4Q and FY 2023 Investor Presentation
Key Assumptions Underlying our Medium-Term Targets
Moody's medium-term guidance refers to a time period within 5 years and reflects assumptions about numerous factors that could affect its business and is based on currently
available information reviewed by management through and as of today's date.
These assumptions include, but are not limited to, the effects of current economic conditions, including the effects of interest rates, inflation, foreign currency exchange rates, capital
markets' liquidity, and activity in different sectors of the debt markets. This outlook also reflects assumptions about global GDP growth, and the impacts resulting from changes in
international conditions, including as a result of the Russia-Ukraine military conflict, and the military conflict in Israel and surrounding areas. Actual results could differ materially from
Moody's outlook.
The guidance also incorporates various assumptions as of February 13, 2024, including: (a) U.S. and Euro area GDP to stagnate in the near-term, followed by economic recovery; (b)
the U.S. 10-Year Treasury yield to stabilize, fluctuating modestly around current levels; (c) issuers continue to refinance maturing debt; (d) MA customer retention rates remain in-line
with historical levels; and (e) pricing initiatives align with prior practices and enhancements to customer value.
Moody's Corporation Medium-Term Guidance (as of February 13, 2024)
Moody's Corporation
Revenue
Adjusted Operating Margin (1)
Adjusted Diluted EPS (1)
Moody's Investors Service (MIS)
MIS revenue
MIS Adjusted Operating Margin
Moody's Analytics (MA)
MA revenue
MA Adjusted Operating Margin
Note: Growth refers to average annualized growth over the time period. Assumes full year 2022 as the base year.
1.
At least 10% growth
Low-50s percent range
Low-double-digit percent growth
Mid-to-high-single-digit percent growth
Low-60s percent range
Low-to-mid-teens percent growth
Mid-30s percent range
Moody's does not provide medium-term operating margin and diluted EPS guidance on a U.S. GAAP basis because the items that the Company excludes to derive Adjusted Operating Margin and Adjusted Diluted EPS cannot be reasonably
predicted or assumed, for example the amount of amortization associated with acquired intangible assets from future M&A activity. Accordingly, the Company does not forecast these items over the medium-term. The occurrence, timing and
amount of any of the items excluded from operating income to derive Adjusted Operating Income, Adjusted Operating Margin and Adjusted Diluted EPS could significantly impact the Company's medium-term U.S. GAAP results.
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4Q and FY 2023 Investor Presentation 72View entire presentation