Slide 1: FactSet Earnings Call Third Quarter Fiscal 2024
Friday, June 21, 2024 FactSet Earnings Call Third 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 - Third Quarter 2024
Key Metrics - Third Quarter 2024 2 5.0% 39.4% $4.37 1 2 ORGANIC ASV + ADJUSTED ADJUSTED PROFESSIONAL SERVICES + OPERATING + DILUTED GROWTH MARGIN EPS 1 LTM organic growth rate based on May 31, 2024. Annual Subscription Value (ASV) at any given point in time represents the forward-looking revenues fo
Slide 6: Key Operational Metrics
Key Operational Metrics >95% 208,140 ASV RETENTION USER COUNT ASV retained from clients over the last twelve Number of individuals accessing FactSet’s months. solutions. No change versus 2023 | Q3 11% change since 2023 | Q3 90% 8,029 CLIENT RETENTION 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 $2,220M Organic ASV + Professional Services 5.0% + $565M $221M $453M $176M EMEA ASIAPAC EMEA $596M $600M $17M +7% +4% +6% ANALYTICS +14% ANALYTICS Pro Svcs $813M RESEARCH (29)% +6% $1,048M $1,417M +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: Third Quarter 2024 Financial Results
Third Quarter 2024 Financial Results* (in thousands, except per share data) 4.3% 4.5% 17.7% 14.2% 420bps 340bps Revenues Organic Revenues Operating Income Adjusted Operating Operating Margin Adjusted Operating 5/31/24 $552,708 5/31/24 $553,432 5/31/24 $202,459 Income 5/31/24 36.6% Margin 5/31/23 $52
Slide 11: We remain focused on returning capital to shareholders
We remain focused on returning capital to shareholders FactSet continued share repurchases in the third fiscal quarter of 2024 Figures in millions accept share price $447.53 $410.64 $403.44 $330.26 $270.10 $241.08 $197.06 $162.62 $177 $172 $304 $220 $201 $265 $19 $261 $118 $126 $139 $111 $89 $100 $1
Slide 12: We are revising our guidance for FY2024
We are revising our guidance for FY2024 FISCAL 2024 OUTLOOK FISCAL 2024 OUTLOOK As of March 21, 2024 As of June 21, 2024 Organic ASV + Professional Services $110 - $150 million $85 - $120 million Growth1 (~5% to ~7%) (~4.0% to ~5.5%) Revenues $2,200- $2,210 million $2,180 - $2,190million Operating M
Slide 13: Questions & Answers
Questions & Answers Copyright © 2022 FactSet Research Systems Inc. All rights reserved. Confidential: Do not forward.
Slide 14: Appendix
Appendix Copyright © 2022 FactSet Research Systems Inc. All rights reserved. Confidential: Do not forward.
Slide 15: Third Quarter 2024 Adjusted Operating Income Walk
Third Quarter 2024 Adjusted Operating Income Walk US$ millions 553 205 28 53 16 33 218 Revenue People Third Party Technology Real Estate Other Adjusted Operating Content Income Figures as of May 31, 2024 Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only No
Slide 16: 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 Partnerships delivers solutions primarily to content providers, financial Partnerships exchanges, and rating agencies; CG
Slide 17: Non-GAAP Reconciliations: Organic Revenues
Non-GAAP Reconciliations Organic Revenues (in thousands) FOR THE THREE MONTHS ENDED MAY 31 (Unaudited) 2024 2023 % Change GAAP Revenues $552,708 $529,811 4.3% Acquired Revenues (119) 0 Currency Impact 843 0 Organic Revenues $553,432 $529,811 4.5% Copyright©©2022 Copyright 2024FactSet FactSetResearch
Slide 18: Non-GAAP Reconciliations: Adjusted Operating Income, 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) 2024 2023 % Change GAAP Operating Income $202,459 $171,959 17.7% Intangible Asset Amortization 16,674 17,655 Business acquisition / integration c
Slide 19: Non-GAAP Reconciliations: Adjusted EBITDA
Non-GAAP Reconciliations Adjusted EBITDA (in thousands) FOR THE THREE MONTHS ENDED MAY 31 (Unaudited) 2024 2023 % Change Net Income $158,135 $134,663 17.4% Interest Expense 16,894 16,354 Income taxes 32,397 27,335 Depreciation and amortization expense 32,504 26,473 EBITDA $239,930 204,825 Non-recurr
Slide 20: 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) 2024 2023 % Change GAAP Diluted Earnings per Common Share $4.09 $3.46 18.2% Intangible Asset Amortization 0.30 0.36 Business acquisition / integration costs 0.01 0.00 Res
Slide 21: Non-GAAP Reconciliations: Free Cash Flow
Non-GAAP Reconciliations Free Cash Flow (in thousands) FOR THE THREE MONTHS ENDED MAY 31 (Unaudited) 2024 2023 % Change Net Cash Provided by Operating Activities $238,235 $218,589 Capital Expenditures (21,339) (26,005) Free Cash Flow $216,896 $192,584 12.6% Copyright Copyright©©2024 2022FactSet Fact
Slide 22: 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 2024 (Forward Looking) Low End of Range High End of Range Revenues $2,180 $2,190 Operating Income $ 735 $745 Operating Margin 33.7% 34.0% Intangible Asset Amortization 66 70 Restructuri
Slide 23: Non-GAAP Reconciliations: Business Outlook Diluted EPS
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 $14.55 $14.95 Intangible Asset Amortization 1.42 1.49 Restructuring / severance 0.13 0.13 Discrete Tax Items (0.10) (0.17) Adjusted Diluted
Slide 24: Thank you
Thank you Copyright © 2022 FactSet Research Systems Inc. All rights reserved. Confidential: Do not forward.