About a-team Marketing Services
The leading knowledge platform for the financial technology industry
The leading knowledge platform for the financial technology industry

A-Team Insight Blogs

FactSet Research Systems Witnesses Revenue Uptick of 0.5% for Second Quarter

Subscribe to our newsletter

After a difficult first quarter of fiscal 2010, data and analytics vendor FactSet Research Systems seems to be experiencing a return to form with an overall revenue increase of 0.5% for the second quarter on previous year’s figures. Phil Hadley, chairman and CEO of the vendor, indicates that he believes the investment in its business via the launch of a new platform and the decision to go from offering data integration services to offering its own data feeds has paid off for FactSet and is the reason behind its “highest quarterly user growth in two years”.

For the quarter ended 28 February 2010, revenues were US$157.3 million, up 0.5% compared to the prior year. Operating income for the second quarter increased to US$54.5 million, an advance of 5% from US$52.0 million in the same period of fiscal 2009. Net income rose to US$36.1 million as compared to US$34.6 million a year ago. Diluted earnings per share increased to US$0.75, up 6% from US$0.71 in the same period of fiscal 2009.

Peter Walsh, chief operating officer, says: “The second quarter was a solid quarter for FactSet as our clients continued to stabilise. Annual subscription value (ASV) grew by US$14 million during the second quarter to US$635 million.” Of this total, 82% was derived from buy side clients and the remainder was from the sell side firms who perform M&A advisory work and equity research, consistent with the vendor’s previous revenue split. ASV from FactSet’s US operations was US$430.3 million and US$204.3 million related to international operations.

“We believe that even modest growth in the current environment, though hard won, is encouraging,” adds Walsh. The growth can be attributed to the vendor’s price increase for its investment management customers for the quarter and a few other areas such as the new FactSet workstation, which Walsh says has proved popular with new clients and old.

The focus of the vendor’s sales team has been on promoting its new workstations and upgrading existing clients to this new offering. In September last year, FactSet announced the release of its newest financial software platform, which consolidates data and analytics, previously spread across multiple applications, onto one interface. Walsh reckons this new solution goes some way to explaining the user increase of 1,400 in the quarter, although he indicates that investment is still being conducted in a “slow and cautious manner”.

Walsh explains that the vendor’s proprietary content collection has been selling well over the quarter, in particular its FactSet Fundamentals and FactSet Estimates. “FactSet has completed its journey from a pure software company to a software and content company,” he contends.

The vendor has also recently established a reference data related partnership with the London Stock Exchange (LSE), under the terms of which the exchange will deliver FactSet’s reference data via its web-based platform UnaVista, which provides validation, matching and reconciliation solutions.

According to Walsh, the vendor is seeking to bring down some of its costs by moving more of its operations offshore to Hyderabad in India and Manila in the Philippines. The vendor’s presence in these locations has “rapidly expanded” over the last year, he adds.

For the next quarter, revenues are expected to range between US$157 million and US$151 million, according to the vendor. “After a trough, we have seen client and user counts begin to rise, along with metrics that suggest increasing client engagement with new FactSet,” he concludes.

Subscribe to our newsletter

Related content

WEBINAR

Recorded Webinar: Adding value and improving efficiencies in sanctions screening

Sanctions have been headline news this year. They are growing in number, sanctions lists are changing on a daily basis, and there can be conflict between sanctions issued by different jurisdictions – the whole calling for financial institutions to optimise sanctions screening to reduce risk and avoid potentially punitive penalties of non-compliance. This webinar will...

BLOG

Tech Mahindra Partners Alveo to Power Data-as-a-Service Solution

Tech Mahindra is back in the capital markets data management game with the selection of Alveo’s FiDaaS solution to offer its customers financial Data-as-a-Service (DaaS). FiDaaS is a cloud-based, centralised market data platform covering pricing and reference data management, and end-to-end financial data management including data acquisition, mastering, quality management, discovery and distribution. The solution...

EVENT

RegTech Summit Virtual (Redirected)

The highly successful RegTech Summit Virtual was held in November 2020 and explored how business and operating models are adapting post COVID and how RegTech can provide agile and enhanced compliance for managing an evolving risk and compliance landscape. The event featured daily live keynotes, panel discussions, presentations, fireside chats and Q&A sessions with content available on demand over five days.

GUIDE

Connecting to Today’s Fast Markets

At the same time, the growth of high frequency and event-driven trading techniques is spurring demand for direct feed services sourced from exchanges and other trading venues, including alternative trading systems and multilateral trading facilities. Handling these high-speed data feeds its presenting market data managers and their infrastructure teams with a challenge: how to manage...