FactSet Reports Results for Fourth Quarter 2024
FactSet reported Q4 2024 GAAP revenues of $562.2 million, a 4.9% increase year-over-year. Organic Q4 ASV and professional services grew 4.8% to $2,272.8 million. The GAAP operating margin rose to 22.7%, and the adjusted operating margin improved to 35.8%, up 240 basis points. GAAP diluted EPS surged 38.1% to $2.32, while adjusted diluted EPS increased 23.8% to $3.74.
For fiscal 2025, FactSet anticipates organic ASV growth of 4%-6%, GAAP revenues between $2,285 and $2,305 million, an adjusted operating margin of 36%-37%, and adjusted diluted EPS between $16.80 and $17.40. The company recorded a $54 million charge related to a Massachusetts sales tax dispute.
Full-year 2024 highlights include a 5.6% increase in GAAP revenues to $2.20 billion and a 15.5% rise in GAAP diluted EPS to $13.91. Free cash flow was $137.2 million for Q4, down 12.2% year-over-year, while full-year free cash flow rose 5.1% to $614.7 million. FactSet raised its quarterly dividend by 6% and repurchased $385.9 million in shares and dividends.
FactSet ha registrato ricavi GAAP nel Q4 2024 di $562,2 milioni, con un aumento del 4,9% rispetto all'anno precedente. I servizi professionali e l'ASV organico nel Q4 sono cresciuti del 4,8% raggiungendo $2.272,8 milioni. Il margine operativo GAAP è aumentato al 22,7%, mentre il margine operativo rettificato è migliorato al 35,8%, con un incremento di 240 punti base. L'EPS diluito GAAP è balzato del 38,1% a $2,32, mentre l'EPS diluito rettificato è aumentato del 23,8% a $3,74.
Per l'esercizio fiscale 2025, FactSet prevede una crescita organica dell'ASV del 4%-6%, ricavi GAAP tra $2.285 e $2.305 milioni, un margine operativo rettificato del 36%-37% e un EPS diluito rettificato tra $16,80 e $17,40. L'azienda ha registrato un onere di $54 milioni relativo a una controversia fiscale sulle vendite nel Massachusetts.
Tra i punti salienti dell'anno fiscale 2024, si evidenzia un incremento del 5,6% nei ricavi GAAP a $2,20 miliardi e un aumento del 15,5% dell'EPS diluito GAAP a $13,91. Il flusso di cassa libero per il Q4 è stato di $137,2 milioni, in calo del 12,2% rispetto all'anno precedente, mentre il flusso di cassa libero per l'intero anno è aumentato del 5,1% a $614,7 milioni. FactSet ha aumentato il proprio dividendo trimestrale del 6% e ha riacquistato $385,9 milioni in azioni e dividendi.
FactSet reportó ingresos GAAP del cuarto trimestre de 2024 de $562.2 millones, un aumento del 4.9% en comparación con el año anterior. Los servicios profesionales y el ASV orgánico del cuarto trimestre crecieron un 4.8% hasta $2,272.8 millones. El margen operativo GAAP subió al 22.7%, y el margen operativo ajustado mejoró al 35.8%, lo que representa un aumento de 240 puntos base. El EPS diluido GAAP se disparó un 38.1% a $2.32, mientras que el EPS diluido ajustado aumentó un 23.8% a $3.74.
Para el ejercicio fiscal 2025, FactSet anticipa un crecimiento orgánico del ASV del 4%-6%, ingresos GAAP entre $2,285 y $2,305 millones, un margen operativo ajustado del 36%-37% y un EPS diluido ajustado entre $16.80 y $17.40. La empresa registró un cargo de $54 millones relacionado con una disputa sobre impuestos a las ventas en Massachusetts.
Los puntos destacados del año fiscal 2024 incluyen un aumento del 5.6% en los ingresos GAAP a $2.20 mil millones y un incremento del 15.5% en el EPS diluido GAAP a $13.91. El flujo de caja libre fue de $137.2 millones para el cuarto trimestre, una disminución del 12.2% en comparación con el año anterior, mientras que el flujo de caja libre total del año aumentó un 5.1% a $614.7 millones. FactSet incrementó su dividendo trimestral en un 6% y recompró $385.9 millones en acciones y dividendos.
FactSet는 2024년 4분기 GAAP 수익이 5억 6천 2백만 달러로, 전년 대비 4.9% 증가했다고 보고했습니다. 4분기 유기적 ASV와 전문 서비스는 4.8% 증가하여 22억 7천 2백 80만 달러에 달했습니다. GAAP 운영 마진은 22.7%로 상승했으며, 조정 후 운영 마진은 35.8%로 240 베이시스 포인트 개선되었습니다. GAAP 희석 EPS는 38.1% 급증하여 2.32달러가 되었고, 조정 후 희석 EPS는 23.8% 증가하여 3.74달러에 도달했습니다.
