Slide 1: First Quarter 2025 Earnings Presentation
First Quarter 2025 Earnings Presentation April 22, 2025 © 2025 MSCI Inc. All rights reserved.
Slide 2: Forward-Looking Statements
Introduction → Forward-Looking → This earnings presentation contains forward- looking statements within the meaning of the → Other factors that could materially affect actual results, levels of activity, performance Statements Private Securities Litigation Reform Act of 1995, including without limit
Slide 3: Other Information
Introduction → Other Information → Foreign currency exchange rate fluctuations reflect the difference between the current → Percentage changes refer to the comparable period in 2024, unless otherwise noted. period results as reported compared to the → All financial figures for the three months curre
Slide 4: MSCI First Quarter 2025 Earnings Call Participants
Introduction → MSCI First Quarter 2025 Earnings Call Participants Henry Fernandez Baer Pettit Andy Wiechmann Jeremy Ulan Chairman & CEO President & COO Chief Financial Officer Head of IR & Treasurer 4
Slide 5: Financial & Strategic Highlights
Section 01 Financial & Strategic Highlights. Information Classification: GENERAL 5
Slide 6: 1Q25 Financial Results Snapshot
Financial & Strategic Highlights → 1Q25 Operating 1Q25 Operating As of March 31, 2025 As of March 31, 2025 Revenues (reported) Revenues (organic) Subscription Run Rate Subscription Run Rate 1Q25 Financial Growth (reported) Growth (organic) Results Snapshot +10% +10% +8% +8% 1Q25 Adjusted 1Q25 Operat
Slide 7: 1Q25 Regional Performance
Financial & Strategic Highlights → 1Q25 Regional Performance 1Q25 Recurring Subscription AMERICAS YoY EMEA YoY APAC YoY Run Rate by Region $1,033M +8% $873M +9% $377M +7% ORGANIC YoY ORGANIC YoY YoY ORGANIC YoY $1,032M +8% $870M +9% +7% $377M +7% 1Q25 Recurring Net New AMERICAS YoY EMEA YoY APAC YoY
Slide 8: 1Q25 Operating Highlights
Financial & Strategic Highlights → 1Q25 Operating Highlights $3.0B 95.3% of Total Run Rate across MSCI Quarterly Retention Rate Asset Based Fees Total Run Rate Run Rate growth of 12.6%, driven by higher ending equity ETF and Non-ETF AUM US$ in millions +9% Organic +9% Asset-Based Fees Run Rate $2,97
Slide 9: Significant Recurring Revenue Model with Global Client Base
Financial & Strategic Highlights → MSCI Subscription Run Rate Significant Recurring Revenue as of 03/31/2025 by Geography Model with Global Client Base Americas 45% APAC Operating Revenues Mix 17% Quarter Ended 03/31/2025 EMEA 38% by Product Line by Type 2% Non-recurring 9% 2% All Other-Privat
Slide 10: Emerging Growth Opportunities
Financial & Strategic Highlights → Emerging Growth Opportunities Expanding in attractive additional addressable markets Run Rate 03/31/2024 03/31/2025 US$ in millions $439 $413 $274 $254 $143 $106 $119 $107 $104 $120 $96 $93 $56 $58 Sustainability Insurance Climate1 Fixed Income2 Futures & Options3
Slide 11: 1Q25 Summary Financial Results
Financial & Strategic Highlights → 1Q25 Summary US$ in thousands, except per share data For the Three Months Ended March 31 Financial Results YoY% Unaudited 2025 2024 Change Operating revenues $ 745,826 $ 679,965 9.7% Operating income $ 377,023 $ 339,382 11.1% Operating margin % 50.6% 49.9% Net inco
Slide 12: 1Q25 Operating Revenues
Financial & Strategic Highlights → 1Q25 Operating Revenues US$ in millions Non-Recurring Revenues +13% Organic Asset-Based Fees Revenues +13% Recurring Subscription Revenues $421.7 +5% Organic +9% Organic $373.9 +5% $11.0 +9% +5% Organic $10.7 +5% $177.4 $150.3 $164.0 $172.2 $84.6 $77.9 $3.4 $2.4 $1
Slide 13: 1Q25 Subscription Run Rate
Financial & Strategic Highlights → 1Q25 Subscription Run Rate1 US$ in millions Non-Market Cap Weighted Multi-Asset Class Analytics Sustainability & Climate Real Assets Custom Indexes Equity Analytics Private Capital Solutions Market Cap Weighted +9% Organic +9% YoY $948.4 +7% Organic $869.9 $107.6 +
Slide 14: Index Subscription Run Rate 2023-2024
