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): November 14, 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
On November 14, 2024, FactSet Research Systems Inc. (“FactSet” or the “Company") is hosting an Investor Day in New York City and via livestream. FactSet hereby furnishes the presentation (the “Investor Day Presentation”) that the Company intends to use at Investor Day and from time to time thereafter. FactSet may use the Investor Day Presentation with investors, analysts, lenders, creditors, insurers, vendors, clients, employees and others. The Investor Day Presentation is furnished herewith as Exhibit 99.1 and also will be made available on the Company’s website at factset.com. Also on November 14, 2024, the Company issued a press release with respect to its Investor Day, noting that the Company is reaffirming its full-year fiscal 2025 guidance and announcing a new medium-term outlook (the "Press Release"). A copy of the Press Release is furnished as Exhibit 99.2 hereto.
The information contained in the Investor Day Presentation and in the Press Release is summary information that should be considered in the context of the Company's Securities and Exchange Commission filings and other public announcements that the Company may make, by press release or otherwise, from time to time. The Investor Day Presentation and the Press Release are 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 Day Presentation and the Press Release, 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 and Exhibit 99.2, is being furnished and 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, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, 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 November 14, 2024 | ||||||||
| Press Release of FactSet Research Systems Inc. dated November 14, 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) | |||||||||||||||||
| November 14, 2024 | By: | /s/ HELEN L. SHAN | |||||||||||||||
| Helen L. Shan Executive Vice President, Chief Financial Officer (Principal Financial Officer) | |||||||||||||||||
Investor Day 2024 | November 14, 2024 Supercharging Financial Intelligence FactSet Investor Day 2024
Forward-Looking Statements and Non-GAAP Measures This presentation, and other statements that FactSet may make at Investor Day 2024, 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,” "outlook," “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 made in connection with this presentation reference non-GAAP financial measures, such as ASV, adjusted operating metrics, adjusted diluted EPS, EBITDA, gross leverage, 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. 2Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only
Today’s Agenda 3Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only 8:30 AM Welcome + Agenda Yet He, Interim Head of Investor Relations 8:35 AM Supercharging Financial Intelligence Phil Snow, Chief Executive Officer 8:50 AM The Power of Our Data + Technology Ecosystem Kate Stepp, Chief Technology Officer + John Costigan, Chief Data Officer 9:10 AM Supercharging Wealth Workflows Kristy Karnovsky, Head of Dealmakers & Wealth 9:25 AM Supercharging Dealmakers Workflows Kristy Karnovsky, Head of Dealmakers & Wealth 9:40 AM Break + Product Showcases 10:15 AM Supercharging Buy-Side Workflows Rob Robie, Head of Institutional Buy-Side 10:35 AM Commercial Data Strategy John Costigan, Chief Data Officer 10:50 AM The Future of Client Centricity: Sales Strategy Goran Skoko, Chief Revenue Officer 11:10 AM The Future of Value Creation: Financials and Outlook Helen Shan, Chief Financial Officer 11:30 AM Break + Product Showcases 12:00 PM Q+A Management Team 12:45 PM Closing Remarks Phil Snow, Chief Executive Officer 12:50 PM Post-Event Product Demos + Lunch
Today’s Presenters Phil Snow Chief Executive Officer John Costigan Chief Data Officer Kristina Karnovsky Head of Dealmakers and Wealth Rob Robie Head of Institutional Buy-Side Helen Shan Chief Financial Officer Goran Skoko Chief Revenue Officer Kate Stepp Chief Technology Officer Kendra Brown Head of Banking Solutions
Supercharging Financial Intelligence Phil Snow, Chief Executive Officer FactSet Investor Day 2024 01
Market-leading global, multi-asset class connected data FactSet at a Glance We are a strong, differentiated business… Deep competitive differentiation across firm types and workflows Trusted partner to the world’s largest financial institutions Open, flexible, and at the forefront of technological innovation Stable subscription model with high retention …with a compelling value proposition for shareholders Strong margin and free cash flow conversion Track record of growth and shareholder return through market cycles Disciplined capital allocation and flexible balance sheet 1. ASV and Professional Services as of August 31, 2024 FactSet creates flexible data, technology, and workflow solutions that fuel critical decisions for the global financial community 44 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 $2.3B A S V 1 216K+ U S E R S 8K+ C L I E N T S 12K+ E M P L O Y E E S 6Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only
We have a track record of outperforming the market and delivering steady, sustainable growth to the top and bottom line FDS S&P 500 15.1% Annualized Total Shareholder Return $4.96 $16.4512.7% Adjusted Diluted EPS CAGR $920M $2.2B9.1% Revenue CAGR 7Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only Note: Revenue and Adjusted Diluted EPS as of FactSet fiscal year end August 31. See appendix for a reconciliation of non-GAAP metrics to GAAP metrics. Share price performance and total shareholder return based on market prices as of November 11, 2024 FactSet Share Price Performance vs. S&P 500 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Our business has evolved and is increasingly diversified across our geographic and firm-type end markets Americas Asia Pacific (APAC) Europe, Middle East and Africa (EMEA) 10% 65% 25% $2.3B (FY24) ASV by Geographic Segment1 ASV by Firm Type1 Institutional Buy-Side Wealth Dealmakers Partnerships & CGS '14 '15 '16 '17 '18 '19 '20 '21 '22 '23 '24 16% 15% 19% 50% 8Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only $2.3B FY < $1B 1. Organic ASV and Professional Services as of August 31, 2024 6% 9% 18% 66%
We have nearly quadrupled our user count in the last ten years… 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 216K User Count ASV Driver1 …while also shifting our business mix to reduce headcount exposure 55K 9Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 75% Headcount-Based ASV 51% Headcount-Based ASV 25% Enterprise ASV 49% Enterprise ASV Note: Figures as of FactSet fiscal year end August 31. 1. Headcount-Based ASV relates to workstation-based products. Enterprise ASV relates to portfolio management solutions and data subscriptions.
We have built differentiated solutions and market-leading franchises in all our firm type markets 10Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only Buy-Side Partners & CGSWealthDealmakers 95 of the Top 100 Asset Managers 30 Years powering banker workflows 100K Advisor Desktops 6M Institutional Portfolios loaded nightly 15M Wealth Portfolios integrated 75% of the Top 50 Global Investment Banks T R U S T E D B Y T H E W O R L D ’ S L A R G E S T F I N A N C I A L I N S T I T U T I O N S + + + M A R K E T - L E A D I N G F R A N C H I S E S • Best-in-class “Big 4” for the Middle Office: Performance, Attribution, Risk, Reporting • Leader in Banking productivity, modeling and pitch generation workflows in Microsoft Office • Superior solution for Advisors, seamlessly integrating client portfolio data • Open, flexible, and integrated with other industry participants 1K Partner Clients+~ Trusted by the world’s largest financial institutions Market-leading franchises Modern Cloud Ecosystem+
Our addressable market continues to grow as we add new solutions and services… $40B+ Total Addressable Market $2.3B FactSet Today (FY24)1 $28B Core Addressable Market Rise and increasing adoption of AI; CTOs and CDOs as key decision-makers Pressure to reduce total cost of ownership; outsourcing of non-core functions Need to better organize, manage, and label data to fuel LLMs Shift into private markets and alternatives; private credit as an investment vehicle Retail investors demanding access to same strategies and analytics as HNW/institutional …informed by macro trends and changes in our end markets 11Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only Note: Total addressable market is the total market demand for a product or service. Core addressable market is the segment of the TAM across the firm types and user personas targeted by FactSet’s products and services within our geographic segments. 1. Organic ASV and Professional Services as of August 31, 2024
