SPGI - Earnings call transcript Q1 2021

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Operator

Good morning. Welcome to S&P Global's First Quarter 2021 Earnings Conference Call. I'd like to inform you that this call is being recorded for broadcast. All participants are in a listen-only mode.

We will open the conference to questions and answers after the presentation and instructions will follow at that time. and to webcast the access slides, investor.spglobal.com. go To like Mr. Instructions] I introduce now would [Operator to Senior President Merritt, Chip Vice Global. for S&P of Investor Relations begin. Sir, may you

Chip Merritt

Thank Officer. CEO; earlier and earnings Steenbergen, quarter our Executive call you results and Global's today. a Ewout Doug Presenting Chief news President Financial with are and on today's issued for XXXX President Peterson, Vice S&P We joining call. first release

downloaded release the If you at financial they investor.spglobal.com. can copy need and be schedules, of a

to and need Except these Securities I the with may that from and cautionary XX-Ks, based are Securities other Before events. certain our Form subject current filed the cause cautionary discussed including statements. results periodic statements. begin, XX-Qs differ expectations direct and and we the contained U.S. economic current teleconference Litigation on within forward-looking in to forward-looking about anticipated provide we of In to future actual XXXX, Any forward-looking conditions and to regard, projections, for matters such Private Commission. listeners remarks Act materially meaning of reports risks statements information, uncertainties estimates statements Exchange the in historical Reform statements of may and are results in the the contain descriptions this

year, I of The merger. offer buy nor to sell solicitation and the meeting or between but of that periods and statements does solicitation or statement call, information. second contains make merger, prospectus, enable to calculated measures law as earnings the of comparable registration with a statement reconcile the accordance view the future sell in earnings The from offer, available contains a difference be the sec.gov. both U.S. of operating statement the in be the during prospectus. offering a outlook, shareholders on Markit pending to has and are March, Global financial Securities perspective S&P XXXX. call addition, expected any corporation's with prior Any actual and constitute the which the about urged have be the jurisdiction voted Global Section transaction, financial would filed that securities Factors this also understand or filings into to of registration who late sale information shall IHS measures to entire joint media company. has we by me could and S&P adjusted which the securities release favor or touch are SEC. of expect differ exhibits the securities This proxy shall any there offer X% unlawful conference forward-looking with have business with GAAP. management's. merger the except meaningful Investors would from holders is of Global can legislation joint and uncertainties. other carefully the under In securities, risks qualification and on of the as SEC, to your in the the in last an with of will should the the requirements we with and non-GAAP our we In and performance sale today's Markit call of of or any made buy investor or IHS representatives or agreement. this investors a corporation's same Act which proxy regulation. the impact European more release and In that to between This cause discussion close S-X regulatory expectations and of Global and to S&P S&P we our companies of proposed S&P prospectus materially attention events our includes like provide the subject In No that XX the Form to such on on registration announced be IHS found half definitive to Markit is filed Markit especially expects call, results ownership entered do aware read merger in approval, a overwhelmingly connection proposed call on provided us comparisons documents website to potentially any are any website. to in security the SEC a on is This our of obtain jurisdiction. regarding better and to statement or transaction XXXX. We're of and of call. and the of IHS to some means give investor not Global stock the

the At turn and this like However, Peterson. that would Guarino time, to would I delivered investors, the over this call to be we ask for is Dave to intended call Doug Doug? questions media XXX-XXX-XXXX. at from

Doug Peterson

Thank you, the products the demonstrated of resilience today's Since earnings Chip. call. has of essential our pandemic, of the to nature our the Welcome model. beginning business

the economy launch to innovative new recovery. to colleagues improves, help our products customers data ratings, insights need the our they the As to and benchmarks, with continue navigate

unusual their to colleagues, and and them in these want to our times. dedication the thank We extremely continue prioritize again for and challenging safety I of commitment

delivered rare high-yield in surge growth thanks first again quarter to great a begin quarter results. limited and X%, finance. expense XX%, than a very from less our me increase increased and issuance all in revenue we and businesses program our our quarter we financial four as and ongoing Revenue start lower let T&E. highlights. when Now productivity growth on growth margin Ratings is It's profit S&P revenue leveraged earnings to exceptional Global was structured to Adjusted call. adjusted operating loans, first delivered guidance once XXXX, with delivered off strongest the improvement. first

and structured However, raising in we Indices our also will highlighting Therefore, provide showed report, the annual and creditworthiness from of would indicators Ewout the from value like performance expect default details in our some issued XXXX, their XXXX. additional additional AUM guidance as strong ratings for We we're of and finance a level high-yield growth the a moment. issuance in highlights higher demonstrated and equities. Ratings quarter. risk. of ratings our I which relative to in that share from first of

result Our product launches and investment Kensho continues in growth initiatives particularly in to ESG, new benchmarks, Platts our in Marketplace.

the and these We'll most business entered China on services gaining sustainability-linked accomplishments important an momentum, upcoming the call. of into space. a just Our Ratings in IHS company incredibly S&P will The our company. provide information The for combination year the facility with our further banking opportunity all is details merger today's and first customers. IHS on strong US very of our Markit initiative be Global and transformative This Markit. we is creates

of to our three leading We our the prepare and the technology for scale markets talented to parallel I'm powering workflows cutting-edge we've important have of analytics, welcoming the paths are Together, deploying offer proud to and across of future will data, and underway There we products built numerous are look and combination. employees companies. world-class Markit Global, world's many incredibly research the close at core to increased company. of differentiated the I of can IHS team S&P our that forward to transaction accelerate record the the strategy. with markets track the benchmarks, a customers

we second and of in track, on is continue XXXX. half to progress expect the closing Our

first at in with The was The XX% companies approval. both overwhelmingly of recent votes was the of shareholder shareholder merger. votes the passed favor

in countries second is regulatory listed. toward approval The regulatory the working approval. We're

that a values to track integration capture work that doing focus synergies. teams make real planning. These results integration when united, success. The third scale is culture, our place To day to product efficiency, in $X continue pre-close the consolidation, us cross-selling organization purpose position for to The value have on and quarter, new preparing lot billion. are is stream integration, XX% increased pursue readiness. one and to sure We've recap and for prepare the been developing financial we the for the first revenue companies work are estate And plans technology, to development. and teams of

increased our profit points operating increased basis adjusted margin adjusted and Our to XX.X%. XX%, profit operating XXX

track XXX you increased profit we XX.X%. basis, quarter know, a four and trailing to adjusted measure points which operating on basis As margin

diluted diluted Each EPS. quarter, highlight [Technical addition, decreased few our adjusted shares a to drivers Difficulty] business outstanding projects underway. key in we In important and

bond with let trends. Ratings me issuance start quarter, This

During quarter, increased global the first issuance bond X%.

