MSCI Inc. reported a strong financial performance for the first quarter of 2025, with operating revenues reaching $745.8 million, a 9.7% increase from $680.0 million in the same period last year. The company's net income also rose to $288.6 million, up 12.8% from $256.0 million in the prior year. This growth was reflected in earnings per share, which increased to $3.72 from $3.23, driven by higher revenues and effective cost management.
The company experienced notable changes in its financial metrics compared to the previous fiscal period. Operating expenses increased by 8.3% to $368.8 million, primarily due to higher costs in research and development, which rose 17.4%, and selling and marketing expenses, which increased by 9.1%. Despite these increases, MSCI's operating income improved to $377.0 million from $339.4 million, indicating effective management of expenses relative to revenue growth.
Strategically, MSCI completed two acquisitions in early 2024, acquiring Fabric RQ, Inc. for $16.1 million and Foxberry Ltd. for $42.6 million. These acquisitions are expected to enhance MSCI's capabilities in analytics and index technology, respectively. Additionally, the company rebranded its "ESG and Climate" segment to "Sustainability and Climate" to better reflect its product offerings. As of March 31, 2025, MSCI served approximately 7,000 clients across more than 95 countries, with a retention rate of 95.3%, up from 92.8% a year earlier.
Operationally, MSCI reported a total of 6,184 employees, a 5.6% increase from the previous year, reflecting the company's growth strategy and expansion efforts. The company also noted a significant increase in its asset-based fees, which rose by 18.1% to $177.4 million, driven by growth in exchange-traded funds (ETFs) linked to MSCI equity indexes. The average assets under management (AUM) in these ETFs increased by 18.9% year-over-year, indicating strong market demand for MSCI's index products.
Looking ahead, MSCI remains optimistic about its growth trajectory, supported by its strategic initiatives and market position. The company anticipates continued revenue growth driven by its subscription-based business model and the integration of its recent acquisitions. MSCI's management emphasized the importance of maintaining strong client relationships and expanding its geographic presence as key components of its long-term strategy.
About MSCI Inc.
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