Slide 1: FactSet Earnings Call Second Quarter Fiscal 2023
THURSDAY, MARCH 23, 2023 FactSet Earnings Call Second Quarter Fiscal 2023 Copyright © 2023 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 © 2023 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only 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 2023
Key Metrics - Second Quarter 2023 1 2 2 9.1% 37.0% $3.80 ORGANIC ASV + ADJUSTED ADJUSTED PROFESSIONAL SERVICES + OPERATING + DILUTED GROWTH MARGIN EPS Driven by increased sales of 330 bps higher YoY due to 16.2% increase YoY from Content & Technology and higher revenue, lower third- higher revenues
Slide 6: Strategy: build the leading open content and analytics platform
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 Provide the most comprehensive Build differentiated next
Slide 7: Maintaining CGS's positive trajectory while minimizing disruption during TSA migration
Maintaining CGS’s positive trajectory while minimizing business disruption during migration off TSA Achievement Solid first year of ownership under FactSet Key Financial Metrics Prior Guidance of Goal • All systems transitioned to FactSet with zero disruption and no major issues Annual Subscription
Slide 8: ASV + Professional Services Growth Rates by Global Segments
ASV + Professional Services Growth Rates* – By Global Segments $1.9B Organic ASV + Professional Services + 9.1% $494M $196M EMEA ASIAPAC +8% +11% $23M PRO SVCS -4% $1,189M AMERICAS +9% Copyright © 2023 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only 8 *LTM Organic ASV Gr
Slide 9: Committed to sustainable growth for clients, employees, investors, communities
We are committed to sustainable growth for our clients, employees, investors, and communities Scan QR code to read FactSet’s 2022 Sustainability Report Copyright © 2023 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only 9
Slide 10: Financial Overview
Financial Overview Copyright © 2022 FactSet Research Systems Inc. All rights reserved. Confidential: Do not forward.
Slide 11: Second Quarter 2023 Financial Results
Second Quarter 2023 Financial Results* (in thousands, except per share data) 19.5% 8.9% 37.2% 31.4% 430bps 330bps Revenues Organic Revenues Operating Income Adjusted Operating Operating Margin Adjusted Operating 2/28/23 $515,085 2/28/23 $469,547 2/28/23 $169,250 Income 2/28/23 32.9% Margin 2/28/22 $
Slide 12: Key Operational Metrics
Key Operational Metrics >95% 186,463 ASV RETENTION USER COUNT ASV retained from clients over the last twelve Number of individuals accessing FactSet’s months. solutions. No change versus 2022 | Q2 9% change since 2022 | Q2 92% 7,730 CLIENT RETENTION CLIENT COUNT Percentage of clients retained over t
Slide 13: We remain focused on returning capital to shareholders
We remain focused on returning capital to shareholders FactSet intends to resume share repurchases in the third fiscal quarter of 2023 (in millions except share price) $403.44 $330.26 $270.10 $241.08 $197.06 $162.62 $304 $220 $201 $265 $19 $261 $110 $118 $126 $132 $81 $89 $100 '17 '18 '19 '20 '21 '2
Slide 14: Updated FY23 guidance
Updated FY23 guidance includes CUSIP Global Services (+$10mm) and slightly reduced core ASV (-$15mm). GAAP Operating Margin guidance is moderately lower. FISCAL 2023 OUTLOOK FISCAL 2023 OUTLOOK As of March 23, 2023 As of September 22, 2022 Organic ASV + Professional Services Growth1 $145 - $175 mill
Slide 15: Questions & Answers
Questions & Answers Copyright © 2022 FactSet Research Systems Inc. All rights reserved. Confidential: Do not forward.
Slide 16: Appendix
Appendix Copyright © 2022 FactSet Research Systems Inc. All rights reserved. Confidential: Do not forward.
Slide 17: Second Quarter 2023 Adjusted Operating Income Walk
Second Quarter 2023 Adjusted Operating Income Walk US$ millions 515 216 25 41 18 24 191 Revenue People Third Party Technology Real Estate Other Adjusted Content Operating Income Figures as of February 28, 2023 Copyright © 2023 FactSet Research Systems Inc. All rights reserved. FactSet Business Use O
Slide 18: Non-GAAP Reconciliations: Organic Revenues
Non-GAAP Reconciliations Organic Revenues (in thousands) FOR THE THREE MONTHS ENDED FEBRUARY 28 (Unaudited) 2023 2022 % Change GAAP Revenues $515,085 $431,119 19.5% Deferred Revenues Fair Value Adjustment 0 (62) Adjusted Revenues $515,085 $431,057 19.5% Acquired Revenues (47,370) 0 Currency Impact 1
Slide 19: 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 2023 (Unaudited) 2023 2022 % Change GAAP Operating Income $169,250 $123,348 37.2% Deferred Revenues Fair Value Adjustment 0 (62) Intangible Asset Amorti
Slide 20: Non-GAAP Reconciliations: Adjusted EBITDA
Non-GAAP Reconciliations Adjusted EBITDA (in thousands) FOR THE THREE MONTHS ENDED FEBRUARY 28 (Unaudited) 2023 2022 % Change Net Income $131,593 $109,938 19.7% Interest Expense, net 16,737 1,962 Income taxes 25,169 12,018 Depreciation and amortization expense 26,211 13,395 EBITDA $199,710 $137,313
Slide 21: 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) 2023 2022 % Change GAAP Diluted Earnings per Common Share $3.38 $2.84 19.0% Intangible Asset Amortization 0.37 0.14 Deferred Revenues Fair Value Adjustment 0.00 0.00
Slide 22: Non-GAAP Reconciliations: Free Cash Flow
Non-GAAP Reconciliations Free Cash Flow (in thousands) FOR THE THREE MONTHS ENDED FEBRUARY 28 (Unaudited) 2023 2022 % Change Net Cash Provided by Operating Activities $164,678 $122,034 Capital Expenditures (17,456) (11,963) Free Cash Flow $147,222 $110,071 33.8% Copyright © 2023 FactSet Research Sys
Slide 23: 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 2023 (Full Year) Low End of Range High End of Range Revenues $2,080 $2,100 Operating Income $ 614 $641 Operating Margin 29.5% 30.5% Intangible Asset Amortization 71 71 Real Estate Charg
Slide 24: Non-GAAP Reconciliations: Business Outlook Diluted EPS
Non-GAAP Reconciliations Business Outlook Diluted EPS (in millions, except per share data) Fiscal 2023 (Full Year) Low End of Range High End of Range Diluted Earnings per Common Share $12.45 $12.85 Intangible Asset Amortization 1.58 1.56 Real Estate Charges 0.33 0.37 1 1 Business Acquisition Costs/I
Slide 25: Thank you
Thank you Copyright © 2022 FactSet Research Systems Inc. All rights reserved. Confidential: Do not forward.