FactSet Research Systems (FDS) 19 Sep 242024 Q4 Earnings call transcript

Good morning, and welcome to FactSet Q4 2024 Conference Call. [Operator Instructions] I would now like to hand the conference over to [ Kate Kirby ].

You may begin.

Thank you, and good morning, everyone. Welcome to FactSet's Fourth Fiscal Quarter 2024 Earnings Call.

slides the during Relations webcast our at the be presentation section begin, website through found on factset.com. we we this reference can of Before the Investor website. will available call today's of replay on A our be questions After our prepared we will from call open investors. the remarks, to is call last scheduled X to hour. The for [Operator financial and X, listeners the which review Instructions] Before risks results, measures. the legal the of all discuss encourage our statements use explains non-GAAP of notice we forward-looking I to on Slide

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

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

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

performance otherwise call, changes matrix During XXXX compared to relative this reflect unless noted, period. respective as

are discussion the Skoko, and Chief today the turn Officer. call Officer; me Revenue Officer; Chief Phil Joining Financial Shan, Goran Helen over Phil. Snow, to now Chief will on Executive I

you, We X.X%, share and the XXXX $XXX services or our of fiscal I'm just full is guidance with year and fourth results. pleased to growth good midpoint June. Thank fiscal ASV plus of quarter XXXX million organic professional provided morning, above our range which ended everyone. Kate, in

ongoing we year. momentum on solid These resulted sales uncertainty, the deals shoots with positive all the revenue to Amidst as we green quarter. high operating observed growth, Annual above our trends to XX.X% we recent $X.X margin to paired closed adjusted execution guidance. the to billion, continue macro last EPS end increased of our or of the XX.X% and $XX.XX adjusted most backdrop see in of out large evidence

year. I'm encouraged our the end While fiscal the new business we of and growth to remain reacceleration cautious, by

large by results. year. was in ASV, was multiple the types. driven across what to fourth competitive X-figure million line now financial renewals our in This delivered and QX multiyear added displacements we which last several $XX phone Turning quarter, with In of we

the For Americas, renewals sell wealth Strength the our and by strategic from on in wins long-term from organic growth. offset were side. X% had on region, softness side we ASV buy performance in the by momentum

X%. offset to result EMEA in large the region wealth manager region, buy-side as mid- growth by side from of conditions constrain of quarter Gains particular, headwinds across the were buy to a deceleration retention the asset decelerated one our In to of X/X was market large-sized on continue to client. by the clients. In budgets the the cancellation the

we our region, Wins delivered higher suite of growth wealth erosion data Pacific Asia banking were across clients. the asset with by and X%. and In solutions from management analytics offset product

management a looking with of renewal. of large one ASV services. XX% earlier XXXX the at trends loss demand, in fourth to the largest long-term in our contributor types. deals was multiple experienced by onetime by Now growth enterprise even the for ASV in-sourcing organic and growth client fiscal phone our year year In the in to Wealth led quarter, the strong we accelerated

in our we wirehouse managers. the same the win of quarter. on an in displacement build share quarter marquee competitive region's incumbent Canadian competitor fourth the in wins wealth market, the at a X hold against top the fourth large the a client secured we These where with significant of quarter, In first now X

count of total, Another to to wealth over total adviser we of are we competitor displacement number our of notable in was high XXX,XXX. added in XX% fiscal a replacing bring leading private where a bank. a desktop significant XXXX, In XX,XXX win north users terminals a at QX growth desktops adviser representing high-end in over seat

FactSet of their is a enterprise well in deployments believe Our to that our that positioned be seeking clients And with wealth to productivity differentiator continue workstation has improve competitive firm-wide we momentum proven displacements. advisers.

As the performance our office quarter, in In adjacent we are workflows. services. the we early managers, wealth and success captured managed for middle offering first we for wealth enterprise fourth seeing our broaden deal in

also AI-powered leading a our milestone large programmatic This first achieved Mercury, conversational the agent. our to client sale of wealth deal powers private in API. FactSet access significant We through a knowledge gen

In dealmakers, was X%. growth organic ASV

to competitor While win and a by this X-figure months headwinds seasonal in uptick QX. a we with in clients modest in our was banking the observed banking a more in in hiring in our optimism space in renewals growth driven impacted and to several indicate this competitive a from normalized multiyear year, hiring. cautious segment earlier gains reacceleration come. displace contract This the main Conversations for

on vendor On managers where higher ASV retention. buy erosion and the institutional budgets for These organic rate to headwinds a throughout and led pronounced the consolidation tighter backdrop an faced put were the year asset cancellation pressure of growth persisted asset of that most manager side, large X%. we and

the While cost a FactSet is players for with that to to operations. can spend consolidate of be few lower industry, ongoing and the continues total compression challenge help clients partner fee choose among to

in was organic CGS, growth partnerships ASV For X%.

a continued In the Softness quarter, from cancellation large lack a performance business from growth partnerships were of while to fourth headwinds. deals new was expansions added CGS. strong significant offset and and by renewal

focus. are to investment quarter. driving There we to plan continue against the pillars transition multiyear fiscal main we we strategic X outlined our As last execute XXXX,

