When discussing FactSet net worth, it’s crucial to look beyond just market cap and dig deeper into the factors driving its financial performance.
Here at Ando Money, we aim to provide you with a comprehensive breakdown of how FactSet has achieved its fiscal success and what contributes to its revenue.
Quick Facts
| FACT | DETAIL |
|---|---|
| Name | FactSet Research Systems Inc. |
| Full Name | FactSet Research Systems Inc. |
| Website | www.factset.com |
| Industry | Financial Data and Software Provider |
| Traded as | NYSE: FDS, NASDAQ: FDS |
| ISIN | US3030751057 |
| Founded | 1978 |
| Founders | Howard Wille, Charles Snyder |
| Country/Territory | United States |
| Headquarters | Norwalk, Connecticut, United States |
| Chief Executive Officer | Phil Snow |
| Number of Employees | 12,398 |
| Market Cap | $17.38 billion (Oct 2024) |
| Total Assets | $4.06 billion (2024) |
| Total Equity | $1.91 billion (2024) |
| Revenue | $2.20 billion (2024) |
| Net Income | $537.1 million (2024) |
What is the Net Worth/Market Cap of FactSet in 2024?
FactSet’s market cap in 2024 stands at $17.38 billion, positioning it as a significant player in the financial analytics industry.
This figure not only speaks to its valuation but also to its standing among some of the largest companies.
While FactSet maintains a robust market presence, it is essential to note how it compares to other companies in the financial data sector. Below is a list of competitors and related companies:
- Bloomberg
- S&P Global
- Refinitiv
- MSCI Inc.
- Morningstar
- Moody’s Corporation
- Thomson Reuters
- IHS Markit
- Workiva
- PitchBook Data
For more context on the wealthiest companies worldwide, explore this list of the world’s largest companies.
FactSet Financial Performance Overview
Factors Contributing to Revenue Growth
One of the essential drivers behind FactSet‘s success is its consistent revenue growth. The company’s financial model relies heavily on various business segments, such as wealth, banking, and institutional asset management.
The diversified portfolio and demand for analytics in these sectors have led to growth in revenues by 4.9% year over year in Q4 2024 and 5.6% for the full year.
Subscription Model and Annual Subscription Value (ASV)
FactSet’s subscription-based model, represented by its ASV (Annual Subscription Value), is a crucial factor contributing to its consistent income streams.
As of August 2024, ASV plus professional services amounted to $2.276 billion, with a steady increase in organic ASV by 4.8% over the last year.
The subscription model’s recurring nature ensures consistent revenue from diverse customer bases, such as wealth managers, asset owners, and corporate clients.
Impact of Product and Service Offerings
The company’s growth is also driven by its comprehensive range of products and services. As a provider of financial data and analytics, FactSet delivers tailored solutions to its clients through a digital platform.
This innovation in managed services, reducing project-based services, has also allowed FactSet to stabilize and grow its revenue.
Moreover, the flexibility to adapt and introduce new financial tools has kept it relevant in the evolving market.
Client Base and User Growth
FactSet’s client base is one of its most critical assets, with an annual client retention rate of over 95%. The company’s buy-side clients, which include wealth managers and institutional asset managers, account for 82% of its organic ASV.
Meanwhile, sell-side clients, such as broker-dealers and advisory firms, make up the remaining 18%. During the fiscal year, the client count increased by 3.7%, and user count saw a significant growth of 13.9%, expanding the reach of FactSet’s offerings.
Regional Revenue Segmentation and Performance
Geographically, FactSet’s revenue is segmented into three main regions: the Americas, EMEA (Europe, Middle East, and Africa), and Asia Pacific.
The Americas remain the largest contributor, with $1.4568 billion in ASV and a 5.6% organic revenue growth rate in the latest quarter.
The EMEA region follows with $570.3 million in ASV and 1.8% organic ASV growth, while the Asia Pacific stands out for its rapid growth rate of 7.1%, contributing $230.6 million in ASV.
Operational Efficiency and Cost Management
The financial performance of FactSet is also attributed to its operational efficiencies.
The company’s GAAP operating margin in 2024 was 31.8%, and the adjusted operating margin reached 37.8%, driven by reduced compensation costs and streamlined operations.
Such cost management allowed FactSet to maintain a balance between investing in technological advancements and improving profitability.
Revenue from Financial Data and Technology Integration
Another contributing factor to FactSet’s financial performance is its focus on AI and technology integration.
The company’s aim to provide financial data and customizable workflows has proven valuable for clients.
The shift towards advanced technology and AI tools ensures that clients receive cutting-edge analytics, boosting FactSet’s revenue through enhanced offerings and services.
Strategic Financial Decisions and Shareholder Returns
FactSet’s commitment to shareholder returns is evident through its financial strategies.
In May 2024, the company increased its quarterly cash dividend by 6% to $1.04 per share, marking its 25th consecutive year of dividend growth.
Furthermore, FactSet’s share repurchase programs, where it repurchased 153,650 shares for $63.3 million in Q4, reflect its dedication to delivering value back to shareholders.
Future Financial Guidance and Revenue Projections
Looking forward, FactSet is optimistic about its financial trajectory. For fiscal 2025, the company expects organic ASV growth of 4% to 6%, with projected GAAP revenues between $2.285 billion and $2.305 billion.
Additionally, the anticipated adjusted operating margin is between 36% and 37%, and the GAAP diluted EPS is expected to be in the range of $15.10 to $15.70.
FAQs about FactSet
How does FactSet generate revenue?
FactSet generates revenue through its subscription-based ASV model, which covers various financial services such as wealth management, banking, and institutional asset management.
What is FactSet’s main source of income?
The main source of income is the ASV plus professional services, which contributes to recurring revenue streams, amounting to $2.276 billion in 2024.
How has FactSet’s operating margin changed over the years?
Its GAAP operating margin has improved from 30.2% in 2023 to 31.8% in 2024, with adjustments reflecting even higher margins.
Who is FactSet’s target clientele?
The company caters to a broad clientele, including institutional asset managers, wealth managers, banking institutions, and corporate clients across the buy-side and sell-side sectors.
What is FactSet’s strategy for client retention?
It maintains high client retention by providing tailored solutions, expanding its product offerings, and ensuring continuous innovation in financial data and analytics.
Conclusion
FactSet’s financial performance demonstrates a robust and diversified business model.
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