FactSet (“FactSet” or the “Company”) (NYSE:FDS) (NASDAQ:FDS), a
global financial digital platform and enterprise solutions
provider, today announced results for its second quarter fiscal
2024 ended February 29, 2024.
Second Quarter Fiscal 2024 Highlights
-
GAAP revenues increased 6.0%, or $30.9 million, to
$545.9 million for the second quarter of fiscal 2024 compared with
$515.1 million in the prior year period. Organic(1) revenues grew
6.0% year over year to $546.1 million during the second quarter of
fiscal 2024. Growth in GAAP and Organic revenues this quarter was
driven by asset owners, corporates, hedge funds and private equity
and venture capital clients.
- Annual
Subscription Value ("ASV") plus professional services was
$2,208.8 million at February 29, 2024, compared with $2,096.2
million at February 28, 2023(2). Organic ASV plus professional
services was $2,209.5 million at February 29, 2024, up 5.4% or
$113.8 million year over year.
- Organic
ASV plus professional services increased $24.9 million
over the last three months. Please see the “ASV + Professional
Services” section of this press release for details.
- GAAP
operating margin increased to 33.3% compared with 32.9%
for the prior year, mainly due to higher revenues, lower personnel
expenses on a lower bonus accrual, and a higher capitalization
benefit. These were partially offset by an approximately $11
million restructuring charge taken in the second quarter of fiscal
2024 in connection with personnel reductions. Adjusted operating
margin improved to 38.3% compared with 37.0% in the prior year
period driven by similar drivers contributing to higher GAAP
operating margin, partially offset by increased bad debt
expenses.
- GAAP
diluted earnings per share ("EPS") increased 8.0% to $3.65
compared with $3.38 for the same period in fiscal 2023 due to
higher revenues and margin expansion, partially offset by a higher
tax rate. Adjusted diluted EPS increased 11.1% to $4.22 compared
with $3.80 for the prior year, driven by revenue growth and margin
expansion partially offset by a higher tax rate.
-
Adjusted EBITDA increased to $218.1 million, up
9.2% for the second quarter of fiscal 2024 compared with $199.7
million for the same period in fiscal 2023, due to higher operating
income.
- The Company’s
effective tax rate for the second quarter of
fiscal 2024 increased to 16.4% compared with 16.1% for the three
months ended February 28, 2023, due to higher taxable income,
offset by higher stock option exercises and higher foreign credits,
which reduce the tax rate.
"FactSet is an anchor partner for our clients in
all market conditions.” said Phil Snow, CEO of FactSet. “We remain
optimistic about our growth potential as we continue to invest in
our platform and leverage the power of generative AI to help our
clients uncover new ideas and lower their total cost of
ownership."
(1) References to "organic" figures in this
press release exclude the current year impact of acquisitions and
dispositions completed within the past twelve months and the
current year impact from changes in foreign currency. For year to
date comparisons, organic revenues excludes current year revenues
incurred prior to the first anniversary date of an acquisition.
(2) Prior year ASV has been revised to include
certain CUSIP Global Services ("CGS") revenues not previously
reflected as ASV to better align with our legacy business.
Key Financial Measures*
(Condensed and Unaudited) |
Three Months Ended |
|
|
February 29, |
February 28, |
|
(In
thousands, except per share data) |
|
2024 |
|
|
2023 |
|
Change |
Revenues |
$ |
545,945 |
|
$ |
515,085 |
|
6.0 |
% |
Organic revenues |
$ |
546,130 |
|
$ |
515,085 |
|
6.0 |
% |
Operating income |
$ |
181,942 |
|
$ |
169,250 |
|
7.5 |
% |
Adjusted operating income |
$ |
209,326 |
|
$ |
190,721 |
|
9.8 |
% |
Operating margin |
|
33.3 |
% |
|
32.9 |
% |
|
Adjusted operating margin |
|
38.3 |
% |
|
37.0 |
% |
|
Net income |
$ |
140,940 |
|
$ |
131,593 |
|
7.1 |
% |
Adjusted net income |
$ |
163,067 |
|
$ |
148,114 |
|
10.1 |
% |
Adjusted EBITDA |
$ |
218,111 |
|
$ |
199,710 |
|
9.2 |
% |
Diluted EPS |
$ |
3.65 |
|
$ |
3.38 |
|
8.0 |
% |
Adjusted diluted EPS |
$ |
4.22 |
|
$ |
3.80 |
|
11.1 |
% |
* See reconciliation of U.S. GAAP to adjusted key financial
measures in the back of this press release.
