FactSet Research Systems Inc. (NYSE:FDS) Q3 2019 Earnings Conference Call Transcript

Jun 25, 2019 • 11:00 am ET

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FactSet Research Systems Inc. (NYSE:FDS) Q3 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good morning. My name is Christine, and I'll be your conference operator today. At this time, I would like to welcome everyone to the FactSet Q3, 2019 Earnings Call. (Operator Instructions) Thank you. Rima Hyder, Vice President, Investor Relations, you may begin your conference.

Executive
Rima Hyder

Thank you, Christine, and good morning, everyone. Welcome to FactSet third fiscal quarter 2019 earnings conference call. Before we begin, I would like to point out that the slides we will reference during the course of this presentation can be accessed via the webcast on the Investor Relations section of our website at factset.com. The slides will be posted on our website as the conclusion of this call. A replay of today's call will be available via phone and on our website. After our prepared remarks, we will open the call to questions from investors. To be fair to everyone, please limit yourself to one question, plus one follow-up.

Before we discuss our results, I encourage all listeners to review the legal notice on Slide 2, which explains the risks of forward-looking statements and the use of non-GAAP financial measures. Additionally, please refer to our Forms 10-K and 10-Q for a discussion of risk factors that could cause actual results to differ materially from these forward-looking statements. Our slide presentation and discussions on this call will include certain non-GAAP financial measures for such measures, reconciliation to the most directly comparable GAAP measures are in the appendix to the presentation and in our earnings release issued earlier today. Joining me today are Philip Snow, Chief Executive Officer and Helen Shan, Chief Financial Officer. I'd now like to turn the discussion over to Philip Snow.

Executive
Philip Snow

Thanks, Rima. And good morning, everyone. I'm pleased to say that we're continuing our long record of steady growth in the second half of our fiscal year with growth -- with growth across all our key metrics, including ASV revenue, EPS and margin, cost pressures in the financial sector remain but clients are looking to invest in technological solutions that drive efficiencies and we continue to benefit from their response to our smarter, more connected data and analytics.

This provides us with the ever growing opportunity to take higher wallet share. Now moving on to the third quarter results. This quarter, our sales team achieved comparable gross sales and expanded our footprint globally at net new clients and users. At the same time, we did see a higher than expected rate of cancellations due to industry wide ongoing cost pressures. We think of our business in half-year increments. And as we pointed out in our last call, we expect our second half to be more weighted towards the fourth quarter. Turning to ASV, analytics and wealth were the main drivers this quarter along with the annual price increase for our international clients. Our ASV this quarter was impacted by a multi-year agreement with a corporate client that came to an end this year. Outside of this cancellation, ASV would have grown in line with