c371c9bbc03344128e92d104a5386a9cbd2421ed7578d9955856f8e2b8ee82d7

**Number of Clients**

**Number of Investment Professionals Served**

**Net Headcount Growth in Asia Pacific (Employees)**

**Net Headcount Decrease in the Americas (Percentage)**

**Net Headcount Decrease in the Americas (Employees)**

**Net Headcount Decrease in EMEA (Employees)**

**Net Headcount Decrease in EMEA (Percentage)**

**Organic ASV plus Professional Services (in millions)**

**Buy-side Organic ASV Growth**

**Sell-side Organic ASV Growth**

a5b740205eee964a0c3dde6d3355a14c89871f053d1fc8459ba60171d3e800c6

| Geographical Segment | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 | Q4 2024 |
|----------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| Americas (USD Million) | **$323.4**  **[0001013237-23-000006_fds-20221130.htm:41]**  | **$331.1**  **[0001013237-23-000044_fds-20230228.htm:44]**  | **$337.7**  **[0001013237-23-000070_fds-20230531.htm:44]**  | **$343.3**  **[0001013237-23-000094_fdsq42023earningsrelease.htm:4]**  | **$348.4**  **[0001013237-24-000009_fds-20231130.htm:38]**  | **$352.6**  **[0001013237-24-000036_fdsq22024earningsrelease.htm:2]**  | **$356.5**  **[0001013237-24-000084_fds-20240531.htm:41]**  | **$362.5**  **[0001013237-24-000119_fdsq42024earningsrelease.htm:3]**  |
| EMEA (USD Million) | **$130.7**  **[0001013237-23-000006_fds-20221130.htm:41]**  | **$132.5**  **[0001013237-23-000044_fds-20230228.htm:44]**  | **$138.0**  **[0001013237-23-000070_fds-20230531.htm:44]**  | **$138.6**  **[0001013237-23-000094_fdsq42023earningsrelease.htm:4]**  | **$139.6**  **[0001013237-24-000009_fds-20231130.htm:38]**  | **$139.2**  **[0001013237-24-000036_fdsq22024earningsrelease.htm:2]**  | **$141.2**  **[0001013237-24-000084_fds-20240531.htm:41]**  | **$143.1**  **[0001013237-24-000119_fdsq42024earningsrelease.htm:3]**  |
| Asia Pacific (USD Million) | **$50.7**  **[0001013237-23-000006_fds-20221130.htm:41]**  | **$51.5**  **[0001013237-23-000044_fds-20230228.htm:44]**  | **$54.1**  **[0001013237-23-000070_fds-20230531.htm:44]**  | **$53.9**  **[0001013237-23-000094_fdsq42023earningsrelease.htm:4]**  | **$54.3**  **[0001013237-24-000009_fds-20231130.htm:38]**  | **$54.1**  **[0001013237-24-000036_fdsq22024earningsrelease.htm:2]**  | **$55.0**  **[0001013237-24-000084_fds-20240531.htm:41]**  | **$56.6**  **[0001013237-24-000119_fdsq42024earningsrelease.htm:3]**  |

