MSCI (MSCI) FY2023 results: revenue $2.5 billion, up 12.5% on the year

MSCI Inc. (MSCI) reported revenue of $2.5 billion for fiscal 2023, the year ended 31 December 2023, up 12.5% on the year before. Net income was $1.1 billion, up 31.9%, and diluted earnings per share $14.39. The figures are the company's own, from the 10-K it filed with the SEC on 9 February 2024.

Revenue

$2.5 billion

+12.5% on the year

FY2016FY2023

Operating margin

54.8%

53.7% a year earlier

FY2016FY2023

Net income

$1.1 billion

+31.9% on the year

FY2016FY2023

Diluted EPS

$14.39

+34.2% on the year

FY2016FY2023

this yearthe year beforeHover a bar for its figure.

The year in brief

The four quarters: Q1 FY2023 · Q2 FY2023 · Q3 FY2023 · Q4 FY2023

Income statement (profit and loss)

$ million	FY2023	FY2022	FY2021	On the year
Revenue	2,529	2,249	2,044	+12.5%
Cost of revenue	447	404	359	+10.4%
Gross profit	2,082	1,844	1,685	+12.9%
Gross margin	82.3%	82.0%	82.4%
Research and development	132	107	112	+23.2%
Operating income	1,385	1,208	1,073	+14.7%
Operating margin	54.8%	53.7%	52.5%
Interest expense	187	172	160	+8.8%
Pre-tax income	1,369	1,044	858	+31.2%
Income tax	220	173	132	+27.2%
Effective tax rate	16.1%	16.6%	15.4%
Net income	1,149	871	726	+31.9%
Net margin	45.4%	38.7%	35.5%
Diluted EPS	$14.39	$10.72	$8.70	+34.2%

$ million except per share.

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

$ million	FY2023	FY2022	FY2021	On the year
Operating cash flow	1,236	1,095	936	+12.8%
Capital expenditure	22.8	13.6	13.5	+67.1%
Free cash flow	1,213	1,082	923	+12.2%
Free cash flow margin	48.0%	48.1%	45.1%
Cash from investing	-819	-79.3	-1,036
Cash from financing	-954	-1,425	230
Depreciation and amortisation	21.0	26.9	28.9	-21.9%
Share-based compensation	71.7	58.1	54.9	+23.3%
Buybacks	504	1,398	198	-63.9%
Dividends paid	441	373	302	+18.3%
Dividend per share	$5.52	$4.58	$3.64	+20.5%
Diluted shares, weighted	80m	81m	83m	-1.7%
Shares outstanding at period end	79m	80m	82m	-1.1%

Balance sheet

$ million	FY2023	FY2022	FY2021	On the year
Shareholders' equity	-740	-1,008	-163
Debt	4,508	4,512	4,161	-0.1%
Operating lease liabilities	120	132	150	-8.7%
Other liabilities	1,630	1,362	1,359	+19.7%
Total liabilities and equity	5,518	4,998	5,507	+10.4%
Fixed assets	55.9	53.9	66.7	+3.8%
Goodwill	2,888	2,230	2,236	+29.5%
Intangible assets	956	559	593	+71.2%
Cash and equivalents	462	994	1,421	-53.5%
Receivables	n/a	663	665
Other assets	1,157	499	524	+131.9%
Total assets	5,518	4,998	5,507	+10.4%

10-K for the year ended 31 December 2023, filed 9 February 2024: the filing.