Forrester Research Reports 2024 Second-Quarter Financial Results
Forrester Research (Nasdaq: FORR) reported Q2 2024 financial results with contract value (CV) at $323.0 million, down 3% year-over-year. Total revenues were $121.8 million, compared to $135.6 million in Q2 2023. GAAP net income was $6.3 million, or $0.33 per diluted share, up from $5.3 million, or $0.28 per share, in the same period last year.
Adjusted net income was $12.9 million, or $0.68 per diluted share, down from $18.1 million, or $0.94 per share, in Q2 2023. The company is on track to have 80% of CV on the Forrester Decisions platform by year-end. However, due to challenges in non-CV businesses, Forrester lowered its 2024 guidance, now expecting total revenues of $425-$435 million and adjusted EPS of $1.37-$1.57.
Forrester Research (Nasdaq: FORR) ha riportato i risultati finanziari del secondo trimestre 2024, evidenziando un valore contratto (CV) di $323,0 milioni, con un decremento del 3% rispetto all'anno precedente. I ricavi totali sono stati $121,8 milioni, rispetto a $135,6 milioni nel secondo trimestre del 2023. Il reddito netto secondo i principi contabili GAAP è stato di $6,3 milioni, o $0,33 per azione diluita, in aumento rispetto ai $5,3 milioni, o $0,28 per azione, nel medesimo periodo dell'anno scorso.
Il reddito netto rettificato è stato di $12,9 milioni, o $0,68 per azione diluita, in calo rispetto ai $18,1 milioni, o $0,94 per azione, del secondo trimestre 2023. L'azienda è sulla buona strada per avere l'80% del CV sulla piattaforma Forrester Decisions entro la fine dell'anno. Tuttavia, a causa delle difficoltà nelle attività non CV, Forrester ha abbassato le sue previsioni per il 2024, aspettandosi ora ricavi totali tra $425 e $435 milioni e un utile per azione rettificato di $1,37-$1,57.
Forrester Research (Nasdaq: FORR) reportó los resultados financieros del segundo trimestre de 2024, con un valor de contrato (CV) de $323,0 millones, un descenso del 3% en comparación con el año anterior. Los ingresos totales fueron de $121,8 millones, en comparación con $135,6 millones en el segundo trimestre de 2023. El ingreso neto según GAAP fue de $6,3 millones, o $0,33 por acción diluida, un aumento respecto a los $5,3 millones, o $0,28 por acción, en el mismo periodo del año pasado.
El ingreso neto ajustado fue de $12,9 millones, o $0,68 por acción diluida, una disminución respecto a los $18,1 millones, o $0,94 por acción, en el segundo trimestre de 2023. La empresa está en camino de tener el 80% del CV en la plataforma Forrester Decisions para fin de año. Sin embargo, debido a desafíos en negocios no CV, Forrester ha reducido su pronóstico para 2024, ahora esperando ingresos totales de $425 a $435 millones y un EPS ajustado de $1,37 a $1,57.
포레스터 리서치(Nasdaq: FORR)는 2024년 2분기 재무 결과를 발표했으며, 계약 가치(CV)는 3억 2,300만 달러로 전년 대비 3% 감소했습니다. 총 수익은 1억 2,180만 달러로, 2023년 2분기의 1억 3,560만 달러와 비교됩니다. GAAP 기준 순이익은 630만 달러, 또는 희석 주당 0.33달러로, 지난해 같은 기간의 530만 달러, 또는 주당 0.28달러에서 증가했습니다.
조정된 순이익은 1,290만 달러, 또는 희석 주당 0.68달러로, 2023년 2분기의 1,810만 달러, 또는 주당 0.94달러에서 감소했습니다. 회사는 연말까지 Forrester Decisions 플랫폼에서 CV의 80%를 확보할 계획입니다. 그러나 비 CV 사업에서의 어려움으로 인해 포레스터는 2024년 가이던스를 하향 조정했으며, 현재 총 수익을 4억 2,500만에서 4억 3,500만 달러, 조정 EPS를 1.37달러에서 1.57달러로 기대하고 있습니다.
Forrester Research (Nasdaq: FORR) a publié les résultats financiers du deuxième trimestre 2024, affichant un valeur de contrat (CV) de 323,0 millions de dollars, en baisse de 3 % par rapport à l'année précédente. Les revenus totaux se sont élevés à 121,8 millions de dollars, contre 135,6 millions de dollars au deuxième trimestre 2023. Le bénéfice net selon les normes GAAP a été de 6,3 millions de dollars, soit 0,33 dollar par action diluée, en hausse par rapport à 5,3 millions de dollars, soit 0,28 dollar par action, durant la même période de l'année dernière.