"Careful expense management continues to provide
us with an opportunity to invest in our top strategic
opportunities, such as generative AI,” said Linda Huber, CFO of
FactSet.
Annual Subscription Value (ASV) +
Professional Services
ASV at any given point in time represents the
forward-looking revenues for the next twelve months from all
subscription services currently supplied to clients. Professional
services are revenues derived from project-based consulting and
implementation.
ASV plus professional services was $2,208.8
million at February 29, 2024, compared with $2,096.2 million
at February 28, 2023. Organic ASV plus professional services
was $2,209.5 million at February 29, 2024, up $113.8 million
from the prior year, for a growth rate of 5.4%. Organic ASV plus
professional services increased $24.9 million over the last three
months.
Buy-side and sell-side organic ASV growth rates
for the second quarter of fiscal 2024 were 5.6% and 5.5%,
respectively. Buy-side clients, including asset managers, wealth
managers, asset owners, hedge funds, partners, and corporate
clients, accounted for 82% of organic ASV. The remaining organic
ASV came from sell-side firms, including broker-dealers, banking
and advisory, private equity and venture capital firms.
Supplementary tables covering organic buy-side and sell-side ASV
growth rates may be found on the last page of this press
release.
Segment Revenues and ASV
ASV from the Americas region was $1,415.4
million compared with ASV in the prior year period of $1,336.6
million. Organic ASV increased 5.9% to $1,415.4 million. Americas
revenues for the quarter increased to $352.6 million compared with
$331.1 million in the second quarter of last year. The Americas
region's organic revenues growth rate was 6.5%.
ASV from the EMEA region was $557.2 million
compared with ASV in the prior year period of $529.3 million.
Organic ASV increased 5.0% to $557.5 million. EMEA revenues were
$139.2 million compared with $132.5 million in the second quarter
of fiscal 2023. The EMEA region's organic revenues growth rate was
4.8%.
ASV from the Asia Pacific region was $215.9
million compared with ASV in the prior year period of $207.1
million. Organic ASV increased 5.6% to $216.3 million. Asia Pacific
revenues were $54.1 million compared with $51.5 million in the
second quarter of fiscal 2023. The Asia Pacific region's organic
revenues growth rate was 6.4%.
Segment ASV does not include professional
services, which totaled $20.3 million at February 29,
2024.
Operational Highlights – Second Quarter
Fiscal 2024
- Client count as
of February 29, 2024 was 8,020, a net increase of 75 clients
in the past three months, driven by an increase in private
equity/venture capital, corporates and wealth management clients.
The count includes clients with ASV of $10,000 and more.
- User count
decreased by 605 to 206,478 in the past three months, driven by a
decrease in banking and wealth management users.
- Annual ASV
retention was greater than 95%. When expressed as a percentage of
clients, annual retention was 90%.
- Employee count
was 12,279 as of February 29, 2024, up 3.2% over the last
twelve months, with the increase primarily in FactSet's Centers of
Excellence. Growth was driven by an increase in the content group.
68% of FactSet employees are located in the Centers of
Excellence.
- Net cash
provided by operating activities decreased to $143.8 million
compared with $164.7 million for the second quarter of fiscal 2023,
primarily due to the timing of remitted payroll taxes related to
employee stock compensation as well as income tax payments made in
the period. Quarterly free cash flow decreased to $121.9 million
compared with $147.2 million a year ago, a decrease of 17.2%,
driven by a decrease in net cash provided by operating activities
and higher capital expenditures.
- A quarterly
dividend of $37.4 million, or $0.98 per share, will be paid on
March 21, 2024, to holders of record of FactSet’s common stock
at the close of business on February 29, 2024.
