IHS Markit Ltd. (NASDAQ:INFO) Q4 2019 Earnings Conference Call - Final Transcript

Jan 14, 2020 • 08:00 am ET


IHS Markit Ltd. (NASDAQ:INFO) Q4 2019 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, thank you for standing by. And welcome to the IHS Fourth Quarter 2019 Earnings Conference Call. At this time all participant lines are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions]

I would now like to hand the conference over to your speaker today, Eric Boyer, Head of Investor Relations. Thank you. Please go ahead, sir.

Eric Boyer

Good morning and thank you for joining us live for IHS Markit Q4 2019 earnings conference call. Earlier this morning, we issued our Q4 earnings press release and posted supplemental materials to the IHS Markit Investor Relations website.

Our discussion on the quarter based on non-GAAP measure or adjusted numbers, which exclude stock-based compensation, amortization of acquired intangibles, and other items. IHS Markit believes non-GAAP results are useful in order to enhance the understanding of our ongoing operating performance, but they are a supplement to and should not be considered in isolation from or as a substitute for GAAP financial information.

As a reminder, this conference call is being recorded and webcast and is copyrighted property of IHS Markit. Any rebroadcast of this information whole or in part without the prior written consent of IHS Markit is prohibited. This conference call, especially the discussion of our outlook may contain statements about expected future events that are forward looking and subject to risks and uncertainties. Factors that could have on the actual results to differ materially from expectations can be found in IHS Markit's filings with the SEC and on the IHS Markit website.

After our prepared remarks, Lance Uggla our Chairman, CEO; Todd Hyatt, EVP and Chief Financial Officer and Jonathan Gear, President Transportation, Resources and CMS will be available to take your question.

With that, it's my pleasure to turn the call over to Lance.

Lance Uggla

Okay. Thank you, Eric. Happy New Year, and thank you for joining us for the IHS Markit Q4 earnings call. 2019 was another successful year for IHS Markit. We delivered another year of consistent financial results. We rebalanced our portfolio, updated our capital allocation policy that increased our capital return commitment, including a new quarterly cash dividend and we continue to increase the pace of innovation across the firm. Overall, we finished the year with a solid Q4 and we are reaffirming our 2020 financial guidance, which is once again within our longer-term commitments.

Now onto the financial highlights. Organic revenue growth was 6% in both the quarter and the year, adjusted EBITDA margin expansion, ex FX was 120 basis points in the quarter and 100 basis points for the year, and adjusted EPS growth was 14% in the quarter and 15% for the year.

In terms of core industry verticals, I'll provide Q4 and full year 2019 highlights, and then our outlook for 2020. First, Financial Services segment. So, Financial Services organic growth was 6% in Q4 and for the full year. During the year, within Information we expanded our pricing and reference data and valuations offerings,