Morningstar, Inc. Reports First-Quarter 2019 Financial Results

About this update from Morningstar, Inc.

[{"type":"text","content":"CHICAGO, April 24, 2019 /PRNewswire/ -- Morningstar, Inc. (Nasdaq: MORN), a leading provider of independent investment research, today announced first-quarter 2019 financial results. Reported results reflect continued growth and momentum in licensed-based revenue and strong cash flow generation.\nFirst-Quarter Financial Highlights\nRevenue increased 6.3% to $258.9 million; organic revenue growth increased 8.3%. Operating income rose 4.2% to $49.5 million. Diluted net income per share decreased 21.4% to $0.77, versus $0.98 in the first quarter of 2018. Results included an increase in stock-based compensation, due primarily to the achievement of incentive targets under the PitchBook management bonus plan, which reduced diluted net income per share by $0.06. Additionally, net income in the first quarter of 2018 included an after-tax gain of $0.18 per diluted share from the sale of our 15(c) board consulting services product line. Cash provided by operating activities remained strong at $59.0 million, consistent with the prior year period, and free cash flow was $40.3 million.\"We began 2019 with continued emphasis on sustainable organic growth. Our licensing and credit ratings businesses performed particularly well, continuing momentum from 2018,\" said Kunal Kapoor, Morningstar's chief executive officer. \"We experienced some headwinds in asset-based solutions, as the carryover effects from the late 2018 market decline affected investor confidence early in 2019. As a result, flows into Morningstar Managed Portfolios were weaker than we anticipated in the quarter. Despite that, we are pleased with our progress in Investment Management and continue to enhance the solutions we are offering investors, including through our recently launched mutual funds in the U.S. The state of the overall business is strong and gives us confidence to continue investing across our growth areas.\"\nOverview of First-Quarter 2019 Financial ResultsRevenue for the first quarter of 2019 was $258.9 million, an increase of 6.3% compared with the first quarter of 2018, or 8.3% higher on an organic basis due to the impact of foreign currency translation. License-based revenue grew 9.5% year over year, driven by strong demand for PitchBook, Morningstar Data, and Morningstar Direct.\nAsset-based revenue decreased 3.7% year over year. Although equity markets rall...

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