100205_d695246d8k.htm:1]**  |

f5a650fe7aa3b6b8a6213bff6a3fcc5bd863ec00c3e1da68512700e94f8488dd

58e60c98590c15ae744ea4ea5b3b9b705276e57885149cc700229a82277639a1

d84256e2b6292e6861912defe593ecca2b092fa146b5c02430261625deb68f42

- **MSCI is experiencing strong growth and significant opportunities in the Wealth management segment**, with high levels of client engagement and plans to build further credibility and traction.  **[MSCI_3413554_14]**
- The company sees **optimism about growth in key areas like Index, Wealth Management, Private Capital Solutions, Fixed Income, and Analytics**, which are expected to fuel higher growth in the future.  **[MSCI_3413554_11]**
- **MSCI is well-positioned to benefit from the trend of actively managed ETFs replacing mutual funds**, as this provides new opportunities to support asset managers with their products and services.  **[MSCI_3413554_21]**

7d61f6774509f668e9e21cc10577dfe6c849099dc2e4d6ebd07170725680058a

- **Slowing subscription run rate growth**, with challenges due to lingering impacts from asset management outflows, elevated client events, and pressures working through the system, especially in Europe.  **[MSCI_3413554_11]** **[MSCI_3413554_16]**
- **Increased cancellation rates** in certain segments such as Analytics, Real Assets, and ESG, particularly among corporates and corporate advisors, impacting retention rates and net new sales.  **[MSCI_3413554_12]** **[MSCI_3413554_17]** **[MSCI_3413554_13]**
- **Potential slowdown and uncertainty in ESG (excluding Climate) subscription growth** due to regulatory changes in Europe and lack of focus on sustainability in the U.S., leading to reevaluation and potential downward revision of long-term targets.  **[MSCI_3413554_7]**

846b9a67571ec236a35b472fba5850dab5a7c3311786aafdbb7ce59ffe64df9b

1. **Subscription Growth Outlook**  
   **Q:** When will MSCI's subscription growth reaccelerate?  
   **A:** Despite recent challenges, MSCI is optimistic about future opportunities ( **[MSCI_3413554_11]** ). There is momentum in areas like Index with strong recurring sales, and growth in wealth management, Private Capital Solutions, Private Assets, Fixed Income, and Analytics are expected to fuel higher growth in the future ( **[MSCI_3413554_11]** ).

2. **Pricing Strategy and 2025 Outlook**  
   **Q:** How are you approaching pricing, and what can we expect in 2025?  
   **A:** The contribution to recurring sales from price increases in 2024 was slightly less than in 2023 ( **[MSCI_3413554_9]** ,  **[MSCI_3413554_20]** ). MSCI remains focused on delivering value to clients and is thoughtful and measured with pricing ( **[MSCI_3413554_9]** ,  **[MSCI_3413554_20]** ). There are areas with pricing power, and opportunities will be considered, but dynamics differ across the company ( **[MSCI_3413554_9]** ,  **[MSCI_3413554_20]** ).

3. **Expense Guidance and Investment Plans**  
   **Q:** Why did expenses come in at the low end in 2024, and what's the outlook for 2025?  
   **A:** Expenses in 2024 were lower due to factors like bonus accruals and timing items ( **[MSCI_3413554_19]** ). For 2025, expenses are expected to increase, especially in Q1, driven by compensation and benefits ( **[MSCI_3413554_19]** ). MSCI plans to invest in key growth areas but will continue to drive efficiencies and calibrate spending based on market levels and performance ( **[MSCI_3413554_19]** ).

4. **AI Impact on Efficiency and Innovation**  
   **Q:** How is AI contributing to cost efficiency and product innovation?  
   **A:** AI is reducing data acquisition costs and speeding up time to market, such as mapping private credit data more efficiently ( **[MSCI_3413554_15]** ). It's driving product innovation with AI analytics insights, thematic discovery, and enhancements in climate and ESG data ( **[MSCI_3413554_15]** ). While AI may not inherently enhance pricing power, it will drive sales and growth in 2025 ( **[MSCI_3413554_15]** ).

5. **Cancellation Trends and Subscription Sales Outlook**  
   **Q:** What are the trends in cancellations and subscription sales, and when will they improve?  
   **A:** Cancellations in Q4 were in line with expectations, with lingering impacts from client events and budget constraints ( **[MSCI_3413554_17]** ). Elevated cancels occurred in Real Assets and certain ESG segments ( **[MSCI_3413554_17]** ). MSCI is encouraged by the outlook but expects some lingering noise and elevated cancels ( **[MSCI_3413554_17]** ).

6. **ESG ex Climate Outlook**  
   **Q:** How is the growth outlook for ESG excluding Climate?  
   **A:** MSCI is bullish on ESG ex Climate, seeing no let-up in European institutions' commitment to sustainability despite regulatory adjustments ( **[MSCI_3413554_7]** ). Demand is present, and MSCI is evolving its product line to meet it, with early signs of growth in Asia-Pacific as well ( **[MSCI_3413554_7]** ). The U.S. focus on sustainability is less due to the new administration, but client interest remains ( **[MSCI_3413554_7]** ).

