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Mar 31, 2020
Forrester Q1 2020 Earnings Report
Forrester's financial performance slowed down due to macroeconomic pressures, but the company is well-positioned for long-term success.
Key Takeaways
Forrester Research reported total revenues of $106.3 million for Q1 2020, compared to $100.6 million in Q1 2019. On a GAAP basis, the net loss was $0.5 million, or $0.03 per diluted share. The company expects near-term macroeconomic pressures from the global pandemic will reduce revenue and operating profit throughout 2020 and has implemented cost-reduction measures and adjusted full-year guidance.
Total revenues for Q1 2020 were $106.3 million, a rise from $100.6 million in Q1 2019.
Research revenues increased by 6%, while advisory services and events revenues increased by 5% compared to Q1 2019.
GAAP net loss was $0.5 million, or $0.03 per diluted share, compared to a net loss of $13.3 million, or $0.73 per diluted share, for the same period in 2019.
Pro forma net income was $6.9 million, or $0.37 per diluted share, compared to $1.6 million, or $0.08 per diluted share, for the same period in 2019.
Revenue by Segment
Forward Guidance
Forrester is providing second-quarter 2020 financial guidance.
Positive Outlook
- Total revenues of approximately $103.0 million to $108.0 million.
- Operating margin of approximately 1.0% to 3.0%.
- Pro forma operating margin of approximately 8.0% to 10.0%.
- Pro forma effective tax rate of 31%.
- Pro forma diluted earnings per share of approximately $0.26 to $0.34.
Challenges Ahead
- Interest expense of approximately $1.3 million.
- An effective tax rate of 10% to 15%.
- Income (loss) per share of approximately $(0.01) to $0.07.
- Total revenues of approximately $410.0 million to $430.0 million for full year 2020.
- Loss per share of approximately $(0.37) to $(0.07) for full year 2020.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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