2025 회계연도에 대해 FactSet은 유기적 ASV 성장률이 4%-6% 사이일 것으로 예상하고, GAAP 수익은 22억 2천85만 달러에서 23억 5백만 달러 사이, 조정된 운영 마진은 36%-37% 사이, 조정된 희석 EPS는 16.80달러에서 17.40달러 사이일 것으로 보입니다. 회사는 매사추세츠주 판매세 분쟁과 관련하여 5천40만 달러의 비용을 기록했습니다.
2024년 전체 주요 사항으로는 GAAP 수익이 22억 달러로 5.6% 증가하고, GAAP 희석 EPS는 15.5% 상승하여 13.91달러에 도달했음을 포함합니다. 4분기 자유 현금 흐름은 1억 3천7백20만 달러로, 전년 대비 12.2% 감소했으며, 연간 자유 현금 흐름은 5.1% 증가하여 6억 1천4백70만 달러에 달했습니다. FactSet은 분기 배당금을 6% 인상하고 3억 8천5백90만 달러의 주식과 배당금을 재매입했습니다.
FactSet a rapporté des revenus GAAP pour le 4ème trimestre de 2024 de 562,2 millions de dollars, soit une augmentation de 4,9 % par rapport à l'année précédente. L'ASV organique et les services professionnels du 4ème trimestre ont augmenté de 4,8 % pour atteindre 2 272,8 millions de dollars. Le marge opérationnelle GAAP a augmenté à 22,7 %, et la marge opérationnelle ajustée s'est améliorée à 35,8 %, soit une augmentation de 240 points de base. Le BPA dilué GAAP a bondi de 38,1 % à 2,32 dollars, tandis que le BPA dilué ajusté a augmenté de 23,8 % à 3,74 dollars.
Pour l'exercice fiscal 2025, FactSet prévoit une croissance organique de l'ASV de 4% à 6%, des revenus GAAP compris entre 2 285 et 2 305 millions de dollars, une marge opérationnelle ajustée de 36 % à 37 %, et un BPA dilué ajusté compris entre 16,80 et 17,40 dollars. La société a enregistré une charge de 54 millions de dollars liée à un litige concernant la taxe de vente dans le Massachusetts.
Les points forts de l'année fiscale 2024 comprennent une augmentation de 5,6 % des revenus GAAP à 2,20 milliards de dollars et une hausse de 15,5 % du BPA dilué GAAP à 13,91 dollars. Le flux de trésorerie disponible pour le 4ème trimestre s'élevait à 137,2 millions de dollars, en baisse de 12,2 % par rapport à l'année précédente, tandis que le flux de trésorerie disponible pour l'année complète a augmenté de 5,1 % pour atteindre 614,7 millions de dollars. FactSet a augmenté son dividende trimestriel de 6 % et a racheté pour 385,9 millions de dollars d'actions et de dividendes.
FactSet meldete im vierten Quartal 2024 GAAP-Umsätze von 562,2 Millionen US-Dollar, was einem Anstieg von 4,9 % im Vergleich zum Vorjahr entspricht. Das organische ASV und die professionellen Dienstleistungen wuchsen im vierten Quartal um 4,8 % auf 2.272,8 Millionen US-Dollar. Die GAAP-Betriebs_margin stieg auf 22,7 %, und die bereinigte Betriebs_margin verbesserte sich auf 35,8 %, was einem Anstieg von 240 Basispunkten entspricht. GAAP verwässert EPS stieg um 38,1% auf 2,32 USD, während das bereinigte verwässerte EPS um 23,8% auf 3,74 USD zunahm.
Für das Geschäftsjahr 2025 erwartet FactSet ein organisches Wachstum des ASV von 4%-6%, GAAP-Umsätze zwischen 2.285 und 2.305 Millionen US-Dollar, eine bereinigte Betriebs_margin von 36%-37% und ein bereinigtes verwässertes EPS zwischen 16,80 und 17,40 US-Dollar. Das Unternehmen verbuchte eine Belastung von 54 Millionen US-Dollar im Zusammenhang mit einem Steuerstreit in Massachusetts.
Zu den Highlights des vollständigen Geschäftsjahres 2024 gehören ein Anstieg der GAAP-Umsätze um 5,6 % auf 2,20 Milliarden US-Dollar und ein Anstieg des GAAP verwässerten EPS um 15,5 % auf 13,91 US-Dollar. Der freie Cashflow betrug im vierten Quartal 137,2 Millionen US-Dollar, was einem Rückgang von 12,2 % im Vergleich zum Vorjahr entspricht, während der gesamte freie Cashflow im Jahresverlauf um 5,1 % auf 614,7 Millionen US-Dollar stieg. FactSet erhöhte seine vierteljährliche Dividende um 6 % und hat Aktien und Dividenden im Wert von 385,9 Millionen US-Dollar zurückgekauft.