As our industry also shifts in response to these secular trends… …we remain open, flexible, and ready to move fast and partner to win Growing presence of Big Tech in our industry Increasing focus on unstructured data Top-down selling of cost/vendor consolidation Investments in Private Markets capabilities “Front-to-Back” solutions for the Buy-Side Multi-LLM, multi-cloud + AI Partner Program Search Intelligence via FactSet Mercury Enhanced enterprise sales approach Continued expansion of Private Markets data Continued investment in Front Office PLC 12Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only
Our cutting-edge Data + Technology Ecosystem enables us to move quickly, partner effectively, and drive innovation for our clients Vast Connected Data Asset • Broad and deep coverage • 1,300+ TB of data managed • ~ 4x data items in the last five years Modern Data Pipeline • Single data model and SSOT • Seamless connections between proprietary, third-party, and client data • Fast, efficient data onboarding Flexible Delivery • Access to our data, tools, and services wherever our clients are • Integrated with major Cloud providers • “Build” and “buy” ready Integrated AI • Vectorized and AI-ready data • RAG applications and fine-tuned models • Conversational API 13Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only
Guided by our AI Blueprint, we built an Intelligent Platform that powers discoverability, efficiency, and innovation… 14Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only Next-Generation Search Intelligence across structured and unstructured data FactSet Mercury AI-Powered Workflow Efficiency tools purpose-built to drive productivity for specific firm types and user personas Pitch Creator GenAI PLC Wealth Prospecting & Prop Gen Enterprise AI Building Blocks designed to foster AI innovation and execution within client ecosystems Conversational API AI-Ready Vectorized Data AI Partner Program …in our environment …and in our clients’ environments
Innovate across workflows to maintain and build leadership Maximize the value of our data and technology ecosystem Deliver value to our clients as their enterprise partner of choice Now, we are on a mission to supercharge financial intelligence 15Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only
02 FactSet Investor Day 2024 Kate Stepp, Chief Technology Officer John Costigan, Chief Data Officer The Power of Our Data + Technology Ecosystem
Our cutting-edge Data + Technology Ecosystem enables us to move quickly, partner effectively, and drive innovation for our clients Vast Connected Data Asset • Broad and deep coverage • 1,300+ TB of data managed • ~ 4x data items in the last five years Modern Data Pipeline • Single data model and SSOT • Seamless connections between proprietary, third-party and client data • Fast, efficient data onboarding Flexible Delivery • Access to our data, tools and services wherever our clients are • Integrated with major Cloud providers • “Build” and “buy” ready Integrated AI • Vectorized and AI-ready data • RAG applications and fine-tuned models • Conversational API 17Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only
18Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only FMA Historical Siloed Approach x Fragmented data management x Limited scalability x Higher cost of operations x Inefficiencies in data governance New, Unified Data Pipeline ✓ Single data model; single source of truth, cloud-enabled ✓ All delivery endpoints fed from same data layer ✓ Future-proofed for adding new data quickly ✓ Positioned well for Generative AI world Digital transformation of fragmented data silos to a single data model Capital Structure TransactionsPricing Deep SectorCorp Actions ESGEconomics FundamentalsEstimates RevereOwnership Symbology / EntitiesEvents & Transcripts Funds & ETFsPrivate Markets Benchmarks
19Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only Strong technical foundations to enable partnership with clients and harness the power of GenAI GenAI Development Lifecycle 1: DATA PREPARATION Vectorized Content FactSet’s added value for handling structured and unstructured embeddings Content Discovery Quickly and easily access content clients need for specific use cases Data Catalog Automation of data management activities Structured Data FactSet’s standard data feeds 2: RAG & MODEL REFINEMENT Scalable RAG (Retrieval Augmented Generation) Easily jumpstart RAG workflows with FactSet content and enablers Specialized LLMs Models trained specifically for financial services use cases Fine Tuning FactSet fine tunes models, making it easier for clients to get started quickly Benchmarking Understand how models compare to one another for specific tasks Orchestration Layer Directs prompts to the correct underlying models 3: CONVERSATIONAL USER EXPERIENCE Answers as a Service Conversational API allows quick bot creation, providing answers and abstracting the rest Answer Visualization Make answers quickly consumable with charts and helpful visual styling Next Best Action Facilitate workflow efficiency through connections to next best action Relevant Context Enrich answers and build trust with users by providing relevant context Prompt Security Treat prompts with care and confidentiality + Partnership with users to expose functionality
Our cutting-edge Data + Technology Ecosystem enables us to move quickly, partner effectively, and drive innovation for our clients Vast Connected Data Asset • Broad and deep coverage • 1,300+ TB of data managed • ~ 4x data items in the last five years Modern Data Pipeline • Single data model and SSOT • Seamless connections between proprietary, third-party and client data • Fast, efficient data onboarding Flexible Delivery • Access to our data, tools and services wherever our clients are • Integrated with major Cloud providers • “Build” and “buy” ready Integrated AI • Vectorized and AI-ready data • RAG applications and fine-tuned models • Conversational API 20Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only
FactSet Investor Day 2024 03 Kristina Karnovsky, Head of Dealmakers and Wealth Supercharging Wealth Workflows
Wealth: Key Highlights 22Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only Momentum with the Advisor “Grow the Business” Workflows “Run the Business” Workflows Opportunities Beyond the Desktop We have strong momentum with the advisor, the most important user persona for our Wealth Manager clients Expanding into adjacent “grow the business” workflows for advisors positions us to capture growing client budgets Our institutional-grade capabilities resonate with clients for “run the business” portfolio workflows for advisors and the home office FactSet’s obsession with delivering client outcomes has created trust that results in opportunities beyond the advisor desktop 1 2 3 4
Key Characteristics FactSet’s Wealth Business Today: Firmly established on the advisor desktop and seeing early success expanding into adjacent workflows Wealth $315M ASV (FY24) Core Platforms & Products Data Solutions Portfolio Lifecycle (PLC) Solutions Institutional Buy-Side Dealmakers Partnerships & CGS Americas EMEA APAC 23Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only Geographic Segment and Solution Mix1 1. Relative mix of FY24 ASV as of FactSet fiscal year end August 31 for the Wealth firm type by geographic segment and solution offering. 1,450+ Wealth manager clients globally 100K+ Deployments across advisor desktops 15M+ Portfolios integrated with Advisor Dashboard 16%+ Annual desktop growth (FY19-24 CAGR) 3 of top 5 Canadian wealth managers (since FY21) 95%+ Annual ASV retention (FY21-24 Average) 9%+ Annual ASV growth (FY21-24 CAGR)
24Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only Evolution of Our Wealth Business Today (FY24)~ 10 Years Ago (FY14) FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 100K+ Users (FY24) Marquee Wirehouse Top 5 Canadian Wealth Manager Leading Private Wealth Client < 20K Users (FY18) ASV / # Clients: < $90M / ~190 $315M / ~1,450 Product Focus: Thick-client, locally installed workstation built for FactSet’s institutional buy-side client base User Persona: Only the most sophisticated equity focused users within a wealth management firm (research analysts and portfolio managers) I can tell you that the FactSet implementation was one of our best. As far as the satisfaction from my advisors, the training they provided, the help with the change management strategy, it was just a fantastic experience. I couldn’t be happier with the relationship with FactSet... They’ve been a fantastic partner, not just a vendor, and I look forward to many years to come. -- Greg Beltzer, Head of Technology, RBC Wealth Management–U.S. Leading Global Private Bank Note: Figures as of FactSet fiscal year end August 31. Web-based dashboard tailored for the advisor and extensive data and technology solutions for adjacent workflows Everyone consuming equity, credit and fund data, including advisors, home office managers of the model / strategy / portfolio, and end-clients receiving service from the wealth manager
25Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only Here’s why leading organizations rely on FactSet’s content, technology, and expertise to drive their success.