First, data expansion what we finish the continued to started.

differentiates past FactSet's markets to which we the deep expansion data from and several in These have the universe our have added history, growing initiatives content sector, our of connected Over executed largest platform, private including increasingly years, FactSet competition. time. proprietary real on the

driving are only in bringing success renewals, investments our be our displacements. our helping data many year of upcoming competitive targeted maturity. these also these The will focus to win us of but not in the offerings on Additionally, on investments

serve, deeper Secondly, continued is clients' client runway we FactSet workflows. us and types the of each streamline phone our embed to into simplify for Across there workflows.

to in in investment opportunity are portfolio differentiated value. the analytics prioritizing deliver we million there in over With of is performance, a $XX through users. front each to flowing privileged night, side, holdings and representing risk strongholds front-office workflows buy trillion office leverage nearly FactSet institutional is with X.X substantial institutional our of where the For to connect portfolio position our data portfolios this the systems AUM middle-office

clients further reporting. to modeling by automation into to management, In FactSet's adviser such building bring aim wealth to with for as expand finally, market growing accelerate workflows their on our capture to digital research, adjacent share we we and workflows. creation next-generation presence dealmakers, prospecting on and desktops pitch engagement financial banking to continue And

we and to differentiation junior on for workflows also productivity optimizing among has loyal whom to expand technology-driven are senior investing professionals. to following, addition bankers FactSet for our boost a In strong

The road of directly third fundamental Mercury generative pillar Since executing clients' is is our generative our their AI AI on experience. AI. workflows through our element integrating overall and Blueprint accelerating FactSet focused last AI announcing and FactSet on map. strategy enhancing year, into late have innovation A we our

to ASV by and usage are which There AI-powered open are starting we solutions, drive clients, already gen and early and conversational signs transcript that incremental paying area retention. improve new is investments launched multiple each seeing gen differentiated off. this of Mercury. AI API in are approach FactSet's our Earlier we ecosystem resonating, And this year, is portfolio by including meaningful to powered commentary, assistance

products progress our FactSet a including look program, on in AI Day at recently banking, November number side and to over buy announced wealth. I XX, exciting Investor clients to now beta our XX which product forward gen our new release sharing of preview has Explorer, AI available more on across through expanded

FactSet's access and enabling firms curated third-party incubating are we efforts, our packages, own programmatic are ecosystem proprietary our of and we and need data own AI our AI their build developers program an top to of addition content on partner providing In solutions. gen fuel technologists Through data their to to to fintech who technology. and data workflows

year with face to In In closed their be our of FactSet summary, a on cost that industry pleased depend partner the I'm a clients market total in of team can environment. to reduce how ownership. the continues challenging headwinds, trusted out

modernize approach to from in see open and our get data away innovation, With debt. technology of processes of incumbent out flexible platform, tremendous opportunity helping legacy history we clients and

We services. data, solutions our are this meet workflow broad enterprise well and with placed demand to offering across

excited for ahead. organic past growth encouraged more We about the second outlook upcoming half. first are nascent in half muted execution opportunity in on, the ASV is the to quarter. guiding We're the fiscal and this the positive a and of recovery balancing of year, our solid midpoint at by X% I'm the year to momentum market build with improvement our This

growth Over our to growth. capital reinvesting long-term We to record has balance consistent deploying and committed discipline FactSet track margins. XX-plus year expense responsibly between of accelerate delivered and remain sustainable expanding to trade-off a the history,

fiscal you fourth our discuss detail will turn year XXXX now Helen in take full to it our performance guidance. and more to over and I quarter through

Thank you, to hello and Phil, everyone.

proved this our be terms in morning's the highlighted As press in fourth of to ASV growth. quarter release, highest

In the bringing organic ASV, guidance June increase quarter, line This year's to is of ASV annual added fourth a professional plus million X.X% results, in above we our our $XX.X million, last year-over-year with midpoint. $XXX.X slightly organic total services. result in

by our resilience during we margins of most adjusted to of on the showcasing GAAP guidance, will our and a XX item, XXXX, organic growth I improved grew margins our though basis, years volatility. top extending consecutive EPS periods onetime EPS, market fiscal affected address was top an record revenue exceeding line In X.X% and and We of end which later. recent

results. First, our quarterly

GAAP million to of banking, end press As our release. by reconciliation $XXX of the metrics owners. at driven revenues and we figures sales comparable asset the noted adjusted at X% in managers increased to of wealth, call, the asset our is beginning GAAP

and $XXX past movements excluding revenues, X% and exchange million. the foreign acquisitions XX over months, increased dispositions any to Organic

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

GAAP a X%. in tax $XX For primarily to this X% not with increased related expenses On the matter. a sales offset taking compensation Massachusetts to to which additional charges expenses million we respect previous by disclosed charge quarter, filings. have with operating anticipate operating basis, an million lower dispute, fourth $XXX year-over-year do expenses material We adjusted onetime grew

our each in software at in driver, internal costs, fourth amortization major year-over-year the due cost expense higher to of technology generative investment increased of use in categories and XX% quarter turn, our AI. Looking increased main X mainly

