NEW YORK - MSCI Inc . (NYSE:MSCI) reported better-than-expected first quarter results on Tuesday, as the provider of investment decision support tools saw growth across its business segments.
MSCI shares edged up 0.25% in premarket trading following the earnings release.
The company posted adjusted earnings per share of $4.00, exceeding analyst estimates of $3.93. Revenue rose 9.7% YoY to $745.8 million, slightly above the consensus forecast of $745.4 million.
"In the first quarter, MSCI delivered strong financial metrics, durable retention, and solid asset-based-fee revenue growth," said Henry A. Fernandez, Chairman and CEO of MSCI.
Operating revenue in MSCI’s largest Index segment increased 12.8% to $421.7 million, driven by higher asset-based fees and recurring subscription revenues. Analytics revenue grew 5.0% to $172.2 million.
The company’s Sustainability and Climate segment saw revenue rise 8.6% to $84.6 million, while the All Other - Private Assets segment revenue increased 4.7% to $67.3 million.
MSCI maintained a strong retention rate of 95.3% in the quarter, up from 92.8% a year ago. Total Run Rate, a key metric indicating future revenue, grew 9.3% to $2.98 billion.
For full-year 2025, MSCI expects adjusted EBITDA expenses of $1.22 billion to $1.25 billion and free cash flow of $1.4 billion to $1.46 billion.
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