Thomson Reuters Corporation · TSX:TRI
Thomson Reuters — Q4 2024 Earnings Presentation
27 slides from Thomson Reuters's earnings presentation, Feb 6, 2025
Slide 1: Thomson Reuters 2024 Fourth-Quarter Results
REUTERS/Kai Pfaffenbach Thomson Reuters 2024 Fourth-Quarter Results February 6, 2025 Thomson e
Slide 2: Agenda
Agenda • Welcome / Introduction Gary Bisbee • Fourth-Quarter & Full-Year 2024 Highlights Steve Hasker Tax & Accounting Professionals Overview SafeSend Acquisition • Financial Review Mike Eastwood Fourth-Quarter & Full-Year 2024 Results 2025 Full-Year Outlook and Updated 2026 Financial Framework • Q&
Slide 3: Special Note
Special Note Special Note Regarding Forward-Looking Statements, Material Assumptions and Material Risks This presentation consists of these slides and the associated remarks and comments, which are related and intended to be presented and understood together. Certain statements in this presentation
Slide 4: Fourth-Quarter & Full-Year 2024 Highlights
Thomson Reuters Fourth-Quarter & Full-Year 2024 Highlights Steve Hasker President & CEO Thomson Reuters WLL
Slide 5: Fourth-Quarter & Full-Year 2024 Highlights
Fourth-Quarter & Full-Year 2024 Highlights 1. Good momentum continues with Q4 results meeting expectations • Q4 organic revenue growth of 5%, driven by 8% recurring revenue growth • “Big 3” (Legal, Corporates, and Tax & Accounting) organic revenue growth of 8% • Modest Q4 adjusted EBITDA margin upsi
Slide 6: Fourth-Quarter 2024 Consolidated Results
Fourth-Quarter 2024 Consolidated Results IFRS Financial Measures ($ millions) 2024 2023 Change Revenues $1,909 $1,815 Up 5% Operating profit $722 $558 Up 29% Diluted earnings per share (EPS) $1.30 $1.49 Down 13% Net cash provided by operating activities $564 $705 Down 20% Change at Constant Organic
Slide 7: Fourth-Quarter 2024 Revenue Growth by Segment
Fourth-Quarter 2024 Revenue Growth by Segment Reported revenues up 5% to $1.9 billion Organic revenues up 5% Organic recurring revenues up 8% ÿ Tax & Legal Corporates Accounting Reuters News Global Print Professionals Professionals $0.7B $0.5B $0.4B $0.2B $0.1B Reported +4% +14% +6% -1% -6% Revenues
Slide 8: Full-Year 2024 Consolidated Results
Full-Year 2024 Consolidated Results IFRS Financial Measures ($ millions) 2024 2023 Change Revenues $7,258 $6,794 Up 7% Operating profit $2,109 $2,332 Down 10% Diluted EPS $4.89 $5.80 Down 16% Net cash provided by operating activities $2,457 $2,341 Up 5% Change at Constant Organic Non-IFRS Financial
Slide 9: Full-Year 2024 Actual Results vs. Updated Guidance
Full-Year 2024 Actual Results vs. Updated Guidance 2024 Outlook 2024 Results 2024 Total Thomson Reuters 11.05.24 Before Currency Reported Before Currency Total Revenue Growth ~ 7.0% 7.1% 6.8% Organic Revenue Growth (1) ~ 7.0% 7.1% 7.1% Adjusted EBITDA Margin (1) ~ 38% 38.1% 38.2% Corporate Costs $12
Slide 10: Tax & Accounting Professionals Overview; SafeSend Acquisition
Tax & Accounting Professionals Overview SafeSend Acquisition Thomson Reuters WLL
Slide 11: Tax & Accounting Professionals: Well Positioned to Continue Strong Track Record
Tax & Accounting Professionals: Well Positioned to Continue Strong Track Record Tax & Accounting Professionals “Thesis” Strong Track Record of Growth 10% Tax & Accounting Professionals has a track record 10% of delivering strong, consistent growth 9% 9% We compete in a large and growing market with
Slide 12: SafeSend Acquisition: Strong Strategic Fit and Accretive to Growth
SafeSend Acquisition: Strong Strategic Fit and Accretive to Growth SafeSend’s cloud-native software automates key tasks required to deliver and file a prepared return, eliminating time consuming manual steps Core Platform – Delivery & eSign Capabilities SafeSend Secure platform for clients to review
Slide 13: Tax & Accounting Professionals: end-to-end tax automation platform
Tax & Accounting Professionals: end-to-end tax automation platform SafeSend integrates with our upstream capabilities to create an end-to-end tax automation solution and along with Materia accelerates our transformative Tax AI vision. Prepare Research & Deliver & Tax Workflow Gather Advise Return Re
