Thomson Reuters Corporation (NYSE:TRI) Q3 2019 Earnings Conference Call Transcript
Oct 31, 2019 • 08:30 am ET
Ladies and gentlemen, thank you for standing by and welcome to the Third Quarter Earnings Conference call. [Operator Instructions]. As a reminder, this conference is being recorded.
I would now like to turn the conference over to Senior Vice President, Investor Relations, Frank Golden. Please go ahead.
Frank J. Golden
Good morning and thank you for joining us today. Our CEO, Jim Smith and our CFO, Stephane Bello will review the results for the third quarter and will update you on our outlook for the balance of the year and also for 2020. When we open the call for questions, we'd appreciate if you limit yourselves to one question each to enable us to get to as many as possible. I'll also remind you, that Refinitiv is not included in our adjusted earnings or in our adjusted earnings per share, and we do not control Refinitiv as we own 45% of the partnership.
Now, before we get started, there is one accounting item I will call out, and that is our financial statements for the fourth quarter of 2018 and the first and second quarters of 2019, have been revised to correct the non-material misstatement in each period related to our equity interest in Refinitiv. This misstatement had no impact on revenues, adjusted EBITDA, adjusted earnings per share or free cash flow for any period. We posted revised financial information on our website this morning, and we'll provide revised financial statements in our regulatory filings.
Now throughout today's presentation, when we compare performance period-on-period, we discuss revenue growth rates before currency, as we believe this provides the best basis to measure the underlying performance of the business.
Today's presentation contains forward-looking statements. Actual results may differ materially due to a number of risks and uncertainties discussed in reports and filings that we provide to regulatory agencies. You can access these documents on our website or by contacting our Investor Relations department.
And with that, I'd like to now turn it over to Jim Smith.
Thank you, Frank, and thanks to all of you for joining us today. Our third quarter results reflect the progress we continue to make across the business. We posted our second consecutive quarter of 4% organic revenue growth, and feel that we are well positioned to achieve our full year 2019 and 2020 guidance targets. The continued revenue momentum is attributable to several positive factors. First, the success of our new AI powered legal solutions, which continue to be very well received in the market. These are now viewed by many customers as a competitive differentiator, and we're helping to drive sales in revenue growth.
Secondly, these new solutions are leading to higher retention rates, including historic high rates in our legal segment exceeding 90% overall, with large law firms at 100% customer retention year-to-date. And thirdly, our new customer led approach to building open platforms, is resonating in the market. We are also working with our customers to integrate not only a number of our previously disconnected products, but