[Third Quarter Fiscal 2025 Financial Performance](index=1&type=section&id=Third%20Quarter%20Fiscal%202025%20Financial%20Performance) FactSet reported a 5.9% increase in Q3 fiscal 2025 GAAP revenues to $585.5 million, driven by strong ASV growth across client segments and geographies, despite a decline in operating margins due to higher expenses [Key Financial Highlights](index=1&type=section&id=Third%20Quarter%20Fiscal%202025%20Highlights) FactSet reported Q3 fiscal 2025 GAAP revenues of $585.5 million, a 5.9% increase year-over-year, driven by wealth and institutional buy-side clients, though profitability declined with GAAP operating margin falling 350 basis points to 33.2% and GAAP diluted EPS decreasing 5.4% to $3.87, primarily due to higher operating expenses Key Financial Measures | Key Financial Measures | Q3 2025 | Q3 2024 | Change YoY | | :--- | :--- | :--- | :--- | | **GAAP Revenues** | $585.5 million | $552.7 million | +5.9% | | **Organic Revenues** | $577.2 million | $552.7 million | +4.4% | | **GAAP Operating Margin** | 33.2% | 36.6% | -350 bps | | **Adjusted Operating Margin** | 36.8% | 39.4% | -270 bps | | **GAAP Diluted EPS** | $3.87 | $4.09 | -5.4% | | **Adjusted Diluted EPS** | $4.27 | $4.37 | -2.3% | | **Organic ASV** | $2,296.9 million | - | +4.5% | - The decrease in operating margins was primarily attributed to lapping a **lower bonus accrual** and a **one-time payroll tax adjustment** from the prior year, along with **higher annual base salaries**[4](index=4&type=chunk) - Net cash provided by operating activities increased by **6.5%** to **$253.8 million**, and free cash flow grew by **5.4%** to **$228.6 million** for the quarter[4](index=4&type=chunk) [Annual Subscription Value (ASV) Analysis](index=2&type=section&id=Annual%20Subscription%20Value%20(ASV)) As of May 31, 2025, total Annual Subscription Value (ASV) reached $2,335.1 million, with organic ASV, excluding recent acquisitions and currency impacts, growing 4.5% year-over-year to $2,296.9 million, driven equally by 4.0% expansion in both buy-side and sell-side client segments Annual Subscription Value Metrics | ASV Metric | Value (as of May 31, 2025) | YoY Growth | | :--- | :--- | :--- | | **Total ASV** | $2,335.1 million | - | | **Organic ASV** | $2,296.9 million | +4.5% | | **Organic ASV Increase (YoY)** | +$98.5 million | - | | **Organic ASV Increase (QoQ)** | +$22.6 million | - | - Buy-side clients, including asset managers, wealth managers, and hedge funds, constitute **82%** of organic ASV, while sell-side firms account for the remaining **18%**[8](index=8&type=chunk) - Both buy-side and sell-side segments reported an organic ASV annual growth rate of **4.0%**[8](index=8&type=chunk) [Segment Performance by Geography](index=2&type=section&id=Segment%20Revenues%20and%20ASV) The Americas remains the largest segment, contributing $1,513.1 million in ASV with a 5.0% organic growth rate, while the Asia Pacific region demonstrated the highest organic ASV growth at 7.1%, reaching $235.7 million, and EMEA showed more modest growth with organic ASV increasing by 2.1% Regional Organic Growth Rates | Region | Q3 Organic ASV Growth | Q3 Organic Revenue Growth | | :--- | :--- | :--- | | **Americas** | 5.0% | 5.0% | | **EMEA** | 2.1% | 2.3% | | **Asia Pacific** | 7.1% | 6.4% | - Americas: ASV reached **$1,513.1 million**, with quarterly revenues of **$380.5 million**[9](index=9&type=chunk) - EMEA: ASV stood at **$581.9 million**, with quarterly revenues of **$145.7 million**[10](index=10&type=chunk) - Asia Pacific: ASV was **$240.1 million**, with quarterly revenues of **$59.3 million**[11](index=11&type=chunk) [Operational Highlights and Corporate Developments](index=3&type=section&id=Operational%20Highlights%20and%20Corporate%20Developments) FactSet demonstrated strong operational performance with increased client and user counts, high ASV retention, and strategic capital allocation through share repurchases and dividend