Factset Research Systems Inc 8-K, filed Oct 16, 2024
Factset Research Systems Inc (FDS)
8-K
2024-10-16
For: 2024-10-16
View Original
Added on
April 11, 2026
About this 8-K
Factset Research Systems Inc filed this 8-K on October 16, 2024.
Items reported
- Item 7.01: Regulation FD disclosure
- Item 9.01: Financial statements and exhibits
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): October 16, 2024
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of | (Commission | (I.R.S. Employer | ||||||||||||
| incorporation) | File Number) | Identification No.) | ||||||||||||
(Address of principal executive offices) (Zip code)
Registrant’s telephone number, including area code: (203 ) 810-1000
Former name or former address, if changed since last report: None
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbols(s) | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter). Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 7.01 Regulation FD Disclosure
FactSet hereby furnishes the presentation (the "Investor Presentation") that the Company intends to use from time to time on or after October 16, 2024. FactSet may use the Investor Presentation with investors, analysts, lenders, creditors, insurers, vendors, clients, employees and others. The Investor Presentation is furnished herewith as Exhibit 99.1 and also will be made available on the Company's website at factset.com.
The information contained in the Investor Presentation is summary information that should be considered in the context of the Company's filings with the Commission and other public announcements that the Company may make, by press release or otherwise, from time to time. The Investor Presentation is current as of the date of this Current Report on Form 8-K. To the extent that estimates, targets or other forward-looking statements are included in the Investor Presentation, the Company specifically disclaims any duty or obligation to publicly update or revise such information, although it may do so from time to time.
The information in this Current Report on Form 8-K, including Exhibit 99.1, is being furnished and shall not be deemed "filed" for purposes of Section 18 of the Exchange, or otherwise subject to the liabilities of that Section, nor shall it be deemed incorporated by reference in any filing under the Securities Act or the Exchange Act, except as shall be expressly set forth by specific reference in such filing. The furnishing of this information hereby shall not be deemed an admission as to the materiality of any such information.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
Exhibit No. | Description | |||||||
| Investor Presentation of FactSet Research Systems Inc. dated October 16, 2024 | ||||||||
| 104 | Cover page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) | |||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.
FACTSET RESEARCH SYSTEMS INC. (Registrant) | |||||||||||||||||
| October 16, 2024 | By: | /s/ HELEN L. SHAN | |||||||||||||||
| Helen L. Shan Executive Vice President, Chief Financial Officer (Principal Financial Officer) | |||||||||||||||||
FactSet Overview October 16, 2024 Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only
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 as of the date such statements are made about future events and circumstances. All statements that address expectations, guidance, outlook or projections about the future, including statements about our strategy, future financial results, anticipated growth, expected expenditure, product development, market position and trends, 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 numerous risks, uncertainties, and assumptions. Many factors, including those discussed more fully in FactSet's filings with the Securities and Exchange Commission, particularly our latest annual report on Form 10-K and quarterly reports on Form 10-Q, could cause results to differ materially from those stated. These documents are available on our website at http://investor.factset.com and on the SEC's website at http://www.sec.gov. FactSet believes our