61835e3a8ca4a7a48054375b968623d7ea0e852ac1fc1724729d7b4a9fa19ef2

cc1c6da9eeb2c95e7770307801567a61b00f46f7adaae032c03e8923ec8a307a

| Metric / Quarter                                      | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 | Q4 2024 |
|-------------------------------------------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| **Number of Clients**                                 | 7,631  **[0001013237-22-000199_fdsq12023earningsrelease.htm:4]**  | 7,730  **[0001013237-23-000034_fdsq22023earningsrelease.htm:3]**  | 7,770  **[0001013237-23-000065_fdsq32023earningsrelease.htm:3]**  | 7,921  **[0001013237-23-000094_fdsq42023earningsrelease.htm:5]**  | 7,945  **[0001013237-23-000193_fdsq12024earningsrelease.htm:3]**  | 8,020  **[0001013237-24-000036_fdsq22024earningsrelease.htm:3]**  | 8,029  **[0001013237-24-000071_fdsq32024earningsrelease.htm:2]**  | 8,217  **[0001013237-24-000119_fdsq42024earningsrelease.htm:3]**  |
| **Number of Investment Professionals Served**         | 181,000  **[0001013237-23-000006_fds-20221130.htm:7]**  | 186,463  **[0001013237-23-000044_fds-20230228.htm:38]**  | 187,845  **[0001013237-23-000070_fds-20230531.htm:8]**  | 189,972  **[0001013237-23-000094_fdsq42023earningsrelease.htm:5]**  | 207,083  **[0001013237-24-000009_fds-20231130.htm:34]**  | 206,478  **[0001013237-24-000049_fds-20240229.htm:37]**  | 208,140  **[0001013237-24-000084_fds-20240531.htm:37]**  | 216,381  **[0001013237-24-000141_fds-20240831.htm:3]**  |
| **Net Headcount Growth in Asia Pacific (Employees)**  | 508  **[0001013237-23-000006_fds-20221130.htm:46]**  | 744  **[0001013237-23-000044_fds-20230228.htm:52]**  | 1,027  **[0001013237-23-000070_fds-20230531.htm:50]**  | 12.4%  **[0001013237-23-000128_fds-20230831.htm:50]**  | 11.7%  **[0001013237-24-000009_fds-20231130.htm:37]**  | 8.0%  **[0001013237-24-000049_fds-20240229.htm:40]**  | 5.4%  **[0001013237-24-000084_fds-20240531.htm:40]**  | 3.7%  **[0001013237-24-000141_fds-20240831.htm:52]**  |
| **Net Headcount Decrease in the Americas (Percentage)** | N/A  **[0001013237-23-000006_fds-20221130.htm:40]**  | N/A  **[0001013237-23-000044_fds-20230228.htm:42]** **[0001013237-23-000044_fds-20230228.htm:51]**  | N/A  **[FDS_3383594_19]** **[0001013237-23-000070_fds-20230531.htm:42]** **[FDS_3254218_21]**  | N/A  **[0001013237-23-000128_fds-20230831.htm:50]**  | N/A  **[0001013237-24-000009_fds-20231130.htm:37]**  | 7.0%  **[0001013237-24-000049_fds-20240229.htm:40]**  | 4.8%  **[0001013237-24-000141_fds-20240831.htm:52]**  |
| **Net Headcount Decrease in the Americas (Employees)** | 200  **[0001013237-24-000084_fds-20240531.htm:46]**  |
| **Net Headcount Decrease in EMEA (Employees)**        | 14  **[0001013237-24-000009_fds-20231130.htm:37]**  | 67  **[0001013237-24-000049_fds-20240229.htm:47]**  |
| **Net Headcount Decrease in EMEA (Percentage)**       | 3.3%  **[0001013237-24-000084_fds-20240531.htm:40]**  | 2.0%  **[0001013237-24-000141_fds-20240831.htm:52]**  |
| **Organic ASV plus Professional Services (in millions)** | $1,850  **[0001013237-22-000199_fdsq12023earningsrelease.htm:2]** **[0001013237-23-000006_fds-20221130.htm:37]**  | $1,900  **[0001013237-23-000034_fdsq22023earningsrelease.htm:2]** **[0001013237-23-000034_fdsq22023earningsrelease.htm:1]** **[0001013237-23-000044_fds-20230228.htm:40]**  | $2,120.2  **[0001013237-23-000065_fdsq32023earningsrelease.htm:2]** **[0001013237-23-000070_fds-20230531.htm:41]** **[0001013237-23-000065_fdsq32023earningsrelease.htm:9]**  | $2,200  **[0001013237-23-000128_fds-20230831.htm:49]**  | $2,185  **[0001013237-23-000193_fdsq12024earningsrelease.htm:2]** **[0001013237-24-000009_fds-20231130.htm:36]**  | $2,209.5  **[0001013237-24-000036_fdsq22024earningsrelease.htm:2]** **[0001013237-24-000049_fds-20240229.htm:39]**  | $2,220.4  **[0001013237-24-000071_fdsq32024earningsrelease.htm:0]**  | $2,272.8  **[0001013237-24-000119_fdsq42024earningsrelease.htm:0]**  |
| **Buy-side Organic ASV Growth**                       | 8.0%  **[0001013237-22-000199_fdsq12023earningsrelease.htm:2]** **[0001013237-22-000199_fdsq12023earningsrelease.htm:10]**  | 8.1%  **[0001013237-23-000034_fdsq22023earningsrelease.htm:2]**  | 7.3%  **[0001013237-23-000065_fdsq32023earningsrelease.htm:2]**  | 6.9%  **[0001013237-23-000128_fds-20230831.htm:7]** **[0001013237-23-000094_fdsq42023earningsrelease.htm:3]** **[0001013237-23-000128_fds-20230831.htm:49]**  | 7.2%  **[0001013237-23-000193_fdsq12024earningsrelease.htm:2]** **[0001013237-24-000009_fds-20231130.htm:37]**  | 5.6%  **[0001013237-24-000036_fdsq22024earningsrelease.htm:2]**  | 5.3%  **[0001013237-24-000071_fdsq32024earningsrelease.htm:1]**  | 4.9%  **[0001013237-24-000119_fdsq42024earningsrelease.htm:3]** **[0001013237-24-000119_fdsq42024earningsrelease.htm:10]**  |
| **Sell-side Organic ASV Growth**                      | 14.4%  **[0001013237-22-000199_fdsq12023earningsrelease.htm:2]** **[0001013237-23-000006_fds-20221130.htm:39]**  | 15.8%  **[0001013237-23-000034_fdsq22023earningsrelease.htm:2]**  | 12.3%  **[0001013237-23-000065_fdsq32023earningsrelease.htm:2]**  | 9.3%  **[0001013237-23-000094_fdsq42023earningsrelease.htm:3]** **[0001013237-23-000128_fds-20230831.htm:49]**  | 7.6%  **[0001013237-23-000193_fdsq12024earningsrelease.htm:2]**  | 5.5%  **[0001013237-24-000036_fdsq22024earningsrelease.htm:2]** **[0001013237-24-000036_fdsq22024earningsrelease.htm:9]**  | 3.7%  **[0001013237-24-000071_fdsq32024earningsrelease.htm:8]**  | 3.8%  **[0001013237-24-000119_fdsq42024earningsrelease.htm:3]**  |

9b38b47e5c7d1b14ab0c28252da25c7aa72ce80a9df01af0670367dcbe2d3948

FactSet Research Systems Inc. is a global financial digital platform and enterprise solutions provider that offers expansive data, sophisticated analytics, and flexible technology to power critical investment workflows for financial professionals. The company's primary revenue source is subscriptions to its multi-asset class data and solutions, which are delivered through its connected data and technology platform **[0001013237-24-000141_fds-20240831.htm:87]** **[0001013237-24-000141_fds-20240831.htm:49]** **[0001013237-24-000141_fds-20240831.htm:3]**. FactSet operates through three reportable segments: the Americas, EMEA, and Asia Pacific, with solutions spanning the investment lifecycle, including investment research, portfolio construction and analysis, trade execution, performance measurement, risk management, and reporting **[0001013237-24-000141_fds-20240831.htm:98]**. The company's business strategy focuses on building a leading open content and analytics platform, offering personalized digital products, and delivering insights tailored to clients' specific business models **[0001013237-24-000049_fds-20240229.htm:37]** **[0001013237-23-000193_fdsq12024earningsrelease.htm:3]** **[0001013237-24-000178_investorday-pressrelease.htm:0]**.

1. **Workstations** - Provides financial professionals with integrated tools for investment research, portfolio management, and trade execution.
2. **Portfolio Analytics** - Offers solutions for performance measurement, risk management, and portfolio analysis to optimize investment strategies.
3. **Enterprise Data Solutions** - Delivers comprehensive data services that support data integration, management, and analysis across various financial workflows.
4. **Managed Services** - Supports data, performance, risk, and reporting workflows with tailored services to enhance operational efficiency.
5. **Americas Segment** - Generates significant revenue by delivering FactSet's products and services across the American markets.
6. **EMEA Segment** - Contributes to revenue through the provision of FactSet's offerings in Europe, the Middle East, and Africa.
7. **Asia Pacific Segment** - Expands FactSet's reach and revenue in the Asia Pacific region by offering its comprehensive suite of financial solutions.

e60772eca8ea08542aa112f409c2ee5414812d2887d40a40b9b72ef97e609738

1. Your guidance indicates a more optimistic outlook for the second half of fiscal 2025, similar to last year's expectations; what specific factors give you more confidence this year compared to last year, beyond macroeconomic assumptions like Fed rate cuts?  **[FDS_3401868_20]** 
2. With the guidance for margins to be down sequentially, is there a strategic shift happening where you are pivoting from focusing on margin expansion to prioritizing growth, and could you elaborate on this change?  **[FDS_3401868_20]** 
3. Given the headwinds in your annual price increases due to lower CPI or RPI, how do you plan to mitigate the impact of potentially lower pricing on your revenue growth in fiscal 2025?  **[FDS_3401868_12]** 
4. Can you provide more clarity on the performance of CUSIP and how it is contributing to your overall growth, especially since it drove growth in the partnerships business but specific figures were not disclosed?  **[FDS_3401868_9]** 
5. Considering the competitive environment and observations of aggressive pricing by competitors, how are you balancing the need to win market share with the potential impact on margins, and what is your approach to pricing in this context?  **[FDS_3401868_17]** 

