SPGI - Earnings call 3 2023

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Operator

Good morning, and welcome to S&P Global's Third Quarter 2023 Earnings Conference Call. I'd like to inform you that this call is being recorded for broadcast. [Operator Instructions] To access the webcast and slides, go to investor.spglobal.com. [Operator Instructions] I would now like to introduce Mr. Mark Grant, Senior Vice President of Investor Relations for S&P Global. begin. may you Sir,

Mark Grant

Steenbergen, thank Earnings joining call Call. and and Peterson, and Financial and Third Officer. are S&P Quarter President Ewout Officer; Executive XXXX Presenting Chief Vice you morning, President today's Chief for Global Doug Executive Good on today's

portion call, the Martina also by we be Q&A For President of will joined Cheung, S&P of today's Global Ratings.

a earlier today. results release our with press We issued

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

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

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

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

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

impact European X% Investor this has expects to legislation the of Global or like and to better potential call obtain investor on of contact certain regulations. investor Any who of company. also or to the should would the more S&P understand ownership Relations your attention I to

have that with some us media the call. aware representatives we We're on

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

Douglas Peterson

Mark. you, Thank

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

XX% in in the third We We're saw report of the in division growth pleased Engineering revenue impact to this excluding growth acceleration quarter. quarter, revenue every Solutions.

lapping quarter, took margins protect action growth our As quarters in we contributed expense to expand margins pleased third last XXX see quarter, and despite we this while basis to that points the to that discussed decisive last approximately year. headwind. second impact And we're

increased EPS the raising better-than-expected our result Adjusted Global continued XX% results the like midpoint quarter. to the S&P Strong this through pace year-over-year, excited and and execution, the about by innovation and as we're adjusted at product $X.XX rapid third of financial reflect we're from these of come guidance coming EPS a approximately results quarter. launches

of We've been discussing reporting center our on to areas new of a the in better this volume products the of Investor to Day. be each you call, encourage seen sense in get growth I features but We'll strategic available introduced releases few through the online acceleration of a since sheer and we've the we've look quarter. our press them

and reached to generate Index We also the for continue saw quarter value in our total shareholders. as products Vitality customers new XX% of revenue both

but which provide briefly quarter. our touch I'll plan also progress on update today, we more a on progress made our AI initiatives, We on next to holistic

deliver this and X our operations against goals we quarter. customers for was at Day. We the align strategic continue Investor pillars team introduced what I'm to thrilled our to with able our

partner. S&P to customer problems our that trusted are the most need increasingly our As conversations viewing strategic lean and customers innovative solving, as to into provide continue we solutions a Global

leading global third workflow the markets we're consistent the differentiated with unrivaled to seen deals. uncertainty or encouraged on has are sales learned the these that market tools, benchmarks. data, in and quarters, change, count for often S&P volatility, times few quarter, larger conversations were though important Global customers cycle with the longer cycles to last we've insights In In of powerful

in We're private quarter. our of areas as seeing strategic growth confirmation as well sustainability accelerated this transition on revenue and emphasis as markets energy those meaningfully both

volatility As in we long-term hear clear of uncertainty near-term we the to indications engage despite the with customers, continue optimism markets. and

rates. with financial growth in to short along optimism Global. trajectory with conversations revolve generally everyone S&P contribute corporates identifying our and term others the about Large interest institutions, rates around for other Our walls factors interest maturity multiyear in peak with interested the

with Related to drive the to majority spreads quarter XX% Ratings, credit activity issuers growth the were third comfortable issuance the refinancing third coming tightening strong a year-over-year. market, issuance. to continues With saw through more very though global quarter, billed of

which we though expect quarter, same fourth We bank to in and continue amend also activity around saw perhaps better-than-expected to transactions, loans in the extent. extend the particularly not

We also year. we've in all the position again CLOs saw improve seen third continuation marking quarter, relative of trend a our the

Global is revenue of quarter. area accelerating Vitality another this growth for S&P

quarter. a of Our enhanced significant from acceleration revenue combined the new XX% or Vitality XX% consists of XX% revenue products. the quarter in products contributed growth third derived and from year-over-year, revenue These last metric innovative grew a

unchanged from the revenue are our last You'll notice quarter. largest that Vitality contributors to

products the move remain encouraging will products and and steady these Index of it's Vitality mature, over time as growth see resilient. out While from can to they

quarters products. in traction the I'd including launches valuation private to like transparency encouraged and that benchmark and the some be see by smaller among product those in the we of and to the also growth products turn We're will for many years, more markets top in to of of likely new scale trends coming signs early now. the contributors

collaboration strong Snowflake. Marketplace, sets vehicle both that making quarter, turning innovation introduced of division we In seeing products. Xpressfeed forecast Mobility now to and our Intelligence available and Market available the data from We're generally cross-divisional multiple crucial via much new to with ideas driving third data our registration

launched called allows and platform unified products, a insights desktop marks also customers IHS a data new of interface access integration one that to both Connect of new and product Platts on mobile. Platts and benchmarks, the single comprehensive platform from and range Connect. The We easy-to-use is

These X opportunities those and also be more features. we'll we Platts that currently other of our We'll X Mobility that new AI Connect, details and quarters, months launching to developing and get Connect. products, Platts integrate on intelligent highlight and In search early we're within coming closer have and and as new Marketplace to AI-powered functionality Marketplace capabilities. the testing introducing

our to power KYC from regulatory third risk data solutions Insights We within network and XX also management the brings in introduced to workflow Entity data vendor single million third-party management entities. quarter, leveraging and global for tool, which SustainableX a

update provide on ChatIQ. to development our want also of I an

As a is we've you, product with our generative developed AI Intelligence team. shared Kensho jointly ChatIQ between Market and

test we a is over continue that release but internal to internally, quarter, had step third beta a function improvement we new the During this our last release.

market. focus, uniquely scores have strategic more from wanted acceleration transition our the evolved and a we We towards provide are on visioned of Customer energy third expected energy sustainability I ESG transition. detail away bit this climate and and products quarter. moved needs our to win in we in Given to believe the as

data. internal just hear clear need of customers, sustainability high-quality When and raw set we a they don't trends. They're to frameworks, opaque Customers talk we building need scores.

