Q4 2021 Thomson Reuters Corp Earnings Call

Speaker 1: Welcome everyone to the Q4 2021 earnings call. My name is Sue. I'm your assistant manager. During the presentation, your lines will remain on list lonely. We will conduct a question and answer session towards the end of the call. Please key staff and one on your telephone to Q4 question.

Welcome everyone to the Q4 2021 earnings call. My name is Sue I'm Yours have Amit you showing the presentation. Your lines will remain on listen only we will conduct a question and answer session towards the end of the call. Please key Star then one on your telephone.

To queue for a question.

If you need assistance at any time, please key star zero and operator, we'll be happy to assist you.

Speaker 1: If you need assistance at any time, please key star zero and operator will be happy to assist you.

Speaker 1: I would like to advise all parties that this conference is being recorded. And now I'll hand over to Frank Golden, head of investor relations. Please go ahead.

I would like to advise all parties. This conference is being recorded and now I'll hand over to Frank Colton head of Investor Relations. Please go ahead.

Good morning, and thank you for joining us today for our fourth quarter and full year 2021 earnings call.

Speaker 2: Good morning. Thank you for joining us today for our fourth quarter and four year 2021.

Speaker 2: Join today by our T-O-SPEE PASCER and our CFL Mike Eastwood. Each of you will report our results and take your questions following their remarks.

Today by our CEO , Steve <unk>, and our CFO , Mike Eastwood Egypt.

Results and take your questions following their remarks.

Speaker 2: Today marks my final earnings call as head of the Investigation for Council Invaders.

Today marks my final earnings call as head of Investor Relations for Thomson Reuters at.

Speaker 2: I'd like to announce that we're also joined by Gary Bigby, who will soon roll ahead of investigation for Thompson Reuters on March 1st in advance of my retirement in July . I couldn't be more pleased to place the baton in the very capable hands of Gary, when many of you already know.

I'm pleased to announce we're also joined by Gary Bisbee, who assumed the role of head of Investor Relations for Thomson Reuters on March 1st.

With my retirement in July .

I couldn't be more pleased placement, but not in the very capable hands with Gary who many of you already know.

Speaker 2: Gary covered Thompson-Mortars on the Southside, a bank of America's security for the past three years, and a little bit of terrific job.

Gary has covered pumps in orders on the sales side of Banc of America Securities for the past three years, and then there will be a terrific job.

Speaker 2: After 18 years of time, some lawyers, including 71 earnings, called on eight investor days, it's time for my next adventure. And spend more time with my wife and family. I truly enjoyed my time at TR, having worked with four CBOs, three CFOs, and hundreds of very talented colleagues over that time.

After 18 years at Thomson Reuters included 71 earnings call, we made Investor days, It's time for my next adventure.

Spend more time with my wife and family.

I truly enjoyed my time at T. R. Having worked with <unk> three.

Hundreds of very talented colleagues over that time.

Speaker 2: Also, we've been speaking with many of you. You've challenged me and for me and even entertained me a bit of times. You've helped me do this job better and for that I am grateful.

Also means.

With many of you.

Maybe for me to even entertain you get better times, we thought we'd be.

This job better and for that I am grateful.

Lastly, I've watched Thomson Reuters evolved to become one of the preeminent business information services companies in the World and remember Stephen Mike's leadership I'm confident you are and will continue to build on this progress further strengthened <unk> position for the benefit of our investors customers and employees.

Speaker 2: Lastly, I'd watch Thompson Reuters evolve to become one of the preeminent business information services companies in the world. And industry, the Mike's leadership, I'm confident you are will continue to build on this progress. Further strengthening the position for the benefit of our investors, customers, and days.

Now to the results.

So a lot to share today, so to enable us to get through as many questions as possible. We would appreciate it if you would limit yourself to one question each and one follow up and then open the phone lines.

Speaker 2: I'd like to share today so to enable us to get through as many questions as possible, we'd appreciate it if you would limit yourselves to one question each and one follow up and open the phone line.

Throughout today's presentation, when we compare performance period on period, we discuss revenue growth rates before currency as well as on an organic basis.

Speaker 2: To wrap today's presentation, we'll be comparing performance period on periods to discuss revenue growth rates before currency, as well as on an organic basis.

Speaker 2: We disdivide the best states and nations to underline performance of the business. Work.

This provides the best stages to measure the underlying performance of the business.

Before I turn it over to Steve I want to note that.

Speaker 2: I want to note that reflecting how we currently manage revenue across our segments, we are making two changes affected January 1st, 2022.

I wanted to note that the flip me, how we currently manage revenue across our segments.

We're making two changes effective January one 2022.

For comparability, we will revise our 2021 results beginning when we report our first quarter 2022.

Speaker 2: The compatibility of the revised are 2021 results. We've given you a report, first quarter 2022 results and NAICS.

Speaker 2: These changes will not have any impact on our consolidated results.

These changes will not have any impact on our consolidated results.

Speaker 2: First we will record inter-company revenues for lawyers' needs for content-related services that it provides to our legal professionals, corporates, and tax accounting professionals.

Firstly, we will record intercompany revenues for Reuters news for content related services that it provides to our legal professionals corporates and tax <unk> accounting professionals businesses.

Speaker 2: Previously, we services have been reported as a transfer of expense from lawyers to these businesses. So there was no impact on any segment suggested evidence.

Previously these services have been reported as a transfer of expense from Reuters to these businesses. So there was no impact from any segments adjusted EBITDA.

Speaker 2: Two, the transfer 9 million of revenue from the corporate business to our tax and accounting business will be managed and where it fits better.

Two we will transfer $9 million of revenue from the corporates business to our tax and accounting business.

We manage where it fits better.

Speaker 2: I'd like to direct you to the Investor Relations section of our website, the post-bid schedule that reflects our revised full year 2019, 2020, and 2021 results, as well as our revised 2021 quarterly results. In the manner we will begin reporting in 2022.

I'd like to direct you to the Investor Relations section of our website, where we posted a schedule that reflects our revised full year 2019, 2020 and 2021 results.

As well as our revised towards 2021 quarterly quarterly results in the manner, we will begin reporting through 2022.

Today's presentation contains forward looking statements and non <unk> financial measures actual results may differ materially due to a number of risks and uncertainties related to the COVID-19 impact and the other risks discussed in reports and filings that we provide from time to time to regulatory agencies.

Speaker 2: Today's presentation contains both of the statements and non-IFRS for mention measures. Actual results in a different material due to a number of risks and uncertainties related to the COVID impact and other risks discussed in reports and filings that it provides from time to time to regulatory agents.

Speaker 2: You may access these documents on our website or by contacting our Investur relations department. Let me now.

You may access these documents on our website or by contacting our Investor relations.

Let me now turn it over to Steve <unk>.

Speaker 3: Thank you, Frank, for the introduction, and thank you for all of you done for Thompson Reuters over 18 years, and welcome to Gary. Thanks to all of you for joining us today. I'm pleased to report the momentum we saw in the first nine months of the year, continued in the fourth quarter. Revenue and sales growth were...

Thank you frankly, the introduction and thank you for all you've done for Thomson Reuters over 18 years and welcome to Gary.

Thanks to all of you for joining us today I'm pleased to report the momentum we saw in the first nine months of the year continued in the fourth quarter.

Revenue and sales growth were again strong exceeded our expectations and we closed out the year on a solid footing.

Speaker 3: We've seen it in our expectations and we closed out the year on a solid putty.

Speaker 3: This performance has created maintenance we started 2022.

This performance has created momentum as we started 2022.

Speaker 3: We need us help to build our confidence as we work to achieve our 2022 and 2023 targets. They're increasingly...

Can you just helped build our confidence as we work to achieve our 2022 and 2023 targets.

They are increasingly in a position of strength.

Speaker 3: Since March 2020, when COVID began to negatively impact the global economy, professional markets everywhere is that.

Since March 2020, when Covid began to negatively impact the global economy.

Professional market.

<unk> resilient and continue to grow helped by a significant global shift.

Speaker 3: continue to grow health by a significant cloud of <expletive> .

Speaker 3: find out customers to upgrade legal, tax and risk-caforing compliance products.

Customers dropped Craig legal.

Cash and risk and compliance products.

Speaker 3: Customers also continue to exhibit more confidence in their own future prospects.

Customers also continued to exhibit more confidence in their own future prospects.

Speaker 3: and products approving well suited to enable our customers to effectively serve their clients.

Our products are proving well suited to enable our customers to effectively serve our clients.

Speaker 3: targeting investment products that are driving faster growth and where we have strong positions in growing market.

Targeting investing in products that are driving faster growth and where we have strong positions in growing markets.

This dynamic enabled us to achieve 5% organic revenue growth for the full year 2021, the highest growth rate in over a decade.

Speaker 3: This dynamic enabled us to achieve 5% organic revenue growth for the full view 2021, the highest growth rate in over a decade.

Speaker 3: while also improving our underlying profitability and free cash flow.

While also improving our underlying profitability and free cash flow.

Speaker 3: The fourth quarter results reflect an improved performance. Four of our five business segments, again, recorded organic revenue growth of 6% or greater and total company organic revenues grew 6%. We continue to make steady progress with our change program.

Our fourth quarter results reflect an improving performance for the five business segments again recorded organic revenue growth of 6%, but great job and total company organic revenues grew 6%.

We continue to make steady progress without change program.

We transform to a content driven technology company, and we have achieved $200 million of savings a spa.

Speaker 3: And we have achieved that at $200 million in savings thus far, one third of our $600 million target.

<unk> about $600 million Congress.

We also achieved all about 2021 guidance targets that we increased throughout the year.

Speaker 3: We also achieved all of our 2021 guidance targets that we increased throughout the year. Given the momentum...

Given the momentum in the business and that growing confidence today, we increased our 2022 and 2023 guidance.

Speaker 3: Today we increased our 2022 and 2023 guns from what we provided.

From what we provided at this time last year.

Speaker 3: And finally this morning we announced that 10% increase in our end of dividend to $1.78 per share, the 29th consecutive annual increase in the largest increase since 2008.

And finally this morning, we announced a 10% increase in our annual dividend to $1 78.

Sure the 29th consecutive annual increase and the largest increase since 2008.

Now to the results for the quarter.

Speaker 3: Fourth quarter reported and organic revenues were about 6% attributable to strong results from the big three businesses and roy.

Fourth quarter reported and organic revenues were up 6% attributable to strong results from our big three businesses <unk> and similar to the last quarter. This performance included strong organic growth of more than 20%.

Speaker 3: And similar to the last quarter, this performance included strong organic growth of more than 20% from our Latin American businesses and nearly 10% growth from our Asia and emerging markets.

Our Latin American businesses, and nearly 10% growth from Asia and emerging markets businesses adjusted EBITA declined 14%.

Speaker 3: Adjusted EBITDA declined 14% for $452 million due to costs related to the change program, higher performance bonus expense and a discretionary investment of $25 million to better position the business for 2022, which might we'll discuss. This resulted in a margin of

The $452 million due to costs related to the change program higher performance bonus expense and a discretionary investment of $25 million to better position the business for 2022, which mark will discuss.

It resulted in a margin of 26, 4%.

Speaker 3: Excluding change programming costs adjusted at a margin of 31.1.

Excluding change program costs adjusted EBITDA margin was 31, 1%.

Speaker 3: Adjusted earnings per share for the quarter is 43 cents compared to 54 cents.

Adjusted earnings per share for the quarter was 43 compared to 54.

Speaker 2: share in prior your period. The additional $25 million we invested in the course out lowered adjusted EPS by force fence. it's tormenting.

Per share prior year period, the additional $25 million, we invested in the quarter lowered adjusted EPS by <unk> <unk>.

Turning to fourth quarter results by segment.

Speaker 3: The big three businesses achieved organic revenue growth of 7% were affecting strength across teams from the business.

Big three businesses achieved organic revenue growth of 7%, reflecting strength across each of the businesses.

Speaker 3: US Legal Market is very helping throughout 2021 and how performance benefited from that done it.

U S legal market is very healthy throughout 2021 and outperformance benefited from net dynamic.

Speaker 3: Legal sports court performance was again impressive with organic revenue growth of 6%. The third consecutive court out of 6% growth.

<unk> fourth quarter performance was again impressive with organic revenue growth of 6%.

The third consecutive quarter up 6% Kraft.

Speaker 3: For the Aravigny Grote, it's also 6% the highest annual Grote rate since 2000.

Full year revenue growth was also 6% the highest annual growth rate since 2008.

Speaker 3: Sales were strong throughout the year, including Q4. We exit the year in a good position, recording double digit, and repairing sales growth in Q4, reflecting customers willingness to invest in productivity and hunting products.

Sales were strong throughout the year, including Q4, we exited the year good position recording double digit recurring sales growth in Q4, reflecting customers' willingness to invest in productivity enhancing products.

Speaker 3: For example, Westmore Edge continued to achieve strong sales growth and ended the quarter with an annual contract value or ACV penetration 65%. Achieving the top end of our guidance with more opportunity in 2022, with a target of 70% to 75% penetration and the expected launch for PEDGE 2.0.

