FactSet Research Systems (FDS) 21 Jun 242024 Q3 Earnings call transcript

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. ahead. go Please

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

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

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

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

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

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

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

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

you, Ali, Thank and good for joining morning, today. Thanks us everyone.

results, want earlier a point to holiday quarter's just out scheduled I the about allow to Friday on this for today's week. we Before call I observance speak this Juneteenth that of

margin rose to and the growth organic and services EPS X%. third our was of Adjusted quarter, with our diluted for quarter XX.X%. ASV finished adjusted operating We $X.XX professional

extend highlighted tightened by and of lengthen pressures cycles. the see trends cost to the sales were echoed others continued we that quarter rationalization, impact These budgets industry. clients decision-making last and in quarter, This we

consecutive years quarter FactSet's through as market years, these we of of XX backdrop, EPS successfully years in of XX our XX conditions we and build history continue year. on to even the growth right we now. may recall, weakest have seasonally consecutive Also, difficult than Against of you face adjusted is And more third the this growth. revenue navigated

industry, Despite an companies challenged data technology in valuable with our end markets, for assets. exciting particularly time is this

the We build share. capture harnessing power of are solutions and to cutting-edge GenAI market

we example, in they in For value products for showcasing bring the new demonstrations our leads new XXth team. to products product These clients. held requests client driving Miami symposium our and are hundreds sales April, of creating for new

to logos. clients now concluded new Returning our and X,XXX quarter. third X with net We

count user X% was XX% a the in expect Overall, remained retention fiscal finish services and will professional XXX,XXX. guidance we further Linda with X.X%. growth updates than between ASV plus to provide Our organic minutes. exceeded higher and XX%. annual retention year ASV few to client Currently,

by our merger, to cancellation regions. market to saw the We and the UBS growth impacted headwinds our third Suisse region. cancellation gains Americas, of growth basis now was or client managers quarter-over-quarter. X.X%. rate continued offset the were and ASV and by XX approximately rationalization for X/X Americas in continued Overall, of the Turning Credit asset from deceleration accounted slower the from In points of this ASV organic performance the quarter all which owners region's our wealth due effect cost

rate organic EMEA driven buy-side rate front growth Pacific The saw ASP sales suite. from firms The ASV growth the region's the ASV Asia acceleration a organic was increase, X.X%, in transactional and Asia analytics Pacific price product X.X%. region, was and solutions to by and by growing In office from owners asset region, revenues. EMEA driven the growth was region's we higher

types. fund by trends at now Looking

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hello and Phil, to Thanks, everyone.

morning, both ASV these I'll more from in the slower we despite release margins guidance and you've the about of EPS, fiscal growth third year. our As and say are increasing we later. quarter, that on seen this improved for press

for results quarter. our this First,

noted, our at of Ali GAAP to figures end is press metrics usual our the included comparable adjusted reconciliation As of our release.

For improved $X.XX. basis X%, margin the to operating and XX.X% XXX while to adjusted diluted organic adjusted grew third quarter, ASV points rose XX% EPS

GAAP quarter, revenue partners institutional X% the sales For $XXX asset corporates. on asset million managers, to and increased owners, to

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

a as costs. basis GAAP points annual as payroll result operating higher year, in to Compared XXX cloud-related million the operating a to to X% to This expenses. of reduced was expenses This taxes, compensation bonus with reduction margin expense, intangible partially operating million. driven lower $X due revenues offset combined Turning $XXX compensation XX.X%. expenses was lower by year-over-year amortization previous our to expenses salary to decreased a approximately expense. as increased increased mainly accrual and by due well to by of and now reduction GAAP

major adjusted an in as looking expense On our our area to continues turn, cost now we frequently of And first, growth. operating basis, at have be buckets technology expenses each main discussed, of decreased X X.X%.

