Core Insights - FactSet Research (FDS) reported revenue of $570.66 million for the quarter ended February 2025, reflecting a year-over-year increase of 4.5% [1] - Earnings per share (EPS) for the quarter was $4.28, slightly up from $4.22 in the same quarter last year, with an EPS surprise of +2.15% compared to the consensus estimate of $4.19 [1] Financial Performance Metrics - Total Annual Subscription Value (ASV) reached $2.31 billion, exceeding the average estimate of $2.30 billion [4] - Total Users stood at 219,141, slightly below the average estimate of 221,880 [4] - Total Clients increased to 8,645, surpassing the average estimate of 8,325 [4] - ASV from domestic clients was $1.50 billion, above the average estimate of $1.48 billion [4] - ASV from international clients was $805 million, slightly below the average estimate of $811.93 million [4] - ASV from buy-side clients was 82.3%, marginally above the estimated 82.2% [4] - ASV from sell-side clients was 17.7%, below the estimated 17.9% [4] Revenue Breakdown - Revenues from US clients were $369.7 million, exceeding the average estimate of $369.19 million, with a year-over-year change of +4.9% [4] - Revenues from international clients were $201 million, slightly below the average estimate of $201.57 million, reflecting a +4% year-over-year change [4] - Revenues from clients in EMEA were $143.40 million, close to the average estimate of $144.53 million, with a +3% year-over-year change [4] - Revenues from clients in the Asia Pacific region were $57.60 million, above the average estimate of $57.33 million, representing a +6.5% year-over-year change [4] Stock Performance - FactSet shares have returned -6% over the past month, compared to a -7.5% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

FactSet (FDS) Q2 2025 Earnings Call March 20, 2025 09:00 AM ET Company Participants Yet He - Global Head of FP&A and TreasurerPhilip Snow - CEOHelen Shan - Executive VP & CFOGoran Skoko - EVP, Chief Revenue OfficerShlomo Rosenbaum - Managing DirectorAlex Kramm - Managing Director - Equity ResearchFaiza Alwy - Managing Director, US Company ResearchBrendan Popson - Vice President - Business, Information & Professional Services Equity ResearchRyan Griffin - Senior Equity Research Associate Conference Call Part ...

FactSet (FDS) Q2 2025 Earnings Call March 20, 2025 09:00 AM ET Company Participants Yet He - Global Head of FP&A and TreasurerPhilip Snow - CEOHelen Shan - Executive VP & CFOGoran Skoko - EVP, Chief Revenue OfficerShlomo Rosenbaum - Managing DirectorAlex Kramm - Managing Director - Equity ResearchFaiza Alwy - Managing Director, US Company ResearchBrendan Popson - Vice President - Business, Information & Professional Services Equity ResearchRyan Griffin - Senior Equity Research Associate Conference Call Part ...

Thursday, March 20, 2025 FactSet Earnings Call Second Quarter Fiscal 2025 Copyright © 2022 FactSet Research Systems Inc. All rights reserved. Confidential: Do not forward. Copyright © 2025 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only Forward-Looking Statements and Non-GAAP Measures This presentation, and other statements that FactSet may make in connection with this presentation, contains forward-looking statements based on management's current expectations, assumptions, esti ...

Company Performance - FactSet reported quarterly earnings of $4.28 per share, exceeding the Zacks Consensus Estimate of $4.19 per share, and showing a slight increase from $4.22 per share a year ago, representing an earnings surprise of 2.15% [1] - The company posted revenues of $570.66 million for the quarter ended February 2025, matching the Zacks Consensus Estimate and up from $545.95 million year-over-year [2] - Over the last four quarters, FactSet has surpassed consensus EPS estimates four times and topped consensus revenue estimates three times [2] Stock Outlook - FactSet shares have declined approximately 8.7% since the beginning of the year, compared to a 3.5% decline in the S&P 500 [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the next quarter is $4.37 on revenues of $577.8 million, and for the current fiscal year, it is $17.15 on revenues of $2.3 billion [7] Industry Context - The Business - Information Services industry, to which FactSet belongs, is currently ranked in the bottom 19% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact FactSet's stock performance [5]

