Dear FactSet Shareholders,

FactSet continued to innovate during fiscal 2024, creating new growth channels while delivering vital data and workflow solutions to meet our clients’ needs and increase their efficiency. Our unwavering commitment to driving the investment community to do its best work fueled our progress, and the evolution of generative AI (GenAI) offered us opportunities to support our clients through disruptive change. We expanded our enterprise packages, led by strategic wins across various firm types, with Wealth Management at the forefront. We successfully deepened our relationships with existing clients and attracted new logos and users across regions and workflows.

Wealth was the biggest driver of our Annual Subscription Value (ASV) growth, thanks to strong demand and accelerated organic ASV growth from large enterprise deals and a significant long-term renewal. As we expand our offering for wealth managers, we’re seeing early success in workflows adjacent to our core advisor use case. We secured our first enterprise deal in the Wealth middle office for performance and managed services and achieved a milestone with the first sale of our Conversational API, empowering a leading private wealth client with programmatic access to FactSet Mercury, our AI-powered knowledge agent. This milestone is an important example of FactSet extending our platform in new ways to meet emergent client needs.

Despite challenges in our Dealmakers business (made up of Banking, Corporates, and Private Equity and Venture Capital) in the first half of the year, we saw a rebound by year’s end, driven by a competitive displacement win in Banking, several multi-year contract renewals, and a modest increase in seasonal hiring. Our forward-thinking roadmap continues to strengthen our position as our Dealmakers clients’ valued partner in innovation. On the Institutional Buy Side, tighter budgets and vendor consolidation impacted growth, especially among asset managers. Despite ongoing fee compression challenges in the industry, we have remained a trusted partner and a key piece of the operating model, helping clients consolidate spending and reduce costs. For Partnerships and CUSIP Global Services (CGS), softness in Partnerships was balanced by continued strong performance from CGS.

Beyond delivering solid financial results, we achieved several significant milestones in fiscal 2024. We grew our client base to 8,200 and our user base to over 216,000. We hosted our FactSet FOCUS conference in Miami, where we showcased hundreds of product demonstrations, dynamic keynotes, and lively discussion on the future of financial technology, the opportunities presented by generative AI, and the power of data. We elevated our “Not Just the Facts” brand campaign, designed to increase awareness of one of our core brand differentiators—our unique ability to contextualize data through industry-leading tech, robust analytics, and comprehensive support. The campaign garnered 134 million impressions globally and grew FactSet brand recognition among key audiences, including wealth managers and risk professionals.

Finally, FactSet’s innovation culture matured rapidly in fiscal 2024, with FactSetters everywhere responding to a call to action to meet the “GenAI moment.” Close collaboration with our clients grounded our initial ideation and continues to be at the center of our AI development. As GenAI development ramped up, we facilitated market validation by launching the FactSet Explorer program, our early product preview initiative, and we have gained further insight through the revenue-generating AI Partner Program, which puts FactSet data in the hands of AI startups. FactSet’s AI Blueprint contextualized the launches of Transcript Assistant, FactSet Mercury, Portfolio Commentary, and Conversational API, with more anticipated throughout fiscal 2025.

Winning Strategy

As we move into fiscal 2025, we are focused on executing our strategic multi-year investment plan, anchored by three core pillars.

The first is expanding our data offerings. We’ve continued to expand our extensive data library, covering deep sector, private markets, and real-time data. This data enhances our renewal success and competitive edge. In the coming year, we intend to refine and mature these offerings.

Second, we’re deepening our integration into client workflows across firm types. For the Institutional Buy Side, we’re focusing on expanding in the front office by leveraging our expertise in portfolio performance, analytics, and risk management. In Wealth, we’re building on our presence on advisor desktops and growing into prospecting and digital reporting workflows. For Dealmakers, we’re accelerating engagement with Banking clients to introduce next-generation automation in research, financial modeling, and pitch creation.

Third, we are innovating with AI. Our artificial intelligence roadmap, framed by our broader AI Blueprint launched last year, continues to resonate with our clients. We recently launched new AI-powered solutions for generating portfolio commentary, analyzing earnings call transcripts, and requesting FactSet data using natural language queries in client-built environments and chatbots. In fiscal 2025, our conversational interface, FactSet Mercury, will enrich our core Workstation product, supporting enhanced research capabilities as well as workflow-specific uses across our client base. We believe our pragmatic, open, and flexible approach to AI will continue to differentiate FactSet from our competitors and drive growth. In addition, we feel that the innovation culture surrounding our approach will continue to unlock new areas of value for FactSet.

Making an Impact

Our commitment to sustainable growth spans clients, employees, shareholders, and our communities. We recognize that our success is intrinsically linked to making a positive impact across all these constituents.

In fiscal 2024, the FactSet Charitable Foundation—which makes grants to support nonprofit organizations empowering underserved students, paving the way to and through college to careers in technology and finance— committed to five new multi-year grants through its flagship Signature Partners program, expanding our portfolio to 10 grantees in six countries. In addition, guided by our four service pillars—Inspire Tomorrow's Engineers, Educate to Elevate, Alleviate Food Insecurity, and Protect Our Environment—FactSet employees contributed over 18,000 volunteer hours across 454 volunteer events worldwide this past year. Thanks to employee engagement and financial support from both the Company and the FactSet Charitable Foundation, we also donated more than 835,000 meals, planted 30,000 trees, and provided educational opportunities to more than 37,000 students.

We continued to make progress toward becoming a more sustainable company, being recognized in Newsweek’s America's Greenest Companies 2024 and receiving a silver medal from EcoVadis for our sustainability efforts. Additionally, our near-term goals to reduce greenhouse gas emissions were validated by the Science-Based Targets initiative (SBTi).

Supercharging Financial Intelligence

I am confident in our competitive position and our ability to deliver on our strategy. With the rising demand for connected, quality data in financial decision-making, our GenAI tools, connected data, and client-centric focus position us for even greater success ahead as we focus on supercharging financial intelligence.

Phil Snow

Chief Executive Officer, FactSet