Business
/C O R R E C T I O N -- Morningstar, Inc./
On July 27, 2023, Morningstar, Inc. (Nasdaq: MORN) issued this amended press release (originally published on July 26, 2023), which corrects the calculation
About this update from Morningstar, Inc.
[{"type":"text","content":"On July 27, 2023, Morningstar, Inc. (Nasdaq: MORN) issued this amended press release (originally published on July 26, 2023), which corrects the calculation and related percentage changes of adjusted diluted net income per share for the quarter-ended June 30, 2023.\n\nMorningstar, Inc. Reports Second-Quarter 2023 Financial Results\n\n\nCHICAGO, July 26, 2023 /PRNewswire/ -- Morningstar, Inc. (Nasdaq: MORN), a leading provider of independent investment insights, posted solid second-quarter revenue growth, driven by the performance of its license-based products.\n\"Our license-based products continued to perform strongly, while transaction-based revenue was impacted by continued weakness in the issuance of commercial-mortgage-backed securities in the United States,\" said Kunal Kapoor, Morningstar's chief executive officer. \"We're managing the business with a focus on returning to our historical peak margins. We are also delivering on the integration of LCD into PitchBook, and recently launched Direct Lens to broaden the capabilities available to Direct clients.\"\nThe Company is introducing a quarterly shareholder letter to provide more context on its quarterly results and business, which can be found here.\nSecond-Quarter 2023 Financial Highlights\nReported revenue grew 7.3% to $504.7 million; organic revenue grew 5.1%.Reported operating income declined 22.6% to $41.7 million; adjusted operating income declined 5.0%. Reported results included $4.0 million in severance costs related to reorganizations in certain areas of the business, excluding activities related to our China operations. These severance costs contributed 7.4 percentage points to the decline in operating income and accounted for the full decline in adjusted operating income.Diluted net income per share increased 20.0% to $0.84 versus $0.70 in the prior-year period; adjusted diluted net income per share increased 11.1% to $1.30.Cash provided by operating activities decreased 64.3% to $24.5 million. Free cash flow was negative $5.8 million versus positive $37.0 million in the prior-year period. Cash flows were negatively impacted by certain items described below totaling $63.1 million. Excluding these items and similar items in the prior-year period for comparability, cash provided by operating activities and free cash flow would have decreased by 19.4% and 25.6%, ...