69a692aca26c6fe9148c6b3c8cdd6d1cf074af0ed477ed8c44cffd2828a5d0dd

- Bloomberg L.P. - Mentioned as one of the largest competitors in the financial information services industry  **[0001013237-24-000141_fds-20240831.htm:8]** .
- S&P's Market Intelligence division - Listed as a major competitor  **[0001013237-24-000141_fds-20240831.htm:8]** .
- London Stock Exchange Group's (LSEG's) Data & Analytics division (formerly known as Refinitiv) - Identified as a significant competitor  **[0001013237-24-000141_fds-20240831.htm:8]** .
- BlackRock Aladdin - Mentioned as a competitive product  **[0001013237-24-000141_fds-20240831.htm:8]** .
- MSCI Inc. - Listed as a competitor  **[0001013237-24-000141_fds-20240831.htm:8]** .
- Morningstar Inc. - Included as a competitor  **[0001013237-24-000141_fds-20240831.htm:8]** .

d0f8737a40404fe2e262d61b94c8b055bbcec92d60e18cab91423147b01838a1

965387324c36c54f8409e235b8a69f4a638a0fc4109081393e67b16ceb29d85f

### Q4 2024 Earnings Call
- **Issued Period**: Q4 2024
- **Guided Period**: FY 2025
- **Guidance**:
  1. **Organic ASV Growth**: Incremental organic ASV growth expected between **$90 million to $140 million**, reflecting a **5% growth rate** at the midpoint  **[FDS_3401868_4]** .
  2. **Adjusted Operating Margin**: Expected to be in the range of **36% to 37%**  **[FDS_3401868_4]** .
  3. **Adjusted EPS**: Expected to be in the range of **$16.80 to $17.40**  **[FDS_3401868_4]** .
  4. **Interest Expense**: Expected to be between **$44 million to $48 million**  **[FDS_3401868_5]** .
  5. **Capital Expenditures**: Expected to be in the range of **$95 million to $105 million**  **[FDS_3401868_5]** .

### Q3 2024 Earnings Call
- **Issued Period**: Q3 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Organic ASV plus Professional Services Growth**: Expected between **4% and 5.5%**, with incremental growth of **$85 million to $120 million**, reflecting **4.8% growth at the midpoint**  **[FDS_3392610_5]** .
  2. **Revenue**: Expected to be in the range of **$2.18 billion to $2.19 billion**  **[FDS_3392610_5]** .
  3. **GAAP Operating Margin**: Expected to be in the range of **33.7% to 34%**, up approximately **100 basis points** from prior guidance  **[FDS_3392610_5]** .
  4. **Adjusted Operating Margin**: Expected to be in the range of **37% to 37.5%**, up **70 to 80 basis points** from prior guidance  **[FDS_3392610_5]** .
  5. **Adjusted EPS**: Expected to be **$0.40 higher** than prior guidance, in the range of **$16 to $16.40**  **[FDS_3392610_5]** .
  6. **Effective Tax Rate**: Guidance remains unchanged in the range of **16.5% to 17.5%**  **[FDS_3392610_5]** .

### Q2 2024 Earnings Call
- **Issued Period**: Q2 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **ASV Growth**: Expected to finish the fiscal year at the lower end of the **5% to 7%** range  **[FDS_3378702_1]** .
  2. **Adjusted Operating Margin**: Anticipated to decrease in the back half of the year, aiming for the midpoint of **36.5%**  **[FDS_3378702_8]** .
  3. **Revenue Outlook**: Expected to land at the lower end of the guidance due to the Credit Suisse-UBS merger impact  **[FDS_3378702_12]** .
  4. **Capital Markets Recovery**: No bounce back built into numbers, reflecting a conservative approach  **[FDS_3378702_12]** .
  5. **Expense Management**: Plan to manage expenses to align with the lower end of the revenue range  **[FDS_3378702_1]** .
  6. **Personnel Costs**: Expected to remain flat, with adjustments to the bonus calculation  **[FDS_3378702_14]** .
  7. **Technology Costs**: Expected to increase due to cloud expenses and AI efforts  **[FDS_3378702_14]** .

### Q1 2024 Earnings Call
- **Issued Period**: Q1 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Revenue**: Expected to range from **$2.2 billion to $2.21 billion**, reflecting approximately **6% growth** at the midpoint  **[FDS_3369574_4]** .
  2. **Organic ASV plus Professional Services Growth**: Expected to be **$110 million to $150 million**, reflecting **6% growth** at the midpoint  **[FDS_3369574_4]** .
  3. **GAAP Operating Margin**: Reduced to **32.5% to 33%**  **[FDS_3369574_4]** .
  4. **Adjusted Operating Margin**: Maintained at **36.3% to 36.7%**  **[FDS_3369574_4]** .
  5. **Effective Tax Rate**: Reduced by 50 basis points to **16.5% to 17.5%**  **[FDS_3369574_4]** .
  6. **Adjusted EPS**: Expected to range from **$15.60 to $16.00**  **[FDS_3369574_4]** .
  7. **Cost Reduction Program**: Expected to take a **$10 million to $15 million charge** in Q2 2024  **[FDS_3369574_4]** .

e08cec16d400f8a487fbbbf4c15a22eec1d6c314900e8857a32f645ecad8bc24

| Program Details          | Program 1                  | Program 2                  |
|--------------------------|----------------------------|----------------------------|
| Approval Date            | August 11, 2023  **[0001013237-24-000141_fds-20240831.htm:44]**         | September 17, 2024  **[0001013237-24-000141_fds-20240831.htm:63]**      |
| End Date/Duration        | August 31, 2024  **[0001013237-24-000141_fds-20240831.htm:44]**         | Fiscal 2025  **[0001013237-24-000141_fds-20240831.htm:63]**             |
| Total Additional Amount  | **$250 million**  **[0001013237-24-000141_fds-20240831.htm:44]**        | **$300 million**  **[0001013237-24-000141_fds-20240831.htm:63]**        |
| Remaining Authorization  | **$64.8 million**  **[0001013237-24-000141_fds-20240831.htm:43]** **[0001013237-24-000141_fds-20240831.htm:63]** **[0001013237-24-000141_fds-20240831.htm:120]** | Not specified  **[0001013237-24-000141_fds-20240831.htm:63]**           |
| Details                  | Ended August 31, 2024  **[0001013237-24-000141_fds-20240831.htm:43]**   | New authorization for fiscal 2025  **[0001013237-24-000141_fds-20240831.htm:63]**  |

f93f5fc411cac5c22e4145d7ed8058e2c85b4a575da2aa6525a25736cefa0dfe

| Name               | Start Date | End Date | Reason for Change |
|--------------------|------------|----------|-------------------|
| Ernst & Young LLP | 2013  **[0001013237-24-000141_fds-20240831.htm:79]**    | Present  | Current auditor   |

