MCO - Earnings call transcript Q1 2021

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Operator

Good day, everyone, and welcome to the Moody's Corporation First Quarter 2021 Earnings Conference Call. At this time, I would like to inform you that this conference is being recorded and that all participants are in a listen-only mode. At the request of the company, we will open the conference up for questions and answers following the presentation. I will now turn the conference over to Shivani Kak, Head of Investor Relations. Please go ahead.

Shivani Kak

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

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

Rob Fauber

acquisitions. high-yield and generated of and from both that And and Analytics. XX%, performance XXXX subscription-based And everybody, call. markets. introducing MA's to reinvesting XXXX Investor as integrating of results. Thanks, loan happy remarks, further business, XX% Mark our general growth, our period. Service M&A offerings, particularly in take supported be business year was delivered by XXXX, today's well quarter. joining of growth following morning, quarter this first increase fundamentals XXXX XX% provide any drove in strong robust of in quarter, into Kaye financial Moody's over update prior our questions. recent strong the performance my first and amidst leveraged back issuance the economic going Shivani. as in our results outlook. new best-in-class $X billion begin Good providing growth we're will and up drove commentary, solutions details on to in Moody's products Moody's for revised increased and in the we'll financial revenue a on quarter first XX% the And including by first thanks an the and by Moody's I'm EPS over diluted after our Improving quarter revenue adjusted and MIS revenue, the prepared activity bond some

percent high we've our and the performance of our quarter, increase in guidance, range. Moody's updated year the in strong single-digit As XXXX now revenue to a project result we full

and Additionally, $XX.XX. we've EPS diluted narrowed to adjusted raised of guidance to be in our $XX range the

to up adjusted $XXX $X $X.XX, EPS MIS' delivered billion MA XX.X%. has single its again, consecutive Moody's of is exceeded and XXX first diluted This that adjusted income revenue the Now quarter has to million, was XXrd points rose quarter, the Adjusted growth. XX%. turning to first operating a margin quarter basis XX% expanded in results. time while operating

the not of could have across dedication we hard great accomplished Now world. these work results without employees our the and

of also our on like employees to say continued thank behalf I'd many appreciation the of faced acknowledge India. management pandemic our entire to you. in I conditions ongoing like express due globe and by challenges and team, So the across the our would especially to colleagues

level back Now their reached over highest quarter. turning the decade. in Issuance volumes to a first

asset really by the While increasing with all bond were respectively. active, and and leveraged sectors all loans leveraged classes busiest was issuance finance of XX% high-yield XX%,

this one refinancing existing leveraged type experience M&A other, amount this loans supported activity fixed as of tighter issuance opportunities bonds improving and a of type as of floating spreads. and as to typically, advantage Issuers refinanced their securitizations high-yield the unusual rebounded both additionally, tend CLO And quiet quarter. outlook. market well issuers rate take both But from depending in quarter. their over attractive debt on Now growth to same for it's favor to the XXXX

Now increase before. the often created overall expectations cost graph informs keeping issuance. views the our default We're That a asked despite in a improving under of strength borrowing the the tighter year what an rate In environment the at positive by outlook rates, shown longer-term And X%. and to M&A-driven speculative-grade quarter benchmark attractive backdrop. early for led refinancing economic issuance. defaults. X% stemmed global an from improved leveraged primarily was opportunistic approximately And the these issuance was of an first January, we've default slide to expected just spreads in to this April, for due low corporate the finance to and more this to on And had X%. and outlook end about in lower of credit this version

I best GDP you is over in showed longer the it the XXXX term. Investor In historically, fact, think issuance data as of And indicators I see, Day. shows of the predictive one that our can

going tracks GDP correlation growth over forward. in issuance true While is that not hold this this expect a we relationship may one time, there year, and to remain any clear

healthy term. investment intuitive and for capital promote over economies backdrop growth business as also Now that sense a provides and the positive our business makes medium

XXXX's overall will still expect most albeit to decline, pandemic-related the to modestly X-year is it from Focusing we prior average. face in issuance the toughest the grew and on comparable. XXXX still which be above expected surge, issuance, Investment-grade XXXX,

segments expanding debt of by call. class GDP in Mark in provide details sensitive show structured with market issuance further finance to later our corresponding expected some most leveraged However, forecast and asset on the the like will loans to economy, strength. And improvements are the

ratings robust with strong research to in double-digit demand growing low to KYC driving and feeds, moving Credit mid-XX% organic Now growth insurance data MA. growth, data feeds catalyst coupled multiple and delivered by and rates. continued for and solutions. We're products asset across is line management. solutions. our we're in grow compliance by compliance retention our with And chain expectations, and that's continuing and led supply driven

ESG Starting for a offerings, approximately with in XX,XXX from our first meeting speak few the benefiting recent and to and buy our we're We're and across of suite that to enhanced XX call, launched the integrating public ESG of theme provides all XXXX. modernizing evolving part quarter, companies. In to with discussed expanding side, we're how that addition the In I as business. with innovating IFRS our that solutions a aspects the RiskFirst fourth quarter highlight credit the we I scores the tool customers' earnings climate. obtained our keeping needs. acquisition collaborating we footprint In of on examples want that climate-adjusted

statements. ESG that sovereign on ESG enhancing Euronext, earnings that In into that's batch our Awards. scores our we've intelligence on helped make index. and machine tool ESG awards, universe. products with it's to spreading used includes spent our powered time language launch the On analysts ESG and their are the prior at first MIS, addition, launch globe. a banks building including rating. calls, the And of now by example credit our both partnership One natural of This Technology It's XXXX Initiative AI the artificial around we're learning discussed multiple our and automated identifies processing of reduce scores the won faster. proprietary how rated the financial analysis and of better best tools, tool of is In Financial QUIQspread. our ESG them impact And integrating data XX has and CAC and impact score entire cost spreading cover now Technology substantially our credit the American our scores financial factors with customers

scoring Another and area where sentiment we're using innovative capabilities. technology is analysis

We're Our base. monitoring delivering indicators media the thousands customers analyze this use outlets, case noise. new to across in interest increased with customer sentiment we're tell tools early help our from across us they stories our seeing understand signal the to that of and warning need filter

in space, a enhanced our of acquisition touch has Our further on more efforts and this we'll Acquire that in Media moment.

deliver innovating to and we're our infrastructure modernizing greater customers, efficiency own addition agility. technology In operational our for to