increases, alongside a key CEO leadership transition [Key Operational Metrics](index=3&type=section&id=Operational%20Highlights%20%E2%80%93%20Third%20Quarter%20Fiscal%202025) FactSet's operational metrics showed positive momentum in Q3 2025, with the client base growing by **166** to **8,811** and user count increasing by **1,355** to **220,496**, driven by wealth management, while annual ASV retention remained strong at **greater than 95%** and employee headcount rose **2.6%** year-over-year to **12,579** - Client count increased by **166** in the past three months to **8,811**, driven by hedge fund, corporate, and wealth management clients[16](index=16&type=chunk) - User count rose by **1,355** to **220,496**, primarily due to an increase in wealth management users[16](index=16&type=chunk) - Annual ASV retention was **greater than 95%**, and client retention was **91%**[16](index=16&type=chunk) - Employee headcount grew **2.6%** over the last 12 months to **12,579**, with increases mainly in sales and technology groups and from recent acquisitions[16](index=16&type=chunk) [Capital Allocation](index=3&type=section&id=Share%20Repurchase%20Program) During the third quarter, FactSet executed on its capital return strategy by repurchasing **$80.7 million** of its common stock, increasing its quarterly dividend by **6%** to **$1.10 per share** for the 26th consecutive year, and refinancing its debt with a new credit agreement including a **$500 million term loan** and an undrawn **$1.0 billion revolving credit facility** - Repurchased **184,050 shares** for **$80.7 million** during Q3, with the Board approving a new **$400 million** share repurchase authorization available from September 1, 2025[13](index=13&type=chunk) - Paid a quarterly dividend of **$1.10 per share**, a **6% increase** from the previous quarter, marking the **26th consecutive year** of dividend growth[16](index=16&type=chunk) - Entered into a new credit agreement with a **$500 million term loan** and a **$1.0 billion revolving credit facility** to repay previous borrowings[16](index=16&type=chunk) [Corporate Updates](index=1&type=section&id=Corporate%20Updates) FactSet announced a significant leadership transition, with **Sanoke Viswanathan** appointed as the **new CEO**, succeeding **Phil Snow**, effective early September 2025, and received recognition as **Databricks' Financial Services Data Partner of the Year**, highlighting its data integration capabilities - **Sanoke Viswanathan** was appointed as the **new CEO**, effective early September 2025, succeeding **Phil Snow**, who is retiring[4](index=4&type=chunk)[16](index=16&type=chunk) - FactSet was named **Databricks' Financial Services Data Partner of the Year**, making its data available on the Databricks Marketplace to streamline client data integration[16](index=16&type=chunk) - After the quarter, CUSIP Global Services collaborated with Aumni, Inc. to expand CUSIP coverage for private equity and venture-backed companies[16](index=16&type=chunk) [Fiscal 2025 Business Outlook](index=3&type=section&id=Fiscal%202025%20Business%20Outlook) FactSet reaffirmed its full-year fiscal 2025 guidance, projecting continued organic ASV growth and stable revenue and earnings per share ranges [Reaffirmed Guidance](index=3&type=section&id=Fiscal%202025%20Expectations) FactSet reaffirmed its full-year fiscal 2025 guidance, projecting organic ASV growth between $100 million and $130 million, with GAAP revenues expected in the range of $2,305 million to $2,325 million and adjusted diluted EPS between $16.80 and $17.40 Fiscal 2025 Guidance | Metric | Fiscal 2025 Guidance Range | | :--- | :--- | | **Organic ASV Growth** | $100 million to $130 million | | **GAAP Revenues** | $2,305 million to $2,325 million | | **GAAP Operating Margin** | 32.0% to 33.0% | | **Adjusted Operating Margin** | 36.0% to 37.0% | | **Annual Effective Tax Rate** | 17% to 18% | | **GAAP Diluted EPS** | $14.80 to $15.40 | | **Adjusted Diluted EPS** | $16.80 to $17.40 | [Consolidated Financial Statements (Unaudited)](index=6&type=section&id=Consolidated%20Financial%20Statements%20(Unaudited)) FactSet's financial statements for Q3 fiscal 2025 show revenue growth but a decline in net income, an increase in total assets driven by goodwill, and a net decrease in cash from operating, investing, and financing activities [Consolidated Statements of Income](index=6&type=section&id=Consolidated%20Statements%20of%20Income%20(Unaudited)) For the third quarter of fiscal 2025, FactSet's revenues grew to $585.5 million from $552.7 million in the prior year, but due to an 11.7% increase in total operating expenses, operating income declined by 4.1% to $194.2 million, and net income fell by 6.1% to $148.5 million Consolidated Statements of Income (in thousands) | (In thousands) | Three Months Ended May 31, 2025 | Three Months Ended May 31, 2024 | | :--- | :--- | :--- | | **Revenues** | $585,520 | $552,708 | | **Operating Income** | $194,155 | $202,459 | | **Net Income** | $148,542 | $158,135 | | **Diluted EPS** | $3.87 | $4.09 | [Consolidated Balance Sheets](index=7&type=section&id=Consolidated%20Balance%20Sheets%20(Unaudited)) As of May 31, 2025, FactSet's total assets increased to $4.34 billion from $4.06 billion at the end of fiscal 2024, primarily driven by a significant increase in Goodwill to $1.28 billion reflecting recent acquisitions, while total liabilities saw a modest increase to $2.18 billion with long-term debt rising to $1.43 billion Consolidated Balance Sheets (in thousands) | (In thousands) | May 31, 2025 | August 31, 2024 | | :--- | :--- | :--- | | **Cash and cash equivalents** | $356,361 | $422,979 | | **Goodwill** | $1,277,855 | $1,011,129 | | **Total Assets** | $4,338,762 | $4,055,040 | | **Long-term debt** | $1,430,197 | $1,241,131 | | **Total Liabilities** | $2,183,580 | $2,142,580 | | **Total Stockholders' Equity** | $2,155,182 | $1,912,460 | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows%20(Unaudited)) For the nine months ended May 31, 2025, net cash from operating activities was $514.2 million, a slight decrease from the prior year, with investing activities using $369.4 million primarily for business acquisitions, and financing activities using $199.3 million for share repurchases and dividend payments, resulting in a net decrease in cash of $52.6 million Consolidated Statements of Cash Flows (in thousands) | (In thousands) | Nine Months Ended May 31, 2025 | Nine Months Ended May 31, 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $514,160 | $537,177 | | **Net cash used in investing activities** | ($369,373) | ($104,658) | | **Net cash used in financing activities** | ($199,327) | ($402,908) | | **Net decrease in cash** | ($52,574) | $27,700 | [Reconciliation of U.S. GAAP to Adjusted Financial Measures](index=9&type=section&id=Reconciliation%20of%20U.S.%20GAAP%20Results%20to%20Adjusted%20Financial%20Measures) This section reconciles FactSet's GAAP results to adjusted financial measures, detailing adjustments for operating income, net income, and EPS, and providing a reconciliation of free cash flow and organic ASV by client type [Reconciliation of Key Metrics](index=10&type=section&id=Non-GAAP%20Financial%20Measures) FactSet's adjusted financial measures for Q3 2025 exclude items like intangible asset amortization and business acquisition costs, resulting in adjusted operating income of $215.3 million with a margin of 36.8%, adjusted net income of $163.9 million, and an adjusted diluted EPS of $4.27, compared to the GAAP figure of $3.87 Reconciliation of GAAP to Adjusted Financial Measures (in thousands, except per share) | (In thousands, except per share) | Q3 2025 GAAP | Adjustments | Q3 2025 Adjusted | | :--- | :--- | :--- | :--- | | **Operating Income** | $194,155 | $21,158 | $215,313 | | **Net Income** | $148,542 | $15,379 | $163,921 | | **Diluted EPS** | $3.87 | $0.40 | $4.27 | - The