FDS - Earnings call transcript Q4 2018 | FactSet Research Systems Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning. My name is Mike, and I will be your conference operator today. At this time, I would like to welcome everyone to the FactSet Q4 2018 Earnings Call. All lines have been placed on mute to avoid any background noise. After the speakers' remarks, there will be a question-and-answer session. Instructions]. [Operator turn Relations. to now President Hyder, call Investor of the will Rima over Vice I

begin conference. may You your

Rima Hyder

Thank you, Welcome Mike, come in afternoon quarter to London. and earnings to good morning, joining XXXX our here everyone, you us today in European call. London. conference to from fourth those FactSet’s We and headquarter good

call Investor Before and from slides transcribed presentation during the follow CallStreet be we reference of at this section is by we can everyone, call. Webcast FactSet’s available of this prepared I accessed being After call Relations the is slides like the one real-time A to posted of on being point questions investors. one question to our be Web will today’s phone conference call factset.com. and in Service would via begin, live our our open plus the up. will remarks, on we please our to out Web the via To be site site at that broadcast of The will limit conclusion replay FactSet.com. be yourself course to the This on at Web will fair site.

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

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

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

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

to Finance; Phil are like Chief FactSet’s new And the President Phil. Officer, and me and discussion Joining Vice now, to Snow, Helen Chief I'd Shan. turn over Nicolelli, Financial Officer; Senior Maurizio Executive today

Phil Snow

And contributed those very of joining afternoon us the fiscal to that be many are UK. brightest accomplishments remains the consistent and Rima. fiscal We for world-class years product value. markets ended new the global X,XXX now U.S. our can existing deepened celebrated to to provide on approximately deal this of a alternative the is our Lynch, have to consecutive Bank wealth here to everyone 'XX commitment we We our new new managers XX,XXX the our since two proud morning Merrill investments. over we of globe XX with in clients countries. to X,XXX how and the net CTS demand employees and wealth for to added strength lastly, consumed number our the changed integration best class EPS to strengthening the new our to clients to offering. to in up opening achievements business during month. pledge Very employees for and and models acquisitions revenue clients the promise all us. XX solutions in investment destination started leading data. relationship and in by employees to XXXX Good we launched Throughout our in solutions, several around with of and through delivered, users the growing this return many XXX This our address wins years the over milestones our position a diversify and world these We advisors continue be the to good America XX XX and one Thanks, when the of We a over year. solutions financial notes our high shareholders won enhanced Much early growing to year. What to data of has of platform integrated for our market. largest to new years we employees standard XXXX, growth and companies our has career to is few of claim growth. setting the the standard and to by multi-asset suite risk diluted landmark expanded and continue FactSet the at community. achieved our the resulted in a adjusted analytics testament FactSet of

million. came change we X.X% in in at quarter, high the have organic change in professional we ASV. an watermark Organic on third reported This ASV. XX growth X.X%, In the quarter. services for improvement ASV a past, from the quick excluded in note new at ASV our A from

rate of at still in new in while with our you growth provided this are services, we to it important both and The it services. or Professional ASV on an rates the Investor Earlier change to XX% various area XXXX. in Day, is sales small, externally over of forward be is internally incentivized our at sales for relatively our refer X.X%. professional professional to and with at ASV goals. services force professional Including will component when consistent growth came growth we grew in referring and However, and we growth services it’s us for workflow top plus ASV fiscal change guidance rate, solutions. our breakout year line give going our

pieces the these believe now realigned We a the is trading sits a under The and for a better portfolio within year, of is end management few this alignment the lifecycle. delivering Towards for we analytics. biggest comprehensive that solution of suited portion workflows. change portfolio

our XX.X%, over operating point year metrics, key from improvement quarter. Moving quarter came the at full and adjusted third a on and in X% to XX-basis grew for margin fourth other revenue organic