For example.

<unk> continued to achieve strong sales growth and ended the quarter with an annual contract value or ICB penetration of 65% achieving the top end of that guidance with more opportunities in 2022, with a target of 70% to 75% penetration and the expected launch the pitch to people know.

Second practical law as reported in our legal segment had a terrific quarter and.

Speaker 3: Second, practical law, as reported in the legal segment, had a terrific call and yet growing mid-teens in both periods. We forecast another strong performance in 2022 for practical law as we continue to invest in this key legal growth by the initiative.

And yet growing mid teens in both periods, we forecast another strong performance in 2022 perpetual more as we continue to invest in the street legal.

Initiatives.

Speaker 3: Third, our government business, which is managed within a legal segment, 37% organically in Q4, a 9% per year, and it keeps strong sales in Q4, setting it up well for strong growth in 2020.

Our government business, which is managed within our legal segment grew 7% organically in Q4, 9% for the year and achieved strong sales in Q4, setting it up well for strong growth in 2022 and for our legal business is in Canada, and Asia grew double digit in the quarter, while Europe could be.

Speaker 3: And for our legal businesses in Canada and Asia, through double digit and quarter, while Europe , Green, Mid, Singapore,

Single digits.

Turning to the corporate business organic revenue growth continued to accelerate and was up 7% from 6% in Q3, 4% in the first half of the year.

Speaker 3: Going to the corporate's business, organic revenue growth continued to accelerate and was up 7% from 6% in Q3 to 4% in the first half.

Speaker 3: This improvement came from increasing demand for customers for our legal, tax and roost product.

This improvement came from increasing demand for customers for our legal tax and rooster product.

Speaker 3: The taxing accounting had a terrific quarter end year with organic revenue growth at 9% above periods and strong Q4 sales. This performance was stronger and expected thanks to ultra tax, our audit solutions products, and a strong performance by a Latin American tax business, the Minio, that grew more than 20% for this.

And tax and accounting had a terrific quarter and year with organic revenue growth of 9% for both periods and strong Q4 sales performance was stronger than expected. Thanks to ultra tax audit solutions products and a strong performance by our Latin American tax business Dominion.

Grew more than 20% for the year.

Speaker 3: Royalty's new organic revenues increase 12% in Q4 with growth across all of the business lines, particularly the professional business, which includes digital advertising, custom content, and Royalty's events, which continues to recover from the negative impact of COVID-19 in 2020. And finally, global print organic revenues decline 4%. We don't expect it. We will continue to graduate the 20-hour-past-hour customers and hire third-party customers.

Reuters news organic revenues increased 12% in Q4 with growth across all of our business lines, particularly the professional business, which includes digital advertising custom content and Reuters events, which continues to recover from the negative impact of Covid.

Maintained in 2020, and finally global print organic revenues declined 4%.

Due to a continued gradual return to work the spa customers and higher third party print revenues.

Speaker 3: So in summary, we're very pleased with that result, and we're very excited about the momentum.

So in summary, we're very pleased with our results and we're very excited about the momentum will continue.

Speaker 3: We expect further improvement to our performance this year, and to be invest to further strengthen our positions across the business.

We expect further improvement to our performance this year as we invest to further strengthen our positions across the business segments.

Speaker 3: Will you report a revenues from up 6% of organic revenues from up 5% thanks to strong results from the big three businesses?

Full year reported revenues were up 6% and organic revenues were up 5%. Thanks to strong results from our big three businesses and releases.

Speaker 3: Just that EBITDA decline slightly and was just try of $2 billion due to cost related to the change program and higher performance bonus expense. Resulting in a month.

Adjusted EBITDA declined slightly and was just shy of $2 billion due to costs related to the change program and higher performance bonus expense, resulting in a margin of 31%.

Speaker 3: Excluding change program costs, adjusted EBITDA margin was 33.9%, about 100 basis points higher than 2020. Adjusted earnings per share for the year was $1.95 compared with $1.85 per share in the prior year.

Excluding change program costs adjusted EBITDA margin was 33, 9%.

100 basis points higher in 2020.

Adjusted earnings per share for the year was $1 95.

With $1 85 per share in the prior year.

Speaker 3: Let me discuss several of the key contributors to accelerating growth and improving costs.

Let me discuss several of the key contributors to accelerating growth and improving prospects here.

Speaker 3: Hearing our invested day in mass loss to you, I shared with you that we're investing in seven strategic point priorities within the big three six.

During our Investor day in March last year I shared with you that we are investing seven strategic growth priorities, we did the big three segments.

Speaker 3: These businesses grew 6.5% on a combined basis in 2021.

These businesses grew six 5% on a combined basis in 2021.

Speaker 3: of personal

Several growing double digits, and our foundational westworld product up 4%.

Speaker 2: We continue to believe that our opportunities about powering the world's most informed

We continue to believe that our opportunity is about powering the world's most informed professionals and we're hoping for the future through digital automation augmentation and collaborations powered.

Speaker 3: and we're helping forward to that future through digital automation, or documentation and collaboration.

Speaker 3: powered by a combination of unique content, world-class AI machine learning, investor-bred workflow software. These products do...

Powered by a combination of unique content World class.

And machine learning and best of breed workflow software.

These products do precisely that.

Against this Brian will continue and invested heavily in these strategic priorities and will continue to shift the proportion of capital investment.

Speaker 3: Against this prime, we'll continue to invest in heavily in these strategic priorities and we'll continue to shift the proportion of capital investment in the United States.

Sure.

Speaker 3: These investments are expected to continue except to help accelerate organic growth and enable us to achieve our revenue growth target of 5.5 to 6% in 2023.

These investments are expected to continue to accept help accelerate organic growth and.

And enable us to achieve our revenue growth target of five 5% to 6% in 2023.

Speaker 3: M&A is also expected to play an important role in accelerating our organic growth and priorities, and we have an active pipeline of potential future acquisitions across our core segments. Additionally, we recently launched our new Thompson Waters Venture Fund, which will invest up to $100 million of seed funding for start-up companies to cultivate innovation and expand our M&A pipeline.

M&A is also expected to play an important role in accelerating organic growth and priorities and we have an active pipeline of potential future acquisitions across our core segments.

Additionally, we recently launched a new Thomson Reuters pension fund.

Which will invest up to $100 million of state funding startup companies to cultivate innovation.

Spanned M&A pipeline.

Speaker 3: Let me finish on the financials for the full year by noting that we met or exceeded each of our 2021 guidance metrics.

Let me finish on the financials for the full year by noting that we met or exceeded each of our 2021 guidance metrics, which reflects the resilience of the business and the visibility we have businesses and markets.

Speaker 3: which reflects the resilience of the business and the visibility we have in our businesses.

I would now like to update you on the progress related to our change program, including highlight highlighting the progress from our product and innovation teams.

Speaker 3: I would now like to update you on the progress related to our change program, including highlighting the progress from our products and innovation.

Speaker 3: You'll recall I presented this slide in our investor day last year, and it's as relevant today as it was.

You will recall I presented this slide at our Investor day last year, and it's as relevant today as it was bad.

Speaker 3: We continue to benefit from fundamental and providing tile with studio increasing legal, tax, and regulatory complexity, which favours business information services markets and provides.

We continue to benefit from fundamental and prevailing tiles due to increasing legal tax and regulatory complexity, which favors business information services markets and providers.

Speaker 3: And as we enter the third year of the pandemic, its lasting impact on the market segments we serve is becoming clear.

And as we enter the third year of dependent it's lasting impact on the market segments. We serve has become clearer.

Speaker 3: Digital transformation has accelerated, driven by virtual working and client demands to engage digitally with the firms and departments that serve.

It'll transformation has accelerated.

Driven by virtual working client demands to engage digitally with defense and departments that soup.

It's unlikely to be a passing fad hybrid and virtual working is here to stay which is increasing customer expectations, a digital experiences and demand for content enabled cloud based AI powered solutions to drive professional efficiency and effectiveness continues to grow.

Speaker 3: It's unlikely to be a passing card. Hybrid and virtual working is here to stay, which is increasing customer expectations and digital experience.

Speaker 3: and demand the content enabled cloud-based AI cloud solution.

Speaker 3: drive professional efficiency and effectiveness continues to grow.

Speaker 3: There's a taste between grace-based technologies in our core and our more traditional customers' segments.

Hesitation to embrace new technologies in our core.

Our traditional customer segments.

Speaker 3: giving way to an appreciation of the benefits to be gained from doing.

Keeping way.

And appreciation of the benefits to be gained from doing so.

And our goal of becoming a content driven technology company includes excelling in product innovation.

Speaker 3: And our goal of becoming a content-driven technology company includes excelling at product innovation.

Speaker 3: and successfully integrating our products to provide customers with a seamless offering, while delivering an excellent customer experience.

And successfully integrating our products to provide customers with a seamless offering while delivering an excellent customer experience.

Speaker 3: We believe this approach will further improve customer loyalty and increase retention as we continually enhance our products adding to organic growth. Our change program is targeted at achieving these objectives and we're making good progress. Let me share several examples of that progress.

Believe this approach will further improve customer loyalty and increase retention as we continually enhance our products, adding to organic growth.

That change programs target in achieving these objectives and we're making good progress let me share several examples of that progress.

Speaker 3: I won't take you through each of the items on this slide. Rather, I want to highlight the progress we've made last year in transforming to a more integrated sim.

I'd like to take you through each of the items on this slide rather I want to highlight the progress we've made last year in transforming to a more integrated simple.

Yeah.

Speaker 3: We are reducing complexity in our operations and technology group, which is critical for us to achieve the change program goals and margin targets. We've made significant progress, which you can see on this slide, including 35, 37% of our revenue is now on the cloud solution. And we're on track to achieve that target of 90% of our revenue available in the cloud by the end of 2023. FMB digital sales increased to 29% as a definitive total sale.

We are reducing complexity in our operations and technology group, which is critical for us to achieve the change program goals and margin targets. We've made significant progress, which you can see on this slide including 35, 37% of our revenue is now on a cloud solution and we are on track to achieve our target of 90%.

Although revenue available in the cloud by the end of 2023.

SMB digital sales increased to 29% as a percentage of total sales.

Speaker 3: improving our internal process with in order to cash, reduce the customer facing incidents, invoice rework, and abort together our product content and editorial strategies to improve customer delivery and drive efficiency.

Proving our internal process, we did order to cash is reduced customer facing incidents.

Voice rework.

Together, our product content and editorial strategies to improve customer delivery and drive efficiencies. Each of these achievements are critical.

Speaker 3: Each of these achievements are critical, which would simplify and improve the customer experience we put off.

<unk> improved the customer experience we provide.

We also reduced our global footprint of office locations from 102 to 46 now coal Santos from 99.

Speaker 3: We've also reduced our global footprint of office locations from 102 to 46 and our call centers from 99 to 77.

77.

Speaker 3: On one additional point here, talent is key to completing challenges. And our goal is to build the best team in business information services by developing a track.

And one additional point here talent is key to completing our initiatives and our goal is to build the best team and business information services by developing and attracting.

Top quality talent and delivering differentiated and employee experiences over the past two years, we have bought in new key talent into our organization within product engineering marketing Desert analytics design operations and technology.

Speaker 3: top global talent and delivering a differentiated with employee experience. Over the past two years, we have brought in new key talent into our organization with the product, engineering, marketing, data analytics, design, operations and technology, amongst other key areas. The distant talent, different perspectives and approaches, which have complemented the skills and experiences of existing leadership, and very, very pleased with the progress we've made.

<unk> other key areas the distinct talent.

Different perspectives and approaches which are complementary skills and experiences.

Listing leadership I'm very very pleased with the progress with Mike.

A few additional points regarding the change program.

Speaker 3: We might progress towards shifting customers to a more digital automated experience with the launch itself set of capabilities and automated tools for

We made progress towards shifting customers to a more digital automated experience with the launch of self serve capabilities and automated tools to support so.

Speaker 3: Delivery of the customer experience of the features on the way, and our goal remains to create fast, frictionless, connected, transparent and personalized customer experience.

Delivery of the customer experience of the future is underway and our goal remains to create fast frictionless connected transparent and personalized customer experiences.

Speaker 3: Our key areas of focus continue to be, first, a digital-first approach for small customers, second, a 360-degree view of the customer.

Areas of focus continued to be first.

A digital first approach for small customers second to 360 degree view of the customer.

Speaker 3: Third, simplified and standardized commercial terms, billing processes and customer support, for seamless digital product trials and digital purchasing, and fit data driven and AI powered sales and marketing. We expect these changes to redefine our customer experience and match their expectations by the end of 2023, by which time a large portion of customer placing sales.

Third simplified and standardized commercial terms billing processes and customer support for seamless digital product trials and purchasing and fifth data driven and AI powered sales and marketing. We expect these changes to redefine the customer experience to match their expectations by the end of 2023.

Each time, a large portion of the customer facing sales.

Speaker 3: Sales operation and support could be digitized in water.

Sales operations and support to be digitized and automated.

