FDS - Earnings call transcript Q1 2022 | FactSet Research Systems Inc.

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the FactSet Q1 2022 Earnings Call. At this time, all participants are in a listen-only mode. After the speakers’ presentation, there'll be a question-and-answer session. [Operator Instructions] I would now like to turn the call over to your host, Kendra Brown, you may begin.

Kendra Brown

Thank you, and good morning, everyone. fiscal earnings first FactSet's to quarter call. XXXX Welcome

the open like questions website. out conclusion during website that we via webcast presentation begin, phone on slides available at point investors. website call would will After remarks, I fair please on the will of via reference prepared Before factset.com. the be The of to be this to one to we call. one limit at A be replay the we the accessed be To Relations slides Investor section yourself can will posted our this on from our question of our call follow-up. today's everyone, and plus to will

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

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

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

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

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

Before soon. we we all sharing and April, I Investor let Day early information know to are you get started, want that in an be planning we more will

turn discussion to over the will Phil I that, With tuned. stay So Snow.

Phil Snow

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

first as let continue look I'd call role. of as Investor two FactSet her She member her begin, to than my me welcoming for who Linda the Kendra of working expertise to at of serving a Relations knowledge program. a also Relations. industry most and Investor our team. deep Staff. with new to forward welcome FactSet I I Before earnings growing worked Head by to like Company the to Chief recently of brings decades, became has Kendra, recently start Kendra FactSet's more

her our have her operational to begun execute We here and are and strategy. as deep growth leveraging excited financial to already expertise continue have we

Turning fiscal on pleased FactSet plus our highest share had QX, off grew momentum ASV to Building from record. continue high a wins. retention from quarter's clients X% to continue institutional I'm expansion rates quarter a that The and teams of the go-to-market strong our by of These top strength ASV start sales accelerating our new this to our to to on to growth organic analytics the teams growth. is QX achieving forward increasing last QX. workflow performance. and strong contributors among of to professional increased and year-over-year strategy. years incremental business services the drive in we performance in to line client-facing of solutions. biggest XXXX, clients pace QX, we drive accelerated in asset our carry number and this workstation as technology The and management continue see while existing investments our content in two were growth The

is private allowing By from funds rates hedge clients of broad-based. growth wealth, We double-digit more and differentiated fund this type, were our to and leading capture platform us capital banking, well and as partners. saw clients. and client We our ASV as corporate and wins equity venture FactSet's content content seeing solutions. are share open for analytics meet with demand and demand workflow increased wallet

performance a resulted increase in analytics solutions retention investments in technology, client to wealth that board. adjusted year EPS our are Overall, sector, support across and renewals including and from deep XX% we pleased and continue Our period. in content the rates the prior

a you through guidance. our details the operating margin minutes. few adjusted Linda Our exceeds walk in of XX.X% will

final and remain achieve we plan, of on our investment the track in to year now multiyear goals. are We our

Within content ESG, our our scaling markets workstation platform, digital data wealth, our and deep workflow for on fueling are solutions. is content growth. sector and refinery, all hyperpersonalized focus Our refinery private creating

and have telecom within real grow and sector launching data, into media technology, higher in deep and markets translated private sell-side advances continue our in our data connecting and growth and November. We retention to acquisition further private value to estate our Deep investments And clients. monitoring, capital our equity differentiated of recent market our Cobalt by private venture firms. sector and providing portfolio tracking strategy with

which meaningful Our front, the ASV. continue add efficiencies deliver office across to workflow back middle and solutions,

data integrating Our major analytics to a month, Exchange, so. APIs and and data Data with provider launched we analytics do over on first this with cloud-based resonating Earlier increasingly clients, we Amazon the platforms. sets number are our and are XX APIs of

to business Analytics recent across the to Our efficiency, speed trade income execution. of enables fixed for by was trading surface continues asset clients This new our & a our greater and with and contributor to addition of classes quarter. the grow, insights the business and support significant during growth trade bolstered Trading

implementing types. successful client each client a our client solutions and differentiator clients are dashboard our made-for our as are adviser working for healthy has solid a wealth product our and offering. on and developing for pipeline key We evolve FY been 'XX. hyperpersonalization This Our workflow this of as focused maintains committed teams to engagement incredibly to with within identifying, see

a strength impact expansion new price accelerated customers. our markets. managers Advisory growth The by biggest retention wealth among workstation accelerated higher to and and clients improved particularly saw across our Americas owners. managers asset asset growth ASV across retention Research our supported increases. This by from as to sales past improving regions, among the The organic ASV contributor by growth capturing X%, also asset and In EMEA, all continued X%, to strong and was strong across consistently driven broad-based region driven and the over we positive quarters. businesses. benefited had Looking was three in strength

owners I delivering of such managers ASV results FactSet Asia growth another primarily again proud funds, year. XX% driving start asset team many Pacific of In hedge quarter with to CTS. for and We across summary, strong had saw to driven the with by accelerating the robust growth. the wins countries asset am

and The rest first slower our quarter, necessarily as fiscal year. of indication historically the the the not year an to is for of you know, a performance start

However, and deliver QX our our for from on year. has positioned targets continued, well to we the momentum are