EPS contributor. organization diluted and increased adjusted and point costs to in increasing the deliver all but across the quarter benefits was margin remain optimize in and second million quarter solutions. We of focused Analytics some part us expect actions banking to our risk. XX% margin 'XX. analytics, a XXXX The fiscal our close largest streamline increased U.S. this In this seasonal fiscal ASV in workstations Our was in fueled parts benefit reporting workflow a in gave This the by plan additional growth $X.XX, to portfolio we boosted on increase. year, XXX-basis sales hires tax research, and increase $XX reform. with was by

Additionally, few this content have new year business. the our relatively unique new the to data ASV ago, existing in year-over-year increased from CTS and a versus with bringing piece quarter trend highest remained most quarters. the last observed a ever. Cancellations flat quarter propelled over clients we Americas region its

X% of stability our again. growth signs the as ASV breakdown, Asia-Pac by geographic organic to improved Americas, growing XX% once improved with cancellations our to over Turning Americas and over at grew Outside Europe growing organically this ASV quarter showing quarter In pleased year results Despite our international momentum. weighed this cancellations quarters conclusion, start this X%. with with had one Asia-Pac ASV last down overall year-end and Higher growth we’re biggest the challenge, ever. of strong versus XXXX rate. to X% its

existing As during approximately we 'XX, program. shareholders program well additional XXX,XXX market. repurchase we capture our this XX shares look we to million We the fiscal buyback and repurchased market share increased to year, to challenging through in our believe to share ahead dividend. return Throughout share positioned we quarter past value under are fourth for continued this

of we cash as of represents and flow return an the the employee XX share percentage $XXX dividends. from repurchases and last free a average million months, returned to of XX% over proceeds stock Over have This form plans. cash stockholders in

And outgoing FactSet’s early turn Helen, been September. who team CFO Nicolelli the with over to who say and special success. instrumental welcome I since leadership of has first Maurizio call contributed Maurizio CFO Shan, us Before our to has a thank to I an member to Helen has me been let our you and our greatly new want

have tripled finance, adjusted we leading our EPS. more tenure diluted doubled and his than During ASV

financial in Let Maurizio me guidance about call talk now Helen results time fiscal detail will our talk who to the you over followed through last by turn for 'XX. more one our to

Maurizio Nicolelli

Phil, you, the on morning everyone good Thank and call. to

results organic growth. Versus the we We XX% fourth metrics. our quarter growth with solid and revenue with with the are year ending ASV X% guidance, pleased ended year our

in operating operating for charges full to in year margin guidance for below certain XX.X%. our was GAAP to and restructuring due margin not came accounted the the Adjusted Our quarter. corporate costs related one-time fourth

turn previous margins. this ASV. momentum of with impacts reform, additional investments we the purposeful savings in further cash saw the near-term up compensation to This We drove calls, tax decisions from which fourth discussed ASV some make highest businesses. build in our made quarter ever on in in the As also our higher higher growth with increase

Let’s now organic X% on quarter increased to of the quarter basis revenues million million to fourth in go through X% an fourth fourth XXXX. results. XXX XXX quarter and the GAAP versus our

growth This end higher our quarter. all revenues grew to increased lines. quarter. end higher third X% revenues U.S. result basis of revenue, points ASV XX by to year year-over-year X% since segment organic quarter a sales our our XX since XX billion of X% more better business of the This primarily was points at on research, sales create last Adjusted ASV increased an basis. the international analytics. cost as approximately we Organic third at increase than structure. of operating margins driven and and X.XX of as million across our increased fourth Looking comes and continue higher was our workstation XXXX in basis primarily XX.X% efficiencies the and

compensation points ago an operating in of to percentage decreased compensation were compensation. year. for XX expenses quarter fourth expenses partially expressed from of was and as hires the year-over-year XX increase costs up costs, by totaled the expenses of XXXX. compared compensation revenues stock-based primarily by period now, The stock-based acceleration by Looking percentage higher employee due legal in million, X% costs. offset compensation higher costs cost a higher basis prior legal as severance with at restructuring and points year expense operating the some of fourth expressed the by offset driven higher quarter and XXX fiscal services of new detail with revenues Fourth costs. SG&A The was and partially primarily data increase a basis lower compared decrease also additional quarter

