Slide 1: Fourth Quarter and Full Year 2024 Earnings Call
Fourth Quarter and Full Year 2024 Earnings Call February 13, 2025
Slide 2: Shivani Kak, Head of Investor Relations
Shivani Kak HEAD OF INVESTOR RELATIONS Fourth Quarter and Full Year 2024 - Earnings Call 2
Slide 3: Disclaimer
Disclaimer Certain statements contained in this document are forward-looking statements and are based on future expectations, plans and prospects for Moody’s business and operations that involve a number of risks and uncertainties. Such statements involve estimates, projections, goals, forecasts, as
Slide 4: Rob Fauber, President and Chief Executive Officer
Rob Fauber PRESIDENT AND CHIEF EXECUTIVE OFFICER Fourth Quarter and Full Year 2024 - Earnings Call 4
Slide 5: Key Takeaways
Key Takeaways Moody’s delivered exceptional results 1 Full year 2024 revenue grew 20% to $7.1B; Adjusted Operating Margin 1 up 420bps to 48.1%; Adjusted Diluted EPS1 increased 26% to $12.47 MIS full year revenue grew an impressive 33% 2 Transactional revenue grew 54% on issuance growth of 42%; Adjus
Slide 6: Delivering value for our customers throughout 2024
Delivering value for our customers throughout 2024 Investing to strengthen our core business and accelerate future growth Moody’s Moody’s Partnerships and Investors Service Analytics Collaborations #1 Best Credit Rating Agency #1 in Chartis RiskTech100® for 3rd Market expansion and access to n
Slide 7: Deep currents underpin 2025 MCO outlook
Deep currents underpin 2025 MCO outlook1 Adjusted Adjusted Revenue Growth HSD% Operating Margin2 ~50% Diluted EPS2 $14.00 toMCO $14.50 Strengthening position Building scale across Accelerating platforming Optimizing our as the Agency of Choice high-growth areas and product innovation operating model
Slide 8: Noémie Heuland, Chief Financial Officer
Noémie Heuland CHIEF FINANCIAL OFFICER Fourth Quarter and Full Year 2024 - Earnings Call 8
Slide 9: Strong Q4 performance caps off outstanding 2024 financial results
Strong Q4 performance caps off outstanding 2024 financial results MCO Full Year 2024 $7.1B 20% 48.1% $12.47 34% Revenue Revenue Adjusted Adjusted Free Cash Growth1 Operating Margin2 Diluted EPS2 Flow Growth1,2 MA Full Year 2024 MIS Full Year 2024 8% 9% 9% 30.7% 33% 54% 42% 60.1% Revenue Recurring AR
Slide 10: MCO: full year 2025 guidance
MCO: full year 2025 guidance1 AS OF FEBRUARY 13, 2025 MOODY’S CORPORATION Revenue Growth High-single-digit % range Operating Expense Growth Low-to-mid-single-digit % range Adjusted Operating Margin2 Approximately 50% Diluted EPS $12.75 to $13.25 Adjusted Diluted EPS2 $14.00 to $14.50 Share Repurchas
Slide 11: MIS: issuance backdrop for 2025
MIS: issuance backdrop for 2025 ISSUANCE FACTORS ISSUANCE GUIDANCE1,2 MACROECONOMICS & POLICY Total MIS Rated Issuance LSD % Fiscal policy stance, trade, immigration, industrial policies, and regulation Investment Grade MSD % Global growth prospects Geopolitical risks Leveraged Loans (MSD %) I
Slide 12: MIS & MA: full year 2025 guidance
MIS & MA: full year 2025 guidance1 AS OF FEBRUARY 13, 2025 MOODY’S INVESTORS SERVICE Issuance Growth2 Low-single-digit % range Revenue Growth Mid-to-high-single-digit % range Adjusted Operating Margin 62% - 63% MOODY’S ANALYTICS Revenue Growth High-single-digit % range ARR Growth3 High-single-digit
Slide 13: MCO: a powerhouse compounding shareholder value
MCO: a powerhouse compounding shareholder value Update to previously set medium-term targets; raising Adjusted Diluted EPS1 AS OF FEBRUARY 13, 2024 AS OF FEBRUARY 13, 20251 2022 Base Year 2022 Base Year MCO Revenue At least 10% growth High-single to low-double-digit % growth MCO Adjusted Operating M
