0001013237FALSE00010132372024-12-172024-12-170001013237fds:CommonStock2Member2024-12-172024-12-170001013237fds:CommonStock1Member2024-12-172024-12-17

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): December 17, 2024
FactSet Research Systems Inc.
(Exact name of registrant as specified in its charter)
Delaware

1-11869

13-3362547
(State or other jurisdiction of

(Commission

(I.R.S. Employer
incorporation)

File Number)

Identification No.)
45 Glover Avenue
Norwalk, Connecticut 06850
(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 classTrading Symbols(s)Name of each exchange on which registered
Common Stock, $0.01 Par ValueFDS
New York Stock Exchange LLC
The Nasdaq Stock Market
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 2.02 Results of Operations and Financial Condition 

On December 19, 2024, FactSet Research Systems Inc. ("FactSet" or the "Company") issued a press release announcing its results for the three months ended November 30, 2024. A copy of the press release is furnished as Exhibit 99.1 hereto and incorporated by reference herein. The information furnished pursuant to this Item 2.02 (Results of Operations and Financial Condition), including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, and shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended (the "Securities Act"), or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
 
Exhibit 99.1 to this Report contains certain financial measures that are considered non-GAAP financial measures as defined in the rules issued by the Securities and Exchange Commission (the "Commission"). Exhibit 99.1 to this Report also contains the reconciliation of these non-GAAP financial measures to their most directly comparable financial measures calculated and presented in accordance with generally accepted accounting principles, as well as the reasons why the Company’s management believes that presentation of the non-GAAP financial measures provides useful information to investors regarding FactSet’s results of operations and, to the extent material, a statement disclosing any other additional purposes for which the Company’s management uses the non-GAAP financial measures.

Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers

On December 17, 2024, the Board of Directors of FactSet Research Systems Inc. (the "Company") elected Barak Eilam as a director of the Company. In conjunction with his election to the Board, Mr. Eilam was appointed to serve as a member of the Company's Compensation and Talent Committee.

Mr. Eilam has almost three decades of experience scaling enterprise software companies into global market leaders. From 2014 until 2024 he served as the CEO of NICE Ltd., a leading enterprise software company specializing in analytics and AI solutions. Mr. Eilam began his career at NICE in 1999 as an engineer and has since held various senior executive positions in engineering, product management, and sales leadership, including President of NICE Americas. Mr. Eilam serves on the boards of HMH, a K-12 education company, and SimilarWeb Ltd., a leading digital data and analytics firm. Mr. Eilam holds a B.Sc. in Electrical Engineering from Tel Aviv University.

There are no arrangements or understandings between Mr. Eilam and any other persons pursuant to which Mr. Eilam was selected as a director. Mr. Eilam has no direct or indirect material interest in any currently proposed transaction to which the Company is to be party, nor did he have a direct or indirect material interest in any such transaction since the beginning of the Company’s last fiscal year.

A copy of the press release, dated December 18, 2024, announcing the election of Mr. Eilam is filed as Exhibit 99.2 to this Current Report on Form 8-K and is incorporated by reference herein.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits
Exhibit No.

Description
Press Release of FactSet Research Systems Inc., dated December 19, 2024, announcing its results for the three months ended November 30, 2024
Press Release of Factset Research Systems Inc., dated December 18, 2024
104Cover 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)




December 19, 2024


By:

/s/ HELEN L. SHAN





Helen L. Shan
Executive Vice President, Chief Financial Officer
(Principal Financial Officer)

News Release I For Immediate Release         

FactSet Reports Results for First Quarter 2025
◦Q1 GAAP revenues of $568.7 million, up 4.9% from Q1 2024.
◦Organic Q1 ASV of $2,258.8 million, up 4.5% year over year.
◦Q1 GAAP operating margin of 33.6%, down approximately 120 bps year over year, and adjusted operating margin of 37.6%, consistent with the prior year.
◦Q1 GAAP diluted EPS of $3.89, up 1.3% from the prior year, and adjusted diluted EPS of $4.37, up 6.1% year over year.

