UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (MARK ONE) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934. FOR THE QUARTERLY PERIOD ENDED March 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934. Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months ...

Forrester Research (FORR) reported $100.08 million in revenue for the quarter ended March 2024, representing a year-over-year decline of 12%. EPS of $0.14 for the same period compares to $0.27 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $104.21 million, representing a surprise of -3.97%. The company delivered an EPS surprise of -36.36%, with the consensus EPS estimate being $0.22.While investors scrutinize revenue and earnings changes year-over-year and how they compare with ...

Forrester Research (FORR) came out with quarterly earnings of $0.14 per share, missing the Zacks Consensus Estimate of $0.22 per share. This compares to earnings of $0.27 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -36.36%. A quarter ago, it was expected that this technology research company would post earnings of $0.26 per share when it actually produced earnings of $0.25, delivering a surprise of -3.85%.Over the last fou ...

Financial Performance - Consolidated revenue was $480.8 million, a decrease of 11% compared to the prior year[21] - Research revenue was $334.4 million, a decrease of 6% compared to the prior year[21] - Consulting revenue was $118.2 million, a decrease of 23% compared to the prior year[21] - Event revenue was $28.2 million, a decrease of 8% compared to the prior year[21] - Adjusted EBITDA was $60.7 million[10] - Q1 2024 consolidated revenue was $100.1 million, a decrease of 12% compared to the prior year[43] - Q1 2024 research revenue was $76.6 million, a decrease of 5% compared to the prior year[43] - Q1 2024 consulting revenue was $23.1 million, a decrease of 27% compared to the prior year[43] - Q1 2024 event revenue was $0.4 million, a decrease of 65% compared to the prior year[43] - Adjusted EPS is guided between $1.50 and $1.70[62] Forrester Decisions (FD) - Two-thirds of Contract Value (CV) is in Forrester Decisions[10] - Forrester Decisions clients represent 50% of CV[23] - Forrester Decisions wallet retention is 87%[98] - Forrester Decisions client retention is 82%[98] Investment and ROI - The composite organization invests $710,000 in costs and experiences $2.54 million in benefits over three years, resulting in a net present value (NPV) of $1.83 million and an ROI of 259%[18]

Exhibit 99.1 On a GAAP basis, net loss was $6.7 million, or $0.35 per diluted share, for the first quarter of 2024, compared with a net loss of $4.1 million, or $0.21 per diluted share, for the same period in 2023. On an adjusted basis, net income was $2.8 million, or $0.14 per diluted share, for the first quarter of 2024, reflecting an adjusted effective tax rate of 29%. Adjusted net income excludes stock-based compensation of $3.6 million, amortization of acquisition-related intangible assets of $2.5 mill ...

CAMBRIDGE, Mass.--(BUSINESS WIRE)--Forrester (Nasdaq: FORR) today announced the full conference agenda for its CX Summit North America event being held in Nashville, Tennessee, and digitally on June 17–20, 2024. According to Forrester, 40% of B2C marketing executives in the US were already exploring generative AI (genAI) use cases at the end of last year, but as business leaders use this technology to improve customer experiences, amplify marketing efforts, and enhance digital properties, they must strike t ...

PART I [Item 1. Business](index=3&type=section&id=Item%201.%20Business) Forrester Research, Inc. is a global independent research and advisory firm, with its subscription-based business experiencing a 4% Contract Value decline in 2023 due to macroeconomic conditions and platform transition - Forrester Research, Inc. is a global independent research and advisory firm focused on helping business and technology leaders drive growth through customer obsession[13](index=13&type=chunk) - The foundation of Forrester's business model is its ability to help leaders tackle priorities and drive growth through customer obsession, with Contract Value (CV) being the most significant business metric[17](index=17&type=chunk) **Contract Value and Client Metrics:** | Metric | December 31, 2023 | December 31, 2022 | Absolute Change | Percentage Change | | :---------------- | :------------------ | :------------------ | :-------------- | :---------------- | | Contract value | $332.1 million | $345.4 million | $(13.3) million | (4%) | | Client retention | 73% | 74% | (1) point | | | Wallet retention | 87% | 94% | (7) points | | | Number of clients | 2,449 | 2,778 | (329) | (12%) | - The decrease in key metrics (CV, client retention, wallet retention, and number of clients) is primarily due to macroeconomic conditions affecting smaller technology clients and the technology industry, and the ongoing transition to the Forrester Decisions product platform[92](index=92&type=chunk) - As of December 31, 2023, Forrester employed **1,744 persons globally**, with **601 sales personnel**, a decrease from 709 in 2022[39](index=39&type=chunk)[30](index=30&type=chunk) [Item 1A. Risk Factors](index=10&type=section&id=Item%201A.