By Kenneth Li
(Reuters) -Thomson Reuters reported larger than anticipated third-quarter income of $1.72 billion on Tuesday, because it continued to spend money on generative AI.
The Toronto-based content material and expertise firm mentioned it was spending greater than $200 million on AI investments in 2024. This was up from greater than $100 million in 2023, executives mentioned.
Thomson Reuters (NYSE:) additionally mentioned it now has about $10 billion to spend on potential acquisitions by way of 2027.
“We remain focused on driving innovation across our portfolio and markets to best serve our customers, demonstrated by our investment in AI now increasing to more than $200 million in 2024,” Thomson Reuters CEO Steve Hasker mentioned in an announcement.
Thomson Reuters merchandise already embody Westlaw AI and CoCounsel, which is a chat-based generative AI (GenAI) assistant that may assist authorized professionals draft paperwork, sift by way of analysis and find info scattered throughout sources.
In August, Thomson Reuters introduced the acquisition of Secure Signal Applied sciences, a British-based firm creating massive language fashions for the authorized trade.
In October, it introduced the acquisition of Materia, which makes so-called agentic AI assistants, which may carry out duties and remedy advanced issues on their very own, for the tax and accounting industries.
Hasker mentioned in an interview that new expertise acquisitions might apply to the broader product portfolio sooner or later.
Thomson Reuters may even introduce one option to observe the worth of its generative AI investments to the enterprise, chief monetary officer Michael Eastwood mentioned in an interview.
Eastwood mentioned about 15% of Thomson Reuters’ underlying annual contract worth, which breaks down a contract’s whole worth by yr, of about $6 billion now comes from generative AI.
Thomson Reuters reported an 8% rise in quarterly income to $1.72 billion, which LSEG knowledge confirmed was simply forward of analyst expectations. Adjusted earnings per share for the interval have been 80 cents. Wall Road had anticipated a revenue per share of 76 cents.
The corporate mentioned it now anticipated full-year natural income to rise by about 7%, up from an earlier expectation of about 6.5%. Natural income is reported on a continuing foreign money foundation and excludes the impression of acquisitions and asset gross sales.
Acquisitions helped drive income rises at a number of the “Big 3” Thomson Reuters companies, with income at its authorized, corporates, and tax and accounting companies up by 9%.
Reuters Information income, which rose 10%, benefited from acquisitions and generative AI-related licensing income.
