Q1 2024 S&P Global Inc Earnings Call

Good morning, and welcome to S&P Global's first quarter 2024 earnings conference call I'd like to inform you that this call is being recorded for broadcast all participants are in a listen only mode. We will open the conference to questions and answers after the presentation and instructions will follow at that time.

Operator: Good morning, and welcome to S&P Global's first quarter 2024 earnings conference call. I'd like to inform you that this call is being recorded for broadcast, and all participants are in a listen-only mode.

Operator: We will open the conference to questions and answers after the presentation, and instructions will follow at that time. To access the webcast and slides, go to investor.spglobal.com. If you need any additional technical assistance, please press star 0 and I will assist you momentarily. I would now like to introduce Mr. Mark Grant, Senior Vice President of Investor Relations for S&P Global.

Access the webcast and slides go to Investor <unk> S. P Global Dot Com, if you need any additional technical assistance. Please press star zero and I will let dusty momentarily.

I would now like to introduce Mr. Mark Grant Senior Vice President of Investor Relations for S&P Global Sir you may begin.

Mark Grant: Good morning, and thank you for joining today's S&P Global first quarter 2024 earnings call presenting on today's call are Doug Peterson, President and Chief Executive Officer, and Chris Craig Interim Chief Financial Officer for the Q&A portion of today's call. We will also be joined by Adam Cansler President of S&P Global market.

Mark Grant: Good morning, and thank you for joining today's S&P Global First Quarter 2024 earnings call. Presenting on today's call are Doug Peterson, President and Chief Executive Officer, and Chris Craig, Interim Chief Financial Officer. For the Q&A portion of today's call, we will also be joined by Adam Kansler, President of S&P Global Market Intelligence, and Martina Cheung, President of S&P Global Ratings. We issued a press release with our results earlier today.

Mark Grant: Intelligence and Martina Cheung President of S&P global ratings.

Mark Grant: We issued a press release with our results earlier today. In addition, we have posted a supplemental slide deck with additional information on our results and guidance. If you need a copy of the release and financial schedules or the supplemental deck. They can be downloaded at investor <unk> S. P Global Dot com.

Mark Grant: In addition, we have posted a supplemental slide deck with additional information on our results and guidance. If you need a copy of the release and financial schedules, or the supplemental deck, they can be downloaded at investor.spglobal.com. The matters discussed in today's conference call may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including projections, estimates, and descriptions of future events. Any such statements are based on current expectations and current economic conditions and are subject to risks and uncertainties that may cause actual results to differ materially from results anticipated in these forward-looking statements.

Mark Grant: The matters discussed in today's conference call may contain forward looking statements within the meaning of the private Securities Litigation Reform Act of 1995, including projections estimates and descriptions of future events any such statements are based on current expectations and current economic conditions and are subject to risks and uncertainties.

Mark Grant: So that may cause actual results to differ materially from results anticipated in these forward looking statements additional information concerning these risks and uncertainties can be found in our forms 10-K, and 10-Q filed with the U S Securities and Exchange Commission.

Mark Grant: Additional information concerning these risks and uncertainties can be found in our Forms 10-K and 10-Q, filed with the U.S. Securities and Exchange Commission. In today's earnings release and during the conference call, we're providing non-GAAP-adjusted financial information. This information is provided to enable investors to make meaningful comparisons of the company's operating performance between periods and to view the company's business from the same perspective as management. The earnings release contains financial measures calculated in accordance with GAAP that correspond to the non-GAAP measures we're providing and includes reconciliations of such GAAP and non-GAAP measures.

Mark Grant: In today's earnings release and during the conference call, we're providing non-GAAP adjusted financial information. This information is provided to enable investors to make meaningful comparisons of the companys operating performance between periods and to view the companys business from the same perspective as management's the earnings release contains financial measures calculated.

Mark Grant: In accordance with GAAP that correspond to the non-GAAP measures, we are providing and contains reconciliations of such GAAP and non-GAAP measures the financial metrics will be discussing today refer to non-GAAP adjusted metrics unless explicitly noted otherwise.

Mark Grant: The financial metrics we will be discussing today refer to non-GAAP-adjusted metrics unless explicitly noted otherwise. I would also like to call your attention to certain European regulations. Any investor who has or expects to obtain ownership of 5% or more of S&P Global should contact Investor Relations to better understand the potential impact of this legislation on the investor and the company. We are aware that we have some media representatives with us on the call.

Mark Grant: I would also like to call your attention to certain European regulations, any investor who has or expects to obtain ownership of 5% or more of S&P global should contact investor relations to better understand the potential impact of this legislation on the investor in the company.

Mark Grant: We are aware that we have some media representatives with us on the call. However, this call is intended for investors and we would ask that questions from the media be directed to our media relations team, whose contact information can be found in the release at this time I would like to turn the call over to Doug Peterson Doug. Thank.

Mark Grant: However, this call is intended for investors, and we would ask that questions from the media be directed to our media relations team, whose contact information can be found in the release. At this time, I would like to turn the call over to Doug Peterson.

Douglas L. Peterson: Thank you, Mark. S&P Global is off to a tremendous start in 2024. Total revenue increased 14%, excluding the divestiture of engineering solutions. Transaction revenue in our Ratings Division drove much of the upside, but importantly, subscription revenue across the entire company increased 8% year-over-year as well. Strong growth across the enterprise contributed to quarterly revenue of nearly $3.5 billion, representing the highest quarterly revenue we've ever generated in the history of our company. Execution was its theme in the first quarter, and our efforts to capture market opportunities, combined with discipline on the expense side, led to more than 350 basis points of adjusted operating margin expansion year over year and adjusted EPS growth of 27%.

Douglas L. Peterson: Thank you Mark S&P global is off to a tremendous start for 2024 total revenue increased 14%, excluding the divestiture of engineering solutions.

Douglas L. Peterson: <unk> revenue in our ratings division drove much of the upside, but importantly subscription revenue across the entire company increased 8% year over year as well.

Douglas L. Peterson: Strong growth across the enterprise contributed to quarterly revenue nearly $3 $5 billion.

Douglas L. Peterson: Hitting the highest quarterly revenue we've ever generated in the history of our company.

Douglas L. Peterson: Execution was it steam in the first quarter and our efforts to capture market opportunities combined with discipline on the expense side led to more than 350 basis points of adjusted operating margin expansion year over year, and adjusted EPS growth of 27%.

Douglas L. Peterson: In addition to the stellar financial results in the first quarter, we continued to demonstrate our leadership across global markets. Capital markets were vibrant in the first quarter, and customers turned to S&P Global to help power their investment, funding, and trading activities. Equity markets saw strong volumes from both IPOs and M&A, and we saw the highest level of debt issuance since 2021. As the globe grapples with the future of energy security and energy transition, it's no coincidence that this conversation took place on the stage of S&P Global's Sarah Week conference and other S&P events around the world.

Douglas L. Peterson: In addition to the stellar financial results for the first quarter, we continued to demonstrate our leadership across global markets capital markets were vibrant in the first quarter and customers turn to S&P global to help power their investment funding and trading activities equity markets saw strong volumes from both Ipos and M&A and we saw the high.

Douglas L. Peterson: This level of debt issuance since 2021.

Douglas L. Peterson: As the globe grapples with the future of energy security and energy transition. It's no coincidence that this conversation took place on the stage of S&P Global Cera week conference and other S&P events around the world.

Douglas L. Peterson: As we power global markets in equity, fixed income, commodities, derivatives, and in many industrial verticals, our innovation drives customer value. We'll continue to innovate and invest in our leading data, technology, and workflow tools to drive growth, and we'll highlight some of that innovation today. As we look to the five strategic pillars we outlined for you in our Investor Day, we're pleased with the progress we've made across the board. While that fifth pillar of Execute and Deliver is on full display this quarter with the strength of our financial results, we continue to invest in customer relationships, innovation, technology, and our people. Beginning with our customers, we saw nearly $1 trillion of billed issuance in the first quarter.

Douglas L. Peterson: As we power global markets in equity fixed income commodities derivatives and in many industrial verticals, our innovation drives customer value.

Douglas L. Peterson: We will continue to innovate and invest in our leading data technology and workflow tools to drive growth and will highlight some of that innovation today.

Douglas L. Peterson: As we look to the five strategic pillars, we outlined for you at our Investor Day, We're pleased with the progress we've made across the board while that fifth pillar of execute and deliver is on full display this quarter with the strength of our financial results. We continued to invest in customer relationships innovation technology and our people.

Douglas L. Peterson: Beginning with our customers we saw nearly one trillion dollars of build issuance in the first quarter. This represents the dollar value of debt issued by our customers for which they actively sought out a rating from S&P global issuers know that an S&P global rating provides incredible trusted and objective measure of their credit risk and they know that we have the <unk>.

Douglas L. Peterson: This represents the dollar value of debt issued by our customers, for which they actively sought out a rating from S&P Global. Issuers know that an S&P Global rating provides a credible, trusted, and objective measure of their credit risk, and they know that we have the capacity, even in a very active market, to fully meet their needs. When we look at the broader financial services landscape, we're certainly not back to what we would consider normal levels in the capital markets overall, but we did see improvement. With the macro and geopolitical uncertainties still facing our customers through this year, we continue to hear some concern about the back half, and many market participants are still carefully evaluating expenses for 2024.

Douglas L. Peterson: <unk>, even in a very active market to fully meet their needs.

Douglas L. Peterson: When we look at the broader financial services landscape, we're certainly not back to what we would consider normal levels in the capital markets overall, but we did see improvement with the macro and geopolitical uncertainty still facing our customers through this year. We continue to hear some concerned about the back half and many market participants are still carefully evaluating expenses for <unk>.

Douglas L. Peterson: 'twenty 'twenty four.

Douglas L. Peterson: All of this is consistent with what we shared in February regarding our expectation that ratings would see a stronger first half than the second half, while market intelligence would likely start to see improvements in the growth rates in the back. Energy customers from all of our divisions and from around the globe converged once again in Houston, Texas, for our annual CERA Week conference. We're thrilled that customers, partners, regulators, government officials, and global thought leaders view S&P Global CERA Week as the premier event of the year.

Douglas L. Peterson: All of this is consistent with what we shared in February regarding our expectation that reading should see a stronger first half than second half while market intelligence would likely start to see improvements in the growth rates in the back half.

Douglas L. Peterson: Energy customers from all of our divisions and from around the globe converged once again in Houston, Texas for annual Cerro Week Conference. We're thrilled that customers partners regulators government officials and global thought leaders view S&P global Cerro week as the Premier event of the year.

Douglas L. Peterson: Customer engagement remains vital for S&P Global, and in the first quarter, we had well over 100,000 calls and meetings with customers, in addition to the thousands of meaningful interactions our ratings colleagues had with fixed income investors. Build issuance increased 45% year-over-year in the first quarter. Tight spreads and stabilizing risk appetite in the market created favorable conditions for issuers.

Douglas L. Peterson: Customer engagement remains vital for S&P global and in the first quarter, we had well over 100000 calls and meetings with customers. In addition to the thousands of meaningful interactions or ratings colleagues head with fixed income investors.

Douglas L. Peterson: Build issuance increased 45% year over year in the first quarter tight spreads and stabilizing risk appetite in the market created favorable conditions for issuers, we saw investment grade high yield and bank loan volumes all increase as issuers took full advantage to raise debt early in the year.