0547fe6da2031dabb16603af406ef22d726720568bc385d299f6e6eb89a28487

Americas

EMEA

Asia Pacific

- United States

- United Kingdom

- Other European Countries

- All Other Countries

Total Revenue

4c95e893a44eb32459622819f96a868a40f6f382b10412bcc25c5e96517c9488

db2f638936e2122f46618592783700b56a137381e43b9bf9ad9f4a876695fc12

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

- Total Revenue: $568.67 million (+4.9% YoY)  **[0001013237-25-000010_fds-20241130.htm:3]**   
- Americas Revenue: $367.2 million (**+5.4% YoY**)  **[0001013237-25-000010_fds-20241130.htm:12]**   
- Asia Pacific Revenue: $57.7 million (**+6.3% YoY**)  **[0001013237-25-000010_fds-20241130.htm:12]**   
- Net Change in Cash: -$133.81 million (vs. -$13.59 million in Q1 2024)  **[0001013237-25-000010_fds-20241130.htm:5]**   

a975b125b3b0c21d7cc769bb822e0ace0208984843d5801d5ac06174a1a7bf35

421d47a88388e4d2f93129d131f90b9c39a3ec8b8a219f04341c34ee67fd9dc7

- FactSet is projecting deceleration in revenue growth for fiscal 2025. The company's guidance indicates revenue growth of just over **4%** for fiscal 2025, down from about **5.5%** growth in fiscal 2024, despite recent large wins in Q4 that should ramp into next year.  **[FDS_3401868_13]**
- The company is expecting lower operating margins in fiscal 2025. Adjusted operating margin is guided to be between **36% and 37%**, down from **37.8%** in fiscal 2024. This decrease is partly due to resetting the bonus level and increased investments in technology and strategic initiatives, which may pressure earnings growth.  **[FDS_3401868_6]**
- FactSet is engaging in aggressive pricing strategies to win market share, which could impact profitability. The company acknowledges being competitive in pricing to achieve competitive displacements, potentially affecting margins.  **[FDS_3401868_17]**

7150c144976fccce0d5f12ab4ed8404464f51107ac3a6df7a6c3095ce6d7733f

- **Client budgets are expected to remain flat, with clients continuing to focus on cost for the foreseeable future**, potentially limiting FactSet's revenue growth.  **[FDS_3411954_10]**
- **Despite improved client retention rates, Annual Subscription Value (ASV) did not accelerate**, indicating potential challenges in upselling or expanding with existing clients.  **[FDS_3411954_19]**
- **Key business segments such as banking and traditional asset management are facing uncertainty and have been under pressure**, especially the buy side leveraged to active management, which could hinder FactSet's growth prospects.  **[FDS_3411954_6]**

35a906ccd7fa00b7433585ab02c20e0c9c7d051279b464efcc1692a168023e90

- **FactSet is successfully winning significant deals against competitors, taking market share, and expanding seat count, particularly with top clients.** For the fiscal year, **9 out of the top 10 ASV wins were competitive displacements**, with **7 against their top 4 competitors**, adding over **700 seats**.  **[FDS_3401868_16]**
- **The company is making strategic investments in data expansion—real-time data, deep sector, and private markets—which are showing positive client engagement and expected to drive future growth.** They have **doubled coverage in private markets to approximately 9 million companies or securities** and are **excited about the opportunities in real-time data and deep sector products**.  **[FDS_3401868_21]**
- **FactSet is exploring partnerships and is in a better position to pursue targeted M&A to stimulate top-line growth, particularly in areas with big TAM opportunities like wealth management.** They believe it's a good time to be more aggressive in exploring partnerships and are seeing more constructive M&A markets.  **[FDS_3401868_19]**

2477a3f360513cbfe645bd3fb269061971212d21f21aacbf818ce797363583d9

- **Future margin improvements may be limited due to reliance on one-time items**: Linda Huber stated that out of the **540 basis points** of adjusted operating margin improvement, about **280 basis points are one-time factors** such as a lower bonus accrual and payroll tax adjustments that **"will not be repeated"**. This suggests that future margins may be under pressure without further cost-cutting opportunities.  **[FDS_3392610_9]**
- **Delayed sales cycles and higher client erosion impacting growth**: Helen Shan mentioned that they are seeing **deals continue to move**, especially on **buy-side analytics**, due to **elongated sales cycles**. Additionally, there is **higher erosion** driven by client cost rationalization, affecting ASV growth.  **[FDS_3392610_13]** **[FDS_3392610_6]** **[FDS_3392610_16]**
- **Potential need for increased investment may pressure margins**: In response to questions about requiring more investments to drive growth, Phil Snow acknowledged that they are evaluating whether there are areas they would want to **"invest more in"**, but cannot provide guidance yet. Increased investments may impact future margins.  **[FDS_3392610_7]**

9a25deb0780f6b81f215e6f805372f3fc3a815993905b07d506f9d842328a333

- **FactSet's wealth management segment is experiencing strong demand**, with an active pipeline of deals of various sizes. The company is optimistic about accelerating growth in this area, especially with the introduction of AI tools enhancing their offerings.  **[FDS_3392610_21]**
- **FactSet is effectively managing expenses**, with people costs down **10% year-over-year** and real estate costs down **14%**, leading to an increased adjusted operating margin guidance by **70 to 80 basis points** for the rest of the year. This demonstrates strong operational efficiency and the ability to improve profitability even in challenging market conditions.  **[FDS_3392610_15]**
- **Investments in generative AI and multiyear initiatives are expected to drive future growth**. FactSet anticipates that AI will begin delivering incremental ASV in fiscal 2025, and ongoing projects like deep sector coverage and private markets are progressing well, positioning the company for future expansion and innovation.  **[FDS_3392610_7]**

e380de105f88eba25b11930a098226119b832e4b5e7cb9f8ebebed3ca46a9ba8

- **FactSet's wealth segment is expected to grow at double-digit rates this year**, driven by successful displacement of competitors, geographic expansion into **Switzerland and the U.K.**, and a strong pipeline of large deals, including **7-figure deals** that make up about half of the top 10 deals for the year.  **[FDS_3411954_13]** ,  **[FDS_3411954_6]**
- **Client engagement has significantly increased**, with trials up **23% in the Americas** and **13% in Europe**, and RFPs up **30% year-over-year** in Q1, indicating a robust sales pipeline and supporting optimism for accelerated growth in the second half of the fiscal year.  **[FDS_3411954_10]** ,  **[FDS_3411954_6]**
- **FactSet's managed services offering is gaining traction**, with significant deals closed, including with an outsourced CIO provider and a partnership with **JPMorgan**, providing considerable upside potential and helping clients reduce total cost of ownership, especially in the current cost-sensitive environment.  **[FDS_3411954_8]**

