Earnings call transcript Q2 2023

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Operator

Good morning, and welcome to S&P Global's Second Quarter 2023 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. To access the webcast and slides, go to investor.spglobal.com. Instructions] [Operator

like Relations Mark you for now President Senior may introduce Investor of S&P to would Grant, Mr. Vice begin. I Global. Sir,

Mark Grant

Global Executive call. and quarter and are Chief morning, thank and for and President today’s Good Ewout Chief Officer; Steenbergen, Officer. you Doug Peterson, XXXX President on Presenting S&P earnings Executive today’s Vice call joining second Financial

Edouard Mobility. today’s Q&A we will by portion joined Global S&P of call, Tavernier, the of For be President also

results our earlier issued a with We release today. press

we and addition, our deck a with additional slide In have supplemental guidance. posted information on results

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

of discussed meaning estimates and XXXX, statements The today's Any may call descriptions within of in future of based are contain and Securities the cause Private events. from forward-looking statements statements. Act these including economic expectations matters the that subject results such forward-looking to projections, current conference results Reform to are current may and differ materially uncertainties Litigation in actual and conditions on anticipated risks

Additional and Commission. be Forms our in and filed uncertainties U.S. and information XX-Q risks found XX-K with Exchange can the these concerning Securities

business we're earnings make the information accordance with measures. the during and of the corresponds reconciliations as The and today's supplemental conference non-GAAP and from performance between financial investors the operating that This management. calculated earnings GAAP perspective GAAP view company's non-GAAP In financial contain company's adjusted meaningful same in the contains such deck to information. the is and we’re non-GAAP release call, to the release earnings providing measures enable release to of provided providing to comparisons and periods measures

more We're that specific Any legislation potential to better media S&P the of or company. attention on of investor understand to on to who we European or with the Global aware ownership obtain I would some has call of contact should representatives the Relations call. us your X% and also Investor regulation. like expects to impact investor have a this the

intended from we for contact is release. relations be However, found questions team investors, this directed ask that be would can media the and in information call to our whose media the

turn At to this over to like I Peterson. Doug? call Doug the would time,

Douglas Peterson

Mark. you, Thank

we quarter's to metrics noted explicitly the refer we'll highlights, this look unless As you metrics to at that want discussing non-GAAP remind I be adjusted financial the today otherwise.

to while the growth in all growth pleased in acceleration Commodity in excluding high second in impact saw periods. Intelligence, Mobility. revenue report X% digits growth the in remained quarter, for and single revenue the Engineering of We Indices, and both Market We're Ratings Solutions Insights

second decisive and As to a you protect of operating beginning lapping will margins modest recall, adjusted year year-over-year. we in margins those the actions quarter to in took led action contraction last

prudently to growth quarter. on delivering Our capital double-digit per in adjusted earnings allocation drive and profitable combined continued focus growth our managing share this

revenue well positive in expect year, the double-digit divisions all for of growth EPS growth. as We continued adjusted remainder as

long-term innovation. strong to we financial focused on strategy our addition emphasis with on executing In remain an results,

the guiding about We behind already in moment, we more programs. in a principles and of We'll initiatives number but drive continue a advancement AI AI rapid initiatives. our internal our to pilot talk strategy have

it's testing. launch conversational IQ assistant get on but to for of say called we Labs closer example ChatIQ Pro more AI we a May, deploy will technology the in across to ChatIQ external as S&P internal how to formal Kensho first customers, Additionally, launched Capital Global. have LLM-based about We'll a

the conversations developments in of largest very in private also our excited with about the participants the markets. We're some

here We'll can many work have across and customers. ratings, dialogue credit share apply ways We're as the analytics we opportunities. as We currently this pricing have commercial equity an and productive that dialogue in to develops our credit into well active and private to markets. with together exploring expertise more incredibly specifics private

modest signs the some which encouraging early, the of our macro a to leads seeing environment, but macro in to financial outlook, guidance. improvement stabilization We're helping inform

our we Engineering second Solutions the of business, of completed Lastly, illustrating in the to the divestiture stewardship commitment disciplined quarter.

five our align to goals continue and operations Investor We against Day. at we pillars strategic the introduced

spending. I and of an the update we to the believe we've on which couple We've cycle, of sales First, quarters mentioned some last want was from by what sensitivity provide driven customers. lengthening that customer our seeing we're hearing over around seen

contracts, cross-sell close. longer larger to which are Our take efforts also creating

been longer While sales we've normal, bit some customer constructive. started cycles remain see very have than a and conversations to stabilization

rates our five retention high the subscription continue by X% evidenced customer growth We in see divisions. and contract expansions, across to revenue

growth the our value by macro are and in brands saw priorities of recognized key markets challenging our transition rely customers private environment. being we are in and and markets, in confusing the transition well-known largest of the evidenced we is that This benchmarks is that Commodity division same in on second our those also XX% revenue sometimes quarter. in namely strategic and most energy The energy the emphasizing a AI. products, Insights many climate, Customers

interest ever hard long-term As uncertainty to trust, navigate of and they the more We've us. been they technology, rates, as build company. hear and customers growth in with as S&P trust a rapidly to do evolving we we've want we're the worked confident market geopolitical and Global with higher that

signs returned to quarter. global interest rates banks. second issuance Ratings, central began some positive see among We to growth, Related year-over-year increasing of X% the stabilizing to billed in

our remainder closely. more issuers activity driven of or one banks XXXX. Overall, also major we see over the of a economists, some conditions States, rate in proportion central likely the higher event saw including tracking ahead the While issuance in more hikes quarter from refinancing only market two events second expecting debt we're ceiling did United own, of issuance seeing the with

those frequent expect to of of market more issuance We new pockets longer. normal higher the become the adjusts as to for

investment yield with off grade structured the issuance strength is is a high increasing softer bank This in finance. pleased offset somewhat of for comparison. environment saw high very corporate low coming the and though both We're notably by loans a issuance strength year-over-year, yield growth we and with

this churn strength of of an ratings, measure year. brand a are the environment. the down are which and increasing uncertain in in rating illustrates withdrawals, credit rating a the S&P That of value Importantly,

Next, have significant Customers IQ have analytics displacements Capital positive shown Capital focus positioning. The reaction Pro the on an and to grow and Pro. features as release enhanced to loan and key IQ of enhancements pricing of on well. priority launched of competitive new to strategic competitive already And the I'd our updates contributed our innovate. like these incredibly to reinvented Pro on most and enhancements completely June one was IQ We largest Capital and RatingsDirect in years. and

Commodity as rates years. Insights, base sector's first In expect pricing. fuel we the is alternative significant significantly offering the of shipping in use fuels also maritime grow liquid coming the This we alternative natural including to launched of gas incorporating

and asset, Our assessing greater specific investor applied new level, nature biodiversity data dependency SustainableX both and company operations. which related across a on and assessment risk dependencies can quantify gives nature across launched impacts be and location ability a customers impact team our company's and ecosystems. portfolio to the set, This the corporate

new demonstrating our or As revenue. the revenue from steady Vitality XX% consists revenue the derived the Vitality at held different we last metric Vitality organization. revenue to innovation our clearly spans second four in growth quarter, our quarter came the that entire We're our impressed substantially contributors quarter, and that I'm top four from pleased of introduced enhanced divisions, products. both revenue in commitment that and total pleased to

the and artificial everyone's that to testing on that use and use know teams a topic mind, guiding on the will AI, We're thrilled cases implementing Turning I intelligence. products. made key the that building, both is provide advantages govern and our color implementation within some tools internally Global's in principles now of wanted the have across to I our organization. with progress S&P our and various

advantage in S&P isn't While Kensho us only as datasets The truly Global well. our and arena, one. advantage differentiated, large, remarkable a an gives for we it have, create proprietary this incredible

through providers based that and in brands, to know and with come trusted partners, will the with our also us market any to infrastructure AI known are success brands conversations coming Our that technology in customers role huge trusted, a allow credibility. of and have play years. products We, the trust industry we