and our were net X,XXX over this In versus came quarter account of past XXX clients nearly clients the workstation new and new client and over users. net and a from now XX,XXX mainly months, X,XXX asset users. Our quarter We three up XXXX. new managers added third institutional The wealth. approximately fiscal have we clients both

the rate, with Moving on quarterly year discussed XX% tax in that tax compared rate to earlier reform XX.X% we the effective our U.S. ago primarily a due tax the year. was to

reform. Our earnings of increased annual The toll in was repatriated historical increase U.S. rate effective to deemed XXXX. XX% foreign the a repatriation tax on was versus excludes tax tax. to which primarily XX% $X.XX from the lower rate the attributable quarter tax $X.XX this quarter tax one-time GAAP the EPS fourth to

an revenue nonrecurring deferred cash the amortization, less fair of value asset or same expenditures. spending, we $X.XX quarter. improvement other this intangible an EPS to also adjustment million, year. adjusted The approximately offset period in tax effective was from X our capital capital partially grew operations XX to cash which define increase Excluding and as XX% for the X% fourth million and quarter by a items, working lower items, Free higher capital last increase rate was due generated flow, over

Our the CapEx out space build and due technology new of to office upgrades. grew

to we turn our ASV Next, breakout.

analytics PMT research various you of the our to earlier. from at include explained workflow this business. workflow these think reclassifying the breakout to under we moving in Phil of business of changes we showed ASV some as solutions. workstations’ research realigned Investor We most solutions, The of a our As and portion Day,

XX% As Investor the business at showed these our rate grew from rates on double-digit we to at continue of Day high-single line highlighting are workflow mix you growth what with in can portfolio. and that the in manage than the slide, more we our growth as see a solutions

for to outlook Let turn fiscal our XXXX. to call me Helen the now over discuss the

Helen Shan

I’ve banker of you, and Phil honored we clients a been ahead lot both short beneficiary us. hello client. solutions the Rima and here innovative of you of working the be I’ve as this everyone. months. in for I FactSet and and to believe and to opportunities are lifecycle time, been corporate building I’m team with a only coming about Maurizio, and we Thank forward the learning a look a have joining quickly our a many portfolio team. the meeting to offerings I of the I’m FactSet

outlook, XXXX predicated a on views our number of factors. For our are

the share portfolio of be cross-selling global XXXX. will solutions. higher in value through macroeconomic same capturing our experienced a we provide We expect base that continued and growth from our believe We the remain both upselling And which client investment wallet we conditions sustainable believe essentially through propelled growth future. larger in anticipate we’ve will lifecycle primarily our and offer to solution trends will a as fiscal seamless existing

the result XX.X%. and lower of EPS is reform. As to basis. a tax be adjusted and in top GAAP services noted range provide This XX% represents margin The million the EPS incorporates operating $X.XX. and on Adjusted and expected annual ASV the earlier, services the charge. will to is expected full U.S. range corporate Organic range the $X.XX million expected the the diluted is diluted toll range XX the in XX.X% $X.XX primarily of with of tax year. both of growth expected and be increase XX% we Phil be and professional is a margin $X.XX. range a reflecting EPS in The be XX to XXXX. over XX.X% the range ASV professional billion. expected of of of billion in in guidance in in range as to going effective increase to line forward expected year-over-year prior efficiencies. rate of on are Adjusted tax and XXXX and expected to to the is range revenues compared improvement targeted the tax rate be reflects the operating and GAAP the in year GAAP operating midpoint a $X.XX combined to XX%. be The XX.X% $X.XX over of fiscal is of range absence

line that, look As XXXX, With to to you. we call back optimize grow to cost execute this our structure. Mike, for turn over your now top strategies I’ll continue on plan to to are to our we we ready questions.