Le bénéfice net ajusté était de 12,9 millions de dollars, soit 0,68 dollar par action diluée, en baisse par rapport à 18,1 millions de dollars, soit 0,94 dollar par action, au deuxième trimestre 2023. L'entreprise est en bonne voie pour atteindre 80 % du CV sur la plateforme Forrester Decisions d'ici la fin de l'année. Cependant, en raison des défis rencontrés dans les activités non CV, Forrester a abaissé ses prévisions pour 2024, s'attendant désormais à des revenus totaux compris entre 425 et 435 millions de dollars et un bénéfice par action ajusté de 1,37 à 1,57 dollar.
Forrester Research (Nasdaq: FORR) hat die finanziellen Ergebnisse für das zweite Quartal 2024 veröffentlicht, mit einem Vertragswert (CV) von 323,0 Millionen Dollar, was einem Rückgang von 3 % im Vergleich zum Vorjahr entspricht. Die Gesamteinnahmen betrugen 121,8 Millionen Dollar, im Vergleich zu 135,6 Millionen Dollar im zweiten Quartal 2023. Der GAAP-Nettogewinn betrug 6,3 Millionen Dollar, oder 0,33 Dollar pro verwässerter Aktie, ein Anstieg von 5,3 Millionen Dollar, oder 0,28 Dollar pro Aktie, im gleichen Zeitraum des Vorjahres.
Der bereinigte Nettogewinn betrug 12,9 Millionen Dollar, oder 0,68 Dollar pro verwässerter Aktie, ein Rückgang von 18,1 Millionen Dollar, oder 0,94 Dollar pro Aktie, im zweiten Quartal 2023. Das Unternehmen ist auf dem Weg, bis Ende des Jahres 80 % des CV auf der Forrester Decisions-Plattform zu haben. Aufgrund von Herausforderungen im Nicht-CV-Geschäft hat Forrester jedoch seine Prognose für 2024 gesenkt und erwartet nun Gesamteinnahmen zwischen 425 und 435 Millionen Dollar und einen bereinigten EPS von 1,37 bis 1,57 Dollar.
- Contract value (CV) metrics are stabilizing
- Retention shows improvement from the prior quarter
- On track to reach 80% of CV on Forrester Decisions platform by year-end
- GAAP net income increased to $6.3 million from $5.3 million year-over-year
- Contract value (CV) down 3% year-over-year to $323.0 million
- Total revenues decreased to $121.8 million from $135.6 million in Q2 2023
- Adjusted net income declined to $12.9 million from $18.1 million year-over-year
- Non-CV businesses (consulting and events) had a challenging quarter
- Lowered 2024 guidance due to challenges in non-CV businesses
Insights
As a seasoned financial analyst, I find Forrester Research's Q2 2024 results to be a mixed bag with some concerning trends. The 3% year-over-year decline in contract value (CV) to
The company's GAAP net income increased to
The reduction in full-year 2024 guidance is particularly worrisome. With projected revenues of
Investors should closely monitor Forrester's progress in migrating customers to the Forrester Decisions platform and its efforts to stabilize non-CV businesses. The company's ability to return to CV growth by year-end will be important for its long-term prospects.
From a market research perspective, Forrester's Q2 2024 results reveal significant shifts in the industry landscape. The company's struggle with its consulting and events businesses is indicative of broader changes in how organizations consume and value market research and advisory services.
The ongoing migration to the Forrester Decisions platform, with a target of
The improvement in retention rates is a positive sign, indicating that Forrester's core value proposition remains strong. However, the overall decline in contract value suggests that the company is facing increased competition or pricing pressures in its market segments.
Looking ahead, Forrester's ability to innovate and adapt its service offerings will be crucial. The market research industry is undergoing significant transformation, with increased emphasis on AI-driven analytics, predictive modeling and real-time data. Forrester's success will depend on how effectively it can integrate these technologies into its platform and deliver tangible value to clients in an increasingly competitive landscape.
As a tech expert, I'm intrigued by Forrester's product migration strategy and its implications for the company's technological positioning. The push to have
The mention of "significant enhancements to the platform" is particularly noteworthy. In the rapidly evolving tech landscape, continuous improvement and feature additions are important for maintaining competitiveness. However, without specific details on these enhancements, it's challenging to assess their potential impact on user adoption and retention.
The stabilization of CV metrics and improved retention rates suggest that the platform is gaining traction among users. This is a positive sign, indicating that Forrester's technological investments are beginning to pay off. However, the overall decline in CV raises questions about the platform's ability to drive new business growth.
