In the spirit of the table provided in the 12/22/22 8K on the drivers of the change in operating margin, would it be possible to speak to the drivers of operating margin change in Q4 2022? Specifically, how much of the margin change was due to the higher decrementals in DBRS (and associated revenue decline) vs. Pitchbook management bonus plan impact vs. other drivers?

May 12, 2023

You are correct that both the DBRS Morningstar revenue decline and the increase in stock-based compensation related to the PitchBook plan were large drivers of the year-over-year margin change as noted in our fourth quarter earnings release. Excluding the impact of both items and making certain cost allocation assumptions and estimates, our adjusted operating margins would have been relatively flat in the fourth quarter of 2022 vs the prior-year period. That analysis assumes certain cost allocation assumptions and estimates.

For more detail on the discussions of directional, estimated margins by revenue type and product group, including assumptions and limitations, please refer to the 8-K filed on May 11, 2023.

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