As such, in and we pipeline remain and our guidance we XXXX reaffirming fiscal in confident are we to value our clients. our delivering are the

pace for up hyperpersonalized performance-driven we experience three we people, execute workflow ahead, continue as these Looking And mindset delivering enhancing that us our the to the change. clients. next-generation we solutions culture focus strategic on to scaling priorities priorities: client on content and our solutions enable believe through will refinery, of and accelerate

committed talent leading and build experience of open skills and our the in analytics team as We developing and the to we content investing platform. are the industry's

earlier this when of milestone an XXX part Finally, FactSet became history company's in important Index. the week occurred S&P our

X. addition on was, fact, by S&P Our in predicted October prediction constituent's our signal XXX

a tremendous FactSet to help testament our and do work. and clients Our our moment inclusion for efforts a our is growth to proud their best

collaborative our a team's over take spirit proud first smarter, make tremendously Linda, to quarter us Our I'm specifics partner, will you of of who through it for I'll create to drive and and creativity, the now more their trusted our solutions turn dedication performance. clients. innovative

Linda Huber

and everyone be clear but that performing in of few it's long us with from ahead And growing been as two and growth deal outstanding flow talent there's of on as to runway to the been here I FactSet's Phil, on growth. FactSet short a driving its undeniably consistent Company of of still become shareholders. team. I've working paying is call. shareholder organization. for over really just build top value FactSet strong part team that the off a time, pleased the months, free past for to generating the across are the history the today meaningful you, the to at performance and Thank I'm line has hello well of lot forward There while of really to and investments a made cash returns. look accelerating generation history great years

as our growth, quarter of this on performance. to are at high terms services. both from release and morning, seen first line acceleration I'll press with single-digit more you our first plus quarter, now professional revenue share ASV details Looking in top in now we have organic pleased our report the

organic plus on First, we ASV X%. ASV, professional by services grew

previously, typically a see deceleration seasonal QX. we in As Phil noted

retention with solid supportive increased analytics our greater Our and for reflects to been solutions. content and growth portfolio demands banking demand ability our realize has higher in and product, performance workstation The marketplace pricing. our for higher

growth. continue X% to As market Growth & exchange driven support to increased from while All and Trading conditions pricing. primarily organic excludes year-over-year revenue any Analytics Advisory. $XXX continue Research subscription-based & notable evolve, by impact value-based increased regions was million, million. $XXX by revenue ASV our GAAP which experienced foreign X% to and will acquisitions, to

Asia organic at segments were at and growth. geographic and Americas came EMEA analytics, also our region For workstation on grew the Pac revenues an revenue Main XX%. basis, in CTS grew X%, drivers in X%

now more and used million primarily organizational expenses. Turning product this to reinvestment and a the restructuring charge of by XX% GAAP structure. anticipated impacted quarter Ongoing savings $XXX million first We efficient expenses will $X drive talent to incurred period. in key operating recorded changes for during the realignment be to grew from a empowered retention.

a consistent the of a pulled in we space on market, with see or we remote related optimal prefer to our vast York recently expense addition, million City. employees vacating hybrid in model. recognized and office We arrangements In $X majority New certain work working what

our previous work we responsibility decreased decreased Given and Also to operating XX to arrangements. our in are basis the XX% adjusted by this margin QX, to corporate Charitable year, points facilitate basis our reassessing the GAAP our points Foundation we our to estate footprint Compared operating XXX better to social margin new preference, XX%. goals. by FactSet real reflect incorporated

exceeds on this before, measure. stated this As guidance our

Our by lower expense. increased offset compensation expenses partially were

This of sales a our higher also the accrual transformation and increased these These bonus multiyear digital by of and shift real increased The on higher base. XXX personnel expenses infrastructure partially higher on and offset an of last basis on cost stock SG&A our GAAP and adjusted higher include adjusted year to estate compensation costs GAAP was XX part basis lower plan. as ongoing points basis public costs. basis. basis points revenue, our an on and was When offset data a expenses compensation, include higher As increases. lower XX expressed a reflects expense of compensation existing for exit basis employee was This than basis. XXX year-over-year. and drivers basis cloud revenue, percentage investment our on employee points primary year-over-year partially percentage a points basis Lower

to taxes. now Turning

EPS was by GAAP tax of lower a a exercise reconciliation the The our Our to stock offset grew of by X% rate the XX% of the payments of EPS expected. expenditures higher lower to flow, reduction the revenues record last than of our the quarter, employee of the Free period tax rate. to related price. higher payments, diluted rate and rate due is the increased same as operations timing benefit we tax This options to prior to the for due year. $X.XX, press compared XX%. capital be result million from to rate tax was to was lower annual cash was This build-outs. provided this $XX adjustments benefit income. last year's driven capital release. for from cash at quarter stock a higher GAAP a caused over This X% in to generated year-over-year of in estimated primarily quarter facilities annual decrease bonus was $X.XX year. higher-than-expected EPS U.S. partially which $X.XX versus defined A XX% and as less Adjusted our spending, a end

clients driven We of ASV compared and corporate grew the XX%. prior total remained which by Our number the of retention to more by to clients. greater be year, addition the at continues than wealth XX%

year-over-year, client success and Our which and of our investments our efforts of improved to products the XX% to retention the sales teams. speaks

returning our $XXX. per long-term first For value of We our repurchased shares we to disciplined $XX committed million and share our average XX,XXX the buyback shareholders. remain an program stock for of of common quarter, to in price at a total

we business our say, tale are XXXX. guidance We halves. two And a reaffirming as of often our for is

now well on clear While still our people fiscal our questions. positioned our Operator? And on year. with are we targets, our it we're We and momentum it's and remain and continued that in for QX to focused from the shareholders. for has we developing content, value early deliver is technology delivering believe that, that ready

