MORN FY 2022 Earnings Report — Morningstar, Inc. Revenue & Financial Results | Market Cap Arena

Morningstar, Inc.MORN

FY 2022 Earnings

Reported February 24, 2023

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	FY 2022	Prior Q	FY 2021	QoQ Change	YoY Change
Revenue	$1.9B	—	$1.7B	—	10.1%
Op. Income	$168M	—	$257M	—	-34.7%
Gross Margin	58.3%	—	58.9%	—	-0.6pp
Net Margin	3.8%	—	11.4%	—	-7.6pp
EPS (Diluted)	$1.64	—	$4.45	—	-63.1%
Free Cash Flow	$168M	—	$348M	—	-51.7%

Revenue Flow

Item	Amount
REVENUE	$1.9B
Cost of Revenue	$779M
GROSS PROFIT	$1.1B
R&D Expenses	$0
Selling & Marketing	$357M
General & Administrative	$400M
SG&A Expenses	$757M
Other Expenses	$167M
Operating Expenses	$924M
Cost & Expenses	$1.7B
OPERATING INCOME	$168M
Interest Income	$2M
Interest Expense	$28M
Other Income/Expenses	-$41M
INCOME BEFORE TAX	$127M
Income Tax Expense	$57M
Net Income from Continuing Ops	$71M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$71M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$71M
D&A	$167M
EBIT	$159M
EBITDA	$326M
EPS	$2
EPS Diluted	$2

Income Statement

Item	Amount
REVENUE	$1.9B
Cost of Revenue	$779M
GROSS PROFIT	$1.1B
R&D Expenses	$0
Selling & Marketing	$357M
General & Administrative	$400M
SG&A Expenses	$757M
Other Expenses	$167M
Operating Expenses	$924M
Cost & Expenses	$1.7B
OPERATING INCOME	$168M
Interest Income	$2M
Interest Expense	$28M
Other Income/Expenses	-$41M
INCOME BEFORE TAX	$127M
Income Tax Expense	$57M
Net Income from Continuing Ops	$71M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$71M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$71M
D&A	$167M
EBIT	$159M
EBITDA	$326M
EPS	$2
EPS Diluted	$2

Cash Flow Statement

Item	Amount
Net Income	$71M
Depreciation & Amortization	$167M
Stock-Based Compensation	$83M
Deferred Income Tax	-$37M
Other Non-Cash Items	$27M
Change in Working Capital	-$12M
OPERATING CASH FLOW	$298M
Capital Expenditure	-$130M
Acquisitions (Net)	-$676M
Purchases of Investments	-$37M
Sales/Maturities of Investments	$43M
Other Investing Activities	-$200.0K
NET CASH FROM INVESTING	-$799M
Net Debt Issuance	$751M
Common Stock Repurchased	-$226M
Common Dividends Paid	-$62M
Other Financing Activities	-$48M
NET CASH FROM FINANCING	$415M
FREE CASH FLOW	$168M
Net Change in Cash	-$107M

Balance Sheet

Item	Amount
Cash & Equivalents	$377M
Short-Term Investments	$38M
Net Receivables	$308M
Inventory	$0
Other Current Assets	$52M
TOTAL CURRENT ASSETS	$811M
PP&E (Net)	$391M
Goodwill	$1.6B
Intangible Assets	$549M
Long-Term Investments	$96M
Tax Assets	$11M
Other Non-Current Assets	$46M
TOTAL NON-CURRENT ASSETS	$2.7B
TOTAL ASSETS	$3.5B
Account Payables	$76M
Short-Term Debt	$32M
Deferred Revenue	$456M
Other Current Liabilities	$281M
TOTAL CURRENT LIABILITIES	$883M
Long-Term Debt	$1.1B
Deferred Revenue NC	$34M
Deferred Tax Liabilities	$63M
Other Non-Current Liabilities	$35M
TOTAL NON-CURRENT LIABILITIES	$1.4B
TOTAL LIABILITIES	$2.3B
Common Stock	$0
Additional Paid-In Capital	$758M
Retained Earnings	$1.5B
Treasury Stock	-$987M
Accum. Other Comp. Income	-$99M
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$1.2B
Minority Interest	$0
TOTAL EQUITY	$1.2B
TOTAL LIABILITIES & EQUITY	$3.5B
Total Debt	$1.3B
Net Debt	$947M