Q3 2024 Factset Research Systems Inc Earnings Call Transcript
Key Points
- FactSet Research Systems Inc (FDS) achieved organic ASV and professional services growth of 5% in the third quarter.
- Adjusted diluted EPS rose to $4.37 for the quarter, reflecting a 15% increase.
- The company maintained a high overall ASP retention rate of over 95% and a client retention rate of 90%.
- FactSet Research Systems Inc (FDS) continues to innovate with new products like the Portfolio Commentary and PM Hub, which have received positive client feedback.
- The company has a strong free cash flow of $217 million for the quarter, up 13% from the same period last year.
- FactSet Research Systems Inc (FDS) faced challenges due to clients tightening budgets and cost rationalization, leading to extended decision-making and lengthened sales cycles.
- The third quarter is seasonally the weakest for the company, impacting overall performance.
- The Credit Suisse-UBS merger resulted in cancellations that accounted for approximately 30 basis points or two-thirds of ASV deceleration quarter over quarter.
- The company experienced slower growth in the EMEA region, with an organic ASV growth rate of only 4.4%.
- Despite the positive outlook, the company had to lower its annual organic ASV plus professional services growth guidance to between 4% and 5.5%.
Good day and thank you for standing by. Welcome to the third quarter FactSet earnings call. (Operator Instructions) Please be advised that today's conference is being recorded.
I would now like to hand the conference over to your first speaker today, Ali van Nes, Head of IR, Investor Relations. Please go ahead.
Thank you, and good morning, everyone. Welcome to FactSetâs third fiscal quarter 2024 earnings call. Before we begin, the slides we referenced during this presentation can be found through the webcast on the investor relations section of our website at factset.com. A replay of today's call will be available on our website.
After our prepared remarks, we will open the call to questions from investors. The call is scheduled to last for one hour. To be fair to everyone, please limit yourself to one question. You may re-enter the queue for additional follow-up questions, which we will take if time permits.
Before we discuss our results, I encourage
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