Mgic Investment (MTG) FY2023 results: revenue $1.2 billion, down 1.5% on the year

Mgic Investment Corp. (MTG) reported revenue of $1.2 billion for fiscal 2023, the year ended 31 December 2023, down 1.5% on the year before. Net income was $713 million, down 17.6%, and diluted earnings per share $2.49. The figures are the company's own, from the 10-K it filed with the SEC on 21 February 2024.

Revenue

$1.2 billion

-1.5% on the year

FY2016FY2023

Operating margin

78.1%

92.9% a year earlier

FY2016FY2023

Net income

$713 million

-17.6% on the year

FY2016FY2023

Diluted EPS

$2.49

-10.8% 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	1,155	1,173	1,186	-1.5%
Operating income	902	1,090	802	-17.2%
Operating margin	78.1%	92.9%	67.6%
Interest expense	36.9	48.1	71.4	-23.2%
Pre-tax income	902	1,090	802	-17.2%
Income tax	189	225	167	-15.8%
Effective tax rate	21.0%	20.6%	20.8%
Net income	713	865	635	-17.6%
Net margin	61.7%	73.8%	53.6%
Diluted EPS	$2.49	$2.79	$1.85	-10.8%

$ 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	713	650	696	+9.7%
Capital expenditure	2.0	3.3	4.1	-38.6%
Free cash flow	711	647	692	+9.9%
Free cash flow margin	61.5%	55.1%	58.4%
Cash from investing	-179	410	-161
Cash from financing	-496	-1,033	-527
Depreciation and amortisation	35.2	54.3	66.0	-35.1%
Share-based compensation	31.6	24.8	17.1	+27.6%
Buybacks	337	386	291	-12.6%
Dividends paid	123	111	94.2	+10.8%
Diluted shares, weighted	287m	311m	351m	-7.7%
Shares outstanding at period end	272m	293m	320m	-7.1%

Balance sheet

$ million	FY2023	FY2022	FY2021	On the year
Shareholders' equity	5,072	4,643	4,861	+9.2%
Debt	643	663	1,147	-3.0%
Other liabilities	823	908	1,317	-9.4%
Total liabilities and equity	6,538	6,214	7,325	+5.2%
Fixed assets	38.8	41.4	45.6	-6.4%
Investments	n/a	67.0	n/a
Securities held for sale or to maturity	5,723	n/a	6,588
Cash and equivalents	364	327	285	+11.1%
Other assets	413	5,778	407	-92.9%
Total assets	6,538	6,214	7,325	+5.2%

10-K for the year ended 31 December 2023, filed 21 February 2024: the filing.