Factset 2Q15 Earnings Call Notes

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CEO change

“effective July 1, I will be stepping down from my role as CEO which I’ve held since September 2000…Phil Snow, our current President will become CEO on July 1. In addition, Mark Hale was promoted to Chief Operating Officer yesterday, replacing Peter Walsh”

The buy side is expanding rapidly

“Net user count for FactSet terminals increased 11% this quarter by over 1,800 users and totaled 57,408 at quarter end. Buy-side performance drove user count and accounted for more than half the change. Over the last 12 months, buy-side users grew 11%. FactSet also expanded its sell-side user base both this quarter and over the last 12 months.”

When we IPOd there were 5000 companies with revenues less than 50m. Only 60 made it to $1 B in revs

“As our business crosses $1 billion, I would like to remind you that in 1996, FactSet’s first year as a public company, there were over 5,000 public companies with revenues of less than $50 million. FactSet is one of only 60 companies in that pool of 5,000 to have crossed the $1 billion mark in revenues. This metric is a testament to our business model, our market opportunity and our experienced management team who knows how to execute.”

Growth opportunity through smaller shops

“It’s a typical quarter for us in terms of net new client additions, so healthy additions, a very good mix of hedge funds, wealth shops, traditional asset managers. As we’ve said on previous calls, typically we bring clients on, kind of the smaller size and we end up growing them over time. We already have most of the largest shops out there as our clients and we still view that as our biggest opportunity as a firm is expanding the wallet share that we have in those bigger clients.”

Clients are healthy

“Right now it appears to us as though the clients are in a healthy spot on both the buy side and sell side and are hiring modestly.”