FactSet Research Systems Inc. (FDS): history, ownership, mission, how it works & makes money

A Brief History of FactSet Research Systems Inc. (FDS)

FactSet Research Systems Inc. (FDS) is a financial data and software company that was established in 1978 by Howard Wille and Charles Snyder. The company was created to provide financial analytics and data to investment professionals, enabling them to make informed decisions. Over the years, FactSet has grown from a small startup to a global player in the financial information industry.

In the 1980s, the company initially focused on providing basic financial data and analytics through desktop terminals, which quickly became popular among investment professionals for their accuracy and user-friendly interface. This early success paved the way for FactSet to expand its offerings and client base.

During the 1990s, FactSet introduced its first proprietary software, which integrated financial data with powerful analytical tools, marking a significant milestone in the company's development. This decade also saw the company expanding its global footprint by opening offices in key financial centers around the world.

In the 2000s, FactSet continued to innovate by incorporating sophisticated web-based solutions and mobile applications, keeping pace with technological advancements and the evolving needs of its clients. The company also made strategic acquisitions to enhance its product offerings, such as the purchase of JCF Group, a global provider of earnings estimates, in 2004.

Key moments in FactSet's history can be highlighted as follows:

• 2000: FactSet goes public, listing on the New York Stock Exchange under the ticker symbol FDS.
• 2008: Acquired Thomson Fundamentals and the Alpha Metrics database, significantly expanding its financial data offerings.
• 2015: Launched FactSet Geographic Revenue Exposure (GeoRev), enhancing the ability to analyze multinational companies.
• 2017: Acquired BISAM, a performance and attribution provider, adding to its analytics capabilities.
• 2020: Completed the acquisition of Truvalue Labs, an AI-driven ESG data company, demonstrating its commitment to responsible investing.

As of the present day, FactSet continues its mission to provide financial data, analytics, and solutions to investment professionals globally. The company's dedication to innovation and client service has positioned it as a trusted partner for thousands of users in the financial industry.

Who Owns FactSet Research Systems Inc. (FDS)

FactSet Research Systems Inc. (FDS), a leading provider of integrated financial information and analytical applications, is a publicly traded company. Being publicly traded means that ownership of the company is distributed among a broad array of shareholders, including institutional investors, mutual funds, and individual stockholders.

Institutional investors hold a significant portion of FactSet's outstanding shares. These entities include large entities such as pension funds, mutual funds, and insurance companies. Notable institutional investors in FactSet Research Systems Inc. include:

• The Vanguard Group, Inc.
• BlackRock, Inc.
• State Street Corporation

Mutual funds are another important category of ownership. Funds such as:

• Vanguard Total Stock Market Index Fund
• SPDR S&P 500 ETF Trust
• iShares Core S&P 500 ETF

also hold notable positions in FactSet.

Company executives and insiders, including board members and high-level management, also own a portion of FactSet's shares. Their ownership stakes are often smaller in comparison to institutional investors but are meaningful as they align the interests of management with those of shareholders.

Besides institutional and mutual fund investors, individual investors also own shares of FactSet. These individuals could be retail investors who have purchased the stock through brokerage accounts or employees who have received stock as part of compensation packages.

FactSet Research Systems Inc. (FDS) Mission Statement

FactSet Research Systems Inc. (FDS) is dedicated to providing premier financial data and analytical tools to help the global investment community make critical decisions. The company's mission centers around delivering exceptional client service, maintaining integrity in all operations, and fostering a culture of innovation.

Key elements of FactSet's mission statement include:

• Client-Focused Solutions: FactSet aims to continually enhance client satisfaction by offering comprehensive and customizable financial data solutions.
• Innovative Technologies: The company invests in cutting-edge technology to ensure clients have access to the most advanced tools and resources available.
• Integrity and Excellence: FactSet upholds the highest standards of integrity and excellence in its services, ensuring reliable and accurate financial information.
• Global Reach: With a presence in key financial centers worldwide, FactSet is committed to serving a diverse and international client base.
• Employee Empowerment: Encouraging a collaborative and innovative work environment, FactSet empowers its employees to drive positive change and achieve personal and professional growth.

By adhering to these core principles, FactSet endeavors to be the most trusted partner for financial professionals everywhere.

