Morningstar (NASDAQ: MORN) reported Q2 EPS of $0.98, versus $0.97 reported last year. Revenue for the quarter came in at $273.9 million, versus $252.4 million reported last year.

Second-Quarter Financial Highlights

• Revenue increased 8.5% to $273.9 million; organic revenue growth increased 10.0%.
• Operating income declined 5.2% to $50.8 million.
• Diluted net income per share increased 1.0% to $0.98, versus $0.97 in the second quarter of 2018. Quarterly results include an increase in stock-based compensation related to the PitchBook management bonus plan and transaction expenses from the recently completed DBRS acquisition, which reduced diluted net income per share by $0.07.
• Cash provided by operating activities increased 24.9% to $87.2 million; free cash flow increased 33.0% to $68.9 million.

"Our investments in data, research, and ratings capabilities continue to resonate with investors," said Kunal Kapoor, Morningstar's chief executive officer. "We announced forthcoming enhancements to the Morningstar Analyst Rating and Morningstar Sustainability Rating for funds, while leveraging the strength of our equity research to win a significant deal with BNP Paribas in Asia. Demand for private market data and research fueled growth in PitchBook's user base and revenue, and ongoing momentum in Morningstar Credit Ratings is an excellent backdrop to the integration of DBRS. All of these examples highlight our unique and strengthening ability to provide insights across any investor\'s portfolio."

Update on Key Product Areas

Morningstar tracks the performance of key product areas expected to provide a greater contribution to growth as part of its long-term strategy, which include Morningstar Data, Morningstar Direct, PitchBook, Workplace Solutions, Morningstar Managed Portfolios, and Morningstar Credit Ratings. Combined, these areas had organic revenue growth of 17.4% in the second quarter of 2019. The highlights below summarize key operating metrics for the quarter ended June 30, 2019, compared with the same period in 2018.

• Revenue for Morningstar Data was up 8.0% to $49.7 million.
• Morningstar Direct licenses increased 7.3% to 15,521 and revenue grew 7.6% to $36.8 million.
• PitchBook Platform licenses increased 61.8% to 29,398 and revenue grew 47.5% to $35.1 million.
• Assets under management and advisement in Morningstar Managed Portfolios increased 3.4% to $46.2 billion as of June 30, 2019.
• Assets under management and advisement for Workplace Solutions rose 11.6% to $147.6 billion as of June 30, 2019.
• Morningstar Credit Ratings completed 46 new-issue ratings, compared with 32 in the second quarter of 2018, representing a 20.5% increase in the asset value of the issues rated. Revenue grew 23.3%.

For earnings history and earnings-related data on Morningstar (MORN) click here.