Speaker 3: The impact of this should be twofold. First, we believe, delighting our customers will translate to improve that promoter score that include proof retention in new sales opportunities.

Impact of this should be twofold first we believe delighting our customers will translate to improved net promoter score leading to improved retention and new sales opportunities and second decreasing the cost to serve.

Speaker 3: Decreasing the cost to the customer enables us to reallocate funds to pursue new

Customers enables us to reallocate funds to pursue new organic growth opportunities.

Speaker 3: improving our agility to test new product ideas quickly with customers which we believe will lead to further improvements in the top and bottom line.

Proving our agility to test new product ideas quickly with customers, which we believe will lead to further improvements in the top and bottom lines.

Speaker 3: So let me now turn to product generation. Last year we ramped up our focus and our investment in product generation and we will continue to do so. We expect new products and product enhancements will be a key lever to accelerate revenue going forward.

So let me now turn to product innovation.

Last year, we ramped up our focus and investment in product innovation, and we will continue to do so.

We expect new products and product enhancements will be a key lever to accelerate revenue going forward.

Speaker 3: and our product development teams are making good progress.

And our product development teams are making good progress.

Speaker 3: Entering 2022, the product organisation is prioritising resources where we can build and maintain leadership positions and support pure products, a shift from our historical approach of making small investments in many.

Entering 2022, the product organization is prioritizing resources, where we can build and maintain leadership positions and support fewer products.

For mountain historical approach of making small investments to many cogs.

Speaker 3: The organizational design model enables us to work as a better integrated, more effective team, moving from an organization with data to a data-driven organization.

The organizational design model enables us to work as a better integrated more effective team moving from an organization with Dana to a data driven organization.

Our content is a significant competitive advantage and differentiates us against our key competitors.

Speaker 3: How content is a significant competitive advantage and different insights us against our key competitive?

Speaker 3: The new product organization structure we formed last year positions us to achieve greater success by leveraging that valuable content enriching it with world-class AI and machine learning and best of breed software and delivering it in the class.

The new product organizational structure, we formed last year positions us to achieve greater success by leveraging that valuable content enriching it with low cost Iot machine learning and best of breed software and delivering it in the cloud.

Speaker 3: Investing in an improved user experience across our products is another important priority, so that our customers can interact with our content with minimal points.

Investing in an improved user experience across our products is another important priority so that our customers can interact with our content with minimal points of friction and.

Speaker 3: And we're increasing investment in our people as well as technology and product organizations to expand and accelerate.

And we are increasing investments in our people as well as technology and product organizations.

Spanned and accelerate innovation and speed to market.

Speaker 3: We would believe this will enable us to continue to be leaders within our core market segments and allow us to expand into adjacent markets.

We believe this will enable us to continue to be leaders within our core market segments and allow us to expand into adjacent market opportunities.

Speaker 3: And lastly, here are some examples of products and initiatives in which we're investing, that are contributing to file and minigame. Let's go lower indirect tax to...

And lastly here are some examples of products and initiatives in which we're investing are contributing to higher organic.

At Galore and indirect tax two of our strategic initiatives released new and enhanced product modules last year, which were well received by customers and we expect they will again contribute to higher organic revenue growth in 2022 and beyond.

Speaker 3: released new and enhanced product modules last year, which will well received by Cuts.

Speaker 3: and we expect that we will again contribute to higher organic revenue growth in 2022.

Speaker 3: We also made good progress last year form in the centralized partnership team, led by our core project.

We also made good progress last year, forming a centralized partnership team led by our corporate group.

Speaker 3: which we are seeing good traction having signed partnership agreements with Oracle, SAP, AWS,

We are seeing good traction having signed partnership agreements with Oracle.

Asap.

U S <unk>.

Speaker 3: In 2021, we accelerate the work we're doing to provide our content and work-wise solutions to custom-spirate.

And in 2021, we accelerated the work we're doing to provide our content of workforce solutions to customers by Ipi.

Speaker 3: The 2022 will accelerate and expand our eight-guide ecosystem where we can improve the experience for both consisting and new customers.

2022 will accelerate and expand our API ecosystem, where we can improve the experience for both existing and new customers. We are confident this will open up new channels and new business models, and new product offerings and will help grow our partner ecosystem.

Speaker 3: We're confident this will open up new channels, new business models, and product offerings will help grow our partner.

Speaker 3: And as our capabilities surrounding APIs continue grow, they will enable us to further integrate this in fast content and solutions in what our customers work was, contributing to our growth.

And as our capabilities surrounding Apis continue to grow it will enable us to further integrate <unk>.

Best in class content and solutions into our customers workflows contributing to our growth.

Before I turn it over to Mike.

Speaker 3: For our turn around the mic, let me discuss about updated guidance for 2022 and 2023.

Let me discuss our updated guidance for 2022 and 2023.

Speaker 3: I'm very pleased to report that given the positive trajectory of the business, we're increasing our revenue adjusted every time margin and free cash flow of guidance from that which we provided yesterday March 2021.

I'm very pleased to report that given the positive trajectory of the business. We are increasing our revenue adjusted EBITDA margin and free cash flow guidance from that which we provided yesterday March 2021.

Speaker 3: Now for past total company organic revenue growth of approximately 5-10.

Now for US total company organic revenue growth of approximately 5%.

For 2022, and five 5% to 6% for 2023.

Speaker 3: 2022 and 5.5 to 6% for 2023. Let me remind you that 2021's organic revenue growth of 5%, included about 100 basis point benefit from easier year-over-year costs related to COVID-19 items in 2020.

Let me remind you that 2021 organic revenue growth of 5% included about 100 basis point benefit from easier year over year comps related to COVID-19 items in 2020.

Speaker 3: Big three organic revenue growth is forecast between 6.5% in 2022 and 6.5% to 7% in 2023. We forecast on the adjusted EBITDA margin of 35% for 2022 and between 39 and 40% for 2023.

Big three organic revenue growth is forecast between six and six 5% in 2020, 265% to 7% in 2023, we forecast an adjusted adjusted EBITA margin of 35% for 2020.

And between 39, and 40% for 2023 and.

Speaker 3: And free cash flow is now forecast at about $1.3 billion for 2022 and between $1.9 to $2 billion with free cash flow per share between $3.19 and $4.10 for 2023.

And free cash flow is now forecast at about one $3 billion for 2022 and between $1 $9 2 billion with.

With free cash flow per share between $3 90, and $4 10 for 2023.

Speaker 2: I'm confident we'll achieve these higher targets. And let me now turn it over to Mike. Thank you, Steve, and thanks for-

I'm confident we'll achieve these high targets and let me now turn it over to Mike.

Thank you, Steve and thanks for joining us today.

Speaker 2: As a reminder, I will talk to revenue growth, people of currency, and on an integrated basis.

As a reminder, I will talk to revenue growth before currency and on an organic basis let.

Speaker 2: Let me start by discussing the fourth quarter revenue performance of our big three segments.

Let me start by discussing our fourth quarter revenue performance of our big three segments.

Speaker 2: Revenue's were up 7% organic date and a constant currency could appear.

Revenues were up 7% organically and at constant currency for the quarter.

Speaker 2: This March the 6 consecutive quarter of the day three segments have gone at least 5%.

This marks the sixth consecutive quarter of day three segments have grown at least 5%.

Legal professionals total revenues increased 5% and organic revenues increased 6% in the fourth quarter.

Speaker 2: Leave the profession as total revenues increased 5% and organic revenues increased 6% and the fourth quarter.

Speaker 2: Recurring organic revenue grows 6% and transaction revenues increased 6%.

Recurring organic revenue grew 6% and transaction revenues increased 6%.

Speaker 2: fourth quarter, Danny Greben, who is driven by practical law, elite, fine law, and our government business.

Fourth quarter organic revenue growth was driven by practical law.

ALLETE buying.

Fine law and our government business.

Speaker 2: Less low edge added about 100 basis points to legal organic growth rates, maintaining a healthy premium, and is expected to continue to contribute at a similar level going forward, supported by the planned release of edge 2.0 during the second half of this year.

<unk> added about 100 basis points to Legals organic growth rate.

Maintaining a healthy premium and is expected to continue to contribute at a similar level going forward supported by the planned release of ads to the auto during the second half of this year.

Our government business, which is reported within legal and includes much of our risk and compliance businesses grew 7% for the quarter and 9% for the year and exited Q4 with strong sales and good momentum entering 2022.

Speaker 2: Our government business, which is recorded within legal, and includes much of our risk, fraud, and compliance businesses, through 7% for the Twitter, and 9% for the year, and actually the Q4, which drawn cells and good momentum entering 2022.

Quarter to quarter performance can vary for this business given the government contracting process.

Speaker 2: Order completed performance can vary to this business given the government contracting process.

Speaker 2: project work and those who you're funding in the various agencies.

<unk> four and fiscal year funding from the various agencies.

Speaker 2: We believe 2022 will be another year healthy revenue growth supported by strong Q4 2021 sales.

We believe 2022 will be another year of healthy revenue growth supported by strong Q4 2021 sales.

Speaker 2: In our corporate segment, total and organic revenues increase 7% to the quarter due to occurring organic revenue growth of 7% and transactions of organic revenue growth of 4%.

In our corporate segment total and organic revenues increased 7% for the quarter due to recurring organic revenue growth of 7% and transactions organic revenue growth of 4%.

Speaker 2: Current revenue is driven by clear, practical wall, indirect tax, and legal software, as well as our businesses in Latin America.

Current revenue was driven by clear.

Tactical La India.

Indirect tax and legal software as.

As well as our businesses in Latin America.

Speaker 2: Finally, tax and accountants total and organic fourth pool of revenues grew 9% by 9% recurring organic revenue growth thanks to strong performance in our audit solutions and Latin America business.

And finally tax <unk> accounting as total and organic fourth quarter revenues grew 9% driven by 9% recurring organic revenue growth. Thanks to strong performance on our audit solutions and Latin America businesses.

Speaker 2: and transactions of GANIC revenue increased 10%.

And transactions organic revenue increased 10%.

Moving to Reuters news.

Speaker 2: Moving to ROTOR's news, both quarter performance is very strong with total and organic revenue growth of 12%.

Fourth quarter performance was very strong with total and organic revenue growth of 12%.

Speaker 2: order to achieve growth across all business lines, including the bounce back in the events business, as it continues to recover from the negative impact from COVID in 2020.

Water has achieved growth across all business lines, including the bounce back when the events business as it continues to recover from the negative impact from Covid and 2020.

And global print total and organic revenues declined 4%.

Speaker 2: The global print total and organic revenues decline 4% better than expected.

Better than expected.

Speaker 2: On a consolidated basis, fourth quarter total and organic revenues each increased 6%.

On a consolidated basis fourth quarter total and organic revenues each increased 6%.

Before turning to profitability, let's look closer at recurring and transaction revenue results for the fourth quarter.

Speaker 2: Starting on the left side, total company organic revenue for the fourth quarter of 2021 was up 6% compared to 2% in the prior year period, which was impacted by COVID.

Starting on the left side total company organic revenue for the fourth quarter 2021 was up 6%.

<unk> to 2% in the prior year period, which was impacted by Covid.

Fourth quarter 2021 performance.

Speaker 2: 4th quarter, 2021 performance with a big three was strong, with organic revenues of 7%, compared to 5% in the same period last year.

He was strong with organic revenues up 7% compared to 5% in the same period last year.

Speaker 2: which is partly driven by strong performance in the corporate segment, which grew 7% organically compared to 3% in Q4 2020.

This was partly driven by strong performance in the corporate segment, which grew 7% organically compared to 3% in Q4 2020.

Total company recurring organic revenues grew 6% in Q4.

Speaker 2: Total company recurring of that revenue is $6.724.

Speaker 2: 110 basis points about Q4 2020, the big three recurring organic revenues at 7%. About last year's 4.4 growth at 6%.

110 basis points above Q4, 2020 with Fig.

<unk> recurring organic revenue was up 7% above.

Above last year's fourth quarter growth of 6%.

Turning to the graph in the bottom right of the slide transaction revenues in Q4 were up 16% compared to the prior year period, and told that effected our implementation services and enrolled as events business.

Speaker 2: Trying to the graph in the bottom right of this slide, transaction revenues in Q4 were up 16% compared to the prior year period and COVID affected our implementation services and the world's against business.

We continue to remain encouraged our mountain in 2021, especially for recurring revenues.

Speaker 2: We continue to remain encouraged by the momentum in 2021, especially for recurring revenues. This gives us confidence in the director of the business and our ability to achieve our 2022 target.

It gives us confidence in the trajectory of the business and our ability to achieve our 2022 targets.

Speaker 2: Turning to our profitability performance in the fourth quarter, adjusted EBIDA for the big three-site list was 488 million, down 2% from the prior year period, driven by higher performance bonus expand.

Turning to our profitability performance in the fourth quarter adjusted EBITDA for the Big three segments was $488 million down.

Down 2% from the prior year period, driven by higher performance bonus expense.

Speaker 2: Fourth quarter cost also included a discretionary investment of 25 million related to the market initiatives.

