Financial Performance - Revenues for the third quarter of fiscal 2025 were $585.5 million, a 5.9% increase from the prior year, driven by a 4.4% increase in organic revenues [185]. - Revenues for the three months ended May 31, 2025 were $585.5 million, an increase of 5.9% compared to $552.7 million in the same period of 2024 [207]. - For the nine months ended May 31, 2025, revenues were $1,724.8 million, an increase of 5.1% compared to $1,640.9 million in the same period of 2024 [208]. - Organic revenues increased by 4.4% to $577.2 million for the three months ended May 31, 2025, with acquisition-related revenues contributing an additional 1.4% [207]. - Net income for the three months ended May 31, 2025 was $148.5 million, a decrease of 6.1% from $158.1 million in the same period of 2024 [206]. - Diluted earnings per share (EPS) for the third quarter were $3.87, a decrease of 5.4% from the prior year, primarily due to lower operating income [188]. Client Metrics - The client count increased by 9.7% to 8,811 as of May 31, 2025, with a net addition of 782 clients, mainly due to the acquisition of Platform Group Limited [201]. - Annual ASV retention was greater than 95% as of May 31, 2025, with client retention at 91%, up from 90% the previous year [202]. - The Americas accounted for 65% of total ASV, amounting to $1,513.1 million, with a 5.0% increase in Organic ASV from the prior year [195]. Operating Performance - Operating margin decreased to 33.2% from 36.6% in the prior year, attributed to higher employee compensation costs and amortization of intangible assets [188]. - Operating income decreased by 4.1% to $194.2 million for the three months ended May 31, 2025, compared to $202.5 million in the prior year [229]. - Total operating income decreased 4.1% to $194.2 million for the three months ended May 31, 2025, compared to $202.5 million in the same period a year ago [235]. Expenses and Costs - Cost of services rose by 13.7% to $280.7 million for the three months ended May 31, 2025, primarily due to increased employee compensation costs [221]. - SG&A expenses increased by 7.1% to $110.6 million for the three months ended May 31, 2025, driven by higher employee compensation costs [226]. - Cost of services as a percentage of revenues was 47.9% for the three months ended May 31, 2025, an increase of 330 basis points year-over-year [222]. Acquisitions - The acquisition of LiquidityBook was completed for a purchase price of $243.2 million, including contingent consideration of $11.9 million [280]. - The acquisition of Irwin was completed for a purchase price of $120.2 million, including contingent consideration of $9.6 million [282]. - The acquisition date fair value of goodwill from LiquidityBook is $161.995 million, representing the excess of the purchase price over the fair value of net assets acquired [88]. - The acquisition date fair value of goodwill from Irwin is $91.376 million, reflecting future economic benefits expected from the acquisition [93]. Cash Flow and Capital Management - Net cash provided by operating activities for the nine months ended May 31, 2025, was $514.2 million, a decrease of $23.0 million from $537.2 million in the same period last year [288]. - Free cash flow for the nine months ended May 31, 2025, was $439.3 million, a decrease of $38.1 million compared to $477.5 million in the prior year [295]. - The company returned $312.2 million to stockholders in the form of share repurchases and dividends during the nine months ended May 31, 2025 [273]. - During the three months ended May 31, 2025, the company repurchased 184,050 shares for $80.7 million [275]. Debt and Financing - The total debt as of May 31, 2025, was $1,430,197 thousand, an increase from $1,365,973 thousand as of August 31, 2024 [112]. - The company entered into a new credit agreement on April 8, 2025, borrowing $500,000 thousand under a senior unsecured term loan credit facility [115]. - Interest expense on outstanding debt for the three months ended May 31, 2025, was $15.1 million, down from $16.6 million in the same period of 2024 [131]. Tax and Compliance - The provision for income taxes for the three months ended May 31, 2025, was $31,406 thousand, with an effective tax rate of 17.5%, up from 17.0% in the same period of 2024 [101]. - The company was in compliance with all covenants and requirements of the 2025 Credit Agreement as of May 31, 2025 [123].

