Factset Research Systems Inc (NYSE:FDS) stock fell 3.01% (As on December 20, 11:17:18 AM UTC-4, Source: Google Finance) after the company posted higher than expected results for the first quarter of FY 25. Annual Subscription Value (“ASV”) was $2,265.9 million at November 30, 2024, compared with $2,159.4 million at November 30, 2023. Organic ASV was $2,258.8 million at November 30, 2024, up 4.5% or $98.1 million year over year. Organic ASV increased $3.4 million over the last three months. GAAP operating margin decreased to 33.6% compared with 34.9% for the prior year period, mainly due to an increase in amortization of intangible assets and professional fees, partially offset by growth in revenues and a decrease in employee compensation costs. Net cash provided by operating activities was $86.4 million for the first quarter of fiscal 2025, driven by net income, partially offset by variable compensation payments, resolution of a sales tax dispute and timing of vendor payments. Free cash flow decreased to $60.5 million for the first quarter of fiscal 2025, compared with $138.7 million for the prior year period, a decrease of 56.4%, primarily due to lower net cash provided by operating activities and an increase in capital expenditures.

Moreover, Client count as of November 30, 2024 was 8,249, a net increase of 32 clients in the past three months, driven by an increase in partners, private equity and venture capital and wealth. The count includes clients with ASV of $10,000 and more.

FDS in the first quarter of FY 25 has reported the adjusted earnings per share of $4.37, beating the analysts’ estimates for the adjusted earnings per share of $4.28, according to Analysts polled by FactSet. The company had reported the adjusted revenue growth of 4.9 percent to $568.7 million in the first quarter of FY 25, beating the analysts’ estimates for revenue of $565.1 million. Organic revenues grew 4.7% year over year to $567.7 million during the first quarter of fiscal 2025. Growth in GAAP and Organic revenues this quarter was driven by wealth, asset owners and institutional asset managers.

The financial data company said it continues to expect fiscal 2025 adjusted earnings of $16.80 to $17.40 per diluted share. Analysts polled by FactSet expect $17.20 per share.

Revenue for the fiscal year is anticipated in the range of $2.29 billion to $2.31 billion, unchanged from the previous guidance, issued with fiscal Q4 results. Analysts surveyed by FactSet expect $2.30 billion.