FactSet Q2 2021 Revenue Up 6%

FactSet (NYSE:FDS) (NASDAQ:FDS), a global provider of integrated financial information, analytical applications, and industry-leading service, has announced results for its second quarter ended February 28, 2021.

Second Quarter Fiscal 2021 Highlights

Revenue increased 6.0%, or $22.0 million, to $391.8 million compared with $369.8 million for the same period in fiscal 2020. The increase is primarily due to higher sales of analytics and content and technology solutions (CTS). Organic revenues grew 4.9% to $389.2 million during the second quarter of fiscal 2021 from the prior year period.
Annual Subscription Value (ASV) plus professional services was $1.6 billion at February 28, 2021, compared with $1.5 billion at February 29, 2020. The organic ASV plus professional services growth rate, which excludes the effects of acquisitions, dispositions, and foreign currency movements, was 5.5%. The primary contributors to this growth were higher sales of research and CTS solutions offset by lower sales of analytics solutions. Please see the “ASV + Professional Services” section of this press release for details.
Operating margin increased to 29.6% compared with 28.7% for the same period last year. Adjusted operating margin improved to 32.6% compared with 31.8% in the prior year period primarily as a result of reduced employee-related operating expenses due to the coronavirus pandemic.
Diluted earnings per share (EPS) increased 8.7% to $2.50 compared with $2.30 for the same period in fiscal 2020. Adjusted diluted EPS rose 6.7% to $2.72 compared with $2.55 in the prior year period primarily driven by an improvement in operating results partially offset by a higher tax rate.
The Company’s effective tax rate for the second quarter increased to 15.7% compared with 14.0% a year ago, primarily due to lower windfall tax benefits from stock-based compensation compared with the three months ended February 29, 2020.
The Board of Directors of FactSet approved an increase of $206 million to the Company’s existing share repurchase program on March 23, 2021, bringing the total amount available for repurchase under this program to $350 million.
FactSet has increased the lower end of its organic ASV plus professional services outlook to $70 million from $55 million. FactSet reaffirms other metrics of its annual outlook for fiscal 2021. Please see the “Annual Business Outlook” section of this press release for details.

“I am proud of how we executed this quarter, resulting in a solid first half of our fiscal 2021,” said Phil Snow, CEO, FactSet. “In our second quarter we saw a number of key wins validating our strategy for long term growth. Our focus on digital transformation, content expansion, and being an open platform continues to resonate with our clients as they navigate a rapidly evolving landscape.”

“Our sustained cost discipline, productivity and continued execution of our investment plan have resulted in solid operating results and allow us to raise the lower end of our full-year organic ASV range to $70 million from $55 million,” said Helen Shan, CFO, FactSet. “We enter our fiscal second half with good momentum and remain focused on delivering significant value to our clients and shareholders.”