FactSet Research Systems (FDS) 19 Dec 232024 Q1 Earnings call transcript

Good day, and thank you for standing by. Welcome to the FactSet Q1 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 speaker today, Ali Van Nes, SVP IR. Please go ahead.

morning, good and you, everyone. Thank First Welcome XXXX Call. Quarter to FactSet's Earnings Fiscal

website available on will on we begin, this our webcast the of today's website. we the reference available through replay on and our currently section Relations call Before our website. slides of Investor via the found during at are factset.com be be presentation A can phone and

X questions hour. remarks, we be one to will from to investors. prepared call scheduled to The our everyone, After last to the for To fair yourself please is call open limit question.

for You may reenter follow-up we the permits. queue will time take additional if which questions,

Before Slide the non-GAAP financial we to on X, listeners which all measures. explains use of of results, discuss and I the encourage statements notice review the legal risks our forward-looking

Forms please and actual cause forward-looking to to Additionally, a factors risk discussion that statements. XX-Q our those XX-K from could refer of differ materially results for

discussions measures. include Our will slide call and on presentation this financial non-GAAP certain

to comparable today. For presentation earnings earlier issued measures, appendix GAAP release and in most the the in reconciliations to such are our measures the directly

are today Huber, Officer; and Snow, Financial Officer. me Joining Chief Chief Phil Executive Linda

Q&A I Karnovsky, over be We Officer; of Kristy Shan, for Snow. by Chief Phil to will call. portion the Product Chief joined and today's now turn Officer, discussion Revenue Helen will also the

diluted year-over-year, adjusted quarter, the you, organic Ali, delivering Thank operating and of ASV by good margin for an joining we adjusted grew first X.X% XX.X%. professional morning, today. In $X.XX Thanks us of everyone. plus and services EPS

as proof strategy closed that as for points our macro marquee remain even deals conditions we quarter, challenging. X This long-term serve

U.S. a large a wealth major firm we where displaced was competitor. first win at The a

XX,XXX by deal, count increased seats. of our result more this a As user than

a our platform of significant win The of portfolio managers, asset largest the highlighting second and life open the solutions. strength one cycle U.S. at was trading

near-term our XX remained client last greater to was XX%. clients logos. than with since this remained net X,XXX continued Nevertheless, retention layoffs budgets September, restricted cycles to in volume and ended geopolitical sales We and challenging Client XX%, quarter due and have new uncertainty. forecast. our earnings deal-making almost call ASV retention lower lengthen

recent our we top growth to So to of X% XXXX Reserve $XXX be line macro revising reflect are the Federal $XXX positive commentary million environment, fiscal ASV the midpoint. guidance for at while growth may million the or

in a will cost the reduction and deep in program quarter also such sector as our accelerate allow This second strategic to time 'XX. implementing real investments investments. be of us multiyear program We will AI support FY initiatives our and

with to We costs review delivering Linda personnel-related expect operating range about more the variable and this call. within later in costs XX.X%. say to of guidance original XX.X% adjusted the margin will goal our of

wealth with as by weaker results other hiring managers large now Americas' Turning basis driven X.X%, Growth a accelerated asset softer this win the business. by year compared for demand outside performance to well our to mainly demand quarter quarter the in prior banking solid Data parts of in for over the the as growth Americas and to was region. Solutions, points net offsetting wealth, lower led ASV workstations ago. XX and where of

U.K. a growth in to X.X%, markets In due to and our core organic slowdown in buy-side decelerated EMEA, mainly the ASV France.

cycle. are headwinds. offset planned Higher in margin clients partially and these for to and projects Our reduced delays Solutions experiencing led which Data pressures, revenues demand sales slower

marquee firm layoffs. deal earlier. organic From we by X%, a seasonal mentioned solid ASV to In type partially banking delivered accelerated I driven with Asia quarter Pac, the most by due wealth with perspective, owners, asset compared of gains last offset growth the

broader the to displace at momentum, continued opportunity C-suite firms point several remains limited recovers competitors. to ongoing visibility the until pipeline wealth While market conversations

we rate equity private in at hiring the logos Churn lower led new to and added we in year. dealmakers, erosion corporate not banking. saw For last and seasonal but

a managers institutional asset On workstation cutting at deceleration reductions side, buy headcount institutional and cost the sales. in caused

For asset hedge owners further dampened and funds, cycles results. elongated sales

in growth cancels Solutions XXXX with history, and the with partially and across analytics position. partners the Finally, erosion. new higher in XX-year first included drove of increase, quarter was product Over releases universal in driven market in fiscal regions. These business flat of retention offset Fundamentals XXXX. positive our FactSet and by Overall, FactSet's the have new price strong portfolio sales screening Data XXXX, effect XXXX

Last added release model-based to information, Mercury next of and uses a the language FactSet Office. Users any supporting steps. with is conversational language natural delivered provide knowledge then can FactSet interface. also large agent. and our we It chat ask company which context to also Microsoft prepared language, beta week, is AI natural for this Mercury, using suggest list new into request

preview is product a Mercury FactSet of Explorer, part program. FactSet

we buy the quarter, working reviews last to are our AI-enhanced wealth and We it AI side These many clients' of summaries, received leading institutional which clients first highlights on Also, Explorer and offer that improve positive clients. our users. generative our just new are use to banking workflows will efficiency. transcript released and from soon with will

the last and And life of banking sector driving wins these is along quarter's management. investments work initiatives, including asset deep big continues growth, in with workstation these and cycle. real AI the and multiyear time, portfolio wealth on Each

fast private the middle our market. our is both market Solutions Data by the of loan size leveraged is growing credit well analytics. office is and and Finally, served almost It the

performance from the FactSet's assessments, I remain can of high-value the of and products credit marquee opportunity Cobalt for ahead monitoring. We benchmarking strong, fund interest our to be for portfolio by firms Demand and our credit increased and this can private fixed in strategy global our and our summary, consolidating confident I our example, platform. For In extend private also us. optimistic business, health to capabilities am open about remain quarter monitoring. demonstrated wins used risk income

to our Linda detail. discuss to first quarter over more in it turn now performance I'll

