v3.22.1
Revenue Recognition
 3 Months Ended
Mar. 31, 2022
Revenue From Contract With Customer [Abstract]  
Revenue Recognition

3. REVENUE RECOGNITION

MSCI’s operating revenues are reported by product type, which generally reflects the timing of recognition. The Company’s operating revenue types are recurring subscriptions, asset-based fees and non-recurring revenues. The Company also disaggregates operating revenues by segment.

The tables that follow present the disaggregated operating revenues for the periods indicated:

 

 

 

For the Three Months ended March 31, 2022

 

 

 

Segments

 

 

 

 

 

(in thousands)

 

Index

 

 

Analytics

 

 

ESG and Climate

 

 

All Other - Private Assets

 

 

Total

 

Operating Revenue Types

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Recurring subscriptions

 

$

174,498

 

 

$

137,799

 

 

$

50,572

 

 

$

36,891

 

 

$

399,760

 

Asset-based fees

 

 

145,053

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

145,053

 

Non-recurring

 

 

11,208

 

 

 

1,998

 

 

 

1,457

 

 

 

469

 

 

 

15,132

 

Total

 

$

330,759

 

 

$

139,797

 

 

$

52,029

 

 

$

37,360

 

 

$

559,945

 

 

 

 

 

For the Three Months ended March 31, 2021

 

 

 

Segments

 

 

 

 

 

(in thousands)

 

Index

 

 

Analytics

 

 

ESG and Climate

 

 

All Other - Private Assets

 

 

Total

 

Operating Revenue Types

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Recurring subscriptions

 

$

155,117

 

 

$

131,672

 

 

$

34,140

 

 

$

16,803

 

 

$

337,732

 

Asset-based fees

 

 

126,706

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

126,706

 

Non-recurring

 

 

10,668

 

 

 

2,345

 

 

 

610

 

 

 

362

 

 

 

13,985

 

Total

 

$

292,491

 

 

$

134,017

 

 

$

34,750

 

 

$

17,165

 

 

$

478,423

 

 

 

 

The tables that follow present the change in accounts receivable and current deferred revenue between the dates indicated:

 

 

 

Accounts receivable

 

 

Deferred revenue

 

 

 

(in thousands)

 

Opening (December 31, 2021)

 

$

664,511

 

 

$

824,912

 

Closing (March 31, 2022)

 

 

592,326

 

 

 

832,203

 

Increase/(decrease)

 

$

(72,185

)

 

$

7,291

 

 

 

 

Accounts receivable

 

 

Deferred revenue

 

 

 

(in thousands)

 

Opening (December 31, 2020)

 

$

558,569

 

 

$

675,870

 

Closing (March 31, 2021)

 

 

506,849

 

 

 

672,054

 

Increase/(decrease)

 

$

(51,720

)

 

$

(3,816

)

 

 

The amount of revenue recognized in the period that was included in the opening current deferred revenue, which reflects contract liability amounts, was $339.7 million and $270.3 million for the three months ended March 31, 2022 and 2021, respectively. The difference between the opening and closing balances of the Company’s deferred revenue is primarily driven by an increase in billings, partially offset by an increase in amortization of deferred revenue to operating revenues. As of March 31, 2022 and December 31, 2021, the Company carried a long-term deferred revenue balance of $24.4 million and $23.4 million, respectively, in “Other non-current liabilities” on the Unaudited Condensed Consolidated Statement of Financial Condition.

For contracts that have a duration of one year or less, the Company has not disclosed either the remaining performance obligation as of the end of the reporting period or when the Company expects to recognize the revenue. The remaining performance obligations for contracts that have a duration of greater than one year and the periods in which they are expected to be recognized are as follows:

 

 

 

As of

 

 

 

March 31,

 

 

 

2022

 

 

 

(in thousands)

 

First 12-month period

 

$

502,988

 

Second 12-month period

 

 

291,127

 

Third 12-month period

 

 

101,402

 

Periods thereafter

 

 

61,645

 

Total

 

$

957,162