most and world. we climate in set be With we to have Trucost, what robust comprehensive data the believe the

level around also management XX,XXX are approximately emissions granular climate, operationalize that robust risk through including set to data the and sustainability data assessment X,XXX detailed Companies climate sustainability have with mapped million We physical our largest offer data on and to hazards available X.X seeking provide we the assets. asset companies, real corporate data of survey.

including and strategy. from with executing a energy customers need transition, We hear developing transition viable they also consistently help that energy

evaluator solutions cater to solution have solution value the We transition and carbon different within our strategies the customers crucial in for power industries, sector. energy chain accounting that utility including automotive power

see customer across We industries. need all this

So solution wherever from this help may is quarter, companies or also sustainability to strategies. Sustainability This they scratch Starter we start as comprehensive the a be from develop they launched Pack.

against generating and measure They to materiality, to help provide benchmarking ability help sources. managing and energy need help confident We develop measuring stakeholder adequately disclosure renewable necessary transition the in emissions. depth they report and things help emissions areas. with need greenhouse like TCFD requirements gas reports the unparalleled need greenhouse all and their We're things like assess progress to breadth and its demands. the gas Customers is both the them comply cover peers, that a necessary own these S&P to offerings Global of

in our their Xpressfeed, need, continually and we data biodiversity the zero we're that meeting and make at and around before customers Clearly, year-end. we're to We're data of available up commitments net adding showing increasing that's point be sets through results. pleased

growth sustainability Energy to the revenue And nearly total energy and third revenue in grow continues XX%. year-over-year XX% to Trucost accelerated year-over-year. growth accelerated transition quarter. our to XX% transition

very and we're in by While many not and exciting new products committed laurels. product rest vital will on results, forward come years. encouraged leadership to future we We this look remain to accelerating to our area in these quarters

customer powers incredible This accelerating value commitment is shareholders. for quarter our course, Of an our of ability value to innovation growth. also and our generate to

basis year to improved expect continue the second based on points relatively helped and more our margins quarter we the discipline sequentially of in as year-over-year. detail. margins than third the demonstrate explain trailing in expand Trailing from to more Ewout the for also guidance XXX keep expenses XX-month We will around XX-month full expansion flat midpoint quarter, margin as margins

unchanged the strong cyclical different months the facing as Secular impact company different The of in the economic parts can factors business are XXXX. for to the of look final ways. to we company, few trends while serve continue trends tailwinds as largely

around delivering sustainability geopolitical Despite recovery, committed conditions. the in S&P things around evolving and of value the regulatory continued Global increased timing remains to and landscape uncertainty markets all capital like market uncertainty

our expect to of expectations We're Turning the issuance X% to to to the we tightening X% X% of of range conditions billed as X%. markets. now for debt prior of expectations compared growth the our

reporting the As our we embedded as metric issuance we've revenue full issuance year guidance. well Ratings year context introduced a in this forecast for provide the as discussed previously, assumptions billed to

remains Ratings. issuance revenue with tightly the transaction metric Billed issuance in most correlated our

the calls last quarter's full latest expectation market a from year growth the year, decline. from forecast now Ratings Our up Research for for issuance Group full for positive

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

call through to more financial details our And go over now Steenbergen to I'd Ewout? outlook. around results and Ewout to like turn the

Ewout Steenbergen

Doug. you, Thank

Global non-GAAP a all divisions, This outperformed quarter As refer for saw of was and exciting we metrics both adjusted explicitly an across reminder, we our metrics to S&P our today X unless the margins will expectations. revenue be growth that internal discussing as noted financial otherwise. accelerate and

year-over-year. per XX% earnings Adjusted share increased

of accomplishments the this the team understates actually during small this done impressive third X%, tuck-ins the grew was revenue Engineering an excluding because growth revenue and the Solutions reported While quarter XX%. earlier year,

by reduced expanded year-over-year. XXX X% and share also diluted margins by our fully count We points adjusted basis

As release launch was we the markets. repurchase share you high-yield and saw Revenue in across the $X.X program divisions, by incremental earlier share weeks. the benefited plan by to division, Ratings count led accelerated issuance morning, continue of our reduction which in all bank growth quarter coming loan in an with the billion the press in from in elevated this driven outperformance activity

increased remains While issuance while quarter X% XX%. Adjusted the September. third income stronger particularly for the we adjusted operating we the than markets, up saw throughout expected, year-over-year, debt unpredictable were environment expenses in the volume

growth quarter, Acceleration driven energy is in and demand transition by products. and initiatives. physical climate our in grew strategic revenue and strong our transition $XX Sustainability products further by the million to demonstrated XX% risk energy

important our reporting energy acceleration around we're earlier, and optimism continued fulfilling our capabilities long-term is growth. by customer for this third needs and evident transition, of around of highlighted our growth. this potential This Doug the the sustainability raw As quarter and reconfirms data part

seeing and a Market to to saw by bond to issuance as in including Intelligence valuation Moving growth private revenue private XX% activity Solutions. iLEVEL growth increase by benchmark credit both year-over-year We're the $XXX strong estimate revenue We return our market we're by and Market the offerings. driven strong encouraged solutions, million, Private market market private in in demand private Ratings improved quarter. and also in software

through increase a quarter, Vitality to products new was generated revenue, from third XX% which enhanced by across the million the innovation is the $XXX or prior compared representing in year. organization, revenue

Vitality total of of making quarter, Vitality XX% third in in represented our it consecutive our Importantly, the the quarter revenue score. revenue improvement Index

synergies. $XXX third XXXX, million. rate of our Now recognized turning In we to cost to was quarter savings $XXX expense million the of exiting the synergies, due annualized quarter and run

of approximately synergy a cost run year-end our million. complete rate $XXX program to expect with We by