7. **Wealth Segment Strategy and Growth Outlook**  
   **Q:** What are your priorities to maintain strong growth in the Wealth segment?  
   **A:** MSCI sees significant opportunities across product lines, aiming to help wealth managers scale portfolios and improve analytics for CIOs and advisers ( **[MSCI_3413554_14]** ). There's an opportunity to move Private Asset products into the Wealth segment, and 2025 is expected to be a pivotal year with significant deals and increased credibility as a solutions provider ( **[MSCI_3413554_14]** ).

8. **Private Assets Performance and PCS Growth Outlook**  
   **Q:** What's driving the decline in Private Assets retention rates and net new sales, and when will PCS reach 20% growth?  
   **A:** PCS saw steady subscription run rate growth at **15%**, with some volatility in sales and cancels ( **[MSCI_3413554_13]** ). There's softness in recurring net new sales but good traction with new clients and opportunities with new benchmarks and content leveraging AI ( **[MSCI_3413554_13]** ). In Real Assets, continued dynamics and impacts from a large down sale affected performance ( **[MSCI_3413554_13]** ).

9. **Impact of Actively Managed ETFs on MSCI**  
   **Q:** How does the rise of actively managed ETFs affect MSCI's opportunity with active managers?  
   **A:** It's a positive development for MSCI, as active strategies becoming more rules-based align with MSCI's strengths in indexes and portfolio analytics ( **[MSCI_3413554_21]** ). MSCI can help asset managers make active strategies more rules-based and assist in portfolio construction and risk management ( **[MSCI_3413554_21]** ).

10. **Custom Index Growth and Sales Cycles**  
    **Q:** What are the trends in sales cycles and the custom index business?  
    **A:** Elevated markets are improving client confidence, though sales cycles remain long in many areas ( **[MSCI_3413554_10]** ). MSCI is seeing strong momentum in custom indexes, with growth in the mid-teens, and AUM linked to non-market cap indexes grew close to **35%** ( **[MSCI_3413554_10]** ).

11. **Analytics Segment Performance and Outlook**  
    **Q:** What's driving the performance of the Analytics segment, and what's the outlook?  
    **A:** Organic subscription run rate growth remained steady at around **7%**, excluding FX impacts ( **[MSCI_3413554_12]** ). There's momentum in fixed income, wealth, and insights offerings ( **[MSCI_3413554_12]** ). Revenue growth was slightly below run rate growth due to lower implementation-related revenues, expected to continue in the short term ( **[MSCI_3413554_12]** ).

12. **Partnership with Moody's in ESG and Private Credit**  
    **Q:** How is the partnership with Moody's impacting sales growth and product opportunities?  
    **A:** The partnership includes Moody's subscribing to MSCI's ESG data, MSCI using Moody's data to create ESG scores on over **100 million** entities, and an intention to explore collaboration on private credit ( **[MSCI_3413554_18]** ). It's early days, and the impact on sales growth is yet to be seen, with potential to increase the scope ( **[MSCI_3413554_18]** ).

13. **M&A Opportunities and Focus on Organic Growth**  
    **Q:** How do you assess M&A opportunities, and what's your focus?  
    **A:** MSCI is primarily focused on organic growth with opportunities in new use cases and product development ( **[MSCI_3413554_22]** ). They consider acquisitions if they offer high returns comparable to organic investments and are open to strategic bolt-ons in strategic areas ( **[MSCI_3413554_22]** ).

14. **Geographic Trends and Data Sales Conversions**  
    **Q:** What are the differences in client trends between the U.S. and internationally, and did data sales conversions have an outsized impact?  
    **A:** Pressure on asset managers is lingering more in Europe, affecting sales and cancels ( **[MSCI_3413554_16]** ). In the Americas, there's positive change with market levels up ( **[MSCI_3413554_16]** ). Conversions of onetime data sales to subscriptions are normal, with no outsized impact in the quarter ( **[MSCI_3413554_16]** ).

15. **Cancels and Budget Environment**  
    **Q:** How do you view cancellations and the budget environment compared to last year?  
    **A:** Rising markets are supportive, with encouraging signs in client buying behaviors, especially in the U.S. ( **[MSCI_3413554_8]** ). MSCI doesn't expect the same level of cancels as last year but anticipates some volatility ( **[MSCI_3413554_8]** ).

654aa523e2db72e780062dcb033e8aa97d25ac34675608299a287a7a993d4881

MSCI’s Q4 shows a 35% surge in AUM for non-market cap indexes, offset by slower subscription run-rate growth and higher cancels in Analytics/ESG. Wealth, Private Capital Solutions (15% run-rate), and active ETF demand could drive stronger momentum ahead.

