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Feb 28, 2023
FactSet Q2 2023 Earnings Report
FactSet reported an increase in GAAP revenues and organic revenues, with improvements in operating margin and EPS.
Key Takeaways
FactSet reported strong second-quarter results, with GAAP revenues up 19.5% to $515.1 million and organic revenue growth of 8.9%. The company's GAAP operating margin increased to 32.9%, and GAAP diluted EPS rose to $3.38, up 19.0% from the prior year. FactSet is updating its fiscal 2023 guidance, expecting ASV + professional services growth of 7% - 9%, adjusted operating margin of 34%-35% and adjusted diluted EPS growth of 8% - 11%.
GAAP revenues increased 19.5% to $515.1 million.
Organic revenues grew 8.9% to $469.5 million.
GAAP operating margin increased to 32.9%.
GAAP diluted EPS increased 19.0% to $3.38.
FactSet
FactSet
FactSet Revenue by Geographic Location
Revenue by Geographic Location
Americas Revenue
CapyFin.comEMEA Revenue
CapyFin.comAsia Pacific Revenue
CapyFin.com Forward Guidance
FactSet is updating its outlook for fiscal 2023. Organic ASV plus professional services is expected to be in the range of $145 million to $175 million. GAAP revenues are expected to be in the range of $2,080 million to $2,100 million. Adjusted diluted EPS is expected to be in the range of $14.50 to $14.90.
Positive Outlook
- Organic ASV plus professional services is expected to be in the range of $145 million to $175 million.
- GAAP revenues are expected to be in the range of $2,080 million to $2,100 million.
- Adjusted operating margin is expected to be in the range of 34.0% to 35.0%.
- FactSet's annual effective tax rate is expected to be in the range of 13.5% to 14.5%.
- Adjusted diluted EPS is expected to be in the range of $14.50 to $14.90.
Challenges Ahead
- Organic ASV growth deceleration of 100 basis points when compared to previous guidance of $150 million to $180 million, due to an expected decline in ASV growth in the core business during the second half of the fiscal year.
- GAAP operating margin is expected to be in the range of 29.5% to 30.5%.
- GAAP diluted EPS is expected to be in the range of $12.45 to $12.85.
- Given the risk factors, uncertainties, and assumptions discussed in the release, actual results may differ materially.
- 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