%20Risk%20Factors) Forrester faces risks from declining subscription renewals, reduced consulting demand, adverse economic conditions, generative AI, loss of key staff, debt, and cybersecurity - Success depends on retaining and enriching existing subscriptions, including the migration to Forrester Decisions products; declines in retention or new sales could adversely affect results[45](index=45&type=chunk) - Consulting revenues comprised **25% of total revenues** in 2023 (down from 28% in 2022); a decline in new or existing engagements could negatively impact financial condition[46](index=46&type=chunk) - The use of generative AI, while offering opportunities, poses risks such as factual errors, confidential information distribution, ethical concerns, data privacy/security risks, and intellectual property rights issues, potentially reducing demand for services[50](index=50&type=chunk) - The company's future success is highly dependent on attracting and retaining qualified professional staff, including senior management, research professionals, consultants, and sales/marketing personnel[52](index=52&type=chunk) - Outstanding debt of **$35.0 million** under a **$150.0 million** revolving credit facility could restrict business and adversely affect financial condition, liquidity, and results of operations[54](index=54&type=chunk)[138](index=138&type=chunk) [Item 1B. Unresolved Staff Comments](index=14&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) Forrester Research, Inc. has not received any unresolved written comments from the Securities and Exchange Commission - The company has not received any unresolved written comments from the SEC[64](index=64&type=chunk) [Item 1C. Cybersecurity](index=15&type=section&id=Item%201C.%20Cybersecurity) Forrester maintains a comprehensive cybersecurity program aligned with NIST to protect systems and data, with board oversight, and has not experienced any material incidents to date - Forrester has implemented a cybersecurity program aligned with the National Institute of Standards and Technology (NIST) Cybersecurity Framework to identify, assess, manage, and mitigate cybersecurity risks[66](index=66&type=chunk) - The board of directors has final oversight responsibility for cybersecurity, with the CIO leading annual interactive sessions and the audit committee assisting in risk assessment and management[71](index=71&type=chunk) - To date, Forrester is not aware of any material cybersecurity threats or incidents that have materially affected its business, strategy, results of operations, or financial condition[70](index=70&type=chunk) [Item 2. Properties](index=15&type=section&id=Item%202.%20Properties) Forrester's corporate headquarters is a 190,000 square foot office in Cambridge, Massachusetts, with additional leased office spaces globally, all deemed adequate for current and future needs - Forrester's corporate headquarters is located in Cambridge, Massachusetts, comprising approximately **190,000 square feet** of office space, with the lease expiring on February 28, 2027[73](index=73&type=chunk) - The company also rents office space in San Francisco, New York City, McLean (VA), Norwalk (CT), London, New Delhi, Singapore, and Sydney, in addition to other short-term leases[74](index=74&type=chunk) [Item 3. Legal Proceedings](index=17&type=section&id=Item%203.%20Legal%20Proceedings) Forrester is subject to ordinary course legal proceedings and claims, which management believes will not have a material adverse effect on financial position, results, or cash flows, though interim effects could be material - Forrester is subject to legal proceedings and civil and regulatory claims in the ordinary course of business[75](index=75&type=chunk) - Management believes current legal proceedings and claims are not expected to have a material adverse effect on the company's financial position, results of operations, or cash flows, though interim effects could be material[77](index=77&type=chunk) [Item 4. Mine Safety Disclosures](index=17&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to Forrester Research, Inc - This item is not applicable[78](index=78&type=chunk) PART II [Item 5. Market For Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities](index=18&type=section&id=Item%205.