Operator

[Operator from Barclay. question Manav with Patnaik Instructions] comes Our first

Manav Patnaik

that the Linda, FactSet terms just quarters. has revenue of to that over you a comment sustainability just I along, in just the shown on follow-up last have that and on the wanted last kind of growth acceleration visibility get few the of

Phil Snow

that Manav. I'll one, Yes. take

growth we in good off. The both really we I are sustainability platform about our that as the as feel paying investments very rates. content digital think of well So the made

what investments all wherever that noise think, just APIs, then on where these best is Amazon, the the is industry lot creating driving in ESG, software an through very interface they technology can has platform side, Snowflake, And is we it important And understand So, I nicely. to workstation them. content, making sort are pleasing the really a invest the content the data of side, sector, the want opening they the we're it's that our serve in and growth to in the clients of that, ability in, come of it, to all through sure to whether then to and runway. clients continue our our up deep and sift wealth just really name it, that's the up you in on that

Manav Patnaik

this guess the I in well. Phil, side, then notably. the it. was sell you've obviously, buy And quarter, most focusing Got as acceleration a side just I seen the bit on more,

don't about thinking you lines? to So signs side more continue sell those are just any guys slowing -- there that? just Or know along I start how that's down are going

Phil Snow

quarter the side this had for time a last good relative We to sell year.

in I'm the is what most buy about However, side. excited acceleration the

seen, segment grew, within we So think, us, points. that a the they're basis side largest type, as just the measure see for you The can it, fund the that whole, way XXX buy relative very largest that to I the last solutions a types. obviously, our institutional lot other asset we've years. few resonating strong with the managers pressure a where They the of over But phone are had quarter them.

it year. biggest relative an to contributor absolute last was I the on basis think

to are and So beginning we're really side our about buy hold take solutions particularly the bullish again. analytics

the as there saw think I pushed a we side. how of come a have buy I of to I all -- think, pent-up, And So, to some was think kind fruition. there environment, sort learning demand beginning within operate learning off on been lot to we're that of deals new

Operator

with Stanley. comes next Toni Our from Kaplan question Morgan

Toni Kaplan

you again, with speaking great And Perfect. Linda.

in how any wondering it's what and that and capital from if strategy sort of about so Just you could far think going about allocation seen practices any you Moody's so bringing as you're really talk with you've best MSCI from and changes far? you it

Linda Huber

great it's Thanks, to you Toni, from well. as hear and

we've So top our weeks. terrific on about the working do we're far, is margin. going to to been on everything pretty what great. It's start been able some XX growth with And for line on this quarter, going pair

well about cost, charge. So real estate four we And front, third-party you technology, a compensation, the restructuring charge on focus $X.X data. as to $X need saw, a would estate talked as we've be million million real the did of buckets and margin probably big on which

sure we've places. has here the And is a you're in to best that make this is got practice, efforts worked plan moving out-of-the-box along. what obviously, other the seeing first So here margin

million able the the we X% spans to So $X of in corporation of managers, the number one. were we compensation control charge, reduced about take line. the We layers off and restructuring the for by increased

some So back of headcount from also this invest quarter. Headcount into did been that savings talent folks. us. about employee the compensation about that efficiency additions. is those We've and for And high comp very we was very helpful very, flat X% line for performance potential to careful key

to footprint to And the well to conclusion can margin we on that at best look we're estate number think have analysis real excited the a because are what But we to our the about that to we look on estate given estate here haven't do real we've come footprint get rightsized. offices here. sure the our employees. is at very continued take line, got real for a yet employees line, the starting flexibility. of said, our The about as journey a work On we that make

decisions on yet. the that GAAP the quite we've margin our operating for You see No exceeded capital discussions. margin. official the begun guidance allocation, And

January, there but us that our one, focus our allocation. paying far, more on releasing is that on focus that specific also we're now. for And be be investments that. XX-Q early on made. we good, Phil so good so about after we've returns more and to we've pandemic, capital will looking on we'll be see Not yet that speaking But good get the to where continued We invest really some quite in to fact the will and the about through off margin,

some continue invest back. We to pulled where others

and thanks the good, for far, question. so So,

Toni Kaplan

I Phil, follow-up, from ask a road here. wanted product sort about as map the just And Terrific. of to

mentioned the You gaining sector traction. is that some strategy deep

And how thinking at year. color just sure excited into are fiscal And so -- you're some about I anything the guess, -- this what's that get you we'll on Day, Investor but next? I'm about in

Phil Snow

Yes. bit three Thanks, that Toni. still off is of set There work we to do ago. finish work the years a out to quite

track on deep for we're sector. So

as the we So industries script, we -- about I a more couple talked there. in released

So go. to we've more a few got

continue our ESG We build coverage. out to

So, excited one well the good when -- very And it continue is to Labs we we build just of growing coverage. a the of we're acquire clip. about at Truvalue terms do that out like that's data in our one things acquisition of

