SPGI - Earnings call transcript Q3 2024

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Operator

Good morning, and welcome to S&P Global's Third Quarter 2024 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. President Relations Vice S&P Senior Grant, of for Investor Global. Mark may begin. you Sir,

Mark Grant

Good S&P and Global Doug for XXXX you Martina of Craig, morning, thank and S&P Officer; Financial joining Officer Chief Officer; Presenting and and today's Interim President Chief and incoming Earnings on Global Executive call Ratings. President are President Peterson, Cheung, Executive Chris Chief Call. Quarter Third current

our We results press issued with earlier release today. a

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

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

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

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

investors This In is are providing as to view information. release from same call, provided business conference the we company's today's adjusted comparisons perspective financial management. to between and press non-GAAP of meaningful periods and during the to enable the performance make information operating the company's

noted non-GAAP to be of to measures. supplemental contains non-GAAP release we're the today such metrics the corresponds press financial and unless The adjusted measures financial metrics, we'll and that the accordance measures The GAAP in reconciliations explicitly non-GAAP release refer GAAP otherwise. providing, calculated contain deck and discussing press with

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

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

However, our the ask for and to this the in information investors, Peterson. would turn would this intended Relations release. At to like we questions who's Media found that contact over Doug call Doug? directed to the be I time, from be team, is media call can

Douglas Peterson

S&P increased Global quarter. year-over-year, third in consecutive marking Thank results of the growth. you, third exceptional Total delivered financial XX% Mark. quarter accelerating revenue revenue the

with Our continues increasing more outperformance, Ratings meaningfully XX% our than year-over-year. transaction division to contribute to revenue

need Revenue benchmarks, from provide turn increased the across subscription products in to make macroeconomic to landscape. today's to they leadership decisions year-over-year company S&P data, as the continue Global X% crucial thought tools customers and to

points across EPS of to we've repurchased delivered business expansion more repurchase billion and We to XXX basis $X XX% shares trailing the invest continue we and prudently to capital shareholders. in return year-end. $X.X XX-month through in and margin plan Year-to-date, billion as growth

financial our AI our to continue on we initiatives, which invest strategic particularly results, shortly. addition in and touch In to innovation, strong around generative we'll

quarter and PrimeOne. We customer third the the also divestiture to closed of portfolio today products important most order work announced value. create the the of Fincentric during of divestiture We optimizing our and of in shareholder continued the planned

company Market our to divestiture have opportunities drive on won't best the on results. That financial or the Intelligence within profitable sits PrimeOne enables the said, either division a division material further impact company's the long-term efforts focus growth. and the our to

CEO conjunction Martina later transition. we that walk week, announced through the call. management with changes our will Last in in

and turned year-to-date. how surpassed debt both show our than to markets very conditions. Now turning improvement, and quarter, portfolios Ratings and geographies, private, markets, the $X experience credit markets analysts, well debt, of have consistently It's classes continue coverage third Global participants to S&P asset conditions. The market in across in thought the encouraging the thus the credit in more breadth to all and leadership methodologies assess balance With far and all exposures relevance our $X depth and The trillion see businesses. very assess across and to to and XXXX. of of benefiting the public Billed help equity we've commercial our trillion commodities in served expertise our risk, Issuance and

We've seen performed the indices markets some also year-to-date. XXX in equity flagship improvement as have well S&P like our very

to our to gradual recovery. signs of some benefit businesses, IPO has of We also in see M&A volume-driven volumes, which started continue show activity and increases early

markets have end markets especially business. well, important like our that commodities remained in The to strong energy as are

with in Insights see improve to pleased continue execution products. new Commodity retention and reception of very and the the are We both year-over-year rates market the

said, environment Global, sensitivity S&P been time to now. Vendor though calling That the Those and cycles pricing vendor quarter for Services has as diversity consolidation. the among been as some increased has our of signs with year. in Financial continued impact an of consolidation price elongated customers offer, we've had well given beneficial this have sales out third the products and that we historically breadth headwinds

impact rates That we the For that our would that noted quarter. cancellations to in our the in said, the retention we have be among Services expectations expect our slightly fourth business in smaller third in to customers quarter, slightly the below continue retention few Intelligence last below Financial caused dip expectation to Market quarters, and rates last year.

impact pieces We'll growth, increasing aggregate revenue XXXX. all EPS substantially and discuss outlook our are our for moving the on but guidance in a that margins operating is on these of we the impact moment,

to turn let's debt the Now markets. in activity

forward we out of the normal remains third activity strong, For XXXX saw saw Refinancing including we some within very what and at even this would of of Billed strong out the XXXX, but across we Issuance, growth year-over-year the of pull a certainly as increase time ranges year. expect XX% in products. all quarter

be rate of to issuance Market the the and continued recovery see of more with and improved quarter of in the well. dividend beyond beginning a tight by as We're M&A outlook of around some remainder stability major outperformance inform the the the in activity. specifically driven third to third refinancing, for issuance XXXX the starting and activity drivers our spreads quarter in outlook, opportunistic recapitalizations have around conditions,

look as over public we to we down. come next As current demand to for months, strong the debt additional the among as XX investors to continue XX rates yields to rate cuts somewhat expect are moderate expected

Vitality. to Turning

Banking last the demand seen is for our New enhanced last in contributors and million from products Vitality Key CARFAX we generated total to Index CARFAX Insurance quarter. listings group. and $XXX revenue are XX% of with represents strong we quarter. our third reported have consistent what updated as quarter, & This the

transition S&P see energy LNG price our pace We assessment maintaining encouraged and growth forward and to Insights climate at acceleration XX% above innovation in at target. We're Commodity the and from Vitality products Index of look Global the strong by the in our also division. or

to internal highlighting In Generative within we've our Generative we many a quarter, within been are also very AI. been third the traditional had a we've use that own latest processes AI ways our turning new number around S&P and exciting. of services, but Each few products our initiatives and within just the Global. quarter, AI Now leveraging both cases of

more which users advanced new Pro, automate better analytics Within we and predictive models, IQ build Intelligence, and quickly. to through introduced solutions identify workflows GenAI allows Market data Cap functionality and patterns

for example clean economics technology. energy benefits Insights, our AI-ready make data for we've This our of great customers directly our investments efforts we on the prepare sure for cloud into enabled Commodity and of in AI a made data Within is models delivery to sets to that ingestion translate business.

