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% year-over-year, exceeding guidance and marking 44 consecutive years of revenue growth.

• Q4 saw $54 million in ASV added, driven by large multi-year renewals and competitive displacements, especially in wealth management and banking.

• Wealth management was the largest ASV growth contributor, with 12% annual growth and over 23,000 new advisor desktops deployed, expanding total wealth users to over 100,000.

• Generative AI investments and new workflow automation tools are driving incremental ASV, retention, and client engagement.

• The company is executing a multi-year investment plan focused on data expansion, deeper client workflow integration, and accelerated AI innovation.

Financial highlights

• Q4 2024 GAAP revenues rose 4.9% year-over-year to $562.2 million; organic revenues up 5.0%.

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

• Adjusted EPS for Q4 increased 23.8% to $3.74; GAAP EPS up 38.1% to $2.32.

• Free cash flow for the year was $614.7 million, up 5.1% year-over-year.

• Adjusted EBITDA for the year was $847.5 million, up 9.1%.

Outlook and guidance

• Fiscal 2025 guidance: organic ASV growth of $90–$140 million (5% at midpoint), revenue of $2,285–$2,305 million, adjusted operating margin of 36–37%, and adjusted EPS of $16.80–$17.40.

• GAAP operating margin projected at 32.5%–33.5%; GAAP diluted EPS at $15.10–$15.70.

• Expectation of stronger growth in the second half of fiscal 2025, driven by new product launches 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.