- Q4 GAAP revenues increased by 4.9% to $562.2 million.
- GAAP diluted EPS rose 38.1% to $2.32.
- Adjusted diluted EPS increased by 23.8% to $3.74.
- GAAP operating margin increased to 22.7%, and adjusted operating margin to 35.8%.
- Full-year GAAP revenues rose 5.6% to $2.20 billion.
- Full-year GAAP diluted EPS up 15.5% to $13.91.
- FactSet increased its quarterly cash dividend by 6%.
- FactSet recorded a $54 million charge related to a Massachusetts sales tax dispute.
- Free cash flow for Q4 decreased by 12.2% year-over-year.
Insights
FactSet's Q4 and FY2024 results demonstrate solid financial performance. Q4 GAAP revenues increased 4.9% to
Profitability improved significantly, with Q4 adjusted operating margin expanding 240 basis points to
The company's guidance for FY2025 suggests continued growth, with organic ASV growth projected at
The
While the charge impacts short-term profitability, the resolution of this dispute removes a potential ongoing liability. Investors should note that such tax disputes can be complex and time-consuming, often involving negotiations with state authorities. The apparent conclusion of this matter eliminates a source of uncertainty for the company's financial outlook.
It's important for investors to monitor any potential similar disputes in other jurisdictions, as they could impact future financial results. However, FactSet's proactive approach in addressing and resolving this issue demonstrates effective risk management and financial governance.
FactSet's performance reflects resilience in a challenging market environment. The
The company's open platform strategy appears to be resonating with clients seeking growth and efficiency in uncertain times. This adaptability positions FactSet well in the competitive financial data and analytics market. The
Looking ahead, FactSet's guidance for FY2025 suggests cautious optimism. The projected
- Q4 GAAP revenues of
$562.2 million , up4.9% from Q4 2023. - Organic Q4 ASV plus professional services of
$2,272.8 million , up4.8% year over year. - Q4 GAAP operating margin of
22.7% , up approximately 110 bps year over year, and adjusted operating margin of35.8% , up 240 bps from the prior year. - Q4 GAAP diluted EPS of
$2.32 , up38.1% from the prior year, and adjusted diluted EPS of$3.74 , up23.8% year over year. - FactSet is providing fiscal 2025 guidance, with expected organic ASV growth of
4% -6% , GAAP revenues in the range of$2,285 t o$2,305 million , adjusted operating margin in the range of36% -37% , and adjusted diluted EPS in the range of$16.80 -$17.40 .
NORWALK, Conn., Sept. 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 fourth quarter fiscal 2024 ended August 31, 2024.
Fourth Quarter Fiscal 2024 Highlights
- GAAP revenues increased
4.9% , or$26.4 million , to$562.2 million for the fourth quarter of fiscal 2024 compared with$535.8 million in the prior year period. Organic(1) revenues grew5.0% year over year to$562.8 million during the fourth quarter of fiscal 2024. Growth in GAAP and Organic revenues this quarter was driven by wealth, banking, institutional asset managers and asset owners. - Annual Subscription Value ("ASV") plus professional services was
$2,276.0 million at August 31, 2024, compared with$2,174.6 million at August 31, 2023. Organic ASV plus professional services was$2,272.8 million at August 31, 2024, up4.8% or$104.4 million year over year. - Organic ASV plus professional services increased
$53.5 million over the last three months. Please see the “ASV + Professional Services” section of this press release for details. - GAAP operating margin increased to
22.7% compared with21.7% for the prior year period, mainly due to a decrease in employee compensation costs, growth in revenues and lapping of the prior year's facilities impairment, partially offset by charges related to the Massachusetts sales tax dispute. Adjusted operating margin improved to35.8% compared with33.4% in the prior year period due to lower bonus accrual and salary costs due to lower headcount, partially offset by higher technology expenses from amortization of internal use software. - During the fourth quarter, FactSet took a charge of approximately
$54 million related to our previously disclosed Massachusetts sales tax dispute. In addition to reserves taken in prior fiscal years, this brings our total charge with respect to this matter to approximately$64 million . FactSet does not anticipate taking additional material charges with respect to this matter. - GAAP diluted earnings per share ("EPS") increased
38.1% to$2.32 compared with$1.68 for the same period in fiscal 2023, due to a decrease in employee compensation costs and an increase in revenues, partially offset by charges related to the Massachusetts sales tax dispute. Adjusted diluted EPS increased23.8% to$3.74 compared with$3.02 in the prior year period, driven by growth in revenues, margin expansion, and a lower tax rate. - Net cash provided by operating activities was
$163.2 million for the fourth quarter of fiscal 2024, driven by net income and timing of payments to vendors. Free cash flow decreased to$137.2 million for the fourth quarter of fiscal 2024, compared with$156.3 million for the same period in fiscal 2023, a decrease of12.2% , primarily due to lower net cash provided by operating activities and an increase in capital expenditures.
