FactSet Research Systems
Encyclopedia
FactSet Research Systems is a financial data and software company headquartered in Norwalk, CT. The company provides financial information and analytic software for investment professionals. 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. In addition, Forbes listed FactSet as 20th on its list of "The 100 Best Mid-Cap Stocks in America" in 2009. In 2011, FactSet was named to the "100 Best Companies To Work For" by Fortune magazine for the third time. BusinessWeek has also named it as one of the "Best Places to Launch a Career". 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.
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.
Some of its competitors include Bloomberg L.P.
, Thomson Reuters
, and Capital IQ
.
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.
Proprietary Data Content
Services
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 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.
Current CEO Philip A. Hadley joined the company as a Consultant in 1985.
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.
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.
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.
short selling data on the Factset Research Systems analytics platform.
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.
In May 2010, FactSet completed the acquisition of the Thomson Fundamentals database.
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.
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)
.
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 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.
In 2008, FactSet bought a copy of Thomson's fundamentals database, securing permanent access to global financial data stretching back to 1980.
rate has historically averaged 90%.
2010
2009
2008
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. In addition, Forbes listed FactSet as 20th on its list of "The 100 Best Mid-Cap Stocks in America" in 2009. In 2011, FactSet was named to the "100 Best Companies To Work For" by Fortune magazine for the third time. BusinessWeek has also named it as one of the "Best Places to Launch a Career". 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.
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.
Some of its competitors include Bloomberg L.P.
Bloomberg L.P.
Bloomberg L.P. is an American privately held financial software, media, and data company. Bloomberg makes up one third of the $16 billion global financial data market with estimated revenue of $6.9 billion. Bloomberg L.P...
, Thomson Reuters
Thomson Reuters
Thomson Reuters Corporation is a provider of information for the world's businesses and professionals and is created by the Thomson Corporation's purchase of Reuters Group on 17 April 2008. Thomson Reuters is headquartered at 3 Times Square, New York City, USA...
, and Capital IQ
Capital IQ
Standard & Poor's Capital IQ is a provider of information and analytical tools for investment bankers, money managers, and other financial professionals.-Business description:...
.
Products and services
ProductsOn 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.
Proprietary Data Content
- FactSet Aggregates
- FactSet Events and Transcripts
- FactSet Estimates
- FactSet Economics
- FactSet Embargoed Research
- FactSet Financial Entities
- FactSet Fixed Income
- FactSet Flashwire News
- FactSet Fundamentals
- FactSet Global Filings
- FactSet Institutional Ownership News
- FactSet IPO
- FactSet MergerMetrics
- FactSet Mergerstat Global
- FactSet Mutual Funds
- FactSet New Issues
- FactSet Ownership
- FactSet People
- FactSet Private Company
- FactSet Private Equity & Venture Capital
- FactSet Research Connect
- FactSet SharkRepellent
- FactSet SharkWatch
Services
- Consulting: Each firm is assigned a Consultant who becomes familiar with client needs and processes. Clients also have access to Consulting Services phone support.
- Training: FactSet hosts free training seminars in its New York, Boston, Chicago, London, Paris, and Tokyo training centers. Consultants can also arrange personalized training sessions at client offices.
- Security: FactSet maintains physical, electronic, and procedural safeguards to address security and business continuity risks.
- Multiple Access Points: Every FactSet client receives access on an office PC, laptop, home computer, and wireless device.
1977–1980: The early years
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.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.
1981–1989: Growing the product
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.
Current CEO Philip A. Hadley joined the company as a Consultant in 1985.
1990–2000: Transition to Windows and introduction of portfolio management tools
FactSet for Windows was released in 1990. That same year, company headquarters moved from New York CityNew York City
New York is the most populous city in the United States and the center of the New York Metropolitan Area, one of the most populous metropolitan areas in the world. New York exerts a significant impact upon global commerce, finance, media, art, fashion, research, technology, education, and...
to Greenwich, CT.
A London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...
office opened in 1993, the first in Europe
Europe
Europe is, by convention, one of the world's seven continents. Comprising the westernmost peninsula of Eurasia, Europe is generally 'divided' from Asia to its east by the watershed divides of the Ural and Caucasus Mountains, the Ural River, the Caspian and Black Seas, and the waterways connecting...
