FactSet’s Recurring Revenue Model Fares Well but Is Not Immune to Macroenvironment Volatility

FactSet has built an attractive subscription-based business providing data and analytics to the financial-services industry. FactSet is best known for its research solutions, which include its core desktop offering geared toward buy-side asset managers and sell-side investment bankers. Research is the largest component of the firm’s annual subscription value but is FactSet’s slowest-growing segment due to its maturity and pressures on asset managers. In addition, as acquisition deal volume has decreased, this has pressured the investment banking side of FactSet’s research business.