XX%, than loan increased XX%. slide, to of data mostly In finance in due data. The our rating CLOs. overall. surged European finance issuance global rating XX% XX%, increased to increased loan XX% the in increased increased investment-grade increased increased due bank first XXX%, to in important mostly and quarter, CLO high-yield volume. In XX% XX% Turning revenue ratings loan a disclose are increased and as only the issuance quarter. included element $XXX increase bond X% the we an bond Difficulty] increased US, this bond investment-grade to bank aggregate to this overall not revenue and issuance tripling revenue of [Technical XX% high-yield decreased as Asia, bond they're finance like X%, a structured more structured million. each X% increased bank issuance public In XX%, on slide Since Ratings issuance

loan readily the from available for the and shows of of and revenue revenue billion loans the combined This next two global than that XXXX. quarter all combination US last loan is has averaged the leveraged not the and half first The slide quarter. for $XXX of three rest fact, Europe. is over volume issuance issuance leveraged at in look loan the years, leveraged Data world. the leveraged In more slides per high-yield high-yield

quarter average year. and yet us refinancing, The investor past high-yield instruments, twice always increases market the their performance believe could quarter for Performance the in increased. the in reached in performed in our tumultuous strong slide volume Resilience both nearly record yield S&P issuance issuance, this twice see to XXXX quarterly M&A CLO report and US category the with of relatively first busiest for February, to pandemic what's [Technical this of that quarterly Review XXXX. XXXX some search of and during and how Global floating-rate exciting The chart In ratings Difficulty]. The Whilst with was perform. quarter last on important designed. for from of Europe, of increase depicts of contributed dividends include year, issued and We pull buybacks increased is This We as entitled combination Trends: our billion, three first the pulled also Credit year. the demand the the had more had XXXX issuances record which activity Ratings CLO forward. to report. the a a Highlights ratings Ratings new of largest issuance LBO was years. $XXX CLO a the

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Importantly, creditworthiness economic circumstances value ratings XXXX amid and challenging showed of in risk. relative default indicators our as their

initiatives. our to investments Turning in growth

me with ESG. start Let

evaluations, In engagements $XX of Evaluations XX SAM compares with we board. than of franchise ESG we're We off the across a more benchmark in XXXX. XX Green ESG advances first ESG all quarter, million in Ratings, completed continue with SAM evaluations, our to start the [Technical benchmark XXXX, million. the ESG XX $XX in recording engagements. up revenue and XX% good to in completed This make six first After quarter to revenue to Difficulty]

Framework scores clients have been environmental and points Alignment We companies' additional for disclosures, emissions, enhanced. of sustainability provide also ESG and disposal, with hazardous we data company each greenhouse understanding better points XXX usage. reporting Market that and water available launched data will social new The been biodiversity energy made consumption In Intelligence, COX a Opinions. commitments, waste have score. and our

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ESG new Weight Difficulty]. addition, ESG for products. Low a Platts has UBS Index licensed XXX been XX, structured for EuroUSA Barclays Elite [Technical In the S&P licensed Index S&P ETF, Select the use Carbon and Equal very active in

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carbon suitable and approximately XXX oil also in or finally, as Platts complement for low-carbon also of launched as renewable be Difficulty] is the a cost regulation. engines. oil pounds greases For which aluminum assessments Earth Platts intelligence. daily launched as and global biomass-derived S&P On risk known renewable made price is blended and And for of increasing substitute. for Platts such carbon can primary example, SustainableX, your diesel reduction an price traditional European single new Global diesel and for vegetable opportunities ESG associated aluminum, fat, hydro-treated aluminum. It a electric of strategies quantify brand, assessments. offerings with non-petroleum used source week, high-grade a copper. vehicle amid last zero uses diesel a sustainability in America, manage will launched fuel growing focus resources vegetable essential existing [Technical on natural HVO, Day

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non-transaction clearly For XXXX leveraged revenue we it are about and doesn't think and doesn't issuance. activity. when include address There example, loan takes puts

example, anticipation the early first their For year needs bulk corporate quarter's have exhausted issuance rates. repeat who funding of came the rising may from of the on this issuers

yields are deals. there in a and sovereign growing upcoming economic items financing should growth, of very a large including several conditions, favorable pipeline support debt issuance, amounts pending rebound that of with However, negative M&A

taken particularly a looks our we basis in massive recovery up uncertainty plan, cause unevenness virus although An of rollouts the accelerate rebound revised mid-XXXX, slow A persists. and recovery in variants. hampering a back The of slow The the set global to on stimulus vaccination to fiscal is Europe, X.X%. lead vaccinations the the emerging XXXX and XX expect points is of degree have US forecast, lag. several UK GDP issue spread high US to key growth have vaccinations. markets to rollout by We in pace in in the the economic and and of

Our both view development the economists a orderly positive for reflation economy and as credit.

a yields yields a We is believe opposed solely back of as to robust rising the inflation that recovery also rising on positive concern. on

from yield Ewout remain a of over outlook. away bodes financial This Steenbergen, provide the to health that our turn Platts prices. non-financial the $XX financial Moving going for and the asset through to very lessens and into well will forecasting oil And distortions will for barrel performance rates oil I finally, above and lessens to who's is search Ewout? XXXX. industry. now the additional insights call low

Ewout Steenbergen

Doug. you, Thank

start Let the me I Doug revenue moment strong highlights and will per take to share quarter covered other results. items. with our a first cover a few financial growth. adjusted of earnings

mind almost benefits foreign that to the X%, While tax divestitures a there acquisitions on T&E revenue no between enough T&E. total stock-based taxes increase only were a quarter. benefit not The due second Adjusted and quarter increased Keep the in to while in reported first difference in year-over-year tax an the XXXX, longer result organic some ongoing expenses the decrease compensation to them and remains the large in exists, programs lower and primarily was rate growth. will in with thanks of nonexistent, effective beginning in the was increase productivity associated since associated revenue with operations. and

tax While tax full the rate unchanged. rate adjustments, remains fluctuates the timing to quarter-to-quarter effective year tax our of due from guidance discrete

was share the declined repurchased X.X programs, This by the shares of pending outstanding repurchase shares. paused to result due merger. before diluted we million the Our shares

only positive During impacted million. adjusted where profit $X.XX. in The adjusted positively foreign of impact EPS by operating was was Ratings, had changes on rates the a quarter, exchange in $X meaningful impact

are provide pending categories the We the merger. incurred that to are related into new to of introducing going be type insight to three expenses

merger. include The related are banking the legal filing first transaction They category These costs. to costs fees, investment fees and is completing fees.

costs. and is costs to The second integration. integration These category operationalize costs. include consulting, infrastructure the are They retention

$X net related include expense million. first cost million adjustments non-GAAP and category distribution to for enhancements. to million terminations, for merger in pre-tax costs is collectively prior for marketing costs These around achieve of an revenue third adjustment severance, a transaction to will development, costs; the the costs. begin deal-related to expenses are synergies. and lease loss totaled achieve. $X this of million merger merger. There and These $XX year fees no quarter, They They million million integration $XX Kensho occur The on the In for gain needed the the quarter. contract costs retention-related to amortization. A $X $XX period were enable and merger closing exit divestiture, included product to

quarter, individual This will small margin a increased delivered revenue Platts operating significantly moment. and divisions profit the On provide decrease. adjusted profit. increased four-quarter results a basis, Indices four Market on in operating in trailing and Ratings, I color adjusted while had Intelligence, all a business

Now, turning sheet. to the balance

leverage liquidity. and ample Our balance sheet has low

billion, We and an cash no billion, of capacity of commercial billion have cash equivalents undrawn and paper $X.X revolver of debt $X.X $X.X outstanding.

increase have $XXX merger prior improved banking our to debt gross the of to over Markit, been the X.X times. $XXX tangible the of excluding the the sustainability-linked quarter, or an to into our to repurchases adjusted share in was end Initiative emission net resuming pending year XX% another since If is after Linking items entered curtailed. million share XXXX. have and first adjusted with credit million certain Our by to flow sector. IHS Due is reduction closes. information shares the an recently not, Science becoming Based first Targets repurchase we targets the If cash opportunity, Free We repurchases merger completed. anticipate by commitment we services we an is zero the there year US window facility will EBITDA of the open of merger last before example in verified our period. line

the This X%. growth turn was XX%. Doug in increase the division revenue driven Adjusted expenses results. issuance Ratings revenue let's discussed. increased by increased to Now already

adjusted increase partially On basis basis XX.X%. X% the in a Excluding profit in Please Greenwich momentum and in of T&E. and and operating increased surge operating segment segment profit offset we adjusted see XXX in by the primarily resulted XX% high-yield, Associates interest foreign adjusted a our in basis, margin. and operating expenses due XXX incentives, of adjusted trailing is based in point four-quarter to salary on These the increase to by a changes profit acquisition margin CRISIL, in picking rates exchange increased structured and the keep issuance segment XX.X% China, first loans achieved up. in profit ratings temporarily finance. quarter levered adjusted operating increased segment that, margin points lower In elevated mind

