Moody’s Corporation reported record first quarter revenue of $1.1 billion for the three months ended March 31, 2018, up 16% from the prior-year period.  U.S. revenue was $597.7 million, up 3%, and non-U.S. revenue was $529.0 million, up 33%.  Revenue generated outside the U.S. constituted 47% of total revenue, up from 41% in the prior-year period.  Foreign currency translation favorably impacted Moody’s revenue by 4%.

“Moody’s record first quarter revenue reflects a strong contribution from Bureau van Dijk and solid organic growth from Moody’s Analytics, as well as strength in rated structured finance volumes in Moody’s Investors Service,” said Raymond McDaniel, President and Chief Executive Officer of Moody’s. “Our business remains well-positioned to benefit from continued global economic expansion in 2018, and as such we are affirming our full year 2018 guidance of $7.20 to $7.40 for diluted EPS and $7.65 to $7.85 for adjusted diluted EPS.”

Moody’s Corporation reported record first quarter revenue of $1.1 billion for the three months ended March 31, 2018, up 16% from the first quarter of 2017, including eight percentage points attributable to Bureau van Dijk.

Operating expenses totaled $635.9 million, up 20% from the prior-year period, including 12 percentage points attributable to Bureau van Dijk operating expenses, amortization of acquired intangible assets, as well as non-recurring acquisition and integration expenses associated with the Bureau van Dijk acquisition (“Acquisition-Related Expenses”).

Operating income was $490.8 million, up 10% from the first quarter of 2017. Adjusted operating income, which excludes depreciation and amortization, as well as Acquisition-Related Expenses, was $540.7 million, up 13% from the prior-year period. Operating margin for the first quarter was 43.6% and the adjusted operating margin was 48.0%.

Moody’s Investors Service (MIS) First Quarter Revenue Up 8%

Revenue for MIS in the first quarter of 2018 was $719.9 million, up 8% from the prior-year period. U.S. revenue was $433.4 million, up 3%, and non-U.S. revenue was $286.5 million, up 17%. Foreign currency translation favorably impacted MIS revenue by 3%.

Moody’s Analytics (MA) First Quarter Revenue Up 33%

Revenue for MA in the first quarter of 2018 was $406.8 million, up 33% from the prior-year period. U.S. revenue was $164.3 million, up 6%, and non-U.S. revenue was $242.5 million, up 60%. Foreign currency translation favorably impacted MA revenue by 4%. Organic MA revenue for the first quarter of 2018 was $333.3 million, up 9% from the prior-year period.

Research, data and analytics (RD&A) revenue was $269.2 million, up 53% from the prior-year period. U.S. RD&A revenue was up 11% and non-U.S. revenue more than doubled. Bureau van Dijk’s revenue contribution of approximately $74 million included a $10 million reduction as a result of a deferred revenue adjustment required under acquisition accounting rules. Organic RD&A revenue was $195.7 million, up 12%, driven by strength in sales of credit research and ratings data feeds.

Enterprise risk solutions (ERS) revenue of $100.1 million was up 4% from the prior-year period. This result reflected strength in software subscription revenues, partially offset by a revenue decline for one-time projects and licenses. U.S. ERS revenue was down 4% while non-U.S. revenue was up 11%.

Professional services revenue of $37.5 million was up 5% from the prior-year period. U.S. professional services revenue was down 4% while non-U.S. revenue was up 10%.

Source: Moody’s Earnings Release