RiskMetrics posts full year results

Source: RiskMetrics

RiskMetrics Group, a leading provider of risk management and corporate governance products and services to participants in the global financial markets, today announced financial results for the fourth quarter and year ended December 31, 2007.

Earnings Highlights (The following pro forma results give effect to the January 11, 2007, acquisition of Institutional Shareholder Services as if the transaction had closed on January 1, 2006. The ISS acquisition was material for the company and the pro forma results provide a better comparison of the ongoing business)
  • Fourth quarter 2007 revenue increased 28.5% on a pro forma basis to $67.6 million from $52.6 million in the comparable period of 2006. 2007 annual revenue increased 19.1% on a pro forma basis to $243.6 million from $204.5 million in 2006.
  • Fourth quarter Consolidated Adjusted EBITDA increased 38.8% in the fourth quarter to $21.5 million from $15.5 million in the fourth quarter of 2006. For the year, Consolidated Adjusted EBITDA was up 27.1% to $73.7 million in 2007, compared with $58.0 million in 2006.
  • Annualized contract value (ACV) increased 30.6% to approximately $250.2 million at December 31, 2007, on a pro forma basis.
  • Renewal rate stood at an all-time high at 91.4% for the year ended December 31, 2007.

"Our strong financial results reflect the market's continuing need for comprehensive risk systems, transparency in financial reporting and strong corporate governance" said Ethan Berman, Chief Executive Officer of RiskMetrics Group. "These factors, along with higher market volatility, have increased the demand for RiskMetrics' products, resulting in a more than 30% increase in average contract value and a renewal rate of 91.4%. We expect these trends to continue into the new year as institutions focus on implementing enhanced risk systems."

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