April 23 (Reuters) - MSCI's ( MSCI ) first-quarter

revenue fell short of market expectations on Tuesday, hit by

subscription cancellations and a contraction in margins due to

one-time expenses, sending shares of the investment tools

provider down 8%.

The company's operating revenue rose nearly 15% to $680

million for the three months ended March 31, lower than

analysts' estimate of $684 million, according to LSEG data.

"Elevated cancels reflected a concentration of unusual

client events, including a large merger among our banking

clients," CEO Henry A. Fernandez said.

The majority of cancellations in the first quarter of 2024

were due to corporate events, including closure of

organizations, funds being shut and restructuring or downsizing,

the company said.

"We are managing through these pressures and do not expect

this level of cancels to continue," Fernandez added.

Still, MSCI ( MSCI ) earned $3.52 a share excluding one-off charges,

higher than estimates of $3.45.

Recurring subscriptions in its index segment -- agreements

where clients pay regular fees to access MSCI's ( MSCI ) products over a

specified period -- rose 8% to $213 million, primarily due to

strong growth from market-cap weighted and custom index products

and special packages.

Companies such as MSCI ( MSCI ) benefit from market swings as

investors rush to rebalance portfolios and hedge against risks.

Asset-based fees in the segment rose about 13% to $150.3

million.

The global index provider also offers clients subscriptions

for information, data and tools to help them evaluate and invest

in diverse global markets.

Meanwhile, new recurring sales in analytics led to the

unit's highest first quarter in a decade with nearly 12% growth

in operating revenue.