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Thomson Reuters (TRI) is a global company that integrates trusted content and technology to empower professionals and organizations in sectors such as legal, tax, accounting, compliance, government, and media. The company provides specialized software and insights to facilitate data-driven decision-making, supporting institutions in their pursuit of justice, truth, and transparency. Its offerings include research tools, workflow solutions, and trusted journalism through Reuters News.
- Legal Professionals - Provides research and workflow products for law firms and governments, leveraging technologies like generative AI to deliver integrated legal research and workflow solutions.
- Corporates - Serves corporate customers, including the largest global accounting firms, with content-driven technology solutions for legal, tax, regulatory, compliance, and IT professionals, enabling digital transformation.
- Tax & Accounting Professionals - Offers research and automated workflow products for tax, audit, and accounting professionals, excluding the largest firms served by the Corporates segment.
- Reuters News - Supplies business, financial, and global news to media organizations, professionals, and financial markets through partnerships and platforms like Reuters News Agency and Reuters.com.
- Global Print - Delivers legal and tax information primarily in print format to customers worldwide.
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Given that the Big 3 segments achieved 9% organic growth in the first half but the full-year guidance implies a deceleration to 8% in the second half, can you explain the factors contributing to this expected slowdown and how it aligns with your goal of accelerating growth in 2025 and beyond?
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With approximately $50 million invested in 18 companies through Thomson Reuters Ventures, how are you measuring the return on these investments, and what concrete metrics are you using to evaluate both the financial and strategic benefits, especially since innovation benefits are hard to quantify?
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As you roll out AI and generative AI capabilities like CoCounsel, how are you determining the pricing strategy for these new offerings, and how confident are you that the pricing accurately reflects the efficiencies and value delivered to customers given the early stages of adoption?
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Considering the increased competitive activity from start-ups and traditional competitors in the AI and generative AI space, do you anticipate potential market share shifts, and what specific strategies are you implementing to safeguard or enhance your market position?
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Your guidance indicates a margin decline in the second half due to increased investment spending, particularly in the third quarter where margins are expected to be the lowest for the year. Can you provide more detail on the nature of these investments and how they are expected to contribute to future revenue growth and margin expansion?
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
cPaperless, LLC, dba SafeSend | 2025 | Thomson Reuters acquired SafeSend on January 2, 2025 for $600 million in cash. SafeSend is a U.S.-based cloud-native provider of tax workflow automation software, enhancing the firm’s tax automation portfolio by servicing 70% of the top 500 accounting firms. |
Materia | 2024 | Acquired on October 22, 2024, Materia is a U.S. startup specializing in an agentic AI assistant for the tax, audit, and accounting profession, aligning with Thomson Reuters’ AI roadmap and accelerating the integration of generative AI tools. |
Pagero Group AB (publ) | 2024 | A controlling interest was acquired via a public tender offer valued at approximately $767 million; the deal enhances Thomson Reuters’ e-invoicing and global indirect tax reporting capabilities. |
World Business Media Limited | 2024 | Acquired in January 2024, this cross-platform subscription-based provider delivers editorial coverage for the global P&C and specialty (re)insurance industry, supporting Reuters News' expansion into essential new customer markets. |
Casetext, Inc. | 2023 | Acquired for $650 million in cash, with the transaction announced on June 26, 2023 and completed in August 2023; Casetext brings AI-based legal solutions (including its CoCounsel assistant) to enhance Thomson Reuters' generative AI capabilities in the legal sector. |
Imagen Ltd | 2023 | Acquired in July 2023 as part of a $700 million series of transactions, Imagen is a media asset management firm with a cloud-native digital media distribution platform that strengthens Reuters News offerings. |
SurePrep LLC | 2023 | Acquired on January 3, 2023 for $500 million in cash, SurePrep provides tax automation software and services (including products like 1040SCAN and TaxCaddy) that bolster Thomson Reuters’ Tax & Accounting Professionals portfolio. |
ThoughtTrace | 2022 | Acquired in April 2022, ThoughtTrace leverages AI and ML for contract analysis to enhance legal workflow solutions, aligning with Thomson Reuters’ strategy to integrate automation across legal and tax markets. |
Gestta | 2022 | Completed in 2022, Gestta is a Brazil‑based, accounting-focused software provider acquired to enhance client automation and integrate with Thomson Reuters’ Dominio offering, strengthening its presence in Latin America. |
Recent press releases and 8-K filings for TRI.
- Strong 2024 performance with full-year revenue of US$7.3 billion, operating profit of US$2.1 billion, and robust free cash flow, supported by an 81% recurring revenue model ( ).
- Enhanced corporate governance practices and detailed executive compensation updates emphasize performance-based pay and board oversight, including AI risk management ( , , ).
- Upcoming annual meeting scheduled for June 4, 2025, with proxy materials and voting recommendations provided, including a proposal to vote AGAINST a certain matter related to AI governance ( , ).
- The filing confirms the execution of multiple supplemental indentures related to the company’s debt securities, including notes due in various years such as the 5.650% Notes due 2043.
- The document details modifications and amendments to existing indenture agreements, which affect the terms of the company’s debt issuance and associated guarantees.
- Key parties involved include Thomson Reuters Corporation, TR Finance LLC, subsidiary guarantors, and trustees such as Deutsche Bank Trust Company Americas and Computershare Trust Company of Canada.
- Final results announced for the exchange offers and consent solicitations concerning the exchange of Old Notes for New Notes, with key series achieving tender percentages ranging from 70.83% to 96.25%.
- Settlement expected to occur on or about March 20, 2025, as the company continues to optimize its capital structure, with plans to file a new base shelf prospectus replacing the prior one.
- Final exchange offers and consent solicitations have closed, with detailed tender results provided for multiple series of Old Notes, including key figures such as a $440.89 million tender for the 3.350% Notes due 2026.
- New notes will be issued by TR Finance on terms substantially similar to the Old Notes, aiming to optimize the Thomson Reuters group capital structure.
- A replacement base shelf prospectus is planned to update guarantee details and replace the existing prospectus dated June 18, 2024.
- TR Finance, a U.S. subsidiary of Thomson Reuters, filed a final short form prospectus for its debt exchange offers, enabling holders to exchange existing notes (Old Notes) for new ones with substantially similar financial terms.
- The exchange offers include a consent solicitation fee of $2.50 for every $1,000 of Old Notes, aiming to optimize the capital structure by aligning revenue with indebtedness.
- Investors must also consent to proposed amendments that modify certain restrictive covenants, with settlement expected on March 20, 2025 and the offer expiring on March 17, 2025.