FactSet (FDS) Q4 2024 earnings summary

Executive summary

• Fiscal 2024 annual revenue reached $2.2 billion, with organic ASV plus professional services up $104 million or 4.8%, exceeding guidance and marking 44 consecutive years of revenue growth.

• Adjusted diluted EPS grew 12.3% to $16.45, and Q4 adjusted EPS rose 23.8% to $3.74, both above guidance.

• Wealth management led ASV growth with 12% annual increase and over 23,000 advisor desktops added, expanding total wealth users to over 100,000.

• Generative AI initiatives and new workflow automation tools are gaining traction and expected to drive incremental ASV and retention.

• Client count increased 3.7% to 8,217, and user count grew 13.9% to 216,381 in fiscal 2024.

Financial highlights

• Q4 2024 GAAP revenue rose 4.9% to $562.2 million; organic revenue up 5% to $563 million.

• Adjusted operating margin for Q4 improved by 240 bps to 35.8%; Q4 GAAP operating margin was 22.7% (up 110 bps YoY).

• Q4 net income was $89.5 million, up 37.4% year-over-year; adjusted net income was $144.1 million, up 22.9%.

• Q4 free cash flow was $137.2 million (down 12% YoY), but full-year free cash flow rose 5% to $614.7 million.

• Q4 ASV retention exceeded 95%, client retention at 90%, and user count increased 14%.

Outlook and guidance

• Fiscal 2025 organic ASV growth guided at $90–$140 million (5% at midpoint), with adjusted operating margin of 36–37% and adjusted EPS of $16.80–$17.40.

• GAAP revenue guidance for fiscal 2025 is $2,285–$2,305 million; GAAP operating margin expected at 32.5%–33.5%.

• Expectation for stronger growth in the second half of fiscal 2025, driven by new product launches, GenAI monetization, and improved market conditions.

• Annual effective tax rate expected at 17%–18%.

• Capital expenditures projected at $95–$105 million; interest expense at $44–$48 million.