FactSet Reports Results for First Quarter 2025
FactSet (NYSE:FDS) reported strong Q1 fiscal 2025 results with GAAP revenues increasing 4.9% to $568.7 million. The company's organic revenues grew 4.7% year over year to $567.7 million, driven by growth in wealth, asset owners and institutional asset managers.
Key financial metrics include: GAAP operating margin of 33.6% (down 120 bps YoY), adjusted operating margin of 37.6% (flat YoY), and GAAP diluted EPS of $3.89 (up 1.3% YoY). The company's Annual Subscription Value (ASV) reached $2,265.9 million, with organic ASV growing 4.5% YoY. Free cash flow decreased 56.4% to $60.5 million, primarily due to lower operating cash flow and increased capital expenditures.
FactSet (NYSE:FDS) ha riportato risultati solidi per il primo trimestre dell'anno fiscale 2025, con ricavi GAAP che sono aumentati del 4,9% raggiungendo $568,7 milioni. I ricavi organici dell'azienda sono cresciuti del 4,7% anno su anno, raggiungendo $567,7 milioni, trainati dalla crescita nel settore della gestione patrimoniale, dei proprietari di asset e dei gestori di fondi istituzionali.
I principali indicatori finanziari includono: margine operativo GAAP del 33,6% (in calo di 120 punti base rispetto all'anno precedente), margine operativo rettificato del 37,6% (stabile rispetto all'anno precedente) e utili per azione diluiti GAAP di $3,89 (in aumento del 1,3% su base annua). Il valore annuale degli abbonamenti (ASV) dell'azienda ha raggiunto $2.265,9 milioni, con un ASV organico in crescita del 4,5% su base annua. Il flusso di cassa libero è diminuito del 56,4% a $60,5 milioni, principalmente a causa del calo del flusso di cassa operativo e dell'aumento delle spese in conto capitale.
FactSet (NYSE:FDS) presentó sólidos resultados para el primer trimestre del año fiscal 2025, con ingresos GAAP que aumentaron un 4.9% alcanzando $568.7 millones. Los ingresos orgánicos de la compañía crecieron un 4.7% año tras año, llegando a $567.7 millones, impulsados por el crecimiento en riqueza, propietarios de activos y gestores de activos institucionales.
Los principales indicadores financieros incluyen: margen operativo GAAP del 33.6% (bajó 120 puntos básicos interanuales), margen operativo ajustado del 37.6% (estático interanual), y EPS diluidos GAAP de $3.89 (aumento del 1.3% interanual). El Valor Anual de Suscripción (ASV) de la compañía alcanzó $2,265.9 millones, con un ASV orgánico creciendo un 4.5% interanual. El flujo de caja libre disminuyó un 56.4% a $60.5 millones, principalmente debido a un menor flujo de caja operativo y el aumento de gastos de capital.
FactSet (NYSE:FDS)는 2025 회계연도 1분기 강력한 실적을 발표했으며, GAAP 수익이 4.9% 증가하여 5억 6,870만 달러에 이릅니다. 회사의 유기적인 수익은 연간 4.7% 증가하여 5억 6,770만 달러에 이르렀으며, 이는 자산 관리, 자산 소유자 및 기관 자산 관리자 부문에서의 성장에 힘입은 것입니다.
주요 재무 지표에는 GAAP 운영 마진 33.6% (전년 대비 120bp 감소), 조정된 운영 마진 37.6% (전년 대비 변동 없음), GAAP 희석 EPS 3.89달러 (전년 대비 1.3% 증가)가 포함됩니다. 회사의 연간 구독 가치(ASV)는 22억 6,590만 달러에 도달했으며, 유기적 ASV는 연간 4.5% 증가했습니다. 자유 현금 흐름은 56.4% 감소하여 6,050만 달러에 이르며, 이는 주로 운영 현금 흐름 감소와 자본 지출 증가 때문입니다.
FactSet (NYSE:FDS) a publié des résultats solides pour le premier trimestre de l'exercice 2025, avec des revenus GAAP en hausse de 4,9 %, atteignant 568,7 millions de dollars. Les revenus organiques de l'entreprise ont augmenté de 4,7 % d'une année sur l'autre, atteignant 567,7 millions de dollars, soutenus par la croissance dans les domaines de la gestion de patrimoine, des propriétaires d'actifs et des gestionnaires d'actifs institutionnels.