Fourth quarter cost also included a discretionary investment of $25 million related to go to market initiatives.

Product development initiatives and data and analytics tools to support the customer experience to better position us for 2022.

I will remind you of the change program operating cost are recorded at the corporate level.

Speaker 2: I will remind you the change program operating costs are recorded at the corporate level.

Speaker 2: Moving to order's views, adjusted EBITDA with 15 million.

Moving to Reuters news adjusted EBITDA was $15 million.

Speaker 2: 9-9-9 more than the prior year period driven by a red-and-you-grow

$9 million more than the prior year period, driven by revenue growth.

Global Print's adjusted EBITDA was flat at $61 million with a margin of 35, 9%.

Speaker 2: So the parent suggested that I would flat at 61 million with a margin of 35.9%.

130 basis points higher than Q4 2020.

So in aggregate total company adjusted EBITDA for the quarter was $452 million.

Speaker 2: So an aggregate total company adjusted eBBA for the quarter was $452 million.

Speaker 2: A 14% decrease versus Q4 2020.

A 14% decrease versus Q4 2020.

Speaker 2: excluding costs related to the change program, adjusted EBITDA increased 1%.

Excluding costs related to the change program adjusted EBITDA increased 1%.

Fourth quarter adjusted EBITDA margin was 26, 4% and was 31, 1% on an underlying basis.

Speaker 2: Fourth quarter is adjusted even our margins 26.4% and a 31.1% on an underlying basis, excluding cost related to the change program.

Excluding cost related to the change program.

For the full year.

Total company adjusted EBITDA margin was 31%.

Excluding costs related to the change program.

Speaker 2: Four-year adjusted EBITDA margin is 33.9%.

Full year adjusted EBITDA margin was 33, 9%.

Speaker 2: Let me turn to our earnings per share and free cash flow performance.

Now, let me turn to our earnings per share and free cash flow performance.

Starting with earnings per share adjusted EPS was <unk> 43 per share versus 54 per share in the prior year period.

Speaker 2: Starting with earnings per share, adjusted EPS was 33 cents per share, closes 54 cents per share in the prior year period.

For the fourth quarter adjusted EPS was reduced by approximately four cents due to the additional $25 million investment in Q4.

Speaker 2: Or note fourth quarter adjusted EPS was reduced by approximately four cents due to the additional 25 million investments in Q4.

Let me now turn to our free cash flow performance for the full year of 2021.

Speaker 2: Let me now turn to our pre-tash mode performance for the 4 year 2021.

Speaker 2: Finishing the year on a strong pudding and exceeded our guidance thanks to strong cast collections into four.

Finished the year on a strong footing and exceeded our guidance thanks to strong cash collections in Q4.

Speaker 2: This performance reflects momentum of our businesses as we transition into 2022 and continue to execute on the change program initiatives.

This performance reflects the momentum of our businesses as we transition into 2022 and continue to execute on the change program initiatives.

Reported free cash flow was $1 3 billion.

Speaker 2: Reported pre-cast flow is 1.3 billion. 74 million lower.

$74 million lower than in 2020.

Speaker 2: Consisting with previous quarters, the slide removes the distorting factors impacting pre-tash flow performance.

Consistent with previous quarters. This slide removes the distorting factors impacting free cash flow performance.

Speaker 2: Working from the bottom of the slide upwards, the cash outflows from the discontinued operations component of our pre-cash flow, the 51 million more in the prior year.

Working from the bottom of the slide upwards, the cash outflows from the discontinued operations component of our free cash flow was $51 million more than the prior year.

Speaker 2: This was primarily due to payments to the UK tax authority. We laid it to our former defendant's business.

This was primarily due to payments to the U K tax authority related to our former definitive business.

For the full year, we made $166 million of change program payments as compare to refinance it related separation costs of $95 million in the prior year.

Speaker 2: For the four year, we made 166 million of change program payments as compared to recentative related separation calls of 95 million in the prior year.

Speaker 2: So if you adjust for these items, capital pre-cash flow and continuing operations, which just shot at 1.5 billion.

So if you adjust for these items comparable free cash flow from continuing operations was just shy of $1 5 billion.

Speaker 2: 189 million better in the prior year.

$189 million better than the prior year.

Speaker 2: This increase was primarily due to higher adjusted EBITDA and dividends from our interest and LSI.

This increase was primarily due to higher adjusted EBITDA and dividends from our interest in <unk>.

I will now provide an update on our change program progress.

Speaker 2: So now provide an update and a change program progress.

In the fourth quarter, we achieved $85 million of annual run rate operating expense savings.

Speaker 2: In the fourth quarter, we achieved 85 more unit annual run rate operating expense savings.

Speaker 2: This brings the cumulative annual run rate operating expense savings to 217 million for the change program which exceed our target of 200 million.

This brings the cumulative annual run rate operating expense savings of $217 million for the change program.

Which exceeded our target of $200 million.

Speaker 2: This provides more than one third of the way toward achieving our goal at 600 million of growth savings by 2023.

This puts us more than one third of the way toward achieving our goal of $600 million of gross savings by 2023.

Speaker 2: Every reminder, we anticipate reinvesting 200 million of the projected 600 million savings back into the business for net savings of the 100 million.

As a reminder, we anticipate reinvesting $200 million of the projected $600 million savings back into the business for a net savings of $400 million.

Speaker 2: Now, an update on our change for the cost for the first quarter in 4 year 2021.

Now an update on our change program costs for the fourth quarter and full year 2021.

Speaker 2: The tanker in the fourth quarter was 125 million.

Spend during the fourth quarter was $125 million.

Speaker 2: of 78 million of our backs, and 47 million of tapots.

Price of $78 million of Opex and $47 million of Capex.

Speaker 2: For the four year change program optics and CapEx can total 295 million.

For the full year change program, Opex, and Capex spend totaled $295 million.

Speaker 2: At the lower end of the range of 290 million to 320 million do a forecast last year.

At the lower end of the range of $290 million to $320 million, we had forecast last year.

Then as forecast the step up in 2022 related to cloud migration.

Speaker 2: Bandage forecast to step up in 2022, related to cloud migration, streamlining internal systems, and product engineering.

<unk> mining internal systems and product engineering.

Speaker 2: We are still expecting to incur approximately 600 million over the course of the program, and there is no change in the anticipated split at about 60% of X and 40% of X.

We are still expecting to incur approximately $600 million over the course of the program and there is no change in the anticipated sport at about 60% Opex and 40% Capex.

Speaker 2: And now to buy an update on our capital structure at your end.

I will now provide an update on our capital structure at year end.

Speaker 2: As you can see, our capital structure in the flexibility position remains strong as we exit it 2021.

As you can see our capital structure and liquidity position remains strong as we exited 2021.

Speaker 2: who generated 1.3 bill in a pre-cash flow last year.

We generated $1 3 billion of free cash flow last year.

Speaker 2: We have point eight billion cash on hand at December 31st.

We had $8 billion of cash on hand at December 31.

We have an undrawn $1 8 billion revolving credit facility and we'll also have a $1 8 billion commercial paper program.

Speaker 2: We have an undrone 1.8 billion resulting credit facility, and we also have a 1.8 billion commercial paper program.

Speaker 2: From the liquidity and capital structure standpoint, we enter 2022 in a very strong position.

From a liquidity and capital structure standpoint, we enter 2022 and a very strong position.

Speaker 2: And we would like to consider that capital to work to further accelerate our growth.

And we would like to put that capital to work to further accelerate our growth.

We continue to evaluate potential acquisitions within our core markets and have the ability and desire to move quickly if an opportunity presents itself this year.

Speaker 2: We continue to evaluate the potential acquisitions within our core markets and have the ability and desire to move quickly with an opportunity presents itself this year.

One final point.

Speaker 2: We received notices from the UK tax authorities requiring us to pay about 80 million in March related to an ongoing tax matter.

We received notices from the UK tax authorities, requiring us to pay about $80 million in March related to an ongoing tax matter.

Speaker 2: All we believe we will prevail on these issues and be refunded substantially all the payments, including those made last year. We are required to pay the amount of the front while contesting them.

While we believe we will prevail on these issues and be refunded substantially all the payments, including those made last year, we are required to pay the amount upfront while contesting them.

Speaker 2: Any pain that would not reflect our view of the merits of the case, as we believe our position, the supported, other way of law.

Any payment would not reflect our view of the merits of the case as we believe our position is supported by the way the law.

Regarding our investment in the London stock Exchange group the pretax value of our 72 4 million shares is currently 7 billion or an estimated $14 per share and <unk> stock price.

Speaker 2: Regarding our investment in the London Stock Exchange Group, the pre-tax value of our 72.4 million shares is currently $7 billion for an estimated $13 per share in TR stock price.

Speaker 2: In March 2021, we sold 10.1 million shares to pay taxes related to the transaction.

In March 2021, we sold $10 1 million shares to pay taxes related to the transaction.

We expect to receive dividends from outside of more than $75 million in 2022 based on <unk> current annual dividend payout.

Speaker 2: We expect to receive dividends from LSEG of more than 75 million in 2022 based on LSEG's current annual dividend payout.

Speaker 2: I will remind you, dividend from the investment a part of our pre-tash flow.

I will remind you dividends from the investments are part of our free cash flow.

Speaker 2: We remain subject to the lockup for our LTCH shares until January 30th, 2023. At which time we can sell approximately one-third of the shares.

We remain subject to a lockup for altra shares until January 32023 at which time, we can sell approximately one third of the shares.

Speaker 2: So the main two conscious to be sold in January 2024 and 2025.

The remaining two tranches can be sold in January 2024, and 2025.

We see our equity interest in all Sag as a store of value, which we expect to continue to monetize overtime with.

Speaker 2: We do have equity interest in L-SAC as a store value which we expect you to continue to monetize over time which provides us with a significant level of financial flexibility related to the use of proceeds.

Which provides us with a significant level of financial flexibility related to the use of proceeds.

Finally, today, we announced a 10% annualized dividend increase.

Speaker 2: The largest percentage increase since 2008, taking our annual dividend to $1.78 per share, up 16 cents per share, through $1.62.

The largest percentage increase since 2008.

Taking our annual dividend to $1 78 per share up <unk> 16 per share from $1 62.

This also marks the 29th consecutive year of annual dividend increases for the company.

Speaker 2: It's also marks the 29th consecutive year of annual dividend increases for the company.

Speaker 2: The increase would be effective with our 2-1 dividend payable next month.

The increase will be effective with our Q1 dividend payable next month.

These annual dividend increases speak to the solidity of our business and consistent and growing free cash flow generation.

Speaker 2: These annual dividend increases speak to the solidity of our business in consistent and growing pre-task flow generation.

I will now turn to our outlook for 2022 and 2023.

Speaker 2: Now turn to our Outlook for 2022 and 2023.

Speaker 2: As Steve mentioned, we are increasing our guidance for both years since we expect to continue the positive trajectory for all key metrics.

As Steve mentioned, we are increasing our guidance for both years since we expect to continue the positive trajectory for all key metrics.

Organic revenue is expected to continue its upward trajectory as we work to become a consistent and sustainable mid single digit grower.

Speaker 2: The organic revenue is expected to continue its public directory as we work to become a consistent and sustainable distance of the budget forward.

Speaker 2: Leap forecast organic revenue bill that about 5% in 2022, and 5.5% to 6% in 2023.

We forecast organic revenue growth of about 5% in 2022, and five 5% to 6% in 2023.

Key drivers include continued investment in our seven strategic priorities.

Speaker 2: Geed drivers include continued investment in our seven strategic priorities and delivering on our digital and self-effectiveness work streams in the change program.

And delivering on our digital and sales effectiveness work streams and the change program.

We forecast the big three organic revenues to grow between 6% and six 5% in 2022 and between six 5% and 7% in 2023.

Speaker 2: We forecast the big three organic revenues to grow between 6% and 6.5% in 2022, and between 6.5% and 7% in 2023.

Speaker 2: I also believe our legal business can grow 5% to 7% over the cycle, versus the 5% to 6% who mentioned at investor day last year, that continued margin expansion.

We also believe our legal business can grow 5% to 7% over the cycle versus the 5%, 6%. We mentioned at Investor Day last year with continued margin expansion.

Speaker 2: Starting to adjust it even at margin, pre-tash flow. Our guidance in 2022 reflects the delutive impact of the change program investments.

Turning to adjusted EBITDA margin free cash flow guidance in 2022 reflects the dilutive impact of the change program investments.

Speaker 2: Re-4CAT suggested even a margin in 2022 will increase to about 35% with an underlying margin of over 37%. But in this on a path to achieve our 2023 margin target of 39% to 30%.

We forecast adjusted EBITDA margin in 2022 will increase to about 35%.

An underlying margin of over 37%, putting us on a path to achieve our 2023 margin target of 39% to 40%.

Speaker 2: ReCache flow is expected to be approximately 1.3 billion in 2022 and includes change for them STEM at over 300 million.

Free cash flow is expected to be approximately $1 3 billion in 2022 and includes change program stem of over $300 million.

