Q4 2024 FactSet Research Systems Inc Earnings Call

September 19, 2024

4, 2024 Conference Call.

Operator: --after the speaker's presentation, there would be a Question & Answer session. To ask the question during the session; you will need to press star 1,1 on your telephone. You would then hear an automated message advising your hand is raised. To withdraw your question, please press star 1,1 again.

Speaker Change: At this time, all participants are in a listen-only mode. After the speakers presentation, there will be a question and answer session.

Speaker Change: So, ask the question during the session, you would need to press star one one on your telephone. You would then hear an automated message advising your hand is raised. To withdraw your question, please press star one one again.

Kate Kirby: I will now like to hand the conference over to Kate Kirby. You may begin.

Speaker Change: I will now like to hand the conference over to Kate Kirby. You may begin.

Kate Kirby: Thank you and good morning, everyone. Welcome to FactSet's Fourth Fiscal Quarter 2024 Earnings Call. Before we begin, the slides we reference during this presentation can be found through the webcast on the Investor Relations section of our website at factset.com. A replay of today's call will be available on our website. After our prepared remarks, we will open the call to questions from investors. The call is scheduled to last for one hour. To be fair to everyone, please limit yourself to one question. You may re-enter the queue for additional follow-up questions, which we will take if time permits.

Kate Kirby: Thank you and good morning everyone. Welcome to factsets 4th fiscal quarter 2024 earnings call.

Speaker Change: Before we begin, the slides we've referenced during this presentation.

Kate Kirby: can be found through the webcast on the Investor Relations section of our website at backset.com. A replay of today's call will be available on our website.

Kate Kirby: After our prepared remark, we will open the call to questions from investors, the call is scheduled to last for one hour. To be fair to everyone, please limit yourself to one question. You may re-enter the queue for additional follow-up questions, which we will take if time permits.

Kate Kirby: Before we discuss our results, I encourage all listeners to review the legal notice on slide two, which explains the risk of forward-looking statements and the use of non-GAAP financial measures. Additionally, please refer to Forms 10-K and 10-Q for discussion of risk factors that could cause actual results to differ materially from these forward-looking statements. Our slide presentation and discussion on this call will include certain non-GAAP financial measures. For such measures, reconciliation to the most directly comparable GAAP measures are in the appendix to the presentation and in our earnings release issued earlier today. During this call, unless otherwise noted, relative performance metrics we select changes as compared to respective 2023 period.

Before we discuss our results, I encourage all listeners to review the legal notice on slide two, which explains the risk of forward-looking statements and the use of non-GAAP financial measures. Additionally, please refer to Forms 10-K and 10-Q for discussion of risk factors that could cause actual results to differ materially from these forward-looking statements.

Kate Kirby: Before we discuss our results, I encourage all listeners to review the legal notice on slide 2, which explains the risk of forward-looking statements.

Kate Kirby: and the youth of non-gap financial measures. Additionally, please refer to Form 10K and 10Q for discussion of risk factors that could cause actual results to differ material from these forward-looking statements.

Our slide presentation and discussion on this call will include certain non-GAAP financial measures. For such measures, reconciliation to the most directly comparable GAAP measures are in the appendix to the presentation and in our earnings release issued earlier today. During this call, unless otherwise noted, relative performance metrics reflect changes as compared to respective 2023 period.

Kate Kirby: Our flight presentation and discussion on this call will include certain non-gap financial measures.

Kate Kirby: For such measures, reconciliation to the most directly comfortable gap measures.

Kate Kirby: are in the appendix to the presentation and in our earnings release issued earlier today.

Kate Kirby: Donus call, unless otherwise noted, relative performance matrix, reflect changes as compared to respective 2020 free period.

Kate Kirby: Joining me today on the call are Phil Snow, Chief Executive Officer; Helen Shan, Chief Financial Officer; and Goran Skoko, Chief Revenue Officer. I will now turn the discussion over to Phil.

Speaker Change: Joining me today on the call of Phil Snow, Chief Executive Officer, Helen Shan, Chief Financial Officer and Gordon Skoko, Chief Revenue Officer. I will now turn the discussion over to Phil.

Phil Snow: I will now turn the discussion over to Phil. Thank you, Kate, and good morning, everyone. I'm pleased to share our fourth quarter and full-year fiscal 2024 results. We ended fiscal 2024 with organic ASV plus professional services growth of $104 million or 4.8%, which is just above the midpoint of our guidance range provided in June. Annual revenue increased to $2.2 billion, adjusted operating margin to 37.8%, and adjusted EPS to $16.45, or 12.3% growth, all above the high end of our most recent guidance. Amidst the ongoing backdrop of macro uncertainty, we continue to see evidence of the green shoots we observed last quarter.

I will now turn the discussion over to Phil.

Thank you, Kate, and good morning, everyone. I'm pleased to share our fourth quarter and full-year fiscal 2024 results. We ended fiscal 2024 with organic ASV + Professional Services growth of $104 million or 4.8%, which is just above the midpoint of our guidance range provided in June. Annual revenue increased to $2.2 billion, adjusted operating margin to 37.8%, and adjusted EPS to $16.45, or 12.3% growth, all above the high end of our most recent guidance. Amidst the ongoing backdrop of macro uncertainty, we continue to see evidence of the green shoots we observed last quarter.

Philip Snow: Thank you, Kate, and good morning, everyone. I'm pleased to share our fourth quarter and full-year fiscal 2024 results. We ended fiscal 2024 with organic ASV + Professional Services growth of $104 million or 4.8%, which is just above the midpoint of our guidance range provided in June. Annual revenue increased to $2.2 billion, adjusted operating margin to 37.8%, and adjusted EPS to $16.45, or 12.3% growth, all above the high end of our most recent guidance.

Phil: Thank you Kate and good morning everyone. I'm pleased to share our fourth quarter and full year fiscal 2024 results

Phil: We ended fiscal 2024 with Organic ASV plus professional services growth of $104 million or $4.8%. Which is just above the midpoint of our guidance range provided in June.

Phil: Annual revenue increased to 2.2 billion, adjusted operating margin to 37.8% and adjusted EPS to $16.45 or 12.3% growth, all above the high end of our most recent guidance.

Amidst the ongoing backdrop of macro uncertainty, we continue to see evidence of the green shoots we observed last quarter. This positive trend paired with our solid execution resulted in sales momentum on large deals as we closed out the year. While we remain cautious, I'm encouraged by the re-acceleration of our new business and growth to end the fiscal year.

Phil: Amit's the ongoing backdrop of macro uncertainty, we continue to see evidence of the green shoots we observe last quarter. This positive trend paired with our solid execution resulted in sales momentum on large deals as we closed out the year.

Phil Snow: This positive trend paired with our solid execution resulted in sales momentum on large deals as we closed out the year. While we remain cautious, I'm encouraged by the re-acceleration of our new business and growth to end the fiscal year.

Speaker Change: While we remain cautious, I'm encouraged by the re-acceleration of our new business and growth to end the fiscal year.

Phil Snow: Turning now to our financial results. In the fourth quarter, we added $54 million of ASV, which was in line with what we delivered in Q4 last year. This was driven by several large multi-year renewals and seven-figure competitive displacements across multiple phone sites. For our organic ASV performance by region, in the Americas, we had 6% growth, strength from strategic winds and wealth, and momentum from long-term renewals. On the south side, we're offset by softness on the buy side. In the EMEA region, growth decelerated to 2%. Gains from wealth were offset by headwinds to retention on the buy side across the region, as market conditions continue to constrain the budgets of our mid-to-large-sized asset manager clients.

Turning now to our financial results. In the fourth quarter, we added $54 million of ASV, which was in line with what we delivered in Q4 last year. This was driven by several large multi-year renewals and seven-figure competitive displacements across multiple phone sites. For our organic ASV performance by region, in the Americas, we had 6% growth, strength from strategic winds and wealth, and momentum from long-term renewals on the sale side, we're offset by softness on the buy side.

Speaker Change: Turning now to our financial results, in the fourth quarter we added $54 million of ASV, which was in line with what we delivered in Q4 last year. This was driven by several large multi-year renewals and seven-figure competitive displacements across multiple phone types.

Speaker Change: For organic ASV performance by region in the Americas we had 6% growth.

On the sale side, we're offset by softness on the buy side. In the EMEA region, growth decelerated to 2%. Gains from wealth were offset by headwinds to retention on the buy side across the region, as market conditions continue to constrain the budgets of our mid-to-large-sized asset manager clients.

On the sale side, we're offset by softness on the buy side.

In the EMEA region, growth decelerated to 2%. Gains from wealth were offset by headwinds to retention on the buy side across the region, as market conditions continue to constrain the budgets of our mid-to-large-sized asset manager clients. In particular, 1/3 of the deceleration in the quarter was the result of a cancellation by one large buy-side client. In the Asia-Pacific region, we delivered growth of 7%, winds across wealth with our analytics products suite in data solutions were offset by higher erosion from banking and asset management clients.

Speaker Change: Strength from strategic winds in wealth and momentum from long-term renewals on the cell side, we're offset by softness on the biceite.

Speaker Change: In the Amir region, growth decelerated to 2%.

Speaker Change: Gaines from well for offset by headwinds to retention on the biceite across the region as market conditions continue to constrain the budgets of our mid to large size asset manager clients. In particular, one third of the deceleration in the quarter was the result of a cancellation by one large biceite client.

Phil Snow: In particular, one-third of the deceleration in the quarter was the result of a cancellation by one large buy-side client.

Phil Snow: In the Asia-Pacific region, we delivered growth of 7%, winds across wealth with our analytics products suite in data solutions were offset by higher erosion from banking and asset management clients. Now looking at trends by phone types, wealth management was the largest contributor to our ASV growth in fiscal 2024. Even with the one-time loss earlier in the year of a client in sourcing one of our services, in the fourth quarter we experienced strong demand and organic ASV growth experience celebrated to 12% for the year, led by multiple large enterprise deals in the long-term renewal. These large winds in the fourth quarter build on our competitive displacement of an incumbent at a marquee wirehouse client in the first quarter. In the fourth quarter, we secured a win against the same competitor in the Canadian market, where we now hold significant share with three of the region's top five wealth managers. Another notable advise a desktop win in Q4 was a significant displacement of a competitor where we are replacing a high number of high-end terminals at a leading private bank. In total, we entered over 23,000 advise of desktops in fiscal 2024, representing over 30% growth in seat count to bring our total wealth users to north of 100,000. Our wealth workstation has proven to be a differentiator with clients seeking firm-wide enterprise deployments that improve productivity of their advisors. And we believe that fact that is well positioned to continue our momentum in competitive displacements. As we broaden our offering for wealth managers, we are seeing early success in adjacent workflows. In the fourth quarter, we captured our first enterprise deal in the wealth middle office for performance and managed services. We also achieved a significant milestone in the first sale of our conversational API. This large deal powers a leading private wealth client through programmatic access to faxate mercury, our GNI-powered knowledge agents. In dealmakers, organic ASV growth was 4%. While headwinds impacted this segment earlier in the year, we observed a re-acceleration in Q4. This growth was driven by gains from a seven-figure competitive wind in banking to displays our main competitor in the space. And several multi-year contract renewals and a modest uptick in seasonal hiring. Conversations with our clients indicate a cautious optimism for more normalized hiring in banking in the months to come. On the institutional buy side, we faced a backdrop of tighter budgets and vendor consolidation that led to an organic ASV growth rate of 3%. These headwinds persisted throughout the year and were most pronounced for asset managers, where higher erosion and the large asset manager cancellation put pressure on retention. While ongoing fee compression continues to be a challenge for the industry, faxate is among the few players that clients can choose to partner with to help consolidate spend and lower total cost of operations. For partnerships and CGS, organic ASV growth was 6%. Softness from partnerships was offset by continued strong performance from CGS. In the fourth quarter, new business and renewal expansions added to growth, while a lack of large deals and a significant cancellation were headwinds. As we transition the fiscal 2025, we continue to execute against the strategic multi-year investment plan we outlined last quarter.

In the Asia-Pacific region, we delivered growth of 7%, winds across wealth with our analytics products suite in data solutions were offset by higher erosion from banking and asset management clients.

Speaker Change: In the Asia Pacific region, we delivered growth of 7% winds across wealth with our analytics products, weed and data solutions were offset by higher erosion from banking and asset management clients.

Now looking at trends by phone types, wealth management was the largest contributor to our ASV growth in fiscal 2024. Even with the one-time loss earlier in the year of a client in sourcing one of our services, in the fourth quarter we experienced strong demand and organic ASV growth experience celebrated to 12% for the year, led by multiple large enterprise deals in the long-term renewal. These large winds in the fourth quarter build on our competitive displacement of an incumbent at a marquee wirehouse client in the first quarter. In the fourth quarter, we secured a win against the same competitor in the Canadian market, where we now hold significant share with three of the region's top five wealth managers. Another notable advise a desktop win in Q4 was a significant displacement of a competitor where we are replacing a high number of high-end terminals at a leading private bank. In total, we entered over 23,000 advise of desktops in fiscal 2024, representing over 30% growth in seat count to bring our total wealth users to north of 100,000. Our wealth workstation has proven to be a differentiator with clients seeking firm-wide enterprise deployments that improve productivity of their advisors. And we believe that fact that is well positioned to continue our momentum in competitive displacements. As we broaden our offering for wealth managers, we are seeing early success in adjacent workflows. In the fourth quarter, we captured our first enterprise deal in the wealth middle office for performance and managed services. We also achieved a significant milestone in the first sale of our conversational API. This large deal powers a leading private wealth client through programmatic access to faxate mercury, our GNI-powered knowledge agents. In dealmakers, organic ASV growth was 4%. While headwinds impacted this segment earlier in the year, we observed a re-acceleration in Q4. This growth was driven by gains from a seven-figure competitive wind in banking to displays our main competitor in the space. And several multi-year contract renewals and a modest uptick in seasonal hiring. Conversations with our clients indicate a cautious optimism for more normalized hiring in banking in the months to come. On the institutional buy side, we faced a backdrop of tighter budgets and vendor consolidation that led to an organic ASV growth rate of 3%. These headwinds persisted throughout the year and were most pronounced for asset managers, where higher erosion and the large asset manager cancellation put pressure on retention. While ongoing fee compression continues to be a challenge for the industry, faxate is among the few players that clients can choose to partner with to help consolidate spend and lower total cost of operations. For partnerships and CGS, organic ASV growth was 6%. Softness from partnerships was offset by continued strong performance from CGS. In the fourth quarter, new business and renewal expansions added to growth, while a lack of large deals and a significant cancellation were headwinds. As we transition the fiscal 2025, we continue to execute against the strategic multi-year investment plan we outlined last quarter.

Now looking at trends by phone types. Wealth management was the largest contributor to our ASV growth in fiscal 2024. Even with the one-time loss earlier in the year of a client in-sourcing one of our services, in the fourth quarter we experienced strong demand and organic ASV growth accelerated to 12% for the year, led by multiple large enterprise deals in the long-term renewal. These large winds in the fourth quarter build on our competitive displacement of an incumbent at a marquee wire-house client in the first quarter. In the fourth quarter, we secured a win against the same competitor in the Canadian market, where we now hold significant share with three of the region's top five wealth managers.

Speaker Change: Now, looking at Transbyphone Types

Speaker Change: Welp Management was the largest contributor to our ASV growth in fiscal 2024. Even with the one-time loss earlier in the year of a client in sourcing one of our services.

Speaker Change: In the fourth quarter, we experienced strong demand, an organic ASV growth accelerated to 12% for the year, led by multiple large enterprise deals in the long term renewal.

Speaker Change: These large winds in the fourth quarter build on our competitive displacement of an incumbent at a marquee-wirehouse client in the first quarter. In the fourth quarter, we secured a win against the same competitor in the Canadian market, where we now hold significant share with three of the region's top five wealth managers.

Another notable advise a desktop win in Q4 was a significant displacement of a competitor where we are replacing a high number of high-end terminals at a leading private bank. In total, we entered over 23,000 advise of desktops in fiscal 2024, representing over 30% growth in seat count to bring our total wealth users to north of 100,000. Our wealth workstation has proven to be a differentiator with clients seeking firm-wide enterprise deployments that improve productivity of their advisors. And we believe that fact that is well positioned to continue our momentum in competitive displacements. As we broaden our offering for wealth managers, we are seeing early success in adjacent workflows. In the fourth quarter, we captured our first enterprise deal in the wealth middle office for performance and managed services. We also achieved a significant milestone in the first sale of our conversational API. This large deal powers a leading private wealth client through programmatic access to faxate mercury, our GNI-powered knowledge agents. In dealmakers, organic ASV growth was 4%. While headwinds impacted this segment earlier in the year, we observed a re-acceleration in Q4. This growth was driven by gains from a seven-figure competitive wind in banking to displays our main competitor in the space. And several multi-year contract renewals and a modest uptick in seasonal hiring. Conversations with our clients indicate a cautious optimism for more normalized hiring in banking in the months to come. On the institutional buy side, we faced a backdrop of tighter budgets and vendor consolidation that led to an organic ASV growth rate of 3%.

Another notable advisor desktop win in Q4 was a significant displacement of a competitor where we are replacing a high number of high-end terminals at a leading private bank. In total, we entered over 23,000 advise of desktops in fiscal 2024, representing over 30% growth in seat count to bring our total wealth users to north of 100,000. Our wealth workstation has proven to be a differentiator with clients seeking firm-wide enterprise deployments that improve productivity of their advisors. And we believe that fact that is well positioned to continue our momentum in competitive displacements.

Speaker Change: Another notable advice to desktop winning Q4 was a significant displacement of a competitor where we are replacing a high number of high end terminals at a leading private bank.

Speaker Change: In total, we entered over 23,000 advice and death stops in fiscal 2024, representing over 30% growth in seed counts to bring our total wealth users to north of 100,000.

Speaker Change: Our wealth workstation has proven to be a differentiator with client-seeking firm-wide enterprise deployments that improve productivity of their advisors, and we believe that facts that is well positioned to continue our momentum in competitive displacement.

