Core Insights - Forrester Research reported a revenue of $108.04 million for Q4 2024, reflecting a year-over-year decline of 8.5% but exceeding the Zacks Consensus Estimate by 1.69% [1] - The earnings per share (EPS) for the same quarter was $0.36, up from $0.25 a year ago, surpassing the consensus EPS estimate of $0.34 by 5.88% [1] Revenue Breakdown - Research revenue was $79.43 million, slightly below the average estimate of $80.37 million, marking a year-over-year decline of 6.8% [4] - Consulting revenue reached $25.93 million, exceeding the average estimate of $23.07 million, but still showing an 8.3% decline year-over-year [4] - Event revenue was reported at $2.68 million, below the average estimate of $2.87 million, representing a significant year-over-year decline of 42.1% [4] Stock Performance - Forrester Research shares have returned +5.4% over the past month, outperforming the Zacks S&P 500 composite's +4.2% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Group 1: Earnings Performance - Forrester Research reported quarterly earnings of $0.36 per share, exceeding the Zacks Consensus Estimate of $0.34 per share, and up from $0.25 per share a year ago, representing an earnings surprise of 5.88% [1] - The company posted revenues of $108.04 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 1.69%, but down from year-ago revenues of $118.09 million [2] - Over the last four quarters, Forrester has surpassed consensus EPS estimates just once, while it has topped consensus revenue estimates three times [2] Group 2: Stock Performance and Outlook - Forrester Research shares have declined approximately 3.9% since the beginning of the year, contrasting with the S&P 500's gain of 3.1% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the upcoming quarter is $0.19 on revenues of $98.33 million, and for the current fiscal year, it is $1.66 on revenues of $437.45 million [7] Group 3: Industry Context - The Computer - Services industry, to which Forrester belongs, is currently ranked in the top 10% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5] - The current estimate revisions trend for Forrester Research is mixed, resulting in a Zacks Rank 3 (Hold), suggesting the stock is expected to perform in line with the market in the near future [6]

Financial Performance - Forrester's total revenues for Q4 2024 were $108.0 million, a decline of 8.6% from $118.1 million in Q4 2023[5] - The company's net income for Q4 2024 was $0.4 million, or $0.02 per diluted share, compared to a net loss of $0.7 million, or $0.03 per diluted share, in Q4 2023[5] - For the full year 2024, total revenues were $432.5 million, down 10.0% from $480.8 million in 2023[7] - Forrester reported a net loss of $5.7 million for 2024, or $0.30 per diluted share, compared to a net income of $3.1 million, or $0.16 per diluted share, in 2023[7] - Adjusted net income for Q4 2024 was $6.8 million, or $0.36 per diluted share, compared to $4.8 million, or $0.25 per diluted share, in Q4 2023[6] - Forrester reported a net income of $432,000 for Q4 2024, compared to a net loss of $663,000 in Q4 2023, representing a significant turnaround[18] - Adjusted net income for Q4 2024 was $6.816 million, up from $4.797 million in Q4 2023, reflecting a 42% increase year-over-year[18] Future Guidance - The company expects total revenues for 2025 to be approximately $400.0 million to $415.0 million, representing a decline of 7.5% to 4.0% compared to 2024[10] - Forrester's adjusted financial guidance for 2025 excludes stock-based compensation of $14.5 million to $15.5 million and restructuring costs of $1.4 million to $1.6 million[11] - Forrester's operating margin for 2025 is projected to be approximately 1.8% to 2.8%[10] Client Metrics - The number of clients decreased to 1,942 in 2024 from 2,257 in 2023, indicating a reduction of about 14%[20] - Client retention remained stable at 73% for both 2024 and 2023, while wallet retention improved to 89% from 87%[20] Cash and Investments - Total cash, cash equivalents, and marketable investments decreased to $104.669 million in 2024 from $124.489 million in 2023, a decline of approximately 16%[20] - Net cash used in operating activities was $(3.861) million in 2024, a significant decline from $21.673 million provided in 2023[20] Restructuring and Headcount - The company incurred restructuring costs of $4.130 million in Q4 2024, compared to $1.132 million in Q4 2023, reflecting increased expenses related to restructuring efforts[18] - Total headcount decreased to 1,571 in 2024 from 1,744 in 2023, a reduction of approximately 10%[21] Deferred Revenue and Stock Buybacks - Deferred revenue decreased to $145.404 million in 2024 from $156.798 million in 2023, a decline of about 7%[20] - The company repurchased $15.920 million in common stock in 2024, compared to $4.082 million in 2023, indicating an increase in buyback activity[20] Platform Migration - The migration to the new Forrester Decisions platform is nearly complete, with 80% of contract value now on the new platform[3] - The company aims to improve retention rates and drive growth in both existing and new accounts in 2025[4]

