Slide 1: FactSet Earnings Call Fiscal 2022 & Q4 2022
THURSDAY, SEPTEMBER 22, 2022 FactSet Earnings Call Fiscal 2022 & Q4 2022 Copyright © 2022 FactSet Research Systems Inc. All rights reserved. FactSet Business Use 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 © 2022 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only 3
Slide 4: Business Update
Business Update
Slide 5: 2022 Accomplishments
2022 Accomplishments 42 1 st 9.3% 23 7 1 Year being part Year over year Years of Years of consecutive Years of consecutive of the S&P 500 ASV growth consecutive listing on the HRC revenue growth dividend growth corporate equality index ESG 26 Years of consecutive FactSet commits to the Science Based
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
Slide 7: Key Metrics - Fourth Quarter 2022
Key Metrics - Fourth Quarter 2022 9.3% 31.5% $3.13 1 2 2 ORGANIC ASV + ADJUSTED ADJUSTED PROFESSIONAL + OPERATING + DILUTED SERVICES GROWTH MARGIN EPS Driven by higher sales of 10 basis points lower YoY due 8.7% increase YoY from analytics and research & to higher personnel and higher revenues offse
Slide 8: ASV + Professional Services Growth Rates – By Global Segments & Businesses
ASV + Professional Services Growth Rates* – By Global Segments & Businesses $1.84B Organic ASV + Professional Services + 9.3% $486M $192M EMEA ASIAPAC $651M +8% +12% ANALYTICS & $875M $24M PRO SVCS (-2%) TRADING RESEARCH & +10% ADVISORY $1,135M +8% $311M AMERICAS CTS +9% +11% * LTM Organic ASV Growt
Slide 9: Financial Overview
Financial Overview
Slide 10: Fiscal 2022 Results vs. Guidance
Fiscal 2022 Results vs. Guidance FISCAL 2022 GUIDANCE 1 FISCAL 2022 Results Organic ASV + Professional Services Growth2 $130 - $150 million $158M + Revenues3 $1,800 - $1,830 million $1,844M + Operating Margin3 25.5% - 26.5% 25.8% + Adjusted Operating Margin3,4 33% - 34% 33.9% + Effective Tax Rate3 1
Slide 11: Fourth Quarter 2022 Financial Results
Fourth Quarter 2022 Financial Results* (in thousands, except per share data) 21.2 % 9.8 % 10.9 % 20.8 % (240 bps) (10 bps) Revenues Organic Revenues Operating Income Adjusted Operating Operating Margin Adjusted Operating 8/31/22 $499,297 8/31/22 $452,482 8/31/22 $132,219 Income 8/31/22 26.5% Margin
Slide 12: CUSIP Global Services
CUSIP Global Services Exceeded financial goals at end of the fiscal year, with $6M in incremental ASV; integration going well 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 Growth A
Slide 13: Key Operational Metrics
Key Operational Metrics >95 % 179,982 ASV RETENTION USER COUNT ASV retained from clients over the last twelve Number of individuals accessing FactSet’s months. solutions. No change versus 2021 | Q4 12% change since 2021 | Q4 92% 7,538 CLIENT RETENTION CLIENT COUNT Percentage of clients retained over
Slide 14: Returning Capital to Shareholders
Returning Capital to Shareholders (in millions except share price) $403.44 $330.26 $270.10 $241.08 $197.06 $162.62 $304 $220 $201 $265 $19 $261 $100 $110 $118 $126 $81 $89 '17 '18 '19 '20 '21 '22 Cash Dividends Share Repurchases Avg. Share Price * Includes shares repurchased from employee stock opti
Slide 15: Fiscal 2023 guidance is in line with our medium-term outlook shared on Investor Day
Fiscal 2023 guidance is in line with our medium-term outlook shared on Investor Day Medium Term FY23 Adj. Outlook1 Guidance Range Research + Advisory FactSet $150 - $180 million Analytics + Trading 8 - 9% Organic ASV Growth 2, 3 Content + Technology Solutions FactSet Adjusted Operating Margin 4, 5 3
Slide 16: Questions & Answers
Questions & Answers
Slide 17: Appendix
Appendix
Slide 18: Fiscal 2023 Guidance
Fiscal 2023 Guidance FISCAL 2023 OUTLOOK As of September 22, 2022 Organic ASV + Professional Services Growth1 $150 - $180 million Revenues $2,100 - $2,115 million Operating Margin 30% - 31% Adjusted Operating Margin 34% - 35% Effective Tax Rate 12.5% - 13.5% Diluted EPS $12.70 - $13.10 Adjusted Dilu
Slide 19: Non-GAAP Reconciliations: Organic Revenues
Non-GAAP Reconciliations Organic Revenues (in thousands) FOR THE THREE MONTHS ENDED AUGUST 31 FOR THE YEAR ENDED AUGUST 31 (Unaudited) 2022 2021 % Change 2022 2021 % Change GAAP Revenues $ 499,297 $ 411,894 21.2% $ 1,843,892 $ 1,591,445 15.9% Deferred revenue fair 117 25 539 value adjustment - Adjus
Slide 20: 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 AUGUST 31 FOR THE YEAR ENDED AUGUST 31 (Unaudited) 2022 2021 % Change 2022 2021 % Change GAAP Operating Income $ 132,219 $ 119,176 10.9% $ 475,482 $ 474,041 0.3% De
Slide 21: Non-GAAP Reconciliations: Adjusted EBITDA
Non-GAAP Reconciliations Adjusted EBITDA (in thousands) FOR THE THREE MONTHS ENDED AUGUST 31 (Unaudited) 2022 2021 % Change Net Income $ 104,422 $ 101,062 Interest Expense 15,580 2,049 Income taxes 12,005 17,381 Depreciation and amortization expense 26,507 16,291 EBITDA 158,514 136,783 Non-recurring
Slide 22: Non-GAAP Reconciliations: Adjusted Diluted EPS
Non-GAAP Reconciliations Adjusted Diluted EPS (in thousands, except per share data) FOR THE THREE MONTHS ENDED AUGUST 31 FOR THE YEAR ENDED AUGUST 31 (Unaudited) 2022 2021 % Change 2022 2021 % Change GAAP Diluted Earnings per Common Share $ 2.69 $ 2.63 2.3% $ 10.25 $ 10.36 (1.1)% Deferred revenue fa
Slide 23: Non-GAAP Reconciliations: Free Cash Flow
Non-GAAP Reconciliations Free Cash Flow (in thousands) FOR THE THREE MONTHS ENDED AUGUST 31 FOR THE YEAR ENDED AUGUST 31 (Unaudited) 2022 2021 % Change 2022 2021 % Change Net Cash Provided by Operating Activities $ 151,352 $ 184,978 $ 538,276 $ 555,226 Capital Expenditures $ (15,206) $ (13,821) $ (5
Slide 24: 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 (Forward Looking) Low End of Range High End of Range Revenues $2,100 $2,115 Operating Income $ 600 $656 Operating Margin 30.0% 31.0% Intangible Asset Amortization 73 73 Integration
Slide 25: Non-GAAP Reconciliations: Business Outlook Adjusted Diluted EPS
Non-GAAP Reconciliations Business Outlook Adjusted Diluted EPS (in thousands, except per share data) ($ millions) Low-end of range High-end of range ($ in thousands) Diluted earnings per common share $12.70 $13.10 Intangible asset amortization 1.64 1.62 Integration Costs 0.23 0.24 Discrete tax items
Slide 26: Thank you
Thank you