Core Insights - Vimeo, Inc. has appointed Rose Frawley as Chief People Officer, focusing on global talent strategy and organizational development [1][2] - Frawley's experience includes over 20 years in human resources, with a strong background in building high-performing teams in technology and data companies [2] - The company emphasizes a people-first strategy, aiming to cultivate a culture of trust and engagement among employees [1][3] Company Overview - Vimeo is recognized as the largest private video network globally, serving millions of users and facilitating billions of video views each month [4] - The platform aims to provide innovative video experiences, catering to a diverse community from creative storytellers to large corporate teams [4]

Group 1 - The article emphasizes a fundamentals-based approach to value investing, focusing on companies with long-term durability and robust balance sheets rather than just low multiples [1] - It highlights the misconception that low multiple stocks are inherently cheap, advocating for a focus on steady long-term growth and minimal cyclicality [1] - The author acknowledges the risks associated with investing in successful companies, particularly the potential to overpay, but suggests that in certain situations, the growth potential outweighs immediate price concerns [1]

Core Insights - FactSet Research Systems reported mixed results for Q3, with sales of $585.52 million exceeding analyst expectations of $580.50 million, reflecting a 5.9% year-over-year increase [1] - Adjusted earnings per share were $4.27, slightly below the consensus estimate of $4.29 [1] Financial Performance - The company reiterated its adjusted diluted EPS outlook for the fiscal year at $16.80 to $17.40, compared to the consensus of $17.07 [2] - Revenue guidance was maintained at $2.305 billion to $2.325 billion, aligning closely with the consensus of $2.310 billion [2] - FactSet maintained an adjusted operating margin of 36% to 37% [2] Market Reaction - Following the earnings announcement, FactSet Research shares fell 0.3% to $435.65 [3] - Analysts adjusted their price targets for FactSet Research after the earnings report [3] Analyst Ratings - Morgan Stanley analyst Toni Kaplan maintained an Underweight rating and raised the price target from $390 to $393 [5] - Wells Fargo analyst Jason Haas also maintained an Underweight rating, increasing the price target from $402 to $405 [5] - RBC Capital analyst Ashish Sabadra reiterated a Sector Perform rating with a price target of $503 [5]

Core Insights - FactSet Research Systems (NYSE: FDS) reported Q3 FY2025 results, showing a nearly 4% increase in share price, indicating strong market confidence in the company's performance [1] Financial Performance - The company demonstrated resilience with predictable revenue streams and robust financial results, reinforcing its position in the market [1] Market Reaction - Following the earnings release, the positive market reaction reflects investor confidence in the company's ongoing performance and strategic direction [1]