user the help in Connect insights to Also Insights, in answer users Commodity time questions discover our AI-powered introduced we improve real experience, quickly the called valuable platform. chatbot customer more our Platts ChatAI in and

GenAI the Fox CARFAX to vehicle the reports embed Within automation Mobility, and Car customers directly that we're animation within use. history leveraging

listings and brand Soon, and products, care will additional on deeper engagement the dashboards animated affinity. fox products, user including car driving enhancing customer appear our

Lastly, they we AI our and how these leverage into recently they daily prompt Spark their in our continue in best people, technologies on work. advantage training employees as insights received emerge. incredible other they launched our take Academy, so can Through can own of engineering invest full meaningful AI to

cross-pollinate employees organization. us use the people more early of development, Not emerge S&P are to analysis, across record-keeping new way some sharing see this code productive, their and to these across cases cases but inspiring in use make only been document our the and new skills improvement, does It's it allows process Global.

be over time, confident a of come will influence will We're the AI and our that improvements see life that, growth productivity, and efficiency, in years these improve for quality profitability. you strong to to

and growth exceptional and in our this consistent with results. financial our and efficiently, quarter. results pleased to we're Turning serving With financial focus execution, effectively on third the customers the delivered across we the exceptional enterprise innovation By quarter. our profitability

CFO, Chris results. over to me review the interim let Craig, Now to turn you. financial Chris, our to

Christopher Craig

delivered the solid expansion in strong third we Thank as of X you, for performance achieved Doug. quarter X growth company. across and the revenue accelerated margin divisions, of We XXXX

continue $X.X our Revenue grew of businesses. strength the by as record market-driven a third second billion consecutive see in to quarterly to quarter, XX% year-over-year we across

this As different the end in Doug noted of markets earlier, we're year. relative variation strength seeing

debt significantly strength growth services in financial benefiting the the of while the equity is in are softness sector business. and in from pockets markets, tempering We some

our a to the the company. have will compensation businesses momentarily. problem of market-driven all across is degrees, detail of also and to discuss I'll to divisions varying which in outperformance year-to-date leading impact The elevated is incentive This great more

driven share per diluted basis revenue $X.XX. share growth, of year-over-year our of in a increased margin is earnings reduction by fully to expansion X% XX% This XXX strong combination points and diluted Adjusted a count.

adjusted growth. expense We to Turning XX%. increased expenses saw by total

drivers Overall, a with component the it quarter, As to expense expect This earlier, and was more driving we have year. be strategy I in significant enterprise, incentives growth align performance compensation true is even the commissions to the employee pronounced and across growth our in divisions and also our while to third this profitability. incentive expense fourth of in our quarter. it our mentioned and growth are been critical

increase particularly Indices, It that in to division. in note, the is year-over-year in every pronounced however, expenses we important these performance-based Ratings and incentive consolidated incentives. The compensation where seeing results our are variance is impact largest in

reflected Markit certain an moved the strategic our investment the and investments to is cloud XX have also increase the to expenses and in naturally IHS growth closed. core in cloud the many come operating grow. since This the we've costs that and as the category, exited continues products centers data We've as increase with along increase year seen business in merger throughout

reflecting We the across also incentives the annual increases commissions, usual the of merit with compensation saw company. increased course traditional and expense outside associated hiring of and

fantastic and of about of that as fact results expenses transparent date. the remain to result reinforce to of important strong it expense important growth come the as the drivers increased just financial growth, While majority Is these to a

Now quarter. to revenue growth the million we turning strong to on where transition Energy to investment Commodity initiatives grew continue deliver business. areas Growth $XX offerings. parts for in Sustainability XX% the of our strategic subscription energy various Transition supporting driven demand Insights' was primarily by across &

Private million. $XXX driven of Solutions, increased Growth our offerings to increased Ratings. Market in by the of XX% traction Global market by was S&P product In services revenue primarily private

annualized quarter revenue rate an For with synergies, $XXX third of million. we exited the run

the in a which $XX from activity revenue from During we cross-sell quarter, of generated recognized mix million new and products. came revenue synergies,

divisions. quarter. impact from the X% acquisition. Alpha excluding the increased third Visible our grew X% the X% to Market when in Turning Intelligence or revenue Desktop

least headwinds in core of that face Desktop, the We impact the continue and cancellations we market. expect the demand that prior rate, but growth Financial in discussed to we quarters Services in continue the to products continue we organic also see at impact to elevated Desktop end end our through year. The for

by Solutions & Data data high-growth as and strong grew such data X%, valuations our product from analytics market for products Advisory suite. driven alternative demand

impact X% divestiture. or grew the renewals. driven the of Fincentric amended Solutions excluding large several activity and was levels Growth Enterprise by of restructuring XX% strong and primary loan software when multiyear

new with Growth through lapping performance comparison year. was across by cases the America, content RatingsXpress a & difficult from Solutions Credit solid prior grew Risk subscription use North driven digitization. emerging externalization and for along X%,

operating due X% drivers XXX growth and Adjusted XX%. to X%, year-over-year primarily decreased strategic discussed. to margin expenses profit investments that compensation, points I increased around commissions the basis previously and Operating increased

