What changed in this filing

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Item 1. Business

2022-10-21 compared with 2021-10-22 · 214 added, 188 removed, 197 unchanged (67% of the section changed)

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FactSet Research Systems Inc.

and its wholly-owned subsidiaries (collectively, "we," "our," "us," the "Company" or "FactSet") is a global financial data and analytics company with open and flexible technology and a purpose to drive the investment community to see more, think bigger, and do their best work.

Our strategy is to become the leading open content and financial analytics platform in the industry that delivers differentiated advantage for our clients’ success.

For over 40 years, the FactSet platform has delivered expansive data, sophisticated analytics, and flexible technology that global financial professionals need to power their critical investment workflows.

Over 160,000 asset managers and owners, bankers, wealth managers, corporate firms, including private equity and venture capital firms, and others, use our personalized solutions to identify opportunities, explore ideas, and gain a competitive advantage, in areas spanning investment research, portfolio construction and analysis, trade execution, performance measurement, risk management, and reporting across the investment lifecycle.

We provide financial data and market intelligence on securities, companies and industries to enable our clients to research investment ideas, as well as offering them the capabilities to analyze, monitor and manage their portfolios.

We combine dedicated client service with open and flexible technology offerings, such as a configurable desktop and mobile platform, comprehensive data feeds, cloud-based digital solutions, and application programming interfaces ("APIs").

Our revenue is primarily derived from subscriptions to our products and services such as workstations, portfolio analytics, and market data.

We advance our industry by comprehensively understanding our clients’ workflows, solving their most complex challenges, and helping them achieve their goals.

By providing them with the leading open content and analytics platform, an expansive universe of concorded data they can trust, next-generation workflow support designed to help them grow and see their next best action, and the industry’s most committed service specialists, FactSet puts our clients in a position to outperform.

We are focused on growing our business through three reportable segments ("segments"):

and its wholly-owned subsidiaries (collectively, "we," "our," "us," the "Company" or "FactSet") is a global financial data and analytics company with an open and flexible digital platform that drives the investment community to see more, think bigger, and do its best work.

Our strategy is to build the leading open content and analytics platform to deliver a differentiated advantage for our clients’ success.

For more than 40 years, the FactSet platform has delivered expansive data, sophisticated analytics, and flexible technology used by global financial professionals to power their critical investment workflows.

As of August 31, 2022, we had more than 7,500 clients comprised of approximately 180,000 investment professionals, including asset managers, bankers, wealth managers, asset owners, channel partners, hedge funds, corporate users, private equity and venture capital professionals.

Our on- and off-platform solutions span the investment lifecycle to include investment research, portfolio construction and analysis, trade execution, performance measurement, risk management and reporting.

Our revenues are primarily derived from subscriptions to our multi-asset class data and solutions powered by our connected content ("content refinery").

Our products and services include workstations, portfolio analytics and enterprise solutions.

We provide financial data and market intelligence on securities, companies, industries and people to enable our clients to research investment ideas, as well as to analyze, monitor and manage their portfolios.

We combine dedicated client service with open and flexible technology offerings, including a configurable desktop and mobile platform, comprehensive data feeds, cloud-based digital solutions and application programming interfaces ("APIs").

Our CUSIP Global Services ("CGS") business supports security master files relied on by the investment industry for critical front, middle and back office functions.

We drive our business based on our detailed understanding of our clients’ workflows, which helps us to solve their most complex challenges.

We provide them with an open digital platform, connected and reliable data, next-generation workflow solutions and highly committed service specialists.

We operate our business through three reportable segments:

the Americas, EMEA and Asia Pacific.

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of this Annual Report on Form 10-K for further discussion.

Within each of our segments, we primarily deliver insight and information through our three workflow solutions:

For each of our reportable segments, we execute our strategy through three workflow solutions:

Research & Advisory;

Analytics & Trading;

and Content & Technology ("CTS").

and Content & Technology Solutions ("CTS").

Corporate History

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We are dual-listed on the New York Stock Exchange ("NYSE") and the NASDAQ Stock Market ("NASDAQ") under the symbol "FDS".

Fiscal 2021 marked our 43rd year of operations and, while much has changed in both markets and technology, our focus has always been to provide best-in-class products and exceptional client service.

Fiscal 2022 marked our 44th year of operations, and we continue to focus on providing integrated and connected content, best-in-class products and exceptional client service.

Business Strategy

Client needs and market dynamics continue to evolve at an accelerated pace with an increasing demand for differentiated, personalized, and connected data, an ongoing shift to multi-asset class investing, and cost rationalization, as the shift from active to passive investing continues.

Clients are seeking new cloud-based solutions that enable self-service and automation, open and flexible systems, and increased efficiencies when integrating and managing data as part of their own broader digital transformations.

FactSet’s strategy focuses on building the leading open content and analytics platform that delivers differentiated advantages for our clients’ success – in keeping with our purpose of enabling the investment community to see more, think bigger and do their best work.

We want to be the trusted partner of choice for clients, to anticipate their needs and provide them with the most innovative solutions to make them more efficient.

This includes transforming the way our clients discover, decide, and act on an opportunity using our digital platform;

purposefully increasing our pace and speed to market by streamlining how we work;

and investing in our future workforce.

To execute on our strategy, we plan on the following:

As the needs of our clients evolve, they seek personalized and connected data, tools for multi-asset class investing, and reduced costs.

Clients are also seeking cloud-based solutions, open and flexible systems, and increased efficiencies to support their digital transformations.

Our strategy is to build the leading open content and analytics platform to deliver differentiated advantages for our clients’ success.

To execute this strategy, we plan on:

• Growing our digital platform:

Scaling up our content refinery by providing the most comprehensive and connected inventory of industry, proprietary, and third-party data for the financial community, including granular data for key industry verticals, private companies, wealth, and environmental social and governance ("ESG").

We are driving next-generation workflow solutions by creating personalized and integrated workflows which include targeted solutions for

asset managers, asset owners, sell side, wealth and corporate clients.

Our goal is to deliver tangible efficiencies to our clients by connecting data and analytics with a cloud based eco-system, enabling them to manage work more effectively through an integrated investment lifecycle.

We are scaling up our content refinery to offer a comprehensive and connected inventory of industry, proprietary, and third-party data for the financial community.