%20Market%20For%20Registrant's%20Common%20Equity%2C%20Related%20Stockholder%20Matters%2C%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Forrester's common stock is listed on Nasdaq under 'FORR', with no dividends paid in 2022-2023, and **$514.1 million** used for stock repurchases out of **$585.0 million** authorized - Forrester's common stock is listed on the Nasdaq Global Select Market under the symbol "FORR"[81](index=81&type=chunk) - The company did not declare or pay any dividends during the years ended December 31, 2022 and 2023[81](index=81&type=chunk) | Metric | As of December 31, 2023 | | :-------------------------------- | :---------------------- | | Total authorized for repurchase | $585.0 million | | Aggregate cost of shares repurchased | $514.1 million | | Shares repurchased | 17.1 million | | Repurchases in Q4 2023 | None | [Item 6. [Reserved]](index=13&type=section&id=Item%206.%20%5BReserved%5D) This item is reserved and contains no information [Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=14&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section reviews Forrester's financial performance, highlighting an **11% decrease in total revenues** in 2023, significant declines in operating and net income, and strong liquidity with **$124.5 million** in cash and marketable investments [Overview](index=20&type=section&id=Overview) Forrester generates revenue from Research, Consulting, and Events, with key metrics like Contract Value, client retention, and wallet retention declining in 2023 due to macroeconomic conditions and the Forrester Decisions platform transition - Forrester derives revenues from subscriptions to Research products, licensing electronic 'reprints' of Research, performing consulting projects, and hosting events[87](index=87&type=chunk) - Research revenues as a percentage of total revenues increased from approximately **66%** in 2022 to approximately **70%** in 2023, reflecting a focus on Contract Value (CV) products[89](index=89&type=chunk) | Metric | As of December 31, 2023 | As of December 31, 2022 | Absolute Change | Percentage Change | | :---------------- | :---------------------- | :---------------------- | :-------------- | :---------------- | | Contract value | $332.1 million | $345.4 million | $(13.3) million | (4%) | | Client retention | 73% | 74% | (1) point | | | Wallet retention | 87% | 94% | (7) points | | | Number of clients | 2,449 | 2,778 | (329) | (12%) | - The decline in key metrics is attributed to macroeconomic conditions (funding/budget pressure on tech clients, uncertain economic conditions) and the ongoing transition to the Forrester Decisions product platform, which comprised **62% of CV** as of December 31, 2023[92](index=92&type=chunk) [Critical Accounting Estimates](index=22&type=section&id=Critical%20Accounting%20Estimates) Forrester's financial statements rely on critical accounting estimates for revenue recognition, goodwill, intangible assets, and income taxes, all requiring significant management judgment and impacting financial reporting - Critical accounting estimates include revenue recognition, goodwill, intangible and other long-lived assets, and income taxes, requiring significant management judgment and potentially impacting financial statements if actual results differ[93](index=93&type=chunk)[94](index=94&type=chunk) - Revenue recognition involves complex judgments in identifying distinct performance obligations, allocating transaction prices based on standalone selling prices, and estimating unused prepaid performance obligations[94](index=94&type=chunk)[95](index=95&type=chunk)[97](index=97&type=chunk) - Goodwill and intangible assets are subject to annual impairment tests, which involve qualitative or quantitative assessments requiring estimates of market conditions, operational performance, projected financial results, and discount rates[99](index=99&type=chunk)[100](index=100&type=chunk) - Income tax estimates involve recognizing deferred tax assets and liabilities and determining valuation allowances, considering all available evidence to assess the likelihood of realization[103](index=103&type=chunk)[104](index=104&type=chunk) [Results of Operations for the years ended December 31, 2023 and 2022](index=26&type=section&id=Results%20of%20Operations%20for%20the%20years%20ended%20December%2031%2C%202023%20and%202022) Forrester's total revenues decreased by **11%** in 2023, with significant declines across all segments, leading to an **86% decrease in net income** and an increased effective tax rate of **51%** | Metric | 2023 (in millions) | 2022 (in millions) | Absolute Change | Percentage Change | | :-------------------------- | :----------------- | :----------------- | :-------------- | :---------------- | | Total revenues | $480.8 | $537.8 | $(57.0) | (11%) | | Research revenues | $334.4 | $354.5 | $(20.1) | (6%) | | Consulting revenues | $118.2 | $152.6 | $(34.4) | (23%) | | Events revenues | $28.2 | $30.7 | $(2.6) | (8%) | | Income from operations | $6.8 | $32.7 | $(25.9) | (79%) | | Net income | $3.1 | $21.8 | $(18.7) | (86%) | | Effective tax rate | 51% | 29% | 22 points | | - The decrease in Research revenues was primarily due to a decline in Contract Value (CV) and revenue from