Core Insights - FactSet has acquired TableTop Data, Inc. (LogoIntern) to enhance junior banker productivity by automating the process of adding, organizing, and formatting logos in pitch decks [1][2] - The acquisition aligns with FactSet's commitment to improving efficiency in investment banking workflows, allowing junior bankers to focus on higher-value tasks [2][3] - LogoIntern, founded in 2016, provides a productivity solution that streamlines logo formatting for financial services professionals, with a client base that includes major investment banks and private equity firms [2][3] Company Overview - FactSet is a global financial digital platform that serves over 8,200 clients, including more than 218,000 individual users, providing financial data, analytics, and technology solutions [4] - The company is recognized for its commitment to sustainable growth and was awarded the Glassdoor Employees' Choice Award in 2023 [4]

Core Points - FactSet will release its financial and operating results for the second quarter of fiscal 2025 on March 20, 2025 [1] - A conference call to discuss these results will take place at 11:00 a.m. Eastern Time on the same day [2] Conference Call Details - The conference call is scheduled for Thursday, March 20, 2025, at 11:00 a.m. Eastern Time [2] - Participants must register in advance to receive dial-in numbers and a unique access pin [2] - The call will include a live Q&A session [2] Earnings Presentation - Earnings presentation slides will be available on FactSet's investor relations website at 10:30 a.m. Eastern Time on March 20, 2025 [3] - A replay of the earnings call will be accessible on the investor relations website after 1:00 p.m. Eastern Time on March 20, 2025, until March 20, 2026 [3] - The earnings call transcript will be available via FactSet CallStreet [3] Company Overview - FactSet provides financial data, analytics, and technology solutions to over 8,200 global clients, including more than 218,000 individual users [4] - The company is recognized as a member of the S&P 500 and has been awarded the Glassdoor Employees' Choice Award in 2023 [4]

Core Insights - FactSet announced the acquisition of LiquidityBook for a gross purchase price of $246.5 million in cash, aimed at enhancing its technology-forward order management (OMS) and investment book of record (IBOR) capabilities [1][5] Company Overview - LiquidityBook provides cloud-native trading solutions to hedge funds, asset and wealth management firms, and sell-side middle office clients, operating a proprietary FIX network that connects over 200 brokers and routes orders to more than 1,600 destinations across 80 markets globally [2][9] - Founded in 2005 and headquartered in New York, LiquidityBook has approximately 70 employees and offers a modular platform for the full trading life cycle, enabling multi-asset class portfolio, order, and execution management capabilities [4][9] Strategic Partnership - Over the past year, FactSet and LiquidityBook partnered to integrate LiquidityBook's OMS into the FactSet Workstation, linking various steps in the front office trade workflow, from security research to trade execution [3] - The acquisition is expected to accelerate FactSet's mission to connect the front office with the middle office, enhancing its ability to serve integrated workflow needs across the portfolio life cycle [3][4] Financial Implications - The acquisition closed on February 7, 2025, and was funded through borrowings under FactSet's existing revolving credit facility, with expectations of modest dilution to FactSet's fiscal 2025 GAAP and adjusted diluted EPS [5][6] Market Position - FactSet aims to streamline workflows across the entire portfolio life cycle, reducing clients' total cost of ownership and allowing them to focus on actionable investment decisions rather than navigating disparate platforms [4] - LiquidityBook's CEO emphasized the company's focus on developing a modular solution on scalable architecture to support sophisticated multi-asset trading workflows, positioning it as a disruptive force in the market for nearly 20 years [5][9]

Core Insights - FactSet has launched Pitch Creator, a GenAI-powered solution aimed at transforming pitchbook creation for investment banks, significantly reducing manual work time from hours to minutes [1][3] - The solution integrates with Microsoft Office, allowing junior bankers to compile and analyze data efficiently, enhancing productivity and enabling a focus on strategic initiatives [2][3] Features of Pitch Creator - Pitch Creator utilizes FactSet Mercury, an AI chatbot, to facilitate natural language prompts for accessing templates, building slides, and extracting insights from data [2] - Key functionalities include: - **Search Intelligence**: Enables semantic searches across unstructured content, expediting idea generation for investment bankers [4] - **Chart Creator**: Allows users to generate dynamic graphs and charts through simple queries, enhancing presentation quality [4] - **Slide Assistant & ReSlide Capabilities**: Automates the creation of branded slides and content reconfiguration for presentations [4] - **Tombstone Generator**: Quickly generates tombstone slides for pitchbooks, automating repetitive formatting tasks [4] - **Template Assistant**: Provides access to over 200 pre-built Excel templates for modeling workflows [4] - **Office Cloud Refresh**: Facilitates secure model refresh tasks via FactSet servers, improving workflow efficiency [4] Strategic Impact - The introduction of Pitch Creator is expected to improve work-life balance for junior bankers, who typically work 80 to 100 hours per week, by streamlining workflows and enhancing efficiency [3] - The solution empowers junior bankers to deliver high-impact presentations by leveraging source-linked data and modern design elements [3]

