Q4 2023 Earnings Summary
Reported on Feb 8, 2024 (Before Market Open)
Pre-Earnings Price$149.09Last close (Feb 7, 2024)
Post-Earnings Price$149.14Open (Feb 8, 2024)
Price Change
$0.05(+0.03%)
- Thomson Reuters is confident in accelerating its organic revenue growth to 6.5% to 8% in 2025 and 2026, driven by significant investments in generative AI across its core segments, strategic acquisitions like SurePrep, Casetext, and Pagero, and improving retention rates.
- The company is leveraging its deep content repositories, trusted customer relationships, and talented teams to maintain a competitive edge in the rapidly evolving generative AI landscape, positioning itself favorably against new entrants and peers.
- Thomson Reuters is expanding its international presence, experiencing mid-teen growth in Latin America and other markets, and with acquisitions like Pagero, it is poised to capitalize on high-growth opportunities in e-invoicing and indirect tax compliance globally.
- Adjusted EBITDA margin is expected to decline to approximately 38% in 2024 from 39.3% in 2023, due to M&A dilution of 120 basis points and increased investments in generative AI, indicating potential margin pressures and uncertainty around future profitability improvement.
- Revenue growth acceleration relies heavily on recent acquisitions and generative AI initiatives, which carry execution risks; any underperformance or integration challenges with acquisitions like Casetext, Pagero, or SurePrep could hinder the company's ability to achieve its organic revenue growth target of 6.5% to 8% in 2025-2026.
- The positive financial impact from generative AI initiatives is uncertain and may take time to materialize, as adoption is in early stages, and required change management at clients may slow down the realization of benefits, while internal cost efficiencies from gen AI are not yet quantified.
Research analysts covering THOMSON REUTERS CORP /CAN/.