The challenges in consulting and events businesses highlight the ongoing struggle many tech-oriented companies face in balancing traditional service models with digital offerings. Forrester's ability to integrate its digital platform with high-value human expertise will be important for its future success.
Looking forward, Forrester should focus on leveraging AI and machine learning to enhance its platform's capabilities, potentially offering more personalized and predictive insights to clients. The company's technological agility and innovation in the face of changing market demands will be key factors in its ability to return to growth and maintain its position as a leading research and advisory firm.
“We are pleased with the progress we made this quarter with our product migration, and we are on track to hit our target of
Second-Quarter Consolidated Results
Total revenues for the second quarter of 2024 were
On a GAAP basis, net income was
On an adjusted basis, net income was
Forrester is providing guidance for 2024 as follows:
Full-Year 2024 (GAAP):
-
Total revenues of approximately
$425 million $435 million -
Operating margin of approximately
1.2% to2.2% -
Interest expense of approximately
$3.0 million -
An effective tax rate of approximately
65% to80% -
Earnings per share of approximately
$0.06 $0.19
Full-Year 2024 (Adjusted):
Adjusted financial guidance for full-year 2024 excludes stock-based compensation expense of
-
Adjusted operating margin of approximately
8.5% to9.5% -
Adjusted effective tax rate of approximately
29% -
Adjusted diluted earnings per share of approximately
$1.37 $1.57
About Forrester
Forrester (Nasdaq: FORR) is one of the most influential research and advisory firms in the world. We help leaders across technology, customer experience, digital, marketing, sales, and product functions use customer obsession to accelerate growth. Through Forrester’s proprietary research, consulting, and events, leaders from around the globe are empowered to be bold at work — to navigate change and put their customers at the center of their leadership, strategy, and operations. Our unique insights are grounded in annual surveys of more than 700,000 consumers, business leaders, and technology leaders worldwide; rigorous and objective research methodologies, including Forrester Wave™ evaluations; more than 100 million real-time feedback votes; and the shared wisdom of our clients. To learn more, visit Forrester.com.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, Forrester’s financial guidance for the full-year 2024 and statements about the performance of Forrester Decisions and Forrester’s future financial performance and financial condition. These statements are based on Forrester’s current plans and expectations and involve risks and uncertainties that could cause actual future activities and results of operations to be materially different from those set forth in the forward-looking statements. Important factors that could cause actual future activities and results to differ include, among others, Forrester’s ability to retain and enrich memberships for its research products and services, including the migration of its existing clients into its Forrester Decisions portfolio of services; Forrester’s ability to fulfill existing or generate new consulting engagements and advisory services; technology spending; the risks and challenges inherent in international business activities; the use of generative AI in Forrester’s business and by Forrester’s clients and competitors; Forrester’s ability to offer new products and services; Forrester’s dependence on key personnel; Forrester’s ability to attract and retain professional staff; Forrester’s ability to respond to business and economic conditions and market trends; the impact of Forrester’s outstanding debt obligations; competition and industry consolidation; possible variations in Forrester’s quarterly operating results; concentration of ownership of Forrester; the possibility of network disruptions and security breaches; any failure to enforce and protect Forrester’s intellectual property rights; compliance with privacy laws; taxation risks; any weakness in Forrester’s system of internal controls; and the amount and timing of the repurchase of Forrester stock. Forrester undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events, or otherwise. For further information, please refer to Forrester’s reports and filings with the Securities and Exchange Commission.
The consolidated statements of operations and the table of key financial data are attached.
© 2024, Forrester Research, Inc. All rights reserved. Forrester is a trademark of Forrester Research, Inc.
