Thomson Reuters (TRI) Q2 2024 earnings summary

Executive summary

• Q2 2024 delivered 6% organic revenue growth, with the Big Three segments up 8% organically and strong momentum in key products and international markets.

• Full-year 2024 revenue outlook raised to the high end of prior ranges, now expecting 6.5–7.0% organic growth and 8–8.5% for the Big Three.

• Continued strong customer interest in generative AI offerings, with new product launches such as CoCounsel Drafting and Checkpoint Edge with CoCounsel.

• Completed monetization of LSEG stake for $8.3 billion and finished a $1 billion share repurchase program in Q2.

• Robust liquidity and capital capacity support further M&A and shareholder returns, with $8B capital capacity estimated by 2026.

Financial highlights

• Q2 2024 revenues rose 6% year-over-year to $1.74B; adjusted EBITDA fell 2% to $646M, with a 300bp margin decline to 37.1%.

• Adjusted EPS was $0.85, down from $0.88 in the prior year; diluted EPS was $1.86, down 2% year-over-year.

• Free cash flow for H1 2024 was $812M, up 11% from the prior year; Q2 free cash flow was $541M, down 9%.

• Operating profit for Q2 was $415M, down 50% year-over-year due to prior-year gain on Elite sale.

• Cash flow from operations increased 2% to $705M in Q2.

Outlook and guidance

• 2024 total revenue growth now expected at approximately 7%, organic revenue growth at 6.5%.

• Big Three revenue growth guidance raised to 8.5% total and 8% organic.

• Adjusted EBITDA margin guidance reaffirmed at approximately 38% for 2024; free cash flow expected at ~$1.8B.

• Q3 2024 organic revenue growth expected at 6% with an adjusted EBITDA margin of 34%.

• Interest expense outlook reduced to $125–$145M due to earlier LSEG monetization and higher interest rates on cash balances.