As advances make of to technological we need era, discipline. the and embrace sure more we our prudence fully do we so with

develop necessary we customer value driven AI take want with a exists. creating tools, Particularly technology the to step investment on focus given to tools simply because each rather the creating keen than

in new based projects We necessary confidence on our impact strategic on capital the will and the company. financial to allocate these the

within elsewhere engaged was a divisions of leverage is within deeply AI to vendor dogmatic developed leading in in want sure aren't a regardless While we make partner. S&P it Global, come or whether research Kensho, or our at approach. developed We'll we technology via Kensho the

continue to practice our want and protecting of defending data. our we property aggressively and Lastly, intellectual

restrictions that safeguards in independently have embedded participation. our and cannot contracts data and consent economic parties build without our products monetize commercial We our with or customers ensure our and third

and as And in shareholders, move ensure on we'll fast. updates the to place. provide take transparency and time success. to committed product with new investments regular our resources they We're our make launches necessary we'll We'll also

now how and to Shifting lead we inspire.

our Report During Annual and publication Report. quarter, and the to Impact demonstrated the commitment TCFD we through transparency Sustainability our of second further accountability

inclusive Diversity, build to highlighting Equity building more published so for Report, our equitable made also and efforts have We're respected we We a commitment the that company and have that recognized pursues a world. company time always annual organizations diverse, excellence. the that honored many first and our Inclusion to

for part I've see board Global. our our also can civic be on As and sustainability been of proud our more never governance and you slide, in we but just contributions. recognition S&P received to oversight efforts not this equality, and in

Of outcomes. course, and operational financial means on delivering leadership our disciplined ongoing

our Market the pleased quarter, revenue We accelerating are divisions with strong Indices. and Ratings in this the revenue including all quarter. across of Intelligence, growth all in saw divisions growth execution We in positive second

XX issuance year last our basis headwinds we to While contracted improve have that and this of the saw points through lap progress XX-month trend we through trailing year-over-year, we as margins expect year. most

we year of our the many see factors through year. business still of half remainder the macroeconomic the With impacting the same behind of us,

technical no expect end While longer expect markets. recession primarily economic in a from financial services slowdown, we an we do to headwinds globally, persist

different impact the We ways. in expect trends, to though parts near different can benefit of business to term continue secular volatility from

first for market unchanged consolidated the the the Day. in Investor divisions our While targets multi-year from we put confidence and are these financial expectations wanted to company half, at we reiterate mostly for out

we up full expectation. you one guidance X% tied point issuance the and for to XXXX, As billed to our to X% financial And for expect approximately now prior year, be our know, up Ratings issuance. results from are closely

in calls though group research forecast Ratings issuance, a slightly quarter. latest improved for Our last also decline global from market

from billed year driven sovereign with debt materially international differ reminder, and issuance. can a issuance divergence finance, As in unrated billed market which issuance public by declines this impact don't

the can our XXXX. trillion have XXXX over addition improvements study. nearly by gives years. of for the great And Ratings global environment S&P drive We XXXX optimism $XX in debt and completed maturing see you reasons through is maturing business Ratings. us assumed profitable over through in our of macro our Global the for few next years, the July confidence This, There trillion refinancing rated to in multiyear $X several over growth in next to ability one our

to is performance and Steenbergen, insights like our outlook. over Ewout? who to to financial now, provide turn into I'd Ewout the And additional call going

Ewout Steenbergen

Doug. you, Thank

to in explicitly The the second smaller growth refer As business. we'll today unless parts otherwise. that with the clear minor metrics our continue of the headwinds though pleased products, some discussing impact adjusted across of to the is performance the metrics a indicator secular reminder, quarter. tailwinds business non-GAAP drive financial largest noted financial that We're be

increased by of offset Adjusted count, of earnings X% reduction growth approximately basis compression. share per in a growth share by XX% fully was and points XXX driven X% revenue operating This margin diluted year-over-year. a combination partially

million X%. Excluding the approximately impact but from revenue been of growth year's periods, have all Engineering this acquisitions, in including Solutions would $XX tuck-in

quarter. growth across in all divisions, which quarter pickup by saw Ratings, in a issuance driven activity Revenue including the the remaining was

this a improvement. remain of quarter is row markets for debt challenging sequential in a environment the While the issuers, third

we and in with Indices acceleration continued mentioned, Doug and Market As Mobility. also revenue growth impressive saw growth across in Intelligence Insights Commodity

the more discuss through in detail Adjusted moment. expenses detail. also were a X% year-over-year, walk we'll will We more which in divisions up

energy growth and strategic Sustainability in physical transition to driven by energy revenue CI's and products XX% million $XX our risk to quarter, climate the increased and transition Turning products. initiatives.

set run. see the in away long will scores the higher Indices our data for which We buying growth continue from markets Trucost a from and purchases quality strong of to in Global towards many pure is customers and contribute will multiple And ESG the hear than commodity from shift appetite benefit across S&P We that competitors. consistently of to raw ESG our the data more offerings breadth we customer years. data, believe

are headwinds secular. transition currently That Even only the drivers important some in believe particularly energy revenue financial represents our in of revenue growth are these adverse temporary, United are the market seeing are strategic short-term digit the that and sustainability said, from single States have of sentiment, the large driver a out. growth is while space institutions total revenue, we it an low percent also long-term growth. our called of others though as signs impacting We in

and partnerships long-term investments make to to drive continue will We the necessary people, growth. product data, in development

million reiterate particularly XXXX to report transition. $XXX revenue U.S., confidently the in important long-term the sustainability a around continues to and regulatory continue quarterly products can from uncertainty longer landscape this on Given previous assess And climate, the political basis. we of evolve. no market as the will we contribution in energy for the metric potential target We'll the the and these

Private strong second representing in new from by $XXX for driven or growth through is Vitality solutions revenue private Ratings by by markets XX% $XXX generated across innovation quarter, private which declines in to the increase revenue. X% products offset Intelligence markets, prior of revenue, the revenue a organization, products compared enhanced million, year. the million in market to increased Market

quarter to synergies. synergies. of approximately be $XXX expect exiting and we our million And the annualized quarter of to cost recognized million due our second rate Now we savings rate turning expense was $XXX run run continue In the to XXXX, year-end $XXX to million.

million. progress and revenue million second on achieved well $XX annualized to with continue rate quarter as of run an $XX our synergies in make synergies We in the

impact $XX increased management million. to year-over-year was a million to Solutions Turning in proactive $XX as the adjusted Engineering last expenses lap beginning divestiture Total expense X% the taken favorable are by growth. saw of FX we the and quarter, We actions expense year. favorable from