Thanks, Phil, everyone. and hello to

and this ASV X%. will organic release exceeded our share I from fiscal As performance. revenue QX quarter details morning, now additional first our on growth you've seen press

GAAP compared included end of to noted, our adjusted Ali the our release. is As press a metrics at reconciliation of

few observations a on First, conditions. macro

Wednesday, decided Fed's rates year. target. the the across rate curve. Federal Reserve remains the the hold but X.XX signaled higher point to than rates has next Equities rallied Inflation cuts fell constant Last X% as and eased, news on yield

it up. this was will pick time and markets deal to helpful, While news for capital take activity

later As than recovery September anticipated fiscal Phil XXXX in mentioned, will expect guidance. that come we year we our market

movements, any $XXX higher million, increased For over data. acquisitions and wealth last foreign increased X% due and the revenue from sales the dispositions months and increased X% sales to to to quarter, million. GAAP excludes which exchange Organic impact revenue, $XXX of XX

EMEA grew geographic organic and our Americas, For revenues X% segment, X% in almost Pacific. Asia X% in in the by

operating Turning professional the royalties. XX higher increased X% GAAP expenses. to previous operating year, $XXX fees, This Compared to expense, basis increased to GAAP year-over-year due by million, costs to costs, and higher personnel approximately facilities and to now expenses. points technology-related a driven decrease expenses by in technology margin employee by partially was XX%. offset

salaries representing our expense, adjusted consistent to basis, drive driven Employee with primarily year-over-year. to by expense technology in outlook. medium-term We've which invest due an revenue, XX% existing for costs X%, with increased growth about year-over-year, grew technology employees. grew now primarily technology continued operating to On of increased X% X% expenses

first of variable lapping to XXXX as well expenses. costs XX% content of quarter due in increased accrual onetime data fiscal release as fee Third-party the higher

Finally, efforts our year-over-year in resulted right size real in our continued X% footprint facilities to decrease estate a expenses.

and the driven previously by expenses. by T&E adjusted margin XX to Looking basis mentioned lower decreased at expenses, technology XX.X%, points operating by professional margin, services partially offset facilities, higher

As always, an expense walk you'll presentation. in operating earnings of from revenue income appendix to today's the find adjusted

XXX SG&A to lower services expenses XXX year-over-year as about points costs. points revenue in and basis fees, last on percent XXX decreases professional to of year expenses. and on than lower was GAAP GAAP a basis due on was an adjusted higher As basis basis basis, This was revenue, a cost technology of our basis. on a personnel and due and about higher And points a XXX largely adjusted points basis facilities percentage an about of personnel basis

now Turning tax. to

year's related due for to partially Our due stock foreign the credits. increase exercises tax primarily restricted of and tax compared foreign rate XX.X% XX.X%. a pretax income rate rate, benefits option to offset remainder quarter to higher increase was tax last stock of The was the to higher vesting. lower by This was and

rate. Turning offset tax by by now to margin $X.XX to EPS revenue EPS. versus a partially X.X% this the an GAAP adjusted rate. growth, revenue was EPS and partially higher driven basis, increased X.X% higher This higher margin driven quarter to and $X.XX $X.XX, by offset expansion, a compression year. increased prior tax On by in

operations XX% This nearly million add-backs. period over same for tax which last due $XXX significantly increased from by higher greater the was as year-over-year, million, less EBITDA quarter, was the define increase an cash and generated million income due collections. year. activities, was cash finally, year-over-year net higher $XXX $XX higher we operating cash flow, capital to income X.X% net cash to driven from spending, higher free up which And of

Turning share repurchases. to

We we at continue value buyback and repurchases quarter, ratably million million disciplined of long-term to program purchases of target We our intend the remain during returning XXXX spread For share in throughout our XXX,XXX repurchased an year. fiscal XXX shareholders. the to a $XX.X average of with price to shares $XXX.XX. for our committed

repurchases, we returned $XXX.X last to over XX our share Combining the million our and months. dividends shareholders

for to earlier, in XXXX. recovery than revised turning we As for guidance quarter expect a our fiscal year when dividend reminder, guidance as the by we Phil later XXXX. anticipated fiscal to that gave of in per mentioned we first the share And the happen $X.XX XXXX, market finally, third also will increased fiscal our XX%

to X% X% guiding down guidance. of million Given from this our at incremental we growth million, to growth plus view, original ASV growth $XXX $XXX reflecting revised services organic the are professional midpoint

expected half and points headwinds we in revenue issued is basis ASV the of year, be revenue the lagged to deceleration $X.XX the the from Given At about are timing XX expected billion to guidance. in our our fiscal growth previously to first also approximately of midpoint, billion. of lowering $X.X a ASV range X%, the

reduced XX%, operating our is down which We've to to to GAAP XX.X% guidance XX.X% margin XX.X%. from