Core Insights - FactSet reported a solid financial performance for Q2 fiscal 2025, with GAAP revenues of $570.7 million, reflecting a 4.5% increase year-over-year. Organic revenues grew by 4.0% to $568.0 million, driven primarily by wealth and institutional buy-side clients [4][5][6]. Financial Performance - Q2 GAAP operating margin was 32.5%, down approximately 80 basis points from the previous year, while adjusted operating margin decreased to 37.3%, down 100 basis points year-over-year [4][5]. - GAAP diluted EPS increased by 3.0% to $3.76, and adjusted diluted EPS rose by 1.4% to $4.28 compared to the same period last year [4][5]. - Free cash flow for Q2 was $150.2 million, a 23.3% increase from $121.9 million in the prior year [4][5][38]. Annual Subscription Value (ASV) - ASV reached $2,306.1 million as of February 28, 2025, up from $2,185.6 million a year earlier, with organic ASV growing by 4.1% to $2,276.2 million [6][7]. - The buy-side organic ASV growth rate was 4.1%, while sell-side growth was 2.2% [7]. Segment Performance - ASV from the Americas was $1,501.1 million, with organic ASV increasing by 4.4% to $1,474.9 million. Revenues from the Americas rose to $369.7 million [8]. - ASV from EMEA was $571.3 million, with organic ASV increasing by 2.6% to $571.4 million. EMEA revenues were $143.4 million [9]. - ASV from Asia Pacific was $233.7 million, with organic ASV increasing by 6.8% to $229.9 million. Asia Pacific revenues were $57.6 million [10]. Client and User Metrics - The client count as of February 28, 2025, was 8,645, reflecting a net increase of 396 clients in the past three months [11]. - The user count was 219,141, with a net increase of 874 users, primarily driven by growth in wealth management users [11]. Share Repurchase and Dividends - FactSet repurchased 136,714 shares for $64.4 million at an average price of $470.70 during Q2, with $186.9 million remaining for future repurchases [12]. - A quarterly dividend of $39.5 million, or $1.04 per share, was declared [16]. Business Outlook - The company reaffirmed its guidance for fiscal 2025, expecting organic ASV growth of $100 million to $130 million and GAAP revenues in the range of $2,305 million to $2,325 million [17][37].

Financial Performance - Q2 GAAP revenues reached $570.7 million, a 4.5% increase from Q2 2024, driven by growth in wealth and institutional buy-side clients [4]. - Organic Q2 ASV was $2,276.2 million, reflecting a year-over-year growth of 4.1% or $90.7 million [4]. - GAAP diluted EPS increased by 3.0% to $3.76, while adjusted diluted EPS rose 1.4% to $4.28 compared to the prior year [4]. - FactSet's revenues for the three months ended February 28, 2025, were $570,660,000, representing a 4.5% increase from $545,945,000 for the same period in 2024 [28]. - Organic revenues for the same period were $567,985,000, reflecting a 4.0% growth compared to the previous year [33]. - The company's net income for the six months ended February 28, 2025, was $294,882,000, up from $289,495,000 in the prior year [31]. - Net income for the three months ended February 28, 2025, was $144,860, a 2.8% increase from $140,940 in the same period of 2024 [36]. - Adjusted net income rose to $164,976, reflecting a 1.2% increase from $163,067 year-over-year [36]. - Free cash flow increased by 23.3% to $150,219 compared to $121,881 in the prior year [39]. Guidance and Projections - Fiscal 2025 guidance anticipates organic ASV growth of $100 million to $130 million, equating to approximately 4.4% to 5.8% [4]. - Adjusted diluted EPS is expected to remain unchanged in the range of $16.80 to $17.40, while GAAP diluted EPS is projected to decrease to $14.80 to $15.40 from a previous range of $15.10 to $15.70 [24]. - The company expects annual revenues for fiscal 2025 to be between $2,305 million and $2,325 million [38]. - Adjusted diluted earnings per share (EPS) is projected to be between $17.40 and $16.80 for fiscal 2025 [38]. - Adjusted operating margin is expected to range from 36.0% to 37.0% for fiscal 2025 [38]. Client and User Metrics - Client count as of February 28, 2025, was 8,645, with a net increase of 396 clients in the past three months [16]. - User count reached 219,141, marking a net increase of 874 users, primarily in wealth management [16]. - Annual ASV retention exceeded 95%, with client retention at 91% [16]. - The percentage of ASV from buy-side clients was 82.3% in Q2'25, showing a slight increase from 82.1% in Q1'25 [42]. Investments and Acquisitions - FactSet repurchased 136,714 shares for $64.4 million at an average price of $470.70 during Q2 2025 [13]. - The acquisition of LiquidityBook enhances FactSet's capabilities in order management and investment book of record [16]. - The company has made significant investments in acquisitions, with $342,461,000 spent on acquiring businesses in the current period [31]. Financial Position - FactSet's total assets increased to $4,241,442,000 as of February 28, 2025, compared to $4,055,040,000 on August 31, 2024 [30]. - Total stockholders' equity increased to $2,056,917,000 as of February 28, 2025, from $1,912,460,000 in the previous period [30]. - FactSet's cash and cash equivalents decreased to $278,548,000 as of February 28, 2025, from $422,979,000 at the beginning of the period [30]. - The company reported cash flows from operating activities of $260,327,000 for the six months ended February 28, 2025, down from $298,942,000 in the same period last year [31]. Operating Performance - Operating income for the three months ended February 28, 2025, was $185,492, a 2.0% increase from $181,942 in the same period of 2024 [36]. - The operating margin for the three months ended February 28, 2025, was 32.5%, down from 33.3% in the previous year [36].

