You are reviewing Q3 results for a mid-sized financial data and analytics company, and the revenue shown in a FactSet workstation company screening output does not match the revenue in the company's 10-Q and internal model. Your portfolio manager wants to know whether the issue is a source-data error, a timing/classification difference, or a modeling mistake before the team updates valuation work. Assume U.S. GAAP and that the company reports both total revenue and segment revenue, with no acquisitions closed during the quarter. You need to quantify the discrepancy and explain how you would isolate the root cause.
| Metric | Amount |
|---|---|
| Q3 total revenue in 10-Q | $512.0M |
| Q3 total revenue in FactSet screening output | $498.5M |
| Q3 subscription revenue in 10-Q | $462.0M |
| Q3 services revenue in 10-Q | $50.0M |
| Q2 total revenue in FactSet screening output | $486.0M |
| Q3 deferred revenue, beginning of quarter | $138.0M |
| Q3 deferred revenue, end of quarter | $151.5M |
| Q3 cash collected from customers | $525.5M |
How would you reconcile the discrepancy, what headline adjustment would you make to your model today, and how would you determine whether the mismatch is coming from source mapping, period alignment, or revenue recognition treatment in the data feed?