FactSet $FDS-0.8%, which operates a digital platform and software for analyzing economic and financial data, reported its results for the 4Q fiscal year 2023, which ended August 31, 2023, at yesterday's after-market close. On an adjusted earnings per share basis for the 4Q, FactSet missed the average analyst estimate. The outlook for the upcoming year is also below analyst consensus.
FactSet reported organic revenue growth of 7.2% for the final quarter of fiscal 2023, compared to the average analyst estimate of 7.26%. The company's adjusted operating profit rose 14% year-over-year to $180.1 million. This exceeded expectations of USD 166.5 million. USD 166 MILLION. Adjusted operating margin rose 210 basis points from last year's 4Q to 33.6%, exceeding consensus of 32.1%.
FactSet generates the largest share of revenue in the domestic market, where it grew 6.1% to $343.3 million last quarter. FactSet's revenue was up by USD 346.7mn on expectations of USD 346.7mn. The EMEA region (Europe, Middle East and Africa) recorded the highest growth of 9.7%. In this region, revenue was EUR 138.6 million. This was USD 138.7 million, beating the analyst consensus of USD 135.7 million. USD 135 MILLION. The Asia-Pacific region generated $53.9 million in revenue. The Asia-Pacific region contributed USD 53.5mn to the USD 52.6mn forecast. THE COMPANY'S FORECAST FOR THE ASIA PACIFIC REGION WAS USD 5.5 BILLION.
The number of clients rose 5.1% year-on-year to 7,921, compared to market expectations of 7,895 at the end of the fiscal year. Expectations of 191.6k were not exceeded by the number of users, which rose 5.6% y-o-y to just under 190k.
Outlook for fiscal year 2024
Along with the results, FactSet also released its outlook for the upcoming fiscal year 2024. At the revenue level, it matched market estimates with its high end of the range of $2.21 billion to $2.23 billion. The company expects adjusted earnings per share in the range of $15.65 to $16.15, falling short of analysts' expectations of $16.66. The adjusted operating margin outlook of 36.3%-37.7% also misses consensus, which was 36.1%.
Word from the CEO
"During a transformational period where technology is changing our business, our FactSet open platform strategy is finding resonance with clients looking for new sources of growth and greater efficiencies," said FactSet CEO Phil Snow.