4Q and FY 2023 Investor Presentation
Annualized Recurring Revenue (ARR)
The Company presents Annualized Recurring Revenue ("ARR") on a constant currency organic basis for its MA business as a supplemental performance metric to
provide additional insight on the estimated value of MA's recurring revenue contracts at a given point in time. The Company uses ARR to manage and monitor
performance of its MA operating segment and believes that this metric is a key indicator of the trajectory of MA's recurring revenue base.
The Company calculates ARR by taking the total recurring contract value for each active renewable contract as of the reporting date, divided by the number of days
in the contract and multiplied by 365 days to create an annualized value. The Company defines renewable contracts as subscriptions, term licenses, maintenance
and renewable services. ARR excludes transaction sales including training, one-time services and perpetual licenses. In order to compare period-over-period ARR
excluding the effects of foreign currency translation, the Company bases the calculation on currency rates utilized in its current year operating budget and holds
these FX rates constant for the duration of all current and prior periods being reported. Additionally, ARR excludes contracts related to acquisitions to provide
additional perspective in assessing growth excluding the impacts from certain acquisition activity.
The Company's definition of ARR may differ from definitions utilized by other companies reporting similarly named measures, and this metric should be viewed in
addition to, and not as a substitute for, financial measures presented in accordance with U.S. GAAP.
Amounts in millions
MA ARR
Decision Solutions
December 31, 2023
December 31, 2022
Change
Growth
Banking
60
$
418 $
385
$
33
9%
Insurance
533
482
51
11%
KYC
326
279
47
17%
Total Decision Solutions
$
1,277 $
1,146
$
131
11%
Research and Insights
879
819
60
7%
Data and Information
806
733
73
10%
Total MA ARR
$
2,962 $
2,698
$
264
10%
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4Q and FY 2023 Investor Presentation
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