However, of it to margin this expansion. XX.X%. XX.X% adjusted guidance have not continued operating noted of should points the At our provides basis XX margin we be changed midpoint, that

we growth. our sustainable margin adjusted met of investments operating to continued to drive have top While margin expansion XX%, medium-term committed with already outlook are we balancing line

by also to at rate reduced guidance the XX.X% which noting effective finally, and midpoint. a that expected adjusted guidance growth X.X% to midpoint tax has worth from $XX, is range $X.XX is It $XX.XX to been the and XX basis represents EPS points at from our XX.X%. reduction to

we strategic execute investment As Phil grow to top to mentioned, support continued expense management line. to our disciplined

a in $XX include take to we million to expect confident and areas expense charge for Accordingly, quarter Focus of $XX second uncertain our fiscal environment, Despite variable personnel-related we costs. XXXX. in long-term million growth. the reduction remain the both

diverse and price interest a products. are in We seeing have pipeline increased realization improved our and

addition, our downside In contracts market. uncertain provide an us enterprise markets protection diverse with end and in

we result, are confident future. for are we a As that well positioned the

are questions. ready Operator? We for now your

Our Wells first Weber Fargo. Instructions] line comes from Seth question [Operator from the of

little just the guess I deal ask macro the getting this the right the feel of falling just updated customers outlook. your about on of are pipeline? a pushed just clarity out bit do more while on like all you talk I to to you Can smaller? to whether just pricing wanted deals getting the Or environment? try -- Any sizes really side? navigate pressure kind Or is get

Phil. to sure going few Helen say more then and words, I'm I'm a thanks. detail. Seth, It's has

around had be I always to We side. QX. when predict to think, we is a great weaker had wealth originally QX a a good there market than to And clearly, turn going it's the we sentiment looks on little win anticipated. bit hard So essentially.

optimistic still a of usual, QX. halves. have we about as two So And very we're tale

their the terms the I clients, So they're in are of at looking in headcount. really have do product, market think closely Obviously, some competitive to we budgets. very well, their the facing own strategy, headwinds the just we positioning but

can a for to Yes. question. add Thanks the And little maybe I that. bit

hiring. been said, of are has just the the similarly that really Phil a budgets the and differentiator events Right that there has and do I But impacting and total as for and feeds. middle strong office office offerings now, So cost and data exogenous us. continued been demand for think are ownership for data our middle timing services

the price a pricing So XX what lower changed from XX of me for down days then spend. coming that's points delayed as part look to try and impact from basis playing at and XX-some bit view XX let you. basis definitely that impact coming what from ago, decisions dynamic see about from being I higher erosion. some realization. We would out. pressures points from we the points that around a We're basis break seeing That's in

seeing when that into And quarter. that We're coming that exactly makes to more to fourth it from gauge fruition. the bit little a perspective, will of that tougher come

not seen a of have We fallout. lot

that again the about our of us business, strength helps timing the but So think necessarily not of it.

If the the get way about can weaker but seasonal for it's hiring. firm into to reduction by And is difficult dealmakers, will half hires, we we half, is very know, type, at you until the you banking. of net which think as from about it now we largely look come see right second it tell

and is seeing cost we're opportunities in actually rather lastly, From of hiring there and a of to very delayed but strong seeing the side, slowdown take decisions. realization on what on look good those was that's erosion total. -- the then great figure, win the bit about. But longer There, some strength, XX% adviser higher like firms. take else to rationalization due is And come the at also happening We're X-plus a losses Wealth on then cost seeing if we're buy about Wealth that of our I smaller mentioned, in this some quarter. side a

in as the competitive pipeline, conviction we so range and change the would go our back are or back whether improvement into all midpoint, We in still capital into higher would put investments hit would flight things determine we've higher and range as we think that markets can that such large high end investment path see opportunities higher have X-figure And got those banking in see that the to the that technology, hiring. seasonal the flow a we drive well. more of higher us deal on in end hit number not our X- then a and revised of

gives sense a hopefully, between So our that what delta you the drives of guidance.

of from the line Our Morgan from comes Toni next question Kaplan Stanley.

a you're is flows price. for I some increase Helen, that what's mentioned you was I for sort how in the I of list bit and guess, upcoming calendar your talk the know, price through could about the implementing hoping year. through? you just But price little that expectation increase difficulties what passing

Thank sure. Yes, Toni. you,

our April. done -- Jan We right. You're on is see we'll the that Americas in come then X through and international,

quite improvements the actual we've not everything interestingly, well. made have we now, we rate we contracts. enhancements have it. price on pushing go understand based cards, increase per increased. What off clients increase So the is through not They pretty the of we seen In until up do And an understand back annual words, are price frankly, we've the made. They se. and our other

erosion then we're realization list, see a price other bit result. some from perspective, comes that the down The shift. of And seeing clients we through opportunity more issue taking perhaps as have also that in we their a little go review words, a some a of so are to is from

of We have realization that about price approve we X in lower than example, point QX, on are and a that's some for lower to kind driving bit of deals that delta. saw our

received been expect far price but to we be the new annual deals. in line with increase so competitive, especially seen in actual pretty has to to -- we've So the what continue And on past. have much

question of Our Kramm line UBS. from comes next Alex from the

bit was more your you of little here. talking the outlook. biggest bit the focus quarter in detail, about Maybe to said a little But that second short-term a change

think think million last $XX was that quarter the when So organically. look million pricing. I I $XX you added of And in at year, I

basically then a quarter I fairly think are including should going second saying of pricing you about So lot you consistent, you would elsewhere? may but actually have firm? how be specifically my negative there's on, a know Or things at because the

for thanks question, for your Thanks Alex, it's specifics. Helen. and the

on your of on So points. the you've nail the hit number a head

very year, last QX. had yes, we a So strong

bit year, last price than rate actual a changed this increase lower little so year. annual card, while is And we've our not the

of is the that so So part you're on spot there. reason,

do other is that couple or a material of The anticipated we know headwinds.