Expand into Business Development Delivering AI-powered prospecting and proposal generation solutions to supercharge business development workflows 1 Leverage Core Products to Expand Footprint 26Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only Medium Term Growth Opportunities Superior Advisor workflow tool Fast, seamless implementation Client-driven roadmap Integration of client portfolios Multi-endpoint delivery Wealth Growth Opportunities: Expanding deeper into adjacent workflows and across the enterprise Building on FactSet’s strength on the advisor desktop to deliver analytics, AI, and data solutions across the enterprise Win More Home Office Users Investing in multi-asset class workflows to replicate recent success and displace competitors for sophisticated user personas 2 3 Why We Win Today
27Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only 1 Delivering AI-powered prospecting and proposal generation solutions to supercharge business development workflows Expand into Business Development Intelligent Prospecting Proposal Generation • Strategic partners seamlessly connected into Advisor Dashboard • Guiding advisors through their business development workflows to drive growth in their book of business • FactSet data integrated across both partners to ensure consistency • Clients demand high-quality people data and relationship mapping solutions • Streamline time-intensive, laborious task of finding and qualifying leads • Identify ‘Money in Motion’ activities across your client portfolio • Address client demand for elegant, efficient, compliant proposal platform • Create personalized, interactive digital proposals in minutes vs. hours • Integrate seamlessly with clients’ holdings data and FactSet’s market data
28Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only 2 Client Case Study: Investing in multi-asset class workflows to replicate recent success and displace competitors for sophisticated user personas Win More Home Office Users Home Office Advisors Digital Client Services • 30 Research Analysts (equity only) • 20 Portfolio Managers • 30 Investment Advisors • 80 Wealth Managers • 210 Wealth Managers • 120 Research Analysts • 160 Portfolio Managers • 150 Investment Advisors • Performance Reporting System • Multi-Asset-Class Risk Package • Systematic Investor Package • Digital Capabilities for Advisor Intranet and Client Portal Multi-Asset-Class Enhancements Based on Client’s Priority: Bond Screening Bond Calculator Fixed Income New Issues Data Expanded APAC Fixed Income News Securitized Derivatives Pricing Data Equity Relative Evaluation Bond Total Return Policy Rate Tracker Tax Reporting Status for ETFs Global Onsite Training Virtual Sessions + Support 90+ Template Conversions VIP Welcome for new FactSet Users: Before Global bank wealth division seeking to reduce incumbent terminals footprint After FactSet’s Footprint
29Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only 3 Building on FactSet’s strength on the advisor desktop to deliver analytics, AI, and data solutions across the enterprise Leverage Core Products to Expand Footprint Home Office Workflows Advisor Workflows Client Engagement Workflows Enabling data and analytics for modelling, portfolio construction, portfolio management, and distribution of research to advisors Investing in solutions and partnerships to capture more of the advisor workflows, enabling them to “run” and “grow” their book of business Offering flexibility through an open platform for integration into CRMs and advisor portals with better self-service capabilities for end clients • Capture IT budgets with Widgets, Data Feeds, APIs, CRM integration • Capture retail client budgets with Investment Dashboards and Digital Reporting • Capture AI budgets with Conversational API powered by FactSet Mercury • Increase trading volume with AI generated Signals contextualized to each client • Advisor Dashboard to power the management and growth of an advisor’s book of business • Streamline wealth middle office with portfolio Performance and Managed Services • Optimization, Stress Testing, Rebalancing from Advisor Dashboard to go from monitor to next best action • FactSet Mercury integration of Home Office Research to power Portfolio Commentary • Data solutions for the enterprise with Real- Time Data, Security Reference and Content APIs
30Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only Wealth: Key Takeaways 1 2 3 4 We have strong momentum with the advisor, the most important user persona for our Wealth Manager clients Expanding into adjacent “grow the business” workflows for the advisor positions us to capture growing client budgets Our institutional- grade capabilities resonate with clients for “run the business” portfolio workflows for advisors and the home office Our obsession with delivering client outcomes has created trust that results in opportunities beyond the advisor desktop Note: Figures as of FactSet fiscal year end August 31. 1. Medium term outlook represents FactSet’s expectations as of November 14, 2024. Actual results may differ materially from expectations above. 2. Target average annual growth rate through FY28. LDD12% FY24 ASV Growth Medium-Term Outlook1,2 Wealth Organic ASV Growth
Supercharging Dealmakers Workflows FactSet Investor Day 2024 04 Kristina Karnovsky, Head of Dealmakers and Wealth
Dealmakers: Key Highlights 32Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only Deep, Enduring Client Relationships Next Gen Banker Efficiency Streamline Client Workflows Differentiated Intelligent Platform Multiple decades- long track record of partnering with clients to deliver value when and where our users need it Unlocking value for our clients through increased productivity with industry-leading product suite and innovative GenAI solutions Through a buy, build, and partner strategy, we are further embedding FactSet into adjacent workflows and user personas Data is fuel for our Intelligent Platform and our AI strategy will enable greater discoverability to drive user efficiency and action 1 2 3 4
Americas EMEA APAC 33Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only Key Characteristics FactSet’s Dealmakers Business Today: Leader in Banking with specialized workflows in Corporates and PE/VC Wealth $441M ASV (FY24) Core Platforms & Products Data Solutions Portfolio Lifecycle (PLC) Solutions ~ 3K Dealmaker clients globally 60K+ Users across Sell-Side, PE/VC and Corporates 30+ Years powering banker workflows 10 of the top 10 global investment banks ~ 75% of the top 50 global investment banks 95%+ Annual ASV retention (FY21-24 Average) 8%+ Annual ASV growth (FY21-24 CAGR) Institutional Buy-Side Dealmakers Partnerships & CGS Geographic Segment and Solution Mix1 1. Relative mix of FY24 ASV as of FactSet fiscal year end August 31 for the Dealmakers firm type by geographic segment and solution offering.
34Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only Evolution of Our Banking Business Today (FY24)~ 10 Years Ago (FY14) Leading desktop solution focused on delivering core content and productivity solutions to junior bankers Enterprise solutions partner to banks with interconnected offering across desktop, office, feeds, APIs, and partnerships • Go-to resource for global, regional, and middle market banks conducting public company diligence • Definitive source for powering models and developing pitch books • Customer support that leaves a lasting impression—when bankers change careers for PE, Buy-Side, or Corporate roles, they ask for FactSet back • Unified product suite for junior bankers, senior bankers, data scientists, and technologists within our banking clients • Evolving repository of “non-traditional” content to meet a variety of specialized needs (Deep Sector, Private Markets, ESG, Activism, etc.) • Driving enterprise efficiency supporting CRM integration, cloud delivery, and internal application development • Defining the next evolution of banking solutions with direct guidance from clients through FactSet’s Explorer AI beta program • 2001 – LionShares (ownership) • 2003 – Mergerstat (M&A data) • 2004 – CallStreet (earnings transcripts) • 2004 – JCF (broker estimates) • 2005 – SharkRepellent (activism) • 2008 – DealMaven (Office productivity) • 2008 – Worldscope (fundamentals data) • 2012 – StreetAccount (news flow) ~ 20+ Years Ago (prior to FY14) Inorganic strategy to acquire and build out proprietary content and workflow solutions in areas critical to bankers
33% 75% (43%) 23%9% 16% 4% 35Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only Currently in a cyclical trough with ASV growth historically correlated to the ebbs and flows of our clients’ business activity and industry fee pools 2016 2017 2018 2019 2020 2021 2022 2023 2024 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FactSet Reported Sell-Side ASV (YoY Growth 8 Quarters Lagged) Investment Banking Industry Fee Pool (YoY Growth) (YTD) M&A Deal Values (Quarterly Announced Volume) (8 Quarters Lagged) Note: FactSet figures as of fiscal year end August 31.