Douglas L. Peterson: We saw investment-grade, high-yield, and bank loan volumes all increase as issuers took full advantage to raise debt early in the year. However, we do expect much of this strength will be pulled forward from later in 2024, reinforcing our continued view of a stronger first half than second half in issuance volumes. The strength and build of issuance in the quarter also underscored the importance and advantages of a robust public debt market. We have seen tremendous growth over the last two years in private debt markets, but we began to see early signs of some of that debt being refinanced in the public markets in the first quarter. While this private-to-public refinancing activity only represented a low single-digit percent of billed issuance, we've heard from customers that they're saving up to 150 to 200 basis points in their interest rates by refinancing on the public market.

Douglas L. Peterson: We do expect much of this strength was pull forward from later in 2024, reinforcing our continued view of a stronger first half than second half in issuance volumes.

Douglas L. Peterson: The strength and build issuance in the quarter also underscored the importance and advantages of a robust public debt market. We saw tremendous growth over the last two years in private debt markets, but we began to see early signs of some of that debt being refinanced in the public markets in the first quarter while.

Douglas L. Peterson: While this private to public refinancing activity only represented a low single digit percent of build issuance. We've heard from customers that they're saving up to 150 to 200 basis points in their interest rates by refinancing the public markets.

Douglas L. Peterson: We expect the private markets to play an important role going forward as well. We're working with major private debt partners to deliver risk analytical solutions. Private markets revenue in our Ratings Division increased 30% year-over-year in the first quarter.

Douglas L. Peterson: We expect the private Mark is to play an important role going forward as well and were working with major private debt partners to deliver risk analytical solutions.

Douglas L. Peterson: Private markets revenue in our ratings division increased 30% year over year in the first quarter.

Douglas L. Peterson: Turning to Vitality, we're pleased to see that our Vitality Index continues to account for 10% of our total revenue, despite the fact that several strong and fast-growing products matured out of the Vitality Index at the end of 2023. As we've called out in the past, this index is meant to highlight the contributions from new or enhanced products. So as products mature, they will no longer be part of the Vitality Index, even if they continue to grow rapidly.

Douglas L. Peterson: Turning to vitality, we're pleased to see that our vitality index continues to account for 10% of our total revenue. Despite the fact that several strong and fast growing products matured out with vitality index at the end of 2023 as we've called out in the past. This index is meant to highlight the contributions from new or enhanced products.

Douglas L. Peterson: So as products mature they will no longer be part of the vitality index, even if they continue to grow rapidly.

Douglas L. Peterson: Key contributors from our pricing, valuations, and reference data, as well as several thematic and factor-based indices, matured out of the Vitality Index at the end of the year. We remain committed to that 10% target as a steady stream of new innovation takes the place of any products that graduate from the index. That was the case this quarter, as products that contributed roughly $80 million of revenue to the Vitality Index in the first quarter of 2023 were no longer in the Vitality Index this quarter.

Douglas L. Peterson: Key contributors from a pricing valuations and reference data as well as several thematic and factor based indices matured out of the vitality index at the end of the year we.

Douglas L. Peterson: We remain committed to that 10% target is a steady stream of new innovation takes the place of any products. They graduate from the index that was the case this quarter as products that contributed roughly $80 million of revenue to the vitality index in the first quarter of 2023, we're no longer in the vitality index. This quarter, we expect a vitality index to <unk>.

Douglas L. Peterson: We expect the Vitality Index to increase as a percent of total revenue as we progress through the remainder of the year. Turning to some examples of that innovation, in the first quarter, our Commodity Insights team launched a new Food and Agriculture Commodities Dashboard, providing a comprehensive view of commodity data, as well as new reports and research on energy. Additionally, we launched new price assessments for renewable energy as well as new benchmark prices for the Middle East and Asia.

Douglas L. Peterson: Increase as a percent of total revenue as we progress through the remainder of the year.

Douglas L. Peterson: Turning to some examples of that innovation in the first quarter, our commodity insights team launched a new food and agricultural commodities dashboard, providing a comprehensive view on commodity data as well as new reports and research on energy.

Douglas L. Peterson: Additionally, we launched new price assessments for renewable energy as well as new benchmark prices for the Middle East and Asia.

Douglas L. Peterson: Our energy transition and climate products continue to show rapid growth, nearly 30% year-over-year in the first quarter, supported by continued innovation in price assessments, new and enhanced datasets, and crucial insight solutions. We also introduced an exciting innovation in market intelligence. We've spoken at length about the tools and data sets available through our market intelligence marketplace. But in the first quarter, we introduced what we are calling Blueprint. These blueprints are packages of data sets and tools combined based on specific customer personas and workflows, such as private markets performance analysts. We introduced the first five blueprints in the first quarter, with plans to add more in the coming months.

Douglas L. Peterson: Our energy transition in climate products continued to show rapid growth nearly 30% year over year in the first quarter supported by the continued innovation and price assessments, new and enhanced datasets and crucial insight solutions.

Douglas L. Peterson: We also introduced an exciting innovation market intelligence, we've spoken at length about the tools and data sets available through our market intelligence marketplace, but in the first quarter. We introduced what we are calling blueprints. These.

Douglas L. Peterson: These blueprints or packages of data sets and tools combined based on specific customer personas and workflows such as private markets performance analytics. We introduced the first flight blueprints in the first quarter with plans to add more in the coming months. These intuitive combinations allow customers to easily discover how our data and tools can work together.

Douglas L. Peterson: These intuitive combinations allow customers to easily discover how our data and tools can work together to facilitate analytics and workflows in new ways. We're also pleased to see early results from the Enterprise AI initiatives we outlined for you last quarter. By elevating artificial intelligence to a position of enterprise-wide strategic focus, we're accelerating the development of new tools, deploying common capabilities across multiple divisions, and increasing the value we create for our customers and our shareholders.

Douglas L. Peterson: To facilitate analytics and workflows in new ways.

Douglas L. Peterson: We're also pleased to see early results from the enterprise AI initiatives, we outlined for you last quarter.

Douglas L. Peterson: By elevating artificial intelligence to a position of enterprise wide strategic focus we're accelerating the development of new tools deploying common capabilities across multiple divisions and increasing the value we create for our customers and our shareholders.

Douglas L. Peterson: With our in-house expertise, we've developed tools to help market participants benchmark the performance of large language models, specifically for business and finance use cases. The S&P AI Benchmarks by Kencho is a project informed by our world-class data and industry expertise. The questions in our benchmark are designed to assess the ability of large language models to understand and solve realistic finance problems, and each question has been verified by an experienced domain expert.

Douglas L. Peterson: With our in house expertise, we've developed tools to help market participants benchmark performance of large language models, specifically for business and finance use cases.

Douglas L. Peterson: The S&P a I benchmarks by Kimco is a project informed by our World class data and industry expertise the questions in our benchmark are designed to assess the ability of large language models to understand and solve realistic finance problems and each question that's been verified by an experienced domain expert.

Douglas L. Peterson: Lastly, we introduced a remarkable tool we call S&P SparkAssist. This is a co-pilot platform developed jointly between Kensho and our other internal technology team. We're deploying this platform throughout the organization to improve productivity, facilitate more rapid innovation, and reduce the time necessary to accomplish many routine tasks. Because of our proprietary data, the tools and expertise developed through Kensho, and the remarkable technologists we have working throughout S&P Global, we were able to develop the S&P Spark Assist chat interface without relying on a third-party vendor.

Douglas L. Peterson: Lastly, we introduced a remarkable tool we call S&P spark assist this is a co pilot platform developed jointly between Ken show and our other internal technology teams. We're deploying this platform throughout the organization to improve productivity facilitate more rapid innovation and reduce the time necessary to accomplish many routes.

Douglas L. Peterson: <unk> tasks.

Douglas L. Peterson: Because of our proprietary data the tools and expertise developed through kimco and the remarkable technologists. We are working through out of S&P Global we were able to develop S&P spark assist chat interface without relying on a third party vendor.

Douglas L. Peterson: As a result, we're delivering the power of generative AI to our people in an easy-to-use platform at the cost of less than $1 per user per month. We're incredibly excited about what this tool can do for our people, and we'll provide more details around use cases and productivity as we progress through the year. Turning to our financial results, Chris will walk through the first quarter results in more detail in a moment, but we have had an incredible start to 2024.

Douglas L. Peterson: As a result, we're delivering the power of generative V. I toured people in an easy to use platform at the cost of less than one dollar per user per month.

Douglas L. Peterson: We're incredibly excited about what this tool can do for our people and we will provide more details around use cases in productivity as we progressed through the year.

Douglas L. Peterson: Turning to our financial results, Chris will walk through the first quarter results in more detail in a moment, but we've had an incredible start to 2024 with strong growth across every division, we continue to balance the need to invest for future growth with the opportunity to deliver margin expansion and earnings growth this year.

Douglas L. Peterson: With strong growth across every division, we continue to balance the need to invest for future growth with the opportunity to deliver margin expansion and earnings growth this year. Revenue grew double digits as reported, but excluding the impact of the engineering solutions divestiture, revenue increased an impressive 14%. Trailing 12-month margins improved 170 basis points to nearly 47%.

Douglas L. Peterson: Revenue grew double digits as reported but excluding the impact from the engineering solutions divestiture revenue increased an impressive 14% trailing.

Douglas L. Peterson: Trailing 12 months margins improved 170 basis points to nearly 47% now I will turn to Chris Craig Our interim CFO to review the financial results, Chris welcome to the call over to you. Thank.

Douglas L. Peterson: Now we'll turn to Chris Craig, our interim CFO, to review the financial results. Chris, welcome to the call. Over to you. Thank you, Douglas.

Chris Snyder: Thank you Doug 'twenty to 'twenty four got off to a strong start as we saw three of five divisions achieved double digit growth as Doug mentioned reported revenue grew 10% in the first quarter and excluding the impact of the engineering solutions divestiture revenue growth was 14% adjusted expenses grew by only 3% year over year as we continued to folks.

Chris Snyder: Thank you, Doug. 2024 got off to a strong start as we saw three of the five divisions achieve double-digit growth. As Doug mentioned, reported revenue grew 10% in the first quarter, and excluding the impact of the Engineering Solutions Divestiture, revenue growth was 14%. Adjusted expenses grew by only 3% year-over-year as we continued to focus on disciplined execution and benefit from the Engineering Solutions Divestiture. Strong growth and solid execution combined to deliver more than 350 basis points of adjusted margin expansion in the quarter. Additionally, with our commitment to capital returns over the last 12 months, we've reduced the fully diluted share count by 3% year-over-year.

Chris Snyder: On disciplined execution and benefiting from the engineering solutions divestiture strong growth and solid execution combined to deliver more than 350 basis points of adjusted margin expansion in the quarter with our commitment to capital returns over the last 12 months, we've reduced the fully diluted share count by 3% year over year. This led to adjusted.

Chris Snyder: <unk> earnings per share, increasing by 27% year over year to $4.01.

Chris Snyder: Now turning to strategic investment areas sustainability and energy transition revenue grew 15% to $78 million in the quarter driven by strong demand for commodity insights energy transition products and benchmark offerings as well as E V transition related consulting in mobility, we are continuing to invest in our energy transition.

Chris Snyder: This led to adjusted earnings per share increasing by 27% year-over-year to $4.01. Now turning to strategic investment areas, sustainability and energy transition revenue grew 15% to $78 million in the quarter, driven by strong demand for Commodity Insights' energy transition products and benchmark offerings, as well as EV transition-related consulting in mobility. We are continuing to invest in our energy transition offerings where we see opportunities across our division.

Chris Snyder: Offerings, where we see opportunities across our divisions.