Specifically, of Technology about represent costs technology now increased X.X% year-over-year. XX% costs revenue.

bonus to earlier year-over-year X.X% efforts cost employee accrual. expenses Secondly, the driven in reduction compensation expenses and fell lower contrast, lower due by

of third-party costs estate by bucket. saw reduce timing we And and increased we content changes expenses took related year-over-year decrease in expenses. finally, the as of to benefits our Third, fee significant real XX% the to variable steps due this X% saw expense and early a

As total future to while invest strategic the us in growth to expense initiatives. company and positioning technology we've management for mentioned allowing continue before, is

XXX and operating given The $X to This Adjusted expense. onetime This reduced operating for primarily quarter. the achievement. basis our payroll basis bonus in fiscal lower to margin an year, due change million now the bonus to about by XX.X%. ASV salary was tax to to accrual margin lower the adjustment Turning improved by adjusted adjustment added our XXX was accrual, margin. points a points about

points rationalization another adjusted basis today's operating XXX cost an operating you find margin from basis revenue Additionally, earlier in in will And earnings XXX improvement. appendix expense the efforts income point the of always, presentation. of to as resulted adjusted walk

basis. in basis of lower Cost on approximately was expense, and As services an GAAP year-over-year increase XX a primarily lower offset of decrease was cost revenue, basis. compensation cloud-related adjusted XX by The points of by on amortization due points a percentage partially intangible an declined services basis to our costs.

SG&A, points year-over-year debt lower to due as adjusted compensation percentage on SG&A approximately XXX lower a basis. in bad revenue, on of lower a costs. was XXX basis expense, it a GAAP primarily and was an in points lower basis. decrease basis was And The facilities expense reduction

to now tax. Turning

rate foreign stock-based tax the and slight XX.X%. additional to Our compared This income, credits benefits tax partially offset from rate of last tax compensation. XX% increase was year's utilization for pretax primarily quarter by was due to higher of increased

Turning increased This this and by as expansion offset now reduced share to basis, EPS. growth offset GAAP higher driven a increased by higher expense. revenue XX.X% On $X.XX, in share expansion partially quarter versus the interest margin interest adjusted $X.XX and count $X.XX was prior lower EPS to partially count driven higher year also revenues, well by an margin by period. EPS to expense. XX.X% as

the increase This FactSet for reduced of EBITDA a net equipment $XXX generated by spend strong driven operating same million to cash capital producer on free less cash we leasehold the from primarily and XX% from higher to and activities operations quarter, last property, net flow, year-over-year continues year. Free due which was flow. cash define to be spending, as improvements. higher cash an up over period $XXX was increased XX.X% of million, income.

$XXX.XX. share to share repurchases $XX shares average now million approximately quarter. the repurchased of at We turning And for an XXX,XXX for price

Our share repurchases. plan million repurchase targets $XXX of fiscal XXXX

of As $XXX.X had XXXX, for XXXX. XX, in million repurchases May we fiscal remaining

increased quarterly disciplined our dividends we the the in regular remain year This previous in represented split of consecutive from the yesterday, long-term marks buyback dividend to our shareholders. X% Also, returning program on a quarter. to basis. We we value a $X.XX paid committed adjusted dividend stock a XXth increase quarterly per and have which share

repurchases, our down brings million which we third repay share to million is second and loan, over shareholders term last in paid loan to full to the our Combining $XXX.X XX leverage down months. by quarter the X.Xx. gross during dividends our returned the of with the And This consistent $XX.X fiscal our quarter, XXXX. our of term we plan

growth to end from Revenues approximately year, the Phil the in given guide recent As professional now down now to at billion recovery mentioned of million ASV we for fiscal of to range to for X%. reflecting guiding services are plus billion delayed growth in be $X.XX $XX million earlier, are incremental $X.XX $XXX the expected the X.X% midpoint, our organic markets, our year. the to

hand, our and EPS for other up. the expectations On margin gone growth the for have year

margin operating expected to operating be XX.X% XX range XXX the guidance range $XX basis in is XX.X%. margin from in effective guidance EPS is higher be tax $X.XX than up to of of XX.X% to XX.X%, prior GAAP Adjusted is to to to And adjusted in The guidance. to XX%, points the the prior expected basis of points $XX.XX. remains now prior of rate the unchanged guidance. approximately up Specifically, range to range in from XX XX% expected be

that deliver our strategic initiatives. AI we for as manage are continue we that the positioned We well so investment we believe while markets closing, other In shareholders can in maintaining carefully Gen cost to base up. value pick and our growth to

We're questions. your ready now for Operator?