reprint and discontinued products, with growth in Forrester Decisions offset by declines in legacy research products[107](index=107&type=chunk) - Consulting revenues decreased due to lower client bookings, influenced by the macroeconomic environment and a policy change to primarily sell consulting only to contract value clients[108](index=108&type=chunk) - Restructuring costs increased to **$13.3 million** in 2023 from **$9.3 million** in 2022, reflecting workforce reductions (**4%** in Jan 2023, **8%** in May 2023, **3%** in Feb 2024) and office closures to streamline operations and align cost structure with revenue outlook[117](index=117&type=chunk)[118](index=118&type=chunk)[119](index=119&type=chunk)[173](index=173&type=chunk) [Segment Results](index=31&type=section&id=Segment%20Results) Forrester operates in Research, Consulting, and Events segments, all experiencing revenue declines in 2023, with Consulting down **19%** due to lower bookings and strategic shifts, alongside corresponding expense reductions - Forrester operates in three reportable segments: Research, Consulting, and Events, with performance evaluated based on segment revenues and direct expenses[125](index=125&type=chunk)[128](index=128&type=chunk) | Segment | 2023 Total Segment Revenues (in thousands) | 2022 Total Segment Revenues (in thousands) | Year over year revenue change | | :-------- | :--------------------------------------- | :--------------------------------------- | :---------------------------- | | Research | $363,222 | $396,012 | (8%) | | Consulting | $89,402 | $111,028 | (19%) | | Events | $28,155 | $30,747 | (8%) | | Segment | 2023 Segment Expenses (in thousands) | 2022 Segment Expenses (in thousands) | Year over year expense change | | :-------- | :----------------------------------- | :----------------------------------- | :---------------------------- | | Research | $(132,444) | $(133,566) | (1%) | | Consulting | $(45,028) | $(56,889) | (21%) | | Events | $(20,557) | $(21,801) | (6%) | - Consulting segment revenue decrease was primarily due to lower client bookings, influenced by macroeconomic conditions and a policy to sell consulting primarily to contract value clients[131](index=131&type=chunk) [Liquidity and Capital Resources](index=33&type=section&id=Liquidity%20and%20Capital%20Resources) Forrester's cash from operating activities decreased to **$21.7 million** in 2023, but the company maintains strong liquidity with **$124.5 million** in cash and marketable investments, and is compliant with debt covenants | Cash Flow Activity | 2023 (in millions) | 2022 (in millions) | Change (in millions) | | :----------------------- | :----------------- | :----------------- | :------------------- | | Operating activities | $21.7 | $39.4 | $(17.8) | | Investing activities | $(36.8) | $(6.8) | $(30.0) | | Financing activities | $(18.3) | $(38.9) | $20.6 | - The decrease in cash from operating activities in 2023 was primarily due to an **$18.8 million decrease in net income**[135](index=135&type=chunk) - As of December 31, 2023, Forrester had **$124.5 million** in cash, cash equivalents, and marketable investments, with **$75.8 million** held outside the U.S. and **$35.0 million** outstanding on its **$150.0 million** revolving credit facility[142](index=142&type=chunk)[138](index=138&type=chunk) - The company was in full compliance with all financial covenants under its credit facility as of December 31, 2023, and expects to remain compliant for the next 12 months[139](index=139&type=chunk) [Recent Accounting Pronouncements](index=35&type=section&id=Recent%20Accounting%20Pronouncements) Forrester adopted ASU No. 2019-12 with no material impact and is currently evaluating ASU No. 2023-07 (Segment Reporting) and ASU No. 2023-09 (Income Taxes) for future disclosure enhancements - ASU No. 2019-12, Income Taxes, adopted in January 2021, did not have a material impact on financial position or results[189](index=189&type=chunk) - The company is evaluating the impact of ASU No. 2023-07, Segment Reporting (effective January 2024), and ASU No. 2023-09, Income Taxes (effective January 2025), which enhance disclosure requirements[245](index=245&type=chunk)[246](index=246&type=chunk) [Item 7A. Quantitative and Qualitative Disclosures About Market Risk](index=36&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Forrester faces market risks from foreign currency exchange rates and variable interest rates on its **$35.0 million** debt, mitigating currency risk with forward contracts, while its investment portfolio is stable - Forrester is exposed to market risk from changes in foreign currency exchange rates and interest rates on its variable-rate debt[146](index=146&type=chunk) | Metric | 2023 (in millions) | 2022 (in millions) | 2021 (in millions) | | :------------------------ | :----------------- | :----------------- | :----------------- | | Foreign currency exchange losses | $0.3 | $0.2 | $1.4 | - As of December 31, 2023, the company had **$35.0 million** in floating-rate debt; a hypothetical **25 basis point** change in interest rates could impact annual pretax interest expense by approximately **$0.1 million**[148](index=148&type=chunk)[149](index=149&type=chunk) - The investment portfolio, primarily short-term and investment-grade, is not expected to be materially affected by sudden changes in market interest rates[150](index=150&type=chunk) [Item 8. Consolidated Financial Statements and Supplementary Data](index=37&type=section&id=Item%208.