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Mar 31, 2024
Forrester Q1 2024 Earnings Report
Forrester's first quarter was marked by a revenue decrease of 12% due to consulting headwinds, while contract value (CV) decreased by 4% compared to the prior year. The company saw stabilization in key CV retention metrics, an uptick in new business, and the rollout of Izola to all Forrester Decisions clients.
Key Takeaways
Forrester Research reported a challenging first quarter with a 12% decrease in revenue, primarily due to headwinds in the consulting sector. Despite this, the company is maintaining its 2024 guidance and saw positive trends in CV retention and new business, with 70% of CV now on the Forrester Decisions platform.
First-quarter revenue decreased by 12% to $100.1 million, compared to $113.7 million in the same quarter of the previous year.
Net loss on a GAAP basis was $6.7 million, or $0.35 per diluted share, compared to a net loss of $4.1 million, or $0.21 per diluted share, in the first quarter of 2023.
Adjusted net income was $2.8 million, or $0.14 per diluted share, compared to $5.1 million, or $0.27 per diluted share, for the same period in 2023.
Contract value (CV) decreased by 4% year-over-year, reaching $323.1 million.
Revenue by Segment
Forward Guidance
Forrester is providing full-year 2024 (GAAP) guidance with total revenues of approximately $430 million to $450 million and earnings per share of approximately $0.24 to $0.44. Adjusted operating margin is expected to be approximately 9.5% to 10.5% with adjusted diluted earnings per share of approximately $1.50 to $1.70.
Positive Outlook
- Total revenues of approximately $430 million to $450 million
- Operating margin of approximately 2.2% to 3.4%
- Earnings per share of approximately $0.24 to $0.44 (GAAP)
- Adjusted operating margin of approximately 9.5% to 10.5%
- Adjusted diluted earnings per share of approximately $1.50 to $1.70
Challenges Ahead
- Interest expense of approximately $3.0 million
- An effective tax rate of approximately 50%
- Excludes stock-based compensation expense of $14.5 million to $15.0 million
Revenue & Expenses
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Historical Earnings Impact
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Avg. Return Before/After Earnings
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