Q1 2025 S&P Global Inc Earnings Call
Good morning, and welcome to S&P Global's first quarter 2025 earnings conference call.
I would like to inform you that this call is being recorded for broadcast.
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Speaker Change: I would now like to introduce Mr. Mark Grant Senior Vice President of Investor Relations for S&P Global Sir you may begin.
Speaker Change: Good morning, and thank you for joining today's S&P Global first quarter 2025 earnings call presenting on today's call are Martina Cheung, President and Chief Executive Officer, and Eric <unk> Chief Financial Officer.
Speaker Change: 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.
Speaker Change: We also issued a release announcing the company's intent to separate its mobility division into a standalone public company that release can also be found at Investor day that speak about both dot com.
Speaker Change: 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.
Speaker Change: 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 additional information.
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.
Speaker Change: 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.
Speaker Change: The earnings release contains financial measures calculated in accordance with GAAP that correspond to the non-GAAP measures, we are providing and the press release and the supplemental deck contain reconciliations of such GAAP and non-GAAP measures.
Speaker Change: The financial metrics will be discussing today refer to non-GAAP adjusted metrics unless explicitly noted otherwise.
Speaker Change: I would also like to call your attention to certain European regulation, 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.
Speaker Change: 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 press release at this time I would like to turn the call over to Martina Cheung Martina.
Martina Cheung: Thank you Mark.
It's pretty global had a solid first quarter with strong growth in all five of our divisions total revenue increased 8% year over year and revenue from our subscription products increased 7%.
Martina Cheung: We continued to demonstrate disciplined execution driving year over year margin expansion of 240 basis points on a trailing 12 month basis and 9% growth in adjusted diluted EPS.
Martina Cheung: We also continued our strong track record of capital allocation, returning over $900 million to shareholders in the first quarter through dividends and repurchases in.
Martina Cheung: In addition to our strong financial results, we are acting decisively in our portfolio optimization efforts.
Martina Cheung: As announced earlier this month, we have signed a definitive agreement to divest the <unk> joint venture to KKR, which we expect to close in the second half of this year.
Martina Cheung: As we'll discuss in more detail. Shortly we have also announced the intent to separate the mobility division as S&P global into a Standalone public company, we expect the separation to be tax free and to be completed in 12 to 18 months.
Martina Cheung: We continue to innovate not just in our products themselves, but in how we bring those products to market and how we engage with our customers. We are encouraged by the early indications from our chief client officer as well as the continued momentum of new products and services introduced in the first quarter.
Martina Cheung: Lastly, we plan to host an investor day in November.
Martina Cheung: In November we expect to have made significant progress on the planned separation of mobility and we look forward to providing a refresh view of the multi year strategy for S&P global at that time.
Martina Cheung: Now turning to what we're seeing in the markets and starting with build issuance.
Martina Cheung: Build issuance increased 9% year over year in the first quarter.
Martina Cheung: Drink and build issuance was driven by structured finance in bank loans, while we've continued to see spreads widen year to date. They are still below historical norms and issue we saw an attractive window to issue debt in the first quarter.
Martina Cheung: We expect bill issuance to moderate from Q1 levels for the remainder of 2025, and we have already seen declines in April.
Martina Cheung: We believe some of the strength in Q1, particularly in investment grade was driven by the pull forward of some issuance to get ahead of April we.
Martina Cheung: We expect the tariff discussion and related market volatility is likely leading to some pushback of issuance as well.
Martina Cheung: Of which put pressure on issuance volumes in the near term.
Martina Cheung: As we look at the broader macro and commercial conditions. It's clear that we are going through a phase of unpredictable market movements geopolitical risks and fluidity and the regulatory landscape.
Martina Cheung: It is also clear to us at S&P global that our customers need us more in times like these not less.
Martina Cheung: In the first quarter, we saw a significant increase in engagement with our platforms active users across crops like hue platforms, perhaps connect and automotive mastermind increased on average 23% year over year in the first quarter and we've continued to see strong engagement through April.
Martina Cheung: Our customers are looking for insights data and tools to help them navigate and S&P global is a destination of choice for decision makers around the world.
Martina Cheung: We also saw record attendance at two of our marquee conferences in the first quarter.
A week widely considered the world's preeminent energy conference had over 10000 attendees, including government officials and 1600 C suite executives and board of directors.
Martina Cheung: For over 40 years, the energy industry has gathered at cera week to confront some of the biggest challenges facing the world.
Martina Cheung: This year was particularly impactful as we saw business theaters and government officials take advantage of our platform to make major product strategy and policy announcements from Mr week stage.
Martina Cheung: We also had record attendance at our Premier shipping and Logistics Conference P. P. M 25 more.
Martina Cheung: More than ever customers need insights into how to effectively manage logistics and supply chain and it was encouraging to see so many industry leaders gather under the S&P global banner to share ideas and insights on navigating the current environment.
Martina Cheung: We know it's not enough to wait for our customers to come to us. So we have continued our proactive outreach to customers through our global commercial teams in conjunction with the Chief client officer.
Martina Cheung: Like many of the individuals on this call our customers are facing variables that are increasingly difficult to predict week to week.
Martina Cheung: We are seeing a slowing pace of decision, making in the market as compared to our initial expectations.
Martina Cheung: Well, we and many others expected some improvement in the M&A environment. Many of our customers are less confident in both the timing and the magnitude of that recovery this year.
Martina Cheung: We consistently hear about the pent up demand and we maintained strong optimism and the long term, but many customers are trying to stay flexible and preserve optionality in the very near term we.
Martina Cheung: We benefit however from the resilience of our business mix with recurring revenue accounting for approximately 75% of our total revenue.
Martina Cheung: We aren't overly reliant on market driven factors for our results in any given year.
Speaker Change: Market volatility. He can also benefit areas of our business as you can see in the results of our E T D business and indices and global trading services business and commodity insights.
Speaker Change: These derivative products built on the IP of S&P Global's index and commodity divisions are crucial to procurements hedging and other strategies that the heightened demand in periods of volatility.
Speaker Change: Many of our products are mission critical for our customers with annual and multi year contracts, providing additional stability for our business through the cycle.
Speaker Change: Even within our ratings business nearly half of our revenue comes from non transaction revenue, which is more stable predictable and consistent in its growth during volatile periods.
Speaker Change: Despite the near term headwinds facing issuance, we expect continued growth in our non transaction business in 2025.
Speaker Change: That said there are a number of market factors that can have incremental impact on our business in the near term.
Speaker Change: And its importance pay close attention to how these factors are evolving over the year.
Speaker Change: Even with a very strong portfolio of market, leading products and services, we acknowledge the broad market factors like trade conflict and supply chain risks as well as the evolving geopolitical landscape.
Speaker Change: These things make it more challenging to foresee or plan for central bank actions or the level of capital markets activity that may take place in 2025.
Speaker Change: As we look to the global markets, we continue to see secular trends that will benefit S&P global like the continued shift from active to passive management and energy transition.