. The first Asia-Pacific
Asia-Pacific
Asia-Pacific or Asia Pacific is the part of the world in or near the Western Pacific Ocean...
office opened in Tokyo
Tokyo
, ; officially , is one of the 47 prefectures of Japan. Tokyo is the capital of Japan, the center of the Greater Tokyo Area, and the largest metropolitan area of Japan. It is the seat of the Japanese government and the Imperial Palace, and the home of the Japanese Imperial Family...
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
New York Stock Exchange
The New York Stock Exchange is a stock exchange located at 11 Wall Street in Lower Manhattan, New York City, USA. It is by far the world's largest stock exchange by market capitalization of its listed companies at 13.39 trillion as of Dec 2010...
in 1996 under the symbol FDS.
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.
2000-2009: Refining portfolio and real-time products
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. 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.
2009-Present: Interface overhaul and continued data development
In 2009, FactSet combined its DIRECTIONS, Marquee, and IBCentral platforms into one product, called simply FactSet. The platform combined the features of the previous platforms with new shared online workspaces and faster analytics. Also in 2009, FactSet integrated Data ExplorersData Explorers
Data Explorers is a privately owned financial data and software company headquartered in London, UK. The company provides financial benchmarking information to the Securities lending Industry and short-side intelligence to the Investment Management community.....
short selling data on the Factset Research Systems analytics platform.
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.
In May 2010, FactSet completed the acquisition of the Thomson Fundamentals database.
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.
Financials
For 2011, FactSet’s 33rd year of operation, the company recorded its 31st consecutive year of revenue growth.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)
| 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 |
Fixed Income Products
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.Available Data
The company receives data from providers such as Barra, Dow Jones, Russell, and LipperLipper
Lipper, Inc., a subsidiary of Thomson Reuters, provides mutual and hedge fund data, analytical tools, and commentary. Lipper covers over 213,000 share classes and more than 117,000 funds located in over 60 domiciles.-Corporate history:...
.
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 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.
In 2008, FactSet bought a copy of Thomson's fundamentals database, securing permanent access to global financial data stretching back to 1980.
Management
- Philip A. Hadley, Chairman of the Board, Chief Executive Officer
- Peter G. Walsh, Chief Operating Officer
- Charles J. Snyder, Vice Chairman of the Board
- Michael D. Frankenfield, Director, Global Sales
Recruiting
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. Most new employees are recruited for the Consulting and Engineering departments, with many coming directly from college. The company’s employee retentionEmployee retention
Employee retention refers to the ability of an organization to retain its employees. Employee retention can be represented by a simple statistic...
rate has historically averaged 90%.
Recent Recognition
2011- FactSet ranked #64 on FORTUNE's "100 Best Companies to Work For" list
- FactSet was named "Best Research Provider" at the Inside Market Data & Inside Reference Data Awards
- FactSet ranked #4 on Glassdoor.com's "Top 25 Companies for Work-Life Balance"
2010
- FactSet ranked #48 on FORTUNE's "100 Best Companies to Work For" list
- FactSet ranked #17 on Glassdoor.com's "50 Best Places to Work" list
- FactSet Europe Limited was one of the top 50 companies on "UK's Great Place to Work" list
2009
- FactSet received the PilotHouse Innovator Award from Nemertes Research
- FactSet ranked #28 on Forbes' "Best Small Companies" list (13th consecutive year on the list)
- FactSet was selected for the 2009 Best of Norwalk Award in the Security & Commodity Service category by the US Commerce Association.
- FactSet ranked #59 on BusinessWeek's InfoTech 100 list
- FactSet was named "Best Analytics Provider" at the Inside Market Data & Inside Reference Data Awards
- FactSet was named one of the "UK's 50 Best Workplaces"
- FactSet ranked #13 on Glassdoor.coms "50 Best Places to Work" list
2008
- FactSet ranked #58 on Forbes' "Best Small Companies" list
- FactSet ranked #53 on BusinessWeek's "Best Places to Launch a Career" list
- FactSet named one of Human Resource Executive's "Great Companies for Millennials"
- FactSet named one of CollegeGrad.com's "Top 100 Entry-Level Employers"
- FactSet ranked #52 on FORTUNE's "100 Best Companies to Work For" list
- FactSet ranked #45 on Forbes' "Best Small Companies" list