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]

Investors with an interest in Computer - Services stocks have likely encountered both Forrester Research (FORR) and CACI International (CACI) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look. We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positiv ...

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers. Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional va ...

Investors interested in Computer - Services stocks are likely familiar with Forrester Research (FORR) and Perficient (PRFT) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look. Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank puts an emphasis on earnings estimates and estim ...

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies. Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they bel ...

Investors in Forrester Research, Inc. (FORR) need to pay close attention to the stock based on moves in the options market lately. That is because the Sep 20, 2024 $15 Call had some of the highest implied volatility of all equity options today. What is Implied Volatility? Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It cou ...

For the quarter ended June 2024, Forrester Research (FORR) reported revenue of $121.83 million, down 10.2% over the same period last year. EPS came in at $0.68, compared to $0.94 in the year-ago quarter. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. Revenue- Research : $38.16 million compared to the $32.99 million ave ...

Core Viewpoint - Forrester Research reported quarterly earnings of $0.68 per share, missing the Zacks Consensus Estimate of $0.70 per share, and showing a decline from $0.94 per share a year ago, indicating a negative earnings surprise of -2.86% [1] Financial Performance - Forrester Research posted revenues of $121.83 million for the quarter ended June 2024, surpassing the Zacks Consensus Estimate by 0.51%, but down from $135.59 million year-over-year [2] - The company has exceeded consensus revenue estimates two times over the last four quarters [2] Stock Performance - Forrester Research shares have declined approximately 29.4% since the beginning of the year, contrasting with the S&P 500's gain of 14.5% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.40 on revenues of $104.22 million, and for the current fiscal year, it is $1.58 on revenues of $440.24 million [7] - The trend of estimate revisions for Forrester Research is mixed, which may change following the recent earnings report [6] Industry Context - The Computer - Services industry, to which Forrester Research belongs, is currently ranked in the bottom 36% of over 250 Zacks industries, suggesting potential challenges ahead [8]

