Q1 2025 Moody's Corp Earnings Call Transcript
Key Points
- Moodys Corp (MCO) achieved a record $1.9 billion in first quarter 2025 revenue, marking an 8% year-over-year increase.
- The company reported an adjusted operating margin of 51.7%, up 100 basis points from the previous year.
- Adjusted diluted EPS grew by 14% to $3.83, showcasing the strength of the franchise.
- Private Credit was a significant contributor to growth, particularly in structured finance, with 143 Private Credit related deals in Q1 2025.
- Moody's Analytics saw ARR growth of 9%, led by Decision Solutions with a 12% increase, and recurring revenue now accounts for 96% of total MA revenue.
- The company has adjusted its guidance to account for a more conservative outlook due to market volatility and uncertainty.
- There is a noted slowdown in M&A activity, with expectations for 15% growth down from an initial 50% forecast.
- The Data & Information business experienced slower growth due to elevated attrition from US government contracts and adjustments to the ESG strategy.
- Moody's has widened and lowered its guidance range for the year, reflecting potential impacts from tariffs and trade tensions.
- The company anticipates MIS rated issuance to decrease in the low to high single-digit range for 2025, indicating a challenging issuance environment.
Good day, everyone, and welcome to the Moody's Corporation first quarter 2025 earnings call. At this time, to inform you that this conference is being recorded and that all participants are in a listen-only mode. At the request of the company, we will open the conference up for questions and answers following the presentation.
I will now turn the call over to Shivani Kak, Head of Investor Relations. Please go ahead.
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Thank you. Good morning and thank you for joining us today. I'm Shivani Kak, Head of Investor Relations. This morning, Moody's released its results for the first quarter 2025, as well as our revised outlook for select metrics for full year 2025. The earnings press release and the presentation to accompany this teleconference are both available on our website at ir.moodys.com.
During this call, we will also be presenting non-GAAP or adjusted figures. Please refer to the tables at the end of our earnings press release filed this morning for
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