Core Insights - FactSet Research reported revenue of $585.52 million for the quarter ended May 2025, marking a year-over-year increase of 5.9% [1] - The earnings per share (EPS) for the same period was $4.27, slightly down from $4.37 a year ago, with an EPS surprise of -0.93% compared to the consensus estimate of $4.31 [1] Financial Performance Metrics - Total Annual Subscription Value (ASV) reached $2.34 billion, exceeding the average estimate of $2.32 billion [4] - The total number of clients increased to 8,811, surpassing the estimated 8,718 [4] - Total users were reported at 220,496, slightly below the average estimate of 225,123 [4] - ASV from buy-side clients remained stable at 82.3%, matching the average estimate [4] - Domestic ASV was reported at $1.51 billion, slightly above the estimated $1.50 billion [4] - International ASV was $822 million, marginally below the estimate of $824.51 million [4] - Organic ASV was $2.30 billion, just under the average estimate of $2.31 billion [4] Revenue Breakdown - Revenues from U.S. clients were $380.5 million, exceeding the average estimate of $376.58 million, reflecting a year-over-year increase of 6.7% [4] - Revenues from international clients totaled $205 million, slightly above the estimate of $204.15 million, with a year-over-year change of 4.5% [4] - Revenues from Asia Pacific clients were reported at $59.30 million, above the average estimate of $58.64 million, representing a year-over-year increase of 7.8% [4] - Revenues from EMEA clients reached $145.70 million, marginally exceeding the estimate of $145.59 million, with a year-over-year change of 3.2% [4] Stock Performance - FactSet shares have returned -8.7% over the past month, contrasting with the Zacks S&P 500 composite's +0.5% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Financial Data and Key Metrics Changes - Organic ASV grew by $22.6 million in Q3 2025, representing a 4.5% year-over-year increase [28] - GAAP revenues increased by 5.9% year-over-year, reaching $586 million [28] - Adjusted diluted EPS decreased by $0.10 or 2.3% to $4.27 [33] - GAAP operating margin was 33.2%, a decrease of 350 basis points compared to the previous year [32] Business Line Data and Key Metrics Changes - Wealth organic ASV maintained double-digit growth, with new business sales nearly doubling compared to the previous year [15] - Dealmaker banking gains were driven by improved retention and multiyear deals [17] - Private equity and venture capital (PEVC) saw its fourth consecutive quarter of accelerating growth [19] Market Data and Key Metrics Changes - In The Americas, organic ASV increased by 5%, driven by higher banking and asset manager retention [14] - EMEA experienced organic ASV growth of 2%, impacted by lower contributions from annual price increases [14] - Asia Pacific saw a 7% increase in organic ASV, primarily due to higher retention in the banking sector [14] Company Strategy and Development Direction - The company is focused on driving top-line growth and expanding its footprint in enterprise solutions [22] - Investments are being made in technology, particularly in generative AI capabilities, to enhance product innovation [30] - The leadership transition to Sanoq Viswanathan is expected to guide the company through its next growth phase [10] Management's Comments on Operating Environment and Future Outlook - Management noted that the macro environment has not significantly changed, but client transformations are ongoing [40] - There is optimism regarding the pipeline for Q4, with strong demand anticipated from the institutional buy side [23] - The company reaffirmed its FY 2025 guidance, indicating confidence in achieving targets [36] Other Important Information - The company repurchased approximately 184,000 shares for around $81 million during the quarter [34] - A new share repurchase authorization of up to $400 million was approved, effective September 1, 2025 [34] - The company has returned $415 million to shareholders over the past twelve months through dividends and share repurchases [35] Q&A Session Summary Question: Change in macro environment and ASP growth - Management indicated that there has not been a significant change in the macro environment, attributing ASP growth to better execution and product traction [39][40] Question: Q4 outlook and comparison to last year - Management noted that both The Americas and EMEA regions look strong, with enterprise solutions driving growth [48][49] Question: Thoughts on fiscal 2026 - Management stated that they are focused on Q4 and will discuss fiscal 2026 in the September call [56][57] Question: Headwinds from asset owners optimizing costs - Management acknowledged competitive pressures but expressed optimism for future improvements [60][62] Question: Adjusted operating margin expectations for Q4 - Management confirmed that they expect to remain within the margin guidance range, with increased investments in technology and acquisitions [66][67] Question: Internal efficiency initiatives related to GenAI - Management highlighted ongoing efforts to improve internal efficiencies through AI, with positive early results [72][78] Question: Demand for data solutions - Management noted increased momentum in data solutions due to a broader suite of offerings and a refocused sales team [101][104]