[Press Release Overview](index=1&type=section&id=Press%20Release%20Overview) This section provides an overview of Forrester Research's Q2 2024 financial results and key announcements [Headline and Initial Announcement](index=1&type=section&id=Headline%20and%20Initial%20Announcement) Forrester Research announced its Q2 2024 financial results on July 30, 2024, reporting a 3% year-over-year decrease in contract value (CV) to $323.0 million - Forrester Research announced Q2 2024 financial results on July 30, 2024[13](index=13&type=chunk) Contract Value (CV) Overview | Metric | Q2 2024 | | :----- | :------ | | Contract Value (CV) | $323.0 million | | YoY Change | **-3%** | [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO George F. Colony discussed product migration progress, stabilizing CV metrics, and challenges in non-CV businesses, leading to revised 2024 guidance - Product migration to Forrester Decisions platform is on track, targeting **80% of CV by year-end**[6](index=6&type=chunk) - CV metrics are **stabilizing**, and retention shows **improvement** from the prior quarter[6](index=6&type=chunk) - Non-CV businesses (consulting and events) had a challenging quarter, leading to **lowered 2024 guidance**[6](index=6&type=chunk) - Company is focused on stabilizing non-CV businesses and confident in **returning to CV growth by year-end**[6](index=6&type=chunk) [Second Quarter 2024 Financial Performance](index=1&type=section&id=Second-Quarter%20Consolidated%20Results) This section details Forrester's consolidated financial results for the second quarter of 2024, including income statements, balance sheet, and cash flow data Total Revenues (Q2 2024 vs Q2 2023) | Metric | Q2 2024 (in thousands) | Q2 2023 (in thousands) | YoY Change | | :----- | :--------------------- | :--------------------- | :--------- | | Total Revenues | $121,825 | $135,589 | **-10.15%** | Income from Operations (Q2 2024 vs Q2 2023) | Metric | Q2 2024 (in thousands) | Q2 2023 (in thousands) | YoY Change | | :----- | :--------------------- | :--------------------- | :--------- | | Income from Operations | $11,314 | $8,288 | **+36.51%** | [Consolidated Statements of Income](index=4&type=section&id=Consolidated%20Statements%20of%20Income) Forrester reported its consolidated income statement for Q2 2024, showing a GAAP net income increase for the quarter but a net loss for the six-month period, with adjusted net income decreasing [GAAP Results](index=1&type=section&id=GAAP%20Results) GAAP net income for Q2 2024 increased to $6.3 million, while the six-month period reported a net loss GAAP Net Income & EPS (Q2 2024 vs Q2 2023) | Metric | Q2 2024 | Q2 2023 | YoY Change | | :----- | :------ | :------ | :--------- | | Net Income | $6.3 million | $5.3 million | **+18.87%** | | Diluted EPS | $0.33 | $0.28 | **+17.86%** | GAAP Net Income & EPS (Six Months Ended June 30) | Metric | 2024 | 2023 | Change | | :----- | :--- | :--- | :----- | | Net Income (loss) | $(381) thousand | $1,229 thousand | **-131.00%** | | Diluted EPS | $(0.02) | $0.06 | **-133.33%** | [Adjusted Results](index=1&type=section&id=Adjusted%20Results) Adjusted net income for Q2 2024 decreased to $12.9 million, with a consistent adjusted effective tax rate Adjusted Net Income & EPS (Q2 2024 vs Q2 2023) | Metric | Q2 2024 | Q2 2023 | YoY Change | | :----- | :------ | :------ | :--------- | | Adjusted Net Income | $12.9 million | $18.1 million | **-28.69%** | | Adjusted Diluted EPS | $0.68 | $0.94 | **-27.66%** | - Adjusted net income excludes stock-based compensation, amortization of acquisition-related intangible assets, and restructuring costs[14](index=14&type=chunk)[19](index=19&type=chunk) [Revenue Breakdown](index=1&type=section&id=Revenue%20Breakdown) Total revenues for Q2 2024 decreased by 10.15% year-over-year, with declines across all segments Revenue by Segment (Q2 2024 vs Q2 2023, in thousands) | Segment | Q2 2024 | Q2 2023 | YoY Change | | :------ | :------ | :------ | :--------- | | Research | $83,663 | $87,699 | **-4.61%** | | Consulting | $24,811 | $29,970 | **-17.21%** | | Events | $13,351 | $17,920 | **-25.50%** | | **Total Revenues** | **$121,825** | **$135,589** | **-10.15%** | [Operating Expenses](index=4&type=section&id=Operating%20Expenses) Total operating expenses decreased by 13.19% year-over-year in Q2 2024, primarily due to reduced restructuring costs Key Operating Expenses (Q2 2024 vs Q2 2023, in thousands) | Expense Category | Q2 2024 | Q2 2023 | YoY Change | | :--------------- | :------ | :------ | :--------- | | Cost of services and fulfillment | $51,164 | $54,614 | **-6.32%** | | Selling and marketing | $40,253 | $41,581 | **-3.20%** | | General and administrative | $14,437 | $15,315 | **-5.73%** | | Amortization of intangible assets | $2,513 | $3,068 | **-18.10%** | | Restructuring costs | $82 | $10,532 | **-99.22%** | | **Total Operating Expenses** | **$110,511** | **$127,301** | **-13.19%** | [Key Financial Data](index=6&type=section&id=Key%20Financial%20Data) This section presents key balance sheet and cash flow data as of June 30, 2024, including changes in cash, receivables, and operating cash flow - Contract value (CV) was **$323.0 million** as of June 30, 2024, compared to **$333.2 million** (recast) as of June 30, 2023[13](index=13&type=chunk)[20](index=20&type=chunk) - Client retention was **74%** and wallet retention was **89%** as of June 30, 2023[20](index=20&type=chunk) - Total headcount was **1,793** and sales force was **616** as of June 30, 2023[20](index=20&type=chunk) [Balance Sheet Data](index=6&type=section&id=Balance%20Sheet%20Data) Cash, cash equivalents, and marketable investments decreased, while deferred revenue increased, and debt remained stable Balance Sheet Highlights (as of June 30, 2024 vs Dec 31, 2023, in thousands) | Metric | June 30, 2024 | Dec 31, 2023 | Change | | :----- | :------------ | :----------- | :----- | | Cash, cash equivalents and marketable investments | $110,813 | $124,489 | **-10.99%** | | Accounts receivable, net | $47,702 | $58,999 | **-19.15%** | | Deferred revenue | $164,117 | $156,798 | **+4.67%** | | Debt outstanding | $35,000 | $35,000 | **0.00%** | [Cash Flow Data](index=6&type=section&id=Cash%20Flow%20Data) Net cash provided by operating activities was negative for Q2 2024, and the company repurchased a significant amount of common stock Cash Flow Highlights (Q2 2024 vs Q2 2023, in thousands) | Metric | Q2 2024 | Q2 2023 | Change | | :----- | :------ | :------ | :----- | | Net cash provided by operating activities | $(2,295) | $15,788 | **-114.54%** | | Purchases of property and equipment | $(2,256) | $(2,664) | **+15.39%** | | Repayments of debt | $0 | $(15,000) | **+100.00%** | | Repurchases of common stock | $(8,015) | $(820) | **+877.44%** | [Full-Year 2024 Financial Guidance](index=2&type=section&id=Full-Year%202024%20Financial%20Guidance) This section outlines Forrester's financial guidance for the full-year 2024, including both GAAP and adjusted projections [GAAP Guidance](index=2&type=section&id=Full-Year%202024%20(GAAP)) Forrester provided GAAP guidance for full-year 2024, projecting total revenues between $425 million and $435 million, with specific operating margin and EPS ranges Full-Year 2024 GAAP Guidance | Metric | Range | | :----- | :---- | | Total revenues | $425 million to $435 million | | Operating margin | **1.2% to 2.2%** | | Interest expense | Approximately $3.0 million | | Effective tax rate | Approximately **65% to 80%** | | Earnings per share | Approximately **$0.06 to $0.19** | [Adjusted Guidance](index=2&type=section&id=Full-Year%202024%20(Adjusted)) The adjusted full-year 2024 guidance includes an operating margin of 8.5% to 9.5% and diluted earnings per share of $1.37 to $1.57, excluding specific non-GAAP adjustments Full-Year 2024 Adjusted Guidance | Metric | Range | | :----- | :---- | | Adjusted operating margin | Approximately **8.5% to 9.5%** | | Adjusted effective tax rate | Approximately **29%** | | Adjusted diluted earnings per share | Approximately **$1.37 to $1.57** | - Adjusted guidance excludes stock-based compensation (**$14.5M-$15.0M**), amortization of acquisition-related intangibles (**~$10.0M**), restructuring costs (**~$7.0M**), and any investment gains or losses[21](index=21&type=chunk) [About Forrester](index=2&type=section&id=About%20Forrester) This section provides a brief overview of Forrester Research, its mission, and the services it offers [Company Description](index=2&type=section&id=About%20Forrester%20Description) Forrester is a leading research and advisory firm that helps global leaders accelerate growth through customer obsession, offering proprietary research, consulting, and events - Forrester is an influential research and advisory firm[8](index=8&type=chunk) - Helps leaders across various functions (technology, customer experience, digital, marketing, sales, product) accelerate growth through customer obsession[8](index=8&type=chunk) - Services include proprietary research, consulting, and events[8](index=8&type=chunk) - Insights are based on annual surveys of over 700,000 consumers, business leaders, and technology leaders worldwide, rigorous research, and real-time feedback[8](index=8&type=chunk) [Forward-Looking Statements and Risk Factors](index=2&type=section&id=Forward-Looking%20Statements%20and%20Risk%20Factors) This section addresses forward-looking statements and outlines key risks and uncertainties that could impact Forrester's future financial performance [Forward-Looking Statements and Risks](index=2&type=section&id=Forward-Looking%20Statements%20and%20Risks) This section contains forward-looking statements regarding Forrester's financial guidance and future performance, subject to various risks including membership retention, technology spending, and international business challenges - Press release contains forward-looking statements regarding 2024 financial guidance and future performance[4](index=4&type=chunk) - Statements involve risks and uncertainties that could cause actual results to differ materially[4](index=4&type=chunk) - Important factors include ability to retain and enrich memberships, fulfill consulting engagements, technology spending, international business risks, and the use of generative AI[4](index=4&type=chunk)[22](index=22&type=chunk) - Other risks include dependence on key personnel, ability to attract staff, response to economic conditions, debt obligations, competition, quarterly operating result variations, network disruptions, intellectual property protection, privacy laws, and taxation[22](index=22&type=chunk) [Contact Information](index=3&type=section&id=Contact%20Information) This section provides contact details for investor relations and corporate communications [Investor and Media Contacts](index=3&type=section&id=Investor%20and%20Media%20Contacts) Contact details for investor relations and corporate communications are provided for inquiries - Investor Relations contact: Ed Bryce Morris, Vice President, Corporate Development & Investor Relations[9](index=9&type=chunk) - Corporate Communications contact: Shweta Agarwal, VP, Corporate Communications[23](index=23&type=chunk) [Notes and Disclosures](index=2&type=section&id=Notes%20and%20Disclosures) This section includes important notes and disclosures, such as the reconciliation of non-GAAP financial measures and copyright information [Non-GAAP Financial Measures Reconciliation](index=2&type=section&id=Non-GAAP%20Financial%20Measures%20Reconciliation) Forrester provides adjusted financial results to offer consistent and comparable information, excluding specific non-GAAP items and using an assumed 29% tax rate - Adjusted financial results are provided to offer consistent and comparable information for understanding ongoing business[19](index=19&type=chunk) - Exclusions for adjusted metrics include amortization of acquisition-related intangible assets, stock-based compensation, restructuring costs, legal settlements, and net gains/losses from investments, and their related tax effects[19](index=19&type=chunk) - An assumed tax rate of **29%** is used for adjusted net income calculations in 2024 and 2023[19](index=19&type=chunk) Reconciliation of GAAP Net Income to Adjusted Net Income (Q2 2024 vs Q2 2023, in thousands) | Item | Q2 2024 | Q2 2023 | | :--- | :------ | :------ | | Net income (loss) - GAAP | $6,292 | $5,304 | | Amortization of intangible assets | $2,513 | $3,068 | | Restructuring costs | $82 | $10,532 | | Stock-based compensation | $4,025 | $3,860 | | Tax effects of items above | $(1,288) | $(4,597) | | Adjustment to tax expense for adjusted tax rate | $1,288 | $(39) | | **Adjusted net income** | **$12,912** | **$18,128** | [Copyright](index=3&type=section&id=Copyright) This section states the copyright for the document - © 2024, Forrester Research, Inc. All rights reserved[18](index=18&type=chunk)