Contract Value and Client Metrics - Contract value (CV) decreased by 5% to $315.2 million as of September 2024 compared to $331.2 million in the prior year period[69][70] - Client retention remained flat at 73% and wallet retention remained flat at 89% as of September 2024 compared to the prior year period[69][70] - Number of clients decreased by 14% to 2,002 as of September 2024 compared to 2,338 in the prior year period[70] - Approximately 78% of the company's overall CV was in the Forrester Decisions product platform as of September 2024, with an anticipated increase to over 80% by the end of 2024[70] Revenue Breakdown - Research products and services accounted for 75.2% of total revenues for the three months ended September 30, 2024, up from 71.1% in the prior year period[71] - Consulting projects and advisory services accounted for 22.8% of total revenues for the three months ended September 30, 2024, down from 24.9% in the prior year period[71] - Events revenues accounted for 2.0% of total revenues for the three months ended September 30, 2024, down from 4.0% in the prior year period[71] Expense Breakdown - Cost of services and fulfillment accounted for 41.1% of total revenues for the three months ended September 30, 2024, down from 42.3% in the prior year period[71] - Selling and marketing expenses accounted for 37.3% of total revenues for the three months ended September 30, 2024, up from 35.2% in the prior year period[71] - General and administrative expenses accounted for 15.4% of total revenues for the three months ended September 30, 2024, up from 13.3% in the prior year period[71] Revenue Performance - Total revenues decreased by 10% to $102.5 million in Q3 2024 compared to $113.4 million in Q3 2023[72] - Research revenues decreased by 4% to $77.1 million in Q3 2024 compared to $80.6 million in Q3 2023[72] - Consulting revenues decreased by 17% to $23.4 million in Q3 2024 compared to $28.2 million in Q3 2023[72] - Events revenues decreased by 54% to $2.1 million in Q3 2024 compared to $4.6 million in Q3 2023[72] - Revenues from customers outside the U.S. decreased by 9% to $23.6 million in Q3 2024 compared to $25.8 million in Q3 2023[72] Expense Performance - Cost of services and fulfillment decreased by 12% to $42.2 million in Q3 2024 compared to $48.0 million in Q3 2023[74] - Selling and marketing expenses decreased by 4% to $38.3 million in Q3 2024 compared to $40.0 million in Q3 2023[75] - General and administrative expenses increased by 4% to $15.7 million in Q3 2024 compared to $15.1 million in Q3 2023[77] - Depreciation expense decreased by $0.3 million in Q3 2024 compared to the prior year period[78] - Amortization of intangible assets decreased by $0.6 million in Q3 2024 compared to the prior year period[79] Other Income and Taxes - Other income, net decreased by $0.1 million for the three months and increased by $1.1 million for the nine months ended September 30, 2024, primarily due to a $1.9 million increase in interest income, partially offset by a $0.9 million increase in foreign currency exchange losses[84] - Income tax expense increased by $2.3 million (99%) for the three months and $4.1 million (106%) for the nine months ended September 30, 2024, with an effective tax rate of 461% for the nine months, driven by discrete tax items including $3.5 million from the disposition of assets related to the FeedbackNow product line[85] Segment Performance - Research segment revenues decreased by 7% for both the three and nine months ended September 30, 2024, with consulting product revenues within this segment decreasing by 33% and 32%, respectively, due to lower client bookings for advisory services[91] - Consulting segment revenues decreased by 12% and 17% for the three and nine months ended September 30, 2024, respectively, primarily due to lower client bookings for consulting services[91] - Events segment revenues decreased by 54% and 33% for the three and nine months ended September 30, 2024, respectively, primarily due to a decline in sponsorship and event ticket revenues[91] Cash Flow and Financing - The company used $2.0 million of cash in operating activities during the nine months ended September 30, 2024, a decrease of $11.8 million compared to the prior year period, primarily due to a $9.9 million decrease in net income[92] - The company generated $4.8 million from investing activities during the nine months ended September 30, 2024, including $6.0 million from the sale of the FeedbackNow product line[92] - The company used $13.0 million in financing activities during the nine months ended September 30, 2024, primarily for $13.0 million in common stock repurchases[92] - As of September 30, 2024, the company had a remaining stock repurchase authorization of approximately $82.9 million[92] - The company has a $150.0 million revolving credit facility, with $35.0 million drawn as of September 30, 2024, maturing in December 2026[92] Cash and Investments - The company had cash, cash equivalents, and marketable investments totaling $114.9 million as of September 30, 2024, with $81.0 million held outside the U.S.[94] - Non-cancelable lease payments due as of September 30, 2024: $4.0 million in 2024, $26.4 million within 2025 and 2026, $8.8 million within 2027 and 2028, and $6.2 million beyond 2028[94] - The company expects to remain in compliance with its credit facility covenants, including maximum leverage ratio and minimum interest coverage ratio, through the next 12 months[94] - The company intends to permanently reinvest $81.0 million held outside the U.S. and does not plan to repatriate these funds for U.S. operations[94] - The company's current cash balance and cash flows from operations are expected to meet working capital, financing activities, and capital expenditure requirements for the next twelve months[94] Accounting and Risk - No material changes to the company's critical accounting policies and estimates since the last annual report[96] - No material changes in the company's assessment of sensitivity to market risk since the last annual report[98]

