FactSet

Last updated

FactSet Research Systems Inc.
Company type Public
Industry
FoundedSeptember 1978;46 years ago (1978-09)
Founders
  • Howard Wille
  • Charles Snyder
Headquarters Norwalk, Connecticut, U.S.
Number of locations
34, in 19 countries
Key people
F. Philip Snow (CEO)
RevenueIncrease2.svg US$2.09 billion (2023)
Increase2.svg US$629 million (2023)
Increase2.svg US$468 million (2023)
Total assets Decrease2.svg US$3.96 billion (2023)
Total equity Increase2.svg US$1.62 billion (2023)
Number of employees
12,237 (2023)
Website factset.com
Footnotes /references
[1]

FactSet Research Systems Inc., trading as FactSet, is an American financial data and software company headquartered in Norwalk, Connecticut, United States. The company provides integrated data and software. [2] For fiscal year 2023, FactSet's total ASV and professional services revenues were $2.09 billion. [1] FactSet's total market value is approximately $18 billion. [3]

Contents

FactSet provides client support & learning, implementation services, business advisory, data delivery, index services, portfolio data management, and transition services. [4]

FactSet's competitors include Bloomberg L.P., Refinitiv, and S&P Global.

History

1977–1980

FactSet was founded by Howard Wille and Chuck Snyder in 1978. Their partnership began in 1977 when the two worked on Wall Street at Faulkner, Dawkins & Sullivan. [5]

As computers became more prominent at the end of the 1970s, Wille and Snyder thought the industry was changing. When Shearson purchased Faulkner, Dawkins & Sullivan and the company started to expand, Wille and Snyder decided to set out on their own and test their idea for a company that could deliver computer-based financial information. At the time, companies had to purchase raw data directly from a vendor such as Compustat, then hire programmers to make the data user-friendly. Wille and Snyder's vision would offer usable data directly to the client.

Originally, all data was delivered to clients on paper, often by bike messenger. The original namesake product was a program called "Company FactSet," which produced a four-page company analysis report using the Value Line database. Today, users access FactSet's private network via WAN, Internet, and wireless devices.

1981–1989

In the early 1980s, FactSet had fewer than 10 employees. In 1981, Snyder found a way to download data from the FactSet computer into Visicalc, allowing clients to retrieve data from a database directly into a spreadsheet. For the first time, several steps in the process were eliminated, making the data download process dramatically quicker.

In 1984, FactSet added limited screening capabilities, which were expanded in 1988 with the introduction of Universal Screening, which allowed users to stipulate their own screening criteria. Another development was the 1989 release of the company's Private Database Service. Users could now store proprietary data and integrate it with their own information to perform custom analysis. [5]

Former Chairman Philip A. Hadley joined the company as a consultant in 1985. [6]

1990–2000

In 1990, FactSet for Windows was released. That same year, company headquarters moved from New York City to Greenwich, CT.

A London office opened in 1993, the first in Europe. The first Asia-Pacific office opened in Tokyo in 1995.

By the end of 1995, FactSet had fewer than 400 customers including 84 of the United States' top investment managers. The company changed its name in June 1995 to FactSet Research Systems Inc. in preparation for becoming a public company. The company began trading on the New York Stock Exchange in 1996 under the symbol FDS. [7]

In 1997, the company released Portfolio Management Workstation, followed a year later by the Economic Analysis and Company Explorer applications.

The product became easier to use in 1998, with the release of the DIRECTIONS interface and the addition of Online Assistant, a web-based help and reference tool. FactSet introduced 24-hour live telephone support in 1999.

Wille retired from CEO and chairman in May 2000. Snyder served as interim CEO until September of that year, when Hadley was named the new CEO and chairman.[ citation needed ]

2000–2009

In the early 2000s, new products included a portfolio returns product, SPAR (Style, Performance and Risk), that allowed portfolio managers to analyze the risks and performance of their own funds as well as compare them with peer funds; the Data Central application, which allowed subscribers to create and save their own time-series databases; and Marquee, which combined real-time news and stock quotes with security-level analysis. [5] In 2004, the company's sell-side platform, IBCentral, was released.