For was year, X% about the of cost revenue. technology

compensation lower by accrual. reduction by efforts quarter expenses Conversely, in and fourth lower due X% employee decreased driven bonus a cost expense earlier to the year-over-year

basis excellence. reminder, our prior year. year, with million, year located XX% of revenue, of the XX% our year. expense as the pool And $XX of people bonus from a of centers the a last ended XX% down are our was in For employees XXX than We points lower

year-over-year year-over-year remained Real to in the of variable of timing by the changes XX% Third-party and estate the content X% costs revenues. expenses in and fees related optimization. in X% due due to space quarter rose decreased office quarter at

declined points For XX X% year, the revenues, these the to prior expenses of year. basis lower than

additional allowing management deliberate positioning future self-fund and growth in FactSet Our initiatives expense us by investments fiscal year strategic technology XXXX. in is for to

As QX compared costs increased to and revenue by year, XXX XX.X% charge. to sales partly from GAAP operating reduced points employee Massachusetts growth, tax compensation a offset the basis margin by previous approximately

margin accrual improved lower and operating costs. walk today's offset salaries, to partially to XXX revenue A bonus from by Adjusted of basis presentation. operating in technology the from points income XX.X% is appendix detailed higher adjusted expense earnings by

a lower amortization. basis basis to XX expense, increased declined of XXX was of on of compensation by basis Cost a revenue GAAP by Adjusted services services points. lower year-over-year intangible cost points offset as approximately partially due primarily percentage

primarily in quarter, lower sales GAAP XXX to SG&A compensation was as basis was And year-over-year points approximately primarily basis percentage $XX expense. a a higher charge. a the due on basis Massachusetts due revenue tax Adjusted lower XXX million of to points fourth SG&A

taxes. to Turning

XX.X%, prior the a Our inclusion approximately fourth This quarter the year adjustment. effective in fourth due tax quarter for rate the was XX% fiscal tax of decrease was primarily XXXX. down to from of

EPS Our margin year offset an this and charges lower partially Massachusetts growth, XX.X% to by Adjusted sales to $X.XX increased by the to was decrease and revenues, rate. dispute. a GAAP expansion due increase versus period. from revenue employee to tax related EPS $X.XX compensation XX.X% in rose a costs tax prior This quarter $X.XX in in a

increase the Free cash lower as same capital define operating over cash cash of the was cash $XXX for XX% The over less an net a increased the capital expenditures. drivers quarter, million flow, free last decrease which year. from flow generated X% period operations year. from activities XXXX spending, we are prior and Fiscal $XXX million, was of

over we X,XXX, of Through expanded total user Demand for over client to and our XX,XXX to client retention Concurrently, our dealmakers. steady primarily driven increased year, solutions our fourth with quarter base adding adding wealth our and remained a ASV retention over by rate fiscal XX% logos. the at XXX a XX%. new XX%, count

quarter, $XX share return capital On $XXX.XX. average we of for at repurchased approximately shares price an for the million XXX,XXX

For XXX,XXX average at price fiscal XXXX, approximately million of we an shares bought back a $XXX.XX. total for of $XXX

share On of million. XXXX, Board XXXX. of holders record September new Directors of for quarterly We paid today share repurchase the a $XXX a August of per authorization XX, XX, FactSet up approved to as to dividend of $X.XX

to reminder, our to As in a remain We marking the year the shareholders. returning we X% XXth our by of increased increases. long-term third consecutive dividend value quarter, committed dividend

XX have our to returned the we Over months, shareholders. million last $XXX

XXXX. full is fiscal the loan, with gross In $XX.X our the our down consistent the to loan by reducing repay in fourth of million quarter, we quarter to term second X.Xx. paid plan of our This leverage term

guidance finally, turning our to fiscal XXXX. And for

we accelerating year year markets, conditions balance of large anticipate as the several execution the products months our mentioned gen the demand on aligning financial As from more and AI current progresses, and the fiscal new Phil solutions. for growth enterprise with long-standing X and earlier, favorable next improving opportunities

first pipeline subdued the wealth, is foresee modest sales last activity in that banking momentum half comparable are year. and supported by in views on We Our to improvement side. buy sustained a

While pressure to will moderate. erosion we we client believe of the on overall anticipate begin budgets, pace continued

Given we $XXX midpoint $XX these are ASV million, at our growth a of organic reflecting X% growth rate incremental million expectations, to range. the guiding of

XX%. of margin bonus content technology as banking lower includes just pool by This and buy-side targeted We of the higher and and reset expect adjusted controllable the in to costs, offset workflows, services. investments costs operating XX% such range professional

and discipline earnings We revenue also to ensure committed are maintaining while expense strategically investing growth. increase to

to expected is to EPS in $XX.XX the adjusted range $XX.XX. Finally, be of

to million. million we With expense XXXX, $XX And for expect in respect $XX $XX million between million. of assumptions to expenditures the interest we to additional $XXX be range expect be fiscal modeling to capital to

our wealth about By market client map, and and road opportunities, growth into generative and expanding in workflows, aim FactSet executing we clients' particularly positive integrating share increase remain AI We retention. buy-side connected to content our enhance further solutions.

remain We supporting we tools need to our knowledge ensure are teams the the they of and to committed partner with choice.

for ready your Operator? We are now questions.