XX-month and XX.X%. for Importantly, overperformance, to Indices related commission driven particularly year-over-year Intelligence XX if would were basis Trailing our it margins expanded accruals results not in Ratings company's stellar the by incentives margins Market overall expanded and divisions. to have points

in quarter, XX%, the investment-grade Now quiet and activity, turning third where historically revenue saw revenue Ratings, driven summer internal accelerate XX% in to expectations. during our period. we grew growth what by materially strong to a high-yield by particularly has Transaction exceeding seasonally been bonds

increased X%. revenue Nontransaction

$XX in to was highlighted the from XXXX. a of million there last paper year, As related onetime benefit third in a quarter commercial catch-up cumulative we

revenue rating mandates. impact the X% a of item of been growth strong year, and an last result that revenue as in new fee year-over-year would annual Excluding in nontransaction increase have

Adjusted increase compensation. a incentive XX.X%. expenses in increased This XX%, to point due resulted increased and in primarily operating XX% to increase basis a margin XXX profit operating in

trailing For to XX.X%. months, margin XXX Ratings XX expanded basis points the

And driven now growth refined product and grew business turning from driven strength Commodity in Resources X%, division, Energy the offerings. our including XX%, performance Insights. increased lines. Insights assessments each strong to Price Data by double-digit crude X & X in & Revenue of by across

various across addition, Asia. notably both lines benefited Africa regions, Middle most In business East, favorable and commercial conditions from

by from strong X% grew Leaders primarily driven This key across volumes Hydrogen trading or revenue Trading acquisition. World Global Services. X% Services the Transactional the & when by in sectors impact excluding was Advisory

grew for increased Upstream Commodity for and Insights by driven strong rates. basis Insights operating subscription-based points to and XX.X%. expenses Adjusted well as in X%, analytics as & retention Operating Data XX software revenue by contracted margin profit X%, by continued improvement XX%. increased products demand

Trailing margins XX.X%. Similar XX to would it accruals enterprise's commission related expanded the Commodity incentives Insights' XX-month and basis Market Intelligence, overperformance. not to for by points to increased margin were have

across increased offerings. to Manufacturing Mobility. strong in driven quarter year-over-year, strong X X by growth by CARFAX X% a Now business Dealer lines. double-digit subscription driven growth increased X%, of accelerated revenue turning revenue to growth of driven year-over-year sales. subscription by Revenue XX%

to As the see continue any to on we revenue which recalled level recall activity expected, lower period. related based business, transaction in can our of given fluctuate

profit margin basis penetration. of This Financials contracted underwriting period. points line market X%. the resulted to XX.X%, XX by and quarter expenses which and increased unchanged increased XX.X%. is the as volumes operating X% year margin strong benefited prior the Other increased operating increasing to for from and XX-month business XX% compared Adjusted in Trailing by an

Dow by Now driven from benefited fees, AUM. Revenue increased higher S&P strong in turning to Indices. asset-linked primarily which Jones growth XX%,

by appreciation and up Asset-linked XX%, market fees were driven inflows.

volumes AUM primarily the exceeded grew portion we across flows. third equity driven by ETF For quarter, our while $X our substantial acquired equity Exchange-traded trillion, U.S. complex of XX%, global ETF a revenue derivatives strong products.

Indices commercial previously XX% benefit the group this Custom Subscriptions Data to discussed third quarter. as expanded ACV initiatives to line are profit year-over-year, XX.X%. primarily basis have XX%. XX points & in increased increased expenses to beginning points X% largest increased compensation. XX-month The a operating due business we year-over-year. the product in XXX increased basis, to operating Adjusted incentive by trailing mid-teens increased and basis by expanded Indices margin On XX%, operating margin

with As an an prudently. robust expenses enterprise, we quarter delivered while exceptional growth, managing

brands our and together. team's strong Martina is our global forward year incredible note. And during from realize period and that, these contributing will Martina? a to our the with the benefits pleased look suite finishing now turn call I I'm this transition. to provide results on high leadership to on diverse execution product an Our to we update reinforcing having the strong with

Martina Cheung

you, Chris. Thank

our the XX I've at strength to Over That consistent exceptional on clients' has talent appreciate company built and of expectations. a strong development focus how gone and been that exceeding brands, record leadership, on Global I've our strength. years come has Doug's under and this performance from disciplined to S&P trusted been track

continue of of and our customer been few deeply Over the that position of and jointly group to how growth we with met from many directly stakeholder them with sure Directors customers and every their legacy Doug Global and to I delight. can to our internal I've we months, external last meet Board years. make hear S&P coming largest needs best the engaged have in

clear varying so team, strategic I've a and in make our the investment effective in to leadership regulators as can most with needs of of group, the sure have we and also ways. met partners, a we, prioritize each shareholders, both time that vendors capital understanding

internal amount a of I've as with well. time commercial significant analytical and spent our product, teams

broad While of X privilege I timely our including view to I've the me current we're pipeline, vital customer pain that the of and divisions, and have in career, environment innovation it's had products, points, our currently operating. which my our experience our of largest leading a our operations in

organization areas, part an how key met I've will going innovative this remain with leaders important a the gain informed forward. these all into of insights of leadership our customer-centric, and team strategy maintains across to and

most nearly the from the I've everything and sure around roundtable to and on also discuss with hosted them. to hall is topics matter organizational our deep world. that time to the people make discussions dive meetings, from directly across design to that our and sessions our spent accessible town leadership organization hearing XX culture I've transparent people

it experiences how crystal These clear have incredible this is. organization to made me

Our core strong. products are

as remarkable. of people and expand the what real in years. we look Our coming vision accomplish a pride, There's sense optimism can of to are our excitement we

last many of deliver we to expanded vision. we in several team saw as this week, Now have announced leadership the place you changes right ensure to

on leaders at slide of new have culture a leaders We the internal testament on that roles are X strong and culture X to S&P of it's that Global, who a promotions. developing are this taking

we we As in wealth of at thrilled in as hope exactly a as we and announced of strong of the sector to Eric record and are Aboaf new very a that our brings join track to expect to S&P services we February CFO here welcome disciplined experience Global. the financial CFO, last of Eric continue week, him execution XXXX. a type

X, our will we become changes Intelligence Insights. making our of some are in Market division, Saugata having November the leadership. Commodity Effective We Saha announced President led previously week division also that last