Chris Snyder: Moving to private market solutions revenue increased by 16% year over year to $116 million growth was driven by debt and bank loan ratings as well as continued strength in eye level and other private market solutions within market intelligence, we continued to build momentum in our revenue synergies and are ahead of schedule toward our three.

Chris Snyder: <unk> hundred $50 million target.

Chris Snyder: We exited the first quarter with an annualized run rate of $184 million during the first quarter alone we recognized $56 million in revenue synergies.

Chris Snyder: Moving to private market solutions, revenue increased by 16% year-over-year to $116 million. Growth was driven by debt and bank loan ratings as well as continued strength in iLevel and other private market solutions within market intelligence. We continue to build momentum in our revenue synergies and are ahead of schedule toward our $350 million target. We exited the first quarter with an annualized run rate of $184 million.

Chris Snyder: The majority of this was from cross sell initiatives, we are beginning to gain traction with new products as well as of the end of Q1, we have launched 25, new products. There are revenue synergy initiatives and we plan to launch more than 15 additional synergy products by the end of 2024.

Chris Snyder: Turning to our divisions market intelligence revenue increased 7% in the first quarter with all business lines growing in the mid to high single digit range desks.

Chris Snyder: Desktop grew 5% as we continued to focus on speed performance improvements and the introduction of new content and capabilities, including the expansion of our collection of premium broker research providers within aftermarket research.

Chris Snyder: During the first quarter alone, we recognized $56 million in revenue synergy. While the majority of this was from cross-sell initiatives, we are beginning to gain traction with new products as well. As of the end of Q1, we have launched 25 new products through our revenue synergy initiatives, and we plan to launch more than 15 additional synergy products by the end of 2024.

Chris Snyder: Data Advisory solutions grew 7% driven by expanding coverage and continued investment in high growth areas of our company information and analytics and market data and valuation product offerings enterprise solutions benefited from an increase in issuance volumes in the debt and equity capital markets and grew over 8% in the quarter credit in risk solutions.

Chris Snyder: Turning to our divisions, market intelligence revenue increased 7% in the first quarter, with all business lines growing in the mid to high single-digit range. Desktop grew 5% as we continued to focus on speed, performance improvements, and the introduction of new content and capabilities, including the expansion of our collection of premium broker research providers within aftermarket research. Data Advisory Solutions grew 7% driven by expanded coverage and continued investment in high-growth areas of our company information and analytics and market data and valuation product offering. Enterprise Solutions benefitted from an increase in issuance volumes in the debt and equity capital markets and grew over 8% in the quarter.

Chris Snyder: <unk> grew 6% supported by strong new sales and price realization, particularly for ratings Express subscriptions, we saw solid growth in market intelligence in Q1 that was in line with our expectations and consistent with what we signaled on our fourth quarter earnings call adjusted expenses increased 6% year over year, primarily due to an <unk>.

Chris Snyder: Increasing compensation expense cloud costs, and royalties, partially offset by a reduction in outside services expense.

Chris Snyder: Operating profit increased 9% and the operating margin increased 70 basis points to 32.7% trailing 12 months margins expanded 50 basis points to 33, 1%.

Speaker Change: Now turning to ratings as Doug mentioned earlier, we saw issuers take advantage of favorable financing conditions, which led to strong refinancing and opportunistic issuance in the first quarter ratings revenue increased 29% year over year exceeding our internal expectations transaction revenue grew by 54% in the first quarter as heightened refinance.

Chris Snyder: Credit and Risk Solutions grew 6%, supported by strong new sales and price realization, particularly for Ratings Express subscriptions. We saw solid growth in market intelligence in Q1 that was in line with our expectations and consistent with what we signaled on our fourth quarter earnings call. Adjusted expenses increased 6% year-over-year primarily due to an increase in compensation expense, cloud costs, and royalties, partially offset by a reduction in outside services expense. Operating profit increased 9%, and the operating margin increased 70 basis points to 32.7%. Trailing 12-month margins expanded 50 basis points to 33.1%. Now, turning to ratings.

Chris Snyder: Activity increased bank loan and high yield issuance non transaction revenue increased 8%, primarily due to an increase in annual fee revenue and strong demand for our rating evaluation service, an issuer credit rating products.

Chris Snyder: Adjusted expenses increased 9% driven by higher compensation, including incentives as well as increased <unk> expense as our commercial and analytical teams. We're actively meeting with issuers to help drive the strong growth. We saw in the quarter. This resulted in a 43% increase in operating profit and a 640 basis point increase in <unk>.

Chris Snyder: Operating margin to 64, 7% for the trailing 12 months ratings margins expanded 290 basis points to 58, 5%.

Chris Snyder: And now turning to commodity insights revenue increased 10% following the fourth consecutive quarter of double digit growth in both price assessments and energy and resources data and insights price assessments and energy and resources data and insights grew 14, and 12% respectively. We continue to see commercial momentum across both business lines.

Chris Snyder: As Doug mentioned earlier, we saw issuers take advantage of favorable financing conditions which led to strong refinancing and opportunistic issuance in the first quarter. Ratings revenue increased 29% year-over-year, exceeding our internal expectations. Transaction revenue grew by 54% in the first quarter, as heightened refinancing activity increased bank loan and high-yield issuance. Non-transaction revenue increased 8%, primarily due to an increase in annual fee revenue and strong demand for our rating and valuation service and issuer credit rating products.

Chris Snyder: As our established benchmark data and insights products have driven customer conversations about our emerging offerings.

Chris Snyder: Advisory and transactional services revenue grew 10% driven by strong trading volumes across key sectors and global trading services and an excellent turnout at our Premier Global Energy Conference Cera week.

Chris Snyder: Adjusted expenses increased 9%, driven by higher compensation, including incentives, as well as increased T&E expense, as our commercial and analytical teams were actively meeting with issuers to help drive the strong growth we saw in the quarter. This resulted in a 43% increase in operating profit and a 640 basis point increase in operating margin to 64.7%. For the trailing 12 months, the ratings margin expanded 290 basis points to 58.5%. Now, turning to Commodity Insights.

Chris Snyder: Upstream data and insights revenue grew by 2% year over year benefiting from demand for our carbon emissions monitoring offerings as well as improvement in retention rates.

Chris Snyder: The business line continues to prioritize growth in its subscription base.

Chris Snyder: Adjusted expenses increased 7% due to higher compensation costs and ongoing investment in growth initiatives.

Chris Snyder: Operating profit for commodity insights increased 13% and operating margin improved by 110 basis points to 47, 2%. The trailing 12 month margin increased by 120 basis points to 46, 4%.

Chris Snyder: Now turning to mobility revenue increased 8% year over year, the dealer segment markets fifth consecutive quarter of double digit growth and we also saw solid performance from our financials and other business lines.

Chris Snyder: Revenue increased 10% following the fourth consecutive quarter of double-digit growth in both price assessments and energy and resources data and insights. Price assessments and energy and resources data and insights grew 14 and 12%, respectively. We continue to see commercial momentum across both business lines as our established benchmark data and insights products have driven customer conversations about our emerging offering.

Chris Snyder: <unk> revenue increased 12% year over year, driven by new business growth in products, such as new car listings and carfax for life as well as the addition of market scan manufacturing declined by 3% driven by a decrease in one time transactional revenue, particularly in our recall and marketing businesses, which was partially offset by growth in subscription sales.

Chris Snyder: Advisory and Transactional Services revenue grew 10%, driven by strong trading volumes across key sectors in global trading services and an excellent turnout at our premier global energy conference, CERO Week. Upstream Data & Insights revenue grew by 2% year-over-year, benefiting from demand for our carbon emissions monitoring offerings, as well as improvement in retention rates. The business line continues to prioritize growth in its subscription base.

Chris Snyder: It is important to understand that revenue from recall products will fluctuate based on the level of activity in any given period financials and other increased 12% as a business line benefited from strong underwriting volumes and price increases.

Chris Snyder: Adjusted expenses increased 10% due to both planned investments in strategic growth initiatives and the full quarter impact of the market scan acquisition.

Chris Snyder: While this resulted in a 100 basis points of margin contraction to 38, 1% for the quarter and a 70 basis point reduction to 38, 6% for the trailing 12 months operating profit for mobility increased by 5% year over year.

Chris Snyder: Adjusted expenses increased 7% due to higher compensation costs and ongoing investment in growth initiatives. Operating profit for Commodity Insights increased 13%, and operating margin improved by 110 basis points to 47.2%. The trailing 12-month margin increased by 120 basis points to 46.4%. Now, turning to mobility.

Chris Snyder: Now turning to S&P Dow Jones indices revenue increased 14%, primarily due to strong growth in asset linked fees, which benefited from higher AUM and continued strength in exchange traded derivative revenue.

Chris Snyder: Revenue associated with asset linked fees was up an impressive 16% in the first quarter. This was driven by higher ETF and mutual fund AUM benefiting from both market appreciation and net inflows. We also saw an increase in revenue for OTC products.

Chris Snyder: Revenue increased 8% year-over-year. The dealer segment marked its fifth consecutive quarter of double-digit growth, and we also saw solid performance from our finance and other business leaders. Dealer revenue increased 12% year-over-year, driven by new business growth in products such as new car listings and Car Facts for Life, as well as the addition of new markets. However, manufacturing declined by 3% driven by a decrease in one-time transactional revenue, particularly in our recall and marketing businesses, which was partially offset by growth in subscription sales. It's important to understand that revenue from recall products will fluctuate based on the level of activity in any

Chris Snyder: Exchange traded derivatives revenue grew 12%, primarily driven by strong volumes in SPX products and price realization.

Chris Snyder: Data and custom subscriptions increased 6% year over year, driven by new business growth in end of day contracts.

Chris Snyder: Expenses increased 9% year over year, primarily due to increased investments in strategic growth initiatives as well as an increase in compensation expense.

Chris Snyder: Indices operating profit increased 15% and operating margin expanded 110 basis points to 72, 9%.

Chris Snyder: On a trailing 12 month basis margins expanded by 30 basis points to 69, 3% in.

Chris Snyder: In the aggregate our businesses demonstrated exceptional revenue and margin growth while at the same time permitting us to invest in our strategic growth initiatives during the quarter, giving us a strong start to 2024.

Chris Snyder: Financials and other increased 12% as the business line benefited from strong underwriting volumes and price increases. Adjusted expenses increased 10% due to both planned investments in strategic growth initiatives and the full quarter impact of the market scan acquisition. While this resulted in a 100 basis points of margin contraction to 38.1% for the quarter and a 70 basis point reduction to 38.6% for the trailing 12 months, operating profit for mobility increased by 5% year over year.

Chris Snyder: And with that I will now turn it back to Doug to discuss our outlook for the remainder of the year Doug.

Douglas L. Peterson: Chris we've updated our outlook, reflecting our economists' view of the most important economic and market factors that will impact 2024, as well as the outperformance against our internal estimates during the first quarter.

Douglas L. Peterson: Our financial guidance assumes global GDP growth of three 2% U S inflation of two 8% and an average price for Brent crude of $85 per barrel all.

Douglas L. Peterson: All three of these figures are slightly higher than we originally assumed in our outlook in February.

Douglas L. Peterson: Additionally, our original macroeconomic view included the base case assumption for three rate cuts by the U S fed beginning no earlier than June.

Chris Snyder: Revenue increased 14% primarily due to strong growth in asset-linked fees, which benefited from higher AUM and continued strength in exchange-traded derivative revenues. Revenue associated with asset-linked fees was up an impressive 16% in the first quarter. This was driven by higher ETF and mutual fund AUM benefiting from both market appreciation and net inflows. We also saw an increase in revenue for OTC products. Exchange-traded derivatives revenue grew 12%, primarily driven by strong volumes in SPX products and price realization. Data and custom subscriptions increased 6% year-over-year, driven by new business growth in end-of-day contracts.