primary adjustments to derive non-GAAP figures are the exclusion of **intangible asset amortization ($19.2 million)** and **business acquisition-related costs ($2.0 million)**[35](index=35&type=chunk) [Free Cash Flow Reconciliation](index=11&type=section&id=Free%20Cash%20Flow) In Q3 2025, FactSet generated $228.6 million in free cash flow, a 5.4% increase from the $216.9 million generated in the same period last year, calculated by subtracting $25.2 million in capital expenditures from the $253.8 million in net cash provided by operating activities Free Cash Flow Reconciliation (in thousands) | (In thousands) | Q3 2025 | Q3 2024 | Change | | :--- | :--- | :--- | :--- | | **Net Cash Provided for Operating Activities** | $253,833 | $238,235 | +6.5% | | **Less: Capital Expenditures** | ($25,230) | ($21,339) | - | | **Free Cash Flow** | $228,603 | $216,896 | +5.4% | [Organic ASV Reconciliation and Client Type Analysis](index=12&type=section&id=Supplementary%20Schedules%20of%20Historical%20ASV%20by%20Client%20Type) FactSet's organic ASV growth of 4.5% in Q3 2025 was driven by 4.0% growth from both its buy-side and sell-side client segments, with the buy-side representing 82.3% of total ASV and seeing its growth rate moderate from 5.3% in the prior year, while the reported ASV of $2,335.1 million is adjusted for a negative currency impact of $5.7 million and $32.5 million from recent acquisitions to arrive at the organic ASV of $2,296.9 million Organic ASV Growth Rate by Client Type | ASV Growth Rate | Q3'25 | Q3'24 | | :--- | :--- | :--- | | **Buy-side clients** | 4.0% | 5.3% | | **Sell-side clients** | 4.0% | 3.7% | Organic ASV Reconciliation (in millions) | (In millions) | As of May 31, 2025 | | :--- | :--- | | **As reported ASV** | $2,335.1 | | **Currency impact** | ($5.7) | | **Acquisition ASV** | ($32.5) | | **Organic ASV** | $2,296.9 |

Core Viewpoint - The article emphasizes the importance of adopting appropriate risk models in the current volatile market environment, which is characterized by uncertainties from tariffs, rising inflation, and slowing economic growth [1][3]. Market Volatility Analysis - In April, the volatility levels in global financial markets were comparable to historical periods of significant market distress, such as the 2010 flash crash and the 2011 European debt crisis [1]. - The rapid transition from stable to volatile market conditions necessitates a shift in risk management approaches, requiring advanced probabilistic models to address the changing risks of extreme events [3]. - The FactSet fat-tail model provides real-time insights into market dynamics and demonstrates strong predictive capabilities across different volatility phases, highlighting the need for adaptive risk models [3]. Risk Models Comparison - The article compares the normal model (normal distribution with a half-life of 125 days) and the fat-tail short-term return model (fat-tail distribution with a half-life of 45 days) in terms of their daily value-at-risk estimates at a 99% confidence level [11]. - The fat-tail model reacts more quickly to recent market behavior, making it more sensitive to increases in market volatility [11]. - During periods of low volatility, the difference in risk estimates between the two models can turn negative, indicating that the fat-tail model may underestimate risk in stable conditions [11]. Industry Sector Perspective - The analysis focuses on the market from March to April 2025, examining the changes in daily value-at-risk for individual sectors within the S&P 500 index [20]. - Certain sectors, such as consumer services and transportation, showed earlier increases in the risk model difference, indicating a quicker response to volatility changes compared to others like durable goods and electronics [20][23]. - The fat-tail model is particularly valuable for sectors with non-normal return distributions, as it can more effectively capture changes in market conditions [28].