We cost synergies last year. by million also approximately expense generated incremental $XX relative growth to that lowered

accruals done recall, were of business. was to second we predominantly will you last we in the the year. our incentive in for quarter facing, As lowered reflect Ratings This compensation headwinds

each quarter division fourth moderate impact compensation phasing of favorable. our Incentive our were in compensation meaningfully growth we quarter. year, the quarter. growth growth in will largest similar as we're quarter, in single comparison driver in to a becomes of compensation the though Incentive impact incentive expenses the increase beginning contributor this seeing resets year-over-year well. expense compensation and expect natural commissions be expense second expect key each as The and quarterly the so in to incentive fourth driver a more of the quarter expense those see growth the to in the quarter third was of same of the margin divisions, of expense results third reset in the The year-over-year and we

was the we and this growth making people, within full fund AI long-term importantly, quarter. strategic development divisions. investment to and are adjusted Kensho the are we to of we growth, basis for the to expansion to points XXX expect year. operating initiatives, at investments drive Lastly, in reflected we incremental approximately our margin investments XX that represents continue to Most continue Core the as cloud making well invest

strong in advisory and Data rates high Renewal based RatingsXpress in and sales. strong this revenue for Intelligence analytics. as solutions strong driven Now, as growth remained from data was solutions XXs. let's revenue the both quarter, enterprise solutions. well modest quarter X% to turn ACV advisory strong results. Credit solutions and in growth and the by the products, see solutions second solid as increased the some mid RatingsDirect growth and credit in sales continues risk growth benefited non-recurring subscription offerings. in in though by grew offset division Desktop new in double-digit Market subscription to and softness X% growth outpaced enterprise by driven to

margin Adjusted basis improved increased XX to points. a X% Operating the basis, profit basis drivers trailing decreased XX-month operating XX.X%. to X%, increased points previously due and XXX the expenses year-over-year margins to discussed. On

we progress capital get to we easier depend mentioned Solutions quarter, we expect as And those through Enterprise improvements As markets know activity. in we on last the within products comparisons continue will that year. the

We the back the we our of also low results expect not range. of see positively We're April, revenue synergies impacting to back at the guidance that modestly previous begin quarter, come in in year. half deterioration elevated Last the may risk since signaled though to half. trying do we to signal end we

uncertainty, we're points formal this particularly point heightened on transition, by the energy the XX sustainability at guidance the margin. to within Given revenue operating and step modestly and lower taking basis

saw row in is increased in and Now a up. a fees transaction declines due turning activity, quarter, tempered in continued month in In May, from high investment grade annual and by to particularly increased of quarter This to a improvement the which third and year-over-year. ICR though Revenue second Non-transaction for in in important primarily CRISIL, X% a spike we activity sequential revenue, the pick yield we X% saw Ratings. growth non-transaction revenue. perspective growth revenue was markets. marks debt issuance seasonality very

point XX%. operating Adjusted X% in by still year's impacted expenses are and margins XXX profit XX-month to operating a basis, a increase trailing This last decrease margin increased declines. basis XX.X%. resulted in revenue in a On

to first for the increase trends X% billed our range the expect issuance raised in of issuance in issuance XXXX reflecting the We half. stronger assumption and X%, to

Ratings ICR now expect revenue non-transaction one due our Our is to this revenue guidance improved Ratings anticipated. result a The to offset the revenue though greater somewhat, and we growth year transaction initially X% of range we for has full outlook revenue increase in point weakness by X%. than net is for of in some

While guidance. year, we through as are growth margin expense expect progress we our to the moderate reiterating

And by Revenue energy Commodity Upstream now double-digit growth tempered declines X% growth increased and Insights. business. year-over-year. assessments driven in Growth data by somewhat and and resources approximately data turning declined was to both insights. and price upstream the insights in X%

While subscription recurring products. as is one-time sales we in we on have positive, higher growth focus quality deprioritized ACV upstream revenue

year compared previous full resources strong by As and and XX% slightly year energy and for business expect growth. respectively and compared XX%, for insights are that fuels single Advisory flat assessments the services to refining to digit business conference our to be the momentum driven our line prior products data now and global and upstream and in and across strength strong and grew down modestly XX% the we performance low lowering subscription such, full in quarter. expectations year Price to expectation both in revenue and transaction for for revenue also performance oil in by trading lines. driven in products crude commercial strong grew

Adjusted improved and our CI markets. enjoy insights, We expenses basis for to profit improved a points. XX.X%. commodity the XXX see stronger we XX%, in operating have trends and increased XXX data position and increased X%. for XX-month points Trailing Operating margins benchmarks, margin basis trust of

We continue and half, through second the strong no our is for change or revenue growth to outlook margins. subscription to expect there

by the XX% price benefit activity the life elevated Financials business financials in increased environment favorable volumes continued in pricing of year-over-year the store Mobility increased division, healthy our quarter. increases in year-over-year and contribution the see by the last as new line In car driven Dealer business lines. continued Market within growth, to solutions. grew within last Manufacturing CARFAX and to segment Dealer revenue revenue strength and other and year-over-year products. strong the marketing underwriting CARFAX, continues and similar XX% growth Scan year from increased new driven business used underwriting volumes a in for subscription X% recall driven and X% by other particularly continued and

basis year-over-year. to in adjusted to margin to Adjusted acquisition. Trailing from XXX discussed This inorganic have points. previously, basis margins increase contraction the XX-month Scan contracted XX expenses the points but Market also of due primarily I a expenses and contribution increased XX% drivers operating operating the resulted X% in profit due

for the to basis margins our the we points modestly to XXXX. it unchanged. we noted expect Scan to guidance we And acquisition revenue be last approximately Market dilutive As for in growth year, is XXX adjusted the full of quarter, Mobility expect contribute full year though in

primarily a Turning volume data Revenue derivatives due Dow exchange asset-linked strong modest rated offset to in S&P Jones growth by Indices. subscriptions, to X%, partially and fees. decline increased in

into by year-over-year fees down offset ETF Asset-linked index modest were inflows. year-over-year primarily shift products, X% lower depreciation mix driven by and market partially net priced

or growth. decline revenue this by in year-over-year to and not contracts. all Data due subscriptions continued mix rated X% key XX% across contracts. Exchange concessions derivatives price trading renegotiated increased increased custom due shift, was on increased to strength end-of-day Importantly, volumes contract driven

expenses previously quarter, last high the XX% XX-month year's During decreased XX basis operating points. X%, Operating Indices basis margins year-over-year in decreased due and the from XXX profit discussed. watermark contracted increased Trailing reasons margin to have XX.X%. points to

role today's playing remain results, unpredictable mix depreciation, increasingly reflected inflows an revenue. asset-linked in AUM seen As of term. the in near important somewhat net in we've And market the fees is

new All is in reflected range. of higher guidance this our

well quarterly margins. As we long-term last our impact to the continued expense investments quarter, as growth phasing recognition will as our of of the timing mentioned drive

