Morningstar, Inc. has recently released its 10-K report, providing a comprehensive overview of its operations and financial performance. The company, founded in 1984 and headquartered in Chicago, Illinois, operates through five segments: Morningstar Direct Platform, PitchBook, Morningstar Credit, Morningstar Wealth, and Morningstar Retirement. It offers a wide range of investment-related products and services for individual and institutional investors, financial advisors, wealth managers, and retirement plan providers.
In the 10-K report, Morningstar detailed its revenue streams, with most of its license-based revenue generated by Morningstar Direct Platform and PitchBook. The company's asset-based revenue is primarily derived from Morningstar Wealth and Morningstar Retirement, where basis points and other fees are charged for assets under management or advisement (AUMA). Additionally, Morningstar generates transaction-based revenue, including recurring revenue from Morningstar Credit surveillance and research.
The report also delves into the company's operating expenses, which are classified into categories such as cost of revenue, sales and marketing, general and administrative, and depreciation and amortization. Morningstar highlighted its international operations, with wholly-owned subsidiaries in 31 countries outside the US and investments in other countries where it applies the equity method of accounting.
Morningstar emphasized its mission to empower investor success and its commitment to increasing the intrinsic value of its business over time. The company provided measures such as revenue, operating income, operating margin, and operating cash flow to help investors assess its intrinsic value. Additionally, Morningstar uses non-GAAP measures such as organic revenue, adjusted operating income, adjusted operating margin, and free cash flow to supplement its consolidated financial statements.
The 10-K report also includes forward-looking statements and a comprehensive discussion of risks and uncertainties that could impact the company's future performance. Morningstar emphasized its focus on long-term shareholder value, avoiding public financial forecasts to prevent creating incentives for its management team to make speculative statements that could influence stock prices.
As a result of these announcements, the company's shares have moved -0.8% on the market, and are now trading at a price of $213.91. Check out the company's full 10-K submission here.