Toni [Operator on Our first from of the Instructions] Looked the Our Alex's next to with Kramm like Alex line Stanley. question from line We'll next with [Operator Morgan question comes UBS. the disconnected. question. move line Instructions] comes Kaplan of

is both for Phil maybe Helen. think question I this and

mentioned a just margin, And the had year? since about Or over we normal of 'XX period of how very You've representative balancing a significant expansion view margin that should the margins given XXXX. when investment versus we be you should term? thinking forward, we act long of as look

year. unpack and start say significantly. think, bit quite I'll I margins there. is probably I this bit well, will to a Helen a of reset Toni, have obviously a expanded We've

acquisition, CUSIP the think was I us mentioned, you obviously, there. tailwind a As for

the previous set believe, over years ago. But out at X ended Investor we've was a beyond little I Day, have what up, we which

fully we in well. sort we're more some of And that long-standing We've But we Helen, don't a do to being we're detail, invest. efforts are continue own more programs through bit feel our why to of funded. little had you believe great a and provide efficient So please? self-funding, position investing

happy Thanks, Toni. to do No, Yes. that.

challenging what And higher actions top aimed are frankly, originally expense we took we which XX Phil what expand quite said, as we in outlook, for line is medium-term XX. help a margin really in in XXXX had was to to our So environment. than

like absolute to terms on worked reduce when targeted needed, And down also like compensation. expenses managed areas real variable estate. in incentive we've in We've spend

balance be -- of help this for attributable between half for the I level. look really [indiscernible], cover that the ended midpoint our about about So new to think I reset new normalized and of the the we bonus the meant And a when and because as resetting to where so more year. 'XX, is technology would is at difference to of think 'XX margin you level it's

as doing Now self-funded. investing of a in fair all script, very well. much And the we is are I of as amount mentioned that,

in the rate in already we're that guidance. that's So giving our

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

up I accelerating remarks that growth 'XX improvement progress, or better compared in wanted follow the half as ASV second XXXX with no rates. cutting on half prepared like the improvement about Fed Despite the year to to second guide progresses. the the XXXX potentially despite implies macro

I wanted macro into baked your guidance? just assumptions pricing So to understand what's and

next X last to green the for beginning Appreciate of the Ashish. frankly, Thanks, out shoots. start. continuation the we the for do months see some we've some are years, I'll the Well, We of see headwinds but few experienced, question.

modest So wins of in closing. QX. I And we uptick the really which hiring great a think obviously, in had saw lot a job a great team in of banking QX, we did significant

clients with you was period, that very work typically much have of traditionally halves. indicator which a very X is And know, they quickly moving FactSet us how really it us our with forward. that a working much half. want were to encouraging of -- been larger has largest half as We first through I And than great second through tale think

once a We that's clients that's the have I will calendar we think be there think we're most been get of we -- in would that think [indiscernible]. us. And market I of chance the the So had through reset out best to the year, think balance. will of end the behind sort do uncertainty their

don't on of you know, quite Goran or add that. that's wanted And I a Helen, So if to our bit thinking. to

product launches our the Phil in I we is half. to I a that I pipeline. have product will we what second recent thing add good only acceleration to that would contribute think The had said think And

But hoping products which to of first the pipeline in really point. those the half are fourth and build had in proved half. further in the sales realize sales the We that second quarter, some

So in second we as do by the XXXX usually have. half expect we

Alex from comes with question Next of UBS. line Instructions] [Operator Kramm the

guess this on All quarter. management, you lot you very Can sticky can asset offering flush very One, in a threats. out comments and cancel your more you quickly of side, management have large you background? mentioned seems a bit just a usually not right. maybe like more. competitive a maybe bit It I little the buy give little asset a

what's going So just wondering there. on

stabilizing. And then looks hiring is headcount the asset like overall, management or environment reductions

Or positive end you are already? that get some kind So on early market? more that of of seeing to too it is still

Alex. Thanks,

let the was we're going due and part, under So cost now think And address face Yes, probably me was which yes, large to cancel. then, consolidate and being first needing a to this obviously, cancel. pressure. that a every I to firm one just

I'll a versus But give data XX maybe have in past you wins what bottom more bit the top do the little is on our XX just we than for year.

the if those fiscal top entire X which largest our I were at understood. well against ASV X So look And are against for X of them competitors, think year, wins competitors. XX were top of I our

had competitors, for to those the XXX deals XX of XX And only but In were were closure. displacements M&A competitors. lost result X deals, X the And them added of of X bottom FactSet. of over our were to the seats X of major bottom

and consolidation industries. So is pressure I think in a the there cost

in same some to where that. side, particular, really we was there middle On was this win lost. the in against was deals, the a one office, the look top And our XX and case we're stitch opposite, going we they on lose back together competitor. when buy won some, the But which to front, where

it pressures the I continue of transformation. an to execute with becoming would buy the on part and constructive there, question, that. buy it's appetite say When up second to But us to anecdotally, The on cost it more like the feels honestly, the your are C-suite the really do against there's to side, side. meet I is

that. Yes. bit And I might to add a little

enterprise, which As that not on we solution seeing we the one of an type think the continued is seat-based not really about managed of is the more -- services, buy provide. we're it's side, of a demand areas

we continue strength So 'XX, again that some to it grow in and see in had 'XX.