Growing Data Foundation for Intelligent Platform Streamline Client Workflows Next Gen Banker Efficiency 36Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only Medium Term Growth Opportunities Workflow efficiency + stickiness Depth + quality of data Solid client relationships Strong support model Open content platform Dealmakers Growth Opportunities: Embedding FactSet deeper into client workflows to drive increased efficiency and lower total cost of ownership Evolving the pitch creation process with GenAI to simplify the automation of standardized and repetitive tasks Expanding our capacity to service high-value client workflows across firm types via acquisition and partnership Unlocking the power of our growing data asset via our Intelligent Platform 1 2 3 Why We Win Today
37Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only 1 Evolve the pitch creation process by automating standardized and repeated tasks and layering in GenAI to “remove the mundane” Next Gen Banker Efficiency How pitch decks are created today … • Typical banker decks range from 30-50+ slides with many standardized artifacts – Market data charts – Company profiles (full page or strips) – Peer comparisons – Research and insights – “Tombstones” and case studies – Management bios • On average, manual steps to produce these take 300+ “clicks” to build, format, and link • This pitch creation process is a mundane, low value exercise for bankers and is a primary source of junior banker burnout … and how they will be built tomorrow with Pitch Creator = Unstructured Data Search Intelligence ReSlide Tombstone Generator Chart Creator Company Profile Creator Template Intelligence Model Cloud Refresh • Pitch Creator marries GenAI with banking- specific workflow solutions to augment the pitch creation experience • Utility delta of 70-90% of process efficiency and “click” reduction vs. the current, analog way of building decks • Save junior bankers an additional ~10 hours per week by automating the repetitive tasks that require the greatest number of hours to create • Natural extension to the existing banker process to maximize adoption and minimize change management risks = Structured Data
Investor Relations 38Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only 2 Expanding our capacity to service high-value client workflows across firm types via acquisition and partnership Streamline Client Workflows Portfolio Monitoring Firm Type(s): Corporates PE/VC All Dealmakers Partner / Acquisition: Workflow Solution: Modern solution integrated into FactSet Workstation that empowers IR teams to manage investor engagement, conduct research, and streamline corporate access on a single platform Facilitates collection and tracking of portfolio company financials, KPIs, and fund cash flows by private capital GPs for LP reporting, benchmarking, fundraising, and exit planning Platform-level AI enabling search intelligence across FactSet’s extensive structured and unstructured data, plus partner plugins Growth Effect: Accelerates FactSet’s momentum in Investor Relations as point-of-entry into Corporate clients, a greenfield opportunity space Enables FactSet to offer broader capabilities across the front, middle, and back office to PE/VC clients One-stop solution for best-in-class research and task execution, driving retention improvement and new business growth across all firm types Fundamental Research
3 Unlocking the power of our growing data asset via our Intelligent Platform Growing Data Foundation for Intelligent Platform 39Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only The FactSet Intelligent Platform streamlines the research process by enabling next-generation search intelligence across FactSet’s vast collection of structured and unstructured data, which we continue to expand As we onboard new data, the Intelligent Platform becomes more powerful and more capable of answering increasingly complex questions and performing increasingly intricate tasks Deep Sector Private Markets • 10M global private companies covered; 50%+ with recent financials • Company lifecycle from initial seed capital to portfolio exit News & Documents • Research, Transcripts, StreetAccount News, Filings, Internal Research, Expert Network Calls • 400+ reports available in the Workstation + 40 feeds added for 11 sectors (and counting)
40Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only Dealmakers: Key Takeaways 1 2 3 4 Deep, enduring client relationships with a multiple decades-long track record of partnering with clients to deliver value when and where our users need it Unlocking next gen banker efficiency through increased productivity with industry-leading product suite and innovative GenAI solutions Streamlining client workflows through a buy, build, and partner strategy, we are further embedding FactSet into adjacent workflows and user personas Data is fuel for our Intelligent Platform and executing on our AI strategy will enable greater discoverability to drive user efficiency and action Note: Figures as of FactSet fiscal year end August 31. 1. Medium term outlook represents FactSet’s expectations as of November 14, 2024. Actual results may differ materially from expectations above. 2. Target average annual growth rate through FY28. HSD4% FY24 ASV Growth Dealmakers Organic ASV Growth Medium-Term Outlook1,2
Supercharging Buy-Side Workflows FactSet Investor Day 2024 05 Rob Robie, Head of Institutional Buy-Side
Total Cost of Ownership Partner Complete Portfolio Lifecycle Full Multi Asset Class Platform Path to Accelerated Growth by helping clients with efficient and effective decision making across the Portfolio Lifecycle widens the differentiation around our Middle Office franchise and is a catalyst for Front Office cross-selling with unified and holistic capabilities provides analysis and real-time insights across all asset classes from repeatable successes in newer segments such as Asset Servicers and OCIOs 1 2 3 4 Buy-Side: Key Highlights 42Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only
Americas EMEA APAC 43Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only Key CharacteristicsGeographic Segment and Solution Mix1 FactSet’s Buy-Side Business Today: 95 of the top 100 Asset Managers are clients, with growth runway across Asset Owners and Hedge Funds Wealth $1,145M ASV (FY24) Core Platforms & Products Data Solutions Portfolio Lifecycle (PLC) Solutions 2.5K+ Buy-Side clients globally 95 of the top 100 global Asset Managers 6M+ Institutional portfolios loaded nightly ~ 50M Debt instruments processed per day 45%+ Clients using 3+ Portfolio Lifecycle solutions2 95%+ Annual ASV retention (FY21-24 Average) ~ 6% Annual ASV growth (FY21-24 CAGR) Institutional Buy-Side Dealmakers Partnerships & CGS 1. Relative mix of FY24 ASV as of FactSet fiscal year end August 31 for the Institutional Buy-Side firm type by geographic segment and solution offering. 2. Based on Institutional Buy-Side clients with a FactSet relationship of at least $50K.
1988 1997 2000 2002 2004 2006 2008 2010 2012 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 44Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only Evolution of Our Buy-Side Business Today (FY24)~ 10 Years Ago (FY14) Inorganic strategy to cement FactSet’s position in the middle office and expand into front office trading workflows Continued expansion into the front office to address the holistic needs of clients across the full portfolio lifecycle (PLC) ~ 20+ Years Ago (prior to FY14) Product-led innovation to position FactSet as a leader for buy-side portfolio workflows in the middle office Execution Management Client Reporting Performance & Risk Behavior Analytics SPAR Universal Screening Fixed Income Analytics Portfolio Commentary & Security Explanation Private Capital Data Aggregation (PCDA) (minority investment) FactSet EMS FactSet Programmatic Environment (FPE) Asset AllocationAlpha Testing Portfolio Analysis StreetAccount Barra Stress Testing Axioma FactSet Fund Marketing Real-Time Cloud Ticker Plant Portfolio Manager Hub Managed Services Implementation Services Internal Research Note Analytics APIs Portfolio Vault Balanced Attribution Portfolio Publisher Marquee Real-Time Multi Asset Class Risk Product Innovation M&A Portfolio Services Derivative Solutions
Accelerate Managed Services Deepen Multi Asset Class Capabilities Win the Front Office 45Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only Medium Term Growth Opportunities Best-in-class in Middle Office Portfolio integration Programmatic access Industry-leading expertise Open and flexible platform Buy-Side Growth Opportunities: Position FactSet as an enterprise partner of choice across the end-to-end portfolio lifecycle Increase portfolio manager and trader footprint with fully connected trade lifecycle workflow and differentiating GenAI capabilities Replicate success and brand awareness in equity workflows by expanding further into private markets and enhancing fixed income insights Continue differentiating our middle office while helping our clients control their total cost of ownership and pushing into non-data budgets 1 2 3 Why We Win Today
Fully connected trade lifecycle Persona specific workflows Next level efficiency powered by GenAI Scalable and configurable to clients’ unique investment needs Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only 46 Research Analyst • Internal Research Notes (IRN 2.0): enhanced solutions for analysts to create, store, and share their research • Increased productivity across the fundamental research workflow: Draft Assistant, Tag Assistant, Theme Intelligence, Chat • Portfolio Manager Hub: purpose-built to centralize PM workflows for real-time portfolio monitoring and trade simulation, fully integrated out- of-the-box with existing portfolio holdings • PM Assistant: natural language chat co-pilot for streamlined access to underlying drivers of portfolio performance • Security Explanation: time savings in understanding daily stock movements based on current news, market and peer activity • FactSet EMS: repackaged Portware capabilities to expand further into the middle market • Industry leading automation and trade analytics: lower cost of ownership and fully integrated into the Workstation Increase portfolio manager and trader footprint with fully connected trade lifecycle and differentiating GenAI capabilities 1 Win the Front Office Portfolio Manager Trader
47Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only 2 Deepen Multi Asset Class Capabilities Replicate success and brand awareness in equity workflows by expanding further into private markets and enhancing fixed income insights • Bring high quality fixed income analytics trusted by large asset owners and asset managers to new front office capabilities • Enhance portfolio analytics and risk for private markets, building upon private equity into real estate and private credit • Additional asset classes for trade execution including fixed income and FX • Risk and attribution models that adapt to clients' investment mandates across all asset classes • Unified experience and real-time insights for multi asset portfolios Building on decades of expertise expanding trusted strategies into new markets: Private Companies Private Capital Private Credit • 24K+ GP Investors • 60K+ GP Funds • Venture Capital • Buyout, Secondary, Real Estate, Growth, Infrastructure • 10M global private companies • Company lifecycle research from initial seed capital to portfolio exit • Firmographics, financials, and investment rounds • 40K+ Issuers • 150K+ Facilities • Leveraged Loans • Middle Market Loans Fixed Income • 5M Global Active Debt • Governments • Munis • Corporates • Convertibles • Bank Loans • Structured Products • Derivatives Growing Multi-Asset Class Content
48Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only 3 Continue differentiating our middle office while helping clients control their total cost of ownership and pushing into non-data budgets Accelerate Managed Services Decades of Experience and Operational Know-How • 40+ years loading and managing client data • 150+ integrations with third party portfolio feeds • 6M+ institutional portfolios loaded nightly • Thousands of integration workflows monitored Scalable Global Team • Tech-enabled and established global team • Blended workforce strategy in Centers of Excellence and local offices • Specialized roles across the engagement model drive optimal client experience • Suite of outsourced managed services for Performance, Reporting, and Risk that combine our best-in-class products and services • Augment clients’ teams with dedicated FactSet employees empowered with technology and tooling that drive productivity and faster time to insights • Clients own the results and not the process, repurposing time and attention towards growing AUM • 60+ service level activities that FactSet owns for the client Performance Managed Services Offering: Standard Managed Configure Data Monitoring Data Checking Client Data Issue Resolution Entity Data Management Workflow Management Maintain Performance Calcs Support Return Governance FactSet ResponsibilityClient Responsibility Track record of service excellence... …to deliver the future of managed services
49Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only Buy-Side: Key Takeaways 1 2 3 4 Total cost of ownership partner by helping clients with efficient and effective decision making across the Portfolio Lifecycle Complete Portfolio Lifecycle widens the differentiation around our Middle Office franchise and is a catalyst for Front Office cross-selling Full multi asset class platform with unified and holistic capabilities provides analysis and real- time insights across all asset classes Path to accelerated growth from repeatable successes in newer segments such as Asset Servicers and OCIOs Note: Figures as of FactSet fiscal year end August 31. 1. Medium term outlook represents FactSet’s expectations as of November 14, 2024. Actual results may differ materially from expectations above. 2. Target average annual growth rate through FY28. Buy-Side Organic ASV Growth MSD3% FY24 ASV Growth Medium-Term Outlook1,2
Commercial Data Strategy FactSet Investor Day 2024 06 John Costigan, Chief Data Officer
One Unified, Global Data Team Well Positioned for the Age of GenAI Capturing Enterprise Workflows Elevating Solution Selling aligned on collection, integration and delivery to all end points across internal and external customers given our multi-year digital transformation and data platform modernization journey by delivering across Real Time, Pricing & Reference, and Benchmarks vs. disparate data feeds to meet clients where they are in their own data transformation 1 2 3 4 Commercial Data Strategy: Key Highlights 51Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only
52Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only 1. Relative mix in FY24 by geographic segment as of FactSet fiscal year end August 31 for Data Solutions offering and organization. 2. Relative mix in FY24 by firm type as of FactSet fiscal year end August 31 for Data Solutions offering. Geographic Segment Mix1 (FY24) Data Solutions is an integral and growing part of our offering, built on a comprehensive data model to streamline content collection and delivery 2,000+ Data Solutions clients globally ~ 300 Clients leveraging cloud delivery 1,200+ Total proprietary and third-party data sets 1,300+ Terabytes of data managed ~ 4x Data items in the last 5 years 55%+ of FactSet’s global employee base ~ 10% Annual ASV growth (FY21-24 CAGR) Institutional Buy-Side WealthDealmakers Partnerships & CGS Americas APACEMEA Firm Type Mix2 (FY24) By ASV By Employees By ASV Key Characteristics
53Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only Data Solutions Growth Opportunities: Powering client data workflows across the enterprise through engagement with the C-suite Flexible Data Delivery Sell Data Workflows, Not Feeds Reaching the Enterprise Medium Term Growth Opportunities Leveraging investments across Real Time, Pricing & Reference, and Benchmarks to meet enterprise needs in a $5B+ addressable opportunity Elevate solution selling by targeting critical client workflow needs to drive streamlined and simplified engagement across all firm types Meet clients where they are with easy-to-integrate, cloud-agnostic data solutions to accelerate value- add and achieve client objectives faster 1 2 3 Elevating client engagement to CDO and CTO level Ecosystem of connected data Breadth and depth of content Open and flexible delivery Client service Why We Win Today
54Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only Real Time Market Data Pricing and Security Reference Benchmark and Indices Leveraging investments to meet client enterprise needs and displace competitors in a $5B+ addressable opportunity 1 Reaching the Enterprise Enterprise Partner: Pairing our Workstation footprint with recent data and infrastructure investments to compete at an enterprise-level across the front, middle, and back office • Offer clients a differentiated value proposition to leapfrog incumbents • Displacing legacy, on-premise competitor market data platforms with a modern, cloud-native solution • Building on our recent momentum displacing incumbents in this space • Capitalizing on the opportunity to provide foundational data to power critical enterprise workflows • Leader in seamless integration of global benchmarks and indices • Partnering with clients to solve their enterprise data management challenges and reduce overall TCO
55Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only Data as a Service (DaaS) Trading & Real-Time Application Development Pricing and Security Reference Data Science, Research & Quant • Standard Data: Global Prices, Fundamentals, Ownership, ETF • Premium Data: DMS, Revere (Supply Chain, RBICS with Revenue, GeoRev) • Core market data for equities, ETF, and mutual funds delivered via FactSet Widgets • Seamless integration of FactSet data, client holdings and third-party content • Feature-rich, personalized client frontend • Core Data: Global Prices, Options and ETF Reference Data, and DMS • Comprehensive suite of pricing and reference data to displace a competitor, allowing for product flexibility and trusted support • Market Data-as-a-Service (MDaaS): Single entitlement system as a managed service • Single Market Data API for Real-Time, End of Day, Tick History and Fundamentals • Replacement of legacy, on-premise competitor solution • Data as a Service (DaaS): Ingestion, Monitoring, Identifier Resolution, Data Loading • Data Management Service (DMS) & Concordance: Direct integration with EDM • Upsell Opportunity: FactSet and 3rd Party Open FactSet Marketplace content Elevate solution selling by targeting critical client workflow needs to drive streamlined and simplified engagement across all firm types 2 Sell Data Workflows, Not Feeds Premier Asset Owner Premier Global Asset Manager Leading Wealth Manager Top Brokerage Leading Hedge Fund
56Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only Client Case Study: FactSet’s Market Data-as-a-Service transforms client’s legacy market data infrastructure with cloud scalability 2 Sell Data Workflows, Not Feeds Client’s Challenge FactSet’s Solution The Results Market Data Infrastructure Performance Issues Meet Business & Enterprise Needs over Next Decade+ Market Data Infrastructure Delivered “as-a-Service” • Maintenance: costly to maintain • Scalability: tied to physical server capabilities • Support: requires highly specialized support • Risk: audit risks tied around entitlement controls • Reduce mean-time-to-recover • Improve availability, responsiveness, throughput • Meet anticipated future consumer demands • Supply dedicated staff / managed services • Significant technology upgrade • Saved resources with managed services • Eliminated “big bang” change management • Aligned to client’s firmwide cloud strategy Trillion-dollar AUM premier global asset manager seeking lower TCO
57Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only Meet clients where they are with easy-to-integrate, cloud-agnostic data solutions to accelerate value-add and achieve client objectives faster 3 Flexible Data Delivery BUILD BUY Portal Widget API Data Modular and configurable web components that accelerate development and minimize implementation time Turnkey, ready to deploy digital solutions integrated seamlessly with pre-built and customizable widgets Library of API packages to create bespoke user experiences and workflows Open and direct access via standard delivery or through major cloud providers • 165 widgets library • 300+ data products in catalog • 1,300+ terabytes of data • 100+ API packages • 200M+ API calls per month • 80+ Portal clients