Financial & Strategic Highlights → Index Subscription Run Rate 2023-2024 → Beginning in Q1'25, MSCI is changing the Index subscription → The Non-market Cap Weighted category reflects sub-product categories to Market-Cap Weighted, Custom contributions from Sustainability & Climate and Factors Indexes
Slide 15: Index Segment: Asset-Based Fees Details
Financial & Strategic Highlights → Index Segment: Asset-Based Fees Details US$ in millions US Average AUM EM Futures and Options Period-End Basis Point Fee DM ex US +13% Non-ETF1 YoY ETF1 $1783.1 +18% YoY 2.43 $1582.6 2.48 2.47 2.44 2.44 $465.1 +7% $177.4 $434.4 $14.5 -1% +8% $150.3 $13.5 $449.3 +11
Slide 16: 1Q25 QoQ AUM Drivers: MSCI-Linked Equity ETFs
Financial & Strategic Highlights → 1Q25 QoQ AUM Drivers: MSCI-Linked Equity ETFs By Geographic Exposure By Product US$ in billions US$ in billions Market Cap $16.4 Weighted $10.3 $16.4 EM $17.0 Factors DM ex US $27.9 $4.8 $(21.7) $(1.3) $(5.3) $8.5 $40.9 $2.3 $28.7 Sustainability $4.8 US & Climate C
Slide 17: 1Q25 YoY AUM Drivers: MSCI-Linked Equity ETFs
Financial & Strategic Highlights → 1Q25 YoY AUM Drivers: MSCI-Linked Equity ETFs By Geographic Exposure $63.6 US$ in billions $16.6 EM DM ex US $28.0 $28.9 $19.0 $96.3 US $11.7 $1,783.1 Cash inflows / (outflows) $136.9 $1,582.6 1Q24 Ending AUM US Developed Markets ex. US Emerging Markets Market Chan
Slide 18: Market Movement and Momentum in Cash Flows Continues
Financial & Strategic Highlights → Market Movement and Momentum Positive annual cash inflows for all years in ETFs linked to MSCI indexes except 2013 in Cash Flows Continues US$ in billions 9M22: MSCI-linked equity ETF AUM 4Q18: MSCI-linked equity ETF AUM of ETFs linked to MSCI Equity Indexes balanc
Slide 19: Listed Futures & Options Linked to MSCI Indexes
Financial & Strategic Highlights → Listed Futures & Options Linked to MSCI Indexes Run Rate From Listed Futures & Options Linked to MSCI Indexes Futures & Options Volume Linked to MSCI Indexes in millions of contracts traded1 US$ in millions $57.6 $59.0 $57.0 $58.2 $55.7 24.2 24.7 25.2 25.2 24.9 1Q2
Slide 20: Adjusted Earnings Per Share Growth Drivers
Financial & Strategic Highlights → Adjusted Earnings Per Share Growth Drivers Strong Operating Performance Driving Adjusted EPS Growth US$ in per share amounts Business Growth Capital Activities Tax and FX1 +13.6% $0.36 $0.04 $0.08 YoY $(0.37) $(0.05) $0.05 $0.03 $0.73 $0.09 $4.00 $3.52 1Q24 Adjuste
Slide 21: Strong Balance Sheet Provides Optionality
Financial & Strategic Highlights → Strong Balance Sheet Provides Optionality → In 1Q25, returned $295.1M to shareholders through share US$ in millions, unless otherwise noted repurchases of $155.4M and quarterly dividends of $139.7M Cash1 and Debt as of 03/31/2025 → Strong balance sheet provides opt
Slide 22: Full-Year Guidance
Financial & Strategic Highlights → Full-Year Current Guidance 2025 Operating Expense $1,405 to $1,445 million Guidance Adjusted EBITDA Expense $1,220 to $1,250 million MSCI's guidance for the year ending December 31, 2025 (“Full-Year 2025”) is based on assumptions about a number of factors, in parti
Slide 23: Q&A
Section 02 Q&A Information Classification: GENERAL 23
Slide 24: Additional Information
Section 03 Additional Information Information Classification: GENERAL 24
Slide 25: Continued Resilient Key Operating Metrics
Additional Information → Continued Resilient Key Operating Metrics YoY Recurring Subscription Run Rate Growth (as Reported and Organic) Subscription Run Rate Growth as Reported Organic Subscription Run Rate Growth 18% 18% 18% 17% 16% 15% 14% 14% 14% 12% 13% 12% 12% 12% 11% 10% 10% 10% 10% 14% 14% 8%
Slide 26: 1Q20 to 1Q25 YoY Run Rate Growth
Additional Information → 1Q20 to 1Q25 YoY Run Rate Growth Index Asset Based Fees Run Rate Growth as Reported Subscription Run Rate Growth as Reported 49% 45% 37% 27% 25% 17% 15% 12% 15% 16% 16% 15% 13% 13% 12% 12% 14% 13% 11% 10% 12% 10% 11% 11% 11% 11% 12% 12% 11% 11% 9% 5% 7% 9% 9% 9% 8% 4% -4% -7