Financial Data and Key Metrics Changes - Revenue decreased by 10% in Q3 2024, totaling $102.5 million compared to $113.4 million in the prior year period [21] - Contract value (CV) declined by 5% to $315.2 million, compared to a 4% decline in Q2 [21] - Net income decreased by 35% to $5.6 million, with earnings per share at $0.29, down from $0.44 in Q3 2023 [26] Business Line Data and Key Metrics Changes - Research revenues decreased by 4%, with subscription research products down by 1% [21] - Consulting business revenues were $23.4 million, down 17% compared to the prior year, but showed signs of stabilization [23] - Events business revenues were $2.1 million, representing a 54% decrease compared to Q3 2023, driven by event mergers and lower sponsorship [24] Market Data and Key Metrics Changes - The company reported good performance in Premier high-tech, International, and government sectors, with significant deals including a $2.5 million contract with a multinational tech company and a $1.6 million deal with a U.S. government agency [9] - Overall client retention was 73%, up slightly from Q2, while wallet retention remained stable at 89% [21] Company Strategy and Development Direction - The company is focused on completing the migration to Forrester Decisions, with 78% of CV now in this platform, targeting over 80% by year-end [7][22] - The launch of new services in response to AI demand, including a dedicated FD service for data, AI, and analytics leaders, is part of the strategic direction [10] - The sales strategy emphasizes selling to C-level executives and maintaining a standardized sales process to drive growth [13][14] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in the economic environment but expressed confidence in the ongoing stabilization of CV and retention metrics [19][30] - The transition to Forrester Decisions is nearing completion, and the company is optimistic about the potential for growth in 2025 [18][30] Other Important Information - The company divested its FeedbackNow product line for $6 million in cash and a $9 million note due in 2025, which has been reflected in the updated client metrics [20] - Operating expenses decreased by 7%, primarily due to lower compensation costs, while operating income decreased by 33% [25] Q&A Session Summary Question: What is the health of the end market and the performance of CV bookings? - Management noted good performance across several sectors but acknowledged weakness in one group, with adjustments made to improve execution [34] Question: What are the expectations for client budgets in 2025? - Research indicates that tech budgets are increasing in 2025, aligning with Forrester's strategy [35] Question: How does the company measure traction in its go-to-market strategy? - The company tracks progress through various metrics, including pipeline and retention, and is focused on executing its retention lifecycle [37][38] Question: What is the outlook for contract value bookings and revenue growth for next year? - While not providing specific guidance, management expects stabilization and potential growth in CV, with improvements in consulting and events bookings [43][44] Question: What is the status of the sales team and their ability to penetrate senior executives? - The sales organization has undergone extensive training and is focused on connecting with senior executives, with ongoing support for continuous improvement [48][49] Question: What pushback is the company hearing from clients regarding expanding FD seats? - Budget constraints are a common pushback, but management emphasizes the need to demonstrate value to overcome this challenge [53]