Commercial Data Strategy: Key Takeaways 1 2 3 4 One unified, global data team aligned on collection, integration and delivery to all end points across internal and external customers Well positioned for the age of GenAI given our multi-year digital transformation and data platform modernization journey Capturing enterprise workflows by delivering across Real Time, Pricing & Reference and Benchmarks Elevating solution selling vs. disparate data feeds to meet clients where they are in their own data transformation 58Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only
The Future of Client Centricity: Sales Strategy FactSet Investor Day 2024 Goran Skoko, Chief Revenue Officer 07
Trusted Client Relationships Preferred Partner Proven Execution Multiple Growth Levers Reflected in our retention, satisfaction scores, and ability to grow both users and clients Deep knowledge of client workflows, a flexible platform, superior solutions, and high-touch service Average size of deals increasing across our market-leading franchises in Middle Office, Banking and Wealth Deliberate growth acceleration through expansion of existing clients, new business, and value capture 1 2 3 4 Client Centricity: Key Highlights 60Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only
Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only We are proud of our trusted, deep client relationships across the global financial community Americas APAC EMEA Established and diversified client base1 Note: Figures as of FactSet fiscal year end August 31. 1. Relative mix in FY24 by geographic segment and firm type as of FactSet fiscal year end August 31. Consistently growing book of business By ASV By # of Clients Institutional Buy-Side Wealth Dealmakers Partnerships & CGS Institutional Buy-Side Wealth Dealmakers Partnerships & CGS ~7% Organic ASV Growth FY21-24 CAGR • 100+ of our clients participating in Client Advisory Boards • 50+ clients and 18.5K+ users providing feedback on beta/pre-release products through the FactSet Explorer Program • Solutions Architect Team partners with client technology teams to define target operating models • Highly skilled Consulting team, organized by firm type, crafts personalized success journeys for our users 8%+ Client Growth FY21-24 CAGR 10%+ User Growth FY21-24 CAGR 95%+ Client Satisfaction FY24 95%+ ASV Retention FY24 Collaborative, consultative client partnerships 61
Improved retention, execution on new solutions, and focus on enterprise sales to drive ASV growth to MSD/HSD MSD to HSD • Focus on Renewals • Customer Success Technology and Tooling • Role Specialization Drivers of ASV Growth Acceleration • Managed Services and DaaS • New GenAI offerings in Banking, Wealth and Research • Intelligent Prospecting and Proposal Generation • Real Time, Pricing & Reference, Benchmarks Data • Enterprise Contracts • Consumption Pricing FY24 Growth Medium Term Outlook1,2 +5% Improve Retention Sell New Solutions Enterprise Sales Note: Figures as of FactSet fiscal year end August 31. 1. Medium term outlook represents FactSet’s expectations as of November 14, 2024. Actual results may differ materially from expectations above. 2. Target average annual growth rate through FY28. 62Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only 1 2 3
Why We Win Today • Workflow knowledge • Flexibility on delivery • Open platform • End-to-end solutions • Targeted pricing/packaging • Best-in-class service and support • Speed and stability Institutional Buy-Side Dealmakers Wealth Partners & CGS 63Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only Organized by Firm Type Holistic, client-centric approach to selling with deep workflow expertise and ability to meet them where they need us User Personas + Workflows Client-Centric Enterprise Sales Approach Enterprise Sales1
64Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only Recent proof points of our success in enterprise selling Premier OCIO Marquee Wirehouse • Landmark win displacing our primary competitor in wealth • Enterprise deployment of Workstations, market data and digital solutions Top 10 Global Bank • Full displacement of our primary competitor in banking • Deployment across the client’s global corporate and investment banking and credit risk teams • Replacing disparate internal systems across the enterprise • Addressing client’s whole portfolio view to effectively support multi-asset class investments and workflows Leading Global Asset Manager • Significant displacement of our largest PLC competitor • Enterprise deal across entire front-and-middle office for Workstations, analytics, managed services and data Leading Global Private Equity Firm • Large win to displace our main desktop competitor • Client selected FactSet on the strength of our deep sector and private market offering Top 5 Canadian Wealth Manager • Deploying proposal generation within FactSet Workstation • Partner solution powered by FactSet data on advisor desktops of all US wealth users at the client Risk Analytics Partner • Displacement of Workstation competitor with opportunity for further expansion • Enterprise deployment across research, operations, corporate and finance teams Leading Private Wealth Client • First sale of Conversational API in an enterprise-wide deal • Enables programmatic access to FactSet Mercury, our GenAI- powered knowledge agent, for use by the client’s advisors = Institutional Buy-Side = Dealmakers = Wealth = Partners & CGS Enterprise Sales1
65Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only Boosting retention by transforming our client-facing organization through technological investment and investment in our people Note: Figures as of FactSet fiscal year end August 31. • Focus on retention and renewals • Investment in tooling for customer success • Training and development of our people • Further investment in adoption-focused roles • Additional metrics to measure client sentiment • Generative AI to process proprietary CRM data to inform our GTM strategy and product roadmap • Repeatable and scalable retention playbooks Playbooks Institutionalizing repeatable playbooks for engagement and retention, which reinforce client satisfaction, trust, and loyalty Technology Investment in cutting-edge technology, to enhance our service capabilities and better enable us to engage at scale People Continued investment in our people. Roles focused on adoption of our complex product suite throughout the client lifecycle 95%+ ASV Retention, FY24 Improve Retention2
66Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only Executing on sales of new product offerings to drive increased new business and same-store sales Sell New Solutions Institutional Buy-Side Dealmakers Wealth Partners & CGS • Middle Office Managed Services and Data-as-a- Service • Portfolio Lifecycle GenAI Solutions (Portfolio Commentary, Security Explanation, IRN 2.0, PM Assistant) • Portfolio Manager Hub • Real-Time Data, Pricing & Reference Data, Benchmarks Data • Pitch Creator • Intelligent Platform (powered by FactSet Mercury) • FactSet/Irwin Offering for Investor Relations • Cobalt Portfolio Monitoring Solution for PE/VC • Deep Sector • Real-Time Data, Pricing & Reference Data • Conversational API • Intelligent Prospecting • Proposal Generation • Real-Time Data, Pricing & Reference Data • AI Partner Program • Vectorized, GenAI-Ready Data Bundles 3 AI-Powered Solution
Extension of the Workflow Roll out FactSet’s AI-driven solutions, including Pitch Creator, Conversational API, Portfolio Commentary, and FactSet Mercury, to drive greater expansion and value capture Tackle Erosion Programs focused on reducing erosion to drive significant impact on top-line growth Strategic Pricing Increased enterprise selling and introduction of new solutions based on a subscription plus overage consumption model to drive quicker time to market and monetization of growth Data Solutions Connected content utilizing our advanced and open infrastructure to meet the significant market opportunity across Real Time, Pricing & Reference, and Benchmarks Sales Specialization Increased specialization by firm type and workflow to enable deeper partnership with clients yielding further expansion opportunities Service Offerings New offerings such as DaaS and Managed Services to enable further efficiencies to reduce clients’ total cost of ownership and support Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only 67 We will continue to deploy our core execution strategies… …as we evolve our approach to enterprise selling
Client Centricity: Key Takeaways 1 2 3 4 Trusted client relationships reflected in our retention, satisfaction scores, and ability to grow both users and clients Preferred partner to our clients with deep knowledge of their workflows, a flexible platform, superior solutions, and high- touch service Proven execution as average size of deals increase across our market-leading franchise in Middle Office, Banking, and now Wealth Multiple growth levers to drive acceleration through expansion of existing clients, new business, and value capture 68Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only Note: Figures as of FactSet fiscal year end August 31. 1. Medium term outlook represents FactSet’s expectations as of November 14, 2024. Actual results may differ materially from expectations above. 2. Target average annual growth rate through FY28. MSD – HSD5% FY24 ASV Growth Medium-Term Outlook1,2 FactSet Organic ASV Growth
FactSet Investor Day 2024 08 Helen Shan, Chief Financial Officer The Future of Value Creation: Financials and Outlook
Consistent History of Growth High-Impact Performance Levers Targeted Investments Balanced Capital Allocation 1 2 3 4 Financials and Outlook: Key Highlights 70Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only
1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 71Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only Dot-Com Bubble 9/11 Brexit Great Recession Euro Debt Crisis Global Pandemic Supply Chain Disruption & Rising inflation • 44 consecutive years of revenue growth • 28 consecutive years of adjusted diluted EPS growth (every year since IPO) • 25 consecutive years of increasing dividend per share (every year since instituting dividend) • One of only 8 companies in the S&P 500 to outperform U.S. GDP growth every year since IPO in 1996 (almost 30 years ago) Proven track record of consistent growth through all economic cycles IPO Revenue Adjusted Operating Income Note: Figures as of FactSet fiscal year end August 31.