Our wealth workstation has proven to be a differentiator with clients seeking firm-wide enterprise deployments that improve productivity of their advisors. And we believe that fact that is well positioned to continue our momentum in competitive displacements. As we broaden our offering for wealth managers, we are seeing early success in adjacent workflows. In the fourth quarter, we captured our first enterprise deal in the wealth middle office for performance and managed services. We also achieved a significant milestone in the first sale of our conversational API. This large deal powers a leading private wealth client through programmatic access to faxate mercury, our GNI-powered knowledge agents. In dealmakers, organic ASV growth was 4%. While headwinds impacted this segment earlier in the year, we observed a re-acceleration in Q4. This growth was driven by gains from a seven-figure competitive wind in banking to displays our main competitor in the space. And several multi-year contract renewals and a modest uptick in seasonal hiring. Conversations with our clients indicate a cautious optimism for more normalized hiring in banking in the months to come. On the institutional buy side, we faced a backdrop of tighter budgets and vendor consolidation that led to an organic ASV growth rate of 3%.

As we broaden our offering for wealth managers, we are seeing early success in adjacent workflows. In the fourth quarter, we captured our first enterprise deal in the wealth middle office for performance and managed services. We also achieved a significant milestone in the first sale of our conversational API. This large deal powers a leading private wealth client through programmatic access to faxate mercury, our GNI-powered knowledge agents. In dealmakers, organic ASV growth was 4%. While headwinds impacted this segment earlier in the year, we observed a re-acceleration in Q4. This growth was driven by gains from a seven-figure competitive wind in banking to displays our main competitor in the space. And several multi-year contract renewals and a modest uptick in seasonal hiring. Conversations with our clients indicate a cautious optimism for more normalized hiring in banking in the months to come. On the institutional buy side, we faced a backdrop of tighter budgets and vendor consolidation that led to an organic ASV growth rate of 3%.

Speaker Change: As we broaden our offering for wealth managers, we are seeing early success in adjacent workflows.

Speaker Change: In the fourth quarter we captured our first enterprise deal in the world's middle office, the performance and managed services.

We also achieved a significant milestone in the first sale of our conversational API. This large deal powers a leading private wealth client through programmatic access to faxate mercury, our GNI-powered knowledge agents. In dealmakers, organic ASV growth was 4%. While headwinds impacted this segment earlier in the year, we observed a re-acceleration in Q4. This growth was driven by gains from a seven-figure competitive wind in banking to displays our main competitor in the space. And several multi-year contract renewals and a modest uptick in seasonal hiring. Conversations with our clients indicate a cautious optimism for more normalized hiring in banking in the months to come. On the institutional buy side, we faced a backdrop of tighter budgets and vendor consolidation that led to an organic ASV growth rate of 3%.

We also achieved a significant milestone in the first sale of our conversational API. This large deal powers a leading private wealth client through programmatic access to FactSet Mercury, our Gen AI-powered knowledge agent.

Speaker Change: We also achieved the significant milestone in the first sale of our conversational API. This large deal powers a leading private wealth client through programmatic access to mercury, our Jenny I. Power of Knowledge Agents.

In dealmakers, organic ASV growth was 4%. While headwinds impacted this segment earlier in the year, we observed a re-acceleration in Q4. This growth was driven by gains from a seven-figure competitive wind in banking to displays our main competitor in the space. And several multi-year contract renewals and a modest uptick in seasonal hiring. Conversations with our clients indicate a cautious optimism for more normalized hiring in banking in the months to come. On the institutional buy side, we faced a backdrop of tighter budgets and vendor consolidation that led to an organic ASV growth rate of 3%.

Speaker Change: In dear makers, Organic ASV Growth was 4%, while headwinds impacted the segment earlier in the year, we observed a re-acceleration in Q4. This growth was driven by gains from a 7-figure competitive wind and banking to this place on main competitor in the space.

Speaker Change: and several multi-year contract renewals and a modest uptick in seasonal hiring. Conversations with our clients indicate a cautious optimism for more normalised hiring and banking in the months to come.

On the institutional buy side, we faced a backdrop of tighter budgets and vendor consolidation that led to an organic ASV growth rate of 3%. These headwinds persisted throughout the year and were most pronounced for asset managers, where higher erosion and the large asset manager cancellation put pressure on retention. While ongoing fee compression continues to be a challenge for the industry, FactSet is among the few players that clients can choose to partner with to help consolidate spend and lower total cost of operations.

Speaker Change: On the institutional biceye, we faced a backdrop of tighter budgets and vendor consolidation that led to an organic ASV growth array that's 3% These had when specificed throughout the year and were most pronounced for asset managers where higher erosion and the large asset manager cancellation put pressure on retention

These headwinds persisted throughout the year and were most pronounced for asset managers, where higher erosion and the large asset manager cancellation put pressure on retention. While ongoing fee compression continues to be a challenge for the industry, faxate is among the few players that clients can choose to partner with to help consolidate spend and lower total cost of operations. For partnerships and CGS, organic ASV growth was 6%. Softness from partnerships was offset by continued strong performance from CGS. In the fourth quarter, new business and renewal expansions added to growth, while a lack of large deals and a significant cancellation were headwinds. As we transition the fiscal 2025, we continue to execute against the strategic multi-year investment plan we outlined last quarter.

Speaker Change: While ongoing fee compression continues to be a challenge for the industry, facts that is among the few players that clients can choose to partner with to help consolidate spend and lower total cost of operations.

For partnerships and CGS, organic ASV growth was 6%. Softness from partnerships was offset by continued strong performance from CGS. In the fourth quarter, new business and renewal expansions added to growth, while a lack of large deals and a significant cancellation were headwinds. As we transition the fiscal 2025, we continue to execute against the strategic multi-year investment plan we outlined last quarter.

Speaker Change: for partnerships and CGS, organic ASV growth to 6% softness from partnerships was offset by continued strong performance from CGS.

Speaker Change: In the fourth quarter, new business and renewal expansions added to growth while a lack of large deals in a significant cancellation were headwinds.

As we transition the fiscal 2025, we continue to execute against the strategic multi-year investment plan we outlined last quarter. There are three main pillars driving our focus.

Speaker Change: As we transition to fiscal 2025, we continue to execute against this strategic multi-year investment plan we outlined last quarter. There are three main pillars for having our focus.

Phil Snow: There are three main pillars driving our focus. First, the continued data expansion to finish what we started. Over the past several years, we have executed the largest content expansion in FactSet's history, including deep sector private markets in real time. These initiatives have added to the growing universe of proprietary connected data on our platform, which increasingly differentiates FactSet from our competition. Additionally, these data investments are not only helping us win on renewals, but also driving our success in many of our competitors' displacements. The focus of our targeted investments in the upcoming year will be on bringing these offerings to maturity.

There are three main pillars driving our focus.

First, the continued data expansion to finish what we started. Over the past several years, we have executed the largest content expansion in FactSet's history, including deep sector private markets in real time. These initiatives have added to the growing universe of proprietary connected data on our platform, which increasingly differentiates FactSet from our competition. Additionally, these data investments are not only helping us win on renewals, but also driving our success in many of our competitors' displacements. The focus of our targeted investments in the upcoming year will be on bringing these offerings to maturity.

Speaker Change: First, the continued data expansion to finish what we started.

Speaker Change: Over the past several years, we have executed the largest content expansion in fact that history, including deep sector, private markets and real-time. These initiatives have added to the growing universe of proprietary connected data on our platform, which increasingly differentiates fact that from our competition.

Additionally, these data investments are not only helping us win on renewals, but also driving our success in many of our competitors' displacements. The focus of our targeted investments in the upcoming year will be on bringing these offerings to maturity.

Speaker Change: Additionally, these state investments are not only helping us win on renewals, but also driving out success in many of our competitors' displacements.

Speaker Change: The focus of our targeted investments in the upcoming year will be on bringing these offerings to maturity.

Phil Snow: Secondly, embed FactSet deeper into client workflows. Across each of the phone types we serve, there is continued runway for us to streamline and simplify our client workflows. For the institutional buy side, we are prioritizing investment in the front office where there is substantial opportunity to leverage our strongholds in portfolio performance, analytics, and risk to deliver differentiated value. With over 5.5 million institutional portfolios, representing nearly $30 trillion of AOM flowing through our middle-office systems each night, FactSet is in a privileged position to connect this holding data with the portfolio workflows of front office users.

Speaker Change: Secondly, embed facts that deeper into client workflows. Across each of the phone types we serve, there is continued runway for us to streamline and simplify our client's workflows.

Speaker Change: For the institutional bifide, we are prioritizing investment in the front office where there is substantial opportunity to leverage us from holds in portfolio performance analytics and risk.

Speaker Change: to deliver differentiated value. With over five and a half million institutional portfolios, representing nearly $30 trillion of AOM, flowing through our middle office systems each night, facts that is in a privileged position to connect this holding stator with the portfolio workflows of front office users.

Phil Snow: In wealth management, we aim to capture further market share by building on facts that's growing presence on advisor desktops to expand into adjacent workflows such as prospecting and digital reporting. And finally, for dealmakers, we continue to accelerate engagement with our banking clients to bring next generation automation to their research, financial modeling, and pitch creation workflows. In addition to optimizing workflows to boost productivity for junior bankers, among whom FactSet has a strong and loyal following, we are also investing to expand on our technology-driven differentiation, the senior professionals.

In wealth management, we aim to capture further market share by building on facts that's growing presence on advisor desktops to expand into adjacent workflows such as prospecting and digital reporting. And finally, for dealmakers, we continue to accelerate engagement with our banking clients to bring next generation automation to their research, financial modeling, and pitch creation workflows.

Speaker Change: In wealth management, we aim to capture further market share by building on facts that's growing presence on advisory desktops to expand into adjacent workflows, such as prospecting and digital reporting.

Speaker Change: and finally for deal makers we continue to accelerate engagement with our banking clients to bring next generation automation to their research, financial modeling and pitch creation workflows.

In addition to optimizing workflows to boost productivity for junior bankers, among whom FactSet has a strong and loyal following, we are also investing to expand on our technology-driven differentiation with senior professionals.

Speaker Change: In addition to optimizing workflows to boost productivity for junior bankers, among whom backset has a strong and loyal following, we are also investing to expand on our technology driven differentiation for senior professionals.

Phil Snow: Third pillar is accelerating innovation through generative AI. A fundamental element of our strategy is executing on our AI roadmap. Since announcing FactSet Mercury and our AI blueprint late last year, we have focused on integrating generative AI directly into our client workflows and enhancing their overall FactSet experience. There are early signs that FactSet's differentiated open ecosystem approach to generi is resonating, and our investments in this area are already paying off. Earlier this year, we launched multiple new generi-powered solutions, including portfolio commentary, transcript assistance, and conversational API powered by Mercury, and we are seeing meaningful usage of each by clients, which is starting to drive incremental ASV and improve retention.

The third pillar is accelerating innovation through Generative AI. A fundamental element of our strategy is executing on our AI roadmap. Since announcing FactSet Mercury, and our AI Blueprint late last year, we have focused on integrating Generative AI directly into our client workflows and enhancing their overall FactSet experience.

Speaker Change: Third pillar is accelerating innovation through generative AI.

Speaker Change: A fundamental element of our strategy is executing on our AI roadmap. Since announcing Facts at Mercury and our AI blueprint late last year, we have focused on integrating generative AI directly into our client's workloads and enhancing their overall Facts at experience.

There are early signs that FactSet's differentiated open ecosystem approach to Gen AI is resonating, and our investments in this area are already paying off. Earlier this year, we launched multiple new Gen AI-powered solutions, including portfolio commentary, transcript assistance, and conversational API powered by Mercury, and we are seeing meaningful usage of each by clients, which is starting to drive incremental ASV and improved retention.

Speaker Change: There are early signs that facts that's differentiated open ecosystem approach to Gen AI is resonating and our investments in this area are already paying off.

Speaker Change: Earlier this year, we launched multiple new Jenny iPoward Solutions, including Portfolio CommonSerie, transcript Assistant and conversational API powered by Mercury, and we are seeing meaningful usage of each by clients, which is starting to drive incremental ASV and improve retention.

Phil Snow: I look forward to sharing more on our Gen AI progress that I recently announced Investor Day on November 14th, including a number of exciting new AI products available in beta release through FactSet Explorer, our product preview program, which has now expanded to over 50 clients across banking, buy side, and wealth. In addition to our own efforts, we are enabling third-party developers and technologists to build their own proprietary workflows on top of FactSet's data and technology. Through our AI partner program and generi data packages, we are providing programmatic access to our curated content and incubating an ecosystem of Fintech funds who need data to fuel their solutions.

I look forward to sharing more on our Gen AI progress that I recently announced Investor Day on November 14th, including a number of exciting new AI products available in beta release through FactSet Explorer, our product preview program, which has now expanded to over 50 clients across banking, buy side, and wealth.

Speaker Change: I look forward to sharing more on our Gen AI progress that I recently announced investigate on November 14, including a number of exciting new AI products available in beta release through faxed explorer, our product preview program, which has now expanded to over 50 clients across banking, biceite, and well.

In addition to our own efforts, we are enabling third-party developers and technologists to build their own proprietary workflows on top of FactSet's data and technology. Through our AI partner program and Gen AI data packages, we are providing programmatic access to our curated content and incubating an ecosystem of FinTech firms who need data to fuel their solutions.

Speaker Change: In addition to our own efforts, we are enabling third-party developers and technologists to build their own proprietary workflows on top of thanks to data and technology.

Speaker Change: Through our AI partner program and Gena, AI data packages, we are providing programmatic access to our curated content and incubating an ecosystem of thin tech firms who need data to fuel their solutions.

Phil Snow: In summary, I'm pleased with how our team closed out the year in a challenging market environment. In the face of industry headwinds, facts that continue to be a trusted partner that clients can depend on to reduce their total cost of ownership. With our open platform, flexible approach and history of innovation, we see tremendous opportunity in helping clients modernize away from incumbent processes to get out of legacy technology and data debt. We are well placed to meet the demand with our broad enterprise offering across data, workflow solutions, and services. We are guiding to organic ASV growth of 5% at the midpoint for the upcoming fiscal year, balancing a more muted outlook in the first half of the year with improvement in the second half.

In summary, I'm pleased with how our team closed out the year in a challenging market environment. In the face of industry headwinds, FactSet that continue to be a trusted partner that clients can depend on to reduce their total cost of ownership. With our open platform, flexible approach and history of innovation, we see tremendous opportunity in helping clients modernize away from incumbent processes to get out of legacy technology and data debt. We are well placed to meet the demand with our broad enterprise offering across data, workflow solutions, and services. We are guiding to organic ASV growth of 5% at the midpoint for the upcoming fiscal year, balancing a more muted outlook in the first half of the year with improvement in the second half.

Speaker Change: In summary, I'm pleased with how our team closed out the year in a challenging market environment.

Speaker Change: In the face of industry headwinds facts that continues to be a trusted partner that clients can depend on to reduce their total cost of ownership.

With our open platform, flexible approach and history of innovation, we see tremendous opportunity in helping clients modernize away from incumbent processes to get out of legacy technology and data debt. We are well placed to meet the demand with our broad enterprise offering across data, workflow solutions, and services. We are guiding to organic ASV growth of 5% at the midpoint for the upcoming fiscal year, balancing a more muted outlook in the first half of the year with improvement in the second half.

Speaker Change: With our open platform flexible approach and history of innovation, we seek tremendous opportunity in helping clients modernize away from incumbent processes to get out of legacy technology and data desk. We are well placed to meet this demand with our broad enterprise offering across data, workflow solutions and services.

Speaker Change: We are guiding to organic ASV growth of 5% at the midpoint for the upcoming fiscal year, balancing a more muted outlook in the first half of the year with improvements in the second half.

Phil Snow: We're encouraged by the nascent market recovery and our solid execution this past quarter. This is positive momentum to build on, and I'm excited about our opportunity ahead. Over our 40-plus year history, FactSet has delivered a consistent track record of sustainable long-term growth. We remain committed to expense discipline and deploying capital responsibly to balance the trade-off between reinvesting to accelerate growth and expanding margins.

Speaker Change: We're encouraged by the nascent market recovery and our solid execution this past quarter. This is Positive Events and I'm excited about our opportunity ahead. Over our 40-plus year history, Facts have his delivered a consistent track record of sustainable long-term growth.

Phil Snow: Over our 40-plus year history, FactSet has delivered a consistent track record of sustainable long-term growth. We remain committed to expense discipline and deploying capital responsibly to balance the trade-off between reinvesting to accelerate growth and expanding margins.

Speaker Change: We remain committed to expense discipline and deploying capital responsibly to balance the trade between reinvesting to accelerate growth and expanding margins.

Helen Shan: I will now turn it over to Helen to discuss our fourth quarter and full year performance in more detail and take you through our fiscal 2025 guidance. Thank you, Phil, and hello to everyone. As highlighted in this morning's press release, the fourth quarter proved to be our highest in terms of ASV growth. In the fourth quarter, we added 53.5 million of organic ASV in line with last year's results, rigging our annual total to 104.4 million dollars, slightly above our June guidance midpoint. This result is a 4.8% year-over-year increase in organic ASV plus Professional Services. In fiscal 2024, we grew revenue 5.7% on our organic basis, extending our record to 44 consecutive years of top-line growth and showcasing our resilience during periods of market volatility.

I will now turn it over to Helen to discuss our fourth quarter and full year performance in more detail and take you through our fiscal 2025 guidance.

Helen: I will now turn it over to Helen to discuss our fourth quarter and full year of performance in more detail and take you through our fiscal 2025 guidance.

Thank you, Phil, and hello to everyone. As highlighted in this morning's press release, the fourth quarter proved to be our highest in terms of ASV growth. In the fourth quarter, we added 53.5 million of organic ASV in line with last year's results, rigging our annual total to 104.4 million dollars, slightly above our June guidance midpoint. This result is a 4.8% year-over-year increase in organic ASV plus Professional Services. In fiscal 2024, we grew revenue 5.7% on our organic basis, extending our record to 44 consecutive years of top-line growth and showcasing our resilience during periods of market volatility.

Helen Shan: Thank you, Phil, and hello to everyone. As highlighted in this morning's press release, the fourth quarter proved to be our highest in terms of ASV growth.

Helen: Thank you, Phil, and hello to everyone!

Helen: As highlighted in this morning's press release, the fourth quarter proved to be our highest in terms of ASV growth.