as that one to look drivers of buy side forward. going the probably would of we So

[Operator Patnaik of Instructions] line Our Barclays. the from next question comes Manav with

imagine big to in I up in that in number. I called follow you just growing? guess CUSIP prepared CDs, it's wanted the Phil, your CGS a out I been how headlines with all has on fast remarks, the strong pretty performance

'XX? how curious if on just of the could it it I this and what you grew us guess percentage the is you've what So update year, give for business fast assumed

Manav. Thanks, Yes.

So slide. yes, out, line, a but out, the in it think, portion broke significant we break I of earlier business which partners that the we is don't

compared at FactSet's aggregate partners traditional grew with So X%. that in business

in CUSIP really have We drove that where lost we have ASV a some past, the growth. did partnerships the of significant been couple there.

you think there. I happened can probably So what triangulate

year The there pace CUSIP executing. great I'm terms their encouraged team And really did of development thinking. of by a this the in new job

later, about So I we all that's right guess a more but bit talk now. can that maybe we about talk about can

[Operator line Instructions] Deutsche Alwy of Faiza comes from Our the Bank. with question next

Yes.

So I ask guide wanted the to for ASV about 'XX.

of acceleration, change? that's in you things would more baking the sort of how end? Is any you seeing leading type not which Are on it that? of conservatism characterize you prudent. that in anything But marketplace won't sort believe your to I'm curious seems You're

you have Investor coming up. And Day I your then know

how we more ASV of normalized growth preview a a us give should about think the maybe So company. for

Faiza. Yes. Thanks,

of as but here So a the already the as we finish second I a bit about year, much mentioned, seeing half. we're so headwind sort of out yes, we're optimistic more

do do opportunity I sure. an think there's So we range. a for provided better to

I'm the AI we're generative seeing really encouraged by what on front.

of a So wildcard that, we're pipeline. great a have bit beginning that's to we that and monetize a

encouraging. begins think that come that I would in So faster or if at accumulate do rate, that, a be to

very have the buy on side the side. to we hiring Historically, sell and hiring. been highly mentioned correlated Someone

have anticipated, been year. be side, faster I in that certainly have could if hiring sell-side goes pretty on this and think up the there conservative us tailwind I think than a sell we for we

at we I a say now. Day, of enterprise But can't We level we'll cycle particularly as at do that remember it's sales Investor go sharing larger think too more. now. these And deals, long much some be the pretty for

what I we'll is faster, line, want talk most is that's our and more focused But right? at Investor at So what want on what stress to to that's be We want going we Day. We're do. growing the team not happy about grow do focus to to main the top X%. and

[Operator Instructions] comes question Our next ] line [ the from Kelsey of Autonomous. with

you've X% about have of kind next outlook start already investments in for the gen I'm incremental assuming to previously years? and the FY both sized expense ASV growth included So talked expected X% the AI in AI delivering to that's ASV 'XX. guidance. for gen curious, of you But impact ASV few just

Sure. at I Thanks, Why that shot don't Kelsey. take one? a

about why have, we gen may the that looking impact when So Phil mentioned, the of more AI year. the we're I half at as back think that's

powered a new will our that's when out So the that by gen in come of are half. lot solutions AI first

So have of better that we'll be perspective that. a able to

the half as we're the first erosion. it the in [indiscernible] new and and will by in ideally, green some about range, our being second capital about talking is as reduced well demand why that's conditions baked stronger of markets as products we talked be hope half boosted and and the activity enterprise guidance for current shoots It of we what

XX between see XX come think that maybe about baked how is in to I when see So we'll points somewhere might where we that's through. there, basis much

I XX-plus what what call attributed at I also investments about in, investing look when As side, to we're it invest think the we're been the we've basis points making, that it gen total now, the to to of continue relates AI, right would amount both to into going expense XXXX. I

the comes Thind Jefferies. [Operator Surinder of Instructions] Our question next line with from

pricing should built we does guide? your FactSet environment how price ASV the pricing, guide, about to something to you then into AI offering, the think Mercury do how what's And related respect that? the With and current how or like

sorry, second question? Sure. part your of the I'm was what

I'll the take second part.