- FactSet
announced the release of Transcript Assistant, a GenAI-powered,
conversational chatbot that accelerates in-depth research and
analysis of earnings call transcripts. Transcript Assistant
leverages generative AI to help users search, analyze, and extract
valuable, actionable insights from all transcripts in FactSet,
ultimately enhancing the investment research process in the FactSet
Workstation.
- The Company
announced the appointment of Laurie Hylton, an experienced senior
finance executive with more than 30 years of expertise in asset
management and public accounting, to its Board of Directors. Before
her retirement, Hylton served as Chief Financial Officer as well as
Chief Accounting Officer at Eaton Vance Corp., a leading global
asset manager. At Eaton Vance, Hylton was a member of the Executive
Management Committee and played a pivotal role in shaping the
company's strategic direction.
Share Repurchase Program
FactSet repurchased 113,050 shares of its common
stock for $52.3 million at an average price of $462.23 during the
second quarter under the Company’s share repurchase program. As of
February 29, 2024, $187.8 million remained available for share
repurchases under this program.
Annual Business Outlook
FactSet is reaffirming its outlook for fiscal
2024, originally provided on December 19, 2024, but anticipates
finishing fiscal 2024 at the lower end of the guidance range for
Organic ASV plus professional services growth and GAAP revenues.
The following forward-looking statements reflect FactSet's
expectations as of today's date. Given the risk factors,
uncertainties, and assumptions discussed below, actual results may
differ materially. FactSet does not intend to update its
forward-looking statements prior to its next quarterly results
announcement.
Fiscal 2024 Expectations
- Organic ASV
plus professional services is expected to grow in the range of $110
million to $150 million during fiscal 2024 This represents ASV
growth of 6% at the midpoint.
- GAAP revenues
are expected to be in the range of $2,200 million to $2,210
million.
- GAAP operating
margin is expected to be in the range of 32.5% to 33.0%.
- Adjusted
operating margin is expected to be in the range of 36.3% to
36.7%.
- FactSet's
annual effective tax rate is expected to be in the range of 16.5%
to 17.5%.
- GAAP diluted
EPS is expected to be in the range of $13.95 to $14.35.
- Adjusted
diluted EPS is expected to be in the range of $15.60 to
$16.00.
As previously announced, the Company incurred an
approximately $11 million personnel related charge during the
second quarter of fiscal 2024 as part of a broader cost
optimization program. FactSet anticipates this action will result
in $25 - $30 million of annualized cost savings going forward.
Adjusted operating margin and adjusted diluted
EPS guidance do not include certain effects of any non-recurring
benefits or charges that may arise in fiscal 2024. Please see the
back of this press release for a reconciliation of GAAP to adjusted
metrics.
Conference Call
Second Quarter 2024 Conference Call Details
Date: |
Thursday, March 21, 2024 |
Time: |
11:00 a.m. Eastern Time |
Participant Registration: |
FactSet Q2 2024 Earnings Call Registration |
|
|
Please register for the conference call using
the above link before the call start time. The conference call
platform will register your name and organization and provide
dial-in numbers and a unique access pin. The conference call will
have a live Q&A session.
A replay will be available on the Company’s
investor relations website after 1:00 p.m. Eastern Time on March
21, 2024 through March 21, 2025. The earnings call transcript will
be available via FactSet CallStreet.
Forward-looking Statements
This news release contains forward-looking
statements based on management's current expectations, estimates,
forecasts and projections about industries in which FactSet
operates and the beliefs and assumptions of management. All
statements that address expectations, guidance, outlook or
projections about the future, including statements about the
Company's strategy for growth, product development, revenues,
future financial results, anticipated growth, market position,
subscriptions, expected expenditures, trends in FactSet’s business
and financial results, are forward-looking statements.
Forward-looking statements may be identified by words like
"expects," "believes," "anticipates," "plans," "intends,"
"estimates," "projects," "should," "indicates," "continues," "may"
and similar expressions. These statements are not guarantees of
future performance and involve a number of risks, uncertainties and
assumptions. Many factors, including those discussed more fully
elsewhere in this release and in FactSet's filings with the
Securities and Exchange Commission, particularly its latest annual
report on Form 10-K and quarterly reports on Form 10-Q, as well as
others, could cause results to differ materially from those stated.