Les principaux indicateurs financiers comprennent : marge opérationnelle GAAP de 33,6 % (en baisse de 120 points de base par rapport à l'année précédente), marge opérationnelle ajustée de 37,6 % (stable par rapport à l'année précédente) et BPA dilué GAAP de 3,89 $ (en hausse de 1,3 % d'une année sur l'autre). La valeur annuelle d'abonnement (ASV) de l'entreprise a atteint 2 265,9 millions de dollars, avec un ASV organique en hausse de 4,5 % par rapport à l'année précédente. Le flux de trésorerie libre a diminué de 56,4 % pour atteindre 60,5 millions de dollars, principalement en raison d'une baisse du flux de trésorerie opérationnel et d'une augmentation des dépenses en capital.
FactSet (NYSE:FDS) berichtete über starke Ergebnisse im ersten Quartal des Geschäftsjahres 2025, mit GAAP-Umsätzen, die um 4,9 % stiegen auf 568,7 Millionen US-Dollar. Die organischen Umsätze des Unternehmens wuchsen im Jahresvergleich um 4,7 % auf 567,7 Millionen US-Dollar, unterstützt durch Wachstum in den Bereichen Vermögen, Anlagebesitzer und institutionelle Vermögensverwalter.
Zu den wichtigsten Finanzkennzahlen gehören: GAAP-Betriebs marge von 33,6 % (ein Rückgang um 120 Basispunkte im Jahresvergleich), bereinigte Betriebs marge von 37,6 % (im Jahresvergleich unverändert) und GAAP verwässerte EPS von 3,89 US-Dollar (ein Anstieg um 1,3 % im Jahresvergleich). Der Jahreswert der Abonnements (ASV) des Unternehmens erreichte 2.265,9 Millionen US-Dollar, wobei das organische ASV im Jahresvergleich um 4,5 % wuchs. Der freie Cashflow sank um 56,4 % auf 60,5 Millionen US-Dollar, hauptsächlich aufgrund niedrigeren operativen Cashflows und erhöhten Investitionsausgaben.
- Revenue growth of 4.9% YoY to $568.7 million
- Organic revenue growth of 4.7% YoY to $567.7 million
- Adjusted diluted EPS increased 6.1% to $4.37
- Organic ASV grew 4.5% YoY to $2,258.8 million
- GAAP operating margin decreased to 33.6% from 34.9% YoY
- Free cash flow decreased 56.4% to $60.5 million
- Higher effective tax rate of 16.5% vs 15.2% YoY
Insights
FactSet's Q1 FY25 results demonstrate resilient performance with
The
Growth drivers from wealth management, asset owners and institutional asset managers indicate strong market positioning in high-value segments. The shift toward managed services from project-based work suggests a more predictable revenue stream, though the modest
The financial data platform market continues to show resilience, with FactSet's results confirming sustained demand for enterprise-level financial solutions. The company's strategic pivot toward managed services aligns with industry trends toward integrated, scalable solutions over discrete project work.
The
While revenue growth remains positive, the sequential ASV growth of just
- Q1 GAAP revenues of
$568.7 million , up4.9% from Q1 2024. - Organic Q1 ASV of
$2,258.8 million , up4.5% year over year. - Q1 GAAP operating margin of
33.6% , down approximately 120 bps year over year, and adjusted operating margin of37.6% , consistent with the prior year. - Q1 GAAP diluted EPS of
$3.89 , up1.3% from the prior year, and adjusted diluted EPS of$4.37 , up6.1% year over year.
NORWALK, Conn., Dec. 19, 2024 (GLOBE NEWSWIRE) -- FactSet (“FactSet” or the “Company”) (NYSE:FDS) (NASDAQ:FDS), a global financial digital platform and enterprise solutions provider, today announced results for its first quarter fiscal 2025 ended November 30, 2024.