This data includes granular data for key industry verticals, private companies, wealth management, real-time data, and environmental, social and governance data ("ESG").

We are driving personalized workflow solutions for financial professionals, including asset managers, bankers, wealth managers, asset owners, channel partners, hedge funds, corporate users and private equity and venture capital professionals.

We offer an open ecosystem with solutions and content that is accessible and flexible through a myriad of delivery methods.

Our goal is to deliver cloud-based data and analytics to our clients, enabling them to more efficiently manage their workflows.

• Delivering execution excellence:

Building a more agile and digital first-minded organization that increases the speed of our product creation and go-to-market strategy.

To capitalize on market trends and give our clients innovative tools, we plan to release new products built on a cloud-based digital foundation as well as migrating our existing data and applications to the cloud.

Additionally, we expect to rationalize our existing product portfolio to reinvest in higher return products.

We are building an agile organization that accelerates product creation and content collection.

We offer new products designed for delivery via the cloud, making them highly efficient for our clients.

We will continue to employ technology to accelerate the pace of content collection and drive expertise in complex data sets such as private companies, ESG and deep sector.

Additionally, we are improving our price realization through consistent packaging and internal governance.

• Driving a growth mindset:

Recruiting, training and empowering a diverse and operationally efficient workforce to drive sustainable growth.

To drive a more performance-based culture, we are investing in talent who can create leading technological solutions, efficiently execute our go-to-market strategy and achieve our growth targets.

At the center of our strategy is the relentless focus on our clients and their FactSet experience.

We want to be a trusted partner and service provider, offering hyper-personalized digital products for clients to research ideas, uncover relevant insights, and leverage cognitive computing to help get the most out of their data and analytics.

Additionally, we continually evaluate business opportunities such as acquisitions and partnerships to help us expand our capabilities and competitive differentiators across the investment portfolio lifecycle.

We are focused on growing our global business in three segments:

To drive sustainable growth, we are recruiting, training and empowering a diverse and operationally efficient workforce.

As a performance-based culture, we are investing in talent that can create leading technological solutions and efficiently execute our strategy.

We use partnerships and acquisitions to accelerate our growth in strategic areas.

Our strategy centers on relentless focus on our clients and their FactSet experience.

We aim to be a trusted partner and service provider, offering personalized digital products powered by cognitive computing to research ideas and uncover relevant insights.

Additionally, we continually evaluate business opportunities such as partnerships and acquisitions to increase our capabilities and competitive differentiation.

We are focused on growing our global business through three segments:

the Americas, EMEA and Asia Pacific.

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Research & Advisory

Our Research & Advisory workflow is designed to personalize and automate vital aspects of the research process, providing idea generation, company and market analysis, presentation building and distribution, and research management.

Research offerings focus on providing tools that optimize workflows of portfolio managers, buy and sell side analysts, investments bankers, investment relationship professionals and other clients within our expanding user base.

Our workstation, mobile, API, and Research Management Solutions ("RMS") easily integrate with our clients’ ecosystems, powering a streamlined workflow and enabling users to focus more time on high-value tasks.

Our RMS & advisory solutions also enable our wealth clients to provide market leading support across their entire enterprise, including home office, advisory, and client engagement.

These solutions deliver essential and integrated content into one flexible platform with global coverage, deep history, and transparency through both FactSet and third-party sourced databases.

Research & Advisory delivers essential content and workflow solutions in one flexible platform for investment bankers, wealth advisors, buy and sell-side analysts, corporate users, portfolio managers and investment relationship professionals.

Our workstation, advisor dashboard, research management solutions (“RMS”), and FactSet for client relationship management (CRM) enable our clients to personalize and automate their workflows.

These tools provide insight and efficiency for idea generation, company and market analysis, fundamental research, presentation building and distribution, and research management.

Our Research & Advisory solutions also offer global coverage, deep history, and transparency through proprietary and third-party sourced databases.

These solutions provide deep company and sector-specific analyses, spanning the public and private markets.

Our solutions easily integrate with our clients’ technology, offering additional flexibility through mobile, API, and web-based components.

Our RMS and advisory solutions also enable our wealth clients to provide market-leading support for their businesses, including home office, advisory, and client engagement work.

Analytics & Trading

Analytics & Trading provides solutions for institutional asset managers and asset owners across the investment portfolio lifecycle, connecting all essential front and middle office investment functions.

Fundamental and quantitative research, portfolio construction, order management and trade execution tie into advanced portfolio attribution and performance measurement, risk management, and reporting.

The proprietary and third-party models, concorded data, analytics and reporting are in an open framework supporting flexible access through the platform and APIs, and can be deployed as an enterprise system that meets evolving, holistic multi-asset class needs or as individual workflow components that can connect into our clients’ investment technology ecosystems.

CTS focuses on delivering data directly to our clients by leveraging FactSet's core content and technology.

Clients seamlessly discover, explore, and access organized and connected content via multiple delivery channels.

Whether a client needs market, company, alternative data, or customized client facing digital solutions, we provide structured data through a variety of technologies, such as APIs and cloud infrastructures.

Analytics & Trading provides solutions for institutional asset managers and asset owners across the investment portfolio lifecycle, connecting essential front and middle office investment functions.

Our tools connect together fundamental and quantitative research, portfolio construction, order management and trade execution.

These outputs can then tie into advanced portfolio attribution and performance measurement, risk management, and reporting functions.

An open framework supports our proprietary and third-party models, connected data, analytics and reporting.

Our platform and APIs can be deployed as an enterprise system that meets multi-asset class needs or as individual workflow components.

Additionally, Analytics & Trading's tools can integrate client holdings data with global market data for fundamental and quantitative research, portfolio construction, and trade simulation.

Our order management and trade execution solutions also efficiently connect to portfolio attribution and performance measurement requirements, risk management functions and reporting requirements.

CTS focuses on delivering data directly to our clients by leveraging our core content and technology.

Clients can seamlessly discover, explore, and access organized and connected content via multiple delivery channels.

Whether a client needs market data, company data, alternative data, customized client facing digital solutions or data elements uniquely identifying financial instruments, we provide structured data through a variety of technologies, including APIs and cloud infrastructures.

Through our data management services (DMS), we provide entity mapping and integration of client data.

Our symbology links and aggregates a diverse set of content sources to ensure consistency, transparency, and data integrity across a client’s business.