first Our line comes Instructions] Kaplan Morgan of [Operator question Stanley. from of Toni the

ask happen. range. there Are Terrific. sort The I of outcomes regarding pretty could guidance wide wanted array in wide of seemed of terms that to the a ASV.

midpoint sequentially. the assumes of sort that maybe flat stay are things think I --

And a so therefore, few quarters. last little that better bit the would maybe be than

sense how any talked about we there challenging that. So a environment about be and just thinking to like you of green should wanted get the shoots

detail a and Toni. here. Helen Thanks, start bit think Phil. I'll will It's I more have

midrange -- mid the the of now gave So of X.XX sort we sure just you. make the on to is definitely QX, have wanted We range that we more end. now derisk low yes, visibility we

the at So low X. is end

we the of confident So about feel really the about feel middle and range. confident range this

There quarter, a -- the and are lot though in are our of X-figure it of mean quarter, lot opportunities. swing I deals there is a biggest

reason quarter So is or here. think you whether I the going you're over for to But never do really all there's those. know get until not of optimism

wins in mentioned strategic, cost total nice some I cycle, was with helping ownership. had of that my us the clients very across for comments, of in kinds we As QX life wins portfolio really new

in with set now clients ability the as AI. becoming cycle money out, to portfolio, I'm So encouraged the more that products go building we're save existing well help of generative tools our as life for

Yes. No.

in had we mentioned, very some wins QX. had Phil as good earlier think I

that a decision to at it's it's at QX, us when able well. last we've at with line longer moved been had pace, erosion pipeline And bit cycles a and cost QX, look we for also end in year. take an decision. And us so and from look as the a that's we've perspective But same number deals I of been have that's impacting if the really the sell market weighted

at a for for very So allow derisked that's we've range gone to that we're why we've it. right that. confident now wider But point this

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

or years about that we of same think spend I environment excited a back kind you're felt rather. you few going go you're Phil, ago, and of areas you found down here I think, X maybe about, has get that needed on I If talked little to investments bit like you the a ourselves again. situation. growth more the the come on to Growth from focused

of kind couple talk do think these can you the in when current you? I that about the front have company Or of do of base needs think you investments? So boost investments, about next think the years, in of you kind another you do cost you if orders of

Alex. fair question. a you, It's Thank

multiyear future. think I out, lot growth we still have being initiatives to the are we the built drive reasons are ongoing that in expect optimism a and So for of

deep markets be would private more real that time. recently So sector,

bit older of vintage. a an So

along things innovation think So honestly, job another we've up in quite the those promising. in of we've AI company, good in so, really have are invest nicely last the still unleashed are And we and terms months of or And I chugging of platform. the dollars to and how XX wave incremental a this. generative data at approached freeing done

through I to the that do September as there you rolling we'd some or I is It we are a fair think until want that whether give going do call, we to a can't invest really we more in, are not X-year go So our real question. feel we evaluate but and any but it's though, guidance question, optimistic. plan, things on good

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

signs So of capital we the data industry early recovery. activity some there that suggests are markets track

hearing to from side what So are you do growth expect ASV sell customers? just you side And sell your reaccelerate? curious, when

Well, thanks, Kelsey.

front are the certainly we more M&A activity with on seeing think I bankers. So the

a seeing historically, might side trends historically, hiring more sell up, did, little comments ASV on think if we And I fees than followed follows has Helen banking the better banking think at some we're this. historically go on bit have look And then I that. hiring and as that. you FactSet's the

true, guarantees, are there. historical if to So there remain I some reasons optimistic be trends think no

that. add Yes, bit a I'll to little

the large been I investment think has seeing muted. what universal the from banks, the hiring we're banks, pretty

So We're middle the banks, the boutiques. from they're themselves. being seeing conservative numbers higher more market

So say quarter higher right for than -- into would first building we're would not seasonal the this numbers. necessarily -- the our the big is recovery first this I previous the that quarter now, as year, I that but for year, in year for time hiring QX a

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

flow that Is -- impact? those And you've head to dynamics on is appreciate thus as efforts line, had rate, all impact the or run there run X part. bit count to in top and I Just trying is just CS a expenses the anticipate question rate the a well you X. far. a of guess, of on One, just to more I UBS the little specific through? the made more stuff then kind and fully now

