Factset Research Systems Inc (NYSE:FDS) stock rose 3.25% (As on June 21, 11:15:44 AM UTC-4, Source: Google Finance) after the company posted mixed result for the third quarter of FY 24. FactSet’s Annual Subscription Value (“ASV”) plus professional services was $2.2 billion. Organic ASV plus professional services were $2.2 billion, up 5% year over year. Buy-side and sell-side organic ASV growth rates were 5.3% and 3.7%, respectively. Nearly 82% of organic ASV was generated by the buy-side and the rest by sell-side firms. Organic ASV generated from the United States was $1.4 billion, rising 5.7% from the year-ago quarter. Organic ASV from the EMEA and the Asia Pacific was $565.7 million and $219.2 million, up 4.4% and 6.1% on a year-over-year basis, respectively. FactSet added nine clients in the third quarter of fiscal 2024, driven by an increase in corporate, wealth and partners, thus taking the total to more than 8,029. The annual client retention rate was 90%.

FDS in the third quarter of FY 24 has reported the adjusted earnings per share of $4.4, beating the analysts’ estimates for the adjusted earnings per share by 11.8%, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 4.3 percent to $552.7 million in the third quarter of FY 24, missing the analysts’ estimates for revenue by a slight margin. The adjusted operating income was $218 million, which grew 14.2% from the year-ago quarter and beat our estimate of $201.1 million. The adjusted operating margin of 39.4% increased 340 basis points year over year. Adjusted EBITDA was $239.9 million, marking 16.9% growth from the year-ago quarter and beating our estimate of $209.3 million. FactSet exited the quarter with a cash and cash-equivalent balance of $453.1 million compared with $381.7 million in the second quarter of fiscal 2024. FDS generated $238.2 million in cash from operating activities. However, its capital expenditure was $21.3 million. The free cash flow utilized was $95 million.

For fiscal 2024, the company has reduced its revenue guidance to $2.18-$2.19 billion from the $2.2-$2.21 billion mentioned previously. The revised guided range is lower than the Zacks Consensus Estimate of $2.2 billion. FactSet has raised its guidance for adjusted earnings per share to $16-$16.4 from the $15.6-$16 mentioned previously. The revised guided range is higher than the Zacks Consensus Estimate for earnings of $15.95. The adjusted operating margin guidance has been raised to 37-37.5% from 36.3%-36.7% stated earlier.