528adce12f4c291b6ecca911138b5176151de70187ffea40b943d59d92dc795b

f5390f2d6e1c86a848dbb8f196ae62903c1a4fbaa4b0867fa98938496ce6b108

**Quarterly guidance for Q1 2025:**
- **Adjusted EBITDA Expenses**: Approximately $35 million higher sequentially in Q1 2025 compared to Q4 2024  **[MSCI_3413554_6]**  (no prior guidance)  
- **Capital Expenditures (CapEx)**: Reflects investments in software development across most parts of the business  **[MSCI_3413554_6]**  (no prior guidance)  
- **Free Cash Flow**: Guidance reflects higher cash tax payments in Q1 2025, including $30 million of deferred cash taxes from 2024  **[MSCI_3413554_6]**  (no prior guidance)  
- **Interest Expense**: Assumes current debt levels and does not include any additional financings  **[MSCI_3413554_6]**  (no prior guidance)  
- **Effective Tax Rate**: Q1 2025 expected to include a benefit from discrete items; beyond Q1 2025 anticipated at 19% to 21%  **[MSCI_3413554_6]**  (no prior guidance)  

f7841d2988028b5c0ef26bdd919229472e994768349624e0e4ae8348409c8a0f

- Total Revenue: $743.48M (+8% YoY)  **[0001408198-24-000030_msci-20231231.htm:133]** **[0001408198-24-000030_msci-20231231.htm:72]** **[0001408198-24-000030_msci-20231231.htm:78]** **[0001408198-24-000030_msci-20231231.htm:79]** **[0001408198-25-000014_earningsrelease-20241231xf.htm:13]** **[0001408198-25-000014_earningsrelease-20241231xf.htm:3]**   
- Index: $420.15M (+8% YoY)  **[0001408198-24-000030_msci-20231231.htm:133]** **[0001408198-24-000030_msci-20231231.htm:72]** **[0001408198-24-000030_msci-20231231.htm:78]** **[0001408198-24-000030_msci-20231231.htm:79]** **[0001408198-25-000014_earningsrelease-20241231xf.htm:13]** **[0001408198-25-000014_earningsrelease-20241231xf.htm:3]**   
- Analytics: $172.76M (+5% YoY)  **[0001408198-24-000030_msci-20231231.htm:133]** **[0001408198-24-000030_msci-20231231.htm:72]** **[0001408198-24-000030_msci-20231231.htm:78]** **[0001408198-24-000030_msci-20231231.htm:79]** **[0001408198-25-000014_earningsrelease-20241231xf.htm:13]** **[0001408198-25-000014_earningsrelease-20241231xf.htm:3]**   
- ESG & Climate: $85.22M (**+12% YoY**)  **[0001408198-24-000030_msci-20231231.htm:133]** **[0001408198-24-000030_msci-20231231.htm:72]** **[0001408198-24-000030_msci-20231231.htm:78]** **[0001408198-24-000030_msci-20231231.htm:79]** **[0001408198-25-000014_earningsrelease-20241231xf.htm:13]** **[0001408198-25-000014_earningsrelease-20241231xf.htm:3]**   
- Private Assets: $65.35M (+7% YoY)  **[0001408198-24-000030_msci-20231231.htm:133]** **[0001408198-24-000030_msci-20231231.htm:72]** **[0001408198-24-000030_msci-20231231.htm:78]** **[0001408198-24-000030_msci-20231231.htm:79]** **[0001408198-25-000014_earningsrelease-20241231xf.htm:13]** **[0001408198-25-000014_earningsrelease-20241231xf.htm:3]**   

31d0d2cc52e521c0bbfc680aead699d84a56de062d2746f38ebfb9df8885949f

63ff7e1f790131eb7026f0acdac588105f68c31494ce7476f2e536ab55e77e40

5c2effb581562546302861ea0196876ca9700f9b7e309c8819315bb37fddc2fa

| Year | Amount Due (in billions) | Debt Type                  | Interest Rate (%) | % of Total Debt                                                                 |
|----------|------------------------------|---------------------------------|-----------------------|------------------------------------------------------------------------------------|
| 2029     | 1.312  **[0001408198-24-000170_msci-20240930.htm:18]** **[0001408198-24-000170_msci-20240930.htm:17]**              | Senior Unsecured Notes         | 4.000  **[0001408198-24-000170_msci-20240930.htm:18]** **[0001408198-24-000170_msci-20240930.htm:17]**       | 29.1% = (1.312 / 4.512) * 100  **[0001408198-24-000170_msci-20240930.htm:18]** **[0001408198-24-000170_msci-20240930.htm:17]**                                           |
| 2029     | 0.312  **[0001408198-24-000170_msci-20240930.htm:57]** **[0001408198-24-000170_msci-20240930.htm:17]**              | Revolving Credit Facility      | N/A                   | 6.9% = (0.312 / 4.512) * 100  **[0001408198-24-000170_msci-20240930.htm:57]** **[0001408198-24-000170_msci-20240930.htm:17]**                                           |
| 2030     | 0.900 **[0001408198-24-000170_msci-20240930.htm:17]**                | Senior Unsecured Notes         | 3.625  **[0001408198-24-000170_msci-20240930.htm:18]** **[0001408198-24-000170_msci-20240930.htm:17]**       | 19.9% = (0.900 / 4.512) * 100 **[0001408198-24-000170_msci-20240930.htm:17]**                                            |
| 2031     | 1.600 **[0001408198-24-000170_msci-20240930.htm:17]**                | Senior Unsecured Notes         | 3.875  **[0001408198-24-000170_msci-20240930.htm:18]** **[0001408198-24-000170_msci-20240930.htm:17]**       | 35.5% = (1.600 / 4.512) * 100 **[0001408198-24-000170_msci-20240930.htm:17]**                                            |
| 2033     | 0.700 **[0001408198-24-000170_msci-20240930.htm:17]**                | Senior Unsecured Notes         | 3.250  **[0001408198-24-000170_msci-20240930.htm:18]** **[0001408198-24-000170_msci-20240930.htm:17]**       | 15.5% = (0.700 / 4.512) * 100 **[0001408198-24-000170_msci-20240930.htm:17]**                                            |