%20Consolidated%20Financial%20Statements%20and%20Supplementary%20Data) This section presents Forrester's audited consolidated financial statements for 2021-2023, with PricewaterhouseCoopers LLP providing an **unqualified opinion** on both financial statements and internal control over financial reporting - PricewaterhouseCoopers LLP issued an **unqualified opinion** on Forrester's consolidated financial statements for the period ended December 31, 2023, and on the effectiveness of its internal control over financial reporting[157](index=157&type=chunk)[158](index=158&type=chunk) **Consolidated Balance Sheet Highlights (in thousands):** | Metric | December 31, 2023 | December 31, 2022 | | :-------------------------- | :------------------ | :------------------ | | Total assets | $564,174 | $608,438 | | Total liabilities | $323,909 | $386,782 | | Total stockholders' equity | $240,265 | $221,656 | | Cash and cash equivalents | $72,909 | $103,629 | | Marketable investments | $51,580 | $19,688 | | Long-term debt | $35,000 | $50,000 | **Consolidated Statements of Operations Highlights (in thousands):** | Metric | 2023 | 2022 | 2021 | | :-------------------------- | :----- | :----- | :----- | | Total revenues | $480,779 | $537,787 | $494,315 | | Income from operations | $6,766 | $32,654 | $38,642 | | Net income | $3,050 | $21,806 | $24,844 | | Diluted income per common share | $0.16 | $1.14 | $1.28 | **Consolidated Statements of Cash Flows Highlights (in thousands):** | Metric | 2023 | 2022 | 2021 | | :-------------------------------- | :----- | :----- | :----- | | Net cash provided by operating activities | $21,673 | $39,425 | $107,067 | | Net cash used in investing activities | $(36,759) | $(6,814) | $(29,296) | | Net cash used in financing activities | $(18,299) | $(38,871) | $(49,143) | [Report of Independent Registered Public Accounting Firm](index=38&type=section&id=Report%20of%20Independent%20Registered%20Public%20Accounting%20Firm) - PricewaterhouseCoopers LLP provided an **unqualified opinion** on Forrester's consolidated financial statements for 2023 and 2022, and on the effectiveness of internal control over financial reporting as of December 31, 2023[157](index=157&type=chunk)[158](index=158&type=chunk) - A critical audit matter identified was Revenue Recognition – Identification of Distinct Performance Obligations, due to the high degree of auditor effort in evaluating management's judgments[165](index=165&type=chunk)[166](index=166&type=chunk) [Consolidated Balance Sheets](index=40&type=section&id=Consolidated%20Balance%20Sheets) | ASSETS (in thousands) | December 31, 2023 | December 31, 2022 | | :-------------------------- | :------------------ | :------------------ | | Cash and cash equivalents | $72,909 | $103,629 | | Marketable investments | $51,580 | $19,688 | | Accounts receivable, net | $58,999 | $73,345 | | Total current assets | $216,000 | $235,290 | | Goodwill | $244,257 | $242,149 | | Intangible assets, net | $37,637 | $49,504 | | Total assets | $564,174 | $608,438 | | LIABILITIES AND STOCKHOLDERS' EQUITY (in thousands) | December 31, 2023 | December 31, 2022 | | :------------------------------------------------ | :------------------ | :------------------ | | Deferred revenue | $156,798 | $178,021 | | Total current liabilities | $240,076 | $269,389 | | Long-term debt | $35,000 | $50,000 | | Total liabilities | $323,909 | $386,782 | | Total stockholders' equity | $240,265 | $221,656 | [Consolidated Statements of Operations](index=41&type=section&id=Consolidated%20Statements%20of%20Operations) | (in thousands, except per share data) | 2023 | 2022 | 2021 | | :------------------------------------ | :----- | :----- | :----- | | Revenues: | | | | | Research | $334,396 | $354,453 | $325,340 | | Consulting | $118,228 | $152,587 | $156,114 | | Events | $28,155 | $30,747 | $12,861 | | Total revenues | $480,779 | $537,787 | $494,315 | | Operating expenses: | | | | | Cost of services and fulfillment | $204,484 | $223,773 | $201,815 | | Selling and marketing | $167,352 | $181,940 | $170,949 | | General and administrative | $68,497 | $67,655 | $58,056 | | Restructuring costs | $13,272 | $9,335 | $0 | | Total operating expenses | $474,013 | $505,133 | $455,673 | | Income from operations | $6,766 | $32,654 | $38,642 | | Net income | $3,050 | $21,806 | $24,844 | | Diluted income per common share | $0.16 | $1.14 | $1.28 | [Consolidated Statements of Comprehensive Income](index=42&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) | (in thousands) | 2023 | 2022 | 2021 | | :------------------------------------ | :----- | :----- | :----- | | Net income | $3,050 | $21,806 | $24,844 | | Other comprehensive income (loss), net of tax: | | | | | Foreign currency translation | $3,248 | $(4,807) | $(3,083) | | Net change in market value of interest rate swap | $0 | $212 | $609 | | Net change in market value of investments | $99 | $(134) | $(25) | | Other comprehensive income (loss) | $3,347 | $(4,729) | $(2,499) | | Comprehensive income | $6,397 | $17,077 | $22,345 | [Consolidated Statements of Stockholders' Equity](index=43&type=section&id=Consolidated%20Statements%20of%20Stockholders'%20Equity) | (in thousands) | Balance at Dec 31, 2022 | Issuance of common stock | Repurchases of common stock | Stock-based compensation expense | Net income | Net change in marketable investments | Foreign currency translation | Balance at Dec 31, 2023 | | :-------------------------- | :---------------------- | :----------------------- | :-------------------------- | :------------------------------- | :--------- | :----------------------------------- | :--------------------------- | :---------------------- | | Common Stock, $0.01 Par Value | $244 | $3 | $0 | $0 | $0 | $0 | $0 | $247 | | Additional Paid-in Capital | $261,766 | $805 | $0 | $15,486 | $0 | $0 | $0 | $278,057 | | Retained Earnings | $174,631 | $0 | $0 | $0 | $3,050 | $0 | $0 | $177,681 | | Treasury Stock | $(207,067) | $0 | $(4,082) | $0 | $0 | $0 | $0 | $(211,149) | | Accumulated Other Comprehensive Loss | $(7,918) | $0 | $0 | $0 | $0 | $99 | $3,248 | $(4,571) | | Total Stockholders' Equity | $221,656 | $808 | $(4,082) | $15,486 | $3,050 | $99 | $3,248 | $240,265 | [Consolidated Statements of Cash Flows](index=44&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) | (in thousands) | 2023 | 2022 | 2021 | | :------------------------------------ | :----- | :----- | :----- | | Cash flows from operating activities: | | | | | Net income | $3,050 | $21,806 | $24,844 | | Net cash provided by operating activities | $21,673 | $39,425 | $107,067 | | Cash flows from investing activities: | | | | | Purchases of property and equipment | $(5,495) | $(5,663) | $(10,745) | | Purchases of marketable investments | $(61,068) | $(28,683) | $(21,607) | | Proceeds from maturities of marketable investments | $28,338 | $27,331 | $2,000 | | Net cash used in investing activities | $(36,759) | $(6,814) | $(29,296) | | Cash flows from financing activities: | | | | | Payments on borrowings | $(15,000) | $(25,000) | $(34,375) | | Repurchases of common stock | $(4,082) | $(15,112) | $(20,066) | | Net cash used in financing activities | $(18,299) | $(38,871) | $(49,143) | | Net increase (decrease) in cash, cash equivalents and restricted cash | $(30,612) | $(12,377) | $27,379 | | Cash, cash equivalents and restricted cash, end of year | $75,042 | $105,654 | $118,031 | [Notes to Consolidated Financial Statements](index=45&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) [Note 1 – Summary of Significant Accounting Policies](index=45&type=section&id=Note%201%20%E2%80%93%20Summary%20of%20Significant%20Accounting%20Policies) - Forrester Research, Inc. is a global independent research and advisory firm, with financial statements prepared in accordance with GAAP and SEC rules[185](index=185&type=chunk)[186](index=186&type=chunk) - Critical accounting estimates include revenue recognition, goodwill, intangible and other long-lived assets, and income taxes, requiring management judgment[188](index=188&type=chunk) - Revenue recognition follows a five-step model, identifying performance obligations and allocating transaction prices, with revenue recognized when control of products/services is transferred to the customer[206](index=206&type=chunk) - Research revenues are primarily recognized ratably over the contract term, while consulting project revenues are recognized over time based on hours expended, and event revenues upon completion of the event[211](index=211&type=chunk)[212](index=212&type=chunk)[214](index=214&type=chunk) - Deferred revenue consists of billings in excess of recognized revenue, with approximately **$385.6 million** expected to be recognized over the next 24 months from remaining performance obligations as of December 31, 2023[222](index=222&type=chunk)[223](index=223&type=chunk) [Note 2 – Marketable Investments](index=56&type=section&id=Note%202%20%E2%80%93%20Marketable%20Investments) | (in thousands) | Amortized Cost (2023) | Market Value (2023) | Amortized Cost (2022) | Market Value (2022) | | :-------------------- | :-------------------- | :------------------ | :-------------------- | :------------------ | | Corporate obligations | $18,049 | $17,977 | $17,900 | $17,703 | | Federal agency obligations | $2,000 | $1,993 | $1,999 | $1,985 | | Money market funds | $31,610 | $31,610 | $0 | $0 | | Total | $51,659 | $51,580 | $19,899 | $19,688 | - Marketable investments are classified as available-for-sale securities and carried at fair value, with unrealized gains and losses recorded in accumulated other comprehensive loss[192](index=192&type=chunk) - The company did not record any other-than-temporary impairment losses on its available-for-sale securities during 2023, 2022, or 2021[193](index=193&type=chunk) [Note 3 – Goodwill and Other Intangible Assets](index=58&type=section&id=Note%203%20%E2%80%93%20Goodwill%20and%20Other%20Intangible%20Assets) | Goodwill by Segment (in thousands) | December 31, 2023 | December 31, 2022 | | :--------------------------------- | :------------------ | :------------------ | | Research Segment | $236,058 | $234,020 | | Consulting Segment | $8,199 | $8,129 | | Total Goodwill | $244,257 | $242,149 | - Forrester performed its annual goodwill impairment test as of November 30, 2023, using a quantitative assessment and concluded that no impairments existed[250](index=250&type=chunk) | Amortizable Intangible Assets (in thousands) | Gross Carrying Amount (2023) | Accumulated Amortization (2023) | Net Carrying Amount (2023) | | :------------------------------------------- | :--------------------------- | :------------------------------ | :------------------------- | | Customer relationships | $77,640 | $42,091 | $35,549 | | Technology | $16,524 | $15,950 | $574 | | Trademarks | $12,519 | $11,005 | $1,514 | | Total | $106,683 | $69,046 | $37,637 | - Amortization expense related to intangible assets was **$12.0 million** in 2023, down from **$13.2 million** in 2022, and is expected to be approximately **$10.0 million** for 2024[252](index=252&type=chunk)[116](index=116&type=chunk) [Note 4 – Debt](index=60&type=section&id=Note%204%20%E2%80%93%20Debt) - Forrester's Amended Credit Agreement provides a **$150.0 million** revolving credit facility, maturing in December 2026, with an option to increase commitments by **$50.0 million**[254](index=254&type=chunk)[255](index=255&type=chunk) | Metric | December 31, 2023 (in thousands) | December 31, 2022 (in thousands) | | :-------------------------- | :------------------------------- | :------------------------------- | | Revolving credit facility outstanding | $35,000 | $50,000 | | Available borrowing capacity | $114,400 | N/A | | Contractual annualized interest rate | 6.70596% | N/A | | Weighted average annual effective rate | 6.3% | 2.9% | - The credit facility contains customary restrictive loan covenants, including financial covenants for maximum leverage ratio, minimum interest coverage ratio, and maximum annual capital expenditures, with which the company was in full compliance as of December 31, 2023[262](index=262&type=chunk) [Note 5 – Leases](index=62&type=section&id=Note%205%20%E2%80%93%20Leases) - Forrester's leases are primarily operating leases for office space, with ROU assets and lease liabilities recognized based on the present value of future minimum lease payments[226](index=226&type=chunk)[227](index=227&type=chunk) | Lease Metric (in thousands) | 2023 | 2022 | | :------------------------------------ | :----- | :----- | | Total lease cost | $17,525 | $19,708 | | Cash paid for operating lease liabilities | $13,839 | $12,939 | | Operating ROU assets obtained | $1,110 | $323 | | Weighted-average remaining lease term | 4.3 years | 5.1 years | | Weighted-average discount rate | 4.3% | 4.3% | - In 2023, the company recorded **$1.9 million** of ROU asset impairments and accelerated amortization, and **$0.7 million** of leasehold improvement impairments due to closing various offices, following **$3.7 million** and **$1.3 million** respectively in 2022[267](index=267&type=chunk) [Note 6 – Derivatives and Hedging](index=65&type=section&id=Note%206%20%E2%80%93%20Derivatives%20and%20Hedging) - Forrester uses derivative contracts, including foreign currency forward exchange contracts, to mitigate cash flow risk from foreign currency exchange rates[269](index=269&type=chunk)[272](index=272&type=chunk) - The company's interest rate swap matured on December 31, 2022, and no amounts related to it were recorded in 2023[270](index=270&type=chunk)[274](index=274&type=chunk) - Foreign currency forward contracts are recorded at fair value, with realized and unrealized gains and losses included in other income (expense), net, as they are not designated as accounting hedges[272](index=272&type=chunk) [Note 7 – Fair Value Measurements](index=65&type=section&id=Note%207%20%E2%80%93%20Fair%20Value%20Measurements) - Forrester classifies financial assets and liabilities measured at fair value into Level 1, 2, or 3 hierarchy based on observability of inputs[276](index=276&type=chunk)[277](index=277&type=chunk)[278](index=278&type=chunk) | Financial Assets (in thousands) | Level 1 (2023) | Level 2 (2023) | Total (2023) | Level 