In the fourth quarter, we added 53.5 million of organic ASV in line with last year's results, bringing our annual total to $104.4 million, slightly above our June guidance midpoint. This result is a 4.8% year-over-year increase in organic ASV + Professional Services. In fiscal 2024, we grew revenue 5.7% on our organic basis, extending our record to 44 consecutive years of top-line growth and showcasing our resilience during periods of market volatility.

Helen: In the fourth quarter, we added 53.5 million of organic air save, in line with last year's results, rigging our annual total to $144 million, slightly above our June guidance bid point.

Helen: This results is a 4.8% year-over-year increase in organic gives the plus professional services.

In fiscal 2024, we grew revenue 5.7% on our organic basis, extending our record to 44 consecutive years of top-line growth and showcasing our resilience during periods of market volatility. We improved adjusted margins and EPS, exceeding the top end of our most recent guidance, though GAAP margins and EPS were affected by a one-time item, which I will address later.

Helen: In fiscal 2024, we grew revenue 5.7% on an organic basis, extending our record to 44 consecutive years of top-line growth and showcasing our resilience during periods of market volatility.

Helen Shan: We improved adjusted margins and EPS, exceeding the top end of our most recent guidance, though gap margins and EPS were affected by a one-time item, which I will address later.

Helen: We improved adjusted margins and EPS exceeding the top end of our most recent guidance, though gap margins and EPS were affected by a one-time item which I will address later.

Helen Shan: First, our quarterly results. As we noted at the beginning of the call, reconciliation of our adjusted metrics to comparable GAAP figures is at the end of our press release. GAAP revenues increased 5% to $562 million driven by sales and wealth, banking, asset managers, and asset owners. Organic revenues, excluding foreign exchange movements and any acquisitions and dispositions over the past 12 months, increased 5% to 563 million. For our geographic segments, organic revenues grew by 6% in the Americas, 3% in AMIA, and 6% in Asia Pacific. For the fourth quarter, gap operating expenses increased 3% year-over-year to 434 million, with lower compensation expenses primarily offset by a one-time 54 million dollar charge related to a Massachusetts sales tax dispute, which we have disclosed in previous filings.

First, our quarterly results. As we noted at the beginning of the call, reconciliation of our adjusted metrics to comparable GAAP figures is at the end of our press release. GAAP revenues increased 5% to $562 million driven by sales and wealth, banking, asset managers, and asset owners. Organic revenues, excluding foreign exchange movements and any acquisitions and dispositions over the past 12 months, increased 5% to $563 million. For our geographic segments, organic revenues grew by 6% in the Americas, 3% in EMEA, and 6% in Asia Pacific.

Helen: First, our quarterly results. As we noted at the beginning of the call, reconciliation of our adjusted metrics to comparable gap figures is at the end of our press release.

Helen: Cap revenues increased 5% to $562 million, driven by sales and wealth banking, asset managers and asset owners.

Organic revenues, excluding foreign exchange movements and any acquisitions and dispositions over the past 12 months, increased 5% to $563 million. For our geographic segments, organic revenues grew by 6% in the Americas, 3% in EMEA, and 6% in Asia Pacific. For the fourth quarter, gap operating expenses increased 3% year-over-year to 434 million, with lower compensation expenses primarily offset by a one-time 54 million dollar charge related to a Massachusetts sales tax dispute, which we have disclosed in previous filings.

Helen: Organic revenues, excluding foreign exchange movements and any acquisitions and dispositions over the past 12 months, increased 5% to 563 million.

Helen: For our geographic segments, organic revenues grew by 6% in the Americas, 3% in the Mia and 6% in Asia Pacific.

For the fourth quarter, GAAP operating expenses increased 3% year-over-year to $434 million, with lower compensation expenses primarily offset by a one-time $54 million charge related to a Massachusetts sales tax dispute, which we have disclosed in previous filings. We do not anticipate taking additional material charges with respect to this matter. On an adjusted basis, operating expenses grew 1%. Looking at each of our four major cost categories in turn, technology costs are the main expense driver, increased 20% year-over-year in the fourth quarter, mainly due to higher amortization of internal use software and increased investment in Generative AI. For the year, technology cost was about 9% of revenue.

Helen: For the fourth quarter, gap operating expenses increased 3% year over year to 434 million.

Helen: With lower compensation expenses primarily offset by a one-time 54 million dollar charge related to a Massachusetts sales tax dispute, which we have disclosed in previous filings. We do not anticipate taking additional material charges with respect to this matter.

Helen Shan: We do not anticipate taking additional material charges with respect to this matter. On an adjusted basis, operating expenses grew 1%. Looking at each of our four major cost categories in turn, technology costs are the main expense driver, increased 20% year-over-year in the fourth quarter, mainly due to higher amortization of internal use software and increased investment in Generative AI. For the year, technology cost was about 9% of revenue. Conversely, employee expense decreased by 7% year over year in the fourth quarter, driven by lower compensation expenses due to earlier cost reduction efforts and a lower bonus accrual.

We do not anticipate taking additional material charges with respect to this matter. On an adjusted basis, operating expenses grew 1%. Looking at each of our four major cost categories in turn, technology costs are the main expense driver, increased 20% year-over-year in the fourth quarter, mainly due to higher amortization of internal use software and increased investment in Generative AI. For the year, technology cost was about 9% of revenue.

Looking at each of our four major cost categories in turn, technology costs are the main expense driver, increased 20% year-over-year in the fourth quarter, mainly due to higher amortization of internal use software and increased investment in Generative AI. For the year, technology cost was about 9% of revenue.

Helen: On an adjusted basis, operating expenses grew 1%.

Helen: Looking at each of our four major cost categories in turn.

Helen: Technology Costs are main expense driver, increased 20% year over year in the fourth quarter, mainly due to higher amortization of internal use software and increase investment in generative AI. For the year, technology cost was about 9% of revenue.

Conversely, employee expense decreased by 7% year-over-year in the fourth quarter, driven by lower compensation expenses due to earlier cost reduction efforts and a lower bonus accrual. For the year, our people expense was 39% of revenue, down 300 basis points from the prior year. We ended the year with a bonus pool of $86 million, 13% lower than last year. And as a reminder, 69% of our employees are located in our Centers of Excellence.

Helen: Conversely, employee expense decreased by 7% year over year in the fourth quarter, driven by lower compensation expenses due to earlier cost reduction efforts and a lower bonus to cruel.

Helen Shan: For the year, our people expense was 39% of revenue, down 300 basis points from the prior year. We ended the year with a bonus pool of $86 million, 13% lower than last year. And as a reminder, 69% of our employees are located in our Centers of Excellence. Third-party content costs rose by 15% year over year in the quarter due to changes in the timing of variable fees and remained at 5% of revenues. Real estate and related expenses decreased 9% year over year in the quarter due to office space optimization. For the year, these expenses declined to 3% of revenues, 50 basis points lower than the prior year.

For the year, our people expense was 39% of revenue, down 300 basis points from the prior year. We ended the year with a bonus pool of $86 million, 13% lower than last year. And as a reminder, 69% of our employees are located in our Centers of Excellence.

Helen: For the year, our people expense was 39% of revenue, down 300 basis points from the prior year.

Helen: We ended the year with a bonus pool of 86 million dollars, 13% lower than last year And as a reminder, 69% of our employees are located in our centers of excellence.

Third-party content costs rose by 15% year-over-year in the quarter due to changes in the timing of variable fees and remained at 5% of revenues. Real estate and related expenses decreased 9% year-over-year in the quarter due to office space optimization. For the year, these expenses declined to 3% of revenues, 50 basis points lower than the prior year.

Helen: Third party content costs rose by 15% year over year in the quarter due to changes in the timing of variable fees and remaining at 5% of revenues.

Helen: Real Estate and Related Expenses decreased 9% year over year in the quarter due to office space optimization. For the year, these expenses declined to 3% of revenues, 50 basis points lower than the prior year.

Helen Shan: Our deliberate expense management is positioning FactSet for future growth by allowing us to self-fund additional investments in technology and strategic initiatives in fiscal year 2025. As compared to the previous year, Q4 GAAP operating margin increased by approximately 110 basis points to 22.7% from reduced employee compensation costs and revenue growth, offset partly by a Massachusetts sales tax charge. Adjusted operating margin improved by 240 basis points to 35.8% from lower bonus accrual and salaries, partially offset by higher technology costs. A detailed expense walk from revenue to adjusted operating income is in the appendix of today's earnings presentation.

Our deliberate expense management is positioning FactSet for future growth by allowing us to self-fund additional investments in technology and strategic initiatives in fiscal year 2025. As compared to the previous year, Q4 GAAP operating margin increased by approximately 110 basis points to 22.7% from reduced employee compensation costs and revenue growth, offset partly by a Massachusetts sales tax charge.

Helen: Our deliberate expense management is positioning facts that perfuture growth by allowing us to self-fund additional investments in technology and strategic initiatives in fiscal year 2025.

Helen: As compared to the previous year, Q4 Gap operating margin increased by approximately 110 basis points to 22.7% from reduced employee compensation costs and revenue growth offset partly by a Massachusetts sales tax charge.

Adjusted operating margin improved by 240 basis points to 35.8% from lower bonus accrual and salaries, partially offset by higher technology costs. A detailed expense walk from revenue to adjusted operating income is in the appendix of today's earnings presentation.

Helen: Adjusted operating margin improved by 240 basis points to 35.8% from lower bonus accrual and salaries partially offset by higher technology costs.

Helen: A detailed expense walk from revenue to adjusted operating income is in the appendix of today's earnings presentation.

Helen Shan: Cost of services as a percentage of revenue declined 330 basis points year-over-year on a GAAP basis primarily due to lower compensation expense, partially offset by increased intangible amortization. Adjusted cost of services was lower by approximately 40 basis points. And in the fourth quarter, SG&A as a percentage of revenue was 620 basis points higher year-over-year on a GAAP basis, primarily due to a $54 million Massachusetts sales tax charge. Adjusted SG&A was approximately 200 basis points lower, primarily due to lower compensation expense. Turning to taxes, our effective tax rate for the fourth quarter was 23.6%, down from approximately 39% in the fourth quarter of fiscal 2023.

Cost of services as a percentage of revenue declined 330 basis points year-over-year on a GAAP basis primarily due to lower compensation expense, partially offset by increased intangible amortization. Adjusted cost of services was lower by approximately 40 basis points. And in the fourth quarter, SG&A as a percentage of revenue was 620 basis points higher year-over-year on a GAAP basis, primarily due to a $54 million Massachusetts sales tax charge. Adjusted SG&A was approximately 200 basis points lower, primarily due to lower compensation expense.

Helen: Costs the services as a percentage of revenue declined 330 basis points year over year on a gap basis, primarily due to lower compensation expense, partially offset by increased intangible amortization. Adjusted cost of services was lower by approximately 40 basis points.

And in the fourth quarter, SG&A as a percentage of revenue was 620 basis points higher year-over-year on a GAAP basis, primarily due to a $54 million Massachusetts sales tax charge. Adjusted SG&A was approximately 200 basis points lower, primarily due to lower compensation expense. Turning to taxes, our effective tax rate for the fourth quarter was 23.6%, down from approximately 39% in the fourth quarter of fiscal 2023.

Helen: and in the fourth quarter, SGNA as a percentage of revenue was 620 basis points higher year over year on a gap basis.

Helen: Premierally due to a $54 million Massachusetts sales tax charge. Adjusted SG&A was approximately 200 basis points lower, Premierally due to lower compensation expense.

Turning to taxes, our effective tax rate for the fourth quarter was 23.6%, down from approximately 39% in the fourth quarter of fiscal 2023. This decrease was primarily due to the inclusion of a prior year tax adjustment.

Helen: Turning to taxes, our effective tax rate for the fourth quarter was 23.6%. Down from approximately 39% in the fourth quarter of fiscal 2023.

Helen Shan: This decrease was primarily due to the inclusion of a prior year tax adjustment. Our gap EPS increased 38.1% to $2.32 this quarter versus $1.68 in the prior year period. This was due to a decrease in employee compensation costs and an increase in revenues, partially offset by charges related to a Massachusetts sales tax dispute. Adjusted EPS rose by 23.8% to $3.74 from revenue growth, margin expansion, and a lower tax rate. Free cash flow, which we defined as cash generated from operations less capital spending, was $137 million for the quarter, a decrease of 12% over the same period last year.

This decrease was primarily due to the inclusion of a prior year tax adjustment.

Helen: This decrease was primarily due to the inclusion of a prior year tax adjustment.

Our GAAP EPS increased 38.1% to $2.32 this quarter versus $1.68 in the prior year period. This was due to a decrease in employee compensation costs and an increase in revenues, partially offset by charges related to a Massachusetts sales tax dispute. Adjusted EPS rose by 23.8% to $3.74 from revenue growth, margin expansion, and a lower tax rate. Free cash flow, which we defined as cash generated from operations less capital spending, was $137 million for the quarter, a decrease of 12% over the same period last year.

Helen: Our GAPPS increased 38.1% to $2.32 this quarter versus $1.68 in the prior year period.

Helen: This was due to a decrease in employee compensation costs and increase in revenues, partially offset by charges related to a Massachusetts sales tax dispute.

Helen: adjusted EPS rose by 23.8% to $3.74 from revenue growth, margin expansion and a lower tax rate.

Free cash flow, which we defined as cash generated from operations less capital spending, was $137 million for the quarter, a decrease of 12% over the same period last year. The drivers are lower net cash from operating activities and increase capital expenditures. Fiscal 2024 free cash flow was 615 million and increased a 5% over the prior year.

Speaker Change: Free cash flow, which redefined as cash generated from operations of less capital spending, was 137 million for the quarter, a decrease of 12% over the same period last year. The drivers are lower net cash from operating activities and increased capital expenditures.

Helen Shan: The drivers are lower net cash from operating activities and increase capital expenditures. Fiscal 2024 free cash flow was 615 million and increased a 5% over the prior year. The man for our solutions remained steady, with a fourth quarter ASV retention rate of over 95% and the client retention at 90%. Through the fiscal year, we expanded our client base to over 80,200, adding 296 new logos. Concurrently, our user count increased 14%, adding over 26,000 to our total driven primarily by wealth and deal makers. On capital, we turned for the quarter. We repurchased 153,650 shares for approximately $63 million at an average share price of $412.09.

The drivers are lower net cash from operating activities and increase capital expenditures. Fiscal 2024 free cash flow was 615 million and increased a 5% over the prior year.

Speaker Change: fiscal 2024 free cash flow was 615 million and increased a 5% over the prior year.

Demand for our solutions remained steady, with a fourth quarter ASV retention rate of over 95% and the client retention at 90%. Through the fiscal year, we expanded our client base to over 8,200, adding 296 new logos. Concurrently, our user count increased 14%, adding over 26,000 to our total driven primarily by wealth and deal-makers. On capital returned for the quarter. We repurchased 153,650 shares for approximately $63 million at an average share price of $412.09.

Speaker Change: The man for our solutions remains steady, with a fourth quarter ASV retention rate of over 95% and a client retention at 90%. Through the fiscal year, we expanded our client base to over 80 to 100, adding 296 new logos.

Speaker Change: Concurrently, our user count includes 14% adding over 26,000 to our total driven primarily by wealth and deal makers.

On capital returned for the quarter. We repurchased 153,650 shares for approximately $63 million at an average share price of $412.09. For fiscal 2024, we bought back a total of 537,800 shares for approximately $235 million at an average price of $437.40. On September 17th, 2024, the Board of Directors of FactSet approved a new share repurchase authorization for up to $300 million. We paid a quarterly dividend of $1.04 per share today to holders of record as of August 30th, 2024.

Speaker Change: On Capitol we turned for the quarter. We repurchased 153,650 shares for approximately $63 million. At an average share price of $412.9.

Helen Shan: For fiscal 2024, we bought back a total of 537,800 shares for approximately $235 million at an average price of $437.40.

Speaker Change: For Fiscal 2024, we brought back a total of 537,800 shares for approximately $235 million. At an average price of $437.40.

Helen Shan: On September 17, 2024, the Board of Directors of FactSet approved a new share repurchase authorization for up to $300 million. We paid a quarterly dividend of $1.04 per share today to holders of record as of August 30, 2024. As a reminder, we increased our dividend by 6% in the third quarter, marking the 25th consecutive year of dividend increases. We remained committed to returning long-term value to our shareholders. Over the last 12 months, we have returned $386 million to our shareholders. In the fourth quarter, we paid down 62.5 million of our term loan, reducing our gross leverage to 1.6 times.

On September 17th, 2024, the Board of Directors of FactSet approved a new share repurchase authorization for up to $300 million. We paid a quarterly dividend of $1.04 per share today to holders of record as of August 30th, 2024.

Speaker Change: on September 17, 2024, the Board of Directors of Facts that approved a new share-reported authorization for up to $300 million.

Speaker Change: We've paid a quarterly dividend of a dollar for a per share today to hold a record as of August 30, 2024. As a reminder, we increase our dividend by 6% in the third quarter, marking the 25th consecutive year of dividend increases.

As a reminder, we increased our dividend by 6% in the third quarter, marking the 25th consecutive year of dividend increases. We remained committed to returning long-term value to our shareholders. Over the last 12 months, we have returned $386 million to our shareholders. In the fourth quarter, we paid down $62.5 million of our term loan, reducing our gross leverage to 1.6x.

Speaker Change: We remain committed to returning long-term value to our shareholders. Over the last 12 months, we have returned $386 million to our shareholders.

In the fourth quarter, we paid down $62.5 million of our term loan, reducing our gross leverage to 1.6x. This is consistent with our plan to repay the term loan in full by the second quarter of fiscal 2025.

Speaker Change: In the fourth quarter, we pay down 62.5 million of our term loan, reducing our gross leverage to 1.6 times.

Helen Shan: This is consistent with our plan to repay the term loan in full by the second quarter of fiscal 2025.

Speaker Change: This is consistent with our plan to repay the term loan in full by the second quarter of fiscal 2025.

Helen Shan: And finally, turning to our guidance for fiscal 2025. As Phil mentioned earlier, we anticipate growth accelerating as the year progresses. The next six months are lining with current conditions and the balance of the fiscal year improving for more favorable financial markets, execution on several long-standing large opportunities, and new demand for our Gen AI products and enterprise solutions. Our views are supported by a first half sales pipeline that is comparable to last year. We foresee sustained momentum in wealth, subdued activity in banking, and modest improvement on the buy side. While we anticipate continued pressure on client's budgets, we believe the overall pace of erosion will begin to moderate.