| Forrester Research, Inc. | ||||||||||||||||
| Consolidated Statements of Income | ||||||||||||||||
| (Unaudited, in thousands, except per share data) | ||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
||
| Revenues: | ||||||||||||||||
| Research | $ |
83,663 |
|
$ |
87,699 |
|
$ |
160,244 |
|
$ |
168,605 |
|
||||
| Consulting |
|
24,811 |
|
|
29,970 |
|
|
47,952 |
|
|
61,720 |
|
||||
| Events |
|
13,351 |
|
|
17,920 |
|
|
13,706 |
|
|
18,934 |
|
||||
| Total revenues |
|
121,825 |
|
|
135,589 |
|
|
221,902 |
|
|
249,259 |
|
||||
| Operating expenses: | ||||||||||||||||
| Cost of services and fulfillment |
|
51,164 |
|
|
54,614 |
|
|
95,854 |
|
|
103,906 |
|
||||
| Selling and marketing |
|
40,253 |
|
|
41,581 |
|
|
79,675 |
|
|
83,113 |
|
||||
| General and administrative |
|
14,437 |
|
|
15,315 |
|
|
28,496 |
|
|
36,542 |
|
||||
| Depreciation |
|
2,062 |
|
|
2,191 |
|
|
4,122 |
|
|
4,295 |
|
||||
| Amortization of intangible assets |
|
2,513 |
|
|
3,068 |
|
|
5,027 |
|
|
6,134 |
|
||||
| Restructuring costs |
|
82 |
|
|
10,532 |
|
|
6,706 |
|
|
12,121 |
|
||||
| Total operating expenses |
|
110,511 |
|
|
127,301 |
|
|
219,880 |
|
|
246,111 |
|
||||
| Income from operations |
|
11,314 |
|
|
8,288 |
|
|
2,022 |
|
|
3,148 |
|
||||
| Interest expense |
|
(763 |
) |
|
(730 |
) |
|
(1,525 |
) |
|
(1,523 |
) |
||||
| Other income, net |
|
1,015 |
|
|
514 |
|
|
2,289 |
|
|
1,064 |
|
||||
| Income before income taxes |
|
11,566 |
|
|
8,072 |
|
|
2,786 |
|
|
2,689 |
|
||||
| Income tax expense |
|
5,274 |
|
|
2,768 |
|
|
3,167 |
|
|
1,460 |
|
||||
| Net income (loss) | $ |
6,292 |
|
$ |
5,304 |
|
$ |
(381 |
) |
$ |
1,229 |
|
||||
| Basic income (loss) per common share | $ |
0.33 |
|
$ |
0.28 |
|
$ |
(0.02 |
) |
$ |
0.06 |
|
||||
| Diluted income (loss) per common share | $ |
0.33 |
|
$ |
0.28 |
|
$ |
(0.02 |
) |
$ |
0.06 |
|
||||
| Basic weighted average shares outstanding |
|
19,093 |
|
|
19,193 |
|
|
19,189 |
|
|
19,151 |
|
||||
| Diluted weighted average shares outstanding |
|
19,124 |
|
|
19,258 |
|
|
19,189 |
|
|
19,214 |
|
||||
| Adjusted data (1): | ||||||||||||||||
| Income from operations - GAAP | $ |
11,314 |
|
$ |
8,288 |
|
$ |
2,022 |
|
$ |
3,148 |
|
||||
| Amortization of intangible assets |
|
2,513 |
|
|
3,068 |
|
|
5,027 |
|
|
6,134 |
|
||||
| Restructuring costs |
|
82 |
|
|
10,532 |
|
|
6,706 |
|
|
12,121 |
|
||||
| Legal settlement |
|
— |
|
|
— |
|
|
— |
|
|
4,800 |
|
||||
| Stock-based compensation included in the | ||||||||||||||||
| following expense categories: | ||||||||||||||||
| Cost of services and fulfillment |
|
2,513 |
|
|
2,209 |
|
|
4,635 |
|
|
4,056 |
|
||||
| Selling and marketing |
|
559 |
|
|
807 |
|
|
1,158 |
|
|
1,304 |
|
||||
| General and administrative |
|
953 |
|
|
844 |
|
|
1,806 |
|
|
1,665 |
|
||||
| Adjusted income from operations | $ |
17,934 |
|
$ |
25,748 |
|
$ |
21,354 |
|
$ |
33,228 |
|
||||
| Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||
| June 30, | June 30, | |||||||||||||||||||||||||||||||
2024 |
|
2023 |
|
2024 |
|
2023 |
|
|||||||||||||||||||||||||
| Amount | Per Share | Amount | Per Share | Amount | Per Share | Amount | Per Share | |||||||||||||||||||||||||
| Net income (loss) - GAAP | $ |
6,292 |
|
$ |
0.33 |
|
$ |
5,304 |
|
$ |
0.28 |
|
$ |
(381 |
) |
$ |
(0.02 |
) |
$ |
1,229 |
|
$ |
0.06 |
|
||||||||
| Amortization of intangible assets |
|
2,513 |
|
|
0.13 |
|
|
3,068 |
|
|
0.16 |
|
|
5,027 |
|
|
0.26 |
|
|
6,134 |
|
|
0.32 |
|
||||||||
| Restructuring costs |
|
82 |
|
|
0.01 |
|
|
10,532 |
|
|
0.54 |
|
|
6,706 |
|
|
0.35 |
|
|
12,121 |
|
|
0.63 |
|
||||||||
| Legal settlement |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
