Factset Research Systems Inc. · NYSE:FDS
Factset Research Systems — Q3 2020 Earnings Presentation
21 slides from Factset Research Systems's earnings presentation, Jun 25, 2020
Slide 1: FactSet Earnings Call Third Quarter Fiscal 2020
FactSet Earnings Call June 25, 2020 Third Quarter Fiscal 2020 Copyright © 2020 FactSet Research Systems Inc. All rights reserved.
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 01 Welcome / Introductions 02 Business Update 03 Financial Overview 04 Questions and Answers 05 Appendix Copyright © 2020 FactSet Research Systems Inc. All rights reserved. 3
Slide 4: Business Update
Business Update Copyright © 2020 FactSet Research Systems Inc. All rights reserved.
Slide 5: Operating Full Steam Ahead While Supporting Our Stakeholders
Operating Full Steam Ahead While Supporting Our Stakeholders Employees • Prioritizing employee health and safety • Successful roll out of WFH with 99% of employees working from home • High productivity and engagement levels • Offering stipends for longer-term WFH setups • Monitoring each market, wit
Slide 6: Digital Transformation Accelerating Industry-Wide
Digital Transformation Accelerating Industry-Wide FactSet’s investment plan on track Industry shift to public cloud accelerating Increased emphasis on efficient workflows, TECHNOLOGY mobile content and collaboration tools Open & flexible tech stacks even more important Successful end of Project Next
Slide 7: Organic ASV + Professional Services – Third Quarter 2020
Organic ASV + Professional Services – Third Quarter 2020 By Region $24M PROF SVCS $150M Growth rate: 6% APAC Growth rate: 9% O R G A N I C G R O W T H R AT E 5 . 0 % $412M EMEA Growth rate: 4% = $1.52B $932M T O T A L A S V + P R O F S V C S AMERICAS Growth rate: 5% * LTM Organic ASV Growth Rate is
Slide 8: Key Metrics - Third Quarter 2020
Key Metrics1 - Third Quarter 2020 ORGANIC ASV2 + ADJUSTED PROFESSIONAL OPERATING ADJUSTED SERVICES MARGIN DILUTED EPS + + 5.0% 35.5% $2.86 Driven by higher sales from 150 basis points higher 9.2% growth YoY from Wealth, Research and YoY due to lower improved operating results International Pricing o
Slide 9: Board of Directors
Board of Directors Robin A. Abrams Philip Snow Chair of the Board of Directors Chief Executive Officer Scott A. Billeadeau Siew Kai Choy Malcolm Frank Sheila B. Jordan James J. McGonigle Lee Shavel Laurie Siegel Joseph R. Zimmel Copyright © 2020 FactSet Research Systems Inc. All rights reserved.
Slide 10: Financial Overview
Financial Overview Copyright © 2020 FactSet Research Systems Inc. All rights reserved.
Slide 11: Third Quarter 2020 Financial Results
Third Quarter 2020 Financial Results* (in thousands, except per share data) For the Three Months Ended May 31, 2020 May 31, 2019 % Change GAAP Revenues $ 374,083 $ 364,533 2.6% Organic Revenues $ 375,336 $ 365,807 2.6% GAAP Operating Income $ 121,640 $ 117,240 3.8% Adjusted Operating Income $ 133,38
Slide 12: Key Operational Metrics
Key Operational Metrics >95% 131,095 ASV RETENTION USER COUNT ASV retained from clients Number of individuals over the last twelve months. accessing FactSet’s workstations. No change versus 2019 | Q3 6.6% change since 2019 | Q3 89% 5,743 CLIENT RETENTION CLIENT COUNT Percentage of clients retained C
Slide 13: Returning Capital to Shareholders
Returning Capital to Shareholders (in millions) $500 $400 $300 $357 $304 $200 $261 $220 $256 $173 $100 $81 $89 $100 $81 $67 $74 $- '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 14: Business Outlook – Fiscal 2020
Business Outlook – Fiscal 20201 Original Guidance Revised Guidance Organic ASV + Professional Services Growth2 $65 - $85 million $60 - $75 million GAAP Revenues $1,490 - $1,500 million $1,485 - $1,490 million GAAP Operating Margin 28.5% – 29.5% 30.0% – 30.5% Adjusted Operating Margin3 31.5% – 32.5%
Slide 15: Questions & Answers
Questions & Answers Copyright © 2020 FactSet Research Systems Inc. All rights reserved.
Slide 16: Appendix
Appendix Copyright © 2020 FactSet Research Systems Inc. All rights reserved.
Slide 17: Non-GAAP Reconciliations: Organic Revenues
Non-GAAP Reconciliations Organic Revenues (in thousands) FOR THE THREE MONTHS ENDED (Unaudited) May 31, 2020 May 31, 2019 % Change GAAP Revenues $374,083 $364,533 2.6% Deferred revenue fair value adjustment 1,169 1,274 Currency impact 84 – Organic Revenues $375,336 $365,807 2.6% Copyright © 2020 Fac
Slide 18: 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) May 31, 2020 May 31, 2019 % Change GAAP Operating Income $121,640 $ 117,240 3.8% Intangible asset amortization 5,107 5,928 Deferred reve
Slide 19: Non-GAAP Reconciliations: Free Cash Flow
Non-GAAP Reconciliations Free Cash Flow (in thousands) FOR THE THREE MONTHS ENDED (Unaudited) May 31, 2020 May 31, 2019 % Change Net Cash Provided by Operating Activities $ 150,953 $ 159,770 Capital Expenditures (11,010) (11,424) Free Cash Flow $ 139,943 $ 148,346 (5.7)% Copyright © 2020 FactSet Res
Slide 20: 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 30.0% 30.5% Intangible asset amortization 1.4% 1.4% Deferred revenue fair value adjustment 0.3
Slide 21: Thank you.
Thank you. Copyright © 2020 FactSet Research Systems Inc. All rights reserved.
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