d46c5f3c40938d5a4e0e33e21ce8b60bfcf139f49deee9453f37cfcd82b6056f

- MSCI continues to achieve strong growth in its Index segment, with **9% run rate growth** in market cap modules, **20% growth** in custom and specialized modules, and **11% growth** in factor and ESG modules, demonstrating robust demand across multiple client segments.  **[MSCI_3371135_7]**
- The successful integration of Burgiss (now MSCI Private Capital Solutions) has resulted in recurring sales of **$6.2 million** in Q4 and an ending run rate of **$98 million**, growing in the high teens versus the same period last year, indicating significant expansion potential in private capital solutions globally.  **[MSCI_3371135_12]**
- MSCI is investing heavily in innovation, particularly in customization, AI, and Climate solutions, positioning the company for future growth. The Climate opportunity is considered "**enormous**", and MSCI is broadening and deepening capabilities, applying data science and AI to meet client demand.  **[MSCI_3371135_10]**

6c8b3d177fcee725d5ea46aff5d9590c42a02961a526af6930edfba2c6adab73

1. **Elevated Cancellations**  
   **Q:** Do you expect elevated cancellations to continue?  
   **A:** The majority of cancellations related to a global bank merger occurred in Q1, totaling **$4 million** of the **$7 million** in client event cancellations.  **[MSCI_3380237_8]**  Retention rates among asset managers and asset owners remain healthy at **95%** and **97%**, respectively.  **[MSCI_3380237_8]**  We don't expect this level of cancellations to continue moving forward.  **[MSCI_3380237_8]** **[MSCI_3380237_10]** 

2. **Sales Cycle and Bookings**  
   **Q:** When will engagements convert to bookings amid lengthening sales cycles?  
   **A:** We're seeing longer sales cycles and budget constraints impacting buying decisions.  **[MSCI_3380237_10]**  Despite this, client engagement remains strong, and we have a solid pipeline.  **[MSCI_3380237_10]**  Once pressures alleviate, we expect encouraging growth, but it may take time to work through.  **[MSCI_3380237_9]** **[MSCI_3380237_10]** 

3. **Custom Index Products Growth**  
   **Q:** What's your outlook on custom index products growth?  
   **A:** Custom index products saw run rate growth of **19%**.  **[MSCI_3380237_11]** **[MSCI_3380237_14]**  Use cases are broad, spanning asset owners, asset managers, and structured products linked to our wealth segment strategy.  **[MSCI_3380237_14]**  We see a large upside and are excited about our acquisition of Foxberry to accelerate growth.  **[MSCI_3380237_14]** 

4. **Balancing Investments and Margins**  
   **Q:** How are you balancing investments with margin performance?  
   **A:** We aim to maintain high profitability while investing in future growth.  **[MSCI_3380237_15]**  We keep investment levels high despite headwinds by focusing on efficiency.  **[MSCI_3380237_15]**  Maintaining short-term profitability helps us focus on high-return investments.  **[MSCI_3380237_15]**  We're not planning to significantly change EBITDA margins.  **[MSCI_3380237_15]** 

5. **Investment Focus Areas**  
   **Q:** Where are you focusing investments to drive long-term growth?  
   **A:** We're focusing on growth of index products, including derivatives, ESG, thematic, and climate indices.  **[MSCI_3380237_16]**  We're also investing in direct indexing in wealth management and fixed income indexation.  **[MSCI_3380237_16]**  Sustainability, ESG, and climate remain important, along with tools for private assets as private credit evolves.  **[MSCI_3380237_16]** 

6. **Decline in Basis Point Fees**  
   **Q:** What's causing the decline in basis point fees in the Index segment?  
   **A:** Basis point fees declined from **2.50** to **2.48** basis points due to mix shift.  **[MSCI_3380237_17]**  There's a lower contribution from higher-fee international products and higher contribution from lower-fee U.S. products.  **[MSCI_3380237_17]**  Over time, we expect fees to gradually come down due to mix shift, but asset growth should offset this.  **[MSCI_3380237_17]** 

7. **ESG and Climate Demand**  
   **Q:** How will new regulations affect ESG and Climate demand?  
   **A:** Regulations like CSRD in Europe are important tailwinds, notably in EMEA and jurisdictions like Australia.  **[MSCI_3380237_12]**  We focus on financial materiality in ESG, which is not a political issue.  **[MSCI_3380237_12]**  Demand is increasing, and we're confident in bringing value to investors with our insights.  **[MSCI_3380237_12]** 

8. **Application of AI**  
   **Q:** How will AI benefit your products and efficiencies?  
   **A:** AI brings efficiencies by helping us complete tasks faster and reinvest in growth opportunities.  **[MSCI_3380237_18]**  We're applying AI in product areas, launching Analytic Insights to help clients gain direct insights from complex data.  **[MSCI_3380237_18]**  Being data-rich, AI allows us to deliver greater insights to clients.  **[MSCI_3380237_18]** 

