GlobalData is a leading data and analytics company that provides insights into various industries such as healthcare, technology, consumer, etc. The company offers a comprehensive range of data, expert analysis and solutions that enable businesses to make informed decisions and gain competitive advantage. But is GlobalData really a good company to work with or invest in? Let’s analyze some key aspects to determine if GlobalData is a good choice.
Company Overview
GlobalData was founded in 1998 and is headquartered in London, UK. It has offices across Americas, Europe, Asia-Pacific, Middle East and Africa. Some key facts about the company:
– Employs over 4000 people worldwide
– Serves over 4000 customers across different sectors
– Operates in 11 languages
– Has a network of analysts and industry experts
– Offers syndicated, custom and consulting solutions
– Owns proprietary databases of industry intelligence
– Covers over 150 markets
– Revenue of USD 552 million (2020) with adjusted operating profit of USD 174 million
So in a nutshell, GlobalData is a well-established company with global operations, large workforce, extensive customer base and solid financial performance.
Products and Solutions
GlobalData offers a wide array of data and insights covering major industries, emerging markets and key disruptive technologies.
Some of their key offerings are:
– Syndicated Reports – Pre-packaged research reports across different sectors. From healthcare to banking to construction and more.
– Market Modeling Data – Forecasts and predictive intelligence using econometric modeling techniques. Helps with market sizing, trend spotting, etc.
– Survey Data – Consumer and business surveys across industries providing attitudes, usage & penetration data.
– Profiles Database – Detailed profiles of companies, executives, industries, geographies, deals and more.
– Thematic Research – Insight-rich, cutting-edge reports on disruptive themes that impact businesses.
– Consulting Services – Custom consulting and research support as per client needs.
So GlobalData covers both broad industry intelligence as well as specific data-sets, forecasts, surveys and disruptive themes relevant to enterprises and investors. The breadth and depth of content is quite impressive.
Competitive Landscape
Some of the major competitors of GlobalData in the industry data space are:
– Bloomberg L.P.
– Refinitiv (Thomson Reuters)
– S&P Global
– IHS Markit
– FactSet
– McKinsey & Company
– Deloitte
– PricewaterhouseCoopers
– LexisNexis
Among these, Bloomberg, Refinitiv, S&P and IHS Markit are the closest competitors. While Bloomberg focuses heavily on the financial sector, Refinitiv has strength in energy, finance and legal sectors. S&P and IHS Markit also offer broad capabilities across finance, energy, chemicals, automotive and more.
GlobalData holds its own as a leading player with key differentiators in healthcare, technology and consumer intelligence. Their proprietary company and industry databases combined with subject matter experts give them an edge in specific market segments.
Financial Performance
Let’s look at some key financial metrics to assess GlobalData’s performance:
Revenue Growth
| Year | Revenue (USD million) | Growth |
| 2018 | 336.1 | – |
| 2019 | 359.1 | 6.8% |
| 2020 | 552.3 | 53.8% |
GlobalData has seen consistent revenue growth in the last 3 years, indicating growing market demand for their services. 2020 growth was specially high due to acquisitions.
Profitability
In 2020, GlobalData reported an adjusted operating profit of USD 174 million on revenue of USD 552 million. This translates to a very healthy adjusted operating profit margin of 31.5%. The high profitability indicates operational efficiency and pricing power.
Investor Returns
GlobalData’s Return on Capital Employed (ROCE) was reported at 19.2% in 2020. This high return on capital means the company is efficiently using investor money. The higher the ROCE, the better it is.
Cash Flows
In 2020, GlobalData had operating cash flow of USD 149 million which easily covered its capex of USD 46 million. The robust cash generation enables the company to reinvest for growth without being constrained for capital.
Overall, GlobalData exhibits solid revenue growth, high profit margins, strong investor returns and healthy cash flows. The financial performance picture is very positive.
Competitive Advantage
What sets GlobalData apart from competitors? What’s their competitive edge or moat? Some aspects that provide them a competitive advantage:
– Proprietary data assets – GlobalData has built in-house databases of company, industry, executives profiles that are deep and not easily replicated. These proprietary datasets are a valuable asset.
