FactSet Research Systems Inc. (FDS) Q3 2023 Earnings Call Transcript

For the period ending May 31, 2023

June 22, 2023 11:00 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Good day and thank you for standing by. Welcome to the FactSet Research Third Quarter Fiscal Year 2023 Earnings Call. [Operator Instructions] Please be advised that today’s conference is being recorded. I would now like to hand the conference over to your speaker today, Kendra Brown, Senior Vice President, Investor Relations. Please go ahead.

Kendra Brown

Thank you and good morning, everyone. Welcome to FactSet’s third fiscal quarter 2023 earnings call. Before we begin, the slides we will reference during the presentation can be accessed via the webcast on the Investor Relations section of our website at factset.com and is currently available on our website. A replay of today’s call will be available via phone and on our website. After our prepared remarks, we will open the call to questions from investors. [Operator Instructions]

Before we discuss our results, I encourage all listeners to review the legal notice on Slide 2, which explains the risks of forward-looking statements and the use of non-GAAP financial measures. Additionally, please refer to our Forms 10-K and 10-Q for a discussion of risk factors that could cause actual results to differ materially from these forward-looking statements. Our slide presentation and discussions on this call will include certain non-GAAP financial measures. For such measures, reconciliations to the most directly comparable GAAP measures are in the appendix to the presentation and in our earnings release issued earlier today.

Joining me today are Phil Snow, Chief Executive Officer and Linda Huber, Chief Financial Officer. We will also be joined by Helen Shan, Chief Revenue Officer, for the Q&A portion of today’s call.

I will now turn the discussion over to Phil Snow.

Phil Snow

Thank you, Kendra and good morning everyone. Thanks for joining us today. I am pleased to share our third quarter results. Our organic ASV plus professional services grew 8% year-over-year. This was driven by double-digit ASV growth in analytics, where we saw strength with asset managers, asset owners and hedge funds and the successful execution of our international price increase. These gains were offset by headwinds to workstation growth among wealth, banking and corporate clients and deceleration in expansion among partners.

Our investments in content and technology have strengthened our competitive position, allowing us to navigate market volatility successfully. In the third quarter, we saw broad-based growth across all firm types with double-digit ASV growth from our wealth management, banking, hedge fund, corporate and private equity and venture capital clients.