Speaker 2: Reached as follows, expected to increase to between 1.9 billion and 2 billion in 2023, driven by higher revenue growth and savings and efficient fees from the change program.

Free cash flow is expected to increase to between $1 9 billion and $2 billion in 2023, driven by higher revenue growth and savings and efficiencies from the change program.

Let me conclude with our updated and detailed guidance for 2022 and 2023.

Speaker 2: Let me conclude with our updated and detailed guidance for 2022 and 2023.

Speaker 2: This slide includes the guidance that was provided in February 2021, enabling you to compare the changes and raised guidance.

This slide includes the guidance we provided in February 2021, enabling you to compare the changes and raised guidance.

I'll also note, we expect our first quarter revenue growth rate and adjusted EBITDA margin to be comparable to our full year 2022 guidance targets.

Speaker 2: I'll also note that we expect our first quarter, rather than we both rate, an adjusted EBITDA margin to be comparable to our full year 2022 guidance target.

Speaker 2: Now, to Gammett's metrics on the slide or self-explanatory, that I would like to address the outward bar effective for both tax rate and our cash tax rate for 2022 and 2023 based on current tax law.

Now to guidance metrics on the slide are self explanatory, but I would like to address the outlook for our effective book tax rate and our cash tax rate for 2022 and 2023 based on current tax law.

Speaker 2: In 2021, our effective of book tax rate was 14%, and included a 200 basis point benefit from the reversal of the jurors for acquired tax year.

In 2021, our effective book tax rate was 14% and included a 200 basis point benefit from the reversal of reserves for prior tax year.

Speaker 2: This benefit will not be occurred in 2022.

This benefit will not reoccur in 2022.

We also forecast from 2022 minimum taxes, this year, which bumps the expected ETR ought to between 19% and 21%.

Speaker 2: We also forecast in 2022 minimum taxes this year, which prompts the expected ETR off to between 19% and 21%.

Speaker 2: Looking to 2023, we expect our ETR to decline to the upper teams. And as a rule of thumb, our cash tax rate is forecast to be approximately 5% below our book or effective tax rate.

Looking to 2023, we expect our ETR to decline to the upper teens and as a rule of thumb, our cash tax rate is forecast to be approximately 5% below our book our effective tax rate.

Speaker 2: This is fully reflected in our 2023 free cash flow guidance of 1.9 billion to 2 billion.

This is fully reflected in our 2023 free cash flow guidance of $1 9 billion to $2 billion.

This include.

Our confidence in achieving our 2022 and 2023 guidance is only increase from one year ago.

Speaker 2: Our confidence in achieving our 2022 and 2023 guidance has only increased from one year ago.

Speaker 2: We continue to believe that Tina Chief faster revenue growth.

We continue to believe we can achieve faster revenue growth.

Speaker 2: higher profitability, lower capital intensity, and significantly higher pre-test flow as we benefit from transitioning to a content and able technology company.

Higher profitability.

Lower capital intensity and significantly higher free cash flow as we benefit from transitioning to a content enabled technology company.

Speaker 2: Let me ask Steve to wrap up before we turn to your question.

Well, let me ask Steve to wrap up before we turn to your questions.

Thank you Mike I will conclude by saying, we're very pleased that 2021 performance, but we still have much more work ahead.

Speaker 3: Thank you Mike. I will conclude by saying that we're very pleased that at 2021 performance, that we still have much more work ahead.

Speaker 3: Our confidence is strengthened by 2021 organic revenue, and we have good momentum entering 2022.

Our confidence is strengthened by 2021 organic revenue and we have good momentum entering 2022.

Speaker 3: The change program is progressing well and they're confident in achieving our $600 million savings target and our $100 million incremental revenue target.

Change program is progressing well and are confident in achieving our $600 million savings target and a $100 million incremental revenue target.

Speaker 3: We have numerous leaders to pull that should help us accelerate our growth.

We have numerous levers to pull and that should help us accelerate our growth and we are building a strong leadership team with new talent that supports different perspectives.

Speaker 3: and we're building a strong leadership team with new talent that's both different perspectives.

Complemented the skills of the existing leadership and is energized teams.

Speaker 3: complemented the skills of existing leadership and has energized our teams.

And lastly.

Speaker 3: Elevate our ambition. We take up the year with confidence by announcing our new company purpose. Cheers to inform the way forward. This unites our commercial

To elevate our ambition, we kicked off the year with confidence by announcing a new company purpose.

Choose to inform the way forward.

This unites our commercial strengths.

The critical role we play in Society.

Speaker 3: Customers and employees have responded very positively to this.

Estimates and employees have responded very positively to this reader.

Speaker 3: Redoubled commitment to serve professionals, advance critical institutions, and to build trust through our products and our actions.

Redoubled commitment to serve professionals advanced critical institutions and to build trust through our products actions.

Let me now turn it back over to Frank.

Speaker 2: Thank you very much Steve and Mike and that concludes our prepare the marks. I'd now like to open the call for questions operator. So if we could have the first question please.

Thank you very much Steve and Mike and that concludes our prepared remarks now I'd like to open the call for questions. Operator, So if we could have the first question. Please.

Thank you. So your first question is from the line of.

Speaker 1: So your first question is from the line of Drew Mcrennell's of RBC counter markets. Please go ahead.

Drew mcreynolds of RBC capital markets. Please go ahead.

Speaker 4: Yeah, thanks very much and good morning and Frank, I want to wish you all the best. You've been just great to work with over the years, so all the best and of course welcome Gary as well.

Yeah. Thanks, Thanks, very much and good morning, Frank want to wish you all the best you have been great to work with over the years. So all the best and of course, welcome Gary as well.

Speaker 4: Just with respect to the 2022 and 2023 outlook, that may be a question for you, Steve.

Just with respect to.

2022, and 2023 outlook, maybe a question for you Steve.

Speaker 4: You know, obviously coming off a upwardly revised 2021, so good to see the upwardly revised on the upwardly revised. Just wondering, you know, from your perspective, if you go back a year from now, you provided 2021 guidance and the upwardly revised through the year, is it kind of a similar setup here when you look at 2022, because it certainly sounds like the net sales.

Obviously coming off a upwardly revised 2021, so so good to see the upwardly revised on the upwardly revised just wondering.

From your perspective, if you go back a year from now you provided 2021 guidance and the upwardly revised through the year is it kind of a similar setup here. When you look at 2022, because it certainly sounds like the net sales environment is still quite strong and of course, you have very good visibility on how that flows through and then just a SEC.

Speaker 4: environment is still quite strong and of course you have very good visibility on how that flows through.

Speaker 4: And then just a second quick question for you. I guess Mike just on the buyback, just your latest thinking there, good to see the buyback in Q4. Just wondering what your thoughts are for 2022. Thank you.

Quick question for you I guess, Mike just on the buyback just your latest thinking there good to see the buyback in Q4, just wondering what your thoughts are for 2022. Thank you.

Thanks.

Speaker 3: Thanks, thanks Drew. With you right, just how performance is strong, it's building the maintenance, getting its confidence. And you're also correct in sort of going to the visibility that that provides us into our business. So, you know, as I said in my remarks, we're entering 2022 with real confidence.

Thanks drew.

Look you're right.

Sales performance.

It is strong it's building momentum and it's giving us confidence.

And Youre also correct in sort of pointing to the visibility that that provides us.

Each of our business so.

As I said in my remarks.

We're entering 2022 with real confidence.

We've also got a lot of work to do so hot.

Halfway through the change program.

We are on track for all work streams ahead.

Two extremes, but we're yet to really see it translate to the customer experience.

Speaker 3: And of course, we're still navigating virtual and hybrid working environments and entering the third year of the pandemic. So...

Of course, we're still navigating.

Virtual and hybrid working environments.

Entering the third year of the pandemic.

Speaker 3: You know, we believe that the change program is going to engend up Thompson Waters with the capabilities required to provide a fundamentally improved custom experience. And that will feel outgrown. And we're very excited about that future. We're also contending with the number of the macro challenges. And as I said,

We believe that the change program is going to engender Thomson Reuters with the capabilities required to provide a fundamentally improved customer experience that we have.

Fuel our growth.

We're very excited about the future, but we're also contending with with with a number of the <unk>.

Macro challenges.

And as I said.

I'll hand over to Mark for the buyback question Julia in regards to the buyback I'll start we're certainly in a highly advantaged position because of the strength of our balance sheet. As you mentioned, we completed the $1 2 billion buyback in Q4 of 2021, our focus currently today. It certainly completing the change program in 2022.

Speaker 2: I'd like to move to the byback question. During reverse to the byback, I'll start with we're certainly in a highly abandoned position because of the strength of our balance sheet as you mentioned, we completed the 1.2 billion byback in Q4 2021. Our focus currently today, it certainly.

Speaker 3: including the change program in 2022, like continuing to accelerate our organic growth on a sustained basis.

Continuing to accelerate our organic growth on a sustained basis and we'd like to use our capital capacity to further accelerate our supplement our organic growth. So as we look at 2022, we're looking to put the capital to work in regards to acquisitions to supplement our growth buybacks are currently not contemplated.

Speaker 3: And we'd like to use our capital capacity to further accelerate or supplement our organic growth.

Speaker 2: So if you look at 2022, we're looking to put the capital to work in regards to acquisitions. This supplement I wrote bybacks are currently not contemplated at this point. Certainly, we have a lot of flexibility and options, but we're running both the Sun on accelerating our growth of the acquisitions.

At this point certainly have a lot of flexibility and options, but we'll remain focused on accelerating our growth via acquisitions.

Understood. Thank you very much.

Sure.

Yeah.

Thank you.

Speaker 1: Thank you, and your next question is from the line of Finns Valentini of TD Securities. Please go ahead.

Your next question is from the line of Vince Valentini.

TD Securities. Please go ahead.

Speaker 5: Thanks so much, Mike and Gratts to Frank as well, and all the best to you. The stock cup.

Thanks, very much and my congrats to Frank as well.

And all the best to you.

The strong economy.

Speaker 5: Yeah, you're welcome. It's stocked out like 4% to 5% today, which may surprise you. It surprises me a little bit, given the strength of the revenue and the increased guidance. I think there may be a bit of concern about these extra costs in the fourth quarter. So Mike, I'm hoping you can...

Youre welcome stock sounds like 4% to 5% today, which may surprise, you that surprises me a little bit given the strength of the revenue and the increased guidance I think there may be a bit of concern about these extra costs in the fourth quarter. So Mike I'm, hoping you can flesh that out a bit more detail both the extra compensation cost should talk about is this some sort of one off.

Speaker 5: I flushed that in a bit more detail. Both the extra compensation cost you talk about, is this some sort of one off, or is this a new run rate? And then the 25 million, I'm not sure I fully get it. It's not part of the change program, but it's related to go forward improvements in sort of sales and service capabilities. And technically was that in the corporate line, or was that spread across the other three or five divisions? Thanks.

Or is this a new a new run rate and then the $25 million I am not sure I fully get it. It's it's not part of the change program, but it's related to go forward improvements and sort of sales and service capabilities and technically was that in the corporate line or was that spread across to the.

The other three or five divisions.

Yes.

Speaker 3: Yeah, thanks. Multiple good points there. Let me just break those down one by one. And if I miss one, keeping on as to your events as we go through. Let me start with the performance bonus expense through. And that relates to our 2021 annual incentive plan upon which there are three lovers.

Multiple points. So let me just break those down one by one in if I Miss one keep me honest here events as we go through let me start with the performance bonus expense.

And that relates to our 2021 annual incentive plan upon which there are three levers.

Speaker 2: equally weighted organic revenue, posted Christmas, and cash a lie, which is either by the capital expenditures.

Equity weighted organic revenue book of business and cash NOI, which is EBITDA less capital expenditures. If you go back a year ago, our organic growth rate guidance was 3% to 4% we ended at five two.

Speaker 2: If you go back a year ago, our organic growth rate guidance was three to four percent. We ended at five, then two.

Speaker 2: Our free cash flow, this is a key level for our long-term incentive. That target was $1 billion to $1.1. We ended up at $1.3. So if you look at our performance bonus expense for four year 2021, that commuted our four year margin by about a hundred basis point. So that's truly a result. The answer is a result of our performance.

Our free cash flow, which is a key lever for our long term incentive that target is $1 billion to $1. One we ended up at one three so if you look at our performance bonus expense for full year 2021 that the mood at our full year margin by about 100 basis points. So that's truly a result.

And so as a result of our performance in 2021, whereby we exceeded our management plan, which governs our annual incentive plan and also governs our long term incentive plan. So that's truly based on the results that we incurred in 2021.

Speaker 2: In 2021, we have by re-excited our management plan, which governs our annual incentive plan, and also governs our long-term incentive plan. So that's truly based on the results that we incurred in 2021.

Speaker 3: Second pointed in regards to the change program, we still remain committed to investing 600 million in aggregate for 2021 and 2022. We spent less than 2021, and originally both asked that favorability were shipped to 2022, to ensure that we do as much as we can, to continue to improve the underlying that customer experience which should accelerate our venequal.