- GAAP effective tax rate for the fourth quarter of fiscal 2024 decreased to
23.6% compared with39.3% for the three months ended August 31, 2023. The primary driver of the lower GAAP rate in the fourth quarter of fiscal 2024 is the inclusion of a prior year tax adjustment in the fourth quarter of fiscal 2023.
(1) References to "organic" figures in this press release exclude the current year impact of acquisitions and dispositions completed within the past twelve months and the current year impact from changes in foreign currency.
"During a time of technological change and an external environment marked by both uncertainty and opportunity, FactSet's open platform strategy is resonating with clients seeking growth and efficiency," said Phil Snow, CEO of FactSet. "Our commitment to innovation ensures our comprehensive data and analytical tools are fully available to our clients, empowering them to achieve their goals."
Key Financial Measures*
| (Condensed and Unaudited) | Three Months Ended | Twelve Months Ended | Latest | |||||||||||||||||||
| August 31, | August 31, | August 31, | August 31, | FY2024 | ||||||||||||||||||
| (In thousands, except per share data) | 2024 | 2023 | Change | 2024 | 2023 | Change | Guidance | |||||||||||||||
| Revenues | $ | 562,187 | $ | 535,797 | 4.9 | % | $ | 2,203,056 | $ | 2,085,508 | 5.6 | % | ||||||||||
| Organic revenues | $ | 562,781 | $ | 535,797 | 5.0 | % | $ | 2,203,736 | $ | 2,085,508 | 5.7 | % | ||||||||||
| Operating income | $ | 127,858 | $ | 116,103 | 10.1 | % | $ | 701,299 | $ | 629,207 | 11.5 | % | ||||||||||
| Adjusted operating income | $ | 201,402 | $ | 179,134 | 12.4 | % | $ | 832,653 | $ | 754,188 | 10.4 | % | ||||||||||
| Operating margin | 22.7 | % | 21.7 | % | 31.8 | % | 30.2 | % | ||||||||||||||
| Adjusted operating margin | 35.8 | % | 33.4 | % | 37.8 | % | 36.2 | % | ||||||||||||||
| Net income | $ | 89,496 | $ | 65,119 | 37.4 | % | $ | 537,126 | $ | 468,173 | 14.7 | % | ||||||||||
| Adjusted net income | $ | 144,089 | $ | 117,225 | 22.9 | % | $ | 635,073 | $ | 569,722 | 11.5 | % | ||||||||||
| Adjusted EBITDA | $ | 170,494 | $ | 171,207 | (0.4 | )% | $ | 847,538 | $ | 776,620 | 9.1 | % | ||||||||||
| Diluted EPS | $ | 2.32 | $ | 1.68 | 38.1 | % | $ | 13.91 | $ | 12.04 | 15.5 | % | ||||||||||
| Adjusted diluted EPS | $ | 3.74 | $ | 3.02 | 23.8 | % | $ | 16.45 | $ | 14.65 | 12.3 | % | ||||||||||
* See reconciliation of U.S. GAAP to adjusted key financial measures in the back of this press release.
"We are pleased with our results this quarter, which reflect our strong execution and operating discipline," said Helen Shan, FactSet's CFO. "By protecting our operating margin through aligning variable expenses with revenues, we achieved solid earnings growth and wrapped up the year effectively, positioning us well for fiscal 2025."
Full Year Fiscal 2024 Highlights
- GAAP revenues increased
5.6% to$2.20 billion , up5.7% on an organic basis, based primarily on growth in organic revenues driven by wealth, CUSIP Global Services ("CGS") subscriptions, and higher transactional revenue. This marked the 44th consecutive year of increased revenues for the Company.
- GAAP operating margin increased to
31.8% compared with30.2% for the prior year, primarily due to growth in revenues, a decrease in employee compensation costs and lapping of the prior year's facilities impairment, partially offset by charges related to the Massachusetts sales tax dispute. Adjusted operating margin improved to37.8% compared with36.2% in the prior year driven by lower bonus accrual and salary due to headcount reductions, partially offset by increased technology expenses from amortization and software licenses. - GAAP diluted EPS increased
15.5% to$13.91 , mainly driven by growth in revenues, partially offset by charges related to the Massachusetts sales tax dispute. Adjusted diluted EPS increased12.3% to$16.45 , primarily driven by growth in revenues, margin expansion and a lower tax rate. Fiscal 2024 marks the 28th consecutive year that FactSet has increased its adjusted diluted EPS. - Net cash provided by operating activities was
$700.3 million for fiscal 2024, driven by net income and timing of payments to vendors. Free cash flow increased to$614.7 million for fiscal 2024 compared with$584.8 million for fiscal 2023, an increase of5.1% , primarily due to higher net cash provided by operating activities, partially offset by an increase in capital expenditures. - Adjusted EBITDA increased to
$847.5 million , up9.1% , for fiscal 2024, compared with$776.6 million for fiscal 2023, due to an increase in operating income primarily driven by higher revenues, partially offset by charges related to the Massachusetts sales tax dispute. - GAAP effective tax rate for fiscal 2024 decreased to
17.6% compared with19.8% for the twelve months ended August 31, 2023. The primary driver of the lower GAAP rate in fiscal 2024 is the inclusion of a prior year tax adjustment in the fourth quarter of fiscal 2023. - Client count increased by
3.7% or 296 during the fiscal year, while users grew by13.9% or 26,409 from the prior year. - In May 2024, FactSet increased its quarterly cash dividend by
6% to$1.04 per share. The$0.06 per share increase marks the 25th consecutive year the Company has increased dividends, highlighting FactSet's continued commitment to return value to its shareholders. - The Company returned
$385.9 million to shareholders in the form of share repurchases and dividends during fiscal 2024, for a return of55% as a percentage of free cash flow and proceeds from employee stock plans.