Manav, I'll Helen. Sure. part. first take it's the

So the quarter. the much would in majority reflected smaller. transaction I impact in left but QX, say There's from a that of it's this bit little is

Manav, to looking at so of to go and the everyone this And what Yes. onetime what's understands margin I improvement, try the through want detail continues.

the side, points. the basis negatives were margin XXX this improvement XXX operating So good and were guys the total on adjusted points basis about then margin, is about

and be through XXX So adjustment. that bonus our about contributed had that these. accrual of words, to bonus do let we will quarter, to for $X not go good annual me get lower accrual other line third in the points million to basis repeated. In The

basis about during a added and will that's about XXX the and taxes points, It's salaries continue. Lower based payroll thing. for payroll Act. COVID. added that keeping on on people Cares Lower XXX, tax That's credit refundable a onetime

Lower and will is that comp lower that capitalization up added continue which XX amortization expenses, basis facilities continue. one continue. caught points, will Higher XX, also and added will XX, added stock-based not

negative the So out about then XXX XX expenses are had higher And of data the basis on we basis costs technology side, points higher and points. for XXX for one-timers. XXX other third-party points, basis and

basis guys' that Hope good we will And move on the points about year. improvement. of through overall side, helps. the half So that as continue XXX

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

competitive well about seems business. over price I competitors to you've know from curious for as And new of seen So seeing had relative what competitors? I'm previously. that you It competition talked I the last wanted the to case invest couple And ask the what environment. been about you're years,

point. sense how competitive So just give assess of this would dynamics you at a us the

Faiza. Yes. Thanks,

buy institutional cost ownership. the there. name I on And total of have side, say would X is key of really we So the game the competitors

portfolio even FactSet, analytics positioned that our in front invested positioned So but feel tools. the that office very well now have we on better have we we with

mentioned have I the launched that very we really solutions connects we office. middle front nicely So which we with that the PM Hub, office --

really feel are, the costs really about ones on And most feeling competitive I good I the think, buy position out. the pressure So side. and our firms those cost taking

right the we're adviser in we have ones I compete firms think there. portfolio In solutions that So And on analytics an I amazing have talk dashboard. wealth, to good the the are on today, have the workflow. think We've about side. buy adviser shape that And similarly, which heard our the of system. is CRM another job the wealth portfolios you done with product the me sort and workflow

feel very focused space. really wealth building we're space, workflows couldn't we on now heavily wealth for So the better positioned but the additional in out

hedge I crowded. that more funds, equity, a within bit space getting think banking, is admittedly private corporates, the

So in us fundamental with there's there lots products. of analyst

AI, us work we're give I with all the think we've very markets, tools competitive building that the nice I deep done those, generative private front. position with the sector on there a of with think,

I'll pricing. your around comment on just And point

to But almost that mentioned logos, there new when competitors some budgets, the displacing is may pressure multiyear widespread. before, to As in thing help we're is Really, but match they're we've we need contracts. we where when happens for on price price always are it good not example. reduce is

So and we matures. contract recapture price our the price improve the as realization

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

A the the set. tools the Gen and integration question about and of feature AI just

for As impact technology you would there color helpful. be more clients costs how Any begin the use to adopt guys? does more, and that

question. great at a It's you. point. a unknown It's bit this Thank

has to reason are spoken compute. tools, we're in it's here. technology of up. But more a going as of investing cost going terms because good our Linda yes, clients about, that's use As And expenses these

that. So of about thinking course, carefully we're

engineers how end baked this charging up that and at for products. We into that of fantastic FactSet have monitoring will sort these are we be

equation of to which should saving focused it what the out enough clients' would from So delivering terms we're on, we really have be the in over expense figured or that if it's incurring added will be is value they compute. an that But time. time, outweigh we're

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

on lowered the fourth exit than that X% a then And just opportunity, cross-sell like think second there What's which rate clarifying revenue the guidance, net think do growth quarter, the my midpoint which almost a Was the in just cross-sell opportunity? maybe math revenue at the ASV impact. run midpoint. Or Was at do to If get that potential the UBS the question X-point in wanted the any that And lower growth is about I quarter. -- into next how on causing growth about year? the just the how less of going than CS I and delta? is we in clarify fourth quick revenue right, impact? headwind. versus revenue any ASV we

