Forrester Research Reports 2024 Third-Quarter Financial Results
Forrester Research (FORR) reported Q3 2024 financial results with contract value (CV) at $315.2 million, down 5% year-over-year. Total revenues were $102.5 million, compared to $113.4 million in Q3 2023. The company reported a GAAP net loss of $5.8 million ($0.30 per share), versus net income of $2.5 million ($0.13 per share) in Q3 2023. Adjusted net income was $5.6 million ($0.29 per share). The company maintained its full-year 2024 guidance with total revenues expected between $425-435 million and adjusted operating margin of 8.5-9.5%.
Forrester Research (FORR) ha riportato i risultati finanziari del terzo trimestre 2024 con un valore del contratto (CV) di 315,2 milioni di dollari, in calo del 5% rispetto all'anno precedente. I ricavi totali erano di 102,5 milioni di dollari, rispetto ai 113,4 milioni di dollari del terzo trimestre 2023. L'azienda ha registrato una perdita netta GAAP di 5,8 milioni di dollari (0,30 dollari per azione), rispetto a un utile netto di 2,5 milioni di dollari (0,13 dollari per azione) nel terzo trimestre 2023. L'utile netto rettificato è stato di 5,6 milioni di dollari (0,29 dollari per azione). L'azienda ha confermato le previsioni per l'intero anno 2024, con ricavi totali previsti tra 425-435 milioni di dollari e un margine operativo rettificato dell'8,5-9,5%.
Forrester Research (FORR) informó sobre los resultados financieros del tercer trimestre de 2024, con un valor de contrato (CV) de 315,2 millones de dólares, una disminución del 5% en comparación con el año anterior. Los ingresos totales fueron de 102,5 millones de dólares, comparados con 113,4 millones de dólares en el tercer trimestre de 2023. La compañía reportó una pérdida neta GAAP de 5,8 millones de dólares (0,30 dólares por acción), frente a una ganancia neta de 2,5 millones de dólares (0,13 dólares por acción) en el tercer trimestre de 2023. El ingreso neto ajustado fue de 5,6 millones de dólares (0,29 dólares por acción). La compañía mantuvo su guía para todo el año 2024, con ingresos totales esperados entre 425-435 millones de dólares y un margen operativo ajustado del 8,5-9,5%.
포레스터 리서치 (FORR)는 2024년 3분기 재무 결과를 보고하며 계약 가치 (CV)가 3억 1천 5백 20만 달러로, 지난해 같은 기간 대비 5% 감소했다고 밝혔습니다. 총 수익은 1억 2천 5백만 달러로, 2023년 3분기의 1억 1천 3백 40만 달러와 비교됩니다. 회사는 GAAP 기준에서 580만 달러의 순손실 (주당 0.30 달러)을 기록하였으며, 2023년 3분기에는 250만 달러의 순이익 (주당 0.13 달러)을 기록하였습니다. 조정된 순이익은 560만 달러 (주당 0.29 달러)였습니다. 회사는 2024년 전체 연간 가이드를 유지하며 총 수익은 4억 2천 5백만 달러에서 4억 3천 5백만 달러 사이, 조정된 운영 마진은 8.5%-9.5%로 예상하고 있습니다.
Forrester Research (FORR) a annoncé les résultats financiers du troisième trimestre 2024, avec une valeur de contrat (CV) de 315,2 millions de dollars, en baisse de 5 % par rapport à l'année précédente. Les revenus totaux étaient de 102,5 millions de dollars, contre 113,4 millions de dollars au troisième trimestre 2023. La société a enregistré une perte nette GAAP de 5,8 millions de dollars (0,30 dollar par action), contre un bénéfice net de 2,5 millions de dollars (0,13 dollar par action) au troisième trimestre 2023. Le bénéfice net ajusté était de 5,6 millions de dollars (0,29 dollar par action). La société a maintenu ses prévisions pour l'année 2024, avec des revenus totaux attendus entre 425 et 435 millions de dollars et une marge opérationnelle ajustée de 8,5 à 9,5 %.