Second pointed in regards to the change program, we still remain committed to investing $600 million in aggregate for 2021 and 2022, we spent less in 2021 and originally forecasted that favorability will shift to 2022 to ensure that we do as much as we can.

We continue to improve the underlying customer experience, which should accelerate our organic growth.

Speaker 2: Thirdly, in regards to the $25 million, that was truly opportunistic on our part. Ben, we've been partnership with Brian Peckerelli and our segment leaders, and by the way, this $25 million is within our respective segments and functions, it's not part of the book.

Thirdly in regards to the $25 million that was truly opportunistic on our part.

<unk> with Brian Peck of rally and our segment leaders and by the way this $25 million is within our reach.

Respective segments and functions is not part of corporate.

Speaker 2: Rebeoted as an opportunity to start 2022 strong, we didn't have to do it.

Viewed it as an opportunity to start 2022 strong we didn't have to do it but it enabled us to invest more in our sales resources and marketing resources and also with David <unk>, Our Chief product Officer, Some ultra who leads engineering and also with Kirstie abroad, one to Chris.

Speaker 2: but it enabled us to invest more in our sales resources, our marketing resources.

Speaker 3: And also the data blind of chief body officer shown the whole tour of the leads engineering. And also the thirsty glove under Chris on the data in analytics. So the additional investment in Q4 was truly discretionary. It was very optimistic in our standpoint.

Data and analytics, so the additional investment in Q4, which truly discretionary was very optimistic in our standpoint to help us continue our momentum and progress in 2022.

Speaker 2: to help us continue our momentum and progress in 2022.

Speaker 2: I, in my perspective, dance, am not concerned about that. I think there's too much of a pivot.

From my perspective, that's not concerned about that I think there is too much of a pivot.

Speaker 2: We have a clear line of psych to achieving our 2022, even a margin of approximately 35%, and also that equal confidence in achieving our 2023, even a margin of 39% to 40. It certainly has been held a lot of focus on us accelerating our organic growth. We did that in Q4. We had an opportunity to do investments to sustain that growth and not apologetic.

We have a clear line of sight to achieving our 2022.

EBITDA margin of approximately 35% and also we have equal confidence in achieving our 2023 EBITDA margin of 39% to 40.

Certainly it's been a hell of a lot of focus on us accelerating our organic growth. We did that in Q4, we had an opportunity to do investments to sustain that growth and not apologetic.

Speaker 5: Thanks for that. Can I just go for the compensation impact of 100 basis points? Is that a bit of a timing issue because the targets weren't fully met in 2020 for, you know, reasons that may have been to be on management control, but you're sort of snapping back to a full year of all those performance bonuses being paid. So if I look forward to 22, even if you meet all your targets, there won't be another 100 basis point drag. It'll be more of a plateau.

Thanks for that can I, just clarify on the compensation impact of 100 basis points is that a bit of a timing issue because it targets werent fully met in 2020 for.

The reasons that may even be on management's control, but you're sort of snapping back to a full year of of all of those performance bonuses being paid so if I look forward to 'twenty two even if you meet all your targets there won't be another 100 basis point drag it will be more of a plateau.

That's correct Vince 2021 is more of a plateau, there and we will get back more to that traditional <unk> and.

Speaker 2: That's correct. Going to 2021's more of the plateau there, and we will get back more to that traditional in 2022. Excellent. Thank you.

In 2022.

Excellent. Thank you.

Make sure event that I addressed all of your points.

I think you did.

Okay, Okay great.

Thank you.

Speaker 1: Thank you. And your next question is from the line of Tony Kaplan of Morgan Stanley . Please go ahead.

Your next question is from the line of Toni Kaplan.

Stanley. Please go ahead.

Hey, This is Greg Harrison on for Tony Thanks for taking my question.

Speaker 6: Just wanted to get your thoughts on the legal market going into 2022. Demand seems strong, but there's some wage inflation at law firms. How are you saying that puts in take there? I guess on one side, you're helping them manage costs. I think you called out. Elite is doing well in the quarter, but maybe there's some pressure. Just wanted to get your thoughts.

Just wanted to get your thoughts on the legal market going into 2002 demand seems strong, but some wage inflation at law firms.

How are you seeing the puts and takes there I guess on one side to help them manage cost I think you called out a lead is doing well in the quarter, but maybe there is some pressure just wanted to get your thoughts there. Thanks.

Speaker 3: There is indeed pressure. We're seeing across our cut illegal customer base and the law firms, whether that the largest global firms or material are smaller, giving sole practitioners that inflation, we pressure across.

There is indeed pressure.

We're seeing across.

Across our customer legal customer base and the law firms.

The largest global firms or materially smaller giving sole practitioners.

As inflationary pressure across.

Speaker 7: this. five.

But.

For us.

<unk>.

Speaker 3: is a catalyst for providing additional value and to our customers and can feature growth and explain why. Um, that's...

As a catalyst for providing.

Additional value to our customers.

Future growth, let me explain why.

Hi al.

<unk>.

Speaker 3: improve the efficiency and effectiveness of existing legal staff.

Improve the efficiency and effectiveness of existing legal stuff.

And I think it's fair to say between the big biggest pressure that the lithium space deeds.

Speaker 3: And I think it's better to say the finger biggest, biggest pressure that the law firm's face is, is that wage inflation and the second biggest is burnout of the lawyers and our tools in

Is that wage inflation in the second biggest has been out of lawyers.

And our tools and enable them to.

To get more productivity.

Speaker 3: to get more productivity and more output from existing staff and enable the burnout to be managed and there just aren't many ways to do that. And that's, we're starting to see that increased demand come through for our tools, particularly tools like high queue and practical law and particularly the integrations that we pointed to last quarter between high queue tracker only 3.0.

And more output from existing staff and enabled a proven out to be managed and there just aren't many ways to do that.

We're starting to see that increase demand come through current tools, particularly.

Particularly tools like <unk>, and practical law, and particularly the integrations that you pointed to last quarter between high Q track only three so a long way of saying.

Speaker 3: So a long way to saying this is a positive trend for us.

This is a positive trend for us.

Speaker 3: And if we continue to innovate around our product sets, provide the orphans, we'll see significant...

We continue to innovate.

Around the product ships provide for law firms.

You'll see significant advantage from it.

That's great color. Thank you and then just a quick follow up and just stick with legal.

Speaker 6: That's great color, thank you. And then just a quick fall off and just stick with legal. To edge 2.0, if you can give any color on sort of what to go to market strategies, kind of B, is it going to be, is it going to replace one, is it going to be modular. And then also 1.0 has been pretty consistent, 100 basis points uplift to growth. I mean, you have sort of any expectations going forward. If you could just help us kind of walk through what the edge momentum and sort of life going forward will be.

So at two point, if you can give any color on sort of what the go to market strategy is going to be is it going to be so is it going to replace one is it going to be modular.

And then also one point that has been pretty consistent of 100 basis points uplift to growth I mean, do you have sort of any expectations going forward. If you could just help us kind of walk through what the <unk> momentum and sort of life going forward will be.

Speaker 3: Yeah, I just do a special call out to David Wong, Andy Martin's, Mike D'Anguette, who have been leading edge, and now edge 2.0. As we go into 2022, we expect the penetration for the ACV. As we mentioned, 65% at the end of 2021. That increases to 75% based on our forecast as we go through 2022.

Yes, I'll just do a special callout to David Blaine, Andy Martin's, Mike <unk>, who had been leading edge now etch two point.

As we go into 2022, we expect the penetration for the ACD as we mentioned, 65% at the end of 'twenty, one that increases to 75% based on our forecast as we go through 2022.

Speaker 2: We plan to launch edge 2.0 in the second half of this year.

We plan to launch <unk> in the second half of this year. So we believe the 100 basis points organic growth lift that we've now been incurring for several quarters and years that continues throughout 'twenty, two and 'twenty three we have no concern with that I hope you can respect we're a little.

Speaker 2: So we believe the 100 basis points of organic growth that we've now been incurring for several quarters in years.

Speaker 2: That continues throughout 22 and 23.

Speaker 2: We had no concern with that. I was going to respect we are a little early to expand too much from the confedit standpoint on to that over this time.

Early to extend too much from a competitive standpoint to that at this time I would anticipate that the second half of the year, Paul Fischer President of legal professionals.

Speaker 2: I would anticipate at the second half of the year, Paul Kusher, our president.

Speaker 2: and leave the professionals will divide a host of external event.

I'll provide a host of external.

Speaker 2: to expand more on to that. But I encountered there tomorrow on the city to spend some time with the group that short closings come in there with the rear very optimistic on our ability to sustain legal organic growth. As I mentioned in the prepared remark.

Apps to expand more on <unk>, but I am kind of bear Tomorrow August <unk> to spend some time with the group.

Short closing comment there would be we are very optimistic on our ability to sustain legals organic growth.

I mentioned in the prepared remarks back in a year ago. We set in 2023, we estimated 5% to 6%. We have now increased that range to 5% to 7% and Thats based on close partnership with Paul Fischer.

Speaker 2: Back in a year ago, we said in 2023, we estimated 5 to 6 percent. We have now increased that range to 5 to 7 percent. And that's based on close partnership with Paul Fisher, and the CEO of Team Align, the State Board, who runs the government business.

This legal team aligned with stiefel.

Once the government business.

Great. Thanks, so much and all the best to Frank.

Yes.

Thank you.

Speaker 1: Thank you. Your next question comes from Andrew Stangerman, JP Morgan. Please go ahead.

Your next question comes from Andrew Steinman J P. Morgan. Please go ahead.

Speaker 8: Hi, good morning. This is Stephanie sitting in front Andrew. I'm just kind of question on the margin trajectory, I guess, from

Hi, Good morning, this is Seth <unk> on for Andrew.

Follow up question on.

Margins for January I guess from.

Speaker 8: 31% in 2021 to 35% in 2022. It looks like you'll already be at kind of that 35% level in the first quarter. And I know you talked about a lot of different drivers, but kind of want to get a little bit more color on what that step up.

1% in 2021, 5% in 2020 here it looks like.

Yeah kind of that 35% level in the first quarter.

And I know you've talked about a lot of different drivers, but I just wanted to get a little bit more color on what that step up.

Speaker 8: What's driving that step up? Because as we look to 2023, it looks like the margin steps but from 22 to 23 is really just keeping out the change cost. You know, the 470 basis point drag in the fourth quarter, you're still investing in 22. So, 23, we don't have those costs anymore. So, kind of that step up from 22 to 23 is

Whats driving that step up because as we look to 2023 and it looks like the margin stack from 'twenty two 'twenty three months airlines are taking out the teens comp.

170 basis point drag in the fourth quarter.

We're still investing in 'twenty two 'twenty three we don't have to constantly so kind of that step up from 22 to $23.

Speaker 2: I feel like more visible. So if you can just kind of comment on kind of going to 35% the next year in the first quarter. Thank you. Yeah, second, let me approach it from two after a sparse from a report. As you mentioned, 2021, if I put this on reported, it's either that with the change program. It goes 31, 35, and then 39 to 30. On an underlying basis in 2021, it was 33.9.

I feel like more of a vessel or also if you can just kind of comment on kind of going towards 75% of them. Some accident in the first quarter.

Yes.

We approach it from two factors first from a report as you mentioned 2021 focus on reported EBITDA, what's the change program. It goes 31, 35, and 39% to 40% on an underlying basis in 2021 with $33 nine.

Speaker 2: approximately 375 up to the 3930. If you look at the increase in 2022, a key component, Stephanie, is to continue to coloration and achieving the annual run rate operating expense savings from the change program.

<unk> 37, five up to the 39 40, if you.

You look at the increase in 2022 and key component.

Stephanie is the continued acceleration in achieving the annual run rate operating expense savings from the change program.

Speaker 2: We end the 20 21 at 217 million, real approach, 500 million, by the end of 2022.

We ended 2021 at $217 million, we will approach $500 million.

By the end of 2022, so we will get margin expansion in 2022.

Speaker 2: So we would get margin expansion in 2022 as we ramp up the operating savings read by Christy Roth, Andrew Pierce, and the change program. Second component that I've mentioned there step in the is the operating leverage. Given that about 65% of our costs are fixed in nature.

We ramp up the operating savings led by Chris Steve Roth, Andrew Paris, and the change program.

Second component that I would mention there Stephanie is the operating leverage given that about 65% of our cost are fixed in nature as our revenue continues to excel sustain and accelerate.

Speaker 3: as our revenue continues to sustain and accelerate.

Speaker 2: Given that operating leverage, you'll get additional flow through there. So those are two of the key drivers, Stephanie for both 22 and 23.

That operating leverage will get additional flow through there. So those are two of the key drivers Stephanie for both 'twenty two and 'twenty three part of the question down from 23 70, as a reminder of the $600 million of operating expense savings, which we can't we're confident we will achieve we will begin.

Speaker 2: Part of the question today on 23, Stephanie, as a reminder of the 600 million of operating expense savings, which we constantly achieve, we would again to reinvest a portion of those in 2023 to help us accelerate growth beyond 23.

