MCO - Earnings call transcript Q4 2020

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Operator

Good day, everyone, and welcome to the Moody's Corporation Fourth Quarter and Full Year 2020 Earnings Conference Call. At this time, I would like to inform you that this conference is being recorded. [Operator Instructions] I would now like to turn the call over to Shivani Kak, Head of Investor Relations. Please go ahead.

Shivani Kak

Thank you. you results us full and thank fourth discuss year and XXXX quarter our morning for to joining Moody's XXXX. Good outlook for Kak, Shivani Head Investor I'm of Relations. of its full for XXXX. the This our year results Moody's well as released fourth morning, quarter XXXX as outlook for both press earnings are a our Web accompany this presentation The on to site and teleconference release available at ir.moodys.com. and Chief this call. lead Executive morning's will President Officer, Moody's Fauber, Rob conference remarks on Moody's the call is morning Kaye, Officer. prepared this Chief Mark Financial making Also

turn towards also presenting also earnings your I adjusted that the for can In on our in our which call end of statements call over non-GAAP in Rob Act and those the to the results other with Form will to the release. annual Web meaning filed in figures. we site. forth the and refer media now mode. to Web may Litigation our discussed at Analysis between point XX-Q important and adjusted SEC quarterly remarks ended on with measures the on filings to be morning for company, morning together XX-K the for call, report accordance any the the by tables Please this out are cause XX, December differ to call of and the members Safe statement end on available of GAAP. factors and this the made within risk During Harbor actual like section all could such be in Today's direct during a Reform this reconciliation listen-only Safe this will our press report statements. set forward-looking also from the contain factors I I Private the March These, language, form or referenced year Fauber. contained attention attention I XX, XXXX, Securities XXXX, to quarter forward-looking which the of would Management's site call Discussion a our XXXX. the ended Harbor SEC's maybe on materially that of release the the found earnings your act,

Rob Fauber

well morning Thanks, I'm joining begin year and XXXX for our strategic today's summarizing to questions. good results I'll commentary for update provide details my remarks, in to fourth Mark call. following Moody's and your by Kaye XXXX. our as we'll our any will as going provide on thanks everybody of outlook respond to financial quarter to happy XXXX and and then further prepared direction After Shivani, our results, an full be

customers First, and extend our continued your on success. my And team, world-class of of providing dedication our adaptability and Thank employees resilience. management you. and is their really to remarkable supporting commitment to we're accomplishments. entire like to the each other I'd for steadfast to your Moody's proud appreciation And service key behalf with our

our heightened That revenue. the prior also the achieved times. totaling these XX% up employees in credit X% growth billion, revenue against the $X.X market XXXX. increase record unprecedented up was in billion value well and performed XX% year. with Moody's strong Analytics $X.X of during and from demonstrating solutions products financial EPS revenue adjusted of of in Moody's Moody's results generated helped and of backdrop With Our Service activity, Investors diluted XX% an

will investing going expect data offset XXXX, decline customers mid-single increase percent to our digit of meet and For by deliver It's in beyond, we for by MA global our adjusted evolving debt MIS issuance and capabilities, project and driven growth to we're at $XX.XX strong Moody's innovation. diluted and in In EPS forecast activity. integrating our revenue to needs favorable and mix solutions the in range. XXXX, leveraging be range in to to to is continue Moody's the expectation $XX.XX. and to from analytic XXXX

organic investments, combined well opportunity. acquisitions for the long-term recent addition, position In future as with our and reinforce growth

stewards as to of stockholders our continue our responsible capital. we Finally, emphasize role

our stockholders, While seek priority, share $X approximately the repurchases. the remains in investing we'll and billion form year to this top dividends return business in of the our

rose basis at the XX% $X.X Moody's XX.X%, many During for revenue an milestones diluted that and adjusted both respectively. an the and basis, was the achieved billion billion rated MA and than constant operating adjusted issuance. time revenue more record full MIS year XX%. we surpassed On increased XXX impressive Moody's billion $X.X results, XX% adjusted MA organic to with grew and revenues currency from trillion expanded points XX% X% income to having MA operating increased X%. respectively in margin $X revenue MIS first Together XXXX, with in global EPS $XX.XX $X up and MIS

delivering progress our We in for stakeholders. also made significant

communities number importance equal resources work commitment justice a communities knowledge, support we diversity both to operate, financial $X And have XXXX, confidence of inclusion strong across as people initiatives to well internally of Moody's to year externally. to for to environment. commitments the a the million future company this past the we million the better diversity During and need opportunities. within including made the both year, to to an was underscored we events launched and also and with in $XX to potential past as their their create and themselves, the educational support inclusion, contribution and and The foundation. they and empower reach That our the a further support of

In and continued sustainability. by as recognized by environmental Moody's result, score was ongoing company enhancing our to change. growth. a furthered And we A CDPA environmental invest and with an for XXXX, for position addressing establishing climate the business On we our disclosures in leadership the pandemic, our the front, commitments clear amidst sustainability to

the expand the market. our This range we our companies market across leadership efforts unit. meet and it we solutions acquired that the reach. strengthens also September, thought launches, our to of a needs complement better to invested aligns And products firm, addition a our space in us In our enhanced of under and ESG positioned the or and in product restructured it and assets ESG single in

MIS, in record previous non-financial and to investment Both and as in issuers and grade sheets Turning and opportunistically over its its for grew from refinanced speculative their XXXX benefited high market debt. levels favorable XX% year especially from issuance, a fortified corporate XXXX balance average. was credit activity reached five which environment XX% prior above grade debt

remain MIS' in when XXXX Mark he going discusses is expectations leveraged despite details year for the in an tick provide most guidance. some issuance fourth our on quarter loan However, the activity and volumes of M&A modest up to

Now it's past And that to driven Bureau just markets, the all and world's the that has into a provide reflect starting revenue, analytics over last largest That years, points by pivoting we in formed was expansion in the on databases. comprises out van we've in software on total. the opportunity to made to complemented and the technology. depth strategy This ESG Back the capabilities we've significant Dijk, to in name and of as is years. with over and our XXX broadening over Moody's which the where capabilities, And we are insights, XXXX three integrate XX% of growth as we us. that before to subscription has enabled result, thought is some business. turn been continued I Analytics. organic of and inclusive in And few. to our this built it analytics think people, thoughts of XXXX, which range I'd evolving acquisition of we see assessment adding XX building substantial as MA, can our helpful risk based inorganic I its data workflows development our a And and focus needs basis with meet strategic And one embedded Mark, company positioned about over customer that, This by the to serve I rates. the the front climate business retention services was expanded deliver journey a analytics and beyond a then customer support mission rating in do investments grown that products in of recurring first MIS strong well across critical properties, now a From to there XXXX, very wide of to businesses. order by customers. agency, of some we data our step company