Speaker Change: For 2025, specifically, we expect asset prices and the equity markets as well as the mix of investment grade versus high yield in the near term maturity walls to be modest headwinds relative to our initial outlook.
Speaker Change: However, we continue to see other factors like the timing of issuance market volatility and the fluidity of regulatory actions as having positive impacts on parts of our business and modestly negative impacts on others.
Speaker Change: The base case assumptions underpinning our outlook for 2025 reflect the changes we've seen in the environment since February.
Speaker Change: We originally assumed 3% global GDP growth and two 3% U S inflation.
Speaker Change: Our current view is that GDP growth will be lower than that forecast that we do not assume a recession.
Speaker Change: We also expect inflation to be a bit higher than originally assumed in our guidance.
Speaker Change: We expect crude oil prices to average in the low seventies for the year slightly above the levels. We're seeing now, though we do expect volatility in the coming quarters.
Speaker Change: We've had a strong start to the year for build issuance, but since the end of Q1, we have seen market volatility suppressing volumes, particularly in high yields and we expect second quarter issuance to decline double digits year over year before returning to more or less flat growth in the second half.
Speaker Change: As such we now expect build issuance to be approximately flat year over year compared to our initial outlook of low single digit growth.
Speaker Change: Maturity walls for the remainder of 2025, and 2026 are still 3% to 5% higher than corresponding walls were a year ago, but our build issuance assumptions now call for M&A volumes to be flat year over year.
Speaker Change: Impaired to prior assumptions of modest improvements from 'twenty to 'twenty four.
Speaker Change: We still see potential for one or more rate cuts from the U S foods in 2025.
Speaker Change: As we highlighted last quarter, there is a range of potential outcomes beyond our base case assumptions, but we continue to reflect our current thinking and plan to update and refine as we move through the year.
Speaker Change: All of these things are factored into the guidance as Eric will share with you in a moment.
Speaker Change: One of the reasons S&P global is able to deliver strong financial results through the cycle is our commitment to continued innovation and customer value.
Speaker Change: The first quarter included some important innovations endesa benchmarks and artificial intelligence we.
Speaker Change: We integrated visible off of data as an add on module in capital IQ probe and we were thrilled that the team was able to get this important integration completed and ready for customers a full quarter ahead of schedule.
Speaker Change: We are also very excited to discuss the launch of eye level automation data ingestion.
Speaker Change: This joint innovation between our market intelligence and kinship teams creases in AI powered tools that can pull in data from structured and unstructured sources tag that Asia appropriately and Lotus into Idaho.
Speaker Change: This makes it faster and easier for customers to manage increasingly complex portfolios across private equity and private credits.
Speaker Change: Just as importantly, this tool was developed in a way that lets us leverage its capabilities and other products and even in our own internal workflows like our CRM.
Speaker Change: It's a great example of our cross divisional teams, creating scalable technology, that's built once and deployed everywhere.
Speaker Change: We also introduced important benchmarks in our fixed income indices franchise, including a first of its kind fixed income index in Europe, utilizing rolling fixed maturity credits.
Speaker Change: In Platts, we introduced new commodity benchmarks, and Biofuels fertilizers chemicals and metals we.
Speaker Change: We encourage you to look through the coarsely release notes to see the continued rapid pace of new products and content and commodity insights.
Eric: Turning to our financial results Eric.
Eric will walk through the first quarter results in more detail in a moment, but we have had an impressive start to 2025, we saw strong growth in every division and 100 basis points of margin expansion in the quarter trailing 12 month margins improved 240 basis points to a record 49, 3%.
Eric: Now turning to the Big announcement, we made this morning.
Eric: We're excited to announce today, our intent to spin S&P Global's mobility division into a Standalone public company.
Eric: We believe the separation will maximize shareholder value by enhancing S&P global strategic focus, while creating a scaled and independent mobility business.
Eric: This decision is a result of a lengthy and very robust internal analysis and the board and management team are unanimously aligned that this is the right course of action to create value for our shareholders.
Eric: Looking at the financials of both S&P Global's core businesses and S&P Global mobility, we see the both have very attractive profiles S&P Global's four core businesses market intelligence Racing's commodity insights and S&P Dow Jones indices generated nearly $13 billion in revenue.
Eric: <unk> in 2024, and an adjusted operating margin of approximately 50%.
Eric: Mobility generated $1.6 billion at an adjusted operating margin of nearly 40%.
Eric: Businesses have a history of innovation growth discipline and strong competitive positioning and.
Eric: And we expect that to continue following the separation.
Eric: We believe the separation will create some significant advantages for S&P logo going forwards.
Our four core divisions have similar characteristics, similar customer profiles and greater ability to share technological and data resources across them.
Eric: Our leadership team will be better able to focus attention energy and resources to accelerate product development and deepen customer relationships, while executing against a more unified and cohesive strategy.
Eric: We're excited to share more about that multiyear strategy at our Investor day, which we plan to host in New York on November 13th.
Eric: As a standalone public company, we believe the mobility business will also be better able to execute its long term growth strategy independent of the priorities of S&P global.
Eric: Mobility will be a well capitalized company with strong well known brands like car Fox automotive mastermind market scan and pokes.
Eric: As our analysts and shareholders know mobility has incredible data and technology assets, creating significant customer value for dealerships automotive Oems and part suppliers as well as finance and insurance companies.
Eric: We've seen significant growth in the users of <unk> car care now serving over 46 million consumers leveraging more than 35 billion vehicle history Records.
Eric: The vehicle history forecasting pricing and incentive data of the mobility business served 100% of the top automotive Oems, 94% of the supplier Marcus and includes approximately 72 million lines of monthly forecast.
Eric: This data and technology is deeply entrenched in the workflows of mobility customers, creating a very strong competitive most and positioning the business well for profitable long term growth.
Eric: We are particularly encouraged by the resilience of this business has demonstrated through the cycle.
Eric: We acknowledge the additional attention to the automotive space. During these times of trade conflict and supply chain disruption, but we remain very confident in the long term growth of the mobility business.
Eric: The secular trends around EV transition the autonomous and software defined vehicles shifts in the sales motion of new vehicles and continued growth in the used car markets all have the potential to increase the demand and addressable market at this business.
Eric: With more than 70% of mobility revenue tied to the used car markets and more than 80% of revenue coming from subscription products. We remain confident that despite some of the end market challenges among automotive manufacturers. The mobility business is largely insulated from direct impact.
Eric: We expect both companies to be well capitalized and we will provide the details around capital structure and capital allocation as the transaction progresses.
Eric: We expect the transaction to qualify as tax free to shareholders for U S federal tax purposes.
Eric: We anticipate the process, taking between 12, and 18 months and will be subject to market conditions and the satisfaction of customary regulatory approvals.
Eric: We are committed to keeping investors up to date as we move through this process and investors can expect a number of milestones over the next 12 to 18 months.
