FactSet Research Systems (FDS) Q4 2016 Earnings Call

Scott Miller – Director, Global Sales

They are growing internationally outside the US

“The international business is growing very well. It tends to be fairly diverse as it is in the U.S., in the Americas, in general. In Asia-Pac, we are – we have good workstation growth, but also great growth in our multi-asset class risk and analytics. And our fee business is doing very well throughout Asia-Pac as well and that’s echoed throughout EMEA. We get into some larger buy side markets like the UK market. We tend to see more coming in the portfolio analytics and spaces like that. But it’s fairly broad and it’s been consistent growth and we really like the international market.”

…with mixed results in US markets.

“{In} the U.S. market, the story for us was two fold. We had a record growth in new client acquisitions, so we brought on a bunch of brand new clients, which was terrific and that was across predominantly buy side, hedge fund, middle market buy side and the wealth area, but it was mixed with an increased cancellation rate that was what I would call market related. So, it was clients going out of business, hedge funds going out of business, some of the smaller buy side where they have been shedding employees. So, that was really the story was it was great growth sales, mixed with increased market related cancellation.”

Increased cancellations

“We definitely saw an increase in the quarter of the market-related cancellations in that buy side sector. It feels like the worst of it’s over and it feels like we have come through and I would talk to the sales force and look at the pipeline and get a sense of what they are feeling out there and it feels like it’s feeling healthier.”

Phil Snow – Chief Executive Officer

Brexit and Post-Brexit

“There was a slight slowdown in the sales cycle in the UK when Brexit came out. People were sitting and sort of contemplating a little bit. We saw that and we see that picking up now. .”

Underperforming active managers feeling the pressure

“if you look at the net new fund flows, active versus passive, there has definitely been on out-flowing from active equity. So I would say that we have been feeling some of that pressure, particularly for the active managers that are underperforming.”