Douglas L. Peterson: As we've seen over the last three months market expectations around interest rates have shifted and while our economists have not formally updated the number of rate cuts in your base case scenario, our financial guidance now assumes fewer than three rate cuts in 2024.

Douglas L. Peterson: We're increasing our build issuance forecast for 2024 by approximately three percentage points to a range of 6% to 10% as we noted last quarter. Our initial outlook for 2024 assumed a stronger first half of the year for issuance.

Douglas L. Peterson: Even with that assumption the first quarter outperformed our expectations, though we believe much of that outperformance is pull forward as issuers look to take advantage of very favorable market conditions.

Douglas L. Peterson: All of these factors impact our new full year guidance, calling for higher growth and stronger margins. This slide illustrates our current guidance for GAAP results.

Chris Snyder: Expenses increased 9% year-over-year, primarily due to increased investments in strategic growth initiatives, as well as an increase in compensation expenses. Indices Operating Profit increased 15%, and Operating Margin expanded 110 basis points to 72.9%. On a trailing 12-month basis, margins expanded by 30 basis points to 69.3%. In the aggregate, our businesses demonstrated exceptional revenue and margin growth, while at the same time, allowing us to invest in our strategic growth initiatives during the quarter, giving us a strong start to 2024. And with that, I will now turn it back to Doug to discuss our outlook for the remainder of the year. Okay, Doug?

Douglas L. Peterson: For our adjusted guidance, we're now expecting revenue growth in the range of 6% to 8%, reflecting the outperformance in ratings and indices in the first quarter, partially offset by slightly softer expectations for issuance in the second half of the year.

Douglas L. Peterson: Excluding the impact of 2023 divestitures, we expect revenue growth to be slightly more than one percentage point higher than reported revenue growth.

Douglas L. Peterson: We also now expect to deliver stronger margins in 'twenty 'twenty four with margin expansion in the range of 100 to 150 basis points compared to our prior guidance of approximately 100 basis points, we're taking a balanced approach to reinvesting for future growth, while still expanding margins and remain on track to achieve the investor day targets through 2020.

Douglas L. Peterson: Chris, we've updated our outlook to reflect our economists' view of the most important economic and market factors that will impact 2024, as well as the outperformance against our internal estimates during the first quarter. Our financial guidance assumes global GDP growth of 3.2%, U.S. inflation of 2.8%, and an average price for Brent crude of $85 per barrel. All three of these figures are slightly higher than we originally assumed in our outlook in February. Additionally, our original macroeconomic view included the base case assumption for three rate cuts by the U.S. Fed, beginning no earlier than June.

Douglas L. Peterson: Two.

Douglas L. Peterson: We now expect to deliver adjusted EPS for the full year in the range of $13.85 to $14.10, which represents 11% growth at the midpoint. This represents a 10 cent increase from our prior range driven by the increased revenue and profitability outlook for the year.

Douglas L. Peterson: We're also increasing our outlook for adjusted free cash flow, excluding certain items by $100 million. Despite modestly higher expected capex higher expected net income and disciplined management of working capital both contributed to the higher expected cash flow for the year.

Douglas L. Peterson: As we've seen over the last three months, market expectations around interest rates have shifted, and while our economists have not formally updated the number of rate cuts in their base case scenario, our financial guidance now assumes fewer than three rate cuts in 2024. We're increasing our billed issuance forecast for 2024 by approximately 3 percentage points to a range of 6% to 10%. As we noted last quarter, our initial outlook for 2024 assumed a stronger first half of the year for issuance. Even with that assumption, the first quarter outperformed our expectations, though we believe much of that outperformance was pulled forward as issuers looked to take advantage of very favorable market conditions.

Douglas L. Peterson: Moving toward division outlook, we are reiterating our revenue growth expectations for market intelligence commodity insights and mobility and we're increasing the growth outlook for ratings and indices based on the strength in the first quarter.

Douglas L. Peterson: We're also raising the margin outlook for indices to reflect the very strong performance year to date.

Douglas L. Peterson: While margins were also very strong in our ratings division the first quarter, we're reiterating the range for full year margins, which employs approximately 150 basis points of margin expansion to midpoint.

Douglas L. Peterson: Since much of the revenue outperformance in Q1 likely came from pull forward our full year guidance assumes year over year declines in ratings transaction revenue in the fourth quarter as we begin to lap much stronger comps from last year.

Douglas L. Peterson: All of these factors impact our new, four-year guidance calling for higher growth and stronger margins. This slide illustrates our current guidance for gap results. For our adjusted guidance, we're now expecting revenue growth in the range of 6% to 8%, reflecting the outperformance in ratings and indices in the first quarter, partially offset by slightly softer expectations for issuance in the second half of the year. Excluding the impact of 2023 divestitures, we expect revenue growth to be slightly more than one percentage point higher than reported revenue growth.

Douglas L. Peterson: As a result, we expect margins to be softer in the back half of the year than in the first half and ratings.

Douglas L. Peterson: With that I'd like to invite Adam Cansler, President of S&P Global market intelligence, and Martina Cheung President of S&P Global ratings and executive lead for sustainable one to join US I'll turn the call back over to Mark for your questions. Thank you.

Adam J. Kansler: Thank you Doug for those on the line if you would like to ask a question. Please press star one and record your name to cancel or withdraw your question simply press Star two participants will be limited to one question in order to allow time for others. During today's Q&A session. Operator, we will now take our first question.

Douglas L. Peterson: We also now expect to deliver stronger margins in 2024, with margin expansion in the range of 100 to 150 basis points, compared to our prior guidance of approximately 100 basis points. We're taking a balanced approach to reinvesting for future growth while still expanding margins and remain on track to achieve the Investor Day targets in 2022. We now expect to deliver adjusted EPS for the full year in the range of $13.85 to $14.10, which represents 11% growth at the midpoint.

Douglas L. Peterson: Thank you. Our first question comes from Toni Kaplan with Morgan Stanley You May proceed.

Toni Michele Kaplan: Thank you so much I wanted to focus on market intelligence, we've heard some negative commentary from others in the market, which made it sound like this past quarter was particularly challenging so I wanted to see if that was your experience as well and also.

Douglas L. Peterson: This represents a $0.10 increase from its prior range, driven by the increased revenue and profitability outlook for the year. We're also increasing our outlook for adjusted free cash flow excluding certain items by $100 million, despite modestly higher expected CAPEX. Higher expected net income and disciplined management of working capital both contribute to the higher expected cash flow for the year.

Toni Michele Kaplan: If a large investment bank consolidation impact.

Toni Michele Kaplan: In this quarter or if it hasn't hit yet and then I know you were talking about market intelligence being better in the back half and so wanted to just flesh out what gives you the confidence that that happens.

Toni Michele Kaplan: Yes.

Toni Michele Kaplan: Hi, Toni it's Adam Thank you for the question.

Adam J. Kansler: So yes, we're seeing many of the things that others are seeing in our markets, particularly for our financial services customers.

Douglas L. Peterson: Moving toward division outlook, we're reiterating our revenue growth expectations for market intelligence, commodity insights, and mobility, and we're increasing the growth outlook for ratings and indices based on the strength in the first quarter. We're also raising the margin outlook for indices to reflect the very strong performance here to date. While margins were also very strong in our Ratings Division in the first quarter, we're reiterating the range for full-year margins, which implies approximately 150 basis points of margin expansion at the mid-term.

Adam J. Kansler: We're seeing that particularly in the smallest of those customers and that's that's probably comparable to what some others are seeing but for us that's really where the concentrations are but specific consolidation that you're talking about in terms of the overall scale of our division, it's not something that impacts us in a material way that some of.

Adam J. Kansler: That has already been absorbed some will continue to come but all of that has been anticipated by us and the guidance and the view that we've given you forward we.

Douglas L. Peterson: Since much of the revenue outperformance in Q1 likely came from pull-forward, our full-year guidance assumes year-over-year declines in ratings transaction revenue in the fourth quarter as we begin to lap much stronger comps from last year. As a result, we expect margins to be softer in the back half of the year than in the first half.

Adam J. Kansler: We do view whats going on in the market today is very much a cyclical headwind, but the secular tailwind that we see in our businesses, particularly in our core areas of focus like private markets. The expansion of our desktop you see some of the improvements and the investments we've made over the last two years that gives us a lot of confidence and it.

Douglas L. Peterson: With that, I'd like to invite Adam Kansler, President of S&P Global Market Intelligence, and Martina Cheung, President of S&P Global Ratings and Executive Lead for Sustainable One, to join us. Then, I'll turn the call back over to Mark for your questions. Thank you.

Adam J. Kansler: Sheathing, our long term goals and the continued growth of the business confidence in what we've explained we expect to do for the current year and in delivering against our longer range Investor day targets that we set out in 2022.

Mark Grant: Thank you, Doug. For those on the line, if you would like to ask a question, please press star 1 and record your name. To cancel or withdraw your question, simply press star 2. Participants will be limited to one question in order to allow time for others during today's Q&A session. Operator, we will now take our first question.

Speaker Change: Thank you Tony.

Speaker Change: Thank you. Our next question comes from Manav Patnaik with Barclays. Your line is open. Thank you I just wanted to ask on market intelligence as well just in terms of the strategy going forward, obviously tough budget environment competitors are probably sharpening their pencils too.

Manav Shiv Patnaik: Just just can you help us with the strategy that also kind of tied to that is the.

Operator: Thank you. Our first question comes from Toni Kaplan. With Morgan Stanley, you may proceed. Thank you so much.

Manav Shiv Patnaik: Windows visible alpha close how should we think by the contribution in <unk> and also the divestiture that you were planning like what what else is in there.

Toni Michele Kaplan: Thank you so much. I wanted to focus on market intelligence. We've heard some negative commentary from others in the market, which made it sound like this past quarter was particularly challenging. So I wanted to see if that was your experience as well, and also if the large investment bank consolidation impact was felt in this quarter or if it hasn't hit yet. And then I know you're talking about market intelligence being better in the back half, and so I wanted to just flesh out what gives you the confidence that that will happen. Thanks.

Speaker Change: Okay. Thanks Manav.

Speaker Change: Thank you for the question.

Speaker Change: Let me just start with the last piece visible out, but we do expect that transaction to close here in the second quarter. We're quite excited about it I think it's an important part of one of our strategic areas, which is the continued expansion and improvement in quality of the cap IQ Pro set of solutions that we offer to the market as we highlighted it didn't really.

Speaker Change: As far back as Investor Day, we have a few core areas of focus that we do think we'll continue to grow and that that really shapes. Our strategic focus those are in areas like private market sustainability of the supply chain the expansion of our desktop the ability to deliver our data and solutions to customer and is easier way as possible.

Adam J. Kansler: Hi Toni, it's Adam. Thank you for the question. So, yes, we're seeing many of the things that others are seeing in our markets, particularly for our financial services customers. And we're seeing that particularly in the smallest of those customers. And that's, you know, that's probably comparable to what some others are seeing. But for us, that's really where the concentrations are. The specific consolidation that you're talking about in terms of the overall scale of our division is not something that impacts us in a material way. Some of that has already been absorbed.

Speaker Change: These are things that our largest customers are looking for as they go through consolidations of vendors, that's where the scale and breadth of services that we're able to offer through market intelligence and of course across the broader S&P global enterprise really has impact.

