FactSet Research Systems Inc (FDS, Financial), a global financial digital platform and enterprise solutions provider, announced its financial results for the first quarter of fiscal 2025, ending November 30, 2024. The company reported a 4.9% increase in GAAP revenues to $568.7 million, driven by growth in wealth, asset owners, and institutional asset managers. The press release was issued on December 19, 2024.
Positive Highlights
- GAAP revenues increased by 4.9% year-over-year to $568.7 million.
- Organic Annual Subscription Value (ASV) grew by 4.5% to $2,258.8 million.
- Adjusted diluted EPS rose by 6.1% to $4.37.
- Client count increased by 32, reaching 8,249.
- FactSet unveiled its Intelligent Platform initiative, enhancing its AI capabilities.
Negative Highlights
- GAAP operating margin decreased by 120 basis points to 33.6%.
- Free cash flow dropped by 56.4% to $60.5 million.
- Net cash provided by operating activities decreased to $86.4 million.
- GAAP effective tax rate increased to 16.5% from 15.2%.
Financial Analyst Perspective
From a financial analyst's viewpoint, FactSet's Q1 results demonstrate solid revenue growth, particularly in the wealth and asset management sectors. However, the decline in operating margin and free cash flow indicates rising costs and capital expenditures, which could impact future profitability. The company's strategic initiatives, such as the Intelligent Platform and acquisitions, suggest a focus on long-term growth and innovation.
Market Research Analyst Perspective
As a market research analyst, FactSet's performance in Q1 reflects its strong market position in the financial services industry. The growth in client and user counts highlights the company's ability to attract and retain customers. The introduction of new solutions and partnerships, such as the collaboration with J.P. Morgan, positions FactSet to capitalize on emerging trends in data management and analytics.
Frequently Asked Questions
Q: What was FactSet's revenue for Q1 fiscal 2025?
A: FactSet reported GAAP revenues of $568.7 million for Q1 fiscal 2025.
Q: How much did FactSet's adjusted diluted EPS increase?
A: Adjusted diluted EPS increased by 6.1% to $4.37.
Q: What is FactSet's outlook for fiscal 2025?
A: FactSet expects GAAP revenues to be between $2,285 million and $2,305 million, with an adjusted operating margin of 36.0% to 37.0%.
Read the original press release here.
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