9. **Capital Allocation Strategy**  
   **Q:** How are you prioritizing share buybacks versus M&A?  
   **A:** Our approach hasn't changed; we pay a steady dividend growing with EPS.  **[MSCI_3380237_19]**  We aim to generate value with excess capital, monitoring for strategic M&A.  **[MSCI_3380237_19]**  Sometimes the best opportunity is investing in MSCI through share buybacks when we see attractive stock opportunities.  **[MSCI_3380237_19]** 

10. **Private Markets Growth**  
    **Q:** Is the Burgiss 20% growth target still on track?  
    **A:** We saw **17%** run rate growth in private capital solutions.  **[MSCI_3380237_20]**  Integration is on track, and we're seeing encouraging signs, including outsized growth in EMEA and good traction in Asia.  **[MSCI_3380237_20]**  We're optimistic about long-term opportunities in private capital solutions.  **[MSCI_3380237_20]** 

11. **Client Retention and Multiple Products**  
    **Q:** Has the percentage of clients subscribing to multiple products changed?  
    **A:** We've historically seen higher retention with clients subscribing to multiple products.  **[MSCI_3380237_13]**  This remains key, with **85%** of subscription run rate from clients subscribing to multiple product lines.  **[MSCI_3380237_13]**  Our interoperable solutions and strategic selling drive higher retention and growth.  **[MSCI_3380237_13]** 

039fbbdc282c83fa3d74a176184efb22a08b19f354345ef827f76ed45c4395f0

1. **ESG and Climate Outlook**  
   **Q:** When will cyclical ESG and Climate headwinds moderate?  
   **A:** We believe that although ESG and Climate are experiencing cyclical downturns, the long-term secular trends remain strong. The world is currently focused on short-term issues like inflation and geopolitics, but we expect attention to return to ESG and Climate investing, leading to recovery in these areas over time. We are not changing our philosophy and are investing for the long term, confident that these areas will provide meaningful revenue growth.  **[MSCI_3404359_6]** **[MSCI_3404359_10]** 

2. **Active Asset Managers Recovery**  
   **Q:** When will active asset managers' budgets improve?  
   **A:** Our largest client segment, active asset managers, has faced challenges but we are beginning to see early signs of improvement. Outflows have stabilized and **AUMs have increased year-over-year**. While clients aren't yet in an expansionary mode, we anticipate more constructive budget setting for **2025**, which should translate into additional demand for our products and services.  **[MSCI_3404359_7]** **[MSCI_3404359_8]** **[MSCI_3404359_15]** **[MSCI_3404359_17]** 

3. **Private Assets Expansion**  
   **Q:** What's the strategy for private assets expansion?  
   **A:** We are excited about expanding in private assets by collecting deeper and broader data, enriched through **AI**. We expect significant expansion in the coming year, serving both LPs and GPs. We're enhancing benchmarking and indexes in private markets beyond real estate, and with new leadership from **Luke**, we're poised to drive this strategy further.  **[MSCI_3404359_6]** **[MSCI_3404359_12]** 

4. **Fixed Income Analytics Growth**  
   **Q:** How much growth potential in fixed income analytics?  
   **A:** Fixed income and multi-asset class analytics have become important components of our growth story. We've significantly enhanced our capabilities over the past **3-5 years**, leading to success we wouldn't have had before. We plan to continue enhancing areas like fixed income performance attribution, expecting this trend to continue as we deliver high-quality analytics to clients.  **[MSCI_3404359_11]** 

5. **Client Budgets and Cancellations**  
   **Q:** Are client budgets improving despite elevated cancellations?  
   **A:** We're beginning to see gradual signs of improvement in client dialogues, which we hope will translate into a stronger sales pipeline. However, we expect **elevated cancellation activity** and longer sales cycles to continue in the near term, particularly as we work through impacts from client events and industry pressures. We're cautiously optimistic about future improvements.  **[MSCI_3404359_7]** **[MSCI_3404359_8]** **[MSCI_3404359_13]** 

6. **Custom Index Solutions Opportunity**  
   **Q:** How significant is the custom index opportunity?  
   **A:** The custom and specialized index solutions are a **very large opportunity** for us, now accounting for close to **10% of index segment run rate revenue**. We're integrating the **Foxberry** acquisition to enhance our capabilities, offering greater speed and flexibility. This growth does not cannibalize other parts of our business and is critical to our growth story across client segments.  **[MSCI_3404359_19]** 

7. **Competitive Displacement Sustainability**  
   **Q:** Is competitive displacement in analytics sustainable?  
   **A:** We are confident in our ability to displace competitors, particularly in ESG and Climate, evidenced by **22% run rate growth in EMEA**. While competition is always evolving, we feel solid about our position and execution across our product lines, including index and analytics.  **[MSCI_3404359_14]** 

8. **RCA Business Performance**  
   **Q:** How is the RCA business performing?  
   **A:** The RCA business has faced challenges due to a significant drop in transaction volumes, which are major revenue drivers. However, we're starting to see transaction volumes pick up, with evidence of compressed spreads between buyers and sellers. We believe we could be turning the corner in this area in the coming year.  **[MSCI_3404359_20]** 

