Loading...
•
Mar 31, 2023
Forrester Q1 2023 Earnings Report
Forrester's first quarter results for 2023 were announced, revealing challenges due to a difficult economic climate and ongoing product transformation, resulting in a revenue decline and flat contract value growth.
Key Takeaways
Forrester Research reported a challenging first quarter with a 9% decrease in revenue, totaling $113.7 million compared to $125.0 million in the same period last year. The company experienced a net loss of $4.1 million, or $0.21 per share, on a GAAP basis, while adjusted EPS was $0.27. Flat contract value growth also contributed to the difficult quarter.
Total revenues decreased to $113.7 million from $125.0 million year-over-year.
GAAP net loss was $4.1 million, or $0.21 per diluted share, compared to a net income of $4.1 million, or $0.22 per diluted share, in the prior year.
Adjusted net income was $5.1 million, or $0.27 per diluted share, compared to $8.6 million, or $0.45 per diluted share, in the same period last year.
Contract value remained flat at $347.3 million.
Revenue by Segment
Forward Guidance
Forrester provided updated guidance for full year 2023. Total revenues are expected to be approximately $475 million to $495 million with earnings per share of approximately $0.24 to $0.44. Adjusted diluted earnings per share are expected to be approximately $2.00 to $2.20.
Positive Outlook
- Total revenues of approximately $475 million to $495 million
- Operating margin of approximately 2.0% to 3.0%
- Earnings per share of approximately $0.24 to $0.44
- Adjusted operating margin of approximately 11.5% to 12.5%
- Adjusted diluted earnings per share of approximately $2.00 to $2.20
Challenges Ahead
- Interest expense of approximately $3.0 million
- An effective tax rate of approximately 38%
- Excludes stock-based compensation expense of $17.5 million to $18.5 million
- Excludes amortization of acquisition-related intangible assets of approximately $12.0 million
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...