Adam J. Kansler: Some will continue to come, but all of that has been anticipated by us in the guidance and the view that we've given you. We do view what's going on in the market today as very much a cyclical headwind. But the secular tailwinds that we see in our businesses, particularly in our core areas of focus, like private markets, and the expansion of our desktop, you see some of the improvements in the investment we've made over the last two years.

Speaker Change: We will be laser focused on that strategy and as you've seen when we announced at our last call. We will look at those businesses, where we see underperformance or lack of strategic fit and we will make decisions on those and where we see opportunities to acquire unique assets that are high growth or have particular proprietary value comp.

Adam J. Kansler: That gives us a lot of confidence in achieving our long-term goals and the continued growth of the business, confidence in what we've explained we expect to do for the current year, and in delivering against the longer-range investor-day targets that we set out in 2022. Thank you, Toni. Thank you. The next question comes from Manav Patnaik with Barclays. Your line is open. Thank you. I just wanted to ask about market intelligence...

Speaker Change: Like visible Alpha one you mentioned you know we're quite excited to get that integrated.

Speaker Change: We're going to take advantage of our position and our opportunity to bring them into the business.

Speaker Change: So thanks again, thanks Manav.

Speaker Change: Thank you. Our next question comes from Heather <unk> with Bank of America. Your line is open.

Heather: Hi, Thank you for taking my question.

Heather: I'd love to hear more about how you talked about a pull forward and issue an and.

Operator: Our next question comes from Manav Patnaik with Barclays. Your line is open.

Heather: The first quarter.

Adam J. Kansler: OK, thanks, Manav, and thank you for the question. Let me just start with the last piece, Visible Alpha.

Heather: Just talk a little bit about it on a regular basis, how much visibility do you have as you walk three quarters out and how do you think about taking some level of conservatism given we're in an election year, there's an uncertain rate environment.

Adam J. Kansler: We do expect that transaction to close in the second quarter. We're quite excited about it. I think it's an important part of one of our strategic areas, which is the continued expansion and improvement in quality of the CapIQ Pro set of solutions that we offer to the market. As we highlighted, I think really as far back as Investor Day, we have a few core areas of focus that we do think will continue to grow, and that really shapes our strategic focus.

Heather: Just how are you positioning yourself with regards to the guidance given what you saw in the first quarter.

Heather: Hi, Heather it's martino, thanks, very much for the question.

Martino: We look at a variety of factors to give us a good sense for issuance pipeline.

Martino: Any immediate.

Martino: Frame you know typically we would look at 180 day pipelines for example, as well as the more near term, but also trout.

Martino: As much as we can next nine to 12 months.

Adam J. Kansler: Those are in areas like private markets, sustainability, the supply chain, the expansion of our desktop, and the ability to deliver our data and solutions to customers in as easy a way as possible. These are things that our largest customers are looking for as they go through consolidations of vendors. That's where the scale and breadth of services that we're able to offer through market intelligence and, of course, across the broader S&P Global enterprise really make a difference.

Martino: Those factors macro factors.

Martino: <unk> inflation rates geopolitical factors, which of course is something we're paying very close attention to this year, but we also look as we've mentioned in the past obviously at maturity walls that pace of refinancing as well as growth and investor interest in different asset classes, such as private markets.

Martino: The finance structured finance infrastructure et cetera.

Adam J. Kansler: We'll be laser-focused on that strategy, and as you saw when we announced at our last call, we'll look at those businesses where we see underperformance or lack of strategic fit, and we'll make decisions on those, and where we see opportunities to acquire unique assets that are high growth or have particular proprietary value. Companies like Visible Alpha, the one you mentioned, we're quite excited to get that integrated. We're going to take advantage of our position and our opportunity to bring them into the business.

Martino: So the those factors gave us a very good sense.

Martino: At any point in time for where we are with respect to the ear. If you look at what we saw in Q1 of this year in terms of build issuance. We saw a very high volume of refinancing of maturity walls in high yield and bank loans about two thirds overall.

Martino: Issuance activity that we saw was related to refinancing.

Martino: That was a combination of heavy refinancing of 24, but we also saw some 25 and 26 refinancing in the quarter as well.

Martino: So that's really the key area of outperformance from an instrument standpoint in Q1, and we would expect that refinancing activity to continue in bank loan and high yields through.

Adam J. Kansler: So thanks again, Manav. Thanks, Manav. Our next question comes from Heather Balsky with Bank of America. Your line is open. Hi, thank you for taking my question. Um, I'd love to hear more about how you talked about a pull forward in issuance.

Martino: Through the second quarter, and then taper off a little bit.

Martino: Largely because we've been hearing consistently even since before our last call that high yield and bank loan issuers as well as to some extent investment grade issuers are wanting to really get ahead of any volatility you see in the back half of the year and take advantage of.

Operator: Thank you. Our next question comes from Heather Balsky with Bank of America. Your line is open.

Martina L. Cheung: Hi Heather, it's Martina. Thanks very much for the question. So, we look at a variety of factors to give us a good sense of the issuance pipeline. In the immediate time frame, you know, typically, we would look at 180-day pipelines, for example, as well as more near-term, but also throughout, you know, as much as you can, the next 9 to 12 months. Those factors, macro factors, you know, GDP, inflation, rates, geopolitical factors, of course, are something we're paying very close attention to this year, but we also look, as we've mentioned in the past, obviously, at maturity walls, the pace of refinancing, as well as growth and investor interest in different asset classes, such as private markets, sustainable finance, structured finance infrastructure, etc. So, those factors give us a very good sense of where we are with respect to the year.

Martino: The relative market stability and favorable spreads that we're seeing at this time now on investment grade a very strong quarter, but we think a lot of that investment grade issuance is pulled forward from the second half of the year. There were a handful of several large M&A deals there as well, but not enough volume for us to to really change our view for investment grade issue.

Martino: For the rest of the year, so I hope that helps.

Speaker Change: Happy to take any more questions on the on issuance.

Speaker Change: Thank you Heather.

Martino: Thank you. Our next question comes from Faiza <unk> with Deutsche Bank Deutsche Bank. Your line is open.

Faiza: Yes, hi, good morning. Thank you so much I wanted to follow up on the ratings and maybe more on the margin front. So.

Faiza: While you're increasing the revenue outlook.

Martino: Margins.

Faiza: You haven't decreased margin. So I'm curious if it's you know mix of business.

Faiza: Or any investments sort of how we should think about the margin performance for the rest of it. They are thank you.

Martina L. Cheung: If you look at what we saw in Q1 of this year in terms of those issuance, we saw a very high volume of refinancing of maturity walls in high yield and bank loans, about two-thirds overall of the issuance activity that we saw was related to refinancing. That was a combination of heavy refinancing of 24, but we also saw some 25 and 26 refinancing in the quarter as well. So, that's really the key area about performance from an issuance standpoint in Q1, and we would expect that refinancing activity to continue in bank loan and high yield through the second quarter and then taper off a little bit, largely because we've been hearing consistently, even since before our last call, that high yields and bank loan issuers, as well as to some extent investment-grade issuers, are wanting to really get ahead of any volatility they see in the back half of the year and take advantage of the relative market stability and favorable spreads that we're seeing at this time.

Speaker Change: Alright, Thanks for the question well as you know we've said numerous times in the past we're solving for long term sustainable.

Speaker Change: Margin.

Speaker Change: In our in the ratings business and we are very disciplined stewards of capital in the business. So our guidance for the year, which we reiterated at 57 and a half to 58 and a half as Doug said in his remarks at the mid point represents about 150 basis points of margin expansion year over year.

Martino: We can do.

Martino: A lot with that with the base that we have so the reason why I say that is because we had this incredible blockbuster quarter from an issuance standpoint without having to add tremendous amounts of additional staff to meet that need and that is really I think kept reinforcement of their cap the capacity preservation strategy that we initiated.

Martino: You did a couple of years ago. So we're very pleased with the with how we're operating out from an expense management capacity management standpoint, I'm very comfortable with the margin range that we have right now.

Martino: As it relates to the full year.

Speaker Change: Thank you Faiza.

Martino: Thank you. Our next question comes from Andrew Steinman with J P. Morgan Your line is open hi, Martina.

Martina L. Cheung: Now, an investment-grade, a very strong quarter, but we think a lot of that investment-grade issuance is pulled forward in the second half of the year. There were a handful of large M&A deals there as well, but not enough volume for us to really change our view on investment-grade issuance for the rest of the year.

Andrew Charles Steinerman: Andrew I just wanted to ask you a little bit about issuance Paul Farr, you're just you're talking so much about it entry kind of second half Paul forward to first half just broadly are we still in the midst of a pretty large issuance recovery after the big declines of 22.

Martina L. Cheung: So, I hope that helps, and I'm happy to take any more questions on issuance. Thank you, Heather. Thank you. Our next question comes from Faiza Alwy with Deutsche Bank.

Andrew Charles Steinerman: Hi, Andrew Thanks, very much for the question I would say a couple of things. So the context on a lot of my commentary on intra year.

Andrew Charles Steinerman: I would say at lean more on the investment grade side, where we think we saw a T. H pull forward I think we did see pull forward of 25 and 26 maturities for example on the refinancing front for high yield and bank loans, So a little bit of a mix there between the spec grade off the class and the investment grade off the class I think to your.

Operator: Your line is open. Yes, hi. Good morning. Thank you so much.

Operator: Thank you. Our next question comes from Faiza Alwy with Deutsche Bank. Your line is open. Yes, hi.

Martina L. Cheung: Hi, thanks for the question. Well, as we've said numerous times in the past, we're solving for long-term sustainable margin in the ratings business, and we are very disciplined stewards of capital in the business. So our guidance for the year, which we reiterated at 57.5 to 58.5, as Doug said in his remarks, at the midpoint represents about 150 basis points of margin expansion year over year. We can do a lot with the base that we have.

Andrew Charles Steinerman: We're a broader point, yes, we are and continue to be in the midst of sabra.

Andrew Charles Steinerman: Our recovery notwithstanding the very steep growth rates for example in high yield and investment grade, we're still not seeing the issuance volumes back to anything close to what we might've characterized as market highs for example in the past or even market averages for AD that we might've seen in the past so there's still room to go here throughout the next set.

Martina L. Cheung: So the reason why I say that is because we had this incredible blockbuster quarter from an issuance standpoint without having to add tremendous amounts of additional staff to meet that need. And that is really, I think, a reinforcement of the capacity preservation strategy that we initiated a couple of years ago. So we're very pleased with how we're operating from an expense management and capacity management standpoint and very comfortable with the margin range that we have right now as it relates to the full year. Thank you, Faiza. Thank you. The next question comes from Andrew Steinerman with J.P. Morgan. Your line is open. Hi Martina.

Andrew Charles Steinerman: Well years. This is something that we've commented.

Andrew Charles Steinerman: Commented on since 22, I believe that it was going to take.

Andrew Charles Steinerman: Some years to come back to it but of course the maturity walls themselves are quite large factor here and so on the spec grade asset classes high yielding DLR.

Andrew Charles Steinerman: Jointly we've got about $1 one trillion in maturities are still outstanding for us in 'twenty five and 26, so we're monitoring very very closely and tightly.

Andrew Charles Steinerman: The indicators that will give us a sense for the pace and timing of those maturities.

Speaker Change: Thank you Andrew.

Speaker Change: Thank you. Our next question comes from Alex Kramm with UBS. Your line is open yes.