$920 $2,203 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 $305 $833 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 $4.96 $16.45 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 $247 $615 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 Highly recurring, 99%+ subscription-based revenue and robust financial model powers consistency in our results Revenues ($M) Adjusted Operating Income1 ($M) Adjusted Diluted EPS1 Free Cash Flow1 ($M) Note: Figures as of FactSet fiscal year end August 31. 1. See appendix for a reconciliation of these non-GAAP metrics to GAAP metrics. 72Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only
73Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only ASV drivers evolve with changes in mix of solutions and pricing strategies Workstation-Based Portfolio Management Solutions Data Subscriptions ~ 30% ~ 25% ~ 45% Medium Term • Solutions and enterprise contracts • User and workflow targeted packages • Pricing based on rate card and volume • Enterprise contracts • Individual and end-to-end solutions • Pricing factors include consumption, client portfolios, hosting needs and services • Solutions and enterprise contracts • Feeds, bundles, services • Pricing based on usage, intent, services ASV Driver Pricing Strategy Medium Term Outlook1,2 Note: Figures as of FactSet fiscal year end August 31. 1. Medium term outlook represents FactSet’s expectations as of November 14, 2024. Actual results may differ materially from expectations above. 2. Target average annual growth rate through FY28. 10% 26% 15% 22% 75% 51% FY14 FY24 ~10 Years Ago Today < $1B $2.3B H ea dc ou nt -B as ed En te rp ri se
74Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only Diversification in end markets and workforce provides flexibility and increased productivity Geographic Footprint (FY24) 10% 70% 26% 11% 64% 19% Revenues Employees +6% +5% +4% (5%) +4% (2%) % YoY% YoY Americas EMEA APAC Note: Figures as of FactSet fiscal year end August 31. 1. Major expense categories, excluding other expenses, acquisition-related intangible asset amortization and non-recurring items 2. Percentage of employees located in centers of excellence (COE), primarily located in India and the Philippines Productivity KPIs FY21-24 Change 25% 31%Salaries as % of Revenue (600 bps) FY21 FY24 69% 65%% Employees in COE 2 +300 bps FY21 FY24 1.5 1.7Employees to Client Ratio (11%) FY21 FY24 Key Expenses as % of Revenue1 5% 3% 6% 5% 7% 9% 48% 39% FY21 FY24 (900 bps) (200 bps) FY21-24 Change (100 bps) +200 bps People Technology Content Real Estate
Short Term Medium Term Long Term Expected Payout Period Investing in product and infrastructure to help drive earnings growth Innovate across workflows to maintain and build leadership Maximize the value of our data and technology ecosystem Deliver value to our clients as their enterprise partner of choice 75Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only Data and Product Investment Corporate FunctionsPlatform Infrastructure Real Time Private Markets/Deep Sector Funds Data Unstructured Data Fixed Income Managed Services FactSet Mercury/Intelligent Platform DaaS GenAI PLC Pitch Creator AI Partnerships Upgrade internal systems to ensure speed, security, and insights Enterprise AI Building Blocks
76Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only FY21 ~ $100M+ ~ $200M+~ 23% CAGR FY24 Data and Product Development Internal Systems Enterprise Hosting & Cloud Managed services Medium Term Outlook1,2 Upgrade Internal Systems to ensure speed, security, and insights Enable client solutions across Data, Product Development, and Generative AI Enable client workflows through Enterprise Hosting & Cloud Managed Services > 5% > 30% > 50% < 15% Enhance foundation with hybrid cloud strategy and cyber resiliency within our Platform Infrastructure ~ $300M+~ 15% CAGR 4% 51% 29% 16% 5% 29% 50% 17% Platform Infrastructure Investments in product and enterprise initiatives require continued growth in technology spend Note: Figures as of FactSet fiscal year end August 31. 1. Medium term outlook represents FactSet’s expectations as of November 14, 2024. Actual results may differ materially from expectations above. 2. Target average annual growth rate through FY28.
77Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only Medium Term Outlook1,2 Operational discipline should fund investments and margin expansion Leaner Operations Reduce growth rate in people and facilities • Automate and shift to lower cost locations • Upgrade internal systems • Redeploy to new from legacy 1 Scalable Infrastructure Bend technology growth curve • Leverage hybrid cloud strategy • Increase client self service • One single, comprehensive data model 2 Operational Flexibility Balance content and internal tech spend • Invest in cyber and disaster recovery • Increase proprietary content • Enhance internal data management 3 Note: Figures as of FactSet fiscal year end August 31. 1. Medium term outlook represents FactSet’s expectations as of November 14, 2024. Actual results may differ materially from expectations above. 2. Target annual margin expansion from mid-point of FY25 guidance on average through FY28. Figures represent percentage of revenue. ~150 bps ~100 to 125 bps ~25 to 50 bps each year Scale + Gross productivity Investments Margin Expansion
24% 6% 17% 12% 40% 78Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only Disciplined capital allocation framework drives value creation Sustained Organic Investment Return of Capital to Shareholders Disciplined Approach to M&A 1 2 3 Organic P&L Investment: annually reinvest ~100 to 125 bps of revenues Capital expenditures: targeting ~3.5% to 4% revenues Share Repurchase: targeting ~$250 to $300 million per year Dividends: targeting ~25% - 30% of net income Strategically aligned and financially accretive acquisitions to accelerate value creation Medium Term Goals Capital Deployed1 Last 5 Years (FY20 - FY24) ~ 30% Shareholder Return Reinvest ~ 70% R&D Share Repurchase Capex Dividends M&A Note: Figures as of FactSet fiscal year end August 31. 1. Capital deployed includes reinvestment (R&D, Capital Expenditures, M&A) and shareholder return (Share Repurchases, Dividends)
79Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only Returning shareholder capital through dividends and share repurchases Return of Capital to Shareholders ($M) $110 $118 $126 $139 $151 $200 $265 $19 $177 $235 FY20 FY21 FY22 FY23 FY24 $310 $383 $145 $315 $386 ~30% $0.6B $0.9B Aggregate Share Repurchases Aggregate Dividends Paid Average Dividend Payout Ratio1 Past 5 Years $1.5B Shareholder Capital Returned Note: Figures as of FactSet fiscal year end August 31. 1. Dividend payout ratio reflects dividends as a percentage of net income. 2. Share repurchases were temporarily paused due to the CGS acquisition. Share Repurchases Dividends 2
Strategic Filters Financial Criteria • Expands addressable opportunity in adjacent market • Fills strategic gap in our existing solutions offering • Accelerates speed-to-market vs. internal development • Augments talent and adds domain knowledge or critical IP • Immediately accretive to ASV and revenue growth • Accretive to margins over time (typically within ~ 3 years) • Opportunity to extract both revenue and cost synergies Capability/Talent Tuck-In Minority Investment Bolt-On Acquisition Scale Transaction Representative examples over the past 10 years, not exhaustive 80Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only Disciplined approach on M&A to support our strategy
81Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only Strong balance sheet and flexible capital structure Gross Leverage (Debt / LTM EBITDA) Capital Structure Management 1.1x 1.1x 3.2x 2.1x 1.6x FY20 FY21 FY22 FY23 FY24 Targeting to < 2.5x $1.4B+ available liquidity • $423M cash and cash equivalents (as of 8/31/24) • $250M availability under revolving credit facility • Additional $750M accordion feature available Committed to maintaining investment grade rating • Moody’s Baa3 • Fitch BBB+ Targeting to remain below 2.5x gross Debt / EBITDA • Returning to historical leverage prior to CGS acquisition • Growth in EBITDA provides additional debt capacity following CGS acquisition 13.9x Note: Figures as of FactSet fiscal year end August 31. 1. Acquisition of CUSIP Global Services (CGS) closed on March 1, 2022.