Global Yann of the Le Global Pallec recently Ratings, served most Ratings having will become the S&P as Services. of President Head

Insights, co-Presidents and Trading who have Commodity Eramo, of Solutions leads Ernsberger, business. current the of Mark Reporting Fuels, the who currently Head Solutions will & We Dave business; is Chemicals & our Resource Market

S&P Global will Mobility indices by Draper. Edouard will Tavernier, continue led Dow leadership under Dan be S&P Jones continue to the of and

also we've our to functions highlight leadership, introduced. division horizontal I X addition that In to wanted

enterprise-wide role, his in In company's customers. S&P Saha full role Intelligence, Enterprise President to capabilities the also connect will estate, data will Saugata addition lead of vast as serve that expand of our our Data to Saugata harnessing First, and potential Chief Global's Market Officer. for as data efforts the

Lastly, Sally role Moore Chief Officer. will be newly of created assuming the Client

the often breadth we Global immense several Given products are to and of data S&P meet services who brings various the products with divisions. customers market, the that buying for

As Partnerships, across strong and the of and Strategy, a our capabilities understanding industry. deep current M&A Head of relationships has Sally

are In management our company her power role, commercial to S&P the bringing new at scale. establish she capability drive account will to across initiatives sure our full make we largest clients, and the enterprise-wide of that Global she'll to strategic lead an

leadership private and we executive at that our in our team execute XXXX, areas. focus in we sustainability markets, topics a against and data generative these and plan we well-defined are to Benchmarks, strong transition, in continue discussed strategic to our AI strategic investments initiatives. Day Investor were in With all position enterprise place, and energy

drive advantages areas are believe Back deep core to we reviews opportunities encouraging senior considered. from to investment. competencies, we across in And we strategic established growth organization incremental had as these market and And opportunities. key remains delivered, do that of July, previously attractive the the an the aligned teams in we to each competitive leaders of we our see was these what areas to work believe important identified beyond it teams

impact wanted around areas. strategic assure more performance the investments our remain we accountability but we strong initiatives to to I We on committed over continue and We will say as these you about to we're that all seeing each result. see a making are very in potential have to and time, of the transparency the

the for of our to remainder outlook turning XXXX. Now

for all Our Brent X.X% financial roughly previous expectations. X.X%, U.S. per growth in inflation line of barrel. an our crude guidance average of global These $XX with are price GDP and assumes of

around we the through While at our the is expectations variation there's least that pace in cut base in some assumption rate market U.S. the cuts see this case year rate the end year, one of more of

number XXXX business While for encouraging forward, results our our drive going financial remainder cuts we for not rate much of in of XXXX. variation parts various of the the to would in expect

we Given our last stability and are our outlook in outlook macroeconomic the we guidance, outperformance since significant provided XXXX. for increasing

are We Issuance for XXXX Billed points. percentage forecast our XX by increasing

see outperformance we in that XXXX. our growth increase in billed and approximately in to Billed XX% now likely Issuance, the positive are will expectation QX expecting QX total Given issuance

year-to-date, illustrates to the full again. factors, year company inform with results. GAAP exceptional increase once guidance guidance results the combined substantially our These for our This current decision financial our for slide

headline of We XXX to to $XX.XX the EPS for the a are and in in our range revenue our again the of diluted metrics, strength our of $XX.XX, given margin raising of now guidance. $X.XX outlook the fourth outlook adjusted expansion year XXX prior range XX.X%, growth quarter. the from full once improved basis representing and points, $X.XX We enterprise adjusted to increase all to XX.X% quarter third on for the expect

can guidance have increased from but adjusted prior approximately found also I our wanted Additional our release, be cash flow free details financial to million guidance $XXX consolidated billion, our up press in note our $X.X we for on to guidance.

the to invest we future As to balance in prioritize and continue continue growth moment, whole. the with we as need a I'll profitable company growth, discuss long-term to profitability near-term for for a

divisions, while far outlook The people today. enterprise businesses that with and our products, be will at in outperformance brands delivering XXXX an our market-driven in still reflected significant level, invest us so provides in our strength the our to and across opportunity of our

pull in far the discussed Chris across into the future will earlier, forward provide year in and will incentive year. technology capital increase compensation as to company investment strong some thus this outperformance this Specifically, XXXX also planned

impact the margin thing. while financial combined it investing some our stronger firmly tempering XXXX, deliver to over believe long in ability term. enhance products potential that in And in results has divisions good expansion This people the we our and of will a is enterprise

Moving to division our outlook.

Given in continued Market range the the XXXX. now range for we revenue mentioned our We customers, X% Doug of that facing Intelligence expect X.X%. the in to headwinds Services are Financial tightening growth growth

the strong growth to very are quarter third the the quarter, Ratings the revenue points full and now improved for for XX% expect percentage raising fourth range outlook Following the we guidance range by XX revenue of XX% for and the in year.

While in market-driven this best represents an reflects even largely more a and guidance guidance at investors Ratings the our term. business expectations back on predict time, difficult significant estimates increase we that from that our in is near the and provided based remind remains information we initial February, the to the available

issuance well and what we the guidance evolving at beginning as we have expected we XXXX progressed The the the throughout year, beyond has the adjusted environment our year. market in of saw dynamics

in and in allowed prior have meet to preserve the look that to our years XXXX, in capacity We invest and elevated are strong. year finishing us we demand decisions the pleased to forward

of the In raising to in to low range Commodity We tightening we've the revenue year. seen and X% growth the end now we the Insights, the reflect X.X%. expect are throughout strength range

well, X% expect In range we the tightening as revenue we X.X%. to are and range Mobility, of the in now

strength continued subscription AUM, the improved Indices, in Lastly, to year. an outlook ACV exchange-traded for led derivatives and the in

new to a points to of raising XX% X XX%. are percentage We range guidance by our

XX.X% range we XX%, margins margins. to lowering the tightening of Turning range expect due to to that outlook expenses in and earlier. In the Intelligence, the associated division revenue updated our with and elevated now prior compensation Market were discussed slightly

the revenue expect we margins higher XX% XX%. to expect and of year now full margins well in as to In improve Ratings, now range

