Factset Research Systems Inc. · NYSE:FDS
Factset Research Systems — Investor Day (November 2024)
94 slides from Factset Research Systems's investor day presentation, Nov 14, 2024
Slide 1: Supercharging Financial Intelligence: FactSet Investor Day 2024
Investor Day 2024 | November 14, 2024 Supercharging Financial Intelligence FactSet Investor Day 2024
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 at Investor Day 2024, contains forward-looking statements based on management's current expectations, assumptions, estimates, forecasts and projections as of the date such statements are ma
Slide 3: Today's Agenda
Today’s Agenda 3Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only 8:30 AM Welcome + Agenda Yet He, Interim Head of Investor Relations 8:35 AM Supercharging Financial Intelligence Phil Snow, Chief Executive Officer 8:50 AM The Power of Our Data + Technology
Slide 4: Today's Presenters
Today’s Presenters Phil Snow Chief Executive Officer John Costigan Chief Data Officer Kristina Karnovsky Head of Dealmakers and Wealth Rob Robie Head of Institutional Buy-Side Helen Shan Chief Financial Officer Goran Skoko Chief Revenue Officer Kate Stepp Chief Technology Officer Kendra Brown Head o
Slide 5: Supercharging Financial Intelligence
Supercharging Financial Intelligence Phil Snow, Chief Executive Officer FactSet Investor Day 2024 01
Slide 6: FactSet at a Glance
Market-leading global, multi-asset class connected data FactSet at a Glance We are a strong, differentiated business… Deep competitive differentiation across firm types and workflows Trusted partner to the world’s largest financial institutions Open, flexible, and at the forefront of technological i
Slide 7: Track record of outperforming the market and steady growth
We have a track record of outperforming the market and delivering steady, sustainable growth to the top and bottom line FDS S&P 500 15.1% Annualized Total Shareholder Return $4.96 $16.4512.7% Adjusted Diluted EPS CAGR $920M $2.2B9.1% Revenue CAGR 7Copyright © 2024 FactSet Research Systems Inc. All r
Slide 8: Business increasingly diversified across geographies and firm types
Our business has evolved and is increasingly diversified across our geographic and firm-type end markets Americas Asia Pacific (APAC) Europe, Middle East and Africa (EMEA) 10% 65% 25% $2.3B (FY24) ASV by Geographic Segment1 ASV by Firm Type1 Institutional Buy-Side Wealth Dealmakers Partnerships & CG
Slide 9: Nearly quadrupled user count in ten years
We have nearly quadrupled our user count in the last ten years… 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 216K User Count ASV Driver1 …while also shifting our business mix to reduce headcount exposure 55K 9Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Busin
Slide 10: Differentiated solutions and market-leading franchises in all firm types
We have built differentiated solutions and market-leading franchises in all our firm type markets 10Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only Buy-Side Partners & CGSWealthDealmakers 95 of the Top 100 Asset Managers 30 Years powering banker workflow
Slide 11: Addressable market continues to grow
Our addressable market continues to grow as we add new solutions and services… $40B+ Total Addressable Market $2.3B FactSet Today (FY24)1 $28B Core Addressable Market Rise and increasing adoption of AI; CTOs and CDOs as key decision-makers Pressure to reduce total cost of ownership; outsourcing of n
Slide 12: Industry shifts in response to secular trends
As our industry also shifts in response to these secular trends… …we remain open, flexible, and ready to move fast and partner to win Growing presence of Big Tech in our industry Increasing focus on unstructured data Top-down selling of cost/vendor consolidation Investments in Private Markets capabi
Slide 13: Data + Technology Ecosystem
Our cutting-edge Data + Technology Ecosystem enables us to move quickly, partner effectively, and drive innovation for our clients Vast Connected Data Asset • Broad and deep coverage • 1,300+ TB of data managed • ~ 4x data items in the last five years Modern Data Pipeline • Single data model and SSO
Slide 14: AI Blueprint and Intelligent Platform
Guided by our AI Blueprint, we built an Intelligent Platform that powers discoverability, efficiency, and innovation… 14Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only Next-Generation Search Intelligence across structured and unstructured data FactSet Me
Slide 15: Mission to supercharge financial intelligence
Innovate across workflows to maintain and build leadership Maximize the value of our data and technology ecosystem Deliver value to our clients as their enterprise partner of choice Now, we are on a mission to supercharge financial intelligence 15Copyright © 2024 FactSet Research Systems Inc. All ri