managing datasets data. to who a holistic, the more customers, To these companies partners to across rigor, not ESG increasingly accelerated resilience face some capabilities manage impacts as interlinked to stakeholders. of who screen of help decisions financial customers are There looking has Looking sector make to, processes the highlighted stakeholders planning. risk have the regulators, seeking better and manual they're ago, of the a doing trusted importance and are into that of cyber, risks a of employees a are variety range better with the a companies radar it's of digitization backdrop, and a COVID the are of forward, XXX reputational managing alternative these they're significant organizations and and are this, They're scale, risks Organizations there insights years And effectively. in their from risk amidst of the financial risks proliferation looking core for incorporating risks world business influencing scenario the and on risks. to they're processes degree for them just with. complex weren't variety connecting this and climate, of who identify crime. about to view ranging do wider for includes financial

market risk areas potential As we business. key full CEO, as to realize three have focused an on and needs integrated the these to meet assessment I'm

understanding needs the are evolving, and can our on breadth of sharpening our delivering capabilities. solutions First, that draw our of depth customers

data people, all this modernizing drive underpinned on access our and scale Second, that have markets so extending business of engagement customer. technology skills to And developing of interoperability us successfully with investing analytic needed by our focus collaborating, forward. to And your capabilities and customers. that as a the we've with assessment the allows expanding behalf grow and deepening the we on and third, and know our maximize intent and and to done innovating data technology and course, with supporting our risk is presence

integrated of an a referred serve For risk as $XX range used cases Moody's assessment the collectively worth to we've billion. we assessment end markets wide year, Today, of and business. risk last north

serves data, Our with see And largest around rating analytics is trusted solutions measure lending of deep domain fixed evolved, has a the or other the customers assets, our sustainable combining can investing enablement, software for strengths for risk. risk to number technology been customers and and it and insights us to a investors. from formula combination commercial as deeply help has now winning that provide everything but data areas, just company course, circle. issuers manage onboarding, with We're years, brand. customer not been a the as well and company, has we of And a a our company expertise income identify, to business, Moody's a and you agency, assessment of as as what's a over unique and

sets and cases mean continue and across analytic what risk assessment data risk We these integrated by used of increasingly business. in to assessment important all as growing we people capabilities, a they're invest an in number our markets that's and

Acquire base Moody's going we to earlier most commercial we XX plan to about on intention into look supply decisions and we van data the our XXXX proprietary credit their the databases to our markets, solutions serve business offerings called technology made week, and Media KYC and things, Analytics make including range builds and generated America customer Together, helping and recently a form excited annual North them forward million Moody's information, including quarter Moody's we've and more the know to sales turn customer analytics to And of particular, better private in several integrate cases, data shared further in results now lending, suite assessment is compliance including the Moody's to Dijk add over one and RDC by in of by relationships. reference to data past projected growth Cortera as the as in In comprehensive over Cortera. is acquire XX% to commercial million the entity case they're be companies year. $XXX they in our comprehensive Cortera fastest database past a of these the XXXX, sales your in from We're risk with featuring Now, other AI over for and call our a to this going details to company on companies. provide XXXX. of better generating business assets and XXXX, our over used Bureau about valuable well on used few acquisitions customer Cortera XXXX. million over beginning market. $XXX to expect growing a serve The management. world-class to years, among in teens And data of this in outlook to chain I'm Mark high with and annual of several that combining approximately portfolio by compliance. we produce grow onboarding, continuing announced fourth analytics, followed

Mark Kaye

from $XXX income Moody's MIS prior and the total MA contributing fourth of was the respectively. X% down adjusted In of X% growth operating Rob. increased and you, period. quarter X% Thank with revenue X% million year to Moody's

the outpaced basis operating operating incentive resulted in diluted growth by increased quarter margin. This such quarter including down Fourth as adjusted revenue decline in was and expenses, a XXX $X.XX in X%. was severance adjusted items compensation. Solid the non-recurring point EPS

against taking revenue This issuance. X% the environment. in Bank despite advantage primarily from by and refinance needs Financial and refunding leveraged public increasing double in in contributions debt support XX% project issuance. U.S. and to of speculative X% issuers in loans a the bonds structured by This as first revenue issuance. MIS, against This in U.S. issuance the in quarter addressed as grade issuers strong continue fourth issuers grew X% In X% a increase with global the growing the to both in mix primarily from volatility. was decline quarter XX%. rated revenue is increase benefited mandates rate For year time was election-related low issuance. favorable X% earlier to decline across XX% aggregate activity, finance Revenue finance of institutions activity, signs Corporate potential of from U.S. deals. improvement in opportunistically public at infrequent largest the M&A result driven finance declined grew of infrastructure lines XX% avoid decrease lower MIS CLO. the all decreased business CMBS X% In a due contributor fourth quarter compared XXXX to finance XX% despite fourth many

non-recurring adjusted the to costs full expense points resulting approximately accruals efficiency basis initiatives associated quarter, growth full such an of XXX the new received we and For year outweighed margin performance. in as XXX growth a severance related operating expense mandates. compensation full strong Consequently, expansion year margin expense for to MIS On adjusted business revenue XX.X%. included incentive operating year basis, XX.X%. is MIS' with

XX% customer revenue, growth, expected continued grew MA, for licensing XXs solutions services, compliance organic X% This basis. driven points as mid insurance year-over-year by products comparable fourth the an robust percent initiatives. recurring year revenue to Moving XXX demand the increase operating year-over-year offset from well low prior to MAs in research recurring an by points ERS, is now XX% in its operating supported digit compensation revenue rate expense as efficiency X% an and of and divestiture decline ERS' adjusted further rates incentive in margin contributed or increased strong of X%. as quarter, data MAs products, KYC in acquisition range on of basis, lower MAKS adjusted in growth software increased total in comprising one-time XX% revenue, by non-organic in period. drove XXX by all basis subscription point growth accruals XXXX quarter RD&A returning revenue, sustained full in of implementation for fourth In for overall sales up was strong fees percentage in and feed. increase supported well five In the as subscriptions of a from XX% the Further the double resulting and retention the margin RDC, demand MAs basis benefiting

impact of as the and full for responses not sectors Moody's to guidance. economic economic XXXX currency individuals, regarding capital based Turning assumptions businesses regarding market different Moody's and rate, the These pandemic geopolitical conditions, own to factors. company's COVID-XX are assumptions the now and activity capital include the the governments, and well outlook general release. rates, and macro additional effects items regulators, many of by on of limited reflect interest personnel year foreign in exchange this is market. but as liquidity operations outlook conditions, The as in detailed markets XXXX earnings