And finally, turning to our guidance for fiscal 2025. As Phil mentioned earlier, we anticipate growth accelerating as the year progresses. The next six months are lining with current conditions and the balance of the fiscal year improving for more favorable financial markets, execution on several long-standing large opportunities, and new demand for our Gen AI products and enterprise solutions.

Speaker Change: and finally turning to a guidance for fiscal 2025.

Speaker Change: As Phil mentioned earlier, we anticipate growth accelerating as the year progresses.

Phil: The next six months, aligning with current conditions and the balance of the fiscal year, improving for more favorable financial markets, execution on several long-standing large opportunities, and new demand for our Gen AI products and enterprise solutions.

Our views are supported by a first half sales pipeline that is comparable to last year. We foresee sustained momentum in wealth, subdued activity in banking, and modest improvement on the buy side. While we anticipate continued pressure on client's budgets, we believe the overall pace of erosion will begin to moderate.

Speaker Change: Our views are supported by a first half sales pipeline that is comparable to last year.

Speaker Change: We foresee sustained momentum and wealth, subdued activity in banking, and modest improvement on the buy side. While we anticipate continued pressure on client budgets, we believe the overall pace of erosion will begin to moderate.

Helen Shan: Given these expectations, we are guiding to incremental organic ASV growth of $90 to $140 million, reflecting a 5% growth rate at the midpoint of our range. We expect adjusted operating margin of 36 to 37%. This range includes higher technology and content costs, the reset of the bonus pool, and targeted investments in banking and buy-side workflows, offset by lower controllable costs, such as professional services. We are committed to maintaining expense discipline, while also investing strategically to increase revenue and ensure earnings growth. Finally, adjusted EPS is expected to be in the range of $16.80 to $17.40. With respect to additional modeling assumptions for fiscal 2025, we expect interest expense to be between $44 to $48 million, and we expect capital expenditures to be in the range of $95 to $105 million. We remain positive about growth opportunities, particularly in wealth and buy-side solutions, by executing our generative AI roadmap, expanding connected content, and integrating facts that further into our clients' workflows.

Given these expectations, we are guiding to incremental organic ASV growth of $90 million to $140 million, reflecting a 5% growth rate at the midpoint of our range. We expect adjusted operating margin of 36% to 37%. This range includes higher technology and content costs, the reset of the bonus pool, and targeted investments in banking and buy-side workflows, offset by lower controllable costs, such as professional services. We are committed to maintaining expense discipline, while also investing strategically to increase revenue and ensure earnings growth. Finally, adjusted EPS is expected to be in the range of $16.80 to $17.40.

Speaker Change: Given these expectations, we are guiding to incremental organic ASV growth of 90 to 140 million dollars, reflecting a 5% growth rate at the midpoint of our range.

Speaker Change: We expect adjusted operating margin of 36 to 37%.

Speaker Change: This range includes higher technology and content costs, the reset of the bonus pool and targeted investments in banking and by-side workflows, offset by lower control of the cost such as professional services.

We are committed to maintaining expense discipline, while also investing strategically to increase revenue and ensure earnings growth. Finally, adjusted EPS is expected to be in the range of $16.80 to $17.40. With respect to additional modeling assumptions for fiscal 2025, we expect interest expense to be between $44 to $48 million, and we expect capital expenditures to be in the range of $95 to $105 million. We remain positive about growth opportunities, particularly in wealth and buy-side solutions, by executing our generative AI roadmap, expanding connected content, and integrating facts that further into our clients' workflows.

Speaker Change: We are committed to maintaining expense discipline, while also investing strategically to increase revenue and ensure earnings growth.

Speaker Change: Finally, adjusted EPS is expected to be in the range of $16.80 to $17.40.

With respect to additional modeling assumptions for fiscal 2025, we expect interest expense to be between $44 million to $48 million, and we expect capital expenditures to be in the range of $95 million to $105 million. We remain positive about growth opportunities, particularly in wealth and buy-side solutions, by executing our Generative AI roadmap, expanding connected content, and integrating FactSet further into our clients' workflows. We aim to increase market share and enhance client retention. We are committed to supporting our teams with the tools and knowledge they need to ensure we remain the partner of choice.

Speaker Change: With respect to additional modeling assumptions for fiscal 2025, we expect interest expense to be between 44 to 48 million dollars and we expect capital expenditures to be in the range of 95 to 105 million dollars.

Speaker Change: We remain positive about growth opportunities, particularly in wealth and by-side solutions.

Speaker Change: By executing our generative AI roadmap, expanding, connected content and integrating facts that further into our clients' workflows, we aim to increase market share and enhance client retention.

Helen Shan: We aim to increase market share and enhance client retention. We are committed to supporting our teams with the tools and knowledge they need to ensure we remain the partner of choice.

Speaker Change: We are committed to supporting our teams with the tools and knowledge they need to ensure we remain the partner of choice.

Unknown Executive: We are now ready for your questions. Operator?

Unknown Executive: Operator? Thank you.

Operator?

Operator: Thank you. Ladies and gentlemen, as a reminder to ask a question, please press *11 on your telephone and wait for your name to be announced. To withdraw your question, please press *11 again. We ask that you limit yourself to one question only. Our first question comes from the line of Alex Kramm with UBS. Your line is open. Look like Alex's line disconnected. We'll move on to the next question. Please stand by for our next question.

Speaker Change: We are now ready for your questions. Operator?

Unknown Executive: Ladies and gentlemen, as a reminder to ask the question, please press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again. We ask that you limit yourself to one question only.

Speaker Change: Thank you. Ladies and gentlemen, as a reminder to ask the question, please press star 1-1 on your telephone and wait for your name to be announced.

Speaker Change: To withdraw your question, please for a start, one more and again.

Unknown Executive: Please stand by while we come out, the Q&A roster. Our first question comes from the line of Alex Kramm with UBS. Your line is open.

Speaker Change: We ask that you limit yourself to one question only.

Speaker Change: Please stand by while we compare the Q&A roster.

Alex Kramm: Our first question comes from the line of Alex Kramm with UBS. Your line is open.

Operator: Look like Alex's line is disconnected. We'll move on to the next question. Our next question comes from the line of Toni Kaplan with Morgan Stanley. Your line is open. Thank you so much.

Operator: Look like Alex's line is disconnected. We'll move on to the next question. Our next question comes from the line of Toni Kaplan with Morgan Stanley. Your line is open.

Speaker Change: Our first question comes from the line of Alex Kram with UBS, your line is open.

Unknown Executive: Look like Alex's line disconnected. We'll move on to the next question. Please stand by for our next question.

Speaker Change: Look like Alex Flind is connected, we're moving on to the next question.

Tony Kaplan: Our next question comes from the line of Tony Kaplan with Morgan Family. Your line is open. Thank you so much.

Speaker Change: Please stand by for our next question.

Toni Kaplan: Thank you so much. I think this question is for both, maybe Phil and Helen. You've had a very significant period of margin expansion since 2021. When we look forward, just given the balancing act that you mentioned of investment versus margin, should we view '25 as representative of a normal year or how should we be thinking about margins over the long-term? Thank you so much.

Speaker Change: Our next question comes from the line of Tony Kaplan with Morgan family, your line is open.

Phil Snow: I think this question is for both, maybe Phil and Helen. You've had a very significant period of margin expansion since 2021. When we look forward, just given the balancing act that you mentioned of investment versus margin, should we view 25 as representative of a normal year or how should we be thinking about margins over the long term? Thank you so much.

Tony Kaplan: Thank you so much.

Speaker Change: I think this question for both maybe Phil and Helen.

Tony Kaplan: You've had a very significant period of margin expansion since 2021, you know, when we look forward, just given the balancing act that you mentioned of investment versus margin.

Speaker Change: Should we view 25 as representatives of a normal year, or how should we be thinking about margins over the long term?

Philip Snow: Toni, I'll start on. I think, well, Helen will have quite a bit to unpack there. I say this is probably a bit of a reset year. We've obviously, expanded margin significantly. As you mentioned, I think the CUSIP acquisition, obviously, was a tailwind for us there. But we have ended up, I believe, beyond what we've set out at the previous Investor Day, which was a little over two years ago. So, we do believe we're investing well. We've had some long standing programs that are fully funded and, through our own efforts of sort of being more efficient and self-funding, we feel we're in a great position to continue to invest. But Helen, why don't you provide a little bit more detail, please?

Tony Alstad: I'm Tony Alstad and I think we'll have quite a bit to unpack there. I say this is probably a bit of a reset year. We've obviously expanded margin significantly. As you mentioned, I think that Tuesday Pack Resession obviously was a tailwind for us there. But we have ended up, I believe, beyond...

Tony Alstad: You know, we've set out at the previous event today, which was a little over two years ago, so

Tony Alstad: We do believe we're investing well, we've had some longstanding programs that are fully funded.

Speaker Change: and through our own efforts of sort of being more efficient and self-funding, we feel we're in a great position to continue to invest, but how am I when I you are.

Helen Shan: We feel we're in a great position to continue to invest, but Helen, why don't you provide a little bit more detail? Yeah, I'm happy to do that. Thanks, Tony. So, we took expense actions in 2024 to really help expand margin and what was a challenging top on environment. And, and quite frankly, as Phil said, we are higher than what we had originally aimed for in a medium-term outlook, which was 35 to 36. We've also worked to reduce spend in absolute terms and targeted areas like real estate, and we've managed down variable expenses when needed, like on incentive compensation.

We feel we're in a great position to continue to invest, but Helen, why don't you provide a little bit more detail?

Helen Shan: Yes. I'm happy to do that. Thanks, Toni. So, we took expense actions in 2024 to really help expand margin and what was a challenging top line environment. And quite frankly, as Phil said, we are higher than what we had originally aimed for in a medium-term outlook, which was 35 to 36. We've also worked to reduce spend in absolute terms and targeted areas like real estate, and we've managed down variable expenses when needed, like on incentive compensation.

Speaker Change: Provided a little bit won't he tell us? Yeah, I know happy to do that, thanks Tony. So we took expense actions in 2024 to really help expand margin and know what was a challenging top-line environment.

Speaker Change: and quite frankly, I still said we are higher than what we had originally aimed for in a medium-term outlook with a 35 to 36.

Speaker Change: We've also worked to reduce spend an absolute terms and targeted areas like real estate and we've managed down variable expenses when needed like on incentive compensation.

Helen Shan: So, I think when you think about the difference of margin between the midpoint of '25 and where we ended '24, about half of that is attributable to resetting the bonus level because it's meant to be reset for our new year. And the balance is really to help cover technology costs. And so, I would look at this as a more normalized level. Now, we are doing a fair amount of investing as well. And all of that, as I mentioned in the script, is very much self-funded, so that's already in the rate that we're giving in our guidance.

Speaker Change: So I think when you think about the difference of margin between the midpoint of 25 and where we ended 24

Speaker Change: About half of that is attributable to resetting the bonus level, because it's meant to be reset for our new year. And the balance is really to help cover technology costs. And so I would look at this as a more normalized level. Now we are doing a fair amount of investing as well.

Speaker Change: and all of that, as I mentioned in the script, is very much self-funded, so that's already in the rate that we're giving in our guidance.

Toni Kaplan: Thanks so much.

Operator: Please stand by for our next question. Our next question comes from the line of Ashish Sabadra with RBC. Your line is open.

Unknown Executive: Thank you. Please say bye for our next question.

Speaker Change: Thank you so much.

Speaker Change: You're welcome Thank you.

Ashish Sabadra: Our next question comes from the line of Ashish, Sabadra with RBC. Yalan is open. Thanks for taking my question. I wanted to follow up on the prepared remarks about improvement in the second half. Or the growth accelerating as the year progresses.

Our next question comes from the line of Ashish, Sabadra with RBC. Yalan is open.

Speaker Change: Please stay by for our next question.

Ashish Sabadra: Thanks for taking my question. I wanted to follow up on the prepared remarks about improvement in the second half, or the growth accelerating as the year progresses. Despite that second half '25 progress, the 2025 ASV guide implies no improvement compared to like 2024 despite potentially better macro with Fed cutting rates. So, I just wanted to understand what's your macro and pricing assumptions baked into the guidance? Thanks.

Speaker Change: and the next question comes from the line of Ashish Sabajray with RBC, Yelena Selpin.

Ashish Sabajray: Thanks for taking my question. I wanted to follow up on the prepared remarks about improvement in the second half or the group regarding the progressives.

Helen Shan: Despite that second half 25 progress, the 2025 AAC guide implies no improvement compared to like 2024 despite potentially better macro with Fed cutting rates. So I just wanted to understand what's your macro and pricing assumptions picked into the guidance. Thanks.

Ashish Sabajray: Despite that second half 25 progress, the 2020 25 AC guide-in-plus, no improvement compared to like 2024, despite potentially better macro with fed cutting aids. First I just wanted to understand what your macro and pricing assumptions picked into the guidance.

Phil Snow: Well, I'll start. Thanks, Ashish. Appreciate the question. We do see, out for the next few months the continuation of some of the headwinds we've experienced, this frankly, for the last two years. But we are beginning to see some green shoots. So, I think we saw a modest uptick in banking hiring in Q4. And obviously we had a lot of really great significant winds in Q4, which the team did a great job of closing. And it was very encouraging that our largest clients were really working very quickly through with us through that period, which I think is a great indicator of how much, you know, they want to work with us moving forward.

Philip Snow: Well, I'll start. Thanks, Ashish. Appreciate the question. We do see, out for the next few months the continuation of some of the headwinds we've experienced, this frankly, for the last two years. But we are beginning to see some green shoots. So, I think we saw a modest uptick in banking hiring in Q4. And obviously we had a lot of really great significant winds in Q4, which the team did a great job of closing.

Speaker Change: Well, I'll start. Thanks, Ashish. Appreciate the question. We do see, you know, out for the next few months, you know, the continuation of some of the headwinds we've experienced.

Speaker Change: Uh, that's frankly for the last two years.

Speaker Change: But we are beginning to see some green shoots, so I think we saw a muddest.

Speaker Change: Uptick in banking hiring in Q4 and obviously we had a lot of really great significant wins in Q4 which the team did a great job of closing and it was very encouraging that our largest clients were really working very quickly through with us through that period, which I think is a great...

And it was very encouraging that our largest clients were really working very quickly through it with us through that period, which I think is a great indicator of how much they want to work with us moving forward. And as you know, FactSet traditionally has been a tale of two halves, we typically have a much larger second half than first half.

Phil Snow: And as you know, facts that traditionally has been a tale of two halves, we typically have a much larger second half than first half. So I think we're. You know, we think that's sort of the best balance. We do think that once we get through the end of the calendar year, clients will have had a chance to reset that budget. And I would think, you know, most of the uncertainty that's been out there in the market will be behind us. So that's quite a bit of our thinking.

And as you know, facts that traditionally has been a tale of two halves, we typically have a much larger second half than first half.

Speaker Change: Indicator of how much, you know, they want to work with us moving forward.

Speaker Change: and as you know, facts that traditionally has been a tale of two halves, we typically have a much larger second half than first half. So I think we're...

So, we think that's sort of the best balance. We do think that once we get through the end of the calendar year, clients will have had a chance to reset that budget. And I would think most of the uncertainty that's been out there in the market will be behind us. So, that's quite a bit of our thinking. And I don't know, Goran or Helen, if you wanted to add on to that.

Speaker Change: You know, we think that's sort of the best balance. We do think that once we get through the end of the calendar year, clients will have had a chance to reset that budget and I would think, you know, most of the uncertainty that's been out there in the market will be behind us.

Helen Shan: And I don't know, go on or Helen, if you wanted to add on to that. The only thing I would add to what Phil said is that, you know, I think we have a good product pipeline. And I think we had recent product launches that will contribute to acceleration in the second half. You know, we had some sales of those products in the fourth quarter, which further, you know, proved that point. But you know, really are hoping to build a pipeline in the first half and, you know, realize, you know, sales in the in the second half.

And I don't know, go on or Helen, if you wanted to add on to that.

Speaker Change: Quite a bit of all thinking and I don't know if go on or hell in if you wanted to add on to that

Goran Skoko: The only thing I would add to what Phil said is that I think we have a good product pipeline. And I think we had recent product launches that will contribute to our acceleration in the second half. We had some sales of those products in the fourth quarter, which further proved that point. But really are hoping to build a pipeline in the first half and realize sales in the in the second half. So, we do expect a better second half in 2025 as we usually have.

hell in: The only thing I would add to what Phil said is that, you know, I think we have a...

Speaker Change: You know, good product pipeline and I think we had recent product launches that will contribute to exploration in the second half.

Speaker Change: and we had some sales of those products in the fourth quarter, which further improved that point.

Speaker Change: but in a really hoping to build a pipeline in the first half and realize in the second half. So we do expect a better second half and 245 is usually half.

Helen Shan: So we do expect a better second half in 2025 as we usually have. Thank you.

Alex Kramm: Please name bar for our next question. Our next question comes from the line of Alex Graham with UBS. If you're on the phone. All right. Seems like I press the right button this time. Hello. I guess just very quickly on the buy side, maybe you can slush out your comments a little bit more. One, you mentioned a large asset management can solve this quarter. Can you maybe give a little bit more background? It seems like an asset management. You usually have a very sticky offering and not a lot of competitive threats. So just wondering what's going on there.

Operator: Our next question comes from the line of Alex Kramm with UBS.

Speaker Change: Thank you.

Alex Kramm: All right. Seems like I press the right button this time. Hello. I guess just very quickly on the buy side, maybe you can flush out your comments a little bit more. One, you mentioned a large asset management cancel this quarter. Can you maybe give a little bit more background? It seems like in asset management, you usually have a very sticky offering and not a lot of competitive threats. So, just wondering what's going on there.

Speaker Change: Our next question comes from the line of Alex Kram with UBS, the Piano Social.

Alex Kram: All right, seems like I pressed the right button this time, hello. I guess just very quickly on the by side, maybe you can flush out your comments a little bit more. One, you mentioned a large as a management cancel this quarter, can you maybe.

