Factset 4Q15 Earnings Call Notes

Added most users ever. 62k total now

“Our net user count increased by 3,210, which is our highest ever increase in a single quarter. Net user count of FactSet terminals totaled 62,205 at quarter end, which represented a year-over-year growth rate of 14%”

Portware opens up opportunities on trading desk

“I am very excited about the acquisition of Portware. Strategically Portware will be a platform to expand our presence in large global asset managers by becoming part of their trading ecosystem. We expect to combine our leading expertise and portfolio analytics with Portware’s innovative suites of trade automation solutions and cross-sell the solutions at FactSet’s blue-chip global buy-side client base.”

Strategy is to become more multi asset

” our strategic focus, as you’ve seen has to become more as a multi-asset class solution for our clients, and we’re excited about the fact that Portware is a multi-asset class solution and gives us more flexibility and opportunities in that area.’

Volatility creates opportunities for us

“clearly volatility in the market is something that we watch we talk to our clients a lot about it. The thing about volatility for us as well is it requires better data, and more analytics and better information in general which plays right into our sweet spot so with the volatility comes opportunity for us. We feel really good about the opportunities out there across both buy side and sell side, our growth has been very broad based across our regions and our client base. So we feel good about the opportunities going forward.”

No signs that volatility has impacted hiring trends

“We haven’t really seen any of that indication we clearly stay close to our clients throughout this volatility. It is felt still fairly healthy as we look at the sell-side graduating classes that we just saw were reasonably healthy, and attrition rates were nothing of know so, we haven’t seen anything that alarms us in that space so far.”

We’ve noticed some froth out there in acquisitions, but not in this one

“we certainly noticed some froth over the last year or two as we’ve looked at strategic acquisitions, but I would not say that the froth played into our thinking in terms of the pricing for this acquisition. We feel like we paid a very fair value for the asset.”

SNL built a great business with a lot of depth of data

“it’s a great question I mean they have built a great product. They go credibly deep in some sectors. We go deep as well. We don’t go quite to that level of depth within particular industries and when we’re evaluating our investments each year we think about that is one of our options, but we sit side-by-side today with SNL quite happily in a lot of our client bases, a lot of things that FactSet does that SNL can’t provide.”

user growth was wide spread, a little heavier to the sell side

“was very wide spread. Sell-side was a little bit higher in the overall number than buy-side was, not surprising. We do see good growth in that sell-side workstation this time of the year as the new-hire class has come in, but it really was just good growth all over the place and an estimate to our salesforce and client service group who are out there and they were doing a terrific job and it showed.”