Annual Subscription Value (ASV) + Professional Services
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. Professional services are revenues derived from project-based consulting and implementation services.
ASV plus professional services was
The buy-side and sell-side organic ASV annual growth rates as of August 31, 2024 were
Segment Revenues and ASV
ASV from the Americas region was
ASV from the EMEA region was
ASV from the Asia Pacific region was
Segment ASV does not include professional services, which totaled
Operational Highlights – Fourth Quarter Fiscal 2024
- Client count as of August 31, 2024 was 8,217, a net increase of 188 clients in the past three months, with increases driven by wealth, corporates, hedge funds and partners. The count includes clients with ASV of
$10,000 and more. - User count increased by 8,241 to 216,381 in the past three months driven primarily by wealth and seasonal bank hiring.
- Annual ASV retention was greater than
95% . When expressed as a percentage of clients, annual retention was90% . - Employee count was 12,398 as of August 31, 2024, up
1.3% over the last twelve months, with the increase primarily in the content group. FactSet's Centers of Excellence account for approximately69% of the Company's employees. - The Company announced that its Board of Directors approved a regular quarterly cash dividend of
$1.04 per share. The cash dividend will be paid on September 19, 2024, to holders of record of FactSet’s common stock at the close of business on August 30, 2024. - FactSet announced that it will host an Investor Day on Thursday, November 14, 2024, from 8:00 a.m. to 2:00 p.m. EST. The event will be dually hosted in New York City and via live stream.
- FactSet announced its suite of solutions designed to enable technologists and developers to build proprietary workflows and accelerate their AI-powered innovations.
- Kristina Karnovsky has been appointed Executive Vice President and Head of the Dealmakers and Wealth group, effective September 1, 2024. Ms. Karnovsky is a veteran FactSet executive who previously served as FactSet's Executive Vice President and Chief Product Officer. Ms. Karnovsky succeeds Goran Skoko, who became the Company's Chief Revenue Officer effective September 1, 2024.
Share Repurchase Program
FactSet repurchased 153,650 shares of its common stock for
Annual Business Outlook
FactSet is providing its outlook for fiscal 2025. 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
Beginning in fiscal 2025, FactSet will report Organic ASV, rather than Organic ASV plus Professional Services, to more accurately reflect the recurring nature of its revenues. This underscores the shift of FactSet's offerings toward providing more managed services and less project-based services.
- 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
| Fourth Quarter 2024 Conference Call Details | |
| Date: | Thursday, September 19, 2024 |
| Time: | 11:00 a.m. Eastern Time |
| Participant Registration: | FactSet Q4 2024 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 September 19, 2024, through September 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 "expects," "believes," "anticipates," "plans," "intends," "estimates," "projects," "should," "indicates," "continues," "may" 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 twelve 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 and adjusted EBITDA represent earnings before interest expense, provision for income taxes and depreciation and amortization expense, while Adjusted EBITDA further excludes non-recurring non-cash expenses. 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 permits investors to view the Company’s performance using the same metric that management uses to gauge progress in achieving its goals and 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 216,000 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
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+1.203.810.2273
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Megan Kovach
+1.512.736.2795
megan.kovach@factset.com
