Financial analytics provider FactSet wants to grow faster

The analytical company FactSet Research Systems Inc. (FDS) is trying to accelerate business growth through new acquisitions. The company already has a history and expects to increase sales in the coming years. FactSet has been a provider of tools for insurance companies, investment firms, banks, and other financial organizations and specialists for more than a quarter of a century. One of the critical areas of FactSet is analytics; for example, it has tools for combining heterogeneous information about securities in a single interface. 

FactSet has upgraded, and its new cloud applications are highly appreciated even by the leaders of this IT field. In particular, Snowflake awarded FactSet the title of the best partner in the financial services sector in 2022. However, like many mature companies, FactSet’s growth has slowed, and it is now more focused on increasing profits rather than aggressive expansion. However, FactSet may get an additional boost from the companies acquired at the end of the year by Cobalt Software and CUSIP Global. The first is for private investment companies and the second deals with securities market analytics and settlements between brokers and financial institutions. 

These two acquisitions doubled the growth rate of FactSet’s quarterly revenue compared to the same period in 2021. As a result, revenue in the last quarter increased by 22% year-on-year to almost $500 million. Moreover, all the possibilities related to integrating the acquired companies’ services into the FactSet platform have not yet. Existing customers of the company can add new services, increasing sustainable income. In addition, FactSet has improved the already strong free cash flow.