And to reinvest a portion of those in 2023 to help us accelerate growth beyond 'twenty three.

Okay, Great that's super helpful and I can just ask.

Bob a question so you guys talked about.

Additional interest on the MLR.

Legal contract management solution is an area that thomson might be interested in pursuing.

Speaker 3: Stephanie, we look at a number of areas that are core to be three segments.

Stephanie we look at a number of areas.

That are core to the big three segments.

And attitude to the change program.

<unk> playbook.

Playbook of becoming.

The leading content driven technology company so.

Certainly the tools and solutions that improve the.

Speaker 3: the workflow within our legal customers, whether that's a law firm or a general counsel or in that solution space. And that would certainly include the contract life cycle management amongst a number of other things, yes.

<unk>.

The workflow within our legal customers, whether that's a law firm or general counsel or in that solution space and that would certainly include that.

The contract lifecycle management amongst amongst a number of other things.

Okay, great. Thank you very much.

Thank you.

Speaker 1: Thank you. Your next question is from the line of Paul Steep. Scotiabank, please go ahead.

Question is from the line of Paul steep Scotia Bank. Please go ahead.

Great Good morning, and congratulations Frank welcome Gary.

Speaker 6: Great, good morning and congratulations, Frank, welcome, Gary. Steve, could you just give maybe a higher level view of M&A, there's more discussion around it in terms of the approach. Should we think of it more as to Pandera, Netmaster, like, or is this larger acquisition you're thinking of more transformative or we thinking more incremental technologies to drive growth? And then I've got one quick follow.

Steve could you just give us maybe a higher level view of M&A. There is more discussion around it in terms of the approach should we think of it more.

As to Honduras, net Master Lake or is this larger.

Acquisitions, Youre thinking of more transformative or are we thinking more incremental technologies to drive growth and then I've got one quick follow up.

Speaker 3: Thank you, Paul. I would say it's, it'll be very focused on the big three and it'll be more additive or incremental in nature than transformative.

Thanks, Paul.

I'd say it's.

It will be very focused on the big three and it will be more additive or incremental in nature than transformative.

Speaker 3: You know, but by that drop, we, Mike, Mike and I took these roles at the start of 2020.

But by what backdrop, we Mike Mike and I took these roles.

At 2020.

Speaker 3: We spent 2020 studying the business and with our colleagues, new and preexisting designing a change program. Last year was all about the change program execution. And here we are, how far through, the building conference in that program and in our abilities as a team.

We spent 2020 studying the business and with our colleagues.

New and pre existing design tank program last year was all about the change program execution and here we are halfway through.

We're building confidence in that program and abilities as a team.

Speaker 3: And we're very focused this year on finishing the change program and we will not get distracted because that's the key to a better customer experience and that's the key to accelerate away, again, across.

We are very focused this year on finishing the change program when we grow market distracted because thats the thats the key to a better customer experience and that's the key to accelerating organic growth, having said that with a couple of things.

Speaker 3: There's a couple things in our fight, our confidence is building. Our underlying capabilities are improving and our capital position can...

Competence is building our underlying capabilities are improving and our capital position continues to strengthen and perhaps perhaps even later to see valuations may be a little bit more reasonable who knows.

Speaker 3: And perhaps even later this year's valuation to maybe a little bit more reasonable. Who knows, that's very, that life parts hard to predict and certainly not going to be common. But I would say, we don't need transformation.

At last months hard to predict certainly not going to bank on that.

But I would say, we don't need transformational acquisitions.

Speaker 3: what we're looking for is these exact solutions. We're a weird, advanced owner that are added into the change program or accelerance to the change program and help us provide a bit of custom experience to our existing customers and provide access to new customers.

What we're looking for in <unk>.

Acquisitions, where we earn an advantaged owner.

Due to the change program are accelerants to the change program and help help us provide a better customer experience to our existing customers and provide X system to new customers next to laser like focus and we'll continue that focus through this year.

Speaker 9: And then this follow-up would just be, can you keep in mind this, we've been on the size of the GRC business today, and maybe the opportunity set that it's looking at in terms of growth potential relative to the rest of the group, obviously, reflecting a top of small.

Great. Thanks, and then the follow up would just be could you remind us a bit on the size of the Trc business today, and maybe the opportunity set that it's looking at.

In terms of growth potential relative to the rest of the group, obviously, reflecting its off a smaller base.

Yes.

Speaker 3: Yeah, I'll see how it's been business is around about 500 million. It grows circa a couple of digits under very today very government focused on the people who leadership.

<unk> business.

Around about 500 million.

Gross circa double digits.

It's very today very government focused on stable.

Leadership of Steve do Greg payment.

Speaker 3: They do a great thing and this is a reminder, a new great job, just to remind them there's the clear aspect, which is a unique, a unique, recording compliance that is set.

A reminder.

We do a great job just a reminder, there is the clear asset which is a unique.

A unique risk fraud and compliance.

Speaker 3: There is the Council Road and Special Services Elite Analysts.

There is the Thomson Reuters special services.

Analysts.

Speaker 3: I have extraordinary capabilities and extraordinary relationships with a multitude of government agencies and Ms. Pondera.

I'm going to have extraordinary capabilities and extraordinary relationships with a multitude of government agencies at this point Dara.

Speaker 3: which prevents and detects and prevents benefits forward. And then of course, there's case lines, which is around.

Which is which prevents.

Detects and prevents.

Benefits that forward and then of course, this case lines, which is around.

Digital and virtual Corp.

Speaker 3: digital and virtual core core systems. So that is a real constellation of our, of our risk business today. We do apply those tools to the corporate sector, but it's relatively, relatively fairly days and the maintenance of the progress there. We do this as an enormous opportunity.

<unk> systems.

So.

As a rule constellation of out of our business today, we do apply those tunes to the corporate sector, but its relatively relatively early days and we're making some good progress there.

We view this as an enormous opportunity.

Speaker 3: We think we're one of the few companies that has the capabilities and the trust of customers and other stakeholders to handle these sensitive questions. We think there's a very significant opportunity to extend into corporates. And so that's something that we're hopefully pursuing.

One of the few companies that has.

Our capabilities and the trust.

Customers and other stakeholders.

To handle the sensitive questions.

I think there is a very significant opportunity to expand into corporates and so thats something that were pursuing.

Great. Thanks for the color.

Speaker 1: Thank you. Your next question is from the line of PIM KC. Please go ahead.

Thank you. Your next question is from the line of Tim Casey. Please go ahead.

Thanks, Good morning, Steve you've you've consistently talked about the customer experience being the.

Speaker 10: Thanks, you're morning. Steve, you've consistently talked about the customer experience being the end, one of the end games of the change program, and you've noted that you're not there yet. Can you maybe flesh out a bit what milestones you're looking for, and when you think you'll get there, given your halfway through the change program? And what the impact will be, what the financial impact of those changes will be. Thanks.

What are the end game. So the change program and you've noted that you are not there yet can you maybe flesh out a bit what milestones you are looking for and when you think youll get there given you're halfway through the change program.

And what the.

What the impact will be.

The financial impact of those changes will be.

Speaker 3: Yeah, Tim, I'm happy to expand upon that. So what it isn't is just hoping that our customer service and support people get a little better at their jobs, right? We're not relying on better human interactions. What we are doing is fundamentally building and rebuilding all of the component parts and technology support.

Yes, yes.

I'm happy to expand upon that.

So what it isn't is.

Putting that out there.

Customer service and support people get a little better jobs.

We're not sort of relying on.

On data sort of human interactions. What we are doing is fundamentally building and rebuilding all of the component costs and the technologies that support.

Speaker 3: our customer experience. So that's everything from our initial marketing through to the digital and automated presentation of the product materials and trials to sign up some authentication enablement all the way through to building in the dual. So there's a very heavy component of digital and self-service that we're building in. And you think that will better enable us?

Our customer per customer experience. So that's that's everything from our initial marketing.

True too.

Yes.

Digital and automated presentation of prana.

Materials trials.

Two to sign up some of the indications enablement, all the way through drilling and with you.

A very heavy component of digital and so soon.

Yes.

Do you think that will better enable us to serve existing customers who are increasingly expecting.

Speaker 3: existing customers who are increasingly expecting those frictionless personalized experiences. And we think it's a lot, it enables to purchase new customers.

Was frictionless personalized experiences and we think that enable us to access new customers. So there is an element.

Speaker 3: So there's an element of addressable market growth there. In addition to that, we think that a customer...

Of.

Okay.

Dress more market growth there.

In addition to that we think better customer.

Speaker 3: experience, we provide us with additional five-hour around price. So we decided to exercise that. And then, clearly something might have took a lot of time.

Experience, we provide us additional firepower around price.

Slide two.

To exercise that in.

And then thirdly, something much talked a lot about.

Speaker 3: of the path data in months or so, which is improved retention.

For the past 18 months or so which is improved retention.

Speaker 3: And why we think about retention is it's about customer engagement. And this is where data and analytics comes into play. The better we understand how customers are using our products today, individual products and groups of products.

And.

Why do we think about retention because it's about customer engagement and this is with data and analytics comes into play with better we understand how customers are using our products today individual products and groups of products.

Speaker 3: The better insights we'll have into the degree of engagement, and we think we can fundamental improve our attention rates through that data-driven approach.

The better insights, we will have and to the degree of engagement and we think we can fundamentally improve our retention rates.

Through that data driven approach so.

Speaker 3: So, you know, I hope that gives you a simple why we are so focused on this. You know, I think if you look at our company, and we've had some very, very compelling products, and we've got some great people, but the experience we've provided that hasn't been where it needs to be. And I think when we get it right, it's gonna have some moving and connection outside for us.

I hope to that gives you a simply why we are so focused on this.

I think if you're looking at the company.

We've had some very very compelling products and we've got some great people with the experience we provide provided that hasnt been where it needs to be and I think when we get it right, it's going to have significant potential upside for us.

Thank you.

Thank you. Your next question is from the line of George Tony. Please go ahead.

Speaker 1: Thank you. Your next question is from the line of George Tongue. Please go ahead.

Speaker 11: Hi, thanks. Good morning. I'll also offer my congrats to Frank and welcome to Gary. You've increased your outlook for 2022 and 2023 organic revenue growth. As you look across legal tax and accounting and corporate, where are you seeing the most upside relative to your original outlook and what would you see as a key drive?

Hi, Thanks, Good morning, I'll also offer my congrats to Frank and welcome to dairy.

You've increased your outlook for 2022, and 2023 organic revenue growth as you look across legal tax and accounting incorporate where are you seeing the most upside relative to your original outlook and what would you say are the key drivers.

Yeah, Joe is happy to start there first data supplement as I mentioned earlier in regards to legal our 2023 that were increasing the range from five five to six to five to seven certainly encourage there not only by west La Lodge, an edge to that but the full breadth of the offerings.

Speaker 2: I'm happy to start there and I'm thirsty this summer. And then I mentioned earlier in regards to legal 2023, the re-epracing the range from 5 to 6 to 5 to 7, I certainly encourage there only by West Law Edge and Edge 2.0, but the full breadth of the offerings that we have, including practice of law and the government, elite, bond law, IQ.

We have important practical law and the government elite farm ball IQ tax and accounting at 9% growth in 2021, we're very encouraged by the work that Elizabeth <unk>, President and the tax <unk> accounting professionals, she and her team on the recent talent additions there.

Speaker 2: Tax and accounting 9% goes in 2021. They're very encouraged by the work that Elizabeth each doing president of the tax and accounting professionals. She and her team in the recent talent additions there. What we saw then accelerate their growth throughout 2021. It was about 4% during the first half of 2021.

We saw them accelerate their growth throughout 2021, it was about 4% during the first half of 'twenty, one accelerated 6% in Q3, 7% in Q4, and we expect to sustain that throughout 2022.

Speaker 2: We've celebrated 6% in Q3, 7% in Q4, and we expect to suspend that throughout 2022.

Speaker 2: Within the world's business, we don't expect 12% there of the border, but very pleased with the rise of the borders of dance business there and I think, Brent, will continue at kind of emitting the budget of the clients there. But legal on the good run, tax on the good run, and court versus showing the good momentum as we execute the war in the game, you know.

Within the mortgage business, we don't expect 12% every quarter, but very pleased with stabilizing the waters events business, there and I think print will continue at kind of the mid single digit declines there.

The legal on a good run tax on a really good run and corporates is showing really good momentum as we exit Q4 and within Q1.

Speaker 3: I just to add to that, too, I think that one of the things that makes me excited about being here, tons of roaders and about our prospects over the next few years is that we're not reliant on any one particular product or any one particular segment to achieve the growth rates that we set out to be our long-term organic growth expectations. And I think that's a, you know, that's an exciting question to be.

Yeah, just to add to that George.

The one of the things that makes me excited about being here at Thomson Reuters and about our prospects over the next few years, but we're not reliant on any one particular product or any one particular segment.

To achieve.

The growth rates that we've set out to meet our longer term organic growth expectations and I think that's a.

That's an exciting question.

Yeah.