9. **Expense Guidance Amid Higher AUM**  
   **Q:** Why not raise expense guidance despite higher AUM?  
   **A:** While higher AUM levels could push us towards the higher end of our expense guidance range, we're balancing profitability growth with long-term investments. We're investing in key growth areas like rules-based index portfolios, private markets, and **AI** capabilities. Expense dynamics can be nuanced, with timing lags, so we continually calibrate our investments.  **[MSCI_3404359_18]** 

10. **Cautious Outlook vs. Positive Macro**  
    **Q:** Why remain cautious despite positive macro indicators?  
    **A:** Although some areas of our business are performing strongly, we're emphasizing transparency about softer areas. Over **50%** of our subscription run rate is tied to active asset managers who haven't fully recovered yet. We're optimistic that improvements in market conditions will lead to recovery in these segments, but it hasn't happened yet. We're focused on a balanced approach and remain cautiously optimistic.  **[MSCI_3404359_17]** 

75d86faf8025dc1b4cabbfa69e84a3a093b405a300b4f9b4b9e41741f1596e13

- **MSCI experienced elevated cancellations in the first quarter due to client events**, and there is uncertainty about when retention rates will rebound, indicating potential instability in client relationships.  **[MSCI_3380237_20]** **[MSCI_3380237_10]**
- **Clients' tighter budgets and lengthening sales cycles are impacting sales and buying decisions**, which could delay revenue recognition and affect short-term growth.  **[MSCI_3380237_10]** **[MSCI_3380237_9]**
- **Declining basis point fees in the Index segment**, from **2.50 to 2.48 basis points**, suggest margin pressure due to a mix shift towards lower-fee products, potentially impacting future profitability.  **[MSCI_3380237_17]**

8c57c549fc004942a272ef9cd898f8c909419e688d1065f95bef086eed42af4f

- 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.  **[MSCI_3362959_10]**
- 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_3362959_11]**
- MSCI is experiencing increased cancellations from clients, particularly hedge funds, due to client events and budget pressures in the current economic environment.  **[MSCI_3362959_7]** **[MSCI_3362959_11]**

cbf26536bd5fbf6d609a93f90c4e9767a493ae607c19fcb0b4b65a9c1b190aee

1. **Sales Growth and Outlook**  
   **Q:** What's driving strong sales, and what's the outlook?  
   **A:** Sales were solid in Q2, but we haven't seen an inflection yet. We expect lumpiness to continue due to client pressures and longer sales cycles. Q3 can be seasonally softer, but strong client engagement and sustained equity market momentum should eventually lead to increased sales. We're encouraged but remain cautious.  **[MSCI_3393945_7]** 

2. **Asset Manager Challenges**  
   **Q:** Can you sustain double-digit growth amid asset manager challenges?  
   **A:** We don't see our growth rate slowing down despite challenges in traditional active management, which has been over 50% of our subscription revenues. We're increasing penetration in rules-based systematic index investing and very active concentrated management, including private assets. We expect significant growth in these areas, balancing out any cyclical issues in traditional segments.  **[MSCI_3393945_9]** 

3. **Moody's Partnership Impact**  
   **Q:** What's the impact of the Moody's partnership?  
   **A:** The partnership resulted in a significant contribution to new recurring sales in Q2. Moody's can leverage our ESG leadership, while we benefit from their extensive private company database, enhancing our data in areas like ESG and Climate. We see a lot of upside from this collaboration.  **[MSCI_3393945_8]** 

4. **Private Assets Indices**  
   **Q:** How do you view the opportunity in private asset benchmarks?  
   **A:** We're excited about launching 130 private capital indices, building on $11 trillion of high-quality data. Technical challenges include data access, but with our expertise in index construction and global distribution, we're confident we'll lead in private assets. This positions us to provide benchmarks, performance attribution, risk models, and more to LPs and GPs.  **[MSCI_3393945_11]** ,  **[MSCI_3393945_18]** 

5. **Index Subscription Growth**  
   **Q:** What's driving Index subscription growth amid slowdown?  
   **A:** While we've seen a slowdown from softer recurring net new sales, we're witnessing resilience and momentum. Custom and special packages grew by **17%**, reflecting a move towards rules-based systematic and custom investing. We're well-positioned to benefit from trends like direct indexing, which is still in early stages but shows significant potential.  **[MSCI_3393945_10]** 

6. **Margin Expansion and Investment**  
   **Q:** How are you thinking about margins and reinvestment with higher AUM?  
   **A:** We're not targeting specific margin expansion but focus on balancing long-term investment and profitability. With AUM levels higher than expected, if they continue, we'll likely be at the high end of our expense guidance. We'd use higher growth to invest in key areas like custom indices, climate, and private assets.  **[MSCI_3393945_13]** 

7. **ESG and Climate Dynamics**  
   **Q:** Has the ESG and Climate environment improved?  
   **A:** We're seeing a continuation of recent dynamics, with no major changes. Regional growth rates are **9%** in the Americas, **17%** in EMEA, and **20%** in APAC. Opportunities exist in areas like regulations, but industry pressures impact ESG and Climate more significantly. We expect these dynamics to persist short term but are encouraged by long-term prospects.  **[MSCI_3393945_14]** 