By enabling our clients to utilize their preferred choice of cloud infrastructure and industry standard databases, programming languages, and data visualization tools, our clients can centralize, integrate, and analyze disparate data sources for faster and more cost-effective decision making.

Our symbology links and aggregates a diverse set of content sources to ensure consistency, transparency, and data integrity.

We are the exclusive provider of the Committee on Uniform Security Identification Procedures ("CUSIP") and CUSIP International Number System ("CINS") identifiers globally, acting as the official numbering agency for International Securities Identification Number ("ISIN") identifiers in the United States and as a substitute number agency for more than 35 other countries.

By enabling our clients to utilize their preferred choice of cloud infrastructure and industry standard databases, programming languages and data

visualization tools, we empower our clients to centralize, integrate, and analyze disparate data sources for faster and more cost-effective decision making.

FactSet Clients

Buy-side clients continue to shift increasingly towards multi-asset class investment strategies and we are well-positioned to be a partner of choice in this space.

Our ability to provide enterprise-wide solutions to our clients across their entire workflow, covering virtually every asset class, enables us to compete for greater market share.

Buy-side clients primarily include asset managers, asset owners, wealth managers, hedge funds, corporate firms and channel partners.

They access our multi-asset-class tools by utilizing our workstations, Analytics & Trading tools, proprietary content, data feeds, APIs and portfolio services.

The buy-side annual subscription value ("ASV") growth rate for fiscal 2021 was 6.5%.

Buy-side clients continue to shift increasingly toward multi-asset class investment strategies and we are well-positioned to be a partner of choice in this space.

Our ability to provide enterprise-wide solutions to our clients across their entire workflow, leveraging their portfolio data across multiple asset classes, enables us to compete for greater market share.

Buy-side clients primarily include asset managers, wealth managers, asset owners, channel partners, hedge funds and corporate firms.

They access our multi-asset class tools by utilizing our workstations, Analytics & Trading tools, proprietary and third-party content, data feeds, APIs and portfolio services.

The buy-side organic annual subscription value ("Organic ASV") growth rate for fiscal 2022 was 8.5%.

Buy-side clients accounted for 83% of our ASV as of August 31, 2022.

ASV at any point in time represents the forward-looking revenue for the next 12 months from all subscription services currently being supplied to clients and excludes professional service fees, which are not subscription-based.

We deliver comprehensive solutions to sell-side clients including workstation, proprietary and third-party content, productivity tools for Microsoft® Office, web and mobile, and RMS for research authoring and publishing.

Refer to Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations, Annual Subscription Value ("ASV") of this Annual Report on Form 10-K for the definitions of Organic ASV.

We deliver comprehensive solutions to sell-side clients including workstation, data feeds, API's, proprietary and third-party content, productivity tools for Microsoft® Office, web and mobile, and RMS for research authoring and publishing.

Our focus remains on expanding the depth of content offered and increasing workflow efficiency for sell-side firms.

These firms primarily include broker-dealers, banking and advisory, private equity and venture capital firms.

The sell-side ASV growth rate for fiscal 2021 was 12.0%.

These firms primarily include broker-dealers, private equity and venture capital, and banking and advisory firms.

The sell-side Organic ASV growth rate for fiscal 2022 was 13.8%.

Sell-side clients accounted for 17% of our ASV as of August 31, 2022.

Client and User Additions

Our total client count as of August 31, 2021 was 6,453, representing a net increase of 578 or 9.8% in the last 12 months.

primarily driven by an increase in wealth management and corporate clients as well as third-party data providers.

Our total client count as of August 31, 2022 was 7,538, representing a net increase of 16.8%, or 1,085 clients in the last 12 months, mainly due to an increase in corporate clients, wealth management clients, and private equity and venture capital firms.

The count includes clients with ASV of $10,000 and above.

As of August 31, 2021 there were 160,932 professionals using FactSet, representing a net increase of 19,796 or 14.0% in the last 12 months, primarily driven by an increase in research, wealth and corporate solutions users.

As of August 31, 2022, there were 179,982 professionals using FactSet, representing a net increase of 19,050 or 11.8% in the last 12 months, mainly driven by an increase in wealth advisory professionals from our wealth management clients, as well as an increase in sell-side users from our banking clients.

Annual ASV retention was greater than 95% for the period ended August 31, 2022 and August 31, 2021.

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Organic ASV plus Professional Services Growth

Organic ASV plus Professional Services at any point in time equals our forward-looking revenue for the next 12 months from all subscription services currently being supplied to clients, excluding ASV from acquisitions and dispositions completed within the last 12 months and the effects of foreign currency movements on the current year period, plus professional services.

As of August 31, 2021, our Organic ASV plus Professional Services totaled $1.68 billion, up 7.2% over the prior year comparable period.

As of August 31, 2022, our Organic ASV plus Professional Services totaled $1.8 billion, up 9.3% compared with August 31, 2021.

Organic ASV increased across all our geographic segments with the majority of the increase related to the Americas, followed by EMEA and Asia Pacific.

This increase was driven by additional sales in our workflow solutions, primarily in Analytics & Trading, CTS and Research.

This increase was driven by additional sales in our workflow solutions, primarily in Research & Advisory and Analytics & Trading, followed by CTS.

Refer to Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations, Annual Subscription Value ("ASV") of this Annual Report on Form 10-K for the definitions of Organic ASV plus Professional Services.

The following chart provides a snapshot of our historic Organic ASV plus Professional Services growth:

(in millions)

Financial Information on Geographic Areas

Operating segments are defined as components of an enterprise that have the following characteristics:

(i) they engage in business activities from which they may earn revenue and incur expense, (ii) their operating results are regularly reviewed by the chief operating decision maker ("CODM") for resource allocation decisions and performance assessment, and (iii) their discrete financial information is available.

At FactSet, our Chief Executive Officer ("CEO") functions as our CODM.

Our operating segments are aligned with how our CODM manages the business and the geographic markets in which we serve, with a primary focus on providing integrated global financial and economic information.

Our internal financial reporting structure is based on three reportable segments:

(i) they engage in business activities from which they may earn revenues and incur expenses, (ii) their operating results are regularly reviewed by the chief operating decision maker ("CODM") for resource allocation decisions and performance assessment, and (iii) their discrete financial information is available.

Our Chief Executive Officer ("CEO") functions as our CODM.

