Factset Research Systems Inc. · NYSE:FDS

Factset Research Systems — Q3 2023 Earnings Presentation

23 slides from Factset Research Systems's earnings presentation, Jun 22, 2023

  1. Slide 1: FactSet Earnings Call Third Quarter Fiscal 2023

    THURSDAY, JUNE 22, 2023 FactSet Earnings Call Third Quarter Fiscal 2023 Copyright © 2023 2022 FactSet Research Systems Inc. All rights reserved. FactSet Confidential: Business Do not Useforward. Only

  2. 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

  3. Slide 3: Agenda

    Agenda • Welcome • Business Update • Financial Overview • Questions and Answers • Appendix Copyright © 2023 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only 3

  4. Slide 4: Business Update

    Business Update Copyright © 2022 FactSet Research Systems Inc. All rights reserved. Confidential: Do not forward.

  5. Slide 5: Key Metrics - Third Quarter 2023

    Key Metrics - Third Quarter 2023 1 2 2 8.0% 36.0% $3.79 ORGANIC ASV + ADJUSTED ADJUSTED PROFESSIONAL SERVICES + OPERATING + DILUTED GROWTH MARGIN EPS Driven by the strength of our 60 bps lower YoY driven by 0.8% increase YoY due to recurring sales model and higher personnel costs & higher revenues a

  6. 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

  7. Slide 7: ASV + Professional Services Growth Rates by Global Segments

    ASV + Professional Services Growth Rates* – By Global Segments $2.1B Organic ASV + Professional Services +8.0% $541M $211M $176M EMEA ASIAPAC $24M +7.4% +10.5% +14% Pro Svcs RESEARCH -0.60% $1,345M +6% AMERICAS +8.0% +16% +12% * LTM Organic ASV Growth Rate based on last twelve months as of May 31, 2

  8. Slide 8: Financial Overview

    Financial Overview Copyright © 2022 FactSet Research Systems Inc. All rights reserved. Confidential: Do not forward.

  9. Slide 9: Third Quarter 2023 Financial Results

    Third Quarter 2023 Financial Results* (in thousands, except per share data) 8.4% 8.5% 76.8% 6.6% 1,260bps (60)bps Revenues Organic Revenues Operating Income Adjusted Operating Operating Margin Adjusted Operating 5/31/23 $529,811 5/31/23 $530,321 5/31/23 $171,959 Income 5/31/23 32.5% Margin 5/31/22 $

  10. Slide 10: Key Operational Metrics

    Key Operational Metrics >95% 187,845 ASV RETENTION USER COUNT ASV retained from clients over the last twelve Number of individuals accessing FactSet’s months. solutions. No change versus 2022 | Q3 8% change since 2022 | Q3 92% 7,770 CLIENT RETENTION CLIENT COUNT Percentage of clients retained over t

  11. Slide 11: We remain focused on returning capital to shareholders

    We remain focused on returning capital to shareholders FactSet resumed share repurchases in the third fiscal quarter of 2023 (in millions except share price) $403.44 $404.29 $330.26 $270.10 $241.08 $197.06 $162.62 $304 $220 $201 $265 $19 $67 $261 $110 $118 $126 $135 $81 $89 $100 '17 '18 '19 '20 '21

  12. Slide 12: Updated FY23 guidance

    Updated FY23 guidance: Increases in adjusted margin and adjusted EPS, with lower end of guidance range for revenue and ASV FISCAL 2023 OUTLOOK FISCAL 2023 OUTLOOK As of June 22, 2023 As of September 22, 2022 Organic ASV + Professional Services Growth1 $145 - $175 million2 $150 - $180 million Revenue

  13. Slide 13: Questions & Answers

    Questions & Answers Copyright © 2022 FactSet Research Systems Inc. All rights reserved. Confidential: Do not forward.

  14. Slide 14: Appendix

    Appendix Copyright © 2022 FactSet Research Systems Inc. All rights reserved. Confidential: Do not forward.

  15. Slide 15: Third Quarter 2023 Adjusted Operating Income Walk

    Third Quarter 2023 Adjusted Operating Income Walk US$ millions 530 225 25 42 19 28 191 Revenue People Third Party Technology Real Estate Other Adjusted Content Operating Income Figures as of May 31, 2023 Copyright © 2023 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only 15

  16. Slide 16: Non-GAAP Reconciliations: Organic Revenues

    Non-GAAP Reconciliations Organic Revenues (in thousands) FOR THE THREE MONTHS ENDED MAY 31 (Unaudited) 2023 2022 % Change GAAP Revenues $529,811 $488,751 8.4% Deferred Revenues Fair Value Adjustment 0 1 Adjusted Revenues $529,811 $488,752 8.4% Acquired Revenues 0 0 Currency Impact 510 0 Organic Reve

  17. Slide 17: 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 MAY 31 2023 (Unaudited) 2023 2022 % Change GAAP Operating Income $171,959 $97,254 76.8% Deferred Revenues Fair Value Adjustment 0 1 Intangible Asset Amortization 17

  18. Slide 18: Non-GAAP Reconciliations: Adjusted EBITDA

    Non-GAAP Reconciliations Adjusted EBITDA (in thousands) FOR THE THREE MONTHS ENDED MAY 31 (Unaudited) 2023 2022 % Change Net Income $134,663 $74,910 79.8% Interest Expense, net 16,354 16,184 Income taxes 27,335 10,370 Depreciation and amortization expense 26,473 27,349 EBITDA $204,825 $128,813 59.0%

  19. Slide 19: Non-GAAP Reconciliations: Adjusted Diluted EPS

    Non-GAAP Reconciliations Adjusted Diluted EPS (in thousands, except per share data) FOR THE THREE MONTHS ENDED MAY 31 (Unaudited) 2023 2022 % Change GAAP Diluted Earnings per Common Share $3.46 $1.93 79.3% Intangible Asset Amortization 0.36 0.42 Deferred Revenues Fair Value Adjustment 0.00 0.00 Tran

  20. Slide 20: Non-GAAP Reconciliations: Free Cash Flow

    Non-GAAP Reconciliations Free Cash Flow (in thousands) FOR THE THREE MONTHS ENDED MAY 31 (Unaudited) 2023 2022 % Change Net Cash Provided by Operating Activities $218,589 $191,972 Capital Expenditures (26,005) (15,404) Free Cash Flow $192,584 $176,568 9.1% Copyright © 2023 FactSet Research Systems I

  21. Slide 21: 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 (Forward Looking) Low End of Range High End of Range Revenues $2,080 $2,100 Operating Income $603 $630 Operating Margin 29.0% 30.0% Intangible Asset Amortization 71 71 Restructurin

  22. Slide 22: Non-GAAP Reconciliations: Business Outlook Adjusted Diluted EPS

    Non-GAAP Reconciliations Business Outlook Adjusted Diluted EPS (In Millions Except Per Share Data) Low-end of range High-end of range ($ in thousands) Diluted earnings per common share $12.25 $12.65 Intangible asset amortization 1.55 1.57 Restructuring / severance 0.58 0.51 Real estate charges 0.39

  23. Slide 23: Thank you

    Thank you Copyright © 2022 FactSet Research Systems Inc. All rights reserved. Confidential: Do not forward.

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