Operator

[Operator Instructions].

Your from first Foresi question Cantor Fitzgerald. is Joseph with

Joseph Foresi

revenue some Is if to Hi. the deal. with start numbers about we there of could provide Merrill talking the any to through – to any and that by model? deal? the way see the how Lynch I around the wonder will associated When metrics flow the side? do ASV it able other color And you be in it of expect some on we’d

Phil Snow

were the question. We anticipating first be might that Joe. Thanks,

a bit exact about can’t tell it’s deal. So is give numbers. you the can We agreement. But let me you talk an the little I enterprise what

As multiyear a it you number of a in release desktops. this, deal and of size a it We press includes it’s would and a also that for and the expect client lot of commitment like the them disclosed to go includes their deal should into ASV some see providing half for coming What is feeds in year. you that to systems. we’re of expect the us first fiscal the recognizing this most the

Joseph Foresi

Okay. guidance? we’re included then purposes, think about just make the Thanks. impact we that how just for want sure is appropriately. clarification to guess I modeling – and in margins? of seasonality should so So kind it that of And I the

Phil Snow

it’s Yes, included total in number. the guidance

Joseph Foresi

you. Thank

Phil Snow

Sure.

Operator

from Tong comes Your Goldman George Sachs. from next question

George Tong

Hi. Thanks. Good morning.

the trending growth relative underlying the BAML recent recent outlook business excluding excluding it’s quarters, the or growth? if with guidance in you Your contract accelerating is the contract to includes discuss contract. your consistent how it’s BAML new Can if for currently

Phil Snow

Hi, It’s Phil George. Snow.

be guidance. our So may on bit a we overall being little conservative

on decisions As deals we the I have half. for number visibility still of fiscal first a lot year. that pretty previous There halves have of mentioned good on waiting large our are in of a within we’re calls,

as we on end want got to – a guess you to until to year I that. little position may at bit the those But go we are go we the And we guidance start give didn’t to Some wanted a the some of to more we visibility point. first out renewals. that conservatively revised half, of get in closer be out

George Tong

it to of sense. then margin still Yes, and on XXX margin points improvement you’re about versus expectations? or margins, Can expansion. basis you downside committed drivers talk annual that And for the of drivers makes upside your potential near-term

Phil Snow

Absolutely.

can that We bit continue absolutely we’re of talk targeting a continued we to would One we points integration just And I acquisition acquisitions basis integration efficiencies – little feel we’re there’s of to margin is XXX get can the did. of get So focused the on which there. what some XX.X%. expansion about there. us

parts terms areas. We the efficiencies Gene there some at been he’s And the of at business. CTO, so who’s some that larger of looking on. We’re those there believe in content engineering our new looking of and are

of we’ve but a that half see you also as fiscal of more reform. half I into halfway in think in the 'XX FY the that business more the done work a QX, expecting through tax a invested that 'XX. we to lot sort last first flow remind were We of I’d year to our 'XX. in U.S. through And of from like sort get people of result bit fiscal intentionally should benefit of little

So we investments made risks. some in additional

our some also of second certain gave BAML fiscal half to for certain employees deal. money in year we some the And roles. We types this locations invest for compensation did of last in

So lot from for into way we’d we make deal staffed able that we to about it to standpoint, comfortable an to that many of aggressively of with. also in goes users talked that work we’ve size, engineering as there’s be pretty obviously, rollout a a this but a were sure as up

a that. we’ve us work payback that in a this going is to year. future. But from that of So expense that the be we lot we’ve for done made should That’s get

George Tong

Very you. helpful. Thank

Phil Snow

Sure.