Red Just for proud last the we recognized to be source were Hat rating in that week, we the agency. Innovation agile implemented mention an process and Awards the platform within with open honorable

capabilities Now integrating to turning enhance some we acquisitions. the our to that making leveraging offerings. recent good and acquired We're our progress

companies CECL details and XXXX. opportunities help we've commercial I screening the support sheet data interpret the quarter into real liability our information implied to giving and ability their asset products. more individuals acquisition now has KYC sentiment provide improving the news financial commercial known to flagship lending on loan countless which well planning MA's Moody's this context few risks Financial's integrated better holistic turn Media already customers' customers our track departments. estate in launch on We're from as stories. as bring with decisions estate, over real an Acquire put for integrated our within and analytics treasury saving efforts further dramatically solutions solutions. For to to scores in tools example, process. monitoring pricing and summer. software That's to our tools results that as curated first in Media existing Orbis. capabilities with in understand generate and focus consider facts into and Moody's that, content we their integrated to and on way. a and investing capital moments I'll create hours we're a new ability catalysts real accounting the In We're and across And developing to are their risks improving and place ability balance as information specifically update management planning our Mark estate together And with outlook customers on private the make and that ago, database combined solutions, more solutions, pairing Acquire We've And Zion into one finally, and KYC multiple commercial world-class company accelerated to to professionals recent curated to call mentioned

Mark Kaye

is issuance also driven favorable you, prior contributed year The line Thank mix debt a while points M&A growth enabled basis with first accruals. and Rob. lower to cost public initiatives quarter, higher contrast and execution, in XXX in Finance structed refinancing spreads XX%, and was new investment-grade issuance noteworthy as achieved finance rated XX%. institutions issuance as reserves, elevated range. is issuers, results. to credit and both by expectations, activity. MIS XX% the business robust our coupled year-over-year opportunistically and In of by increase contributor, In by grew compared the growing growth by strong grew the Corporate refinancing XX% adjusted This XX% global the growth, these to This bad XX.X%. CLO Strong MIS leveraged operating benefited CMBS refinancing transactions. from finance grew revenue compared offset partially in drove led moderated infrastructure issuance. ongoing and In to in expanded Revenues revenue percent and activity activity largest strong by tighter project approximately primarily infrequent funding period. efficiency opportunistic financial XX% with sectors of compensation issuers. debt MIS' revenue single-digit finance, lines incentive margin despite

Moving to MA.

on revenue additional expanded in in organic retention credit quarter grew basis revenue, by shift restructuring or and on top increase XX% ERS onetime and X% remain customer led in decline growth organic XX% high. as the line adjusted organic mid-XX% operating growth. products rates or compliance we expected First margin recurring of revenue delivered origination as XX% a XX% an enabled solutions. growth X% RD&A organically to by basis or basis. strategic well loan Recurring an XX% And and insurance KYC solutions products. Strong continue execution rose our MA's revenue of growth XX.X%. leverage assessment revenue more our as as revenue subscription-based towards XXX quarter. points program in-flight offset the operating driven

EPS contributed diluted diluted grew call, mentioned adjusted in to almost Rob Moody's performance by in income As quarter. XX% $X.XX our in attributed primarily EPS the operating approximately $X.XX the $X.XX with by Growth earlier driven to adjusted to MIS. extraordinary

resolution interest, Additionally, the as the nonoperating tax activities, provided of well uncertain $X.XX including a positions release as of benefit. associated accrued

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

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

by predicted global is X% of decline high-yield X% a range the rate to to default to Finally, year-end.

from results could Our uncertainty, guidance rates, for for assumptions year outlook. quarter our remainder current forecast reflects of materially specifically exchange the differ the XXXX translation $X.XX of to at the $X.XX euro. end subject systems currency our pound of and rates the British for foreign These are and US for exchange

Following quarter year Moody's that provided we now high February single-digit as most compared our XXXX the to will for in percent metrics the raising We increase on first are full our range. guidance guidance performance, XX. anticipate revenue

strategically growth manage expectations cost in we range. As are the base, expense our mid-single-digit our percent for we maintaining

approximately outlook revenue Moody's and we operating XX%. margin improved adjusted be our ability, Given project expense to

rate the guidance ranges interest to reaffirm the $XX.XX raised XX% we and is to respectively. net XX%. dilutive We guidance effective $XX.XX adjusted $XX.XX $XXX projection to million EPS expense updated and and Our of tax in and million, diluted range $XXX our narrowed to $XX of to

of flow is billion, allocation anticipate and cash to billion billion, and year to available and $X.X free approximately between we expected forecast now $X.X cash, continue $X.X be repurchases Our decisions. subject other market full conditions share capital to ongoing

low global release. project of to we of Table list our decline our guidance, rated the from complete our guidance of single-digit to single-digit please issuance decline. up a For refer MIS, XX percent earnings Within full percent previous range, year in a high

been borrowing activity. Our we guidance has XX%, second for raised high-yield M&A by issuance leveraged persist as low and and to approximately bonds to leverage finance costs respectively, into and sustained quarter, flat and the robust up supported loans expect

by in majority second XX%, to very anticipate approximately active financial we calendar issuers earlier the issuance flat. year. we half supply approximately prior decrease supply as to is needs However, year fulfill forecast We in a to still be normalized from XXXX return the of more Full believe to institutions levels many expected year. the the will investment-grade fund of following

expected have new increase and of We XX%. improve which our finance U.S. infrastructure the expectations Depending the balance pass, contents it goal the The to supply the in for into will proposed assumptions CLO decline infrastructure project of year. not positively approximately loan could issuance, it the final regarding we our were if leverage legislation, anticipate factored impacts public creation. on

our XXX be result, mandates issuance we're first As to guidance the range XXXX surge with XXX. quarter, increase for finance In activity predict of new we the in in leverage of in finance a to will line XX%. structured the increasing

estimate to from performance. mid-single-digit range, We raising increase also now the to have outlook guidance updated percent guidance will XX%. of reflect MIS' MIS' flat. prior operating MIS' revenue adjusted in up stronger-than-anticipated our first We that quarter revenue approximately approximately We're margin

the products, for be rates, we the margin we guidance range, rates recent to year percentage reinforce For full expense our expect recent This quarter, retention foreign maintaining double-digit X mid-single-digit management. to and unfavorable would acceleration exchange and of this strong tempered guidance expansion discipline operating an additional point investments in over Since our I due points rose revenue, and are in increase period. provide from percentage growth, acquisitions. to year XXXX. continues like in the we customer approximately impact clarity XXXX a insight by X% of approach in X% our first movements regarding MA's XX% acquisitions maintaining range. MA demand approximately to forecast are Ongoing to operating exchange prior attributed expense subscription-based percent our the margin to low underlying to operating Of percent expenses as partly our the In foreign is X% reported tailwind rates. in leverage. favorable at currency adjusted strategic expense remains an were stable

As by in occur business. cost are of our self-fund of will able majority year, million $XX into these reinvest the strategic noted to in on generating The strategic last half call, back priorities efficiencies quarter's earnings and we XXXX. second this upwards of the investments

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

both First, successfully objectives against strategic our of meaningful the results issuance, and we quarter, backdrop segments. robust executed delivering operating this across business