Speaker Change: Give a little bit more background, it seems like an asset management usually a very sticky offering and not a lot of competitive threats. So just wondering what's going on there. And then overall the asset management environment looks like headcount, reductions, or hiring is stabilizing. So are you seeing?

Phil Snow: And then overall, the asset management environment looks like headcount reductions or hiring is stabilizing. So, are you seeing some of that already? Or is it still too early to kind of get more positive on that end market? Thank you.

Speaker Change: Some of that's already, or it's still too early to get more positive on that end market. Thank you.

Philip Snow: Thanks, Alex. So, yes, let me address the first part, which was that cancel. Yes, every now and then obviously, we're going to face a large cancel. And I think this one was probably just due to a firm needing to consolidate and being in the cost pressure. But maybe what I'll do is just give you a little bit more data than we have in the past on our top 10 versus bottom 10 winds for the year. So, if I look at our top 10 largest ASV winds for the entire fiscal year, nine of those were against competitors, and seven of them were against our top 4 competitors, which I think are well understood.

Speaker Change: So yeah, let me address the first part, which was that cancel. Yeah, every now and then obviously we're going to

Speaker Change: face a large council and I think this one was probably just due to a firm needing to consolidate and being in the cost pressure.

Speaker Change: but maybe what I'll do is just give you a little bit more data than we have in the past on.

Speaker Change: You know what, our top 10 versus bottom 10 wins for the year. So if I look at our top 10 largest ASV wins for the entire fiscal year, nine of those were against competitors and seven of them were against our top 4 competitors, which I think are well understood.

Phil Snow: And 4 of those displacements had over 700 seats added for the fact that in the bottom 10 deals, you know, 6 were lost to competitors, but only 3 of them were to our major competitors. And 4 of the top bottom 10 deals were the result of M&A or firm closures. So, I think there is consolidation and cost pressure in the industries on the buy side in particular, when they look to really stitch together the front, middle, and back office. We're going to win some, lose some on that. And this was a case where we lost. But in our top 10 deals, there was one which was the opposite where we won against the same competitor.

Speaker Change: and four of those displacements had over 700 seats added for facts that in the bottom ten deals.

Speaker Change: You know, six will last to competitors but only three of them were to our major competitors

Speaker Change: and four of the bottom, you know, the bottom ten deals with the result of M&A of closure. So I think, you know, the risk consolidation and cost pressure in the industries.

Speaker Change: on the bifide in particular when they look to really stitch together the front middle and back office. We're going to win some loose on that and this was a case where we lost.

Helen Shan: But in our top 10 deals, there was one which was the opposite where we won against the same competitor. The second party of question, anecdotally, I would say it is becoming more constructive on the by side. You know, when I meet with the C suite on the by side, it feels like, you know, there's an appetite to continue to do the transformation. But the cost pressures are there; honestly, and it's really up to us to execute against that. Yeah, and I might add a little bit to that as we think about the by side. One of the areas that we're seeing continued demand is on the managed services, which is really not; it's more of an enterprise, not a seat based type of solution we provide.

But in our top 10 deals, there was one which was the opposite where we won against the same competitor.

Speaker Change: but in our top 10 deals, there was one which was the opposite where we won against the same competitor.

The second part of your question, anecdotally, I would say it is becoming more constructive on the buy side, when I meet with the C-suite on the buy side, it feels like there's an appetite to continue to do the transformation. But the cost pressures are there; honestly, and it's really up to us to execute against that. Yeah, and I might add a little bit to that as we think about the by side. One of the areas that we're seeing continued demand is on the managed services, which is really not; it's more of an enterprise, not a seat based type of solution we provide.

Speaker Change: The second part of your question, anecdotally I would say it is becoming more constructive on the biceite, you know, when I meet with the C-suite on the biceite it feels like.

Speaker Change: You know, there's an appetite to continue to do the transformation, but the cost pressures are there honestly, and it's really up to us to execute against that.

Helen Shan: Yes, and I might add a little bit to that. As we think about the buy side. One of the areas that we're seeing continued demand is on the managed services, which it's more of an enterprise, not a seat-based type of solution we provide. So, it had some strength in '23, and we continue to see that grow again in '24. So, we would probably look to that as one of the drivers of buy side going forward.

Speaker Change: Yeah, and I might add a little bit to that.

Speaker Change: as we think about the buy side, one of the areas that we're seeing continued demand is on the managed services.

Speaker Change: which is really not, it's more of an enterprise, not a seat-based type of solution we provide. So, it had some strength in 23 and we continue to see that grow again in 24. So, we would probably look to that as one of the drivers of BICEI going forward.

Helen Shan: So it had some strength in 23, and we continue to see that grow again in 24. So we would probably look to that as one of the drivers of by side going forward.

Operator: Our next question comes from the line of Manav Patnaik with Barclays.

Unknown Executive: Thank you. What are you saying about for our next question?

Speaker Change: Thanks, guys.

Manav Patnaik: Our next question comes from the line of Monopipatnik with Barclays.

Speaker Change: Please stay inspired for our next question.

Manav Patnaik: Thank you. Good morning. I just wanted to follow-up on the strong performance in CGS that you called out in your prepared marks, Phil. I guess how fast has CUSIP been growing? I imagine with all the headlines and CDs, it's a pretty big number. So, just curious if you could give us the update on how fast it grew this year. I guess what percentage of the businesses it is and what you've assumed for '25?

Speaker Change: Now next question comes from the line of monopark technique with Berkeley, you'll eyes as well.

Speaker Change: Thank you for the morning. I just wanted to follow up on the strong performance in CGS that you call that in your prepare mark fill. I guess how fast has Cuseb been growing, I imagine with all the headlines and CDs, it's a pretty big number, so it's curious if you could.

Speaker Change: KLSD update on how fast the group this year, I guess what the sense to the businesses and what these are units for 25.

Philip Snow: Yes, thanks, Manav. So, yes, we don't break that out, but it is a significant portion of the partners business line, which we broke out, I think earlier in the slides, so that compared with FactSet's traditional partners, business, grew in aggregate at 6%. CUSIP really drove the growth. We did have a couple of partnerships that have been significant in the past, where we lost some ASV there. So, I think you can probably triangulate what happened there. The CUSIP team did a great job this year executing. And I'm really encouraged by the pace of new development there in terms of that thinking. So, I guess, maybe we can talk a bit more about that later, but that's about all we can talk about right now.

Speaker Change: Yeah, thanks man off. So yeah, we don't break that out, but it is a significant portion of the partners.

Speaker Change: Business Line, which we broke out, I think earlier in this slide, so that compared with the fact that it's traditional.

Philip Snow: CUSIP really drove the growth. We did have a couple of partnerships that have been significant in the past, where we lost some ASV there. So, I think you can probably triangulate what happened there. The CUSIP team did a great job this year executing. And I'm really encouraged by the pace of new development there in terms of that thinking. So, I guess, maybe we can talk a bit more about that later, but that's about all we can talk about right now.

Speaker Change: Pant and Business, Crew and Agrogette, 6%, QCifferly drove the growth we did have.

Speaker Change: a couple of partnerships that have been significant in the past, where...

Speaker Change: We lost the Mayus V there, so...

Speaker Change: I think you can probably try and you'll hate what happened there, the Q15 did a great job this year executing.

Speaker Change: and I'm really encouraged by the pace of new development there in terms of their thinking. So I guess maybe we can talk a bit more about that later but that's about all we can talk about right now.

Unknown Executive: So I guess, you know, maybe we can talk a bit more about that later, but that's about all we can talk about right now.

Faiza Alwy: Please say bye for our next question. Our next question comes from the line of Faiza Alwy, with Dutjebine, Gilaan. It's open. Yes, hi, good morning. Thank you. So I wanted to ask about the ASV guide for 25. You're not baking in sort of any type of acceleration, which seems, you know, prudent, but I'm curious how you would characterize that. Is it more conservatism on your end? Are you seeing sort of anything in the marketplace that leading you to believe that things won't change? And then I know you have your Investor Day coming up. So maybe give us a preview of, you know, how we should think about a more normalized ASV girl for the company.

Operator: Our next question comes from the line of Faiza Alwy, with Deutsche Bank.

Speaker Change: Thank you.

Faiza Alwy: Yes, hi, good morning. Thank you. So, I wanted to ask about the ASV guide for '25. You're not baking in sort of any type of acceleration, which seems, prudent. But I'm curious how you would characterize that. Is it more conservatism on your end? Are you seeing sort of anything in the marketplace that's leading you to believe that things won't change? And then I know you have your Investor Day coming up. So, maybe give us a preview of how we should think about a more normalized ASV growth for the company.

Speaker Change: Our next question comes from the line of phaser our way, would touch your bank, your line is open.

Speaker Change: Yes, hi, good morning, thank you. So I wanted to ask about the ESV Guide for 25.

Speaker Change: You're not baking in sort of any type of acceleration, which seems, you know, prudent But I'm curious how you would characterize that, is it more conservative on your end Are you seeing sort of anything in the marketplace that's leading you to believe that things won't change And then I know you have your investor day coming up, so maybe give us the preview of

Speaker Change: You know how we should think about a more normalized ASV growth for the company.

Helen Shan: Yes. Thanks, Faiza. So, yes, as I already mentioned, we're seeing a bit of a headwind here as we sort of finish out the year, but we're much more optimistic about the second half. So, we provided a range. I do think there's an opportunity to do better, for sure. I'm really encouraged by what we're seeing on the Generative AI front. So, that's a bit of a wild card, we're beginning to monetize that. And we have a great pipeline. So it, if that begins to come in or accumulate at a faster rate, I do think that, that would be encouraging. Someone mentioned hiring, historically, we have been very highly correlated to hiring on the buy side and the sell side.

Philip Snow: Yes. Thanks, Faiza. So, yes, as I already mentioned, we're seeing a bit of a headwind here as we sort of finish out the year, but we're much more optimistic about the second half. So, we provided a range. I do think there's an opportunity to do better, for sure. I'm really encouraged by what we're seeing on the Generative AI front.

Speaker Change: Yeah, thanks, Pfizer. So as I already mentioned, you know, we're wishing a bit of a headwind here as we sort of

Speaker Change: Finish out the year, but we're much more optimistic about the second half. So we provided a range, I do think, you know, this is an opportunity to...

So, that's a bit of a wild card, we're beginning to monetize that. And we have a great pipeline. So it, if that begins to come in or accumulate at a faster rate, I do think that, that would be encouraging. Someone mentioned hiring, historically, we have been very highly correlated to hiring on the buy side and the sell side. I think if sell side hiring goes up faster than we've anticipated--and we have been pretty conservative there on the sell side, I think that could certainly be a tailwind for us in this year.

Speaker Change: to do better for sure. I'm really encouraged by what we're seeing on the generative AI front. So that's a bit of a wild card that we're beginning to monetize that and we have a great pipeline.

Speaker Change: So, you know, if that begins to come in, or...

Speaker Change: Um, you know, accumulate at a faster rate. I do think that that that would be.

Speaker Change: Encouraging.

Speaker Change: Someone mentioned hiring, historically we have been very highly correlated to hiring on the bias side in the cell side. I think if cell side hiring goes up faster then.

Phil Snow: I think if cell side hiring goes up faster than we've anticipated, and we have been pretty conservative there on the cell side, I think that could certainly be a tailwind for us in this year. But do you remember that, you know, particularly for some of these larger deals, it's a pretty long sales cycle as we go at the enterprise level now. And I think it invested a, you know, we'll be sharing more. We can't say too much now. But what I do want to stress is the team is most focused on the top line, right?

I think if cell side hiring goes up faster than we've anticipated, and we have been pretty conservative there on the cell side, I think that could certainly be a tailwind for us in this year.

Speaker Change: We have anticipated and we have been pretty conservative there on the cell side. I think that could certainly be a tailwind forest in this year. But do remember that, you know, particularly for some of these larger deals. It's a pretty long sale cycle as we go at the enterprise level now.

But do remember that, particularly, for some of these larger deals, it's a pretty long sales cycle as we go at the enterprise level now. And I think at the Investor Day we'll be sharing more. We can't say too much now. But what I do want to stress is the team is most focused on the top line, right? So, that's what we want to do. We're not happy growing at 5%; we want to grow faster, and that's going to be our main focus. And what we'll talk more about at Investor Day.

Speaker Change: and I think it invested a, you know, we'll be sharing more we can't say too much now, but what I do want to stress is

Phil Snow: So that's what we want to do. We're not happy growing at 5%; we want to grow faster, and that's going to be our main focus. And what will talk more about it invested there. Thank you.

So that's what we want to do. We're not happy growing at 5%; we want to grow faster, and that's going to be our main focus. And what will talk more about it invested there.

Speaker Change: The team is most focused on the top line, right? So that's what we want to do. We're not happy growing at five to seven. We want to grow faster, and that's going to be our main focus, and what we'll talk more about it in best of day.

Operator: Our next question comes from the line of Kelsey Zhu with Autonomous. Your line is open.

Unknown Executive: Please stand by for our next question.

Speaker Change: Thank you.

Kelsey Zhu: Our next question comes from the line of Kelsey Zoo with Autonomous. Yelana's open. Hi, good morning. Thanks for taking my questions. So you've previously talked about Janet. I kind of expected to start delivering incremental ASE in FY 25. I'm assuming that's already included in the four to six percent ASE growth guidance, which is curious.

Our next question comes from the line of Kelsey Zoo with Autonomous. Yelana's open.

Speaker Change: Thank you, please stand by for our next question.

Kelsey Zhu: Hi, good morning. Thanks for taking my questions. So, you've previously talked about Gen AI kind of expected to start delivering incremental ASV in FY '25. I'm assuming that's already included in the 4% to 6% ASV growth guidance. But just curious, have you sized the impact of Gen AI investment for both ASV and expense outlook for the next few years?

Kelsey Zoo: Our next question comes from the line of Kelsey Zoo with the tonniness. Your line is open.

Kelsey Zoo: Hi, I'm Good Morning. Thanks for taking my questions.

Kelsey Zoo: So you've previously talked about, Janay, I kind of expected to start delivering incremental ASV in FY 25, I'm assuming that's already included in the 4 to 6% ASV growth guidance, but his curious have you signed the impact of...

Helen Shan: Have you signed the impact of Janet, I investment for both ASE and expense outlook for the next few years? Sure. Why don't I take a shot at that one? Thanks, Kelsey. So when we think about the impact that Jennie, I may have, that's why, as Phil mentioned, we're looking more at the back half of the year. So that's when a lot of our new solutions that are powered by Jennie, I will come out in the first half. So they will be able to have a better perspective of that. It is baked in to our guidance range.

Have you signed the impact of Janet, I investment for both ASE and expense outlook for the next few years?

Helen Shan: Sure. Why don't I take a shot at that one? Thanks, Kelsey. So, when we think about the impact that Gen AI may have, that's why, as Phil mentioned, we're looking more at the back half of the year. So, that's when a lot of our new solutions that are powered by Gen AI will come out in the first half. So, they will be able to have a better perspective of that. It is baked in to our guidance range. And that's why we're talking about it being the first half more in current conditions. And the second half boosted by what we hope will be stronger capital markets activity and demand for the new products as well as enterprise. And ideally, as we talked about, some of the green shoots of reduced erosion.

Speaker Change: Chennai Investments for both ASC and expense outlook for the next years.

Speaker Change: Sure, why don't I take a shot at that one, thanks Kelsey. So when we think about the impact that Jenny and I may have, that's why as...

Speaker Change: Phil mentioned we're looking more at the back half of the year so that's when a lot of our new solutions that are powered by Gen AI will come out in the first half so that we'll be able to have a better perspective of that. It is based in to our guidance range and that's why we're talking about it being the first half more in current conditions and the second half boosted by what we hope will be stronger capital market activity in demand for the new products as well as enterprise.

Helen Shan: And that's why we're talking about it being the first half more in current conditions. And the second half boosted by what we hope will be stronger capital markets activity and demand for the new products as well as enterprise. And ideally, as we talked about, some of the green shoes that reduce erosion. So when I think about how much that's baked in there. We'll see, somewhere between maybe 30 to 50 basis points is where we might see that come through. As it relates to the expense side, I think right now, when I look at the total amount of investments that we're making, I would call it about 50 plus basis points. I also attributed to Gen AI, both what we've been investing in and what we're going to continue to invest into 2025.

And that's why we're talking about it being the first half more in current conditions. And the second half boosted by what we hope will be stronger capital markets activity and demand for the new products as well as enterprise.

And ideally, as we talked about, some of the green shoes that reduce erosion. So when I think about how much that's baked in there. We'll see, somewhere between maybe 30 to 50 basis points is where we might see that come through. As it relates to the expense side, I think right now, when I look at the total amount of investments that we're making, I would call it about 50 plus basis points. I also attributed to Gen AI, both what we've been investing in and what we're going to continue to invest into 2025.

And ideally, as we talked about, some of the green shoes that reduce erosion.

So, when I think about how much that's baked in there. We'll see, somewhere between maybe 30 to 50 basis points is where we might see that come through. As it relates to the expense side, I think right now, when I look at the total amount of investments that we're making, I would call it about 50-plus basis points. I also attributed to Gen AI, both what we've been investing in and what we're going to continue to invest into the 2025.

Speaker Change: and ideally, as we talked about some of the green shoes, so we used erosion. So, as when I think about how much that's baked in there.

Speaker Change: We'll see somewhere between maybe 30 to 50 basis points is where we might see that come through. As it relates to the expense side, I think right now, when I look at the total amount of investments that we're making, I would call it about 50 plus.

Speaker Change: Basis points are also attributed to Gen AI, both what we've been investing in, what we're going to continue to invest in into the 2025.

Unknown Executive: Our next question comes from the line of Surinder Thind with Jefferies. Would you respect to the ASB

Operator: Our next question comes from the line of Surinder Thind with Jefferies. Your line is open.

Surinder Thind: Thank you. Please stand by for our next question.

Speaker Change: Thanks for watching!

Speaker Change: You're welcome.

Helen Shan: Our next question comes from the line of Surinder Thind with Jeffrey Silber. Would you respect to the ASB guide, how should we think about the current pricing environment and what's built into the guide and then related to pricing, how does something like sex at mercury or your AI offering, how do you price that? Sure.