Group 1 - FactSet reported quarterly earnings of $4.27 per share, missing the Zacks Consensus Estimate of $4.31 per share, and down from $4.37 per share a year ago, representing an earnings surprise of -0.93% [1] - The company posted revenues of $585.52 million for the quarter ended May 2025, surpassing the Zacks Consensus Estimate by 0.72%, and up from $552.71 million year-over-year [2] - FactSet has surpassed consensus EPS estimates three times over the last four quarters, indicating a generally positive trend in revenue performance [2] Group 2 - The stock has underperformed the market, losing about 12.1% since the beginning of the year compared to the S&P 500's gain of 1.5% [3] - The current consensus EPS estimate for the coming quarter is $4.13 on revenues of $591.59 million, and for the current fiscal year, it is $17.10 on revenues of $2.31 billion [7] - The Zacks Industry Rank for Business - Information Services is in the top 11% of over 250 Zacks industries, suggesting a favorable outlook for the industry [8]

Financial Performance - Q3 2025 - Revenues increased by 5.9% to $585.52 million compared to $552.708 million in the same period last year [27] - Organic Revenues increased by 4.4% to $577.2 million compared to $552.708 million in the same period last year [27] - Adjusted Diluted EPS decreased by 2.3% to $4.27 from $4.37 year over year [11, 28] - Free Cash Flow increased by 5.4% to $228.603 million from $216.896 million year over year [28] - Adjusted Operating Margin decreased 270 bps to 36.8% mainly due to lapping of both a lower bonus accrual and one-time payroll tax adjustment that occurred in the prior year, partially offset by growth in revenues [11, 27] Key Metrics - Organic ASV grew by 4.5% [11] - ASV Retention remained high at >95% [14] - User Count increased by 6% to 220,496 [16, 17] - Client Count increased by 10% to 8,811 [19, 20] ASV Growth by Region - Americas ASV grew by 5% to $1,486 million [22] - EMEA ASV grew by 2% to $575 million [22] - Asia Pacific ASV grew by 7% to $236 million [22] Fiscal Year 2025 Outlook - The company reaffirms its Fiscal 2025 outlook, expecting Organic ASV Growth of ~$100 - $130 million (~4.4% to ~5.8%) and Revenues of $2,305 - $2,325 million [33]

Core Insights - FactSet reported third quarter fiscal 2025 GAAP revenues of $585.5 million, reflecting a 5.9% increase from the prior year, driven by growth in wealth and institutional buy-side clients [4][5] - Organic Annual Subscription Value (ASV) reached $2,296.9 million, up 4.5% year over year, indicating a strong demand for subscription services [4][7] - The company announced a leadership transition with Sanoke Viswanathan set to become CEO in September 2025, succeeding Phil Snow [4][15] Financial Performance - GAAP revenues increased by $32.8 million compared to the same period last year, while organic revenues grew by 4.4% to $577.2 million [4][5] - GAAP diluted EPS decreased by 5.4% to $3.87, and adjusted diluted EPS decreased by 2.3% to $4.27, primarily due to higher operating expenses [4][5][30] - Net cash provided by operating activities was $253.8 million, a 6.5% increase year over year, with free cash flow rising to $228.6 million, up 5.4% [4][5][37] Subscription Metrics - Total ASV was $2,335.1 million as of May 31, 2025, compared to $2,199.1 million a year earlier, with organic ASV growth of $98.5 million [4][7] - The buy-side clients accounted for 82% of organic ASV, with both buy-side and sell-side organic ASV growth rates at 4.0% [8][9] - ASV from the Americas increased by 5.0% to $1,486.0 million, while EMEA and Asia Pacific saw organic ASV growth rates of 2.1% and 7.1%, respectively [9][10][11] Operational Highlights - FactSet repurchased 184,050 shares for $80.7 million during the quarter, with $106.2 million remaining for future repurchases [12] - The company reaffirmed its fiscal 2025 guidance, expecting organic ASV growth between $100 million to $130 million [13][20] - Client count increased to 8,811, with a net addition of 166 clients, and user count rose to 220,496, reflecting growth in wealth management [15][22] Strategic Developments - FactSet was named Databricks' Financial Services Data Partner of the Year, enhancing its data integration capabilities [15] - The company entered a new credit agreement with a term loan of $500 million and a revolving credit facility of $1.0 billion, which remains undrawn [15]