NORWALK, Conn., December 19, 2024 - FactSet (“FactSet” or the “Company”) (NYSE:FDS) (NASDAQ:FDS), a global financial digital platform and enterprise solutions provider, today announced results for its first quarter fiscal 2025 ended November 30, 2024.
First Quarter Fiscal 2025 Highlights
•GAAP revenues increased 4.9%, or $26.5 million, to $568.7 million for the first quarter of fiscal 2025 compared with $542.2 million in the prior year period. Organic(1) revenues grew 4.7% year over year to $567.7 million during the first quarter of fiscal 2025. Growth in GAAP and Organic revenues this quarter was driven by wealth, asset owners and institutional asset managers.
•Annual Subscription Value ("ASV") was $2,265.9 million at November 30, 2024, compared with $2,159.4 million at November 30, 2023. Organic ASV was $2,258.8 million at November 30, 2024, up 4.5% or $98.1 million year over year(2).
•Organic ASV increased $3.4 million over the last three months. Please see the “ASV” section of this press release for details.
•GAAP operating margin decreased to 33.6% compared with 34.9% for the prior year period, mainly due to an increase in amortization of intangible assets and professional fees, partially offset by growth in revenues and a decrease in employee compensation costs. Adjusted operating margin was 37.6%, consistent with the prior year period.
•GAAP diluted earnings per share ("EPS") increased 1.3% to $3.89 compared with $3.84 for the same period in fiscal 2024, primarily due to growth in revenues and a decrease in employee compensation costs, partially offset by an increase in amortization of intangible assets and professional fees. Adjusted diluted EPS increased 6.1% to $4.37 compared with $4.12 in the prior year period, driven by growth in revenues, offset by higher operating expenses and a higher tax rate.
•Net cash provided by operating activities was $86.4 million for the first quarter of fiscal 2025, driven by net income, partially offset by variable compensation payments, resolution of a sales tax dispute and timing of vendor payments. Free cash flow decreased to $60.5 million for the first quarter of fiscal 2025, compared with $138.7 million for the prior year period, a decrease of 56.4%, primarily due to lower net cash provided by operating activities and an increase in capital expenditures.

(1) References to "organic" figures in this press release exclude the current year impact of acquisitions and dispositions completed within the past 12 months and the current year impact from changes in foreign currency.
(2) Beginning in fiscal 2025, FactSet is reporting Organic ASV, rather than Organic ASV plus Professional Services, to focus on the recurring nature of our revenues. This underscores the shift of FactSet's offerings toward providing more managed services and less project-based services.
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News Release I For Immediate Release         

•GAAP effective tax rate for the first quarter of fiscal 2025 increased to 16.5% compared with 15.2% for the first quarter of fiscal 2024. The primary driver of the higher rate in the first quarter of fiscal 2025 is the revaluation of a deferred tax asset associated with a foreign tax rate change.
"Clients increasingly look to us as a partner of choice to bring greater productivity and unlock efficiencies across their enterprise workflows," said Phil Snow, CEO of FactSet. "As we enter our second quarter, we have a robust pipeline fueled by the strength of our diverse portfolio of innovative solutions that deliver value and resonate with our clients."

Key Financial Measures*
(Condensed and Unaudited)Three Months Ended
November 30,
(In thousands, except per share data)20242023Change
Revenues$568,667 $542,216 4.9 %
Organic revenues$567,673 $542,216 4.7 %
Operating income$191,335 $189,040 1.2 %
Adjusted operating income$213,750 $203,965 4.8 %
Operating margin33.6 %34.9 %
Adjusted operating margin37.6 %37.6 %
Net income$150,022 $148,555 1.0 %
Adjusted net income$168,132 $159,127 5.7 %
EBITDA$229,856 $219,002 5.0 %
Diluted EPS$3.89 $3.84 1.3 %
Adjusted diluted EPS$4.37 $4.12 6.1 %
     * See reconciliation of U.S. GAAP to adjusted key financial measures in the back of this press release.
"We are off to a good start in fiscal 2025 and achieved solid operating performance through sustained cost discipline and execution against our growth initiatives and capital strategy," said Helen Shan, FactSet's CFO. "FactSet has a proven track record of consistent growth through all cycles and we remain committed to delivering on both our annual guidance and the medium-term outlook we shared at our Investor Day."
Annual Subscription Value (ASV)
ASV at any given point in time represents the forward-looking revenues for the next 12 months from all subscription services currently supplied to clients.
ASV was $2,265.9 million at November 30, 2024, compared with $2,159.4 million at November 30, 2023. Organic ASV was $2,258.8 million at November 30, 2024, up $98.1 million from the prior year, for a growth rate of 4.5%. Organic ASV increased $3.4 million over the last three months.
The buy-side and sell-side organic ASV annual growth rates as of November 30, 2024 were 4.3% and 3.5%, respectively. Buy-side clients, including institutional asset managers, wealth managers, asset owners, partners, hedge funds and corporate clients, accounted for 82% of organic ASV. The remaining organic ASV came from sell-side firms, including broker-dealers, banking and advisory firms, and 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 was $1,464.5 million compared with ASV in the prior year period of $1,393.1 million. Organic ASV increased 4.5% to $1,456.4 million. Americas revenues for the quarter increased to $367.2 million compared with $348.3 million in the first quarter of last year. The Americas quarterly organic revenues growth rate was 5.2% over the prior year period.
ASV from the EMEA was $572.4 million compared with ASV in the prior year period of $551.7 million. Organic ASV increased 3.6% to $572.4 million. EMEA revenues were $143.8 million compared with $139.6 million in the first quarter of fiscal 2024. The EMEA quarterly organic revenues growth rate was 2.7% over the prior year period.
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News Release I For Immediate Release         