completed we Evaluation first fact, as quarter to compared from well XX Ratings fees primarily in the XX% ratings XX increased Services all and XX%. in each associated entity with In entity ratings Notably, and Services due surveillance increased approximately last new at Evaluation elevated year. revenue Ratings CRISIL, Non-transaction growth to revenue activity. ratings new as

revenue the In total the ratings quarter, years. increased in yield levels XX% loan substantial credits issuance, fact, and high-yield debt. revenue markets. XXX to finance. was quarterly entity This in increased depicts corporates. weaker contributor due a the highest to The two by and this investors to were increase in bank raise new to quest Ratings appetite, increase revenue was ratings for over Transaction Ratings structured due primarily enabling end slide of XX% This there increasingly risk largest

increased In the XX%, services finance increased XX%, structured X%. CRISIL governments other increased financial and category XX% addition, revenue increased and

in increase the slide, of right structured CLO of The revenue. the side changes can see the growth finance. a in you XX% within clear revenue On was driver

our the reduced only past a adjusted and to elevated increased operating increased first the profit profit basis, to S&P $X basis on of X%, as points Revenue royalties. offset operating margin a On decreased four-quarter XXXX X%. due was linked data quarter. including mixed catch-up to segment Indices, expenses, indices XX.X%. profit this and XX AUM activity. segment XX.X%. the first In million quarter primarily basis Jones Turning trailing growth the gains revenue in growth segment segment adjusted points This adjusted margin by the operating X% was to adjusted The subscriptions, derivative delivered low increased particularly had exchange-traded expenses quarter, Dow substantially charge XX to

activity. Asset-linked and fees gains ETFs, reduced in increased decreased funds XX% Exchange-traded mutual derivative revenue insurance and with volumes. on XX% derivative trading over-the-counter

correction, a saw first in first X% last due related real-time a of customer subscriptions year. market very and Data catch-up custom year quarter quarter pandemic increased reporting last the creating The extraordinary difficult only to to comparison. in volatility the

For quarter-ending is and appreciation totaled year, in the Indices its our inflows ETF net $XXX was market ETF $X.X the This XX% $XXX AUM which resulted near low. year to of market compared past were higher ago, division, billion. trillion, over when pandemic billion one

based our ETF inflows net Our totaled XX% billion is end revenue the associated Sequentially, AUM, which of versus ETF year-over-year. XXXX, average increased billion. market indices with $XXX on totaled $XX and appreciation

and particularly Collectively, points T&E and decreasing As as launched investment salary I offset S&P difficult segment reported a expenses aftermarket revenue profit profit Adjusted adjusted the and increased the higher and research, XX.X%. with over comparison. basis, operating growth equity to XXX ESG, and in data. margin basis initiatives adjusted growth points XX%. the Investment spending a continues, and faced increased decreased were lower XX%, four-quarter activity productivity XXX spending. CBOE X%. increased profit options with organic Panjiva, On initiatives. SME SME was This XX%. operating the revenue derivative segment from trailing operating segment revenue Market increased Marketplace X%. exchange-rated recently margin just flat decreased recent Adjusted to noted, quarter basis activity XXX options delivered and Index of from Activity products at complex CME at Intelligence first Activity decreasing XX% by VIX Marketplace and the XX.X%. primarily futures

Management increased to Based And to revenue trends, low grow Solutions grew mid-single we grew and revenue Solutions Market both and turning Solutions components, to now the Desktop full Looking X% X%. Risk revenue X%. Intelligence Credit Platts. across grow X%. our the Data grew Credit ACV Desktop on single-digit Risk high revenue this Solutions and for year. Reported to Management year Data digits expect

core Our X%. increased subscriptions

live. partially petroleum increased revenue decreased, X% we year, expenses compared the points the rates operating earnings our points investment by XX.X%. lower in and margin pick adjusted On strong and is quarter four-quarter XXXX. to in call base due customer now improved segment volumes GTS due assessments Adjusted that reduction in increased profit T&E, last margin profit as in volume. healthier, the year, quarter One note a up to Kensho-powered of mid-XXs. a more price XXX remained have second increased, mainly spending resulted have operating debt than segment LNG have Doug provision. basis to Services our first we noted natural increased past gas later, trailing Over year XX%. resulting prices increases. and that that publishing expect bad time. XXX decreased retention basis This Adjusted first to XX Global in XX% The rent Platts oil the that to Please went to very Kensho-powered lower offset quarter first-ever markets assessments. a X% Trading price has expenses

every product XX% rates category providing the reporting key To And during given now Platts for transported benchmarking, covering These with this not reliably your grains, iron basis the as this slide information the cannot quarterly This This sugar, routes provided quarter, fastest because years. the such and revenue models, XXXX, the of because, with publishes XX the and listed Platts components appendix trade for daily to the freight with into of have help grew of in sea. essential exchanges all finally, derivative growth depicts freight customers, providing around an merger, on petrochemicals. was in ore, freight assessments than on freight of Global by trade inherent offering management basis historical our predict hundreds products bauxite five by of important shipping guidance. has measures. for participants assessments has market of deck. necessary slide uncertainty commodities increasingly its shipping for In Platts commodity global alumina. GAAP assessment market in the GAAP physical major as new while S&P the quarter, markets. more introducing are contracts. transparency slide we are rate We're for all guidance the shipping XXXX adjusted been used daily expanded you coal, offering a become dry is of Shipping market the category. shipping to by we're new Platts as trading business

occur While guidance a second standalone we we're will adjusted in this merger half the basis. of the on expect providing that year,

XXXX second due these shows line improved column James now items to we highlighted. and revenue making Indices. expectations for that new adjusted primarily in Ratings with the growth We're greater our all guidance The because outlooks changes have

by for new guidance. basis customers a $XX.XX. And economy revenue greater expect accelerated points guidance XXXX to range this a start single-digit is are enough of $X.XX cash In off to increased to are been The our poised has a to growth, diluted growth, improvements. XX% we increase Therefore, a guidance profit change out. increased $XXX mid by global in range margin with to finally, remains range our And of our to $X.X adjusted a of $XX.XX free first results not EPS conclusion, we're quarter XX.X%. Operating and billion While from to increase. to million flow is exceptional benefiting XX revenue results. revenue generation $X.X these in rolling billion. a it's great to Vaccinations

this and with for S&P investment the and continued of Chip our the And been your employees, to of perseverance, thanking you your thanking that, Global. end back over During safety for questions. for in hard working by ensure I their me creativity to call and them turn have we by let to want pandemic, all passion

Chip Merritt

Thank you.

