Q2 2024 Thomson Reuters Corp Earnings Call Transcript
Key Points
- Thomson Reuters Corp (TRI) reported a 6% increase in total company organic revenues, with the Big 3 segments growing by 8%.
- The company raised its full-year 2024 revenue outlook to the high end of prior ranges, now expecting organic growth of approximately 6.5%.
- Strong performance from key products like Practical Law, Confirmation, SurePrep, Pagero, and Indirect Tax, as well as international businesses, contributed to double-digit growth.
- Interest in Generative AI offerings remains strong, with positive customer feedback on new products like CoCounsel Drafting and Checkpoint Edge with CoCounsel.
- Thomson Reuters Corp (TRI) completed the monetization of its stake in London Stock Exchange Group, bringing gross proceeds to $8.3 billion, and completed a $1 billion share repurchase program.
- Adjusted EBITDA fell 2% to $646 million, reflecting a 300 basis point margin decline to 37.1%, due to organic and inorganic investments.
- Global Print organic revenues declined 7% year-on-year, impacted by the migration of customers from a Global Print product to Westlaw.
- FindLaw remains a headwind to the Legal Professionals segment growth rate.
- The company expects the third-quarter margin to be the low point for the year at approximately 34%, due to increased investment spending during the seasonally lowest revenue quarter.
- Despite strong performance, the company faces elongated sales cycles in the Corporates segment, which may impact future growth.
Good day, everyone, and welcome to the Thomson Reuters Second Quarter Earnings Call. Today's conference is being recorded. At this time, I'd like to turn the call over to Gary Bisbee, Head of Investor Relations. Please go ahead.
Thank you, Melinda. Good morning and thank you, everybody, for joining us today for our second quarter 2024 earnings call. I'm joined today by our CEO, Steve Hasker; and our CFO, Mike Eastwood, each of whom will discuss our results and take your questions following their remarks. To enable us to get through as many questions as possible, we would appreciate it if you'd limit yourself to one question and one follow-up each when we open the phone lines.
Throughout today's presentation, when we compare performance period-on-period, we discuss revenue growth before currency as well as on an organic basis. We believe this provides the best basis to measure the underlying performance of our business. Today's presentation contains forward-looking statements and non-IFRS
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