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

to expense growth. Turning

efforts cost growth see to third the pleased of year-over-year are to We offset that expense deliver portfolio and most optimize synergies our the our quarter. in

expenses decisive expense meaningfully year-over-year, expect continues continue of we X% expense total year, we Our some the this going do actions Due took contribute reset from this less to to headwinds inflationary incentive not than last though compensation to on to the any compensation pressure though growth, increased see further forward. year expense. we

for more of are the that management the midpoint basis to new between XXX guidance to and deliver as year we than of business evidenced points range. the We and full balance market continue our by this confident volume adjusted expense investing the at the our appropriate our in products strike expansion to year of disciplined expectation margin coming

division to to X% Market by Advisory Enterprise Solutions. as Intelligence XXs turn subscription results. revenue and outpace growth revenue driven to in driven increased the the third growth strong & growth X%, Desktop softness modest sales. grew continued let's the Data strong mid- range. in Solutions Now high quarter, by in remain strong growth, ACV rates offset continue to Renewal in onetime partially by

X% & continues Credit see credit offerings. new in Solutions as Enterprise Data Risk by double-digit growth continued subscription-based Solutions & and for Advisory well products Solutions growth double-digit quarter, in from analytics. to grew RatingsXpress benefiting each in RatingsDirect and as sales the strong

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

of for As through of we launch the products we in as year. synergy continued acceleration expect we of revenue the fourth overall to the see into the program. division's progress part as the from quarter Furthermore, monetization continuing referrals new we business favorable quarter, revenue growth and move comparison most the cross-sell benefit

revenue to As a result, by reaffirming of margin growth basis X.X% full to our are XXX we tightening points guidance range while year year full X.X% for our a outlook.

third we markets. loan improvements quarter, above XX% Now saw in year-over-year, in turning the due Ratings. and expectations. our particularly bank In refinancing high-yield activity, continued internal Revenue well to to increased the issuance

catch-up However, structured for was commercial primarily growth by a helped which issuance cumulative self-reported $XX benefited customers' revenue, nontransaction finance. million in paper

in the this third approximately Excluding grown impact, Ratings quarter. would have XX%

revenue Service third well the high-yield in and revenue growth in increase primarily due Ratings fees, grew includes Transaction increased to driven and mentioned loan primarily revenue at XX%, by the in which as annual an growth XX% quarter, CRISIL. Evaluation bank I issuance. activity Nontransaction catch-up as previously in

revenue, Excluding grown the the impact have of approximately X%. would catch-up nontransaction revenue

XX%, last operating to year. in resulted the quarter to expenses profit a in year-ago margins basis, by This the impacted a margin incentive due compensation operating points in basis margins XX-month increase and expense the relatively a in of increased in write-down period. primarily Adjusted XX fourth XX.X%. trailing still low the On are XX% increase of

issuance saw reflects expectation billed to our quarter, assumption third X%. X% our tightening the to outperformance forecast. the we're in in growth also to but the issuance lower This reflects we quarter our investment-grade mentioned, fourth relative slightly Doug prior As for for XXXX

we we ratings While the issuers continued growth see issuer expect still in as fewer revenue come in headwinds credit to market. nontransaction, new

year full points, As X% increasing of are guidance a to X% margin guidance. now for range our we and Ratings by basis XXX expecting the growth result, revenue reiterating

base. business growth both rates. increased as benefiting its well year-over-year, Upstream double-digit software and and for better-than-expected following both The growth Data and And XX% insights to increased & in now line Resources continues approximately improved & to slightly subscription prioritize consecutive content data Assessments Commodity X% from retention quarter turning Insights. demand Revenue in as Price growth of Energy second a Insights.

Energy Resources driven and and was Assessments data Data strength by XX% grew products. Price XX%, in continued & & Insights and respectively. insights benchmark Growth our

continue for also see business our offerings to subscription in strong momentum We commercial both lines.

Global across sectors in all key continues areas results Services Advisory The quarter. seeing Transactional revenue strong the including also Trading we're transition. driven but by strong market-driven business trading from in volumes, and benefit revenue energy volumes performance of positive to Services in in investment, line & grew strategic advisory XX%,

Commodity XX.X%. and basis points increased points. Adjusted Insights profit XX%, XXX XXX operating for Trailing expenses basis Operating margin the to margins XX-month increased X%. improved improved

benefit see benchmarks, secular sustainability for to demand Commodity and around continue trends data energy Insights We insights. strong and from transition and

Following X.X% year. full change this for quarter's and now X.X% of we low performance, to margin guidance. Insights no strong There's are overall our to tightening revenue range, end growth raising the expecting Commodity the guidance

In our double-digit continued new manufacturing consecutive segments. The business dealer third and financials the and the in growth well other the team execute of and Mobility continues XX% division, in segment to quarter with revenue growth increased in year-over-year.

increased realization in CARFAX Dealer of XX% as for of benefit year-over-year, and within growth, and used driven continued products store Market Life revenue well car the last by the subscription addition new particularly Scan. price year as the

Manufacturing recall to business X% similar quarter. strength grew underwriting driven year-over-year, solutions. increased as healthy other activity favorable elevated in and continues a X% Financials pricing last see marketing and volumes line and to the environment by continued

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

the expect as continued quarter. products we strong fourth in We subscription progress growth used through car

Mobility their rising is incentive continue affordability OEMs benefit on by expect hampered to from as increasing also vehicles to spend We dealerships new and rates.

guidance. As for a year. of our our growth change is a the full result, range X% revenue for XX% There to margin to narrowing are guidance to we no

revenue in fees increased to pleased and positive quarter. Revenue in Indices. the see asset-linked third volumes fees. growth X%, return primarily exchange-traded Jones Dow to S&P very derivative asset-linked to gains turning We're to Now due

by year-over-year, X% options ETF AUM, last Exchange-traded which from offset higher shift partially quarter. both derivative lower-priced mix continuing driven increase pattern products, the up benefits but XXX S&P primarily XX%, depreciation Index driven in and market XX% an by from net approximately inflows were volume. by increased Revenues was into volume

X% Data by continued growth. Subscriptions end-of-day & driven year-over-year, increased Custom strength in contract