Indices in quarter. This XX.X% before us XX.X%. the the growth expense will moderates expect to well in deliver margins to expense growth within of ultimately range high higher quarter guidance as third the We new fourth allow relatively in

growth year. expect Now, We're let's of economic activity GDP the in calling though X.X% are lower-than-normal global move to for forecasting recession, remainder the of who economists from global longer latest a do our no views through XXXX. we

as averages the continue inflation expect oil banks above to remain crude like rates prices above target to of well. and We central historical energy

of our headline consider GAAP let's for guidance. performance our financial in to impact XXXX, guidance will This represents ultimately how turn we our As this all metrics. slide

and through our macroeconomic the well half results for market conditions. guidance company as reflects first as the environment Adjusted the most recent the on views

is basis for largely begun lower quarter. and expectations we've as signal full Market by Indices Our Intelligence is on year Ratings offset unchanged last outperformance in to a as slightly consolidated guidance

corporate and IR in posted expense, deck on provided the guidance rate have granular We supplemental amortization, deal related interest tax the site. unallocated expense to our

deck The illustrate revenue previously. in guidance that I drivers division, final this reflecting margin by our the slides and mentioned

to to revenue diluted we're second that the many headwinds their financial would We're our like and variables these. with the I adjusted the small from impacting looking people of With And are thank pleased the in talented colleagues by the relatively largest tailwinds conclusion, quarter, our business, markets. half both we're contributors strong results. for It strong with world the growth delivering In to drive to the EPS. takes our of double-digit the tend a particularly from impact in the at year. to while multiple transaction my results the Ratings forward tremendous markets, encouraged effort global results like fact to return around relentless to parts second power play deliver

I I the And President And over will back to S&P your call turn join Mobility, Edouard Global like to us. with that, Mark of questions. would Tavernier, to invite for

Mark Grant

Instructions] [Operator Ewout. you, Thank

take question. will our we Operator, now first

Operator

you. Thank

Our comes Markets. Capital first with RBC question from Ashish Sabadra

Your line open. is

Ashish Sabadra

Thanks my the color division Thanks. explicitly the you're reference you particular question. for could taking it, or where board. provide in the to I sales was a of prepared if was any across incremental seeing been there lengthening remarks, In were it's wondering you which cycle.

Douglas Peterson

didn't up pick please repeat you question. Doug. is product? all your or sorry, this I Can about specific question? talked You divisions for sales for the I'm cycle a Ashish,

Ashish Sabadra

that you been across of seeing division, more that, board? Has provide you're the Yeah. lengthening where or particular a just wondering could color on I about that Thanks. Doug. it Sorry sales on was focused the been has if cycle.

Douglas Peterson

we've given been in the environment, their There's about inflation, people at as be forward looking they're expenses. a difficult, They're last going especially managing where Got how we the which own interest services the an at quite deal not environment. and is have given financial the that of it. thinking flow. first Thank described looking lot you. area very management, cautiously rate are to in going the all, Well, that seen This quarter expense sector. people of

the stabilized of cycle, year So, we're is quarter second the of -- this seeing seeing although it quarter. but this first sales slowdown in in second in where seeing mainly this stabilize. it some started actually quarter, It did and we're quarter the in we now and the fourth

bringing you recall, taking We're us have renegotiate together multiple to also As bringing we because cases more longer with we're them some customers it's products. where our value.

takes consolidating sometimes a bit more. products consolidating and So, little contracts

let it he's on bit the Mobility what little But seeing he's in tell as in same since hand to Edouard call me over the a about the well sense. us sector

Edouard Tavernier

Thank you, And Ashish. Doug. hi,

So, elevated is slight sector retention rates. what rates to of cycle. really, Mobility the that a In described. normalization sales and couple softening year, of retention similar pertains seeing we has what And to trends lengthening Doug really sector, couple that see the the sense a kind of in the after we're in the slight quarters first did of of the a of of of years

we normalized. So, has at the They feel situation stabilized. this point,

new remain historical retention and business standards, of years past now Our stabilized. by less business you. rates very, couple slightly -- of very elevated than Thank strong the is momentum kind

Douglas Peterson

Thanks Ashish.

Operator

Thank you.

America. from Our Bank of Balsky, next comes question Heather

open. is line Your

Heather Balsky

for confidence you and targets. mid-term sustainability, your But about am that what you Thank the seeing. you some your on growth question. your in also Hi. long-term seeing that, the I was offsetting essentially, businesses. of the I earlier you you your target. And climate and call near-term the taking in my you talked talked pressure pulled curious, you're about for -- do the on reiterated gives area, pressure you of view see kind the sustainability you're given in in call, curious challenges

Ewout Steenbergen

call. all, Ewout. morning, to Welcome the first Good of This Heather. is

$XXX be clear away to from sustainability backing just We're the and not very about So, transition. target. energy million

from climate, short-term, around positive But are longer about political our actually the about very in some XXXX. timing the uncertainties climate not term But all grow drivers we can very to We mostly activities, XXX% see continue in do by that we're continued buy want -- of around some impacted that uncertainties, ESG. the that are secular see ESG we by Think side regulatory the on seeing are with continuing trends the of business. still these still those they respect because what to underlying our reconsidering Why? We we think certain there. currently to around landscape, hit We're products strength backing in sustainability. trends Because of well. to anymore are away we about transition, energy think the data, that, firms U.S. raw pocket all

and expect half the also point like this sustainability energy reacceleration year. of I revenues in we a to second of our would that out transition growth

will come year. half medium and of for And we're the back positive the growth in very and So, long-term. second optimistic about outlook this still the

Douglas Peterson

Thanks Heather.

Operator

you. Thank

Our with comes Seth next Wells Fargo question from Securities. Weber

line open. is Your

Seth Weber

Hi. you But specifically? to Ratings, year morning. Thanks higher of the you. addressed headwinds a there. operating down Ratings Thank some taking expense going about for came with wanted up. -- about you for in to confidence the the short-term to get margin talk of of business, business know just half which bit I in I revenue the the Good Ratings little margins can your more the ramp back through the ask question. kind

Ewout Steenbergen

morning, Yeah. Good Seth.

to company the the seeing of that let company we based both our we the across of in I exactly said me year, strong in the for Last the expectations, reset accrual second all, quarter a a Ratings change incentive to compensation this the and this we The explain board, compensation development margin for performance the respect last that's think the case. Ratings. well. this same whole, are of are year. long-term compared with expense but the line performance incentive with what for for why First also And also in the is we now the in of as And strong resetting business compensation incentive accruals. Ratings, large in the for year Ratings the on and short-term quarter, saw as

overall about So, outlook. long-term and are very positive the we and medium perspective

are XX at year our for for know, from And we're targets have look we If where XX.X. you We're IR a XX. XX. you XX-month at then perspective and XXXX trailing Ratings, to to as XX this for XXXX, margin guiding we to

improvement Ratings margin next of over strong So, few you the will continue periods. to see

Douglas Peterson

Thanks and Seth, welcome.