With that I'll turn the call over to Eric <unk>, our new CFO to review the financial results, Eric welcome to the call over to you.
Eric: Thank you Martina and good morning, everyone I'm delighted to be joining from my very first earnings call here at S&P global and especially pleased to be able to talk through such strong results this quarter.
Speaker Change: Starting with slide 18, you'll see on the left panel that we delivered a very strong start to 2025 with solid growth in every division and 9% organic constant currency revenue growth for the company.
Speaker Change: Revenue growth of 8% and expense growth of 6% allowed us to deliver 100 basis points of margin expansion year over year, and 9% and adjusted diluted EPS growth.
Martina Cheung: As Martina mentioned earlier, we continue to engage proactively with customers across the board this quarter, while maintaining strict discipline on expenses.
Martina Cheung: That focus and execution helped us to deliver a strong first quarter and also positions us well to deliver strong results for the rest of 2025.
Martina Cheung: Slide 19 illustrates the progress we continue to make in key strategic growth areas.
Martina Cheung: Sustainability and energy transition revenue grew 20% to $93 million in the quarter driven by strong demand for commodity insights energy transition products and data and insights for market intelligence. We continue to see very strong demand for our sustainability offerings in all divisions, and so a number of competitive wins in the quarter, especially around our physical risk.
Martina Cheung: Solutions.
Martina Cheung: Moving to private markets revenue increased by 21% year over year to $140 million growth was driven by debt and bank loan ratings as well as continued strength in high level and other private market solutions within market intelligence.
Martina Cheung: Private credit continues to be a significant driver of growth for us and we continue to see strong demand for an S&P global rating on that whether it is issued in the public or the private markets.
Martina Cheung: We're also nearing the finish line on a revenue synergies, we exited the first quarter with run rate revenue synergies of $311 million and remain ahead of pace to achieve our target of $350 million by 2026.
Martina Cheung: Finally, we are pleased that we continue to deliver a vitality index at or above our 10% target in.
Martina Cheung: In the first quarter, we saw contributions from new and enhanced products. In every division and are pleased to see both financial impact of the product investments we've made in recent years.
Martina Cheung: Turning to our divisions.
Martina Cheung: Market intelligence revenue increased 5% in the first quarter was a net impact of acquisitions and divestitures, creating a roughly 30 basis point headwind to growth.
Martina Cheung: Revenue from our data analytics and insights products accelerated on both a reported and an organic basis in the first quarter to 7% and 4% year over year, respectively.
Martina Cheung: First quarter revenue in the business line includes the net contribution from durable Alpha less the lost revenue from the crime one divestiture.
Martina Cheung: Enterprise solutions benefited from an increase in issuance volumes in the debt and equity capital markets as well as strong growth in subscription products.
Martina Cheung: Reported revenue growth of 1% includes the impact of $21 million Simpson centric revenue in the year ago period, excluding that impact organic growth was 8% year over year.
Martina Cheung: Credit and risk solutions grew 6% supported by strong new sales and price realization, particularly for ratings Express subscriptions.
Martina Cheung: Consistent with the commentary we made during our last call margins were below the full year guidance range in the first quarter, but actually came in slightly better than we initially expected based on some tight expense controls we put in place to start of the year.
Martina Cheung: Margins of 32, 8% improved slightly year over year.
Martina Cheung: We expect some modest improvement in the quarterly revenue growth rates in 2025, as we progress through the year, we see strong growth in the sales pipeline and stable renewal rates and we expect both of those dynamics to continue as we lap more of the cancellations from 2024.
Martina Cheung: We're also encouraged by the continued momentum we're seeing in our competitive win rates and market intelligence as our enterprise approach continues to resonate with more and more customers.
Martina Cheung: Now turning to ratings on slide 21.
Martina Cheung: As Martina mentioned earlier, we saw issuers take advantage of favorable financing conditions and open market windows to drive growth in issuance volumes in the first quarter.
Martina Cheung: Q1 was actually the fifth consecutive quarter of more than $1 billion in revenue for our ratings division.
Martina Cheung: <unk> revenue increased 8% year over year as we saw positive growth across all revenue categories.
Martina Cheung: Transaction revenue grew by 7% in the first quarter as heightened refinancing activity increased bank loan construction finance fees.
Martina Cheung: Non transaction revenue increased 10%, primarily due to an increase in annual fee revenue and elevated issuer credit rating or ICR revenue.
Martina Cheung: Importantly, much of our growth in ICR came from private market mandates as more and more participants in the private markets are looking to capture the value that comes through in S&P global ratings.
Martina Cheung: Given the pullback we've seen in April issuance volumes, we do expect build issuance to be down low double digits in the second quarter and flattish in the second half.
Martina Cheung: This will primarily impact the cadence of transaction revenue, while non transaction revenue continues to grow at a healthy pace each quarter.
Speaker Change: As Martina mentioned earlier, we benefit from a strong base of non transaction revenue in our ratings business and we expect non transaction revenue to grow faster than transaction revenue in a year like 2025 that provide some additional stability to our ratings business through the cycle.
Speaker Change: Adjusted expenses increased only 4% in the quarter, we continue to actively monitor the issuance environment and managed expense levers in our market driven businesses tightly to preserve margins and ensure we're positioned to deliver against our profitability targets, we set out for 2025.
Now turning to commodity insights.
Speaker Change: Revenue increased 9% following the sixth consecutive quarter of double digit growth in energy and resource data insight.
Speaker Change: Rice assessments and data and insights grew 8% and 10% respectively. We continue to see commercial momentum as we transition more customers to enterprise contract relationships.
Speaker Change: We have approximately one quarter of the way through the eligible customer base in that transition and expect to be nearly halfway through by year end.
Speaker Change: Advisory and transactional services revenue grew 19%.
Martina Cheung: As Martina noted earlier times of volatility and uncertainty drive increased demand for a number of our products and we saw this positive impact in the first quarter.
Martina Cheung: We had a record quarter in global trading services and record attendance at Cerro week, both of which contributed to the outsized growth we saw it here too.
Martina Cheung: Upstream data and insights revenue grew by 1% year over year with growth tempered by somewhat elevated cancellations due to the customer consolidation we've seen in the energy space.
Martina Cheung: We expect that consolidation to impact upstream a bit more in the remaining quarters of 2025.
Martina Cheung: Adjusted expenses increased 8% due to higher compensation costs and ongoing investment in growth initiatives.
Martina Cheung: Operating profit for commodity insights increased 11% and operating margin improved by 90 basis points to 48, 1%.
Martina Cheung: Now turning to mobility revenue increased 9% year over year, but this includes a roughly 70 basis point headwind from currency impacts largely due to exposure to the Canadian dollar.
Martina Cheung: Dealer revenue increased 11% year over year, driven by new business growth in products, such as carfax and automotive mastermind.
Martina Cheung: Dealer revenue benefits from its higher exposure to the used car market, which is generally more resilient through the cycle and the new car market.