How FactSet Research Systems Inc. (FDS) Works

FactSet Research Systems Inc. (FDS) is a financial data and software company that provides integrated data and software solutions to investment professionals around the world. The company's business model revolves around delivering comprehensive financial information that supports the decision-making processes of its clients, which include investment managers, investment bankers, and other financial professionals.

Here’s a closer look at how FactSet operates:

• Data Collection and Integration: FactSet gathers data from a multitude of sources, including market data, financial research, news, and public company filings. This data is meticulously cleaned, standardized, and integrated to ensure its reliability and ease of use.
• Analytics and Tools: The company offers a range of proprietary analytics and tools that help clients analyze market trends, investment opportunities, and portfolio performance. These tools are designed to deliver real-time insights and actionable intelligence.
• Customized Solutions: FactSet provides customized solutions tailored to the specific needs of its clients. These solutions can range from simple data feeds to complex analytical platforms, ensuring that clients get the exact tools they need for their unique workflows.
• Client Support: FactSet places a strong emphasis on client support and customer service. The company offers extensive training, 24/7 support, and personalized service to ensure that clients can fully leverage the capabilities of their solutions.

FactSet's platform also offers extensive collaborative tools that help financial professionals work together more efficiently. These tools include data sharing, collaborative workspaces, and integrated communication features that facilitate teamwork and information sharing within and between organizations.

Additionally, FactSet is committed to using cutting-edge technologies. The company continuously invests in advanced technologies such as artificial intelligence (AI) and machine learning (ML) to enhance its data products and analytics capabilities. These technologies help FactSet maintain its competitive edge by enabling the company to offer more sophisticated and predictive analytics.

Data Security and Compliance are also critical components of FactSet's operations. The company adheres to stringent data security protocols and compliance standards to ensure the confidentiality, integrity, and availability of its data and services. This commitment is crucial in maintaining the trust and confidence of its clients.

Overall, FactSet Research Systems Inc. (FDS) operates by combining comprehensive data collection, advanced analytical tools, customized solutions, and exceptional client support to deliver valuable insights and solutions to financial professionals.

How FactSet Research Systems Inc. (FDS) Makes Money

FactSet Research Systems Inc. (FDS) is a financial data and software company that provides analytical and data solutions to investment professionals. The company generates revenue through multiple streams, leveraging its comprehensive market data and advanced technology solutions.

Subscription Services account for the majority of FactSet's revenue. These services involve providing clients with access to a vast array of financial data, analytics, and tools through a subscription model. Here are the main components:

• Workstation Subscriptions: Financial professionals use FactSet's workstations for real-time data, analytics, news, and software tools to make informed investment decisions.
• Proprietary Data Sets: The company collects and distributes proprietary financial data sets that are critical for investment analysis, such as earnings estimates, financial statements, and merger and acquisition information.
• Analytical Tools: These tools allow clients to perform complex financial modeling, risk assessment, and portfolio management.

Analytics and Trading Solutions also make a significant contribution to FactSet's revenue. These solutions are tailored to support the entire investment process, from strategy development to execution. Key elements include:

• Portfolio Analytics: Helps portfolio managers to analyze performance, risk, and returns, benchmarking against various indices and models.
• Risk Analytics: Provides comprehensive risk management solutions that allow clients to manage and mitigate investment risks effectively.
• Trading Platforms: FactSet offers integrated trading solutions that connect users to various markets, improving the efficiency and execution of trades.

Content and Technology Solutions form another vital revenue stream. FactSet provides customizable solutions that integrate its content into clients' internal systems. These include:

• Data Feed Services: FactSet delivers vast amounts of raw data directly to clients' systems, enabling them to customize and analyze data according to their specific needs.
• APIs and Integration Solutions: Application Programming Interfaces (APIs) allow clients to seamlessly integrate FactSet data and tools with their own platforms, enriching their decision-making processes.
• Custom Solutions: Tailored technology and data solutions to meet specific client demands, allowing for unique workflows and analytics.

In addition to these primary streams, FactSet generates revenue through Consulting Services. These services involve providing expertise and support to help clients maximize the value of FactSet's products. Improvement in client usage and satisfaction through consulting leads to better retention rates and upsell opportunities.

Lastly, FactSet capitalizes on its extensive client network by Cross-Selling and Upselling additional products and services. The company continuously expands its offerings, enhancing the scope and depth of its solutions to meet evolving client needs and capture more revenue from existing relationships.