Operator

Thank you.

from Barclays. with next Our question Manav comes Patnaik

open. Your line is

Manav Patnaik

a the about? the sustainability morning. Did hear I you like, you just right because want guess, by revenue. most curious the weakness are on in guess, I you that's Doug, the was mainly by or I'm talked in area? Market I things And financial mentioned this up services XX -- that to be guessing that in that of exposed saying of end all Intelligence and In I Intelligence. Market was guess, you to vendor points. kinds of trends, market. of spite basis your just those period, lowered there trends consolidation the here focus winner Good most what's pick Hi. I I any, strategy in

Ewout Steenbergen

morning, Good Manav.

business Where sustainability would the in and performing is business are we exactly same reason had we the the where only range moment call do respect to energy at right. The the short-term are around is when be line making absolutely with this with change our expectations. the last uncertainty the we April. with You're why with business thought has we place transition. to guidance And in the

around you give a little color more to it. So, bit

Intelligence, see of good. Retention brought good. launches Market key lot of Market a some of the new bringing product rates growth being good. is are at -- look are drivers growth the User market to ACV good. is We Closing you by If rates Intelligence.

in fully we will the and particularly two hit targets of segment potential end the the companies Investor business a have Market Intelligence. is very that we are day, At believe good we very our and commercial the of Market to expect respect for shape. the potential together the Day it to overall, about Intelligence, combining excited with So, growth, in

Douglas Peterson

Manav. Thanks

Operator

Thank you.

with Stanley. Our Kaplan Morgan next Toni comes from question

open. line is Your

Toni Kaplan

back Wanted the revenue streams. sustainability so go to Thanks to much.

understand shift moat You that data. implications. ratings data the pricing scores when are to or also, better wanted mentioned by I if to the from seeing is either build a that customers? not harder being to it demanded scores has And it's

other know you data ESG Thanks. I how advantage. proprietary where and within is could very maybe talk you then And quality. Trucost brands high an have it’s Maybe about

Douglas Peterson

Thank Toni. you,

deliver ESG, about But Let around I've been Australia. traveling what regulators regulating continent -- except and The in their I've accountability energy one this in the Africa about I've sustainability, or bit investors shift the models and on are in lot. climate, longer little a But think before. no on on a analysis And on on world. in on me who own conversation and we climate up. market. own decision the their their views change whoever is second bottom about going I step single traveling for way talk also on just This make been where And world, energy They I've and them the money score. it's to a and they're moving you their just a transition. we're based take a have depending been regulators been opinion mind. I've have, had in building blindly U.S. the hearing to every year. faster, transition. talk been from their and in back been want either based every it than own everyone's And maybe slower a that want investors there's managing is the to

quarter So, -- think taking information when market, Trucost XX, last kind then you XX, grew had it. which of series place in XX%. that has bring years. data the you back shift that we XX We've on the time goes about

is climate grew that Our climate people using risk, that service, are which and modeling change for XX%. something physical

demand. and or -- we So, high of really we're growth I in that some seeing are that them, high services proprietary modeling these call have data

That a As grew quarter. with credit you over model Oliver the second know, Wyman. XX% we also analytics built climate in

see to can one on They no need so, just the and decisions across themselves that data we single rely And have longer people input. they to globe the starting data. are make

years bought by and who have the the that bit XX Dow products, over ago. a think I over give head having little So, which mobility great We ago. sector. start Jones can Trucost color years of had we seven let started it Edouard, automotive for also to S&P Sustainability hand a me And

Edouard Tavernier

couple opportunities in and was SX. Mobility, part about S&P as good Hi, with talking examples Doug actually what Global of partnership in of Toni. of A now we're able unlock to

able launched supply the example. automotive sector Climanomics our were e-version As Doug within on mentioned, to platform. June feed which Climanomics, where sector, of for all automotive risk physical data chain assesses we Climanomics, That's [ph] we one in the

the carbon one, And of have accounting data proprietary for is as record to to chain set vehicles question in The emissions actually, accounting data bigger Mobility become of opportunity the are building for the you the mark the key industry. the sector. we road of automotive, know, pertaining a on now is our X automotive battery. the and this space, a with unique In sort carbon data upstream supply we Scope

really expertise of couple examples here a raw and some how data unique our can So, with products. about itself create combined defensible SX

Douglas Peterson

Toni. Thanks

Operator

Thank you.

next comes George Goldman with Sachs. question Our Tong from

line open. is Your

George Tong

Hi. Thanks. Good morning.

for revenue Commodity Can oil the a in growth and the in talk Commodity You business? of What parts are prices? revenue for outlook the various the maintained pullback about sensitivity takes year. you your Insights of puts to full the Insights

Douglas Peterson

or and interest prices, really And of a would lot into actually it starts the Thanks George. happens. oil thing about to get to to is before the needs a of what talked over to Commodity in the very sensitivity gas. similarly, growth the we've price seeing important the business same Well, and like the and Insights low we're to XXs. It oil of not as many oil What sensitivity $XXX creating is market over outside get years, XXs lot industry. the XXs the be of below actually well

know, energy sustainability products, of Commodity a set Insights. transition you climate we products and have within large change As

business research We E&R a taking what done the product and in This interest lot analytics. where and sets of is from growth and IHS with Platts old Markit. adding benchmarks and from also lot the we've terms see in of of prices forecasting combining you're the in

see a doing. what in interest of So, lot we're we

asking on more. better capabilities, combined charting intelligence are two top ability layering tools, one or customers and platforms that artificial We've And tools, better more of products Our our to multiple simply. use analytical solutions. we're for them vision, taken into

need that the board, happening energy the to market. need seeing in across understand So, our clients we're more about more. what's They

to drops oil sensitivity the gets oil really, expensive. lot of a until really the price the kick-in price So, doesn't really or

George. Thanks

Operator

Thank you.

Deutsche Our with next question Bank. comes Faiza from Alwy

is open. Your line

Faiza Alwy

ask Thank morning. you. couple there. Good Index Hi. of wanted questions to about I and Yes. business the a

First, I how sense to half year. revenues in get in thinking ETD of you're your the what wanted assuming the about of you're AUM and back of terms

a previously significant pretty think decline. had I talked you about

curious if that's So, still the case.

going related you is, perspective around what's us last a associated on And Give mix the a there. bit you. then AUM question just about the fees Thank revenues. talked that impact with on more

Ewout Steenbergen

Faiza. in three combine me Absolutely, And of your one let answer. all questions

healthy all, seeing the of very So, first is business flows.

equity U.S. We strong flows very have billion. $XX seen at

at also quarter. the We $X.X solid seen very have was flows for That fixed income billion.

over think business the last around weeks couple sentiments really of have positive is the impact the we overall markets So, positive seeing from and seen we the months.

first. that's So,

positive of the place, at the first this in the but to ETD for at level assumed a respect with have year were And we from volumes the volumes, depreciation of have June looking further year. remain from we half assumptions, ETDs market remainder -- onwards. have coming no in terms the for we Then that we down outlook the of XX also where assumed our slightly

like AUM would where up overall compared at point last XX% to we quarter were perspective, ended year. the from the of also we're look the you about of the if at we where an end point I out second to that quarter

the certainly, of the for year half starting very So, this strong. point second is

of is look at flows versus some be you products mix to products. yeah, always If certain other mix, to there in going kind a

that well. We normalize the have seen over time. will in That past as normally

as So, of correlation AUM long-term growth believe we for that key a seasonality. and a we driver think to fees that perspective, the flow medium But between due overall this noise AUM is is a levels there from more business. short-term still

could time for words, second the the a if you the outlook all of business. for that row happy of for we year Index in together, the business the guidance the and remaining about combine other optimistic in we're trends Index So, raise very we're these for very the

Douglas Peterson

Faiza. Thanks

Operator

Thank you.

Alex from Kramm UBS. next Our question comes with

Your is line open.

