Profits exceed expectations on steady legal information flows to professionals
01 November 2023 - 17:14
byReuters
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Thomson Reuters' offices in Times Square, New York, the US, October 29 2013. Picture: REUTERS/CARLO ALLEGRI
New York — Thomson Reuters reported higher-than-expected third-quarter profit on Wednesday as its biggest divisions serving legal, tax and accounting professionals performed well amid economic uncertainty.
The provider of information and tools for lawyers, accountants and other professionals reported adjusted earnings of 82 US cents per share, above analyst forecasts of 71c.
Thomson Reuters, which owns the Westlaw legal database, Reuters news agency and the Checkpoint tax and accounting service, announced a new $1bn share repurchase programme, and maintained its 2023 outlook except for updates to depreciation and amortisation, and interest expense.
Total revenue rose 1% in the quarter to $1.59bn, missing expectations of $1.61bn, according to LSEG data.
In an interview, CEO Steve Hasker said the company has made significant progress in making generative AI a key component of its products. Generative AI is a type of artificial intelligence that generates new content or data in response to a prompt or question by a user.
On November 15, the company will launch AI enhancements to its flagship product, Westlaw Precision, in the US. Using a chat-based interface, new features will allow legal customers to ask a question in conversational format and receive an accurate answer in seconds, drawing from Thomson Reuters content.
“There’s nothing experimental about it,” Hasker said. “It will be a full-fledged launch.”
In the first half of 2024, Thomson Reuters will launch new AI products beginning with legal, and later with tax and accounting, around “intelligent contract analysis and drafting” in partnership with Microsoft.
Hasker said the company achieved “solid momentum” despite an uncertain economic environment.
Organic revenues in the Legal Professionals segment increased 6%, while total revenue fell 2%, reflecting sales of some divisions. Thomson Reuters sold a majority stake in Elite, a vendor of business management software for law firms, earlier in 2023 to private equity firm TPG.
Organic revenues in the Reuters News division increased 3% in the quarter, driven by a contractual price increase and digital advertising.
Thomson Reuters has earmarked $10bn for acquisitions and about $100m per year in investments in AI capabilities.
In August, the company closed its $650m cash acquisition of Casetext, a California-based AI company that helps legal professionals conduct research, analysis and prepare documents using generative AI.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Thomson Reuters on track with AI talking law
Profits exceed expectations on steady legal information flows to professionals
New York — Thomson Reuters reported higher-than-expected third-quarter profit on Wednesday as its biggest divisions serving legal, tax and accounting professionals performed well amid economic uncertainty.
The provider of information and tools for lawyers, accountants and other professionals reported adjusted earnings of 82 US cents per share, above analyst forecasts of 71c.
Thomson Reuters, which owns the Westlaw legal database, Reuters news agency and the Checkpoint tax and accounting service, announced a new $1bn share repurchase programme, and maintained its 2023 outlook except for updates to depreciation and amortisation, and interest expense.
Total revenue rose 1% in the quarter to $1.59bn, missing expectations of $1.61bn, according to LSEG data.
In an interview, CEO Steve Hasker said the company has made significant progress in making generative AI a key component of its products. Generative AI is a type of artificial intelligence that generates new content or data in response to a prompt or question by a user.
On November 15, the company will launch AI enhancements to its flagship product, Westlaw Precision, in the US. Using a chat-based interface, new features will allow legal customers to ask a question in conversational format and receive an accurate answer in seconds, drawing from Thomson Reuters content.
“There’s nothing experimental about it,” Hasker said. “It will be a full-fledged launch.”
In the first half of 2024, Thomson Reuters will launch new AI products beginning with legal, and later with tax and accounting, around “intelligent contract analysis and drafting” in partnership with Microsoft.
Hasker said the company achieved “solid momentum” despite an uncertain economic environment.
Organic revenues in the Legal Professionals segment increased 6%, while total revenue fell 2%, reflecting sales of some divisions. Thomson Reuters sold a majority stake in Elite, a vendor of business management software for law firms, earlier in 2023 to private equity firm TPG.
Organic revenues in the Reuters News division increased 3% in the quarter, driven by a contractual price increase and digital advertising.
Thomson Reuters has earmarked $10bn for acquisitions and about $100m per year in investments in AI capabilities.
In August, the company closed its $650m cash acquisition of Casetext, a California-based AI company that helps legal professionals conduct research, analysis and prepare documents using generative AI.
Reuters
Microsoft pulls ahead of Alphabet in race for the cloud
Bytes shares jump on upbeat AI outlook
Big push for mainstream AI use
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Most Read
Published by Arena Holdings and distributed with the Financial Mail on the last Thursday of every month except December and January.