Morningstar (MORN) Q4 FY2023 earnings: revenue $539 million, up 13.4% on the year

Morningstar, Inc. (MORN) reported revenue of $539 million for Q4 FY2023, the quarter ended 31 December 2023, up 13.4% on the same quarter a year earlier. Net income was $74 million, up 2127.3% on the year, and diluted earnings per share $1.71. The figures are the company's own, from the 10-K it filed with the SEC on 29 February 2024.

Revenue$539 millionup 13.4%

Net income$74 millionup 2127.3%

Diluted EPS$1.71

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	539	516	n/a	n/a
Cost of revenue	205	203	n/a	n/a
Gross profit	333	313	n/a	n/a
Gross margin	61.9%	60.6%	n/a
Operating income	94.4	70.0	n/a	n/a
Operating margin	17.5%	13.6%	n/a
Pre-tax income	90.3	57.4	n/a	n/a
Income tax	14.1	16.7	n/a	n/a
Effective tax rate	15.6%	29.1%	n/a
Net income	73.5	39.1	n/a	n/a
Net margin	13.6%	7.6%	n/a
Diluted EPS	$1.71	$0.91	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	138	131	n/a	n/a
Capital expenditure	30.0	29.3	n/a	n/a
Free cash flow	108	101	n/a	n/a
Free cash flow margin	20.0%	19.7%	n/a
Cash from investing	-32.8	-21.3	n/a	n/a
Cash from financing	-103	-120	n/a	n/a
Depreciation and amortisation	46.5	46.6	n/a	n/a
Share-based compensation	11.1	14.7	n/a	n/a
Buybacks	0.0	0.0	n/a	n/a
Dividends paid	16.0	16.0	n/a	n/a
Dividend per share	n/a	$0.38	n/a	n/a
Diluted shares, weighted	43m	43m	n/a	n/a
Shares outstanding at period end	43m	43m	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
Shareholders' equity	1,328	1,244	n/a	n/a
Short-term borrowings	32.1	32.1	n/a	n/a
Debt	940	1,023	n/a	n/a
Operating lease liabilities	151	149	n/a	n/a
Other liabilities	952	896	n/a	n/a
Total liabilities and equity	3,403	3,344	n/a	n/a
Fixed assets	208	204	n/a	n/a
Goodwill	1,579	1,569	n/a	n/a
Intangible assets	484	495	n/a	n/a
Investments	51.1	38.7	n/a	n/a
Cash and equivalents	338	325	n/a	n/a
Receivables	344	298	n/a	n/a
Other assets	400	414	n/a	n/a
Total assets	3,403	3,344	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	516	539	543	572	569	591	582	605	617	641	645	663
Cost of revenue	203	205	218	223	223	232	231	231	242	249	239	239
Gross profit	313	333	325	349	347	359	350	374	376	392	406	424
Gross margin	61%	62%	60%	61%	61%	61%	60%	62%	61%	61%	63%	64%
Operating income	70.0	94.4	92.6	108	116	168	114	125	128	160	156	161
Operating margin	14%	18%	17%	19%	20%	28%	20%	21%	21%	25%	24%	24%
Pre-tax income	57.4	90.3	87.0	89.5	152	163	108	116	123	151	142	147
Tax rate	29%	16%	24%	21%	19%	21%	25%	23%	26%	24%	24%	26%
Net income	39.1	73.5	64.2	69.1	120	117	78.5	89.0	91.6	115	107	108
Net margin	8%	14%	12%	12%	21%	20%	13%	15%	15%	18%	17%	16%
Diluted EPS	$0.91	$1.71	$1.49	$1.60	$2.77	$2.71	$1.82	$2.09	$2.17	$2.83	$2.73	$2.83
Operating cash flow	131	138	93.6	153	192	153	91.0	99.0	196	204	91.5	156
Capital expenditure	29.3	30.0	34.1	31.9	36.1	40.6	32.2	36.6	35.6	42.7	37.9	33.2
Free cash flow	101	108	59.5	121	156	113	58.8	62.4	160	161	53.6	122
Buybacks	0.0	0.0	0.0	0.0	0.0	11.6	110	112	170	395	300	100
Dividends paid	16.0	16.0	17.3	17.3	17.4	17.3	19.5	19.3	19.2	18.9	19.9	19.0
Shares outstanding	43m	43m	43m	43m	43m	43m	43m	42m	42m	40m	38m	38m
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

Each quarter as filed, linked to its filing.

* 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. A fourth quarter's EPS and diluted share count are from the company's results press release for that quarter, used where the release gives the same revenue and net income as the table. 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 29 February 2024, accession 0001289419-24-000010: the filing on EDGAR. All of Morningstar, Inc.'s filings: EDGAR company page.

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