Acquisition and Goodwill - The acquisition of Irwin was completed for a purchase price of $123.2 million, which includes contingent consideration of $12.7 million[81]. - Goodwill increased to $1.092 billion as of November 30, 2024, reflecting the acquisition of Irwin and foreign currency translations[86]. - The acquisition of Irwin is expected to enhance the company's capabilities in addressing the workflow needs of investor relations professionals[83]. - The company anticipates finalizing the purchase price allocation for Irwin within one year from the acquisition date[83]. Financial Performance - Revenues for the first quarter of fiscal 2025 were $568.7 million, representing a 4.9% increase from the prior year, driven by a 4.7% increase in organic revenues[170]. - The company reported income before income taxes of $179,739,000 for the three months ended November 30, 2024, compared to $175,196,000 for the same period in 2023, indicating a growth of approximately 1.4%[92]. - Net income for the three months ended November 30, 2024, was $150.0 million, a 1.0% increase from the previous year[217]. - Basic earnings per share (EPS) for the three months ended November 30, 2024, was $3.95, an increase from $3.91 in the same period of 2023[140]. - Diluted EPS for the three months ended November 30, 2024, was $3.89, an increase of 1.3% from $3.84 in the prior year[191]. Cash Flow and Liquidity - Net cash provided by operating activities for the three months ended November 30, 2024, was $86.4 million, a decrease of $68.8 million compared to $155.1 million for the same period in 2023[249]. - The company generated free cash flow of $60.5 million during the three months ended November 30, 2024, a decrease of $78.2 million compared to $138.7 million for the same period in 2023[256]. - Cash and cash equivalents decreased to $289.2 million from $423.0 million as of August 31, 2024[224]. - As of November 30, 2024, the company had short-term liquidity requirements of $62.5 million related to the outstanding balance of the 2022 Term Facility due March 1, 2025[230]. Debt and Interest Rates - Total debt as of November 30, 2024, was $1,359,103,000, a slight decrease from $1,365,973,000 as of August 31, 2024[104]. - The company entered into a new interest rate swap agreement with a notional amount of $200 million, which will decline by $50 million quarterly, with a fixed interest rate of 5.145%[75]. - Interest expense on outstanding debt for the three months ended November 30, 2024, was $14.367 million, compared to $16.729 million for the same period in 2023, reflecting a decrease of approximately 8.1%[121]. - The company entered into a 2024 Swap Agreement to hedge a portion of its floating SOFR debt with a fixed interest rate of 5.145%, maturing on February 28, 2025[115]. Taxation - The provision for income taxes for the three months ended November 30, 2024, was $29,717,000, resulting in an effective tax rate of 16.5%, up from 15.2% in the prior year[92][93]. Stockholder Returns - The company returned $88.0 million to stockholders in the form of share repurchases and dividends during the three months ended November 30, 2024[240]. - The company repurchased 104,475 shares for $48.8 million during the three months ended November 30, 2024[241]. - The Board of Directors approved a dividend of $1.04 per share for the first quarter of fiscal 2025, totaling $39.572 million, compared to $0.98 per share and $37.299 million for the same period in fiscal 2024[138]. Segment Performance - The Americas segment generated revenues of $367.2 million for the three months ended November 30, 2024, compared to $348.4 million in the same period of 2023, reflecting a growth of 5.3%[160]. - The EMEA segment reported revenues of $143.7 million for the three months ended November 30, 2024, up from $139.6 million in the prior year, marking a growth of 2.4%[160]. - The Asia Pacific segment's revenues increased to $57.7 million for the three months ended November 30, 2024, compared to $54.3 million in the same period of 2023, a growth of 6.9%[160]. Operating Metrics - Operating margin decreased to 33.6% for the three months ended November 30, 2024, down from 34.9% in the prior year period[172]. - Operating income rose by 1.2% to $191.3 million, with foreign currency exchange rate fluctuations decreasing operating income by $1.1 million[206]. - Cost of services as a percentage of revenues decreased to 45.5%, a reduction of 90 basis points year-over-year, primarily due to lower employee compensation costs[204]. - Selling, General and Administrative (SG&A) expenses increased by 16.7% to $118.6 million, driven by higher employee compensation costs and professional fees[205]. Assets and Capital Expenditures - Total assets as of November 30, 2024, were $4,048.6 million, slightly down from $4,055.0 million as of August 31, 2024[161]. - Capital expenditures for the three months ended November 30, 2024, totaled $25.9 million, compared to $16.5 million in the same period of 2023[160]. - Capital expenditures increased by 57.1% to $25.9 million for the three months ended November 30, 2024, compared to $16.5 million for the same period a year ago[244]. Derivative Instruments and Foreign Currency - The fair value of derivative instruments included in the balance sheet as of November 30, 2024, showed total derivative liabilities of $1.925 million[78]. - As of November 30, 2024, the gross notional value of foreign currency forward contracts was $180.4 million, a decrease from $188.2 million as of August 31, 2024[78]. - The company recognized a pre-tax derivative loss of $4.1 million in cash flow hedge accounting for the three months ended November 30, 2024[79]. - The total gross notional value of foreign currency forward contracts amounted to $180,419,000, compared to $188,155,000 as of August 31, 2024[260]. Employee and Stock-Based Compensation - Total stock-based compensation expense for the three months ended November 30, 2024, was $13.6 million, down from $14.3 million in the same period of 2023[148]. - The company had 3.3 million employee stock-based awards available for grant under the LTIP as of November 30, 2024[154]. - The estimated fair value of stock options granted on November 1, 2024, was $133.10, with a weighted average exercise price of $458.80[150].