Martina L. Cheung: Hi Andrew. Thanks very much for the question. I would say a couple of things. In the context of a lot of my commentary on intra-year, I would say I'd lean more on the investment grade side, where we think we saw a 2H pull forward. I think we did see pull-forward of 25 and 26 maturities, for example, on the refinancing front for high yield and bank loans. So there is a little bit of a mix there between the speculative asset class and the investment grade asset class.

Alexander Kramm: Yes, Hey, good morning, everyone.

Alexander Kramm: Just another one on the margin actually but more on the outlook for the full company and nice to see the margin outlook being raised but just wondering is this just a business mix driven upside or is there anything else going on in stock I'm asking, particularly since you mentioned execution in your prepared remarks, so just wonder.

Alexander Kramm: Is it just execution on the on the sales and revenue side or.

Martina L. Cheung: I think to your broader point, yes, we are and continue to be in the midst of recovery, but notwithstanding the very steep growth rates, for example, in high yield and investment grade, we're still not seeing the issuance volumes back to anything close to what we might have characterized as market highs, for example, in the past, or even market averages that we might have seen in the past. So there's still room to grow here over the next several years.

Alexander Kramm: Following last years I guess this appointment is a couple of times, if you take a little bit of a harder look at the cost base and what it can be more efficient. Thanks.

Speaker Change: Thank you Alex as you know we run the company with an approach to budgeting and management, where we always start the year with a positive jaw. That's just our philosophy, we look and see how we're going to do in our core businesses. We go out to see our customers. We understand what we can build as a forward looking pipeline forward looking expectations for the market. We then ourself.

Martina L. Cheung: This is something that we've commented on since 22, believing that it was going to take some years to come back to it. But, of course, the maturity walls themselves are quite a large factor here. And on the spec grade asset classes, high yield and BLR, jointly, we've got about $1.1 trillion in maturities still outstanding for us in 25 and 26. So we're monitoring very, very closely and tightly the indicators that will give us a sense of the pace and timing of those maturities.

Speaker Change: I'll say what would be the expense level that we want to have to support that growth.

Speaker Change: On top of that we then come back and say how much can we afford to invest as you saw in this quarter. Our expenses grew 3%. That's a that's a result of very very strong execution coming out of 2023, we're ensuring that we can have very clear tracking of all of our expenses. It's just part of our philosophy of how we run the company going forward for the.

Operator: Thank you. Our next question comes from Alex Kramm with UBS. Your line is open.

Speaker Change: Our rest of the year you see that we're going to continue that approach, but we think that this is part of the way we manage the company. We're always looking at being very tight on understanding our revenue sources and then moving forward to have a tight approach to our expenses.

Operator: Yes, hey, good morning, everyone. Just another one on the margin, actually, but more on the outlook for the full company. And nice to see the margin outlook being raised. But I was wondering, is this just a business mix driven upside? Or is there anything else going on in the stock market? I'm asking particularly since you mentioned execution in your prepared remarks. So just wondering, is this just execution on the sales and revenue side? Or, following last year's, I guess, disappointments a couple of times, if you take a little bit of a harder look at the cost base and where you can be more efficient?

Speaker Change: Thanks, Alex.

Alexander Kramm: Thank you. Our next question comes from Ashish Sabedra with RBC capital markets. Your line is open.

Ashish Sabadra: Thanks for taking my question I, just wanted to drill down further on market intelligence.

Ashish Sabadra: Recurring variable into subscription growth you've seen some really strong 13% growth in recurring video of the last two quarters, how should we think about those tailwind that in fact, mostly contributed from <unk>.

Douglas L. Peterson: Thanks.

Douglas L. Peterson: Thank you, Alex. Well, as you know, we run the company with an approach to budgeting and management where we always start the year with a positive job. That's just our philosophy. We look at how we're going to do in our core businesses. We go out to see our customers. We understand what we can build as a forward-looking pipeline and forward-looking expectations for the market. We then ourselves say, what would be the expense level that we want to have to support that growth?

Ashish Sabadra: Going forward and then on the subscription side, the 6% growth that moderated a bit but how should we think about those momentum as we get to go through the year. Thanks.

Ashish Sabadra: Yeah.

Speaker Change: Thanks, Ashish for the question. So we watch our recurring revenue growth very carefully in this quarter.

Speaker Change: 7% growth in our recurring revenue some of that comes from volumes in.

Speaker Change: Our businesses that are affected by capital markets volumes over the years, we've sought to actually temper that a bit using more fixed contracts our customers in most of those markets prefer it and for us it adds a little bit more stability and regular growth to the business.

Douglas L. Peterson: On top of that, we then come back and say, how much can we afford to invest? As you saw in this quarter, our expenses grew 3%. That's a result of very, very strong execution coming out of 2023.

Speaker Change: Quarter to quarter, we will see some variation in those numbers, but we do expect our recurring revenue our subscription revenue to continue to grow in line with our full year guidance for the division.

Douglas L. Peterson: We're ensuring that we can have very clear tracking of all of our expenses. It's just part of our philosophy of how we run the company. Going forward for the rest of the year, you'll see that we're going to continue that approach, but we think that this is part of the way we manage a company. We're always looking to be very tight on understanding our revenue sources and then moving forward to have a tight approach to our expenses.

Speaker Change: Thanks again.

Speaker Change: Ashish.

Speaker Change: Thank you. Our next question comes from Jeff Silber with BMO capital markets. Your line is open.

Jeffrey Marc Silber: Thanks, So much just wanted to continue with our ratings questions. I think you said that build issuance was up 45% year over year in the quarter, but ratings revenue was only up 29% I know in prior quarters, they've been much tighter in terms of the correlation can you explain what happened in this quarter why the difference.

Douglas L. Peterson: Thanks, Alex. Thank you. Our next question comes from Ashish Sabadra with RBC Capital Markets. Your line is open. Thanks for taking my question. I just wanted to drill down further on market intelligence.

Jeffrey Marc Silber: Yes, I guess, it's martine and thanks for the question.

Martine: So to your point build issuance was up 54, sorry, 45%, but that transaction revenue, which is the revenue portion of our revenue category that is most closely correlated to build issuance was up 54%. So what so it grew faster than build issuance in the quarter overall revenue growth of 29 <unk>.

Operator: Thank you. Our next question comes from Ashish Sabadra with RBC Capital Markets. Your line is open.

Adam J. Kansler: Thanks, Ashish, for the question. So we watch our recurring revenue growth very carefully. In this quarter, you know, we saw more than 7% growth in our recurring revenue. Some of that comes from volumes in our businesses that are affected by capital markets volumes. Over the years, we've sought to actually temper that a bit using more fixed contracts. Our customers in most of those markets prefer them. And for us, it adds a little bit more stability and regular growth to the business.

Jeffrey Marc Silber: <unk> represented both the transaction, we're going to go to the 54 and the non transaction revenue growth of 8%. So really just the evening out of the performance across those two to get to the 29% growth, perhaps I will just comment briefly on the non transaction growth drivers we were quite pleased with the performing.

Adam J. Kansler: Quarter to quarter, we'll see some variation in those numbers, but we do expect our recurring revenue, our subscription revenue, to continue to grow in line with our full year guidance for the division. Thanks again. Thanks, Ashish. Thank you. Our next question comes from Jeff Silber with BMO Capital Markets. Your line is open.

Jeffrey Marc Silber: In the quarter.

Jeffrey Marc Silber: We had a continued strength in rents out with.

Jeffrey Marc Silber: A lot of companies are looking for scenarios round.

Jeffrey Marc Silber: Apple stock Sweet sauce and a.

Jeffrey Marc Silber: New ICR issuance in the quarter and had a strong performance on the surveillance book and T programs. Thanks for the question.

Operator: Thank you so

Martina L. Cheung: Hi Jeff, it's Martina. Thanks for the question. So to your point, billed issuance was up 54, sorry, 45%, but transaction revenue, which is the revenue portion or revenue category that is most closely correlated to billed issuance, was up 54%. So it grew faster than billed issuance in the quarter. Overall revenue growth of 29% represented both transaction revenue growth of 54% and non-transaction revenue growth of 8%. So really just the evening out of performance across those two to get to the 29% growth.

Speaker Change: Thanks, Jeff.

Speaker Change: Thank you. Our next question comes from Scott Wurtzel with Wolfe Research. Your line is open.

Scott Darren Wurtzel: Hey, Good morning, guys wanted to ask just on the revenue synergies here I mean, it looks like it was a pretty strong quarter.

Scott Darren Wurtzel: And I think $56 million and then the run rate being pretty impressive here and in the context of you guys talking about recognizing 45% of synergies in 2024, I'm wondering how we should.

Scott Darren Wurtzel: You'd think about that number now that we seem to be tracking ahead. Barrett also just kind of wondering what's really resonating on the synergy side here. Thank you.

Martina L. Cheung: Perhaps I will just comment briefly on the non-transaction growth drivers. We were quite pleased with the performance in the quarter. We had continued strength in res with a lot of companies looking for scenarios around their capital stacks. We saw some new ICR issuance in the quarter and had strong performance on the surveillance book and fee programs.

Barrett: Thanks, Scott, Let me start and then I'll hand, it over to Adam when it comes to our tracking of the revenue synergies. It's something that we look at every quarter. We look at them, we actually looked at it when their executive Committee earlier. This week, we have a combination of cross sell as well as new products. We've been quite successful with cross sell its been are the most important aspect of what we've been doing.

Martina L. Cheung: Thanks for the question. Thanks, Jeff. Thank you. Our next question comes from Scott Wurtzel with Wolf Research. Your line is open. Hey, good morning, guys.

Adam J. Kansler: As you know we have a target of $350 million into the 'twenty five 'twenty six and we're already running ahead of our expectations for that especially because of cross sell when it comes to new products. We have been successful with many right out of the box with.

Operator: Thank you. Our next question comes from Scott Wurtzel with Wolf Research. Your line is open. Hey, good morning, guys. Why don't you...

Douglas L. Peterson: Thanks, Scott. Let me start, and then I'm going to hand it over to Adam.

Barrett: This sees with for.

Douglas L. Peterson: When it comes to our tracking of revenue synergies, it's something that we look at every quarter. We actually looked at it with our executive committee earlier this week. We have a combination of cross-sell as well as new products. We've been quite successful with cross-selling. It's been the most important aspect of what we've been doing. As you know, we have a target of $350 million for 2025-2026, and we're already running ahead of our expectations for that, especially because of cross-sell.

Barrett: For example, fixed income indices, we have a fixed income and fixed income VIX that we've come up with we have a set of fixed income products that we build around ESG. We've also had multi asset class products, but I think in market intelligence. We've also seen a lot of really really strong synergies. So let me ask Adam to supplement the answer. Thank you yeah. Thanks.

Barrett: Doug and thanks, Scott Hi, it's Adam.

Adam J. Kansler: We're very excited about our synergy progress we've got 15 more new products that will come to market in 2024. The combination of business is the strength that we have in the marketplace. The receptivity of our customers to what our combined offering and can do that's all been a tremendous uplift I think has given us given us the path to achieve.

Douglas L. Peterson: When it comes to new products, we've been successful with many right out of the box with indices, with, for example, fixed-income indices. We have a fixed-income VIX that we've come up with. We have a set of fixed-income products that we've built around ESG. We've also had multi-asset class products, but I think in market intelligence, we've also seen a lot of really, really strong synergies. So, let me ask Adam to supplement the answer. Thank you. Thanks, Doug, and thanks, Scott.

