Moody's Corporation Reports 20% Revenue Growth to $7.088 Billion for Fiscal Year 2024

Moody's Corporation reported a significant increase in its financial performance for the fiscal year ending December 31, 2024, with total revenue reaching $7.088 billion, a 20% increase from $5.916 billion in 2023. The company's net income attributable to Moody's also rose by 28% to $2.058 billion, translating to diluted earnings per share of $11.26, up from $8.73 in the previous year. The adjusted diluted earnings per share increased by 26% to $12.47, reflecting strong operational performance across its segments.

The company's two reportable segments, Moody's Analytics (MA) and Moody's Investors Service (MIS), both contributed to this growth. MA's external revenue grew by 8% to $3.295 billion, while MIS saw a more substantial increase of 33%, reaching $3.793 billion. The growth in MIS was particularly driven by strong demand in corporate finance, structured finance, and financial institutions, with notable increases in transaction revenue attributed to refinancing activity and new mandates in the leveraged finance sector.

In terms of strategic developments, Moody's has been active in acquisitions, including the purchase of Numerated, GCR, and Praedicat, which collectively contributed to the company's growth trajectory. The company also initiated a Strategic and Operational Efficiency Restructuring Program aimed at realigning operations towards high-priority growth areas, with expected annualized savings of $250 million to $300 million. This program is anticipated to be substantially complete by the end of 2026 and includes a reduction in staff and the rationalization of certain leased office spaces.

Operationally, Moody's reported a total employee headcount of approximately 16,000, with a slight increase from the previous year. The company also noted a 9% increase in Annualized Recurring Revenue (ARR) across its MA segment, indicating strong customer retention and growth in subscription-based services. The geographic distribution of revenue showed a 25% increase in U.S. revenue and a 14% increase in non-U.S. revenue, highlighting the company's successful expansion in international markets.

Looking ahead, Moody's remains optimistic about its growth prospects, driven by the ongoing demand for integrated risk assessment solutions and the anticipated benefits from its restructuring initiatives. The company expects to leverage advancements in technology, including artificial intelligence, to enhance its service offerings and maintain its competitive edge in the market.