expectations and assumptions are reasonable, but there can be no assurance that the expectations reflected herein will be achieved. Unless legally required, we undertake no obligation to update any forward-looking statements made in this presentation whether because of new information, future events or otherwise. In addition, this presentation, and oral statements that may be made in connection with this presentation, references non-GAAP financial measures, such as ASV, adjusted operating metrics, adjusted diluted EPS, EBITDA, and free cash flow. Forward-looking non-GAAP financial measures reflect management’s current expectations and beliefs, and we are not able to reconcile such non-GAAP measures to reported measures without unreasonable efforts because it is not possible to predict with a reasonable degree of certainty the actual impact or exact timing of items that may impact comparability. Non-GAAP measures should be considered in addition to, not as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP, as more fully discussed in FactSet's financial statements and filings with the SEC. The use of these non-GAAP measures are limited as they include and/or do not include certain items not included and/or included in the most directly comparable GAAP measure. A reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures is provided in the appendix to this presentation. Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only 2
Overview01
FactSet at a Glance1 20G L O B A L F O O T P R I N T ( C O U N T R I E S ) 37O F F I C E S I N C L U D I N G T W O U S D A T A C E N T E R S 12K+E M P L O Y E E S 216K+U S E R S C L I E N T S 8K+ $2.3B2 A S V 37.8%3 44 $16.453 4.8%3 F Y 2 4 A S V O R G A N I C G R O W T H R A T E F Y 2 4 A D J U S T E D O P E R A T I N G M A R G I N C O N S E C U T I V E Y E A R S O F R E V E N U E G R O W T H D I L U T E D A D J U S T E D E P S 1 Figures as of FactSet FY2024, August 31, 2024 2 LTM Organic ASV + Professional Services based on the last twelve months as of August 31, 2024 3 FY2024 actual as of August 31, 2024 Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only 4
$14 $36 $134 $313 $641 $1,007 $1,494 $2,203 1990 1995 2000 2005 2010 2015 2020 2024 $104 $134 $177 1999 2000 2001 Dot-Com Burst +29% +32% $476 $576 $622 2007 2008 2009 Global Financial Crisis +21% +8% $920 $1,007 $1,127 2014 2015 2016 Oil Crash, Greek Default, Brexit +9% +12% $1,435 $1,494 $1,591 2019 2020 2021 Global COVID Pandemic +4% +7% Figures shown for fiscal years ending August 31 (Revenue, $M) IPO Track record of 44 consecutive years of revenue growth and 28 consecutive years of adjusted earnings per share growth spanning the entirety of our tenure as a public company Consistent Revenue Growth, Resilient Through All Market Cycles Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only 5
1 Please see Appendix for a reconciliation of these non-GAAP metrics to GAAP metrics. 2 Includes CUSIP Global Services (CGS), 3 Incremental ASV Growth, 4 FY18-FY23 actual, 5 Total Organic ASV Growth ASV Retention >95% Client Retention 90% As we grow, our ASV remains sticky and strong NOTE: Figures as of August 31, 2024.. Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only 6
Average 6.5% Note: Chart above includes CGS starting FY23 Q3 $60 $71 $71 $79 $88 $82 $77 $72 $58 $62 $72 $78 $74 $83 $89 $112 $142 $150 $163 $157 $150 $159 $157 $145 $145 $114 $106 $104 5.1% 5.9% 5.5% 5.9% 6.6% 6.0% 5.6% 5.1% 4.1% 4.3% 5.0% 5.3% 5.0% 5.5% 5.8% 7.2% 8.9% 9.4% 10.1% 9.3% 8.8% 9.1% 8.0% 7.1% 7.1% 5.4% 5.0% 4.8% Historical LTM Organic ASV Growth Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only 7 NOTE: Dollar amounts in millions..
FactSet Today02
Americas Europe, Middle East & Africa Asia Pacific 65% 25% 10% 9 We are a global company with a diversified ASV footprint NOTE: Percentages represent ASV from each region as of August 31, 2024. Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only 9
