Slide 1: FactSet Earnings Call Second Quarter Fiscal 2022
THURSDAY, MARCH 24, 2022 FactSet Earnings Call Second Quarter Fiscal 2022 Copyright © 2021 2022 FactSet Research Systems Inc. All rights reserved. Confidential: Do not forward.
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 forecast in such forward-looking statements.
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. 3
Slide 4: Business Update
Business Update Copyright © 2022 FactSet Research Systems Inc. All rights reserved. Confidential: Do not forward.
Slide 5: Key Metrics - Second Quarter 2022
Key Metrics - Second Quarter 2022 9.4% 33.7% $3.27 1 2 2 ORGANIC ASV + ADJUSTED ADJUSTED PROFESSIONAL + OPERATING + DILUTED SERVICES MARGIN EPS Driven by improved sales of 100 basis points higher YoY 20% increase YoY from analytics and research & due to lower compensation higher revenues, margin adv
Slide 6: Purpose: Drive the Investment Community to See More, Think Bigger, and Do Its Best Work
Purpose: Drive the Investment Community to See More, Think Bigger, and Do Its Best Work Client Obsession: Provide open, flexible, adaptive, solutions as part of our open ecosystem with hyper- personalized digital products to provide the next best action across the investment lifecycle Client Obsessi
Slide 7: Welcome CUSIP Global Services
Welcome CUSIP Global Services Copyright © 2022 FactSet Research Systems Inc. All rights reserved. Confidential: Do not forward.
Slide 8: ASV + Professional Services Growth Rates – By Global Segments
ASV + Professional Services Growth Rates* – By Global Segments $1.7B Organic ASV + Professional Services + 9% $460M $181M $453M $176M EMEA ASIAPAC EMEA $596M $600M $24M +8% +14% +7% +14% ANALYTICS ANALYTICS Pro Svcs $813M RESEARCH -3% +6% $1,048M $1,079M +6% AMERICAS AMERICAS $218M $181M CTS WEALTH
Slide 9: Financial Overview
Financial Overview Copyright © 2022 FactSet Research Systems Inc. All rights reserved. Confidential: Do not forward.
Slide 10: Second Quarter 2022 Financial Results
Second Quarter 2022 Financial Results* (in thousands, except per share data) 10.0 % 9.9 % 6.2 % 13.5 % 100bps 110bps Revenues Organic Revenues Operating Income Adjusted Operating Operating Margin Adjusted Operating 2/28/22 $431,119 2/28/22 $430,763 2/28/22 $123,348 Income 2/28/22 28.6% Margin 2/28/2
Slide 11: Key Operational Metrics
Key Operational Metrics >95 % 171,341 ASV RETENTION USER COUNT ASV retained from clients over the last twelve Number of individuals accessing FactSet’s months. solutions. No change versus 2021 | Q2 12% change since 2021 | Q2 92% CLIENT RETENTION 7,172 CLIENT COUNT Percentage of clients retained over
Slide 12: Returning Capital to Shareholders
Returning Capital to Shareholders (in millions except share price) $344.41 $330.26 $197.06 $270.10 $162.62 $241.08 $261 $304 $220 $201 $265 $169 $100 $110 $118 $121 $81 $89 '17 '18 '19 '20 '21 Q2 '22 LTM Cash Dividends Share Repurchases Avg. Share Price * Includes shares repurchased from employee st
Slide 13: Our Updated Guidance Reflects 8% - 9% Higher ASV Growth and Expanded Margin
Our Updated Guidance Reflects 8% - 9% Higher ASV1 Growth and Expanded Margin 2 Fiscal 2022 Outlook Fiscal 2022 Outlook As of March 24, 20223 As of September 28, 20212 Organic ASV + Professional Services $130 - $150 million $105 - $135 million Growth4 Revenues5 $1,800 - $1,830 million $1,705 - $1,720
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: Non-GAAP Reconciliations: Organic Revenues
Non-GAAP Reconciliations Organic Revenues (in thousands) FOR THE THREE MONTHS ENDED FEBRUARY 28 (Unaudited) 2022 2021 % Change Revenues $431,119 $ 391,788 10.0% Deferred Revenues Fair Value Adjustment (62) 181 Acquired Revenues (1,883) -- Currency Impact 1,589 -- Organic Revenues $430,763 $ 391,969
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 FEBRUARY 28 (Unaudited) 2022 2021 % Change Operating Income $123,348 $116,133 6.2% Intangible Asset Amortization 6,291 5,914 Deferred Revenues Fair Value Adjustment
Slide 18: Non-GAAP Reconciliations: EBITDA
Non-GAAP Reconciliations EBITDA (in thousands) FOR THE THREE MONTHS ENDED FEBURARY 28 (Unaudited) 2022 2021 % Change Net Income $109,938 $ 96,643 13.8% Interest Expense, net 1,673 1,815 Income taxes 12,018 18,023 Depreciation and amortization expense 13,395 15,672 Non-recurring non-cash expenses 9,7
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 FEBRUARY 28 (Unaudited) 2022 2021 % Change Diluted Earnings per Common Share $2.84 $2.50 13.6% Intangible Asset Amortization 0.14 0.13 Deferred Revenues Fair Value Adjustment 0.00 0.00 Tran
Slide 20: Non-GAAP Reconciliations: Free Cash Flow
Non-GAAP Reconciliations Free Cash Flow (in thousands) FOR THE THREE MONTHS ENDED FEBRUARY 28 (Unaudited) 2022 2021 % Change Net Cash Provided by Operating Activities $122,034 $ 140,659 Capital Expenditures (11,963) (10,425) Free Cash Flow $110,071 $ 130,234 (15.5)% Copyright © 2022 FactSet Research
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 2022 (Full Year) Low End of Range High End of Range Revenues $1,800 $1,830 Operating Income $ 459 $485 Operating Margin 25.5% 26.5% Intangible Asset Amortization 26 26 Transformation Co
Slide 22: Non-GAAP Reconciliations: Business Outlook Diluted EPS
Non-GAAP Reconciliations Business Outlook Diluted EPS (in millions, except per share data) Fiscal 2022 (Full Year) Low End of Range High End of Range Diluted Earnings per Common Share $ 9.75 $ 10.15 Intangible Asset Amortization 0.58 0.58 Transformation Costs 0.11 0.11 Real Estate Charges 1.26 1.26
Slide 23: Thank you
Thank you Copyright © 2022 FactSet Research Systems Inc. All rights reserved. Confidential: Do not forward.