FactSet Slashes FY23 Topline Outlook After Mixed Q2 Results

FactSet Research Systems Inc FDS reported second-quarter FY23 sales growth of 19.5% year-on-year to $515.09 million, marginally missing the consensus of $515.47 million.
Organic Annual Subscription Value (ASV) plus professional services was $1.9 billion on February 28, 2023, up 9.1% Y/Y.
Adjusted EPS of $3.80 beat the consensus of $3.69.
GAAP operating margin of 32.9% expanded 430 bps Y/Y. Adjusted operating margin expanded by 330 bps to 37%.
FactSet held $477.3 million in cash and equivalents.
Adjusted EBITDA increased 35.8% to $199.7 million.
"We are pleased with our second-quarter results, reflecting the continued strength of our diverse product portfolio," said Phil Snow, CEO of FactSet. "Our digital platform has allowed us to successfully navigate a challenging operating environment and meet the increased demand for our data and technology."
FactSet had suspended share repurchases, except for potential minor repurchases to offset dilution from grants of stock options, until at least the second half of FY23 to prioritize debt repayment.
FY23 Outlook: FactSet cuts FY23 revenue outlook to $2.080 billion - $2.100 billion, down from the prior $2.100 billion - $2.115 billion, against the consensus of $2.09 billion.
FactSet reiterates adjusted EPS guidance of $14.50 - $14.90 versus the consensus of $14.89.
Price Action: FDS shares closed lower by 0.85% at $415.65 on Wednesday.

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