Our operating segments are consistent with our reportable segments ("segments") and how we, including our CODM, manage our business and the geographic markets in which we serve.

Our internal financial reporting structure is based on three segments:

the Americas;

and Asia Pacific.

Through fiscal 2021, within each of our segments, we delivered insight and information based on four workflow solutions:

Analytics & Trading;

Beginning with our 2022 fiscal year, we have reorganized our workflows into three solutions:

Research & Advisory;

Analytics & Trading;

and CTS, to better align our products and go-to-market strategy.

These workflow solutions provide global financial and economic information to investment managers, investment banks and other financial services professionals.

The Americas segment serves our clients throughout North, Central, and South America, with offices in 13 states throughout the United States ("U.S."), including our corporate headquarters in Norwalk, Connecticut, and an office in both Brazil and Canada.

The EMEA segment serves our clients in countries in Europe, the Middle East and Africa and maintains office locations in Bulgaria, England, France, Germany, Italy, Latvia, Luxembourg, the Netherlands, South Africa, Spain, Switzerland and the UAE.

The Asia Pacific segment serves our clients in countries in Asia and Australia and includes office locations in Australia, China, Hong Kong, India, Japan, the Philippines, and Singapore.

Segment revenue reflects sales to our clients based in these respective geographic locations.

The EMEA segment serves our clients in Europe, the Middle East and Africa and maintains office locations in Bulgaria, England, France, Germany, Italy, Latvia, Luxembourg, the Netherlands, Sweden and the United Arab Emirates .

The Asia Pacific segment serves our clients in Asia and Australia and includes office locations in Australia, China, Hong Kong Special Administrative Region ("SAR") of China, India, Japan, the Philippines, and Singapore.

These offices exclude any leases that we have fully vacated in advance of their originally scheduled lease term.

Segment revenues reflect sales to our clients based on the respective geographic locations.

Each segment records expenses related to its individual operations with the exception of expenditures associated with our data centers, third-party data costs and corporate headquarters charges, which are recorded by the Americas segment and are not allocated to the other segments.

The content collection centers, located in India, the Philippines, and Latvia, benefit all our operating segments, and thus the expenses incurred at these locations are allocated to each segment based on a percentage of revenue.

The expenses incurred at our content collection centers, located in India, the Philippines, and Latvia, are allocated to each segment based on a percentage of revenues as this reflects the benefits provided to each segment.

Refer to Note 18, Segment Information in the Notes to the Consolidated Financial Statements included in Part II, Item 8.

of this Annual Report on Form 10-K for the results of operations and financial information for each of our segments.

The following charts depict revenue related to our reportable segments.

The following graphics illustrate revenues related to our segments.

( in millions)

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Of our total employees, 7,401 (66%) were located in Asia Pacific, 2,400 (21%) in the Americas and 1,402 (13%) in EMEA.

In order to optimize productivity, we have invested in expanding o ur footprint and talent pool in India and the Philippines, where we now have a combined workforce of approximately 6,800 employees.

Functionally, 22% of our employees are in Sales and Client Solutions;

30% are in Technology & Product Development;

44% are in Content Operations;

and 4% are in Corporate Support.

As of August 31, 2021 and August 31, 2020, 460 of our employees were represented by mandatory works councils within certain of our French and German subsidiaries.

No other FactSet employees are represented by collective bargaining agreements.

To optimize productivity, we have invested in expanding our footprint and talent pool in India and the Philippines, where we now have a combined workforce of approximately 7,100 employees.

Functionally, 21% of our employees were in Sales and Client Solutions;

29% were in Technology & Product Development;

45% were in Content Operations;

and 5% were in Corporate Support.

As of August 31, 2022, 393 of our employees were represented by mandatory works councils within certain of our French and German subsidiaries and 24 of our employees were represented by collective bargaining agreements in the United States.

Our Purpose and Values

Our purpose is to drive the investment community to see more, think bigger, and do their best work.

Intense client focus and support is a critical component of our strategic aim and operational approach.

Our employees are critical to our success and enable us to execute at a high level.

Intense client focus and support are critical components of our strategy and operational approach.

Our employees are key to our success and enable us to execute at a high level.

We have built a collaborative culture that recognizes and rewards innovation and offers employees a variety of opportunities and experiences.

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We conduct an annual, anonymous and confidential global employee engagement survey administered by a third party to capture our employees’ constructive feedback on a broad range of topics.

The survey's scores and comments provide insight on appropriate action to improve our employees’ experience and our overall effectiveness as an organization.

Aggregated survey results are reviewed by executive and senior leadership and direct managers to analyze and identify company-wide and

individual operational unit focus areas and action plans for improvement.

We share survey results with all employees to highlight areas that employees believe are strengths of FactSet and reflect on areas where employees feel there are opportunities for positive change.

The survey's scores and comments provide insight on appropriate actions to improve our employees’ experience and overall effectiveness as an organization.

Aggregated survey results are reviewed by executive and senior leadership and direct managers to analyze and identify company-wide and individual operational unit focus areas and action plans for improvement.

We share survey results throughout our company to highlight areas that employees believe are our strengths and reflect on areas where employees feel there are opportunities for positive change.

Progress on initiatives is tracked to ensure that the actions taken address the underlying issues and promote an environment of continuous improvement.

In our fiscal 2021 employee engagement survey, we achieved a 92% response rate, indicating that we heard from the vast majority of our employees.

Our overall engagement at the Company level was our highest since we implemented this survey.

We increased scores for all questions at the Company level, and in over 10,000 comments received, employees told us that they felt supported through the COVID-19 pandemic and continue to have pride in their work, colleagues, and company.

Our highest scores were in the areas of diversity, equity and inclusion and employee’s understanding of how they contribute to FactSet’s success, reflecting our culture where employees feel that they are treated fairly and are comfortable being themselves.

In our fiscal 2022 employee engagement survey, we achieved an 89% response rate, indicating that we heard from the vast majority of our employees.

This strong response rate reflected stable engagement amidst ongoing challenges caused by the COVID-19 pandemic.

We received more than 8,700 comments in response to the survey.

Our highest scores were in the areas of fair treatment, authenticity, and inclusion, indicating that employees feel they are treated fairly, are comfortable being their authentic selves at work, and believe that diverse perspectives are valued at our Company.

Our scores increased from the previous year's survey in the areas of authenticity, work-life balance, and employees feeling satisfied with the recognition they receive for their work.