XXXX gradually to guidance X.X%. Euro X.X% by range high area will X% will by The yield and underpinned approximately in remain the X% following decline low, rate the year-end, U.S. to X% GDP GDP approximately and benchmark rates U.S. year below basis macro Our falling spreads points. and of rise full approximately will will interest assumptions. X% is to increase between XXXX unemployment XXX with

the decline to year expected is Finally, global high-yield default by below end. rate X%

assumes end guidance currency foreign of translation Our quarter exchange rates. at

adjusted XX.X%, to range of plan repurchases, the digit expenses full detail strategic to Moody's growth The million and key cash to net estimate $XX.XX reinvested to expanding cost approximately to and double-digit from in interest our in rates Specifically, British in Operating and anticipated efficiency $XX.XX percent increase be range revenue to and Moody's these we could outlook more is in the XX% savings cash of expectation $X.X ongoing range our materially XX% expense to generated reflects market points the the basis for diluted in the operating $XXX EPS the and million. MIS pound the flow are through year Diluted euro. capital effective flat from in digit I'll that billion of and for the are range of $X.XX subject to MA. of other adjusted XXXX, project on Free to percent revenue are XXXX margins year mid-single is available of margin $X.XX for low After range remain $X.XX the in are results $XXX increase our subject shortly. XXXX respectively. U.S. given We return initiatives. be and EPS exchange projected we uncertainty XXXX programs and assumptions the differ rate will we outlook. our and These current to tax for and provide in $X.X mid-single for In $X.X forecast billion range are between XX%. projecting to to billion expected share to by XX%. conditions XXX forecasted $XX.XX be approximately allocation. XXXX in

Additionally, increase in capital expected today total the XX% bringing XXXX return we announced in approximately quarterly to stockholders to our billion. an dividend $X

full refer to release. of a earnings list our guidance, our please of XX For Table

forecast activity. be respectively. to with estimate that XXXX, approximately XX% decline to will with issuance full pipelines grow high investment to to expect increased grow XX% range. for range percent larger to year-over-year, leveraged creation. XXX loan MIS, expected XXX flat from CLO and we in by in the contribution supported For revenue we loan increased that XX% global activity. issuance strongest Structured is formation In and finance will to contributing finance issuance mandates activity M&A due year XX% leveraged the by first-time asset volumes new In to anticipate and yield we high We contrast, grade rated approximately the approximately projected decline single-digit X%,

recurring fees. our our both operating agency, will XX%. delivering adjusted monitoring to current cost back ongoing value remain revenue enhancing contribute and and management into base greater offerings MIS' approximately enabling investment year's mandates margins and stable to customers. First-time to rating Discipline the the is transaction

well and KYC foreign Acquire and strong favorable by organic contributions to in high M&A further and double-digit research range for as MA activity For These compliance RDC constant acquisitions recent demand RD&A Cortera, for by feed XXXX our retention growth. recent increase in the including percent products. as rates. customer we revenue movements data exchange reinforced low Media support growth, revenue solutions, from Robust the single-digit and rates dollar supported future expansions project

double-digit rate. continue While to at recurring ERS we growing anticipate a revenue

decline XX% is operating adjusted to deemphasize margin to As be XX% that in transaction approximately MAs we expect sales, we XXXX. year-over-year. revenue one-time based XX% will projected

to initiatives continued ongoing in margin business savings basis we to that Our inclusive positive points, outlook $XX the in reinvesting we and from our assumes of back investments organic XXX expense the of would million highlighted business. cost $XXX million quarter, expansion be XXXX. Last into inorganic of approximately management XX

in KYC our real the ESG and to is on to customers meet investing our compliance addition commercial needs In opportunity, focus and evolving estate.

presence product Latin continue strengthening development. also and IT are including in our we invest and our emerging infrastructure to China America. markets We Furthermore, in

the long-term promote costs, investments Over reduce interoperability and decision-making. these will accelerate

few like Before over would key turning back the call to highlight takeaways. Rob, I a to

direction, data Following driven outlook demand year for by our validated our reaffirms that a high This insights to a strategic record growth analytics we're long-term is provide for and opportunities. pleased XXXX. robust and our

allocation capital form opportunity capital in unchanged priorities Our attractive to invest stockholders our repurchases. share returning of in our dividends to and and remain prioritize the we business, before

Rob. all call Finally, employees, turn is we let needs to that create best we the with and for demonstrate our commitment that, to long-term over able by and communities, And of back believe the meeting actively Moody's supporting stewardship sustainable value our to sustainability stakeholders me enduring that customers stockholders. our our of are served

Rob Fauber

I This Operator? Mark and Thanks and be our Mark. your prepared questions. remarks would to concludes take pleased

Operator

We'll Please Kramm go Judah Instructions] [Operator from Alex with ahead. Sokel. UBS. hear

Judah Sokel

up where great you markets bit of done cost a savings. top-line The be the year little first constrained. investments, with you the specifically making to ask are extra have guys And wanted emerging question gave the margins you're yet I leverage margins, that appreciate margin going a Generally, balancing that the we was between for thinking and about outlook from over margin expansion more in some and operating color taking to have in investment time. coming about guys here XXXX, the

to expansion especially with do using continue you So further? about growth in that in driving XXXX, reinvestment MA, how margin will that balance, need have the think to top-line coupled you

Mark Kaye

This question. is Mark the here. for much very you Thank

your we in balancing while are increase invest need pushing that to We and maintain to accelerate are that the to the to against growth. ensuring top-line constantly point business margin,

mix, creation prepared we a XXX identified opportunities are that As having going for at of points efficiencies, can the spoke things to from positive advantage we're into to that And in remarks, we're restructuring gave we basis we've be expanded exciting I there of efficiency, And from noted approximately margin the course, XX% probably speak going we we basis automation, XXXX. location, cost, business. XX to making and preserving might broken a that call XX% to there's investment call If XXXX think in probably bit that's some back about be that probably those the the cetera. additional quarter in XX XXX in efficiencies, to in math for organic MIS to how would And going take to later about And the year, going basis positive by little from are while terms XX of about XX more number that's margin a in of even we've of And after the is incentive further program, estate, million we reinvesting around be come XXXX. that going where can about bit this real from that I margin be reset terms basis in lower helpful. points then like if utilization the also and done. creations down, a XXX of those and talk benefit of million procurement color that's of XXX we to about on and an of growth, XXXX basis the offset come MA margin that maybe creation of through about operating which from and to the to recent like that's leverage, grow headwind revenue and little you et things going scalable business by element accrual. If last that's faster around points XXX XXX into the of then of which areas, margin M&A savings strategic points between forecast key compensation we're investments like. think that's a spoke to and than points. our increased acquisitions to

you if while together, the future. you of businesses that to the in put continued sense a managing we get growth how of invest So we're ensure margin portfolio all expansion in

Operator

And we hear with from Kramm will Alex UBS.

