Slide 1: FactSet Earnings Call First Quarter Fiscal 2023
TUESDAY, DECEMBER 20, 2022 FactSet Earnings Call First Quarter Fiscal 2023 Copyright © 2022 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only
Slide 2: Forward-Looking Statements and Non-GAAP Measures
Forward-Looking Statements and Non-GAAP Measures This presentation, and other statements that FactSet may make in connection with this presentation, contains forward-looking statements based on management's current expectations, assumptions, estimates, forecasts and projections about future events a
Slide 3: Agenda
Agenda • Welcome • Business Update • Financial Overview • Questions and Answers • Appendix Copyright © 2022 FactSet Research Systems Inc. All rights reserved. Confidential: Do not forward. Copyright © 2022 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only 3
Slide 4: Business Update
Business Update Copyright © 2022 FactSet Research Systems Inc. All rights reserved. Confidential: Do not forward.
Slide 5: Key Metrics - First Quarter 2023
Key Metrics - First Quarter 2023 8.8% 38.3% $3.99 1 2 2 ORGANIC ASV + ADJUSTED ADJUSTED PROFESSIONAL SERVICES + OPERATING + DILUTED GROWTH MARGIN EPS Driven by higher sales of 471 basis points higher YoY 22.8% increase YoY from Analytics & Trading and due to higher revenue, lower higher revenues and
Slide 6: We continued to deliver on our strategy
We continued to deliver on our strategy: to build the leading open content and analytics platform that delivers differentiated advantage for our clients’ success Next Scale Up Generation Client Our Content Workflow Obsession Refinery Solutions Provide the most comprehensive Build differentiated next
Slide 7: ASV + Professional Services Growth Rates – By Global Segments
ASV + Professional Services Growth Rates* – By Global Segments $1.8B Organic ASV + Professional Services + 8.8% $487M $190M EMEA ASIAPAC +9% +11% $23M PRO SVCS -4% $1,147M AMERICAS +9% * LTM Organic ASV Growth Rate based on last twelve months as of November 30, 2022 Copyright © 2022 FactSet Research
Slide 8: Financial Overview
Financial Overview Copyright © 2022 FactSet Research Systems Inc. All rights reserved. Confidential: Do not forward.
Slide 9: First Quarter 2023 Financial Results
First Quarter 2023 Financial Results* (in thousands, except per share data) 18.9% 8.3% 40.1% 35.5% 517bps 471bps Revenues Organic Revenues Operating Income Adjusted Operating Operating Margin Adjusted Operating 11/30/22 $504,815 11/30/22 $459,860 11/30/22 $171,895 Income 11/30/22 34.1% Margin 11/30/
Slide 10: Key Items
Key Items Total first fiscal quarter ASV was $168 million, adding $3 million in incremental ASV. We expect continued growth CUSIP Global Services in mid to high single digits. Interest Expense for the first fiscal quarter was $16 million, with an expectation of $66 million in interest expense Intere
Slide 11: Key Operational Metrics
Key Operational Metrics >95% 180,959 ASV RETENTION USER COUNT ASV retained from clients over the last twelve Number of individuals accessing FactSet’s months. solutions. No change versus 2022 | Q1 12% change since 2022 | Q1 92% 7,631 CLIENT RETENTION CLIENT COUNT Percentage of clients retained over
Slide 12: Returning Capital to Shareholders
Returning Capital to Shareholders (in millions except share price) $403.44 $330.26 $270.10 $241.08 $197.06 $162.62 $304 $220 $201 $265 $19 $261 $110 $118 $126 $129 $81 $89 $100 '17 '18 '19 '20 '21 '22 Q1 '23 LTM Cash Dividends Share Repurchases Avg. Share Price * Includes shares repurchased from emp
Slide 13: We reaffirm fiscal 2023 guidance of 8% - 10% ASV growth and expanded margin
We reaffirm fiscal 2023 guidance of 8% - 10% ASV1 growth and expanded margin FISCAL 2023 OUTLOOK As of September 22, 2022 Organic ASV + Professional Services Growth1 $150 - $180 million Revenues $2,100 - $2,115 million Operating Margin 30% - 31% Adjusted Operating Margin 34% - 35% Effective Tax Rate
Slide 14: Questions & Answers
Questions & Answers Copyright © 2022 FactSet Research Systems Inc. All rights reserved. Confidential: Do not forward.