Second, to our into customers' of products new solutions and we features focused meet innovation and evolving acutely on integration our needs. are

to over are opportunities ongoing operating full in and our through Third, And as both we pleased year the And Rob. key me that, revise with outlook efficiency our XXXX to enable us margins. to are create further let operating our we maintaining drive growth. priorities initiatives, leverage call and strategic for cost expand upward expense discipline which reinvest back finally, we turn

Rob Fauber

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

Operator

first Stanley. Toni [Operator comes with Kaplan question from Our Morgan Instructions]

Toni Kaplan

much. Thanks so

driven is than a I quarter But at in I than in when And XQ. given MIS. have expected, higher the just came expecting, by comp know raise little what the I the strongest what would for was a the quarter bit to full year, lower I I guide we're lot look going guess quarter. the First

Thanks. behind are ahead So were, to be being I positives of are year or than just strong for for GDP, waiting are that cetera. you have rest with lower -- the know conservative we the you, you because or just expectations they lot now us of are et your a of you just

Mark Kaye

than full of range, guidance the have we the guidance I'd call the settlement driver performance that's like X% expected see the of in back of gave factors tailwinds percentage is higher views some outstanding expected, the separately. non-operating our issuance We our all that matter, increase the $XX.XX little Toni, the X% the a and February. of and We're happy of certainly to more actual small and around than it midpoint primary MIS. outlook And of go for outlook favorable at there and increased FX. points. from The X approximately EPS XXXX that's bit around EPS year operating the on we to of around tax adjusted part the by offset is strong a which reflection really in into

Toni Kaplan

Great. were the MIS margins my by just insignificant amount. I Okay. not ever, believe, and as an follow-up, And highest

in the guiding the segment You're XX% year. to for

XX down after getting level time hard the a in having XQ. to So and that

help the year. into for just drivers of So margin rest drill maybe the the us the Thanks. lower down of

Mark Kaye

full and issuance that's which means, to to approximately for bit put year-to-go the issuance. that, somewhere the drivers XX% in then margin be MIS expectation on. MIS could year happy be in And the low you XX.X% very low I margin again, that of the is for those the down as our that the And primarily pattern. ago in sorted we some double by look And our of your go tough for by on we're between year single-digits call if given a more year would to driven saw guide the pull average are year. and the the quarter, And in comparables turn, digits, activity, to little to in into would XX% context go detail guiding, really first XX%. a of if you point, expect goes at forward that the of for drivers, period We full driven underlying compared

Operator

will We with question Kevin take McVeigh next Suisse. Credit our from

Kevin McVeigh

wonder little M&A. the some change Obviously, a commercial Great. enterprise. you entire much congratulations. opportunities, reinvestment give obviously, the within if Thanks and to I and into the so the Difficulty] versus that been just [Technical context commercial the estate balance the could there's real margin back opportunity us specifically reinvestment and insurance business, on the and base insurance

Rob Fauber

bunch. Thanks is Yes. a Kevin, this Yes. Rob.

So have on call. you to good the

about in Let me each here. turn talk

we're So range of institution they're It's really integration let's start in better for decisions, and with asset customers class a is especially all commercial make them the financial and customers. given And real kind what our insights of the market. major give that to estate. just turbulence investor data analytics of and from looking a hearing for underlying wide better the

further integrate few data given REIS importance some we we years And and for those lending and we're our data that a investing into we're capabilities decision-making, and acquired Catalyst, with back anticipated. bit we give build that And Catalyst -- out than little is and by to market markets building of had data that faster then could the -- customers. So bought the even us both we way, a how out our in very to national us property we're pleased offerings our property-level coverage. new helped

we're our building they we together borrower and of prepared a got with it construction really that the commercial that along digitized offering. our portfolio in and industry. customer more call really as and remarks. tools tools lending automated and customers of our enhances products, and reduces that portfolio management solutions all in-house out our broader some and approach content points some management part So, of want CRE touched integration. that also put mortgage that and connected address more And in of called these the lending time on address we've CRE in these solutions really something what metrics, customer I pain that you suite, want experience. underwriting the construction want I they -- and And pain Like points forms said,

commercial receptivity on class development said, I progress we're from around product encouraged the say making getting We're a I'd it's them. estate, we're and our asset for So, Like big real investments. by some our early customers.

So, let and turn that our this And modeling, by really prior GGY financial to is our business. an on a called actuarial compliance. me very for company IFRS in hedging seeing to and nice enhanced it driver that's insurance in insurance core just we've help our and this few growth our reserving, calls, of of few solutions with from for moment, our software XX ago, a The some used area we're management, of out this on. around acquisition insurers gave seeking ranging asset pricing, solution years a us so it everything called insurers liability capabilities widely them because

out runway suite at to the companies. over risk credit, runway been real really we've further is ESG, for core us give That offerings and the of of And our greater insurance regulatory insurance these some offering part And processes risk us to future it's our are ALM, in reporting, that assessment customers growth. give like and deliver capabilities value us commercial like and to our includes all estate, companies. even years, climate of areas opportunities build analytics. view business kind our able So, insurance to

of good we both So, those about opportunities. feel

Kevin McVeigh

maybe the are within help just about well the that, will a to just on more, the the Super consolidation M&A little thoughts there's ton in been you And in MA, talk the across opportunity. context How space. of the thinking capital. maybe a of couple Rob. of helpful, any about acquisitions a sector, across as Obviously, in sector, it's of that some whether within activities just

Rob Fauber

and about I can't looking advance Sure. thinking some appreciate, on our or about. I'm assets that strategy insight to generally acquisitions risk as we we you sure but going assessment you M&A. And divestitures, into think for can really a how I on give potential that we're of comment are can lot talk capabilities we're

right, customers' our around range think a So, about changing, needs risk. wider of are

on them our analytics are on So, credit, more. to wider asking we've Historically, risk. for again helping with that focused customers really critical we're are focused been a workflows us data and and high-value and range customer help very with of

businesses. to climate. been broadly, pretty building, private where company scaled going to demand That crime, real data. lot includes and say in company talked Commercial KYC, a the I about clear and for we've and So, data, data even I'm more we're financial areas about course, private investing of ESG analytics, just and trying get we're of estate

I ties how that's really just how think so And because I distribution content think about how kind acquisitions. I maybe about we of a think and for moment all about and think it into

for wider up-tiering – customers helping our customer content a using of institutions. of And may of a ERS You a about it's platform in we've kind companies needs. huge risk us for are we call great a base insurance increasingly, our it's range heard to financial said, a you got as with about chassis, right, have talk SaaS our past the that and solutions. distribution think I just And thinking our it, about our relationships banks if business and as what platform

So there's the build space. that some on both further our to and installed And banks in growth inorganically insurance out opportunities building offering that's to continue and just increasingly, base customer all and really comprehensive and organically companies. for

a that hopefully, gives So – that sense. you

Operator

We will next with Sokel Judah question from our JPMorgan. take

Judah Sokel

questions. taking Hi. my you Thank for

at another hoping Toni's I question, stab question. first to my take For was

guidance were of did about how you when four just look you compare thinking quarters the the how rest in the to you two gave to two year at your first following As quarter, February? to four quarters outlook for