Martina Cheung: Are you factoring increased 1% with growth impacted by the decline in the transaction revenue related to the recall business.
Martina Cheung: As a reminder, we began calling out the impact of the decline in recalls earlier last year, and we'll lap that impact beginning in the second quarter.
Martina Cheung: Financials, and other increased 11% as the business line continues to benefit from strong underwriting volumes and commercial momentum.
Martina Cheung: Adjusted expenses increased 8% due primarily to the increased advertising and promotional investment that investment has helped drive significant growth and <unk> car care, which now has approximately 46 million users and nearly 65% increase since our investor day in 2022.
Martina Cheung: Margins for the segment improved 40 basis points year over year to 38, 5%.
Speaker Change: Now turning to S&P Dow Jones indices.
Speaker Change: Revenue increased 15%, primarily due to strong growth in asset linked fees, which benefited from higher AUM and continued strength in exchange traded derivative revenue.
Speaker Change: Revenue associated with asset linked fees was up a strong 18% in the first quarter.
Speaker Change: This was driven by higher ETF and mutual fund AUM benefiting from both market appreciation and net inflows.
Speaker Change: As a reminder, there is a slight delay in revenue recognition in our asset linked fees, which allows us to continue benefiting from higher equity valuations. We saw during the fourth quarter of last year, we do expect growth in asset linked fees to moderate in <unk> and beyond given the declines we've seen in market valuations since we gave our initial guidance.
Speaker Change: Exchange traded derivatives revenue grew 11%, primarily driven by the strong volumes in SPX products and price realization.
Speaker Change: Data and custom subscriptions increased 7% year over year, driven by new business growth in the end if they contract with mid teens growth in the quarter Rev.
Speaker Change: Revenue from custom subscriptions, however, somewhat offset the very strong growth in NSA contracts.
Speaker Change: Adjusted expenses increased 15% year over year, primarily due to increased investments in strategic growth initiatives as well as an increase in compensation expense.
Speaker Change: Indices operating profit increased 15% and operating margin remain unchanged year over year at a very strong 72, 9%.
Speaker Change: Now turning to guidance.
Speaker Change: Given our new debt issuance expectations and the current equity market levels Slide 25 outlines our enterprise guidance on a GAAP and adjusted basis.
Speaker Change: We are now expecting total revenue growth in the range of 4% to 6% with adjusted margins in the range of $48 five to 49, 5%.
Speaker Change: We remain confident in our ability to deliver solid revenue growth strong margins and growth in adjusted EPS. This year.
Speaker Change: As I'll discuss on the next slide we do expect slightly lower growth in ratings and indices are two market driven and highest margin businesses, but we plan to manage expenses. So that we can preserve margin guidance in all five divisions. This year.
Speaker Change: However, due to the planned closing of the Austro Sal later this year, we will see slightly lower operating income with no corresponding revenue impact, which will directly impact margins for the year, the Australian packed and the mix shift in revenue are the primary drivers for the change to our enterprise margin guidance.
Speaker Change: We expect to use the proceeds for most rough for additional share repurchases, which will offset much of the EPS impact.
Speaker Change: And our discipline on both expenses and strong capital returns allows us to keep the high end of our EPS guidance intact.
Speaker Change: Given the market volatility and variability in our market driven businesses, we think it's prudent to widen the range a bit and now expect adjusted diluted EPS in the range of $16 75 to.
Speaker Change: To $17.25.
Speaker Change: Moving to our division outlook, our revenue guidance for market intelligence is unchanged.
Speaker Change: Our ratings based on our current expectation for flattish build issuance. This year, we expect revenue growth to be flat to up 4% slightly lower but also slightly broader range compared to our previous guidance.
Speaker Change: Revenue guidance for commodity insights and mobility are also unchanged.
Speaker Change: For indices, we've obviously seen the market pullback, particularly in U S equities since we gave our initial guidance give.
Speaker Change: Given that pullback, we now expect revenue growth in the range of 5% to 7%.
Speaker Change: This guidance assumes the S&P 500 is flat from April 15 through the end of the year modest growth in ETD volumes and subscription growth similar to what we saw in the first quarter.
Speaker Change: On the next slide we are reiterating the margin outlook for all five of our divisions.
Speaker Change: While we do expect somewhat lower revenue in ratings and indices, we expect to offset that impact with expense discipline and modest adjustments to incentive compensation.
Speaker Change: We have multiple levers that we can pull as needed this year and we've proactively identified and prioritized those we want to make sure we're prudent and don't pull them too early or too aggressively, though and preserve our ability to invest in the important revenue growth opportunities we see over the next few years.
Mark Grant: With that I'll turn the call back over to Mark for your questions.
Mark Grant: Thank you Eric 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.
Mark Grant: Participants will be limited to one question in order to allow time for others during today's Q&A session opt.
Speaker Change: Operator, we will now take the first question.
Mark Grant: Thank you.
Speaker Change: Our first question comes from MS. Toni Kaplan of Morgan Stanley. Your line is open.
Toni Kaplan: Thanks, so much and congratulations on the mobility announcement I was hoping you could just give some color on timing. So why now and then maybe the implications for remain co are there any datasets that you'll continue to try to license from the spun entity wants that.
Speaker Change: It happens and then I know, it's early but any initial thoughts on dis synergies. Thanks.
Martino: Hi, Toni it's Martino thanks for the question.
Martino: As I mentioned during the prepared remarks. This is something that we have been thinking about very deeply for some time we've.
Martino: We've done an incredibly deep and rigorous assessment, including multiple rounds of dialogue around around this with our board of directors and consulting with our external advisors. On this also so we've come to the conclusion that this is the best path to long term shareholder value.
Martino: And and not the tax free spin here is the right path forward for US I would say, we certainly would have more details with respect to datasets are that we would license at this point, we're very much in the mode of business as usual and continuing to focus while the processes are running in the background.
Martino: And Toni it's a it's Eric we've obviously done an initial look at the at the financials. As you can expect the carve out process has begun and is fairly intense.
Martino: High level view of dis synergies stranded costs and so forth suggests that they're relatively immaterial to our overall financials, but those are the kinds of topics. We'll update you on is as we move along later this summer or this fall and into next spring.
Speaker Change: Thanks, Tony.
Speaker Change: The next question will come from Faiza <unk> of Deutsche Bank. Your line is open.
Faiza: Yes, hi, Thank you so much I wanted to ask about market intelligence and your confidence in the ability to accelerate revenue as we go through the year. Maybe you can comment on you know what you're hearing from your customers how bookings have trended and any other color around around the.
Speaker Change: Thank you.
Faiza: Hi, Faiza thanks for the question.
Speaker Change: We have had a very good start to the year with market intelligence and <unk> been quite encouraged with several of the core metrics there, including some of the ones that Eric mentioned, we've seen stable retention rates are good sales pipelines in ACD faster than revenue, which of course is a great indicator.