But and for there that's to lot of effort we behind acquisition. the on that. a excited super what We're out So a the we're then build the relatively data private to about offer standpoint. there's going from both just workflow continue And new area market us. side, Cobalt can

lot we and of think those. we I say the a the this market side, still we of exciting really it's then are can very concept side, on say best content And action. I'd of those software once all next on a would take share runway, ton of So complete still and

and day. firm as We're So really, firms. going things through noise may do seen we've of sort about, XX lot been to that in that spoken of he the understand and first allows to sift has wealth concept workflows. a or sold to adviser as a given our which want she of the we've types interest other to dashboard, on any other And number adviser extend what an to

but be as So it's that, going do for us days a early that's to think differentiator that, firm. still an important we for

Operator

Ashish Sabadra Markets. from next comes Our with RBC Capital question

Ashish Sabadra

I results. on is solid the pretty products. on was demand momentum, mentioned your down about Congrats you wanted you end good demand the I pent-up and pretty good Phil, could further these about obviously, wondering opportunity existing how hold or whether analytics. just share. you're market opportunities. if to about just strong gaining talk applications? those where big an wondering just as replacing for are you I implementations, you then think also And was could are exploring we systems third-party talk you in in-house if

So, analytics color incremental on any the front?

Phil Snow

And products Thanks, as it's Ashish. have you there. and of portfolio a solutions broad we know,

down. So maybe I'll break it

there are In terms and And research we our new doing both our put what office of front those have there. capabilities in trading very of are in we environment our Quant solutions, well.

So provide think good trading very in upside office income release future. the capabilities we're And the some should I of of our seeing the adoption front good solutions. fixed

feel office, we released we platform, our a of good ago. In We've a So office effort the quarter very there. on as the ton We've integrating had and side, a put portfolio of that we're seeing management lot few we those years a assets bought middle well. into front good interest.

had was and while. sort a flat good been portfolio lot a saw we drove of and for fact, old what analytics analysis, very that uptick In there, of good

continue to there I sales continuing the well in that sort just of testament, we've the front. invest execute So of and that's to to product to on us a work done some think,

opportunity. a today. just ton think, $XXX mean around million a we see I it's, So, I of business

performance nice driving, There's side. a we business, what reported that's for differentiating amongst really and of FactSet that's on our growth the think, forward. has been the fiscal of to improved relative of that which last I the think end be the the I what's excitement at been but year, see lot segment buy and moving should rate of team it's

Ashish Sabadra

And helpful was we on as expansion an Should margin I just if very you itself, the on at Thanks That's again Investor opportunity providing well the these mid about a think ask about color. out? plan And capital maybe Linda, as the you follow-up allocation. for as the opportunity takeout and wondering how I front expect or question. like do color the margin long to cost when that that buckets cost term? cost do can take update provide maybe on margin you or four opportunity think of Day? expansion

Linda Huber

maybe your with Ashish, I'll start question first. second

opportunity, improve has it's quite margin and to margin go room some the FactSet to front. clear the that On on

do at quarter, I So four carefully, going what on take. and all what we benchmark said, what should that seen action these see buckets to as we're of look going very And this is you've them we're start path. to a is

our good, year XX.X% sequentially. XX.X% is the predict operating really for is So that which this adjusted quarter, for to margin ahead margin. hard to this very guidance of We're

we're So every more very day talk guidance. move this. April allocation, I with annual going we'll stick the a COVID. to happens eye you're a the have see sharp We is focus On at about toward new on currently bit X, point. we day think as capital right, which scheduled we what as this with margin And little a Investor like is to Day, for would just

investment-grade in the companies BBB I this space think in many of companies directionally space. the sort are BAA, of

earnings think bit about we'll the that next and give as more bit Day. you think Investor I little guidance move we'll call we further, little and a a through

Ashish Sabadra

very That's color. it was and helpful once helpful congrats No, Yes. very again.

Linda Huber

you. Thank

Operator

UBS. Our question Alex comes with from next Kramm

Alex Kramm

usually X.X% opportunities think I about value-based your last you've bit to recently you prepared helping look I inflationary little But environment out a year. quarter, increase, in think remarks. pricing your the that that of talked you added Linda, I times Americas mentioned, when when flesh Can about you pricing a potentially that's think couple the I have next you. more?

you the whole So reprice don't clearly, book. across think I can

ASV is last how maybe that a about about how your much a in environment? reprice? obviously, can little year feel And talk So you this of inflationary bit then year, you -- higher actually X.X% from

Linda Huber

Sure, Alex.

start me will up Phil then pick Let and there. from

the is to of if warranted indicate one note of that take to can our X% that rate at is things So up of the inflation. contracts or increases important most we that price

Now we're team, think obviously upping to been Helen not on inflation, front note good the to price important Shan going provide to for of customers. by job realization careful sales has up a price quite higher. recently I which value that the of being bit But led the it's rate to has done us, very a to the appropriate our

little with more turn a Phil him it the over let in and probably to future what we for speak see So that, about price. I'll bit

Phil Snow

of Alex, think that have the FactSet. on of Helen sort rationalize the put years SKUs frankly, got in pricing did so we a Yes. had power Linda Thanks, mentioned to that a in I two lot yes, -- amount Linda. she last of good and we massive work,

I at little FactSet one was In than SKUs more were molecules a me point bit. the which in fact, told worried universe, that there