Diversity, Equity & Inclusion

We recognize that our best ideas can come from anyone, anywhere, at any time, and help us provide the best solutions for our clients around the globe.

We continually seek to expand our workforce with diverse perspectives, backgrounds, and experiences.

By fostering a globally inclusive culture, we enable our people to be themselves at work and to join in, be heard, contribute, and grow.

Together, we work to recruit, advance, and engage talent at FactSet with an inclusive culture unified by the FactSet spirit of going above and beyond.

In fiscal 2021, we continued our strong commitment to Diversity, Equity & Inclusion ("DE&I") in the following ways:

Governance & Leadership Commitment

DE&I at FactSet begins with a commitment from our CEO and the entire FactSet leadership team to improve diversity representation as part of our DE&I strategy.

In Fiscal 2021, we strengthened our DE&I governance by creating the FactSet Global DE&I Council, consisting of over 20 senior leaders from across FactSet who are empowered to drive our DE&I progress and create strategic accountability for DE&I results.

In addition, our senior leaders serve as Executive Sponsors for our Business Resource Groups ("BRGs"), or employee networks.

Global DE&I Strategy

In fiscal 2021 we refreshed our DE&I strategy and expanded its scope.

Our new DE&I strategy consists of three impact areas - Workforce, Marketplace and Society - with twelve levers to drive these impact areas.

For Workforce, the levers are leadership commitment, transparency and accountability, people processes, retention and advancement, recruitment, education and engagement, leading ultimately to inclusion, equity and belonging.

For Marketplace, our levers are supplier diversity and collaboration with clients, with a goal to increase economic opportunity.

For Society, our levers are investments, contributions and corporate voice, designed to drive social justice.

Investment in DE&I Resources

In order to deliver on our commitments, we have significantly increased our investment in DE&I, both in staffing and budget.

This includes the appointment of our first ever Chief DE&I Officer who leads a team of five dedicated DE&I staff globally.

Key DE&I Actions Taken in FY2021

During fiscal 2021, for the first time, we published our workforce demographics (including sharing our EEO-1 Federal data) in our annual Corporate Responsibility report.

By reporting our workforce demographics, we made a visible step in our DE&I commitment as we aspire to change the composition of our employee demographics by 2023 to better include underrepresented groups.

For example, we aim to increase the percentage of women at FactSet overall, and specifically the percentage of women in our leadership group (vice president level and above) and in our technical areas.

We will continue to report on our progress annually to increase transparency and to facilitate accountability.

Other DE&I actions taken during Fiscal 2021 included:

launching new BRGs globally;

providing education on DE&I topics across our organization;

joining the Human Rights Campaign Business Coalition for the Equality Act and MLT Black Equity At Work;

providing opportunities for two employees, on full pay/benefits, to join the CEO Action for Racial Equity Fellowship;

holding all-staff DE&I events such as #StopAsianHate;

launching our Racial Justice Allies initiative;

creating a new Diversity Recruitment role and changing our recruitment processes to mandate diverse interview slates while developing relationships with historically black colleges and universities (HBCUs);

and observing Juneteenth as a paid holiday in the U.S.

Supporting Our Employees Through COVID-19

As the onset and spread of the COVID-19 pandemic created uncertainty and anxiety, our highest priority concern has been the health and safety of our employees, our families and our communities.

During fiscal 2021, we required the vast majority of our employees at our offices across the globe (including corporate headquarters) to work remotely on a temporary basis, and provided them with support to be able to continue to work productively while being remote.

We presented regular all-company meetings led by our CEO and offered extensive benefit resources and mental health support.

As part of our core values, we are committed to advancing Diversity, Equity, and Inclusion ("DE&I") at every level.

To this end, we have developed a global DE&I strategy focusing on three impact areas:

workforce, marketplace, and society.

We are proud of the positive progress we have made in each of these areas as we deepen our DE&I commitment around the world.

DE&I at our Company has been governed by our DE&I Council, which we refreshed in 2022.

The Council is chaired by our CEO, Phil Snow, and consists of 13 senior leaders who are empowered to drive our DE&I progress.

As part of this visible leadership commitment, we signed the CEO Action for Diversity and Inclusion Pledge, joining more than 2,000 companies actively supporting more inclusive workplaces and communities.

We have also partnered with MLT Black Equity at Work to hold ourselves accountable for our DE&I progress.

During fiscal 2022, we accelerated our accountability efforts by continuing to embed DE&I into our talent processes, including performance reviews, promotions, and the allocation of equity awards.

This allows us to make a greater impact while investigating statistical differences and taking any resulting appropriate action.

We also continue to publish our workforce demographics, including our annual EEO-1 Federal data, in our Sustainability Report.

By reporting our workforce demographics, we make a visible step in our DE&I commitment as we aspire to change the composition of our employee demographics to better include underrepresented groups.

Our goals include increasing the percentage of women at our Company overall, and specifically the percentage of women in our leadership group (vice president level and above) and in our technical areas.

We report on our progress annually to increase transparency and to facilitate accountability.

We are building a culture of sponsorship across the organization to proactively provide growth opportunities and enhance retention through an initiative connecting senior leaders with underrepresented talent for advocacy and visibility.

As we continue to diversify our talent pipelines, we have maintained our MESH (Mentor, Engage, Support & Hire) externship program for underrepresented college students interested in financial technology.

This program continued for the second year in the U.S.

and was launched for the first time in the U.K.

In addition, we piloted an internship program at Norwalk Community College, located near our corporate headquarters in Norwalk, Connecticut, to provide career pathways for computer science students.

As a key component of our drive to ensure fair and equitable administration of pay, in fiscal 2022 we completed a global pay equity review.

We engaged an outside firm to assess the degree of systemic gender equity in the salaries of our employees worldwide and the degree of systemic race/ethnicity equity in the U.S.

After controlling for various salary-influencing factors, the study found that there was not a statistically significant association at our Company between salary and gender worldwide, or between salary and race/ethnicity in the U.S.

The study found that, on a global basis at our Company, women are paid more than 99% on average of what men are paid and that, on a U.S.

basis, minority employees are paid 100% on average of what non-minority employees are paid.

Attention to pay equity will continue to be a DE&I priority.

Our Business Resource Groups ("BRGs") are a critical component in fostering an inclusive work environment for all employees.