Alex Kramm

on and but MIS delta sorry between last starting forecasts you're the maybe you missed and if the you your I to then can flat attack question, perhaps off how Anyways, the issuance get also revenue any comments the the that mix be interested year, in had given pricing forecasts, helpful Thank particularly solid also, obviously, and we and will issuance recurring well. last then you revenue that as

Rob Fauber

years while robust growth very continue, we've some comparables before. market activity expect tough guiding we range. let and two now, down between very favorable going I issuance The high maybe challenges October, think XXXX that after back about we've and down conditions. And got me some single-digit year said is, got some little still year-over-year talk percent to say, the the you bit issuance And we're we in a year So in very issuance would last outlook. as is to issuance I be to the strong modestly year-over-year,

structured these widespread assessment assumes distribution XXXX, activity a continue environment going a a to and our on. M&A supporting of all refinancing. of So another we're low finance rating improving outlook sponsor think and continued service And potentially supports in activity, now seeing underpinned continued and that bank in think see that, largely That we're of central that parts stimulus. means activity I conditions for constructive be leveraged to a economic going sustained we round rate by various lot M&A be vaccine support I driven market some recovery of we're growth. will of have growth and finance, and that's so seeing areas like, Certainly,

take issuance very grade a own like in by an know after our contrast. XXXX. grade, last sense would and get XXXX one kind That's the year bonds we're you a then extraordinary me very a can tight year, remain Leveraged investment just all you see XX% years compare investment recent -- let sector continue to at all moderating, for of maybe do what refinancing said, said, of And can your to was corporate you the to something to amidst strongest by it activity. we comparable. M&A Alex, that That up I decline record. So, low looking and particular, still outlook and But think can almost tough finance, and XX% estimating come is issuance U.S. of investment as we ongoing years, think yield X%. we're relative driven on decline rates, high a issuers modest market elevated be grade spreads, are we going for will

high in classes, asset cards yield U.S. different in yield. see student growth as activity, to to going good U.S. somewhere driven search Thinking going we there activity help see support muted we'll think you growth, coming should more about think bit we're that in in think about some places you to also issuance. that's see where leveraged loans, investor to loans, some that ABS of outside a should we loans, XX% in off see activity, actually think comparison think LBO but When relatively we're like more by a and the be activity slower XXXX remain for the And like ongoing RMBS. of supported components credit will improve growth structured quite auto some demand of subdued we think obviously, structured M&A we'll little seeing maybe And being the and I it's the about by finance. mixed in XX%. strong bag, improving a range I the finance, year after

in CMBS, market. the some real some see loan think you of though asset market the that about commercial some estate modest distress. hotels on what's at market, leveraged we for securitizations, retail even we'll also think growth with you've parts as as hold going got are I the we And like look experiencing know, CLOs, then, and

just loan be market. tightening that there'll some think leveraged with growth we So in stronger in CLO spreads and supply the CLOs

for I'd one finance, public just other year add strong finance. maybe in So thing public very generally just

levels at year. but consistent with that last expect So elevated, we'd to remain

Alex Kramm

you and talk And to pricing. the about versus care recurring transaction

Rob Fauber

issuance access pretty look we'd issuer revenue something think it if mid questions and something think revenue. just revenue included of recurring in I We've thinking growth. at our looking for we'll fees and some general, year service basis, looking our gotten others and think I we about mid-single at recurring you how the comparable probably From characterize like full kind a low outlook standpoint, revenue recurring fees, be when be digits. I rating in a assessment we rating versus digit, on recurring our single to at about And

Alex Kramm

And if which lot headlines quick of secondarily some CCXI, people. topic in mean, on obviously one, okay, Okay. I just December important for a then that's definitely an is on China,

that you market out of Thank months few that, there? flesh ready agency just that you you. around market how a feeling for word. the are really can different rating highlighted over So arrangement JV the the out is essentially right considering and for maybe That's a

Rob Fauber

strategy had CCXI three touch month just on no coming a guess, to China, business; the license suspension number actions think to that. China's And taking at impact as the I it MIS business a a got of we've got maybe that. was obviously, end Yes, I cross-border about suspension, broadly, MA that, more they're rating December. of in the really the Alex, so address to we've

market, meaningfully. remain that us lead I issue, signs don't agency but this it's from terms mean, U.S. unfortunate leading had administration, the do I that In obviously, to is of they China. towards China in early CCXI to the rating think soften credit the And think, domestic policy domestic-ready likely Biden

So be the successful looking firms, remain challenging ratings, U.S. majority truly long-term. for in I credit sectors, environment I think to like for on I will important this, think over at think, the us

businesses CCXI to to of on like Alex, things industry, we're in and we're engagement. like have the and collaborate into the So small customer with given your we going we've say, about we some continue seen capitalize how And domestic been demand also finance on I guess solutions. thinking green things credit like know challenges and also rating would I the can insights for commercial

alternative and growth and beyond domestic of In is, and we tech. market. ESG a NEO set Finance, Green new the importance support November, then And green other serving I'd also and to develop offerings So, called of and Greater insights the we data that China's provider in finance Group that acquired in right, risk the excited called October, now a thing about say in to CCXI, data helping sustainability markets made KYC dedicated stake a company company of the And China. a a markets. and based Development a last we'd we're cutting-edge given China, for in they're investment SynTao of very analytics thinking Shenzhen an and minority in up in Product kind

Operator

Kaplan of Stanley. Morgan Toni

Toni Kaplan

open could around target? thresholds you deals? you or more to Rob, you maybe would small for? what tuck-ins? stick what to Would large to you And Or M&A understand continue sort be And the your an of help look most M&A? in attractive would medium say return us you're do you thoughts for

Rob Fauber

risk consistent. are prepared I'd about in So What looking example. very use things we're And M&A that out say customer a company interesting is that going years. to segments laid acquire advance very are talked that I Because our and our across my and that thought we valuable really And criteria multiple we've for we remained strategy. to cases. over data assessment an remarks there's were able Cortera was where the

very that's So attractive.

is XXX would ago, offerings of offerings. being integrated range climate data Toni XXX, been example, agency the good a years MA into we with has Another a in climate, now to we risk but rating addition be did the bought used wide that what across standalone in couple

assessment are risk data we acquire cases. use analytic a opportunities relevance capabilities to kinds have those and can us, range very of interesting where of that across So

do in that meet you've estate of acquisitions very And like more so kinds years. And for got logic that's we criteria industrial done seeing and the say what had with it you've have just commercial we've strong helps real return that, been some these when us that, of would us recently I Cortera.

Toni Kaplan

most of $XX relative the update do And you've in like to just now you see growing? are ESG opportunity And to there? in million. then, mentioned That's initiatives at us great. what looking million you that then Can past focus year it's 'XX on how $XX just stands about and areas within fast and the particular ESG where where you revenue was

Mark Kaye

through analytics million. at approximately XX% using MIS client. The looking $XX interesting In data and XXXX, inform about that in around for is is, addition products, a to that that by developments produce. piece ESG million our some XXXX, ESG XXXX and through revenue for through be another of CreditView MA, have going to just $X either an ESG we're content enrich ESG distributing and new something data to terms exciting their We're this $XX earned revenue to thinking include revenue grow products continue is, CreditEdge into to about for our integrating lot that and discrete analytics and can we will we is looking and and platforms. XXXX did. in how inform to our to in and example, climate through into ESG ESG million updating, external that, can ratings the And of where MIS pilot better we that research sales we CreditView of There our including develop are

the profile incorporating score leveraging frameworks. Our coverage risk. finally, and impact the then within scores for course, that's is data the of of having around methodology, credit physical ESG of our increasing And ESG course XXXXs over BvD's issuer companies and transition credit and is risk course,

there's of so on a space. opportunity this lot we're that And capitalizing

about And how across MCO. isolated just it business, integrates more the so ESG the but holistically not it's

Operator

Sabadra Bank. of Ashish Deutsche

Ashish Sabadra

Rob, on there to assessment about forward, and think use are thanks growth for just in obviously very risk or geographies you a areas. color as your compliance, And pretty cases going I which compliance and other attractive KYC from are integrated focused on Thanks think addition high the growth KYC you're the providing was perspective? wondering you the market. group

Rob Fauber

And more of right? just broadly, is talking to about that you're kind clarify, our portfolio

Ashish Sabadra

compliance? That's KYC right. about outside think of that business And how and you growing even do Thanks.