Speaker 3: you know, we see the integration of information and

We see the integration of information.

Speaker 3: So, we have received some software and legal fundamental change for why lawyers do their work as a big opportunity for us. And particularly coming out of COVID, we're going to get to know where the set of lawyers are deciding to tax the county professionals.

Software research and software and legal to fundamentally change the way, we always do they work as a big opportunity for us.

And particularly coming out of Covid when it gets going there.

Most of the same in tax accounting professionals as they look to streamline and make more efficient the tax.

Speaker 3: they look to streamline and make more distance attacks, the tax routine preparation process in the label them to share their customers with advisory type services. And then incorporate, do not comment a number of times before. This is pretty new for us.

<unk> retained preparation process and enable them to serve their customers with advisory top services and then incorporates commented a number of times before this is pretty new for us.

Speaker 3: You know, it's a source of business, but it's not one of the company that we've been focused on for many, many years.

It's a software business, but it's not one that's a company that we've been focused on for many many years, we have a very talented leadership group.

Speaker 3: We're a very talented leadership group. Under the leadership of Senegal can do that in corporates. And we're excited about where they'll take this stuff.

Under the leadership of Sunil and Ddos incorporates and we're excited about where they'll take this fall.

Speaker 3: where I'll take this business and then Mike's commenter on lawyers, you know, he's watching, but what the fear is, first he's calling lawyers in perfect ways, like today, say, a profanative, they say the agency's customers and the Annabelle team for persons including lawyers, tax accounting and risk.

This business in the next coming to embroider on.

There's lots of.

Opportunities for us, which will avoid as appropriate wise, but basically a definitive data showed the agency customers.

<unk> professionals, including royalties texting.

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Speaker 3: We live across the SNHEG. We probably see the most upside in corporate, but certainly a nice, diverse applied share of great options.

Okay.

When we look across the basin I think.

We probably see.

Most upside in corporates, but certainly.

Diversified set of growth growth options.

Speaker 11: got it very helpful. Historically, West Law Edge is contributed about 100-bipster organic revenue growth in legal. As you look to launch Edge 2.0, would you expect that to extend the runway of the 100-bipster organic growth contribution, or should it drive increased contribution to legal organic growth?

Got it very helpful.

Eric where your western edges contributed about 100 bps to organic revenue growth in legal as you look to launch edge too.

Would you expect that to extend the runway of the 100 bps of organic growth contribution or should that drive increased contribution to legal organic growth.

Yes, George our current position is that we'll be able to sustain the 100 basis points of growth that we've now achieved for many quarters and couple of years. There. So the best assumption is that the 100 basis points of growth will continue longer term.

Speaker 3: Yeah, George, our current position is that we'll be able to sustain the 100 basis points of growth that we've now achieved for many quarters and a couple of years there. So the best assumption is that the 100 basis points of growth will continue longer term with at 2.00. Got it. Very helpful. Thank you.

It's $2.

Got it very helpful. Thank you.

Your next question is from the line of.

Speaker 1: Your next question is from the line of our agenda, Galapathy, chemical genuity. Please go ahead.

Listen the color Ken.

Canaccord Genuity. Please go ahead.

Good morning, Thanks for taking my question and all the best to Frank My Congratulations as well.

Speaker 12: Good morning, thanks for taking my question and all the best to Frank, Mike and Registrar's as well. I wanted to touch on the international opportunity, I mean, in most of the recent quarterly results.

Wanted to just.

Touch on the international opportunity I mean in most of the recent quarterly results.

Speaker 12: commentary you've been talking about the contributions to each of the divisions from the various international markets, Latin in particular. I was wondering whether you could have summarized that a little bit for us as we look ahead what sort of the magnitude of the opportunity mid to longer term and what are the limitations given some of the jurisdictional differences. Maybe you can sort of spend a moment on that. Thank you.

Commentary, you've been talking about the contributions to each of the divisions from the various international markets Latam in particular.

I was wondering.

Whether you sort of summarize that a little bit for us as we look ahead, what sort of the magnitude of the opportunity.

Mid to longer term and what are the limitations.

Given some of the jurisdictional differences.

Maybe you can spend a moment on that thank you.

Yeah. Thank you Eric.

Speaker 3: Yeah, thanks, Eric. And Steve Rothstad and I'm sure Michael will add two comments.

I'll start and I'm sure Michael will add two comments.

Speaker 3: So, you know, as a company, Trump's enroding has had a lot of experience in the national market. So, I've personally got a lot of experience in the national market.

So.

As a company Thomson Reuters have had a lot of experience in the international markets have withdrawn a personally about a lot of experience in the national markets.

Speaker 3: My observation I would make is that international is a bit of a miss something this moment. You know, in businesses like ours, we've been used country by country. And it's a question of having unique content and we never support that with, and she's running in South Korea to deliver those, those solutions to customers. You know, it's like is outlined on the last couple of course. We have a very strong position in Latin America.

One observation I would make is that international is a bit of a bit of a mismatch.

For smartphone.

In businesses like ALS dd's country by country, and it's a question of having unique content.

To support that.

On machine learning and software to deliver those boats.

Solutions to customers.

As Mark has outlined over the last couple of quarters, we have a very strong position in Latin America.

In Brazil in particular, impaction counting very strong team there.

<unk> performed on the other oil.

There are all weather conditions.

Speaker 3: We're all weather conditions in recent years and we've been going to continue to start when we've been tested behind it, and we're continuing to do that.

In recent years, and we expect them to continue to do so and we've invested behind them and we will continue to do that.

Speaker 3: There's some interesting great opportunities there to say the least to help our tax and accounting customers serve their clients better. With the Texas and Cancer growth opportunity, we think there's opportunity to expand in countries like Mexico. We have a very modest starting position that's in some big aspirations. We enjoy a good starting position in the major market.

There are some interesting growth opportunities there to say the latest to help our tax and accounting customers sort of the clients' behalf.

That's a substantial growth opportunity, we think there's opportunity to expand in countries like Mexico, where we have a very modest starting position.

Some big explorations.

We enjoy it.

A good starting position deep either.

In emerging markets.

Speaker 3: particularly in Australia and New Zealand. There are AEM businesses base.

Particularly in Australia, and New Zealand businesses based.

Speaker 3: And as we look more from that goes, we like to look at opportunities in a number of South-East Asian markets.

And as we look more from from that base.

Like to look at opportunities.

Number of Southeast Asian markets.

Speaker 3: and in markets like Japan, the strength of our solutions, we think we're quite well-behaved, our determined.

In markets like Japan.

The strength of our solutions, we think will play will be.

At the time.

Speaker 3: And the other place where Simeol and Dina has invested in new leadership and talent is in Europe , in the corporate sector, and we're starting to see some promising fine in markets, such as the UK and Germany. So as we look across, we're gonna be selected into the market we go after. We wanna make sure that we invest in a market, we really make our market.

And the other place we ask Neil and beta has invested.

In new leadership and talent in Europe in the corporate sector, and we're starting to see some promising.

In markets, such as the UK and Germany.

So as we look across we are going to be selective in terms of the markets. We go after we want to make sure that.

Where we invest in a market, we really Mike Mike or Mark.

Speaker 3: and we achieve the number one or number two position in the places we've played. But if you look at our starting point today, dating 20 or 30, can't have our revenue.

And we achieved the number one and number two position in the <unk>.

Since we play, but if you look at our starting point today.

<unk> seen about revenues.

Speaker 13: come from the United States and that I think should have led you to a pretty big international growth opportunity at the time Excellent. Thank you

Come from the United States.

That Avi.

Sort of lead you to a pretty big international growth opportunity overtime.

Excellent. Thank you.

Operator, we'd like to take one final question. Please.

Your final question is from the line of Sami Kassab of BNP Paribas. Please go ahead.

Speaker 1: Your final question is from the line of Sammy. Could you have a BNP Paribas please go ahead.

Thank you very much.

Speaker 14: And thank you, Frank, for bringing your last question and many thanks for the support through these many years. Gentlemen, good morning. I have two questions, please. The first one is on the smaller medium.

Thank you Frank for your last question and many thanks for your support.

Gentlemen, good morning.

Two questions. The first one is on the small and medium.

Speaker 14: business opportunity. It looks as if getting into the long tail of SME is a significant part of how you want to drive growth. Can you provide a little bit of color in terms of the share of revenue from the SME market across the big three?

Business opportunity.

As this.

Getting into the long term <unk>.

<unk> is a significant part of how you want to address growth can you provide a little.

Color in terms of.

The share of revenues from the SME market across the decrease.

Speaker 14: divisions please. And the second question is on label cost inflation. There's a lot of talk around some inflation and the like. Can you comment on what type of really label cost inflation you have issued in the 22 and 23 margin guidance and to what extent is that different from what you've seen in 20 and 21. Thank you, gentlemen.

Divisions.

And the second question.

Global cost inflation, there is a lot of talk around.

Uh huh.

And the like.

Can you comment on what type of sort of global concentration you have.

<unk> thousand 223 margin guidance to what extent is a difference from what you've seen in 2020 one thank you gentlemen.

Yeah. Thanks, Thanks, Steve.

Speaker 3: Yeah, thanks. Thanks, honey. Thanks, Steve. I'll start with the first test and be question the member. Mark will answer that and answer the impression question.

Steve I'll start with the first question.

And then.

Mark will add to that and obviously the inflation question.

Speaker 3: The SMB opportunity, about 35% of our revenues today come from small firms, whether they're small.

The SMB opportunity.

About 35% of all.

Revenues today come from <unk>.

More firms whether they are small.

Law firms small tax and accounting firms or for small to medium enterprises in the convention corporate.

Speaker 3: And next more heavily waited toward the taxi counting of legal so we need to get a pretty big opportunity.

Yes.

Our next more heavily weighted towards the types of accounting and legal side of things. So we think that's a pretty big opportunity.

Speaker 3: to just to share the corporate side. You need a number of different rockets including the United States.

<unk>.

Sure.

The corporate side.

Any number of different markets, including the United States.

Speaker 3: And the part you're taking is to lead with these investments in digital and self-share.

And the approach we're taking is to lead with these investments in digital himself shales.

Speaker 3: customer service and support capabilities because that's the better ones that best serve the SMB market. So we're starting with it. We're also looking hard at our product.

Customer service and support capabilities, because that's the way the ones that best serve.

The SMB market. So we're starting we're also looking hard at our products.

Speaker 3: and making investments in existing products to make them better suited to the small underpound. And you'll say generating and developing new products that are specifically dedicated to those areas. And so that's the approach for the patient and we think that...

Making investments in existing products to make them better suited to the small end of town.

It will start generating and developing new products that are specifically dedicated to those to those to those areas.

And so that's the approach we're taking.

And we think that.

Speaker 3: That's not exactly what we can, let's grow with the stigma and take some shares of capabilities that develop by the time. It's also an area where we will be very opportunistic and selective in terms of M&A. We think it's an opportunity to extend our franchise in those areas, inorganically, and then we'll take advantage.

Because that market segment.

Yes.

But to grow with the segment and take some shares up sell capability to go up over time.

So an area, where we will be very opportunistic and selective in terms of M&A.

If we think there's an opportunity there too.

To extend our franchise into diabetes Inorganically and then we'll take advantage of that market.

Speaker 2: Oh my God. Yeah, sending regards to cost inflation. Let me address it from two standpoints. Forcing regards to pricing and then labor. We look at our guidance for 22 and 23. We have a spoon to slide up tick in both our pricing and in our labor costs for both years. Those are reflected in our updated guidance that we provided today. When you think about our pricing, this is a reminder we have a significant level of our contracts under the multi-year contracts about 60%.

Mike, Yes, Sandy in regards to cost inflation, let me address it from two standpoints first in regards to pricing and then labor. If you look at our guidance for 'twenty, two and 'twenty three we have assumed a slight uptick in both our pricing and in our labor costs for both years those are reflected in our updated guidance that we.

<unk> provided today when you think about our pricing just as a reminder, we have a significant level of our contracts under multi year contracts about 60% of legal a multiyear corporates are about.

Speaker 2: of legal or multi-year corporates are about.

Speaker 2: 40% tax about 10%. So in regards to Updift and price having realized effects in a given calendar year Now you have to take the multi years and trip back that we have Reflected Sandy both them and uptake and pricing and labor cost in our guidance

40% tax about 10% so in regards to uplift in price having realized effects in a given calendar year.

To take the multi years and took back what we have reflected Sami both an uptick in pricing and labor costs in our guidance.

Thank you very much gentlemen.

Speaker 3: Hey, have a good day. That will be our final question. We'd like to thank you all for joining us today. And feel free to contact myself and bear with any follow-up questions you have. Have a good day.

Have a good day.

That will be our final question, we'd like to thank you all for joining us today.

And feel free to contact myself and Darren with any follow up questions you have a good day.

Thank you Ashley long securely.

Speaker 15: Thank you everyone for joining. That concludes your call. Please disconnect your lines. I'm in joy the rest of your day.

Your call. Please disconnect your lines I mean truly the rest of your day.

Hey.

Yeah.