Our BRGs (Asian BRG, Black BRG, Families BRG, Pride BRG, Multicultural BRG, Latinx BRG, Women’s BRG, and Veterans BRG) host a variety of educational, informational, and aspirational events, including business networking opportunities, and heritage months.

Our BRGs also host many co-sponsored external events and year-round engagement such as community events, expos, seminars, and summits.

In addition, our senior leaders serve as executive sponsors for our BRGs to demonstrate leadership support for these efforts.

To recognize the significant contributions of our BRGs, we have launched the BRG Recognition Program which provides equity awards to BRG leaders at the co-chair level and steering committee level who have gone above and beyond in their commitment to DE&I at our Company.

BRG Steering Committee leaders also have a 10% weighting of their overall review evaluation based upon their BRG leadership to elevate these contributions within their performance.

To further our efforts in building an inclusive workplace where all employees feel a sense of belonging, we have launched the Global Gender Inclusivity policy that supports and respects the rights and identities of all employees, and we have achieved a 100% score on the Human Rights Campaign Equality Index for seven consecutive years.

Inclusive education also continues to be a priority through the provision of a variety of educational opportunities such as Conscious Inclusion training, the Interfaith Education series, Racial Justice Allies, and Unconscious Bias training.

In addition, we have rolled out NameCoach, a name pronunciation tool.

During fiscal 2022, we created a Supplier Diversity function and are currently performing an audit of minority-owned spend and suppliers to assist in setting future goals.

We have extended our DE&I programming and events to spread inclusivity and global influence, as well as embedding a multi-level culture of sponsorship through external organizations to help provide learning opportunities, enhance retention, and intentionally support our DE&I goals.

In addition to signing the CEO Action for Diversity and Inclusion Pledge, we sponsored two employees to participate full-time in the CEO Action for Racial Equity Fellowship.

This hands-on contribution has allowed us to take an active part in advancing policy change in the U.S.

We are also going further to help strengthen and promote racial justice through economic opportunities, such as depositing funds during fiscal 2022 in a Black equity-focused financial institution, as a step toward creating real and tangible change in the communities in which we operate.

Since the onset of the COVID-19 pandemic, our highest priority concern has been the health and safety of our employees, our families and our communities.

We initially required the vast majority of our employees at our offices across the globe to work remotely and provided them with support to be able to ensure business continuity.

We increased the frequency of all-company meetings led by our CEO and offered extensive benefit resources and mental health support.

Employees were offered additional paid time off for COVID-19 illness and family care and to receive and recover from COVID-19 vaccinations.

We have begun to re-open offices and welcome employees back, utilizing a three-phased approach to provide flexibility for employees with a focus on safety.

Our offices will not re-open until local authorities permit us to do so and our own criteria and conditions to ensure employees health and safety are satisfied.

Additionally, we have been implementing and will continue to support a variety of work options, such as flexible work arrangements permitting remote working or “hybrid” arrangements with the ability to split time between working remotely and in the office.

We have since re-opened our offices and welcomed our employees back.

Our offices did not re-open until local authorities permitted us to do so and our own criteria and conditions to ensure employees health and safety were satisfied.

In fiscal 2022, based on our success working in a remote environment during the COVID-19 pandemic, we rolled out our "How We Work" guide to flexible working arrangements under which employees in many of our locations, where permitted by local laws and regulations, and where the role permits, have the opportunity to choose between different work arrangements, including the ability to work in the office, remotely or in a hybrid arrangement with the ability to split time between working remotely and in the office.

Additionally, employees whose positions are not aligned to fixed working hours may elect to work a flextime schedule, working the same number of hours as is considered standard in their office location or employment contract, but during different times in the working day.

We have found that these new standards support our employees in being their most productive selves at work and in their personal lives.

These arrangements preserve the benefit of flexibility while retaining talent, fostering creativity, innovation, collaboration, and enabling mentorship, all key drivers behind employees’ productivity, satisfaction, and success.

Furthermore, these provisions support our commitment to creating a diverse, equitable, and inclusive workplace, removing barriers to augment our opportunity to attract and retain talent.

Learning & Development

At FactSet, we are lifelong learners.

We believe that learning and development emboldens our employees, fosters outperformance with a growth mindset, demonstrates our commitment to core values, and contributes to the success of FactSet’s culture and business.

This year we centralized and expanded our Global Learning & Development department, allowing us to better leverage the training, content, product, and technology expertise that exists across our business lines to provide all employees with more opportunities to learn and grow their careers with FactSet.

As a commitment to making learning accessible for employees around the world, our CEO and Executive Leadership Team strongly encourage all employees to set aside four hours each month for active learning.

During fiscal 2021, we launched LinkedIn Learning for all FactSet employees, providing curated content by experts in numerous fields, allowing employees to take courses based on their interests, performance goals, and/or professional enrichment.

In addition to LinkedIn Learning and other third-party eLearning providers, we create hundreds of in-house eLearnings each year to help our employees learn about our business, industry, clients, and products.

In response to the COVID-19 pandemic, all employee education was quickly transitioned to virtual classrooms.

As employees adjusted to remote work and a changing world, we offered eLearning on remote working, remote collaboration tools, and mental health.

Compensation, Benefits and Well-being

FactSet offers our employees a broad range of competitive compensation, benefits and well-being programs which are designed to meet the diverse needs of our global employee population and which are reflective of our Company’s values and culture.

Offering competitive and performance-focused compensation is essential to our talent strategies regarding recruitment, development, and retention.

Programs are designed to be competitive in the markets in which we compete for talent and align with the short and long-term objectives of FactSet and our individual business units.

We are lifelong learners.

We believe that learning and development emboldens our employees, fosters outperformance with a growth mindset, demonstrates our commitment to our core values, and contributes to the success of our culture and business.

During fiscal 2022, we significantly increased our asynchronous learning opportunities in a variety of areas.

We expanded our resources and built multiple learning paths to ensure our engineers have access to the best online learning resources on cutting-edge technologies.

Our new Industry Development Program (IDP) is a 40-hour, on-demand program designed to onboard industry hires who have business experience and a sales focus.

We also released career development resources which provide employees with access to tools such as Career Progression Plans, curated Skill Taxonomies, and relevant eLearning courses.

In addition to our expanded partnerships and targeted programs, we created hundreds of in-house eLearning courses to help our employees learn about our business, industry, clients and products.

