On October 26, 2023, Morningstar Inc (MORN, Financial), a leading provider of independent investment insights, reported solid third-quarter revenue growth, primarily driven by the performance of its license- and asset-based products. The company's revenue increased by 10.1% to $515.5 million, with license-based revenue increasing by 12.2% versus the prior-year period.
Financial Highlights
According to the earnings report, Morningstar's license-based products continued to thrive, contributing significantly to the company's revenue growth. The company's net income in Q3 2023 was $39.1 million, a significant improvement from a net loss of $9.0 million in Q3 2022. Adjusted diluted net income per share increased by 66.2% to $1.28 in Q3 2023, compared to $0.77 in the prior-year period.
Performance Analysis
Morningstar's strong performance in Q3 2023 was largely due to the robust performance of its license- and asset-based products. The company's license-based revenue increased by 12.2% versus the prior-year period, reflecting solid growth in the company's license- and asset-based product areas. The company also made meaningful progress in expanding margins, supported by careful management of expenses.
Financial Tables
The financial tables provided in the earnings report show a detailed breakdown of Morningstar's financial performance. The company's revenue increased by 10.1% to $515.5 million, with license-based revenue increasing by 12.2% versus the prior-year period. The company's net income in Q3 2023 was $39.1 million, compared to a net loss of $9.0 million in Q3 2022.
Future Outlook
Looking ahead, Morningstar is set to report multiple segments starting with the Company's Form 10-Q for the quarter ended Sept. 30, 2023. The company is also evaluating how best to communicate to investors under the new segment reporting framework in future press releases reporting financial results.
Explore the complete 8-K earnings release (here) from Morningstar Inc for further details.