This Helen. is Sure.

the Let first turn then me part, and address to I'll this Linda.

it relates basis. Suisse we merger, As are to and the about talking on UBS net Credit is a what

So back UBS. we were to capture the able in selling of to some cancellation

perspective. So that's from a positive our

Yes. unusual a you increased right. ASV. third And because We that's revenue Ashish, the QX CUSIP by in tough of an year. looks 'XX. QX It's attributed Linda. lap, Generally revenues quarter lower. the revenue And had last of comparison, the acceleration lags onetime That 'XX of to

some growth that third margins. we CUSIP note of is it performance And both quarter, terms to from our the of is strong it in think break out core I So is and CUSIP, it we while to because in had timing. fair don't very business,

with but very doing. is business how lapping is -- causing effect So correct, that. pleased a it's we're it you're that But that's

That third was helpful on I could well. you wondering was comment as color Sorry, the quarter fourth the on quarter. if

at And guidance on are going that. the to quarter, Ashish, run rate fourth give not we exit the

like about it Speak looks in we'll when So it we to see September. there. get what you

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

secondly, increased it's events to a how it business basically a of clarity XQ where pricing actions? typically pricing about around the does And additional of can essentially get to And timing cycles that you and matter year. you get pricing through assuming international the the little elongating, is wanted lost? so your you reflect is closed? some bit Or updated client fiscal sales assumptions the behind then does basically that deals when ASV Are believe compared the talk structurally prior push are guide. when the I

Sure. George, it's Helen.

to the try pricing answer. do I'll one first. me Let

last right, international in was XX.X XX year do you're we it pricing the year. So It increased, QX. versus every

of that see you an we able the reflects increase clients capture the last can that in to we're much year. able So number to same pretty And as that were capture.

very And in expectations. we about with line feel good So that. our it's

pricing we're giving the So realization same. remain we our that believe value and clients

the this buy is in the When we analytics, some particular. to continue QX, moved think that that we side seeing the we the deals on move, about pipeline think of about we the reason as especially are

So they're use. is out not falling term a we that

have and not bandwidth, they're because is a more clients markets, deals continue greater frankly, seeing certainty sometimes quarters, about we're they've lost. But the to since So constrained, our end own larger quite moved move. of the the until number that

that's of reason. the So part

products steady. I one to make demand do what made a look If in for the I year, earlier. And want the underlying with year. basis, are for last we we again, which at expect point our line remains On gross we

were So we're selling last we as much as year.

a have onetime But not said, number problem. demand we it's we've that had being So a of cancels that talked about.

market. which So the we part in driven by higher impact is obviously erosion, been on has believe

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

AI other you coin, So color materialize on terms least of Or the at I appreciate of the a incremental think that of at we internal expense should the XXXX? XXXX. side Is will the ASV would thinking to being I expect there. mentioned be kind you that that But in still believe just some in point I'm cost about drive of curious cost you maybe in front. primarily also all breakeven savings. kind effort something on this

Great Andrew. question. Yes. Thanks,

collection, like expect, editing, -- content just been code client firms, could think and writing. service, there looking efficiency code even quality just you I this assurance, engineer as many -- we've opportunities are and good for So at

closely. that evaluating we're So

The Alex's earlier I think do we we sort reinvest question will question. going efficiencies. back is, real get to those of in products

do what will efficiencies end. a certainly question we'll just there that. of get. It's be that So the that seeing choose with in We're we to

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

UBS. in a what's we're X kind if seen exclude if on the before first that? going on quarter an about want normalize burdened sequential and CS to wanted if license for away, a revenue, that. clarify thing trying to of implies in questions guidance UBS years going would The -- by little overly to were basis. asked you is or with notable. that's fourth sequentially environment think this bit show growth I I quarter there's you're down ask And revenue we've terms of CS that to to in understand to a were know if you don't the just I'm is on in like which being

expenses, in there's been board And but kind Linda, of But you more, kind a bit and see then last quarter. we in pulled in meander growth see on a of terms revenue to levers kind if the what some of see noted soon, asked other you green left this hoping if little -- of a I've pickup. just levers and that what's environment don't in you've We're would slowdown lot we're pull? around. general, And there's for the those before, a materialize from don't think, you to terms we I of shoots of continuing