Forward-looking statements speak only as of the date they are made,
and FactSet assumes no duty to and does not undertake to update
forward-looking statements. Actual results could differ materially
from those anticipated in forward-looking statements and future
results could differ materially from historical performance.
About Non-GAAP Financial
Measures
Financial measures in accordance with U.S. GAAP
including revenues, operating income and margin, net income,
diluted earnings per share and cash provided by operating
activities have been adjusted.
FactSet uses these adjusted financial measures
both in presenting its results to stockholders and the investment
community and in its internal evaluation and management of the
business. The Company believes that these adjusted financial
measures and the information they provide are useful to investors
because they permit investors to view the Company’s performance
using the same tools that management uses to gauge progress in
achieving its goals. Investors may benefit from referring to these
adjusted financial measures in assessing the Company’s performance
and when planning, forecasting and analyzing future periods and may
also facilitate comparisons to its historical performance. The
presentation of this financial information is not intended to be
considered in isolation or as a substitute for the financial
information prepared and presented in accordance with GAAP.
Organic revenues excludes from revenues the
current year impact of revenues from acquisitions and dispositions
completed within the past twelve months and the current year impact
from changes in foreign currency. Adjusted operating income and
margin, adjusted net income, and adjusted diluted earnings per
share exclude acquisition-related intangible asset amortization and
non-recurring items. EBITDA and adjusted EBITDA represent earnings
before interest expense, provision for income taxes and
depreciation and amortization expense, while Adjusted EBITDA
further excludes non-recurring non-cash expenses. The Company
believes that these adjusted financial measures help to fully
reflect the underlying economic performance of FactSet.
Cash flows provided by operating activities has
been reduced by purchases of property, equipment, leasehold
improvements and capitalized internal-use software to report
non-GAAP free cash flow. FactSet uses this financial measure both
in presenting its results to stockholders and the investment
community and in the Company’s internal evaluation and management
of the business. Management believes that this financial measure is
useful to investors because it permits investors to view the
Company’s performance using the same metric that management uses to
gauge progress in achieving its goals and is an indication of cash
flow that may be available to fund further investments in future
growth initiatives.
About FactSet
FactSet (NYSE:FDS | NASDAQ:FDS) helps the
financial community to see more, think bigger, and work better. Our
digital platform and enterprise solutions deliver financial data,
analytics, and open technology to more than 8,000 global clients,
including over 206,000 individual users. Clients across the
buy-side and sell-side as well as wealth managers, private equity
firms, and corporations achieve more every day with our
comprehensive and connected content, flexible next-generation
workflow solutions, and client-centric specialized support. As a
member of the S&P 500, we are committed to sustainable growth
and have been recognized amongst the Best Places to Work in 2023 by
Glassdoor as a Glassdoor Employees’ Choice Award winner. Learn more
at www.factset.com and follow us on Twitter and LinkedIn.
