Morningstar, Inc. Reports Fourth-Quarter, Full-Year 2021 Financial Results

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[{"type":"text","content":"CHICAGO, Feb. 24, 2022 /PRNewswire/ -- Morningstar, Inc. (Nasdaq: MORN), a leading provider of independent investment research, posted strong fourth-quarter revenue and cash generation, capping a year of significant growth across the business.\n\"A widening pool of investors is redefining the composition of a modern portfolio,\" said Kunal Kapoor, Morningstar's chief executive officer. \"Our results demonstrate that we are rising to meet the opportunities created by this changing picture. The trends toward personalization, focus on ESG factors, and greater allocations to alternatives continue to gather momentum, making our mission of empowering investor success as relevant as ever.\"\nFourth-Quarter 2021 Financial Highlights\nRevenue increased 21.5% to $462.2 million; organic revenue increased 21.4%. Operating income increased 14.9% to $74.8 million; adjusted operating income grew 7.8%. Diluted net income per share decreased 25.3% to $1.30 versus $1.74 in the prior-year period. The prior period included $0.51 of non-operating gains. Adjusted diluted net income per share decreased 4.5% to $1.50. Cash provided by operating activities increased 18.6% to $135.9 million, and free cash flow also increased 14.1% to $105.7 million.Full-Year 2021 Financial Highlights\nRevenue increased 22.3% to $1.7 billion; organic revenue growth was 17.6%. Operating income increased 19.4% to $257.0 million; adjusted operating income grew 14.7%. Diluted net income per share decreased 14.1% to $4.45 versus $5.18 in the prior-year period, which included a $1.18 per share holding gain related to Morningstar's previously held equity interest in Sustainalytics and $0.51 per share of non-operating gains. Adjusted diluted net income per share increased by 17.8%. Cash provided by operating activities increased 17.1% to $449.9 million. Free cash flow increased 13.2% to $348.1 million. Overview of Financial Results\nFourth-Quarter 2021 Results\nRevenue for the period increased 21.5% to $462.2 million. Organic revenue, which excludes all M&A-related revenue and foreign currency effects, grew 21.4% compared with the prior-year period, reflecting broad-based revenue growth across products and geographies. \nLicense-based revenue grew 18.3% year over year, or 18.5% on an organic basis. PitchBook, Sustainalytics, and Morningstar Data were the top contributors to licen...

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