Sure.

bit of Let first, me then that a Linda. this and take turn little I'll to over

we impact, points. onetime take to script around it me XX-plus As that would our if a the in around particular, that let in out impact, this through, relates talk basis we CS, mentioned as be

the that a last past, That's of away. we've items the cancel If the I large back that's explain X in that's it Now talked look to revenue that over right some other to think period take delta. onetime helping going not time. about of that impact was I quarter, at

some more and What again, in view with our past. items erosion bit let that some the we're do issue market again, is a things that selling as seen onetime an it so Shlomo. is, impacting of our me I it the in with but are in back. control, out underlying yes, business, But how rather are There go are my line this we've not or view,

is the that. Shlomo, despite like that you meandering for So thank for recognizing market, good it. adjective which a We

We have been focused [Technical Difficulty]

basis. cost

so that bit XX% data And are third-party estate XX% of costs, in year-over-year XX%. real little costs quarter. quarter, our people our in in down cost the offsets third technology increase our up unusually and an and down third the And a

reduction the third margin bonus pretty the that under we control. accrual feel match our got And was flattering our bonus lines we've with of our of all will So ASV our The to the like that was performance well course, completion. accrual. in thing quarter

got we've few do. can So things more we that a

major all But are. And think carefully. I happy where the actions planned Helen very for for the seeing match with through revenue any cost-cutting We're we I to what we've we think see quarter. coming very, is along. this fourth pretty we don't line managed

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pretty So about we actions. good feel our

audio And sorry about the issues here.

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

here sell it's feel Just a very just just you? bottom the worst of you -- buy describe your in side bottom sort here, mean, How question How like there time now? before marketplace. start Do of other is on here. the behind right and again, at matter you're words, you along reaccelerating. here I you're again, -- how and through broad in you like customers you're things bouncing a you the broadly, would thoughts feeling at are of that the just going you would the out that have sort side what

It's hard think predict to Craig, that, may and I here. Helen start, comments I'll some have

think the a positioned of as was cuts. I XXXX of companies, lot year sort cost of for

of a I'm to constructive were of taking a of things and beginning year markets lot calendar until it end So any people year? a kind It lot the potentially -- were observing are think of the like real firms now, are with what clients, sure set out were tailwinds end not back feels salespeople clients. ours, including we're late And of paused I think on that projects does Helen? industries, through bank I that costs. my with of I budgets last lot feel of that sort getting But in life. calendar those next kind continuing more conversations would I sort would the year. to from of come and the handicap

from through assuming obviously, remain predict, and of But in as clients. of course, Phil the the the to softness Yes. market now, think high erosion just larger I said. of And to consolidations the then, No, that, I projects, It's going rest agree. cost conditions. the in that's the banking right we're year, due to would delay some hard

banking is first year, it this that the at seen will a as higher say, actually but it the make in the than sure and I'm quarter said we've -- previous I I be seasonal before, hiring we that bottom. not net look call call at

could just have you you for Linda, here. housekeeping quickly give us I a question

year? million think X was last million was Sorry housekeeping this accruals, Just it I the What to year. first it of $XX question. quarters it $XX year? quarters the what quarterly each first the was your bonus for this X

my I've like feel had And microphone Swift. okay, Taylor That's replaced. Craig. I just

works. hopefully, So it

up $XX Our first included accrual from was top-up catch to $X sort bonus of quarter XXXX. That a bit million. million a

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the I Craig. that looking you you're gives So for, hope detail

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

area Just private a for space your also market wanted competitors are this little drill down of targeting A growth. into the lot to bit.

for us So was could to this it win ambitions favor in recently other incumbents how the is to and that detail question And big space rumored is these who you angle product here, just sale. the going the of other against guys just growth. do targeting your one you're are a

this something you the growth is in look So at area? might your accelerate to positioning

Russell. Thanks, Yes.

been from about million built since steadily talking or not coverage our $X we've been in shy $X million XXXX believe, $X have And to around this. private yes, investing out, markets. million. we We've So I about