Slide 16: The Power of Our Data + Technology Ecosystem
02 FactSet Investor Day 2024 Kate Stepp, Chief Technology Officer John Costigan, Chief Data Officer The Power of Our Data + Technology Ecosystem
Slide 17: Data + Technology Ecosystem
Our cutting-edge Data + Technology Ecosystem enables us to move quickly, partner effectively, and drive innovation for our clients Vast Connected Data Asset • Broad and deep coverage • 1,300+ TB of data managed • ~ 4x data items in the last five years Modern Data Pipeline • Single data model and SSO
Slide 18: Digital transformation to a single data model
18Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only FMA Historical Siloed Approach x Fragmented data management x Limited scalability x Higher cost of operations x Inefficiencies in data governance New, Unified Data Pipeline ✓ Single data model; single sou
Slide 19: Technical foundations to harness GenAI
19Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only Strong technical foundations to enable partnership with clients and harness the power of GenAI GenAI Development Lifecycle 1: DATA PREPARATION Vectorized Content FactSet’s added value for handling structu
Slide 20: Data + Technology Ecosystem
Our cutting-edge Data + Technology Ecosystem enables us to move quickly, partner effectively, and drive innovation for our clients Vast Connected Data Asset • Broad and deep coverage • 1,300+ TB of data managed • ~ 4x data items in the last five years Modern Data Pipeline • Single data model and SSO
Slide 21: Supercharging Wealth Workflows
FactSet Investor Day 2024 03 Kristina Karnovsky, Head of Dealmakers and Wealth Supercharging Wealth Workflows
Slide 22: Wealth: Key Highlights
Wealth: Key Highlights 22Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only Momentum with the Advisor “Grow the Business” Workflows “Run the Business” Workflows Opportunities Beyond the Desktop We have strong momentum with the advisor, the most important us
Slide 23: FactSet's Wealth Business Today
Key Characteristics FactSet’s Wealth Business Today: Firmly established on the advisor desktop and seeing early success expanding into adjacent workflows Wealth $315M ASV (FY24) Core Platforms & Products Data Solutions Portfolio Lifecycle (PLC) Solutions Institutional Buy-Side Dealmakers Partnership
Slide 24: Evolution of Our Wealth Business
24Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only Evolution of Our Wealth Business Today (FY24)~ 10 Years Ago (FY14) FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 100K+ Users (FY24) Marquee Wirehouse Top 5 Canadian Wealth Manager Leading Private
Slide 25: Why leading organizations rely on FactSet
25Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only Here’s why leading organizations rely on FactSet’s content, technology, and expertise to drive their success.
Slide 26: Wealth Growth Opportunities
Expand into Business Development Delivering AI-powered prospecting and proposal generation solutions to supercharge business development workflows 1 Leverage Core Products to Expand Footprint 26Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only Medium Term
Slide 27: Expand into Business Development
27Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only 1 Delivering AI-powered prospecting and proposal generation solutions to supercharge business development workflows Expand into Business Development Intelligent Prospecting Proposal Generation • Strategic
Slide 28: Client Case Study: Win More Home Office Users
28Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only 2 Client Case Study: Investing in multi-asset class workflows to replicate recent success and displace competitors for sophisticated user personas Win More Home Office Users Home Office Advisors Digital C
Slide 29: Leverage core products to expand footprint
29Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only 3 Building on FactSet’s strength on the advisor desktop to deliver analytics, AI, and data solutions across the enterprise Leverage Core Products to Expand Footprint Home Office Workflows Advisor Workflow
Slide 30: Wealth: Key Takeaways
30Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only Wealth: Key Takeaways 1 2 3 4 We have strong momentum with the advisor, the most important user persona for our Wealth Manager clients Expanding into adjacent “grow the business” workflows for the advisor
Slide 31: Supercharging Dealmakers Workflows
Supercharging Dealmakers Workflows FactSet Investor Day 2024 04 Kristina Karnovsky, Head of Dealmakers and Wealth
Slide 32: Dealmakers: Key Highlights