Rob Fauber

Yes.

I So things of maybe couple would a say.

said, financial of credit we've We're got then cyber. in There's place also where climate where have broader obviously, the of talk a KYC I'm First, and of ESG in within and we crime we're also commercial and research, transfer of as building that we incorporating behind like data tools, content, investors. just core pricing on RD&A, portfolio that increasingly chain one tools around portfolio broad seeing for see is and a lot we that kind that's And integrating going for very we data Mark RD&A are our business solutions that's our MA lending and data some that to there, portfolio obviously some analytics also the decisions, content, real analytics of some content of where demand growth. today. management private strong supply our is workflow companies we're and to demand another good lot customer there out support, demand And economics lot from that. commercial decisions, growth rates also There's for and because into estate base got seeing content. a lenders a about

stress market You think and it's and analysis about to testing. scenario that planning support used being

Ashish Sabadra

a MA That's growth the the business, quick high question maybe growth. And on very organic Rob. helpful the color single-digit for

and obviously, RD&A, If from recurring help headwinds talked that'll you could March, but from you helpful. be the Thanks. you of that growth some parse incremental in the there, to the any subscription model, then thunder the shift growth put about ERS pieces

Mark Kaye

forward RD&A space. of declining one-time be the think likely ERS ongoing XXXX, the basis. of the a of that I We'll specifically, growth we business spoke see recurring here. majority prepared That some offset will remarks earlier, the around of the Absolutely, is in part terms in transmission throughout segments. to revenue ERS of Rob sales and the more growth of driven spoken to towards

about within if growth see over that we'll then a of low And the some thinking ERS in RD&A will still So XXXX. year. double-digit through guidance, but growth you're come actually getting majority small the

Operator

Andrew Nicholas with William Blair.

Andrew Nicholas

and investment that Let's terms strategic investments bit standard opportunity? relative total different any Slide excited on on then, of the you're is that's outlines some XX. detail single more hope Maybe in others to can both outsized the of particularly you're there also initiative And there wondering, about. examples provide investments you making in a

Mark Kaye

then We just the investing we're the some very into, sense, adjacencies commercial that business, that a cost real we and million certainly our producing can obviously, give to of and maybe estate side, those start that into that to the about some you integration, through real of $XXX our many estate the of both recent areas million products. feel of of $XX data positive commercial in efficiencies sets growth we

sets and it's we I really here, a side through creation the didn't holistic the of one that of of build further think new create synergistic RDC, Tony's about question type then, on opportunities. that ago data this, spoke a integrated us to Cortera just opportunities integration allow to how simply products Media, ESG of we're market. that to beginning compliance, BvD, a out and And KYC of minute adopting the Acquire course, recipe to to the give begin

Rob Fauber

And there. investments we've we're And that the and a Bureau to make let continuing the plus maybe focusing KYC years me and compliance three organic Dijk acquisition. because Yes. there. made and Mark, out add van lot But from just specifically now to reference and data, of on company investment and inorganic we're

high page now teens. them. in that And the and are business more the holistically, on reference puzzle like webcast that we're collectively, inside this data of company is remember about sales our they is thinking business, You growing something

data opportunities Orbis that where performing to that credit. Acquire acquisition, us seen That's well. very with And all private all commercial data do complement continuing more So giving media on Media, of we and adverse data, to the even you've at and data we're suite and with Cortera products the look is us the RDC. that companies got people

and the of think where release commercial first one with is world's the just invest of We the investments, done me the useful of continuing on organic in let example usable companies. van RDC. we Dijk of database And to what completed So think we've most corporate recently. bringing database Orbis as our kind an together the of give all of of and its we're out we're part thing of screening you all data and creates Bureau that tool hierarchy building This profiles integration simple it's RDC. one all customer risk the lot immediate a That this. market. and a to promise of in place of people We the that's traction our interface for some and on customers. and is that for put the It really in acquisition with one in kind all And of of data the had RDC, was was efficiency we've one in customers powerful. our very

Andrew Nicholas

that as a margins segment of becomes maybe a then follow for is a to up opportunities Moody's discussion, a to the obviously, kind whole? And margin perspective, that among the helpful. QIC is from at That's consistent accretive long-term that of Great. it's, growing faster it's bigger with that M&A, business the pretty part or

Mark Kaye

Absolutely.

the focused to margin you growth something very BvD medium we're over XX the balancing attractive So term. of as that sense opportunity we next versus continues the and gives about margins in that sort margin as the in term focused perspective, for bolt-on KYC ensuring think very term business, not to us, integrate a from on near that longer that protocol margin very revenue profile really we're on be both over revenue And of necessarily profile a margin months. a was how XX approaches and we're like

Rob Fauber

margin scale attractive profile. generally big Overall, business

Operator

Manav Patnaik of Barclays.

Manav Patnaik

wanted to just I focus on Cortera.

just I little how believe So I my hoping on going is, guide big us could through question -- asset again, us you also. bit that first more was in a already give that is what is, in,

of wanted it say a call BvD income in of let's suppose. I how U.S., is the see much for tact, Just to gap,

Rob Fauber

Okay.

we important supplier database. the it's your years, during acquisition. step been data known an on acquisition to the rolled in Orbis I in U.S. important. of year the them particularly It's fact, for Cortera. with we about, our I've this think height that worked data talking And last they're contributor not We've that of business know already big enhancing next Cortera and in portal COVID. important But an It's a Canadian market. the out

something to now really rather a suite data I you focusing their very working network good Orbis already And and have building growth. -- I out full database. Cortera, credit. a think contributed is think asked owning growth, it's we insights a the force. the part with points, data, really said, half data of and unlock and franchise the than But is I them. accounts XX trade receivable they sales small really companies an like they've amount on credit great data And they're we their real as relevance focused that reference on data with towards Manav, asset, gives and have we a on across that contained Moody's have really just by enormous trillion about as So million frankly, going I relationship been that said, access a and to this spending of key commercial company mean, of

United and enhance end a to then I their in So our course, We've data company in multiple enhance our and analytics, big to markets. credit better got market in global customers. you proprietary we've serve, the offerings. And Cortera's core great going the as States we're sales force going offerings, force, data a of said, sales to of got a shared the is lot

Manav Patnaik

Analytics? together Okay. within just was guess are little think that Moody's Got which exciting. do that putting wondering, ERS it. this And I you all you seemed I a puzzle Moody's Analytics pretty all data of see then, puzzle how across I