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credit, transactions not So we be an And obviously, a comment on can't we're I obviously, look area. any that and something this important there is Private taking at. is important right may now. think that out may or

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

think to question, in just now and picture, know what of kind with want we're that what bigger growth, seeing how volume expected you about to first of guess, to terms malaise provide versus, I of ASV Just the of to based what if about this recovery, when we recover? kind but think can environment uncertainty sense -- U visibility, just you've do you the clients think things the given regards realized talked could versus year. year. seeing I I ask get been very Do that seeing, the color has Or you going right get potentially you the are tough tracks really had? have insight the be and you persist And I on gradually, helpful. regards you will do been a how in other think you're with have some you you recovery. V-shaped then move do until price to you've your the all any or a the end you

I'll Heather. with Helen. Thanks is one, that This start question. Sure. the for

get of the reason see delayed that their some because of part we the that deals of overall, size. So

in than biggest XX% the volume if probably year. year. transactions to about I the is would number year think figures pickup seeing and pricing, we high is the considerably of higher as where think last about our -- I meaning And low when mid volume, as higher actually, interestingly, we're the say, So we of as this end

in of average, the transaction. of volume down that mean would what terms the on So the size is

you in as you might larger order need guess, grow deals. to So that,

which transactions, don't quarter, very of we're now. have opportunities, convert larger these if but high right of sort where that's a them number in seeing that they So that

volume all terms now average think just size. that that's ties lower opportunity price of I at higher an So right together, in

in we to end very As it's bottom, it relates to a little hard bit the say. up of where do

varies by I firm think it type.

the seen quickest we've being to respond. banking Typically,

we that, of I in would year. better be thought this We're not the half that. had seeing think that second

we'll Phil the as we markets how in driver before, if where So technology see very that is capital have picks But goes that. now. up to end right mentioned by much up,

as spend, decisions upgrade we And as more quickly. post to ready tend are to looking once the saw COVID, and to so they're clients move

the So I to be dependent going conditions. market think on very it's much

own of out kind to point that up make us on and tailwinds. do want to I it's to add our

a addressable market regardless Helen with end the the just I way to that the beginning to even on up $XX managed So X/X and it's defined have now that firms build of we I us total that technology we're a services what grows. creating. think said, feed of addressable products open to markets, been historically. is And then to from billion look more as outsource think standpoint, market,

I shortage, tailwinds of can some So us. think market. And honestly, despite there's into their well the are this that positioned no companies addressable market create own what of giving the is moving

Oppenheimer. next comes Our Guru Sidaarth question the from line of of

offering. is I for to sector ask Owen. This wanted Guru about on the deep

I think update banking. back when in it QX helped the competitor in last major was displace a

solid behind So be any AI. seems could this updates here? like a it driver Because right really

updates So insights over here? any or

for A bit, Thanks the little question. Guru.

some with feed also yes, out X the chipping good have I deals. away we're and reports sectors building And I some workstation. So now believe we're believe certainly within we here. coverage XX over

pipeline, aspect come it to renewal. most want of what active banks important is things when an see there's and up So for an now

have X that X the there's honestly, of or think market, banking. I So in in just us this

Our of Wolfe the comes next Research. Scott line Wurtzel from question of

maybe on to side. I what buy wanted to and sell markets of end the modest other the can you operate to some quarter, characterization compared Just in. side of would about segment. to growth kind know demand hear you and go characterize of but you're if overall talked the demand you this just of love I sort seeing back wealth wealth the the wondering side I'm on institutional relative to overall

I the think one thanks Scott, us, the honestly, it's healthiest for for question.

build providing some have been of tools, the very active we're of there of very workflows beginning last good we're AI what to I in over various some of we've interesting introduction few these the pipeline a with we shape. years. of sort So out And sizes. deals think And beyond

optimistic very and about our from I'm So to here. wealth ability accelerate

Operator, become markets believe end all the we questions constructive. to and industry on well in both more call. you this Thank positioned terms our strategy for capitalize product your the for when today's we our in We'll of ongoing ends great portfolio all in megatrends Summary, are today. you see September. and

for participation concludes in conference. the Thank today's your program. you This

now disconnect. may You