Organic ASV plus Professional Services reached $2,220.4 million, up 5.0% YoY, indicating continued subscription revenue growth. The company is focused on expanding its digital platform and ensuring execution excellence.

Client count increased 3.3% YoY to 8,029, with growth primarily driven by corporate and wealth management clients. User count increased 10.8% YoY, indicating successful expansion into these segments.

Management emphasizes strategic partnerships and acquisitions to accelerate expansion in key areas. The company is actively pursuing opportunities to expand its capabilities and market presence.

Annual ASV retention was greater than 95%, indicating strong customer loyalty and satisfaction. This reflects effective client relationship management and service delivery.

Net employee headcount increased 1.6% YoY, with growth primarily concentrated in Centers of Excellence (COEs) in India and the Philippines. This reflects a strategy to optimize costs and leverage global talent pools.

Management highlights focus on expanding digital platform, ensuring execution excellence, and fostering a growth mindset. These initiatives are aimed at driving sustainable growth and improving efficiency.

The company has filed petitions with the Appellate Tax Board to appeal all amounts assessed by the Commonwealth and believes that they will ultimately prevail; however, if they do not prevail, the amount of these assessments could have a material impact on our consolidated financial position, results of operations and cash flows.

As we operate globally, we are exposed to the risk that our financial condition, results of operations and cash flows could be impacted by changes in foreign currency exchange rates. As of May 31, 2024, we maintained a series of foreign currency forward contracts to hedge a portion of our primary currency exposures.

We are exposed to credit risk for our cash and cash equivalents held in financial institutions in the event of a default, to the extent that such amounts are in excess of applicable insurance limits; however, we do not believe our concentration of cash and cash equivalents presents a significant credit risk as the counterparties to the instruments consist of multiple high-quality, credit-worthy financial institutions.

The increase in revenues was driven by increased sales to existing clients and, to a lesser extent, price increases to existing clients and sales to new clients, partially offset by existing client cancellations. Revenues increased due to higher demand and price increases primarily from workstations, data solutions and middle office solutions.

We are scaling up our content refinery to provide a comprehensive inventory of industry, proprietary and third-party data. This includes granular data for key industry verticals, real-time data, fund data and sustainable finance.

In addition, we are working to expand our use of artificial intelligence to drive efficiencies for our clients, with anticipated initiatives including automation of tasks and integration of natural language queries.

Operating margin increased 17.7% to $202.5 million for the three months ended May 31, 2024, compared with $172.0 million in the prior year period. This increase was primarily driven by growth in revenues and a decrease in employee compensation costs.

Employee compensation costs decreased primarily due to a one-time payroll tax adjustment and a decrease in salaries. The decrease in salaries was mainly driven by a net headcount reduction of 200 employees and higher capitalization of compensation costs related to the development of our internal-use software, partially offset by annual merit increases.

This net headcount growth was primarily due to our continued investment in our centers of excellence (“COEs”), particularly through expanding our talent pool in our India and Philippines locations. Our COEs account for approximately 68% of our employees.

The cash used in investing activities was primarily related to capital expenditures of $59.7 million mainly driven by the capitalization of internal-use software development costs and $44.9 million in investments, primarily related to the purchase of mutual funds.

We are scaling up our content refinery to provide a comprehensive inventory of industry, proprietary and third-party data. This includes granular data for key industry verticals, real-time data, fund data and sustainable finance.

In addition, we are working to expand our use of artificial intelligence to drive efficiencies for our clients, with anticipated initiatives including automation of tasks and integration of natural language queries.

The company repurchased $59.8 million of shares in Q3 2024, a decrease from prior periods. $128.1 million remains authorized for future repurchases, indicating a continued commitment to returning capital to shareholders.

In the third quarter of fiscal 2024, our Board of Directors approved a 6% increase in the regular quarterly dividend from $0.98 to $1.04 per share. Fiscal 2024 marked the 25th consecutive fiscal year we have increased dividends on a stock split-adjusted basis

The cash used in investing activities was primarily related to capital expenditures of $59.7 million mainly driven by the capitalization of internal-use software development costs and $44.9 million in investments, primarily related to the purchase of mutual funds.

The 10Q filing does not contain any information related to ESG initiatives.

Q3 revenue reached $552.7M, up 4.3% YoY, a deceleration from prior periods. Management attributed the slower growth to increased competition and macroeconomic uncertainty, impacting client spending decisions.

We are scaling up our content refinery to provide a comprehensive inventory of industry, proprietary and third-party data. This includes granular data for key industry verticals, real-time data, fund data and sustainable finance.

In addition, we are working to expand our use of artificial intelligence to drive efficiencies for our clients, with anticipated initiatives including automation of tasks and integration of natural language queries.