Our next question comes from the line of Surinder Thind with Jeffrey Silber. Would you respect to the ASB guide,

Our next question comes from the line of Surinder Thind with Jeffrey Silber. Would you respect to the ASB

Speaker Change: Please stand by for our next question.

Would you respect to the ASB guide, how should we think about the current pricing environment and what's built into the guide and then related to pricing, how does something like sex at mercury or your AI offering, how do you price that? Sure.

Surinder Singh Thind: With respect to the ASV guide, how should we think about the current pricing environment and what's built into the guide? And then related to pricing, how does something FactSet Mercury or your AI offering, how do you price that?

Speaker Change: and the next question comes from the line of surrender-thin with Jeffrey, Selain is open.

guide,

how should we think about the current pricing environment and what's built into the guide and then related to pricing, how does something like sex at mercury or your AI offering, how do you price that? Sure.

Surrender-thin: I think with respect to the ASB guide, how should we think about the current pricing environment and what's built into the guide? And then related to pricing, how does something like sex at Mercury or ARL spring? How do you price that?

Sure. I'm sorry. What was the second part of your question? I'll take the second part. I can do that. So our standard pricing, what's baked in here, as you know, in our contracts, we have either the higher of CPI or RPI, or 3%. So we do see some headwind going into 2025 as it relates to our annual price increase, but I want to make a separation between the annual price increase and then what we are able to do as we see. So we've been looking at our sales throughout the year. Our rate cards have been adjusted depending on experience and activity.

Helen Shan: Sure. I'm sorry. What was the second part of your question?

I'll take the second part. I can do that. So our standard pricing, what's baked in here, as you know, in our contracts, we have either the higher of CPI or RPI, or 3%. So we do see some headwind going into 2025 as it relates to our annual price increase, but I want to make a separation between the annual price increase and then what we are able to do as we see. So we've been looking at our sales throughout the year. Our rate cards have been adjusted depending on experience and activity.

Philip Snow: I'll take the second part.

Helen Shan: I'm sorry. What was the second part of your question? I'll take the second part. I can do that. So our standard pricing, what's baked in here, as you know, in our contracts, we have either the higher of CPI or RPI, or 3%. So we do see some headwind going into 2025 as it relates to our annual price increase, but I want to make a separation between the annual price increase and then what we are able to do as we see. So we've been looking at our sales throughout the year. Our rate cards have been adjusted depending on experience and activity.

Helen Shan: I can do that. So, our standard pricing, what's baked in here, as you know, in our contracts, we have either the higher of CPI or RPI, or 3%. So, we do see some headwind going into 2025 as it relates to our annual price increase. But I want to make a separation between the annual price increase and then what we are able to do as we sell throughout the year. Our rate cards have been adjusted depending on experience and activity. And so, we've been raising the prices on our packages.

Speaker Change: Sure, I'm sorry, we were in the second part of the whole thing. Okay, I'm sorry. Oh, sure, I can do that. You can do that. So I standard pricing, what's baked in here, as you know, in our contracts?

Speaker Change: We have either the higher of CPI or RPI or 3% so we do see some headwind going into 2025 as it relates to our annual price increase.

Speaker Change: but I want to make a separation between the annual person increase and then what we are able to do as we sell throughout the year.

Helen Shan: And so we've been raising the prices on our packages, and the price realization against that, on average, is above 80%. So we feel good on what we're able to capture as we sell into this market. I would expect the same for this year as last year, meaning we have a larger book and we have net new clients. So we will capture incremental dollars and the price realization, as I mentioned against our rate cards.

And so we've been raising the prices on our packages,

Speaker Change: are our rape cards have been just a depending on experience and activity and so we've been raising the prices on our packages.

And the price realization against that, on average, is above 80%. So, we feel good on what we're able to capture as we sell into this market. I would expect the same for this year as last year, meaning we have a larger book and we have net new clients. So, we will capture incremental dollars and the price realization, as I mentioned against our rate cards.

Speaker Change: and the price realization against that on average has in above 80%.

Speaker Change: So we feel good on what we're able to capture as we sell into this market. I would expect the same for this year as last year, meaning we have a larger book and we have net new clients. So we will capture incremental dollars and the price realization that I mentioned against our rate cards.

Helen Shan: So, in total, we do expect the total contribution from pricing year-over-year to be down modestly, but overall still a good contributor to our overall growth rate.

Speaker Change: So in total, we do expect the total contribution from Christ in New York a year to be down modestly, but overall still a good contributor to our overall growth rate.

Phil Snow: And in terms of pricing for AI, we're arriving at a model for this. Of course, we'll iterate on it. Some stuff will just get baked into FactSet, out of the box. And we've already got some great product in there called transcript intelligence and search intelligence. You can go and look across a lot of different documents to get an idea of a trend or what's happening, get questions answered. Secondly, we're going to release deep workflow solutions. So we've released portfolio commentary, and we'll be charging for that on a usage basis. So it really will be driven by how many portfolios and how many commentaries you want to create.

Philip Snow: And in terms of pricing for AI, we're arriving at a model for this. Of course, we'll iterate on it. Some stuff will just get baked into FactSet, out of the box. And we've already got some great product in there called transcript intelligence and search intelligence. You can go and look across a lot of different documents to get an idea of a trend or what's happening, get questions answered.

Speaker Change: and in terms of pricing for AI, we're arriving at a model for this, of course, iterate on it. You know, some stuff you'll just get baked into facts that, you know, at...

Speaker Change: You know, out of the box, and we've already got some great...

Speaker Change: Product in the echoed transcripts and intelligence and search intelligence you can go and look across.

Speaker Change: You know, a lot of different documents to get an idea of a trend of what's happening, get questions answered. Secondly, you know, we're going to release deep.

Secondly, we're going to release deep workflow solutions. So, we've released portfolio commentary, and we'll be charging for that on a usage basis. So, it really will be driven by how many portfolios and how many commentaries you want to create.

Speaker Change: Workflow Solutions, so we've released portfolio commentary.

Speaker Change: and we'll be charging for that on a usage basis, so it really will be driven by how many portfolios and how many commentaries you want to create.

Phil Snow: We did get a lot of demand for customization there, after we announced this at Focus back in May. But we've done a lot of that work now. So, we're in a great position to go out to the market. We've literally got hundreds of clients interested, and we'll be able to essentially customize this to some extent for them out of the box. So, that's an approach we'll take with many of these things. We'll take a bundled approach in some cases where you can get a bundle of capabilities and get price for that. But most of this is going to be usage or consumption based, I would imagine, and it might depend on the product.

Speaker Change: We did get a lot of demand for a customization there after we announced this at Focus, it back in May, but we've done a lot of that work now so we're in a great position to go out to the market. We've literally got hundreds of clients interested.

Speaker Change: and we'll be able to essentially customize this to some extent for the amount of the box. That's an approach we'll take with many of these things. We'll take a bundled approach in some cases where you can get a bundle of capabilities.

Phil Snow: I would imagine, and it might depend on the product. So a lot of it will be incremental ASV. We did have a great sale in Q4, which was our Conversational API. So really, the, you know, the search experience that you would have on a fact that a client wanted to use that within their own ecosystem and a lot of the larger funds are going to want to do this. So we've taken a federated approach, which I think is a real, real winning approach.

I would imagine, and it might depend on the product.

Speaker Change: and get price for that, but most of this is going to be used as your consumption based. I would imagine.

So, a lot of it will be incremental ASV. We did have a great sale in Q4, which was our Conversational API. So really, the search experience that you would have on a FactSet, a client wanted to use that within their own ecosystem. And a lot of the larger funds are going to want to do this. So, we've taken a federated approach, which I think is a real winning approach.

Speaker Change: and it might depend on the product. A lot of it will be incremental ASV.

Speaker Change: We did have a great sale in Q4 which was a conversational API, so really the search experience that you would have on the fact that a client wanted to use that within their own ecosystem and a lot of the logic firms are going to want to do this.

Gordon Scoco: I'm going to pass the baton here to go on because he had a lot to do with that sale. And you want to add on to that and sort of your level of enthusiasm for the system. Yeah. So it's certainly a sale we believe is repeatable. We are already building a pipeline and interest across multiple clients, and, you know, it's mentioned in terms of new product launches. Expect the results. You know, to show up in the second half, a half second half of the year. But I think what is really significant is that this approach federated approach to, you know, our conversational API really helps clients to accelerate their internal development and is really.

I'm going to pass the baton here to Goran because he had a lot to do with that sale. Do you want to add on to that and sort of your level of enthusiasm for this fiscal year?

go on: So we've taken a Federator approach, which I think is a real winning approach. I'm going to pass the baton here to go on, because he had a lot to do with that sale, and if you want to add on to that instead of your level of enthusiasm for this this way.

Goran Skoko: Yes. So, it's certainly a sale, we believe is repeatable. We are already building a pipeline and interest across multiple clients, and it's mentioned in terms of new product launches, expect the results to show up in the second half of the year. But I think what is really significant is that a federated approach to our Conversational API really helps clients to accelerate their internal development and is really It's really a huge benefit to their overall cost structure when it comes to Gen AI development that they do in house. So, quite excited about it. Equally excited about Portfolio Commentary and some upcoming releases that we'll be talking about at the Investor Day.

Speaker Change: Yeah, so it's certainly a sale we believe is repeatable, we are already building a pipeline and interest across multiple clients and you know, suspension.

Speaker Change: in terms of new product launches expect the results, you know, to show up in the second half of the year.

Speaker Change: I think what is really significant is that this approach, a federated approach to, you know, our conversational API really helps clients to accelerate their internal development and is really,

Gordon Scoco: It's really a huge benefit to their overall cost structure when it comes to, you know, Jenny, I developed and that they do in house. So quite excited about it.

Speaker Change: It's really a huge benefit to their overall cost structure, where it comes to, you know, Jenny, I develop and that they do in-house.

Phil Snow: Equally excited about, you know, portfolio commentary and some upcoming releases that we'll be talking about at the investor there.

Speaker Change: So quite excited about it. Equally excited about, you know, portfolio commentary and some upcoming releases that will be talking about it at the investor day.

Unknown Executive: Thank you. That's very helpful. Thank you. Please stand by for our next question. Our next question comes from the line of George Tongue with Goldman Sachs. Your line is open. Hi. Thanks. Good morning. Your fiscal 2025.

Operator: Our next question comes from the line of George Tong with Goldman Sachs. Your line is open.

Unknown Executive: Thank you. Please stand by for our next question.

Jenny: Thank you, that's very helpful.

Speaker Change: Thank you. Please stand by for our next question.

George Tong: Our next question comes from the line of George Tongue with Goldman Sachs. Your line is open. Hi. Thanks. Good morning. Your fiscal 2025.

George Tong: Hi. Thanks. Good morning. Your fiscal 2025 revenue growth guide of just over 4% is a deceleration from about 5.5% growth in fiscal 2024, even though ASV growth in fiscal 4Q benefit it from several large wins that should ramp into next year. Can you help bridge the gap and discuss what may be dampening revenue performance next year compared to fiscal '24?

Speaker Change: Our next question comes from the line of George Tongue with Goldman Sachs, your line is open.

Helen Shan: Revenue growth guide of just over 4% is a deceleration from about 5.5% growth in fiscal 2024, even though ASV growth in fiscal 4K benefit it from several large wins that should ramp into next year. Can you help bridge the gap and discuss what may be dampening revenue performance next year compared to fiscal 24.

George Tongue: I think it's good morning.

Speaker Change: Your fiscal 2025 revenue growth diet of just over 4% is a deceleration from about 5 and a half percent growth in fiscal 2024 Even though ASV growth in just go forth to benefit it from several large winds that should ramp into next year

Speaker Change: Can you help bridge the gap and discuss what may be dampening revenue performance next year compared to your fiscal 24th?

Helen Shan: Hi, George. I'll take that one. So, as you know, the nature of our business. It is a recurring revenue business. So when the ASV goes in, is how you get to recognize it. So, a stronger Q4 is certainly helpful, but then you are carrying the last three quarters, which were, as you know, lower. So, revenue is a lag to ASV growth. And you'll see that over the period of time. If you look back at the last 10 years, that's the way that it works. So, that's the delta between the two. It also matters how the ASV gets converted in year.

Speaker Change: Hi George, I'll take that one. So as you know, the nature of our business.

Speaker Change: It is a recurring revenue business so when the ASV goes in is how you get to recognize it. So a stronger Q4 certainly helpful, but then you are carrying the last three quarters, which were, as you know, lower. So revenue is a lag to ASV growth.

Speaker Change: and you'll see that over the period of time, if you look back at the last 10 years. That's the way that it works, so that's the delta between the two.

It also matters how the ASV gets converted in year. So, as we mentioned already, that the first half will be likely more where we are today and the second half being stronger. And so, then that again will reflect more of the first half in revenue, and then hopefully help us more into 2026. Thanks. Got it. Thank you.

Speaker Change: It also matters how the...

Helen Shan: So, as we mentioned already, that the first half will be likely more where we are today and the second half being stronger. And so then that again will reflect more of the first half in revenue, and then hopefully help us more into 2026. Thanks. Got it. Thank you.

Speaker Change: A.S.V., gets converted in-year, so as we mentioned already, that the first half will be likely more where we are today, and the second half being stronger, and so then that, again, will reflect more of the first half in revenue, and then hopefully help us more into 2026.

George Tong: Got it. Thank you.

Operator: Our next question comes from the line of Andrew Nicholas with William Blair. Your line is open.

Speaker Change: God, thank you.

Speaker Change: You're welcome.

Helen Shan: Our next question comes from the line of Andrew Nicholas with William Blair. Your line is open. Hi, good morning. Thank you for taking my question. I wanted to ask maybe a bigger picture one on the investment dollars. It sounds like the year-over-year decline in operating margin is at least in heart. It sounds like half is tied to the reset of the bonus pool. But there's obviously incremental dollars here tied to investment. And I just wanted to ask, you know, a little bit more about the thought process. How do you think about kind of balancing that investment spend with kind of your priorities of driving top line growth?

Our next question comes from the line of Andrew Nicholas with William Blair. Your line is open.

Speaker Change: Our next question comes from the line of Andrew Nicholas with William Blair, Yelana Sopen.

Andrew Nicholas: Hi, good morning. Thank you for taking my question. I wanted to ask maybe a bigger picture one on the investment dollars. It sounds like the year-over-year decline in operating margin is at least in part, it sounds like half is tied to the reset of the bonus pool. But there's obviously incremental dollars here tied to investment. And I just wanted to ask a little bit more about the thought process. How do you think about kind of balancing that investment spend with kind of your priorities of driving top line growth?

Speaker Change: Hi, good morning. Thank you for taking my question. I wanted to ask maybe a bigger picture one on the investment dollars, it sounds like.

Speaker Change: the year over year decline in operating margin is at least in electric sounds like half is tied to the reset of the bonus pool, but there's obviously incremental dollars here.

Speaker Change: Kaitan Vustman, and just like that.

Kaitan Vustman: You know a little bit more about the thought process, how you think about balancing that investment spend with kind of your priorities of how driving top-lying growth and then kind of laterally.

Helen Shan: And then, kind of relatedly, if embedded in your guidance is some flexibility to potentially ramp up investment spend as we move through the year. If you're hitting higher ends of your revenue guidance because it does look like a little bit of an inverse relationship between revenue growth and operating income guidance based on the table on the release. Thank you. Sure. I'll take that. It's a very good question.

And then, kind of relatedly, if embedded in your guidance is some flexibility to potentially ramp up investment spend as we move through the year. If you're hitting higher ends of your revenue guidance because it does look like a little bit of an inverse relationship between revenue growth and operating income guidance based on the table on the release. Thank you.

Speaker Change: If embedded in your guidance is some flexibility to potentially ramp up, investment spend as we move through the year, if you're hitting higher ends of your revenue guidance, because it does look like.

Speaker Change: You know, a little bit of a inverse relationship between Robin and Groath and Operating into them guys.

Helen Shan: Sure. I'll take that. It's a very good question. So, as we mentioned before, we were able to take some expense actions in '24 and reduce spend, which gives us some room for investment. So overall, what I would think about the additional investment that we're putting into 2025 that is included in our margin, and I'll call it self-funded, is roughly around 150 basis points, of which half is investment in Gen AI, which we'll see that come through as Phil was speaking to likely on the front office as well as in banking and wealth. We're also investing in content, which comes through the form of real time and fixed income.

Speaker Change: based on the city of honorably.

Speaker Change: Thanks for watching.

Helen Shan: So, as we mentioned before, we were able to take some expense actions in 24 and reduce spend, which gives us some room for investment. So overall, what I would think about the additional investment that we're putting into 2025 that is included in our margin, and I'll call it self-funded, is roughly around 150 basis points. Of which half is investment in Gen AI, which we'll see that come through as Phil was speaking to likely on the front office as well as in banking and wealth. Yeah, we're also investing in content, which comes through the form of real time and fixed income.

Speaker Change: Sure, I'll think that it's a very good question So as I mentioned before, we were able to take some expense actions in 24 and reduce spend, which gives us some room for investment.

Speaker Change: So overall what I would think about the additional investment that we're putting in to 2025 that is

Speaker Change: Included in our margin, and I'll call it self-funded, is roughly around 150 basis points of which half is investment in Gen AI, which will see that come through as fill was speaking to likely on the front office as well as in banking and wealth.

Helen Shan: We're also investing in content, which comes through the form of real time and fixed income. And then also in our buy side workflows, I mentioned earlier, the increase in demand on managed services as well as investments we're going to be making in trading. And then lastly, a bit into infrastructure because to do some of the consumption tracking and billing to support the Gen AI and other types of solutions that we have that are based more on usage, that's a bit built into our total of 150 basis points of spend. So, it's being funded in two ways: the productivity gains that we've taken as well as we selected reduction and discretionary spend such as in professional services.

Speaker Change: We're also investing in content.

Helen Shan: And then also in our buy side workflows, I mentioned earlier, the increase in demand on managed services as well as investments were going to be making in trading. And then lastly, a bit into infrastructure because to do some of the consumption tracking and billing to support the Gen AI and other types of solutions that we have that are based more on usage, that's a bit of built into our total of 150 basis points of spend. So it's being funded in two ways: the productivity gains that we've taken as well as we selected reduction and discretionary spend such as in professional services.

Speaker Change: which comes through the form of real time and fixed income.