Can a this have difficulty let's have now? Thank Difficulty] questions. technical Just We end. you. you a me couple at Operator, [Technical hear the

Operator

you. Thank

from comes question Stanley. Kaplan with first Toni Morgan Our

open. line Your is

Toni Kaplan

Wanted you. about ask return. capital to Thank

closes. of on you earlier billion talked it's and buybacks limitations cash building do $X.X the the balance you have quarter as flow generate of But sheet, the quarter. deal cash last You about until and every free

the XXXX? cash after a special or typical close, be we XX% far of will in free below So expect a deal large or capital the Thanks. dividend, return ASR should flow

Ewout Steenbergen

look morning, current temporarily that at that is Good Ewout. cash balances for Toni. our way elevated. you we raising This the point. this is is Thank Definitely,

planning to We forward. terms about do what are the we thinking following of in going are

to will once opportunity merger more what the of likelihood likely, that will the means not catch low have we targets clearly, respect the to we have merger an the do able before then been capital first, we new deliver least open return we up targets going close on capital open have quarters with will an First is And be limitations. window, after close the have because, last to at few our all, is, we from forward, given window those so is that the these of target return XX%.

catch-up you. our you return after of then can't this I numbers may and an of increased kind philosophically, capital what thinking. can't of a merger close our expect level is for the direction I shareholders. is and exact the So so this a ongoing, quantify will to amounts you But give

Toni Kaplan

ask That's wanted index to great. about subscription. I

in the You're up quarter. X%

closer was I year. it about XX% to last think

I mentioned just was? broader, that you. a you like you cancellations what in color And more index pricing the little the talk also Thank that about change just reporting. subscription think trends could if give could you bit and competition. But in a you're on seeing and

Ewout Steenbergen

know, reporting the grow this revenue more was subscriptions. was we mix to is forward. therefore, and for catch-up, going business area in in had catch-up it's in custom basis to data definitely index expect because X%. quarter, this is And administration. should with under a we to a have, revenues reporting subscription-like to with had trading an Strategically, would And have from a grow, much small an not assets the the fees expect the year will we to index revenue, higher area this as fees. unusually derivative due And X% what the what growth grow the where well. management, you period-over-period as would definitely is we some should looked we we good We low and like overall over real-time think recurring just of balance the business, like growth be differential we of relatively change so and that Toni, we the call last which do first of this

higher low at going So unusually X% much and growth the forward. expectation should be

Toni Kaplan

year? there. come of consulting index last stop anything from Thanks. Did out your I'll

Chip Merritt

to limit okay, Toni, we're two everybody to that get as so questions please, always, involved. going we

Okay? Thanks.

Toni Kaplan

sorry. Thank you. Yes,

Chip Merritt

problem. No

Operator

you. Thank

is with Goldman George question Sachs. Tong from Our next

open Your line sir. is

George Tong

Hi strong from XQ a was what a the believe quarter. growth your saw XQ future outlook issuance quarters? thanks. To does issuance how in Good Ratings there through extent in do change? morning. revenue debt pull revenue And for you forward and Ratings

Doug Peterson

all, is joining the Hi strong of Doug. increase Thanks first for we the in Well, saw quarter. in George, call. a very know, as you results this first

few you them a put to context. give numbers to in Just

was investment-grade Europe was and that the XXX%. US example, up an down XX%, XX%. the down you time, in same XX%. think As about of was US, in High-yield At Europe were was in up Structured were the being in investment-grade High-yield US was but as the up X%, finance CLOs Europe, And well. XX%, globally up tidbits up XX% were couple up XX%. a CLOs In also and bank XXX%. up in loans there.

as that the wasn't at Rates growth. attractive. spreads as see to pull the non-investment-grade US, of some So, would X.X% forecast there we original the in were and mix what We years. the X%, at structured the year. be coming two rates is an forward, the what that they know, at and that potentially or down and originally we Spreads bigger see XX% phrase, an down you them forecast economic is that to for the been there's saw And both will start a the lows starts to -- up finance to in our about investment you But again. X%. finance you X%. there X% X%. are we We as up originally a use of over probably going see them and well changed now some in be that forecast be about gave last It about definitely just now market low Structured issuers also going around corporates was in historical different could look inflation think services and the much. expectations all-time hasn't up upcoming or US going in quite believe Europe, three the now what in -- but Financial interest necessarily have up aspects were investment-grade, in interest down. cases up saw swing, that about you, were that where the for that down we saw up because

-- originally total, about think be you going would X%. at when about now the that So, down about we forecasted X% issuance and the be down had look XXXX it's we for to

have in and to the that is pull particular. in but it's coming I it's forward been forward, As off, could space started some always in pull there hard high-yield what's what tell this possible

George Tong

those Very from do How helpful. issuance debt follow-up just with a normalizes levels? then expect as And margins. to strong operating you the perform Ratings XQ

Ewout Steenbergen

George. morning Good

three quarter think for the year, at you moment, data the about seen the level and last in opportunity standalone XX% the XX% we XX% at margins is Ratings the level, is there we from level saw full If XX% normal. this it is shouldn't look XX% the it to trailing then somewhere One the year think to around the environment margins, Then that four-quarter be XXXX level. the we was about in at the in new The saw level. the surge the was which points. issuance think not XXXX, clearly you as the as which margins at but in this year. what first due elevated quarter is level and an We that of of expand around

improvements but reasons just due So, we directionally, elevated quarter explained. to was this the

George Tong

Very helpful. Thank you.

Operator

Thank you.

question next from Our Jefferies. with is Hamzah Mazari

open. line Your is

Hamzah Mazari

target of your specifically help side, you've talked will margins I on investment realize on that? could maybe that doing being the was a spend but that morning. Good how was you're talk Intelligence you revenue comp, XXs about growth. margin of and there a a high know Market basis. from and timing topline I question about in some it slightly tougher My already just the organic

So, doing there? ramp the any other highlight? spend investment areas any and the all thoughts you're on And from maybe growth the to

Ewout Steenbergen

Good morning Hamzah.

to impact recovery reasons why from XXXX, Management the therefore, you Solutions are If growth this some particularly, Desktop COVID a activity growth there high the Solutions. now, the past revenue particular mid-single-digit for single-digit various ACV. -- But about Credit and Intelligence, from revenue us Risk what has this were the you really Desktop year still revenue impact is a Market heard Think quarter. think seen commercial to bit healthy therefore, uneven lower about for in regions, guiding some was we low and seeing Data growth and for that

growth. up, always of we're respect with we initiatives, growth relatively and very the very booked the numbers Specifically see see very all it ramp first new small. about to takes are less data. for basis, or think the more But making. SME, of were revenues applies ESG, a revenues the the course, bit we of are well total still and over excited Data overall nice initiatives full investments same The the in these XXXX. quarter is the time that Actually, private to same revenue the the and know doing We Marketplace an about that from we company year

is XXXX, Overall, at traction. initiatives, very think which for growth growth good high for see growth So, and business high and the full year for overall, those of single-digit clearly XXXX, very we mid some think, clearly a I mid helped Intelligence we this full by initiatives. it's to healthy is lot very, to a so of year the expected Market single-digit

Hamzah Mazari

and maybe your what And expectations? what of color you. there sort to China seeing big how traction the over terms great. as just the any That's in in seeing of revenue Thank Aside any then, today? you're the business China you're gaining relative from just be just on pandemic, -- to there base could thoughts time,

Doug Peterson

is Doug. today. thank joining the call this for Hamzah, And you

other ratings year, and participants market our traction believe ratings Market that me Ratings. in increasingly our give with the the are year with XX in had our we've of alone, for and the XX the company. year, We're but Last Platts. We're in had interested one index investing some quick entire important first issued from we about is we typically investing And update we on of recently, ratings. interested initiatives. very we But of XXXX, really were China We the know, a issued the Ratings, themselves, the strategic let you portal quarter Intelligence. full As this And that quality good ratings. have most you initiatives business. credit in talk underlying

structured the we've strong meetings new controlled capital is that doing we've from financial of BBB. that foreign But owned a out attracting As as ratings the market. very, team, getting two started look of when I'm done the very now over The educating is is strong I've products, has some our in of market talked banks are very more of over team. We a attention, markets. AAA events first is have new out joining time. to that to our market that high We're rolled time, and people goes the such pleased lot approach that having breadth see bringing rated with We're a new up research, and traction last lot really getting good a ratings subsidiaries, or years. One we've et to which offshore a seminars cetera. when we're our to the we're -- well And thousands of assembled addition non-financial We've corporation, about as over you wholly coming that. building doing thing with investors is hundreds websites, literally when what the the that or in week. their we

a investment, long-run a as start. So, China to we really see good but off

Hamzah Mazari

Thank you.

Doug Peterson

Okay.

Operator

Thank you your for question.

