Thursday, March 21, 2024

FactSet Earnings Call

Second Quarter Fiscal 2024

Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only

Forward-Looking Statements and Non-GAAP Measures

This presentation, and other statements that FactSet may make in connection with this presentation, contains forward-looking statements based on management's current expectations, assumptions, estimates, forecasts and projections about future events and circumstances. All statements that address expectations, guidance, outlook or projections about the future, including statements about our strategy, future financial results, anticipated growth, expected expenditure, product development, market position and trends, are forward-looking statements. Forward-looking statements may be identified by words like "expects," "believes," "anticipates," "plans," "intends," "estimates," "projects," "should," "indicates," "continues," "may," and similar expressions. These statements are not guarantees of future performance and involve numerous risks, uncertainties, and assumptions.

Many factors, including those discussed more fully in FactSet's filings with the Securities and Exchange Commission, particularly our latest annual report on Form 10-K and quarterly reports on Form 10-Q, could cause results to differ materially from those stated. These documents are available on our website at http://investor.factset.comand 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, organic revenues, adjusted operating income, adjusted operating margin, adjusted EBITDA, adjusted net income, adjusted diluted EPS and free cash flow. Forward-lookingnon-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 and in FactSet's earnings release issued on March 21, 2024, which are posted on www.factset.comunder the Investor Relations section.

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2

Agenda

  • Welcome
  • Business Update
  • Financial Overview
  • Questions and Answers
  • Appendix

Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only

Business Update

Key Metrics - Second Quarter 2024

5.4% 1

38.3% 2

$4.22 2

ORGANIC ASV +

ADJUSTED

ADJUSTED

PROFESSIONAL SERVICES

+

OPERATING

+

DILUTED

GROWTH

MARGIN

EPS

Driven by the strength of

Increased by ~130 bps YoY

Increased by 11.1% YoY

our recurring sales model.

due to higher revenue, lower

due to higher revenue, and

personnel expenses on lower

margin expansion, partially

bonus accrual, and higher

offset by a higher tax rate.

capitalization benefit partially

offset by higher bad debt

expenses.

1 LTM organic growth rate based on February 29, 2024. Annual Subscription Value (ASV) at any given point in time represents the forward-looking revenues for the next twelve months from all subscription services currently supplied to clients. Professional services are revenues derived from project-based consulting and implementation. Organic ASV excludes the effects of acquisitions and dispositions completed within the last twelve months and foreign currency movements.

2 Please see Appendix for a reconciliation of these non-GAAP metrics to GAAP metrics.

Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only

Key Operational Metrics

>95%

ASV RETENTION

ASV retained from clients over the last twelve

months.

No change versus 2023 | Q2

90%

CLIENT RETENTION

Percentage of clients retained over the last twelve months.

Down ~125bps versus 2023 | Q2

206,478

USER COUNT

Number of individuals accessing FactSet's

solutions.

11% change since 2023 | Q2

8,020

CLIENT COUNT

Companies subscribing to FactSet services with an

ASV greater than $10,000.

4% change since 2023 | Q2

Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only

ASV + Professional Services Growth Rates* - By Global Segments

$2,209M

Organic ASV + Professional Services

+5.4%

$453M

EMEA

$20M +7%

Pro Svcs

(12)%

$1,048M

AMERICAS

+9%

$557M $216M

EMEA ASIAPAC

+5%+6%

$1,415M

AMERICAS

+6%

$596M$600M

$813M ANALYTICSANALYTICS

RESEARCH+6%

+6%

$218M $181M

CTS WEALTH

CTS

+16% +6%

+16%+12%

  • LTM Organic ASV Growth Rate based on last twelve months as of February 29, 2024
    Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only Note: Amounts may not add due to rounding

We continued to deliver on our strategy: To build the leading open content and analytics platform that delivers differentiated advantage for our clients' success

S c a l e U p

O u r C o n t e n t

R e f i n e r y

Deep Sector is driving wins and renewals within banking, positioning us to increase market share

N e x t

G e n e r a t i o n

W o r k f l o w

S o l u t i o n s

Industry leading analytics and middle office solutions drove a key performance win as asset managers and asset owners rely on our portfolio lifecycle

Growing demand for cloud- native solutions contribute to real time deployments

C l i e n t

O b s e s s i o n

Generative AI is fueling innovation and development, allowing us to reimagine the client experience across workflows

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Financial Overview

Second Quarter 2024 Financial Results*

(in thousands, except per share data)

6.0%

6.0%

Revenues

Organic Revenues

2/29/24 $545,945

2/29/24 $546,130

2/28/23 $515,085

2/28/23 $515,085

7.5%

9.8%

Operating Income

Adjusted Operating

2/29/24

$181,942

Income

2/28/23

$169,250

2/29/24 $209,326

02/28/23 $190,721

47bps

130bps

Operating Margin

Adjusted Operating

2/29/24 33.3%

Margin

2/28/23 32.9%

2/29/24 38.3%

2/28/23 37.0%

7.1%

10.1%

Net Income

Adjusted Net

2/29/24 $140,940

Income

2/28/23 $131,593

2/29/24 $163,067

2/28/23 $148,114

8.0%

11.1%

Diluted EPS

Adjusted Diluted EPS

2/29/24 $3.65

2/29/24 $4.22

2/28/23 $3.38

2/28/23 $3.80

9.2%

Adjusted EBITDA

2/29/24 $218,111 2/28/23 $199,710

(17.2)%

Free Cash Flow

2/29/24 $121,881 2/28/23 $147,222

* Please see Appendix for a reconciliation of non-GAAP metrics to GAAP metrics.

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FactSet Research Systems Inc. published this content on 20 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 March 2024 14:53:02 UTC.