Slide 14: Financial Review
Financial Review Fourth-Quarter & Full-Year 2024 Results 2025 Outlook and Updated 2026 Financial Framework Mike Eastwood Chief Financial Officer Thomson Reuters WLL
Slide 15: Legal, Corporates, Tax & Accounting Professionals Revenues
Fourth-Quarter & Full-Year 2024 Legal Professionals, Corporates, Tax & Accounting Professionals Revenues ($ millions) Fourth Quarter Full Year Constant Constant Revenues 2024 2023 Total Currency Organic 2024 2023 Total Currency Organic Legal Professionals 729 700 +4% +4% +7% 2,922 2,807 +4% +4% +7%
Slide 16: Fourth-Quarter & Full-Year 2024 Consolidated Revenues
Fourth-Quarter & Full-Year 2024 Consolidated Revenues ($ millions) Fourth Quarter Full Year Constant Constant Revenues 2024 2023 Total Currency Organic 2024 2023 Total Currency Organic Legal Professionals 729 700 +4% +4% +7% 2,922 2,807 +4% +4% +7% Corporates 458 402 +14% +15% +10% 1,844 1,620 +14%
Slide 17: Consolidated Adjusted EBITDA
Fourth-Quarter & Full-Year 2024 Consolidated Adjusted EBITDA ($ millions) Fourth Quarter Full Year Constant Constant Adjusted EBITDA 2024 2023 Total Currency 2024 2023 Total Currency Legal Professionals 299 298 - -1% 1,302 1,299 - - Margin 41.0% 42.5% 44.6% 46.2% Corporates 153 138 +11% +8% 671 619
Slide 18: Adjusted Earnings Per Share (EPS)
Adjusted Earnings Per Share (EPS) ($ millions except per share amounts & share count) Fourth Quarter Full Year 2024 2023 % Change 2024 2023 % Change Adjusted EBITDA 718 707 +2% 2,779 2,678 +4% Depreciation & Amortization of Computer Software (186) (164) (731) (628) Add back: Acquired Software Amorti
Slide 19: Consolidated Free Cash Flow
Consolidated Free Cash Flow ($ millions) Fourth Quarter Full Year 2024 2023 Change 2024 2023 Change Net Cash from Operations, before change in WC 640 665 (25) 2,281 1,884 397 Changes in working capital and other items (76) 40 (116) 176 457 (281) Net Cash Provided by Operating Activities 564 705 (141
Slide 20: Capital Structure and Allocation Updates
Capital Structure and Allocation Updates Thomson Reuters WLL
Slide 21: Significant Financial Capacity – Fortress Balance Sheet
Significant Financial Capacity – Fortress Balance Sheet • Capital structure and liquidity position remain strong: • Capital Capacity expected to grow to ~$10B by 2027 • Expected to provide significant organic and inorganic growth opportunities; continue to assess acquisition candidates • Net Debt /
Slide 22: Balanced Capital Allocation: Buybacks/Return of Capital
Balanced Capital Allocation: Buybacks/Return of Capital Returned $7.1 billion to shareholders over the past 6 years Completed $1.0B NCIB in May 2024 Annual Share Buyback / Return of Capital Share Count (Period End) Return of Capital NCIB / Buybacks $2.0B $1.4B $1.3B 497M 497M 486M $1.1B 476M $0.5B $
Slide 23: Balanced Capital Allocation: Long History of Dividend Growth
Balanced Capital Allocation: Long History of Dividend Growth 32 Consecutive Years of Annual Dividend Increases 2025 Annualized Dividend Increased $0.22 to $2.38, a Fourth Consecutive 10% Increase Annualized Dividend per Common Share $2.50 $2.38 $2.00 $1.50 $1.00 $0.50 $0.00 2003 2008 2015 2011 2025
Slide 24: 2025 Outlook Updated 2026 Financial Framework
2025 Outlook Updated 2026 Financial Framework Thomson Reuters WLL
Slide 25: Additional Financial Updates
Additional Financial Updates • We expect 2025 revenue to be ~$60 million, before the fair value adjustment to acquired SafeSend deferred revenue Acquisition • SafeSend has healthy profitability, though we see it being roughly neutral to 2025 profits including integration and growth investments • The
Slide 26: 2025 Outlook and 2026 Framework
2025 Outlook and 2026 Framework FY 2024 FY 2025 2026 Total Thomson Reuters Outlook (2) Framework (2) Reported 2/6/25 Total Revenue Growth 7% 3.0% - 3.5% Organic Revenue Growth (1) 7% 7.0% - 7.5% 7.5% - 8.0% Adjusted EBITDA Margin (1) 38.2% ~ 39% +50 bps Y/Y Corporate Costs $105 million $120 - $130 m
Slide 27: Q&A
Q&A 25% Thomson os -" Reuters