| Consolidated Statements of Income (Unaudited) | |||||||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||
| August 31, | August 31, | August 31, | August 31, | ||||||||||||
| (In thousands, except per share data) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Revenues | $ | 562,187 | $ | 535,797 | $ | 2,203,056 | $ | 2,085,508 | |||||||
| Operating expenses | |||||||||||||||
| Cost of services | 258,196 | 263,688 | 1,011,945 | 973,225 | |||||||||||
| Selling, general and administrative | 172,519 | 131,227 | 485,135 | 457,130 | |||||||||||
| Asset impairments | 3,614 | 24,779 | 4,677 | 25,946 | |||||||||||
| Total operating expenses | 434,329 | 419,694 | 1,501,757 | 1,456,301 | |||||||||||
| Operating income | 127,858 | 116,103 | 701,299 | 629,207 | |||||||||||
| Other income (expense), net | |||||||||||||||
| Interest income | 4,020 | 4,618 | 14,447 | 12,809 | |||||||||||
| Interest expense | (15,547 | ) | (16,691 | ) | (65,778 | ) | (66,319 | ) | |||||||
| Other income (expense), net | 799 | 3,279 | 1,535 | 8,257 | |||||||||||
| Total other income (expense), net | (10,728 | ) | (8,794 | ) | (49,796 | ) | (45,253 | ) | |||||||
| Income before income taxes | 117,130 | 107,309 | 651,503 | 583,954 | |||||||||||
| Provision for income taxes | 27,634 | 42,190 | 114,377 | 115,781 | |||||||||||
| Net income | $ | 89,496 | $ | 65,119 | $ | 537,126 | $ | 468,173 | |||||||
| Basic earnings per common share | $ | 2.35 | $ | 1.71 | $ | 14.11 | $ | 12.26 | |||||||
| Diluted earnings per common share | $ | 2.32 | $ | 1.68 | $ | 13.91 | $ | 12.04 | |||||||
| Basic weighted average common shares | 38,007 | 38,092 | 38,059 | 38,194 | |||||||||||
| Diluted weighted average common shares | 38,517 | 38,784 | 38,618 | 38,898 | |||||||||||
| Consolidated Balance Sheets (Unaudited) | |||||||
| (In thousands) | August 31, 2024 | August 31, 2023 | |||||
| ASSETS | |||||||
| Cash and cash equivalents | $ | 422,979 | $ | 425,444 | |||
| Investments | 69,619 | 32,210 | |||||
| Accounts receivable, net of reserves of | 228,054 | 237,665 | |||||
| Prepaid taxes | 56,994 | 24,206 | |||||
| Prepaid expenses and other current assets | 60,092 | 50,610 | |||||
| Total current assets | 837,738 | 770,135 | |||||
| Property, equipment and leasehold improvements, net | 82,513 | 86,107 | |||||
| Goodwill | 1,011,129 | 1,004,736 | |||||
| Intangible assets, net | 1,844,141 | 1,859,202 | |||||
| Deferred taxes | 61,337 | 27,229 | |||||
| Lease right-of-use assets, net | 130,494 | 141,837 | |||||
| Other assets | 89,578 | 73,676 | |||||
| TOTAL ASSETS | $ | 4,056,930 | $ | 3,962,922 | |||
| LIABILITIES | |||||||
| Accounts payable and accrued expenses | $ | 178,250 | $ | 121,816 | |||
| Current debt | 124,842 | — | |||||
| Current lease liabilities | 31,073 | 28,839 | |||||
| Accrued compensation | 93,279 | 112,892 | |||||
| Deferred revenues | 159,761 | 152,430 | |||||
| Current taxes payable | 42,281 | 31,009 | |||||
| Dividends payable | 39,470 | 37,265 | |||||
| Total current liabilities | 668,956 | 484,251 | |||||
| Long-term debt | 1,241,131 | 1,612,700 | |||||
| Deferred taxes | 8,452 | 6,737 | |||||
| Deferred revenues, non-current | 1,344 | 3,734 | |||||
| Taxes payable | 40,452 | 30,344 | |||||
| Long-term lease liabilities | 177,521 | 198,382 | |||||
| Other liabilities | 6,614 | 6,844 | |||||
| TOTAL LIABILITIES | $ | 2,144,470 | $ | 2,342,992 | |||
| STOCKHOLDERS’ EQUITY | |||||||
| TOTAL STOCKHOLDERS’ EQUITY | $ | 1,912,460 | $ | 1,619,930 | |||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 4,056,930 | $ | 3,962,922 | |||
| Consolidated Statements of Cash Flows (Unaudited) | |||||||
| Twelve Months Ended | |||||||
| August 31, | August 31, | ||||||
| (In thousands) | 2024 | 2023 | |||||
| CASH FLOWS FROM OPERATING ACTIVITIES | |||||||
| Net income | $ | 537,126 | $ | 468,173 | |||
| Adjustments to reconcile net income to net cash provided by operating activities | |||||||
| Depreciation and amortization | 125,187 | 105,384 | |||||
| Amortization of lease right-of-use assets | 30,407 | 32,344 | |||||
| Stock-based compensation expense | 63,501 | 62,038 | |||||
| Deferred income taxes | (32,020 | ) | (31,119 | ) | |||