ASV from the Asia Pacific was $229.0 million compared with ASV in the prior year period of $214.6 million. Organic ASV increased 7.0% to $230.0 million. Asia Pacific revenues were $57.7 million compared with $54.3 million in the first quarter of fiscal 2024. The Asia Pacific quarterly organic revenues growth rate was 6.2% over the prior year period.
Operational Highlights – First Quarter Fiscal 2025
•Client count as of November 30, 2024 was 8,249, a net increase of 32 clients in the past three months, driven by an increase in partners, private equity and venture capital and wealth. The count includes clients with ASV of $10,000 and more.
•User count increased by 1,886 to 218,267 in the past three months, primarily driven by an increase in wealth management users.
•Annual ASV retention was greater than 95%. When expressed as a percentage of clients, annual retention was 91%.
•Employee headcount was 12,575 as of November 30, 2024, up 0.5% over the last 12 months, with the increase primarily in the content and technology groups. FactSet's Centers of Excellence account for approximately 68% of the Company's employees.
•A quarterly dividend of $39.6 million, or $1.04 per share, is being paid on December 19, 2024, to holders of record of FactSet’s common stock at the close of business on November 29, 2024.
•FactSet hosted an Investor Day on November 14, 2024, to provide an in-depth look into the Company’s strategic priorities, present its new medium-term financial outlook, and preview its new innovations and tailored workflow solutions.
•FactSet unveiled its Intelligent Platform initiative, which builds on the success of its AI Blueprint published last year and introduces the integration of conversational AI at the platform level. In the quarter, FactSet also launched Internal Research Notes (IRN) 2.0, a major enhancement to its Research Management Solutions for buy-side and wealth professionals, and its new Data as a Service (DaaS) solution, which provides data collection, management, and integration to data management teams at financial institutions and is part of FactSet's growing Managed Services offering.
•FactSet acquired Irwin, an investor relations and capital markets solution for innovative public companies and their advisors. The acquisition builds on a recent successful partnership that integrates Irwin’s award-winning investor relations (IR) CRM with the FactSet Workstation to equip IR professionals with a unified solution to manage investor engagement, conduct research, and streamline corporate access on a single platform.
•FactSet announced its joint initiative with J.P. Morgan Securities Services to deliver FactSet's industry-leading performance, reporting and portfolio analytics solutions through J.P. Morgan's award-winning Fusion data management platform. This joint offering enables asset managers and asset owners to focus on investment insights and generating alpha while benefiting from reduced total cost of ownership and flexibility to outsource or insource their portfolio analytics needs.
•FactSet announced the appointment of Christopher McLoughlin as Executive Vice President, Chief Legal Officer. Mr. McLoughlin has over 20 years of legal experience and was most recently General Counsel of S&P Global Market Intelligence. Before joining S&P Global, he was Deputy General Counsel and Company Secretary of IHS Markit.
•FactSet announced the appointment of Barak Eilam to its Board of Directors. Mr. Eilam brings nearly three decades of experience scaling enterprise software companies into global market leaders. He is serving as Chief Executive Officer of NICE, a leading enterprise software company specializing in analytics and AI solutions, through the end of the year.
Share Repurchase Program
FactSet repurchased 104,475 shares of its common stock for $48.8 million at an average price of $467.00 during the first quarter of fiscal 2025 under the Company’s share repurchase program. As of November 30, 2024, $251.2 million remained available for share repurchases under this program.
Annual Business Outlook
FactSet is reaffirming its outlook for fiscal 2025, originally provided on September 21, 2024. 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.
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News Release I For Immediate Release         