1b73fdff8db40e5d80e45ec588a2fbc1024e0b124bfd73bb03cf099833fb9b45

49c25e22d9c2a3da0b2d4b661a451a784bce8a58f38cf8e7f11ece82a3ec878f

**Annual guidance for FY 2025:**  
- **Organic ASV Growth**: $90 million to $140 million  **[FDS_3411954_5]** **[FDS_3411954_3]** **[FDS_3411954_1]**  (no change from $90 million to $140 million  **[FDS_3401868_4]** )  
- **Adjusted Operating Margin**: 36% to 37%  **[FDS_3411954_5]** **[FDS_3411954_3]** **[FDS_3411954_12]**  (no change from 36% to 37%  **[FDS_3401868_4]** )  
- **Adjusted EPS**: $16.80 to $17.40  **[FDS_3411954_5]** **[FDS_3411954_3]**  (no change from $16.80 to $17.40  **[FDS_3401868_4]** )  
- **Interest Expense**: $44 million to $48 million  **[FDS_3411954_5]** **[FDS_3411954_3]**  (no change from $44 million to $48 million  **[FDS_3401868_5]** )  
- **Capital Expenditures**: $95 million to $105 million  **[FDS_3411954_5]** **[FDS_3411954_3]**  (no change from $95 million to $105 million  **[FDS_3401868_5]** )  
- **Generative AI**: 30 to 50 basis points  **[FDS_3411954_9]**  (no prior guidance)  

3413d2ca81a698b2d00906dfbd46baa76855ddec03d55c79704ca5802de309e0

6858b7b38ecbdd542650a2b05e2aa6fc7c326aa79e27c7b8dac8089655f24cac

d6c09a2afddb8605f2d0bfa88fcdd354f30b35e11123abf6f238923901c41bf9

37fb3094bc409217a44259b0960d5367a39c5e1f190fdfb3f869aa86d42f224f

- **FactSet has a healthier and accelerating pipeline for the second half**, with **higher deal volume** and a strong presence in **data solutions, middle office, and Quant solutions**. Many deals are in the **later stages of the funnel**, giving more confidence for future growth.  **[FDS_3378702_11]**
- **FactSet is in a strong competitive position**, with clients wanting to work more with them, benefiting from competitors' platforms being less flexible and less able to scale. There are significant opportunities in **wealth management**, with large opportunities in the pipeline, and expansion into **private equity, corporates, and hedge funds**, supported by investment in **deep sector content and generative AI technologies**.  **[FDS_3378702_10]**
- **FactSet is leveraging generative AI to improve internal efficiencies** in areas like software development and content collection, which is expected to result in cost savings and margin improvements starting in **FY '25**. This positions the company well for future growth.  **[FDS_3378702_15]**

9bcaf8df1757ba40585ce835403d45947623607069ef74c697ff76daef74d966

| Year | Amount Due (in millions) | Debt Type         | Interest Rate (%) | % of Total Debt                                                                 |
|----------|------------------------------|-----------------------|-----------------------|------------------------------------------------------------------------------------|
| 2025     | 62.5                         | 2022 Term Facility    | Floating SOFR + 0.975 | 4.6% = (62.5 / 1,367.5) * 100 **[0001013237-25-000010_fds-20241130.htm:23]** **[0001013237-25-000010_fds-20241130.htm:55]**                                      |
| 2027     | 500.0                        | 2027 Notes            | 2.900                | 36.6% = (500.0 / 1,367.5) * 100 **[0001013237-25-000010_fds-20241130.htm:23]** **[0001013237-25-000010_fds-20241130.htm:25]**                                   |
| 2027     | 305.0                        | 2022 Revolving Facility | Floating SOFR + 0.975 | 22.3% = (305.0 / 1,367.5) * 100 **[0001013237-25-000010_fds-20241130.htm:23]** **[0001013237-25-000010_fds-20241130.htm:25]**                                   |
| 2032     | 500.0                        | 2032 Notes            | 3.450                | 36.6% = (500.0 / 1,367.5) * 100 **[0001013237-25-000010_fds-20241130.htm:23]** **[0001013237-25-000010_fds-20241130.htm:25]**                                   |

e0abc4d4eeff360162f9e79b30c40775edae7ade4879d97aece0743f6dc8357c

1. **ASV Growth and Outlook**  
   **Q:** Why isn't ASV guidance for '25 showing acceleration?  
   **A:** Management explained that while they are optimistic about the second half of FY25, they are prudently guiding ASV growth of **4% to 6%** without baking in acceleration due to ongoing headwinds. They expect improvements from stronger capital markets activity and new product demand, especially in the second half. **[FDS_3401868_10]**

2. **Revenue Growth Deceleration and ASV Growth**  
   **Q:** Why is revenue growth guiding lower despite strong ASV wins?  
   **A:** Revenue lags ASV due to the recurring nature of the business. Although Q4 had strong ASV wins, the earlier quarters' lower ASV growth dampens FY25 revenue performance. Revenue recognition will be more pronounced in future periods as ASV accumulates. **[FDS_3401868_13]**

3. **Margin Outlook and Investment Spend**  
   **Q:** How should we think about margins given investment and bonus resets?  
   **A:** Margins in FY25 are expected to normalize, with about half of the margin difference from '24 due to resetting bonus levels. The remaining impact comes from funding technology investments, including approximately **150 basis points** allocated to areas like generative AI, all self-funded through productivity gains and cost reductions. ** **[FDS_3401868_6]** **[FDS_3401868_14]** **

4. **Generative AI Investments and Impact**  
   **Q:** What is the impact of generative AI investments on ASV and expenses?  
   **A:** Generative AI is expected to contribute an incremental **30 to 50 basis points** to ASV growth, particularly in the second half of FY25. Related expenses are about **50 basis points**, included in margin guidance. Investments focus on AI-powered solutions monetized through usage-based models, driving future growth. ** **[FDS_3401868_11]** **[FDS_3401868_12]** **[FDS_3401868_15]** **

5. **Asset Management Cancel and Buy-Side Environment**  
   **Q:** What caused the large asset management cancellation, and what's the outlook?  
   **A:** The cancellation resulted from a client's cost pressures leading to consolidation. However, management is encouraged by recent significant wins and sees signs of a more constructive buy-side environment, with clients showing an appetite for transformation despite ongoing cost challenges. **[FDS_3401868_8]**