During the the compensation by of driven the year-ago the incentive quarter, period. majority write-down the in expenses increased X% with year-over-year, of increase

for XX.X%. profit to the margin and Operating Indices. XX have contracted to basis basis no operating revenue X%, points in increased There's change points. XX decreased Trailing outlook XX-month margins Indices our

continued cost division increasing as the XX% range XX% year-to-date, year. result However, of for margin a the of to and to a guidance the discipline our we're outperformance for full

from let's views the global Now X.X% in who XXXX. forecasting move latest growth to our GDP economists, are of

While outlooks the by a fueled vary through base period case soft next our of subdued year. somewhat economists first forecasting higher-for-longer a growth as of by rates we with half region, global move are landing assumption

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

For approximately last the the full to will average average $XX fourth barrel, Brent $XX we crude we in slightly year, estimate grew higher per quarter. assume Brent our as than expect

guidance. guidance macroeconomic Adjusted well our for guidance and to for most the as on GAAP market views the environment headline turn metrics. let's third the Now This our through the conditions. as slide represents our company results quarter recent reflects

for Furthermore, to we expectation our we to revenue outlook. close that XX.X% total midpoint narrowing guidance the reflect the will growth full of XX.X% with year changes a our discussed year operating the to We're achieve are range. earlier profit the margin expectations maintaining the our range to divisional of on of full X.X% margins for revenue to X.X%

amortization, rate This expense reduction of site. supplemental allocated in granular to adjusted to point tax a corporate We guidance rate IR basis interest XX.X% posted provided XX the XX.X%. includes tax the and range to and deck in a have our effective deal-related expense, on our

performance and quarter's increasing this of the a the full adjusted our remainder tightening year, of to our $XX.XX of result a year and EPS expectations to guidance As for strong $XX.XX. range we're diluted

to division, our business has quarter, conclusion, we expenses manage the drivers that our revenue growth continue margin across this reflecting guidance and by slides while final prudently. divisions previously. demonstrated I The in mentioned illustrate deck exceptional In this

growth our with more synergy synergies we revenue have cost delivering teams Furthermore, and a the initiatives I'm job more The while finish our profitable as strong a driving impossible products excellent truly growth merger. the that and without quarter, made key the we done strategic across pleased XXXX. to all still been have initiatives to this progress coming to across would and on look divisions executing across new see being forward market

President would and of us. questions. back And Mark call for with Ratings that, your Executive S&P the join for And over Lead like I to to we'll Martina Cheung, Global turn to SustainableX, invite

Mark Grant

Thank take [Operator now Instructions] we you, Ewout. first our will Operator, question.

Operator

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

Ashish Sabadra

bank IGB you September and about the for But in on that of wondering can share strong 'XX. saw billed for a comment initial refi potentially wall comment around There any can talk the XX%. you issuance in quarter. the and year? Really was high-yield in rest quarter you in third also, the And loans momentum pipeline the of weak the if strength if on fourth just color

Martina Cheung

Thanks pleased Martina the QX Yes, very question. much very here. overall. for with It's

have you issuance up and strong a our very, seen, As very was September. XX% billed

go rated to growth up issuance We In is XX% XXX% we very high in in were yields about about see was and year-over-year looking high quarter, a into in tap activity to there market. strong see back the the as willing the I yields. more in overall yields, year. issuance to it year-to-date and next of for pleased refi QX forward, in we think, and point that issuers notable see certainly It's -- come marked, high market QX of terms

year-over-year, we're bank have on issuance. we on before, increase we in in loan loan year-to-date down assumptions heroic Overall, then still while year-over-year, bank didn't saw bank this volumes for And as loans, an year. QX we said

a extend to area space. from in closely the a and lot refinancing. very strong we going boost in been amend an Interestingly, issuance monitoring QX loan trend is standpoint. are There, saw amend rather forward year that bank that and a activity And or we that's lot of of saw this activity extend in a --

on in walls For obviously, more closely, yet very We'll are commenting that watching factors the give that not for certainly refinancing But we're February. we're 'XX. 'XX, healthy.

Our on XX%. up in refinancing. refinancing last and about now showed total's between midyear see about $X X-year 'XX, the report we And trillion

that usual factors, closely, factors, a uncertainty. robust macroeconomic growth So heightened that's watch that's are area. and we something certainly the But very we also geopolitical at that looking in

M&A has been not great year. this

we've As quite down year. seen, been it's by this a bit

So back to come year see well. we're looking in that as next

I And balances high. is just we're on the next point looking quarters CP other quite the that make that in several would as ahead -- paper balances or are commercial

So continue that that commented at could which see past from lead to we if need And well. to transitioning think income. the cash see corporates pre-pandemic to continue as we some the issuance for issuance CP fixed will in we've to levels, corporate boost we balances

Operator

Patnaik Barclays. Our Manav comes next from with question

Manav Patnaik

on there, there combination improvement the upside mean, it's the wanted thoughts I think the forward? lower but that on could. just would But control MI how any an And margins, helpful. should and going area. relative and months, lot about if perhaps up. to think a XX focus I understand we that investment just should would going it's just a I low margin that I maybe synergies, the trailing there be I of cost But forward just be growth XXs,

Ewout Steenbergen

A couple of comments on this.

in terms of very look several areas, south more second among also decisive we we back year, took incentive actions when back turns compensation. the which third and if First, market in quarter pulling in the expenses last at the

difficult So year. comps we this for have some

guidance we we're that number MI several margins. opportunities that, quarter. can do seeing Having year two, also margins acknowledge point for the two, fourth better expand for have And the to as we number full said and implicitly with

significantly we So margins are is the putting and quarter and to that while tight point place, also to but in actions we the including expect invest management to still of with my brings expenses, due to continue due initiatives. improve third other to compare in we strategic next headcount management growth other that me actually that easier several beginning

Operator

with Stanley. Toni comes Our next question Morgan from Kaplan

Toni Kaplan

Martina. for one's This

our was during issuance industry ahead data the billed of Your quarter. markedly

And categories hoping And discuss so color gains. was year? any any around if Ratings gains particular you've I in you share notable share seen could this just