Our clients are at the center of what we do INSTITUTIONAL BUY SIDE: Institutional Asset Management Asset Owners Hedge Funds 50% DEALMAKERS: Banking Corporates PE/VC 19% WEALTH 14% PARTNERS & CGS 16% NOTE: Percentages represent ASV from each firm type as of August 31, 2024. Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only 10
Our Seamlessly Integrated Suite of Best-in-Class Applications Our flexible technology architecture and unique, high-quality data, coupled with professional services and a consultative approach provides solutions across core workflows R E S E A R C H P O R T F O L I O C O N S T R U C T I O N T R A D I N G P E R F O R M A N C E + A T T R I B U T I O N R E P O R T I N G • Generate ideas and discover opportunities with unique data. • Monitor the global markets, research public and private companies, and gain industry and market insights. • Monitor real-time portfolio performance, risk, characteristics, and composition. • Perform exploratory data and portfolio construction analysis to optimize expected returns. • Supervise pre- and post- trade compliance with active and passive breach management. • Oversee order and execution management. • Automate trade execution and optimize algorithm selection. • Understand and analyze sources of performance, risk, and exposure historically and over time. • Calculate and manage workflows to lock down official performance or any other analytics. • Combine key analytics and results with proprietary content in client- ready customizable and automated reports. • Distribute results and commentary via reports, web, API, or feeds. F R O N T O F F I C E M I D D L E O F F I C E S Y M B O L O G Y C O N C O R D A N C E B E S T I N C L A S S T E C H N O L O G Y B E S T I N B R E E D D A T A R I S K M A N A G E M E N T • Measure performance, risk, style, and characteristics for multiple portfolios, and asset classes. • Choose the risk methodologies that match your investment processes. Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only 11
Core Proprietary Data Sets 35 Third Party Data Vendors 1,000+ Client Portfolios (Institutional + Wealth) 15M+ Comprehensive and connected inventory of client, proprietary and third-party data CORE • Fundamentals • Estimates • Equity/Debt Capital Structure • Terms & Conditions • People • Global Exchange Pricing & Reference Data MACRO • Benchmarks & Indices • Economics • ETF & Funds • Country & Industry Market Aggregates • Ownership/Third Party Funds EVENT-DRIVEN • Mergers & Acquisitions • PE/VC Transactions • Events & Transcripts • Corporate Activism • Street Account News UNIQUE • Geographic Revenue • Supply Chain • Shipping Transactions • Revenue by Industry Classification • Company Product Tradenames • Global Entity & Security Master EXPANDING • Sustainability / ESG • Private Markets • Deep Sector • Data Management • Revere Content • Real Time • New Alternative Data Sets Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only 12
Note: Total addressable market (TAM) is the total market demand for a product or service. Serviceable addressable market (SAM) is the segment of the TAM targeted by FactSet’s products and services within our geographic segments. Serviceable Addressable Market Total Addressable Market We employ a build/partner/buy strategy to fuel growth, solve for more client workflows, and capture more of the addressable market BUILD PARTNER BUY Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only 13
New York, NYNew York, NYBoston, MALakewood, COBoston, MAHeadquarters 20141968201120142004Founded DealmakersPartnerships & CGSDealmakersDealmakersInstitutional Buy- Side Sponsoring Workflow Data Management Solutions Data Management SolutionsPrivate MarketsDeep SectorPortfolio LifecycleStrategic Alignment An innovator in data structuring and collection technology Enhances symbology, concordance, and reference data management Building block to accelerate entry into private market workflows and path to differentiated data Accelerate the Power/Energy sub- strategy of our Deep Sector roadmap Address product gap in behavioral analytics to differentiate our PLC offering Deal Rationale Closed in Q4 FY23 (July 11, 2023) Closed in Q3 FY22 (March 1, 2022) Closed in Q1 FY22 (October 12, 2021) Closed in Q4 FY21 (July 1, 2021) Closed in Q4 FY21 (June 1, 2021) Transaction Timing Recent deals complement our product offerings Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only 14
