Factset Research Systems Inc (NYSE:FDS) stock fell 1.37% (As on September 20, 11:19:48 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the fourth quarter of FY 24. During the fourth quarter, FactSet took a charge of approximately $54 million related to the previously disclosed Massachusetts sales tax dispute. In addition to reserves taken in prior fiscal years, this brings our total charge with respect to this matter to approximately $64 million. FactSet does not anticipate taking additional material charges with respect to this matter. Net cash provided by operating activities was $163.2 million for the fourth quarter of fiscal 2024, driven by net income and timing of payments to vendors. Free cash flow decreased to $137.2 million for the fourth quarter of fiscal 2024, compared with $156.3 million for the same period in fiscal 2023, a decrease of 12.2%, primarily due to lower net cash provided by operating activities and an increase in capital expenditures.

Moreover, Client count as of August 31, 2024 was 8,217, a net increase of 188 clients in the past three months, with increases driven by wealth, corporates, hedge funds and partners. The count includes clients with ASV of $10,000 and more. User count increased by 8,241 to 216,381 in the past three months driven primarily by wealth and seasonal bank hiring. Organic revenues grew 5.0% year over year to $562.8 million during the fourth quarter of fiscal 2024. Growth in GAAP and Organic revenues this quarter was driven by wealth, banking, institutional asset managers and asset owners. Annual Subscription Value (“ASV”) plus professional services was $2,276.0 million at August 31, 2024, compared with $2,174.6 million at August 31, 2023. Organic ASV plus professional services was $2,272.8 million at August 31, 2024, up 4.8% or $104.4 million year over year.

FDS in the fourth quarter of FY 24 has reported the adjusted earnings per share of $3.74, beating the analysts’ estimates for the adjusted earnings per share of $3.60, according to Zacks Investment Research. The company had reported the adjusted revenue growth of 4.9 percent to $562.2 million in the fourth quarter of FY 24, beating the analysts’ estimates for revenue of $547.3 million.

FactSet expects full-year earnings in the range of $16.80 to $17.40 per share, Adjusted operating margin is expected to be in the range of 36.0% to 37.0%. with revenue in the range of $2.29 billion to $2.31 billion.