Alex Kramm

Yes. Hi. Good everyone. morning,

Just wanted to to Intelligence back Market guidance. the come

that sure the think anything. really I lowering but officially, not to signal that made comment, what and means. not hopefully, I'm here this not you trying I'm misquoting guide you're

So, bit. a maybe flesh can out you little it

You quarter, last the end to low talked X.X.

you're still very wide. the leaving Now, range, lowering but you're it

than So, what theoretically, the you mid-point higher said is actually before.

margin just Thanks. has maybe say then of maybe the like what just anything, well. guide out help kind if of as flesh us and So, the changed,

Ewout Steenbergen

Happy clarify to that, Alex.

So, before line performing is we quarter all aspects ago. the business a expectations what in the what I've said had with in is think we

see moment. we to it thought don't respect deterioration we what sales would is it and growth, exactly see any So, And this where and Intelligence. cycles of in lines the we with be the at Market retention on, levels, business, in to so business see also this ACV would exactly the we at expect underlying time actually point within of any book

stream we as But guidance is change said, this bit actually we transition, really Intelligence. at point uncertainty we time. the optimistic guidance to particularly guidance this the pointing have just any And point highlighted ESG in we are here. in We're the not to But Market during outlook the part positive We're lowering deliberately range. there about call, are have the of in and about the is of a Intelligence revenue as energy for prudent scores Market order sustainability and here a business.

lot underneath me just and another I've positive those couple capabilities before. that. trends We of But see let mentioned of of the working. examples The give combination a the business of is

services We products the new with of Intelligence of of vendors respect and a of see and with We realization trends IHS Market benefit in should pickup one seeing also in that slight of are that. value data in the of lot financial actually to we're we So, customers increased a combining beneficiaries and is pricing development consolidation from business. Markit.

Intelligence. trends around revenues many the and Market positive reason prudent, the that's things main near-term. sustainability really are in for that the just So, positive We're

Douglas Peterson

Alex. Thanks

Operator

you. Thank

from comes Jeff question Silber, next Capital Markets. Our BMO

open. line is Your

Jeff Silber

see operating but any it but still you adjusted ramp know expect back to not, the the how or there in impacting in sorry do And implies margins. I'm on issues, to that are guidance, lowered honing Intelligence, on steep slightly I that in the much. margin wanted so Are Thanks second pretty the of to if cuts acceleration margin half? year. keep Market focus a you half I timing this? cost

Ewout Steenbergen

question. you so that Thank much for Yes.

around Market several by in mentioned of You're incentive but also absolutely year. I right that compensation quite do with we segments of Intelligence, compensation seasonality our and in we that year. where way, in that last some saw the incentive in large other the has before to during And reason second quarter this a in the see pullback margins third

that year. we have is to what much the this quarter, going in are lap So, we But then end, easier in comps. fourth the

you data territory will perspective for a would that an single low year still point expecting give that for expense And end from the whole the are we just the to a this for that in as company a whole, expenses mean a as for company digit growth up company whole. as

the be reason is be growth So, low fourth quarter to going going margins in outcomes. to achieve And are order really the fourth expect the quarter there to that really that those you strong. for would in expense

next over margins XXXX. let of for me Market expansion trailing as to margin now XX-month also whole. expect of give XXX as in terms in And a company you're increase XX.X also, for of the the still the XX.X quarters from margin point the XX We year basis a data at to a looking two XX.X quite level a Intelligence, significant to range for a another expansion whole. company whole of for you points So,

other That's a for very the low. still quarter, depressed margins expenses divisions. fourth Market and that little expense strong the bit seasonality, you third overall but really the Intelligence quarter trend yeah, and So, should by expect

Douglas Peterson

Thank Jeff. you,

Operator

Thank you.

Nicholas William Blair. question Andrew comes from with next Our

open. line Your is

Unidentified Analyst

Andrew morning. segments. Good for Tom ask strategy your around Nicholas. in the for to about I was developing across AI, allocating question resources what and AI curious a is is wanted This Hi. capabilities [indiscernible] assist to potential I

could resources Given be S&P's extensive portfolio, it seems there. like stretched in

there is I take you. focusing where if was guys like AI, holistic a capability there you segments are Thank across segments you developing the or AI specific are wondering development. if universal more where So, approach

Douglas Peterson

we and go and investment around years started six in about to start, the I'm me when then what Ewout. We XX that seven which let the And And machine also or and another by in -- stool. tools. the made to is embracing It's to I so, now learning see not They back thinking there's playing making over like artificial future is future felt year It's and from and what and to which apparent been look that generative across the artificial Andrew, and to has in models five developed learning expertise years want hand that our intelligence we actually company now. are applying. right company. was AI. in ago Kensho that an We've different learning. we it for to going going go-to years generative a now, people then, then, that would models. be it's we us years -- like. decisions intelligence we last source assisted Kensho a just five the can could do the leg types what of become first are different from that period machine from be about and AI in

always we our have that a we're As remarks, you which customers. our in around AI, to saw is ensure thinking about governance prepared approach

it require models on then multiple way. to careful and you having that will in top of the be well data, And you as partnerships. whether of can at a about used sources internally management for of ensure as end up the solutions, you have that's the sources Kensho of from When or from look driven needs and AI methodology open externally you hybrid models or right other. it stack so displayed your multiple actually protect We divisions using that really developing types philosophy from each

all a third things And seeing IP. ensure then This could sure protect took the the that data one data. AI is step we're of part is governance and models. first that generative make We of we our when started to did to our we back our we our protecting

to Edouard some hand more Ewout company. then talk and a me of bit the it to the let But in about seeing over things over little we're

Ewout Steenbergen

scientists, world, really have accelerator of small the acceleration within opportunities the And Tom, to an a the but get really and technology one engineers, as our colleagues the Kensho, the that in that fields so excited all you many of of innovation together all specific the language a with on of data models order company. is company. which are have and areas have group, experts, we us in relatively is for things experts around around company. then AI And hand, one the have lot to bring a we data that because large generative those I'm bringing we about

think that cases best from So, that the a whole. sets biggest we be models. have are And that's data Kensho is for of for areas really the perspective, company readable are focusing on a and This actually, couple also technical token data a about large developing. as challenge. in collecting language the that will the But structuring important impact could the a use

years. last But that the of good for thing Kensho been kind has doing is work already the five

years. the for prioritize We how doing We the to years. five last last five this for know have to five We and the experience know with we're we that been AI working for benefits economic last have track years. how the

first experience So, we're this, of we this time with the this at moment. to invent not lot have for trying and a around dealing

the then we the also hand, crowdsourcing. have But other on

the to experimenting we many board. these are language So, collect for models other large initiatives of lot have across a initiatives colleagues of we data are that contributing kind and to

Edouard, a experimentation let over hand development and on it lot me there's because of also great Mobility. in to So, going

Edouard Tavernier

with two you example I at our us recognize cloud said, we're technology, just scale as bring like earlier puts Doug. thinking forms stead to AI add to I Thank And experience a here. years, think the our to a I we but harness And you, in to there's technology new of good past what you, this one and new how in Ewout. have to change over AI. investment Thank Doug think, want said, step generative of up about innovating

familiarize solution And is July, them Earlier you. big so, with in already dozens of internal of the launched is do actually our to the bringing people Mobility technology. strategy hundreds seen tool which about we about enable we data to not solution. UI of and large need within three we learn We just And of about language this the to and think in day all upskill about kind learn as models, around we're of strengths sure governance great of that's we called learn and one of which this but over need organization, autopilot, example weeks use we technology. about do an make or what division. we what we developed we're two our within particular we we've how one every develop, our colleagues harnessing learn business past learning the organization, curation, cases ways Mobility, from Thank kind this And it. of the new a we do as

