Thomson Reuters Corp ( TRI ) reported fiscal second-quarter 2024 revenue growth of 6% year-on-year to $1.74 billion, marginally missing the analyst consensus estimate of $1.751 billion. 

The business information services provider’s adjusted EPS of $0.85 beat the analyst consensus estimate of $0.82. The stock price slid after the print.

Organic revenues increased by 6%, driven by 8% growth in recurring revenues (82% of total revenues). 

The “Big 3” segments (Legal Professionals, Corporates, and Tax & Accounting Professionals) collectively comprised 82% of total revenues and reported organic revenue growth of 8%. 

Legal Professionals’ revenue grew by 3% Y/Y to $727 million, Corporates’ revenue rose 13% Y/Y to $442 million, and Tax & Accounting Professionals’ revenue increased by 9% Y/Y to $250 million.

Reuters News revenue grew 6% year over year to $205 million, while Global Print revenue fell 8% year over year to $123 million.

Adjusted EBITDA margin declined 300 bps to 37.1%. 

Thomson Reuters ( TRI ) generated $541 million in free cash flow during the quarter and held $1.68 billion in cash and equivalents as of June-end.

CEO Steve Hasker: “Our 2024 investment plans remain on track as we execute against the ambitious product roadmap we detailed at our March investor day, exemplified by the July launches of CoCounsel Drafting and Checkpoint Edge with CoCounsel. We believe we are well positioned to help our customers navigate rising regulatory compliance, in addition to harnessing the potential of Generative AI.”

FY24 Outlook: Thomson Reuters ( TRI ) expects revenue of $7.27 billion (prior $7.24 billion—$7.27 billion), against a consensus of $7.277 billion.

The company expects its third-quarter 2024 organic revenue growth to be approximately 6% and its adjusted EBITDA margin to be approximately 34%.

Thomson Reuters ( TRI ) stock gained over 17% in the last 12 months.

Price Action: TRI shares were trading lower by 2.20% to $158.35 at last check Thursday.

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