FactSet Beats Q1 Earnings On Higher Subscriptions, Sticks to Annual Guidance

On Thursday, FactSet Research Systems Inc (NYSE: FDS) reported first-quarter 2025 sales growth of 4.9% year-on-year to $568.7 million, beating the analyst consensus estimate of $565.13 million. 

Organic revenues grew by 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.

Adjusted EPS of $4.37 beat the analyst consensus estimate of $4.26.

Annual Subscription Value (ASV) was $2.27 billion. Organic ASV was $2.26 billion.

“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.

“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,” said Phil Snow, CEO of FactSet. 

Adjusted operating margin remained consistent at 37.6%. EBITDA increased 5% to $229.86 million

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.

The user count increased by 1,886 to 218,267 in the past three months, primarily due to an increase in wealth management users.

Annual ASV retention was greater than 95%. When expressed as a percentage of clients, annual retention was 91%.

FY25 Outlook: FactSet reaffirms its fiscal 2025 outlook. The company expects revenue of $2.285 billion—$2.305 billion, versus the $2.301 billion estimate, and adjusted EPS of $16.80–$17.40, versus the consensus of $17.17.

Organic ASV is expected to grow between $90 million and $140 million during fiscal 2025, with an adjusted operating margin guidance of 36.0%- 37.0%.

Price Action: FDS stock is up 0.60% at $475.88 at the last check on Thursday.

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