The earnings call for Fasa's third fiscal quarter of 2025 is introduced, with the speaker noting that the presentation can be found on the company's website. Forward-looking statements and non-GAAP financial measures are discussed, emphasizing the recurring nature of revenues. The CEO, CFO, and CRO are mentioned as attendees, and changes in reporting metrics are highlighted.

The CEO announces retirement after a decade in the role, highlighting achievements and growth. Sano Viswanath is named as the next CEO. The company reports 3rd quarter organic ASV growth of 8.8% year-over-year, driven by successes in wealth, dealmakers, and partnerships. Adjusted operating margin and diluted EPS are also noted. The CEO emphasizes strong client retention and growth, especially in the Americas, EMEA, and Asia Pacific regions. Positive trends in ASV retention and accelerated expansion within existing accounts and new business are reported. The company reaffirms its FY guidance and discusses strategic wins, product strengths, and market share gains across various sectors including wealth management, banking, and institutional buy-side.

The pipeline for the remainder of the year is heavily influenced by institutional buy-side demand, particularly for middle office solutions and managed services. Innovation using Gen AI in buy-side solutions is fostering strong client engagement and opportunities. Data solutions, including fundamental and estimates data, are expected to significantly contribute to Q4 results, driven by hedge funds and wealth management. Wealth remains a growth engine, with expanding demand for sophisticated tools and services beyond the advisor desktop. The company is leveraging its first mover advantage in Gen AI to deliver innovative solutions that enhance workflow efficiency, positioning it well to fulfill its mission of supercharging financial intelligence.

The company reports strong third-quarter performance with a 4.5% year-over-year organic ASV growth and a 5.9% increase in GAAP revenues. It reaffirms its guidance for FY 25, highlighting solid pipeline and investments in technology, particularly generative AI capabilities, to drive market leadership and operational efficiency. Despite increased operating expenses, the company demonstrates commitment to shareholder returns through share repurchases and dividend increases, and announces a new $400 million share repurchase authorization. The leadership expresses gratitude towards outgoing leader Phil and welcomes Sino for the next phase of growth, emphasizing a client-first approach.

Despite the ongoing macro environment, the company observes a positive turn in ASP growth after over a year of sequential declines. This improvement is attributed primarily to better execution, product maturation, and the resonance of data solutions with clients, particularly in the buy-side offerings. The momentum is also fueled by specific products like Pitch Creator and the conversational API, contributing to a more positive client reaction and increased pipeline for the year.

The discussion focuses on the unchanged guidance range for the fourth quarter, with an analysis comparing current banking performance to previous years to assess potential upside or downside risks.

The company is significantly ahead of previous years, with growth expected to be driven by the Americas and EMEA regions. The core workstation business remains flat, while enterprise solutions and the feeds business show strong momentum. Top deals for Q4 are largely from institutional asset management, with improved retention and visibility into cancellations boosting confidence in meeting projections. The pipeline is diverse across deal sizes and solutions, providing additional confidence in achieving the guided range for the quarter.

A question is raised regarding the outlook for fiscal 26, with a focus on whether there will be further acceleration beyond the fourth quarter. The response emphasizes current focus on executing the present quarter's targets and notes that trends will likely continue, with detailed guidance planned for the September call.

The speaker highlights ongoing efforts to optimize costs and streamline vendor relationships in the asset management sector, noting recent headwinds but a promising Q4 forecast. They emphasize the competitive nature of the business and the strategy to provide best-in-class point solutions for asset owners. Partnerships with key firms in the space are mentioned, along with expectations for future improvements and the development of total portfolio solutions.

The company is executing its investment plan across three pillars: data expansion, deeper embedding in genetic workflows, and accelerating through the Geni roadmap. The pace of investments has increased throughout the year, and the spend will continue on expertise for solutions like GenAI, supporting acquisitions integration, and increasing technology costs. The company expects to deliver the adjusted operating margin within the guidance range of 36 to 37% for the full year, with the fourth quarter margin potentially lower due to these investments.