FactSet Investor Relations Contact:
Ali
van Nes
+1.203.810.2273 avannes@factset.com
Media ContactMegan
Kovach+1.512.736.2795megan.kovach@factset.com
|
Consolidated Statements of Income (Unaudited) |
|
|
Three Months Ended |
|
Six Months Ended |
|
|
|
|
|
February 29, |
|
February 28, |
|
February 29, |
|
February 28, |
(In thousands, except per share data) |
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Revenues |
$ |
545,945 |
|
|
$ |
515,085 |
|
|
$ |
1,088,161 |
|
|
$ |
1,019,900 |
|
Operating expenses |
|
|
|
|
|
|
|
Cost of services |
|
255,142 |
|
|
|
240,806 |
|
|
|
506,763 |
|
|
|
467,848 |
|
Selling, general and administrative |
|
108,807 |
|
|
|
104,582 |
|
|
|
209,518 |
|
|
|
210,178 |
|
Asset impairments |
|
54 |
|
|
|
447 |
|
|
|
898 |
|
|
|
729 |
|
Total operating expenses |
|
364,003 |
|
|
|
345,835 |
|
|
|
717,179 |
|
|
|
678,755 |
|
|
|
|
|
|
|
|
|
Operating income |
|
181,942 |
|
|
|
169,250 |
|
|
|
370,982 |
|
|
|
341,145 |
|
|
|
|
|
|
|
|
|
Other income (expense),
net |
|
|
|
|
|
|
|
Interest income |
|
2,847 |
|
|
|
2,903 |
|
|
|
5,859 |
|
|
|
5,108 |
|
Interest expense |
|
(16,599 |
) |
|
|
(16,737 |
) |
|
|
(33,337 |
) |
|
|
(33,274 |
) |
Other income (expense), net |
|
455 |
|
|
|
1,346 |
|
|
|
337 |
|
|
|
1,668 |
|
Total other income (expense),
net |
|
(13,297 |
) |
|
|
(12,488 |
) |
|
|
(27,141 |
) |
|
|
(26,498 |
) |
|
|
|
|
|
|
|
|
Income before income
taxes |
|
168,645 |
|
|
|
156,762 |
|
|
|
343,841 |
|
|
|
314,647 |
|
|
|
|
|
|
|
|
|
Provision for income
taxes |
|
27,705 |
|
|
|
25,169 |
|
|
|
54,346 |
|
|
|
46,256 |
|
Net income |
$ |
140,940 |
|
|
$ |
131,593 |
|
|
$ |
289,495 |
|
|
$ |
268,391 |
|
|
|
|
|
|
|
|
|
Basic earnings per common
share |
$ |
3.70 |
|
|
$ |
3.44 |
|
|
$ |
7.61 |
|
|
$ |
7.03 |
|
Diluted earnings per common
share |
$ |
3.65 |
|
|
$ |
3.38 |
|
|
$ |
7.49 |
|
|
$ |
6.89 |
|
|
|
|
|
|
|
|
|
Basic weighted average common
shares |
|
38,103 |
|
|
|
38,281 |
|
|
|
38,059 |
|
|
|
38,201 |
|
Diluted weighted average
common shares |
|
38,650 |
|
|
|
38,981 |
|
|
|
38,646 |
|
|
|
38,947 |
|
|
Consolidated Balance Sheets (Unaudited) |
|
|
|
(In
thousands) |
February 29, 2024 |
August 31, 2023 |
ASSETS |
|
|
Cash and cash equivalents |
$ |
381,708 |
|
$ |
425,444 |
|
Investments |
|
68,519 |
|
|
32,210 |
|
Accounts receivable, net of reserves of $10,787 at February 29,
2024 and $7,769 at August 31, 2023 |
|
272,177 |
|
|
237,665 |
|
Prepaid taxes |
|
42,570 |
|
|
24,206 |
|
Prepaid expenses and other current assets |
|
58,047 |
|
|
50,610 |
|
Total current assets |
|
823,021 |
|
|
770,135 |
|
|
|
|
Property, equipment and leasehold improvements, net |
|
80,971 |
|
|
86,107 |
|
Goodwill |
|
1,003,883 |
|
|
1,004,736 |
|
Intangible assets, net |
|
1,860,609 |
|
|
1,859,202 |
|
Deferred taxes |
|
24,345 |
|
|
27,229 |
|
Lease right-of-use assets, net |
|
133,917 |
|
|
141,837 |
|
Other assets |
|
64,120 |
|
|
73,676 |
|
TOTAL ASSETS |
$ |
3,990,866 |
|
$ |
3,962,922 |
|
|
|
|
LIABILITIES |
|
|
Accounts payable and accrued expenses |
$ |
128,155 |
|
$ |
121,816 |
|
Current lease liabilities |
|
28,965 |
|
|
28,839 |
|
Accrued compensation |
|
72,319 |
|
|
112,892 |
|
Deferred revenues |
|
175,121 |
|
|
152,430 |
|
Current taxes payable |
|
17,832 |
|
|
31,009 |
|
Dividends payable |
|
37,360 |
|
|
37,265 |
|
Total current liabilities |
|
459,752 |
|
|
484,251 |
|
|
|
|
Long-term debt |
|
1,489,488 |
|
|
1,612,700 |
|
Deferred taxes |
|
8,232 |
|
|
6,737 |
|
Deferred revenues, non-current |
