MSCI Inc. recently released its 10-K report, providing insights into the company's performance and operations. The report highlights MSCI's role as a leading provider of critical decision support tools and solutions for the global investment community. The company's offerings include indexes for financial products, risk management and performance attribution analytics, ESG and climate solutions, real assets and private capital solutions. The report outlines MSCI's growth strategy, which includes extending leadership in research-enhanced content across asset classes, leading the enablement of sustainability and climate investment integration, enhancing distribution and content-enabling technology, expanding solutions that empower client customization, strengthening client relationships, and executing strategic partnerships and acquisitions.
The report also discusses current trends affecting MSCI, such as sustainability and climate investment strategies, as well as dynamics in the asset management industry. MSCI acknowledges that sustainability and climate risks are significant factors impacting investment decisions and regulatory frameworks. The report also highlights the industry-wide fee pressure and consolidation within the asset management sector, which may drive demand for MSCI's offerings.
In evaluating its financial performance, MSCI focuses on revenue and profit growth, including results accounted for under generally accepted accounting principles in the United States (GAAP) as well as non-GAAP measures. The company presents revenues disaggregated by types and segments, including recurring subscription revenues, asset-based fees, and non-recurring revenues. Additionally, MSCI provides a breakdown of its operating expenses, including cost of revenues, selling and marketing, research and development, general and administrative expenses, amortization of intangible assets, and depreciation and amortization of property, equipment, and leasehold improvements.
MSCI also introduces non-GAAP financial measures such as Adjusted EBITDA, Adjusted EBITDA expenses, and Adjusted EBITDA margin, which are used by management to assess operating performance. The report also highlights critical accounting estimates, including the assessment of goodwill and intangible assets and income taxes.
Following these announcements, the company's shares moved -1.4%, and are now trading at a price of $579.39. Check out the company's full 10-K submission here.