In compensation we to XX%, planned impact of XX.X% Insights, and the are the tightening the strategic guidance expenses. investments strong to revenue range of a Commodity growth, reflecting

are the guidance of drive the investments performance to range and future a XX%, XX.X% we year-to-date Mobility, In to reflecting tightening the growth. continued to

and by to strategic range to offset incentive Indices, improved We expect now higher investments. expect margins, In the we margins XX.X%. compensation somewhat drive of growth in XX.X%

points able investments areas thrilled enterprise growth for of incremental upside passing while be in Compared still at the from to basis expect products, the we expansion to provided much more As of the this those further year higher now revenue XXX to are of year, we continue percentage identify we to the EPS. beginning and to and X investment guidance XX% growth, nearly people we prioritize margins. and initial adjusted margin X make both incremental points revenue to to the on XXX

come. solving that drive believe We this for value the and whole growth collective and will mindset long-term profitable years strong focus shareholder enterprise on for to

the With Mark questions. that, we will turn to call back for your

Mark Grant

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

Operator

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

Ashish Sabadra

that I down been segment execution further just MI on choppy. a wanted to drill the has bit

opportunity for how rationalization rationalization have seen, is And so further a that more leadership just as the portfolio there? Or get more steady business we execution? think about with the there that do new changes on and we of some we

Martina Cheung

very of Ashish, our seen there cancellations some during question. it's uptick the we in said of prepared smaller Intelligence, for Martina little certainly bit here. an customers. much as in Well, Thank the in you we've Market remarks, a

longer about talked cycles. budgets tightening of sales some pricing pressure, some and We

really important of that an the think I Ashish, around this seeing with point the end is and here end markets. market, some those headwinds we're is that

these as We're and move our their as making some innovation And drive cyclical maybe recovery we're headwinds, trough be move Market Intelligence. but cyclical would needs. say, focused or a evident are to and where sure bit confident our we while through customers very in it's that creating be products as on well. continuing a difficult the Now we're we're meeting points a touch I a forward, within to we customers with here, little very call will might the cycle -- for value we're there

yes, announced model answer this but it, to the your our ongoing we've X perhaps on of optimization And optimization. divestitures part of year, this is piece question portfolio portfolio around

businesses. We the we make are of sure and and product for they're the always very disciplined those our lines fit company and examining right are strategy a that across businesses to owners

something so future. in that's to that And do the we'll continue

Operator

Kaplan next Our Stanley. with comes from Morgan question Toni

Toni Kaplan

question a you Martina, I biggest where you bit for opportunity areas broad to in as wanted see of a mind. the your ask investment about of

but I Just is AI opportunity there probably any you've is the imagine company. others just really there, where the any you for up -- feel identified like

Martina Cheung

the for thanks Toni, question.

said we as Doug, leadership this phenomenal we've time even collectively quite we, new spent of frankly, a remarks, that As customers. in lot the months team, to better. And a the business make and as with several and in last is a meeting myself look a one team, opening will

in each secular that X tell you it of we is And presentation, the and in these only me few did during highlighted not got reaffirmation is that I'll X trends work excited we most in discussed Day the the the of -- is thing the that last we the was months, the strategy Investor XXXX. have. had I in

But where we've X those we've good opportunities for got within growth. we maybe also identified other think incremental new areas

be it. those and with of after leadership I things the So the to there would would new excitement highlight team a lot go

Douglas Peterson

Toni. Thanks,

Operator

with question Manav Our from Patnaik Barclays. comes next

Manav Patnaik

the comment ended the Martina, with done I collective whole. just -- think all wondering you've over for solving I I taking the on leading up the, with work was question you guess, here,

lot X whole going with a like feels big It there's on. businesses,

MI, broader in So the today. if in comments terms just simplification where made and it around stands curious have any the on of portfolio was I you you if thoughts company

Martina Cheung

capital capital be over management disciplined specifically much seen to returns and the CEO. as remain past going and management so very under we're And several you've Doug years around Look, to committed to very our for thanks shareholders. the question. Manav, us

I'll start saying by that. So

for the are whether And always look test last should and With are businesses, owners team right reprioritizing as we leadership as it's we same portfolio of to discipline amount at, the that with all that we'll that, we to we do. investments. do a continue constantly are will in the or new M&A, going going I those things we're the investing we said question, level it's whether be forward. management, right And redirecting

Douglas Peterson

Thank you, Manav.

Operator

from question Our Research. Wolfe with next comes Scott Wurtzel

Scott Wurtzel

we impacting that of we're where in the Just in of seeing of just some hit of see topic. any in are other geography to run in change rate the outperformance And choppiness of Intelligence the Market the in increasing on segments, wanted and the synergies to context Good are division? by the wondering seeing sort the some maybe there. synergy terms

Douglas Peterson

performance I Scott. And of about Across ahead we're we the areas the of pleased. board, our we talk This had incredibly of the well. one in at When expectations. -- the We when has done Thanks, I company, we're intradivision. what very look of is cross-sell Doug. talk synergy about cross-sell our as cross-sell, that particular, see,

have, example, to And getting cross-sell. we've that the excited about going XX we've are then very which to opportunity all also Market is quite going divisions bring products synergies. on and new a far We're for for to more divisions products, new year products Those Intelligence. been for doing across deliver out. our well, Moore Scott. is things services, the had continue be successful this so Thanks, track we up And new role new lot Sally on within to

Operator

comes question Bank. next from Our with Alwy Faiza Deutsche

Faiza Alwy

to about wanted ask I Ratings. So

very I you forward think, some XXXX for year, XXXX. a from year your issuance. comments, in it's strong even and certainly been This mentioned Doug, pull