6. **Competitive Environment and Pricing Pressure**  
   **Q:** Are competitors engaging in aggressive pricing amid tough conditions?  
   **A:** Management hasn't observed significant changes in competitive aggressiveness. While competition remains, FactSet strategically uses pricing to win market share, being competitive when displacing rivals and securing longer-term contracts without engaging in excessive discounting. **[FDS_3401868_17]**

7. **M&A and Partnerships to Drive Growth**  
   **Q:** Will you pursue M&A or partnerships to stimulate growth above 5%?  
   **A:** They are open to exploring partnerships and targeted M&A opportunities to drive top-line growth. With improving M&A markets, they plan to maintain discipline while leveraging partnerships to enter new market segments and enhance their offerings. **[FDS_3401868_19]**

8. **Strategy Shift and 2H Outlook Differences**  
   **Q:** Is there a strategic shift towards growth over margins, and what's different this year?  
   **A:** There's no major philosophical change; the focus remains on balancing growth with delivering cash flow. This year, they are more confident in a constructive market and have evolved the platform to target larger deals. New products and innovations provide greater confidence in second-half improvements compared to last year. **[FDS_3401868_20]**

9. **Data Expansion Initiatives and Client Impact**  
   **Q:** How are data expansions affecting clients?  
   **A:** Investments in real-time content, deep sector data, and private markets are enhancing client offerings. This has led to significant wins and deeper client engagement, particularly in wealth management and banking, expected to drive future growth through improved content coverage and capabilities. **[FDS_3401868_21]**

10. **Competitor Displacements and Win Drivers**  
    **Q:** What drove recent share gains from competitors?  
    **A:** Success has been driven by enterprise-level deals, strong offerings in wealth management, and outstanding banking and desktop products. Many top ASV wins were against major competitors, indicating clients are increasingly consuming value through FactSet's diverse solutions. **[FDS_3401868_16]**

c2970ee839366f83140a75d50830325eb9fa90734fe481281328cc18da0c1267

- **Client count growth is slowing**, with management noting that client count growth, driven by new business, has come down. There is increased **competitive pressure** leading to **lower price realization in new business**, reflecting a more competitive environment. Clients are seeking alternatives, making large decisions tougher.  **[FDS_3378702_13]** **[FDS_3378702_17]** **[FDS_3378702_7]** **[FDS_3378702_11]** **[FDS_3378702_10]**
- **Anticipated lower organic ASV growth and GAAP revenue to land at the lower end of guidance**, due to the impact of the **Credit Suisse-UBS merger** and a **large wealth cancellation**, leading to a more conservative outlook. Management is not assuming a bounce back in banking, impacting future growth prospects.  **[FDS_3378702_9]** **[FDS_3378702_12]**
- **Expected margin compression in the second half**, as **adjusted operating margin is projected to decrease from 38.3% in Q2 to around 35% in H2**, due to expenses ramping up, including higher technology costs. Shift into **lower-margin businesses like managed services** could also impact profitability.  **[FDS_3378702_6]** **[FDS_3378702_8]**

ea4399153bee34f807849433148c6e32bea37a4700666c3821ff43fce9bad704

1. **ASV Growth Acceleration**  
   **Q:** Should we expect acceleration in ASV growth in Q2?  
   **A:** Management is optimistic about ASV growth accelerating in the second quarter due to positive momentum across various firm types. They highlighted strong performance in wealth management, with top 10 deals for the year—**half are from wealth**, including several **7-figure deals**.  **[FDS_3411954_6]**  They see increased momentum in private equity, venture capital, and hedge funds, expecting these markets to potentially grow at **10% this year**.  **[FDS_3411954_6]**  Good renewal conversations in banking and positive feedback on their Pitch Creator product are also encouraging.  **[FDS_3411954_6]** 

2. **AI Products Monetization**  
   **Q:** Can you provide color on gen AI products' traction and ASV contribution?  
   **A:** Management reports exceptional feedback on their generative AI products and sees great potential for monetization.  **[FDS_3411954_9]**  They expect **30 to 50 basis points of growth in FY '25** from monetizing gen AI, which is included in their guidance but could potentially exceed expectations.  **[FDS_3411954_9]**  Products like the conversational API, Pitch Creator, and Portfolio Commentary are gaining traction, with deals ranging from tens of thousands to hundreds of thousands of dollars.  **[FDS_3411954_9]** **[FDS_3411954_17]**  The focus is on efficiency gains for clients, such as saving time in pitch creation and portfolio commentary generation.  **[FDS_3411954_9]** **[FDS_3411954_17]** 

3. **M&A Appetite and AI Investments**  
   **Q:** Has your M&A appetite changed due to AI investments?  
   **A:** The company maintains a high appetite for M&A and is in a better position to pursue acquisitions, focusing on filling gaps in their product suite.  **[FDS_3411954_16]**  While they are not specifically targeting AI-related assets, they prefer companies with modern technology stacks, which may include AI capabilities.  **[FDS_3411954_16]**  Their conviction in monetizing AI investments does not materially change their M&A strategy.  **[FDS_3411954_16]** 

4. **Pricing Dynamics**  
   **Q:** What are your pricing expectations this fiscal year versus last?  
   **A:** Management expects realized pricing this fiscal year to be similar to last year but notes that the CPI increase they can capture is lower due to inflation coming down.  **[FDS_3411954_6]** **[FDS_3411954_18]**  In some new business and renewals, they've adjusted pricing structures to be more competitive, resulting in higher volumes despite slightly lower price realization.  **[FDS_3411954_15]** **[FDS_3411954_18]**  Overall, they expect the value provided to clients to translate into stable pricing year-over-year.  **[FDS_3411954_18]** 

5. **Client Budgets and Pipeline Optimism**  
   **Q:** Clients' budgets remain flat; what's driving pipeline optimism?  
   **A:** Despite expecting clients' budgets to remain flat and cost-focused, management is optimistic due to increased client engagement.  **[FDS_3411954_10]** **[FDS_3411954_20]**  Trials have increased **23% in the Americas** and **13% in Europe**, and RFPs are up **30% year-over-year in Q1**.  **[FDS_3411954_6]** **[FDS_3411954_20]**  They see potential for market share gains as clients reassess providers and are encouraged by improved M&A activity, which may lead to increased spending on the sell side.  **[FDS_3411954_20]** 

6. **Managed Services Growth**  
   **Q:** What are your thoughts on managed services as a growth driver?  
   **A:** Managed services are seen as a key growth driver for buy-side ASV.  **[FDS_3411954_8]**  Recent wins include a deal with an outsourced CIO provider, and they have a partnership with JPMorgan involving managed services.  **[FDS_3411954_8]**  These services augment clients' internal capabilities, particularly in performance and risk reporting, helping clients reduce total cost of ownership.  **[FDS_3411954_8]**  While they don't provide a market size due to lack of direct competition, they see considerable upside.  **[FDS_3411954_8]** 