First Quarter Fiscal 2025 Highlights
- GAAP revenues increased
4.9% , or$26.5 million , to$568.7 million for the first quarter of fiscal 2025 compared with$542.2 million in the prior year period. Organic(1) revenues grew4.7% year over year to$567.7 million during the first quarter of fiscal 2025. Growth in GAAP and Organic revenues this quarter was driven by wealth, asset owners and institutional asset managers. - Annual Subscription Value ("ASV") was
$2,265.9 million at November 30, 2024, compared with$2,159.4 million at November 30, 2023. Organic ASV was$2,258.8 million at November 30, 2024, up4.5% or$98.1 million year over year(2). - Organic ASV increased
$3.4 million over the last three months. Please see the “ASV” section of this press release for details. - GAAP operating margin decreased to
33.6% compared with34.9% for the prior year period, mainly due to an increase in amortization of intangible assets and professional fees, partially offset by growth in revenues and a decrease in employee compensation costs. Adjusted operating margin was37.6% , consistent with the prior year period. - GAAP diluted earnings per share ("EPS") increased
1.3% to$3.89 compared with$3.84 for the same period in fiscal 2024, primarily due to growth in revenues and a decrease in employee compensation costs, partially offset by an increase in amortization of intangible assets and professional fees. Adjusted diluted EPS increased6.1% to$4.37 compared with$4.12 in the prior year period, driven by growth in revenues, offset by higher operating expenses and a higher tax rate. - Net cash provided by operating activities was
$86.4 million for the first quarter of fiscal 2025, driven by net income, partially offset by variable compensation payments, resolution of a sales tax dispute and timing of vendor payments. Free cash flow decreased to$60.5 million for the first quarter of fiscal 2025, compared with$138.7 million for the prior year period, a decrease of56.4% , primarily due to lower net cash provided by operating activities and an increase in capital expenditures. - GAAP effective tax rate for the first quarter of fiscal 2025 increased to
16.5% compared with15.2% for the first quarter of fiscal 2024. The primary driver of the higher rate in the first quarter of fiscal 2025 is the revaluation of a deferred tax asset associated with a foreign tax rate change.
(1) References to "organic" figures in this press release exclude the current year impact of acquisitions and dispositions completed within the past 12 months and the current year impact from changes in foreign currency.
(2) Beginning in fiscal 2025, FactSet is reporting Organic ASV, rather than Organic ASV plus Professional Services, to focus on the recurring nature of our revenues. This underscores the shift of FactSet's offerings toward providing more managed services and less project-based services.
"Clients increasingly look to us as a partner of choice to bring greater productivity and unlock efficiencies across their enterprise workflows," said Phil Snow, CEO of FactSet. "As we enter our second quarter, we have a robust pipeline fueled by the strength of our diverse portfolio of innovative solutions that deliver value and resonate with our clients."
Key Financial Measures*
| (Condensed and Unaudited) | Three Months Ended | |||||||
| November 30, | ||||||||
| (In thousands, except per share data) | 2024 | 2023 | Change | |||||
| Revenues | $ | 568,667 | $ | 542,216 | 4.9 | % | ||
| Organic revenues | $ | 567,673 | $ | 542,216 | 4.7 | % | ||
| Operating income | $ | 191,335 | $ | 189,040 | 1.2 | % | ||
| Adjusted operating income | $ | 213,750 | $ | 203,965 | 4.8 | % | ||
| Operating margin | 33.6 | % | 34.9 | % | ||||
| Adjusted operating margin | 37.6 | % | 37.6 | % | ||||
| Net income | $ | 150,022 | $ | 148,555 | 1.0 | % | ||
| Adjusted net income | $ | 168,132 | $ | 159,127 | 5.7 | % | ||
| EBITDA | $ | 229,856 | $ | 219,002 | 5.0 | % | ||
| Diluted EPS | $ | 3.89 | $ | 3.84 | 1.3 | % | ||
| Adjusted diluted EPS | $ | 4.37 | $ | 4.12 | 6.1 | % | ||
* See reconciliation of U.S. GAAP to adjusted key financial measures in the back of this press release.
"We are off to a good start in fiscal 2025 and achieved solid operating performance through sustained cost discipline and execution against our growth initiatives and capital strategy," said Helen Shan, FactSet's CFO. "FactSet has a proven track record of consistent growth through all cycles and we remain committed to delivering on both our annual guidance and the medium-term outlook we shared at our Investor Day."
Annual Subscription Value (ASV)
ASV at any given point in time represents the forward-looking revenues for the next 12 months from all subscription services currently supplied to clients.
ASV was
The buy-side and sell-side organic ASV annual growth rates as of November 30, 2024 were
Segment Revenues and ASV
ASV from the Americas was
ASV from the EMEA was
ASV from the Asia Pacific was
Operational Highlights – First Quarter Fiscal 2025
- Client count as of November 30, 2024 was 8,249, a net increase of 32 clients in the past three months, driven by an increase in partners, private equity and venture capital and wealth. The count includes clients with ASV of
$10,000 and more. - User count increased by 1,886 to 218,267 in the past three months, primarily driven by an increase in wealth management users.