X% And think factors And if 'XX the X% are you around early I'm the or have the is know some rate consider? to rate. 'XX, you've you to And curious any ago, long-term what was about growth I XXXX. of growth years that talked Do few thoughts achievable? a

Martina Cheung

And is we anticipated Martina. year. raised the that levels third Yes, time, so this issuance Ratings. believe, Faiza, the much this higher for for we've earlier the Thanks have than seen question. we of is certainly guidance in I

comes it when levels couple right and where maturities 'XX, now, dramatically we much they how forward different it's we pull forward, have XXXX we've refinancing cetera, for itself, and of what not into look seen was business the if pull to stand that years. et in last at the seen would The from

years, there that still $X wall over we is we to when in year do is calls, X maturity trillion from so very each the the for much say, a usually our And healthy as case next trillion us. that anywhere $X.X

actual also refinancing. we with exact that precision Now the can't timing always say we predict of

much that been to has so for this year, of example, And related spreads.

extent that forward. more certain pull forward the to pull ahead, that or to we could continuing see less things move impact So

biggest for issuance overall Moreover, I GDP is correlation in the actually us, say, would growth.

think pay close any would by business impacted next so is the this the of very we Ratings businesses GDP the attention that over and something And about years we as that to other several are growth.

to X% for Ratings. I on target on are a And to say the as and enterprise then, Investor And a for X% very an point the Thanks XXXX, for we question. track your the a would multiyear target whole, -- so finally, from Day, reaching that really for was much this 'XX XXXX, target. with to

Douglas Peterson

Thank you, Faiza.

Operator

David from Evercore. comes question with Motemaden next Our

David Motemaden

that Just the quarter. It that. like Wondering competition in -- picked could on a sounded Intelligence. elaborate wanted you if little bit to pricing up this the just on competition up follow Market

specifically X% secondly, to of within if thinking revenue Market maybe that about growth Intelligence, investment target. reach X% maybe are Martina, to incremental you're areas needed And the

Douglas Peterson

David. Thanks, Great.

me Let start.

when this many something As been the were area environment. up isn't for gone saw dramatically, There which had new and rates both slowed trends, the This We and lot buy side spiking. quarters. there's the we've sell the for on were had quite many, mentioned, pulling this us. were inflation headwinds of interest back side a investment when down banks

We have sales slowdown of cycle. the a seen

necessarily a the of this some we management So as opposed all in just being pricing, price This impact sensitivity. the have the area. and residual seen saw changes we to expense is that of

historically very has discussed, consolidation, been that we have us. We that seen call vendor to we beneficial something

the with when to more that sets us have and more bring they in talking gives them, have. an when discussions. we kind way It things start a many we don't organizations, opportunity how capabilities have of realize data We many these we

cycle slowdown. we well. sales been has pressure an business. incredibly some have We've The and some So pricing overall. some it We've incredibly yes, integration But seen seen synergies have is strong the consolidation. seen coming along, gone

to you. over Martina,

Martina Cheung

and as well, the that Intelligence commented, is going firmly back markets. we've in come innovation seen really this have the the remarks recovery, question. we're we've we're rates question. Doug, the say to see little but to a for earlier it would points, and going through the relates business end that never that increased trough, the market challenged some we'll growth as ones Thanks the not the we've in believe the we with call I into -- end Thanks, Market forward, been that discussed the very challenges we Doug value touch to as of far. thanks areas come the Yes. And a be with seen so that for of a story

Douglas Peterson

Thanks, David.

Operator

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

Craig Huber

best just here. I say Doug, years. I last for you've at to here, I job great thought company want you the XX the all done a forward going running guess, wish I

going You're for tough a to Martina act here. to follow be

what potentially about value? going to here But -- shareholder to is, don't what here here, But the you anything thing. different doing doing the of your anything enhance Of what question Martina, are you it's company here up my your course, do plan forward? want for think plans different you here, #X potentially we as you screw plans on what to

Martina Cheung

the that the new and I company, we the the completely been and bit than to question, as Craig. more very had before. agree divisions it to wonderful is really we leadership those Chief where scaled what hard it's areas strategic really act functions as are with team, better for accounts. you, follow. we plan this a you different focused And a Doug through have great is how we And can the And some make have for announced, much are does can capability across dot on some Thanks Officer here Commercial tell to connect it. I a

we to that provides office, the across organization. ways in with data interesting our And through looking can really pathways our us data growth connect together at enterprise which we're so it and easier

and the Thanks we're very the question. in we business, estates about excited one you data know, for potential have for the and deepest As the richest that. of

Douglas Peterson

Craig. Thanks,

Operator

Our next from JPMorgan. question Andrew Steinerman comes with

Alexander EM Hess

for Hess is Andrew. This Alex on

versus a for Index how On to falling Data should business, that Indices their of through you through of market the conviction touched about ask what the guys calling some Services an Custom piece in the you're your would you price the that peers Index & the challenging the strengths I in about end versus it get gives be Indices maybe landscape relative out maybe to business, helpful segment. on I'm know some and year? can thoughts in ACV we your going in the number walk actions think calling business? So and out Financial softness you on ETF one

Christopher Craig

for Chris. Sure. Alex, this is Thank you question. your

and long-term Indices. relationship solving for customer So are growth we first, at

to with will long-term expected preserve & than quarter. We take rather make in want line solving acceleration what some in sure steps the Custom see next in necessary We for with pricing. short-term we'll our we to the Data economics time relationships

ACV year-over-year. That revenue, now. initiatives going The see mid-teens are year. discussed we largest day increase quarter, acceleration expect said, in Data year to data of really ACV pick see & did Custom and to we the that some X% previously end the up group, we this to later really commercial in starting the the earlier and on

Douglas Peterson

Alex. Thanks,

Operator

Tong from with comes George question next Sachs. Goldman Our

Keen Fai Tong

Intelligence. growth should improve? low see the elaborate a growth conditions what growth to for for need little dive would what you see watermark Can MI would to you external expect to to performance And deeper into to respect on with Market wanted when I including to bit bottom you be, market out?