Rob Fauber

with but quarter Maybe year. an Yes, given I'll a me foundational Judah, Obviously, kind issuance of onion the piece important first peel the of our But let here. bit strength it's the we've of raised back global that’s with the XX%. outlook of the issuance up issuance Rob. terms rest start little in

issuance. XX% sub-sovereign saw – was So biggest QX classes sequentially, her the that were question almost surge in infrastructure, up and investment Toni was huge think year-over-year, that's And when far grade I those XQ XXXX, XXXX that investment-grade not but in three asset contributor. we by acknowledged of

mentioned going So we think pattern. XX%, about of in ZIP see – the experience sawtooth is to bit with used was do that thinking. down the a slower somewhere kind up QX this up our QX third slower inevitably this to same is generally that we're this We've going be very where think slightly Mark quarter. talk sawtooth pattern we little to code summer. we a past, We QX in issuance tough off comp,

expect for we for quarter then decline of was going and the issuance implies a modest year. the year fourth QX quarter. that be this of the issuance second a off quarter last So what last that half modestly remember to the down second half of the in third do in in quarter is record growth And of also off

Mark Kaye

at if down decline And QX high translate for to QX in and outlook MIS spoke QX year-over-year a mid-single-digit were and then about approximately the that level then the being think flat issuance could – I to perspective, Rob range you an being on revenue revenue.

Judah Sokel

year appreciated. bit and just follow-up, a something cadence you pace give MA helpful. as you. that as far goes? far be ability of perspective any us Thank I would little That of the similar in was as go visibility. guess, Thank really That terms a through Maybe, to or as do for margins also as

Mark Kaye

then and little way I'll with to you. MCO I'll thank MA. work a my through Judah, bit start

a As XX.X%. basis, for the was that quarter XX-month would trailing to margin On MCO's equate adjusted operating XX.X%. – sorry,

think the I And guidance really buckets. so about that year, primary could about if think to approximately XX% given X that the for we've attributing you

to range the remain benefit at margin second we just restructuring second of back MA expense as by that's well. QX at comp reported incentive operating in lower, and the future an acquisitions those around the in ESG, really The around finally XXXX. in our KYC like MCO will offset of margin revenue is positive And around higher a ramp to year new the space. were importantly, travel expansion end I that expense overall interactions opportunities our into back announced of that's by look also creates into is I'd around very accrual of the I've strategic was accelerate of MA I then for at of led into slightly to which expectation addition full invest etcetera. level. we offset related And the as first the in part margin are the of our expenses points MA, our that. things lower XXX of the And with investments of say the expenses by investments scalable a sort growth, XXXX customers resets, our reinvest XXX revenue for that of strong guidance. strategic most numbers the the primarily leverage, of management taking XX% in time up the opportunity growth. we in in CRE, offset business that certainly KYC, and probably few And and and those those bad creation we further that CRE want around entertainment year make back with If the half in business. to priorities basis line bps debt put as key several around, our expect and being of this of investments, just XX% XX

expansion about MA by bps, around a categories, underlying offset XXX think of then could around XXX and margin of maybe acquisitions on year of You basis X investments strategic full bps. around MA, both large bps it in XXX for

Operator

Atlantic question our Clinch next from Simon with Equities. take We will

Simon Clinch

acquisition appreciate, a into growth you quarter. Hi, could we I Dijk van from as the down well bit of MA's sort I little saw of – wondering as from dig organic that's KYC if complex, the if break was we the was wondering drivers Bureau acquisitions of the this you growth. you could and my taking question. of had breakdown that sort just what other key

Rob Fauber

that. Yes, to a and got and do there's Obviously, we've growth Simon, that. good drivers of very steady happy few in some different MA,

and of uncertainty. and There's for and just rates reflects importance you've and the that, these got continued data content very high when data research those the I think, real of for kinds stress some feeds. market data. feeds demand credit First, research the And ratings retention

supply insurance we're seeing also for focus well also precision customer like then three reputational KYC as Mark And finance. on SaaS data really You across of our automation demand the across risk, that their both prepared chains. chain and corporate growth, supply There's some compliance. touched products, customer on them customer using all our better regulatory the said, and recently of ERS as resiliency all those and revenue remarks. and it greater I suppliers. includes risk tools to for of customers, We help who now and things And but major risk origination, recurring you've a both areas base, profile the assessment understanding credit only to their Orbis kinds Strong not vetting. in ERS, and US got this had XX% and heightened assess like touched on but actually and subscribed

think to we've got we've product these areas. continue active and So got an pipeline, I going we're also -- opportunities development in and have to

Simon Clinch

Okay. Thanks.

your that And pace this of Is the business is of in at so that hear KYC point? right? portion growing did kind mid-XXs that I

Rob Fauber

right, exactly talked that with on line in expectations we call. prior the That's our about

Simon Clinch

terms this Okay. on Chinese to now to able wondering at just up. status an to particularly All your follow and market And actually allowed right seeing in do us is what of be and you what the just China update give strategy in and Thanks. that of current Would point? right. CCXI you're

Rob Fauber

Yes.

the you position rating rating license a be in cross-border the So over. think have leading domestic continuing very CCXI agency the to we're And in at also as CCXI China. strong markets. continues is I know, to And suspension

of the then And our in made help through investments we CCXI, market we talked cross-border past. little positioned opportunities both. us the market there feel to some One China, about like we've bit in with the are some that China I emerging that more well a see, about Shentel. same there several its area We've working I'd very positioning. in a with green position opportunity finance. real opportunity we're think so we our we evolution ago, we market a to continue As like years said, we're years that MIS, through in small the to our investment but strategy domestic finance. in in employed specifically, Shentel China sustainable say, finance And CCXI in is of an and company around and around that with and help sustainable ago kind investment in as made Think the we called ESG, address

We technology both as around investment sophisticated called well unstructured data MioTech, also as company some KYC. uses very ESG to made which in an capture a

-- areas again, two us. So focus for that

business looking we're the we at I'd as how core say, the -- beyond business to the ratings So just can well address our start in MA. core market what as

Operator

from comes Alex question UBS. next with Your Kramm

Alex Kramm

asked times the Hello, couple questions. couple Apologies coming MIS outlook, those in was of for a answered topics you don't everyone. of think I but Yes. same to back advance that a on directly

top would thinking obviously forecast, a the So XQ, XQ, the give more But the about so, the change XQ if look from the everything maybe but appear the in what obviously year, economic the anything year, you the unchanged. about a of in remainder and lot the down and does with outlook the of gave of sense. else a you be, changed just questions if quarterly a on improving. ago for make and a it got terms you don't how again right? has conservative. or I And can like Obviously, the if bit explicitly comments couple MIS for if and you said thinking little seasonality Because of a at know typical year seasonal why, outlook backdrop does question changed given you it of say, it's line, beginning you're perspective, from a just you

addressed you've think a Thanks. horse, dead to beat sorry So it. but I explicitly don't

