MSCI Inc. Reports $2.86 Billion Revenue for Fiscal Year 2024, Driven by Subscription and Asset-Based Fees

MSCI Inc. reported a total operating revenue of $2.86 billion for the fiscal year ending December 31, 2024, marking a 12.9% increase from $2.53 billion in 2023. The growth was primarily driven by a 13% rise in recurring subscription revenues, which reached $2.11 billion, and a 17.9% increase in asset-based fees, totaling $657.5 million. However, non-recurring revenues saw a decline of 15.9%, falling to $84.2 million. The company's net income for the year was $1.11 billion, a decrease of 3.4% compared to $1.15 billion in the previous year, attributed to higher operating expenses and a one-time gain from the remeasurement of an equity investment in 2023.

In terms of operational metrics, MSCI's total employee count rose to 6,132, reflecting a 5.8% increase from the previous year. The company also reported a retention rate of 93.7% for its subscription services, indicating a slight decline from 94.7% in 2023. The average assets under management (AUM) in exchange-traded funds (ETFs) linked to MSCI indexes increased by 21.8%, contributing to the growth in asset-based fees. The company served approximately 7,100 clients across more than 100 countries, with BlackRock accounting for 10.2% of total revenues.

Strategically, MSCI executed several acquisitions in 2024, including the purchase of Burgiss for $696.8 million, which enhanced its capabilities in private asset data and analytics. Other acquisitions included Trove Research, Fabric, and Foxberry, aimed at expanding its ESG and climate solutions, analytics offerings, and index technology capabilities. These acquisitions are expected to drive future growth and enhance the company's product offerings.

Geographically, MSCI's revenues were primarily generated from the Americas, which accounted for $1.3 billion, followed by $1.1 billion from Europe, the Middle East, and Africa (EMEA), and $446.4 million from Asia and Australia. The company continues to focus on expanding its presence in key markets while enhancing its product offerings to meet evolving client needs, particularly in sustainability and climate investment strategies.

Looking ahead, MSCI anticipates continued growth driven by its strategic initiatives and the increasing demand for its products and services. The company remains committed to leveraging advanced technologies, including artificial intelligence, to enhance its offerings and improve client experiences. However, it acknowledges potential challenges from market volatility, regulatory changes, and competitive pressures that could impact its financial performance in the future.