Slide 27: 1Q20 to 1Q25 YoY Run Rate Growth
Additional Information → 1Q20 to 1Q25 YoY Run Rate Growth Sustainability & Climate Subscription Run Rate Growth as Reported Organic Subscription Run Rate Growth 47% 50% 47% 44% 46% 42% 42% 36% 37% 46% 44% 47% 31% 42% 30% 28% 39% 41% 26% 24% 25% 33% 33% 34% 20% 29% 16% 27% 26% 15% 14% 23% 24% 22% 10%
Slide 28: Geographic Market Exposures of MSCI-Linked ETFs Increasingly Diversified
Additional Information → Geographic Market Exposures of MSCI-Linked ETFs Increasingly Diversified Over Time Mix of MSCI linked equity ETF AUM balance by geographic exposure % US DM Ex US EM 22% 26% 26% 26% 25% 25% 30% 29% 29% 30% 27% 33% 32% 44% 44% 45% 46% 47% 49% 58% 51% 46% 43% 50% 51% 47% 53% 43
Slide 29: YoY Growth Across Sustainability & Climate Franchise
Additional Information → YoY Growth Across Sustainability Sustainability & Climate Run Rates Across all Segments1 & Climate Franchise +9% Climate ABF Climate Subscription Sustainability ABF AUM in ETFs Linked to MSCI Sustainability & Climate Equity Indexes $581 Sustainability Subscription US$ in bil
Slide 30: Long-term Targets
Additional Information → Long-term Targets Revenue Adj. EBITDA Adj. EBITDA Adj. EBITDA Growth Rate1 Expense Growth Rate Growth Rate Margin % High Single Digit Low to MSCI Low Double Digit High 50s to Low Double Digit Mid Teens Index Low Double Digit Low Double Digit Analytics High Single Digit Mid S
Slide 31: Appendix
Section 04 Appendix Information Classification: GENERAL 31
Slide 32: Use of Operating Metrics
Appendix → MSCI has presented supplemental key operating metrics as part of this earnings exchange rates, subject to the adjustments and exclusions described below. presentation, including Retention Rate, Run Rate, subscription sales, subscription For any Client Contract where fees are linked to an
Slide 33: Use of Non-GAAP Financial Measures
Appendix → MSCI has presented supplemental non-GAAP financial measures as part of this eliminate the accounting effects of certain capital spending and acquisitions that do earnings presentation. Reconciliations are provided in subsequent slides that reconcile not directly affect what management con
Slide 34: Reconciliation of Net Income to Adjusted EBITDA
Appendix → Reconciliation of Net Income In thousands Mar-31 Three Months Ended Mar-31 to Adjusted 2025 2024 Net income $ 288,600 $ 255,954 EBITDA Provision for income taxes Other expense (income), net 42,470 45,953 39,939 43,489 (unaudited) Operating income Amortization of intangible assets 377,023
Slide 35: Reconciliation of Net Income and Diluted EPS to Adjusted EPS
Appendix → Reconciliation of Net Income Three Months Ended Mar-31 Mar-31 In thousands, except per share data and Diluted EPS 2025 2024 Net income $ 288,600 $ 255,954 to Adjusted Net Plus: Amortization of acquired intangible assets and equity method investment basis difference 25,817 25,267 Income an
Slide 36: Reconciliation of Operating Expenses to Adjusted EBITDA Expenses
Appendix → Reconciliation of Operating Expenses to Adjusted EBITDA Expenses (unaudited) Three Months Ended Full-Year Mar-31 Mar-31 In thousands Outlook (1) 2025 2024 Total operating expenses $ 368,803 $ 340,583 $1,405,000 - $1,445,000 Amortization of intangible assets 43,872 38,604 Depreciation and
Slide 37: Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow
Appendix → Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow (unaudited) Three Months Ended Full-Year Mar-31 Mar-31 In thousands Outlook (1) 2025 2024 Net cash provided by operating activities $ 301,737 $ 300,137 $1,525,000 - $1,575,000 Capital expenditures (11,500) (4,27
Slide 38: Q1 2025 Reconciliation of Operating Revenue Growth to Organic
Appendix → Comparison of the Three Months Ended March 31, 2025 and 2024 Total Recurring Subscription Asset-Based Fees Non-Recurring Revenues Q1 2025 Index Operating revenue growth Change Percentage 12.8% Change Percentage 9.6% Change Percentage 18.1% Change Percentage 3.2% Reconciliation Impact of a