It's less done Helen we're It's using to a making have to be the they And helping made making for sure the new efficient. worry sure easier. about certainly of we've new packages. salespeople in more much that. terms it so job us the these great So And clients. -- lives of that is business, are rationalize customized packages has for

sort in -- and it's it's are an think easier clients them. marketplace of choice providing sort of value I the for more

think way on clients way and once, and do early have not as the keeping of in we its all a the but it sure relationships to a to make our with going So, through this we're systematic this, I priority. and health we're that going at we're great through top move days just our jam them

Alex Kramm

the then severance going Great. some of these to just be action coming quarter. this are savings And Okay. decent secondarily, I to guess, taken you said reinvested. margin, obviously, And back

to going first little reinvested is the I be, these come would color question give what in the I mean, expect it and these savings quarter, was rest how to savings? bit a year, don't later then they we in margins look decent year of you're cadence your But at quickly should So I year-over-year. be. on and can down I terms as the any going but this other near-term get for I you us guess realize know know reinvest last up was the And year. of to the margin my you

any help be here. us would So you could provide helpful

Linda Huber

Yes. Alex, the as as tough sales, to I run terms has predict quarter detailed. This has in said, Phil first it's strong exceptionally of quarter-over-quarter. margin

of plans partially as the a plans to makes performance corporation. One things the margin of that we with and noted team result is that, sales with which and bonus the quarter-over-quarter rest about it the difficult talk the the associated the of

$XX you plan. strength versus year this So in last in fact, between year, for QX example, show to that the the last And performance is the just year, number million, we put up for $XX this year. million difference

improve terms choppiness will coming run semicon that headwinds, the some year. continue. has So these some the we continue We of took potentially move the on year making to hard margin. progress as But of got in will what hopeful through rate we so work as that in are the from we the on the earlier situation Fed we've discussed charges and

first that but kind to it here. So, and this But it's on the we're we're progress the taking pleased with is. think quarter tell Alex, we've made, choppy and the as the environment being our and of we've market we tough as hard steps taken really part, right doing with actions

had he we're wanted to don't So, know, add. optimistic and keeping anything Phil a on eye more everything. I close

Phil Snow

No, Thanks. that's good.

Operator

with Our next Stifel. Shlomo question comes from Rosenbaum

Shlomo Rosenbaum

bit little more could a talk you maybe Phil, the journey. about margin

had reinvesting growth. margin incremental FactSet certain to over drive of historically, terms a long-term certain a level philosophy Just revenue in

-- the about that that there With level we're talking same that margins different philosophy margin idea growth that and versus margin of is a of towards discussions that of Company. for taking -- revenue long-term the some balancing continuing, is is a you're kind kind go targeting? Or in but is the for value the is the or margin up, -- today driving we're approach for target have room to we there range higher the terms

Phil Snow

Yes.

continue So to you. talk so last And company, thanks, and Yes, we our four the it's content Shlomo. to that technology in to decades. will important a We've reinvest done do that. as we Good that product. over

invest So to would thesis here a I FactSet a make that do the way, back then. a back which more in of step to big We're couple back piece we believe years ago. But took in had marching we was that that the levels efficient. of technology

we tech a put lot over we be margin the think to we we what versus time And that stack. do balance in, of much terms to terms the there's of business. by in how of have reinvesting in leverage in just So efficiency gained of

Linda Huber

I we've be We that on the Shlomo, increased would to continue, And hope tuned year. this a would basis XX trend points margin for by add, year-over-year. would but stay that,

bit other the we find sure to able focus and management correctly that recently. portfolio with make just if we're right, the we're more have little profitability. piece yet Phil to we But that, you fight suspect of on efforts to just focus one Christi. this may product order. not sure want product And yet margin. in little to things a more going under watch that we is measure change think need announced how some a prune to this. get to may we're say the more we about can't trim just anything Is And or the there I be going that we we have of and if bit

Phil Snow

Yes.

can restructuring, bit thinking of Kendra management more we we're Company part a detail maybe think the where conversations a in But I with in Linda So about the here. your they also product and reorganized way later, follow-up provide differently. little

we role Christie the organized. a Product in different So Canopy Chief did elevated Officer under changes terms of some and how function well in that result

Shlomo Rosenbaum

Street only Wall of terms and tight I just people. a a sure secret What follow-up, make seeing usually that note you much how about invest and in just now. Okay, you of great. see And in on? net mentioned the just how quarter of just for a terms going it's is on be really did of there purposeful much that that trying what retention right cut lot additions I a was new employee in a I just was investment my seeing there's the one internally? I you're little don't six was to are going you to of manage in headcount, key wondering in is across talk some that might bit movement can of you of mean personnel rein, churn to churn.