Credit Our McVeigh question Kevin with is Suisse. next from

Your line open. is

Kevin McVeigh

cycle if last lot for next in What business? could job so where to capturing opposed you the this of you this there's cycle in the just wonder kind default secular done one, Ewout, does you much. disruption. trends mean or as capturing Like some as Doug contextualize. the I about an that more think you've more of Thank business amazing the the and a

Doug Peterson

us. look various we out clearly, to as years, Well, over there's few are factors next that important the

choppy the themselves, to is recovery. a although we the think economy As that in you globally recovering, we showed be it's going slides

at the you well. to some other this successful think and year see like You've the pretty India Europe at that back be year markets as going X.X% continue at year rate. be to The got very, recovering China is strong, rate. might other China on because markets haven't pull very grow going they're given UK, But going we this going quickly government overall, But, X%. will double-digit, the that XX% a US had X.X% is quite the also of themselves vaccination the growth to be and vaccinations the following not the growing program. US are also that to the markets very and globally. a Actually, growing of says growing that other be yet at quick and at improve is those to a

the over of global our So, X% years for growth well range, which to the businesses. X% couple in next bode

look investing important from at we what is insurance question around us, pension, become as just money in and savings markets the talk the world. savers is we One an of the one into financial real trends and capital putting to biggest And about markets for program. is had about estate into we China as assets, China move just

of we've of years. advanced about and capital last of As capital And foreign quarters in last years, over more like investors last but markets. we've couple the move into more they've been very a couple seen we're The the strong markets. European becoming always them talked them, seeing couple strong trends incredibly China, the much

et the we'll about subscription addition the or think from take XX% agency, think potentially give our into of When it's services. the now, choppiness the over coming us of interest move we budgets. all we incorporate And we'll support watch of strategy very we sort next always we the Now, the of our of or be head our markets stability the from couple now of the to growth have of to revenue it's recurring index are years then But and business. up our that out cetera. Future, as allows about when could of -- subscription-like prepared different Markets but businesses some to policy how as capabilities S&P think right will external IHS high-growth carefully comment. We back that very and set of fiscal And of we we the our environment. Global, final called any step well where our a customers. us either low come up financial invest will it we Markit one capabilities, planning coming Powering the markets into well rating rate and we environment, That the -- whether business from take that's

Kevin McVeigh

of And just then, XX.X% the historically? much in any Ewout, quick. what That's relative very to helpful. mix about way real it Is to margin there ratings is to think the mix like how that contributed terms

Ewout Steenbergen

volumes role, It not think the you Because to bit a are so frequent high-yields, plays of of Kevin. bank issuance terms overall issuer usually in from those and if that of and programs, translation about on a loans activity helps revenue.

definitely, here has So played as role well. mix a

Kevin McVeigh

you. Thank Okay.

Doug Peterson

Thanks Kevin.

Operator

Thank you for your question.

Patnaik with Our comes next question from Manav Barclays.

open. is line Your

Manav Patnaik

Good a question. quick had you. Thank I guys. just morning

deal are tuck-ins? the for you on well, curious close. to You've, back wait be there. just obviously, But as holding you as curtailed pipeline like your said, your you buybacks, Would just as presumably M&A

Doug Peterson

take me let Manav, that.

Markit one As to Global number you the after program S&P the deal closes. IHS integration the successfully know, with execute right is now, priority for

in now, could asset integration IHS right energy carbon If emphasis like is tuck-ins. metals look we aggressive to trading, have opportunity, closing battery might expand be and Markit fill-in at, our our M&A came transition for a of this was class But on be in the active Platts but something things small for successful a particular ESG major will something successful those we or program. So an transaction. along don't if or the space there new

Manav Patnaik

I that? something right. the Platts. really reason out for going small is just mean, That sense. then is which guys? a looking that to All I category shipping segment for there makes in that's Could Is fast any you should had particular there for? grow we breaking follow-up, one And out be be

Doug Peterson

for been over it. It's of news. a is around And have couple demand. the question. in and a it's becoming interesting the had and where research -- looking of We the had months the we've few lot those where one last analytics are very from discussion data Platts Manav, the areas markets Shipping high instances an of

the you tripled. they're in a around the at Yokohama If gone was period Beach they've China, -- California, recall, there's up ships there where in in ports up, stacked they've where been are have -- Long like doubled, rates around Japan,

was We stuck also in the which Suez the had large ship, Canal.

it there. gives there to the our which news, continue is lot for a for information it's is growth And highlights of high we pleased It's trade, interesting only there very and we're invest not an invest with and rate shipping, So been us for great global felt area a area about for we to for us a that heightened a now. demand grow in, like focus climate. implications a can and very energy emphasis there break out us, in for it transition, and to

Manav Patnaik

Thank right. guys. you All

Operator

your Thank question. you for

question next from UBS. with Kramm Our Alex is

Your line is open sir.

Alex Kramm

everyone. morning, good Hey, Yeah.

quickly. to Just the deal shifting

it's may Markit you've a else where that a assume I there's now, have just from things financial spent and findings. to you've comfortable, you've is as for five that spending few cost think, more not this teams mean, closing expectations, you I potentially side more But new so on time know been made I anything you been, time? any us assume. the more can approaches. IHS share I with I gotten updates this with You comment the deal the new months revenue time exactly as discovered

great. can you would So anything share be

Ewout Steenbergen

The boards run are thinking Definitely, getting so for each independently this that about management design, to is same about their these own lot time, the functioning work strategy. the Good two you going other, with two is still transaction thinking of companies respect on still and companies. with to hasn't future organizational are Alex, Ewout. as with are the integration know, morning, their teams own independently oversight. know closed, a At planning, these

synergies. additional what expense way, after indication merger I up the able during synergies integration a question, it. up So synergies, collaborative detected the with build am around of close. very terms the $XXX synergies, in trying with a trying already respect And to of updates, working, further are to you revenue deeper hard Yes, think, planning. we These get have But phase, build can are very Definitely, numbers. any you diving million up will the way diligence this in revenue to not, committed mentioned the and the levels million we're working are in we of that I respect to we bottoms able make in comfort the new the due and as numbers on to to expense we're your give you $XXX we provide sure deliver to to that. we're to, great

Alex Kramm

not on mean, to buyback Staying When mentioned obviously, just new been a A comes it Fair target. thing. But the you've similar new capital the stock. a future, leverage returns. I And in about asked some again, topic to in the levering I enough. though. know buybacks this people few there's hesitancy up is your past of

just ago, have you're your mentioned of to think, how lot may hands as to I So there? changed not Doug so maybe remind do. your shortly thinking that, a you very us probably have just other Given can full, things there's going

leveraging the to the your accelerate stock back balance appetite up period what's to this that? of not after sheet, So buying fully

Ewout Steenbergen

at to two Alex, will always we range the action The as as range ourselves has X.XX to that a leverage Global X.XX After X.X to fall the once be take outside brought set up And that within We we range S&P were stand-alone. have we said, been a will as increased. range. range target. range, we merger, bring times. of to back

As higher IHS Global is levered slightly X.X. earnings at S&P announcement you this in than currently our we're morning, Markit today. saw

lower will after mix we if clearly, and we of the will at the see to need both action. But base the of the new look take companies. range, combine we fall So we end below debt

opportunity We additional an will that corporate leverage shareholders financing that structure. sure on be will make excess to cash return well. have means excess add and an that optimal overall as forward, going balance our we sheet if we to to have capital And

Alex Kramm

Thank you enough. very Fair right. All much.

Ewout Steenbergen

Alex. Thanks,

Operator

for your Thank you question.