Rob Fauber

true pull-forward guess upside here. the have problem. the might this, tick in I the that let first what of Alex, gets Look, you're to at here. maybe honest I to about a right. quarter at would also into are where and get about lot issuance. us around thinking I than as be downside up Alex, out me headed year the that consideration think and year. was, it's And anticipate we guess, benchmark the and -- saw, some probably talk factored just phrase puts I moment. -- takes. surge of issuance the think that question because potential times, do outlook, seeing more But, puts the of in part used and A of also takes second this given I we're right there keeping say that a half for you're the we our I what you And All and we of rates No first

think, to So some that, upside there means the I contribute could are factors that outlook. some to

being continues this contributes said, been to some that year standpoint, I makes quarter, grade. issuance, the up think really pull-forward. we some driven of about with we've if leveraged tough in because issuance strength finance is comparable second top the quarter a investment on second provide to the talked key of from yeah, that could really of quarter I through upside. to about think markets So of trying watch quarter quarter, a especially But one then it liquidity the positive Like and the and from revenue XXXX second a surge the last mix from

from pull-forward see spreads. -- on what even rates could with You and happens depending

see pull-forward year. what U.S. of potentially half boost of recovery could the what the depending issuance next issuance growth economic that of upside. You ultimately, provide but And see, Faster Mark infrastructure, could municipal infrastructure year. bill it, to the on touched we in some might from really around and back then -- a and outside provide of kind kind on

up of of, a downside, of we've wave and third the ends that kind the escalation got On watch mix markets. to global impacting infections any,

minds. what's So our really that's on

Alex Kramm

Very fair. then And Thank that. one. quick just just maybe for you for a and as Mark

comp higher, so easy I side, but a incentives year, a I surprise. not there was very think the last mentioned you On expense think

incentive continues So it incentive comp was the the we the quarter, you what the it incentive maybe yet, again, But for the just to importantly, a had thinking, you if mentioned how but think such year? for expect. strong you comp as year? little of Because year play bit my remainder comp on if out like then all does look probably haven't do by about most a you under-accrued first

Mark Kaye

morning. full the Alex, XX% we're expected first accrual good incentive payout, the thanks year the simplistically that we comp quarter. follow The very question, and incentive because comp of for is roughly process in primarily

a the quarters, million you accrued looking the one-quarter than full at And for expect to between in is what we outlook. around for would see to to – which full revenue quarter expected in we three That's due or per year year and had of we In higher really $XX $XX roughly looking quarter provided forward incentive first the amount. margin million improved comp. million $XX million. we're $XX next range slightly itself, expect the So and a February,

So, certainly, we in are incurring first appropriately the quarter.

Alex Kramm

right. All

Now, that Thank you. it up. clears

Operator

next George our take will question from Tong Goldman we with And Sachs.

George Tong

prefunding what the year? in improvement the could of of refinancing balance for pull was, and in on morning. upside sheet the fact, Hi thanks. macro Can the remainder on say, I forward, follow earlier how implications wanted the compared activity issuance. pull-forward reflective the surprise you up the over an to, or to various of debt categories Good issuance much guide across be question versus discuss

Mark Kaye

uptick context me the this maybe quarter tight of rates although hearing cetera. over a line that that our bank's with forecast provide The start investment-grade was of below bit decline the themselves. driven by to that's start that issuance in discussed, that some from what that additional et banks course thought we're Rob their rates little in just forward take advantage terms did pulled little by plans highlight the XXXX I especially saw year that I let favorable much quarter, funding issuance interim outlook prior that still first borrowers period, mid-quarter likely banks bit to or we of around from the line very XX% US a banks heard spread, that year-to-date business. expected robust. activity about year If the noted help near already also their was M&A with was the for very opportunistically so US the think we've the because they issuance and sharing The that made the in factors to George, of comments they mean the historically here overall earlier. I activity investment-grade, they in that will of

low start surpassed leverage US categories impressive year drove issuance. default has rates and period. for significantly the spec-grade spreads, both for side, to The the tight those year year-to-date loan volume prior bond certainly On the the high-yield of

relatively many saw outlook year-to-date expect issuers buyout down on to market for. right. focus period, end looking cetera again, the be to in that could then bank range. to are percent US, and equity finally, rate issuance of spec private you're the the And provides remain of advantage the but the take looking later forecast the here that the some year. in year, volume in issue backdrop, issuers US reverse quarter. in of the as that in the euro of first consideration the throughout have On so cash And spec-grade. as market into light factors, speculative-grade view completed there the to from the low et first favorable with early And quarter. a the quarter that the investment-grade, supply their refinancing rates, taken was we're that in here expect year, needs outlook the is and a strong your they positive. low also mid-teens that support here for hearing M&A to consideration lot Again, the banks issuers point, pickup a issuance in banks by ante was refinancing in as did thing spec We surpass rate additional slow, to east our year balances XXXX, enter similar activity And the did more color European perception driven their we've activity of investment-grade I side, then and the in sort European prior hope as

George Tong

perhaps stronger. bit a this just Yes. also follow-up drive the bit issuance Well, earlier. and Interest are certainly, just higher, And is little helpful. about activity? takes around moving factors puts but a influence and very getting will and rates the more you on environment talk you that’s macro a Can little touched how these

Rob Fauber

is George, Yes, this Rob.

that we business activity. that and the is this investment. prepared about medium on view general and the what growth driver economic our for long-term, is in over on about remarks. the business our really It's It's provides M&A think It's strongest I touched right?

anticipated a growth increases year. of are we they're a economic obviously, and – As rates, factor. think last accompanied certainly really think the rates I They the were rate and it's by pace whether are the market. whether increases by it's But about factor the rate

what, a taper the was was from we if an you the back growth, to perspective. a that saw tantrum increase of as transparent think extent think and is pullback rapid will kind issuance where Fed we the in very market So back ultimately rates, as that surprised in, be to this in the real this, able strong we see manageable economic But be issuance. about to that XXXX,

George Tong

Thank you. helpful. Very

Operator

question Our comes with from Craig next Huber Huber Research Partners.

Craig Huber

outlook. strong a Great. Thank your to very to year you. start the in Obviously, MIS. on I wanted talk cost

did is talk could going And a that employee you putting be raise acquisitions hear of follow-up. there conjunction relatively about and base, the nuance And for You year for mid-single-digits, from mid-single were guys digits, outlook sort stuff? that the obviously expectation you underlying year, I in going higher mid that, stable expense curious your I'll maybe low of as end a or not to the your be this with have towards to single-digit year the aside of end that.