Also in 2004, the company relocated headquarters and consolidated its three Connecticut offices to Norwalk, CT. Sales topped the $200 million mark for the first time in 2002 and $500 million in 2008.

In 2008, FactSet acquired a copy of the Thomson Reuters WorldScope database, which it develops and markets as FactSet Fundamentals. [8]

2009–2015

In 2009, FactSet combined its DIRECTIONS, Marquee, and IBCentral platforms into one product, called FactSet. [9] The platform combined the features of the previous platforms with new shared online workspaces and faster analytics. Also in 2009, FactSet integrated Data Explorers short selling data on the Factset Research Systems analytics platform. [10]

In January 2010, FactSet and FirstRain announced a partnership that would allow FactSet clients to access FirstRain's web research engine that finds, filters, and analyzes unstructured business data available online. [11]

In June 2008, FactSet completed the acquisition of the Thomson Fundamentals database. [12]

In June 2010, FactSet acquired Market Metrics, a market research firm situated in the United States that is solely focused on surveys conducted on advisor and insurance products. [13]

Highlights of 2011 included the addition of a package for colleges and universities in January, [14] the integration of Proquote trading functionality in April, [15] and the addition of Trucost environmental research data in August. [16]

In June 2012, FactSet acquired StreetAccount, which provides real-time company updates, portfolio and sector filtering, email alerts, and market summaries for investment professionals. [17]

In 2013, FactSet acquired Revere Data, a provider of a line-of-business industry taxonomy, now branded FactSet Revere. [18]

2015–present

On February 9, 2015, FactSet acquired Code Red Inc, a provider of Research Management technology to the financial community. [19]

On October 16, 2015, FactSet completed its acquisition of Portware, LLC, a multi-asset execution management system (EMS) provider. [20]

In December 2016, FactSet acquired Vermilion Software, a client reporting software provider, and CYMBA Technologies, an order management system (OMS) provider. [21]

On March 20, 2017, FactSet acquired BISAM, a performance and risk provider, strengthening its coverage of critical workflows throughout the portfolio lifecycle. [22]

On April 3, 2017, FactSet strengthened its offering to the Wealth Management industry by completing its acquisition of Interactive Data Managed Solutions. [23]

In 2018, FactSet extended its presence in Asia with a new office in Shanghai, [24] celebrated 20 years in Australia [25] and 40 years as a company, and declared strong revenue and EPS growth: “We are proud to have reached many milestones in fiscal 2018. We celebrated 40 years as a company with 38 years of consecutive revenue growth and 22 years of consecutive adjusted EPS growth. This quarter we had the highest reported quarterly ASV in our history. We enter fiscal 2019 with strong momentum and an expanding suite of innovative workflow solutions to drive our growth plans,” Phil Snow, FactSet CEO. [26]

In 2018 FactSet also announced the launch of the Open:FactSet Marketplace, an online platform that offers both financial and alternative data from providers including Alexandria, Estimize, Genscape, and RepRisk. [27]

A key milestone for FactSet in 2018 was the selection to be the primary market data provider for Merrill Lynch Wealth Management (multi-year, enterprise level agreement including datafeeds). FactSet deployed its Market Data solution to more than 15,000 wealth management professionals across Merrill Lynch to provide complete multi-asset class content, analytics and global market data. [28]

In 2020, FactSet acquired Truvalue Labs, a pioneer in AI-driven environmental, social, and governance (ESG) data. Truvalue Labs applies AI-driven technology to over 100,000 unstructured text sources in 13 languages, including news, trade journals, and nongovernmental organizations and industry reports, to provide daily signals that identify positive and negative ESG behavior. Its coverage spans over 20,000 public and private companies and generates short-term, long-term, and momentum scores derived from hundreds of signals. These signals are mapped against the Sustainability Accounting Standards Board (SASB) standards and United Nations Sustainable Development Goals (SDGs), allowing investors to evaluate ESG risk factors and real-world actions and impacts for quantitative analysis and back-testing. The company also works with its well-established Academic Research Network, which helps academic researchers use its data to study ESG trends and market-related behavior.