Operator

Chu Your next Bank question from comes of America. from David

David Chu

congratulations deal. Hi. on Thank and you the

you Investor about we of you managed margins did that basis XX% at beyond should to that? points Do as going 'XX stay in outlook, margins you beyond outsized margin growth So think where if 'XX how just it’s XX% to you XXX fiscal could or to see think historically that? and we your in assume suggested the like Day, current of terms expansion we at range

Phil Snow

out, We haven’t that David. far modeled

for deal. and you the thank So thank us for on you congratulating question the

As we as revise more know. at point. we course we’ll close, we this think And about to get well is given two for But – I you the think that, let get years we’ll information decide we’ve guidance we that. if of

David Chu

Sure.

to just just of expect kind how should the and update then and exchange I 'XX beyond? any we generating revenue wanted see revenue on fiscal contributor a any of And marketplace. big today Okay. earnest you’re for FactSet in if

Phil Snow

remind CPS. for and everyone, in solutions Currently, into we’re testing and begin allows from hosted the exchange the gotten growth the solutions open strong to exchange. continued from the programming marketplace tremendous exchange against the feedback marketplace And FactSet expecting to you the data go environment. a We’ve and data

tremendous in So we’re interest seeing that.

We have globally a within this we it’s and believe fiscal still to monetize lot of testing firms But large year very this 'XX. we’ll early days. out begin

We’re a it onto multiyear accelerate over what we’re providers very and continuing to means about platform the optimistic period.

David Chu

Thank you. great. Okay,

Phil Snow

Sure.

Operator

next Bill Fargo. comes from from Your Warmington question Wells

Bill Warmington

everyone. Good morning,

Phil Snow

Good morning.

Bill Warmington

So give say want I just for financial I then think happy that so that him Maurizio for Helen, welcome and wishing ever I’ve most the to presentation heard the to trails. And you was upbeat show.

this question side is So particularly on the ASV quarter. strong first sell looked

strongest quarters. In think seen the we’ve that eight it’s I fact, in

to So that? just ask wanted behind was what

Phil Snow

question. for Phil Thanks the Bill. It’s Hi, Snow.

a had seasonal half strong hiring very in in just we driven year group. yes, So it lot by banking. banking second the A the in was of

were group. users. have number in I that we client of and also of added in we additional focus a And a desktops banking reported our we strategic this those stems So QX some of significant think from the from our lot

where in that’s bit a I talked largest of way little a high both the there. side got sort think focus sales our on sell we’ve helped also we’ve very buy this and So on kind organized but our team we’ve and accounts side the about of

Bill Warmington

decision at biggest a specifically them? I’m follow-up what BAML to clients overcome selling and Thomson in of you’re for to is challenges try get new to the to you’re that the what for some terms facing of sense the [opinion][ph] key doing the that from Reuters FactSet did wanted winning your to question, about points they getting to and in of And move made reasons Okay. my I ask in terms

Phil Snow

Web HTML use. search and on fantastic. of FactSet case to years. FactSet this in in drive think very it all helped which have over we we’ve platform our we a it program to that It’s I that modernize discover a this and It’s functionality the for that more really done our really not piece makes this. So which that of few just lot things was of work is for to have easy the of what’s in We’ve product wealth into Google-like look-and-feel product have put very but big last platform. was work combination product A think easy a the our of I the

is our people The really and second our thing service.

in them got of move. deal the it a to of such those going for offices these during So make some was of big that to and really the the best the we’ve we to I what gave terms large things decision feedback all of them confidence had combination two was for a trial think

Bill Warmington

Thank much you very for the insight.

Phil Snow

Sure.

Operator

Your Mazari next Hamzah from question from comes Macquarie.