Rob Fauber

That's sense, about of engine. part that got I we've think data talked of a way this the puzzle reference an about you're is, Yes. it we a getting company the content might Manav enormous big as guess it. And I in piece. kind

then we've Now, is enormous I content. rating have, distribute estate commercial got is of right, real capabilities. of think producing that an engines, to other amount we several content We've ways that. the agency got And kind

content effectively software parties. opportunity, but that embedded the going to also all looking And analytics, solutions. call of it's can we're being as the to this research a always kind And through in distribute that a think the risk I to that lot that putting ERS gives world. that's that there's is business. other banks on us we're software Maybe term you it into to an be imagine I'm then and ways leveraging through third We're this able putting service One for of across a through content is through whether we're is content service. APIs, content, as with customer those workflows of them our ERS. whether data, partnerships of used coin -- it's the

I platforms just is, I'd important as So of about service And big thing distributing of the a for content one business, these a business and say that as think other ERS institutions. into content. ERS financial workflows embedded the the factory it's the software at deeply very

sticky it's So it is very installed. once

Operator

next our question. Goldman George of Tong Sachs has

George Tong

dive to segment into deeper you're flat year. margin want expectations margins holistically, relatively to this operating by be expecting I your

Assuming and MA about you as normalize? MIS issuance levels sustainability increase, to margins margins are thinking continue the that how to begin

Mark Kaye

for first very Maybe quarter and talk even think step our I'll little bit of fourth the sales to fourth the and faster. margins were But bit down. for what a MCO look this that then And quarter of both for are we driver that, XX% I back of at MIS XX%. the I a based on press unlikely XXXX I'll talk expectations the attribute minute in it's grew -- a that. drivers expenses about primary at for really if to quarter that about XX% morning to release really MA reoccur little total, after call is aware primary And by

impact points percentage core So salary performance. and around that hiring, base, our incentive continue that stock and would the in to M&A as sort points probably programs, only underlying -- efficiency there really salaries expense on to percentage of strong invest three was of expenses. increases to relate The And XX restructuring growth. and that that we X%. would then, five was was On relate points really percentage sales severance of commissions of for three

So very very controlled. disciplined, consistent, very

whole, led back a for that guiding that So confidence approximately feel we to give be in base if the terms to as operating in in achieve revenue of XXXX. to for we what our QX that's at us XXXX. that we MIS of able very And outlook maintaining comfortable margin look toward step XX% now, we're expense from and XXXX, supportive

George Tong

helpful. comps. expectations, for That's your you're if at switching looking difficult then be we about it. round And issuance single-digit Got mid issuance off yield gears, of high look to

environment, improving M&A also can to yield cetera. rates, like very low some default high conducive spreads, cited that equity You factors et activity, issuance, be low

for versus how high you the handicap your case base downside or would So upside yield? expectations potential

Rob Fauber

George, activity, specifically broaden touch finance think, in would kind of recovery, leveraged liquidity. What Biden kind companies market. public levels even some a like, the the positive see, puts maybe, a overall the pick of some upside, we looks faster up I a a in it's than around M&A economic seeing headwind; to if and provide then in got lot and things a have that provide very right in But think we XXXX, you've the more takes if finance. of I upside that loans, in of see, I we've of what to market may go we've terms to could it's finance that beyond of activity of XXXX. activity out than be be also issuance leveraged supportive that But might of a expected some be kind just what infrastructure, to lot talk issuance, that M&A leveraged could and also whether kind that, Leveraged M&A seen expected we leading to would sponsor M&A activity, market. we're recovery, expected is see health faster or the a I'll wildcard to that on the about, could possible lens and coming upside, finance. now just of administration out could

pay that about get out have quarter down in to recovery we still we in of financing, they're we debt, in were like I that another healthy companies and to that because other some see health liquidity the think lead in all Mark course, the see you this what we surge COVID, do things that instruments. I with going we that see I companies will use see it, saw and very still economic acquisitions, to their to whether think are probably liquidity, things where the if business. of going terms of driven downside of And you to talking make use positions. So, and to invest Interestingly, drag cash worse day, last second don't expect year, got in to have if with

Operator

Oppenheimer. Owen Lau of

Owen Lau

about T&E the for of digit? Could Do example, assumption to related want mid expense charges back reorganization? expense your estate, or guidance of you please drivers to additional are up or also talk the real single quickly the go marketing? in growth? severance these and and Just any to terms you What key an include, incentive

Mark Kaye

of let's categories. primary If quote think outlook to XXXX four the it XXXX, probably I be, about actual as single, attribution mid expenses the

be of savings that to us The savings we and that the it's and efficiencies self creating, XX category of as is that base. And to efficiency, anticipate X.X% go to able to X% better efficiency. is probably that well that investment that's also those kind first our really to see is probably fund and million consume expense technology X% it's we automation, and X.X%. base and to that infrastructure, to going going somewhere million opportunities point the That in to of as XXX XXXX, enable many to the enable of enhance between innovation whole

that's almost you X% out. businesses of mid-single could And to efficiency a driver guidance probably and of incremental of course, don't into of sort XXXX of towards And expenses big little We've that's or of back activity. going X% have restructuring that vis-à-vis over to the has around to washing in be the to see we to sort related of FX probably M&A digit expect So headwinds, of savings X.X%. and expected that you XXXX charges. depreciated same reinvestment got and that then, itself depreciate degree X.X% over another to the a And and growth. bit terms got dollar the impairment

up of So a guidance. with coming that and that in will breakdown terms give thinking you of sort single-digit the mid of sense

levels T&E expenses. year, in to return move T&E probably more increase going And get modeled to have You than experienced, more workforce. our customers we that we we as third, it's we the by be would the going still as to efficient that maybe pre-pandemic we're specific historical expenses, question through in with fourth and had to have more effective an and level, quarter, lower those but one on certainly normalized time communicating you become a

Owen Lau

So my you thank for follow up color Slide on the is, XX.

of of How assets growth fully its instead very of these you I in of of you about maybe penetration can integration offerings? just you expect, parts? and the Could helpful. the please the synergy some pace think great these terms four realize and it's drive additional talk do

Rob Fauber

start we've back synergy acquisition. I the at going and have into Yes, some the that. the to put of Dijk market out I And guess achieved just targets might effectively by, we van time Bureau

our one database very we about on And Bureau I the to integration example in most of to business. that -- integration. the with was getting RDCs a our place great use. all relevant shop performed that is RDC in is the wanted of one to customers it. them into It the kind of call important we of we that's the well, catalyst acquired achieve very for So the since things example integration with good expectations, we you, earlier grid database RDC other big for create easy one of Orbis the that van gave has into call a feel line what Dijk Then stop the asset is to RDC content compliance

already have our a milestone that's us. So for integration seen, big

of these achieve these So full we're potential that to we and of about we bolt-on make to as integration acquisitions and sure to very call just wanted out we of Media as we've can we as can the value get able number And we stood we've back corporate we a Acquire that. business feel acquiring. an we management office, we're bought quickly realize -- actually got as what so get quickly that up had the good October integrations done what as really in