8. **Analytics Segment Growth**  
   **Q:** What factors are driving strong Analytics growth?  
   **A:** Strong client engagement and focus on investment risk, credit risk, and liquidity risk are driving performance. Enhancements like our insights offering, which integrates AI capabilities, are gaining traction. We see opportunities but expect some lumpiness due to broader industry pressures.  **[MSCI_3393945_15]** 

9. **Use of AI for Growth and Efficiency**  
   **Q:** How is AI helping drive revenues and efficiencies?  
   **A:** We're using AI across the business, notably in data processes like calculations, production, and extraction in areas like ESG and Climate. AI is leading to cost efficiencies and quality improvements. In new product development, AI enables offerings like geospatial data analysis and enhances our future risk assessments.  **[MSCI_3393945_17]** 

10. **Free Cash Flow Guidance**  
    **Q:** Will you raise full-year free cash flow guidance?  
    **A:** While cash flow performance has been strong, benefiting from high collections and lower cash tax payments, many factors can impact free cash flow. We're only halfway through the year, and fluctuations in billing, collections, and expenses mean we're cautious about adjusting guidance at this point.  **[MSCI_3393945_12]** 

11. **Pricing Strategy**  
    **Q:** What's the role of pricing in new sales, any client changes?  
    **A:** Contribution from price increases was slightly smaller than last year, as we've moderated price hikes due to the economic environment. We're focused on aligning price increases with the value we deliver, factoring in client health and maintaining strong long-term relationships.  **[MSCI_3393945_19]** 

12. **Analytics Margin Expansion**  
    **Q:** What's driving Analytics margin expansion?  
    **A:** Factors include capitalizing software, which increases EBITDA margin, broader expense efficiencies, and being strategic in our investments within Analytics. While we've invested less in some areas to focus on strategic parts, we continue to see compelling opportunities that are both attractive and strategic.  **[MSCI_3393945_16]** 

13. **Second Half Sales Outlook**  
    **Q:** Can you match or exceed last year's second-half sales?  
    **A:** Q3 is typically a softer quarter, with Q4 being stronger. Sales and cancellations can be lumpy, and while we face challenging dynamics, we see strong client engagement and opportunities. We're cautious but hopeful, given sustained equity market momentum.  **[MSCI_3393945_20]** 

2d9b997b64b7e5c53d5f9bd786729e458401f3e27b5a79942492838f7466e5f8

- **MSCI acknowledges challenges and pressures in the sales environment, leading to a cautious outlook and potential unpredictability in revenues.**  **[MSCI_3393945_20]**
- **There is a slowdown in Index subscription growth rate due to a tougher environment and softer recurring net new sales over recent quarters.**  **[MSCI_3393945_10]**
- **Despite investments in private asset benchmarks, MSCI has not yet quantified the market size or timing of revenue opportunities in this area, indicating uncertainty in monetization and growth prospects.**  **[MSCI_3393945_18]**

984143988da7d4b35fd3c63ad430355eb9e3ce91cfba2bf72dda88b7a2c52879

1. **Index Business Outlook**  
   **Q:** Do market headwinds persist for Index sales into 2024?  
   **A:** Despite tough market conditions with flat markets and outflows, MSCI continues to see momentum in Index sales. In 2023, we achieved **9% run rate growth in market cap modules**, **20% growth in custom and specialized modules**, and **11% growth in factor and ESG modules**.  **[MSCI_3371135_7]**  Growth across client segments included **9% among asset managers**, **15% from wealth and broker-dealers**, and **22% among hedge funds**.  **[MSCI_3371135_7]**  We anticipate longer sales cycles and tighter budgets, but the trend toward indexation and demand for our tools remains robust.

2. **ESG and Climate Segment Slowdown**  
   **Q:** Are there signs of improvement in the ESG and Climate segment slowdown?  
   **A:** Growth in ESG and Climate has slowed, particularly in the Americas at **9%**, compared to **25% in Europe** and close to **20% in Asia**.  **[MSCI_3371135_8]**  Clients are taking a more measured approach due to longer sales cycles and cyclical pressures. However, client engagement remains strong, especially around Climate, and we're optimistic due to a rich pipeline of new offerings, including nature and biodiversity datasets and geospatial data.  **[MSCI_3371135_8]**  We expect these headwinds to persist for a couple more quarters but remain positive on the long-term outlook.

3. **Nonrecurring Revenue Increase**  
   **Q:** What drove the increase in nonrecurring revenue in Index and Analytics?  
   **A:** We signed a large contract addressing unlicensed usage of our indexes, leading to a significant nonrecurring revenue boost in Index.  **[MSCI_3371135_11]**  A client had been using our indexes without a license over a long period, and the settlement resulted in past fees being recognized.  **[MSCI_3371135_11]**  In Analytics, nonrecurring revenue was up due to the completion of several implementation-related services, which are recognized upon completion.  **[MSCI_3371135_11]**  These nonrecurring revenues are inherently lumpy and not indicative of ongoing recurring revenue trends.