Fiscal 2025 Expectations
•Organic ASV is expected to grow in the range of $90 million to $140 million during fiscal 2025.
•GAAP revenues are expected to be in the range of $2,285 million to $2,305 million.
•GAAP operating margin is expected to be in the range of 32.5% to 33.5%.
•Adjusted operating margin is expected to be in the range of 36.0% to 37.0%.
•FactSet's annual effective tax rate is expected to be in the range of 17% to 18%.
•GAAP diluted EPS is expected to be in the range of $15.10 to $15.70.
•Adjusted diluted EPS is expected to be in the range of $16.80 to $17.40.
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 2025. Please see the back of this press release for a reconciliation of GAAP to adjusted metrics.
Conference Call
First Quarter 2025 Conference Call Details

Date:            Thursday, December 19, 2024
Time:            11:00 a.m. Eastern Time
Participant Registration:    FactSet Q1 2025 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 December 19, 2024, through December 19, 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 "may," "might," "will," "should," "expects," "plans," "anticipates," "believes," "estimates," "intends," "projects," "indicates," "predicts," "potential," or "continue," 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 12 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
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News Release I For Immediate Release         

items. EBITDA represents earnings before interest expense, provision for income taxes and depreciation and amortization expense. 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 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 8,200 global clients, including over 218,000 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 X and LinkedIn. 
FactSet
Investor Relations Contact:             
Yet He                
+1.212.973.5701
yet.he@factset.com

Media Contact:
Megan Kovach
+1.512.736.2795
megan.kovach@factset.com

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News Release I For Immediate Release         

                

Consolidated Statements of Income (Unaudited)


Three Months Ended
November 30,
(In thousands, except per share data)2024

2023
Revenues$568,667 

$542,216 
Operating expenses

Cost of services258,779 

251,621 
Selling, general and administrative118,553 

101,555 
Total operating expenses377,332 

353,176 


Operating income191,335 

189,040 
Other income (expense), net

Interest income2,701 3,012 
Interest expense(14,400)

(16,738)
Other income (expense), net103 (118)
Total other income (expense), net(11,596)(13,844)
Income before income taxes179,739 

175,196 


Provision for income taxes29,717 26,641 
Net income$150,022 $148,555 
Basic earnings per common share$3.95 $3.91 
Diluted earnings per common share$3.89 

$3.84 
Basic weighted average common shares38,005 38,016 
Diluted weighted average common shares38,517 38,643 














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News Release I For Immediate Release         


Consolidated Balance Sheets (Unaudited)


(In thousands)November 30, 2024August 31, 2024
ASSETS


Cash and cash equivalents$289,168 $422,979 
Investments69,623 69,619 
Accounts receivable, net of reserves of $15,755 at November 30, 2024 and $14,581 at August 31, 2024252,521 228,054 
Prepaid taxes78,682 55,103 
Prepaid expenses and other current assets60,702 60,093 
Total current assets750,696 835,848 
Property, equipment and leasehold improvements, net81,524 82,513 
Goodwill1,085,200 1,011,129 
Intangible assets, net1,870,332 1,844,141 
Deferred taxes40,317 61,337 
Lease right-of-use assets, net117,514 130,494 
Other assets96,000 89,578 
TOTAL ASSETS$4,041,583 $4,055,040 


LIABILITIES


Accounts payable and accrued expenses$151,297 $178,250 
Current debt62,460 124,842 
Current lease liabilities31,434 31,073 
Accrued compensation51,760 93,279 
Deferred revenues157,062 159,761 
Current taxes payable44,551 40,391 
Dividends payable39,572 39,470 
Total current liabilities538,136 667,066 
Long-term debt1,296,643 1,241,131 
Deferred taxes8,046 8,452 
Deferred revenues, non-current914 1,344 
Taxes payable41,896 40,452 
Long-term lease liabilities161,372 177,521 
Other liabilities3,015 6,614 
TOTAL LIABILITIES$2,050,022 $2,142,580 


STOCKHOLDERS’ EQUITY


TOTAL STOCKHOLDERS’ EQUITY$1,991,561 $1,912,460 
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY$4,041,583 $4,055,040 

