| Type | Public (NYSE: FDS, NASDAQ: FDS) |
|---|---|
| Industry | Computer Services |
| Founded | 1978 |
| Founder(s) | Howard Wille and Charles Snyder |
| Headquarters | Norwalk, Connecticut, USA |
| Number of locations | 24, in 13 countries |
| Revenue | US$641 Million (FY 2010)[1] |
| Operating income | US$220 Million (FY 2010)[1] |
| Net income | US$150.2 Million (FY 2010)[1] |
| Total assets | US$633 Million (FY 2009) [2] |
| Total equity | US$501 Million (FY 2009)[2] |
| Employees | 5,000 |
| Website | factset.com |
FactSet Research Systems (NYSE: FDS, NASDAQ: FDS) is a financial data and software company headquartered in Norwalk, CT. The company provides financial information and analytic software for investment professionals.[3] For fiscal year 2010, FactSet's annual sales were $641 million.
FactSet offers access to data and analytics to analysts, portfolio managers, and investment bankers at global financial institutions. The company does not offer products for individual investors.
FactSet has been listed as one of Forbes’ "200 Best Small Companies" for 13 consecutive years. In 2009, FactSet's rank on the list jumped 30 spots to #28.[4][5] In addition, Forbes listed FactSet as 20th on its list of "The 100 Best Mid-Cap Stocks in America" in 2009.[6] In 2011, FactSet was named to the "100 Best Companies To Work For" by Fortune magazine for the third time.[7] BusinessWeek has also named it as one of the "Best Places to Launch a Career".[8] For the second year in a row, FactSet was named to Glassdoor.com's "50 Best Places to Work" list, coming in at #17 for the year 2010.[9]
FactSet's business focuses on technology and client service. In addition to combining several hundred disparate databases, the company develops and refines its software. FactSet provides clients with local, dedicated consultants, 24-hour phone support, and free training.[10]
Some of its competitors include Bloomberg L.P., Thomson Reuters, and Capital IQ.
Contents |
Products[11]
On September 14, 2009, FactSet launched a new analytics platform, combining functionality from its DIRECTIONS, Marquee, and IBCentral systems. The new FactSet consolidates data and analytics, previously spread across multiple applications, onto one interface.
FactSet integrates several hundred databases from multiple vendors. The applications include company analysis, multi-company comparisons, industry analysis, company screening, portfolio analysis, predictive risk measurements, alpha testing, portfolio optimization and simulation, real-time news and quotes, and tools to value and analyze fixed income securities and portfolios. FactSet is available via wireless devices and is integrated with Microsoft Office applications.[12]
Proprietary Data Content[13]
Services
FactSet was founded by Howard Wille and Charles Snyder in 1978. Their partnership began in 1977 when the two were working on Wall Street at Faulkner, Dawkins & Sullivan, a pioneer of institutional research.[16]
As computers became more prominent at the end of the 1970s, Wille and Snyder knew that the industry was changing. When Shearson purchased Faulkner, Dawkins and 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 first and namesake product was a program called "Company FactSet," which produced a four-page company analysis report using the Value Line database. Today, FactSet users connect to FactSet’s private network via WAN, Internet, and wireless devices.
In the early 1980s, FactSet employees numbered fewer than 10. In 1981, Snyder found a way to download data from the FactSet computer into Visicalc, meaning that clients could 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 important development during the 1980s 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.[16]
Current CEO Philip A. Hadley joined the company as a Consultant in 1985.
FactSet for Windows was released in 1990. 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. Today the company has 23 locations in 11 countries and more than 3,400 employees.
By the end of 1995 FactSet had fewer than 400 customers, but they included 84 of the United States' top investment managers. The company also changed its name in June 1995, becoming 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.[17]
In 1996 the company released Portfolio Management Workstation, which was 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 as CEO and chairman in May 2000, Snyder stepped in as CEO on an interim basis, serving until September of that year, when Hadley was named the new CEO and chairman.
New products in the early 2000s 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.[16] 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.
In 2009, FactSet combined its DIRECTIONS, Marquee, and IBCentral platforms into one product, called simply FactSet.[18] 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.[19]
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.[20]
In May 2010, FactSet completed the acquisition of the Thomson Fundamentals database.[21]
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.[22]
For 2011, FactSet’s 33rd year of operation, the company recorded its 31st consecutive year of revenue growth.[23]
For the quarter ended August 31, 2011, revenues increased to $191.9 million, up 14% compared to the prior year. Operating income for the fourth quarter rose to $59 million from $57.4 million in the same period of fiscal 2010. Net income advanced to $40.9 million as compared to $39.3 million in 2010. Diluted earnings per share increased to $0.88, up from $0.83 in the same period of fiscal 2010.
Income Statement (all numbers in thousands)[24]
| PERIOD ENDING | 31-Aug-11 | 31-Aug-10 | 31-Aug-09 | 31-Aug-08 | 31-Aug-07 |
|---|---|---|---|---|---|
| Total Revenue | 726,510 | 641,059 | 622,023 | 575,520 | 475,801 |
| Net Income | 171,046 | 150,211 | 144,950 | 125,020 | 109,567 |
The FactSet earnings call on Q2 2010 identified the fixed income space as a growth area for FactSet and mentioned that new headcount would be dedicated to attempting to expand fixed income opportunities.[25]
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 [26] Recently the company has attempted to maintain or increase its available content by building its own databases or by acquiring content providers. Since 2000, FactSet has made 10 acquisitions, seven of which have been content providers.[27] In 2008, FactSet bought a copy of Thomson's fundamentals database,[28] securing permanent access to global financial data stretching back to 1980.[29]
Employee headcount increased from 1,934 to 2,962, or 53%, during fiscal 2009. U.S. headcount grew by 6% in fiscal 2009. However, most of the increase in headcount in 2009 came from overseas operations, particularly in India. International employee headcount increased by 958 jobs to 1627.[31] Most new employees are recruited for the Consulting and Engineering departments, with many coming directly from college. The company’s employee retention rate has historically averaged 90%.[32]
2011
2010
2009
2008