Dealmakers: Key Highlights 32Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only Deep, Enduring Client Relationships Next Gen Banker Efficiency Streamline Client Workflows Differentiated Intelligent Platform Multiple decades- long track record of partnering
Slide 33: FactSet's Dealmakers Business Today
Americas EMEA APAC 33Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only Key Characteristics FactSet’s Dealmakers Business Today: Leader in Banking with specialized workflows in Corporates and PE/VC Wealth $441M ASV (FY24) Core Platforms & Products Data Solu
Slide 34: Evolution of Our Banking Business
34Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only Evolution of Our Banking Business Today (FY24)~ 10 Years Ago (FY14) Leading desktop solution focused on delivering core content and productivity solutions to junior bankers Enterprise solutions partner to
Slide 35: Currently in a cyclical trough
33% 75% (43%) 23%9% 16% 4% 35Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only Currently in a cyclical trough with ASV growth historically correlated to the ebbs and flows of our clients’ business activity and industry fee pools 2016 2017 2018 2019 2020 20
Slide 36: Dealmakers Growth Opportunities
Growing Data Foundation for Intelligent Platform Streamline Client Workflows Next Gen Banker Efficiency 36Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only Medium Term Growth Opportunities Workflow efficiency + stickiness Depth + quality of data Solid clie
Slide 37: Pitch Creator: Next Gen Banker Efficiency
37Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only 1 Evolve the pitch creation process by automating standardized and repeated tasks and layering in GenAI to “remove the mundane” Next Gen Banker Efficiency How pitch decks are created today … • Typical ban
Slide 38: Streamline Client Workflows via Acquisition and Partnership
Investor Relations 38Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only 2 Expanding our capacity to service high-value client workflows across firm types via acquisition and partnership Streamline Client Workflows Portfolio Monitoring Firm Type(s): Corporat
Slide 39: Growing Data Foundation for Intelligent Platform
3 Unlocking the power of our growing data asset via our Intelligent Platform Growing Data Foundation for Intelligent Platform 39Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only The FactSet Intelligent Platform streamlines the research process by enabling
Slide 40: Dealmakers: Key Takeaways
40Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only Dealmakers: Key Takeaways 1 2 3 4 Deep, enduring client relationships with a multiple decades-long track record of partnering with clients to deliver value when and where our users need it Unlocking next
Slide 41: Supercharging Buy-Side Workflows
Supercharging Buy-Side Workflows FactSet Investor Day 2024 05 Rob Robie, Head of Institutional Buy-Side
Slide 42: Buy-Side: Key Highlights
Total Cost of Ownership Partner Complete Portfolio Lifecycle Full Multi Asset Class Platform Path to Accelerated Growth by helping clients with efficient and effective decision making across the Portfolio Lifecycle widens the differentiation around our Middle Office franchise and is a catalyst for F
Slide 43: FactSet's Buy-Side Business Today
Americas EMEA APAC 43Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only Key CharacteristicsGeographic Segment and Solution Mix1 FactSet’s Buy-Side Business Today: 95 of the top 100 Asset Managers are clients, with growth runway across Asset Owners and Hedge
Slide 44: Evolution of Our Buy-Side Business
1988 1997 2000 2002 2004 2006 2008 2010 2012 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 44Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only Evolution of Our Buy-Side Business Today (FY24)~ 10 Years Ago (FY14) Inorganic strategy to cement FactSe
Slide 45: Buy-Side Growth Opportunities
Accelerate Managed Services Deepen Multi Asset Class Capabilities Win the Front Office 45Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only Medium Term Growth Opportunities Best-in-class in Middle Office Portfolio integration Programmatic access Industry-le
Slide 46: Win the Front Office
Fully connected trade lifecycle Persona specific workflows Next level efficiency powered by GenAI Scalable and configurable to clients’ unique investment needs Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only 46 Research Analyst • Internal Research Notes
Slide 47: Deepen Multi Asset Class Capabilities
47Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only 2 Deepen Multi Asset Class Capabilities Replicate success and brand awareness in equity workflows by expanding further into private markets and enhancing fixed income insights • Bring high quality fixed i