Suisse the impact and the the of UBS there. Credit downsizing is by that One acquisition occur of

conservative and to Now that's material bit but be year-over-year, little a our that's much we where impact rate. going a will more pretty QX, growth there, weak QX might growth we have to the see a

Our the next question from of Alwy Bank. from Deutsche Faiza comes line

that mentioned. up savings follow to wanted I cost you on the

can should you that general, how about just your are? little And as do investments a in the year? think it your sort flexibility more priorities bit to of of we we those flexibility how Linda, about So relates about maybe you what and and maybe, go level savings the think EPS around talk as of through timing

to thinking what reduction are midpoint million we at of yes, it Faiza, the have through means $XX in revenue.

intention offset XX.X% would to we and obviously, we about like midpoint. at is So it to adjusted operating where that said margin hold our

talked to expenses. the call. will details which about earnings So adjust we've have We've a more charge, taking got our -- second quarter in on we

year So if will. that's half at mark, you the

So million of we're shooting And for cost we're so $XX-ish about million at cuts. $XX or cost looking in cuts.

your you variable thing look is is easiest first costs. one T&E. The The do at

sort $X bonus at, we're million to $X sort also our so Professional there. calculation. million $X is call call cut then million $X looking to million looking of of total. of a bucket another looking services we're that So one in that at million, $X at And we're

get to that would well, bonus $X-ish down down year. as until don't the we've but the come we about end maybe pool taken of our we guidance a a million, will bit So just bit. our know And expect we

we've probably million which million lean reduction through be working We're So and personnel million. that about talked headcount $XX to total more charge, a about of would now. a toward $XX that And right then would thoughts. $XX

have We decisions on not that. any final made

very course, investment be But toward revenues. make of a eye into bit. in about to us, sure holding we back our funding, our that line process talking has And to which with be handled particularly want very, expenses AI, an to important with given bring incredibly we we'll which carefully is that our

before those we third-party if last in at at audit this quarter they're you we flat bucket, really costs, data for a bit up release Now about talked first a the look year, because you about year. but look our had if good our lapped will be --

estate we've in pretty right $XX taken And to to at if real real our our costs, look footprint. close size you million charges estate

So big the will expense more on up. costs flat coming for a that. also X bit company We've software, talked This as talked through more of and drivers actually that amortization software be more down Technology tech one, about we've we're to a costs are lot building about, also technology cloud those is a year-over-year. because and our costs, third-party going purchases.

Footnote If with watch AI, there Please may the cloud expense carefully. do trying Kristy go team that on what up. for cloud expense. and successful they're are to

carefully, us. for We have of an that area that's investment to watch but important

on which we'll leaves our which keep base. that, people, So our eyes XX% is expense about of

sure enough trying do would that for in about I probably going place detail. the what everyone to we're we're going forward. So make have provide And got to we've to right think

a it first would sort of to of in the of bit for come might up the move as first through And neighborhood result the for the jump the a to tends bit higher the through terms to margin would out for as yes, quarter. we flattened quarter. year. rest year. a In And see $XXX expect be million of our then We off we quarter. the that charge $XXX the of We second million expenses, ramp put up the

sort at you normal the So that trend FactSet. see of

I that's So helpful your that's question, really of information. a appreciate lot hope Faiza. and

of Our Patnaik comes next from question Manav from Barclays. the line

Usually, pressures, there's I to these cetera, when talk on just of as the discussion. cost follow lot around et times have wanted up a kind budget well. of vendor consolidation macro of pressures, you

there's hoping you hoping, just end? you lower seeing of opportunities opportunities are business the So any terms Or winning that. because I of could some maybe Just from M&A address that? maybe in was

the opportunity. question. certainly for Phil. It's thanks seeing are Manav, We

with So through as uncertainty, who we FactSet it's typically a our to and trust go work with want market opportunity clients for periods of us. do these more us to always great

an has suite conversation become more our product that's even So expanded. sophisticated as

a drive push And feels direction. there's just just in weeks, where big the savings now to to it a cost our of situations heard in couple encouraging top-down very more last save really few of like appliance at I've the --

to encouraging is that So me.

think a there of generative our platform, users. choice was some our based anchor for our choice still to partner our firms, an given I lending we are in bit and really But approach our at And on open investments AI strategy. clients there of well. is

today long in firm either about just of than just this with go our feel and or a position. time happy overall, on good FactSet think period to us in shape. I'm in type this of I and competitive long-term So markets, you. uncertainty type, the have for more a really we're optimistic thing prospects through I I by timing I it's then getting firm and some time the other call think through the But

bit, Maybe little Manav, just said. I just add can just along Phil what a

exercises, internal, reporting dollars quarters to asked can't tools and we're be budgets or was they that provide for and what like going their being well on been talking and clients, clients, which he enough flat. why scale. are more or some And have just are current several and through not their their can they're clients people of that's yet positioned most So front. is processes, that's more rightsizing so to happening about, technology sophisticated But

the And entire replace, and platform can replacement pieces, of our into advantage but from that's well. why piece worked that's as need pieces, open also workflow perspective, higher you do an not

are. talking the activity which what goes So lot timing was of is that a good is really just there's Phil about, to complex because how they and question really of