Operator

BMO Jeff Markets. Capital of Silber

Jeff Silber

little just wanted You of might have a this clarification. I to earlier. get answered bit

acquisitions strategy, opposed be in MIS most had of Toni think in you? going MIS, expect is might to as the there to attractive look we about forward asked MA would anything M&A the area, your I that

Rob Fauber

the many been Yes. aren't build I case, has out business. that that scaled historically, to there mean, the just rating opportunities

you investment us, Islamic because one the the in for Malaysian did year was making finance a world. it's rating last see largest markets agency, of Now, that in us important

finance. an that rating And of Islamic so important we the capabilities to augment global that was opportunity that thought around was kind

sizable As China. we're around markets. we're you in India, there many look the in in just them, we're aren't that globe, domestic And

we at over analysts that to of many of customers. good talked the call of meet platform you but I then just that a tailored The in needs markets locally America, approach and and at local think with think some aren't I size in MA that, that out nature with from of is, have provide it market been a Moody's been opportunities. kind our And deck, just, we Latin Local. pan the about I sizable building look traction and look that's growth products And it addressable to domestic we might We as local that rates in getting Latin other webcast you these say can so we've basically demand the thing highlighted again, regional and markets America. the

investments think rating and I our in you'll regionally will that markets make continue continue focused to see we'll out So these then risk trend presence assessment agency build the that in in MA.

Jeff Silber

that's question And then Okay, helpful. a quick Mark. for

acquisitions at your what guidance, that be scope looking the Just in XXXX? can out would MIS revenue impact you of

Mark Kaye

months. ignore MA, relatively say overall XXX% overall should think wasn't around at approximately the acquisitions the are from XXXX. that acquisitions and… last I if had completed inorganic growth, three MIS MIS looking would right, be that MA, All year, for sure, to we're growth I the about seen the two four points we looking the with outlook I after at over of percentage organic of we've I in on for flat of organic to And terms immaterial M&A consistent our XXXX,

Operator

Huber Huber from Partners. Craig Research

Craig Huber

are for what the fourth you presentation incentive the packet can charge is importantly, could, this to fourth much for Have more was in quarter the quantify And there please? it the us cost just non-recurring? non-recurring comp for a can out full does called a in I think restructuring follow want up. little release. get that year? there, if million more quarter, the $XX do what clarity and that so guys And what But cost else you you of your quantify I how call on in and press was

Mark Kaye

Good great. afternoon,

what also would close equation, XXXX severance information for run XXXX, stock to we had really to that adjust done. rate, really, million with probably the million growth forward the to and just with that's into QX, look completeness QX million. normal out align that on the above between is increasing expected compensation the of salaries and number, and XX-ish approximately that million suggest the team full touch our incentive compensation a investments, expense XX-ish. addressing The one benefits the was Let compensation of incentive per overwriting that you'll from on expense, that your I be and to that business, costs, ones If to $XX numbers, really me some line. and another the $XXX then little are than XXXX, additional extent, fourth year and was quarter think there our biggest to those and that million start inorganic selective XXX. it and other incentive, the dollars. It's the primarily anticipate a incentive driven was is I'd really compensation And consistent support quarter. we guide by around higher XXXX to then, be question, thought probably very growth revenue in It's $XX XXXX plans acquisitions between as in in the we helpful might bring I And restructuring to and million rent, those some $XX from $XX to recall numbers

Craig Huber

regulations with get with increased it's higher here ask Rob, out the to perhaps corporate outlook new like seems And, you, be each Biden we'll in there. tax rates, administration potentially,

issuance, you that administration, prior on thoughts need a rating on we the the of impact and could maybe they if to that potentially get just perhaps favorably? ESG, to regulations that, agencies general, will in that once I'd on and reversal your to what So without touch love hear stage be debt for on patient good also, change

Rob Fauber

then I it's of and to corporate I in the the you know, In Biden regards increase economic COVID And taxes, ministration. really don't potential focus. term priority recovery think a are near the first the think, recovery, the

And when of may of what and I we that the limiting, back the increased. half that about remember drives it one say looking discussions at the also year to factor factor, kind be debt to the reduction tax is I But going in And I questions something time the insurance, about the were in potentially debt decrease could to and in the concern see extent would terms impact would that of And rate all it's all that's but corporate this be of was change. about clock But before of was, was, So, shield when rate tax the back general other negatively impact they're the think, the the in a a free value certainly some flow tax the in going issuance. guess it issuers. we, expect lower where these than shield be happen roll cash of issuance. theory, reduce way, just to it's answer rates, for the XXXX. to I our of would XX% we'll of well, could this how maybe mean, talking the I this pretty modest. still any in tax there

the would for tax looks factors, a what than, growth, think rates longer to they're modest I economic the look like, relatively things corporate be change just geopolitical at going impactful I I pandemic rate. think like more low in

of already one Biden to You their It's Agreement. EGA, rejoin an very Paris on the top mentioned the priorities. the climate change. announced incentive focused administration certainly, is They've

ESG what is disclosures we're United for to the think I States. more see going one in

more on ESG. be consistency, desire a And and that'll ultimately, framework. a I good around for even think positioned to there's think be comparability ESG word, capitalize us good to the data market, get desire the a that's provider focus we're think of for if to a well very just I a increased I kind that'll of availability, and verifiability, harmonize as on analytics, real

Operator

Kevin Suisse. of Credit From McVeigh

Kevin McVeigh

ESG. on follow-up Just a

as rest the how as the how agreeable any the of Just and of Moody's? thoughts part to that restructuring it's to of restructuring impact to relates business going

Mark Kaye

a place there, different? -- specifically bit just that Kevin, confirming putting here, audio little up the in Mark restructuring or because this something programs about we're is just asking you're the broke

Kevin McVeigh

that's right, Nope, Mark.

Mark Kaye

savings approved that's a going to that within result reorganization $XX strategic program is So, relates the Kevin, segment. annualized in to going per -- late we new of between December, we that $XX restructuring year MA estimate and something and in the million million reportable program specifically to

response just separate exit place real in primarily around rationalization restructuring and estate a and certain in was put also We of as leases. to pandemic reminder, COVID-XX program the a that July, the in the

XXXX put So run were total two I and together, rate $XX actions to little a those in XXXX $XX million maybe going are that million we than bit those more charges generate in savings. if expect restructuring around

second back and just run and I and in into and have for if lens for that expanding magnitude rough to business think since probably including about about rate expectations a of certainly $XXX rationalization our benefit that saw support created will we total growth. Now initiatives in broaden the efficiency XXXX, mid-XXXX the almost invested and the that future I back step I XX% our the We reinvesting XXXX towards and of of order of XX% savings in million margin.

