Factset Research Systems Inc. · NYSE:FDS

Factset Research Systems — Q2 2020 Earnings Presentation

19 slides from Factset Research Systems's earnings presentation, Mar 26, 2020

Slide 2: Forward-Looking Statements and Non-GAAP Measures
Forward-Looking Statements and Non-GAAP Measures This presentation may contain forward looking statements reflecting management’s current expectations based on currently available information. Actual results may differ materially from what is expressed or forecasted in such forward-looking statement
Slide 5: Organic ASV + Professional Services – Second Quarter 2020
Organic ASV + Professional Services – Second Quarter 2020 By Region $24M PROF SVCS $146M Growth rate: 12% APAC Growth rate: 7% O R G A N I C G R O W T H R AT E 4 . 3 % $408M EMEA Growth rate: 3% = $1.50B $926M T O T A L A S V + P R O F S V C S AMERICAS Growth rate: 4% * LTM Organic ASV Growth Rate i
Slide 6: Key Metrics - Second Quarter 2020
Key Metrics1 - Second Quarter 2020 ORGANIC ASV2 + ADJUSTED PROFESSIONAL OPERATING ADJUSTED SERVICES MARGIN DILUTED EPS + + 4.3% 31.8% $2.55 Driven by higher sales from 140 basis points lower 5.4% growth YoY from Analytics, Wealth and Americas YoY due to investment lower tax rate Pricing plan spend 1
Slide 7: Progress in Areas of Accelerated Investment
Progress in Areas of Accelerated Investment Deep Sector – Launched insurance industry data CONTENT Wealth – StreetAccount coverage in Canada, Fund data expansion Private markets – Industry experts hired, Integrated new third party data APIs – Additional APIs launched. Beta clients with positive feed
Slide 9: Second Quarter 2020 Financial Results
Second Quarter 2020 Financial Results* (in thousands, except per share data) For the Three Months Ended FEB 29, 2020 FEB 28, 2019 % Change GAAP Revenues $369,780 $ 354,895 4.2% Organic Revenues $370,988 $ 356,194 4.2% Operating Income $106,257 $ 108,688 (2.2)% Adjusted Operating Income $117,922 $ 11
Slide 10: Key Operational Metrics
Key Operational Metrics >95% 128,896 ASV RETENTION USER COUNT ASV retained from clients Number of individuals over the last twelve months. accessing FactSet’s workstations. No change versus 2019 | Q2 5.6% change since 2019 | Q2 89% 5,688 CLIENT RETENTION CLIENT COUNT Percentage of clients retained C
Slide 11: Returning Capital to Shareholders
Returning Capital to Shareholders (in millions) $500 $400 $300 $357 $304 $200 $261 $220 $256 $160 $100 $81 $89 $100 $67 $74 $54 $- '15 '16 '17 '18 '19 YTD'20 Cash Dividends Share Repurchases * * Includes shares repurchased from employee stock options Copyright © 2020 FactSet Research Systems Inc. Al
Slide 12: Business Outlook – Fiscal 2020
Business Outlook – Fiscal 20201 Guidance Organic ASV + Professional Services Growth2 $50 - $75 million (revised) GAAP Revenues $1.49 - $1.50 billion GAAP Operating Margin 28.5% - 29.5% Adjusted Operating Margin3 31.5% - 32.5% Effective Tax Rate 17.0% - 17.5% GAAP Diluted EPS $8.70 - $9.00 Adjusted D
Slide 15: Non-GAAP Reconciliations: Organic Revenues
Non-GAAP Reconciliations Organic Revenues (in thousands) FOR THE THREE MONTHS ENDED (Unaudited) FEBRUARY 29, 2020 FEBRUARY 28, 2019 % Change GAAP Revenues $369,780 $354,895 4.2% Deferred revenue fair value adjustment 1,188 1,299 Currency impact 20 – Organic Revenues $370,988 $356,194 4.2% Copyright
Slide 16: Non-GAAP Reconciliations: Adjusted Operating Income, Net Income, EPS
Non-GAAP Reconciliations Adjusted Operating Income, Margin, Net Income and Diluted EPS (in thousands, except per share data) FOR THE THREE MONTHS ENDED (Unaudited) FEBRUARY 29, 2020 FEBRUARY 28, 2019 % Change GAAP Operating Income $106,257 $ 108,688 (2.2)% Intangible asset amortization 5,143 5,839 D
Slide 17: Non-GAAP Reconciliations: Free Cash Flow
Non-GAAP Reconciliations Free Cash Flow (in thousands) FOR THE THREE MONTHS ENDED FEBRUARY 29, FEBRUARY 28, (Unaudited) % Change 2020 2019 Net Cash Provided by Operating Activities $ 99,669 $ 99,234 Capital Expenditures (25,119) (11,957) Free Cash Flow $ 74,550 $ 87,277 (14.6)% Copyright © 2020 Fact
Slide 18: Non-GAAP Reconciliations: Business Outlook
Non-GAAP Reconciliations Business Outlook Operating Margin, Net Income and Diluted EPS (in thousands, except per share data) FISCAL 2020 (FULL YEAR) Low End of Range High End of Range GAAP operating margin 28.5% 29.5% Intangible asset amortization 1.6% 1.6% Deferred revenue fair value adjustment 0.3

FactSet Research Systems — Q2 2020 Earnings Presentation on 6ix

Factset Research Systems — Q2 2020 Earnings Presentation

Slide 1: FactSet Earnings Call Second Quarter Fiscal 2020

Slide 2: Forward-Looking Statements and Non-GAAP Measures

Slide 3: Agenda

Slide 4: Business Update

Slide 5: Organic ASV + Professional Services – Second Quarter 2020

Slide 6: Key Metrics - Second Quarter 2020

Slide 7: Progress in Areas of Accelerated Investment

Slide 8: Financial Overview

Slide 9: Second Quarter 2020 Financial Results

Slide 10: Key Operational Metrics

Slide 11: Returning Capital to Shareholders

Slide 12: Business Outlook – Fiscal 2020

Slide 13: Questions & Answers

Slide 14: Appendix

Slide 15: Non-GAAP Reconciliations: Organic Revenues

Slide 16: Non-GAAP Reconciliations: Adjusted Operating Income, Net Income, EPS

Slide 17: Non-GAAP Reconciliations: Free Cash Flow

Slide 18: Non-GAAP Reconciliations: Business Outlook

Slide 19: Thank you.