Thriving through change: diversified portfolio ensures sustainable growth Note: Figures as of FactSet fiscal year end August 31. 1. Medium term outlook represents FactSet’s expectations as of November 14, 2024. Actual results may differ materially from expectations above. 2. Target average annual growth rate through FY28. 3. Acquisition of CUSIP Global Services (CGS) closed on March 1, 2022. FY21-FY24 CAGR pro forma for contribution of CGS during the entire period. 82Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only FY21 - FY24 CAGR Medium Term Outlook1,2 DriversFY24 Growth Institutional Buy-Side 6% MSD3% Dealmakers 8% HSD4% Wealth 9% LDD • Business development • Home office • Analytics, AI and Data 12% Partnerships & CGS 3 7% MSD • Fintech and AI partners • DaaS and Analytics6% Organic ASV Growth by Firm Type: • Front Office • MAC capabilities • Managed Services • Next Gen banker offerings • Corporate and PE/VC • Intelligent platform
Through deliberate investments and targeted execution, we expect to continue to deliver solid organic growth Historical (10-Year Average) FY25 Guidance Organic ASV Growth Adjusted Operating Margin Adjusted Diluted EPS Growth ~7% ~ 33.5% ~ 13% 4% – 6% 36% – 37% 2% – 6% Drivers • Expansion and Improved retention • Competitive wins in Front Office, Wealth, and Data • Enterprise contracts and pricing • Leaner operations • Scalable infrastructure • Operational flexibility • Gross leverage < 2.5x target • Consistent capital return • Annual share repurchases: ~$250-300M Medium Term Outlook1 MSD - HSD 37% - 38% HSD - LDD Note: Figures as of FactSet fiscal year end August 31. 1. Medium term outlook represents FactSet’s expectations as of November 14, 2024. Actual results may differ materially from expectations above. 2. Target average annual growth rate through FY28. 3. Target margin by year end FY28. 83Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only 2 2 3
FISCAL 2025 OUTLOOK As of November 14, 2024 Organic ASV Growth1 $90 - $140 million (~4% to ~6%) Revenues $2,285 - $2,305 million GAAP Operating Margin 32.5% - 33.5% Adjusted Operating Margin 36.0% - 37.0% GAAP Effective Tax Rate 17.0% - 18.0% GAAP Diluted EPS $15.10 - $15.70 Adjusted Diluted EPS $16.80 - $17.40 1. Expected Organic ASV growth for fiscal 2025 relative to fiscal 2024. Beginning in fiscal 2025 we will report Organic ASV, rather than Organic ASV plus Professional Services. 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. 84Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only We reaffirm fiscal 2025 guidance of 4% - 6% ASV1 growth and 36% - 37% adjusted operating margin
Financials and Outlook: Key Takeaways 1 2 3 4 Multiple levers to accelerate growth: enterprise and bundled solutions, workflow value pricing, and operational efficiencies Smartly using capital for organic and acquired growth to drive shareholder returns Investment in GenAI, technology, and data to address market demands and increase productivity Expanded medium term targets to enhance value for shareholders 85Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only
Q+A FactSet Investor Day 2024 09
Closing Remarks Phil Snow, Chief Executive Officer FactSet Investor Day 2024 10
Investor Day 2024: Key Takeaways 88Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only Our open, flexible data and technology ecosystem drives innovation and positions us for the future Building on our market- leading franchises, we are further differentiating by building new AI-powered workflow solutions We continue to enhance our standing as the enterprise partner of choice for the world’s leading financial services firms Our business is strong and stable, with high retention, strong cash generation, and disciplined capital allocation 1 2 3 4
Appendix
Non-GAAP Reconciliations 90Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only Adjusted Operating Income, Margin, Net Income (in thousands, except for per share date) Note: Columns may not foot due to rounding FOR THE TWELVE MONTHS ENDED AUGUST 31 As Reported 2024 GAAP Operating Income $701,299 Intangible Asset Amortization 67,383 Sales Tax Dispute 54,048 Restructuring / severance 5,596 Asset Impairment 3,443 Business acquisition / integration costs 884 Adjusted Operating Income $832,653 As Reported 2014 GAAP Operating Income $302,219 Legal charge primarily from settling a claim 1,632 Incremental stock-based compensation 1,415 Adjusted Operating Income $305,266
Non-GAAP Reconciliations 91Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only Adjusted Diluted EPS (in thousands, except for per share date) Note: Columns may not foot due to rounding FOR THE TWELVE MONTHS ENDED AUGUST 31 2024 Diluted Earnings per Common Share $13.91 Intangible Asset Amortization 1.27 Sales Tax Dispute 1.03 Restructuring/Severance 0.11 Asset Impairment 0.07 Business Acquisition / Integration Costs 0.02 Income Tax Items 0.04 Adjusted Diluted Earnings per Common Share $16.45 2014 Diluted Earnings per Common Share $4.92 Legal Charge Primarily from Settling a Claim 0.03 Incremental Stock-Based Compensation 0.02 Income Tax Benefits (0.01) Adjusted Diluted Earnings per Common Share $4.96
Non-GAAP Reconciliations 92Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only Free Cash Flow (in thousands) Note: Columns may not foot due to rounding (Unaudited) 2014 2024 Net Cash Provided by Operating Activities $265,023 $700,338 Capital Expenditures (17,743) (85,681) Free Cash Flow $247,280 $614,657 FOR THE TWELVE MONTHS ENDED AUGUST 31
Non-GAAP Reconciliations 93Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only Business Outlook Operating Margin, Net Income (in millions, except per share data) 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. Fiscal 2025 (Forward Looking) Low End of Range High End of Range Revenues $2,285 $2,305 Operating Income $765 $749 Operating Margin 33.5% 32.5% Intangible Asset Amortization 80 81 Adjusted Operating Income $845 $830 Adjusted Operating Margin 37.0% 36.0% Net Income $598 $577 Intangible Asset Amortization 66 66 Discrete Tax Items (4) (3) Adjusted Net Income $660 $640
Non-GAAP Reconciliations 94Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only Business Outlook Diluted EPS (in millions, except per share data) Fiscal 2025 (Forward Looking) Low End of Range High End of Range Diluted Earnings per Common Share $15.70 $15.10 Intangible Asset Amortization 1.73 1.73 Discrete Tax Items (0.03) (0.03) Adjusted Diluted Earnings per Common Share $17.40 $16.80 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.
FactSet Hosts Investor Day 2024
FactSet is Harnessing the Power of AI to Supercharge Financial Intelligence and Enhance Client Workflows
Company Reaffirms Full-Year Fiscal 2025 Guidance; Announces New Medium-Term Outlook
NORWALK, Conn., November 14, 2024 -- FactSet (NYSE: FDS | NASDAQ: FDS), a global financial digital platform and enterprise solutions provider, today will host an Investor Day to provide an in-depth look into the Company’s strategic priorities and financial outlook, and also preview its new innovations and tailored workflow solutions.
“Our clients’ demand for connected, quality data to support financial decision-making has never been clearer,” said Phil Snow, Chief Executive Officer of FactSet. “As a trusted enterprise partner with a broad data and technology ecosystem, we are uniquely positioned to unlock value for our clients’ workflows to supercharge their financial intelligence and capture opportunities in a growing market.”
FactSet Investor Day 2024 will highlight:
•FactSet’s differentiated solutions and market-leading franchises: Through its flexible data, technology, and AI-powered workflow solutions, FactSet fuels critical decisions for the global financial community. FactSet products are supercharging workflows for clients, including 95 of the top 100 asset managers, approximately 75% of the top 50 global investment banks, and 100K+ advisor desktops.
•A large and growing addressable market: FactSet today has a total addressable market of $40B+ and through its open, multi-cloud approach enhanced with AI, FactSet is the enterprise partner of choice.
•Multiple growth avenues: FactSet’s growth strategy is focused on expanding and deepening client relationships; innovating with new products and technologies; enhancing AI and analytics capabilities; and increasing its footprint through core product offerings.
•Operating discipline and a strong financial foundation: FactSet is building on its proven track record of consistent growth through all economic cycles by maintaining a disciplined capital allocation framework of sustained organic investment, return of capital to shareholders, and a strategic approach to M&A to drive sustainable growth acceleration and value creation.
FactSet reaffirms its fiscal 2025 guidance and continues to expect:
•Organic ASV in the range of $90 million to $140 million
•GAAP revenues in the range of $2,285 million to $2,305 million
•GAAP operating margin in the range of 32.5% to 33.5%
•Adjusted operating margin in the range of 36.0% to 37.0%
•Annual effective tax rate in the range of 17% to 18%
•GAAP diluted EPS in the range of $15.10 to $15.70
•Adjusted diluted EPS in the range of $16.80 to $17.40
Please see below for a reconciliation of GAAP to adjusted metrics.
FactSet announces its new medium-term outlook:
•Organic ASV growth of mid-to-high single digits on average annually through fiscal 2028
•Adjusted operating margin of 37% to 38% by year end fiscal 2028
•Adjusted diluted EPS growth of high single digits to low double digits on average annually through fiscal 2028
FactSet’s Investor Day will include presentations and discussions from:
•Phil Snow, Chief Executive Officer
•Helen Shan, Chief Financial Officer
•Goran Skoko, Chief Revenue Officer
•Kate Stepp, Chief Technology Officer
•John Costigan, Chief Data Officer
•Kristina Karnovsky, Head of Dealmakers & Wealth
•Rob Robie, Head of Institutional Buy-Side
Webcast Replay
The event is by invitation only, and registration is required. Analysts and institutional investors interested in attending the event virtually or in person can request an invitation at factset.com/ID24. A webcast recording with accompanying slides will be available at investor.factset.com.
Forward-looking Statements
This news release 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,” "outlook," “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 release whether because of new information, future events or otherwise.
About Non-GAAP Financial Measures
Financial measures in accordance with U.S. GAAP including operating margin and diluted earnings per share 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.
Adjusted operating income margin and adjusted diluted earnings per share exclude acquisition-related intangible asset amortization and non-recurring items. The Company believes that these adjusted financial measures help to fully reflect the underlying economic performance of FactSet.
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 range | High end of range | ||||||
| Revenues | $ | 2,285 | $ | 2,305 | ||||
| Operating income | $ | 765 | $ | 749 | ||||
| Operating margin | 33.5 | % | 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 amortization | 1.73 | 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
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.
FactSet Investor Relations:
Yet He
+1.212.973.5701
yet.he@factset.com
Media Relations:
Megan Kovach
+1.512.736.2795
megan.kovach@factset.com