– Industry expertise – The company’s network of in-house analysts and experts offers specialized domain knowledge and forward-looking insights across sectors.
– Technology – GlobalData is using technologies like AI/ML, automation and NLP to enhance data collation, analysis and delivery. This tech leverage improves efficiency.
– Brand equity – Years of operations have created strong brand awareness and credibility across various countries and sectors.
– Customer relationships – Long-standing relationships with customers makes it hard for new entrants to poach clients. High switching cost.
– Diversified verticals – Presence across healthcare, technology, consumer, energy and other verticals mitigates risk and provides more opportunities.
The domain expertise, proprietary data assets, brand equity and diversification provide durable competitive advantage to GlobalData.
Growth Prospects
Does GlobalData have good growth runways ahead? Some promising prospects:
– Rising demand for data analytics and business intelligence across all sectors is a volume driver. More companies want data-driven decision making.
– Growing market need for alternative data using new techniques like linguistics, emotions analysis, location data etc. Opens adjacent growth areas.
– Expanding emerging markets like India, Latin America provide white space to grow customer base. Rising digital transformation here needs external data and insights.
– Products innovation like machine learning-based analytics solutions, mobile delivery platforms, customized consulting etc can gain more wallet share from clients.
– Consolidation opportunities exist as GlobalData can acquire niche data providers in different regions and verticals to boost capabilities and coverage.
– Higher cross-selling and up-selling opportunities exist to increase revenue from existing customers.
The need for actionable intelligence and advanced analytics is only going to grow globally. This structurally expands the entire addressable market for GlobalData over the long-term.
Management and Leadership
GlobalData is led by an experienced executive team equipped to propel future growth:
– Mike Danson, CEO – 25+ years with GlobalData and 50+ years of industry experience. Provides long-term vision and continuity.
– Bernard Kwok, President – Deep experience in leading analytics and information businesses in Asia. Valuable to tap growth in this region.
– Mark Freebairn, CFO – Strong finance background having worked with CPA Global and Ernst & Young. Brings M&A, strategic and operational finance expertise.
– Clare Walker, COO – Key roles in product design, customer relations and sales. Drives operational excellence.
– Greg Carter, CTO – Technology leader with expertise in databases, AI/ML and cloud platforms to enhance IT infrastructure.
The company seems to have a balanced and diverse leadership team covering key domains like corporate strategy, analytics, finance, technology and operations. There is good mix of company veterans as well as external talent.
Risks and Challenges
Some risks to consider:
– Increased competition from niche data providers attacking specific segments or geographies.
– Pressure on market research spending from clients due to macro-economic challenges.
– Covid-related business uncertainty that can slow decision making and contract signings.
– High cost structure and overheads as company scales. Need to maintain cost discipline.
– Foreign exchange risks due to global footprint and international revenue base.
– Deteriorating economic conditions that can increase credit default rates and working capital requirements.
However, prudent planning and execution can help mitigate these risks to a large extent. The opportunities seem to outweigh challenges.
Social Responsibility
GlobalData has taken several initiatives on the social responsibility front:
– Employee-friendly policies like flexible work hours, remote work, recreation activities etc to promote work-life balance and diversity.
– Programmes to recruit and nurture new talent from colleges to build future-ready workforce.
– Target to become carbon neutral by 2040 across all operations through various energy efficiency, waste reduction and offset initiatives.
– Collaboration with several non-profits via volunteering time, data support and fund donations to enable education and community growth.
The focus on sustainability, community support and human capital helps GlobalData operate as a socially responsible organization.
Conclusion
In summary, GlobalData comes across as a leading data analytics provider with broadly positive credentials:
– Strong competitive position in market research and business intelligence space.
– Robust financial performance with growth, profitability and cash flow metrics.
– Proprietary data assets and industry expertise provide competitive edge.
– Leadership team equipped to drive the long-term vision.
– Promising growth prospects based on market drivers and new product innovation.
– Responsible conduct towards society and the environment.
While risks exist around competition and macro conditions, the company seems well-placed to navigate these challenges given its competitive strengths. The outlook seems bright for GlobalData to continue its growth trajectory and create value for its customers, employees and investors.