Core Insights - Analysts expect FactSet Research (FDS) to report quarterly earnings of $4.19 per share, reflecting a year-over-year decline of 0.7% [1] - Revenue projections stand at $570.21 million, indicating a 4.4% increase from the previous year [1] - The consensus EPS estimate has been adjusted downward by 0.4% over the past 30 days, showing a reassessment by analysts [1][2] Revenue Breakdown - 'Revenues from clients- US' are projected to reach $368.02 million, a year-over-year change of +4.4% [4] - 'Revenues from clients- International' are estimated at $201.57 million, reflecting a +4.3% change from the previous year [4] - 'Revenues from clients- EMEA' are expected to be $144.53 million, indicating a +3.8% year-over-year change [4] - 'Revenues from clients- Asia Pacific' are likely to reach $57.33 million, with a year-over-year change of +6% [5] Subscription Value and User Metrics - The estimated 'Total Annual Subscription Value' is projected at $2.30 billion, up from $2.21 billion in the same quarter last year [5] - 'Total Users' are expected to reach 221,880, compared to 206,478 in the same quarter of the previous year [6] - 'ASV - Domestic' is predicted to be $1.48 billion, up from $1.42 billion year-over-year [6] - 'ASV - International' is estimated at $811.93 million, compared to $773.10 million in the same quarter last year [7] Client Segmentation - 'ASV from buy-side clients' is expected to reach 82.2%, up from 82% year-over-year [7] - 'ASV from sell-side clients' is projected at 17.9%, slightly down from 18% in the previous year [7] Market Performance - FactSet shares have returned -4.2% over the past month, compared to the Zacks S&P 500 composite's -7.7% change [8] - With a Zacks Rank 4 (Sell), FDS is anticipated to underperform the overall market in the near future [8]

Core Viewpoint - FactSet has appointed Kevin Toomey as the new Head of Investor Relations, succeeding Yet He, who will continue as Treasurer and Head of Financial Planning and Analysis [1][2]. Group 1: Leadership Transition - Kevin Toomey brings over 20 years of experience in investor relations, equity research, and financial markets [2][3]. - Yet He expressed gratitude for the opportunity to lead investor relations and confidence in Toomey's ability to enhance stakeholder engagement [2]. Group 2: Kevin Toomey's Background - Prior to joining FactSet, Toomey was Vice President of Investor Relations at Secureworks, where he managed strategic communications during significant company changes [2]. - He previously established the first investor relations program at Latch, Inc. after its IPO and spent over a decade at Citigroup in senior equity research and sales roles [3]. Group 3: Company Overview - FactSet serves over 8,200 global clients, including more than 218,000 individual users, providing financial data, analytics, and technology solutions [5]. - The company is recognized for its commitment to sustainable growth and was awarded the Glassdoor Employees' Choice Award in 2023 [5].

Core Points - FactSet has rescheduled its second quarter fiscal 2025 earnings conference call to 9:00 a.m. Eastern Time on March 20, 2025, from the previously scheduled 11:00 a.m. Eastern Time [1] - The earnings presentation slides will be available on FactSet's investor relations website at 8:30 a.m. Eastern Time on the same day, 30 minutes before the call begins [2] - A replay of the webcast will be available after the call, and all other details, including dial-in information and webcast link, remain unchanged [2] Company Overview - FactSet is a global financial digital platform and enterprise solutions provider, serving over 8,200 global clients and more than 218,000 individual users [3] - The company offers financial data, analytics, and open technology to clients across various sectors, including buy-side, sell-side, wealth management, private equity, and corporations [3] - FactSet is a member of the S&P 500 and has been recognized as one of the Best Places to Work in 2023 by Glassdoor [3]