Moodys Corp. Q4 FY2023 results: revenue $1.5 billion, up 14.7% on the year

Moodys Corp. (MCO) reported revenue of $1.5 billion for Q4 FY2023, the quarter ended 31 December 2023, up 14.7% on the same quarter a year earlier. Net income was $340 million, up 38.2% on the year, and diluted earnings per share $1.85. The figures are the company's own, from the 10-K it filed with the SEC on 14 February 2024.

Revenue$1.5 billionup 14.7%

Net income$340 millionup 38.2%

Diluted EPS$1.85

QuarterQ4 FY2023ended 31 December 2023

The quarter, against the one before and a year earlier

Line	Q4 FY2023	Q3 FY2023	A year earlier	Change on the year
Revenue	1,480	1,472	n/a	n/a
Cost of revenue	421	412	n/a	n/a
Gross profit	1,059	1,060	n/a	n/a
Gross margin	71.6%	72.0%	n/a
Selling, general and administrative	428	403	n/a	n/a
Operating income	498	535	n/a	n/a
Operating margin	33.6%	36.3%	n/a
Pre-tax income	450	487	n/a	n/a
Income tax	110	97.0	n/a	n/a
Effective tax rate	24.4%	19.9%	n/a
Net income	340	389	n/a	n/a
Net margin	23.0%	26.4%	n/a
Diluted EPS	$1.85	$2.11	n/a	n/a

$ million except per share. Fourth quarters are the year less the first three quarters. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow and capital returned

Line	Q4 FY2023	Q3 FY2023	A year earlier	Change on the year
Operating cash flow	477	462	n/a	n/a
Capital expenditure	73.0	71.0	n/a	n/a
Free cash flow	404	391	n/a	n/a
Free cash flow margin	27.3%	26.6%	n/a
Depreciation and amortisation	97.0	95.0	n/a	n/a
Share-based compensation	50.0	46.0	n/a	n/a
Buybacks	212	170	n/a	n/a
Dividends paid	140	141	n/a	n/a
Dividend per share	$0.77	$0.77	n/a	n/a
Diluted shares, weighted	184m	184m	n/a	n/a
Shares outstanding at period end	182m	183m	n/a	n/a

Cash flow lines for the quarter; where the company files them year to date, the quarter is the difference between two filings.

Balance sheet at quarter end

Line	Q4 FY2023	Q3 FY2023	A year earlier	Change on the year
Total assets	14,622	14,191	n/a	n/a
Cash and equivalents	2,130	2,006	n/a	n/a
Receivables	1,659	1,513	n/a	n/a
Goodwill	5,956	5,831	n/a	n/a
Long-term debt	7,001	6,851	n/a	n/a
Operating lease liabilities	306	316	n/a	n/a
Shareholders' equity	3,318	3,191	n/a	n/a

Quarterly results, the last 12 quarters

	Q3 FY2023	Q4 FY2023 *	Q1 FY2024	Q2 FY2024	Q3 FY2024	Q4 FY2024 *	Q1 FY2025	Q2 FY2025	Q3 FY2025	Q4 FY2025 *	Q1 FY2026	Q2 FY2026
Revenue	1,472	1,480	1,786	1,817	1,813	1,672	1,924	1,898	2,007	1,889	2,079	2,185
Cost of revenue	412	421	467	469	512	497	491	489	492	501	531	518
Gross profit	1,060	1,059	1,319	1,348	1,301	1,175	1,433	1,409	1,515	1,388	1,548	1,667
Gross margin	72%	72%	74%	74%	72%	70%	74%	74%	75%	73%	74%	76%
SG&A	403	428	413	446	434	442	439	443	453	468	477	463
Operating income	535	498	801	775	738	561	846	818	917	770	922	1,046
Operating margin	36%	34%	45%	43%	41%	34%	44%	43%	46%	41%	44%	48%
Pre-tax income	487	450	752	719	703	525	804	772	867	687	870	1,171
Tax rate	20%	24%	23%	23%	24%	25%	22%	25%	25%	11%	24%	25%
Net income	389	340	577	552	534	395	625	578	646	610	661	878
Net margin	26%	23%	32%	30%	29%	24%	32%	30%	32%	32%	32%	40%
Diluted EPS	$2.11	$1.85	$3.15	$3.02	$2.93	$2.16	$3.46	$3.21	$3.60	$3.40	$3.73	$5.03
Operating cash flow	462	477	775	686	703	674	757	543	743	858	939	779
Capital expenditure	71.0	73.0	78.0	93.0	72.0	74.0	85.0	75.0	85.0	81.0	95.0	91.0
Free cash flow	391	404	697	593	631	600	672	468	658	777	844	688
Buybacks	170	212	120	264	428	480	373	284	513	437	1,471	694
Dividends paid	141	140	155	154	156	155	195	171	168	167	185	180
Shares outstanding	183m	182m	183m	182m	181m	180m	180m	179m	178m	177m	175m	173m
Filing	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q

* The fourth quarter is the full year less the first three quarters, because the company files the year and not the quarter on its own. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and the share count are as they are. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Cash flow lines filed year to date are the difference between two filings. Shares outstanding are at the period end where the balance sheet tags them, otherwise the count on the filing's cover page. A derived fourth-quarter EPS is left blank when a split in the year makes the arithmetic meaningless.

Source

10-K for the period ended 31 December 2023, filed 14 February 2024, accession 0001059556-24-000017: the filing on EDGAR. All of Moodys Corp.'s filings: EDGAR company page.

The same record on your computer

GreekSoup is also a free program for your own computer. It reads these same filings for the names you follow, refreshed as they land, with no account. One pasted line installs it.

Install