Speaker Change: The strength of the business going forward remember that Eric also mentioned, we will be lapping a 2024 early year cancels as we go throughout the year that gives us a lot of confidence in an acceleration as we had indicated in our last call for a stronger second half compared to first half of the year.
Speaker Change: So good indications there from a customer standpoint.
Speaker Change: We have made several I would say improvements to how the sales teams are aligned to customers, particularly from an account management standpoint that has really helped the teams to to have more direct connections and engagement with the customers and we've been hearing very positive feedback on that realignment also hearing very positive feedback on <unk>.
Speaker Change: <unk> go to market between the market intelligence sales teams and our chief commercial office and we're starting to see some some great deals are there is that we for example.
Speaker Change: Close the large counterparty manager deal with a large investment bank in the quarter. We also closed a large primary market tissue book deal with a commercial bank in the first quarter. So all in a good momentum a good first quarter and will continue moving ahead. Thanks for the question.
Speaker Change: The next question will come from surrender fund of Jefferies. Your line is open.
Speaker Change: Yes.
Speaker Change: Thank you.
Speaker Change: Could you maybe talk about the levers that you guys talk about managing expenses.
Speaker Change: Some of the puts and takes might be in the range of expectations.
Speaker Change: Sure.
Speaker Change: Others here are as you would expect and then the ones that we've actually I think pulled and addressed over the last couple of years trading during the ups and downs of a of the environment, but also the same ones that you would expect that any well run company you know clearly head count and hiring for <unk>.
Speaker Change: <unk> is a lever that we monitor closely especially in this environment, where there's uncertainty.
Speaker Change: There is incentive compensation.
Speaker Change: Will float up and down with our with revenue and performance.
Speaker Change: There's a third party spend professional services, obviously, which has a degree of flexibility and then finally, there is a investment and so I think those are the ones that we typically want to protect except in very extreme circumstances. So.
Speaker Change: Part of what I've done is I've settled then over the last two months is literally spend time division by division.
Speaker Change: Circling those making sure we're ready selectively making some some tactical adjustments, but that's the those are the areas, where we're vigilant and we will continue to to stay vigilant and disciplined during this during this environment.
Speaker Change: Thanks surrender.
Speaker Change: The next question will come from Ashish <unk> of RBC capital markets.
ashish: Thanks for taking my question.
ashish: But on the issuance guidance, thanks for providing that incremental color on M&A assumption.
ashish: My question was flat issuance assumptions for the back half of the year.
Speaker Change: Does that include any kind of pull forward or what are your assumptions around how you spread says that resonate with liquidity.
Speaker Change: Hi Chi.
ashish: Thanks for the question.
ashish: As we mentioned, we would expect our build issuance to be roughly flat for us for the full year, so modestly more cautious than what we had noted during our last call.
ashish: Maybe I can break it down a little bit for you. So from a refi standpoint, we still expect the 25 refis.
ashish: To go ahead, we saw a little bit we think in a pull forward in investment grades are ahead of April but broadly speaking we're seeing the twenty-five refis are you know come to market as we considered.
ashish: What we have less expectation of this year is pull forward from 2026 and beyond especially for high yields he would have less of an incentive to come to market in a volatile environment.
ashish: On the M&A piece, we did say flat year over year I think it's worth mentioning we still see potential for some opportunistic issuance, although we've moderated that a little bit in our in the full year guide that we felt we provided four build issuance.
ashish: And I think maybe the last point I would make on this is you know as we know this is incredibly difficult to predict at this point there are risks to the downside on the upside on this I mean look are contemplated in our range. As you know there was the possibility of a negative year over year growth for example are in.
ashish: And now in our transaction revenues. However, there's also risks to the upside we know that there's a lot of pent up demand in M&A and so we think from a timing standpoint, it's more likely at this point to hit in 2026, but we know issuers or are going to come to market when they see an opportunity and so it's possible we could see some.
ashish: Without this year out in the second half as well thanks for your question Ashish.
Speaker Change: The next question will come from Andrew Steinman of J P. Morgan Your line is open.
Speaker Change: Two quick ones one what's the share count implied in that in the 25 guide and did it did it change since February and secondly, you talked a lot about the strong balance sheet and the share buyback activity, what's the view on.
Speaker Change: S&P is M&A ambitions at this point.
Speaker Change: Andrew Let me take the first part of that question I think for share Count are you just start with the share count it as it's disclosed factor in the buybacks at a reasonable price expectations and then just.
Speaker Change: Calculate that going forward for the.
Speaker Change: Quarters in the rest of the year and I think you should be able to to get to what you need.
Andrew Steinman: Great Hi, Andrew.
Speaker Change: Regarding your question on M&A ambitions going forward.
Speaker Change: I'd reiterate a point that I made on the last call, which is we certainly have.
Speaker Change: No intention of any type of transformative M&A as we go forward. We're really focused on what we think are very high quality organic growth opportunities within each of the divisions and across the divisions and that's our that's what we're executing as we go throughout the year I would say are consistent with how we have thought.
Speaker Change: How we have it.
Speaker Change: An advantage of certain opportunities in the past if we see a tuck in that is very attractive for either our core business or very attractive for one of our strategic routines of course, we would consider that and of course, we always do that through the lens of shareholder value as well as the value we create for our customers. Thanks.
Andrew Steinman: Thanks for the question Andrew.
Speaker Change: The next question will come from Scott Wurtzel of Wolfe Research. Your line is open.
Speaker Change: Hey, good morning, guys and thank you for taking my question I just wanted to touch on the topic of private credit and wondering if you can share how has that performed on the ratings side relative to expectations during the quarter and maybe talk about what youre, assuming in terms of growth contribution from private credit for the balance of the year.
Speaker Change: Hi, Scott its martino thanks for the question.
Speaker Change: We continue to execute at the highest levels, we can and are happy with performance that we've seen in private credit overall across the organization through the really strong products. We have in ratings are in our in market intelligence as well as opportunities for our benchmarks are in index.
Speaker Change: Specifically in ratings, we've always said that we would rate the business or the deals wherever they come.
Speaker Change: And we've made very good strides with the the majority of the sponsors that we've engaged with there are a lot of there's a lot of demand as Eric said in his remarks for an S&P rating, whether it's public or private and so that's been I think a strong contribution we decided the mix there in the past we've certainly seen some great.
Speaker Change: Our results in a middle market CLO for example, and knobs and and another private credit opportunities.
Speaker Change: I'd say for the remainder of the year, just given some of the really tough year over year comps as well as a little bit of moderation in the environment around issuance generally I wouldn't say, we have heroic assumptions for growth specifically in private credit for the remainder of this year. Thanks for your question Scott.
Speaker Change: The next question will come from Alex Kramm of UBS. Your line is open.
Speaker Change: Yes, Hey, good morning, everyone I'm going to have another boring cost question, but it is Eric first call. So I think it's it's okay, but you.