Core Insights - FactSet is actively investing in Gen AI solutions, leveraging its extensive database and flexible analytical tools to provide a range of Gen AI offerings [1] - The upcoming seminar will focus on the latest applications of Gen AI in the financial sector and share real-world case studies from overseas financial institutions [3] Agenda Summary - **Opening Session**: Introduction to the seminar [5] - **Business Innovation through Gen AI Solutions**: Discussion on how FactSet's Gen AI solutions enhance work efficiency, automate business processes, and provide accurate analysis and creative business solutions [5] - **AI Innovation Acceleration**: Sharing of real-world cases from overseas clients using Gen AI, exploring how this technology can offer innovative references for domestic financial professionals [6] - **Data Models and One-Stop Data Platforms**: Addressing the rising costs of data management in developing Gen AI strategies, and how FactSet's DaaS solutions can help efficiently collect and access critical financial data [7] - **Cocktail Reception**: Networking opportunity with snacks and beverages [8] Speaker Information - **Patrick Starling**: Senior Vice President and Senior Director of Product Management at FactSet, leading the generative AI data platform and related services [11]

Core Viewpoint - FactSet has appointed Sanoke Viswanathan as the new CEO, effective early September 2025, succeeding Phil Snow, who will retire after a successful 30-year career with the company [1][3]. Company Overview - FactSet is a global financial digital platform and enterprise solutions provider, recognized for its cutting-edge technology and data solutions that enhance financial intelligence [5]. - The company serves over 8,600 global clients and nearly 220,000 individual users, with a presence in 20 countries and extensive multi-asset class coverage [5]. Leadership Transition - Sanoke Viswanathan brings 15 years of experience from JPMorgan Chase, where he held various leadership roles, including CEO of International Consumer and Wealth [2][4]. - Phil Snow has led FactSet for the past decade, during which the company has more than doubled its revenue and achieved annualized double-digit EPS growth and total shareholder return [3]. Strategic Vision - Viswanathan's expertise in international wealth management and technology-driven growth strategies aligns with FactSet's goals for future development [3]. - The transition is expected to support FactSet's evolution as a leading data and workflow solutions provider, focusing on delivering new products and services for sustainable growth [3][4].

Core Insights - FactSet is actively investing in Gen AI solutions, leveraging its extensive database and flexible analytical tools to provide a range of Gen AI offerings [1] - The upcoming seminar will focus on the latest applications of Gen AI in the financial sector and share real-world case studies from overseas financial institutions [3] Event Details - The seminar is scheduled for June 19, 2025, from 14:30 to 17:00 at the Shangri-La Hotel in Pudong, Shanghai [3][5] - The agenda includes a cocktail reception from 17:00 to 18:00 [5] Seminar Agenda - Opening remarks will commence at 15:00, followed by a session on how FactSet's Gen AI solutions can drive business innovation, emphasizing efficiency and automation [6] - A segment will present real-world applications of Gen AI by overseas clients, providing innovative insights for domestic financial professionals [7] - The final part will address the challenges of rising costs in data management and how FactSet's DaaS solutions can enhance data workflows to support AI initiatives [8]

Core Viewpoint - FactSet has been dedicated to providing high-quality data services to professional financial institutions since its establishment in 1978, continuously investing in real-time market data services and enhancing technology to optimize solutions [1]. Group 1: Event Details - The seminar will focus on FactSet's content, service technology, and successful domestic case studies related to equity and FICC real-time market data [1]. - The event is scheduled for May 20, 2025, starting at 2:00 PM, with the seminar running from 2:30 PM to 5:00 PM, followed by a cocktail reception [5]. Group 2: Agenda Overview - The agenda includes an opening speech, a session on FactSet's real-time market data solutions, a discussion on the unique technical architecture that supports client success, a tea break, and a session on the content and applications of FICC real-time market data [6]. - Key speakers include Dennis Lim, Xiaorong Xu, and Pearleen Tan, who will address various aspects of market data and technology solutions [9][11][13]. Group 3: Data Content Focus - The seminar will cover topics such as U.S. Treasury and repo market data content, the use of hedging tools, and trends in commodity performance analysis [7].

FactSet自1978年成立以来，致力于为专业金融机构客户提供高质量的数据服务，并为此持续在实时行情数 据服务上加大投入，提升技术，不断优化解决方案。本次研讨会将重点介绍FactSet在权益及FICC实时行 情数据的内容、服务技术以及国内成功案例分享，和与会嘉宾共同探讨和挖掘行业最新动向。 FactSet全球行情数据解决方案 日期： 2025年5月20日 开场： 下午2:00 研讨会： 下午2:30-5:00 鸡尾酒会： 下午5:00-6:30 会场 北京市朝阳区光华路1号 北京嘉里大酒店3层 深圳厅 长按二维码报名登记 议程 2:00 – 2:25 报到 2:25 - 2:30 主持：Gloria Jin 2:30 - 3:15 FactSet实时行情数据解决方案 3:15 - 4:00 FactSet独特的技术架构助力客户业务成功 主持：Xiaorong Xu 徐晓戎 4:00 - 4:15 茶歇 开幕致辞 4:15 – 5:00 FICC实时行情数据的内容和应用 主持：Pearleen Tan 陈琬婷 主持：Dennis Lim 林仁亮 实时行情数据——FactSet概述 FactSet实时行情的优势 ...

