Americas

EMEA

Asia Pacific

- United States

- United Kingdom

- Other European Countries

- All Other Countries

Total Revenue

3c624005011d4884b949ff76578343474e89dee61d7b65d7f29d363380f0abbb

Factually, Q1 2023’s operating cash flow of **$106,636 thousand** was higher than Q1 2022’s **$72,918 thousand**. However, one factor that reduced the otherwise larger increase was the effect of working capital changes—specifically, a **cash outflow of $66,796 thousand** related to variable compensation payments, which was higher than the **$53,457 thousand** in Q1 2022. This higher outflow, along with changes in accounts receivable and accounts payable, partially offset gains from improved net income and higher non‑cash charges. Essentially, the increase in operating cash flow was somewhat muted by these working capital requirements.  **[0001013237-23-000006_fds-20221130.htm:5]** **[0001013237-23-000006_fds-20221130.htm:53]** 

Why was Operating Cash Flow so low in Q1 2023?

The financing cash flow spike in Q3 2022 was primarily driven by several key factors. **FactSet received $2,238.4 million** from its 2022 Credit Facilities and Senior Notes, which significantly increased cash inflow. In addition, there was a **$153.6 million reduction in stock repurchases** and a **$27.2 million increase in proceeds from employee stock plans**, both of which further boosted the financing cash flow. These positive factors were partially offset by a **$700.0 million debt repayment**, but overall, they resulted in a substantial net inflow during the quarter.  **[0001013237-22-000096_fds-20220531.htm:67]** 

What drove the financing cash flow spike in Q3 2022?

The surge in **asset impairments** in **Q3 2022** was primarily driven by **real estate impairment charges** related to vacating certain leased office spaces. This charge amounted to **$48,998 thousand** for the three months ended May 31, 2022, compared to no similar charges in the prior period. Additionally, these charges were part of broader operational adjustments, including costs associated with the acquisition of **CUSIP Global Services (CGS)**.  **[0001013237-22-000088_fdsq32022earningsrelease.htm:6]** **[0001013237-22-000096_fds-20220531.htm:3]** **[0001013237-22-000088_fdsq32022earningsrelease.htm:0]** **[FDS_452326_3]** 

What caused the asset impairments to surge in Q3 2022?

The documents indicate that **tax payables turned positive in Q1 2023** because the **Taxes payable, net of prepaid taxes increased by $6,995 thousand** compared to the previous period, where there was a decrease of **$9,524 thousand** in Q1 2022. However, the documents do not provide specific reasons for this change. They suggest that potential factors may include variations in **tax liabilities due to changes in pre-tax income, timing of tax payments, or adjustments related to deferred or prepaid taxes**.  **[0001013237-23-000006_fds-20221130.htm:5]** **[0001013237-22-000199_fdsq12023earningsrelease.htm:8]** 

Why did tax payables turn positive in Q1 2023?

The large acquisition outflow in Q3 2022 was primarily prompted by FactSet’s acquisition of **CUSIP Global Services (CGS)**. This deal, completed on **March 1, 2022**, involved a cash purchase price of approximately **$1.932 billion** (inclusive of preliminary working capital adjustments) and was aimed at significantly expanding FactSet’s role in global capital markets.  **[0001013237-22-000088_fdsq32022earningsrelease.htm:7]** **[0001013237-22-000096_fds-20220531.htm:65]** 

What prompted the large acquisition outflow in Q3 2022?

4712b016a507b0c263e6f2082a4d5a34c51ebd565ccede88f55bf4481aa12a5d

Cash and cash equivalents remained high in Q3 2023 at **$486,627 thousand** largely because of several positive factors. **Operating activities** generated significantly stronger inflows – around **$489,903 thousand** over the nine-month period – which helped boost liquidity. In addition, **investing activities** saw far less cash outflow than in the previous period due to the absence of large acquisitions, and **exchange rate changes** contributed positively, adding over **$3,118 thousand**. These elements combined to maintain a high cash balance despite the use of cash in financing activities.  **[0001013237-23-000065_fdsq32023earningsrelease.htm:7]** 

Why was Cash and cash equivalents so high in Q3 2023?

The total assets in Q1 2024 were slightly lower primarily due to a decrease in **Cash and Cash Equivalents** from **$425,444 thousand** to **$411,855 thousand**, along with a reduction in **Lease Right-of-Use Assets** from **$141,837 thousand** to **$138,262 thousand**. Although there was an increase in **Accounts Receivable, Net** from **$237,665 thousand** to **$245,318 thousand** and in **Other Assets** from **$73,676 thousand** to **$86,866 thousand**, these adjustments did not fully offset the decreases, leading to a minor overall reduction in total assets from the prior quarter.  **[0001013237-24-000009_fds-20231130.htm:4]** 

Why were Total Assets lower in Q1 2024?