Martina Cheung

for recovery with question. cycle, see the customers, the that I earlier with in we're with a of here, conviction to mentioned innovation trough. financials Thanks low one not have to my have the this products, watermark, we George, touch in as Well, reflected we parlance, in core points that with we'll be call that George, response increased our the as good into our emerge as the going the we that's the very it's Martina. questions, the to the well trough But going customers. from one

tell other -- discrete green hearing we carefully. to little it continued And bit and could too shoots places. watch a about differ of here look, Financial I pressure are but this early by and Services, it's we'll very, very in there, would say within sector

continue about, the we we're our to that possible as products But excited with feel in for investments in Doug closely and really customers. mentioned, that quite question. which engage the place, good new Thanks as the we products have

Douglas Peterson

Thanks, George.

Operator

UBS. Our from with comes question next Alex Kramm

Alex Kramm

talk nicely backdrop of punching and energy year, your pretty I I forward? energy going Commodity outlook in above is little think seeing bit Insights still you medium-term about a Can market you're transition things know like early. kind what targets. you're more I But your the good. think Day this Investor here are

we're really you going think secular think -- I you on -- the you the of the upside? look forward, cyclicality maybe secular cyclical maybe the at to of So side, some the get think do of versus heart is do is prolonged here just worse? beginning question. going Or at as some So the and

Martina Cheung

excited so other much us gas, we several investing as and years it's Thanks as the forward have sort Well, things that performance various And business the of the been different areas quite and, we're for we there. excites Martina. and question. about you for like, the it's pieces, one some Alex, been breadth and go Commodity power Insights an diversification commodity now if the is in. of across we've oil the whether the embedded of

core really performance areas, larger nice also seen of investment the newer in addition performance we've see -- for to product areas. particular, great some In in we the

that's and doing been lots et we're around seeing the rapid launched example, carbon carbon voluntary it's for our teams well there, new are particular, In clean whether some cetera. we product very of low transition in that's products. the stuff growth of our other that tech market, received energy So assessments, been energy markets, had

So that a in the business good forward the in positions making here for sustaining to discipline here. products investments continue we very we're forward good going the going we question. and have, that core Thanks grow right areas think and overall think, and story will around the the

Douglas Peterson

Thanks, Alex.

Operator

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

Ryan Griffin

This is here on Ryan Jeff. for

from and seeing forward. buzz Market moment. going to it you're are credit was share you the going on market up positioned sounds the strength how heats up the in there on Private and win Just the competitive products think the and as revenues I Solutions, gets were curious going more XQ, at XX% your some on private succeed just in like

Martina Cheung

it been last over here. years, is something Martina very for we've it's Markets fast Private in us Ryan, the Thanks the question. and impacts investing portfolio. several the across in growing that and Well,

products have iLEVEL been come as conversations some I clients. Wall the for office, of senior transition Intelligence, and we've doing in that phenomenal in X and Street Market having products meetings up Doug have those have example, been our We and with

opportunities have in been seeing We making great assessments well Ratings the strides division you some really private as the interesting as as know, in also. also, with and ratings our Index markets business

best We're where in shareholders. returns we're our put So get it's Thanks to and going and overall, and in our this for invest which thoughtful ways private excited about there to transversal so this us. story we to to very opportunity Ryan. a there deliver prioritizing about good value prioritize it. is much, We're market many best we for continue going overall play can us. disciplined the because within are for this opportunity market. be return, But for And can area money customers the the within a the very

Douglas Peterson

Ryan. you, Thank

Operator

Jeff comes Baird. question Meuler with next from Our

Jeffrey Meuler

on high looks and positive multiple Just can subscription Vitality. Or for any growth recall a Is It's end, second the just trimmed there's the call-outs guidance? call-outs you've revenue you other Mobility still guidance? headwinds? quarter And in address the activity Mobility good. row it

Christopher Craig

the for thanks Jeff, question. Chris This again. is

we at this Even the over outage, a quarter, terrific sort subscription CDK in Mobility's digits low double little still, did of subscription double strong core first, really see digits. growth So growth coming -- business. with in

that next because an So be look -- easy we recall. to recall. when yes, mostly the XXXX But the challenge lap into of have really we will at year coming continues

continue be So that the to does in market. headwind that

Douglas Peterson

Jeff. you, Thank

Operator

comes Haas with Wells next Jason Our from Fargo. question

Jason Haas

you could the Curious products further if What that from customers. if of in pace what of about of you back do your you're adoption adoption rolling you're AI among out? them see seeing of AI the talk terms anything some holding

not, out can maybe rolled talk know Is you And terms your from if others Is don't of as learnings own it's but if it in data what I that. you it about relevant learn or then accuracy? budgetary? can AI and

Martina Cheung

Jason, the it's Thanks question. Martina. for

large the trained and I model as is the data. but quantity data as and saying, have without on, goes make it point quality only a anyway, that think I high-quality maybe I'll language of it's suppose of good lots we

about two our I into we And good we products. probably say about. how really would think integrating generative to so AI areas are feel

is them we how of of maybe different the we second create existing generative one better. make do AI. take products, versions data,using to to which So see cuts the is And opportunities products extent and new

say. tremendous I momentum, would we And have

could then you're of Kensho our Doug wave GenAI, that point, XXXX, this a because for in language in data machine have slides, the on a just that?" to of lot all we've we lot what thinking our And incredible of our we one and that a and highlighted. "Hey, had processing example, the of we about seen You've depth into we been riding of from way about clients natural saying, to data, and and you breadth that have, between using the have of your come customers, Kensho can lot and has actually talk learning, and us presentation learn your since how that

AI-ready really And from customers and data as fruitful of some have those conversations and a on interesting our been well. lot engagement

use GenAI the progress of Spark Spark internally. the So tool of a on the those just as some both well as Assist, Internally, said, really are on -- really, as examples. Doug incredible making we rollout we're training as Assist

across excited to learnings those more can seeing, employees to and able are conversations own the say all make I and the And adoption with share the that even that use our we're our cases about of uptick we're we type very clients and interesting.

that the say many seen organizations Assist we not I have taken, necessarily And other would approach same that the Spark thing. doing have we

our So in question. Thanks to the learnings customers share our lot terms of for and we great dialogue. have a with

Douglas Peterson

Thanks, Jason.