- Annual ASV retention was greater than
95% . When expressed as a percentage of clients, annual retention was91% . - Employee headcount was 12,575 as of November 30, 2024, up
0.5% over the last 12 months, with the increase primarily in the content and technology groups. FactSet's Centers of Excellence account for approximately68% of the Company's employees. - A quarterly dividend of
$39.6 million , or$1.04 per share, is being paid on December 19, 2024, to holders of record of FactSet’s common stock at the close of business on November 29, 2024. - FactSet hosted an Investor Day on November 14, 2024, to provide an in-depth look into the Company’s strategic priorities, present its new medium-term financial outlook, and preview its new innovations and tailored workflow solutions.
- FactSet unveiled its Intelligent Platform initiative, which builds on the success of its AI Blueprint published last year and introduces the integration of conversational AI at the platform level. In the quarter, FactSet also launched Internal Research Notes (IRN) 2.0, a major enhancement to its Research Management Solutions for buy-side and wealth professionals, and its new Data as a Service (DaaS) solution, which provides data collection, management, and integration to data management teams at financial institutions and is part of FactSet's growing Managed Services offering.
- FactSet acquired Irwin, an investor relations and capital markets solution for innovative public companies and their advisors. The acquisition builds on a recent successful partnership that integrates Irwin’s award-winning investor relations (IR) CRM with the FactSet Workstation to equip IR professionals with a unified solution to manage investor engagement, conduct research, and streamline corporate access on a single platform.
- FactSet announced its joint initiative with J.P. Morgan Securities Services to deliver FactSet's industry-leading performance, reporting and portfolio analytics solutions through J.P. Morgan's award-winning Fusion data management platform. This joint offering enables asset managers and asset owners to focus on investment insights and generating alpha while benefiting from reduced total cost of ownership and flexibility to outsource or insource their portfolio analytics needs.
- FactSet announced the appointment of Christopher McLoughlin as Executive Vice President, Chief Legal Officer. Mr. McLoughlin has over 20 years of legal experience and was most recently General Counsel of S&P Global Market Intelligence. Before joining S&P Global, he was Deputy General Counsel and Company Secretary of IHS Markit.
- FactSet announced the appointment of Barak Eilam to its Board of Directors. Mr. Eilam brings nearly three decades of experience scaling enterprise software companies into global market leaders. He is serving as Chief Executive Officer of NICE, a leading enterprise software company specializing in analytics and AI solutions, through the end of the year.
Share Repurchase Program
FactSet repurchased 104,475 shares of its common stock for
Annual Business Outlook
FactSet is reaffirming its outlook for fiscal 2025, originally provided on September 21, 2024. The following forward-looking statements reflect FactSet's expectations as of today's date. Given the risk factors, uncertainties, and assumptions discussed below, actual results may differ materially. FactSet does not intend to update its forward-looking statements prior to its next quarterly results announcement.
Fiscal 2025 Expectations
- Organic ASV is expected to grow in the range of
$90 million to$140 million during fiscal 2025. - GAAP revenues are expected to be in the range of
$2,285 million to$2,305 million . - GAAP operating margin is expected to be in the range of
32.5% to33.5% . - Adjusted operating margin is expected to be in the range of
36.0% to37.0% . - FactSet's annual effective tax rate is expected to be in the range of
17% to18% . - GAAP diluted EPS is expected to be in the range of
$15.10 t o$15.70 . - Adjusted diluted EPS is expected to be in the range of
$16.80 t o$17.40 .
Adjusted operating margin and adjusted diluted EPS guidance do not include certain effects of any non-recurring benefits or charges that may arise in fiscal 2025. Please see the back of this press release for a reconciliation of GAAP to adjusted metrics.
Conference Call
First Quarter 2025 Conference Call Details
| Date: | Thursday, December 19, 2024 | |
| Time: | 11:00 a.m. Eastern Time | |
| Participant Registration: | FactSet Q1 2025 Earnings Call Registration |
Please register for the conference call using the above link before the call start time. The conference call platform will register your name and organization and provide dial-in numbers and a unique access pin. The conference call will have a live Q&A session.