Financial Data and Key Metrics Changes - In the second quarter, organic ASV grew by 4.1% year over year, with adjusted operating margin at 37.3% and adjusted diluted EPS at $4.28 [9][24] - GAAP revenues increased by 4.5% year over year to $571 million, while organic revenues grew by 4% to $568 million [25] - GAAP operating margin decreased by approximately 80 basis points to 32.5% compared to the previous year, while adjusted operating margin decreased by 100 basis points to 37.3% [25][26] - Free cash flow was $150 million in the second quarter, up 23% over the same period last year [29] Business Line Data and Key Metrics Changes - Wealth management saw double-digit growth, with significant market share gains, particularly with UBS selecting FactSet for their advisor desktops [12][13] - The banking segment faced challenges, but renewal activity increased notably, with over a dozen large banking renewals signed [14][15] - Private equity and venture capital (PEVC) experienced accelerated double-digit growth, while corporates also contributed to growth due to the Erwin acquisition [15][16] Market Data and Key Metrics Changes - In the Americas, organic ASV grew by 4%, with mixed results in asset management and banking [11] - EMEA saw organic ASV growth of 3%, with momentum in hedge funds and PEVC firms offset by headwinds in asset management [11] - Asia Pacific maintained 7% organic ASV growth, driven by strong sales of data solutions among wealth, corporates, hedge funds, and PEVC firms [11] Company Strategy and Development Direction - The company aims to drive top-line growth, focusing on wealth management as a key growth engine and expanding its product offerings [18][19] - Recent acquisitions, including Erwin and Liquidity Book, are expected to enhance cross-selling opportunities and accelerate growth [19][32] - The company is prioritizing investments in technology and generative AI to support growth and improve operational efficiency [34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in reaching an inflection point in ASV growth, despite a challenging market environment [9][10] - There is optimism regarding the strength of the sales pipeline and product-led innovation, with expectations for growth acceleration in the second half of the year [10][20] - Management acknowledged ongoing market uncertainties but highlighted positive client dialogues and a robust pipeline [10][20] Other Important Information - The company repurchased nearly 137,000 shares for approximately $64 million and paid a quarterly dividend of $1.04 per share [31] - The gross leverage ratio was 1.7 times, consistent with maintaining investment-grade ratings [32] - The guidance for organic ASV growth was narrowed to a range of approximately 4.4% to 5.8% [33] Q&A Session Summary Question: Can you provide more details on the traction with clients regarding Pitch Creator and other Gen AI products? - Management noted strong momentum with Pitch Creator and other products, with positive reception from banks and ongoing trials with large clients [36][37] Question: Is the environment improving, or is the company performing better in a challenging environment? - Management indicated that while the environment remains tough, they have de-risked major challenges and are seeing strength across all markets [44][46] Question: How does the company view the impact of banking on guidance? - Management stated that they are not relying on banking for their numbers, with conservative estimates baked into guidance [52][54] Question: Is the UBS Vault deal included in ASV this quarter? - Management confirmed that the UBS deal was signed in the quarter, but the ASV impact will be realized in future quarters as implementation occurs [57][62] Question: What is the outlook for pricing in the context of lower CPI? - Management explained that lower CPI impacts annual price increases, but they are capturing additional ASV through higher pricing and increased volume in new business [64][68]

Financial Data and Key Metrics Changes - Organic ASV grew by 4.1% year over year, with adjusted operating margin at 37.3% and adjusted diluted EPS at $4.28 [9][24] - GAAP revenues increased by 4.5% year over year to $571 million, while organic revenues grew by 4% to $568 million [25] - GAAP operating margin decreased by approximately 80 basis points to 32.5%, while adjusted operating margin decreased by 100 basis points year over year to 37.3% [25][26] - Free cash flow was $150 million in the second quarter, up 23% over the same period last year [29] Business Line Data and Key Metrics Changes - Wealth management saw double-digit growth, with significant market share gains, particularly with UBS selecting FactSet for their advisor desktops [12][13] - Banking faced challenges, but renewal activity increased notably, with over a dozen large banking renewals signed [14][15] - PEVC (Private Equity and Venture Capital) experienced accelerated double-digit growth, while corporates contributed to growth due to the Erwin acquisition [15][16] Market Data and Key Metrics Changes - In the Americas, organic ASV grew by 4%, with mixed results in asset management and banking [11] - EMEA saw organic ASV growth of 3%, with momentum in