Slide 14: Questions and Answers
Rob Fauber PRESIDENT AND CHIEF EXECUTIVE OFFICER Noémie Heuland CHIEF FINANCIAL OFFICER Questions and Stephen Tulenko Answers PRESIDENT – MOODY'S ANALYTICS Michael West PRESIDENT – MOODY’S INVESTORS SERVICE Fourth Quarter and Full Year 2024 - Earnings Call 14
Slide 15: Supplemental Information
Supplemental Information Fourth Quarter and Full Year 2024 - Earnings Call 15
Slide 16: MA: quarterly performance
MA: quarterly performance REVENUE ADJUSTED OPERATING MARGIN $863 $796 YoY 33.8% 8% Change $218 240bps $205 6% 31.4% $243 $ Millions $230 6% $361 $402 11% 4Q23 4Q24 4Q23 4Q24 Decision Solutions Research & Insights Data & Information 1. Foreign currency did not have a material impact on revenue growth
Slide 17: MA: full year 2024 results
MA: full year 2024 results $3.3B $3.3B REVENUE1 ARR1,2 6% 9% Banking 10% DECISION SOLUTIONS 12% Banking 9% 12% Insurance 5% RESEARCH & INSIGHTS 6% Insurance 18% 8% DATA & INFORMATION 8% 17% KYC KYC 8% TOTAL MA 9% 1. Percentages represent year-over-year growth. 2. ARR: Annualized Recurring Revenue. A
Slide 18: MA: building on a foundation of strong customer retention
MA: building on a foundation of strong customer retention MA ARR1 GROWTH ATTRIBUTION 94% 7% 9% 109% Year-end 20242 Retained Base Upgrades and Price New Sales Business Base 7% 9% 110% Year-end 94% 2023 Retained Base Upgrades and Price New Sales Business Base 94% 7% 9% 110% Year-end 2022 Retained Base
Slide 19: MA: financial overview
MA: financial overview Decision Solutions Research & Insights Data & Information Revenue: Mix by Quarter Revenue: Distribution by Line of Business Revenue: Mix by Year 1,200 100% 3,500 90% 25% 26% 26% 26% 26% 27% 26% 26% 25% 3,000 80% $853 900 $789 $ Millions $ Millions 70% 2,500 $712 $213 $218 60%
Slide 20: MIS: quarterly performance
MIS: quarterly performance REVENUE ISSUANCE2 $1,253 YoY $809 Change 33% $ Billions 18% $115 10% $942 $684 $105 $167 27% $ Millions $132 $138 35% 4Q23 4Q24 $102 ADJUSTED OPERATING MARGIN 51.9% $381 13% 51.3% $337 (60bps) 4Q23 4Q24 CFG SFG FIG PPIF MIS Other 1 4Q23 4Q24 1. MIS Other revenue was approx
Slide 21: MIS: full year 2024 results
MIS: full year 2024 results Transactional revenue growth of 54% outpaced issuance REVENUE ISSUANCE2 YoY $3,793 Change Total MIS Rated Issuance 42% $564 18% $2,860 33% Investment Grade 29% $727 33% $ Millions $476 Leveraged Loans 118% $518 28% $545 High Yield Bonds 80% $405 39% $1,950 Structured Fina
Slide 22: MIS: macroeconomic assumptions underpinning our full year 2025 outlook
MIS: macroeconomic assumptions underpinning our full year 2025 outlook1 MACROECONOMIC ASSUMPTIONS TAILWINDS → Real GDP2: U.S.: 1.5% - 2.5%; Euro area: 0.5% - 1.5%; Global: 2.0% - 3.0% Central banks continue to normalize rates as inflation eases → Global policy rates will continue to normalize throug
Slide 23: MCO: strategic expense management supports investments in high-growth areas
MCO: strategic expense management supports investments in high-growth areas FY 2024 vs. FY 2025F1 Strategy and Operational Increase in the Efficiency Restructuring 0.5% to 1.0% LSD to MSD % Program1 ~1.0% range 1.5% to 2.0% ~(1.0%) Aligns operations toward 2.5% to 3.5% ~(1.0%) high-priority growth
Slide 24: Strong refinancing needs support future issuance
Strong refinancing needs support future issuance DEBT MATURITIES: Moody’s-rated U.S. Non-Financial Corporate Bonds and Loans ($B)1,2 → Refinancing needs up from ~$4.4T to ~$4.9T Speculative Grade Bank Loans $980 over the next four Speculative Grade Bonds years $681 Investment Grade $548 $554 → U.S.