| Asset impairments | 4,677 | 25,946 | |||||
| Changes in assets and liabilities, net of effects of acquisitions | |||||||
| Accounts receivable, net of reserves | 2,195 | (40,103 | ) | ||||
| Accounts payable and accrued expenses | 55,347 | 8,393 | |||||
| Accrued compensation | (20,213 | ) | (3,431 | ) | |||
| Deferred revenues | 4,939 | (3,387 | ) | ||||
| Taxes payable, net of prepaid taxes | (11,448 | ) | 41,396 | ||||
| Lease liabilities, net | (39,320 | ) | (39,704 | ) | |||
| Other, net | (20,040 | ) | 19,643 | ||||
| Net cash provided by operating activities | 700,338 | 645,573 | |||||
| CASH FLOWS FROM INVESTING ACTIVITIES | |||||||
| Purchases of property, equipment, leasehold improvements and capitalized internal-use software | (85,681 | ) | (60,786 | ) | |||
| Acquisition of businesses, net of cash and cash equivalents acquired | — | (23,593 | ) | ||||
| Purchases of investments | (58,636 | ) | (11,014 | ) | |||
| Net cash provided by (used in) investing activities | (144,317 | ) | (95,393 | ) | |||
| CASH FLOWS FROM FINANCING ACTIVITIES | |||||||
| Repayments of debt | (250,000 | ) | (375,000 | ) | |||
| Dividend payments | (150,667 | ) | (138,601 | ) | |||
| Proceeds from employee stock plans | 91,711 | 72,006 | |||||
| Repurchases of common stock | (235,235 | ) | (176,720 | ) | |||
| Other financing activities | (16,659 | ) | (13,709 | ) | |||
| Net cash provided by (used in) financing activities | (560,850 | ) | (632,024 | ) | |||
| Effect of exchange rate changes on cash and cash equivalents | 2,364 | 4,015 | |||||
| Net increase (decrease) in cash and cash equivalents | (2,465 | ) | (77,829 | ) | |||
| Cash and cash equivalents at beginning of period | 425,444 | 503,273 | |||||
| Cash and cash equivalents at end of period | $ | 422,979 | $ | 425,444 | |||
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.
Revenues
Organic revenues exclude the current year impact of revenues from acquisitions and dispositions completed within the past twelve 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 | Twelve Months Ended | ||||||||||||||||||
| August 31, | August 31, | August 31, | ||||||||||||||||||
| (In thousands) | 2024 | 2023 | Change | 2024 | 2023 | Change | ||||||||||||||
| Revenues | $ | 562,187 | $ | 535,797 | 4.9 | % | $ | 2,203,056 | $ | 2,085,508 | 5.6 | % | ||||||||
| Acquisition revenues | 16 | — | (414 | ) | — | |||||||||||||||
| Currency impact | 578 | — | 1,094 | — | ||||||||||||||||
| Organic revenues | $ | 562,781 | $ | 535,797 | 5.0 | % | $ | 2,203,736 | $ | 2,085,508 | 5.7 | % | ||||||||
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, adjusted EBITDA and adjusted diluted EPS.
| Three Months Ended | Twelve Months Ended | ||||||||||||||||||||
| August 31, | August 31, | August 31, | August 31, | ||||||||||||||||||
| (in thousands, except per share data) | 2024 | 2023 | % Change | 2024 | 2023 | % Change | |||||||||||||||
| Operating income | $ | 127,858 | $ | 116,103 | 10.1 | % | $ | 701,299 | $ | 629,207 | 11.5 | % | |||||||||
| Intangible asset amortization | 16,691 | 18,131 | 67,383 | 71,503 | |||||||||||||||||
| Massachusetts sales tax dispute | 54,048 | 6,239 | 54,048 | 6,239 | |||||||||||||||||
| Restructuring / severance | (1,099 | ) | 18,128 | 5,596 | 19,879 | ||||||||||||||||
| Asset impairment(1) | 3,443 | 20,327 | 3,443 | 20,327 | |||||||||||||||||
| Business acquisition / integration costs(2) | 461 | 206 | 884 | 7,033 | |||||||||||||||||
| Adjusted operating income | $ | 201,402 | $ | 179,134 | 12.4 | % | $ | 832,653 | $ | 754,188 | 10.4 | % | |||||||||
| Operating margin | 22.7 | % | 21.7 | % | 31.8 | % | 30.2 | % | |||||||||||||
| Adjusted operating margin(3) | 35.8 | % | 33.4 | % | 37.8 | % | 36.2 | % | |||||||||||||
| Net income | $ | 89,496 | $ | 65,119 | 37.4 | % | $ | 537,126 | $ | 468,173 | 14.7 | % | |||||||||
| Intangible asset amortization | 12,390 | 14,496 | 49,529 | 59,422 | |||||||||||||||||
| Massachusetts sales tax dispute | 40,121 | 4,988 | 39,727 | 5,185 | |||||||||||||||||
| Restructuring / severance | (816 | ) | 14,493 | 4,113 | 16,520 | ||||||||||||||||
