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Dec 31, 2023
Forrester Q4 2023 Earnings Report
Forrester's Q4 2023 earnings were released, revealing a challenging year with revenue and contract value declines, yet progress was made in platform improvement and AI tool development.
Key Takeaways
Forrester Research reported a decrease in revenue to $118.1 million compared to $136.9 million in Q4 2022. The company experienced a net loss of $0.7 million, or $0.03 per diluted share, compared to a net loss of $1.6 million, or $0.09 per diluted share, in the same period last year. Adjusted net income was $4.8 million, or $0.25 per diluted share, compared to $8.5 million, or $0.45 per diluted share, for the same period in 2022. Contract value (CV) decreased by 4%, totaling $332.1 million.
Q4 revenue decreased to $118.1 million from $136.9 million year-over-year.
Net loss was $0.7 million, or $0.03 per diluted share, improved from a net loss of $1.6 million, or $0.09 per diluted share, in Q4 2022.
Adjusted net income was $4.8 million, or $0.25 per diluted share, down from $8.5 million, or $0.45 per diluted share, in the prior year.
Contract value decreased by 4% to $332.1 million.
Revenue by Segment
Forward Guidance
Forrester is providing full-year 2024 financial guidance. Total revenues of approximately $430.0 million to $450.0 million, Diluted earnings per share of approximately $0.33 to $0.53. Adjusted diluted earnings per share of approximately $1.50 to $1.70
Positive Outlook
- Adjusted operating margin of approximately 9.5% to 10.5%
- Adjusted effective tax rate of 29%
- Adjusted diluted earnings per share of approximately $1.50 to $1.70
- Expect pressures throughout the year on CV, key retention metrics, and revenue.
- Built the product, go-to-market, and organizational foundations to enable the company to return to CV growth in 2025.
Challenges Ahead
- Total revenues of approximately $430.0 million to $450.0 million, or a decline of 6% to 11% versus the prior year
- Operating margin of approximately 2.4% to 3.4%
- Interest expense of approximately $3.0 million
Revenue & Expenses
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Historical Earnings Impact
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Avg. Return Before/After Earnings
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