Slide 48: Accelerate Managed Services
48Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only 3 Continue differentiating our middle office while helping clients control their total cost of ownership and pushing into non-data budgets Accelerate Managed Services Decades of Experience and Operational
Slide 49: Buy-Side: Key Takeaways
49Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only Buy-Side: Key Takeaways 1 2 3 4 Total cost of ownership partner by helping clients with efficient and effective decision making across the Portfolio Lifecycle Complete Portfolio Lifecycle widens the diffe
Slide 50: Commercial Data Strategy
Commercial Data Strategy FactSet Investor Day 2024 06 John Costigan, Chief Data Officer
Slide 51: Commercial Data Strategy: Key Highlights
One Unified, Global Data Team Well Positioned for the Age of GenAI Capturing Enterprise Workflows Elevating Solution Selling aligned on collection, integration and delivery to all end points across internal and external customers given our multi-year digital transformation and data platform moderniz
Slide 52: Data Solutions overview
52Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only 1. Relative mix in FY24 by geographic segment as of FactSet fiscal year end August 31 for Data Solutions offering and organization. 2. Relative mix in FY24 by firm type as of FactSet fiscal year end Augus
Slide 53: Data Solutions Growth Opportunities
53Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only Data Solutions Growth Opportunities: Powering client data workflows across the enterprise through engagement with the C-suite Flexible Data Delivery Sell Data Workflows, Not Feeds Reaching the Enterprise
Slide 54: Reaching the Enterprise: $5B+ opportunity
54Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only Real Time Market Data Pricing and Security Reference Benchmark and Indices Leveraging investments to meet client enterprise needs and displace competitors in a $5B+ addressable opportunity 1 Reaching the
Slide 55: Data as a Service and data workflows
55Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only Data as a Service (DaaS) Trading & Real-Time Application Development Pricing and Security Reference Data Science, Research & Quant • Standard Data: Global Prices, Fundamentals, Ownership, ETF • Premium Da
Slide 56: Client Case Study: Market Data-as-a-Service
56Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only Client Case Study: FactSet’s Market Data-as-a-Service transforms client’s legacy market data infrastructure with cloud scalability 2 Sell Data Workflows, Not Feeds Client’s Challenge FactSet’s Solution Th
Slide 57: Flexible Data Delivery
57Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only Meet clients where they are with easy-to-integrate, cloud-agnostic data solutions to accelerate value-add and achieve client objectives faster 3 Flexible Data Delivery BUILD BUY Portal Widget API Data Mod
Slide 58: Commercial Data Strategy: Key Takeaways
Commercial Data Strategy: Key Takeaways 1 2 3 4 One unified, global data team aligned on collection, integration and delivery to all end points across internal and external customers Well positioned for the age of GenAI given our multi-year digital transformation and data platform modernization jour
Slide 59: The Future of Client Centricity: Sales Strategy
The Future of Client Centricity: Sales Strategy FactSet Investor Day 2024 Goran Skoko, Chief Revenue Officer 07
Slide 60: Client Centricity: Key Highlights
Trusted Client Relationships Preferred Partner Proven Execution Multiple Growth Levers Reflected in our retention, satisfaction scores, and ability to grow both users and clients Deep knowledge of client workflows, a flexible platform, superior solutions, and high-touch service Average size of deals
Slide 61: Trusted, deep client relationships
Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only We are proud of our trusted, deep client relationships across the global financial community Americas APAC EMEA Established and diversified client base1 Note: Figures as of FactSet fiscal year end August 31
Slide 62: Drivers of ASV growth acceleration
Improved retention, execution on new solutions, and focus on enterprise sales to drive ASV growth to MSD/HSD MSD to HSD • Focus on Renewals • Customer Success Technology and Tooling • Role Specialization Drivers of ASV Growth Acceleration • Managed Services and DaaS • New GenAI offerings in Banking,
Slide 63: Why We Win Today