Operator

you. Thank

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

open. is line Your

Craig Huber

you the estate market. domino market, do commercial banking whole go I on worse you're hear about for could particularly issuance Good investment if kind real the hear about your for overly the year, loans. But things negative be And there, in of if can sector morning. to what's impact get of in there. on I'd some think Thank Ratings not to to concerned you. you. more going yield like financial out grade, bank you Thank much please, the for the if the just there sector, so into debt like CMBS what outlook continue is high effects

Douglas Peterson

Craig. Okay. Thanks

loans. on of as It me asked. just Let bank the generally a was the and X% including billed Overall, you was know, in market then issuance, you give last up couple the questions issuance you issuance color some into dig strong. quarter,

on we of Our and the that volatility lot -- loans is But weak a a bank lot quite issuance. of quarter. in the hand, saw, actually the other during lumpiness

Overall were was Europe, up was on et investment There were XX% CLOs then in other down the the the It the the hand, it grade globally up up markets U.S. up XX%. XX% structured was in in in But And Overall, characteristics was cetera. credit of corporates was U.S. some high XX% during overall, XX%. XX%, yield U.S. quarter. like up

that So, what's rates, do in et spread. inflation, markets, there's with cetera, to yield, what's to a ratings, lot uncertainty of happening interest lumpiness and with happening has with as

This XX a We rates lot by rates interest raised instability market morning, there's still raised So, yesterday the fed saw ECB interest out basis basis points. points. there. of XX the U.S. by

growth of cetera. looking some So, stability the rates, markets rates et spreads are for and

Now our X% for for previous issuance give backdrop, for rest the at a with We've quarter, of increased me that rest to range the the the X% the X%. to we before billed X%. of the range let what The was you is and the year actually a from that X% of year. of to have are forecast that couple last X% quarter

seen billed double-digit look to X% of expecting X% what the guidance we've mid we means it in and with to the look be just for So, that the expect the going issuance. range year for of it at the the rest gave, we're the if range the the growing the kind rest in we're of rest we for -- of improving throughout you you year. at what if And year, year,

of couple you. I with A the share areas can different

X%, team one see going year use summaries rest that to We than a know, the be at the X%. with to give they're down the and up corporates billed for XX% as for flat the issuance. or down much could then up that U.S. X%, of about X% with year, you could with inputs produces X%. be for finance XX%. between what research And a different down a a methodology X%. for range the of We As range of XX% of rest down the about our that down forward. see finance the to but as down forecasts and I public range Financial you of going It's the XX% billed issuance, range information services growing XX% Structured a year, Ratings with as about anyway. want

we're are using. factors that these So, the

see We mentioned these to we'll that cetera, think factors we are a improve, outcome. better inflation, expecting once like interest rates, that spreads, we I et starts as see

has as to to want we've seen. the it quarter, second was of low last saw is This market, again quarter I as We're we mention year one XXXX me incredibly levels the of the people lot large M&A of speaking what deals, a lending et loans for of -- quarter banks markets. in of market, with of of thing was been from came and I've weakest long M&A. quarter, to a It to bankers at there's outlook the expecting because beginning into the uncertainty the that their a last M&A but speaking driver market One pipeline they're weak. end told when levered as that second that that pretty year, waiting the conditions will the and pandemic we're that's this next some backlog halt. understand they're improve. M&A, big to the start when cetera. been yield the with seeing everything of expecting the a is They've of high for up as pick not happening first there's still doing that as big it's

Thanks the for Craig. thanks question. So,

Operator

you. Thank

Andrew with next comes JPMorgan. from Our Steinerman question

Your open. line is

Alexander Hess

on is Hi. Andrew Hess Steinerman. This Alex Yes. for

the about cadence of sort year. Just adjusted maybe wanted for expense to ask the

half look year? like to qualitatively out what You overall being Maybe Thanks helpful. went growth also, guys could then would flesh for year-on-year comp you that elevated all. investment more does be if and the spoke expense, compensation the what And maybe in that into very incentive of back core XQ.

Ewout Steenbergen

Alex. Thanks

relatively I with would And control. to generally, They expectations. overall expenses in year line under we growth are say expense like Just expect for the are modest. be the to full

let So, this. more color me you little give bit a around

key was the growth that this So, expense we compensation incentive in quarter the already discussed. of driver swing the a

coming also quarter, mentioned, fourth expenses it in As third see that the then create significantly we to the and expect quarter. elevated down in I will

hit that to in dollars on good I this declining targets be expenses think before, it's are trend. expect also margin as still year. for absolute our may at looking We a And overall I said to we're point that

expenses expense down is sequentially in the a we quarters row two second to absolute that seen quarter. actually, dollars, that now the in down. be So, quarter, our And our expect we relative will have third coming further

with line in much very expectations. So,

It's into bucket. that question what areas in growth a going the couple of about is bucket? the Your growth go

our first strategic The spend. is investment

that that So our budget to we million future to $XXX the invest growth. key some year for in is of initiatives have drive this

our cloud with AI The is for gen our second and cloud providers. usage developments we additional the buying that GPUs of also spend are for respect to the additional

And then the BAU the is that growth. third,

growth. So, for development that to for example, divisions. within costs additional have data these are BAU product about to we related purchase Think, our

go elements our see growth future in So, that into and an see the as that future the those for bucket. investment really expense. don't We an overall, businesses. we growth But as

Operator

Thank you.

Owen from Oppenheimer. comes question with next Our Lau

is open. line Your

Owen Lau

you question. morning. for good Thank taking Hey, my

to So, AI I have follow-up your strategy. a quick

please about large Kensho the a or One as partnered compared Thank of of you. to tech in-house such has the overall outsourcing S&P Why it Could in-house the competitors plus Microsoft. AI, an strategy? with firm? using you hybrid to and talk fits AI approach minus into

DouglasPeterson

new came also Marketplace same also which you can acquired which lot And also about tool, lot the to with we a AI, developing we recall, had markets experience And data, years. is when of isn't information started comment use right Marketplace. we We've something that. as how new few can not And been also up a that at been now. last Yeah. we we strategy as thinking datasets. and use ideas. tool Thank you, can productivity for we've but a has over growth over seven a This of a something Owen. use the time into drive XXX in as this thought the as AI just the We've Kensho, our product I only and only jumping And not now my tiles, about. ways, minutes have ago, we're

you data, can way our to the to cleaning our as solutions up capabilities as models, -- an insights on solutions be to different the for deliver approach the we've need the and I before, that going So, stacking usable. valuable word and is been we And used that making most customers. it feel

by or As of might from and new an -- example, learn a order be application used application. data turn model different your on to might to can being used use can then need That the in develop raw it, data data be that application a you the customer might so need that a to top take to something it it. into

in it, capabilities to has it to cetera. et So, be downloaded, search able spreadsheets, to to on use be

we the hybrid just a multiple already to And that that feel some one to that have we're be the described. ever a really approach they're you that them been being going in strong for AI. using We cloud first mean that doesn't chips. used is NVIDIA way providers why of of that's are AI We've going work need developing over not have to our using were now That We the the AWS were relationship strategy. the applications. really with past, compelling one strategy. pursuing. with there's groups we're So, They in a the

with being relationship open are strong used. Microsoft. that There's really a have also We tools

We LLM also own have people developing model. our

So, network that can across models. of people we we think a good just company of Ewout that the think different types use have this. using described that we are really that We

So, have have in manage and track we can continue to five Kensho place last moving we investing and to that AI. where we're believe going for for controls. we've to in that we're We've doing we're doing discipline since also owned in that AI years had we're the sure make everything controlling we can governance, to everything we're use same We're forward. how controls

the and our belief is a right one to us our the that's create most value it's So, shareholders. for going that model hybrid something for

Owen. Thanks

Operator

you. Thank

Meuler question Baird. Jeff Our next with from comes

Your line is open.

