The following is a summary of the MSCI Inc. (MSCI) Q1 2024 Earnings Call Transcript:

Financial Performance:

MSCI reported Q1 2024 revenue growth of 10%, adjusted EPS growth of 12%, and free cash flow growth of 14%.
Asset-Based Fee (ABF) revenue saw a 13% increase due to record AUM balances in both ETFs and non-listed products linked to MSCI indices.
Non-recurring sales were up by 16%, although changes in market volatility and interest rate expectations had a lingering impact on Q1 results.
Revenue decline was partly due to fewer price increases within new subscription sales, offset slightly by increased cross-selling/upselling to existing clients.

Business Progress:

There was significant growth in analytics with high Q1 sales, particularly among hedge funds and asset owners.
APAC and EMEA regions principally drove a 39% climate run-rate growth across product lines but ESG run-rate growth stabilized at 12% amid complications in the Americas.
The acquisitions of London-based index provider Foxberry and the Fabric platform have enabled MSCI to expand their index production and boost solutions for wealth segments respectively.
The MSCI carbon markets team is focusing on amplifying their climate solutions and intensifying engagement with new/potential clients.
The outlook is strong thanks to these acquisitions, with MSCI projecting high levels of revenue growth and profitability for 2024 and beyond.
Firm is investing further in AI to enhance product offerings and drive operational efficiencies, while also expanding into private capital markets with a reported 17% run rate growth in their solutions.
The company intends to optimize its profitability and growth by balancing short-term reinvestments for long-term initiatives with near-term margin performance.