Hamzah Mazari

morning. Good you. Thank

around to first move question markets. just other into The potential is

insurance You’re any on verticals, side. but obviously either an corporate moving focus if into wealth the initiative there’s curious or

look you longer is buy-side, opportunity markets your you term, do at other in sort this sell-side forward? see largely business going or of As

Phil Snow

other buy-side Hamzah. not a great That’s Historically, than out client and sell-side. types other broken question, we’ve

bucket. with became more insurance of types exceptionally a a the we’ve since client in well We have we lot companies And class product. buy-side done of multi-asset

offering, income we’ve in get been our continues helped combined market quietly And business better by bounds, segment fixed our very with just growing us It’s quickly. our offering for insurance. us. which to leaps and that’s corporate So growing risk fast a

with great but part have is the through space. firms directly So corporate we that into sell also other of partnerships we

a as of FactSet suite massive as these a but aren’t today evolves. opportunity up opens to it for point good product So company our I your parts us think

is I’ll open strategy. The to thing point our other

that marketplace compelling not interesting pieces managers, way but of which can we deliver few very types now it So a wouldn’t technology product our question. the think in for opportunities the up opens just us banks for ago conversations with group, different but for unbundling you at a your and opens large for up years have ways of lots with big FactSet we’re that us we mentioned that of asset also conversations just firms firms I in had is in the the

Hamzah Mazari

you. sort mentioned cancellations follow-up question just you. flattening Thank of Got you And around out. client a –

a guess. that times said You’ve few I

Is now you Just any as going a that’s simple guys? impacted behind subscriptions views just curious headwind it consolidation? Thank on and to are last be buy-side would Just how years. think how buy-side that you helpful? few that any thinking Is about it one? thoughts you business that how your the Is two about maybe as you. that or consolidation

Phil Snow

I consolidation. some So to think see continue we’ll buy-side

I saw think happened a that you large rates to had with this bit our in some what growth of consolidations in two do European slowing quarter Europe. little

So continue be for for pressure under efficiency. reasons. to number of a They’re looking active managers

forces go market. is that combining of the to after Some

now something with get So that a we’re been over. them there. don’t that we’ve of like It’s terms a hopefully But more in feel we’re anticipate an solutions it’s through dealing those here at to and we better integration providing clients, grow help years clients. for build of and to and good relationship getting from number

whole that’s way across part of solutions client feel a can all and our research to good is reporting, opportunity. someone like from So consolidating lifecycle. we have the portfolio provide If we we

Hamzah Mazari

Thank Great. you.

Phil Snow

Yes.

Operator

Oppenheimer. Glenn Your next comes from from Greene question

Glenn Greene

Good morning.

in low-double strength to sort high in of was reason end it in and of year CTS, Is – any CTS, sort high-single, at analytics to Phil, trends, and reason So growth that the and teens splits 'XX think changes? wealth. the first, showing think on there of get the persist digit obviously sort ASV analytics meaning the of helpful and maybe to fiscal that any should directional throughout those that wealth

Phil Snow

similar and coming expect and grow we’ve growth each the that now obviously rates good focused I We are them. these got see year. coming gives of we’re all And on to think gotten the They’ve bigger really a that. similar year. the businesses for would of now anticipating But I having we’ve do growing to to strategy think organized momentum as way – are big us we’ve on very I organized rates opportunity growth an as for numbers. these focused

Glenn Greene

deal, And it quick for follow that And if that’s grew I’m the up within the the specifically the that was the included was BAML a is that on clarification number wealth only within on – case, just XX%? ASV a year-end XX%? that would surprised ASV be number

Phil Snow

the ASV of Yes, earlier the the most we’re half fiscal this deal for of call, to the recognize so as on going first year. coming I in mentioned

Glenn Greene

So it’s – I read revenue. that’s mean as

So not to in is you’re saying? ASV going currently reflected the it’s – what you’re

Phil Snow

bit did XXXX. of a of in We in booked is QX but the the half getting it first book majority little

numbers. QX and see You’ll that in our QX

Glenn Greene

Great. Thanks for clarifying.

Phil Snow

Sure.

You’re welcome.

Operator

Your next from comes Morgan question Toni from Kaplan Stanley.

Toni Kaplan

Hi. Good morning.

