Morningstar, Inc. Reports Fourth-Quarter, Full-Year 2022 Financial Results

About this update from Morningstar, Inc.

[{"type":"text","content":"CHICAGO, Feb. 23, 2023 /PRNewswire/ -- Morningstar, Inc. (Nasdaq: MORN), a leading provider of independent investment insights, posted positive fourth-quarter revenue growth as continued momentum in the license-based areas of the business offset declines in asset-based and transaction-based areas. For the full year, the Company reported double-digit revenue growth, highlighting the diversity of the business and key contributions from license-based product areas.\n\"Although market headwinds and interest-rate volatility proved challenging for certain product areas in the fourth quarter, our license-based products, particularly PitchBook, Morningstar Sustainalytics, Morningstar Direct, and Morningstar Data, showed remarkable strength, helping deliver positive organic growth in the quarter and double-digit organic growth for Morningstar in 2022,\" said Kunal Kapoor, Morningstar's chief executive officer. \"During the year, we made important investments to support future growth, with highlights including the launch of direct indexing, the introduction of new climate risk metrics, and the acquisition of Leveraged Commentary & Data (LCD), which expanded the scope of our data and analytics to include private debt. As we enter 2023, we look forward to seeing the impact of these investments. We also acknowledge continued uncertainty in the economic environment and are taking a cautious approach to managing the business.\"\nFourth-Quarter 2022 Financial Highlights\nRevenue increased 2.8% to $475.0 million; organic revenue increased 2.2%.Operating income decreased 52.5% to $35.5 million; adjusted operating income decreased 27.2%. Reported results included higher stock-based compensation expense primarily due to the overachievement of targets under the PitchBook management bonus plan, which contributed 13.2 percentage points to the operating income decline and 10.9 percentage points to the adjusted operating income decline.Diluted net income per share decreased 93.8% to $0.08 versus $1.30 in the prior-year period. Adjusted diluted net income per share decreased 61.3% to $0.58.Cash provided by operating activities decreased 23.8% to $103.5 million, and free cash flow also decreased 36.2% to $67.4 million.Full-Year 2022 Financial Highlights\nRevenue increased 10.1% to $1.9 billion; organic revenue increased 10.8%.Operating income decreased 34...

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