Slide 15: Appendix
Appendix Copyright © 2022 FactSet Research Systems Inc. All rights reserved. Confidential: Do not forward.
Slide 16: First Quarter 2023 Adjusted Operating Income Walk
First Quarter 2023 Adjusted Operating Income Walk US$ millions 505 204 23 37 17 29 193 Revenue People Third Party Technology Real Estate Other Adjusted Content Operating Income *As of November 30, 2022 Copyright © 2022 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only 16
Slide 17: Non-GAAP Reconciliations: Organic Revenues
Non-GAAP Reconciliations Organic Revenues (in thousands) FOR THE THREE MONTHS ENDED NOVEMBER 30 (Unaudited) 2023 2022 % Change GAAP Revenues $504,815 $424,725 18.9% Deferred Revenues Fair Value Adjustment — 86 Adjusted Revenues $504,815 $424,811 18.8% Acquired Revenues (48,455) — Currency Impact 3,5
Slide 18: Non-GAAP Reconciliations: Adjusted Operating Income, Margin, Net Income
Non-GAAP Reconciliations Adjusted Operating Income, Margin, Net Income (in thousands, except per share data) FOR THE THREE MONTHS ENDED NOVEMBER 30 (Unaudited) 2023 2022 % Change GAAP GAAP Operating Income $171,895 $122,661 40.1% Deferred Revenues Fair Value Adjustment — 86 Intangible Asset Amortiza
Slide 19: Non-GAAP Reconciliations: Adjusted EBITDA
Non-GAAP Reconciliations Adjusted EBITDA (in thousands) FOR THE THREE MONTHS ENDED NOVEMBER 30 (Unaudited) 2023 2022 % Change Net Income $136,798 $107,647 27.1% Interest Expense, net 16,537 1,972 Income taxes 21,087 12,283 Depreciation and amortization expense 25,997 19,432 EBITDA $200,419 $141,334
Slide 20: Non-GAAP Reconciliations: Adjusted Diluted EPS
Non-GAAP Reconciliations Adjusted Diluted EPS (in thousands, except per share data) FOR THE THREE MONTHS ENDED NOVEMBER 30 (Unaudited) 2023 2022 % Change GAAP Diluted Earnings per Common Share $3.52 $2.79 26.2% Deferred Revenues Fair Value Adjustment 0.00 0.00 Intangible Asset Amortization 0.40 0.14
Slide 21: Non-GAAP Reconciliations: Free Cash Flow
Non-GAAP Reconciliations Free Cash Flow (in thousands) FOR THE THREE MONTHS ENDED NOVEMBER 30 (Unaudited) 2023 2022 % Change Net Cash Provided by Operating Activities $106,636 $72,918 Capital Expenditures (17,960) (8,583) Free Cash Flow $88,676 $64,335 37.8% Copyright © 2022 FactSet Research Systems
Slide 22: Non-GAAP Reconciliations: Business Outlook Operating Margin, Net Income
Non-GAAP Reconciliations Business Outlook Operating Margin, Net Income (in millions, except per share data) Fiscal 2023 (Full Year) Low End of Range High End of Range Revenues $2,100 $2,115 Operating Income $630 $656 Operating Margin 30.0% 31.0% Intangible Asset Amortization 73 73 Business Acquisiti
Slide 23: Non-GAAP Reconciliations: Business Outlook Diluted EPS
Non-GAAP Reconciliations Business Outlook Diluted EPS (in millions, except per share data) Fiscal 2023 (Full Year) Low End of Range High End of Range Diluted Earnings per Common Share $12.70 $13.10 Intangible Asset Amortization 1.64 1.62 Integration Costs 0.23 0.24 Discrete Tax Items (0.07) (0.06) A
Slide 24: Thank you
Thank you Copyright © 2022 FactSet Research Systems Inc. All rights reserved. Confidential: Do not forward.