Slide 25: Overview of recent refunding wall studies
Overview of recent refunding wall studies1,2 INVESTMENT GRADE 4-YEAR REFUNDING WALL STUDIES SPECULATIVE GRADE 4-YEAR REFUNDING WALL STUDIES U.S. Investment Grade EMEA Investment Grade U.S. Spec Grade EMEA Spec Grade 3,000 $2,684 3,000 $2,372 $2,549 ~7% ~5% $2,180 $ Billions $1,825 $ Billions 2,000 2
Slide 26: Corporate Finance: issuance and revenue
Corporate Finance: issuance1 and revenue Global Issuance2: Mix by Quarter MIS Revenue3: Mix by Year Other 4 Investment Grade Speculative Grade Bank Loans Global Non-Financial Speculative-Grade Bonds 2,500 Global Non-Financial Investment-Grade Bonds 2,000 500 $287 $606 $527 $ Millions 1,500 $313 $352
Slide 27: Corporate Finance: revenue
Corporate Finance: revenue MIS Revenue1: Distribution by Geography Non-U.S. U.S. MIS Revenue1: Distribution by Recurring vs. Transaction Transaction Recurring 100% 100% 90% 90% 25% 26% 26% 27% 80% 80% 39% 35% 35% 38% 39% 37% 35% 50% 70% 63% 65% 70% 66% 69% 65% 70% 67% 68% 70% 71% 67% 68% 60% 60% 50%
Slide 28: Financial Institutions: issuance and revenue
Financial Institutions: issuance1 and revenue 4 Global Issuance2: Mix by Quarter MIS Revenue3: Mix by Year Banking Insurance Managed Investments Other Global Speculative Grade Financial Corporate Bonds 800 Global Investment Grade Financial Corporate Bonds $14 700 $49 $10 700 600 $10 $36 $12 $214 $12
Slide 29: Financial Institutions: revenue
Financial Institutions: revenue MIS Revenue1: Distribution by Geography Non-U.S. U.S. MIS Revenue1: Distribution by Recurring vs. Transaction Transaction Recurring 100% 100% 90% 90% 80% 41% 80% 37% 41% 43% 47% 45% 44% 49% 46% 50% 50% 46% 47% 50% 53% 53% 53% 51% 55% 53% 70% 56% 70% 58% 57% 59% 60% 60
Slide 30: Infrastructure issuance; Public, Project & Infrastructure revenue
Infrastructure issuance1; Public, Project & Infrastructure revenue MIS Revenue3: Mix by Year 600 Public Finance and Sovereign Project & Infrastructure Finance Global Issuance2: Mix by Quarter Global Infrastructure Finance Speculative-Grade Bonds 500 Global Infrastructure Finance Investment-Grade Bon
Slide 31: Public, Project & Infrastructure: revenue
Public, Project & Infrastructure: revenue MIS Revenue1: Distribution by Geography MIS Revenue1: Distribution by Recurring vs. Transaction Transaction Recurring Non-U.S. U.S. 100% 100% 90% 90% 33% 34% 32% 29% 29% 32% 80% 80% 39% 39% 42% 37% 40% 45% 70% 60% 62% 59% 60% 61% 61% 61% 64% 64% 70% 65% 65%
Slide 32: Structured Finance: revenue
Structured Finance: revenue MIS Revenue1: Mix by Year ABS RMBS CMBS Structured Credit Other MIS Revenue1: Mix by Quarter ABS RMBS CMBS Structured Credit Other 160 600 $2 $3 140 $1 $1 $0 500 $2 $2 $215 120 $1 $4 $3 $193 $49 $55 400 $0 $1 $1 $50 $140 $1 $ Millions $ Millions $196 $2 100 $1 $148 $39 $1
Slide 33: Structured Finance: revenue
Structured Finance: revenue MIS Revenue1: Distribution by Geography Non-U.S. U.S. MIS Revenue1: Distribution by Recurring vs. Transaction Transaction Recurring 100% 100% 90% 90% 80% 80% 43% 42% 42% 43% 44% 52% 53% 52% 53% 53% 48% 70% 59% 70% 55% 63% 67% 62% 64% 65% 62% 67% 70% 73% 74% 71% 60% 60% 50
Slide 34: MCO: investing for growth while returning capital to shareholders
MCO: investing for growth while returning capital to shareholders Global Free Cash Flow (FCF)1 Share Repurchases Dividends FCF to Adjusted Net Income Conversion1 Shareholder Return % of FCF1 111% ~97% 103% 76% ~80% $0.6B ~$0.7B 56% $2.5B $2.4-2.6B $1.9B $0.6B $1.3B At least $1.3B $0.5B 2023 2024 202
Slide 35: Teleconference details
Teleconference details DIAL IN REPLAY AVAILABLE FROM February 13, 2025, through February 20, 2025. Webcast Dial In Dial In Replay → Go to ir.moodys.com → U.S. & Canada: → U.S. & Canada: → Click on “Events & +1-888-596-4144 +1-800-770-2030 Presentations” → Non-U.S. & Canada: → Non-U.S. & Canada: → Cl
Slide 36: Moody's attendance at upcoming conferences
Moody’s attendance at upcoming conferences Mar 3 Raymond James 2025 Annual Institutional Investors Conference Mar 11 Wolfe Research 2025 Fintech Forum Fourth Quarter and Full Year 2024 - Earnings Call 36
Slide 37: Appendix
