Thomson Reuters Corporation (TRI) Q3 2022 Earnings Call Transcript

For the period ending September 30, 2022

November 1, 2022 9:00 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Good day everyone and welcome to the Q3 2022 Earnings Call hosted by Gary Bisbee, Head of Investor Relations. My name is Nica and I'm your operator for today. During the presentation all lines will remain on listen-only. [Operator Instructions]. I would like to advise all parties that this conference is being recorded for replay purposes. And with that, I'd like to hand the floor to Gary. Please go ahead.

Gary Bisbee

Thank you Nica. Good morning, everyone and thank you for joining us today for our third quarter 2022 earnings call. I'm joined by our CEO, Steve Hasker; and our CFO, Mike Eastwood, who will discuss our results and take your questions following their remarks. To enable us to get to as many questions as possible we would appreciate it if you would limit yourself to one question and one follow-up each when we open the phone lines.

Throughout today's presentation, when we compare performance period-on-period, we discuss revenue growth before currency as well as on an organic basis. We believe this provides the best basis to measure the underlying performance of the business. Today's presentation contains forward-looking statements and non-IFRS financial measures. Actual results may differ materially due to a number of risks and uncertainties discussed in reports and filings that we provide to regulatory agencies. You may access these documents on our website or by contacting our Investor Relations department. Let me now turn it over to Steve Hasker.

Steve Hasker

Thank you, Gary and thanks to all of you for joining us today. I'll start by reviewing our Q3 highlights. I'm pleased to report good momentum continued in the third quarter with revenue and margins modestly ahead of our expectations. Total company organic revenues growth rose 6% driven by 7% recurring revenue growth. Each of our big three segments recorded organic revenue growth of 6% or greater for a fifth straight quarter. Due to the strong year-to-date performance and healthy book of business, we are maintaining our full year 2022 outlook. Mike will provide more details on our outlook later in the call.

While we acknowledge rising market concerns around slowing economic growth, we are blessed with a resilient business.80% of our revenue is recurring and we operate in historically stable and growing end markets. Like all companies we face inflationary pressures which we are working diligently to mitigate. We also continue to make investments to support our revenue momentum and our customer success. To date, we have not seen any significant changes in customer buying patterns except in a few pockets in our corporate segment where sales cycles have lengthened modestly. We believe this is due to both market factors and also sales territories where we are looking to fill open positions.