FactSet Research Systems: Consistent Growth With Sticky Customer Base $FDS

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FactSet Research Systems (NYSE:FDS) offers subscription based financial data and portfolio tools for their clients to research investments as well as analyze and manage their portfolios. At the end of FY 2022 they had more than 7,500 clients including asset and wealth managers, bankers, hedge funds, private equity and venture capital, as well as corporate users.

Their clients clearly value the data and solutions that FactSet provides as they have been able to grow revenues for 42 consecutive years and for FY 2022 had 92% client retention with >95% annual subscription value retention.

FDS FY 2022 Earnings Presentation (FDS FY 2022 Earnings Presentation)

FactSet operates in the 3 segments:

The Americas: North, Central and South America
EMEA: Europe, the Middle East, and Africa
Asia Pacific: Asia and Australia

The Americas segment is by far the largest based on FY 2022 revenue. However, all 3 segments showed strong growth in revenues in FY 2022. Compared to FY 2020 each the regions have shown 24.4%, 19.1%, and 29.0% total growth in revenues.

Data by YCharts

FactSet's share price is sitting around 13% off its high near $500 from late 2021 compared to the S&P 500 which is around 20% lower over that same time. FactSet is an interesting business that I should have looked into much earlier.

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