-- do that. you can can I do that Okay.

or in contracts, either So you or of our X%. know, what's have as CPI the higher standard in RPI we pricing, baked here, our

headwind it some see our do as XXXX going annual we to price So into relates increase.

what want to increase between the I we year. the make to price we But then able annual a separation as do are throughout sell and

have cards on Our activity. rate been and experience adjusted the depending

on raising been the we've so prices And packages. our

And the above that price has on realization been average XX%. against

So and capture this on year, we meaning feel book, into as what have same net have this for as year sell a good clients. we're the able I we we to market. new would we expect larger last

incremental our capture dollars rate will realization, against price as and mentioned, the we So I cards.

in we total, the rate. to modestly, down So expect still from pricing growth to do overall, contribution but contributor overall total good be a our year-over-year

And AI, this. model of for for we're a in arriving at terms pricing

we'll iterate course, Of on it.

into intelligence. just the transcript we've will called FactSet Some some there stuff get of baked great out intelligence box. search And in product got already and

get You across idea documents to a can different lot trend of happening, go and look of an a of what's get answered. questions

workflow deep solutions. we're to release going Secondly,

usage a And So be basis. for charging on we've released we'll Portfolio that Commentary.

will portfolios commentaries you how to by how create. many want and it driven be So really many

for Focus a get But lot lot did there of we've demand of announced now. a this we done back in at customization May. work We after that

a out market. in to great the we're So to position go

essentially this out customize to the of them of We've to able we'll got box. hundreds some for extent and literally be interested, clients

be approach bundled take imagine, approach might for a But I things. some an many of in So to you product. this depend of capabilities with usage We'll it get the going that's these take we'll can and price consumption-based, cases that. is and or of on bundle most get where a would

great will conversational was lot sale our a which incremental have ASV. in a QX, it of API. So We did be

would to the search that have wanted you FactSet, ecosystem. really, own on experience use a a So client their that within

are to do this. firms to of going the want lot a And larger

approach. the I'm because and you a to we've of had that add sale. winning is I do this with federated of do taken And your to level fiscal So lot real baton to a he to Goran for a on here want approach, think enthusiasm which that to pass sort going year?

Yes.

So sale, a it's repeatable. certainly we believe, is

half We show results pipeline the of product the new expect terms mentioned interest building of a clients. second And across as already to up launches, multiple are the and year. in in

approach development But significant our I really is it's their clients approach to structure conversational a -- do accelerate federated cost when to helps in-house. this is overall benefit to that internal to what AI that development really API huge really is their a really think -- it comes they gen and

it, excited Investor and that about the some Day. releases excited quite we'll upcoming equally at Commentary be about about Portfolio talking So

the [Operator George Sachs. next Instructions] Tong Goldman with line Our from comes question of

ASV of that Can a from deceleration be compared what large growth XXXX X% discuss several fiscal guide ramp performance dampening revenue year. just about gap even into fiscal benefited should next wins in year and fiscal you bridge growth fiscal growth may Your XXXX, to revenue over from 'XX? though next is X.X% help the in XQ

take that I'll George, one.

the recurring revenue So it as nature business, is you business. our know, of a

So how when to goes is you ASV it. get the recognize in

a last lower. know, is the you certainly QX quarters, then So but are you helpful, X which as stronger carrying were,

of is works. So the if ASV to that you'll at over time lag way revenue That's growth. see you it years. And XX period a the last, that whatever, back look the

the the between delta two. that's So

converted how matters the year. also ASV gets in It

first as we second today and the stronger. likely will that being So the are half more be mentioned already where half we

and again, that, then will us in into then the hopefully more half reflect first revenue XXXX. And help more so of

William Our from Blair. with the next Nicholas of Andrew question Instructions] [Operator line comes

investment tied I to half the like obviously year-over-year there's at wanted in or the but least to bigger the pool, like decline part dollars to tied margin incremental it maybe is reset a the ask in on is of here operating one sounds picture bonus investment. sounds It dollars.

balancing priorities flexibility with to And little kind wanted is ask your more then you growth. in top driving And process, of relatedly, line I kind how think some about embedded of spend if kind the that your we to through hitting of about thought a if as higher bit investment revenue move ends of of guidance between table an spend it like guidance operating little bit up potentially the of inverse ramp year, does based revenue relationship growth release. your the on income a on investment look the and you're because guidance just

Sure. good I'll question. a very that. It's take

for us able room and take expense actions So were spend, as we to before, mentioned in which gives some reduce we some 'XX investment.

about I'll into roughly likely think that is in that and AI, which was on office XXX the additional gen is speaking as front see margin, as call it we're to points, around investments investment basis the in which in well through would banking I as come overall, So half XXXX, that is wealth. what included of self-funded and Phil we'll our putting

content, We're investments be also workflows. of in in investing and to demand the well services which form as on our comes through buy-side earlier also then I increase in making and in the as we're mentioned fixed real-time trading. managed going income

built some a of of And billing bit total bit on basis support then spend. of AI gen infrastructure our other consumption tracking are do because of that types that's the a and to more based to into have and solutions the lastly, points into usage, that we XXX

the funded gains X being selected as services. productivity it's taken spend ways: in that discretionary in So professional we've reduction in such well as as

primary we aim said, focus, we margins line So strong way the is is for the we've already of also to but top our to as the this balance growth, need which, that achieved. maintaining right believe with the invest

with Instructions] the of comes Oppenheimer. Lau next from Owen [Operator question line Our

the a Helen, have do mentioned. just investment, you follow-up with I

can So need as investments AI, monetize do to gen you rate you you or invest some early current growth continue start point? or of your some investments maybe at maintain the to scale to back to

of question, the to combine try Sure. And the I other those so realized I'll second X. I half didn't answer

first, stages I we're in the So early early think of this. --

view pull So or of not I back. we won't make a can whether

earlier the some to of invest I that's do stronger be needed. realize if think as able to that we'd if we're and more that able ASV