On December 20, 2021, FactSet joined the S&P 500. [29]

Products and services

Products

FactSet provides data and analytical applications to global buy and sell-side professionals, including portfolio managers, market research and performance analysts, risk managers, sell-side equity researchers, investment bankers, and fixed income professionals. FactSet's Workstation includes real-time news and quotes, company and portfolio analysis, multi-company comparisons, industry analysis, company screening, portfolio optimization and simulation, predictive risk measurements, alpha testing and tools to value and analyze fixed income securities and portfolios. [30]

In November 2020, FactSet furnished over 400 affinity databases and sought to restructure its foundation with inside the cloud to Amazon Web Services (AWS). [31]

Clients

As of August 31,2023, there were around 190,000 users of FactSet. The number of clients subscribed to FactSet stands over 7,900. The annual client retention rate stands at over 95%. [1]

Financials

For the fourth quarter of fiscal year 2021, Non-GAAP revenues increased 6.5% to $1.6 billion compared with $1.5 billion from FYE 2020. The increase is derived from stronger organic revenue growth due to higher sales of analytics, content and technology solutions (CTS), and wealth management solutions, excluding all effects of acquisitions and dispositions completed in the last 12-months. Net Income increased 7.1% to $400 million from $373 million. This $28 million increase can be attributed to the decrease in operating expenses, from $359 million in 2020 to $331 million in 2021. ASV, or annual subscription value, growth rate increased by 14.0% with net increase of nearly 20,000 additional clients, and, in accordance, FactSet's customer retention rate increased from 91% to 95% year over year, as of August 21, 2021. Total Organic ASV plus professional services totaled $1.68 billion, up 7.2% compared to prior year end, "the increase was driven by additional sales in our workflow solutions, primarily in Analytics and Trading, CTS and Research." [32]

Investor concerns

The company receives data from providers such as Barra, Dow Jones, Russell, and Lipper.

Since contractual relationships with third-party vendors can be terminated with one year's notice, the company tries to maintain relationships with at least two vendors for each type of data. [33] Since 2000, FactSet has made close to 15 acquisitions, seven of which have been content providers. [34]