Appendix Fourth Quarter and Full Year 2024 - Earnings Call 37
Slide 38: Glossary of terms and abbreviations
Glossary of terms and abbreviations Term Definition CFG Corporate finance group; an LOB within MIS D&I The Data & Information LOB within MA, which provides vast data sets on companies and securities via data feeds and data applications products The Decision Solutions LOB within MA that provides subs
Slide 39: Annualized Recurring Revenue (ARR)
Annualized Recurring Revenue (ARR) The Company presents ARR on a constant currency organic basis for its MA business as a supplemental performance metric to provide additional insight on the estimated value of MA's recurring revenue contracts at a given point in time. The Company uses ARR to manage
Slide 40: Financial information by segment
Financial information by segment The table below shows revenue and Adjusted Operating Income by reportable segment. Adjusted Operating Income is a financial metric utilized by the Company’s chief operating decision maker to assess the profitability of each reportable segment. Fourth Quarter and Full
Slide 41: Financial information by segment (Cont'd)
Financial information by segment (Cont’d) The table below shows revenue and Adjusted Operating Income by reportable segment. Adjusted Operating Income is a financial metric utilized by the Company’s chief operating decision maker to assess the profitability of each reportable segment. 1. (1) During
Slide 42: Adjusted Operating Income and Adjusted Operating Margin
Adjusted Operating Income and Adjusted Operating Margin The Company presents Adjusted Operating Income and Adjusted Operating Margin because management deems these metrics to be useful measures to provide additional perspective on Moody's operating performance. Adjusted Operating Income excludes the
Slide 43: Free Cash Flow
Free Cash Flow The Company defines Free Cash Flow as net cash provided by operating activities minus cash paid for capital additions. Management believes that Free Cash Flow is a useful metric in assessing the Company’s cash flows to service debt, pay dividends and to fund acquisitions and share rep
Slide 44: Adjusted Net Income and Adjusted Diluted EPS
Adjusted Net Income and Adjusted Diluted EPS attributable to Moody's common shareholders The Company presents Adjusted Net Income and Adjusted Diluted EPS because management deems these metrics to be useful measures to provide additional perspective on Moody's operating performance. Adjusted Net Inc
Slide 45: Adjusted Net Income and Adjusted Diluted EPS (Cont'd)
Adjusted Net Income and Adjusted Diluted EPS attributable to Moody's common shareholders (Cont’d) The Company presents Adjusted Net Income and Adjusted Diluted EPS because management deems these metrics to be useful measures to provide additional perspective on Moody's operating performance. Adjuste
Slide 46: Constant currency revenue growth
Constant currency revenue growth The Company presents constant currency revenue growth (decline) as its non-GAAP measure of revenue growth (decline). Management deems this measure to be useful in providing additional perspective in assessing the Company's revenue growth (decline) excluding the impac
Slide 47: 2025 outlook reconciliations
2025 outlook reconciliations The following are reconciliations of the Company's adjusted forward looking measures to their comparable U.S. GAAP measure: Fourth Quarter and Full Year 2024 - Earnings Call 47
Slide 48: Key assumptions underlying our medium-term targets
Key assumptions underlying our medium-term targets1 Moody’s medium-term targets refer to a time period within 5 years from the base year 2022 and reflect assumptions about numerous factors that could affect its business and is based on currently available information reviewed by management through a
Slide 49: Moody's copyright and ratings disclaimer
© 2025 Moody’s Corporation, Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and/or their licensors and affiliates such losses or damages, including but not limited to: (a) any loss of present or prospective profits or (b) any loss or damage arising (collectively, “MOODY’S”). All rights rese