**Long-term debt was lower in Q1 2024 because of a **$62.5 million repayment** on the **2022 Term Facility**, which reduced the balance from **$375,000 thousand** to **$312,500 thousand**. Meanwhile, the other debt components, including the **2022 Revolving Facility** and the **Senior Notes (2027 and 2032 Notes)**, remained unchanged.  **[0001013237-24-000009_fds-20231130.htm:21]** 

Why was Long-term debt lower in Q1 2024?

b5f28755d45e203067a57a2e7123ee9b47b5b44178bc15381bfd35e683ad74cc

Revenues (USD, thousands)

Cost of services (USD, thousands)

Selling, general and administrative (USD, thousands)

Total operating expenses (USD, thousands)

Operating income (USD, thousands)

Interest income (USD, thousands)

Interest expense (USD, thousands)

Other income (expense), net (USD, thousands)

Total other income (expense), net (USD, thousands)

Income before income taxes (USD, thousands)

Provision for income taxes (USD, thousands)

Net income (USD, thousands)

Basic earnings per common share (USD)

Diluted earnings per common share (USD)

cac80f7ce8b96f5eceb17f82f4c0ab64ee784e496a3a80b0992c2befd1e8a90e

Net income [USD, thousands]

Depreciation and amortization [USD, thousands]

Amortization of lease right-of-use assets [USD, thousands]

Stock-based compensation expense [USD, thousands]

Net cash provided by operating activities [USD, thousands]

Purchases of property, equipment, leasehold improvements and internal-use software [USD, thousands]

Acquisition of businesses, net of cash and cash equivalents acquired [USD, thousands]

Purchases of investments [USD, thousands]

Proceeds from maturity or sale of investments [USD, thousands]

Net cash used in investing activities [USD, thousands]

Repayment of debt [USD, thousands]

Dividend payments [USD, thousands]

Proceeds from employee stock plans [USD, thousands]

Repurchases of common stock [USD, thousands]

Other financing activities [USD, thousands]

Net cash provided by / (used in) financing activities [USD, thousands]

Effect of exchange rate changes on cash and cash equivalents [USD, thousands]

Net increase (decrease) in cash and cash equivalents [USD, thousands]

Proceeds from debt [USD, thousands]

Deferred income taxes [USD, thousands]

Accounts receivable, net of reserves [USD, thousands]

Accounts payable and accrued expenses [USD, thousands]

Accrued compensation [USD, thousands]

Deferred revenues [USD, thousands]

Taxes payable, net of prepaid taxes [USD, thousands]

Lease liabilities, net [USD, thousands]

Other, net [USD, thousands]

Cash and cash equivalents at beginning of period [USD, thousands]

b5ae16eee27d0d8e564450a0c6276fe0c309b0037bfca4ffd251ac3570363753

Cash and cash equivalents (USD, thousands)

Investments (USD, thousands)

Accounts receivable, net of reserves (USD, thousands)

Prepaid taxes (USD, thousands)

Prepaid expenses and other current assets (USD, thousands)

Total current assets (USD, thousands)

Property, equipment and leasehold improvements, net (USD, thousands)

Goodwill (USD, thousands)

Intangible assets, net (USD, thousands)

Deferred taxes (USD, thousands)

Lease right-of-use assets, net (USD, thousands)

Other assets (USD, thousands)

TOTAL ASSETS (USD, thousands)

Accounts payable and accrued expenses (USD, thousands)

Current lease liabilities (USD, thousands)

Accrued compensation (USD, thousands)

Deferred revenues (USD, thousands)

Current taxes payable (USD, thousands)

Dividends payable (USD, thousands)

Total current liabilities (USD, thousands)

Long-term debt (USD, thousands)

Deferred revenues, non-current (USD, thousands)

Taxes payable (USD, thousands)

Long-term lease liabilities (USD, thousands)

Other liabilities (USD, thousands)

TOTAL LIABILITIES (USD, thousands)

TOTAL STOCKHOLDERS’ EQUITY (USD, thousands)

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY (USD, thousands)

7f078989988f6c71b48eba06e0ba23fed513197ee953a62f632a10fed724d95a

965387324c36c54f8409e235b8a69f4a638a0fc4109081393e67b16ceb29d85f

cc1c6da9eeb2c95e7770307801567a61b00f46f7adaae032c03e8923ec8a307a

c371c9bbc03344128e92d104a5386a9cbd2421ed7578d9955856f8e2b8ee82d7

37fb3094bc409217a44259b0960d5367a39c5e1f190fdfb3f869aa86d42f224f

4c95e893a44eb32459622819f96a868a40f6f382b10412bcc25c5e96517c9488

FACTSET RESEARCH SYSTEMS (FDS)

Financials