FactSet Q1 2023 Earnings Report
Key Takeaways
FactSet's Q1 2023 results showed strong top-line growth, with GAAP revenues up 18.9% and organic ASV plus professional services up 8.8% year-over-year. The company's content and technology investments have enhanced its competitive position, driving sales in Analytics & Trading and Research & Advisory solutions. Despite macroeconomic uncertainties, FactSet reaffirmed its fiscal 2023 outlook.
GAAP revenues increased by 18.9% to $504.8 million compared to Q1 2022.
Organic ASV plus professional services grew by 8.8% year-over-year, reaching $1.8 billion.
GAAP operating margin improved to 34.1%, up 517 bps year over year.
GAAP diluted EPS increased by 26.2% to $3.52 compared to the prior year.
FactSet
FactSet
FactSet Revenue by Geographic Location
Forward Guidance
FactSet reaffirmed its outlook for fiscal year 2023, originally provided on September 22, 2022.
Positive Outlook
- Organic ASV plus professional services is expected to increase in the range of $150 million to $180 million during fiscal 2023.
- GAAP revenues are expected to be in the range of $2,100 million to $2,115 million.
- GAAP operating margin is expected to be in the range of 30.0% to 31.0%.
- Adjusted operating margin is expected to be in the range of 34% to 35%.
- FactSet's annual effective tax rate is expected to be in the range of 12.5% to 13.5%.
Challenges Ahead
- Given the risk factors, uncertainties, and assumptions discussed in the release, actual results may differ materially.
- GAAP diluted EPS is expected to be in the range of $12.70 to $13.10.
- Adjusted diluted EPS is expected to be in the range of $14.50 to $14.90.
- Both GAAP operating margin and GAAP diluted EPS guidance do not include certain effects of any non-recurring benefits or charges that may arise in fiscal 2023.
- FactSet does not intend to update its forward-looking statements prior to its next quarterly results announcement.
Revenue & Expenses
Visualization of income flow from segment revenue to net income