MSCI Inc. Files Q2 2024 10-Q Report

TL;DR

MSCI Q2 10-Q filed. Financials look solid.

AI Summary

MSCI Inc. filed its 10-Q for the period ending June 30, 2024, reporting on its financial performance. The filing details various financial statement line items and disclosures for the second quarter and the first half of 2024, comparing them to the same periods in 2023. Key financial data and operational segments are presented, providing a snapshot of the company's financial health and activities.

Why It Matters

This report provides investors and analysts with crucial financial data for MSCI Inc., enabling them to assess the company's performance and make informed investment decisions.

Risk Assessment

Risk Level: low — This is a routine quarterly financial filing with no immediate red flags.

Key Players & Entities

• MSCI Inc. (company) — Filer of the 10-Q report
• 20240630 (date) — End of the reporting period
• 20240723 (date) — Filing date of the report
• 7 WORLD TRADE CENTER (location) — Company's business and mailing address

FAQ

Key Financial Figures

• $0.01 — ich registered Common stock, par value $0.01 per share MSCI New York Stock Exchange
• $0 — he registrant's common stock, par value $0.01, outstanding. Table of Contents

Filing Documents

• msci-20240630.htm (10-Q) — 2010KB
• ex_101x2024formofdirectorr.htm (EX-10.1) — 70KB
• msci-20240630xexx311.htm (EX-31.1) — 10KB
• msci-20240630xexx312.htm (EX-31.2) — 10KB
• msci-20240630xexx321.htm (EX-32.1) — 5KB
• msci-20240630_g1.gif (GRAPHIC) — 5KB
• 0001408198-24-000131.txt ( ) — 8984KB
• msci-20240630.xsd (EX-101.SCH) — 52KB
• msci-20240630_cal.xml (EX-101.CAL) — 100KB
• msci-20240630_def.xml (EX-101.DEF) — 193KB
• msci-20240630_lab.xml (EX-101.LAB) — 637KB
• msci-20240630_pre.xml (EX-101.PRE) — 457KB
• msci-20240630_htm.xml (XML) — 1467KB

– Financial Information

Part I – Financial Information Item 1.

Financial Statements

Financial Statements 4 Condensed Consolidated Statements of Financial Condition as of June 30, 2024 and December 31, 2023 4 Condensed Consolidated Statements of Income for the three and six months ended June 30, 2024 and 2023 5 Condensed Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2024 and 2023 6 Condensed Consolidated Statements of Shareholders' Equity (Deficit) for the three and six months ended June 30, 2024 and 2023 7 Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2024 and 2023 8 Notes to Condensed Consolidated Financial Statements 9 1. Introduction and Basis of Presentation 9 2. Recent Accounting Pronouncements 10 3. Revenue Recognition 10 4. Earnings Per Common Share 11 5. Acquisitions 12 6. Property, Equipment and Leasehold Improvements, Net 15 7. Goodwill and Intangible Assets, Net 15 8. Debt 16 9. Leases 18 10. Shareholders' Equity (Deficit) 19 11. Income Taxes 20 12. Segment Information 20 13. Subsequent Events 23 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 24 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 44 Item 4.

Controls and Procedures

Controls and Procedures 45

– Other Information

Part II – Other Information Item 1.

Legal Proceedings

Legal Proceedings 46 Item 1A.