Speaker Change: and then also on our by-side workflows. I mentioned earlier the increase in demand on managed services.

Speaker Change: as well as investments we'll be making and trading.

Speaker Change: and then lastly a bit into infrastructure because to do some of the consumption, tracking and billing.

Speaker Change: the Support the JNAI and other types of...

Speaker Change: Solutions that we have that are based more on usage.

Speaker Change: That's a bit of built-in to our total 150 basis point of...

Helen Shan: So, it's being funded in two ways: the productivity gains that we've taken as well as we selected reduction and discretionary spend such as in professional services. So, we believe this is the right way to balance the need to invest for top line growth, which, as we said, is our primary focus, but also with the aim of maintaining the strong margins that we've already achieved.

Speaker Change: of Spend. So it's being funded in two ways, the productivity of gains that we've taken.

Speaker Change: as well as we've selected reduction in discretionary spend, such as in professional services. So we believe this is the right way to balance the need to invest for top line growth, which, as we said, is our primary focus.

Helen Shan: So we believe this is the right way to balance the need to invest for top line growth, which, as we said, is our primary focus, but also with the aim of maintaining the strong margins that we've already achieved. Thank you.

Speaker Change: but also with the aim of maintaining the strong margins that we've already achieved.

Operator: Our next question comes from the line of Owen Lau with Oppenheimer. Your line is open.

Speaker Change: Thank you.

Owen Lau: Our next question comes from the line of Owen One Law with Oppenheimer. The line is open. Hi, good morning. Thank you for taking my question. I do have a follow-up with the investments of Helen; you just mentioned.

Our next question comes from the line of Owen One Law with Oppenheimer. The line is open.

Speaker Change: Please stand by for our next question.

Owen Lau: Hi, good morning. Thank you for taking my question. I do have a follow-up with the investments, Helen, you just mentioned. So, as you start to monetize Gen AI, do you need to continue to invest to maintain the growth rate, or can you scale back some of your maybe 30 investments or current investments at some point. Thanks.

Speaker Change: Our next question comes from the line of on one law with open hangar, your line is open.

Speaker Change: Hi, good morning. Thank you for taking my question.

Speaker Change #100: I do have a follow-up with the investments of Helen. You just mentioned. So as you start to monetize Jenny, I do need to continue to invest to maintain the growth rate, or you can scale back some of your, maybe 30 investments or current investments at some point. Thanks.

Helen Shan: So, as you start to monetize Shanie, do you need to continue to invest to maintain the growth rate, or can you scale back some of your maybe 30 investments or current investments at some point. Thanks. Sure. And I realized it didn't answer the second half of the other question. So I'll try to combine those two. So first, I think we're really in the early stages of this. So I won't make a view of whether or not we can pull back. I do think that if we're able to realize some of the ASV earlier, and if that's stronger, that we'd be able to invest more as needed.

So, as you start to monetize Shanie, do you need to continue to invest to maintain the growth rate, or can you scale back some of your maybe 30 investments or current investments at some point. Thanks.

Helen Shan: Sure. And I realized it didn't answer the second half of the other question. So, I'll try to combine those two. So first, I think we're really in the early stages of this. So, I won't make a view of whether or not we can pull back. I do think that if we're able to realize some of the ASV earlier, and if that's stronger, that we'd be able to invest more as needed.

Speaker Change #101: Sure, and I realized it in the answer the second half of the other questions, so I'll try to combine those two

Speaker Change #102: So first I think we're early in the early stages of this so I won't make a view of whether that we can pull back. I do think that if we're able to rely some of the ASV earlier and if that's stronger that we'd be able to invest more as needed.

Helen Shan: So, right now, I think what we're looking really is to continue as long as we can get the returns higher than our costs. We will look to continue to invest. And, as I said, it won't just be in Gen AI, it will continue to also be in content as well as into the workflows themselves. All right. Thanks a lot.

So, right now, I think what we're looking really is to continue as long as we can get the returns higher than our costs. We will look to continue to invest. And, as I said, it won't just be in Gen AI, it will continue to also be in content as well as into the workflows themselves.

Speaker Change #102: So right now, I think what we're looking really as to continue as long as we can get the returns higher than our costs, we will look to continue to invest Owen. And as I said, it won't just be in January, it'll continue to also be in content as well as into the work flows themselves.

Owen Lau: All right. Thanks a lot.

Operator: Our next question comes from the line of Jeff Silber with BMO Capital Markets. Your line is open.

Speaker Change #103: All right, thanks a lot.

Speaker Change #104: Thank you.

Jeff Silver: Our next question comes from the line of Jeff Silver with BMO Capital Markets. Yalan is open. Thanks so much. Earlier you referred to some of the wins you had in your top 10 customers. I think you said the word nine that you took share from your competitors. I know this may be a generalized question. But is there anything specific that drove that share change? I know each contract might be different. But I'm wondering if there are any commonalities in those deals. Thanks. Yeah, thank you for the question. So I mean one friend that I would like to highlight is, you know, we're just doing a lot more at the enterprise level with our clients now.

Our next question comes from the line of Jeff Silver with BMO Capital Markets. Yalan is open.

Jeffrey Silber: Thanks so much. Earlier you referred to some of the winds you had in your top 10 customers. I think you said the word nine that you took share from your competitors. I know this may be a generalized question. But is there anything specific that drove that share change? I know each contract might be different. But I'm wondering if there are any commonalities in those deals. Thanks. Yeah, thank you for the question. So I mean one friend that I would like to highlight is, you know, we're just doing a lot more at the enterprise level with our clients now.

Speaker Change #105: Our next question comes from the line of Jeff Silver, with B.M. Old Capital Mothets, Y'all on his open.

Jeff Silver: Thanks so much. Earlier you referred to some of the wins you had in your top 10 customers. I think you said it were nine that you took share from your competitors.

Jeff Silver: I know this may be a generalized question but there are anything specific that drove that share change and it'll each contract might be different but I'm wondering if there are any commonalities in those deals. Thanks.

Philip Snow: Yes, thank you for the question. So, I mean one friend that I would like to highlight is we're just doing a lot more at the enterprise level with our clients now. And I think Goran has led a lot of these key wins by selling into the C-suite and driving home some new solutions that are repeatable.

Speaker Change #107: Yeah, thank you for the question, so we want friends that I would like to highlight is...

Phil Snow: And I think Goron has led a lot of these key wins by selling into the C-suite and driving home some new solutions that are repeatable. So we had that amazing win in queue for a client where we're doing sort of middle office performance for wealth. Goron's driven a lot of our success or, you know, himself and with a great team for wealth over the over the over the previous years, and you can see how well we did in that space. This year, and a lot of these key wins were in the wealth space. So I would say wealth is a common theme; enterprise level is a common theme.

And I think Goron has led a lot of these key wins by selling into the C-suite and driving home some new solutions that are repeatable.

Speaker Change #107: You know, we're just doing a lot more at the enterprise level with our clients now and I think Lauren is led

Speaker Change #108: You know, a lot of these keywinds by selling into the seaswade and driving home some new solutions that are repeatable. So, we had that amazing wind in Q4 to client where we're doing sort of middle office performance for wealth.

So, we had that amazing win in Q4 at a client where we're doing sort of middle office performance for wealth. Goran's driven a lot of our success himself and with a great team for wealth over the over the previous years, and you can see how well we did in that space. This year, and a lot of these key wins were in the wealth space this year. So, I would say wealth is a common theme; enterprise level is a common theme.

Goran: Goran's driven a lot of our success or, you know, himself and with a great team for wealth over the over the previous years and you can see how well we did in that.

Goran: Space this year and a lot of these keywinds were in the wealth space. So I would say wealth is a common theme and a prize level is a common theme. The fact that I think our clients are sort of...

Phil Snow: The fact that I think our clients are sort of excited about consuming value in lots of different ways from us as a theme. And then, we've just got an amazing desktop product. I mean we continue to grow that we had a great win in banking and we just go from strength to strengthen in banking, and a lot of that's been driven by the investment in deep sector and private markets. But just the work the team continues to do around the efficiency for bankers, and that's--I think we're going to see a step change in that once we release some of these Gen AI products.

Goran: Excited about consuming valley when lots of different ways from us as a theme. And then we've just got an amazing desktop product, I mean, we continue to grow that. We had a great win in banking and we just go from strength to strength and banking and a lot of that's been driven by.

Goran: You know the investment in deep sector and private markets but just the work the team continues to do around the efficiency of four bankers and that's we're going to see a step change in that once we release.

Phil Snow: And just to add to what Phil said, in addition to the top-down selling I think our ability to compete for the high-end terminal, especially in the wealth management, has really improved this year as we have added fixed income content and other capabilities. So, we encourage the double drive future growth. One of the most encouraging signs about the wins that we have had is that we're expanding into additional workflows and diversifying our sources of ASV. Phil already mentioned, you know, expansion into performance reporting as a large client, but we have also seen a very significant win, again, in wealth management in terms of expanding into portfolio-related workflows.

Goran Skoko: And just to add to what Phil said, in addition to the top-down selling I think our ability to compete for the high-end terminal, especially in the wealth management, has really improved this year as we have added fixed income content and other capabilities. So, we encourage the double drive future growth. One of the most encouraging signs about the wins that we have had is that we're expanding into additional workflows and diversifying our sources of ASV.

Goran: are some of these genuine eye products. I'm just glad to what Phil said in addition to...

Speaker Change #110: in the Tottenh selling at the encarability to compete for the higher-end terminal, especially in the growth management has really improved. This year as we have added fixed income content and other capabilities, so we encourage the double drive future growth.

Speaker Change #111: One of the most encouraging science about the lens that we have had is the re-expanding into additional workflows and diversifying our sources of ASV fill over the dimension, you know, expansion into...

Phil already mentioned expansion into performance reporting at a large client, but we have also seen a very significant win, again, in wealth management in terms of expanding into portfolio-related workflows. So, that is something we will be building on in 2025 and growing forward. So, these wins Phil's highlighting are really important to us.

Speaker Change #112: Performance Reporting as a large client, but we have also seen a very significant commitment, again in both management on.

Phil Snow: So that is something we will be building on in 2025 and growing forward. So these, you know, wins feel, pillars, highlighting are really important to us.

Speaker Change #112: in terms of extending into portfolio related workflows. So that is something we will be building on in 2025 and going forward. So these events feel pretty exciting to us.

Operator: Our next question comes from the line of Jason Haas with Wells Fargo. Your line is open.

Unknown Executive: Please say bye for our next question.

Speaker Change #113: Thank you.

Jason Hawth: Our next question comes from the line of Jason Hawth with Will Spago, Yelena Sultin. Hey, good morning, and thanks for taking my question. I'm curious if you could comment a little bit more on what you're seeing in regards to the competitive environment. It sounds like you're winning your fair share out there, but I'm curious if, given it's a tough backdrop, you're seeing any level of aggressive pricing from some of your competitors. Thanks.

Our next question comes from the line of Jason Hawth with Will Spago, Yelena Sultin.

Speaker Change #114: Please stand by for our next question and...

Jason Haas: Hey, good morning, and thanks for taking my question. I'm curious if you could comment a little bit more on what you're seeing in regards to the competitive environment. It sounds like you're winning your fair share out there. But I'm curious if, given it still a tough backdrop, if you're seeing any level of aggressive pricing from some of your competitors. Thanks.

Speaker Change #115: and the next question comes from a lot of Jason Haas with Will Spogger, your line is open.

Speaker Change #116: Hey, good morning and thanks for taking my question. I'm curious if you could comment a little bit more on what you're seeing in regards to the competitive environment. It sounds like you're winning your fair share out there, but I'm curious if given it will tough backdrop if you're seeing any level of aggressive pricing from some of your competitors. Thanks.

Goran Skoko: Hi Jason, thanks for the question. I wouldn't say any different than what we have experienced in the past. I think we always face competition and different levels of aggressiveness when it comes to pricing. So, we are always keeping an eye out on the competition and exactly how we perform in terms of wins and losses. I do not think that much has changed competitively. There is certainly increased focus by some of the competitors on some of the segments that we do really well in, but we do not see that anything has significantly changed.

Jason Haas: Hi Jason, thanks for the question. I wouldn't say any different than what we have experienced in the past, you know, I think we're always days.

Jason Haas: Competition and different level of aggressiveness when it comes to pricing.

Jason Haas: So, you know, we will always keep an eye out on the competition and exactly how we perform in, you know, in terms of engine losses, I do not think that much has changed competitively, there is certainly, you know, increased.

Jason Haas: Focus by some of the competitors on some of the segments that we do really well in, but we do not see that anything has significantly changed.

Helen Shan: I'll add a little bit to that and it is as Goran said, a competitive environment. So, we're being smart about this. So, for example, in new business, we will, at times, given that they're switching costs. But to get the competitive displacement, we'll go in and be as competitive as possible. Now, that being said, we've selectively used that pricing to also lock in to longer-term contracts as well. And as Goran said, we've seen some good success there in wealth and banking and in corporates. So, I think we're just being smart in how we're using price to be able to win market share.

Jason Haas: I'll add a little bit to that, you know, it is a, as Gore and said, a competitive environment. So we're, we're being smart about this. So for example, in new business.

Speaker Change #118: We will, at times, given that they're switching costs.

Speaker Change #118: but to get the competitive displacement, we'll go in and be as competitive as possible. Now that being said, we've selectively used that pricing to also lock into longer term contracts as well and as Gore and said, we've seen some good success there in wealth and banking and in corporates.

Gore: So I think we're just being smart and how we're using price to be able to win market share.

Operator: Our next question comes from the line of Craig Huber with Huber Research Partners. You line is open.

Speaker Change #120: Thank you.

Craig Huber: Our next question comes from the line of Craig Hoover with Who Were Research Partners. You line is open. Yes, hi. Thank you. We've got a question here to love to hear. How are your hedge fund clients doing that market in all of a way when you sell into corporates? How's that going for you right now? Is it getting better, or worse, or about the same?

Our next question comes from the line of Craig Hoover with Who Were Research Partners. You line is open.

Speaker Change #121: Please stand by for our next question.

Craig Huber: Yes, hi. Thank you. We've got a question here, love to hear, how are your hedge fund clients doing that market? And also, when you sell into corporates? How's that going for you right now? Is it getting better, or worse, or about the same?

Speaker Change #122: How next question comes from a line of Craig Huber, with who will research partners, you line us open.

Craig Huber: Yes, hi, thank you. I got a question here to love to hear how are your hedge fund clients doing that market and also when you sell into corporates?

Speaker Change #124: and how's that going for you right now is getting better, worse, or about the same.

Helen Shan: So, I'll take a shot at that one. I would say that it is about the same. It depends. We see a fair amount of turn on the hedge fund side, Craig. So, we'll see ones that go down, and then they'll come pick back up. So, our goal there is if they reconstitute themselves and come back as a new hedge fund that we catch them on the new business front, which we've seen a fair amount of. Interestingly, we've had good activity from the hedge fund community out in Asia, in particular in the Singapore arena. So, we're seeing what is relatively new growth out there, but hedge funds have done well.

Speaker Change #125: So I'll take a shot at that one. I would say that it is about the same. It depends. We see a fair amount of turn on the hedge fund side.

Craig Huber: Craig, so we'll see ones that go down and then they'll come pick back up, so our goal there is if they reconstitute themselves and come back as a new hedge fund that we catch them on the new business firm, which we've seen a fair amount of.

Craig Huber: Interestingly, we've had good activity from the hedge fund community out in Asia.

Craig Huber: in particular.

Craig Huber: in the Singapore arena. So we're seeing what is relatively new growth out there, but hedge funds have done well. Corporates, we have a great partnership with a company called Erwin that we also do a lot of business with and we've seen that uptick.

Phil Snow: Corporates, we have a great partnership with a company called Irwin that we also do a lot of business with, and we've seen that uptick this year as well. There's a lot of churn. And our new logos, which we talked about in our call, does come a lot from corporates. Great, thank you.

Corporates, we have a great partnership with a company called Irwin that we also do a lot of business with, and we've seen that uptick this year as well. There's a lot of churn. And our new logos, which we talked about in our call, does come a lot from corporates.

Craig Huber: this year as well. There's a lot of churn and our new logos, which we talked about in our call, does come a lot from corporates.

Operator: Our next question comes from the line of Russell Quelch with Redburn Atlantic. Your line is open.

Unknown Executive: Thank you. Please stand by for our next question.

Speaker Change #126: Great, thank you.

Speaker Change #127: Thank you.

Phil Snow: Our next question comes from a line of ruffle cropped with Great Berm Atlantic. Your line is open. When you think about the strategy to stimulate top line growth back about five percent, I wonder, do you feel you may need to be more aggressive in exploring in organic actions or perhaps alternatively, would you consider partnership opportunities to accelerate growth in areas such as wealth where you think there's a big time opportunity to scare us into what you're thinking there is ahead of the investor. Thanks. Yeah, thanks for also. Yeah, maybe we can talk more about that then, but yeah, where we do think it's, you know, a good time to be exploring partnerships more aggressively.

Our next question comes from a line of ruffle cropped with Great Berm Atlantic. Your line is open.

Speaker Change #128: Please stand by for our next question.

Speaker Change #129: on the next question comes from a line of Russell Croft with Ray Burm and Lenin, Yelana Sopin.

When you think about the strategy to stimulate top line growth back above 5%, I wonder, do you feel you may need to be more aggressive in exploring in organic actions or perhaps alternatively, would you consider partnership opportunities to accelerate growth in areas such as wealth where you think there's a big TAM opportunity? Just curious as to what you're thinking there is ahead of the Investor Day. Thanks. Yeah, thanks for also. Yeah, maybe we can talk more about that then, but yeah, where we do think it's, you know, a good time to be exploring partnerships more aggressively.

Russell Quelch: When you think about the strategy to stimulate top line growth back above 5%, I wonder, do you feel you may need to be more aggressive in exploring in organic actions or perhaps alternatively, would you consider partnership opportunities to accelerate growth in areas such as wealth where you think there's a big TAM opportunity? Just curious as to what you're thinking there is ahead of the Investor Day. Thanks.

Speaker Change #130: Yes, I mean, when you think about your strategy to stimulate top line growth back about 5%, I wonder, do you feel you may need to be more aggressive in exploring inorganic actions or perhaps alternatively, would you consider partnership opportunities to accelerate growth in areas such as wealth, where...