Martina Cheung

comments Thanks, cover between routinely Doug look and our assess the in give a at performance Toni, of Certainly, would specifically. issuance for that couple and billed issuance. I think And the terms we of question. differences Ewout on this. how I to market

in reasons. us, QX data For the number billed was for a strong issuance of

bit a mix a of question. Firstly, it's

issuer So when high less which market. the the frequent loan of bank a more function year-over-year, and is compared just loans, high-yield tap yield, leverage issuers

very, were making I to a really would we Shades [ had classes. SPO. pleased seen of to in talked see acquired have and making those in and and we're the We infrastructure. in asset we Investor results. investments we investment pleased in making year say we've all robust tagged at areas, very performance progress last with ] When And Green you of those which extremely said had we of We also were number we finance. investments Day, structured momentum that in

Operator

comes next from Faiza Our Bank. question Deutsche Alwy with

Faiza Alwy

of Ewout, how to at look the fourth us to through -- expenses follow think you now terms help expenses. the quarter? just your should on up of Can comments synergies, road the some you're of importantly, that we XXXX, I And more end generally the the we as across wanted ahead around think in business? about expenses in in XXXX

Ewout Steenbergen

course. of Yes,

very First a about would like if comp that I XXXX. expenses, comment in of we all, have we volatile to think

top expense and the hard, So around on the when that we're we a had put difficult reason in back quarters markets very last the it of year. has lot last management we good year very to due moved

our actually, year, trends This are far more stable.

think from a year pattern So perspective this noise, but year-over-year, actually is better. there of looks lot I a much

and if at that Solutions, we expense you growth growth. expenses actually are corrected I Engineering look below think having if take you revenue is out

-- Solutions. we're expansion Engineering you nice margin margin correct those healthy for So same seeing items, if particularly expense for

developed happy and to Commodity see We're in margins very how Insights. have expenses

Indices quite as You as correct have looking for compensation you expense margin well. seen we're well growth there if at very in would year-over-year, incentive actually we expansion Ratings, and modest some that, swing if nice Mobility as think about

the For expecting level. full XXXX this low growth for expense we in single-digit the full year, are year

implicitly, at order you in level single-digit would down quarter, expenses So fourth should in range. that look then overall get low to the guidance to be if a

Operator

Our Alex from Kramm next question comes with UBS.

Alex Kramm

coming of acquisitions by that, the a a this But IHS the part the question years. earlier. financial on market Just a asked was business Markit Intelligence deal. cobbled many, acquisition you've that since many had on together of back of our been lot to done thesis a side times from It's I've that couple discussion many, that's Market over

that of I you and maybe machine. like kind meaner Global viewpoint hoping make businesses think a with not get your sense do make this in we're S&P And and say what leaner or and there

to just And maybe do today? still guys that you where if you've echo with portfolio are an that's degree bit you're So now? or different wondering focused very anything and there a look to what may that that, little things seen some that be could right the future in on happy you the business the effort business

Douglas Peterson

bringing to a merger Doug, that me just that for question. Alex, are and seen level from data back with new higher product portfolio. We're overall. across take let about and we integration to and -- research this today you've which together the for some And launches a information, step with second thrilled the the of progress, you the thank is the X the described,

of on. Market within going Intelligence, integration same the we have kind And

that realized to of of And of grown one integration. done of progress As the lot you They've and of see products. there. those at IHS We the we put a lot the continue Markit we had together. lot is a looked acquisitions. always those to consolidate opportunities a know, And integration

to something we're you continue to us the This and how us bring areas. going to hold watch together is should

within a of to opportunities attack As Intelligence, lot markets. you Market we've new know, got

services financial of truly corporates, lot example, an Markit focused financial to As on at attractive services. IHS corporates. very products was A are their

finding you'll sustainability as hear and We're lot us markets. to private related you a of and talk opportunities about know

businesses we which to of upside this at So consolidate internally, bring from an continue view. look to is opportunity to the point expense going

used be pricing, like overall many especially reference carefully the markets areas we're like will right. also going so be very ways. can then also consolidate, is growth, to to in for But investing look We're And and to sustainability, expanding areas going thesis and continue portfolio in your we different our private which at

Operator

with Our next Steinerman JPMorgan. Andrew from question comes

Andrew Steinerman

Could the just and Mobility, MI, Ewout, quarter? M&A overall dollars in third contributed us to revenues in it's Andrew. tell Ratings you how

Ewout Steenbergen

revenue. Of had you ask course, I currency constant and expected organic about to Andrew,

So let the me XX.X% first give that number. for That was quarter.

and Specifically X.X. for XX.X; X; Market Mobility Commodities, Indices, Intelligence, XX.X; X.X; Ratings, for

a we of terms correction to of was Intelligence, then the Engineering last $X.X Market for million. for In Mobility, $XX there with adjustments acquisitions, there $X.X correction Solutions given done of there. million acquisitions respect And year was from million. And have for

growth that agreement, So impact, currency very XX.X. with FX you constant in of are deck, much in the can if very to divisions And the combine a to that that basis organic you supplemental of performance is which you you would look real I come find the the and healthy as at

Operator

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

Jeffrey Silber

curious, the can just felt compared about ago, a worse of better year you or you was your little compare then I'm period? So to Anything Day that now? how compared them less to time you feel how just and businesses about some Investor than a

Douglas Peterson

It Jeff, pillars Doug. and as had if almost. this let time, step X manage X, we Markets again. Day. December our It's capital. ago use laid the that the year new X At Powering Global take our Investor a recall, vision we we XXXX. to well And out on allocate Well, is as me that you business was back

growth for and products 'XX feel longer-term And targets confident some what of at and seeing. At targets margins. also interesting new new the for services. that ambitious We're track we we 'XX, laid out about for time also time, really And we're for all for us, really we on put in and those. well place revenue

feel We in that we targeted for like important that. and the and direction. market have excellent There's trends most trends reception growing we're and that identified secular

into X prospects. those in, we're we're almost confident achieving excited about year So very really targets, and them, X about year our

Operator

question with from Research. next comes Our Scott Wolfe

Unknown Analyst

also of just love public and play that thoughts some where thoughts further your the bit performance little is the credit maybe would to space. a in I hear how one in market. then And Ratings relative Martina. think company your the market of the debt heading to credit the can private some on markets you more in of on context private Just for

