Second-Quarter Financial Highlights
• Revenue increased 10.1% to $252.4 million; organic revenue growth was 9.6%.
• Operating income increased 16.6% to $53.6 million.
• Diluted net income per share decreased 9.3% to $0.97 compared to $1.07 in the second quarter
of 2017. The prior year period includes a benefit of $0.42 per diluted share from the sale of
HelloWallet.
• Cash provided by operating activities increased 25.3% to $69.8 million; free cash flow was
$51.8 million, or 41.1% higher than the second quarter of 2017.
Year-to-Date Financial Highlights
• Revenue increased 13.0% to $495.9 million; organic revenue growth was 11.6%.
• Operating income increased 35.9% to $101.1 million.
• Diluted net income per share increased 30.9% to $1.95 compared to $1.49 for the first six months
of 2017.
• Cash provided by operating activities increased 26.9% to $129.7 millio
“We produced strong results in the first half of 2018,” said Kunal Kapoor, Morningstar’s chief executive officer. “Our team is empowering investors at a time of meaningful change in the way data, advice, and technology remake financial experiences. We launched Morningstar Direct for Wealth Management and
introduced the Morningstar Portfolio Carbon Risk Score in the quarter, further boosting our market-leading ESG capabilities. We also enhanced the content and interfaces for PitchBook, Morningstar.com, and Morningstar Office. This quarter, we’re looking forward to launching our Morningstar-branded open-end mutual funds for advisors who use Morningstar Managed Portfolios and expanding adoption of our Open Indexes Project. We believe the costs to license beta indexes from entrenched players remain too high relative to the overall costs associated with passive vehicles, and we continue to attract additional
interest from asset managers and advisors. We’re excited about two new relationships with leading asset managers, JP Morgan and National Bank of Canada, who are offering our indexes for use at investor-friendly price points.”
https://s21.q4cdn.com/198919461/files/doc_financials/quarterly_reports/2018/q2/MORN-Earnings-Release-Q2-2018-07.25.18.pdf