7. **Margin Expectations**  
   **Q:** Should we expect margin compression in the back half of the year?  
   **A:** Management reaffirms guidance of margins being slightly down for 2025.  **[FDS_3411954_12]**  They expect expenses to ramp up starting in the second quarter due to higher people costs and increased technology expenses, particularly in cloud-related areas.  **[FDS_3411954_12]**  They anticipate H1 margins to be closer to the midpoint of their guidance range.  **[FDS_3411954_12]** 

8. **Client Retention and ASV**  
   **Q:** Why didn't higher retention translate to ASV acceleration?  
   **A:** Client retention improved to **91% this quarter**, up from 90%.  **[FDS_3411954_19]**  This improvement is attributed to fewer full client cancellations and efforts to enhance retention processes.  **[FDS_3411954_19]**  However, the ASV retention rate remains above **95%**, and the 1% increase in client retention may not significantly impact overall ASV acceleration due to churn among smaller clients.  **[FDS_3411954_19]** 

9. **Competitive Pricing Strategy**  
   **Q:** How are you tweaking pricing to improve conversions?  
   **A:** Management has proactively adjusted pricing and packaging to be more competitive, especially in new business where price pressure is highest due to switching costs.  **[FDS_3411954_15]**  They've targeted specific firm types and changed pricing structures, resulting in higher volumes despite lower price realization.  **[FDS_3411954_15]**  Increased rate cards mean overall ASV has increased due to higher volumes, even if price realization percentages appear lower.  **[FDS_3411954_15]** **[FDS_3411954_18]** 

10. **7-Figure Landmark Win**  
    **Q:** What were key reasons for the 7-figure win over incumbent?  
    **A:** The win involved an outsourced CIO, with key factors including the quality of FactSet's technology, analytics solutions, and open platform allowing flexibility and connectivity with partners.  **[FDS_3411954_14]**  Their multi-asset class capabilities and managed services offerings also played significant roles.  **[FDS_3411954_14]** 

11. **Wealth Segment Competitiveness**  
    **Q:** Are you seeing elongated decision-making in wealth?  
    **A:** While they didn't have a large wealth win in Q1 similar to last year's, management expects wealth to reaccelerate for the rest of the year.  **[FDS_3411954_13]**  They are confident due to increased new business, seat growth, and successful displacement of competitors.  **[FDS_3411954_13]**  They do not see significant changes in decision-making timelines or competitive dynamics in the wealth segment.  **[FDS_3411954_13]** 

12. **Client Segments Improvement**  
    **Q:** Which client segments will improve most in H2?  
    **A:** Management expects strong growth in private equity, venture capital, and hedge funds, anticipating these markets to potentially grow at **10% this year**.  **[FDS_3411954_21]** **[FDS_3411954_6]**  Wealth management is also expected to perform well.  **[FDS_3411954_21]** **[FDS_3411954_6]**  They are optimistic about the sell side if banking activity increases, while the buy side linked to active management remains more uncertain.  **[FDS_3411954_21]** 

13. **Softness in Clients' Budget Priorities**  
    **Q:** Can you provide color on clients deprioritizing budgets?  
    **A:** Clients remain cost-sensitive, with budgets expected to be flat.  **[FDS_3411954_10]**  Management is encouraged by increased activity—trials and RFPs are up—indicating optimism for the remainder of the year.  **[FDS_3411954_10]**  They focus on helping clients with efficiency gains through managed services and AI tools to perform well even in cost-constrained environments.  **[FDS_3411954_10]** **[FDS_3411954_20]** 

14. **Contribution of Irwin Acquisition**  
    **Q:** How should we think about Irwin's revenue contribution?  
    **A:** The Irwin acquisition will not have a material impact on top-line revenue but will help the corporates business overall.  **[FDS_3411954_11]**  The acquisition is meeting or exceeding expectations, and early signs are positive.  **[FDS_3411954_11]** 

15. **AI Products' Value Proposition**  
    **Q:** What's the value proposition of AI products for clients?  
    **A:** The value proposition focuses on saving clients time and improving efficiency.  **[FDS_3411954_17]**  Products like Portfolio Commentary generate auditable commentary quickly, and Pitch Creator saves analysts significant time in creating pitches.  **[FDS_3411954_17]** **[FDS_3411954_9]**  Management focuses on efficiency gains rather than large-scale monetization, with deals ranging from tens of thousands to hundreds of thousands of dollars.  **[FDS_3411954_17]** **[FDS_3411954_9]** 

16. **Recent Pickup in Client Decision-Making**  
    **Q:** What's causing the recent pickup in client decisions?  
    **A:** The recent pickup in the last six weeks is attributed to increased client-facing activities and a more optimistic market.  **[FDS_3411954_22]**  Management has implemented processes to increase client outreach, and there's a sense of improved optimism among the sales force and clients.  **[FDS_3411954_22]** 

87789133a7a060b78b0bfaa10f064e8db1bc8b4db78054e6cb4614242b4f38dc

1. **ASV Guidance and Growth Outlook**  
   **Q:** Why is ASV guidance range wide, and growth slowing?  
   **A:** Management acknowledges the wider ASV guidance range due to longer decision cycles and market uncertainty. They are confident in achieving the **midrange** but have derisked the low end. The challenging environment, with delayed larger deals, has led to slower ASV growth. However, they see reasons for optimism with recent strategic wins and believe underlying demand remains steady.  **[FDS_3392610_6]** **[FDS_3392610_19]** 

2. **Impact of UBS-CS Merger**  
   **Q:** What is the impact of the UBS-CS merger on revenue?  
   **A:** The **majority of the impact** from the UBS-Credit Suisse merger is reflected in this quarter's results, with a **smaller effect** expected in Q4. They were able to recapture some cancellations by selling back to UBS, mitigating the overall impact. Excluding this one-time event, ASV erosion would have been around **30 basis points** lower.  **[FDS_3392610_9]** **[FDS_3392610_12]** 

3. **Competitive Environment and Pricing Pressure**  
   **Q:** How is the competitive landscape and pricing pressure?  
   **A:** Management feels well-positioned competitively, especially on the buy side and in wealth management. While there is **some price pressure on new logos**, particularly when displacing competitors and matching client budgets, such instances are **not widespread**. Multiyear contracts allow them to recapture price over time, and overall pricing realization remains strong.  **[FDS_3392610_10]** 

4. **Generative AI Impact on Costs and ASV**  
   **Q:** How will AI affect costs and ASV growth?  
   **A:** They see opportunities for **efficiency gains** through AI in client service, quality assurance, content collection, and code writing. While these efficiencies could reduce costs, the decision to reinvest the savings into products is under consideration. AI is expected to drive incremental ASV in **2025**, but they are evaluating the impact on expenses.  **[FDS_3392610_14]** 

