FactSet Research Systems Inc. (NYSE:FDS) Q2 2020 Earnings Conference Call - Final Transcript
Mar 26, 2020 • 11:00 am ET
Your first question is from Toni Kaplan with Morgan Stanley. Your line is open.
Thank you so much. Glad to hear you're all well. Given that the quarter ended in February, before a lot of the volatility started to increase, what are the trends that you're seeing in March across the different businesses? If you could just give us like a real-time trends that you're seeing through as late as you possibly could?
Sure. Hey Toni, it's Phil. Hope you're doing fine. So I think as Helen mentioned, during her script, we felt very good about the pipeline going into the second half. And from what we can see today, that pipeline is really hanging in there. So we are still closing deals. Obviously we're talking very closely to our largest clients, some of the bigger deals in the pipeline. And we are anticipating some headwinds. But we're not seeing just an immediate response from the clients, right, in terms of either cutting back services, or completely pushing out things that were in the pipeline that really works.
Got it. And you did mention the pipeline there, and then also that's the strongest that you've had as you ended the quarter. And you mentioned a number of the areas, analytics being very healthy, also research and CTS. Just I guess, which are the best most increased parts of the pipeline? What are you really seeing people signing up for and demanding right now?
Yeah, sure. So let me zoom out a little bit. So I think the area where we're seeing some really great momentum is within the institutional asset management clients. So the core FactSet clients. When we talk about the buy side, there's lots of other firms that are included there, including a lot of wealth clients and the hedge funds, but the core institutional asset management clients this year are doing much better for us than last year. And I attribute a lot of that to the work we've done around the portfolio life cycle, the strength of the analytics products. So a lot of the work we did to integrate the acquisitions that you're all aware of from three years ago is really now beginning to bear fruit. So we can see that with our performance suite, we can see it with the advancements we've made in our risk offering. We're continuing to build momentum in fixed income now that the specialists are back in that business line. Our reporting suite, which was sort of a result of acquiring Vermilion. All of that stuff is doing great. And those are enterprise solutions in many cases, right, so they are not tied to the desktop.
So I'm very excited about that. Obviously, that's a segment of our market that's been under a lot of pressure, but just to see sort of the turnaround, particularly given the recent trends is very promising. Our open platform is resonating. So we have a very healthy pipeline for CTS going