Factset 1Q14 Earnings Call Notes

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A digest of some of the top insights that I’ve gathered from this week’s earnings calls.  Full notes can be found here.

Sell side users stabilized

“the sell-side includes only the M&A advisory, capital markets and equity research businesses, which stabilized in terms of users”

Buy side growth not bad

“Total user count was 52,483 professionals at quarter end. While users declined only very slightly at sell-side clients, user growth on the buy-side was strong resulting in 632 net new users.”

Growth was broad based

“when we look at new client acquisition, it was broad-based. It came from new hedge funds, traditional asset managers, and M&A shops.”

Client health improving

“clients’ health overall is improving in the industry. There were fewer firms that went out of the business in this particular quarter. ”

Modest hiring by clients, nothing major

“I think there is modest hiring going on, Shlomo. Nothing dramatic, but we certainly see pockets of growth and incremental hires going on, nothing dramatic.”

the volume is affecting clients depending how they’re situated, but there are signs of health

“The actual trading volume itself is certainly if you are a buy-side or sell-side client, affect your revenue and the levels of investments and depending on where your share is in that process can affect the ultimate staffing, but at this point we certainly see signs of health in our core user classes.”

Higher AUMs and higher market definitely helping

“Clearly, their revenues are driven by AUM and when the market is healthy it goes directly to the revenues, but I think that the last cycle was one where we definitely saw much lower return to investing in their businesses than we had in prior cycles. I think it’s one of those where the cycle it happened, so quickly that people were just way more cautious than they have been in the past, but we definitely feel like the clients are in a healthier place than they were a year ago and definitely one or two years ago.”

INvestment banking volume positive for both mid market and large firms

“I think, that certainly feels like the macro environment, when it comes to investment banking and deal volume both, mid-market and large firms is certainly on a positive trend.”