Q2 2024 Earnings Summary
Reported on Feb 18, 2025 (Before Market Open)
Pre-Earnings Price$161.92Last close (Jul 31, 2024)
Post-Earnings Price$156.82Open (Aug 1, 2024)
Price Change
$-5.10(-3.15%)
- Thomson Reuters' Corporates segment achieved strong organic revenue growth of 10% in the first half of 2024, which is 300 basis points higher than the full year 2023 growth rate, indicating accelerating performance and successful execution by the team.
- The company's generative AI products, such as CoCounsel, are expected to significantly increase efficiencies for customers—from 4 hours per week per lawyer currently to 12 hours in a couple of years—enhancing their value proposition and driving adoption.
- There is strong adoption of Thomson Reuters' generative AI offerings across all customer segments, including small and mid-sized law firms, demonstrating broad market appeal and significant potential for revenue growth.
- Expected deceleration in revenue growth in the second half of 2024, particularly in the Big 3 segments, with growth rates projected to decrease from the first half's 9% to around 7%–7.5%, due to factors such as prior one-time gains not repeating and seasonal variations.
- Projected decrease in EBITDA margins in Q3 and Q4, driven by seasonally lower revenues, increased organic and inorganic investments, integration costs from recent acquisitions (Pagero, SurePrep, Casetext), and higher incentive compensation expenses, with margins expected to decline to around 34% in Q3 from higher levels earlier in the year.
- The FindLaw business continues to be a headwind, with its growth rate slower than other portions of the business, suppressing overall growth in the Legal Professionals segment.
Research analysts covering THOMSON REUTERS CORP /CAN/.