Morningstar, Inc. Reports Second-Quarter 2022 Financial Results

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[{"type":"text","content":"CHICAGO, July 27, 2022 /PRNewswire/ -- Morningstar, Inc. (Nasdaq: MORN), a leading provider of independent investment research, posted strong second-quarter revenue growth, highlighting continued momentum across the business.\n\"Our organic growth remains strong despite market headwinds,\" said Kunal Kapoor, Morningstar's chief executive officer. \"That success is the fruit of ongoing strategic investments that we are making in key business areas, including in compensation and benefits for our teams globally. While these investments have contributed to higher operating expenses in the near term, they position Morningstar for continued growth and the increased scale that we expect will drive long-term profitability. We were also excited to close two important transactions in the quarter, welcoming both LCD and Praemium's UK and International business into the Morningstar family.\"\nSecond-Quarter 2022 Financial Highlights\nRevenue increased 13.2% to $470.4 million; organic revenue grew 15.8%. The difference was largely driven by foreign currency adjustments due to the strong dollar.Operating income increased 14.2% to $53.9 million; adjusted operating income declined 23.9%, excluding intangible amortization expense and all other M&A-related expenses and earn-outs. Second-quarter results included an increase in stock-based compensation expense due in part to a scheduled step-up in the number of share units granted this year and expected overachievement of targets under the PitchBook management bonus plan, with PitchBook-related increases contributing 6.0 percentage points to the adjusted operating income decline.Diluted net income per share decreased 7.9% to $0.70 versus $0.76 in the prior-year period. Adjusted diluted net income per share decreased 33.5% to $1.17, excluding certain non-operating losses, intangible amortization expense, and all other M&A-related expenses and earn-outs.Cash provided by operating activities was $68.7 million in the quarter, a decrease of 46.0%. Free cash flow was $37.0 million compared to $108.5 million in the prior year. Excluding M&A-related earn-out payments, operating cash and free cash flow would have declined by 24.4% and 38.4% respectively.Share repurchases totaled 371,756 shares for a total of $91.9 million during the quarter.Year-to-Date Financial Highlights \nRevenue increased 14.7% to $927...

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