Martina Cheung

much thanks Scott, so for question. the

One that as the the year. continue as out the question X were not Day, said things points. that to the we that expected opportunity. reflecting prior were the IR Just going in as they away that both second played And saw have did markets well is this I going And an private when grow. sense to that is we

overall a demand our with markets. fund couple ratings. sponsors form a real in from areas, lot so healthy There's managers. dialogue the very of of with standpoint the We're a in and Ratings for of It pipeline, pleased performance been comes private the fund increased

as we a and to positioned. very And key see bit structured played class on credit that asset thought overall which the seen also highlighted out we of quite and as see, a that We've year. had the increase, would this has we we're well demand certainly AUM trend the allocation we front,

having in out We're cetera, great participants. assessments, team market the and with et Ratings then portfolio estimates, market the our really, dialogue credit really with with

So from standpoint. pleased a Ratings very

Operator

question next Nicholas from with William Our Blair. Andrew comes

Andrew Nicholas

you is A new good. much curious one know growth in that lot development. there? don't that is investments new if Growth as is AI a color a ticking accelerated kind leg development create how product Or this is can something side? of just of of can good harvest of on there the and to on higher. quantify, I that just your really Vitality product you investments gen is of that but kind I'm Index result continue of

Ewout Steenbergen

you around level company. level are happy are and pleased innovation, And entrepreneurship, Andrew. the of happy of the that. we the that you, We're level recognizing [indiscernible] Thank very very

this merger. the gives from, of And you driving a If benefit capabilities. really about is the of us features, think is part platform, products, The all, that of merger a background coming first sets, it. data combining this, lot in of

we're private also we're seeing are initiatives. with is but sustainability, energy in what investments we're entrepreneurial. it of really very fall transition, areas And that pleased growth really of part Second making, the out strategic markets and that other several

areas is more You in that something see credit the like growth Indices factor-based. fix. launched thematics, We called in

Mobility in listings car and other areas. many have We

that metric. growth would investments Index, industry publishing a is is that the ultimately And So pay also And we off. far to this, something clear the then Vitality innovation are generally, to in know, of like initiatives that as really we in publish. we're, starting as showing is indication as maybe but a in unique which up is our it company only

products AI, AI having, it that are of it really gen many that is and of production-grade the of powering is And are new more number embedded. development. so we get once gen we a far it's features With under to really say are but the wouldn't respect I products the back those AI kind we that customers. to our we bring can really to you still because will in level most at offering

it's next So a of I for gen early come but over think impact more few on that bit AI, too the little to the quarters.

Operator

question Our Tong Goldman comes next with Sachs. from George

Keen Fai Tong

segment trends broader transition the that unchanged budget the spending in narrowed guidance business? revenue growth and in Does in client your for X%. stabilizing how and midpoint You Intelligence are suggest the sustainability performing? at energy with And trends Market

Ewout Steenbergen

within from Market Generally, is and drivers transition. coming only sustainability this not energy from Intelligence, George, multiple

strong. we growth. for actually the all, We of momentum. are faster really a see is see book revenue healthy core We first sales So example, growing reporting, business see is good ACV Desktop. bit than the in the a that We little

ACV as future early an of know, indicator revenues. And you is

are that. we're synergies at Also, more by meaningful So pleased this really, the moment. revenue becoming really

really helps that contribute to growth. So

volumes And example, become and comps it capital pickup the more FX yet. also that an of headwind really M&A going stabilizing. is We a don't The markets from a of are But year, for perspective. was headwind, last see lot then away. easy,

as factors several the you're sustainability then here right, growth well. other And drive and

really So fourth in the line we Intelligence would the positive Market and for Market outlook we about of in further of quarter quarter. range what the implicitly expect our growth growth the of seeing next are guidance you're actually the that in top Intelligence is acceleration

Operator

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

Craig Huber

rate Yes. for is what right versus year-end that run Could just IHS, both please, now cost where to synergies the and on sitting at at synergy, original now update the your revenue you're you us, you where expectations? be and the aspire for

Ewout Steenbergen

think over you cost you the last know. as raised about we those twice period, the If have synergies,

the done. So for. $XXX the is that We're target almost aiming we're million

are We done. effectively

be we just and purely declare more to that projects will is few some That able the that a are those timing be million. $XXX of There year-end. finalized will of we hit at projects, then

to less talk anymore are We're or not And one running won't operational combined now because point company more part synergies as cost from we about about we cost fully related the then also versus the part that anymore. company. And integration. onwards a synergies other talking are

doesn't time So always efficiency about opportunities, company we it's good that close with Obviously, to record get and at think mean as company and to track you and stop for point one that off back look synergies have new cost programs. new a in will we to with will really going we That the forward. productivity updates.

quite getting that From target. synergy to run X/X the to rate. quarter. of progress million now the of It's a have step revenue big we during actually a made the like we perspective, third We're $XXX overall close

a X-year more is to said coming you synergies million, revenue trajectory a cross-sell. is always what $XXX now the have cross-sell. first We in Most from part reported on of get see that to focus as

But of new next we that have being those products will help delivery. products these the launched, and are with new synergy revenue phase

So on track. on path we We're the feel million. we're the right really on $XXX to right deliver

good feel we it. about So very

Operator

Our Wells next with Fargo. Weber question Seth comes from

Seth Weber

climate, sustainability with ask landscape some the the transition business. and the wanted cetera. et to energy regulatory about you and uncertainty in political Last quarter, reacceleration just I talked about

of more I any getting adoption to just seem just the be Or on back -- anything the maybe is it used or normal? frame mean, new can on perspective more new numbers here. just you just that? track to customers really changed? Or Has products