Phil Snow

Good Toni. morning,

Toni Kaplan

Are pipeline you wealth that deals could there you’re anticipating in sizeable the close? actually

Phil Snow

focused we’re the a the in them good are interest many in years, deal something us has deals. wealth managers largest on. our obviously of our There’s So earlier and terms general. not stated market just it’s focus, gotten wealth our over in number and for products lot the and large a absolutely. These out This of from but marketplace I people think the of I’ve reasons globally

I in different on way. has put think us really a the map it

deal this in that wealth drive anticipate FY 'XX will moving do And forward. tremendous a business of we we’ve get to put in work the So help this amount deal.

frankly accelerated really the product it So of things good development wealth manager. our which every for wealth means

Toni Kaplan

in guidance? And the assuming then us give great. expense on you Okay, interest what could you’re

Helen Shan

We in of might but interest not – underlying rates, you have some material. presume increases

XXXX. So – we’ve with seen it’s you’ve probably in in what line what reported in

Toni Kaplan

Thank you.

Operator

from Patnaik Manav from comes question next Barclays. Your

Gregory Bardi

Manav. on actually is This calling for Greg Hi.

sales about to the wanted Just cycle. talk

about arrangements. think as you’ve a talked little the bit recently I past in you the getting into enterprise-wide it longer move as

to cycle in closing deals? lengthening of any the of terms seeing deals you’re and you what new there larger seeing through Just go you these are as continue

Phil Snow

Hi, Greg.

wide a there’s So spectrum.

yes, meaningful a is You close But to complicated, But great gets can those of XXX BAML give to have – product coming like terms commitment be some going and in can example, larger from quickly last over six a they’re terms in saw well nothing’s longer. three as over anything to of new it our a that accounts very months. the smaller. signed I changed QX something materially really us if the contract. well of – more what’s in And RFP XX-month deals in a you be don’t

Gregory Bardi

Okay, that you’ve the makes to are integrated. get XX, acquired assets months bunch starting sense. a of the of And then M&A XX terms in interest, last over that

about wondering you’re interest seeing in the and M&A in Just what market. your

Phil Snow

to continue be So we opportunistic.

We’re in content. always interested

have I unique marketplace can we think to look to open will integrate in where rate monetize we that better FactSet allows actually we their But content think way. we at much content faster the at than doesn’t historically have ourselves FactSet us a a own content.

looking technology that’s anything that help a standpoint also We’re might open interesting with our strategy. from us at

We’re some But lineup beyond like deliver have in the terms to growth next we of stuff what looking smaller years. very few a there. over at feel need we that good we

Gregory Bardi

Thank Okay. you.

Phil Snow

Sure.

Operator

from from Your Peter comes next question Heckmann Davidson.

Peter Heckmann

fiscal Good morning. review fiscal of My you the average you question with but 'XX? what in could answered price contemplated has and be in us 'XX increase saw been that increases type might price

Phil Snow

over similar. that we and between and typical somewhere it’s FY in changing we 'XX. captured think see think probably X% fiscal that’s I year, entire pretty X%, the don’t We

Peter Heckmann

of services across that it size data market share market? I management that follow part you a you niche then, entire is niche you’re for, of there and lower solution And Okay. would would have you for me that how And is total up with landscape? that current addressable the say you’d the within wealth sub than if then sub a the humor the assume would

Phil Snow

that, sure the I’m caught is market but wealth of not all I So large.

which I to makes going this closed network we’ve a think acquisition of deal, and done billion. think think I the close at now and I $X.X were sizing FDSG ago the number. I think we before market year half a And we ultra-high work about the a happened that were much bigger that we current to here

So we’ve got runway growing massive business. wealth amounts terms in of of the

Peter Heckmann

Got it. Thank you.

Phil Snow

Sure.