Forrester Research (FORR) hat die Finanzzahlen für das 3. Quartal 2024 veröffentlicht, wobei der Vertragswert (CV) bei 315,2 Millionen Dollar lag, was einem Rückgang von 5 % im Vergleich zum Vorjahr entspricht. Der Gesamtumsatz betrug 102,5 Millionen Dollar, im Vergleich zu 113,4 Millionen Dollar im 3. Quartal 2023. Das Unternehmen berichtete von einem GAAP-Nettoverlust von 5,8 Millionen Dollar (0,30 Dollar pro Aktie), im Vergleich zu einem Nettogewinn von 2,5 Millionen Dollar (0,13 Dollar pro Aktie) im 3. Quartal 2023. Der bereinigte Nettogewinn betrug 5,6 Millionen Dollar (0,29 Dollar pro Aktie). Das Unternehmen bekräftigte seine Prognose für das Gesamtjahr 2024 mit einem erwarteten Gesamtumsatz zwischen 425-435 Millionen Dollar und einer bereinigten operativen Marge von 8,5-9,5 %.
- On track to exceed 80% of CV migration to Forrester Decisions platform by year-end
- Maintained full-year 2024 revenue and margin guidance
- Adjusted net income of $5.6 million ($0.29 per share) in Q3 2024
- Contract value (CV) declined 5% year-over-year to $315.2 million
- Q3 revenue decreased to $102.5 million from $113.4 million in prior year
- GAAP net loss of $5.8 million compared to net income of $2.5 million in Q3 2023
Insights
The Q3 results reveal significant challenges at Forrester Research, with
The maintained full-year guidance suggests management's confidence in Q4 performance, with expected revenues of
“We continue to make strong progress with our product migration, and we are on track to exceed our target of
Third-Quarter Consolidated Results
Total revenues for the third quarter of 2024 were
On a GAAP basis, net loss 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
0.5% to1.5% -
Interest expense of approximately
$3.0 million -
An effective tax rate of approximately
135% to270% -
Loss per share of approximately
$0.24 $0.04
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; 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 |
Nine Months Ended |
|||||||||||||||
September 30, |
September 30, |
|||||||||||||||
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|||||
| Revenues: | ||||||||||||||||
| Research | $ |
77,070 |
|
$ |
80,606 |
|
$ |
237,314 |
|
$ |
249,211 |
|
||||
| Consulting |
|
23,369 |
|
|
28,237 |
|
|
71,321 |
|
|
89,957 |
|
||||
| Events |
|
2,088 |
|
|
4,588 |
|
|
15,794 |
|
|
23,522 |
|
||||
| Total revenues |
|
102,527 |
|
|
113,431 |
|
|
324,429 |
|
|
362,690 |
|
||||
| Operating expenses: | ||||||||||||||||
| Cost of services and fulfillment |
|
42,174 |
|
|
47,978 |
|
|
138,028 |
|
|
151,884 |
|
||||
| Selling and marketing |
|
38,273 |
|
|
39,967 |
|
|
117,948 |
|
|
123,080 |
|
||||
| General and administrative |
|
15,738 |
|
|
15,108 |
|
|
44,234 |
|
|
51,650 |
|
||||
| Depreciation |
|
1,957 |
|
|
2,262 |
|
|
6,079 |
|
|
6,557 |
|
||||
| Amortization of intangible assets |
|
2,404 |
|
|
3,041 |
|
|
7,431 |
|