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News Release I For Immediate Release         

Consolidated Statements of Cash Flows (Unaudited)

Three Months Ended
November 30,
(In thousands)20242023
CASH FLOWS FROM OPERATING ACTIVITIES

Net income$150,022 $148,555 
Adjustments to reconcile net income to net cash provided by operating activities


Depreciation and amortization35,717 27,068 
Amortization of lease right-of-use assets7,572 7,618 
Stock-based compensation expense13,592 14,310 
Deferred income taxes21,943 6,703 
Other, net890 3,860 
Changes in assets and liabilities, net of effects of acquisitions
Accounts receivable(23,377)(9,758)
Prepaid expenses and other assets(5,697)(7,164)
Accounts payable and accrued expenses(38,793)31,284 
Accrued compensation(40,663)(60,348)
Deferred revenues(7,269)(2,542)
Taxes payable, net of prepaid taxes(17,806)5,341 
Lease liabilities, net(9,759)(9,783)
Net cash provided by operating activities86,372 155,144 


CASH FLOWS FROM INVESTING ACTIVITIES

Purchases of property, equipment, leasehold improvements and capitalized internal-use software(25,874)(16,466)
Acquisition of businesses, net of cash and cash equivalents acquired(115,199)— 
Purchases of investments(3,987)(8,753)
Net cash provided by (used in) investing activities(145,060)(25,219)
CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from debt55,000 — 
Repayments of debt(62,500)(62,500)
Dividend payments(39,246)(37,053)
Proceeds from employee stock plans38,850 28,404 
Repurchases of common stock(48,790)(59,910)
Other financing activities(13,385)(13,505)
Net cash provided by (used in) financing activities(70,071)(144,564)


Effect of exchange rate changes on cash and cash equivalents(5,052)1,050 
Net increase (decrease) in cash and cash equivalents(133,811)(13,589)
Cash and cash equivalents at beginning of period422,979 425,444 
Cash and cash equivalents at end of period$289,168 $411,855 

Certain prior year figures have been conformed to the current year's presentation.


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News Release I For Immediate Release         


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.

Organic Revenues
Organic revenues exclude the current year impact of revenues from acquisitions and dispositions completed within the past 12 months and the current year impact from changes in foreign currency. The table below provides a reconciliation of revenues to organic revenues:
(Unaudited)Three Months Ended
November 30,
(In thousands)20242023
Change
Revenues$568,667 $542,216 4.9 %
     Acquisition revenues
(696)— 
     Currency impact
(298)— 

Organic revenues$567,673 $542,216 4.7 %





















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News Release I For Immediate Release         


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 and adjusted diluted EPS.

 Three Months Ended
November 30,
(in thousands, except per share data)20242023% Change
Operating income
$191,335$189,0401.2 %
Intangible asset amortization
16,58117,344
Business acquisition and related costs
3,753—
Sales tax dispute(1)
2,398—
Restructuring/Severance
(317)(2,419)
Adjusted operating income
$213,750$203,9654.8 %
Operating margin
33.6%34.9%
Adjusted operating margin(2)
37.6%37.6%
Net income
$150,022$148,5551.0 %
Intangible asset amortization
12,39712,368
Business acquisition and related costs
2,806—
Sales tax dispute(1)
1,793—
Restructuring/Severance
(237)(1,725)
Income tax items
1,351(71)
Adjusted net income(3)
$168,132$159,1275.7 %
Net income
150,022148,5551.0 %
Interest expense
14,40016,738
Income taxes
29,71726,641
Depreciation and amortization expense
35,71727,068
EBITDA
$229,856$219,0025.0 %
Diluted EPS
$3.89$3.841.3 %
Intangible asset amortization
0.320.32
Business acquisition and related costs
0.08—
Sales tax dispute(1)
0.05—
Restructuring/Severance
(0.01)(0.04)
Income tax items
0.040.00
Adjusted diluted EPS(3)
$4.37$4.126.1 %
Weighted average common shares (diluted)
38,51738,643
(1)Sales tax dispute relates to a resolved matter with the Massachusetts Department of Revenue.
(2)Adjusted operating margin is calculated as Adjusted operating income divided by Revenues.
(3)For purposes of calculating Adjusted net income and Adjusted diluted EPS, all adjustments for the three months ended November 30, 2024 and November 30, 2023 were taxed at an adjusted tax rate of 25.2% and 28.7%, respectively.