I to as Owen. continue look to our -- we invest, now, can what than as returns higher we continue cost, is we're to long will get looking So the right really think

to it And AI. just be won't They'll as well also gen be as the continue I into in said, workflows themselves. content as in

the [Operator Instructions] question from of line of Silber Capital Markets. Our next comes BMO Jeff

you Earlier, to customers. of some top your referred you wins in XX had the

be generalized is are question, I X I I'm that I specific might but know different, there contract change? anything think those you there commonalities each share in wondering were if competitors. from deals. you this that said be a that there your drove took may know but any share

Yes. Thank question. the for you

led some driving a the our I lot enterprise home the highlight and of has mean, a clients more we're key I selling C-suite is into wins are solutions at Goran I level doing one just new like lot think that And repeatable. trend these would to with that now. by So

at in lot space. we So we're QX in were we these year. years. the sort where did a lot of wealth performance team doing wins of win key And middle-office amazing had that can And a a for with and space in this that of a client previous the Goran's wealth how you see driven for wealth. well success our great himself over

So is common a wealth I would say theme.

value theme. a different that The of level us consuming Enterprise ways sort is our in lots are a fact common think of is excited clients about theme. from I

and just to the we around deep then a and bankers change strength great banking. grow team And to strength got efficiency once investment release that amazing step going that's just work of product. these in desktop We we that's mean a we're sector go in in -- some by that. from private markets, products. AI just for continues we the win banking, to see gen the had I and I the continue but of do we've to think lot a And been an driven in

has we And addition just wealth this as to I capabilities. the other especially selling, content the our to think for top and what year to added in said, add compete to income [indiscernible] ability higher-end really fixed improved management in terminal, have that Phil

future So that, growth. that we're encouraged will drive

also sources of very performance have in signs wins large terms encouraging expansion and into about that workforce that have our portfolio-related seen in diversifying expanding -- had expanding already ASV. Phil client, additional of reporting most the wealth mentioned the a into again, win, of significant management we but at workflows. on One a we we're is into

So will going is we forward. on in XXXX something and that building be

Phil's important to So are highlighting these us. really wins

of question Instructions] from line next Wells Fargo. [Operator with Our Jason Haas comes the

you're you still It in seeing environment. the there. little of what to bit competitive curious from more given But aggressive your tough some out of backdrop it's share pricing -- your if curious I'm you're regards competitors? if comment fair a level any could seeing on a I'm if sounds like winning you're

wouldn't than we what different have Jason, I any question. past. thanks in experienced say for the the

when it competition comes always to think face I we different pricing. and of level aggressiveness

eye out keeping on the perform exactly terms competition So we always in we are losses. and how an of wins and

competitively. anything we much changed not we but really certainly significantly well see do I that some of segments that not by do focus think There the competitors changed. on in, has the has that do some of is increased

I'll said, bit It environment. a is Goran competitive to add little that. as a, a

So smart we're being about this.

we'll So new the times, to costs, get possible. business, be for given competitive as and as switching at we competitive in example, go but will, in displacement, that they're

that success into and pricing Goran said, also as as wealth used well. there being and that Now said, we've contracts in And some we've banking lock to in selectively corporates. longer-term seen good

think I price using So to just share. smart win we're in to we're market being able be how

next Instructions] line Our [Operator Partners. Research with the of question comes Huber from Craig Huber

here. Question

that also, how sell is Is worse corporates? it Over you into you when and the better fund right now? clients hedge about that market going getting your or or the year, are same? doing How in for

a say the take a hedge -- at one. Craig. So hedge that same. would about depends. fair I of I'll is fund on -- front, I'll amount the see that shot it It side, since We take churn

that ones and go then see they'll come we'll down, So up. pick back

fund as reconstitute front, there come which business a of. on the fair amount we've a and they themselves we goal our hedge that catch back them is seen new So if new

we've in good Asia, fund in the Singapore community from the activity particular arena. hedge Interestingly, in had

So growth out there, seeing is funds hedge we're what relatively but well. have done new

great well. with in do lot we called a of company we new And come seen talked churn. lot corporates. uptick a a that a business that as have we've our which lot and from There's we call, Corporates, [indiscernible] our a logos, also about does partnership of with, this year

Our from Instructions] Redburn Russell question next the line [Operator Quelch with comes of Atlantic.

about When more Or to wonder perhaps top you aggressive X%, line do as you of would feel to need strategy you thinking Day. your growth is alternatively, stimulate I think there you consider TAM wealth, inorganic partnership big there's may curious in exploring opportunities actions? opportunity? think above be ahead areas accelerate Just you where the to in growth Investor you're such back as what a