America. question comes from Balsky line Bank of the Heather next of from Our

about how versus it's about year? what's think It back drivers baked into half versus back, you're come hoping maybe us But see of the capital you half. different first guess, half? little out half bit. two, like the the parts half pushed bit a had the of just kind and guess, sounds was when kind second thinking Prior talk of a recovery I you earnings, between I do the last -- I the the second you first into could markets

Heather, it's Linda. an I interview the Moynihan actually with way to this Brian listened up morning. on

So you own maybe quote we'll your here. back information firm's

question the I the turn. I And bit But don't sooner. course, they think the If we timing clearly. anyone have think running a of case, is a might can, hedge can be, this in predict particularly thought of that should they little come any fund.

to from say to that going is indicator. is is, we trying view points okay? and that Times heard boss, also bit had banking a fact, Jay come that is week. little lagging shot is bears the investment and later tougher morning, basis hiring be should in So of year hiring noted we're the not XXX interest than that banking last It a so a a the lagging got thought. in There indicator, What rate turn your I had this increases. we've Powell

for you speak If So will how now. institutions, capital they're come much they're saying seeing markets to various activity greater it back? right long to take

the beats was at tenure heck X. of which this out X.X, morning The

expect we will difficult that that How happen? quickly turn to things up. So would will say. Very

-- announcement thought. coming. a do with we pacing we on bit Fed take may turn. that about what about the AI. And longer we just think It last week, there's do to that the of we lot think So it we're be focus a of than particularly is trying But realistic

others be and more conversations speaking about to clients, going want with our that it. incredible as have We ask on we'll about might

we see turn question the But It's of when. just a do coming.

that bit hope but I your So boss' makes clearer, this things morning. appreciate interview a we

question of from next comes the Shlomo line Our Stifel. Rosenbaum from

Linda I what think cost clients. terms they about But you, levers gain when much efficiency gain about for I that AI be about to AI? I a it, you're I AI look various are company's can companies as talking just available, might you lot What of still that the of internally? by think for cutting. the how you specifically some talked ability I can wondering, was at own like in other way. from about influence that efficiency you're hear doing

And of there? of Or can and Excellence, another got where Is does lever max? kind is that the Centers pushed peaked then continue there. you've just to that again, that out over of be over that XX% headcount

Efficiency Yes. Shlomo, and that's but for well bit far let of help efficiency calls, future in Excellence, our go do important. very, those coming focus we'll can I'll And premature Centers representation engineers of really Centers Phil about going efficiency about to really, our is on side you're now, little the a talk from us. good talk the with more very that. We're desk kind where But to a thoughts have Excellence. And GenAI, about on we we of right, important. in bit client how really that. for working right We little first. probably function that's have really we're is talk for hardest looking

had didn't you your in you we did the period in cash we last collected We ask. noting that for free year. we thank answer flow to question $XX to about improved collections that and a want Shlomo, million than previous more cash did

also make, to we collecting our that to giant addition sure to cash appropriately. make we in our macro have have calls we're So

GenAI for and but it COEs the Phil? also So on I your to appreciate on on opportunity note turn over ourselves. Phil to going I'm that,

Thanks, Shlomo. Yes.

three think there I Generative are AI. internally cost buckets So for of opportunity good One is engineering.

now. deploying and GitHub copilot we're with successfully we I think a we've that at engineers have piloted groups. lot of number And So FactSet, a more of broadly

So in in amount of the terms firms, that someone like just of efficiency time. amount the we're can of code other same seeing produce great

us. that good So is for opportunity a

collection decades, and content also have we the opportunity. to content more continued a side, over automate more there's And the On good of collection.

them So efficiency of a this is different able me they were kinds databases. all really from couple down form I ago inflection shape or months could point. to in just India of and a good of an was teams number sat some But with that demonstrate in a of all to of get way, bit and clicking

with And front, similarly, sales be a our for desk is help code I generating want. then help them, to calls. that calls copilot tend a on about might a someone which down user and good on we And XX% really sat of the coding have desk a

So you that, efficiency. that's imagine great can a

for margin you you question is like other side. things use firm, other if of not this, right? the on do to you ways, it if or have frankly, about and anyone have list product So or us we any So we'd that through whether long a the to go for ask in efficiency

So we'd Any a, fiscal real be expect want can later how impact half year. from evaluating get how money. in some much like of things, three to the to year, able to I next we're see we recognize spend 'XX that FY until might efficiency in wouldn't -- it still, second those but this of and we

great Excellence, of we Centers have employees there. The

than last there I you and in think question value up are we've of the terms the our us So might locations? have those what location strategy. to more we're continue evaluating do think that in even And to open the just options in go learned I in is, the people X past. chain years can been all you always they

drive product. drive through line So efficiency we what continue top about overall, very can and do the to optimistic I'm more to

line Andrew of Nicholas the question Our William comes from next from Blair.

ask would to harder sounds some opportunities on set budgets acquisitions. in more more your of the opportunity to might pin seeing maybe rather there. a with potential choppier appetite like little some the and that expect market the end client kind or It or markets bit I M&A or for the bit being market reasonable you wanted multiples I be a being down

could if So on you touch that.