The Future03
DATA EXCELLENCE Open, flexible, modular End-to-end enterprise solutions and services provider Leader in artificial intelligence We are investing in the future. Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only 16
We are elevating our AI capabilities to power our clients’ key workflows and deliver unparalleled levels of personalization, discoverability, and productivity. Mile-Wide Discoverability Mile-High Innovation Enablement Mile-Deep Workflow Automation Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only 17
With FactSet… …an Investment Banker can update a pitchbook with the click of a button. …a Portfolio Manager can query their portfolio’s performance in natural language. …a Wealth Advisor can automatically create an investment proposal for a prospect. Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only 18
Financials | Fiscal 202404
Our long-term strategy to build the leading open content and analytics platform drives growth through changing market cycles Americas $1,457M 1,2,3 EMEA $569M 1,2,3 AsiaPac $229M 1,2,3 • We saw gains from growth in wealth and banking. • These gains were further enhanced by lower erosion and greater expansion. • Growth was driven by gains in wealth. • These gains were offset by greater erosion and lower retention. • We saw acceleration from buy-side and wealth wins. • We saw increased demand for data solutions and workstations. 4.6% 5.6% 8.4% 7.7% 1.8% FY20 FY21 FY22 FY23 FY24* 7.5% 12.3% 12.0% 8.1% 7.1% FY20 FY21 FY22 FY23 FY24* 5.2% 7.4% 9.3% 7.0% 6.1% FY20 FY21 FY22 FY23 FY24* * FY20 to FY24 Organic ASV LTM Growth Rates by Region 1 FY24 Organic ASV LTM by Region. 2 Includes CGS as of Q3 FY23. 3 Segment ASV does not include professional services fees which totaled $18.3 million at August 31, 2024 Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only 20
368 428 494 487 585 73.7% 83.8% 91.7% 77.5% 75.2% 72.5% 40.0% 60.0% 80.0% 100.0% - 100 200 300 400 500 600 FY19 FY20 FY21 FY22 FY23 FY24 Free Cash Flow % FCF Conversion 503 514 540 628 778 848 35.0% 34.4% 33.9% 34.1% 37.3% 38.5% 28.0% 30.0% 32.0% 34.0% 36.0% 38.0% 40.0% FY19 FY20 FY21 FY22 FY23 FY24 - 200 400 600 800 1,000 EBITDA % Margin Attractive financial model with demonstrated strong free cash flow conversion Revenues Adjusted EBITDA and EBITDA Margin1 Capital Expenditures as % of Revenues Free Cash Flow2 Note: Figures as of FactSet FY24 end August 31, 2024 1 See appendix for a reconciliation of EBITDA to GAAP net income. EBITDA margin is defined as EBITDA as a percentage of Revenues. 2 See appendix for a reconciliation of Free Cash Flow to Cash Flows from Operations. FCF conversion is defined as Free Cash Flow as a percentage of EBITDA. 1,435 1,494 1,591 1,844 2,086 2,203 FY19 FY20 FY21 FY22 FY23 FY24 $M $M $M 4.1% 5.2% 3.9% 2.8% 2.9% 3.9% FY19 FY20 FY21 FY22 FY23 FY24 +9.1% +12.8% +10.7% YoY % +9.1%+5.6% YoY % Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only 21 615
28% 30% 30% 32% 30% 28% FY19 FY20 FY21 FY22 FY23 FY24 100 110 118 126 139 151 FY19 FY20 FY21 FY22 FY23 FY24 $220 $201 $265 $19 $177 $235 FY19 FY20 FY21 FY22 FY23 FY24 Returning capital to shareholders $0.7B over the last six years $1.1B over the last six years $M $M 368 428 494 487 585 615 FY19 FY20 FY21 FY22 FY23 FY24 Avg 29.5% $M +7.5% 27% 26% 24% 26% 24% 25% FY19 FY20 FY21 FY22 FY23 FY24 Avg 25.2% Net Income Payout Ratio 2 Free Cash Flow 1 Cash Flow Payout Ratio 3 +6.4% 1 Please see Appendix for free cash flow details. 2 Net income payout ratio reflects dividends as a percentage of net income. 3 Cash flow payout ratio reflects dividends as a percentage of free cash flow 4 In FY22 we prioritized debt repayment over share repurchases to reduce our leverage Dividends Share Repurchases 4 Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only 22 4
23Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only Executing our strategy through workflow solutions that leverage our content refinery 82% 65% 50% 18% 25% 19% 10% 14% 16% APAC EMEA Americas Sell-Side Buy-Side ASV Split by Client, Geography, and Firm Type 1. Percentage of Organic ASV + Professional Services as of August 31, 2024 2. Professional Services of $18.3M not allocated by client type and geography Institutional Buy-side Institutional Buy-side focuses on asset managers, asset owners, and hedge fund workflows Off-platform products delivering data directly and leveraging FactSet’s core content and technology By Client Type1,2 By Geography1,2 By Firm Type1 Institutional Buy-side Dealmakers Partnerships and CGS Wealth Dealmakers and Wealth focuses on banking and sell-side research, wealth management, corporate, and private equity and venture capital workflows Dealmakers and Wealth Partnerships delivers solutions primarily to content providers, financial exchanges, and rating agencies; CGS is the exclusive issuer of CUSIP and CINS identifiers globally Partnerships and CGS Note: Figures may not foot due to rounding
Sustain value creation through disciplined capital allocation Current focus on cash-flow- neutral tuck-in acquisitions and partnerships Normalized share repurchase program with expanded share repurchase authorization amount Target quarterly dividend ~25%- 30% of net income Target annual organic investment net 150 bps of revenues CapEx goal ~4% of revenue IN V ES TM EN TS ( R & D /C A P EX ) SH A R E R EP U R C H A SE D IV ID EN D S A C Q U IS IT IO N S Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only 24
Optimizing capital structure to ensure flexibility Debt incurred for CGS on March 1, 2022, included $1.0B of new senior notes, $1.0B of new term loan, $250M drawn new revolver, net of repayment of $575M previous revolver 1 Based on $575M of drawn revolver as of February 28, 2022, and $561M of FY22 Q2 LTM Adjusted EBITDA (excludes CGS); see appendix for Adjusted EBITDA reconciliation 2 Based on August 31, 2024, net of repayment of $875m of the term facility, Q4 Debt of $1,366m / $847.5 FY24 Q4 LTM Adj. EBITDA = 1.6x *Leverage Ratio is calculated using Net Carrying Value of Debt and Adjusted LTM EBITDA Gross Leverage (Debt / LTM EBITDA) • Investment grade ratings from Moody’s (Baa3) and Fitch (BBB+) • Credit agreement with $500 million revolver ($250 million drawn) and additional $750 million accordion feature • $1 billion unsecured senior notes issued (5 year $500 million 2.9% coupon; 10 year $500 million 3.45% coupon) • $1 billion pre-payable three-year term loan - $125 million outstanding as of August 31, 2024 • Annual interest expense ramping down to ~$40 - $45 million as term loan is repaid • Floating rate exposure hedged with a fixed rate swap Capital Structure Optimization $575 $2,250 $2,105 $1,982 $1,859 $1,736 $1,674 $1,613 $1,551 $1,489 $1,428 $1,366 Feb 28, 2022 (FY22-Q2) Mar 1, 2022 May 31, 2022 (FY22-Q3) Aug 31, 2022 (FY22-Q4) Nov 30, 2022 (FY23-Q1) Feb 28, 2023 (FY23-Q2) May 31, 2023 (FY23-Q3) Aug 31, 2023 (FY23-Q4) Nov 30, 2023 (FY24-Q1) Feb 29, 2024 (FY24-Q2) May 31, 2024 (FY24-Q3) Aug 21, 2024 (FY24-Q4) 1.0x 3.9x 3.5x 3.2x 2.7x 2.4x 2.2x 2.0x 1.8x 1.7x Total Debt ($MM) 1 2.1x Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only 25 1.6x 1 2
$72 $78 $112 $157 $145 $104 FY19 FY20 FY21 FY22 FY23 FY24 $1.4 $1.5 $1.6 $1.8 $2.1 $2.2 FY19 FY20 FY21 FY22 FY23 FY24 $10.00 $10.87 $11.20 $13.43 $14.55 $16.45 FY19 FY20 FY21 FY22 FY23 FY24 FY2024 Guidance vs Performance …building on momentum of the last several years $2,180 - 2,190M* Revenue2,4 Adj Operating Margin1,2,4 Adj Diluted EPS1,4 37.0% - 37.5%*$85M - $120M* ASV Growth2,3,4,5 $16.00 - $16.40* 33.2% 33.6% 32.5% 33.9% 36.2% 37.8% FY19 FY20 FY21 FY22 FY23 FY24 $B$M $ +8.9%+9.0% +10.5% 1 Please see Appendix for a reconciliation of these non-GAAP metrics to GAAP metrics 2 Includes CUSIP Global Services (CGS) as of Q3 FY23 3 Incremental ASV Growth 4 FY19-FY24 actual 5 Total Organic ASV Growth *FY24 Guidance as of June 21, 2024 +8.5%4 Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only 26 +474bps