hedge funds and PEVC firms offset by headwinds in asset management [11] - Asia Pacific maintained 7% organic ASV growth, driven by strong sales of data solutions among wealth, corporates, hedge funds, and PEVC firms [11] Company Strategy and Development Direction - The company aims to drive top-line growth, focusing on wealth management as a key growth engine and expanding its product offerings [18][19] - Recent acquisitions, including Erwin and Liquidity Book, are expected to enhance cross-selling opportunities and accelerate growth [19][20] - The company is prioritizing investments in technology and generative AI to improve workflow productivity and client engagement [20][34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in reaching an inflection point in ASV growth, despite a challenging market environment [9][10] - There is optimism regarding the sales pipeline and product-led innovation, with expectations for growth acceleration in the second half of the fiscal year [9][10] - Management acknowledged market uncertainties but highlighted strong client relationships and a robust pipeline as positive indicators for future performance [20][34] Other Important Information - The company reaffirmed its guidance for organic ASV growth at a midpoint of 5%, narrowing the range to $100 million to $130 million [32][33] - The effective tax rate is expected to remain between 17% to 18% [34] - The company returned $392 million to shareholders over the last twelve months through dividends and share repurchases [31] Q&A Session Summary Question: Can you provide more details on the traction with clients regarding Pitch Creator and other Gen AI products? - Management noted strong momentum with Pitch Creator and positive reception from banks, with plans to monetize these products more seriously in Q3 and Q4 [36][37] Question: Is the environment improving, or is the company performing better in a challenging environment? - Management indicated that while the environment remains challenging, they have de-risked major issues and are seeing strength across all markets [44][46] Question: How does the company view the impact of banking on guidance? - Management stated that they are not relying on banking for their numbers, with conservative estimates baked into the guidance [52][54] Question: Is the UBS Vault deal included in ASV this quarter? - Management confirmed that the UBS deal was booked in Q2, but user contributions will come in later quarters [57][62] Question: Can you clarify the pricing dynamics in the quarter? - Management explained that lower CPI impacted annual price increases, but they are capturing additional ASV through higher pricing and volume in new business [64][66] Question: What is the outlook for the data and feeds business? - Management highlighted strong demand for high-quality data, with improvements in the data feed business driven by new tech startups and partnerships [78][80]

Core Insights - The article explores the impact of regional factors on investment trends, specifically focusing on capital inflow rates and distribution rates across North America, Western Europe, and emerging Asian markets [2][4]. Group 1: Capital Inflow and Distribution Rates - Capital inflow rate serves as an indicator of investment interest, while incorporating distribution rates provides a better understanding of fund returns relative to investment levels [2]. - High capital inflow periods are more common, reflecting the long-term expansion phase of the private equity sector, where the performance of quality funds offsets that of underperforming funds [4]. - High distribution periods typically commence about three years after economic recessions, likely due to deep value investments made during downturns yielding substantial returns [4]. Group 2: Regional Investment Behavior - European markets exhibit rapid transitions between capital inflow and return periods with minimal transitional phases, while the U.S. and Asian markets show smoother transitions [4]. - The investment interest in the U.S. and Asian markets appears to be less influenced by macroeconomic factors, indicating relative stability in investor interest [4]. - The dominance of high distribution in the global private equity market during the 2010s is attributed to the loose monetary policies following the 2008 financial crisis [4]. Group 3: Changes Post-2018 - Since 2018, there has been a noticeable increase in investor interest in U.S. and European investments compared to returns, while Asian markets are shifting towards a return period similar to deep value investment returns seen in the 2020s [5]. - Other markets also experienced a return period during the market rebound in 2021 [5]. Group 4: Future Outlook - As funds invested in 2020 begin to yield returns, the Asian market, primarily driven by China, is moving towards net positive distributions [6]. - If the economic momentum in the region continues, there may be more instances of distributions exceeding capital inflows, although this could reverse as returns normalize and inflows increase [6]. - In contrast, increasing capital inflows in Europe and the U.S. may indicate declining private equity returns, potentially slowing new investments [6].