FactSet exceeds expectations and looks confidently ahead

FactSet Research Systems recorded a revenue increase of 4.9 percent in the first quarter of 2025 compared to the previous year, reaching 568.7 million USD, thus surpassing the analysts' expectations of 565.13 million USD. Organic revenues grew by 4.7 percent to 567.7 million USD in the same period. Major growth drivers included areas such as asset management, institutional asset managers, and asset owners. The adjusted earnings per share amounted to 4.37 USD, exceeding the estimate of 4.26 USD. The Annual Subscription Value (ASV) was 2.27 billion USD, with the organic ASV recorded at 2.26 billion USD. Chief Financial Officer Helen Shan highlighted the company's solid operational performance, attributed to disciplined cost management and the implementation of growth strategies. CEO Phil Snow emphasized the strength of the diverse portfolio of innovative solutions, which provides value to clients. The adjusted operating margin remained stable at 37.6 percent, while EBITDA increased by 5 percent to 229.86 million USD. The number of customers rose by a net 32 to 8,249 by November 30, 2024, driven by partnerships with private equity and venture capital firms, as well as in the asset management sector. The number of users increased by 1,886 to 218,267, mainly due to growth in asset management. The annual ASV retention rate was over 95 percent, with customer retention at 91 percent. For fiscal year 2025, FactSet confirms its forecast with expected revenues of 2.285 billion to 2.305 billion USD. The adjusted earnings per share are expected to be between 16.80 and 17.40 USD. Organic ASV growth is projected to be between 90 million and 140 million USD, with a forecasted adjusted operating margin between 36.0 and 37.0 percent.