Barrett: <unk> the revenue synergy targets that we outlined I think what's most exciting for me and most exciting for our customers are the new products right, where we're able to integrate new datasets into workflow solutions or give customers in private markets. The ability to immediately look at public company Comparables.

Adam J. Kansler: The combination of businesses, the strength that we have in the marketplace, the receptivity of our customers to what a combined offering can do, that's all been a tremendous uplift. These are all things that will roll out over the course of 2024. As Doug mentioned, the cross sell has given us such an early wind in our sails to achieve the synergy targets we set out. As we start to roll out new products into the back half of this year, we're even more excited about what that will look like as we exit the year. Thanks, Scott. Thank you. Our next question comes from Shlomo Rosenbaum with Stiefel. Your line is open. Hi, thank you very much for taking my question. Hey Doug, maybe you could talk a little...

Barrett: To put our fixed income capabilities into our desktop. These are all things that rollout over the course of 2024 as Doug mentioned, the cross sells given us such early wind and ourselves you achieve the synergy targets, we set out as we start to rollout new products into the back half of this year, we're even more excited about what that will look like as we exit the year.

Speaker Change: Thanks Scott.

Speaker Change: Thank you. Our next question comes from Shlomo Rosenbaum with Stifel. Your line is open.

Shlomo H. Rosenbaum: Hi, Thank you very much for taking my question, Hey, Doug maybe you could talk a little bit about touch.

Shlomo H. Rosenbaum: Touch on both market intelligence and mobility, just talk about the sales cycles, what youre hearing from your on the ground guys.

Operator: Thank you. Our next question comes from Shlomo Rosenbaum with Stiefel. Your line is open. Hi, thank you very much for...

Shlomo H. Rosenbaum: Sequentially from last quarter, and then also year over year and has there been any change in the competitive landscape with some of the new products you've put in there. If you can kind of touch on those ideas I'd appreciate it.

Operator: Okay, great. Well, first of all, we've been out seeing our customers. As we mentioned in the prepared remarks, we've been seeing customers everywhere we can. We've been around the globe.

Speaker Change: Okay, great well first of all we've been announcing our customers as we mentioned in the prepared remarks, we've been out seeing customers everywhere. We can we've been around the globe I myself have been traveling extensively this year seeing customers as you know in the financial services market Theres been a little bit of a slowdown in sales cycles, we've talked about that in the past, which we've seen it.

Douglas L. Peterson: I, myself, have been traveling extensively this year seeing customers. As you know, in the financial services market, there's been a little bit of a slowdown in sales cycles. We've talked about that in the past, and we've seen that it just takes a little bit longer to close some transactions.

Shlomo H. Rosenbaum: It just takes a bit longer to close some transactions you've heard about that from us before in the mobility business. There is a massive transformation taking place in the entire industry. If you think about it you see that there's this electric vehicle transformation, that's taking place and what we've seen is it for whether youre an OEM your supplier, you're a dealer you need data and analytics.

Douglas L. Peterson: You've heard about that from us before. In the mobility business, there is a massive transformation taking place in the entire industry. If you think about it, you see that there's this electric vehicle transformation that's taking place. And what we've seen is that whether you're an OEM, you're a supplier, you're a dealer, you need data and analytics to understand what is happening in the market, and we provide that no matter what the sales cycle is, no matter what's happening in the industry.

Shlomo H. Rosenbaum: To understand what is happening in the market and we provide that no matter what the sales cycle is no matter whats happening in the industry. In addition to that we were providing new products for dealers for Oems for them to be able to make much more informed decisions. So as you've seen the mount of Evs have started to stock up in <unk>.

Douglas L. Peterson: In addition to that, we're providing new products for dealers, for OEMs, for them to be able to make much more informed decisions. So, as you've seen, the number of EVs has started to stack up in ports and on dealers' lots. It's something that we can provide them with much more information. The manufacturers can use that information to make decisions about how they're going to look at incentives going forward. So, it's a very close dialogue, a very good relationship with all sets of clients in every industry around the globe, and we're able to pivot very quickly to provide them the kind of data and analytics they need to make decisions. Thanks, Shlomo. Thank you. The next question comes from Craig Huber with Huber Research Partners. Your line is open. Great, thank you. On your AI investments, obviously...

Shlomo H. Rosenbaum: And on Dealers' lots, it's something that we can provide them much more information the manufacturers can use that information to make decisions about how they're going to look at incentives going forward. So it's a very close dialogue very good relationship with all sets of clients in every industry around the globe and we're able to pivot very quickly to provide them.

Shlomo H. Rosenbaum: The kind of data and analytics they need to make decisions.

Speaker Change: Thanks Shlomo.

Speaker Change: Thank you. Our next question comes from Craig Huber with Huber Research Partners. Your line is open.

Craig Anthony Huber: Great. Thank you.

Craig Anthony Huber: Your AI investments, obviously, you tuna to enhance.

Craig Anthony Huber: The products you have but also.

Craig Anthony Huber: Prove your ongoing efficiency of the company, which is already at a high level of stuff I'm curious as you guys think out over the next couple of years of internal investments spending but behind a are you been able to do it so far within your technology budget not a huge increase were puts downward pressure on your margins near term I'm. Just curious do you think you continue to have going forward here.

Operator: Thank you. Our next question comes from Craig Huber with Huber Research Partners. Your line is open.

Douglas L. Peterson: Thank you, Craig. As you know, when we've been looking at our artificial intelligence roadmap, it's something that we've been very explicit about going back many, many years. This isn't something new for us. It started with our acquisition of Kensho six years ago. Since then, we've come up with a very structured approach to AI, which starts with a vision and a strategy. We've recently put in place a leadership team that's led by a chief digital solutions officer and a chief artificial intelligence officer for the entire organization.

Speaker Change: Thank you Craig as you know when we've been looking at our artificial intelligence roadmap, it's something that we've been very explicit about going back. Many many years. This isn't something new for us It started with our with our acquisition of Kern show six years ago. We since then have come up with a very structured approach to AI, which starts with it.

Speaker Change: <unk> and our strategy. We've recently set in place a leadership team. That's led by a chief Digital Solutions Officer, a chief artificial intelligence offers officer for the entire organization, we have governance over that in the governance includes looking very cautiously and carefully at budget, we've already been absorbing AI expenses in our budget for the last.

Douglas L. Peterson: We have governance over that, and the governance includes looking very cautiously and carefully at the budget. We've already been absorbing AI expenses in our budget for the last six years. We're very conscious that rolling out an AI program is not inexpensive. It requires us to have that kind of discipline.

Speaker Change: Six years, we're very conscious that Doug Rolling out an AI program is not inexpensive it requires us to have that kind of discipline and we're also tracking our successes that we've had a lot of successes when it comes to new products, which we're starting to get it we're getting ready to rollout. We're looking at how we can have more productivity, we hope that over time.

Douglas L. Peterson: And we're also tracking our successes, and we've had a lot of successes when it comes to new products, which we're starting to get, and we're getting ready to roll out. We're looking at how we can have more productivity. We hope that over time, the productivity can be returned partially through margin but also be used as a way to reinvest in innovation and growth. So overall, I think the message you should take is that we have a very structured approach to AI.

Speaker Change: Productivity can be returned partially through margin, but also be using as a way to reinvest in innovation and growth. So overall I think the message you should take is that we have a very structured approach to AI. It's an open ecosystem. We can take advantage of all of the developments happening anywhere with any large language models coming out.

Douglas L. Peterson: It's an open ecosystem. We can take advantage of all of the AI developments happening anywhere, with any large language models coming out from anybody, and we're also protecting our data in a way that we can ensure that our intellectual property is not being used by others to build great AI products; we're going to do that ourselves. So overall, we're very pleased with our progress so far, and we really appreciate it. We'll continue to bring you a lot of our progress over time. So thanks, Craig. Thanks for that.

Speaker Change: From anybody and we're also protecting our data in a way that we can ensure that our intellectual property is not being used by others to build great products that we're going to do that ourselves. So overall, we're very pleased with our progress our progress so far.

Speaker Change: And we will really appreciate we continue to we'll continue to bring you a lot of our progress overtime. So thanks, Craig Thanks for that.

Operator: Thank you. Our next question comes from Jeff Meuler with Baird. Your line is open. Yeah, thanks.

Speaker Change: Thank you. Our next question comes from Jeff Miller with Baird. Your line is open.

Jeff Miller: Yes. Thank you so questions on market intelligence, I think you kind of heard the angst.

Operator: Yeah, thank you. So questions on market intelligence. I think you kind of heard the angst coming into the corridor from investors given the peer results. Adam, I was just hoping you could maybe highlight some of the MI businesses that are maybe more unique to S&P and how they're doing, or maybe highlight any businesses that have already gone through some pretty significant cyclical headwinds, like the IPRIO book building business or whatever, that just help with investor confidence regarding what's assumed over the remainder of the Thanks.

Jeff Miller: Quarter from investors given the peer results Adam I was just hoping you could maybe highlight some of the <unk>.

Jeff Miller: Businesses that are maybe more unique to S&P and how they're doing or maybe highlight any businesses that have already gone through some pretty significant cyclical headwinds like the IPO book building business or whatever to just help with investor.

Jeff Miller: Confidence regarding what's assumed over the remainder of the year through the cyclical trough margins. Thanks.

Adam J. Kansler: Yeah, thanks, Jeff. I appreciate the question. We do have a number of unique solutions and a pretty diversified set of solutions in the marketplace. So you do see dislocations in the market or volatility affect parts of our business differently than other parts of the business. You mentioned some of our capital markets platforms. Obviously, in the last quarter, those saw quite a lot of resilience. We saw very strong markets, particularly in credit and debt markets. Equity markets, I think, are still a little bit slower to recover, and we'll see what happens through the balance of the year.

Speaker Change: Yeah. Thanks, Jeff I appreciate the question.

Jeff Miller: We do have a number of unique solutions in a pretty diversified set of solutions to the marketplace. So you do see dislocations in the market or volatility affecting parts of our business differently than other parts of the business you mentioned some of our capital markets platforms. Obviously in the last quarter of those saw quite a lot of resilience we saw.

Jeff Miller: Strong markets, particularly in credit and debt markets equity markets I think are still a little bit slower to recover and we'll see we'll see what happens through the balance of the year.

Adam J. Kansler: Some of our unique offerings really are around alternative assets in the loan marketplace and private markets. These are places where our workflow solutions, our valuations capability, and reference data, we see that across the firm in other divisions as well. Those are areas that continue to build and areas where we see large secular growth. Those are somewhat unique offerings for us, given our market position in some of those businesses. Across our data and reference data, pricing, and valuations, those are in pretty steady demand.

Jeff Miller: Our unique offerings really around alternative assets and the loan marketplace in private markets. These are places where our workflow solutions are valuations capability referenced data we saw that across the firm.

Jeff Miller: In other divisions as well those are areas that continue to build and areas, where we see large secular growth those are somewhat unique offerings for us given our market positions in some of those businesses.

Jeff Miller: Across our data in reference reference data pricing valuations those are in pretty steady demand. So they are less subject to the activity in the marketplace quarter to quarter, and that's where we see some of the stability and the general growth.

Adam J. Kansler: So they're less subject to the activity in the marketplace quarter to quarter, and that's where we see some of the stability and general growth. What's really unique about the S&P Global offering is the scale and breadth that we can deliver to a customer. It's really being able to service them across a portfolio, from discovery and research for an investment to processing the investment, monitoring it, valuing it, and keeping it in a workflow tool.