A replay will be available on the Company’s investor relations website after 1:00 p.m. Eastern Time on December 19, 2024, through December 19, 2025. The earnings call transcript will be available via FactSet CallStreet.
Forward-looking Statements
This news release contains forward-looking statements based on management's current expectations, estimates, forecasts and projections about industries in which FactSet operates and the beliefs and assumptions of management. All statements that address expectations, guidance, outlook or projections about the future, including statements about the Company's strategy for growth, product development, revenues, future financial results, anticipated growth, market position, subscriptions, expected expenditures, trends in FactSet’s business and financial results, are forward-looking statements. Forward-looking statements may be identified by words like "may," "might," "will," "should," "expects," "plans," "anticipates," "believes," "estimates," "intends," "projects," "indicates," "predicts," "potential," or "continue," and similar expressions. These statements are not guarantees of future performance and involve a number of risks, uncertainties and assumptions. Many factors, including those discussed more fully elsewhere in this release and in FactSet's filings with the Securities and Exchange Commission, particularly its latest annual report on Form 10-K and quarterly reports on Form 10-Q, as well as others, could cause results to differ materially from those stated. Forward-looking statements speak only as of the date they are made, and FactSet assumes no duty to and does not undertake to update forward-looking statements. Actual results could differ materially from those anticipated in forward-looking statements and future results could differ materially from historical performance.
About Non-GAAP Financial Measures
Financial measures in accordance with U.S. GAAP including revenues, operating income and margin, net income, diluted earnings per share and cash provided by operating activities have been adjusted.
FactSet uses these adjusted financial measures both in presenting its results to stockholders and the investment community and in its internal evaluation and management of the business. The Company believes that these adjusted financial measures and the information they provide are useful to investors because they permit investors to view the Company’s performance using the same tools that management uses to gauge progress in achieving its goals. Investors may benefit from referring to these adjusted financial measures in assessing the Company’s performance and when planning, forecasting and analyzing future periods and may also facilitate comparisons to its historical performance. The presentation of this financial information is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP.
Organic revenues excludes from revenues the current year impact of revenues from acquisitions and dispositions completed within the past 12 months and the current year impact from changes in foreign currency. Adjusted operating income and margin, adjusted net income, and adjusted diluted earnings per share exclude acquisition-related intangible asset amortization and non-recurring items. EBITDA represents earnings before interest expense, provision for income taxes and depreciation and amortization expense. The Company believes that these adjusted financial measures help to fully reflect the underlying economic performance of FactSet.
Cash flows provided by operating activities has been reduced by purchases of property, equipment, leasehold improvements and capitalized internal-use software to report non-GAAP free cash flow. FactSet uses this financial measure both in presenting its results to stockholders and the investment community and in the Company’s internal evaluation and management of the business. Management believes that this financial measure is useful to investors because it is an indication of cash flow that may be available to fund further investments in future growth initiatives.
About FactSet
FactSet (NYSE:FDS | NASDAQ:FDS) helps the financial community to see more, think bigger, and work better. Our digital platform and enterprise solutions deliver financial data, analytics, and open technology to more than 8,200 global clients, including over 218,000 individual users. Clients across the buy-side and sell-side as well as wealth managers, private equity firms, and corporations achieve more every day with our comprehensive and connected content, flexible next-generation workflow solutions, and client-centric specialized support. As a member of the S&P 500, we are committed to sustainable growth and have been recognized amongst the Best Places to Work in 2023 by Glassdoor as a Glassdoor Employees’ Choice Award winner. Learn more at www.factset.com and follow us on X and LinkedIn.