data they a And to like multiples as acquire Phil, bigger kind then assets. of drive potential you they kind now? valuable value Just on of get? of picture impact an more have bigger on question Are assets? data Do that easier think the to the Are maybe reached you point. inflection picture AI it I ability collection? and content vein. you its on Does an said that same think,

you. lot thank Yes, there. a in There's

buckets filling So time life on technology, to the cycle. continue spend fill the private to M&A wealth front, out markets on wealth, are continuing that portfolio the out, we and three

the are beginning The instincts We little throw So higher assets. yes, market those And three interest. look at other is bit. are of do content a areas right. your to interesting

to clients. I lot of as beginning are a to sponsors returns think market their to bring need to assets some show they

about we to acquisition know well we've going effectively just multiples position we're very we in coming But but X range better the don't said were our down executed ago we determined. we would be said the that a what were much the -- did to and because CUSIP still do. to gotten leverage down part, on months that than I we we

We're So looking we're of active. at tons stuff.

answer a On because clients there have trusting I people -- us contribute this obviously data with to -- a the artificial We be mean, we're then ourselves. we our that the are it guess collect are the we into that I value And way. well. data. the the ecosystem, The winners third in that real connect data parties data, also great of their we lot of AI I'll position ton That's front, right? own that I think there. in and going intelligence a So have

to might data newer also firms potentially, assets go -- may of for data data. the easier collect So up, price but be some it

often different into are through get a small bigger to that a firms that. sale. bigger It's and data Now to need going a get the monetize as company management and through that you platforms have get hard things to have their to bank of need that FactSet newer to or attention like go asset all very

available here. what's yes, a the market. we're And we're actively position in at in looking great So

Sachs. from Our George line of from next Tong Goldman comes the question

versus out talked You feeds, this is cost restructuring geographically? to the the of about world costs. this the is these elaborate and take affecting? on certain business, cetera? out how Whether So you personnel-related desktop actions are business, concentrated of actions which others? coming data much wealth parts from how business are spread et more And in the parts of variable Can

our Linda. not put toward higher reductions about via our yet. we haven't We're Yes. talk made to being main value may had not our to George, we going opportunities. We're firm everything and investments And have while up looking that reason The looking full really it's that had decisions headcount types. maybe products have to them. hoped we're or for that our emerging at lived we closely obviously, a for that opportunities

made in resources headcount as terms bit this into $XX the to the time. to yet. do sure getting it and make million use looking out to decisions more to think of We're But might to we that earnings $XX QX look progress cost. to hard we where have best We're thoughtfully. I degree we'll right granularity all that again, even don't But in Also, of go come now, is we're to when out obviously, we from, there. million a going little have we our take going our And on locations at that get of give very haven't we're information those call. onshore

This this sure firm great the about at Senior what we're we're management easily is really doing. to with that of make looking doesn't caution us. come thoughtful to

we And and the go we're into it detail than take get to more want don't think that. going right. much So to I too time

comes Our Huber LLC. Research the of Partners, question line from from Huber Craig next

more in pick you clarity a type, areas hoping curious the and up year-over-year of seen partners, on breakdown versus assuming quarter the first in institutional significantly the give half dealmakers, could which the And was half? the we've second side? year, client little I basically you buy by what also are wealth workflow

I right? in is release, banking press But last think, side you more Well, the our we say churn We think affected did we saw or saw, that most. won't I weaker on what hiring give can And year. much I banking that exact than was numbers. the probably

On did the see little office. came We not down side, a dreadfully. management front bit, penetration asset things the in weaker definitely

buy-side So reduced we've more a little they I headcount see past. have clients, in bit think, begun than to the the

both of private this, might because in have the quite rate bit did of up overall, some dramatically. of equity, a down rates of Wealth management, like we in those parts at environment went previous And our new funds smaller add in asset we owners had hedge the but that had come not capital areas, business venture asset corporations logos an and didn't and But the QX. growth of in we that like then deal big years.

So helps. hopefully, that

the next line Our comes Kelsey question of Zhu from from Autonomous.

So Wealth, of I win think acceleration you 'XX growth expectations and TAM. FY previously large this the expanding I we've an seen talked share in a of tell quarter, drivers about and you little of into the Obviously, but expanding expanding a general and if of Advisory can more strategy wondering also key You've was outside behind that Dashboard. about the acceleration bit about us talked growth? workflows

if wondering So an I on us you give as that update was well. can

Thanks Helen. it's for your Kelsey, question.

to Let me it. to get try

Wealth, as we think that this good had lot. So very we win when a mentioned, about a quarter helps we us

Wealth with seeing a And firms what really right the now know. when as midsized are about is They wealth we now think the now coming they started trying that are lot that we're do through. modernize so you firms, platform. and looking to improve clients their to large of with And

more that seeing that's flow. So where of we're deal

displacement Bank rather large one, newest And displacement a the competitive Merrill, actually or that a Canada, highest long-time Royal been have includes Raymond the of was we and as of James the for one a is of contract the this able which with Montreal. clients there to total incumbent. Just through win longest for Bank us that reminder value,

them is since the forward building look them years. term over actually to relationship X than we our so contract long And longer with average for that with

because now and be don't to are ownership to so mid-tier board platform able clients the client quite where more is sophisticated clients, and cost as wanting key. are demanding their they're their platform turning to digital of wealth Total that's really and technologies, now wealth clients scale, -- And coming the us. on modernize have they to

easier And having development want more -- from the which quicker. in to to costs. back They that and so from is data they require not a whether which include your we're or of does the discussions demand example, question, get this in the that to us, one everything are people put APIs, of put widgets, for to we're for and are products seeing therefore, which lot need say, versus,

beyond those the So their wealth the into line going to also focus into the wealth which we're able be allowing seeing. and giving on drive is only top tools then of are where platform we're CRM to and side, some growth. dynamics advisers That's to the clients top data and our expanding their line