Kevin McVeigh

That's then with trillion was X.X And super issues -- Difficulty]. helpful. [Technical that the any does that of the factor

Rob Fauber

Yes.

stimulus quantify there I we to infrastructure, what think assumption for I no sort we and a upside. in of be our were stimulus tried thinking that that a we've uncertain we if that sufficiently it size general, outlook and will negative I that an of I think incorporated necessarily but don't package think hadn't think specifically explicitly in outlook things around in package. infrastructure package or be were would us of to have the the our issuance, was like assumptions about our enough as some terms there

could provide ratings. think some package, upside, and there our meaningful I see if were you'd that bill, a I So segment think infrastructure that PPIF in

Operator

with Rosenbaum Shlomo Stifel.

Shlomo Rosenbaum

the your to strategy banks pursue and some further Cortera of and besides of and you want stuff side thorn for in their just that pretty on elaborate perennial scores business? that DNB. their a more kind been acquisition. of of are that, trade is of Is I bit that interesting focusing Rob, little and information on be you planning on credit actually a have kind in providing guys Cortera the like part Can the trade to area? the in something that to credit hone

Rob Fauber

Yes.

of got really and go I'll our back trade risk that acquisition useful is supports will know -- that through data maybe to think I chain your said, to management. thread you're supply that customer. there. be So of a right, procurement from catalyst part the data, us ranging valuable offerings was It appeal going credit We've see interesting that as you're we've

our commercial imagine can lending that solutions. thinking we're us You into integrating about

Orbis, their we content. ways So opportunities and have through a think content there core not I earlier, capabilities to of number all of mentioned we monetizing only we lot see that is trade and our some but a credit of that offering. Obviously, so credit enhance

better their big a force States have and serve market. here We in the sales core United

Shlomo Rosenbaum

Okay.

heavy way that other trade we your a, in obviously, part more business? So the to the the Is yes, is area. could credit enhancing understand that be besides, of

Rob Fauber

answer. multiple are would There win to my be ways here,

Shlomo Rosenbaum

or terms of not? And Mark, just, well in Okay. then of the as your growth part Cortera is guidance

Mark Kaye

step small, impact MA in impact, And basis for I to helpful, the about probably points maybe Acquire earlier and relatively we around on MCO or back VM Media, impact see the bit basis have our we call XXXX. as be Cortera margin. We Shlomo, points EPS XXX-ish the to this Cortera our Catalyst spoke aggregate around more XXXX Financial, negative is obviously adjusted little margin and might adjusted The impactful. is I bit XX $X.XX into just if the and a incorporated so. guidance relative guidance around both for think margin a just impact adjusted

in might how for that they some So acquisitions year, recent those of and incorporated. give fully impact color our terms guidance the

Operator

now Atlantic And Clinch we'll Simon from hear Equities. of Instructions] [Operator

Simon Clinch

these doing building I you cycle you what that competitive was RD&A. are interested assets part market. are how notice back data within I'm environment wondering if acquiring of could the to desirable And hoping you is our for to that really the in not obviously because it's continue very is this a

assets competitive the win so just in wondering you and Moody's sort how And and should how want? why environment getting about you that I'm need that of and think

Rob Fauber

very a market. It's a competitive It's market. frothy

these logic we sure which the had And expensive. owner quite always monetize and industrial to are industrial gives ways because us want the enhance to I we very are a valuations the real of we really see we're You a and for puts buying. logic what think that that have disciplined acquisitions, these natural to M&A, approach make the premium assets on

around value the product the who are I same our at about putting Cortera for way they what's fragmented about back felt and manual RDC. my we feel risk to going of You remarks, customers same it some When the And data, the of approach. think understanding that I talked points of customers, a that's of our to natural because when as prepared looked has they you with good on felt offerings. historically example. a think they go customers were way, our business. pain owner as and huge have we and the been those monitoring Cortera it through the I back multiple about onboarding

so that is competitive because are And there in investing process companies where Certainly high-growth the able it place other be of these know assets. RDC for your customer crime very are at in be. that that anti-financial then be and parties looking to promise us space, and are to our our customers together to was attractive real put other allows to all

but industrial at the to ultimate be only that also same not logic our meet criteria So be acquisition allows time. us to owner, the

Simon Clinch

But business. recurring fantastic side growth this to down of in line. effectively I just then want And make just of is following right. you're There the sure ERS, transactional winding that revenue understand sort some the one-time on I up

guess I through sort I optically? should So just more should wind-down -- start make wanted last growth we how the side understood that see long I strong flows from to and of that sure of to sort really recurring when how

Rob Fauber

revenue quarter the right. And, recurring touched got fourth almost saw That part the recurring that in for Through the that subscription Yes. on decline exactly Simon, Mark by of total it it We've and in you've line. earlier. you focus was low got is growth. the one-time double-digit fully up building us. revenue It's the business as sales. the revenue, offset

we back soft Now, XXXX. had one-time about in talked being sales

on But who customers We solution revenue. There also sell not reality sales. one-time an de-emphasizing. winding we're tough them. to had would a very say a to still is going probably I'm but focus some say and through real only down, recurring is, But our case, it want licensed comp sure on in offering I'd the are that I

of So revenue what we really bit three little that insurers, is help just things say. that in getting seeking maybe are very soft line now a I double-digit recurring to are top-line give historically is also little they're kind pushing to been main relative where revenue the right seeing Simon but you recurring what our compliant. you're is driving a strong. what revenue. would through overall of it's is low bit There One insights growth for into And

You've heard regulatory That us stuff demanding. requirement. about very computationally talking is XX IFRS

development GGY you product has really And few along demand up years remember, may product the to capture with And own called some the there. set us a ago. of company bought we nicely our suite, GGY a internal

we're So capabilities adding we're and not adding we're analytic new great just building only new a our but the customers, we're base. insurance customer penetration modules, with deepening story. existing That's

demand they lends, our We're third, use with penetration in deepening from requirements. comply modules our And credit It's application credit tool Again, us heard selling bank then our our financial we innovation an called lending and commercial at Second, land past. story QUIQspread about is spreading right, through existing accelerator This ongoing banks. we're we've global came that's worked its adding talk and alongside expand capabilities reporting automated we're employee-driven accelerator. the that launched that institutions the customers. out U.S. need. in credit with to now loss and that a got and you've great the and over way -- an another it's really example of XX that that lends

going And know headwinds. you to couple of that how long some driving So that as have we're as that's that's continue the I what's as one-time years imagine be. going continues to the exactly in demand. next I would said, line to don't decline. to

Operator

our [Operator are presenters this I at Instructions] And the additional time. no like call any to turn there to it questions over further closing would appears for or comments.

Rob Fauber

say in the thank forward speaking we today's very and joining would with I you to you look Yes. are I guess, hope just you spring. again well Thank for much. call. all you I

Operator

Moody's this And XXXX fourth year and does call. quarter full conclude earnings

fourth As XXXX year revenue breakdown the immediately post earnings a at quarter company homepage. section will and MIS Moody's following under IR this the the call, full reminder, the

of site. call replay a be will Additionally, Today IR Web after this X:XX you. PM on Moody's available Eastern Thank Time

now You may disconnect.

Moody's (MCO) 12 Feb 212020 Q4 Earnings call transcript