FactSet
Investor Relations Contact:
Yet He
+1.212.973.5701
yet.he@factset.com
Media Contact:
Megan Kovach
+1.512.736.2795
megan.kovach@factset.com
| Consolidated Statements of Income (Unaudited) | |||||||
| Three Months Ended | |||||||
| November 30, | |||||||
| (In thousands, except per share data) | 2024 | 2023 | |||||
| Revenues | $ | 568,667 | $ | 542,216 | |||
| Operating expenses | |||||||
| Cost of services | 258,779 | 251,621 | |||||
| Selling, general and administrative | 118,553 | 101,555 | |||||
| Total operating expenses | 377,332 | 353,176 | |||||
| Operating income | 191,335 | 189,040 | |||||
| Other income (expense), net | |||||||
| Interest income | 2,701 | 3,012 | |||||
| Interest expense | (14,400 | ) | (16,738 | ) | |||
| Other income (expense), net | 103 | (118 | ) | ||||
| Total other income (expense), net | (11,596 | ) | (13,844 | ) | |||
| Income before income taxes | 179,739 | 175,196 | |||||
| Provision for income taxes | 29,717 | 26,641 | |||||
| Net income | $ | 150,022 | $ | 148,555 | |||
| Basic earnings per common share | $ | 3.95 | $ | 3.91 | |||
| Diluted earnings per common share | $ | 3.89 | $ | 3.84 | |||
| Basic weighted average common shares | 38,005 | 38,016 | |||||
| Diluted weighted average common shares | 38,517 | 38,643 | |||||
| Consolidated Balance Sheets (Unaudited) | ||||||
| (In thousands) | November 30, 2024 | August 31, 2024 | ||||
| ASSETS | ||||||
| Cash and cash equivalents | $ | 289,168 | $ | 422,979 | ||
| Investments | 69,623 | 69,619 | ||||
| Accounts receivable, net of reserves of | 252,521 | 228,054 | ||||
| Prepaid taxes | 78,682 | 55,103 | ||||
| Prepaid expenses and other current assets | 60,702 | 60,093 | ||||
| Total current assets | 750,696 | 835,848 | ||||
| Property, equipment and leasehold improvements, net | 81,524 | 82,513 | ||||
| Goodwill | 1,085,200 | 1,011,129 | ||||
| Intangible assets, net | 1,870,332 | 1,844,141 | ||||
| Deferred taxes | 40,317 | 61,337 | ||||
| Lease right-of-use assets, net | 117,514 | 130,494 | ||||
| Other assets | 96,000 | 89,578 | ||||
| TOTAL ASSETS | $ | 4,041,583 | $ | 4,055,040 | ||
| LIABILITIES | ||||||
| Accounts payable and accrued expenses | $ | 151,297 | $ | 178,250 | ||
| Current debt | 62,460 | 124,842 | ||||
| Current lease liabilities | 31,434 | 31,073 | ||||
| Accrued compensation | 51,760 | 93,279 | ||||
| Deferred revenues | 157,062 | 159,761 | ||||
| Current taxes payable | 44,551 | 40,391 | ||||
| Dividends payable | 39,572 | 39,470 | ||||
| Total current liabilities | 538,136 | 667,066 | ||||
| Long-term debt | 1,296,643 | 1,241,131 | ||||
| Deferred taxes | 8,046 | 8,452 | ||||
| Deferred revenues, non-current | 914 | 1,344 | ||||
| Taxes payable | 41,896 | 40,452 | ||||
| Long-term lease liabilities | 161,372 | 177,521 | ||||
| Other liabilities | 3,015 | 6,614 | ||||
| TOTAL LIABILITIES | $ | 2,050,022 | $ | 2,142,580 | ||
| STOCKHOLDERS’ EQUITY | ||||||
| TOTAL STOCKHOLDERS’ EQUITY | $ | 1,991,561 | $ | 1,912,460 | ||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 4,041,583 | $ | 4,055,040 | ||
| Consolidated Statements of Cash Flows (Unaudited) | ||||||
| Three Months Ended | ||||||
| November 30, | ||||||
| (In thousands) | 2024 | 2023 | ||||
| CASH FLOWS FROM OPERATING ACTIVITIES | ||||||
| Net income | $ | 150,022 | $ | 148,555 | ||
| Adjustments to reconcile net income to net cash provided by operating activities | ||||||
| Depreciation and amortization | 35,717 | 27,068 | ||||
| Amortization of lease right-of-use assets | 7,572 | 7,618 | ||||
| Stock-based compensation expense | 13,592 | 14,310 | ||||
| Deferred income taxes | 21,943 | 6,703 | ||||
| Other, net | 890 | 3,860 | ||||
| Changes in assets and liabilities, net of effects of acquisitions | ||||||
| Accounts receivable | (23,377 | ) | (9,758 | ) | ||
| Prepaid expenses and other assets | (5,697 | ) | (7,164 | ) | ||
| Accounts payable and accrued expenses | (38,793 | ) | 31,284 | |||
| Accrued compensation | (40,663 | ) | (60,348 | ) | ||
| Deferred revenues | (7,269 | ) | (2,542 | ) | ||
| Taxes payable, net of prepaid taxes | (17,806 | ) | 5,341 | |||
| Lease liabilities, net | (9,759 | ) | (9,783 | ) | ||
| Net cash provided by operating activities | 86,372 | 155,144 | ||||
| CASH FLOWS FROM INVESTING ACTIVITIES | ||||||
| Purchases of property, equipment, leasehold improvements and capitalized internal-use software | (25,874 | ) | (16,466 | ) | ||
| Acquisition of businesses, net of cash and cash equivalents acquired | (115,199 | ) | — | |||
