FactSet Research Systems Inc. (NYSE:FDS) Q4 2020 Earnings Conference Call - Final Transcript

Sep 24, 2020 • 11:00 am ET

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FactSet Research Systems Inc. (NYSE:FDS) Q4 2020 Earnings Conference Call - Final Transcript

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Q & A
Executive
Helen Shan

we are, I'll say, reinvesting some of that back into the business, not all of it, but that is part of what, when we gave our guidance for FY '21, built in. So we do think that there are some, you were calling it, structural change, but there will be some level of difference of how we just operate as a business that is taking into consideration.

Analyst
Kevin McVeigh

Thank you. Nice job [Phonetic].

Executive
Helen Shan

You're welcome. Thank you.

Operator
Operator

Our next question comes from Shlomo Rosenbaum with Stifel.

Analyst
Shlomo Rosenbaum

Hi, good morning. Thank you for taking my questions. Hey, Helen, can you talk a little bit about the pipeline and what you're seeing just as you're -- as you -- kind of the cadence of sales running through the quarter and into the first quarter just to give a little bit more color on the support for kind of the accelerating organic growth rate that you're expecting over the course of the year?

Executive
Helen Shan

Sure. Happy to touch on that. So I think, as mentioned by Phil, if we think about our different businesses, in particular for analytics, one of the benefits we've seen over the course of '20, which we think will continue into '21, will be along the lines of expansion, for example, with the reporting and risk and performance. We have found that those who have our core analytics solution within a certain period of time to have those add on. So that expansion is happening. And so, we think that will just continue to build as we go forward. From the CCS perspective, as Phil mentioned, we have additional sales resources, for example, so we think that positions us better, and that will reflect itself into '21. And then, what we're really building into our minds here as it relates to both research and wealth is that solid retention. It is in part buoyed by the investments that we've made, and we would expect that to continue. And we're not looking for any of large deal to necessarily be part of what's going to help us succeed in '21.

Analyst
Shlomo Rosenbaum

Okay, great. And then, can you just give me a little color as to -- the ASV growth rate seems to be -- the expectation at least for the year is lower than the revenue growth rate. And usually, I would look at that as kind of a leading indicator. ASV grows faster in an improving environment and it would decline faster in a slowing environment. Why is that different now?

Executive
Helen Shan

Sure. So there's a little bit of the nature of ASV and revenue, which you hit upon. But when you have a very strong, say, Q4, right, so you're not really recognizing that revenue in the year. You recognize it really in the following, let's say, the next 12 months. So there's a little bit of a lag effect that can occur because you're not going to see that all in there. So, that's really what we're seeing here when we're