FactSet Powers Ahead in Fiscal 2025, Despite Macro Uncertainty

FactSet, a leading provider of financial data and technology solutions, has reported solid operating performance in its first fiscal quarter 2025, with organic ASV (Annual Subscription Value) growing by 4.5% year-over-year.

In a conference call on December 19, 2024, FactSet's management team, led by CEO Phil Snow, provided an update on the company's performance and outlook for the fiscal year.

Despite a backdrop of macro uncertainty and cost pressure faced by clients, FactSet saw momentum building during the first quarter, with constructive dialogue with clients and trends in the pipeline. The company remains cautious but encouraged by these developments.

FactSet's organic ASV growth was driven by wins in partnerships and asset owners, as well as improved retention across various client segments. In the Americas, the company grew 5% year-over-year, with new business accelerating in wealth, hedge funds, and asset owners. EMEA experienced 4% growth, while Asia Pacific maintained 7% growth.

The company's financial performance was marked by solid operating results, including an adjusted operating margin of 37.6% and adjusted diluted EPS of $4.37. FactSet also reported ASV retention above 95% and client retention at 91%, with a growing client base of almost 8,250.

The company's Chief Executive Officer, Phil Snow, highlighted the importance of looking beyond quarter-over-quarter performance, given the seasonally lower ASV added in the first quarter. FactSet expects ASV growth to be second-half weighted, consistent with its prior guidance.

FactSet's Investor Day last month provided a platform for the company to discuss its strategy to supercharge financial intelligence and help clients as their trusted data and technology partner. The company's market-leading franchises across firm types are underpinned by its technology evolution, investment priorities, and product roadmap.

The conference call also underscored FactSet's confidence in executing its medium-term targets, which were shared with investors at Investor Day. The company's continued expansion within wealth drove user count to over 218,000, while data solution wins with partners offset lower retention with asset manager clients.

FactSet's results reflect the company's resilience and adaptability in navigating a challenging macro environment. As the industry leader in financial data and technology solutions, FactSet is well-positioned to capitalize on emerging trends and support its clients' evolving needs.

The company's ability to deliver efficiency and innovation to end-to-end workflows will be crucial in driving growth and meeting client expectations. With a clear strategy and strong execution capabilities, FactSet is poised to continue delivering solid results and creating value for its stakeholders.

In conclusion, FactSet's fiscal 2025 Q1 performance demonstrates the company's ability to navigate a complex environment while maintaining momentum. As the company continues to execute on its strategy and meet client needs, investors can expect FactSet to remain a leader in the financial data and technology solutions space.