Moody’s (MCO) Goldman Sachs Communacopia + Technology Conference 2024 summary

Business evolution and data assets

• Moody's Analytics has grown from a small group in 1990 to generating over half of the corporation's revenue, driven by recurring revenue and ARR growth exceeding $3 billion.

• The company now offers extensive data assets, including a database covering 525 million companies, both public and private, and tracks financials, patents, shipping containers, cyber risk, and climate risk.

• The acquisition of Bureau van Dijk in 2017 significantly expanded corporate data coverage and analytics capabilities.

• Data is leveraged to help clients in banking, insurance, asset management, and government sectors understand and manage risk.

• KYC and compliance solutions have seen strong growth, especially in corporate and government sectors.

Financial performance and product strategy

• Revenue is now 95% recurring, with retention rates around 94% and net dollar retention at 108, reflecting strong customer loyalty and upsell.

• ARR has consistently grown at about 10% for seven consecutive quarters.

• Product strategy combines high-quality data, advanced models, and workflow software to support customer decision-making.

GenAI and technology innovation

• Moody's is a first mover in GenAI, integrating LLMs and agentic tools across products to enhance analysis and productivity.

• Partnerships with Microsoft and Google support innovation, resiliency, and experimentation with AI, including small language models for document analysis.

• GenAI-enabled products like CreditView Research Assistant have increased user engagement by 60% and drive cross-selling opportunities.

• Adoption of GenAI is influenced by customer compliance requirements, with Moody's assisting clients in establishing governance frameworks.