| Purchases of investments | (3,987 | ) | (8,753 | ) | ||
| Net cash provided by (used in) investing activities | (145,060 | ) | (25,219 | ) | ||
| CASH FLOWS FROM FINANCING ACTIVITIES | ||||||
| Proceeds from debt | 55,000 | — | ||||
| Repayments of debt | (62,500 | ) | (62,500 | ) | ||
| Dividend payments | (39,246 | ) | (37,053 | ) | ||
| Proceeds from employee stock plans | 38,850 | 28,404 | ||||
| Repurchases of common stock | (48,790 | ) | (59,910 | ) | ||
| Other financing activities | (13,385 | ) | (13,505 | ) | ||
| Net cash provided by (used in) financing activities | (70,071 | ) | (144,564 | ) | ||
| Effect of exchange rate changes on cash and cash equivalents | (5,052 | ) | 1,050 | |||
| Net increase (decrease) in cash and cash equivalents | (133,811 | ) | (13,589 | ) | ||
| Cash and cash equivalents at beginning of period | 422,979 | 425,444 | ||||
| Cash and cash equivalents at end of period | $ | 289,168 | $ | 411,855 | ||
Certain prior year figures have been conformed to the current year's presentation.
Reconciliation of U.S. GAAP Results to Adjusted Financial Measures
Financial measures in accordance with U.S. GAAP, including revenues, operating income and margin, net income, diluted EPS and cash provided by operating activities, have been adjusted below. FactSet uses these adjusted financial measures both in presenting its results to stockholders and the investment community and in its internal evaluation and management of the business. The Company believes that these adjusted financial measures and the information they provide are useful to investors because they permit investors to view the Company’s performance using the same tools that management uses to gauge progress in achieving its goals. Adjusted measures may also facilitate comparisons to FactSet’s historical performance.
Organic Revenues
Organic revenues exclude the current year impact of revenues from acquisitions and dispositions completed within the past 12 months and the current year impact from changes in foreign currency. The table below provides a reconciliation of revenues to organic revenues:
| (Unaudited) | Three Months Ended | |||||||
| November 30, | ||||||||
| (In thousands) | 2024 | 2023 | Change | |||||
| Revenues | $ | 568,667 | $ | 542,216 | 4.9 | % | ||
| Acquisition revenues | (696 | ) | — | |||||
| Currency impact | (298 | ) | — | |||||
| Organic revenues | $ | 567,673 | $ | 542,216 | 4.7 | % | ||
Non-GAAP Financial Measures
The table below provides a reconciliation of operating income, operating margin, net income and diluted EPS to adjusted operating income, adjusted operating margin, adjusted net income, EBITDA and adjusted diluted EPS.
| Three Months Ended | ||||||||
| November 30, | ||||||||
| (in thousands, except per share data) | 2024 | 2023 | % Change | |||||
| Operating income | $ | 191,335 | $ | 189,040 | 1.2 | % | ||
| Intangible asset amortization | 16,581 | 17,344 | ||||||
| Business acquisition and related costs | 3,753 | — | ||||||
| Sales tax dispute(1) | 2,398 | — | ||||||
| Restructuring/Severance | (317 | ) | (2,419 | ) | ||||
| Adjusted operating income | $ | 213,750 | $ | 203,965 | 4.8 | % | ||
| Operating margin | 33.6 | % | 34.9 | % | ||||
| Adjusted operating margin(2) | 37.6 | % | 37.6 | % | ||||
| Net income | $ | 150,022 | $ | 148,555 | 1.0 | % | ||
| Intangible asset amortization | 12,397 | 12,368 | ||||||
| Business acquisition and related costs | 2,806 | — | ||||||
| Sales tax dispute(1) | 1,793 | — | ||||||
| Restructuring/Severance | (237 | ) | (1,725 | ) | ||||
| Income tax items | 1,351 | (71 | ) | |||||
| Adjusted net income(3) | $ | 168,132 | $ | 159,127 | 5.7 | % | ||
| Net income | 150,022 | 148,555 | 1.0 | % | ||||
| Interest expense | 14,400 | 16,738 | ||||||
| Income taxes | 29,717 | 26,641 | ||||||
| Depreciation and amortization expense | 35,717 | 27,068 | ||||||
| EBITDA | $ | 229,856 | $ | 219,002 | 5.0 | % | ||
| Diluted EPS | $ | 3.89 | $ | 3.84 | 1.3 | % | ||
| Intangible asset amortization | 0.32 | 0.32 | ||||||
| Business acquisition and related costs | 0.08 | — | ||||||
| Sales tax dispute(1) | 0.05 | — | ||||||
| Restructuring/Severance | (0.01 | ) | (0.04 | ) | ||||
| Income tax items | 0.04 | 0.00 | ||||||
| Adjusted diluted EPS(3) | $ | 4.37 | $ | 4.12 | 6.1 | % | ||
| Weighted average common shares (diluted) | 38,517 | 38,643 | ||||||
(1) Sales tax dispute relates to a resolved matter with the Massachusetts Department of Revenue.