Yes. maybe Thanks, we But a partnerships more exploring more we're time we think yes, then. Russell. about do it's be aggressively. to -- good can Yes, that talk

for segments. more up interoperable, of with sort market certainly done be work opportunity and different we've I the to there's to an think platform open firms there certain the team with

targeted than And we to we been because the M&A obviously, couple front, acquisition this -- position a have of did a last to we and had much on place. some better the M&A get CUSIP, do large we to we're just in for years were with

us. that's we become things we're we're maintain going line M&A lever So to the certainly a seeing are coming constructive. There's interest up growth. markets but more can more top of that, drive our to that use to we do And see discipline, that

question comes Rosenbaum with line the from [Operator Our Stifel. Shlomo of Instructions] next

we've FactSet usually we've to seen growth few much as historically as the And has a you over want company. I years, more been little Phil, bit seen. of last been margins. hasn't what the ask holistically, company just a expand Growth the

the lot margins margin be new talk little ask that. a products is It seems the for going to down within bit to change recently just more a sequentially, now little have right more talk now, that to on about you are anything. guidance where philosophically any there but Is like more And company is or to to and I the you pivoting a pivoted growth? about now wanted

muted exactly terms second then outlook this time a in improvement the the about in same XH what way because about were then year last little was And you expectations talking at half. just year the and of last first year half a versus bit the almost this

would Fed say, cut, that year, of If would rate you front give confidence things, you things you're be line you internally in point sight that kind actually of could beyond to I out more helpful. the the that you differences year but versus last this have where seeing of just

Thanks, sure. Yes, Yes. Shlomo.

So don't philosophically, there's really hasn't a been -- change. big been there I --

cash also always delivering focused focused flow have [indiscernible] and We on the growth, we've market. on

a time. us covering been long for You've

to been grew It's mean digits. a back digits, get double that in a but balance. least take lot of I we do single since we we a while in decade, pride high So to consistently aspire at

I to we think do. something that's would like

is I think, And my experienced of think third where company, been or tough a -- we've been I -- sort that. X- just what on executing in years And period this like a market. at market really lot is last us, X the this of sort has of the pressure the so against tenure X-year it's in

on good our So you to earnings I what was margin the terms focus of of saw in market. growth there continue think to part deliver really to just

So no change huge there.

we think headwinds a dissipate bit that the year didn't. the But quickly. I would we last They I market do feel that constructive. were think think now optimistic more more more that going more I is to be confident

evolve such a And lot we've to the done platform.

much think to help we're we larger a positioned level I did historically. very clients at well than

line, top move So game margin the for X- the the name of what's deals. and has X-figure to now -- be to That's us move going got the sorry.

do position in I a great think we're that. to

not and question. part for AI as certainly other's going it more flip our invest to be think do the product choose more very play the efficiency in to FactSet a and side, is we does And opportunity when a about us building whether that think there's On we for we're good to focused or for efficient well. on generative I as products clients.

on second question. the part Shlomo, up just to maybe your follow of

that us of delivered half. but believe I And to half to already level than first mentioned more contribute that think I think increased going are that, we year. confidence, I have what really the that's innovation it, the second projections this products the gives new and optimistic we

deliver just not counting what we and are we based that think necessarily market we can on product turning I So think but that. the pipeline on

Research. the line comes from [Operator next with question of Wurtzel Wolfe Scott Instructions] Our

sort to Just private with to data deep some plan of the investment and strategic real on sector, go of commentary back markets the expansion your wanted of side time.

side. wanted on bit the with Just clients, a of maybe coming specifically your on color more sort get maybe to renewal conversations up and little how impacting that's

would a great. you product sense I map more of X maybe this but at road we'll be us with sort if know about Investor of give the And on side Day, then can hear the probably those kind initiatives of

real at going inflection he Yes, with experience Goran good of we this, with a because and don't lot here ask think we're point. Why a sure, has time? Scott. I start to I'm

Yes.

make think large to products on excellent ago. very a I continue that area. the We we win a So real couple time in had years of

and with We're through adding deliverables, of I proud excited think this content all in we're all the quite gone flowing progress content all the has the live client coverage terms and of opportunity product. over the over-the-counter the their -- there, all of there. in terms type of the the of

little deep add sector the well. bit a on I'll as

we progress So there. continue make excellent to product

have of of terms by multiple in in the product and really We engagement area. encouraged engaged coverage clients delivering and with that progress us really level by the sector in desk are client of desk terms

for Obviously, X invest we've We've I that's -- data. different a securities markets, there. for the to continue coverage to, and doubled really private or million think we are increasingly us just -- our biggest is highlight better lot different believe, that reasons. around firms in companies interested In I of

in in efforts So venture that's capital. our banking, a private for equity, underpinning great

are at ways that owners of lot Asset able investment. just we're There's looking monetize a that. that to

no to I for and remarks. Ladies would turn queue. closing I'm like call now gentlemen, the questions showing further in to Phil back

Thank you.

entire sales thank way. really a the Helen to team year So out such for I in first really closing want great just and the

hard And encouraging you work and want the to think year. the for upcoming all call year. did that's all this for thank I I they on of FactSetters the

November look to all Investor at XX. on seeing forward you we And Day

it's I time. talk We're can worth well going you. your the going innovative what to to about FactSet. and think be you future from products some expect and really Thank show

participation. your this Thank Ladies call. and today's conference gentlemen, concludes you for

may now You disconnect.