FactSet Research Systems, Inc. (FDS) reported impressive first-quarter fiscal 2025 results, wherein earnings and revenues beat the Zacks Consensus Estimate.See Zacks Earnings Calendar to stay ahead of market-making news.The stock price has not witnessed any significant impact of the earnings beat since the company released results on Dec. 19.FDS’s earnings per share (excluding 48 cents from non-recurring items) of $4.4 beat the consensus mark by 1.6% and increased 6.1% from the year-ago quarter. Revenues of ...

If you’ve worked in banking or investment management, chances are you have used one of FactSet's products. FactSet has one of the best financial research tools on the Street. They have built a moatAnalyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alp ...

Following my coverage on FactSet Research Systems (NYSE: FDS ) in Sept’24, which I recommended a buy rating given the clear growth runway ahead of FDS, supported by the Fed cutting rates, this post is to provideI take a fundamentals-based approach to value investing.I disagree with the common misconception held by many investors that low multiple stocks must be cheap. I look for companies that offer the best long-term durability at the most affordable prices. Consequently, I have a propensity to be drawn to ...

Thursday, December 19, 2024 FactSet Earnings Call First Quarter Fiscal 2025 Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only Copyright © 2022 FactSet Research Systems Inc. All rights reserved. Confidential: Do not forward. 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, es ...

Financial Data and Key Metrics Changes - The company reported a 4.5% year-over-year growth in organic ASV, with adjusted operating margin at 37.6% and adjusted diluted EPS of $4.37 [9][30][40] - GAAP revenue increased by 4.9% to $569 million, while organic revenue grew by 4.7% to $568 million [32][40] - GAAP operating expenses rose by 6.8% year over year to $377 million, driven by various factors including compensation-related expenses [33][34] - Free cash flow decreased by 56% year over year to $60 million, attributed to a sales tax dispute resolution and higher capital expenditures [41] Business Line Data and Key Metrics Changes - In the Americas, organic ASV grew by 5%, while EMEA saw a 4% increase and Asia Pacific maintained a 7% growth [14][15] - Wealth management experienced subdued growth, with a strong pipeline of seven-figure opportunities expected to drive future growth [17][27] - The banking sector showed normalization in seasonal hiring, with expectations for new products to accelerate growth in the second half of the year [18][19] Market Data and Key Metrics Changes - The company maintained a client retention rate of 91% and ASV retention over 95%, with the client base growing to almost 8,250 [12][13] - The firm noted increased engagement in banking and stronger data solution sales to hedge funds, indicating positive market trends [28][90] Company Strategy and Development Direction - The company aims to enhance financial intelligence and efficiency for clients through technology evolution and product innovation [12][24] - A focus on generative AI capabilities is evident, with new products expected to launch throughout the year [25][80] - The company is actively adjusting pricing and packaging strategies to enhance competitiveness against incumbents [45][119] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the operating environment, noting early signs of momentum as clients reset budgets [27][44] - The company reaffirmed its fiscal 2025 guidance, anticipating growth to be weighted towards the second half of the year [29][44] Other Important Information - The company completed the acquisition of ON to enhance its integrated workflow solutions for investor relations professionals [20] - The effective tax rate for Q1 was 16.5%, an increase from the previous year's 15.2% [39] Q&A Session Summary Question: Acceleration in ASV growth in Q2 - Management noted positive momentum and visibility for larger deals, particularly in wealth management and private equity venture capital [50][52] Question: ASV growth components - The discrepancy in ASV growth rates was clarified, with CGS issuance contributing significantly to the overall growth [62] Question: Managed services as a growth driver - Management highlighted the potential for managed services to enhance buy-side ASV, with a focus on performance and risk reporting [66][71] Question: Feedback on Gen AI products - Management reported exceptional feedback on Gen AI products, with expectations for incremental ASV growth from these innovations [75][80] Question: Client budget discussions - Early signs indicate that client budgets will remain flat, with a focus on cost management [90] Question: Contribution from Irwin acquisition - The acquisition is not expected to have a material impact on total revenue but will support the corporate business overall [93] Question: Margin expectations - Management expects some margin compression in the second half of the year due to increased expenses [99] Question: Wealth management competitive environment - Management indicated that the lack of large deals in Q1 was a timing issue, with confidence in future growth [101][105] Question: Landmark win details - The win was attributed to the quality of technology and managed services offered, highlighting the company's competitive advantages [110][112] Question: Pricing strategy - Management acknowledged a competitive environment, with adjustments made to pricing structures to enhance conversion rates [115][119] Question: M&A appetite - The company maintains a high appetite for M&A, focusing on assets that fill gaps in its product suite [121][125] Question: Monetization of AI products - Management emphasized the importance of demonstrating value to clients while managing costs associated with AI solutions [128][134]