Martina Cheung

about that Seth, divisions. XX% was I question. in Yes, take the it's the Trucost CI. But results. pleased We QX in growth with actually and can very about across XX% all Martina. growth saw

for well demand really FPOs the strong for S&P core the energy Dow and and as in Jones as Mobility transition So we into example, products the sustainability saw Ratings. climate indices, in inflows

really and momentum across the So board. great progress

not and the been have in changed, notwithstanding needs the that for the drivers here may call think quite I saying various we've it, some have time, some minor we thing Look, of different firstly, reasons. in past this the seen business for key the the, long-term year this and slowdowns

need against If plans. still report look corporations they're against report to Customers, to zero they need risk at chains. there, to exposed some in still regulations to supply looking into have to banks any net in transition their for finance Europe, have their way and They owners looking complicated asset operational pretty are allocate obviously emissions capital deploy or who at example. we asset and who managers either class. alpha looking asset to are And for have still looking sustainability. to We the

for haven't offerings so we in changed. businesses. deep most in energy example. all of this advisory, fundamentals transition is We And leader and area analytics best, Commodity and comprehensive believe our across a the have Insights

and just division. so now IP the merger, of is the most some -- the across fantastic me is of sustainability launching products together one other what's I bringing exciting say But to this things that would the we are and with unique around

data real Insights, asset launched data Market Mobility, and Commodity together the So Intelligence brings from we SustainableX. have that

needs for going level. as more transition, much and the And and be nature data it's we biodiversity at a powerhouse real area real emissions in more to more that going specific forward asset see

example. the pleased So forward for and QX. with that's Super excited going just question. very Thanks one

Operator

Our next question comes from Owen Lau Oppenheimer. with

Kwun Sum Lau

private add and competitor can process mean, strength coming Where and the you in automate please from is Could from? your I more a your also shares wholesale? did in you color take product demand or on iLEVEL? market replace the

Douglas Peterson

Owen, this Doug. is

me that. Let take

back private about interesting the we're what talking of is a transformation and very step this really taking by markets. rapid seeing start me Let and

and over accelerating ago, the different last on you the asset markets was side. back private years XX, last was is different asset X It's years it's But many, many strategies classes, LBOs. XX just private It or If equity. X go equity. the XX private many

even. with and of funds also the and a started which to obviously endowments into types see private companies, gone and that individuals investor you the side, have wealth add investors now markets on whole private pension diversification that And of credit, private insurance

different taking see from a those of you example, need share brand-new volume. for -- market data across this this And is necessarily you're anybody. and completely It's lot a an analytics So as not areas.

level, to new GPs bring market the market the at the to the finding and different private individual to provide the LPs, information applications and investors to You're but now also a to both investors investors. even

see mentioned, for was this It frequent the gives you what might instance, tools that GPs provides from the you we software, iLEVEL you bringing, which So that market. transparency kinds service. the more see we're directly information about a of the provides from data the to It coming than themselves. portfolio

pricing we about provide We also are whole to timeliness pricing. able transparency information going of a It being level and applied DVA have information brings believe the and to includes which products about be to new area, the portfolios. which in our from future

know the those their in They to their across they much look manage at that want to that sophisticated to investors, mark-to-market, area. need from a of data want look they look We granular and at They concentrations. portfolios some portfolios investors, institutional way more have want especially in limits.

think highest to interesting our this going be we areas. most of is So one growth

solutions question, the sides bring for the so to the new can from. meet ways It's and it's asset together And investors the of you the It's Owen. the portfolio coming asked where managers. multiple and new we products it's both opportunities, demand. Thanks and equation, in our needs of

Operator

Our question Russell Quelch with from Redburn comes Atlantic. next

Russell Quelch

product interesting but income I us fixed impacts business, this particularly last products of I in areas expect business, to area, [indiscernible] this kind if launches what quarter. Indices thinking wondering how also Are please. there mix I'm explain is in growth? detail wanted to to class, give respect can asset product had focus more come? the you We've pipe some some on in And the the hoping mainly some climate launches to we more focused revenue quarter, on good or please? in we from you you the you should growth derivatives, what new was indices, in could of where you've new seen last the

Douglas Peterson

then the talked over the going happening expenses side. also little industry. now, about to asset changes Ewout we're I private I'll seeing in of what's management it financial me bit what with the let and start, lot and side. there's just hand the to a on about on Russell, right a talk But market

one to of industries strengths. at the out. management, and traditional the is the you about that coming of we asked are our passive, And which But what to type from time, same like shift active asset products see plays

There's A was ago, of a going new on. $X.XX a related whole ESG. few sustainability. ] of years type maybe more [ And that interest is to

We climate own divisional it's instance, Now related with, across index, our it and tending more energy transition. towards which metals. to is for battery see

interest transition of in Accord climate climate indices. lot -- a see Paris also the We

climate. whole investors So indices a for and that with European particular launching, set to there's asset we've related European of been in managers

to traditional indices We business, from S&P XXX a allows also see of advantage which of set S&P Global multi-asset Index class are and have from what we other take across which equity or industries, our us indices.

fixed the credit bring indices class us with IHS aspect able income new a is and class to You for the asset whole to provide to with it, along multi-asset that's with credit that be that Markit, a volatility. credit came

not a strategies. interest there's There's exchange-traded and management products more another lot in to direct and set risk trading indices, They're of which derivatives. hedging related are but

develop in with as relationships and our whole to well. that and we've foundation set ETDs. able core seen CBOE strong new our we're with growth area And of And a CME,

And more the So a and set developing give also a types there. across it's bit we've fixed indices on me It's little over approaches multi-asset color the income it It's hand exchange-traded But numbers. different let it's derivatives to It's the which of Ewout been class. then to on whole of products, to already board, climate. factors. side. new

Ewout Steenbergen

and Russell, are again quarter shift, up AUM see very AUM in this and the levels about that question AUM pleased fees mix direction. specifically same to and correlated again the mix your fees we that are the the are

that we at I other But AUM are fees, in categories please many ETFs. keep funds. the times, There's also It's funds. not the bit a said are there all a OTC mutual also couple as than only less volumes, mind mix. if look of to insurance of average AUM ETFs. have into There There make going more there you want little detailed is comments are levels grew them and first, of