This year we also re-initiated in-person learning programs, hosting our campus onboarding programs for Sales and Engineering staff in three global locations:

Manila, London, and Norwalk.

We also invited all campus hires who joined our Company since March 2020 back to our regional headquarters for a two-day summit focused on network building and our core values.

We also conducted a shorter, topic-focused survey toward the end of fiscal 2022 to assess the impact of our Learning & Development strategy and programs on employee engagement.

We achieved a 61% response rate, with more than 2,300 comments received.

Our highest scores indicated that we are actively supporting employee efforts to acquire additional training and experiences and we are supporting employees to develop the professional skills needed to succeed at their jobs.

Survey data also showed that we are providing opportunities for employees to have meaningful discussions with management about career development.

Compensation, Benefits and Wellbeing

We offer our employees a broad range of competitive compensation, benefits and wellbeing programs designed to meet the diverse needs of our global employee population and which are reflective of our values and culture.

Offering competitive.

performance-focused compensation is essential to our talent strategies regarding recruitment, development, and retention.

Programs are designed to be competitive in the markets in which we compete for talent and align with the short and long-term objectives of our Company and our individual business units.

Our employee compensation may include one or more of the following elements:

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We differentiate individual salary, bonus and equity awards based on performance against key objectives and how effectively our managers and employees demonstrate behaviors consistent with our values and culture.

FactSet is committed to offering high-quality, affordable, locally competitive benefits options designed to meet the needs of our employees and their families and to support our employees’ physical, emotional, financial, and social well-being at every stage of life.

Employees in all FactSet locations globally have access to an Employee Assistance Program, providing employees and their immediate family members access to experienced professional counselors for personal and professional support.

We are committed to offering high-quality, affordable, locally competitive benefits options designed to meet the needs of our employees and their families and to support our employees’ physical, emotional, financial, and social wellbeing at every stage of life.

Employees in all our locations globally have access to an Employee Assistance Program, providing them and their immediate family members access to experienced counselors for personal and professional support.

In addition to offering access to professional counseling services, we provide our employees and families with education and resources.

We provide regular updates on health coverage and resources available through our health plans.

We are committed to building a culture of wellbeing that empowers employees to be their authentic selves and thrive in all areas of their lives.

We believe that wellbeing is a unique journey, and we are invested in understanding the needs of every individual to m eet them where they are.

By enabling our employees to put their wellbeing first, they can be their best selves at home, work, and anywhere in between.

Third-Party Content

We aggregate content from third-party data suppliers, news sources, exchanges, brokers and contributors into our dedicated managed database, which our clients access through our flexible delivery platforms to perform their analysis.

We aggregate content from third-party data suppliers, news sources, exchanges, brokers and contributors into our dedicated managed databases, which our clients access through our flexible delivery platforms to perform their analysis.

We seek to maintain contractual relationships with a minimum of two content providers for each major type of financial data, though certain data sets on which we rely have a limited number of suppliers.

We make every effort to assure that, where reasonable, alternative sources are available.

We are not dependent on any one third-party data supplier in order to meet the needs of our clients.

We have entered into third-party content agreements of varying lengths, which in some cases can be terminated on one

year’s notice, at predefined dates, and in other cases on shorter notice.

We are not dependent on any one third-party data supplier in order to meet the needs of our clients, with only two data suppliers representing more than 10% of our total data costs for the twelve months ended August 31, 2021.

We have entered into third-party content agreements of varying lengths, which in some cases can be terminated with one year’s notice, at predefined dates, and in other cases on shorter notice.

We are not dependent on any one third-party data supplier in order to meet the needs of our clients, with only two data suppliers each representing more than 10% of our total data costs for the twelve months ended August 31, 2022.

Data Centers and Cloud Computing

Our business is dependent on our ability to process substantial volumes of data and transactions rapidly and efficiently on our networks and systems.

Our global technology infrastructure supports our operations and is designed to facilitate the reliable and efficient processing and delivery of data and analytics to our clients.

Our data centers contain multiple layers of redundancy to enhance system performance, including maintaining, processing and storing data at multiple data centers.

User connections are load balanced between data centers.

In the event of a site failure, equipment problem or localized disaster, the remaining centers have the capacity to handle the additional load.

Our global technology infrastructure supports our operations and is designed to facilitate reliable and efficient processing and delivery of data and analytics to our clients.

As part of our hybrid cloud strategy, we operate two fully redundant, physically separated data centers in the U.S.

that provide client services, while also utilizing premier, market-leading cloud providers to run products and services that best benefit from cloud elasticity, resiliency, security, and regionalization.

We currently use multiple providers of cloud services, however one supplier provided the majority of our cloud computing support for the twelve months ended August 31, 2022.

Our physical data centers contain multiple layers of redundancy to enhance system performance, including maintaining, processing and storing data at multiple locations.

In the event of a single site failure or localized disaster, client workloads will automatically move to unaffected sites.

We continue to be focused on maintaining a global technological infrastructure that allows us to support our growing business.

We continue to operate fully redundant data centers in both Virginia and New Jersey in the U.S.

that can handle our entire client capacity.

In addition, as we look to host more of our infrastructure and products on the cloud, we are migrating select systems and applications to diverse cloud computing regions utilizing premier, market-leading cloud providers.

The Competitive Landscape

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We believe there are high barriers to entry and we expect it would be difficult for another vendor to quickly replicate the extensive data we currently offer.

Through our in-depth analytics and client service, we believe we can offer clients a more comprehensive solution with one of the broadest sets of functionalities delivered through a desktop or mobile user interface or through a standardized or bespoke data feed as well as an API.

In addition, our applications, including our client support and service offerings, are entrenched in the workflow of many financial professionals given the downloadable functionality, instant data refresh and portfolio analysis/screening capabilities offered.

cloud based platforms, or through standardized or bespoke data feeds, as well as APIs.

In addition, our applications and client support and service offerings are entrenched in the workflow of many financial professionals given the data management and portfolio analysis/screening capabilities offered.

We are entrusted with significant amounts of our clients' own proprietary data, including portfolio holdings.

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Research & Product Development Costs

A key aspect of our growth strategy is to offer new solutions and enhance our existing products and applications by making them faster with more reliable data.