Core Insights - Forrester Research reported a revenue of $102.53 million for the quarter ended September 2024, reflecting a decline of 9.6% year-over-year, with EPS at $0.29 compared to $0.44 in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate of $101.94 million by 0.57%, while the EPS fell short of the consensus estimate of $0.34 by 14.71% [1] Revenue Breakdown - Revenue from Events was $2.09 million, significantly below the average estimate of $3.74 million, marking a year-over-year decline of 54.5% [3] - Consulting revenue reached $23.37 million, slightly above the average estimate of $22.57 million, but still down 17.2% year-over-year [3] - Research revenue amounted to $77.07 million, surpassing the average estimate of $75.63 million, with a year-over-year decline of 4.4% [3] Stock Performance - Forrester Research shares have decreased by 9.2% over the past month, contrasting with a 0.5% decline in the Zacks S&P 500 composite [4] - The stock currently holds a Zacks Rank 2 (Buy), suggesting potential for outperformance against the broader market in the near term [4]

Core Viewpoint - Forrester Research reported quarterly earnings of $0.29 per share, missing the Zacks Consensus Estimate of $0.34 per share, and showing a decline from $0.44 per share a year ago, indicating a negative earnings surprise of -14.71% [1][2] Financial Performance - The company posted revenues of $102.53 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 0.57%, but down from $113.43 million year-over-year [2] - Over the last four quarters, Forrester Research has not surpassed consensus EPS estimates, although it has topped consensus revenue estimates three times [2] Stock Performance - Forrester Research shares have declined approximately 45.2% since the beginning of the year, contrasting with the S&P 500's gain of 19.8% [3] - The company's current consensus EPS estimate for the upcoming quarter is $0.31 on revenues of $106.48 million, and for the current fiscal year, it is $1.46 on revenues of $430.33 million [7] Industry Outlook - The Computer - Services industry, to which Forrester Research belongs, is currently ranked in the bottom 41% of over 250 Zacks industries, indicating potential challenges ahead [8] - The performance of Forrester Research's stock may be influenced by the overall outlook of the industry [8]

Exhibit 99.1 FOR IMMEDIATE RELEASE Forrester Research Reports 2024 Third-Quarter Financial Results CAMBRIDGE, Mass., November 5, 2024 — Forrester Research, Inc. (Nasdaq: FORR) today announced financial results for the third quarter ended September 30, 2024, with contract value (CV) at $315.2 million, down 5% compared with the prior year. "We continue to make strong progress with our product migration, and we are on track to exceed our target of 80% of CV on the Forrester Decisions platform by year-end. CV m ...

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