|
9,175 |
|
||||
| Restructuring costs |
|
937 |
|
|
19 |
|
|
7,643 |
|
|
12,140 |
|
||||
| Loss from sale of divested operation |
|
1,775 |
|
|
— |
|
|
1,775 |
|
|
— |
|
||||
| Total operating expenses |
|
103,258 |
|
|
108,375 |
|
|
323,138 |
|
|
354,486 |
|
||||
| Income (loss) from operations |
|
(731 |
) |
|
5,056 |
|
|
1,291 |
|
|
8,204 |
|
||||
| Interest expense |
|
(770 |
) |
|
(763 |
) |
|
(2,295 |
) |
|
(2,286 |
) |
||||
| Other income, net |
|
427 |
|
|
568 |
|
|
2,716 |
|
|
1,632 |
|
||||
| Income (loss) before income taxes |
|
(1,074 |
) |
|
4,861 |
|
|
1,712 |
|
|
7,550 |
|
||||
| Income tax expense |
|
4,724 |
|
|
2,377 |
|
|
7,891 |
|
|
3,837 |
|
||||
| Net income (loss) | $ |
(5,798 |
) |
$ |
2,484 |
|
$ |
(6,179 |
) |
$ |
3,713 |
|
||||
| Basic income (loss) per common share | $ |
(0.30 |
) |
$ |
0.13 |
|
$ |
(0.32 |
) |
$ |
0.19 |
|
||||
| Diluted income (loss) per common share | $ |
(0.30 |
) |
$ |
0.13 |
|
$ |
(0.32 |
) |
$ |
0.19 |
|
||||
| Basic weighted average shares outstanding |
|
19,065 |
|
|
19,191 |
|
|
19,147 |
|
|
19,164 |
|
||||
| Diluted weighted average shares outstanding |
|
19,065 |
|
|
19,289 |
|
|
19,147 |
|
|
19,239 |
|
||||
| Adjusted data (1): | ||||||||||||||||
| Income (loss) from operations - GAAP | $ |
(731 |
) |
$ |
5,056 |
|
$ |
1,291 |
|
$ |
8,204 |
|
||||
| Amortization of intangible assets |
|
2,404 |
|
|
3,041 |
|
|
7,431 |
|
|
9,175 |
|
||||
| Restructuring costs |
|
937 |
|
|
19 |
|
|
7,643 |
|
|
12,140 |
|
||||
| Loss from sale of divested operation and transaction costs |
|
1,994 |
|
|
— |
|
|
1,994 |
|
|
— |
|
||||
| Legal settlement |
|
— |
|
|
— |
|
|
— |
|
|
4,800 |
|
||||
| Stock-based compensation included in the | ||||||||||||||||
| following expense categories: | ||||||||||||||||
| Cost of services and fulfillment |
|
2,142 |
|
|
2,449 |
|
|
6,777 |
|
|
6,505 |
|
||||
| Selling and marketing |
|
528 |
|
|
790 |
|
|
1,685 |
|
|
2,094 |
|
||||
| General and administrative |
|
933 |
|
|
905 |
|
|
2,740 |
|
|
2,570 |
|
||||
| Adjusted income from operations | $ |
8,207 |
|
$ |
12,260 |
|
$ |
29,561 |
|
$ |
45,488 |
|
||||
Three Months Ended |
Nine Months Ended |
|||||||||||||||||||||||||||||||
September 30, |
September 30, |
|||||||||||||||||||||||||||||||
2024 |
2023 |
2024 |
2023 |
|||||||||||||||||||||||||||||
Amount |
Per Share |
Amount |
Per Share |
Amount |
Per Share |
Amount |
Per Share |
|||||||||||||||||||||||||
| Net income (loss) - GAAP | $ |
(5,798 |
) |
$ |
(0.30 |
) |
$ |
2,484 |
|
$ |
0.13 |
|
$ |
(6,179 |
) |
$ |
(0.32 |
) |
$ |
3,713 |
|
$ |
0.19 |
|
||||||||
| Amortization of intangible assets |
|
2,404 |
|
|
0.13 |
|
|
3,041 |
|
|
0.16 |
|
|
7,431 |
|
|
0.39 |
|
|
9,175 |
|
|
0.47 |
|
||||||||
| Restructuring costs |
|
937 |
|
|
0.05 |
|
|
19 |
|
|
— |
|
|
7,643 |
|
|
0.40 |
|
|
12,140 |
|
|
0.63 |
|
||||||||
| Loss from sale of divested operation and transaction costs |