| Asset impairment(1) | 2,556 | 16,251 | 2,531 | 16,893 | |||||||||||||||||
| Business acquisition / integration costs(2) | 342 | 165 | 650 | 5,845 | |||||||||||||||||
| Income tax items | — | 1,713 | 1,397 | (2,316 | ) | ||||||||||||||||
| Adjusted net income(4) | $ | 144,089 | $ | 117,225 | 22.9 | % | $ | 635,073 | $ | 569,722 | 11.5 | % | |||||||||
| Net income | 89,496 | 65,119 | 37.4 | % | 537,126 | 468,173 | 14.7 | % | |||||||||||||
| Interest expense | 15,547 | 16,691 | 65,778 | 66,319 | |||||||||||||||||
| Income taxes | 27,634 | 42,190 | 114,377 | 115,781 | |||||||||||||||||
| Depreciation and amortization expense | 34,032 | 26,703 | 125,187 | 105,384 | |||||||||||||||||
| EBITDA | $ | 166,709 | $ | 150,703 | 10.6 | % | $ | 842,468 | $ | 755,657 | 11.5 | % | |||||||||
| Non-recurring non-cash expenses(5) | 3,785 | 20,504 | $ | 5,070 | $ | 20,963 | |||||||||||||||
| Adjusted EBITDA | $ | 170,494 | $ | 171,207 | (0.4 | )% | $ | 847,538 | $ | 776,620 | 9.1 | % | |||||||||
| Diluted EPS | $ | 2.32 | $ | 1.68 | 38.1 | % | $ | 13.91 | $ | 12.04 | 15.5 | % | |||||||||
| Intangible asset amortization | 0.32 | 0.38 | 1.27 | 1.53 | |||||||||||||||||
| Massachusetts sales tax dispute | 1.04 | 0.13 | 1.03 | 0.13 | |||||||||||||||||
| Restructuring / severance | (0.02 | ) | 0.37 | 0.11 | 0.43 | ||||||||||||||||
| Asset impairment(1) | 0.07 | 0.42 | 0.07 | 0.43 | |||||||||||||||||
| Business acquisition / integration costs(2) | 0.01 | 0.00 | 0.02 | 0.15 | |||||||||||||||||
| Income tax items | — | 0.04 | 0.04 | (0.06 | ) | ||||||||||||||||
| Adjusted Diluted EPS(4) | $ | 3.74 | $ | 3.02 | 23.8 | % | $ | 16.45 | $ | 14.65 | 12.3 | % | |||||||||
| Weighted average common shares (Diluted) | 38,517 | 38,784 | 38,618 | 38,898 | |||||||||||||||||
(1) The asset impairment primarily relates to impairment charges of lease right-of-use assets and property, equipment and leasehold improvements associated with vacating certain leased office space.
(2) Fiscal 2024 related to certain business acquisition costs and fiscal 2023 related to integration costs from the CGS acquisition.
(3) Adjusted operating margin is calculated as Adjusted operating income divided by Revenues.
(4) For purposes of calculating Adjusted net income and Adjusted diluted EPS, all adjustments for the three months ended August 31, 2024 and August 31, 2023 were taxed at an adjusted tax rate of
(5) Primarily related to asset impairments.
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 | Twelve Months Ended | |||||||||||||||||||
| August 31, | August 31, | ||||||||||||||||||||
| (In thousands) | 2024 | 2023 | Change | 2024 | 2023 | Change | |||||||||||||||
| Net Cash Provided for Operating Activities | $ | 163,161 | $ | 175,911 | $ | 700,338 | $ | 645,573 | |||||||||||||
| Less: purchases of property, equipment, leasehold improvements and capitalized internal-use software | (25,959 | ) | (19,606 | ) | (85,681 | ) | (60,786 | ) | |||||||||||||
| Free Cash Flow | $ | 137,202 | $ | 156,305 | (12.2 | )% | $ | 614,657 | $ | 584,787 | 5.1 | % | |||||||||
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 twelve months and the effects of foreign currency movements.
The numbers below do not include professional services or issuer fees.
| Q4'24 | Q3'24 | Q2'24 | Q1'24 | Q4'23 | Q3'23 | Q2'23 | Q1'23 | |
| % 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 plus professional services.
(Details may not sum to total due to rounding)
| (In millions) | As of August 31, 2024 | ||
| As reported ASV plus Professional Services (a) | $ | 2,276.0 | |
| Currency impact (b) | (3.2 | ) | |
| Organic ASV plus Professional Services | $ | 2,272.8 | |
| Organic ASV plus Professional Services growth rate | 4.8 | % | |
(a) Includes
(b) The impact of foreign currency movements.
FAQ
What were FactSet's Q4 2024 GAAP revenues?
How much did FactSet's GAAP diluted EPS increase in Q4 2024?
What is FactSet's fiscal 2025 guidance for GAAP revenues?
What charge did FactSet record in Q4 2024?
How much did FactSet's adjusted diluted EPS grow in Q4 2024?
What was FactSet's full-year 2024 GAAP revenue increase?
Did FactSet increase its quarterly cash dividend in 2024?