Phil Snow

average just has Yes, becoming Shlomo, organization. efficient the and on one one lot the a from mentioned went do managers, with that we where I more we company. of a to control through added we of for and us Linda as that layer think span exercise spans removed

and the been of hiring any in need succeed it's as it attribute very making would is future. But focused that we're company, always proposition to war I functions roles the on most the So like the We're sure as to retaining really sure that. and cognizant strong of employee critical for that making we and right, affected we're talent. that value

Operator

from Chu Our comes with David Bank of next America. question

David Chu

So deep helping definitely driver both sector retention channel. new the has corporate obviously business to be key a of appears been and

wondering discuss is competitive assets? how can is unique other you if wondering, just providers to Just landscape data it how differentiated? And these relative your for and data the

Phil Snow

our is of the to that great just differentiators, does think David, I one refinery that data sets. the job in a Well, data -- any we have connecting our FactSet other on

that just data in of demand, of for people terms alpha entity very sure ton are process. value to see as of data detailed just linking investment making this a broad-based deeper we we're map. looking their there's our with obviously, more for And So to data everything all

in So, just demand banks. for we're this seeing not

As out, side. you pointed in for seeing we're demand seeing We're it demand the buy it on for corporations.

just making moving data would generally say with I the clients. visualization content just So we the the us, is market quickly. We're well available but feeds The well. through as APIs, very that going for important over with in competing and provide we're which our we're is

it next for generation our treating maybe sort just of data we're as So fundamental clients. of the essentially

David Chu

Okay. on Got estate the side. real it. And then just

is in So is my any not guidance that sense reduction today.

represent savings Is margin that upside fair? to potential guide? the any would So

Linda Huber

are the would have would just that, that the longer leases some caution we case. I that it's that David, possible be of term.

of we take going about to collection leases of And want so to it's think to that would us time change. a the bit

about our move yes, as may say and finish more we So directionally, to we analysis we some have this as forward.

Operator

Our next question comes from with Oppenheimer. Owen Lau

Owen Lau

a opportunities progress clients? the one offering of to from update quick the service Just me. ESG Could please on you and provide this in some

Phil Snow

Yes.

I Yes, of on firms lot we front. opportunity, do ESG many think Owen. like a you, the see thank So

about the also ago. And I that into So done, job continuing ecosystem. year integrating Labs acquired of to we we've good think, a it Truvalue a product. well, done sell FactSet We've

your everyone, for that real-time is now differentiator process. So ESG example, outside in an Truvalue of at remind that for it's evaluation look a as a more And you is company, of can an just doing. in Labs the really portfolio overlay, it's how use company analytics and to

out terms really optimistic coverage very we're on other. way look important. at or the the system, I'm or firm to or the one want on of think going it business type depending throughout about the just stepping using So workflow, which will gas in we the building like this, to here ESG be everyone's for like

us, our but relatively So we're with very it's for progress. still early pleased

Owen Lau

Sorry.

you better Or party? in-house? just outside So me better build from think it's do to it's the for think you buy service understand do an that, to to

Phil Snow

Well, we both. offer

We're within We very providers FactSet to true open. different XX this. ESG about up in Swiss we're FactSet. think I have fashion, probably So

going solution, just It's we're to regulation different sort I solutions. what providers, than the clients -- half them elements with different of talk see I ESG of using but are still they're their and building ESG So of terms is mostly in so exactly of not on. own clear where when more

opportunity I there's here. a still lot of So think

most because FactSet right? So data all want Truvalue of them, just and the it's us one. than firms with And themselves. easy for than map, dashboards. not, on very all us, of more manage integrating more make entity that are that we our one that's sticky. Labs, connected with that's make but often They so they're don't fees building it's have these things to fine to And own If their they take

Operator

question comes from next with Jefferies. Our Mazari Hamzah

Mario Cortellacci

Hamza. Mario for This Cortellacci in filling is

in Omicron sales maybe through Omicron sales office impact But margin how You just out to cycle? like delayed sound indication side. mentioned or packages? to any us push it's earlier, of terms is maybe reopenings. analytics the the think walk potentially Or there on guess, about guys implementation I Does of, you the any on could it could

Phil Snow

the performed so. exceptionally two think over don't we've mean obviously last I well years. I

this do And best our offer lives. we to So we figured of out want terms the it remotely. own balance to in do employees their

think or And that anything. employees. we're everyone. paying are thing change attention local us We But moving sure offices of clients, city, for business it's to our by by and business, right can regulations vaccinated. open our So in just and see of state target come I probably I our our with doing working here terms sort don't the another if pause take to make to in country got our employees running -- it's going and for then a they're and we've just

Mario Cortellacci

is just then my around productivity. sales And Great. force follow-up

trending there? improvement guys for how a today? XXXX trended there remainder maybe your plans for guess You any for employee efficient, much being that And very there? room And you your give or the it's base how So sense it's guys is then also, more of fiscal hiring -- how maybe, I us indication you mentioned but is the again, sales what year? are can

Phil Snow

I productivity, runway going believe, do sales our there's think up, I there. is and more So

different made of certainly moves great of the Helen firm to can She's clients. and Officer. hit doing few types the force Chief running a sort So sales we ground as type where job there. restructure She's by a Revenue on focus

lot systems the years. few last information a invested in we've our over So

a mentioned, some the lot I were great done incentives FactSet. think of is for to in in team, there Helen effective rationalize the sort place on sales in we've putting packages I As which QX.

sales So great. a lot of levers lot that team success. of And there's having we're obviously, The pulling. it's is a

off got team. we might FactSet have against facing sales clients, and So the of a and an a be momentum. great fun working kind at team to together, service. having It that front of see they're client it's on but well big we've great It's very couple all this our of people a thousand order

is from consulting how created they specialty salespeople we at just hiring, have really certainly ranks we that keep up FactSet effective and know So makes well the a people lot but come good will and salespeople of essentially our what FactSet through so product.