|
1,994 |
|
|
0.10 |
|
|
— |
|
|
— |
|
|
1,994 |
|
|
0.10 |
|
|
— |
|
|
— |
|
||||||||
| Legal settlement |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
4,800 |
|
|
0.25 |
|
||||||||
| Stock-based compensation |
|
3,603 |
|
|
0.19 |
|
|
4,144 |
|
|
0.21 |
|
|
11,202 |
|
|
0.58 |
|
|
11,169 |
|
|
0.58 |
|
||||||||
| Tax effects of items above (2) |
|
2,167 |
|
|
0.11 |
|
|
(1,542 |
) |
|
(0.08 |
) |
|
(1,667 |
) |
|
(0.09 |
) |
|
(9,117 |
) |
|
(0.47 |
) |
||||||||
| Adjustment to tax expense for adjusted tax rate (3) |
|
277 |
|
|
0.01 |
|
|
420 |
|
|
0.02 |
|
|
863 |
|
|
0.05 |
|
|
(48 |
) |
|
— |
|
||||||||
| Adjusted net income | $ |
5,584 |
|
|
0.29 |
|
$ |
8,566 |
|
$ |
0.44 |
|
$ |
21,287 |
|
|
1.11 |
|
$ |
31,832 |
|
$ |
1.65 |
|
||||||||
| Diluted weighted average shares outstanding |
|
19,089 |
|
|
19,289 |
|
|
19,184 |
|
|
19,239 |
|
||||||||||||||||||||
| (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 they 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 loss from the sale of a divested operation and related transaction 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) | |||||||||
September 30, |
December 31, |
||||||||
|
2024 |
|
|
2023 |
|
||||
| Balance sheet data: | |||||||||
| Cash, cash equivalents and marketable investments | $ |
114,932 |
|
$ |
124,489 |
|
|||
| Accounts receivable, net | $ |
39,165 |
|
$ |
58,999 |
|
|||
| Deferred revenue | $ |
153,155 |
|
$ |
156,798 |
|
|||
| Debt outstanding | $ |
35,000 |
|
$ |
35,000 |
|
|||
September 30, |
|||||||||
|
2024 |
|
|
2023 |
|
||||
| Cash flow data: | |||||||||
| Net cash provided by (used in) operating activities | $ |
(2,031 |
) |
$ |
9,791 |
|
|||
| Purchases of property and equipment | $ |
(2,743 |
) |
$ |
(3,903 |
) |
|||
| Repayments of debt | $ |
— |
|
$ |
(15,000 |
) |
|||
| Repurchases of common stock | $ |
(12,984 |
) |
$ |
(4,082 |
) |
|||
| As of | |||||||||
| September 30, | |||||||||
|
2024 |
|
|
2023 |
|
||||
| Metrics: | |||||||||
| Contract value | $ |
315,200 |
|
$ |
331,200 |
|
(a) | ||
| Client retention |
|
73 |
% |
|
73 |
% |
(a) | ||
| Wallet retention |
|
89 |
% |
|
89 |
% |
(a) | ||
| Number of clients |
|
2,002 |
|
|
2,338 |
|
(a) | ||
| As of | |||||||||
| September 30, | |||||||||
|
2024 |
|
|
2023 |
|
||||
| Headcount: | |||||||||
| Total headcount |
|
1,608 |
|
|
1,750 |
|
|||
| Sales force |
|
597 |
|
|
599 |
|
|||
| (a) September 30, 2023 amounts have been recast based on 2024 foreign currency rates, the divestiture of an operation in Q3 2024, and an updated methodology as described on the investor relations section of our website. | |||||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20241105791625/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 (FORR) contract value in Q3 2024?
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What is Forrester's (FORR) full-year 2024 revenue guidance?
