Bloomberg LP, the financial data and information company, brought in record revenue in 2018, surpassing $10 billion for the first time, according to insiders who were informed by senior management.
The milestone has tangible meaning for some employees, who are in line to receive an additional bonus thanks to an incentive plan set up years ago to entice the staff to push for revenue gains.
Bloomberg employees who joined the company before 2013 will receive an added bonus paid out in March, according to a person with knowledge of the matter. Staff members who worked at the media company when the incentive program was first announced in 2008 are eligible to receive 25% of their average annual compensation over the period, while those who joined later will have their payout prorated, according to a memo sent to employees and viewed by Business Insider.
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Nearly half of the almost 20,000 employees are eligible for some payout and were told last week, the person said.
The payout could have been higher if Bloomberg had hit the $10 billion mark sooner. The New York Post reported in December 2010 that the firm told employees the bonus, known as 10B, would equal 70% of their average pay if the company reached $10 billion in revenue by June 2014. The bonus as a percentage of annual revenue then gradually declined. At the time, 12-month trailing revenue was less than $7 billion.
But by 2012, expectations for reaching $10 billion in revenue had run into the reality of the financial crisis and job cuts across Wall Street, which limited demand for terminals that run north of $24,000 a year. In a memo late that year, according to Politico, Bloomberg told employees it would pay them an interim bonus in 2014, with the remainder paid out whenever the firm reached $10 billion in revenue.
Bloomberg, known for its terminals that are ubiquitous on Wall Street trading floors, finally reached the milestone by diversifying away from those machines, Jennifer Milton, an analyst at Burton-Taylor International Consulting, wrote in a LinkedIn post earlier this week.
Growth in Bloomberg's non-terminal revenue such as data and research tools outpaced the terminal revenue in 2018 and now accounts for 23% of total revenue, she wrote. The post also mentioned the $10 billion revenue figure, saying it was an estimate.
A Bloomberg spokesman declined to comment.