FactSet Reports Results for Third Quarter 2024

Core Insights - FactSet reported strong financial performance for the third quarter of fiscal 2024, with significant increases in net income, operating margins, and earnings per share, driven by growth in institutional asset managers and other clients [10][11][12]. Financial Performance - GAAP revenues reached $552.7 million, a 4.3% increase from the previous year [11]. - Organic revenues grew by 4.5% year over year, totaling $553.4 million [11]. - Net income was $158.1 million, reflecting a 17.4% increase compared to the prior year [11][12]. - Adjusted net income rose to $168.8 million, a 14.3% increase [11][12]. - Diluted EPS increased by 18.2% to $4.09, while adjusted diluted EPS rose by 15.3% to $4.37 [11][12]. Operating Metrics - The GAAP operating margin improved to 36.6%, up approximately 420 basis points year over year [11]. - Adjusted operating margin increased to 39.4%, up 340 basis points from the prior year [11]. - Adjusted EBITDA for the quarter was $239.9 million, a 16.9% increase from the previous year [11]. Subscription and Client Metrics - Annual Subscription Value (ASV) plus professional services was $2,219.2 million, up from $2,120.1 million year over year, representing a growth rate of 5.0% [11][16]. - The company reported a client count of 8,029, with a net increase of 9 clients in the past three months [20]. - ASV from buy-side clients accounted for 82% of organic ASV, with a growth rate of 5.3% [3][50]. Regional Performance - ASV from the Americas region was $1,417.1 million, reflecting a 5.7% organic increase [17]. - EMEA region ASV increased to $565.7 million, with a 4.4% organic growth rate [18]. - Asia Pacific region ASV reached $219.2 million, showing a 6.1% organic increase [19]. Future Outlook - The company updated its fiscal 2024 guidance, expecting organic ASV plus professional services growth in the range of $85 million to $120 million [23]. - GAAP revenues are projected to be between $2,180 million and $2,190 million [23]. - Adjusted diluted EPS is expected to be in the range of $16.00 to $16.40 [23]. Strategic Initiatives - FactSet announced the release of new AI-powered tools to enhance research and analysis capabilities for clients [21]. - The company made a $12.5 million investment in Aidentified, Inc., focusing on AI-driven prospecting solutions [21]. Shareholder Returns - FactSet repurchased 135,150 shares for $59.8 million during the quarter, with $128.1 million remaining available for future repurchases [22]. - A quarterly dividend of $39.6 million was paid, marking a 6% increase from the previous quarter [21].