Why We Win Today • Workflow knowledge • Flexibility on delivery • Open platform • End-to-end solutions • Targeted pricing/packaging • Best-in-class service and support • Speed and stability Institutional Buy-Side Dealmakers Wealth Partners & CGS 63Copyright © 2024 FactSet Research Systems Inc. All r
Slide 64: Recent proof points in enterprise selling
64Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only Recent proof points of our success in enterprise selling Premier OCIO Marquee Wirehouse • Landmark win displacing our primary competitor in wealth • Enterprise deployment of Workstations, market data and
Slide 65: Boosting retention through technology and people
65Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only Boosting retention by transforming our client-facing organization through technological investment and investment in our people Note: Figures as of FactSet fiscal year end August 31. • Focus on retention
Slide 66: Selling new product offerings
66Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only Executing on sales of new product offerings to drive increased new business and same-store sales Sell New Solutions Institutional Buy-Side Dealmakers Wealth Partners & CGS • Middle Office Managed Services
Slide 67: Levers for value capture
Extension of the Workflow Roll out FactSet’s AI-driven solutions, including Pitch Creator, Conversational API, Portfolio Commentary, and FactSet Mercury, to drive greater expansion and value capture Tackle Erosion Programs focused on reducing erosion to drive significant impact on top-line growth St
Slide 68: Client Centricity: Key Takeaways
Client Centricity: Key Takeaways 1 2 3 4 Trusted client relationships reflected in our retention, satisfaction scores, and ability to grow both users and clients Preferred partner to our clients with deep knowledge of their workflows, a flexible platform, superior solutions, and high- touch service
Slide 69: The Future of Value Creation: Financials and Outlook
FactSet Investor Day 2024 08 Helen Shan, Chief Financial Officer The Future of Value Creation: Financials and Outlook
Slide 70: Financials and Outlook: Key Highlights
Consistent History of Growth High-Impact Performance Levers Targeted Investments Balanced Capital Allocation 1 2 3 4 Financials and Outlook: Key Highlights 70Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only
Slide 71: Consistent growth through all economic cycles
1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 71Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only Dot-Com Bubble 9/11 Brexit Great Recession Euro Debt Crisis Global Pandemic Supply Chain Disruption & Rising inflation • 44 conse
Slide 72: Revenue, operating income, EPS and free cash flow
$920 $2,203 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 $305 $833 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 $4.96 $16.45 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 $247 $615 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 Highly recurring, 99%+ subscription
Slide 73: ASV drivers and pricing strategy
73Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only ASV drivers evolve with changes in mix of solutions and pricing strategies Workstation-Based Portfolio Management Solutions Data Subscriptions ~ 30% ~ 25% ~ 45% Medium Term • Solutions and enterprise cont
Slide 74: Diversification in end markets and workforce
74Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only Diversification in end markets and workforce provides flexibility and increased productivity Geographic Footprint (FY24) 10% 70% 26% 11% 64% 19% Revenues Employees +6% +5% +4% (5%) +4% (2%) % YoY% YoY Ame
Slide 75: Investing in product and infrastructure
Short Term Medium Term Long Term Expected Payout Period Investing in product and infrastructure to help drive earnings growth Innovate across workflows to maintain and build leadership Maximize the value of our data and technology ecosystem Deliver value to our clients as their enterprise partner of
Slide 76: Technology spend growth and medium-term outlook
76Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only FY21 ~ $100M+ ~ $200M+~ 23% CAGR FY24 Data and Product Development Internal Systems Enterprise Hosting & Cloud Managed services Medium Term Outlook1,2 Upgrade Internal Systems to ensure speed, security, a
Slide 77: Operational discipline to fund investments and margin expansion
77Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only Medium Term Outlook1,2 Operational discipline should fund investments and margin expansion Leaner Operations Reduce growth rate in people and facilities • Automate and shift to lower cost locations • Upgr
Slide 78: Disciplined capital allocation framework