Jeffrey Meuler

Ewout new product. me, subscription that of Yeah. for new always think more growth CARFAX penetrated in Edouard, Thank as it That's given to I Mobility little surprising said, was you. hear growth store a but products. think, the to good of a that I description there

color if can products just products? of us new through the this of innovation going some give or So, terms car maybe the something there. you penetration versions Is upgrade that cycle? Is are used further an of it in heritage

want highlight any drivers then just other you And growth CARFAX. to for

on I think the of was a opportunity CARFAX service for Thank Life. line you. there call-out

Edouard Tavernier

Jeff. Thanks

a that give simple can answer question. So, quite I'll to you -- I

dealerships right work suppliers. You're and America. work with that with most with most We work we we OEMs, global most in North

But But customers been also quite five because which offerings. out elsewhere. developed over have most lot of at with we sense, relationships or whether have mark-to-market that offerings, mature And the we have a more and a years to young have we offerings penetrated, portfolio have in portfolio, there. fairly have feel we So, past which lots of it's we of Mastermind go. CARFAX, penetration or potential within the of that six

And have if a or look very car Mastermind So, to that before like of CARFAX runway right? Ewout which supply evolving long a go examples still a we for get all you and products huge the technology products. products amount we penetration. have younger They're full chain take them, Life, fast. They're to of ahead at used way mentioned, are listings,

think I take think about if of and follows. as now So back -- those so of a step them drivers, secular think

lot space all years, a are execution, XX%, developed lot five have past white which we disruptions well of have with offerings the of or over in capture information. creating then, have And on which are we're for we've are very demand the six we a innovation. penetrated. see those these all of secular commercial positioned product to tailwinds, going And demand. from we XX% industry, massive And these that which maybe of XX%, a We

you, Jeff. Thank

Operator

Thank you.

with Redburn. from Quelch Our last Russell question comes

is line Your open.

Russell Quelch

please. on there. in squeezing the at Yeah. income me question for A Indices, fixed Hi. Thanks end

Given brand sort a you of participation accelerating have do this lots the at of of own S&P see debt you opportunity benchmarking space fixed the income you for the we now the as in data see for is post major issuance IHS on corporate incumbent as And that space, market Global? point an underlying and acquisition. in greater

the if you you. growth XX% so, Thank increased revenue Indices? for and opportunity you invest perhaps and about think degree to influences your at can that medium what you're which the doing which it that growth And behind term to start ambition delivering talk speed can

Douglas Peterson

our a capital the we the for to Thanks Russell. with was look step you transformation what globally. merger you, markets Markit is of back IHS today. of at if with We Thank Yeah. drivers one and the call joining take of key -- -- happening think

that, capital it's XX% that. Asia, in As it's maybe think for Europe, globally only market, you to across U.S., know, about of that capital the In And markets even probably of the XX% going is transition the continue. probably north of range. in most. XX%, financing is somewhere than We corporate the higher at the markets XX%

United stack to see entire We of institutional has see capital. that go the starting can we're investors the across sophisticated of In more States a very that. of Europe, set

Europe, the in In of from fact, ECB. is signals, liquidity business positive LTRO one the the for the central a is withdrawal which the like bank, from of programs

combination of fixed into securities, other We're from loans, services also is products that the Pro. known the and loans. types of Capital income prices Intelligence, by which kind data, million markets. set IQ now That's products of over incredible services. and And the we've really Market data of XX added a with the used now data Starting swaps, we which with have DVA, provide on

private have the going grow. is be there's billion market which private asset The credit place. dry $X.X right trillion as of $X another in about is available the asset now continues trillion, into And to We which to probably ability which class expand is that $XXX in class powder, well. to credit out is as

We have that. ways can we serve

capital, credit credit side, have look across debt if at look debt the of now the the So, In stack ratings. side. credit and entire only and I but we let's

We private private swaps. bonds market have and information, and We've about pricing loans information got information.

data. issuance issuance the covering now We are with also

loans, which Wall Street cetera. WSO, We is underlying supporting Office, have -- of et the underwriting

we So, stack and are software products, have the debt across we credit. entire services covering data -- services, of

we CDX, And finally, we markets. of about, have a providing also products, credit for et information our asked iTraxx, you that cetera, also in that are index business the set And use income we're extending into as fixed can Indices. indices there those themselves, indices the multi-asset well seeing ESG for as opportunities And not only income in fixed indices. but class also

But just to let what can said. of who hand Ewout, supplement some over me it I

Ewout Steenbergen

Yes.

of additional said. Let me couple data give you to Doug in what a addition points

growth our and fixed of about and business. were you index a so Think business, are incentive bit indices Doug areas the highlighted, factor Because so reason. a thematics, is higher income the think And sell as expenses on class, the there with growth good initiatives said. forth. compensation that's the multi-asset initiatives we data than can sustainability, where based actually the the only about division index together this Kensho that If many little for for in itself, so we

in we Investor Day, thing we to growth high at a important are XXXX you the and most business of at the told double-digit But to level a here deliver XXs. that margins as is be have this is, our XXXX going committed in

business, phenomenal course, all of for initiatives. outlook this growth the So, given

to I to we think in but into the many income, both it's So, do thing this other also that right business mentioned. invest fixed of the categories line, just

Russell. thanks So,

Douglas Peterson

to call Thank joining you, I joining for today the today. want want thank and Russell. to And excellent And Edouard for questions. us everyone I your also thank

growth excited Kensho that S&P help to we're which about bring AI making at we're that's our heard lead on and together. thrilled so progress at and about. of gen you I'm got that that innovation, us that AI and we've and and forefront I'm Global the the going focus

every in products and very what's the and something solutions day. excited in sustainability building also particular, of most we're markets center I'm important transition. we're energy And people the having is that need. and This changing and that global the happening dialogues that's

And impressed I've their S&P year, been Dubai, by our I been I again, people London always, commitment always able Denver. this by Tokyo, want I'm meeting travel And feel people. as passion great Global. I've inspired to always their thank to And I'm in with their and fortunate that and and work. to our

Thank today. you, enjoy day. the everybody of everyone hope thank gets to And summer, so and So, I the a joining chance a call for have you the rest again, great that much.

Operator

downloading Global's available A S&P Thank webcast be will will version you. of slides be with PDF website investor.spglobal.com. and one month. two That audio-only entire one of available The slides be on The the the will for maintained Replays concludes is this morning's replay audio for telephone from in year. hours. call maintained for call. presenter

wish Global, a behalf you day. On thank good for S&P we participating, and of you

S&P Global (SPGI) 27 Jul 232023 Q2 Earnings call transcript