Risk Factors

Risk Factors 46 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 46

Other Information

Item 5. Other Information 46 Item 6. Exhibits 47 2 Table of Contents AVAILABLE INFORMATION Our corporate headquarters is located at 7 World Trade Center, 250 Greenwich Street, 49th Floor, New York, New York, 10007, and our telephone number is (212) 804-3900. We maintain a website on the internet at www.msci.com. The contents of our website are not a part of or incorporated by reference in this Quarterly Report on Form 10-Q. We file annual, quarterly and current reports, proxy statements and other information with the Securities and Exchange Commission (the "SEC"). The SEC maintains a website that contains reports, proxy and information statements and other information that we file electronically with the SEC at www.sec.gov. We also make available free of charge, on or through our website, these reports, proxy statements and other information as soon as reasonably practicable following the time they are electronically filed with or furnished to the SEC. To access these, click on the "SEC Filings" link under the "Financial Information" tab found on our Investor Relations homepage (http://ir.msci.com). We also use our Investor Relations homepage and our Corporate Responsibility homepage as channels of distribution of Company information. The information we post through these channels may be deemed material. Accordingly, investors should monitor these channels, in addition to following our press releases, SEC filings and public conference calls and webcasts. In addition, you may automatically receive email alerts and other information about us when you enroll your email address by visiting the "Email Alerts" section of our Investor Relations homepage at https://ir.msci.com/email-alerts. The contents of our website, including our Investor Relations homepage and Corporate Responsibility homepage, and our social media channels are not, however, a part of or incorporated by reference in this Quarterly Report on Form 10-Q.

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS We have included in this Quarterly Report on Form 10-Q, and from time to time may make in our public filings, press releases or other public statements, certain statements that constitute forward-looking statements. In addition, our management may make forward-looking statements to analysts, investors, representatives of the media and others. These forward-looking statements are not historical facts and represent only MSCI's beliefs regarding future events, many of which, by their nature, are inherently uncertain and beyond our control. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these statements. In some cases, you can identify forward-looking statements by the use of words such as "may," "could," "expect," "intend," "plan," "seek," "anticipate," "believe," "estimate," "predict," "potential" or "continue," or the negative of these terms or other comparable terminology. Statements concerning our financial position, business strategy and plans or objectives for future operations are forward-looking statements. You should not place undue reliance on forward-looking statements because they involve known and unknown risks, uncertainties and other factors that are, in some cases, beyond our control and that could materially affect our actual results, levels of activity, performance or achievements. Such risks and uncertainties include those set forth under "Risk Factors" in Part I, Item 1A of the 2023 Annual Report on Form 10-K filed with the SEC on February 9, 2024. If any of these risks or uncertainties materialize, or if MSCI's underlying assumptions prove to be incorrect, actual results may vary significantly from what MSCI projected. Any forward-looking statement reflects our curre

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements MSCI INC. CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (in thousands, except per share and share data) As of June 30, December 31, (unaudited) 2024 2023 ASSETS Current assets: Cash and cash equivalents (includes restricted cash of $ 3,883 and $ 3,878 at June 30, 2024 and December 31, 2023, respectively) $ 451,401 $ 461,693 Accounts receivable (net of allowances of $ 4,476 and $ 3,968 at June 30, 2024 and December 31, 2023, respectively) 709,487 839,555 Prepaid income taxes 98,611 59,002 Prepaid and other assets 55,553 57,903 Total current assets 1,315,052 1,418,153 Property, equipment and leasehold improvements, net 63,974 55,920 Right of use assets 129,542 115,243 Goodwill 2,909,415 2,887,692 Intangible assets, net 949,166 956,234 Deferred tax assets 40,213 41,074 Other non-current assets 49,471 43,903 Total assets $ 5,456,833 $ 5,518,219 LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT) Current liabilities: Accounts payable $ 12,922 $ 9,812 Income taxes payable 24,919 24,709 Accrued compensation and related benefits 129,978 219,456 Current portion of long-term debt — 10,902 Other accrued liabilities 190,626 168,282 Deferred revenue 1,017,997 1,083,864 Total current liabilities 1,376,442 1,517,025 Long-term debt 4,508,730 4,496,826 Long-term operating lease liabilities 130,559 120,134 Deferred tax liabilities 69,684 27,028 Other non-current liabilities 105,901 96,970 Total liabilities 6,191,316 6,257,983 Commitments and Contingencies (see Note 8) Shareholders' equity (deficit): Preferred stock (par value $ 0.01 ; 100,000,000 shares authorized; no shares issued) — — Common stock (par value $ 0.01 ; 750,000,000 common shares authorized; 134,075,817 and 133,817,332 common shares issued and 78,749,685 and 79,091,212 common shares outstanding at June 30, 2024 and December 31, 2023, respectively) 1,341 1,338 Treasury shares, at cost ( 55,326,132 and 54,726,120 common shares held at J

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View this 10-Q filing on SEC EDGAR