Operator

of Andrew Blair. question Nicholas next comes from William Our

Trevor Romeo

Romeo Trevor in actually Andrew. is This for

which nice First, client retention increased to I years. highest XX%, was just to I touch the on side. wanted retention It was to see several think the in

room if realistic might for to increase have that Just what you wondering target think further maybe for you and client be a metric retention?

Phil Snow

And of this service improvement. to been is just focus and they've in operate So teams it's and sales great this see the environment. dedication really again, the the client and able well to how

And to really been the allocate off. something of extremely it's and kind has amongst products, stickier increasing. the And with paying distribute and becoming I points of the know Helen that that work is again, part clients why critical strongly I stickier retention stressing sort well our of it strength There's FactSet think, teams thought how our been multiple workflow. sales and with that how in our how this just so So many about environment. reasons and has to, clients' she's worked just number to that team, we've work of there, a of is

Trevor Romeo

out anything think can Great. bit the other in the in bit two regions the then more remarks, stronger particular, this others? the quarters. call the Asian there you touched than benefiting Okay. in I And there few a ASP been a on growth past in but has Asia Is markets, you prepared than that's just the quite

Phil Snow

easier little to mature region, it's it to time. solutions in newest for and Asia that We active market. would And do entered long I a And lot than our alive we company. for than say of we've management, opportunity out I in in we every the the see other FactSet but manager solutions that FactSet, has bit everybody, two It's be a great might I S&P built. probably other still solutions think And is an think active have just be of that, active but regions. have seems Asia of be market the in XXX, a grown that some managers. just well more there leveraging some we faster is in terms a for but it --

Operator

McVeigh question with next Credit comes from Kevin Our Suisse.

Kevin McVeigh

mean retention but sounds And congratulations unpack know That's that ASP up. maybe And component of pricing of services, imply a probably little much it just kind a it higher pricing pricing, I unpack going a on you core -- so fantastic mean, right? but inflation How the the a there's then to should don't little better S&P then Linda, that? remixing Because be should it. the to opposed as bit? like be to obviously service of the period can rate just to of bit? the and upside some I is outcome. in I or the a maybe can you Phil for value-added admission. going the you're is of there's

So understand can bit? dynamic that you a little us help

Phil Snow

Sure.

acceleration question, very So or the was this first broad-based I success quarter. our for think

to. region strength we double-digit of and saw all lines. And mentioned, sell as saw growth every we across we across strength very business I in growth, types three our relative firm strong saw of many we So the that

all areas. just point our content in terms increase then And usually, Asia made the of in doesn't for That's Americas, in these and would I until that major QX price Pac. for of go thing. to we've technology one So in and QX apply clients to EMEA investments price, different price in the

up say, answers just to new price your these point, with that it realization across do Hopefully, we've that would I this So packages created. question. has to

Kevin McVeigh

a because are us a That folks lot, are And but stock, Where any is there real cloud a of your quick, just terms then you because cloud enabled can kind that may the where bit? adoption? where but are adoption then help more to little right, that? obviously, from And cloud in be And like your business. internally then obviously, does. perspective, focused you importantly, is you on are your internally? transforming clients, frame of externally you frame It way client where

Phil Snow

for mean and than that. with strategy. public It's well we're And like Yes, the move Snowflake halfway also, I a you program about multi-cloud you can't more our we're the give clients. to Amazon, firms been cloud. we've very public partnering for FactSet, percentages through know, which to I both as

So are of the the every form so digital reason some quickly firm single cloud. clients is there you to transformation. that moving moving we're quickly is through Almost to our going talk

our on clients content providers, this, and So the face teams technology about stack, also we've we we them so down us fact to across spend focused so do their what content and and can with tech these we're allows technology off to have do providers. that what talk made help the but can progress, them sit much to really and help rationalize

we of have of doing now, the be aggressively ago. very over that of I success non-negotiable. all think speaks So to two excited sort it's I last And again, to years do that particularly some that just decided we're going it. to it I'm we seeing quarters. think few sort the were We

Operator

comes next Research. Our Keith Housum with Northcoast question from

Keith Housum

can versus you guess, customers quarter growth. and Phil, that question experienced talk to the terms existing new A adding? customers of that in quarters from you this prior you I it growth for the how to guys on growth compares you're

Phil Snow

Yes.

terms we retention of saw year, we to think new and expansion, last saw relative I of So QX improvement business. in

broad-based. again, think So was it I very

well. speaks that we're I it, at on here types we're and every and think again, how just you look see new business this a did firm of see a new other lot logos we corporates, added were but those uptick some firing good our cylinders it business all lot quarter. across by seeing A can front, But the good way we're measuring driven of to we momentum. that On you as

Keith Housum

quarter and about same three some pipeline. seeing And your you've the I compare of in talk made this to that reconcile the strong Is you've quarters? Linda other we want terms perhaps that that of optimism Great. how the past the quarter the in just with to in few And to the to fourth with, momentum you're Perhaps caution had compared just two kind pipeline past does spoken kind kind quarters, Omicron that then passed. I level the in comments reserve. of guess, the recognize of

Phil Snow

Yes.

good across out to historically, asset time institutional it's mentioned looking But type are feel I firm think sort our management, and I last as key would good, sometimes see a view to months. about for which, us. very, hard QX year, I and six And as looking of than again, very we've more relative pipeline. I this say good QX

the on it's the So of things But that we've ourselves and big FactSet a Linda that time we a we got, little important is fact the decent QX further some that such a next it's mentioned that quarter think, six months. out bit visibility and guidance. we before because sort just of feel revisit little for give and QX, it's of

Operator

with Our Sachs. next Tong Goldman question George comes from

George Tong

And and Linda, welcome FactSet, again. you excited to to work with

Linda Huber

Thanks, George.

