• Organic Revenue Growth: 6% overall, with the Big 3 segments growing by 9%.
• Adjusted EBITDA: $809 million, with a 40 basis point margin decline to 42.3%.
• Legal Professionals Organic Revenue Growth: 8%.
• Corporates Organic Revenue Growth: 9%.
• Tax & Accounting Organic Revenue Growth: 11%.
• Reuters News Organic Revenue Decline: 7%.
• Global Print Organic Revenue Decline: 5%.
• Adjusted EPS: $1.12, compared to $1.11 in the prior year period.
• Free Cash Flow: $277 million, up 3% from the prior year period.
• Dividend Increase: 10% to $2.38 per share.
• Acquisition: SafeSend for $600 million.

Release Date: May 01, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Thomson Reuters Corp (NASDAQ:TRI) reported a strong start to 2025 with total company organic revenues rising 6%, and the Big 3 segments growing by 9%.
• The company reaffirmed its full-year 2025 outlook, expecting organic growth in the range of 7% to 7.5%, with margins projected to rise by 75 basis points to approximately 39%.
• Key products such as CoCounsel, SurePrep, and SafeSend showed double-digit growth, contributing to the company's positive performance.
• Thomson Reuters Corp (NASDAQ:TRI) continues to invest heavily in innovation, launching new products like CoCounsel Tax, Audit and Accounting, and enhancing existing offerings with AI capabilities.
• The company completed the acquisition of SafeSend for $600 million, which is integrating smoothly and contributing positively to the business.

Negative Points

• Reuters News segment saw a 7% decline in organic revenues due to a difficult comparison with the previous year's AI-related transactional content licensing revenue.
• Global Print organic revenues declined by 5%, in line with expectations, reflecting ongoing challenges in this segment.
• Adjusted EBITDA was essentially unchanged year over year at $809 million, with a 40 basis point margin decline to 42.3%.
• The company faces potential challenges from economic uncertainties, including the impact of trade wars and tariff changes, which could affect customer spending patterns.
• Despite strong performance, there is a level of nervousness among customers regarding the economic backdrop for the rest of the year, which could impact future demand.

Q & A Highlights

Q: Have you seen any changes in demand or buying patterns due to the trade war? A: Steve Hasker, CEO, noted that they have not seen changes in demand yet. The business remains resilient with over 80% recurring revenues. However, there is a level of nervousness among customers about the economic backdrop and tariff implications. Michael Eastwood, CFO, added that their sales and renewal pipelines remain strong with consistent order values.

Q: Are there any segments more vulnerable to a slowdown in buying? A: Michael Eastwood, CFO, stated that they do not foresee significant impacts on any segments. The transactional revenue, which is 12% of the total, is largely repeat business. Global Print, which is 7% of total revenue, has 45% governed by multiyear contracts. Reuters News' digital advertising and events are only about 1.5% of total revenue.

Q: Can you elaborate on the growth potential of the CoCounsel Drafting product? A: Steve Hasker, CEO, emphasized that drafting is a critical task for legal professionals, and automating it offers significant efficiency and accuracy improvements. While he didn't provide a specific TAM, he highlighted the unique value of their proprietary content sets in creating accurate drafts.

Q: How are you approaching GenAI monetization across different segments? A: Michael Eastwood, CFO, explained that they focus on pricing to value, maintaining enterprise-wide pricing rather than per seat. They are mindful of variable costs, including those associated with large language models, and are pleased with the overall pricing strategy.

Q: What drives the acceleration in organic growth for the remainder of the year? A: Michael Eastwood, CFO, attributed the acceleration to strong net sales and bookings across the Big 3 segments. He highlighted the product roadmap and recent acquisitions as key factors supporting continued growth.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.