4,800 |
|
|
0.25 |
|
||||||||
| Stock-based compensation |
|
4,025 |
|
|
0.21 |
|
|
3,860 |
|
|
0.20 |
|
|
7,599 |
|
|
0.40 |
|
|
7,025 |
|
|
0.37 |
|
||||||||
| Tax effects of items above (2) |
|
(1,288 |
) |
|
(0.07 |
) |
|
(4,597 |
) |
|
(0.24 |
) |
|
(3,834 |
) |
|
(0.20 |
) |
|
(7,575 |
) |
|
(0.40 |
) |
||||||||
| Adjustment to tax expense for adjusted tax rate (3) |
|
1,288 |
|
|
0.07 |
|
|
(39 |
) |
|
— |
|
|
586 |
|
|
0.03 |
|
|
(468 |
) |
|
(0.02 |
) |
||||||||
| Adjusted net income | $ |
12,912 |
|
|
0.68 |
|
$ |
18,128 |
|
$ |
0.94 |
|
$ |
15,703 |
|
|
0.82 |
|
$ |
23,266 |
|
$ |
1.21 |
|
||||||||
| Diluted weighted average shares outstanding |
|
19,124 |
|
|
19,258 |
|
|
19,232 |
|
|
19,214 |
|
||||||||||||||||||||
(1) Forrester believes that adjusted financial results provide investors with consistent and comparable information to aid in the understanding of Forrester's ongoing business and are also used by Forrester in making compensation decisions. Our adjusted presentation excludes amortization of acquisition-related intangible assets, stock-based compensation, restructuring costs, a legal settlement, and net gains or losses from investments, as well as their related tax effects. We also utilized an assumed tax rate of
(2) The tax effect of adjusting items is based on the accounting treatment and rate for the jurisdiction of each item.
(3) To compute adjusted net income, we apply an adjusted effective tax rate of
| Forrester Research, Inc. | |||||||||
| Key Financial Data | |||||||||
| (Unaudited, dollars in thousands) | |||||||||
| June 30, | December 31, | ||||||||
|
2024 |
|
|
|
2023 |
|
|||
| Balance sheet data: | |||||||||
| Cash, cash equivalents and marketable investments | $ |
110,813 |
|
$ |
124,489 |
|
|||
| Accounts receivable, net | $ |
47,702 |
|
$ |
58,999 |
|
|||
| Deferred revenue | $ |
164,117 |
|
$ |
156,798 |
|
|||
| Debt outstanding | $ |
35,000 |
|
$ |
35,000 |
|
|||
| June 30, | |||||||||
|
2024 |
|
|
|
2023 |
|
|||
| Cash flow data: | |||||||||
| Net cash provided by operating activities | $ |
(2,295 |
) |
$ |
15,788 |
|
|||
| Purchases of property and equipment | $ |
(2,256 |
) |
$ |
(2,664 |
) |
|||
| Repayments of debt | $ |
— |
|
$ |
(15,000 |
) |
|||
| Repurchases of common stock | $ |
(8,015 |
) |
$ |
(820 |
) |
|||
| As of | |||||||||
| June 30, | |||||||||
|
2024 |
|
|
|
2023 |
|
|||
| Metrics: | |||||||||
| Contract value | $ |
323,000 |
|
$ |
333,200 |
|
(a) | ||
| Client retention |
|
73 |
% |
|
74 |
% |
|||
| Wallet retention |
|
89 |
% |
|
89 |
% |
(a) | ||
| Number of clients |
|
2,220 |
|
|
2,604 |
|
|||
| As of | |||||||||
| June 30, | |||||||||
|
2024 |
|
|
|
2023 |
|
|||
| Headcount: | |||||||||
| Total headcount |
|
1,656 |
|
|
1,793 |
|
|||
| Sales force |
|
592 |
|
|
616 |
|
|||
(a) June 30, 2023 amounts have been recast based on 2024 foreign currency rates and updated methodology as described on the investor relations section of our website.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240730767708/en/
Ed Bryce Morris
Vice President, Corporate Development & Investor Relations
Forrester Research, Inc.
+1 617-613-6565
ebrycemorris@forrester.com
Shweta Agarwal
VP, Corporate Communications
Forrester Research, Inc.
+1 617-613-6805
sagarwal@forrester.com
Source: Forrester Research, Inc.
FAQ
What was Forrester's contract value (CV) in Q2 2024?
How did Forrester's Q2 2024 revenues compare to Q2 2023?
What was Forrester's adjusted EPS for Q2 2024?
Has Forrester updated its guidance for 2024?
What is Forrester's target for CV on the Forrester Decisions platform by year-end 2024?