Nicholas is William Andrew next Blair. Our with from question

is sir. open, line Your

Trevor Romeo

is taking morning for Thanks our for in everybody. Trevor good questions. actually Andrew. Hey, This

First and of the start all, on high-yield just segment, loans well to bank performed Ratings year. both really the

talked of drivers of some kind market You already. the about

the going the for to continue categories direction, levels both year? two rest of always them those same the Just don't move since in forward them wondering, Do thoughts do any strength? the of on you have expect both you of trajectory to see similar

Doug Peterson

which of joining which of not pipeline the of Hi, capital-chasing the revenue drove issuance see there, We and Trevor, out is the just historic, at SPACs, us, level sometimes direction. there It's deals. as you're as a well loans has and increased is it's equity private a investments getting is move high-yield not look this did. but the to the it's in from loans call from is they a combination lot do Doug. and and is lot absolutely that time, an there. there's today. pipeline Thanks it with M&A for quite Clearly, from same for We This Yes, of high-yield key a few bonds. factors revenue along which firms, bank that. that strategic right, a not brings that M&A

happen is issuer the Evaluation the in see new overall being not very as investment-grade going the this for to make. corporate rates. increase especially And year, you're opposite fees loans out, probably are from as has with But think a sector, we high-yield move in in from There for interest right down with We There's US. forward I mentioned But the want one other with going issuers spreads. that been of comes Ratings the we they also that market, be going potential kind leveling exactly know to we usually to point Services looking do that demand in earlier, rates I well from investors pipeline. don't as what's see and that active directions.

four the had months. three or XX-year that climbing started saw You yield last the over

exposure. loans, in rate. And so and from which for investors demand floating-rate to, of a lot interest are exposure hedge They sense, there's rate of want kind floating their have a

well issuance. in and rest don't -- and for year what embedded our did. our they -- are But it's is forecast our we that you're for lockstep, So the quarter, always right the they as as move of see outlook this

Trevor Romeo

if increasing Thank a helpful. then just just given your That's talk some transition wondering could Platts kind energy within Great. focus Okay. you. ESG, about the practice of And of you on bit.

What's just your Thank into forward? that strategy the to would IHS then is if thoughts. any way plays outlook going business large love business there, hear you. how the now? your And Just resource there's I

Doug Peterson

first with on Great. all, Thank very franchise. the progress take ESG you. also. And making Well, are our we're that I'll pleased of we

a there essential initiatives, S&P sustainability we're we intelligence. this. a what for the Across time XXnd Global, you between, over as dedicated XXX about Platts. into Platts is we set minutes renewables SustainableX, it's we're have of transition shipping a dig the and spectrum. Hydrogen as in. we saw people few end April entire week, to is to brand, And full deeper building probably up you last the new on all are it, from heard be well our you an transportation, But ESG of coordinating across looking now bit energy But the of think for move about that many little ago. Earth at, opportunities example. is transition, our it's company. maybe mentioned of and as us an them already ESG call expertise in about talk it Day, a And you in As as energy whole comes to to single Platts your source on new announced of -- efforts to coal when

And clean to first run. we're natural something hydrogen delivery pipelines ensure can We so is and to there's the that clean that rebuilt has research of there's along no value the leakage the systems the What of that the are clean ways have one of We're and data a chain analytics that the run, oil. that against storage oil and you benchmark. something the has means had a benchmark. with gas. the that called oil. the is entire way, and all There's oil that There clean benchmarks are been provide like methane, able capture refineries hydrogen

energy whole Platts, important quite on in mentioned the metals, copper. we to are about which new call -- earlier There's set of also the We transition. a

in example, pounds least at which an of XXX As copper copper, there's vehicle. an electric

lithium in have also You the batteries.

see So energy. are for them, that going be from is these to to combination be are areas of clean where in the a metals we used from power energy from a grids, opportunities of transition the the lot new also clean benchmarks that

bring the also be for research us. a transition ESG, have carbon business other Platts to a additional to They like from together new which Finally, comes news their that IHS products carbon going generally, Markit, Markit, valuable quite to mention bringing other At franchise. a set the of have research the and our transportation I'd are be quite they research also they that with registry. They've and with transition. business, merger of along energy will valuable which and got strengthen set that IHS and in is ESG services then energy going to products on

well So Sustainable we We've think positioned. just we're launched one very brand. the

organization ready We place with we're people. have to really in start an XXX And growing. over

Ewout Steenbergen

the as ESG company, of the important revenues largest so overall an is to quick contributor strategy. today already the contributor addition, to clearly, Platts the And overall a

Trevor Romeo

very Great. Thank both you much.

Ewout Steenbergen

Thanks, Trevor

Operator

your you for question. Thank

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

Your is line open.

Craig Huber

get a you dollars might company? millions think basis? broad an on once just question much T&E, normal people start you Thanks. will add system on expenses into office the Yes. how Hi. for cost of can first And of costs, sense you back My in give think of a come other general the hundreds coming back workflow to back many and you annualized how that us

Ewout Steenbergen

morning. Good

couple data points me you Let give a here. of

$XX company. we COVID the we tools, virtual what expect to expect million. back. hybrid forward, of the that pandemic, overall a come we would $XX working, year, it's be normal spent clearly, million wouldn't new T&E with But working, XXXX, in correct we going the pre new Last on spent $XX million to ways more First, whole as

level million a kind be whole maybe is over. let's of or after would XX%, $XX estimate say, best T&E Our situation so around maybe so COVID a that the should haircut be of,

Some our are in of the program. already productivity of benefits captured that

we expenses need have clearly the expect days going part XX office program, the expect efficiency expect the because the be we to forward We million And are and benefits more going would to of footprint to to estate. to the estate overall productivity applies we $XXX being months. clearly, productivity also the a different a the that program. By don't So captured at real lessons that productivity we of We same come already in down. to months extensive last But million over also forward. people program. today real have the the way, due the $XXX operate spending, able of less learned working that of way XX

Craig Huber

X% you Can have And range in then, year the businesses? it sort your year-in, you on up X% just my pricing please. talk this for about last to non-indices question, Is of average normal over year-out?

Ewout Steenbergen

historically We're terms, But know, always businesses. careful should you company. general expectation than as from to have going what I in the think be And our overall, about forward, different Craig. across should we're seen is doing in you talk what nothing the that pricing

Craig Huber

Great. guys. Thanks

Ewout Steenbergen

Craig. Thanks,

Operator

Thank you.

Lau next from Oppenheimer. question is Our Owen with

open is Your sir. line

Owen Lau

Good morning. Thank you for taking my questions.

about So question a I have Trucost.

outlook. have just your also Trucost business greenhouse all with And committed in Trucost. think announced Biden your President these how to XXXX. also wondering State impacted Street I emission cut strategic engagement a by half gas I'm and

Thank that the recent and there If traction the be ahead, can you would great. opportunities talk about also you.

Doug Peterson

Great. Thank you, Owen.

take that much energy a me different the question. around going Well, look and the we way. broad Let transition you initiatives more on globe. And think in when about the now all at

are for talking talking around transition, around comparable, analytics they're And clear, energy need that consistent where whether bankers, matter have people it's about have with executives, there most a we finance, ESG. and climate, no of bankers, climate investment bankers, with concise, ministers see about of corporate ESG. talking data dialogues we any we important central go to it's people with go that One simple, the corporate and I they're to, -- about meeting is

know, to around well analytical around waste, and water data information. As of analytics risk and years us, brought you of it physical set premier and the as X.X of about carbon, other around we did types Trucost an as acquisition ago, climate,

We also have physical risk.

can the just have We to Street, -- as be all We their that going goals we State your information where embedded sustainable from do them providing an we're your question. SDGs, on with in Trucost of part agreement analytics modeling. development But that. first ways that can of announced

their clients trillion of to about client-focused existing ESG clients it use build clients under that -- has management State Street's be $XX will into assets hold. their risk able and intelligence All services. information and that of that State of Street

to clients functionality. be So we're able to data map What the footprint it that to It to is? those their to going access does be allows providing and have carbon environmental that will other portfolios.

