Slide 1: FactSet Earnings Call
Thursday, March 21, 2024 FactSet Earnings Call Second Quarter Fiscal 2024 Copyright © 2024 2022 FactSet Research Systems Inc. All rights reserved. FactSet Confidential: Business Do not Useforward. 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 Copyright©©2024 2022FactSet FactSetResearch ResearchSystems SystemsInc. Inc.All Allrights rightsreserved. reserved.FactSet Business Confidential: Useforward. Do not Only
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 2024
Key Metrics - Second Quarter 2024 1 2 2 5.4% 38.3% $4.22 ORGANIC ASV + ADJUSTED ADJUSTED PROFESSIONAL SERVICES + OPERATING + DILUTED GROWTH MARGIN EPS Driven by the strength of Increased by ~130 bps YoY Increased by 11.1% YoY our recurring sales model. due to higher revenue, lower due to higher reve
Slide 6: Key Operational Metrics
Key Operational Metrics >95% 206,478 ASV RETENTION USER COUNT ASV retained from clients over the last twelve Number of individuals accessing FactSet’s months. solutions. No change versus 2023 | Q2 11% change since 2023 | Q2 90% CLIENT RETENTION 8,020 CLIENT COUNT Percentage of clients retained over
Slide 7: ASV + Professional Services Growth Rates – By Global Segments
ASV + Professional Services Growth Rates* – By Global Segments $2,209M Organic ASV + Professional Services 5.4% + $557M $216M $453M $176M EMEA ASIAPAC EMEA $596M $600M +5% +6% $20M +7% +14% ANALYTICS ANALYTICS Pro Svcs $813M RESEARCH (12)% +6% $1,048M $1,415M +6% AMERICAS AMERICAS $218M $181M CTS WE
Slide 8: 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 Industry leading analytics and middle office solutions d
Slide 9: Financial Overview
Financial Overview Copyright © 2022 FactSet Research Systems Inc. All rights reserved. Confidential: Do not forward.
Slide 10: Second Quarter 2024 Financial Results
Second Quarter 2024 Financial Results* (in thousands, except per share data) 6.0% 6.0% 7.5% 9.8% 47bps 130bps Revenues Organic Revenues Operating Income Adjusted Operating Operating Margin Adjusted Operating 2/29/24 $545,945 2/29/24 $546,130 2/29/24 $181,942 Income 2/29/24 33.3% Margin 2/28/23 $515,
Slide 11: We remain focused on returning capital to shareholders
We remain focused on returning capital to shareholders FactSet continued share repurchases in the second fiscal quarter of 2024 Figures in millions accept share price $450.46 $410.64 $403.44 $330.26 $270.10 $197.06 $241.08 $162.62 $177 $304 $220 $201 $265 $19 $261 $112 $118 $126 $139 $89 $100 $110 $
Slide 12: Fiscal 2024 Outlook
We currently anticipate finishing fiscal 2024 at the lower end of our guidance range for Organic ASV + Professional Services Growth and Revenues FISCAL 2024 OUTLOOK As of March 21, 2024 Organic ASV + Professional Services Growth1 $110 - $150 million Revenues $2,200 - $2,210 million Operating Margin
Slide 13: Questions & Answers
Questions & Answers Copyright © 2022 FactSet Research Systems Inc. All rights reserved. Confidential: Do not forward.
Slide 14: Appendix
Appendix Copyright © 2022 FactSet Research Systems Inc. All rights reserved. Confidential: Do not forward.
Slide 15: Second Quarter 2024 Adjusted Operating Income Walk
Second Quarter 2024 Adjusted Operating Income Walk US$ millions 546 219 26 46 17 30 209 Revenue People Third Party Technology Real Estate Other Adjusted Operating Content Income Figures as of February 29, 2024 Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use O
Slide 16: Optimizing capital structure to ensure flexibility
FACTSET Optimizing capital structure to ensure flexibility Gross Leverage (Debt / LTM EBITDA) Capital Structure Optimization + Investment grade ratings from Moody's (Baa3) and Fitch (BBB) + Credit agreement with $500 million revolver ($250 million drawn) and additional $750 million accordion feature
Slide 17: Executing our strategy through workflow solutions that leverage our content refinery
Executing our strategy through workflow solutions that leverage our content refinery ASV Split by Client, Geography, and Firm Type By Client Type1,2 By Geography1,2 By Firm Type1,3 Partnerships delivers solutions primarily to content providers, financial Partnerships exchanges, and rating agencies;
Slide 18: Non-GAAP Reconciliations
Non-GAAP Reconciliations Organic Revenues (in thousands) FOR THE THREE MONTHS ENDED FEBRUARY 29 AND 28 (Unaudited) 2024 2023 % Change GAAP Revenues $545,945 $515,085 6.0% Acquired Revenues (137) 0 Currency Impact 322 0 Organic Revenues $546,130 $515,085 6.0% Copyright©©2022 Copyright 2024FactSet Fac
Slide 19: Non-GAAP Reconciliations
Non-GAAP Reconciliations Adjusted Operating Income, Margin, Net Income (in thousands, except per share data) FOR THE THREE MONTHS ENDED FEBRUARY 29 AND 28 (Unaudited) 2024 2023 % Change GAAP Operating Income $181,942 $169,250 7.5% Intangible Asset Amortization 16,674 17,709 Restructuring /Severance
Slide 20: Non-GAAP Reconciliations
Non-GAAP Reconciliations Adjusted EBITDA (in thousands) FOR THE THREE MONTHS ENDED FEBRUARY 29 AND 28 (Unaudited) 2024 2023 % Change Net Income $140,940 $131,593 7.1% Interest Expense, net 16,599 16,737 Income taxes 27,705 25,169 Depreciation and amortization expense 31,582 26,211 EBITDA $216,826 $1
Slide 21: Non-GAAP Reconciliations
Non-GAAP Reconciliations Adjusted Diluted EPS (in thousands, except per share data) FOR THE THREE MONTHS ENDED FEBRUARY 29 AND 28 (Unaudited) 2024 2023 % Change GAAP Diluted Earnings per Common Share $3.65 $3.38 8.0% Intangible Asset Amortization 0.32 0.37 Restructuring / Severance 0.21 0.01 Busines
Slide 22: Non-GAAP Reconciliations
Non-GAAP Reconciliations Free Cash Flow (in thousands) FOR THE THREE MONTHS ENDED FEBRUARY 29 AND 28 (Unaudited) 2024 2023 % Change Net Cash Provided by Operating Activities $143,798 $164,678 Capital Expenditures (21,917) (17,456) Free Cash Flow $121,881 $147,222 (17.2)% Copyright Copyright©©2024 20
Slide 23: Non-GAAP Reconciliations
Non-GAAP Reconciliations Business Outlook Operating Margin, Net Income (in millions, except per share data) Fiscal 2024 (Forward Looking) Low End of Range High End of Range Revenues $2,200 $2,210 Operating Income $ 715 $729 Operating Margin 32.5% 33.0% Intangible Asset Amortization 84 82 Adjusted Op
Slide 24: Non-GAAP Reconciliations
Non-GAAP Reconciliations Business Outlook Diluted EPS (in millions, except per share data) Low End of Range High End of Range Diluted Earnings per Common Share $13.95 $14.35 Intangible Asset Amortization 1.81 1.75 Discrete Tax Items (0.16) (0.13) Adjusted Diluted Earnings per Common Share $15.60 $16
Slide 25: Thank you
Thank you Copyright © 2022 FactSet Research Systems Inc. All rights reserved. Confidential: Do not forward.