Management

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References

  1. 1 2 3 "FactSet Research Systems Inc. 2023 Annual Report (Form 10-K)". U.S. Securities and Exchange Commission. October 27, 2023.
  2. ↑ Screening for Winners by Rex Moore, The Motley Fool, December 8, 2003.
  3. ↑ https://finance.yahoo.com/quote/FDS/?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAADZGFYVrSmacscvQvsQDfUu8tLpmuMvTnYweQbfW-tosOBgZap-MN723LKl-bb2SvSCb9WFqhk-vpODeL-vmOUeSMiaB0-nMQdiBEdk9T9rLNdk74uAeTuKN8K493-GoRfAp27f2HBBp_uDKgLlCyNIzJ9xuAdOtjxZlyTFFcrvc
  4. ↑ "Yahoo FactSet Profile". Finance.yahoo.com. Retrieved January 28, 2011.
  5. 1 2 3 "Company History". Answers.com. Retrieved January 28, 2011.
  6. ↑ "Philip Hadley – Oak Hill" . Retrieved August 2, 2022.
  7. ↑ "FactSet Research Systems Inc, Form DEF 14A, Filing Date Nov 26, 1996". secdatabase.com. Retrieved May 14, 2018.
  8. ↑ "FactSet completes acquisition of Thomson Fundamentals database copy". Finextra Research. July 24, 2008. Retrieved September 8, 2020.
  9. ↑ Crosman, Penny (September 16, 2009). "FactSet Launches New Data/Analytics Platform – Wall Street & Technology". Wallstreetandtech.com. Archived from the original on July 18, 2011. Retrieved January 28, 2011.
  10. ↑ "Data Explorers' short-selling data integrated on the FactSet platform". Bobsguide. June 11, 2009. Archived from the original on December 30, 2010. Retrieved January 28, 2011.
  11. ↑ "First Rain Announces Reseller Agreement with FactSet | FactSet Research Systems". Factset.com. January 19, 2010. Archived from the original on December 26, 2010. Retrieved January 28, 2011.
  12. ↑ "FactSet completes acquisition of Thomson Fundamentals database copy". Finextra.com. July 24, 2008. Retrieved January 28, 2011.
  13. ↑ "FactSet Acquires Market Metrics". Seeking Alpha. June 15, 2010. Retrieved January 28, 2011.
  14. ↑ "FactSet Announces New Client Package for Academics". FactSet. January 24, 2011. Archived from the original on May 14, 2012. Retrieved May 17, 2012.
  15. ↑ "Proquote, Tbricks/Lime Brokerage, TMX and more..." The Trade. April 13, 2011. Archived from the original on November 4, 2012. Retrieved May 17, 2012.
  16. ↑ "Trucost Gets Its Eco-Data Into More Investors' Hands". GreenBiz. August 17, 2011. Archived from the original on November 4, 2012. Retrieved May 17, 2012.
  17. ↑ "Factset acquires sStreetaccount adds leading news service to workstation" . Retrieved July 24, 2012.[ dead link ]
  18. ↑ FactSet Revere — FactSet Research Systems. Factset.com (2014-04-15). Retrieved on 2015-04-03.
  19. ↑ FactSet Acquires Code Red, Provider of Research Management Technologies NYSE:FDS. Globenewswire.com. Retrieved on 2015-04-03.
  20. ↑ kmccabe. "FactSet Completes Acquisition Of Portware, Execution Management System (EMS) Provider, And Updates First Quarter Fiscal 2016 Guidance — FactSet Research Systems". www.factset.com. Archived from the original on December 8, 2015. Retrieved December 7, 2015.
  21. ↑ "FactSet Acquires Vermilion Software and CYMBA Technologies, Expanding Coverage of the Portfolio Lifecycle". www.factset.com. FactSet Research Systems. Archived from the original on September 25, 2020. Retrieved November 26, 2019.
  22. ↑ "FactSet Acquires BISAM, Leading Performance Measurement Provider and Risk Management Thought Leader". www.factset.com. FactSet Research Systems. Archived from the original on October 1, 2020. Retrieved November 26, 2019.
  23. ↑ "FactSet completes acquisition of interactive data managed solutions". www.factset.com. FactSet Research Systems. Archived from the original on September 30, 2020. Retrieved November 26, 2019.
  24. ↑ "FactSet Extends Global Footprint, Opens Office in Shanghai". www.factset.com. FactSet Research Systems. Archived from the original on September 30, 2020. Retrieved November 26, 2019.
  25. ↑ "FactSet Celebrates 20 Years in Australia". www.factset.com. FactSet Research Systems. Archived from the original on September 25, 2020. Retrieved November 26, 2019.
  26. ↑ "FactSet Reports Strong Revenue and EPS Growth in Fourth Quarter 2018". www.factset.com. FactSet Research Systems. Retrieved November 26, 2019.
  27. ↑ "FactSet Expands Its Data Offering with Launch of Data Marketplace". investor.factset.com. FactSet. Retrieved April 14, 2022.
  28. ↑ "Merrill Lynch Wealth Management Selects FactSet as Primary Market Data provider for all Financial Advisors". www.factset.com. FactSet Research Systems. Archived from the original on September 25, 2020. Retrieved November 26, 2019.
  29. ↑ "Signature Bank, SolarEdge Technologies and FactSet Research Systems Set to Join S&P 500; Others to Join S&P MidCap 400 and S&P SmallCap 600". www.prnewswire.com (Press release). S&P Dow Jones Indices. Retrieved February 5, 2022.
  30. ↑ "FactSet Products on Reuters". Stocks.us.reuters.com. Archived from the original on May 27, 2012. Retrieved January 28, 2011.
  31. ↑ "FactSet Uses AWS To Migrate Database Workloads". Forbes. November 25, 2020. Retrieved November 26, 2020.
  32. ↑ "2021 annual report". FactSet.
  33. ↑ "FACTSET RESEARCH SYSTEMS INC – 10-K – 20091030 – PART_I". Yahoo.brand.edgar-online.com. October 30, 2009. Archived from the original on September 28, 2011. Retrieved January 28, 2011.
  34. ↑ "FactSet Company History | FactSet Research Systems". Factset.com. Archived from the original on December 25, 2010. Retrieved January 28, 2011.
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