You’re correct to note the slowdown in organic revenue growth in 2024 for Morningstar Data and Analytics and the Morningstar Data product area. In FY 24, Morningstar Data and Analytics revenue grew 5.5%, or 5.8% on an organic basis, compared to 2023. Year-over-year revenue growth slowed from 9.4% (8.9% organic) in Q1 24 to 1.7% (3.6% organic) in Q4 24. In Q4 24, Morningstar Data revenue increased 4.9% or 4.8% on an organic basis compared to the prior-year period, at a slower pace than its 6.6% organic growth rate for FY 24.
Slower growth has been driven in part by softness in areas outside our core products in Morningstar Data and Analytics (such as Morningstar Direct and managed investment data in Morningstar Data), including in areas where we’ve shifted our approach. For example, we are managing the exchange market data product (included in Morningstar Data) for profitability rather than revenue growth, and revenue for that product declined over Q4 and FY 24. In 2024 we also changed our model for Direct Web Services to one that we believe is more scalable and have seen an expected increase in churn as a result. Finally, in 2024 we lost a large research distribution client that decided to take its research in-house and softness in research distribution contributed to slower growth in Q3 24 and Q4 24.
While our core products generally outperformed the broader Morningstar Data and Analytics segment, growth did slow in parts of this group as well. So, for example, managed investment (fund) data, grew at a slower rate organically in 2024 compared to 2023. Morningstar Direct grew at a slightly higher rate organically in 2024 compared to 2023, but did experience a slowdown in year-over-year growth in Q4 24 relative to earlier quarters. The slowdown in these core products was driven in part by two factors, as addressed in more detail in related questions this month. First, we rolled out larger than typical price increases starting in Q1 23 that contributed to growth through the first half of 2024. (For Morningstar Data, we saw this impact in a particularly strong Q4 23, impacting the Q4 24 comparable.) Since then, price increases have been more typical of prior years. Second, a number of clients entered into multi-year contracts as we implemented the price increase, leaving us with fewer opportunities for expansion in 2024. (For more detail on the Morningstar Direct trend, please see a related question this month.)
Finally, we were delayed in launching new functionality in Morningstar Advisor Workstation in 2024, contributing to weak growth. In January 2025, we launched Direct Advisory Suite, which represents the next generation of Morningstar Advisor Workstation.