Committed to margin management while investing in innovation to drive top-line growth People ~7% cost reduction YoY Q4 Variance1 Real Estate ~9% cost reductions YoY Q4 Variance1 Technology ~20% expense increase YoY Q4 Variance1 Third-Party Data Costs ~15% expense increase YoY Q4 Variance1 • Reduction driven by lower compensation expenses due to earlier cost reduction efforts and lower bonus accrual. • 69% in COE locations.1 • Reduced real estate footprint due to the hybrid operating model. • Investing in generative AI technology to drive next- generation workflow solutions. • Technology expense is expected to increase ~20% in FY25. • The cost increase this quarter was due to changes in the timing of variable fees. • Third-party data costs are ~5% of revenue. . 1 As of August 31, 2024 Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only 27
28Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only FISCAL 2025 OUTLOOK As of September 19, 2024 $90 - $140 million (~4% to ~6%)Organic ASV Growth1 $2,285 - $2,305 millionRevenues 32.5% - 33.5%GAAP Operating Margin 36.0% - 37.0%Adjusted Operating Margin 17.0% - 18.0%GAAP Effective Tax Rate $15.10 - $15.70GAAP Diluted EPS $16.80 - $17.40Adjusted Diluted EPS 1. Organic ASV growth as compared to fiscal 2024. Beginning in fiscal 2025, FactSet will report Organic ASV, rather than Organic ASV plus Professional Services. Guidance for FY2025 The Fiscal 2025 Outlook shown here is a forward-looking statement. Given the risks, uncertainties and assumptions related to FactSet's business and operations, FactSet’s actual future results may differ materially from these expectations. Investors should review the Company’s cautionary statements and risk factors referred to in this presentation.
FactSet EBITDA and Adjusted EBITDA reconciliation FY2024 1FY2023 1FY2022 1FY2021 1FY2020 1FY2019 1 $537.1$468.1$396.9$399.6$372.9$352.8Net Income 65.866.335.78.213.120.1Interest Expense 2 114.4116.846.768.054.269.2Income Taxes 125.2105.486.764.557.660.5Depreciation and Amortization Expense $842.5$756.7$566.0$540.3$497.8$502.6EBITDA 5.121.062.2__16.5__Non-Recurring Non- Cash Expenses 3 $847.5$777.6$628.2$540.3$514.3$502.6Adjusted EBITDA ($ in millions) Note: Columns may not foot due to rounding 1 Fiscal year ending August 31 2 Gross interest expense 3 FY2020 Impairment charge to reflect the estimated fair value of an investment in a company, 2022 and 2023 impairment charge related to the exit of certain leased office space Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only 29
($ in thousands) Note: Columns may not foot due to rounding 1 Fiscal year ending August 31 2 Includes property, equipment, leasehold improvements and capitalized internal-use software FY20241FY20231FY20221FY20211FY20201FY20191($ millions) $700.3$645.6$538.3$555.2$505.8$427.1Net cash provided by operating activities (85.7)(60.8)(51.2)(61.3)(77.6)(59.4)Capital Expenditures 2 $614.6$584.8$487.1$493.9$428.2$367.8Free Cash Flow FactSet free cash flow reconciliation Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only 30
31Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only Business Outlook Operating Margin, Net Income and Diluted EPS (in millions, except per share data) High End of RangeLow End of RangeFiscal 2025 (Forward Looking) $2,305$2,285Revenues $749$ 765Operating Income 32.5%33.5%Operating Margin 8180Intangible Asset Amortization $830$845Adjusted Operating Income 36.0%37.0%Adjusted Operating Margin $ 577$ 598Net Income 6666Intangible Asset Amortization (3)(4)Discrete Tax Items $640$660Adjusted Net Income $15.10$15.70Diluted Earnings per Common Share 1.731.73Intangible Asset Amortization (0.03)(0.03)Discrete Tax Items $16.80$17.40Adjusted Diluted Earnings per Common Share Non-GAAP Reconciliations Note: Columns may not foot due to rounding The Fiscal 2025 Outlook shown here is a forward-looking statement. Given the risks, uncertainties and assumptions related to FactSet's business and operations, FactSet’s actual future results may differ materially from these expectations. Investors should review the Company’s cautionary statements and risk factors referred to in this presentation.