Speaker Change: It sounds like you mentioned that all the work on the cost space. So far has been more as a do we need to pull any sort of levers too to show margin expansion et cetera. If if if the environment is a little bit tougher just wondering how you think about the cost base Holistically I know, it's only been a couple of months for you.
Speaker Change: But obviously you come from a lower.
Speaker Change: Lower margin company and look I think over if you compare some of the peers in particular market intelligence. The margins don't compares well anymore for us Big Global given that you have a history of cost programs at a couple of years you did a big transaction a few years ago. Just wondering if there's room for maybe a more holistic rebating of the cost program and where that will come from.
Speaker Change: Thank you.
Eric: Alex It's Eric Thank you for the question.
Eric: As you say and in every company and this one included there's typically and I've seen it here already.
Eric: Our recent history.
Eric: You know over the last few years, but certainly embedded in our budgets for this year and our guidance for this year.
Eric: Do more than just a you know.
Eric: Rash and head count up or down that's Oh, that's not what.
Eric: You know what we're focused on that.
Eric: That we do for our you know to make tactical adjustments during the year I think what I've started to appreciate is that theres a range of initiatives that we've launched.
Eric: Over the last year across our various businesses. Some of those are as you know for example in MRI, we've been removing silos simplifying operations.
Eric: <unk> areas of activities are in other areas like commodities insights we've had a real.
Eric: Push on using Gen II for productivity in some of the analytical and research functions. So there are some systemic efforts underway that I think are.
Eric: Part of what will help us deliver our our expectations and guidance for this year.
Eric: To the question of is there more while there's there's always more to do and that's the kind of work that we start planning on now for next year and we'll start planning on next year for the year after because it's a it's a muscle that so I think.
Eric: <unk> developed here, but we can continue to refine it and that's what the management team will do together.
Speaker Change: Thanks, Alex.
Eric: Yeah.
Speaker Change: The next question will come from Manav Patnaik of Barclays. Your.
Speaker Change: Your line is open.
Speaker Change: Good morning.
Speaker Change: I just wanted to confirm I mean, it sounds like from everything you say, you're not yet see any major changes in your customer behavior. So I was just hoping you could just help elaborate on that maybe focusing more on the NII and subscription businesses really.
Speaker Change: Yeah, Thanks, Manav and that is true when it comes to the subscription businesses clearly in this kind of environment. We've signaled that so we see some behavioral changes in ratings for example, as I mentioned with some issuers on the sidelines. So we certainly see that downside in the.
Speaker Change: Our market sensitive areas like ratings, AR, and AR and little bit of an index as well.
Speaker Change: I would say that we're paying really close attention to the subscription businesses and looking very closely at this obviously by sector. The fact that our you know we have for the most part are multi year deals really serves as a ballast in times like this but of course, we have to be.
Speaker Change: Very strongly engaged with our customers to get a sense for when there may be more pressures are one of the other things that we've been extremely disciplined about since last year is making sure that we're positioned.
Speaker Change: <unk> need to benefit from vendor consolidation opportunities and we have heard in a couple of recent discussions with large clients that they may be accelerating vendor consolidation and of course, we will prioritize their.
Speaker Change: Through the work that we've been doing as well with the chief client office and so those are some examples I would also say that you know that there are upside opportunities. We have as you know some of the strongest supply chain data around you know multiple sectors regions. We also.
Speaker Change: Just simply bye bye.
Speaker Change: By virtue of what we do are being used to our data is being used by our clients even more we saw that in the very significant uptick year over year.
Speaker Change: In our platform usage for example across a M I.
Speaker Change: And see I as well as mobility in the first quarter.
Speaker Change: Overall, we're watching very closely we don't see massive changes in behavior, we're certainly not hearing that from our customers.
Speaker Change: And and engaging very very strongly to make sure we're positioned for growth opportunities as they arise. Thanks manav.
Speaker Change: Yes.
Speaker Change: The next question will come from George Tong of Goldman Sachs. Your line is open.
George Tong: Hi, Thanks, good morning.
George Tong: You mentioned, you're not seeing any major changes in customer behaviors can you talk a little bit more about what youre seeing with pipeline performance and sales cycles.
George Tong: Yeah, Hi, George It's Martina are we are right now seeing our sales pipelines are as expected and are and that is one of the things that gives us very good confidence as we think about our subscription businesses throughout the rest of the year again I think the behavior.
George Tong: As a as we've engaged more closely with our customers across the divisions all the way from our division presidents down through the sales teams to the extent that we're hearing places where our customers are you know may be feeling more or less pressure a lot of times, we are positioned to benefit from better consolidation efforts for example, a definite.
George Tong: Something that we're paying very close very close attention to and I think what comes in line with the and I've mentioned it in particular for example for <unk>, but also the other divisions is that we're seeing quite stable.
George Tong: Renewal.
George Tong: <unk> performance, particularly in market intelligence, where you know that is something that we had highlighted as a core objective.
George Tong: For this year and so between that and the fact that we'll be lapping some counsel for for early 'twenty four we see that as a good indicators for a strong second half in M&A in particular, thanks for the question George.
Speaker Change: The next question will come from Andrew Nicholas of William Blair. Your line is open.
Tom Rush: Hi, Good morning. This is Tom rush on for Andrew Nicholas Thanks for taking my question.
Tom Rush: I was wondering if you could touch on the commodity insights on markets and kind of what Youre seeing there and then also are you expecting any pressure from tariffs or just trade war in general within that segment on the end markets. Thank you.
Martina Cheung: Hi, Thomas It's Martina and thank you for the question I think we've seen really strong growth in commodity insights so far this year.
Martina Cheung: We benefited across businesses as a result of some of the unique data that we have we've been able to launch new price assessments.
Martina Cheung: And a number of areas like Biofuels I gets that trial and we highlighted the particular strength also with the energy transition and sustainability parts of that business, where our growth NCI with the combination of the commodity insights data et cetera, with the sustainability data is now beginning to give the team opportunities to launch.
Martina Cheung: <unk> new innovative products also one example, there is we recently launched a product that integrates our climate risk analytics on to our AG data. So that our users can actually understand the impact of extreme weather events on crops. For example, so really unique and differentiated insights.
Martina Cheung: Not only in the products that we offer today, but also in what we're rolling out as we go forward. So a strong performance there strong engagement with our clients clearly Eric mentioned that Theres, a little bit of consolidation in upstream that's something that we've contemplated as part of the full year guidance that we're giving.
Martina Cheung: And then I think pressures from tariffs if I were to take a little bit of a step back on this I think generally speaking, we certainly would be watching very closely working closely with our customers.
Martina Cheung: These are the types of just these are the types of areas, where our customers will actually use the data more we saw really strong uptick for example in usage of paths connect in.
Martina Cheung: In Q1.
Martina Cheung: And and obviously, we see that upside as well as through the GTS revenues, which had a which had very strong results in the first quarter.
Martina Cheung: So largely insulated I would say Thomas specifically from the direct impact of the tariffs, but clearly we're very strongly engaged with our customers.
