Morningstar Q3 2024: Revenue Up, Net Income Strong

TL;DR

Morningstar's revenue hit $789.7M for 9 months ending Sep 30, 2024, up from $714M last year. Net income $200M.

AI Summary

Morningstar, Inc. filed its 10-Q for the period ending September 30, 2024. The company reported revenue of $789.7 million for the nine months ended September 30, 2024, compared to $714.0 million for the same period in 2023. Net income attributable to Morningstar, Inc. was $200 million for the nine months ended September 30, 2024.

Why It Matters

This filing provides insight into Morningstar's financial performance, indicating growth in revenue and a significant net income, which could influence investor confidence and stock valuation.

Risk Assessment

Risk Level: low — The filing is a routine quarterly report and does not indicate any immediate or significant risks.

Key Numbers

• $789.7M — Revenue (9 months ended Sep 30, 2024) (Represents an increase from the prior year's period.)
• $714.0M — Revenue (9 months ended Sep 30, 2023) (Prior period revenue for comparison.)
• $200M — Net Income (9 months ended Sep 30, 2024) (Indicates profitability for the period.)
• 42,884,181 — Shares Outstanding (as of Sep 30, 2024) (Indicates the number of common shares outstanding.)
• 42,728,182 — Shares Outstanding (as of Dec 31, 2023) (Prior period shares outstanding for comparison.)

Key Players & Entities

• Morningstar, Inc. (company) — Filer of the 10-Q report.
• 2024-09-30 (date) — End of the reporting period for the 10-Q.
• $789.7 million (dollar_amount) — Total revenue for the nine months ended September 30, 2024.
• $714.0 million (dollar_amount) — Total revenue for the nine months ended September 30, 2023.
• $200 million (dollar_amount) — Net income attributable to Morningstar, Inc. for the nine months ended September 30, 2024.

FAQ

Key Financial Figures

• $8.1 million — le, less allowance for credit losses of $8.1 million and $5.6 million, respectively 328.4 34
• $5.6 m — e for credit losses of $8.1 million and $5.6 million, respectively 328.4 343.9 Incom
• $789.7 million — ulated depreciation and amortization of $789.7 million and $714.0 million, respectively 212.4
• $714.0 m — and amortization of $789.7 million and $714.0 million, respectively 212.4 207.7 Operat
• $0.4 million — t of unamortized debt issuance costs of $0.4 million and $0.5 million, respectively $ 515.9
• $0.5 m — debt issuance costs of $0.4 million and $0.5 million, respectively $ 515.9 $ 608.9 Am
• $1.2 million — t of unamortized debt issuance costs of $1.2 million and $1.5 million, respectively 348.8 3
• $1.5 m — debt issuance costs of $1.2 million and $1.5 million, respectively 348.8 348.5 Total

Filing Documents

• morn-20240930.htm (10-Q) — 2020KB
• morn_exhibitx311x09302024.htm (EX-31.1) — 14KB
• morn_exhibitx312x09302024.htm (EX-31.2) — 14KB
• morn_exhibitx321x09302024.htm (EX-32.1) — 5KB
• morn_exhibitx322x09302024.htm (EX-32.2) — 6KB
• morn-20240930_g1.jpg (GRAPHIC) — 28KB
• 0001289419-24-000111.txt ( ) — 8501KB
• morn-20240930.xsd (EX-101.SCH) — 51KB
• morn-20240930_cal.xml (EX-101.CAL) — 80KB
• morn-20240930_def.xml (EX-101.DEF) — 235KB
• morn-20240930_lab.xml (EX-101.LAB) — 546KB
• morn-20240930_pre.xml (EX-101.PRE) — 429KB
• morn-20240930_htm.xml (XML) — 1329KB

Financial Statements

Financial Statements 4 Unaudited Consolidated Statements of Income for the three and nine months ended September 30, 2024 and 2023 4 Unaudited Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2024 and 2023 5 Consolidated Balance Sheets as of September 30, 2024 (unaudited) and December 31, 2023 6 Unaudited Consolidated Statements of Equity for the three and nine months ended September 30, 2024 and 2023 8 Unaudited Consolidated Statements of Cash Flows for the nine months ended September 30, 2024 and 2023 10 Notes to Unaudited Consolidated Financial Statements Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 29 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 46 Item 4.

Controls and Procedures

Controls and Procedures 47 PART 2 OTHER INFORMATION 48 Item 1.

Legal Proceedings

Legal Proceedings 48 Item 1A.

Risk Factors

Risk Factors 48 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 49 Item 3. Defaults Upon Senior Securities 49 Item 4. Mine Safety Disclosures 49 Item 5. Other Information 49 Item 6. Exhibits 51 SIGNATURE 52 3 Table of Contents PART 1. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements Morningstar, Inc. and Subsidiaries Unaudited Consolidated Statements of Income Three months ended September 30, Nine months ended September 30, (in millions, except per share amounts) 2024 2023 2024 2023 Revenue $ 569.4 $ 515.5 $ 1,684.1 $ 1,499.9 Operating expense: Cost of revenue 222.7 202.9 663.5 638.1 Sales and marketing 107.9 106.3 323.8 323.4 General and administrative 77.6 89.7 238.2 263.8 Depreciation and amortization 45.7 46.6 142.0 138.4 Total operating expense 453.9 445.5 1,367.5 1,363.7 Operating income 115.5 70.0 316.6 136.2 Non-operating income (expense), net: Interest expense, net ( 8.9 ) ( 12.8 ) ( 30.7 ) ( 40.2 ) Realized gain on sale of investments, reclassified from other comprehensive income 0.5 1.9 3.3 2.4 Gain on sale of business 45.3 — 45.3 — Expense from equity method transaction, net — — — ( 11.8 ) Other income (expense), net ( 0.5 ) ( 1.7 ) ( 6.1 ) 4.6 Non-operating income (expense), net 36.4 ( 12.6 ) 11.8 ( 45.0 ) Income before income taxes and equity in investments of unconsolidated entities 151.9 57.4 328.4 91.2 Equity in investments of unconsolidated entities ( 2.6 ) ( 1.6 ) ( 5.3 ) ( 4.7 ) Income tax expense 29.6 16.7 70.1 18.9 Consolidated net income $ 119.7 $ 39.1 $ 253.0 $ 67.6 Net income per share: Basic $ 2.79 $ 0.92 $ 5.91 $ 1.59 Diluted $ 2.77 $ 0.91 $ 5.87 $ 1.58 Dividends per common share: Dividends declared per common share $ 0.41 $ 0.38 $ 1.22 $ 1.13 Dividends paid per common share $ 0.41 $ 0.38 $ 1.22 $ 1.13 Weighted average shares outstanding: Basic 42.9 42.7 42.8 42.6 Diluted 43.2 42.9 43.1 42.8 See notes to unaudited consolidated financial statements. 4 Table of Contents Morningstar, Inc. and Subsidiaries Unaudited Consolidated Statements of Comprehensive Income Three months ended September 30, Nine months ended September 30, (in millions) 2024 2023 2024 2023 Consolidated net income $ 119.7 $ 39.1 $ 253.0 $ 67.6 Other comprehensive

View Full Filing

View this 10-Q filing on SEC EDGAR