So why and ETFs part that AUM fees. one you discrepancy a the see bit between for will little levels always is a of

we that more flagship the Secondly, you talked are What to to we seeing the ETFs. is market bit about there from the more off trends quarter specialty a last ETFs continuing. is shift of is that mix that a move is risk

the Our flagship quarter. funds this fees. ETFs we situation of But a trend third basis taking that quarter. this think that the at point in risk be market some had we're point trend more refer shift the We very when will are again positive interest us time in more ETFs. a this seeing more in there's will a also of and flows on current lower specialty But are still continuing is lot level is those flows, market in mix

Operator

with Shlomo Our next Stifel comes question Nicolas. from Rosenbaum

Unknown Analyst

for of sharp further Do indicative to start This September of is or of September? a get Shlomo. Adam increases, strong. more financing that trends as saw were trend issuance in see given companies an rushing ahead the rate movements improving rate we you

Martina Cheung

we Yes. higher September the was some essentially of QX. And do that believe question. we sure. was for Thanks pulled forward from that look, for expected Yes, than

important QX said factors are onwards. I here that of to that, number about a Having think additional and think there's

are referenced QX of see we actually something And from for we, this some those [indiscernible] earlier. had we're year, pull in forward some I of Do that example will tracking. -- 'XX

earlier, refinancing well and at activity QX well. loan space, bank some we're was amend of as the as And looking as very which as I strong bank in mentioned in the the in also extend loans

well So as sort the of a we course, to that have is continue The there, of geopolitical to overhang factor new factors. watch. lot net of

all One into usual that of we and the well. good those I look overall, is as this into add, year, that flow just since income we that next indicator on I prudent point important take other the longer going is have we think handle it's for watch a would funds So and of funds. term a something fixed a factors is QX

high into positive. a funds and QX, net for loan yield example, leveraged was

huge last the we inflows So Through year, fixed half funds income good year. overall indicator. outflow that's the a good from saw thing, the first against into net back of the

So have things next year. the QX these for we to are into go question. and watch that to into continue Thanks

Operator

next Our with Meuler comes from Jeff question Baird.

Jeffrey Meuler

in of about an synergy -- versus comment how relative are else improving was in was that There kind just headcount a a what IHS much capacity challenging are And of you there market CLOs. about like position through benefits? doing? retaining any Martina, through

then rate? you And is if what drove can tax just it the like from Ewout, 'XX? And there's driving benefit quickly, if carryforward beyond structural address whatever any sort of lower

Martina Cheung

much just, an across number sub-asset question. And thanks the very, classes structured very the a of for saw we're in finance Jeff, frankly, overall. we so Actually, improvement pleased.

capacity. will and I these Certainly, incredibly capacity. lot asset say expertise about not in and and in talent. And important saying that to about related strength is It's it's investments classes. been the have continue additional to this is what just a really of And the the

and pleased very in overall made that say I area. that growth the by this class of the the also far capacity from credit And we The of been aware highly some on we sure to in the the have to all talking to, everybody would sure with need is to this that year and are space. just the driven issuers experiencing team relevant so making this talent we've asset we the street talk private issuers. in continue have remain part execution we

Ewout Steenbergen

out respect the during to tax to in due our this question, some the rate. your apply lower help of rate to effective guidance medium-term respect part just how the foreign second quarter our quarter, outlook primarily impact tax would to the tax credits with came way new And to with is

Operator

final America. from We question will Heather Bank now from of take Balsky our

Heather Balsky

talk just I not can help how question in much Insights drivers in the Commodity about put to, or actually help that impact of maintain wanted you guess, to level the expect commodity And business. prices business. just the And perspective current you growth? if I a do about you ask growth do that your

Douglas Peterson

all, in have of analytics. very strong gas being we incredible in it's products, commodity benchmarks industry, transition. context different position this energy when Well, earlier amount from take Thanks, And as at both We Heather. talked about This as a driven what traditional is oil, we which transformation. are research of by Doug. news price well first look the a you and

means we take what IHS together single from we And and platform. launched this had would in announced ENR Platts that just put a Connect, we Markit X where use, tools is services That the have have way very Platts platform them from been a which a and been can on. traditional it's high-quality easy platform with that serve We'll of AI to markets with the in a continue enhancing it to be it's to with we all -- easy search over time.

faster growing. that, are them that in see markets commodities, much mix time. all new serve that better compelling just energy And we're And of sources. so the and a ways beginning the new there's of traditional we to where And that's that into able already more the

There's that, a have we're already the related to the the which markets, to metals, intensity, that's related look you all how to time. used that position transition like in for transportation things related are like getting at products transition, then the energy that areas have we stronger the that. carbon infrastructure we And carbon energy

Cap data on which Market sets, Intelligence, with then of can to an new Marketplace be incredible that, data to S&P which with Global for added new sets, are there's of of amount the IQ Pro. and all added And example, SX, being across top synergies

markets a need They time when as the it they is use. for a place this And high-quality can into need their data, in workflow. at a at comparability. need the it that to them look They we easy way and So right they need business transparency. that's delivered in build

continue our So pleased to to we're going invest a really, is business really we're very that with this in. and progress,

just closing very much, give let Heather. So thank a of And you remarks. me couple

all, And S&P about to place. excellent integration really that's lot progress a and the side IHS your I'm Platts the can as talk the the with today more more them proud, and always. call this everyone taking and businesses joining first saw the quarter all And the launches. combining I questions, of insights, come. product as about for of into able to, thank want And with Global. the best both to with you Markit we've hear, and made merger revenue now you new across Connect the create there's this and is the and more to we're

for and you I also joining Martina providing today, us. want thank to perspective thank her for

for great and our people excitement me to thank to personally want and quarter. I always, passion them what to of as they And a for all want thank inspire Their do. continue

and the have you for great So today, day. joining much. very Thank again, you thank a call

Operator

That concludes morning's PDF hours. downloading available about call is for Replays call. be will presenter X version this the available from A entire slides in of investor.spglobal.com. of the

we audio year. S&P you website On telephone participating and replay maintained for for good month. X The maintained thank for behalf S&P a be The be slides audio-only you Global, wish will X on of Global's webcast with and day. will

S&P Global (SPGI) 2 Nov 232023 Q3 Earnings call transcript