FactSet a global provider of integrated financial information, analytical applications, and industry-leading service, has announced results for its second quarter ended February 29, 2020.

Second Quarter Fiscal 2020 Highlights

  • Revenue increased 4.2%, or $14.9 million, to $369.8 million compared with $354.9 million for the same period in fiscal 2019. The increase is primarily due to higher sales of analytics, wealth management solutions, and content and technology solutions (CTS). Organic revenues grew 4.2% to $371.0 million during the second quarter of fiscal 2020 from the prior year
  • Annual Subscription Value (ASV) plus professional services was $1.50 billion at February 29, 2020, compared with $1.44 billion at February 28, 2019. The organic growth rate, which excludes the effects of acquisitions, dispositions, and foreign currency movements, was 4.3%. The primary contributors to this growth since the first quarter of 2020 were higher sales in FactSet’s analytics, CTS, and wealth workflow solutions and a price increase in the Americas Please see the “ASV + Professional Services” section of this press release for details.
  • Operating margin decreased to 28.7% compared with 30.6% for the same period last year. Adjusted operating margin decreased to 8% compared with 33.2% in the prior year period primarily as a result of higher costs related to the Company’s three-year investment plan.
  • Diluted earnings per share (EPS) increased 5.0% to $2.30 compared with $2.19 for the same period in fiscal 2019. Adjusted diluted EPS rose 5.4% to $2.55 compared with $2.42 in the prior period primarily driven by a lower tax rate partially offset by lower operating
  • The Company’s effective tax rate for the second quarter decreased to 14.0% compared with 18.8% a year ago, primarily due to higher tax benefits from stock-based compensation exercises in the second quarter of
  • FactSet updated its annual guidance for organic ASV plus professional services. Please see the “Annual Business Outlook” section of this press release for

“We performed well in our second quarter and continued to execute successfully against our three-year investment plan,” said Phil Snow, FactSet CEO. “I am most proud, however, of the way the FactSet community has united to support its members and our clients during this challenging period. While we proceed with caution for the remainder of the year due to the heightened impact and uncertainty surrounding the coronavirus pandemic, our commitment to our team and our clients remains absolute.”

Source:  FactSet Earnings Release