Thanks. Yeah, thanks for also. Yeah, maybe we can talk more about that then, but yeah, where we do think it's, you know, a good time to be exploring partnerships more aggressively. I think certainly with the work we've done to open the platform and be more interoperable. There's an opportunity there to team up with certain funds for different sort of market segments. And on the M&A front, we're in a much better position than we have in for the last couple of years to do some targeted M&A just because we were obviously we did a large acquisition with QCIP and we had to get to this place. So we're seeing the M&A markets become more constructive. There's more things coming up that are of interest to us. And, you know, we're going to maintain our discipline, but we do see that that's a lever that we can certainly use to drive top-line growth.

Thanks.

Philip Snow: Yes, thanks, Russell. Yes, maybe we can talk more about that then. But yes, we do think it's a good time to be exploring partnerships more aggressively. I think certainly with the work we've done to open the platform and be more interoperable. There's an opportunity there to team up with certain firms for different sort of market segments. And on the M&A front, we're in a much better position than we have in for the last couple of years to do some targeted M&A just because we were--obviously, we did a large acquisition with CUSIP and we had to get to this place. So, we're seeing the M&A markets become more constructive. There's more things coming up that are of interest to us. And we're going to maintain our discipline, but we do see that that's a lever that we can certainly use to drive top-line growth.

Speaker Change #131: You think there's a big time opportunity, just curious as to what you're thinking there has been a lesson that I think.

Speaker Change #132: Yeah, thanks for also, yeah, maybe we can talk more about that then. Yeah, we're...

Phil Snow: I think certainly with the work we've done to open the platform and be more interoperable. There's an opportunity there to team up with certain funds for different sort of market segments. And on the M&A front, we're in a much better position than we have in for the last couple of years to do some targeted M&A just because we were obviously we did a large acquisition with QCIP and we had to get to this place. So we're seeing the M&A markets become more constructive. There's more things coming up that are of interest to us. And, you know, we're going to maintain our discipline, but we do see that that's a lever that we can certainly use to drive top-line growth.

Speaker Change #133: We do think it's, you know, a good time to be exploring partnerships more aggressively. I think certainly with the work we've done to open the platform and be more interoperable. There's an opportunity there to team up with certain firms for different sort of market segments.

Speaker Change #133: and on the M&A front, we're in a much better position than we have in for the last couple of years to do some targeted M&A just because we were, obviously, we did a logic acquisition with QSIP and we had to get to this place. So, we're seeing the M&A markets become more constructive, there's more.

Speaker Change #133: and things coming up that are of interest to us and we're going to maintain our discipline. But we do see that that's a lever that we can certainly use to drive top line growth.

Unknown Executive: Our next question comes from the line of Shlomo Rosenbaum, with Stifel. Your line is open. Hi, thank you for squeezing me in here.

Operator: Our next question comes from the line of Shlomo Rosenbaum, with Stifel. Your line is open.

Unknown Executive: Please stand by for our next question.

Speaker Change #134: Good, thank you.

Speaker Change #135: Thank you.

Shlomo Rosenbaum: Our next question comes from the line of Slamo, Rosenbaum, with Cecil. The line is open. Hi, thank you for squeezing me in here.

Speaker Change #136: Please say bye for our next question.

Shlomo Rosenbaum: Hi, thank you for squeezing me in here. Hey, Phil, I want to ask you a little bit just holistically, over the last few years, we've seen the company expand the margins. Growth hasn't been as much as we've historically seen. And FactSet has usually been more of a growth company, it seems like now the guidance right now is from margins to be down a little bit sequentially. But a lot more talk about the new products or anything. Is there any change philosophically that is going on recently within the company where you have pivoted a little more to margin and now are pivoting more to growth? I just want to ask you to talk about that.

Speaker Change #137: Next question comes from the line of Slamal, Rosenbaum, which is faithful, your line is open.

Phil Snow: Hey, Phil, I want you to ask you a little bit just holistically. Over the last few years, we've seen the company expand the margins. Growth hasn't been as much as we've historically seen. And, you know, the fact that it's usually been more of a growth company, it seems like now, you know, the garden right now is from margins to be down a little bit sequentially. But a lot more talk about the new products or anything. Is there any?

Slamal Rosenbaum: Hi. Thank you for squeezing me in here. Hey, still I want to ask you a little bit

Slamal Rosenbaum: just holistically.

Speaker Change #139: Over the last few years, we've seen the company expand the margins.

Speaker Change #140: has been as much as we've historically seen and, you know, the code.

Speaker Change #141: Facts that has usually been more of a growth company. It seems like now, you know, the garagants right now is from margins to be down a little bit sequentially, but a lot more talk about the new products or anything. Is there any?

Phil Snow: You know, change philosophically that is going on recently within the company where you have pivoted a little more to margin and out pivoting more to growth. And I just want to ask you to talk about that and then just a little bit about the two age improvement this year versus what you were talking about last year because you know that outlook at this time last year was almost exactly the same way in terms of the muted first half and then expectations for the second half. You could point out the differences internally, you know, where you have a line of sight to things I would say, you know, beyond just kind of the Fed rate cut but things that you're actually seeing in front of you, that give you more confidence this year versus last year will be helpful.

You know, change philosophically that is going on recently within the company where you have pivoted a little more to margin and out pivoting more to growth.

Speaker Change #141: You know, change philosophically that is going on recently within the company where you have pivotal and more to margin and outpivoting more to growth.

And I just want to ask you to talk about that and then just a little bit about the two age improvement this year versus what you were talking about last year because you know that outlook at this time last year was almost exactly the same way in terms of the muted first half and then expectations for the second half. You could point out the differences internally, you know, where you have a line of sight to things I would say, you know, beyond just kind of the Fed rate cut but things that you're actually seeing in front of you, that give you more confidence this year versus last year will be helpful.

And I just want to ask you to talk about that

And then just a little bit about the 2H improvement this year versus what you were talking about last year because that outlook at this time last year was almost exactly the same way in terms of the muted first half and then expectations for the second half. If you could point out the differences internally, where you have a line of sight to things I would say, beyond just kind of the Fed rate cut, but things that you're actually seeing in front of you, that give you more confidence this year versus last year, that would be helpful.

Speaker Change #142: and I just want to ask you to talk about that and then just...

Speaker Change #143: A little bit about the two-age improvement this year versus what you were talking about last year because...

Speaker Change #144: You know, that outlook at this time last year was almost exactly the same way in terms of you did first half and then expectations for the second half. If you could point out the differences internally, you know, where you have a line of sight to things, I would say, you know, beyond just kind of the fed rate cut, but things that you're actually seeing in front of you, they give you more confidence this year versus last year, they'll be helpful.

Philip Snow: Yes. Sure. Thanks, Shlomo. Yes, so philosophically there's really been--there haven't been a big change. We have always focused on growth and we've also focused on delivering a cash flow and earnings to the market. You've been covering us for a long time. So, we take a lot of pride in that balance. It's been a while since we consistently grew in double digits. I mean, at least a decade, but we do aspire to get back to high single digits; I think that's something we would like to do. And, this is like in my tenure at the company, this is sort of the third sort of 2 or 3-year period where it's been a really tough market. And a lot of what we've experienced in the last 2 years has just been market pressure on us, I think, executing against that.

limo: Yes, sure, thanks, limo. Yeah, so philosophically, there's really been, I don't, there hasn't been a big change.

limo: We have always focused on growth, and we've also focused on delivering cash flow in and in the mix of the market. You've been covering this for a long time, so we take a lot of pride.

limo: in that balance.

limo: It's been a while since we consistently grew in double digits, I mean at least a decade.

limo: but we do aspire to get back to high-singles it is I think that's something we would like to do and you know this is like in my tenure at the company this is sort of the third

limo: sort of two or three year period where it's been a really tough market and I think so a lot of what we've experienced in the last few years has just been, you know, market pressure on us.

Phil Snow: You know, market pressure on us, I think executing against that, so I think part of what you saw there in terms of our focus on margin was just really to continue to deliver, you know, good earnings growth to the market, so no huge change there. You know, I think we were, you know, a bit more optimistic last year that it, you know, that the headwinds would dissipate more quickly; they didn't. But I do think now that, you know, I think we feel more confident that the market's going to be more constructive, and we've just done, we've done such a lot to evolve the platform. I think we're very well positioned to help clients at a much larger level than we did historically.

You know, market pressure on us, I think executing against that,

So, I think part of what you saw there in terms of our focus on margin was just really to continue to deliver good earnings growth to the market. So, no huge change there. I think we were a bit more optimistic last year that the headwinds would dissipate more quickly; they didn't. But I do think now that--I think we feel more confident that the market's going to be more constructive, and we've just done such a lot to evolve the platform. I think we're very well positioned to help clients at a much larger level than we did historically.

limo: I think executing against that, so I think part of what you saw there in terms of our

limo: Focus on margin was just really the...

Speaker Change #146: for the Kittleton Institute Deliverer.

Speaker Change #146: You know good earnings growth to the market so...

Speaker Change #146: No huge change there.

Speaker Change #146: I think we were a bit more optimistic last year that the headwinds would dissipate more quickly, they didn't.

Speaker Change #146: But I do think now that I think we feel more confident that the market is going to be more constructive and we've done such a lot to evolve the platform, I think we're...

Phil Snow: So, the name of the game now for us has got to be 7 and 8 good deals; that's what's going to move the top line. I think we're in a great position to do that. On the flip side, we're very focused on efficiency as well. I do think there's a good opportunity for FactSet to be more efficient, and whether or not we choose to invest that in more product or not is the question. And Generative AI certainly is going to play a part for us as it does when we think about building products for our clients.

Speaker Change #146: Very well positioned to help clients at a much larger level than we did historically. So the name of the game now for us has got to be seven or eight figure deals. That's what's going to move the module. Move the top line, sorry. I think we're in a great position to do that.

Speaker Change #146: On the flip side, you know, we're very focused on efficiency, as well I do think there's a good opportunity for the fact that to be more efficient and whether or not we choose to invest that in more products and others, the question and generative AI certainly is going to help play a part for us as it does, you know, and we think about building products for our clients.

Goran Skoko: Shlomo, just maybe to follow-up on the second part of your question, I think what gives us increased confidence I already mentioned it, but I think the level of innovation and new product that we have delivered this year. We really believe that that's going to contribute to the second half in the projections are more optimistic than the first half. So, we're not counting on the market, necessarily turning, but I think just that in a product pipeline and what we think we can deliver based on that.

Speaker Change #146: Thank you. You know, Shoma just maybe to follow up on the second part of your question, I think would.

Speaker Change #147: gives us increased confidence, our dimension is, but I think the level of innovation and new product that we have delivered this year we really believe that that's going to contribute to the second half in a projections, there's more of the mistakes in the first act.

Speaker Change #147: So we are not counting on the market necessarily turning, but I think just that product pipeline and what do we think we can deliver based on that?

Operator: Our next question comes from the line of Scott Wurtzel with Wolfe Research. Your line is open.

Speaker Change #148: Thank you.

Phil Snow: Our next question comes from the line of Scott Wurtzel with Research. Yalena Sopin. Hey guys, thanks for squeezing me in here. Just wanted to go back to some of the commentary on the data expansion side of your sort of strategic investment plan with deep sector private markets in real time. Just wanted to maybe get a little bit more color on sort of how that's coming up and maybe impacting your conversations with clients specifically on the renewal side. And then I know we'll probably hear more about this at Investor Day.

Our next question comes from the line of Scott Wurtzel with Research. Yalena Sopin.

Scott Wurtzel: Hey guys, thanks for squeezing me in here. Just wanted to go back to some of the commentary on the data expansion side of your sort of strategic investment plan with deep sector, private markets in real time. Just wanted to maybe get a little bit more color on sort of how that's coming up and maybe impacting your conversations with clients specifically on the renewal side. And then I know we'll probably hear more about this at Investor Day, but if you can kind of give us a sense of maybe sort of the road map on the product side with those 3 initiatives would be great. Thank you.

Speaker Change #148: on the line of Scott Wartsil with what's research, your line is open.

Scott Wartsil: Hey guys, thanks for squeezing me in here. I'm just wanted to go back to some of the commentary on the data expansion side of your sort of strategic investment plan with Chief sector private markets and real time. Just wanted to maybe get a little bit more color on sort of how that's coming up and maybe impact your conversation with clients specifically on the renewal side. And then I know we'll probably hear more about this ad investor day, but if you can give us a sense of maybe sort of the roadmap on the product side with those three initiatives would be great. Thank you.

Gordon Scoco: But if you can, got to give us a sense of maybe sort of the road map on the product side with those three initiatives, will be great. Thank you. Yeah.

But if you can, got to give us a sense of maybe sort of the road map on the product side with those three initiatives, will be great. Thank you.

Yes. So, why don't we start with real time? I'm going to ask Goran here because he has a lot of experience with this. And I think we're at a good inflection point. Yeah, so I think we continue to make excellent product in this area. You know, we had a very large win on the real time couple of years ago. You know, I think the client has gone live with all of their deliverables. You know, we're quite part of the progress there. You know, all of the in terms of the content coverage and adding all of the over the counter type or content, all of it is falling for the product we're excited in terms of the opportunity there.

Philip Snow: Yes. So, why don't we start with real time? I'm going to ask Goran here because he has a lot of experience with this. And I think we're at a good inflection point.

Gordon Scoco: So why don't we start with real time? I'm going to ask Lauren here because he has a lot of experience with this. And I think we're we're we're at a good inflection point. Yeah, so I think we continue to make excellent product in this area. You know, we had a very large win on the real time couple of years ago. You know, I think the client has gone live with all of their deliverables. You know, we're quite part of the progress there. You know, all of the in terms of the content coverage and adding all of the over the counter type or content, all of it is falling for the product we're excited in terms of the opportunity there.

Lauren: Yeah, so so why don't we start with real time? I'm going to ask Lauren here because he has a lot of experience with us and I think we're at a good inflection point Yeah, so I think we continue to make excellent product in a area

Goran Skoko: Yes, so, I think we continue to make excellent product in this area. We had a very large win on the real time couple of years ago. I think the client has gone live with all of their deliverables. And we're quite proud of the progress there. In terms of the content coverage and adding all of the over-the-counter type or content, all of it is flowing through the product. We're excited in terms of the opportunity there.

Lauren: You know we had a very large large wind on the real time couple of years ago, you know things the client has gone live with all of their deliverables, you know, and we're quite proud of the progress there.

Lauren: You know, all of the, you know, in terms of the content coverage and adding all of the, over the content, all of it is flowing through the product, we're excited in terms of the opportunity there.

Gordon Scoco: I'll add on the deep sector a little bit as well. So, we continue to make excellent product progress there. We have in a multiple clients engaged with us in terms of delivering really a desk-by-desk in terms of, the sector coverage and are really encouraged by the level of client engagement and product progress in that area.

Lauren: I'll add on the deep sector a little bit as well so we continue to make excellent product or progress there we have

Lauren: in a multiple clients engaged with us in terms of delivering really, you know, death by death in terms of, you know, the sector coverage and you know, are really encouraged by the level of client engagement and the product progress in that area.

Gordon Scoco: And in private markets, we continue to invest there. Obviously, a lot of different firms are interested in that for different reasons. I think the biggest highlight for us is we've doubled our coverage to I believe around 9 million companies or securities, and just just increasingly better data. So, that's a great underpinning for our efforts in banking, in private equity, venture capital. Asset owners are looking at that. There's a lot of ways that we're able to monetize that investment. Great. Thanks, guys.

And in private markets, we continue to invest there. Obviously, a lot of different firms are interested in that for different reasons. I think the biggest highlight for us is we've doubled our coverage to I believe around 9 million companies or securities, and just just increasingly better data. So, that's a great underpinning for our efforts in banking, in private equity, venture capital. Asset owners are looking at that. There's a lot of ways that we're able to monetize that investment.

Lauren: In the private markets, we continue to invest their obviously, you know, a lot of different terms are interested in that for different reasons.

Lauren: We've really, I think the biggest highlight for us is we doubled our coverage to I believe around 9 million you know companies or securities and just increasingly better data.

Lauren: A great underpinning for our efforts in banking, in private equity venture capital. Asset owners are looking at that, there's just a lot of ways that we're able to monetize that investment.

Scott Wurtzel: Great. Thanks, guys.

Operator: Ladies and gentlemen, I'm showing no further questions in the queue. I will now turn the call back to Phil for closing remarks.

Unknown Executive: Ladies and gentlemen, I'm sure I know further questions than the queue. I will now call back to fill for closing remarks.

Speaker Change #151: Great, thanks for that.

Speaker Change #152: Welcome. Thank you.

Unknown Executive: I will now call back to fill for closing remarks. Thank you. So I just want to really thank Helen and the entire sales team for really closing out the year in such a great way. I think that's encouraging for the upcoming year. And I want to thank all of you on the call and all fax others from the hard work they did this year.

I will now call back to fill for closing remarks.

Speaker Change #153: Ladies and gentlemen, I am showing you a further question than the cue. I will now move on the call back to feel for closing remarks.

Philip Snow: Thank you. So, I just want to really thank Helen and the entire sales team for really closing out the year in such a great way. I think that's encouraging for the upcoming year. And I want to thank all of you on the call and FactSetters for the hard work they did this year.

Speaker Change #154: Thank you. So I just first want to...

Speaker Change #155: really thank Helen and the entire sales team for...

Speaker Change #156: Really closing out the year in such a great way, I think that's...

Speaker Change #157: That's encouraging for the upcoming year.

Speaker Change #156: and I want to thank all of you on the colonel facts that is from the hard work they did this year.

Phil Snow: And we look forward to seeing you all at Investor Day on November 14th. I think it's just going to be well worth your time. We're going to show some really innovative products and talk about the future and what you can expect from FactSet. Thank you.

Speaker Change #156: and we look forward to seeing you all at Investor Day on November 14th. I think it's going to be well worth your time. We're going to show some really...

Speaker Change #156: Innovative products and talk about the future and what you can expect from facts up.

Operator: Ladies and gentlemen, this concludes today's conference call. Thank you for your participation. You may now disconnect.

Speaker Change #156: Thank you.

Speaker Change #158: Ladies and gentlemen, this concludes today's conference call. Thank you for your participation. You may now disconnect.

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