Factset Research Systems Inc. · NYSE:FDS

Factset Research Systems — Q3 2022 Earnings Presentation

23 slides from Factset Research Systems's earnings presentation, Jun 23, 2022

  1. Slide 1: FactSet Earnings Call Third Quarter Fiscal 2022

    Thursday, June 23, 2022 FactSet Earnings Call Third Quarter Fiscal 2022 Copyright © 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 Copyright©©2022 2022FactSet FactSetResearch ResearchSystems SystemsInc. Inc.All Allrights rightsreserved. reserved.FactSet Business Confidential: Useforward. Do not Only

  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 2022

    Key Metrics - Third Quarter 2022 10.1% 36.6% $3.76 1 2 2 ORGANIC ASV + ADJUSTED ADJUSTED PROFESSIONAL + OPERATING + DILUTED SERVICES GROWTH MARGIN EPS Driven by higher sales of 500 basis points higher YoY 38.2% increase YoY from analytics and research & due to the acquisition of higher revenues and

  6. 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

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

    ASV + Professional Services Growth Rates* – By Global Segments $1.8B Organic ASV + Professional Services + 10% $471M $186M $453M $176M EMEA ASIAPAC EMEA $596M $600M +8% +14% $24M +7% +14% ANALYTICS ANALYTICS Pro Svcs $813M RESEARCH +6% +2% $1,048M $1,093M +6% AMERICAS AMERICAS $218M $181M CTS WEALTH

  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 2022 Financial Results

    Third Quarter 2022 Financial Results* (in thousands, except per share data) 22.3 % 10.5 % (17.4 %) 41.6 % (960 bps) 500bps Revenues Organic Revenues Operating Income Adjusted Operating Operating Margin Adjusted Operating 5/31/22 $488,751 5/31/22 $441,693 5/31/22 $97,254 Income 5/31/22 19.9% Margin 5

  10. Slide 10: CUSIP Global Services

    CUSIP Global Services Integration going well, with strong financial performance in Q3. On track to contribute $5M ASV in fiscal 2022 Pre-Acquisition Post-Acquisition CY FY FY 2021 2022 2025 Annual Subscription ~ $157M ~ $165M Mid-to-High Value (ASV) As of Dec 31, 2021 As of Aug 31, 2022 Single Digit

  11. Slide 11: Key Operational Metrics

    Key Operational Metrics >95 % 173,698 ASV RETENTION USER COUNT ASV retained from clients over the last twelve Number of individuals accessing FactSet’s months. solutions. No change versus 2021 | Q3 12% change since 2021 | Q3 92% CLIENT RETENTION 7,319 CLIENT COUNT Percentage of clients retained over

  12. Slide 12: Returning Capital to Shareholders

    Returning Capital to Shareholders (in millions except share price) $330.26 $197.06 $270.10 $162.62 $241.08 $261 $304 $220 $201 $265 $111 $100 $110 $118 $123 $81 $89 '17 '18 '19 '20 '21 Q3 '22 LTM Cash Dividends Share Repurchases Avg. Share Price Copyright©©2022 Copyright 2022FactSet FactSetResearch

  13. Slide 13: We reaffirm fiscal 2022 guidance of 8% - 9% ASV growth and expanded margin

    We reaffirm fiscal 2022 guidance of 8% - 9% ASV1 growth and expanded margin Guiding to the higher end of the ranges, with tax expected to come in at the lower end of the range FISCAL 2022 OUTLOOK As of June 21, 20222 Organic ASV + Professional Services Growth3 $130 - $150 million Revenues $1,800 - $

  14. Slide 14: Questions & Answers

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

  15. Slide 15: Appendix

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

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

    Non-GAAP Reconciliations Organic Revenues (in thousands) FOR THE THREE MONTHS ENDED MAY 31 (Unaudited) 2022 2021 % Change Revenues $488,751 $ 399,558 22.3% Deferred Revenues Fair Value Adjustment 1 181 Adjusted Revenues 488,752 399,739 22.3% Acquired Revenues (49,385) -- Currency Impact 2,326 -- Org

  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 (Unaudited) 2022 2021 % Change Operating Income $97,254 $117,702 (17.4)% Intangible Asset Amortization 18,548 5,741 Deferred Revenues Fair Value Adjustment 1

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

    Non-GAAP Reconciliations Adjusted EBITDA (in thousands) FOR THE THREE MONTHS ENDED MAY 31 (Unaudited) 2022 2021 % Change Net Income $74,910 $ 100,679 (25.6%) Interest Expense, net 12,051 1,839 Income taxes 10,370 13,597 Depreciation and amortization expense 27,349 17,223 EBITDA 124,680 133,338 (6.5%

  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) 2022 2021 % Change Diluted Earnings per Common Share $1.93 $2.62 (26.3) Intangible Asset Amortization 0.42 0.12 Deferred Revenues Fair Value Adjustment 0.00 0.00 Transfor

  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) 2022 2021 % Change Net Cash Provided by Operating Activities $191,972 $ 140,313 Capital Expenditures (15,404) (18,656) Free Cash Flow $176,568 $ 121,657 45.1% Copyright©©2022 Copyright 2022FactSet Fa

  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 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

  22. 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

  23. Slide 23: Thank you

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

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