|
3,177 |
|
|
3,734 |
|
Taxes payable |
|
35,734 |
|
|
30,344 |
|
Long-term lease liabilities |
|
185,759 |
|
|
198,382 |
|
Other liabilities |
|
6,970 |
|
|
6,844 |
|
TOTAL LIABILITIES |
$ |
2,189,112 |
|
$ |
2,342,992 |
|
|
|
|
STOCKHOLDERS’
EQUITY |
|
|
TOTAL STOCKHOLDERS’ EQUITY |
$ |
1,801,754 |
|
$ |
1,619,930 |
|
|
|
|
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
$ |
3,990,866 |
|
$ |
3,962,922 |
|
|
|
Consolidated Statements of Cash Flows
(Unaudited) |
|
|
|
|
Six Months Ended |
|
February 29, |
February 28, |
(In thousands) |
|
2024 |
|
|
2023 |
|
CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
Net income |
$ |
289,495 |
|
$ |
268,391 |
|
Adjustments to reconcile net
income to net cash provided by operating activities |
|
|
Depreciation and amortization |
|
58,650 |
|
|
52,208 |
|
Amortization of lease right-of-use assets |
|
15,263 |
|
|
19,596 |
|
Stock-based compensation expense |
|
30,962 |
|
|
27,500 |
|
Deferred income taxes |
|
5,632 |
|
|
(6,470 |
) |
Asset impairments |
|
898 |
|
|
729 |
|
Changes in assets and
liabilities, net of effects of acquisitions |
|
|
Accounts receivable, net of reserves |
|
(39,468 |
) |
|
(54,294 |
) |
Accounts payable and accrued expenses |
|
10,377 |
|
|
12,102 |
|
Accrued compensation |
|
(40,456 |
) |
|
(51,714 |
) |
Deferred revenues |
|
22,133 |
|
|
11,069 |
|
Taxes payable, net of prepaid taxes |
|
(26,150 |
) |
|
(2,576 |
) |
Lease liabilities, net |
|
(19,840 |
) |
|
(22,877 |
) |
Other, net |
|
(8,554 |
) |
|
17,650 |
|
Net cash provided by operating activities |
|
298,942 |
|
|
271,314 |
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES |
|
|
Purchases of property,
equipment, leasehold improvements and capitalized internal-use
software |
|
(38,383 |
) |
|
(35,416 |
) |
Purchases of investments |
|
(44,936 |
) |
|
(10,889 |
) |
Net cash provided by (used in) investing
activities |
|
(83,319 |
) |
|
(46,305 |
) |
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES |
|
|
Repayments of debt |
|
(125,000 |
) |
|
(250,000 |
) |
Dividend payments |
|
(74,141 |
) |
|
(67,478 |
) |
Proceeds from employee stock
plans |
|
66,544 |
|
|
43,605 |
|
Repurchases of common
stock |
|
(112,165 |
) |
|
— |
|
Other financing
activities |
|
(14,465 |
) |
|
(11,781 |
) |
Net cash provided by (used in) financing
activities |
|
(259,227 |
) |
|
(285,654 |
) |
|
|
|
Effect of exchange rate
changes on cash and cash equivalents |
|
(132 |
) |
|
2,698 |
|
Net increase (decrease) in
cash and cash equivalents |
|
(43,736 |
) |
|
(57,947 |
) |
Cash and cash equivalents at
beginning of period |
|
425,444 |
|
|
503,273 |
|
Cash and cash equivalents at end of period |
$ |
381,708 |
|
$ |
445,326 |
|
Reconciliation of U.S. GAAP Results to Adjusted
Financial Measures
Financial measures in accordance with U.S. GAAP,
including revenues, operating income and margin, net income,
diluted EPS and cash provided by operating activities, have been
adjusted below. FactSet uses these adjusted financial measures both
in presenting its results to stockholders and the investment
community and in its internal evaluation and management of the
business. The Company believes that these adjusted financial
measures and the information they provide are useful to investors
because they permit investors to view the Company’s performance
using the same tools that management uses to gauge progress in
achieving its goals. Adjusted measures may also facilitate
comparisons to FactSet’s historical performance.
