Business
Morningstar, Inc. Reports Third-Quarter 2021 Financial Results
CHICAGO, Oct. 27, 2021 /PRNewswire/ -- Morningstar, Inc. (Nasdaq: MORN), a leading provider of independent investment research, delivered strong revenue
About this update from Morningstar, Inc.
[{"type":"text","content":"CHICAGO, Oct. 27, 2021 /PRNewswire/ -- Morningstar, Inc. (Nasdaq: MORN), a leading provider of independent investment research, delivered strong revenue growth and cash generation in the third quarter of 2021.\n\"Our results reflect the myriad of opportunities we have seized to empower investor success,\" said Kunal Kapoor, Morningstar's chief executive officer. \"From individuals and financial advisors to institutions, issuers, and asset owners, Morningstar is uniquely positioned to deliver personalized investment solutions, enriched by the depth and breadth of the data, research, and ratings we have across public and private markets. Our solutions provide investors of any type with the information they need to make sound investment choices in pursuit of outcomes that impact their financial success, and that of the communities and causes that are important to them.\"\nThird-Quarter 2021 Financial Highlights\nRevenue increased 20.1% to $428.9 million; organic revenue increased 18.6%. Operating income increased 53.0% to $67.8 million; adjusted operating income decreased 8.4%. Diluted net income per share decreased 35.8% to $1.13 versus $1.76 in the prior-year period, which included a $1.18 per share holding gain related to Morningstar's previously held equity interest in Sustainalytics. Adjusted diluted net income per share decreased 11.0% to $1.38. Cash provided by operating activities increased 31.3% to $122.6 million, and free cash flow also increased 30.5% to $92.4 million.Year-to-Date Financial Highlights\nRevenue increased 22.6% to $1.2 billion; organic revenue growth was 16.2%. Operating income increased 21.4% to $182.2 million; adjusted operating income increased by 17.3%. Diluted net income per share decreased 7.9% to $3.16 versus $3.43 in the prior-year period. Adjusted diluted net income per share increased by 27.2%. Cash provided by operating activities increased 16.4% to $314.0 million. Free cash flow increased 12.7% to $242.4 million. Excluding $16.6 million of M&A-related earn-out payments, operating cash and free cash flow would have grown by 22.6% and 20.5%, respectively.Overview of Third-Quarter 2021 Financial Results\nRevenue for the period increased 20.1% to $428.9 million. Organic revenue, which excludes all M&A-related revenue and foreign currency effects, grew 18.6% compared with the prior-year period. The ...