Martina Cheung: To make sure that we are we don't see anything else that we would need to address going forward. Thanks for the question.
Martina Cheung: The next question will come from Craig Huber of Huber Research partners. Please go ahead Sir.
Craig Huber: Thank you just wanted to get back if I could on the <unk>.
Martina Cheung: Mobility question and the whole why now and stuff for me.
Martina Cheung: Obviously in the past you guys have talked about it being a core part of operations, it's done really well underneath S&P I'm. Just wondering again, just if you could just elaborate a little further what's changed here why you want to spin it off now and stuff I mean in the past you said it was core now it's not core I'm just trying to understand better obviously your stock is.
Martina Cheung: <unk> in line right in line with the S&P 500 here over the last 24 months I mean, a lot of stocks would love to have that sort of performance.
Speaker Change: What's changed a little bit more there. Thank you.
Speaker Change: Please standby your conference call will resume momentarily.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Yes exactly.
Speaker Change: Okay.
Craig Huber: Craig I'm going to take your take your question and respond to it from the top again I think we lost audio there momentarily.
Craig Huber: You were asking why now and what's changed I would say this is something we've been thinking about for quite some time, we've done it very rigorous and deep analysis around this topic.
Craig Huber: Clearly the mobility business is a phenomenal business. It has a very long history of innovation of strong growth and it's got incredibly talented leaders across the business. We believe that the plan to do a tax free spin is really the best opportunity for long term shareholder Valley.
Craig Huber: Here it allows an ability to pursue.
Craig Huber: Profitable growth trajectory and for S&P global excluding mobility allows our four core divisions to to grow and be very closely aligned with our strategy. So that's really the thinking here Craig thanks for the question.
Speaker Change: The next question will come from Owen Lau of Oppenheimer. Your line is open.
Owen Lau: Hi, Good morning, Thank you for taking my questions.
Speaker Change: Two quick questions here the first one.
Speaker Change: Could you. Please talk about how did you breached a flat bill with basis to 020 to 4% ratings revenue growth is mainly driven by pricing or days and other like some mix shift going on that we should be aware of and then the second part is about the sale of Austria could you. Please talk about how do you plan to.
Speaker Change: Use the proceeds and if there's any.
Speaker Change: Additional buyback have you baked that into your guidance. Thanks.
Speaker Change: Hi, Owen Thanks for the question I'll take the first one and then hand over to Eric <unk>. So the revenue guidance at zero to 4% for ratings, obviously, we've widened the range there and that really contemplate.
Speaker Change: The possible a variety of ways in which this issuance could shape up though we wanted to be prudent in our in how we were guiding for the full year revenues to be clear the path back to the zero to 4% as informed by our expectations for the rest of the.
Speaker Change: Here in the non transaction side, which we expect to grow around the mid single digit range.
Speaker Change: And then there are a variety of potential scenarios on the build issuance side with respect to both the upside and downside as I had mentioned earlier in the call. So that's the that's the path back to that wider range of zero to 4%.
Speaker Change: And Oh, and just to follow up on <unk>.
Speaker Change: All right.
Speaker Change: So we're very pleased with that.
Speaker Change: <unk> announced the sale at a whopping and proceeds of about a billion for AR on an after tax net basis.
Speaker Change: And.
Speaker Change: We expect to to close sometime this fall.
Speaker Change: And expect to.
Speaker Change: To use those proceeds for additional buybacks.
Speaker Change: And.
Speaker Change: In the latter part of the year and it is.
Speaker Change: Included in our overall guidance.
Alan: Thanks Alan.
Speaker Change: The next question will come from Jeff Silber of BMO capital markets. Your line is open.
Speaker Change: Thank you so much.
Speaker Change: Question on your guidance, specifically looking at the free cash flow I realize you reduced guidance slightly for revenue growth and operating profit margin, but it looks like the reduction in guidance for free cash flow is in excess of that despite the fact that you're also expecting about $10 million less in capex.
Speaker Change: Is there something going on in the free cash flow line, that's different from three months ago that we should be aware of.
Speaker Change: Hey, Jeff It's a it's Eric are there just some.
Speaker Change: Puts and takes in there in particular, some timing on taxes working capital and so forth that are just realigning.
Speaker Change: Realigning that a little bit obviously, if those change.
Speaker Change: Those tend to change now and that and we just put a day appropriate update given the given what.
Speaker Change: Given the headlights, we now have.
Jeff Silber: Thanks, Jeff.
Speaker Change: The next question will come from Shlomo Rosenbaum of Stifel Nicholas your.
Speaker Change: Your line is open hi.
Speaker Change: Thank you for taking my question for Tim maybe you could give us a little bit of inside baseball on how you kind of set the guidance. It seems like the changes are in ratings and indices, which you're already seeing some impact from the environment, but the other ones you are leaving it the same.
Speaker Change: Is leaving at the same just because you have not seen an impact yet, whereas leaving the guidance and the other divisions. Because you are looking at a range of outcomes and the kind of net back to neutral I'm just trying to understand your thinking over there.
Speaker Change: Hi, Shlomo. Thanks for the question I would say we've spent a quite a lot of time bottom up with all of the divisions understanding what we're seeing in key metrics, whether it's a renewal retention cancel new sales.
Speaker Change: Pipelines et cetera, and really being quite rigorous and even thinking about any potential impacts and this is contemplated essentially.
Speaker Change: In the full year, including in the changes to ratings and in maintaining the other divisions, but we we don't net out at the aggregate level. We go bottom up division by Division.
Speaker Change: Get to TD answers, though.
Speaker Change: Hopefully that helps thanks, so much for the question.
Speaker Change: The next question will come from Russell Quelch of Redbird Atlantic Your line is open.
Russell Quelch: Hi, Good morning, appreciate the impact of lower equity markets have all in indices revenue outlook, but I wanted to pick up on the 9% growth in data and custom subscription revenues in Q1 within the index business that looks like the highest <unk> ever reported in that line.
Russell Quelch: So are you managing to drive competitive displacement in benchmark index subscriptions, if so maybe what areas.
Russell Quelch: That both pricing and maybe could that help offset some of the pressure on asset linked fees as we look out for the rest of the year.
Russell Quelch: Okay.
Russell Quelch: So it's a it's Eric we're quite pleased with the performance of indices this quarter in aggregate across.
Russell Quelch: Across the various product lines.
Russell Quelch: Part of what boosted the data and custom subscriptions.
Russell Quelch: One was the end of day data, which is.
Russell Quelch: Rich in terms of what we provide and quite valuable for our clients and saw some real uptake there.
Russell Quelch: It was largely offset by.
Russell Quelch: Some.
Russell Quelch: Custom data feeds.
Russell Quelch: That came in a little lower but overall, we're pleased with the performance.
Russell Quelch: Thanks Russell.
The next question will come from Jason Haas of Wells Fargo.
Speaker Change: Line is open.
