FactSet Earnings
FactSet has presented its financial performance for the first quarter of fiscal 2025, showcasing a consistent increase in revenues that reached $568.7 million, marking a 4.9% year-over-year growth. The company's strategic expansion in the wealth management, asset owners, and institutional asset management sectors contributed significantly to this uplift. Despite this growth in revenue, there was a slight decline in GAAP operating margins from 34.9% to 33.6%, attributed to increased amortization and professional fees.
Financial Metrics Overview:
| Metric | Q1 2025 | Q1 2024 | YoY Change |
|---|---|---|---|
| GAAP Revenue | $568.7 million | $542.2 million | +4.9% |
| Organic ASV | $2,258.8 million | $2,160.7 million | +4.5% |
| GAAP Operating Margin | 33.6% | 34.9% | -120 bps |
| Adjusted Operating Margin | 37.6% | 37.6% | No Change |
| GAAP EPS | $3.89 | $3.84 | +1.3% |
| Adjusted EPS | $4.37 | $4.12 | +6.1% |
FactSet Results
The company's earnings per share (EPS) on a GAAP basis slightly improved to $3.89, representing a 1.3% year-over-year increase. FactSet's adjusted EPS rose more significantly, with a 6.1% increase, reaching $4.37. These improvements reflect effective management strategies and cost controls. It is notable that while the GAAP operating margin saw a decline due to external financial pressures, the adjusted operating margin remained constant at 37.6%.
Revenue Breakdown
The breakdown of revenue across geographic segments reveals robust growth, especially in the Americas, which recorded a 5.2% increase year-over-year.
| Segment | Revenue Q1 2025 | Revenue Q1 2024 | YoY Growth |
|---|---|---|---|
| Americas | $367.2 million | $348.3 million | +5.2% |
| EMEA | $143.8 million | $139.6 million | +2.7% |
| Asia Pacific | $57.7 million | $54.3 million | +6.2% |
The U.S. leading the charge complements FactSet's strategic focus on tapping into the burgeoning wealth management sector. This trend is echoed across the Asia Pacific region which displayed the highest growth rate at 6.2%, indicating an expanding market reach.
Key Developments
Several noteworthy developments occurred during the quarter. FactSet witnessed a client base increase by 32, bringing the total to an impressive 8,249. Additionally, the total number of users climbed by 1,886, reaching a substantial 218,267, predominantly influenced by the wealth management market. The company maintains a superior annual ASV retention rate exceeding 95%, showing customer satisfaction and loyalty. Employee numbers also saw a modest rise, now totaling 12,575, indicating measured expansion in workforce capabilities. Notably, the launch of new solutions like IRN 2.0 and DaaS underline FactSet's commitment to enhancing managed services and client productivity offerings.
Comments from Company Officers
CEO Phil Snow highlighted the robust demand for FactSet's diversified solutions that contribute significantly to client efficiency. In parallel, CFO Helen Shan lauded the company's adeptness in executing its financial strategies, reinforcing FactSet’s growth trajectory and fiscal discipline.
Dividends and Share Repurchases
FactSet declared a dividend of $1.04 per share, amounting to a total of $39.6 million. Moreover, the company was active in its share repurchase programs, acquiring shares valued at $48.8 million, with $251.2 million still available under current authorization.
FactSet Stock Forecast
With the consistent improvement across core financial metrics and a positive trajectory in operational developments, FactSet's stock is poised for continued growth. The post-earnings announcement saw the stock rise modestly by 0.41%, bringing the last recorded price to $491.35. Analysts, considering the fundamentals and strategic advancements, might project the stock valuation to oscillate between $480 to $520 in the coming quarters. This forecast is reflective of strong financial health, continued regional growth, and innovation in service offerings, underpinned by a solid market capitalization of $15.82 billion.
FactSet's Q1 fiscal 2025 narrative is shaped by strategic achievements and forward-thinking initiatives, setting a resilient foundation for navigating future challenges and maximizing financial performance.