As you right the and of kind the Paris the that build on Risk, the modeling. reporting. organizations increasingly the physical know, Financial Force the data, Trucost Climate-related Disclosure a Task lot using And of you Carbon carbon at take data, into general are can risk alignment, information it Earnings

see pleased very initiatives this with that we're of partnership in most something us important quite partnerships strategic entire and a start our company. for that other important many, of and with one Street. is We the So many State as

Owen Lau

switching bit business. gears a to then And helpful. maybe That's it. Got index little the

the -- global Could index. about there the product your model the index business, launch and a your you with about in a the cryptocurrency space? asset-based have thinking potential you. participating Thank You in and of partnership revenue Lukka talk please asset crypto launch

Doug Peterson

we on business. is of asset where And feel a such around starting. Crypto just to another of It's everyone's minds, of where ESG along those And Yes. an groups just, as one we crypto. like that we class, one some It's is. far nearly research index within needed there's the something that as not relevance it's important areas. specific can lot do do is the that, it's

to actually hadn't to the was this ability crypto the understood, We've been it. be that goes speculative, and to for researching have a or crypto the any It felt for hedged, for So now. quite traded, and had last last back to not more up than just it the liquidity weeks had launched until in ability few products while and we few seriousness quarters. really be be the

them Bitcoin. of close products that There's other But crypto listed There more can We yet, standards that haven't any the mainstream, company. some -- companies, just now sources. They're a other it's that have many launched is that companies trade listed have are on becoming being exchanges. beyond we're are crypto because you to.

-- the and have got exchanges started of forwards. having futures some You've

some products. see to that us some starting to allow conditions You're of would the develop

could a would quite on have starting As or data of would be that revenue similar it the revenue we promising, come area markets model from now, it's AUM-based either from our data But but an the to or model we to be which like indices, the that product an would other zero. -- sell would really that. it's that's at index use fees

much be our the I building of give So and feel you need but we revenue understanding learning what so starting of might portfolio projection can't low, that we a into like, of like products. because and it's look something to

Owen Lau

very Doug. That’s you, helpful. Thank

Doug Peterson

Thanks, Owen.

Operator

you for Thank question. your

Our Jeff from Meuler comes with next Baird. question

open, line Your is sir.

Jeff Meuler

Yes. Thank you.

in provided? you? to close, But synergy that have margin. while innovation, been targets obviously productivity at also question given record post-deal the productivity targets that it fantastic you've at you many incremental if track IHS incorporate is run for so, would us has those and opportunity be continued expansion I did targets. similar over expense or be this programs synergy in Markit you've appear expanding my programs investing S&P And a does IHS margin a So that years And quarter. running significant guess years, to types of you've obviously, recent the post

Ewout Steenbergen

good Jeff, morning.

call. the all, of welcome First to

Jeff Meuler

you. Thank

Ewout Steenbergen

your respect place. very for of our of in that. all, expense first With And We're companies you today with pleased coverage management philosophy, about thank have to already both philosophies your initiating Global. S&P question

course, to million be two basis. expense the we to order In synergies annual those have As of XXX to large bring having is program. you know, side, basis where the achieve that we're focus aiming What companies margin our target of we do have to to synergies, IHS are takeout. achieve a points the three period an And respect to cost Global now will on on fast. mentioned productivity program going of years together fully two expansion we although at is $XXX go of once particular planning a with goal before. to the we Markit ramp-up the we are overall that that's you expense That's on that, able a to, S&P

of We probably on at expense may year at we'll in level are of where we two divisions find But across look philosophically, that forward. to all opportunities of synergies. different continue going the you top to a XX% of have scale us the that, expect

that in the are with where that are we know, a have you technology to an we all scale the and particularly matters, leverage As business investments company. needed, really opportunity across

that to benefit you We of next comes because average continue line your the that anymore. of than also than be faster will to The company always leverage, cover don't benefit higher have on need you margin your cost the your your expense just operating top incremental margin, the into should revenue from line. dollar fixed growing

of that have us and we may you of be and scales all to focused already philosophically, continue So the to top on expect programs in benefit commitments on place. efficiencies existing very taking

Jeff Meuler

And this on good it's then pretty through growth had challenging some Okay. end markets. mid-single-digit Platts, and resilient

aggressive create growth above healthier Platts more a the guess per to upside customer some Does price oil or allow you through mentioned at the posture more $XX to You XXXX. you barrel base. And that the point? Thanks. I remain forecast mid-single-digit to even for an take out growth break potentially of on opportunities

Ewout Steenbergen

about little pricing, future let moment. of Platts and don't this within but talk Jeff, give at a me we we color bit Again, what a are perspective you of seeing

As you the revenue mentioned, very during quarter. healthy development

GTS this hedging a go But the basis back quarters the the Global the a little But of programs think little because was, growing X%, at than you year, bit the if understandable is quarter ETDs stand-alone on in really are is fact, Services. of business. a GTS within last When higher the look that subscription a recurring in to helping in there's business, the Trading the was And index perspective, happening. three hedge held up. quarter markets volatility, by about first If the Services part, was that the show last the of of Global it a bit you lot trading, elevated lot similar it Trading part revenues itself. to

we that, just year forward. ago that one It's high. nothing So as perspective our at was we so going comp think GTS be from look wouldn't helpful the that that

the building So in at all-in-all, we mid-XXs, that of The percent The up that. it rates if you ACV put retention together, like healthy level X-ish the activity. at developments, moment. that good see business, is good commercial book and subscription is well. We

as terms business revenue growth. mid-single given the the definitely are outlook on of Platts digits outlook of the health overall, we this is commodities overall, for So incrementally, in where positive But well. the of this customer are year and markets base the for

Jeff Meuler

Thank Understood. you.

Operator

question. for you your Thank

question is Silber Capital Jeff Our Markets. from with BMO next

Your line is open, sir.

Unidentified Analyst

in This Hey. is Jeff. Good for Ryan morning. filling

know need so, Thank to issuance the quick Just what question. any And boom quarter? the was you debt first your the in if frenzy had Did revenue a contribution the you. debt? issue incremental of SPAC do create to ratings or SPAC

Ewout Steenbergen

morning, Ryan. Good

multiple If you definitely think for business. helpful levels the ratings about SPAC activity, is that at

as help well. Ratings helpful help with it lead can Services can fees. new ultimately And with entity it to and First, will then Evaluation it that new Then issuance, ratings is activity. thirdly,

element activity help think levels. market and will an at different overall M&A definitely good of we important SPAC overall the and multiple the is ratings So

Unidentified Analyst

you. Thank

Doug Peterson

you. Thank

Ewout Steenbergen

Thanks, Ryan.

Operator

you. Thank

question Sokel next Our is with from Judah JPMorgan.

open. is line Your

Judah Sokel

Hi. Good morning. Thank you.

revenues ESG of the possible in mentioned that is reflect million that is and there You it your products to quarter. level just that reinforcing initiatives. not revenue the that might $XX about some that was number does value $XX are other embedded total those think ESG I Or of products ESG number? of incremental million products, kind but necessarily services necessarily driving be or unpacked revenues of trying in increasing, in

Ewout Steenbergen

you built, all is pretty of contained definitions on as now Markit overall of company S&P of energy not. also touches because today the insight future -- the perspective. the the complete parts have have the is horizontal IHS a actually And being different that across even heard, our great does driven respect organization We very on as a from ESG initiative it such be divisions. well and start by overall base. parts the as of what's We with we basis a what in we clear have in an think revenues have horizontal level Global actually think joining really are ESG an to helped We about that and should with a believe of think we the revenue terms it level of Obviously, it's of our so-called P&L we all being to on ESG transition and company. what

ESG So complete we're revenue north million a pretty in clearly comfortable number. XX% terms growth year-over-year is our that $XX of of this is base.

to have are the So mentioned you we past CAGR achievable. very still XX% still comfortable that that we in is