Mark Kaye

morning. Craig, good

leverage to for investment and pleased our management that and highlight actions disciplined very capacity our maintain are We create to expense operating business. continue

enhance on support initiatives Now reinvested getting to getting our cost efficiency XXXX. CRE, or side, to bit ESG, down want relating self-fund X%, If infrastructure expense million but picture $XX X% reinvested the we've to investments, efficiency underlying to the little also to et complete strategic invest to cetera, technology see in that X.X% we those managing a KYC, automation, growth. were is we I spoken are our initiatives. to over X.X%, going innovation about strategic to expenses by you actively key and or enable the the in And

headwind FX really and operating We've two around that of that between we well the two the implies then You've of that's in controlled got that to of percentage around message wanted X.X outlook. an And think percentage incentive growth And point. expenses is points. M&A deliver. to stock net and somewhere key is I got what the X.X% compensation X% relatively

provide look I I if down, organic looking think certainly, dramatically XXXX move are we've relatively again around as really our or snapshot we at focused that been to and period. XX,XXX employees. this headcount, XXXX, on the the up year, We we at to the On on that March between skill employees and more March make support if over sure an anticipate that the set year-over-year can basis, over necessarily don't enhancements are stable

Craig Huber

you've about bolting a then today. your little please? And bit ESG of annualized talked run revenues, rate What also, the on ESG is

Mark Kaye

product. MA revenues in ESG and million around additional generate We are risk incorporating our million expecting and activities XXXX stand-alone for $X $XX $XX into ESG to in an MIS from to million analysis the additional through

Craig Huber

ramp cost that, this versus first you're quarter This The please? fourth first expecting question. quarter, how think about my year should the we

Mark Kaye

in $XX million We – to the of was and have the ramp $XX from are of in of the quarter the the February raised also range be half call, second for that achieved that we million. spending $XX wider shift on that the resumption we to up first little And between would and euro the bit like we primarily we've the The fourth mentioned expense the $XX a would first of that a – result to progresses. year. be entertainment and for to a and million the around savings the quarter initiatives, the raise uncertainty in as million additional travel to slightly timing captures strategic expenses expectation for

Craig Huber

you. Thank Great.

Operator

Owen with comes from Oppenheimer. question Lau next The

Owen Lau

questions. thank Good afternoon. taking you my And for

pressure to co-fee I And I starts the on then moderate time, up XX% expect year, the the you maybe this more expense more later lose or because the flexibility true sales. you the you quarter, target, So at I you would to go comp if am of quarter back the first I'm may have comp. office to have accrue whether base revenue. revenue the this want accelerate trying to at accrue some change understand, given just the wondering, strong have that accrue investment may the flexibility in less in may to reopen you first later investments. comp your and to incentive do to year? that given same incentive mean,

Mark Kaye

question. Owen, for thank the you

accrued do the from volatility incentive that have provided in you're the we what outlook quarter. for So that's accounting our for you and to time-based is as If provided may That a this compensation, applicable year prior necessarily accrual the out for factors we amount in would differently as the with as particular means quarters, result standards. followed only true-up that. slightly the for alignment progresses. incentive very your outlook, in drive and the that see much our that's a not certainly variation SEC really the year accrual is we've not that but quarter, could what process. typically morning, And accrual year you really progresses, year a comp many also adjusting in the each holds, percentage turn Obviously, incentive could and comp

Owen Lau

And Rob, Moody's? it. one on think quick on and you. give QUIQspread. you us very touched the more on maybe Thank QuantCube AI also in I AI. then Got initiatives Can helpful. That's overall color just you a a

Rob Fauber

Sure, Owen.

scientists learning, machine We've we've around going we've in got language language on imagine, natural So the and data on natural all MIS. MA as general, innovation AI, you'd in generation business. going got – and engineers across processing, got

of just new there. innovation head MIS coordinate in we fact, to efforts hired In a our

something that great banks, called with our of identified learning to And AI example QUIQspread we all out able enormous spreading we firm something – are was needs. the statements right, actually of as a huge and a an – many we've got can statements. result at our accelerator, of this have actually understanding So deploy employees of came train pain financial of who is manually of point an And machine this to a here that trove just something help our you're were technology that of models. financial those customers

product we how deploying that's we're actually our as develop and so selling customers. QUIQspread, that banking a And and that now to

over all got the we've this on So going initiatives like firm.

Another language for infrequent are our writing say good is leveraging natural using of boilerplate how issuers actually language what some is of generation example reports I'd we natural generation.

able QuantCube, data we're And them, customers doing transparency a on really it can to for the we're all in some agency, of they've with to rating models. into Regards some interesting as integrate So sorts literally that because of our turned to valuable expert in that And and research being provides our more use databases insight. writing things out that augment alternative to got reports from then mostly with range series. and wider be that's where able you imagine. collaborating predictive and of credits,

So, QuantCube where ship the any knows instance, every planet given on at for is time.

that of our commerce. data that track quite -- activity and using kind QuantCube. actually So actually research traditional And indicators they economic from in subscribers. published to indicators, popular the addition can of, flows around of leading then been to, we've we're able with research have It's

Owen Lau

That’s great. you much. very Thank

Operator

comes Your Manav with next from question Patnaik Barclays.

Manav Patnaik

and Rob, comments that distribution. about talked I you. follow-up to around you and you scale? more already the scale EFRs, looking in for call the or have And just just wanted at that, referred distribution you'll wanted to the clarify, early I on M&A, your be Thank you to but like is -- distribution

Rob Fauber

call. most don't which most I for about help that risk, Yes, Good of the customers decisions on cases, producing, to are as content all you just part think folks, Manav, afternoon. but think good to the for the that's I make distribution. if is guess, think that we first part. around of intuitive and I point I'd think in out have right, of you all, ERS always the not really we that to

You've our got, critical banks we've who Software-as-a-Service and solutions institutions got customers thousands using workflows. of are financial literally in

imagine can you conversation. so the And

In what on we calls. the distribution have us with. financial are more with down unmet fact, financial a mind, and I to I your change around to us, of and part do insights these as understand able you talk number are needs very sit as relating and you institutions these that what as risks be -- customer ESG are this our about climate of what's deliver -- And we're are physical better commercial for obviously, to start able to better ERS efficiently to I to we're how credit, and solutions to and analytics hear, well, platform, our coming this customers can the got channels profile us good to data We've stress right? customers. helping sustainability institution We've to not customer understand figure profile And only, you're base. assessment, then we've it's to of risk business who more we got doing requirements onboard got testing with but so out the our of part lending activities, and

that's thousands -- kind how But really the and it's the it the shortchanging because used the platform just So a describe integration software, being is I distribution it's data that's banks. of technology, why the that at analytics. about of to as, tend it of a I it -- in way, calling

