CEO’S LETTER TO SHAREHOLDERS

Fiscal 2022 was an outstanding year for FactSet. We continued to advance our position as a trusted enterprise partner for our clients. Our team continued to innovate, staying true to our goal of delivering purpose-built solutions and mission-critical data that will power tomorrow’s investment professionals. Underpinning that progress was our longstanding commitment to delivering on our purpose: driving the investment community to see more, think bigger, and do its best work.

As we reach the end of our three-year investment plan, our foresight to invest in content and technology is delivering returns. Our top-line growth has accelerated by more than 400 basis points since 2019, and we once again achieved record revenues in fiscal 2022, marking 42 consecutive years of top-line growth. We accelerated organic Annual Subscription Value (ASV) plus professional services growth to 9.3%, driven by broad-based outperformance across all our regions and businesses.

On top of our strong financial results, we reached several exciting milestones: we completed the largest acquisition in our history with the purchase of CUSIP Global Services (CGS), issued our inaugural senior notes with investmentgrade ratings from both Moody's and Fitch, and joined the S&P 500.

Our business has transformed as we have broadened our client base and product mix and driven sustainable growth through targeted investments and executional excellence. These efforts have increased client retention and expansion and are helping us win new business. This year, we further improved our client retention to 92% while expanding our client base to more than 7,500. We also increased our users by 12%, reaching nearly 180,000, with new users representing corporate firms, wealth management, private equity and venture capital firms, channel partners, and asset managers.

A Winning Strategy

Our strategy to build the leading open content and analytics platform resonates with clients as we relentlessly focus on products and solutions to meet evolving market needs. We know our clients are looking for differentiated, personalized solutions, and as we build on our strategy, we remain committed to growing our content refinery, introducing next-generation workflow solutions, and digitizing our platform.

We are in the middle of the largest content expansion in FactSet's history, fueled by our recent investments. Today, we have a comprehensive suite of data that powers our workflow solutions with more than 20 proprietary content sets, data from more than 800 vendors and brokers, and more than four million client portfolios. We have deep sector coverage for eight sectors, adding technology, media, and telecom in 2022, with plans to further build out this coverage. We expanded our environmental, social, and governance (ESG) content, leveraging our acquisition of Truvalue Labs, and now partner with more than 45 ESG providers. Additionally, we have continued to make strides in our private markets strategy, with private company coverage expanding across our content refinery. And among wealth management clients, our market-leading workstation, advisor dashboard, and portfolio analytics tools drove new business wins and expanded relationships with existing clients.

Our successful acquisition of CGS, which we completed in March 2022, is a natural extension of our content refinery capabilities. CGS supports our industry-leading data management capabilities and complements our strengths in symbology, concordance, and reference data management. Together, we are ideally positioned to address our clients' evolving needs while enhancing the value we add to their essential workflows. We are already exploring opportunities to expand beyond CGS’s traditional security identifiers by building new products, including solutions for private companies and loan entities.

Our digital platform is a competitive advantage and an engine of innovation and growth for FactSet. Our digital capabilities enable clients to access our content and analytics via open, modern solutions. In 2022, we joined the AWS Data Exchange to give our clients more delivery choices and make it easier to access the financial data and insights they need. In addition, we were recognized as Snowflake’s 2022 Financial Services Industry Partner of the Year, highlighting the continued success of our partnership in migrating our clients to the data cloud. As we shape data and design technology around our clients’ workflows, we remain focused on scaling the use of cognitive technologies and further expanding our Application Programming Interface (API) program to help our clients customize and personalize their workflows.

A Passion for Making an Impact

We are deeply committed to sustainable growth for our clients, employees, shareholders, and communities. Our passion for making a difference for our planet and those around us, coupled with our culture of collaboration and inclusiveness, distinguishes us. By living our values and positively impacting the people and communities around us, we have made FactSet the strong and sustainable business it is today.

We know our business is only as successful as our people – our most valuable asset – and we continued to invest in initiatives to support them this past year. These efforts included adopting a hybrid work model to enable our employees to be their most productive selves, investing in technology for home offices to facilitate collaboration and efficiency, and instituting global wellness days to give our teams time to reconnect and recharge. By prioritizing our people's well-being, we attract and empower a talented team that creates value for all our stakeholders.

On the ESG front, we advanced our sustainability efforts with our commitment to the Science Based Targets Initiative and the introduction of our 2040 net zero emissions goal. We also progressed as a firm with diversity, equity, and inclusion, advancing our strategy across three impact areas: Workplace, Marketplace, and Society. In the Workplace, we have prioritized hiring and supporting talent from diverse backgrounds and experiences, and I am proud that women now comprise half of our executive leadership team. We are also a signatory of the CEO Action for Diversity and Inclusion Pledge, joining more than 2,000 companies actively supporting more inclusive workplaces and communities.

Corporate social responsibility has always been a core element of FactSet's culture, and we continue to give back to our communities. United around our four Pillars of Service – inspire tomorrow’s engineers, educate to elevate, alleviate food insecurity, and protect our environment – our teams continued to embody the FactSet spirit of going above and beyond. In 2022, FactSetters gave more than 17,000 hours of community service by volunteering through our vibrant Corporate Responsibility Program. This year alone, we helped over 35,000 children and young people build skills for future careers. In addition, through employee engagement and financial support, we planted more than 22,000 trees and provided more than two million meals to feed people in need.

We look forward to supporting our communities with the newly formed FactSet Charitable Foundation in the upcoming years.

Building on FactSet’s History of Delivering Strong Returns

Our performance in 2022 reinforced our confidence in our strategy and in our talented FactSet team to continue to drive market-leading results. As we strive to become the leading provider of mission-critical data that guides the investment community to think more strategically, we are building on our three focus areas: scaling up our content refinery; enhancing the client experience by delivering hyper-personalized solutions; and driving next-generation, workflow-specific solutions. I am energized by our momentum, and while the macroeconomic environment remains uncertain, FactSet is uniquely well-positioned to extend its leadership position and win market share. We have a resilient business model with a compelling value proposition, especially as clients increasingly seek to consolidate partners and rationalize spend; a strong, differentiated product and services offering that our clients rely on to generate alpha and drive efficiency; and a best-in-class team guided by an uncompromising commitment to expand the universe of knowledge that clients trust.

We enter fiscal 2023 poised to build on FactSet’s history of strong performance and value creation by doing what we do best – rolling up our sleeves, nimbly and thoughtfully investing in growth, and empowering our team to deliver executional excellence. We are excited for the road ahead and thank you for your continued support.

Phil Snow
Chief Executive Officer