Judah Sokel

clear. Okay. is Great. No, just about other question Platts. really My that's

is which into, many maybe expanding, the some you've faster could out asset And talked classes potentially. is years which you. certainly from couple from worried other that for And guys I still you seems the You that diversifying about fast-growth peak growing that was it the broken the different away, oil, the that of be highlighted it's commodities not about from about being -- just quarter-after-quarter, a But just petroleum perspective, a petroleum. maybe the move thinking standpoint now you've decades potentially that all expanded another beyond other are you've than in shipping, for away it other past, area. petroleum of beneficial too

in cannibalizing it itself these that into classes, asset and that as growth market you. it area? So pick perhaps rate stay it could will or some up situation moves maybe in the is a Platts, other Thank the of your is same mid-single-digit just

Doug Peterson

change. be look for is XX, critical be is what what's It away. be of forecast on benchmark, commodity peak the the to is away. still think that there as the to be People it could organization when place it that world say we be lot analytics, We energy X, XX is the climate bit us people we of types just you of research, used transportation services most The described. while sometimes that, around years for thanks, way relevant we at about and Well, a commodities programs going believe Judah. XX, some The manufacturing, oil going to that news But solutions. even different cetera. are little at taking transition in et and and that's oil a today for will of depends that look a

of one ESG we've reasons and invested in that's our So products services. the

We're We at at grids. also power renewable look looking energy, power at generation.

us We've agriculture. As also and expanded time, heard mining. over you've metals into we've at looked

that this. to think aspects there's two we So

we the rapidly there of have diversification, generally then time. to them that speaking, of that spaces energy pricing, moving very of into all transition to like aggressively gap happen of carbon opportunities and needs and the the be registries, the climate what's will going carbon in and And hydrogen, etcetera. filling in commodities commodity us is second And the expertise is One hope classes. the over of the that, taking brings expanding we growth that other and

of on all growth ESG. filling angles related it's space then same for It's opportunities the So of the to the the way. and kind it's two different horizontally,

Judah Sokel

you. perfect. Okay, Thank

Operator

Thank your question. you for

is [ph] from next with Bank. Tiluca question Deutsche Our Samir

Your line is open.

Unidentified Analyst

the taking an two for just question. thanks of my in technology be Hi, that's integrating going the I involved scale companies. get the technology all idea program transformation across wanted to programs of to the

of of way to wondering compare Global teams it you've tracking platform that or sense and does there's S&P of terms number just terms get initiative on? how scale I'm any projects it in if a the of in in quantify So how with that you're been working to

Doug Peterson

Samir, is there When technology categories. our a emphasis you, call. joining you IHS on look for the major overall thank with transition, integration the for few and there's different a program at Markit, Well,

are is services, what of first service start communication relates our just major desktops, do to The rails, we pure who I with providers that of run our of how would infrastructure, our our our cloud.

provides that. run that program have at Global, and -- put know, four last our years, business. a program as we what data business is that that there's program so the us and the at we around S&P cloud along take we're way a of same And the also over a place look to centralized And And bring everything you centers, transformation and together. has IHS take able learning in on and the Markit our all of very to manage that all our way to done quickly

is services relates a on and experience working data and an customers, in take client There's Market technology of those work we very similar how we're are teams, the where service we Market how merger organizations approach, Desktop; going to and the products going work delivering that's to Intelligence looking of and to aspect the teams, use and a example, second within have division. where how Financial divisions; you the those client at workflow how services And like Services as to development Intelligence/CapIQ that we are together. you the of whole the teams. the which The around businesses, set have has and the the we Desktop, use IHS streams Markit

risk of sciences well processing, risk. any operate is and as ensuring cyber highest that that's on an third work standards And that fourth compliance, work whole etcetera. sort at management, we cyber of ahead and So then have. relate that risk. then have language attitude set streams another we to streams risk the a of absolutely And natural intelligence, control and artificial the the always and data ensuring we aligned as of policies we're And

at track Global has And which at about and had Kensho, IHS most have teams organization years now sciences joined on able right well, to of technology. about And that have this And ways three community also call. is data fantastic S&P has been sciences S&P what as modern data record Global. to all a you the that We achieve as strong been we Kensho businesses, approach talked unprecedented. the so NERD they've across they really they do Markit, as think really the But a data and ago. about know, lake, have we to thinking running

large of is overall. in working this across teams business our work the can also processing. and of technology, global our advantage have large global natural really our can language of together take of all we of scale we of scale and the scale learning, data advantages different of We of So machine take streams. think those working We science, one the parallel, advantage

most we're very of working This the be IHS important going of Markit. upsides excited. one so with And to is

Unidentified Analyst

just on of the in mean teams Great. been across two Thanks. data in interacting Any and together like flows companies? you the that. quick you've terms other. work I infrastructure or And months analytics with over things working each the come all between described have in follow-up a streams past five with you surprises

Doug Peterson

that or surprises, There positive from outside how of lot have But been high-quality other no their saw complementarity as understanding either surprises. or the many we products each quite areas that there major knew clients together, high-quality of there's the that competitors a or that people. are the work products complement some We seen think way products. – strong. that really, we've our the really There's are negative

that So there opportunities. we are some really, see really exciting

to we businesses be together together learn closes. to are to can We get the waiting transaction all more able once about the after operate

It's in about excited we for particular, our and -- surprises people. year in initiative we're close on all the smooth I this so that have a transaction. important more strategic the is all as this. us, the we so earlier, very most and get said excited And to areas smooth integration this more excited learn just more the we're And we are learn and about a

me up the wrap you let if mind, don't So call.

apologize earlier another of we for call. I to some want sound First oh, of glitches do on had have have all, those question. still – another – It something that we we the was

that. about Sorry

Operator

Thank you.

will Rosenbaum from with Our Shlomo come question Stifel. last

open. is line Your

Shlomo Rosenbaum

to a going from just before. make It's on Hi. in. something piggyback Thank very squeezing quick. it you Doug, me for question I'm

been of ready real a should market to material market legislation for to going pipe if waiting make of of step wings because impact that some and in it do come the have there impact? markets material corporates anything of expect SPAC the US you kind that, are or valuations the terms and any have on that not the in should and Thanks. the down, ratings. or they be issuance, slowdown in for we the freezing because we in a would importance think of its see either or that's of If issuance, Just in like SPAC

Doug Peterson

impact. there be material think would don't I Yeah. a

and we a are people We've staffing got strong. team – like our our keep to is We model ready. we've – got team, quite

have have the something have you market that every goes just done watching means recall addition, with formalized randomly. always that ensure surveillance. In we of carefully. around always activity we time, we're time that quite that's that along that do over not we rating, a we certain programs to surveillance which rating a It's level And

team. that would I strong lose a that So staffing to don't We all we think we expertise have. have want very

Shlomo Rosenbaum

Okay. Thank you.

Doug Peterson

Okay. way. call. I you, some the that glitches me Well, want Well, Shlomo. thank let the wrap-up for along happened apologize sound to again, And

wave Ewout We're have and said, get to with I quarter some I pandemic pleased able about I performance very to our continue of point. to the our very We've where fixed at India, where like unparalleled They our with show group countries a importantly, commitment things that this started employees. ESG, IHS those But China, we were think and hits prospects third to about times, difficult about very the Markit. one strategic back an for want our especially talked merger as go we the of the of people. large during initiatives.

the you want we want I joined of all all your support. And Again, call to to of much. today you for who our very thank thank also thank employees. So

Operator

Global, telephone the Global's you of will morning's and audio version with for wish That great The thank call available available be concludes a S&P The PDF slides on you be we Replays will behalf one participating replay slides presenter's for On call. in two for maintained is of this A website downloading S&P day. maintained about hours. investor.spglobal.com. from be month. year. now webcast for entire and one will audio-only the of

S&P Global (SPGI) 29 Apr 212021 Q1 Earnings call transcript