Factset Research Systems Inc (NYSE:FDS) stock rose 0.10% (As on December 19, 11:29:45 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the first quarter of FY 24. The company’s Annual Subscription Value (ASV) plus professional services was reported at $2,184.6 million as of November 30, 2023, a 7.1% increase from the previous year’s $2,039.0 million. This growth reflects the company’s strong sales performance, particularly in the Wealth segment and increased sales of data. Organic ASV plus professional services was $2,185.0 million at November 30, 2023, up 7.1% or $145.3 million year over year. Organic ASV plus professional services increased $14.3 million over the last three months. FactSet’s client count stood at 7,945, with a net increase of 24 clients over the past three months. The user count also saw a significant increase, adding 17,111 users, largely driven by wealth management clients. The company’s annual ASV retention rate remained high at over 95%. From a regional perspective, the Americas led with an organic ASV increase of 7.9%, followed by the Asia Pacific with an 8.0% increase, and EMEA with a 5.4% increase. These figures underscore FactSet’s strong performance across its key markets. FactSet’s balance sheet remains solid, with cash and cash equivalents totaling $411.9 million. The company generated $155.1 million in net cash from operating activities, a significant increase from the $106.6 million reported in the first quarter of fiscal 2023. Free cash flow also saw a substantial increase, rising by 56.4% to $138.7 million.

FDS in the first quarter of FY 24 has reported the adjusted earnings per share of $4.12, beating the analysts’ estimates for the adjusted earnings per share of $4.11. The company had reported the adjusted revenue of $542.2 million in the first quarter of FY 24, beating the analysts’ estimates for revenue of $540.34 million. Adjusted operating margin decreased to 37.6% compared with 38.3% in the prior year period driven by higher technology expenses partially offset by lower facilities expenses, professional services and travel and entertainment expenses. EBITDA increased to $219.0 million, up 9.3% for the first quarter of fiscal 2024 compared with $200.4 million for the same period in fiscal 2023.

Looking ahead, FactSet has updated its fiscal 2024 guidance. The company now expects organic ASV plus professional services growth in the range of $110 million to $150 million, representing a 6% growth at the midpoint.