FactSet Research Systems Inc.: A Comprehensive Overview

Introduction

FactSet Research Systems Inc. (NYSE: FDS) is a leading global provider of integrated financial information, analytical applications, and data. Headquartered in Norwalk, Connecticut, the company has a presence in over 20 countries serving more than 175,000 subscribers. This comprehensive overview delves into FactSet's history, products, financial performance, and industry outlook.

History and Evolution

FactSet was founded in 1978 as a provider of financial data and analytics to the investment community. Over the years, the company has expanded its offerings and acquired several businesses to become a comprehensive financial information platform. Key milestones in FactSet's history include:

• 1981: Launched FactSet Workstation, a revolutionary desktop platform for financial analysis
• 1997: Public offering on the New York Stock Exchange (NYSE)
• 2004: Acquired Interactive Data Corporation, a leading provider of real-time market data and news
• 2009: Launched FactSet Insight, a web-based financial analysis platform
• 2016: Acquired DerivaTech, a provider of risk and analytics software

Products and Services

FactSet's suite of products and services is designed to empower financial professionals with actionable insights and efficient workflows. The company's offerings include:

Financial Data

• Comprehensive financial data on over 165,000 companies and 20,000 indices from global exchanges and sources
• Historical financial statements, key metrics, estimates, and market data
• Real-time and delayed market data, quotes, and charts

Analytical Applications

• Advanced analytics tools for portfolio management, stock analysis, risk assessment, and performance measurement
• FactSet Workstation, a customizable desktop platform with a wide range of analytical capabilities
• FactSet Insight, a web-based platform for on-the-go analysis
• Portfolio Manager, a tool for managing and reporting on investment portfolios

Data Management

• Data aggregation, integration, and normalization services
• Cloud-based data management solutions for seamless access and collaboration
• Data governance and compliance tools to ensure the accuracy and security of information

Financial Performance

FactSet's financial performance has been consistently strong over the past decade. Key financial highlights for 2021 include:

• Revenue of $1.86 billion, representing a 12.7% year-over-year increase
• Net income of $449 million, a 16.2% year-over-year increase
• Diluted earnings per share (EPS) of $7.54, a 16.7% year-over-year increase
• Strong growth across all business segments, with recurring revenue accounting for 92% of total revenue

Industry Outlook

The global financial information industry is expected to continue growing in the coming years, driven by the increasing demand for data and analytics in investment decision-making. According to MarketsandMarkets, the market size is projected to reach $18.4 billion by 2025, at a compound annual growth rate (CAGR) of 6.4%.

FactSet is well-positioned to capitalize on this growth by leveraging its comprehensive data and analytics capabilities, strong client relationships, and continuous innovation. The company's focus on providing tailored solutions and seamless integration with third-party systems positions it as a leading partner for financial institutions and investment professionals worldwide.

Benefits of Using FactSet

FactSet's products and services offer numerous benefits to financial professionals, including:

• Enhanced Efficiency: Automated workflows and intuitive interfaces streamline research and analysis processes, saving valuable time.
• Improved Decision-Making: Comprehensive data and advanced analytical tools provide actionable insights for informed investment decisions.
• Competitive Advantage: Access to exclusive data and analytics enables users to stay ahead of the market and gain a competitive edge.
• Increased Productivity: Collaboration tools and customizable platforms enhance collaboration and productivity across teams.
• Risk Mitigation: Advanced risk analysis and portfolio management tools help identify and manage potential investment risks.

Applications: "Datapreneurship" for New Business Opportunities

Beyond its traditional financial applications, FactSet's data and analytics capabilities can empower users to explore new business opportunities through "datapreneurship." This concept involves leveraging data to create innovative products, services, and business models that address unmet needs in the market.

Examples of datapreneurship opportunities that leverage FactSet's data and analytics include:

• Developing AI-driven tools for predicting market trends and identifying investment opportunities
• Creating personalized financial planning and wealth management services based on real-time data
• Launching data-driven subscription services that provide access to exclusive insights and market analysis

Useful Tables

Table 1: FactSet Revenue Breakdown (in millions)

Table 2: FactSet Key Financial Metrics

Table 3: FactSet Industry Outlook

Table 4: Benefits of FactSet for Financial Professionals

Frequently Asked Questions (FAQs)

Q: What is FactSet known for?
A: FactSet is a leading provider of integrated financial information, analytical applications, and data to financial professionals worldwide.

Q: What are the key benefits of using FactSet's products and services?
A: FactSet offers enhanced efficiency, improved decision-making, competitive advantage, increased productivity, and risk mitigation.

Q: How does FactSet's data drive business opportunities?
A: FactSet's data and analytics empower users to explore datapreneurship opportunities by creating innovative products, services, and business models.

Q: What is FactSet's financial outlook for the future?
A: FactSet is well-positioned for continued growth in the global financial information industry, with strong demand for its data and analytics capabilities.

Q: What are the key drivers of FactSet's growth?
A: FactSet's growth is driven by factors such as increased demand for data and analytics, expansion into new markets, and strategic acquisitions.

Q: What is FactSet's competitive advantage?
A: FactSet's competitive advantage lies in its comprehensive data coverage, advanced analytical tools, strong customer relationships, and continuous innovation.

Q: How does FactSet ensure data accuracy and security?
A: FactSet has robust data governance and compliance practices in place to ensure the accuracy and security of its data.

Q: What is the cost of FactSet's products and services?
A: Pricing varies depending on the specific products and services required. Contact FactSet for pricing details.