Jason Haas: Hey, good morning, and thanks for taking my question I'm curious if you could talk about the sensitivity of the mobility business to auto tariffs have you seen any impact from that so far the conversations with your customers changing at all how do you expect that to trend going forward. Thank you.
Speaker Change: Hi, Jason Thanks for the question. This is obviously something that we're paying very close attention to.
Speaker Change: Maybe just two.
Speaker Change: To get some color around firstly, what we think is happening and unlikely to happen in the automotive sector. So we certainly see pressures in a in a word.
Speaker Change: Imports are potential for lower actual.
Speaker Change: Manufacturing in some cases for a variety of different reasons, including imported components et cetera, and so that could put downward pressure on existing inventories upward pressure on prices and so we would expect and we are anticipating.
Speaker Change: Anticipating that there could be some budget pressures for example in dialog with our OEM manufacturing clients, however recall that.
Speaker Change: This is largely on a subscription basis and there we are reasonably insulated from those from those impacts, but we're also very much engaged with helping our manufacturer clients to actually navigate this journey. The other point that I would make is the business overall.
Speaker Change: Is that is about 70%.
Speaker Change: Used car related and there we actually see that the used car market could actually benefit from some of this that anticipated change in.
Speaker Change: Higher prices for new cars lower inventory for new cars.
Speaker Change: So that's another piece of this and of course.
Speaker Change: The vehicle history the vehicle pricing.
Speaker Change: <unk> incentives sales and marketing data. These are all really critical datasets for theaters that particularly in this kind of environment. So all in all we're paying close attention we certainly.
Speaker Change: Some pressure.
Speaker Change: On our end customers, but but we are not directly impacted by that at this point and that's one of the reasons why you see us mainly.
Speaker Change: Maintain and and have confidence in our guide for <unk> for the full year. Thanks for the question Jason.
Speaker Change: The next question will come from Jeff boiler of Baird. Your line is open.
Speaker Change: Yes. Thank you maybe just taking a step back as the portfolio gets to steady state just given the number of divestitures, including some of the smaller businesses within the segments and the forced divestitures I guess what are the how would you summarize the most important.
Speaker Change: Capabilities acquired at this point from the IHS Markit acquisition, and where do they show up the most in financials I'm guessing private markets and energy transition growth are in part enabled by that but just.
Speaker Change: How would you summarize that overall thank you.
Speaker Change: Hi, Jeff Thanks for the question.
Speaker Change: IHS market from an acquisition standpoint benefited us tremendously.
Speaker Change: All three of.
Speaker Change: Our four divisions X mobility, the areas, where we've seen incredible positive momentum first if we start with S&P Dow Jones in the box franchise that has.
Speaker Change: Eric.
Speaker Change: In fixed income for example, and we've been able to launch really new innovative products, there, including the ability to.
Speaker Change: Enhance our multi asset class offering within market intelligence products across pace, including our enterprise solution products.
Speaker Change: We also have incredibly strong maritime data that came in which of course is so critical now and on the private credit capabilities. As you mentioned the at Wall Street office or high level and the valuations business. So these are I mean, there's really just a huge number of very high value high growth products, they're in market intelligence that came through.
Speaker Change: The acquisition.
Speaker Change: And of course in commodity insights. This is a business that is really soup to nuts 360 commodities.
Speaker Change: Able to round out our capabilities in several areas, including petrochemicals, including in the renewables area as part of the merger between <unk> and the energy resources business and Platts in and we're so well positioned and last but not least of course, Cerro week, which has given us as such.
Speaker Change: Incredible.
Speaker Change: Stage from which to hold these amazing dialogues that every year. So this has been I think very very important for us and incredibly important for our growth going forward and of course, you see that with Eric comment earlier that we're about 90% of the revenue synergies that we anticipated from the deal.
Which continues to perform very well thanks for the question Jeff.
Speaker Change: Yes.
Speaker Change: The next question comes from Sean Kennedy of Mizuho. Your line is open.
Sean Kennedy: Good morning, Congrats on the results. So I was wondering how a sustained period of lower oil and other energy prices might affect swati insights growth and how it may be different versus the last period of lower energy prices in 2020. Thank you.
Sean Kennedy: Hi, Sean it's Martijn here, what I would say is our business doesn't move.
Martijn: Directly in line with what the price of commodities. So we charge a license or a subscription for the use of the of the price assessments, whether it's oil or natural gas.
Sean Kennedy: Or any of the other.
Sean Kennedy: Many many dozens of commodity prices that we price on a daily basis, though.
Sean Kennedy: I would say at its most extreme to the extent that the price got so low and it impacted actual providers or resulted in in bankruptcies or shutdowns mean, not certainly you would see maybe some impact there.
Sean Kennedy: Remember, though our view for this year is that we expect prices to be in the low seventies, which is actually a little bit higher than where they are right. Now all of that is contemplated in the guide that we provided and we don't see at this point of the year a massive downside.
Sean Kennedy: Downside or upside from from that from that.
Sean Kennedy: And price range. Thanks, Sean.
Speaker Change: And the final question for today will come from Joshua <unk> of Bank of America. Your line is open.
Speaker Change: Yeah, Hey, everyone. Martina you briefly touched on it but it would be great to hear a bigger update on the current office roll and how those conversations are progressing with clients and then any kind of early wins you can share from that office.
Martina Cheung: Yeah, Hi, Josh.
Martina Cheung: Well, congrats and I would say very nicely with chief client officer, we are across the board, including all of our division presidents, our engaging with our senior.
Martina Cheung: Uh huh.
Martina Cheung: Executives at our largest strategic clients in partnership with the Chief client Officer.
Martina Cheung: And I would say that it's positioned us as I mentioned, a little bit earlier in the call really strongly for certainty for opportunities around vendor consolidation, but we've also seen strong renewals in some cases for a very large deals and and also new business, which is really exciting.
Martina Cheung: Several to mention one example is a large deal with an investment bank or a counterparty manager. Another four primary markets that issue book for a large commercial bank a multiyear multimillion dollar new deal that we've won for corporate actions for another bank and so.
Martina Cheung: Really interesting, we're continuing to build pipelines across all sectors. We've certainly seen some really nice early wins in the financial clients will continue to build out across all sectors. As we go throughout the year. So it's it's encouraging and I think we're off to a good start there with the with that effort.
Martina Cheung: And that is a that's where I'll wrap up with that one. Thank you. So much for your question Josh.
Martina Cheung: So I will just say thanks, so much to everybody who joined the call today for your questions.
Martina Cheung: Had a very impressive start here and we're excited to continue executing throughout the course of the year I do want to welcome Eric and thank him for a phenomenal first call. We're very excited to have him on board and are mostly also thank you so much to our customers and to our employees and with that we will close the call. Thank you.
Martina Cheung: Okay.
Speaker Change: Thank you that concludes this morning's call a PDF version of the presenter slides is available for downloading from Investor Dot SP Global Dot com replays of the entire call will be available in about two hours the webcast with audio.
Speaker Change: 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.