NASDAQ$MORN

Morningstar Inc. · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Morningstar's Q4 2023 results reflected revenue growth and strategic investments.

Morningstar's Q4 2023 results showed a revenue increase of 13.4% to $113 million and adjusted operating income increased by 70.2% to $63.7 million. The company's free cash flow increased by 59.9% to $107.8 million. The revenue growth was driven by license-based, asset-based and transaction-based revenues.

  • Revenue increased by 13.4% driven by organic growth across various segments.
  • Adjusted operating income increased by 70.2% due to revenue growth outpacing expense growth.
  • Free cash flow increased by 59.9% driven by higher operating cash flow and lower capital expenditures.
  • Morningstar Indexes revenue increased 43.3% on an organic basis.

Headline financials

Total Revenue

$539M

Previous: $475M+13.4%
EPS (adj)

$1.97

Previous: $0.58+239.7%
Assets Linked to Indexes

$19.60

No prior period
Capital Expenditures

-$30M

Previous: $36.1M-183.1%
Net Income

$73.5M

Previous: $3.3M+2127.3%
Operating Income

$66.4M

Previous: $35.5M+87.0%
Gross Profit

$291M

Previous: $280M+3.8%
Stock-Based Comp

$11.1M

Previous: $25.1M-55.8%

Revenue & EPS history

Morningstar · Revenue · Quarterly

$539M

Q4 2023+13.4%vs Q4 2022
Beat estimate in 4 of 6 quarters(67%)
ActualEstimate

Revenue by segment

Morningstar · $409M total across 4 segments · Q2 2023

  • Morningstar Data & Analytics
    $194M
  • PitchBook
    $134M
  • Morningstar Wealth
    $50M
  • Morningstar Retirement
    $31.4M

Forward guidance

The presentation contains forward-looking statements based on current expectations about future events or future financial performance, which are subject to risks and uncertainties.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2023

Historical avgQ4 2023

+0.5%

Avg return

Earnings day

+0.0%

Avg return

5 days after

+0.4%

Avg return

30 days after

53%

36 / 68 earnings

Positive

+12.6%

Q3 2018

Best reaction

-12.9%

Q1 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-10.0%-11.2%-3.0%
Q4 2025+2.3%+5.7%+19.0%
Q3 2025+2.8%+1.4%+2.9%
Q1 2025-0.5%+3.1%+8.3%
Q4 2024-2.8%-6.5%-7.5%
Q3 2024-3.5%-2.7%+0.8%
Q2 2024+4.5%+4.7%+1.6%
Q1 2024-4.3%-5.5%-0.9%
Q4 2023-0.2%+8.1%+9.8%
Q3 2023+11.1%+12.6%+23.7%
Q2 2023+6.5%+6.5%+2.7%
Q1 2023-12.9%-7.9%+1.7%
Q4 2022-11.1%-11.0%-19.6%
Q3 2022+2.1%+4.7%+11.2%
Q2 2022+3.5%-0.0%-5.8%
Q1 2022+1.4%-4.4%-0.6%
Q4 2021+6.4%+2.0%+1.3%
Q3 2021+4.8%+3.1%+1.4%
Q2 2021+3.0%+5.6%+7.0%
Q1 2021+3.7%+3.5%-7.7%
Q4 2020-1.2%-8.9%-5.6%
Q3 2020+6.9%+6.5%+8.8%
Q2 2020+4.9%+2.8%+0.1%
Q1 2020+9.0%+3.8%+7.1%
Q4 2019-2.5%-6.4%-35.4%
Q3 2019-7.2%-4.7%-1.1%
Q2 2019+0.6%-1.0%-0.8%
Q1 2019-0.9%+2.9%-2.7%
Q4 2018+0.3%+0.6%-3.9%
Q3 2018+12.6%+4.3%-0.8%
Q2 2018-2.7%-4.1%-0.9%
Q1 2018+6.2%+5.0%+13.8%
Q4 2017-1.1%-1.7%-1.3%
Q3 2017+1.9%-2.3%+6.3%
Q2 2017+2.9%+3.4%+1.6%
Q1 2017-4.1%-6.1%-6.8%
Q4 2016+1.8%+2.2%-2.0%
Q3 2016-6.4%-7.2%-4.8%
Q2 2016+1.0%+0.7%-1.8%
Q1 2016-4.2%
Q4 2015-0.5%
Q3 2015-1.9%
Q2 2015+3.2%
Q1 2015+3.5%
Q4 2014+10.7%
Q3 2014-0.3%
Q2 2014-2.4%
Q1 2014-4.6%
Q4 2013+4.3%
Q3 2013+4.9%
Q2 2013+0.7%
Q1 2013+0.5%
Q4 2012+1.9%
Q3 2012-1.3%
Q2 2012+2.4%
Q1 2012+1.7%
Q4 2011-0.1%
Q3 2011-0.4%
Q2 2011-2.5%
Q1 2010-1.7%
Q1 2011+1.5%
Q4 2010-2.2%
Q4 2008-2.2%
Q3 2009+0.1%
Q3 2010+0.1%
Q2 2010-1.1%
Q4 2009-1.1%
Q2 2009-1.1%

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