Revenues
The table below provides a reconciliation of revenues to organic
revenues.
(Unaudited) |
Three Months Ended |
|
|
February 29, |
February 28, |
|
(In
thousands) |
|
2024 |
|
|
2023 |
|
Change |
Revenues |
$ |
545,945 |
|
$ |
515,085 |
|
6.0 |
% |
Acquisition revenues (a) |
|
(137 |
) |
|
— |
|
|
Currency impact (b) |
|
322 |
|
|
— |
|
|
Organic revenues |
$ |
546,130 |
|
$ |
515,085 |
|
6.0 |
% |
(a) Removes the current quarter impact of
revenues from acquisitions completed within the past twelve
months.
(b) Removes the current quarter impact from
changes in foreign currency.
Non-GAAP Financial Measures
The table below provides a reconciliation of operating income,
operating margin, net income and diluted EPS to adjusted operating
income, adjusted operating margin, adjusted net income, EBITDA,
adjusted EBITDA and adjusted diluted EPS.
|
Three Months Ended |
|
|
February 29, |
February 28, |
|
(dollar
amounts in thousands, except per share data) |
|
2024 |
|
|
2023 |
|
% Change |
Operating income |
$ |
181,942 |
|
$ |
169,250 |
|
7.5 |
% |
Intangible asset
amortization |
|
16,674 |
|
|
17,709 |
|
|
Restructuring / severance |
|
10,710 |
|
|
433 |
|
|
Business acquisition /
integration costs(1) |
|
— |
|
|
3,329 |
|
|
Adjusted operating income |
$ |
209,326 |
|
$ |
190,721 |
|
9.8 |
% |
Operating margin |
|
33.3 |
% |
|
32.9 |
% |
|
Adjusted operating margin(2) |
|
38.3 |
% |
|
37.0 |
% |
|
Net income |
$ |
140,940 |
|
$ |
131,593 |
|
7.1 |
% |
Intangible asset
amortization |
|
12,579 |
|
|
14,717 |
|
|
Restructuring / severance |
|
8,080 |
|
|
360 |
|
|
Business acquisition /
integration costs(1) |
|
— |
|
|
2,766 |
|
|
Income tax items |
|
1,468 |
|
|
(1,322 |
) |
|
Adjusted net income(3) |
$ |
163,067 |
|
$ |
148,114 |
|
10.1 |
% |
Net income |
|
140,940 |
|
|
131,593 |
|
7.1 |
% |
Interest expense |
|
16,599 |
|
|
16,737 |
|
|
Income taxes |
|
27,705 |
|
|
25,169 |
|
|
Depreciation and amortization
expense |
|
31,582 |
|
|
26,211 |
|
|
EBITDA |
$ |
216,826 |
|
$ |
199,710 |
|
8.6 |
% |
Non-recurring non-cash
expenses |
|
1,285 |
|
|
— |
|
|
Adjusted EBITDA |
$ |
218,111 |
|
$ |
199,710 |
|
9.2 |
% |
Diluted EPS |
$ |
3.65 |
|
$ |
3.38 |
|
8.0 |
% |
Intangible asset
amortization |
|
0.32 |
|
|
0.37 |
|
|
Restructuring / severance |
|
0.21 |
|
|
0.01 |
|
|
Business acquisition /
integration costs(1) |
|
— |
|
|
0.07 |
|
|
Income tax items |
|
0.04 |
|
|
(0.03 |
) |
|
Adjusted Diluted EPS(3) |
$ |
4.22 |
|
$ |
3.80 |
|
11.1 |
% |
Weighted average common shares (Diluted) |
|
38,650 |
|
|
38,981 |
|
|
(1) Related to integration costs of
the CGS acquisition.
(2) Adjusted operating margin
is calculated as Adjusted operating income divided by Revenues.
(3) For purposes of calculating Adjusted
net income and Adjusted diluted earnings per share, all adjustments
for the three months ended February 29, 2024 and
February 28, 2023 were taxed at an adjusted tax rate of 24.6%
and 16.9%, respectively.