Operator

Our from next Lau Owen comes question Oppenheimer. with

Kwun Sum Lau

you products? how color launches? give the on should the there? product we What new about sustainability is And outlook more the please us Could think

Martina Cheung

leadership Owen, is week. we change it's Martina. question. Thanks the that we did so this when our area Well, much in a last for announcement an announced

the business SustainableX forward transition within Commodity essentially energy And group that a with and the still Insights. it will merged combine function from here Insights. products plan horizontal within is move to as and the -- assets Commodity So

for very us. this Now is exciting

division measure incredibly the about et helpful, their they're our these earlier, technologies, I cetera. of to transition. some whether some As said Services has they're what think for customers unique as not and Insights and ways are, new energy most financing the It's thinking about or proprietary emissions of for finance Financial example, Commodity

transition of And ways create these so sectors as commodity to clients Commodity allows the together those to really I help different this of will and Insights pulling products some capabilities and us navigating which they're multiple to allow high-value really bring the unique think, in us importantly, sector. we as outside our forward-looking can

question. it So And we the will we're thanks and more quite for talk about year. excited about it, next well,

Douglas Peterson

Thanks, Owen.

Operator

Our next Russell from Atlantic. Redburn question comes Quelch with

Russell Quelch

this is restricts now. lack of quarters Doug, back and pricing sort and permanently more many structural this a Market that I headcount to Intelligence, cyclical wanted please, been Desktop in function a you of wonder, TAM of for in mentioned opportunities of growth I pricing? area Service sales go in to growth narrative the to high headwinds competition specifically business. has terms Financial and

what can market you're you're can what how give or I in us you're asset a win would wondered if geographies flavor perhaps can -- it targeting, S&P that targeting, you classes what very it of sorry, also thinks sets and targeting, share helpful. customer Desktop be if give

Martina Cheung

would in And some mentioned other an additional end of we that I to private and say, sponsor additional the sectors. I example, is can in able this pick Structural much seeing the additional with green here's Well, that think constrained we here. that up make you'll now. But that strengths question. Financial area for are much business for it's growth shoots and this. business, area more a anything on market in we opposed where that's Service's Thanks credit, an of let's some also bit being consideration, see Martina that mentioned parts as something Russell, -- as actually our play else. example the do the us vertical earlier, is of is the good a as as are the to to, right point

Some Market banking banking incredible said, example, breadth good clients. our areas, Intelligence. have All such that in some within of with an for of green we some shoots being offerings

are engage the Alpha, Visible well performed to think very at year all highest this about think levels. top you when where of continue growth, areas which And can Desktop our these we clients has on we the

as expect and really the connect long-term We'd accounts, also Sally with to dots higher to effectively create our divisions able Moore's strategic value levels new the our customers. function Officer, Chief for of be across more Client

So thanks question. for the

Douglas Peterson

you, Thank Russell.

Operator

take now will Surinder We final our question Jefferies. Thind with from

Surinder Thind

of Following Chief the Officer role. up the creation on Client

You've approach or dots talked level. addressed? client can sense here that? at about of think customer provide a the have about the more that's in to bit Is sales connecting the Maybe service, how integrated you idea more challenge should being a we to the the color

Martina Cheung

for much the very thanks question. Surinder,

So a around we yes, your things. that question you consistency more we the in bit in some is, things are. how of fact, do It in mentioned

results know I last most And that." senior of that independent an you and going did we we'll didn't important Doug the one clients been is depth with have. more buy quite business. can dots heard we've teams who go the than breadth one that "I have And the or book several today that of customers full we products the don't probably months the but of maybe is of and have that products even point more over connecting -- buy from our The common across is, we products things the because out as division, the sales entire know are have as actually

everything bolstering first that the will with good that the we we clients our and breadth our that Sally going the for consistency sure practices for be be question. team depth have forward. also here a have bring looking around point do. this Thanks customers and understand that the go-to-market full strategic relationships overall She'll of to and So we some really making

Douglas Peterson

Thanks, Surinder.

the call for especially everyone I questions. And thank and to want today joining your great

I've transformation, exceptional customers. value the XX had significant to past honor and we've and our strived the S&P of always leading through Over shareholders to deliver years, our Global

and had This questions XXth I've call, tough the and I've with always and always that meetings you've discussion earnings learned. the the and is my hundreds of investors, asked. appreciated I've and dialogue analysts

company. to years they're to I the and Global XX,XXX growth the and I thank success. our to heart, brain know our deliver the And They continue people are going soul the reason in want of for innovation at the ahead. the and S&P

thank be and that I'm I role. Martina the want to great will shareholders. our going on with addition great and CEO and to a people to her fabulous the customers, our congratulate and commitment support and communities the new full a of she's her be confident to knowledge our a company,

we're ahead, This ever about I've world-class well I'm that lies positioned run and very talented we thank you enough. had. the a Board, can't what for a have excited and management the all very best future. team, I has been

Martina Cheung

remarkable much, Global. has that for those words transformed for heartfelt leadership and so you your S&P Thank Doug,

strengthening $XXX acquisition. our capabilities billion, from the $XX IHS cap fundamentally Markit market our billion grew while to You through

led legacy follow and upon. that to these a beyond with creating you've But impressive honored I'm extraordinary empathy wisdom, deeply numbers,

everyone joined today's So earnings thank speaking forward to you on our next call. call. look to I you who with

Operator

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

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

S&P Global (SPGI) 24 Oct 242024 Q3 Earnings call transcript