10

News Release I For Immediate Release         

Business Outlook Operating Margin, Net Income and Diluted EPS
(Unaudited)
Figures may not foot due to rounding
Annual Fiscal 2025 Guidance
(In millions, except per share data)Low end of rangeHigh end of range
Revenues$2,285 $2,305 
Operating income$765 $749 
Operating margin33.5 %32.5 %
Intangible asset amortization
80 81 
Adjusted operating income$845 $830 
Adjusted operating margin (a)
37.0 %36.0 %
Net income$598 $577 
Intangible asset amortization
66 66 
Discrete tax items(4)(3)
Adjusted net income$660 $640 
Diluted earnings per common share$15.70 $15.10 
Intangible asset amortization1.73 1.73 
Discrete tax items(0.03)(0.03)
Adjusted diluted earnings per common share$17.40 $16.80 
(a)Adjusted operating margin is calculated as Adjusted operating income divided by Revenues.

Free Cash Flow
(Unaudited)Three Months Ended

November 30,
(In thousands)20242023Change
Net Cash Provided for Operating Activities$86,372 $155,144  
Less: purchases of property, equipment, leasehold improvements and capitalized internal-use software (25,874)(16,466)

Free Cash Flow$60,498 $138,678 (56.4)%


11

News Release I For Immediate Release         

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 12 months and the effects of foreign currency movements.

The numbers below do not include professional services or issuer fees.


Q1'25Q4'24Q3'24Q2'24Q1'24Q4'23Q3'23Q2'23
% of ASV from buy-side clients82.1%82.0%82.3%82.0%82.0%81.8%82.1%82.8%
% of ASV from sell-side clients17.9%18.0%17.7%18.0%18.0%18.2%17.9%17.2%

ASV Growth rate from buy-side clients4.3%4.9%5.3%5.6%7.2%6.9%7.3%8.1%
ASV Growth rate from sell-side clients3.5%3.8%3.7%5.5%7.6%9.3%12.3%15.8%

The following table presents the calculation of organic ASV.

(In millions)As of November 30, 2024
As reported ASV
$2,265.9 
Currency impact (a)
2.0 
Acquisition ASV (b)
(9.1)
Organic ASV
$2,258.8 
Organic ASV annual growth rate
4.5 %
(a)The impact from foreign currency movements.
(b)Acquired ASV from acquisitions completed within the last 12 months.




12


FactSet Appoints Barak Eilam to Board of Directors

NORWALK, Conn., Dec. 18, 2024 - FactSet (NYSE: FDS | NASDAQ: FDS), a global financial digital platform and enterprise solutions provider, today announced the appointment of Barak Eilam to its Board of Directors. He will also serve on FactSet’s Compensation and Talent Committee.

Eilam brings nearly three decades of experience scaling enterprise software companies into global market leaders. He is serving as Chief Executive Officer (CEO) of NICE, a leading enterprise software company specializing in analytics and AI solutions, through the end of calendar year 2024.

As CEO from 2014 to 2024, Eilam led the company through remarkable growth, tripling its revenue to nearly $3 billion, growing cloud revenue from almost zero to $2 billion, and more than quadrupling earnings per share. He began his career as an engineer at NICE in 1999. Throughout his 25 years at the company, Eilam held several senior executive positions in engineering, product management, and sales leadership, including President of NICE America.

In addition to his role at FactSet, Eilam serves on the boards of HMH, a leading K-12 education company, and SimilarWeb, a digital data and analytics firm. He holds a Bachelor of Science in Electrical Engineering from Tel Aviv University.

“We are delighted to welcome Barak Eilam to our Board of Directors,” said Robin Abrams, Chair of the Board of Directors. “His extensive experience in growing enterprise software businesses and deep knowledge of AI-driven innovation will help FactSet continue to advance its strategy and provide exceptional value to our stakeholders.”

“FactSet is an industry leader known for its innovation and commitment to client success,” said Eilam. “I am honored to join the Board of Directors and excited to work with the leadership team to drive growth and innovation in this new era of technology.”


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 8,200 global clients, including over 216,000 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 among 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 X and LinkedIn.

Investor Relations:
Yet He
+1.212.973.5701
yet.he@factset.com

Media Relations:
Megan Kovach
+1.512.736.2795
Megan.kovach@factset.com

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