(2) Adjusted operating margin is calculated as Adjusted operating income divided by Revenues.
(3) For purposes of calculating Adjusted net income and Adjusted diluted EPS, all adjustments for the three months ended November 30, 2024 and November 30, 2023 were taxed at an adjusted tax rate of
Business Outlook Operating Margin, Net Income and Diluted EPS
| (Unaudited) | ||||||
| Figures may not foot due to rounding | Annual Fiscal 2025 Guidance | |||||
| (In millions, except per share data) | Low end of range | High end of range | ||||
| Revenues | $ | 2,285 | $ | 2,305 | ||
| Operating income | $ | 765 | $ | 749 | ||
| Operating margin | 33.5 | % | 32.5 | % | ||
| Intangible asset amortization | 80 | 81 | ||||
| Adjusted operating income | $ | 845 | $ | 830 | ||
| Adjusted operating margin (a) | 37.0 | % | 36.0 | % | ||
| Net income | $ | 598 | $ | 577 | ||
| Intangible asset amortization | 66 | 66 | ||||
| Discrete tax items | (4 | ) | (3 | ) | ||
| Adjusted net income | $ | 660 | $ | 640 | ||
| Diluted earnings per common share | $ | 15.70 | $ | 15.10 | ||
| Intangible asset amortization | 1.73 | 1.73 | ||||
| Discrete tax items | (0.03 | ) | (0.03 | ) | ||
| Adjusted diluted earnings per common share | $ | 17.40 | $ | 16.80 | ||
(a) Adjusted operating margin is calculated as Adjusted operating income divided by Revenues.
Free Cash Flow
| (Unaudited) | Three Months Ended | |||||||
| November 30, | ||||||||
| (In thousands) | 2024 | 2023 | Change | |||||
| Net Cash Provided for Operating Activities | $ | 86,372 | $ | 155,144 | ||||
| Less: purchases of property, equipment, leasehold improvements and capitalized internal-use software | (25,874 | ) | (16,466 | ) | ||||
| Free Cash Flow | $ | 60,498 | $ | 138,678 | (56.4 | )% | ||
Supplementary Schedules of Historical ASV by Client Type
The following table presents the percentages and growth rates of organic ASV by client type, excluding the impact of currency movements, and may be useful to facilitate historical comparisons. Organic ASV excludes acquisitions and dispositions completed within the last 12 months and the effects of foreign currency movements.
The numbers below do not include professional services or issuer fees.
| Q1'25 | Q4'24 | Q3'24 | Q2'24 | Q1'24 | Q4'23 | Q3'23 | Q2'23 | |
| % of ASV from buy-side clients | ||||||||
| % of ASV from sell-side clients | ||||||||
| ASV Growth rate from buy-side clients | ||||||||
| ASV Growth rate from sell-side clients |
The following table presents the calculation of organic ASV.
| (In millions) | As of November 30, 2024 | ||
| As reported ASV | $ | 2,265.9 | |
| Currency impact (a) | 2.0 | ||
| Acquisition ASV (b) | (9.1 | ) | |
| Organic ASV | $ | 2,258.8 | |
| Organic ASV annual growth rate | 4.5 | % | |
(a) The impact from foreign currency movements.
(b) Acquired ASV from acquisitions completed within the last 12 months.
FAQ
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