Moodys Corporation Reports 23% Revenue Growth in Q3 2024, Driven by Strong Performance Across Segments

Moody's Corporation reported significant financial growth for the third quarter and the first nine months of 2024, driven by strong performance across its segments. For the three months ended September 30, 2024, the company achieved total revenue of $1,813 million, a 23% increase from $1,472 million in the same period of 2023. For the nine months ended September 30, 2024, total revenue reached $5,416 million, up 22% from $4,436 million in the prior year.

The growth in revenue was primarily attributed to the Moody's Investors Service (MIS) segment, which reported a remarkable 41% increase in external revenue for Q3 2024, totaling $982 million compared to $696 million in Q3 2023. The MIS segment's revenue for the nine months also surged by 37%, reaching $2,984 million. In contrast, the Moody's Analytics (MA) segment saw a more modest growth of 7% in Q3 2024, with revenue of $831 million, and an 8% increase for the nine months, totaling $2,432 million.

Operating income for the third quarter was $738 million, a 38% increase from $535 million in Q3 2023, while for the nine months, operating income rose to $2,314 million from $1,639 million, marking a 41% increase. The operating margin improved to 40.7% for Q3 2024, up from 36.3% in the prior year, and 42.7% for the nine months, compared to 36.9% in 2023.

Net income attributable to Moody's for Q3 2024 was $534 million, a 37% increase from $390 million in Q3 2023. For the nine months, net income rose to $1,664 million from $1,268 million, reflecting a 31% increase. Diluted earnings per share (EPS) for Q3 2024 increased to $2.93 from $2.11 in the previous year, while for the nine months, diluted EPS rose to $9.09 from $6.88.

The company also reported a significant increase in cash and cash equivalents, totaling $2,642 million as of September 30, 2024, compared to $2,130 million at the end of 2023. This increase was supported by net cash provided by operating activities of $2,164 million for the nine months, up from $1,674 million in the prior year.

Strategically, Moody's has been implementing a Geolocation Restructuring Program aimed at achieving annualized savings of $145 million to $165 million, which includes staff reductions and the rationalization of leased office spaces. The program is expected to be substantially completed by the end of 2023, with cash outlays primarily for personnel-related costs.

Overall, Moody's Corporation's robust financial performance in 2024 reflects strong demand for its services, particularly in the MIS segment, alongside effective cost management strategies.