MSCI Inc. Reports 15.9% Revenue Growth, 13.6% Operating Income Increase in Q3 2024

MSCI Inc. reported significant financial performance for the three and nine months ended September 30, 2024, showcasing robust revenue growth and profitability. Total operating revenues for the third quarter reached $724.7 million, marking a 15.9% increase from $625.4 million in the same period of 2023. For the nine months, revenues totaled $2.1 billion, up 14.9% from $1.8 billion year-over-year. The growth was primarily driven by recurring subscriptions, which contributed $536.6 million in Q3 2024, a 15.4% increase from $465.0 million in Q3 2023, and asset-based fees, which rose 19.5% to $168.6 million.

Operating income for the third quarter was $401.3 million, reflecting a 13.6% increase from $353.3 million in Q3 2023. For the nine months, operating income reached $1.1 billion, up 10.8% from $1.0 billion in the prior year. Net income for Q3 2024 was $280.9 million, an 8.2% increase from $259.7 million in Q3 2023, while net income for the nine months was $803.6 million, a 7.8% increase from $745.2 million.

The company’s total operating expenses for Q3 2024 were $323.4 million, an 18.8% increase from $272.1 million in Q3 2023. For the nine months, expenses rose to $989.3 million, up 19.9% from $825.0 million. The increase in expenses was attributed to higher costs in research and development, general and administrative expenses, and amortization of intangible assets, which surged by 56.9% in Q3 2024.

MSCI's strategic developments included the acquisition of the remaining 66.4% interest in The Burgiss Group for $696.8 million, completed on October 2, 2023. This acquisition is now part of the Private Capital Solutions segment, which reported significant revenue contributions. Additionally, the company made several other acquisitions, including Trove Research Ltd, Fabric RQ, Inc., and Foxberry Ltd, enhancing its capabilities across various segments.

As of September 30, 2024, MSCI's total assets were $5.4 billion, down from $5.5 billion at the end of 2023, while total liabilities decreased to $6.2 billion from $6.3 billion. Shareholders' equity increased to $6.3 billion, driven by higher retained earnings and additional paid-in capital. The company also reported a net cash increase of $39.3 million for the nine months, contrasting with a decrease of $65.0 million in the same period of 2023, indicating improved cash flow management.

MSCI continues to focus on its core business model of licensing annual, recurring subscriptions, with a total Run Rate of $2.9 billion as of September 30, 2024, reflecting a 17.3% increase from the previous year. The company serves approximately 6,900 clients across over 95 countries, emphasizing its strong market position and growth potential.