Business Outlook Operating Margin, Net
Income and Diluted EPS
(Unaudited) |
|
|
Figures
may not foot due to rounding |
Annual Fiscal 2024 Guidance |
(In millions, except per share data) |
Low end of range |
High end of range |
Revenues |
$ |
2,200 |
|
$ |
2,210 |
|
Operating income |
$ |
715 |
|
$ |
729 |
|
Operating margin |
|
32.5 |
% |
|
33.0 |
% |
Intangible asset
amortization |
|
84 |
|
|
82 |
|
Adjusted operating income |
$ |
799 |
|
$ |
811 |
|
Adjusted operating margin (a) |
|
36.3 |
% |
|
36.7 |
% |
|
|
|
Net income |
$ |
540 |
|
$ |
556 |
|
Intangible asset
amortization |
|
70 |
|
|
68 |
|
Discrete tax items |
|
(6 |
) |
|
(5 |
) |
Adjusted net income |
$ |
604 |
|
$ |
618 |
|
|
|
|
Diluted earnings per common
share |
$ |
13.95 |
|
$ |
14.35 |
|
Intangible asset
amortization |
|
1.81 |
|
|
1.75 |
|
Discrete tax items |
|
(0.16 |
) |
|
(0.13 |
) |
Adjusted diluted earnings per common share |
$ |
15.60 |
|
$ |
16.00 |
|
(a) Adjusted operating margin
is calculated as Adjusted operating income divided by Revenues.
Free Cash Flow
(Unaudited) |
Three Months Ended |
|
|
|
February 29, |
February 28, |
|
|
(In
thousands) |
|
2024 |
|
|
2023 |
|
Change |
Net Cash Provided for Operating Activities |
$ |
143,798 |
|
$ |
164,678 |
|
|
|
Less: purchases of property,
equipment, leasehold improvements and capitalized internal-use
software |
|
(21,917 |
) |
|
(17,456 |
) |
|
|
Free Cash Flow |
$ |
121,881 |
|
$ |
147,222 |
|
(17.2 |
)% |
Supplementary Schedules of Historical ASV by Client
Type
The following table presents the percentages and
growth rates of organic ASV by client type, excluding the impact of
currency movements, and may be useful to facilitate historical
comparisons. Organic ASV excludes acquisitions and dispositions
completed within the last twelve months and the effects of foreign
currency movements.
The numbers below do not include professional
services or issuer fees.
|
Q2'24 |
Q1'24 |
Q4'23 |
Q3'23 |
Q2'23 |
Q1'23 |
Q4'22 |
Q3'22 |
% of ASV from buy-side clients |
82.0% |
82.0% |
81.8% |
82.1% |
82.8% |
82.8% |
82.9% |
83.7% |
% of ASV from sell-side
clients |
18.0% |
18.0% |
18.2% |
17.9% |
17.2% |
17.2% |
17.1% |
16.3% |
|
|
|
|
|
|
|
|
|
ASV Growth rate from buy-side
clients |
5.6% |
7.2% |
6.9% |
7.3% |
8.1% |
8.0% |
8.5% |
9.6% |
ASV Growth rate from sell-side
clients |
5.5% |
7.6% |
9.3% |
12.3% |
15.8% |
14.4% |
13.8% |
12.9% |
The following table presents the calculation of organic ASV plus
professional services.
(Details may not sum to total due to
rounding)
(In
millions) |
Q2'24 |
As reported ASV plus Professional Services (a) |
$ |
2,208.8 |
|
Currency impact (b) |
|
0.7 |
|
Organic ASV plus Professional
Services |
$ |
2,209.5 |
|
Organic ASV plus Professional
Services growth rate |
|
5.4 |
% |
(a) Includes $20.3 million in
professional services as of February 29, 2024.
(b) The impact of foreign
currency movements.
FactSet Research Systems (NYSE:FDS)
Graphique Historique de l'Action
De Mar 2024 à Avr 2024
FactSet Research Systems (NYSE:FDS)
Graphique Historique de l'Action
De Avr 2023 à Avr 2024