Quelch Russell Atlantic. of line Redburn the from from comes question next Our

purposeful out. is And count the forward can Suisse the more your more come this of to volatile from approach? wondered, And second growth. deals? larger going And in around quarterly of ASP we assumed of sales size that's all result strategy the I'm X good Credit a specific the a think in, a large you as client those be lumpy, more if should be to a going that ASP growth in had growth maybe tilt impact you I So on a and basis I in called interested And user targeting in deals that's expect to this enterprise year? you slowdown quarter, towards therefore, because bit also be the you've what please?

is to nice Russell, which deals side the be encouraging, is until sure doesn't I'm we to do larger yes, a to trading that really exact just But able opportunity increasing. we'll for revenue materialize saw is that. institutional I speak on win had the think what win quarter the us not in, And wealth, of in big systems Yes, much size across the we get buy this very a implemented. those trading. for And really

a So that while. can take

because QX where significant displaced managed And then for a some fantastic we've large the services completely side win a wins We competitor in performance. sector. we've of in deep banking, on had had

FactSet. conversations C-suite of to in our see engage more with clients beginning I'm my bigger real the So to appetite a with

lumpy, on particularly stuff So is hope yes, right? upside, I the

those can contracts it X-figure or sway And when get things. X-figure contracts, you those

based lot think is though. And our one larger doubles consistency and hunting continue now still on which about I of out. I think, markets of think more business deals FactSet's things much for But open normalcy, get we're single and as and suite us just will, the I getting triples, of big is those strategy. model product smooth return our to we'll hopefully the those yes, the a possibility to beauties always

the Our Silber of from comes Capital line BMO next Jeffrey Markets. question from

back to go wanted I to AI.

the color more forward? that your on had add and bit a You going on and Can are side, launched believe that what you more little your is I client mentioned plans FactSet Mercury. maybe focus we

areas to a differentiated Jeffrey, Sure. it this highlight to approach in there responsibly Blueprint and value whole excited little bit where very to the FactSet FactSet maybe our is talk will be Yes, AI But our Mercury. leveraging I deliver Kristy. think about clients. in about the really if just helpful we're AI is I

So mile-wide blueprint is all call we the the discoverability. pillar first what about of

steps personalized the And the which it's and really users. enable the that's insight user that act going next I and to they're for offer be reports it's press with we back it's the that information then and back the getting interface to think them documents of of has release, taking. approach lot it's experience mainstay driven. Mercury, to of going in what's real providing saver to FactSet on is a going And users that FactSet with because on of time quickly going to and really a be which the our AI in the to talked and all level auditability move more to become to about to designed context, that of Mercury, our high to a for content they're future, conversational our functionality interesting unlock it's confidence And discoverability really FactSet

that on not feedback to to offers and it available. like users. validated meetings really next our the suggested how we as auditability And the the client approaching this steps to already in gotten to the data features that back to it great that So that even guide development process user we're important throughout deliver of as leading had release, well we the we've research. and this, through is might extensive have data insights other whole really, were conducted And they we've users realized how up that

automation. is second deep the of mild The Blueprint AI workflow what pillar call we

is beyond strategy our of there. kind way building really So an stopping bot and answer

client the streamline user-by-user of XX going workflow our workflow to know we're each So of GenAI years from of supporting and type, types them. over that workflows leverage different well really by we help

the junior FactSet you the it is there. So Mercury would will from that release of for bankers, read have geared first release in but expand

junior about But pitch so they can or process. building for bank book being take a addition bankers, companies, workflow for out lot questions to now, any able in have that to the it steps answer of of

just forever is by that then in chart decks. have refreshable Graph, enabling them of it is Active inside example delivered then to and great as a to one So which language pitch them ask any custom simply natural for FactSet their formatted

gallery. don't need they So They search easy a adjust to don't through have for to setting. them. any super just It's

But what process, mile-high own excited unlocks our are own last our development product strategy what call very some our acceleration. innovation be then clients their building And we're that to We're leveraged of busy that here, for blocks GenAI also, in and in is pillar important by it's the building ways really about remember in we solutions. teams those as can products. developing everybody I our things think, amazing

with to executing approach demand will we've clients own flexible more that open building begun this is progress already very data for these road as to their our unique. I our and think in differentiated be I make map. And AI And And there think commercialize way. solutions blocks more on

we're are Explorer's And those FactSet beta Mercury last launching pillars. yes, into our program about the very So week. excited FactSet X

next Our of Owen comes from question line Oppenheimer. Lau from the

previous please your the I timing early, have and side. far? AI how much help but question client in products? How contract of does guidance other XXXX? it you could into you still follow-up so know it's AI demand or the the negotiations about about Mercury a And talk growth for just So on monetizing baked ASV

talking here. Mercury, for going with experience. with mile-wide about user I we you FactSet take What bit question. I FactSet Thank can I this as really approach evolution see we're the that think of can was we a talk the little talk -- to is about Kristy. discoverability the a natural

be with efficiency. going is more included so And some conversational of experience this users packages. and that improve help workstation And different I their to know unlock would value level our

mild-deep For for book in workflow our performance what and the pitch we automation portfolio and workflows. GenAI for the banking things with call mild-deep commentary or side automation Blueprint, AI other building investment buy like

are this. workflows currently for level clients. to on be measurable best We're for working the our efficiency We a these streamline and to able going commercial drive significantly models of

to So there there's definitely value for them. going be

quarters share a to And get hopefully, able in bit future be FactSet the color. make so more I program. along think bit beta we Yes, we're we little in color as to further progress a and going that Explorer little more more gives

your question, And you just is to is to one the Kristy, Owen, a what of add which monetization bit to trying little that I'll everyone answer is second determine. said part

