Print Page      Close Window     

SEC Filings

10-Q
IHS MARKIT LTD. filed this Form 10-Q on 03/26/2019
Entire Document
 

 
Increase in revenue
 
First quarter 2019 vs. First quarter 2018
 
Organic
 
Acquisitive
 
Foreign
Currency
Resources
6
 %
 
%
 
(1
)%
Transportation
8
 %
 
%
 
(1
)%
CMS
(3
)%
 
%
 
(1
)%
Financial Services
6
 %
 
24
%
 
(1
)%

Resources revenue for the three months ended February 28, 2019, compared to the three months ended February 28, 2018, experienced positive organic revenue growth, with 5 percent recurring revenue growth and 16 percent non-recurring revenue growth. Total and recurring organic revenue growth benefited by approximately 1 percentage point as a result of the adoption of ASC Topic 606. Our Resources annual contract value (“ACV”), which represents the annualized value of recurring revenue contracts, increased slightly from the beginning of the year.

Transportation revenue for the three months ended February 28, 2019, compared to the three months ended February 28, 2018, continued to experience strong organic growth, with 9 percent recurring revenue growth and 4 percent non-recurring revenue growth. Our automotive product offerings continue to provide the largest contribution to the growth, as our diversification in used and new car product offerings continues to provide balanced opportunities for growth. Our Aerospace, Defense & Security and Maritime & Trade revenue was largely unchanged.

CMS revenue for the three months ended February 28, 2019, compared to the three months ended February 28, 2018, decreased 3 percent organically, primarily driven by the uncertainty over a contract renewal in our TMT business line. A portion of the decline was also due to lower revenue in the first quarter of 2019 as a result of the off-year cycle of the BPVC engineering standard.

Financial Services revenue for the three months ended February 28, 2019, compared to the three months ended February 28, 2018, experienced strength across our Information and Solutions product offerings. Within our Information product offerings, revenue growth was led by our pricing and valuation services offerings, and within our Solutions product offerings, revenue growth was led by our managed loan services and analytics software offerings. Within our Processing product offerings, organic revenue growth declined due to market softness in loans primary issuance, partially offset by improvements in derivatives processing. The Ipreo acquisition in the third quarter of 2018 provided the acquisitive growth, and while its first quarter 2019 revenue was less than expected due to lower market activity, primarily in equities, we expect more robust markets and improved revenue in the second quarter of 2019.

Revenue by Transaction Type
 
Three months ended February 28,
 
Percentage change
(in millions, except percentages)
2019
 
2018
 
Total
 
Organic
Revenue:
 
 
 
 
 
 
 
Recurring fixed
$
767.2

 
$
683.3

 
12
%
 
5
%
Recurring variable
136.0

 
117.1

 
16
%
 
3
%
Non-recurring
143.2

 
131.7

 
9
%
 
8
%
Total revenue
$
1,046.4

 
$
932.1

 
12
%
 
5
%
 
 
 
 
 
 
 
 
As a percent of total revenue:
 
 
 
 
 
 
 
Recurring fixed
73
%
 
73
%
 
 
 
 
Recurring variable
13
%
 
13
%
 
 
 
 
Non-recurring
14
%
 
14
%
 
 
 
 

Recurring fixed revenue organic growth increased 5 percent for the three months ended February 28, 2019, compared to the three months ended February 28, 2018, with Transportation, Resources, and Financial Services recurring offerings providing the largest contribution to the growth, and flat organic growth in CMS. Recurring variable revenue was composed entirely of Financial Services revenue, with organic growth coming from our Information and Solutions product offering categories.

24