In This Article:
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Organic Revenue Growth: 6% overall, with the Big 3 segments growing by 9%.
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Adjusted EBITDA: $809 million, with a 40 basis point margin decline to 42.3%.
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Legal Professionals Organic Revenue Growth: 8%.
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Corporates Organic Revenue Growth: 9%.
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Tax & Accounting Organic Revenue Growth: 11%.
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Reuters News Organic Revenue Decline: 7%.
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Global Print Organic Revenue Decline: 5%.
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Adjusted EPS: $1.12, compared to $1.11 in the prior year period.
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Free Cash Flow: $277 million, up 3% from the prior year period.
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Dividend Increase: 10% to $2.38 per share.
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Acquisition: SafeSend for $600 million.
Release Date: May 01, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Thomson Reuters Corp (NASDAQ:TRI) reported a strong start to 2025 with total company organic revenues rising 6%, and the Big 3 segments growing by 9%.
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The company reaffirmed its full-year 2025 outlook, expecting organic growth in the range of 7% to 7.5%, with margins projected to rise by 75 basis points to approximately 39%.
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Key products such as CoCounsel, SurePrep, and SafeSend showed double-digit growth, contributing to the company's positive performance.
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Thomson Reuters Corp (NASDAQ:TRI) continues to invest heavily in innovation, launching new products like CoCounsel Tax, Audit and Accounting, and enhancing existing offerings with AI capabilities.
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The company completed the acquisition of SafeSend for $600 million, which is integrating smoothly and contributing positively to the business.
Negative Points
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Reuters News segment saw a 7% decline in organic revenues due to a difficult comparison with the previous year's AI-related transactional content licensing revenue.
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Global Print organic revenues declined by 5%, in line with expectations, reflecting ongoing challenges in this segment.
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Adjusted EBITDA was essentially unchanged year over year at $809 million, with a 40 basis point margin decline to 42.3%.
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The company faces potential challenges from economic uncertainties, including the impact of trade wars and tariff changes, which could affect customer spending patterns.
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Despite strong performance, there is a level of nervousness among customers regarding the economic backdrop for the rest of the year, which could impact future demand.
Q & A Highlights
Q: Have you seen any changes in demand or buying patterns due to the trade war? A: Steve Hasker, CEO, noted that they have not seen changes in demand yet. The business remains resilient with over 80% recurring revenues. However, there is a level of nervousness among customers about the economic backdrop and tariff implications. Michael Eastwood, CFO, added that their sales and renewal pipelines remain strong with consistent order values.