Moody's Q4 2024: Navigating Contradictions in Growth, Debt, and AI Impact

These are the key contradictions discussed in Moody's latest 2024Q4 earnings call, specifically including: Medium-term growth expectations, Issuance and Debt Velocity, Moody's Analytics ARR growth, Medium-term guidance and M&A expectations, and the impact of AI on revenue growth:



Record Financial Performance:
- Moody's Corporation delivered a record year in 2024 with revenue growth of 20% to over $7 billion,
- driven by strong growth across both businesses and disciplined cost management.

Ratings Division Growth:
- MIS (Moody's Investors Service) achieved 18% total revenue growth, with Ratings delivering 33% revenue growth.
- This growth was driven by robust demand and issuance activity across various sectors, including leveraged loans, banking, and banking.

Moody's Analytics Recurring Revenue:
- Moody's Analytics reported 10% recurring revenue growth in the fourth quarter, with ARR (Annualized Recurring Revenue) growth of 9%.
- Growth was driven by strong demand for Decision Solutions, banking, insurance, and KYC services.

Investment in Strategic Growth and Technology:
- The company has invested in strategic growth areas such as private credit and sustainable finance, including acquisitions like GCR and Moody's Local.
- These investments are aimed at enhancing product platforms and data interoperability to drive long-term growth and earnings power.