Release Date: January 29, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Henry, how are you thinking about the potential growth rate for the ESG business long term? Are we in a cyclical challenging period, or is this the new normal? A: Henry Fernandez, CEO: I've spent the last 4 weeks in Europe, visiting over 50 clients. There's no let-up in commitment to sustainability among European financial institutions. The demand is there, and we need to evolve our product line to meet it. In the U.S., sustainability is seen as a secular trend, regardless of political changes. We're reevaluating our long-term targets and will update the market in due course.
Q: Andy, can you contextualize your comment on the exciting year ahead, given the current environment? A: Andrew Wiechmann, CFO: Rising markets are supportive for clients, and we're seeing encouraging signs in the U.S. My excitement comes from our innovations in custom indexes, front-office analytics, and private asset solutions. While some areas still face pressure, overall, the environment is more constructive, and we're seeing a pickup in the pipeline.
Q: Can you talk about how pricing conversations and impact should be this year? A: Andrew Wiechmann, CFO: In 2024, the contribution from price increases was slightly less than in 2023. We focus on capturing value linked to the enhancements we provide. The pricing environment and client health are key factors, and we believe we're well-positioned relative to competitors, especially in areas like ESG.
Q: Could you expand on the trends you're seeing in the Analytics segment? A: Andrew Wiechmann, CFO: Organic subscription run rate growth was around 7%, consistent with the prior quarter. FX impacts made it appear lower. We're seeing good momentum in fixed income and wealth, with our insights offering opening new doors. Revenue growth was slightly below run rate growth due to timing of implementation-related revenues.
Q: Can you provide more color on the partnership with Moody's in the ESG segment? A: Henry Fernandez, CEO: The partnership involves Moody's subscribing to our ESG data, using their Orbis database to create ESG scores, and exploring collaboration in private credit. It's early days for synergistic revenues, but we're optimistic about the potential.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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