So of those a relationships. in natural it's for us up-tiering terms

Manav Patnaik

of you there active my you question it. to Got out ERS, would were the scale there need, is have you so have the you side, guess, in like what was, on I referring or that the But guess, are M&A? more that distribution you terms That's assets to get at helpful. do that, if I fact

Rob Fauber

What was referring was we enhance with -- at look going for think -- what so I that, really Yeah. insurance to, Manav. the was And to ways I was business. continue I customers that's we referring was where nice but offerings I a to and around big our really ERS, ERS to what obviously banking have I

Manav Patnaik

then And quick fine. one That's one. just Okay.

can talks there just your an they're downturn is do everyone anything have invest a if you guys things and a been guys already playbook like have things like was margin always that curious good I playbook, But but You at great and about managing expenses looking lot in. good. And upturn seem better. of like guys you seems

the are how like is curious you do costs about or you would right that, when it the just now? think just expenses manage I'm and So you

Rob Fauber

it's thinking there's Yeah. And, you're data it's where ratings, that but I research, some of we're it's focus that markets. here, at quarter-to-quarter, fact growth data high Manav, from rates ERS. it's and business. picture obviously, big areas the sitting, various and lot margin a so growth company KYC, the very know across feeds, in serving our from we're with looking the seeing It's on we're

we embedded have leading scale In want are to to we markets growth that mean end some us, very, high-growth because will there. is -- that think, we workflows. to build talked are rates, businesses very you are about that a And these time. lot, they're think we so for the going want about positions. structural for cases, building what very if And the markets. leading very products critical these cases, And continue These we we've drivers our right, in rates. investing strong, customer in retention in other doing retention be some is end some There into positions high sticky in risk to

of And those to we these than that so cowing right, doing want investing end investing What you're growth the sure markets very to combine products, is growth. if businesses. markets, in cash make high-growth want to with capture the sticky be you that, rather right, you

I our make I ever even to any -- in say see is before. think we've before. or got our those and wider you're positioned opportunities, And we than than to we're going investing would a the as I are with one see customers we're serve ever of think So really risks of range customers medium last thing going better given think investments I us you're And for -- long-term. to quarter year, because the dealing

to want investments. we So make making sure we're those

Mark Kaye

around expenses And Manav. first to in around X.X% strategic you numbers of just the two increase quarter, the the of quarter. probably saw investments In that, quick put a in

be to between investments we X% X.X%. expect and year, full the strategic For

over couple of quarters. So you will the acceleration see that next

Manav Patnaik

it. helpful. it. much. That’s you Got That’s Thank very

Operator

We Rosenbaum will with from next our Shlomo take question Stifel.

Shlomo Rosenbaum

And specifics an units had forward of around does is of doing that? is some that that going ability possible How that if just understood either just a that investments. you you on in Can margin part would accelerating quarter? Maybe investments to some way detail outlook. your to you year little for of bit taking you're because be the Hi, thank more accelerate And my questions. to for higher us another going is could more I the drive top to the of blowout you you investments of future be guys implications line business could there accelerated for frankly, there's as be that those meaningful growth that meaningful impact -- provide goes the years? a this give work?

Rob Fauber

other our investing we're a continuing those China is been Mark going areas real and to that I a on. of so, out Yeah. and we're to me a investment lesser you don't may add And that in and next talked areas data that Modernizing products to talked the focused I surprise development. got across KYC, to extent, in focus the MIS got hoping give and more platform about ESG the there. in this product in. analytics, This to is areas past. developing little quarter particular in we've and We've kind in want bird's that then and eye view technology, efficient. big concentrating Rob. maybe around a really or development we've commercial maybe let you, about become just more that, of content we've estate, start lending and primary I'll general, think first, But investment. But and climate, on given some of the roll product of And

growth looking assure at so investment. accelerate that, could have we that very are formed And investing board fact, we're disciplined progress at. you and point, of a ways investment. the we that how to internally, to that I really approach that looking something And is to In and your are we there concentrated can that a

Mark Kaye

of on just investment And I maybe those could, on Shlomo, if deep areas, a ESG. specifically dive one

growth And we're and integrating into Specifically, assessment ESG impact. very workflows. drive that's risk going to help to focused us our on

three you examples here. give me Let

they example space, on-demand for properties could want looking are screen be capabilities first sustainability to those estate considerations really into customers commercial scoring in screening. The integrated real And globally. the our where their

forward-looking of hazards. a floods, other risk climate solution assessments to property provides that provided wildfires and hurricanes, exposure So we

around meet integration alongside insurance well testing, The spoke science I be scenario their then, other them the new data with ours. want platform requirements just on work data is about regulatory our banks deep ESG and our using second And modeling, data on and going could enable in to integrated DataHub example co-mingle in-house into a of give to companies. And globe. own that's to dive, And sets. the example data you made to third to specifically, customers stress want we've economic sort data able space finally, They that as their advanced as climate customers access the allows and to help to a they with that that across integrate and with those our want Rob that, data with data available their tools earlier.

Rob Fauber

Shlomo. thing, last one And Yeah.

that that around that Just it opportunity. of this cases, making more we in we're revenue greater These are, of to risks for customers, as but this concept enable useful our where going point very touching Mark concept place risk assessment. deliberate related, many in back is is integrated also to on cross-selling but point a it's we're this, investments, ESG, doing made, integration because that integrate

Shlomo Rosenbaum

ask breakdown of just And non-operating maybe there's see housekeeping maybe any a great. just million out. Okay, contribution type to stuff. acquisition of And I acquisition one, $XX wanted and a Number didn't could break kind then Thanks. from little next, bit some things. number Cortera stuff your I and of of the you income

Mark Kaye

M&A let second. start just a the me with Shlomo, Sure. for

$XXX generate around a have is around in if and our Financial, So, $XX think collectively. to combination ZM into there in of fully That Media, total Acquire or about M&A incorporated would I guidance expected revenue was Cortera million-ish XXXX, generated Catalyst, spend which million. we

and MA that's cents four of to of our around earlier, release, in incorporated that's outlook. income and $X.XX-ish course, quick spoke probably to expenses, press If that points. been those I'm impact slide around margin And And the impact into negative. adjusted just those maybe XXX of did to and question non-operating an acquisitions second basis a those expense non-operating in $X.XX-ish on going You've got been EPS your have negative table. by is about I refer the negative. table incorporated sort from the collectively we And then have five to course,

compared at was to Across I the matters first don't tax-related this FX of highlight primarily in but accruals, the the to driven quarter. at material which the same of line, that's the positions time FX resolution that's extent dollar tax there, really and of XXXX, UTPs, currency reversal outstanding number with by expect loss in a the appreciation. this statute driven the I uncertain tax small items future look the periods. by which material of and exploration reoccur those loss gain quarter. associated gain we are to the just really Just or quarter interest peers, the a of that's benefits want the large limitations that to

rebalancing hedging year the line with were our very You time program. recall expectations much FX last that results this I occurred. And from in and think

a from our investments small we income On various affiliates and the non-consolidated positions assessment table, minority really affiliates. that's of in quarterly a of investment. see had You regular in from basis, non-consolidated in a write-up that

this are line. non-operating the the on quarter, of deferred And to then other of that immaterial strong minority so investments normally actually combination more a equity is the some this ago quarter. same color immaterial sense a had we market This write-down because we used our full gains movement, expense a aggregate various individually the year items, in of hedge investment quarter, had of and line non-operating give This line program, that to are across compensation you captured finally,

Operator

We will go to our next question from Andrew Nicholas with William Blair.