The discussion highlights the focus on utilizing generative AI internally to improve efficiency, particularly in areas such as code production for developers, reducing administrative tasks for client-facing employees, and automating data collection. The strategy involves leveraging AI to increase productivity and allow more time for high-value activities, with a long-term vision of integrating these technologies over the next three years.

Investments in Gennai are enhancing output and efficiency, demonstrated by doubled cost street events coverage, 10% improvement in engineering output, expanded street account, and AI-generated content speeding up projects. These improvements contribute to flat or reduced headcount growth, showcasing benefits across sales, engineering, and product development.

The company anticipates margins to comfortably land within the guidance range despite recent acquisition dilution, with plans for operating leverage through lower hiring and efficiency improvements. Cost adjustments, excluding one-time items and acquisitions, show a year-over-year increase of about 10% to 11%, significantly impacted by bonus accruals and compensation adjustments. Technology expenses, particularly in cloud and internal use software amortization, are notably higher, while efforts are being made to manage third-party costs.

The sales force experiences flat growth overall, with increased investment focused on product specialty areas. The next question is from Tony Kaplan with Morgan Stanley.

The speaker discusses the adoption of Pitch Creator, noting that most current deals involve existing clients integrating it into their solutions. While the tool has been available for less than five months, it is significantly contributing to the sentiment of deals in the pipeline and is expected to aid in acquiring new business and cross-selling/up-selling to current clients. Additionally, inquiries are made about competing products in the marketplace, acknowledging Pitch Creator's pioneering role.

The conversation revolves around understanding the broad range of outcomes for the final quarter, emphasizing the portfolio of opportunities and the absence of any significant negative factors. The speaker highlights being well ahead compared to the previous year and the focus on executing a large number of deals, with guidance swings designed to reflect potential market variability.

The company highlights an increased focus on addressing data pollution, attributing the momentum to a broader suite of data offerings, including real-time pricing, corporate actions, and reference data capabilities. Recent organizational changes, such as integrating the CTS business into the data division, aim for greater consistency in data delivery. Enhanced sales strategies and investments in real-time exchange data feed and price reference data are also contributing to significant improvements in the data sales segment, responding to the growing demand for data in the current market environment.

The company is on track to meet its projected 30 to 50 basis point contribution from Gen AI to ASV this year. Multiple Skus are achieving seven-figure monetization across six different fronts, with the sell side adopting faster than the buy side. Optimism surrounds the portfolio commentary product, especially with the recent release of its fixed income component, expected to boost adoption. The team is focusing on developing genic workflows, evolving from foundational capabilities to creating interactive agents, anticipating continued momentum and growth in the next couple of years.

A discussion highlights the excitement around a partnership with Omni to establish a gold standard for private market identifiable with QCP. Significant efforts are being made to collaborate with various funds, particularly in private credit, to build momentum in this area.

The speaker discusses having ample liquidity to support growth, considering both organic expansion and inorganic growth through acquisitions. They also mention increasing the share buyback program, aiming to take advantage of market dislocations, and maintaining a focus on shareholder return.

Despite challenges and cost pressures in EMEA, confidence in the region's growth is bolstered by improved retention, a strong and diverse pipeline, and the expectation of accelerated momentum in Q4. The annual price increase headwind is also expected to dissipate, contributing to a positive outlook.

The discussion focuses on the deceleration of pricing contributions in EMEA and APAC due to lower CPI increases. Strategies including annual price increases and product-level pricing adjustments are highlighted, noting selective rate card raises and stabilization of new business price realization. Competitive changes and their impact on pricing in various sectors such as corporate, hedge funds, wealth management, asset management, and asset owners are also addressed.

The CEO expresses gratitude for the company's strong momentum and confidence in meeting full year targets, highlighting successful partnerships and focus on client workflow solutions. Announcing this as their last earnings call, they reflect on a decade of service, achievements, and express confidence in the company's future. They look forward to welcoming the new board and ensuring a seamless transition.