24% 6% 17% 12% 40% 78Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only Disciplined capital allocation framework drives value creation Sustained Organic Investment Return of Capital to Shareholders Disciplined Approach to M&A 1 2 3 Organic P&L Investment: a
Slide 79: Returning capital through dividends and repurchases
79Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only Returning shareholder capital through dividends and share repurchases Return of Capital to Shareholders ($M) $110 $118 $126 $139 $151 $200 $265 $19 $177 $235 FY20 FY21 FY22 FY23 FY24 $310 $383 $145 $315 $
Slide 80: Disciplined approach on M&A
Strategic Filters Financial Criteria • Expands addressable opportunity in adjacent market • Fills strategic gap in our existing solutions offering • Accelerates speed-to-market vs. internal development • Augments talent and adds domain knowledge or critical IP • Immediately accretive to ASV and reve
Slide 81: Strong balance sheet and flexible capital structure
81Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only Strong balance sheet and flexible capital structure Gross Leverage (Debt / LTM EBITDA) Capital Structure Management 1.1x 1.1x 3.2x 2.1x 1.6x FY20 FY21 FY22 FY23 FY24 Targeting to < 2.5x $1.4B+ available l
Slide 82: Organic ASV growth by firm type
Thriving through change: diversified portfolio ensures sustainable growth Note: Figures as of FactSet fiscal year end August 31. 1. Medium term outlook represents FactSet’s expectations as of November 14, 2024. Actual results may differ materially from expectations above. 2. Target average annual gr
Slide 83: Expected organic growth: FY25 guidance and medium-term outlook
Through deliberate investments and targeted execution, we expect to continue to deliver solid organic growth Historical (10-Year Average) FY25 Guidance Organic ASV Growth Adjusted Operating Margin Adjusted Diluted EPS Growth ~7% ~ 33.5% ~ 13% 4% – 6% 36% – 37% 2% – 6% Drivers • Expansion and Improve
Slide 84: Fiscal 2025 Outlook
FISCAL 2025 OUTLOOK As of November 14, 2024 Organic ASV Growth1 $90 - $140 million (~4% to ~6%) Revenues $2,285 - $2,305 million GAAP Operating Margin 32.5% - 33.5% Adjusted Operating Margin 36.0% - 37.0% GAAP Effective Tax Rate 17.0% - 18.0% GAAP Diluted EPS $15.10 - $15.70 Adjusted Diluted EPS $16
Slide 85: Financials and Outlook: Key Takeaways
Financials and Outlook: Key Takeaways 1 2 3 4 Multiple levers to accelerate growth: enterprise and bundled solutions, workflow value pricing, and operational efficiencies Smartly using capital for organic and acquired growth to drive shareholder returns Investment in GenAI, technology, and data to a
Slide 86: Q+A
Q+A FactSet Investor Day 2024 09
Slide 87: Closing Remarks
Closing Remarks Phil Snow, Chief Executive Officer FactSet Investor Day 2024 10
Slide 88: Investor Day 2024: Key Takeaways
Investor Day 2024: Key Takeaways 88Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only Our open, flexible data and technology ecosystem drives innovation and positions us for the future Building on our market- leading franchises, we are further differentiati
Slide 89: Appendix
Appendix
Slide 90: Non-GAAP Reconciliations: Adjusted Operating Income
Non-GAAP Reconciliations 90Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only Adjusted Operating Income, Margin, Net Income (in thousands, except for per share date) Note: Columns may not foot due to rounding FOR THE TWELVE MONTHS ENDED AUGUST 31 As Reporte
Slide 91: Non-GAAP Reconciliations: Adjusted Diluted EPS
Non-GAAP Reconciliations 91Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only Adjusted Diluted EPS (in thousands, except for per share date) Note: Columns may not foot due to rounding FOR THE TWELVE MONTHS ENDED AUGUST 31 2024 Diluted Earnings per Common Sh
Slide 92: Non-GAAP Reconciliations: Free Cash Flow
Non-GAAP Reconciliations 92Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only Free Cash Flow (in thousands) Note: Columns may not foot due to rounding (Unaudited) 2014 2024 Net Cash Provided by Operating Activities $265,023 $700,338 Capital Expenditures (17
Slide 93: Non-GAAP Reconciliations: Business Outlook Operating Margin
Non-GAAP Reconciliations 93Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only Business Outlook Operating Margin, Net Income (in millions, except per share data) Note: Columns may not foot due to rounding The Fiscal 2025 Outlook shown here is a forward-looki
Slide 94: Non-GAAP Reconciliations: Business Outlook Diluted EPS
Non-GAAP Reconciliations 94Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only Business Outlook Diluted EPS (in millions, except per share data) Fiscal 2025 (Forward Looking) Low End of Range High End of Range Diluted Earnings per Common Share $15.70 $15.10
Factset Research Systems — Investor Day (November 2024) on 6ix