Jeff Miller: What's really unique about the S&P global offering is the scale and breadth that we can deliver to a customer and it's really being able to service them across the portfolio from discovery and research foreign investment to processing the investment monitoring at valuing it keeping it in a workflow tool that set of solutions and the efficiencies we can draw.

Adam J. Kansler: That set of solutions and the efficiencies we can drive through them, I think that's the biggest part of our value proposition, and particularly for our larger customers as they look to consolidate relationships; that gives us a bit of an advantage there. Thanks again for the question, Jeff. Thanks, Jeff. Thank you. Our next question comes from Russell Quelch with Redburn Atlantic. Your line is open. Yeah, hi Doug. Another really good quarter in Commodity Insight. So I was wondering if you could share what drove the 14% growth.

Jeff Miller: <unk> through it and I think that's the biggest part of our value proposition and particularly our larger customers as they look to consolidate relationships that gives us a bit of an advantage there.

Speaker Change: Thanks again for the question, Jeff Thanks, Jeff.

Russell Quelch: Thank you. Our next question comes from Russell clubs with Redburn Atlantic Your line is open.

Russell Quelch: Yes, hi, Doug another really good culture and quality insight. So I was wondering if you could share what drove the 14% growth in price assessments and the first call it maybe new product related.

Russell Quelch: Early feedback on <unk> connect is helping drive more cross selling and perhaps is there upside risk to garden care I mean, obviously, you've upgraded guidance on some of the Transat.

Operator: Thank you. Our next question comes from Russell Quelch with Redburn Atlantic. Your line is open.

Russell Quelch: Transactional based revenue segments that this is maybe a higher quality revenue line. So is there a plug with scale.

Operator: Yeah, thank you for that, Russell. When you look at Commodity Insights, we've continued to advance incredibly well. This is one of the home runs when it comes to the integration of the ENR business and the Platts business. We've very quickly been able to bring together products like price assessments. Cross-sell has been strong. If you think about being able to sell ENR products to Platts clients, as well as selling Platts clients to ENR clients, so that was, right out of the gate, a very strong approach. We've also seen a high demand for energy transition, and we're at the sweet spot of energy transition. This relates to products like oil and gas, what are all of the different substitutes.

Speaker Change: Yes. Thank you for that Russell when you look at commodity insights. We've continued to advance incredibly well. We've had this is one of the homeruns when it comes to the integration of the <unk> business in the Platts business, we very quickly been able to bring together products like our price assessments cross sell has been strong as you'd think about being able to sell E&S.

Speaker Change: In our products to <unk> clients as well as selling plus clients senior clients. So that that was right out of the gate very strong approach, but we've also seen a demand high demand for energy transition and we're at the sweet spot of energy transition. This relates to products like our oil and gas what are all of the different substitutes it's al.

Douglas L. Peterson: It's also the carbon intensity of oil and gas products. It goes into renewables, looking at what's happening in the renewable space. We also have a whole set of new clean energy and alternative energy products and services. As you know, we've been launching an additional set of products related to metals and mining, as well as agriculture.

Speaker Change: Also carbon intensity of oil and gas products. It goes into renewables looking at what's happening with the renewable space. We also have a whole set of new clean energy and alternative energy products and services as you know we've been launching an additional set of products related to metals and mining as well as egg so across the board we've seen very.

Douglas L. Peterson: Across the board, we've seen very strong results. We also had a strong quarter for Sara Week, which is a conference that took place in Houston a few weeks ago. It's the place to be for anybody that wants to understand what's happening in the energy space.

Speaker Change: Strong results. We also had a strong quarter for Cerro week, which is the cera week as a conference that took place in Houston, a few weeks ago. It's the place to be for anybody that wants to understand what's happening in the energy space. So across the board. It's just been very very strong. This year. We do expect that later in the year, we're gonna have tougher comps so we.

Douglas L. Peterson: Across the board, it's just been very, very strong this year. We do expect that later in the year, we're going to have tougher comps. We looked at that very carefully as we were setting our guidance. Last year, our third and fourth quarter, especially our fourth quarter, was quite strong. So we do get towards the end of the year, and we do have a tougher comp.

Speaker Change: We looked at that very carefully was we're setting our guidance last year, our third and fourth quarter, especially our fourth quarter was quite strong. So we do get towards the end of the year and we do have a tougher comp, but overall the commodity insights business is doing incredibly well, it's a broad based business and then something like what you mentioned platts connect has been one of the examples of.

Douglas L. Peterson: But overall, the commodity insights business is doing incredibly well. It's a broad-based business, and then something like what you mentioned, PlattsConnect, has been one of the examples of a really early win and something that we're very pleased with. And you'll see more coming from PlattsConnect over the next few quarters.

Speaker Change: Of a really early win and something that we're very pleased with and you'll you'll see more coming from platts connect over the next few quarters.

Douglas L. Peterson: Thanks, Russell. Thanks for the question. Thank you. Our next question comes from George Tong with Goldman Sachs. Your line is open.

Speaker Change: Russell Thanks for the question.

Speaker Change: Thank you. Our next question comes from George Tong with Goldman Sachs. Your line is open.

Operator: Hi, thanks, and good morning.

George K. Tong: Hi, Thanks, good morning.

George K. Tong: Your updated indices guidance can you talk about how much of the growth comes from flows versus market performance and what you're seeing from a pricing and mix perspective from customers.

Mark Grant: Hey George, this is Mark. The updated guidance on indices is really driven just by strength across that business, but just giving you the underlying assumptions for the full-year guide, we're expecting the S&P 500 to be essentially flat from 331 through the end of the year. The guidance assumes modest growth in ETD volumes, and then we are expecting that subscription line to accelerate a little bit as we progress through the full year.

George K. Tong: Hey, George this is mark.

Mark Grant: Dated guidance on indices, Israeli driven just by strength across that business, but just giving you the underlying assumptions for the full year guide, we're expecting the S&P 500 to be essentially flat from $3 31 through the end of the year. The guidance assumes modest growth in the E. T. D volumes and then we are expecting that subscription line to accelerate a little bit as we.

Mark Grant: <unk> through the full year.

Mark Grant: Thanks, George. Thank you. Our last question comes from Owen Lau with Oppenheimer. Your line is open. Good morning, and thank you for choosing my question.

Speaker Change: Thanks George.

George K. Tong: Thank you our last question comes from Owen Lau with Oppenheimer. Your line is open.

Owen Lau: Good morning, and thank you for taking my question. So just a quick follow up on commodity insights and there are lots of conversation about commodities trading growing our U S customers and the prices go and things like that.

Operator: Thank you. Our last question comes from Owen Lau on behalf of Oppenheimer. Your line is open.

Owen Lau: Does this volatility control bill to your business this year and if this kind of volatility supply how do you see the sustainability of that growth. Thanks.

Operator: Thanks, Owen. Yeah, we think that volatility is something that helps drive more people to try to understand what's happening in the markets. But, as we've seen over time, the volatility doesn't seem to go away. There's always something else that comes up to create interest in the area.

Speaker Change: Thanks, So yeah, we think that that volatility is something that helps drive more people to try to understand what's happening in the markets, but as we've seen over time the volatility doesn't seem to go away. There's always something else that comes up to create interest in the area. We do think that there are some very important long term secular trends.

Douglas L. Peterson: We do think that there are some very important long-term secular trends related to the business, which are the energy transition. As I mentioned earlier, energy transition is a topic that is on everybody's minds, especially when you go outside of the United States. I've been traveling this year, and I can't have a conversation anywhere I go without having discussions about energy transition and what are not just the impacts that we see that benefit the commodity insights business but also those that benefit businesses like the ratings business and market intelligence, because those are moving also over into how do you finance the energy transition question as well, which crosses into our other divisions.

Owen Lau: <unk> are related to the business, which are energy transition I mentioned earlier energy transition is a topic that is on everybody's minds, especially when you go outside the United States I've been traveling this year and I can't have a conversation anywhere I go without having discussion about energy transition what are not just that impacts it.

Owen Lau: We see that benefit the commodity insights business, but also those that benefit businesses like the ratings business in market intelligence because those are moving also over into how do you finance energy transition question as well, which crosses into our other divisions. Finally with commodity insights you can recall that this business is principally a subscription based <unk>.

Douglas L. Peterson: Finally, with commodity insights, you can recall that this business is principally a subscription-based business, and so we can see over time the subscription flow, where we're seeing the growth coming from, and the new customers coming into the portfolio. There's something that I say all the time that every single company is an energy company. It doesn't matter what you do.

Owen Lau: And so we can see over time, the split subscription flow, where we're seeing the growth coming from the new customers coming into the portfolio. There is something that I say all the time that every single company is an energy company. It doesn't matter. What you do you have an energy company and so we also see an expanding set of new clients that aren't necessarily traditional <unk>.

Douglas L. Peterson: You're an energy company. And so we also see an expanding set of new clients that aren't necessarily traditional energy companies that are needing the solutions we have so they can manage their own energy footprint. So, Owen, thank you very much for that, and I think you are on the last call, so let me give a couple of closing remarks. I really want to thank everyone today for being on this call and for your excellent questions, as usual.

Owen Lau: Companies that are needing the solutions, we have so they can manage their own energy footprint.

Speaker Change: So Owen thank you very much for that.

Owen Lau: I think you are the last call. So let me give a couple of closing remarks, I really want to thank everyone today for being on this call and for your excellent questions. As usual this was a great quarter and we're really pleased with the results and we think this validates our strategy, but it also showcases our execution.

Douglas L. Peterson: This was a great quarter, and we're really pleased with the results, and we think this validates our strategy, but it also showcases our execution. As I mentioned, I've been very busy traveling around the world this year speaking with customers across all of our businesses and from every industry, and in those meetings, we're hearing that the themes that we have, that we have the strength in this franchise are those that the customers need going forward, and that includes things like energy transition and private markets and supply chain and credit and risk, but it also includes artificial intelligence, and I'm pleased that we've been able to roll out in our roadmap many, many new capabilities and products and services to protect our IP, but also to take a leadership position in AI.

Speaker Change: As I mentioned I've been very busy travelling around the world. This year speaking with customers across all of our businesses and from every industry and in those meetings were hearing that the themes that we have that we have the strength in this franchise or those that the customers need going forward and that includes things like energy transition in private markets in <unk>.

Speaker Change: Apply chain in credit and risk, but it also includes artificial intelligence and I'm pleased that we've been able to rollout in our roadmap and many many new capabilities and products and services to protect our IP, but also to take a leadership position in AI I want to thank Martina and Adam for providing their perspectives today on this calls and I also want to thank our pea.

Douglas L. Peterson: I want to thank Martina and Adam for providing their perspectives today on this call, and I also want to thank our people across the company, as usual, for a fantastic quarter. And again, thank all of you for joining the call today, and I hope you have a great day. Thank you very much.

Speaker Change: People across the company as usual for a fantastic quarter and again. Thank all of you for joining the call today and hope you have a great day. Thank you very much.

Operator: That concludes this morning's call. A PDF version of the presenter slides is available for downloading from investor.spglobal.com. Replays of the entire call will be available in about two hours. The webcast with audio and slides will be maintained on S&P Global's website for one year. The audio-only telephone replay will be maintained for one month. On behalf of S&P Global, we thank you for participating and wish you a good

Speaker Change: Yes.

Speaker Change: That concludes this morning's call a PDF version of the presenter slides is available for downloading from Investor Dot S. P. Global Dot com replays of the entire call will be available in about two hours.

Speaker Change: Webcast with audio and slides will be maintained on S&P Global's website for one year. The audio only telephone replay will be maintained for one month on behalf of S&P Global we thank you for participating and wish you a good day.