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FactSet
🇺🇸 NYSE:FDS
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May 31, 2023

FactSet Q3 2023 Earnings Report

FactSet's Q3 2023 earnings were reported, demonstrating revenue growth and strategic cost management.

Key Takeaways

FactSet reported an 8.4% increase in GAAP revenues to $529.8 million for Q3 2023. The company's GAAP diluted EPS increased by 79.3% to $3.46, and adjusted diluted EPS rose by 0.8% to $3.79. FactSet is updating its fiscal 2023 guidance, with an expected adjusted operating margin of 35%-36% and adjusted diluted EPS growth of 10%-13%.

GAAP revenues increased by 8.4% to $529.8 million.

Organic ASV plus professional services grew by 8.0% year over year.

GAAP operating margin increased to 32.5%, up 1,260 bps year over year.

GAAP diluted EPS increased by 79.3% to $3.46.

Total Revenue
$530M
Previous year: $489M
+8.4%
EPS
$3.79
Previous year: $3.76
+0.8%
As Reported ASV
$2.1B
Previous year: $1.9B
+10.5%
Organic ASV
$2.1B
Previous year: $1.8B
+16.7%
Total Users
187.85K
Previous year: 173.7K
+8.1%
Gross Profit
$288M
Previous year: $266M
+8.3%
Cash and Equivalents
$487M
Previous year: $527M
-7.7%
Free Cash Flow
$193M
Previous year: $177M
+9.1%
Total Assets
$4B
Previous year: $4.07B
-1.7%

FactSet

FactSet

FactSet Revenue by Geographic Location

Forward Guidance

FactSet is updating its outlook for fiscal 2023. Organic ASV plus professional services growth is expected to be in the lower end of the range of $145 million to $175 million during fiscal 2023. Adjusted operating margin is expected to be in the range of 35.0% to 36.0%, a 100 basis point increase at the midpoint from the prior guidance of 34.0% - 35.0%. Adjusted diluted EPS is expected to be in the range of $14.75 to $15.15, a $0.25 increase at the midpoint from the prior guidance of $14.50 - $14.90

Positive Outlook

  • Organic ASV plus professional services growth is expected to be in the lower end of the range of $145 million to $175 million during fiscal 2023.
  • GAAP revenues are expected to be in lower end of the range of $2,080 million to $2,100 million.
  • Adjusted operating margin is expected to be in the range of 35.0% to 36.0%, a 100 basis point increase at the midpoint from the prior guidance of 34.0% - 35.0%
  • FactSet's annual effective tax rate is expected to be in the range of 14.0% to 15.0%, a 50 basis point increase at the midpoint from the prior guidance of 13.5% - 14.5%
  • Adjusted diluted EPS is expected to be in the range of $14.75 to $15.15, a $0.25 increase at the midpoint from the prior guidance of $14.50 - $14.90

Challenges Ahead

  • GAAP operating margin is expected to be in the range of 29.0% to 30.0%, a 50 basis point decrease at the midpoint from the prior guidance of 29.5% - 30.5%
  • GAAP diluted EPS is expected to be in the range of $12.25 to $12.65, a $0.20 decrease at the midpoint from the prior guidance of $12.45 - $12.85

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

View FactSet