Andrew Nicholas

for Hi my thank you question. taking

think Leverage First, is in limit. build. below you'd to continues consider I well terms of the balance sheet, what a cash comfortable

So, talking I maybe on allocation you keeping was what's capital balance hoping you aggressive about the share the repurchase some more front? could more time sheet, from being and specifically, spend

Mark Kaye

raised that of me We're to opportunities opportunistically and that back -- through the very flexibility cash is very business foremost, be Good financial using share for And have capital remains that to least we capital at we're we time to really lower the uncertainty upfront thank be again inorganically a on did and to return bit through and the heightened for is not And and allocation combination rates take with pause that we in much invest the of risk advantage dividends. obviously focused given disciplined capital make for risk that framework stresses extent know the that first very at market mid-XXXX, our and important time. Banks question. and buybacks. morning and today, Head intervene repurchases to support. will made aware early We going little to financial at clear start time, to into unchanged. just organically remaining, to to or Central residual that's economic most look, shareholders we're story we of and Maybe and at The metrics. then a prudent additional you the really of smaller.

low return year a quarter approximately the dividends comment of share we're And capital comfortable the think still and the pace of $XXX into to year. the million. the to appropriate of put should I $X the time plan into first end we mostly obviously made so in are stockholders certainly of to ago, entered plan would an was at minute and purchase I continue place XXbX-X that billion for also target we'll read in much occurred the to the the year, progresses. I balance by the acceleration now, used repu in that very see to due a quarter. of this purchasing to billion that not combination the we buybacks, second in continuing and project that to you $X.X shares. the And as of to return Between repurchases relatively we That share too assess

Andrew Nicholas

housekeeping you. And Thank just item. then Great. another

a cash free the looks guidance, expected cash at year. net at than income flow pace is slower this grow Looking to it like free

could Just that of Thank to of kind wondering relative kind your if pattern? to historical disconnect you. speak you

Mark Kaye

growth at forecasted working difference XXXX expected I items capital the free of net slight to of in the guidance years. really between quarters income X% non-cash and of midpoint say, and the range related the across and headwinds the is timing flow would cash of, XX% The

in net So I put XXXX. and flow this free than broadly income of faster in XXXX cash context, both grew actually

versus flow. Specifically in XX% XXXX, X% cash we XXXX, free we free growth in versus had cash flow. And XX% in in had growth XX%

And of sort a see variation across years. can that so you little bit

don't capital-light income a would net ramp to up period are really over considerably to necessarily business. we an extended and dynamic that that have free between happening. We cash change Investment flow anticipate and

to So nothing in that particular relationship. that in concerned I terms would your about draw attention I'm of that

Andrew Nicholas

Thanks it. again. Got

Operator

next question our BMO with take Silber will Markets. Jeff Capital We from

Jeff Silber

much. just so I'll know Thanks one. I to it keep it's late.

only would sort come way upside you about we've talked into issuers? aspect positive long Could I just finance potential margins some are depending of they're of go. impact bit the – got bleed a infrastructure the a the to proposals make does And your new there other generally, issuers, proposals. the But think to if I fruition, do from little from much. different public issuer? so could also just it you and this And know you the on Thanks issuers? make it

Rob Fauber

of expect it's I some possible of you would getting going to our remain corporate passed. there's content see those. economic sector. Obviously, final finance a and think in I of to Yes. be seeing up size majority meaningfully kind in whatever of that be ends our would don't that PPI can profile seen the different across that pro sector that

typically really to Although, sovereign this too economic tends so it's little talking at probably little a we're different international international a about again, early subside, But have our point. to sub profile. tell US, bit

Judah Sokel

right. again, I profitability does by difference? issuer, make completely that understand. on a All the And

Robert Fauber

I don't in difference case. a this think significant

Judah Sokel

so much. Thanks

Operator

follow-up will Huber Huber Craig take Partners. [Operator from Instructions] a We with Research

Craig Huber

months I've talked or large within past. your internal CEO With a companies a he'll Yes, or CEO an whether acquisition. do matter as hi. with other external takes Thanks. of about the the now this in the quarters, Rob, when be over, size seen we've hire, company, of new it position

I normal timeframe. one to Has what in or stuff. all changed of these the as X you corporate think here in did of your tuck-in acquisitions main back of just and Given the going years your in at States area, competitors terms back here November in X the your days cadence lead your led thoughts which development

question I – of main has done for acquisition $X itching my bit mean guys never outside You've the at company acquisition never you huge do is BvD little large acquisition, here? and – a billion stuff. game-changing a over all to a -- are

Robe Fauber

Yes.

great wouldn't say to question. I Craig, itching So acquisition. a large do

of feel very to running back and kind our about just entire race own I good outlook come think we're across I business. our here, the we

We have high-growth in got and end are some we -- positioned markets. markets, very very some are serving end well those we

that some and a what I acquisition You've businesses, those seeing was scale made us size is that, look you're see coming and Media And very space, world in in RDC, on And of the this rates has the we think helped building nice you seen or also Cortera from business. us right? BvD to data growth bolt-ons really so KYC that company we've a think what is but out space. focus both that the leader us, build private are Acquire

estate. what talk us around heard you've doing about And that. about now good real we're very feel we commercial So

We heard over look acquisitions have made, talk those we've about years, bought We and ERS, We bought acquisitions, [indiscernible]. what the highlighted insurance. You've us where RiskFirst. tuck-in done. bought We GGY.

All that supporting is growth and that now insurance seeing management. in of you're that asset

big are come and things our Craig, risk serving our and and not going clear or for to loud to our small. focused us, where strategy and sense they investing want for back where we're to customers to customers. We're going strategy. assessment I'm It's hearing inorganically. got from need we're for our it help, and that's about We're do make So on is that organically

Craig Huber

Okay. Thank you.

Operator

the questions any Rob back further over conference turn closing time. like remarks. no would to are with There to I at Fauber or this additional

Rob Fauber

you to summer. look the for you, call, thank joining in We today's everybody, again Yes. Well, forward with speaking and

Operator

concludes This Quarter Moody's First Call. XXXX Earnings

IR this following page. the section quarter the revenue immediately Moody's under will XXXX breakdown MIS of reminder, post a earnings home As company first the call, the

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

Moody's (MCO) 28 Apr 212021 Q1 Earnings call transcript