And I think retention. rather with new we'll the benefits or through increased have that it's clients. very you'll certainly -- see allowing in see come conversations fact, from us to some interesting

we're the going guidance into come certainly those but to specifically not for year. through, this see it is So how baked

question Markets. Our from next from Ashish comes Capital the Sabadra RBC line of

the expectations that -- wondering, pipeline. question opening client last call, closing client conversation, a on the of budgets? just a Are Just conversation in lot on was a X on I on Any had there the potentially you client deals, macro, next on contingent the opening year? And And 'XX. reference based the up the of are obviously, year on budgets but up for color for figure also calendar the based on those client around for which budgets your of was are X, what

Linda you're bit we the thought a more question. that year, the We for Thanks later. quickly Yes, second it's would half about, recovery talked improve had little bit of a right. as into the probably -- of

hearing what finishing more asked and a -- most have. sort now clients to are lot that they what budgets do up being their flat. they're still And process budgeting we're more probably but what are And of so right with

mentioned that's before, is I still ability mind. as something And of their scale to top

will your yes, budgets improving. deals, on to that point certainly, depend to X-figure So some X- around the of

in open our of in things can do you is the pieces. some benefit have we platform mentioned, As

But pretty positioned the you for take dollars well of commit a don't are as advantage and of certainly, So platform, whole example. being we're allocated to feel to redo we to more to that. have technology GenAI,

from Jefferies Our comes of from next question LLC. Thind the Surinder line

here. market interpreting to -- picture some kind in bit than you I'm attributing taking that I big it correctly, recovery change had your the a guess if last just September. Linda, how that has XX you're maybe stand Like like could question from days, prepared than guys guess outlook given outlook of positive But a longer what back is gave least at should the seems comments anticipated where the we why a I your of initially the help not like much you time perspective be you guidance? the now case? from understand when me can than since sentiment argue this more improved or you today, that in in client

because near-term some if here seems was a Like bit of October reversal. a then and we -- I'm sentiment there's a dynamics had there's a from like disconnect, negative perspective and know obviously sure complete not I it very

-- just the are a just seeing I'm seems of if So the on not time. sentiment point at It that October in focused disconnect like of still we're bit the kind sure in a yet people here. reversal there's

a this perfectly wrestled one that It's sort call. as question getting for fair I we of were ready with and Yes.

September we guidance gave originally XX. on So

tragic You macro we recall situation difficult. of had which October even more that the events then made will very the X,

piece So clients, yet our the got got sentiment, a tightened to we happened. that worse. budgets calendar for gave belts thinner, they And year-end before again. frankly, guidance We're coming lot of their

got itself? of market has like then we of a hard. shot some I It lagging think Is The of last really he very and considers And the bears. But from surprise be important. this said it is in our Chairman dramatically hiring expression Wednesday, before to is for bit a indicator. a I of what be. could clients turned ahead Powell. what I The everybody --

on work second with which what's conservative clear a and take in Suisse back to to track, through way in that, quarter then our that, do. are get situation going the the on Credit looking have we of we impact So

consider fiscal And combination yes, you. explanation of of has think, some unusual I I have big -- And be a happened helped news a caused year-end. that hope have to might when what disconnect, our you pretty the but events bit the

timing, going us we of question So to Phil comment that. it appreciate we bring and excited in your notes what's next. your are sort about very a coming maybe I'm landing point we're appropriate, to turn and quite and on probably to but optimistic, much Phil over for can of here. your view on And But pretty

Linda. Thanks, Yes.

So yes, the mean, do sales take for I cycles for time enterprise clients our our some solutions. particularly

has hope sentiment I So that turned and question like really it's on call about spoke a of we timing. just this

So to intelligence. summarize, we're very artificial obviously, about excited,

product have We the sort our with beats of getting working lot that the FactSetters and them. nothing a the market, wow back out from of and client in clients showing to

what feel versus shape this. in a We've on good seeing. and competition all lot year, I'm progress really the of So like the I based really behind made we're last in we're

down than the thought, take because turn just taking We we guidance did we is bit longer which spoke just the to. a

just to little summarize. a planned be will than quarter slower Second

So a plug a Suisse then give just bit to known. FactSet of I'm mention there. a be of in was the Focus. bit UBS, a acquisition view for the summarize, taking by And did to Credit conservative we -- may particular, well And going which we

in our first time a number years. flagship we've done having It's in this and of the Miami May. event beginning we're April So of user this the

intelligence really decision-makers And really will We're to tech sectors. artificial what be bringing attends. that hopefully, both going very the we've We're focused demonstrating finance industry be and experts for anyone done and really that top from on and thought together leaders, key there. engaging heavily

ends So quarter. that's today's it. next call. all that you see Operator, We'll

Thank you concludes Thank for call. you. This today's participating.

now may You disconnect.