A key aspect of our growth strategy is to offer new solutions and enhance our existing products and applications by making them faster, with more reliable and greater depth of data.

We strive to rapidly adopt new technology that can improve our products and services.

We do not have a separate research and product development department, but rather rely on these departments to work closely with our strategists, product managers, sales and other client-facing specialists to develop new products and process innovations and enhance existing products.

These costs primarily consist of personnel-related expenses, such as salaries and related benefits for our product development, software engineering and technical support departments and, if not capitalized, are included in employee compensation (found within of Cost of Services expense and Selling, general, and administrative ("SG&A") in the Consolidated Statements of Income).

Research and product development costs include the salary and benefits for our product development, software engineering and technical support staff working on these initiatives.

We incurred research and product development costs of $250.1 million, $224.0 million, and $214.7 million during fiscal years 2021, 2020, and 2019, respectively.

Government Regulation

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Executive Officers of the Registrant

The following table shows FactSet’s current executive officers:

The following table shows our current executive officers:

Name of Officer Age Office Held with FactSet Officer Since

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Stern 57 Executive Vice President, Chief Legal Officer, Global Head of Strategic Resources and Secretary 2009

Fernandez 54 Executive Vice President, Chief Technology and Content Officer 2017

Robie 44 Executive Vice President, Head of Analytics & Trading Solutions 2018

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Jonathan Reeve 54 Executive Vice President, Head of Content & Technology Solutions 2021

John Costigan 53 Executive Vice President, Chief Content Officer 2022

Stepp 37 Executive Vice President, Chief Technology Officer 2022

Philip Snow – Chief Executive Officer .

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Huber was appointed Executive Vice President, Chief Financial Officer of FactSet in October 2021.

As Chief Financial Officer, she is responsible for FactSet’s global finance organization and oversees all financial functions, including accounting, corporate development, financial planning and analysis (FP&A), treasury, tax, and investor and media relations.

Prior to joining FactSet, Ms.

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Stern received a Bachelor of Arts from Yale University, a Master of Arts from the University of London and a Juris Doctor from the University of Pennsylvania Law School.

Fernandez – Executive Vice President, Chief Technology and Content Officer.

Fernandez was appointed Chief Technology and Content Officer in July 2021.

He joined FactSet as Chief Technology and Product Officer in November 2017 from J.P.

Morgan, where he served as the Chief Technology Officer, New Product Development.

In this role, he developed the strategy and built the engineering function responsible for new product innovation.

During a decade at J.P.

Fernandez held various other roles, including Chief Technology Officer for Client Technology and Research and Banking

Information Technology.

Prior to J.P.

Morgan, he worked at Credit Suisse and Merrill Lynch.

Fernandez received a Bachelor of Science in Computer Science and Economics from Rutgers University.

Robie – Executive Vice President, Head of Analytics & Trading Solutions.

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In his current role, he oversees strategy, research, development and engineering for Analytics & Trading platforms.

Robie joined FactSet in July 2000 as a Product Sales Specialist.

Robie joined FactSet in July 2000 as a Product Sales

During his tenure at FactSet, Mr.

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Shan was appointed Executive Vice President, Chief Revenue Officer effective May 3, 2021.

As the Chief Revenue Officer, she is responsible for driving revenue growth by managing global sales, client solutions, and marketing.

As the Chief Revenue Officer, she is responsible for driving revenue growth by managing global sales, client solutions, marketing and media relations.

Shan joined FactSet as Chief Financial Officer in September 2018 where she oversaw all financial functions at FactSet.

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Goran Skoko – Executive Vice President, Managing Director EMEA and Asia Pacific, Head of Research & Advisory Solutions.

Skoko was appointed Executive Vice President, Managing Director EMEA and Asia Pacific and Head of Research & Advisory in July 2021.

Skoko was appointed Executive Vice President, Managing Director EMEA and Asia Pacific and Head of Research & Advisory Solutions in July 2021.

In his current role, Mr.

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Jonathan Reeve – Executive Vice President, Head of Content & Technology Solutions.

Reeve was appointed Executive Vice President, Head of Content & Technology Solutions at FactSet in October 2021.

As Head of Content & Technology Solutions, he oversees and leads the development of FactSet’s off-platform products, including financial data solutions, application technologies, and the delivery of FactSet proprietary and third-party content over our data feeds, API’s, Open FactSet Marketplace, and cloud-delivery solutions.

Reeve was appointed Executive Vice President, Head of CTS at FactSet in October 2021.

As Head of CTS, he oversees and leads the development of FactSet’s off-platform products, including financial data solutions, application technologies, CUSIP Global Services, and the delivery of FactSet proprietary and third-party content over our data feeds, API’s, Open FactSet Marketplace, and cloud-delivery solutions.

Reeve joined FactSet in April 2020 as Senior Vice President and Head of Content & Technology Solutions.

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Earlier in his career, he held various positions at S&P Global, including Chief Data Officer and Head of Product & Content for the S&P Market Intelligence Division.

Reeve earned a B.A in Economics from Concordia University in Montreal.

Reeve earned a B.A.

in Economics from Concordia University in Montreal.

John Costigan – Executive Vice President, Chief Content Officer.

Costigan was appointed Chief Content Officer of FactSet in April 2022.

As Chief Content Officer, he is responsible for FactSet's enterprise-wide Content Strategy and leads Content Development from planning through production.

This includes Content's Digital Transformation using modern techniques and technology to drive timeliness, accuracy, coverage, consistency and usability across all FactSet Content assets.

Costigan has been at FactSet since September 2007 in a variety of roles.

Prior to joining FactSet, Mr.

Costigan served as Vice President, Product Management at Thomson Financial, and spent 11 years in a variety of Product Management roles at First Call, Autex, ILX, and Tradeweb.

Costigan earned a bachelor's degree in Economics from St.

Michael's College.

Stepp – Executive Vice President, Chief Technology Officer.

Stepp was appointed Chief Technology Officer, effective September 1, 2022.

As Chief Technology Officer, she is responsible for leading FactSet's technology organization and overseeing its digital transformation strategy.

Stepp joined FactSet in 2008 and previously served as Senior Director of Product Management within FactSet's Research and Advisory workflow solutions business.

Prior to that role, she was Senior Director of Engineering within FactSet's Research workflow solutions business.

Stepp holds a B.S.

in Computer Science from Carnegie Mellon University.

Additional Information

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business