5. **Capital Markets Recovery and Sell-Side Customers**  
   **Q:** When will sell-side ASV growth reaccelerate?  
   **A:** Management observes increased **M&A activity** and slightly better hiring trends, particularly among **middle-market and boutique banks**. Seasonal hiring is higher this quarter compared to last year, but they remain cautious and are not building a significant recovery into Q4 expectations. Historically, as banking fees and hiring improve, FactSet's ASV growth on the sell side may follow.  **[FDS_3392610_8]** 

6. **Cost Management and Expense Levers**  
   **Q:** What levers remain for cost management?  
   **A:** They have focused on managing costs effectively, reducing **people costs by 10%** and **real estate costs by 14%** year-over-year in Q3. They do not anticipate major additional cost-cutting actions, feeling satisfied with current expense levels. Adjustments to the bonus accrual have been made to align with ASV achievement, but further significant levers are limited.  **[FDS_3392610_15]** 

7. **Private Markets Strategy**  
   **Q:** What are your ambitions in private markets?  
   **A:** FactSet has been investing steadily in private markets since **2019**, doubling their coverage to over **8 million entities** and enhancing data quality. They acquired **Cobalt** and are collaborating with ecosystem partners. While recognizing increased competition in the space, they cannot comment on any potential acquisition transactions.  **[FDS_3392610_18]** 

8. **Wealth Segment Demand**  
   **Q:** How is demand in the wealth segment?  
   **A:** Management views the wealth segment as their **healthiest market**, with an active pipeline of deals of various sizes. They continue to develop new workflows and believe they are well-positioned to accelerate growth in wealth management.  **[FDS_3392610_21]** 

9. **Recovery Expectations**  
   **Q:** What is your outlook on the market recovery?  
   **A:** Predicting market recovery timing is challenging. They note that **2024** was a year of cost cuts, with budgets reflecting that. While there are signs of paused projects resuming and better hiring trends in banking, they are cautious and do not expect significant tailwinds until potentially **next calendar year**. They believe they can create their own tailwinds by leveraging their addressable market and product offerings.  **[FDS_3392610_16]** **[FDS_3392610_19]** 

10. **Deep Sector Offering**  
    **Q:** Any updates on the deep sector offering?  
    **A:** They continue to expand their deep sector offering, now covering **eight sectors** with over **80 reports** available within workstations. They have an active pipeline and see this as an important aspect of what most banks desire, especially during renewals.  **[FDS_3392610_20]** 

11. **Technology Costs from AI**  
    **Q:** How will AI tools impact technology costs?  
    **A:** The impact on technology costs is currently **uncertain**, as increased client usage of AI tools will result in higher compute expenses. They are monitoring usage and costs closely, and these factors will influence how they price these products to ensure the value delivered outweighs added expenses.  **[FDS_3392610_11]** 

12. **Bonus Accruals**  
    **Q:** What were the bonus accruals each quarter?  
    **A:** Bonus accruals were **$30 million** in Q1 (including a $3 million top-up), **$20 million** in Q2, and **$18 million** in Q3. They expect around **$15–16 million** in Q4, totaling approximately **$83 million** for the year, down from **$105 million** last year. Adjustments align the bonus accrual with ASV achievement and margin performance.  **[FDS_3392610_17]** 

c5686b05bb747d17ba03fb22a2e7d854b3d71676dd10684c2934d77c7025d5c6

1. **Lowered Revenue Guidance**  
   **Q:** Why is revenue guidance at lower end?  
   **A:** Management anticipates lower ASV growth and GAAP revenue at the lower end of guidance due to the impact of the **UBS-Credit Suisse merger** and a **large wealth cancellation**. These events are being reflected in the guidance, and they are taking a more conservative view of the environment.  **[FDS_3378702_12]** 

2. **Q3 Softness and Q4 Optimism**  
   **Q:** Outlook for Q3 and Q4?  
   **A:** Management expects a **weaker Q3** but is **cautiously optimistic about Q4**, citing a healthier pipeline with a higher number of six- and seven-figure deals, up about **5% year-over-year**, providing greater visibility and confidence for the fourth quarter.  **[FDS_3378702_9]** 

3. **Expense Ramp and Margin Outlook**  
   **Q:** How will expenses and margins trend this year?  
   **A:** Expenses are expected to **ramp up** in the back half of the year, mainly due to increased technology costs associated with **cloud expenses and generative AI initiatives**. Margins will decrease from **38.3% in Q2** to about **35%** in the second half, aiming for the midpoint of guidance at **36.5%**.  **[FDS_3378702_8]** **[FDS_3378702_14]** 

4. **Pricing Pressure**  
   **Q:** Are you seeing pricing pressure?  
   **A:** Management notes that **price realization in new business is lower** than last year, reflecting a more competitive environment. Overall price realization against the rate card is about **flat to last year**, varying across firm types.  **[FDS_3378702_7]** **[FDS_3378702_17]** 

5. **Competitive Environment**  
   **Q:** How is competition affecting you?  
   **A:** The competitive environment has intensified, with more total cost of ownership conversations and greater C-suite involvement. Clients are seeking new alternatives, and pricing pressure is greater, especially in smaller deals within banking and PVC. FactSet believes it is in a strong position competitively, particularly on the **buy side** and in **wealth management**.  **[FDS_3378702_11]** **[FDS_3378702_17]** 

6. **Generative AI Opportunities**  
   **Q:** How will generative AI impact your business?  
   **A:** FactSet sees significant opportunities with **generative AI** in increasing developer efficiency, content collection, and client support. Efficiency gains are expected primarily in **FY'25**, contributing to **cost avoidance** as they bend the cost curve.  **[FDS_3378702_15]** **[FDS_3378702_16]** 

7. **Capital Markets Recovery Impact**  
   **Q:** What is your outlook on capital markets recovery?  
   **A:** Management acknowledges recent dovish signals from the Fed, with the possibility of **rate cuts** later in the year. While they see positive signs like recent IPO activity, there is a lag before improvements impact their business, so they remain cautious in their near-term outlook.  **[FDS_3378702_12]** 

8. **Managed Services Expansion**  
   **Q:** Tell us about investment in managed services.  
   **A:** FactSet is investing more in **managed services**, a smaller part of the business that is typically **lower-margin**. They see opportunities as clients outsource solutions, which, combined with their subscription offerings, presents a good overall opportunity.  **[FDS_3378702_6]** 

9. **Client Count Growth**  
   **Q:** Why is client count growth slowing?  
   **A:** Client count growth is driven by new business, and the slowdown reflects the current competitive environment. Management is not overly concerned and notes that **user count growth remains strong**.  **[FDS_3378702_13]** 

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Factset Research Systems Inc (FDS)

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