George Tong

Yes.

previously for in services What growth. a your annual So companies maybe of given views far first question so on longer-term FactSet's of outlook longer-term organic are you, your at time other your high qualitative had FactSet plus info services single-digit growth ASV Company? Linda. CFO ASP the as experience target professional

Linda Huber

able probably we've still is on also to again over is deals this back first Yes, Phil's of and -- really really really the we George, and that back, has past again exciting. the for or our growth that potential that, quarter more us Company. doubles stood when singles investments really or any put very very, opportunity broad-based. numbers given products two the made very of one and is than anything and the mega strong being are again a who have speak clients, us telling or other like which time that. not has we've clients hasn't modest do It many years mentioned money that to up our given has been best-in-class us the been pulled that two providers statement the with the to is the the the and for very growth and that This done really been I opinions that think X% strongly fact

$X.XX. we EPS year, Secondly, to and is options of impressive Last is to if you our about pretty But you how a That's bring the quarter at the attributed tax looked lower at reports of on operating tax that EPS, some comparison tax were This performance. a the of of this $X.XX. looking because was line, And if we lot half year did from take year, rate it's about in it last true. a terms side. from at we're the and of down diluted and exercise. the $X.XX, and flash at the this beat side over adjusted of year, we half

So no about beaten $X.XX. would even tax in had we if have by we change rate,

So business. that, the to pretty we of strength about we good think it's and feel the a testament

CapEx spoken running to, George, that efficiently So had which been in increased it's last the talked and that just addition, office. allocation we as as a Company But in $XX.X was has year, the Manila down million make of with the in million. focus next but on I margin, $X.X spent we gone, are the increased year, This that first year to about, CapEx can. of bit. our Part on capital the hasn't down steps focus really sure we It quarter. come last we're build-out the

investment as off. program paying be the doubters while to this of had. that a we've it said, see years here of there were Phil But two terms kind So lot in ago, seems of we hump

that. excited that of pretty I all we're hope helps. So about

George Tong

Phil, XXXX fiscal than fiscal very growth services X.X%. X% it. was organic research, average helpful in was Got Yes, growth of XXXX. And higher this XXXX, then, the context. And ASV fiscal and professional between plus meaningfully

XXXX? XXXX, is that that those may trends similar saw mid-single-digit fiscal to whether in growth in plus far you research? or the different you within on sustainable be research fiscal within So can believe And elaborate you

Phil Snow

Yes. Thanks, George.

-- a a So quarter. very tremendous yes, had research

speaks So into advisory reports any in think by see of to great all driver certainly research years just in helped. and of but few strength the to build work. our The put I platform the just It just the of we've with you to over use sell-side means, it wasn't get content analysts last And really more to think for continued all out fantastic primary it ASV QX. team product. has that I and the

optimistic I about this of am So part the market.

feel ton few and the years enterprise about We see just it's started for workstation talked in we coming balance of I us go the now. capture can of analytics back when that opportunity a having strongly. that solutions to talking we and ago, there's desktop. nice there between out core we think And terms But a FactSet great desks right. really really

Operator

comes Our Craig next Partners. question with from Huber Research Huber

Craig Huber

buy-side In percent what clients, include ago, your corporations? set Maybe is revenues that your of you there piece corporations and year other, doing in now overall obviously of please? a are versus how

Phil Snow

probably of that we sets, We fastest think a growing we made I corporations but number, in because investment type it's that workflows have. I And It's to might we appeal can as content new that very than break more again, think tell within don't can out, the firm have growing Craig, you I historically. quickly. the we've

Craig Huber

providing. that But deep in bit go also, data sector you deeper can the guys you a little are

so want sectors later. there? here, to I you roll have your rather sooner for what talked out some You guess, than out far? it you And rolled new aspirations about sectors are What

Phil Snow

I about think conversations your later more those. follow-up spoken publicly I -- that's we've think can in long It's I pretty detail. give today, so probably list. a certainly But we think you

Operator

showing over turn back not Phil time. for at any this to I'm closing any questions I remarks. the call And further Snow

Phil Snow

we for Great. Thank closing, are to pleased joining how quarter's us In reiterate you today. want with this I performance. all

to team we that We any ends Software ASV year Company's also in quarter. history. holiday XXX today's next saw and ending call you this fantastic speaking incremental have talented Kendra S&P Cobalt the look and calendar season. celebrated the strong. to be we call. Brown, with if additional you And welcomed As its questions, Please we Operator And FactSet. achievement joining we are a Index. well forward the the of highest company, And QX the

Operator

Ladies gentlemen, and this concludes presentation. today's

a You disconnect, wonderful and now day. may have

FactSet Research Systems (FDS) 21 Dec 212022 Q1 Earnings call transcript