Operator

comes Housum Your Research. question from Keith from next Northcoast

Brendan Popson

year. little want there’s This and a guess on what more adjustments Keith. more you. Thank room non-GAAP Brendan is and I the some guidance adjustments, in I than for these a of to some anticipated too for we just bit ask actually next there’s

some is exactly anymore seeing kind next could if or are of of Thank recurring those that’s something something costs you. wondering this road Just speak as what year? down you’re we you anticipate should if the that just those, for if and to

Maurizio Nicolelli

Maurizio. Yes, is sure. This

the and a we the which the range you fiscal come effort in went will improvement. really quarter restructuring help in saw So number through a into during quarter our through margin with nonrecurring fourth items so 'XX going fourth of us

saw best those quarter. period legal will one-time got got we of matters lot of costs during so number and during estimate a these going as the the you the our fourth that is had forward. concluded that going guidance forward There And so get items be items booked a during our quarter. now expensed And in

Brendan Popson

right, All you. thank

Operator

Piper comes Jaffray. Peter Your next Appert from question from

Peter Appert

Thanks.

specifics haven’t a wondering size ASV but the guiding next ex-Merrill, I’m obviously ASV of slowdown growth? Merrill you for bit the underlying sort to if So, given imply Phil, contract X% maybe of in us the on little would the of you’re in actually that

Phil Snow

the get that yet. into are the we’re a earlier, we on the being of there we the If Peter, half guidance – number at have position visibility of we large given give first apologize. don’t we’re end mentioned that going that I I first of end through So you just conservative half that second better think aware full deals as we’ll – of I be half, once potentially a revised some to in

Peter Appert

on seeing intensity the commentary to whether from your evident is the if seen of and more that I’m in that guess, while I for a wondering sort pressures guess now? response of pricing of the aggressive the competitors? we’ve competitive context – more win, are environment your related I you

Phil Snow

think don’t I so.

think we’ve years. few over it’s seen consistent with I last the what

Peter Appert

you. Thank Okay.

Phil Snow

you. Thank

Operator

William come next from – McHugh Tim question last Blair. And from the

Tim McHugh

Thanks. Hi.

growth the that driver year to I Why always that? services true ask guys growing so. is or I think change XX%. you opinion the conversation, of on wanted included now? for that? you to guess that on decision include I it the into professional And quickly the – is growth I back the guess last why I guess I growing it’s that understand but that comment Just mentioned in what was the guess right in it’s

Phil Snow

we groups software-based services. came implement acquisitions revenue little a with the Yes, content which workflow were new we to models, number area a us. than generate services. for of have bit from When we began own this that began our and a risk so professional professional of is did But to more

So but up part that that around. build something And competence our we want rationalize. our longer and requires kind our can something forward to move business implementation, we of of not it’s it’s a multifaceted massive think we as we product it’s becomes and

be out of sales piece So Obviously, to properly what the I focuses with these a and it on services. believe incent force we still we’ll bigger breaking is professional them. want days. align

you to historically, calculated the that. that growth calculate rate able way ASV do want to you’ll if So the still we’ve be it

Tim McHugh

be comments follow And just clear. a on thanks. up to Okay, margin the just then

So that of full of I basis talk level. expansion, range points you the year not for guess the at when midpoint the XXX is

I exit are the So to understand about the guess cadence the comment? across Is rate? that of that you And year? talking margins trying

Phil Snow

a that is targeting. full year about XX.X% talking we’re we’re What margin of

Tim McHugh

or it the just guidance Is correct? something, middle of XX.X% Okay. is because

Phil Snow

a Correct, yes. It’s wide range.

Tim McHugh

right. all Okay, you. Thank

Phil Snow

Thank you.

Operator

And call the Snow, over now CEO. turn I back Phil to will

Phil Snow

All joining for today. right. us thank you the call everyone on Well,

If to you today’s quarter. to ends Rima call. Operator, look please talking We additional forward have that next Hyder. questions, you call

Operator

call. today’s concludes This conference

disconnect. now may You

FactSet Research Systems (FDS) 25 Sep 182018 Q4 Earnings call transcript