4. **Expense Guidance Factors**  
   **Q:** What factors influence the expense guidance range?  
   **A:** Our expense guidance assumes markets remain flat in H1 2024 with a slight rebound in H2.  **[MSCI_3371135_13]**  We'll adjust expenses based on market conditions, using upturn and downturn playbooks to manage investment accordingly.  **[MSCI_3371135_13]**  Acquisitions, notably Burgiss, contribute significantly to expense growth, with organic expense growth in the mid- to high single digits.  **[MSCI_3371135_13]**  Additionally, there are seasonal expenses in Q1, with **$10–15 million** higher payroll taxes and benefits.  **[MSCI_3371135_13]** 

5. **Analytics Business Growth**  
   **Q:** What trends support sustaining high single-digit growth in Analytics?  
   **A:** Heightened market uncertainty has increased demand for our risk and performance solutions.  **[MSCI_3371135_9]**  We achieved the highest-ever full-year retention rate in Analytics.  **[MSCI_3371135_9]**  Successes include strong performance in Enterprise Risk and Performance (ERP), traction with liquidity analytics, and favorable feedback on enhanced user experiences.  **[MSCI_3371135_9]**  Factor models and equity analytics showed strong momentum, and the new Risk Insights offering gained early traction.  **[MSCI_3371135_9]**  While we anticipate some lumpiness due to client concentration among broker-dealers and hedge funds, long-term dynamics remain encouraging.

6. **Burgiss Integration Progress**  
   **Q:** How is the integration with Burgiss progressing?  
   **A:** We're pleased with the Burgiss integration, benefiting from our prior minority stake and familiarity with the business.  **[MSCI_3371135_12]**  Our senior executive, Jay McNamara, now co-heads the business, revitalizing client activity and go-to-market strategies.  **[MSCI_3371135_12]**  The Burgiss sales team was already trained in the MSCI way, facilitating seamless collaboration with MSCI's client coverage team.  **[MSCI_3371135_12]**  We see significant global opportunities to expand in Private Capital Solutions and anticipate strong numbers in 2024.

7. **Scaling Physical Asset Climate Business**  
   **Q:** How are you scaling the physical asset business within Climate offerings?  
   **A:** We recognize the enormous Climate opportunity and are broadening our capabilities in areas we weren't previously present.  **[MSCI_3371135_10]**  Client demand is high, and we're applying data science and AI to develop new solutions.  **[MSCI_3371135_10]**  The business model remains subscription-based, integrated with our normal sales approach, enriching our capabilities across the board.  **[MSCI_3371135_10]** 

db4df5b0ea16a77a0b0fe55ad3f290d52bb6bf52303c09c9b9360c318428c3ad

- **Slowdown in ESG and Climate segment growth, particularly in the Americas with only 9% growth, due to clients taking a more measured approach and longer sales cycles**  **[MSCI_3371135_9]** ,.
- **Expectations of 'lumpiness' in sales and cancellations in the Analytics segment, especially due to higher concentration of broker-dealers and hedge funds facing cyclical pressures**.  **[MSCI_3371135_12]**
- **Market headwinds causing tighter budgets and longer sales cycles, leading the company to be cautious about increasing investment levels despite significant opportunities, which may impact future growth**.  **[MSCI_3371135_7]**

b0faa071948eb8b9dc3fe15028ac02d21d5d47e641a3f585b952340f49596be8

- MSCI is **expanding its leadership into private assets**, aiming to become the global leader in private market indices with the launch of **MSCI Private Capital Indexes**. The company leverages access to **$15 trillion** of high-quality private assets data to offer comprehensive tools and benchmarks  **[MSCI_3393945_11]** **[MSCI_3393945_18]** .
- The company is experiencing **strong growth in its Analytics business**, delivering double-digit organic growth. Notably, Analytics achieved its **best-ever Q2 for new recurring subscription sales** at over **$21 million** and a **retention rate of close to 96%**, reflecting enhanced products and strong client engagement  **[MSCI_3393945_1]** **[MSCI_3393945_15]** .
- MSCI is leveraging **artificial intelligence** to drive both **revenue growth** and **cost efficiencies**. With AI integrated into new products like **MSCI AI Portfolio Insights**, the company is improving data collection and production processes, positioning itself for future margin expansion and enhanced product offerings  **[MSCI_3393945_17]** .

9e85ccd27353a1870b2448e1be96bae4564287f8f880b9f19ce830a4f9721ccf

- **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.**  **[MSCI_3362959_17]**
- **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_3362959_7]**
- **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_3362959_10]**

81ccfff72661cb6498a91c17fcb48bbf6dab8cf40d3ea7ba07f053c4ddf0336c

- **MSCI is focusing on the continued growth of its index expansion**, including opportunities in derivative products, non-market cap indices in ESG, thematic, climate, and factors, as well as growth from direct indexing in wealth management by enabling portfolio customization using indices.  **[MSCI_3380237_16]**
- **The company sees significant potential in fixed income indexation and in providing transparency, performance, and risk tools for private assets**, capitalizing on the shift in private credit from balance sheets to fund structures, which increases demand for transparency tools.  **[MSCI_3380237_16]**
- **MSCI is expanding into client segments beyond active managers, such as banks, hedge funds, corporates, and asset owners, where it sees enormous growth opportunities**, particularly in non-asset management segments.  **[MSCI_3380237_16]**

64cdd327a81a57548c3b6be61498e86ca555e828490430ef2fd79ada409ff8cf

MSCI Inc (MSCI)

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