1 (2022) | Level 2 (2022) | Total (2022) | | :------------------------------ | :------------- | :------------- | :----------- | :------------- | :------------- | :----------- | | Money market funds | $55,128 | $0 | $55,128 | $5,800 | $0 | $5,800 | | Marketable investments | $0 | $19,970 | $19,970 | $0 | $19,688 | $19,688 | | Total Assets | $55,128 | $19,970 | $75,098 | $5,800 | $19,688 | $25,488 | - No assets or liabilities were transferred between fair value hierarchy levels during 2023 and 2022, and no changes were made to valuation techniques for Level 2 assets and liabilities[280](index=280&type=chunk) [Note 8 – Income Taxes](index=67&type=section&id=Note%208%20%E2%80%93%20Income%20Taxes) | Income before income taxes (in thousands) | 2023 | 2022 | 2021 | | :---------------------------------------- | :----- | :----- | :----- | | Domestic | $(4,058) | $16,552 | $22,424 | | Foreign | $10,343 | $14,172 | $10,767 | | Total | $6,285 | $30,724 | $33,191 | | Income tax expense (in thousands) | 2023 | 2022 | 2021 | | :-------------------------------- | :----- | :----- | :----- | | Total current | $8,696 | $15,570 | $8,622 | | Total deferred | $(5,461) | $(6,652) | $(275) | | Income tax expense | $3,235 | $8,918 | $8,347 | | Effective Tax Rate Reconciliation | 2023 | 2022 | 2021 | | :-------------------------------- | :----- | :----- | :----- | | Federal statutory rate | 21.0% | 21.0% | 21.0% | | State tax provision, net of federal benefit | 8.1% | 5.2% | 3.8% | | Stock compensation | 17.5% | 0.9% | (0.4)% | | Effective tax rate | 51.5% | 29.0% | 25.1% | - The increase in the effective tax rate in 2023 was primarily due to the decline in income before taxes and increased non-deductible stock compensation[283](index=283&type=chunk) - As of December 31, 2023, Forrester maintained a valuation allowance of **$1.1 million**, primarily related to foreign net operating loss carryforwards from an acquisition[288](index=288&type=chunk) [Note 9 – Stockholders' Equity](index=71&type=section&id=Note%209%20%E2%80%93%20Stockholders'%20Equity) - Forrester's Board of Directors authorized an aggregate **$585.0 million** for common stock repurchases, with approximately **17.1 million shares** repurchased at a cost of **$514.1 million** as of December 31, 2023[294](index=294&type=chunk) - The Equity Incentive Plan was amended in May 2023, extending its term to May 2033 and increasing shares issuable by **3,500,000**, with approximately **4.2 million shares** available for future grants as of December 31, 2023[297](index=297&type=chunk)[298](index=298&type=chunk) | RSU Activity (in thousands, except per share data) | Number of Shares | Weighted Average Grant Date Fair Value | | :------------------------------------------------- | :--------------- | :------------------------------------- | | Unvested at December 31, 2022 | 682 | $46.28 | | Granted | 695 | $32.82 | | Vested | (271) | $44.95 | | Forfeited | (107) | $42.72 | | Unvested at December 31, 2023 | 999 | $37.66 | - The Employee Stock Purchase Plan allows eligible employees to purchase common stock at a discount, with approximately **0.6 million shares** remaining available for issuance as of December 31, 2023[303](index=303&type=chunk) [Note 10 – Employee Pension Plans](index=75&type=section&id=Note%2010%20%E2%80%93%20Employee%20Pension%20Plans) - Forrester sponsors several defined contribution plans for eligible employees, with contributions totaling **$7.8 million** in 2023, **$8.2 million** in 2022, and **$6.5 million** in 2021[308](index=308&type=chunk) [Note 11 – Restructuring](index=75&type=section&id=Note%2011%20%E2%80%93%20Restructuring) - In January 2023, Forrester implemented a **4% workforce reduction**, incurring **$0.6 million** in severance and related costs in Q1 2023, and additional impairments of **$0.4 million** to its California office in Q1 and Q4 2023[309](index=309&type=chunk) - In May 2023, an **8% workforce reduction** was implemented, incurring **$7.5 million** in severance and related costs, along with **$2.3 million** in restructuring costs for office closures, including ROU asset and leasehold improvement impairments[310](index=310&type=chunk)[312](index=312&type=chunk) - In February 2024, a **3% workforce reduction** was implemented, with approximately **$0.7 million** in severance costs recorded in Q4 2023, and total anticipated costs of **$7.3 million to $7.7 million**, including **$3.8 million** in non-cash lease impairment costs[313](index=313&type=chunk) [Note 12 – Operating Segment and Enterprise Wide Reporting](index=77&type=section&id=Note%2012%20%E2%80%93%20Operating%20Segment%20and%20Enterprise%20Wide%20Reporting) - Forrester operates in three reportable segments: Research, Consulting, and Events, with performance evaluated based on segment revenues and direct expenses[314](index=314&type=chunk)[317](index=317&type=chunk) | Segment Revenues (in thousands) | 2023 | 2022 | 2021 | | :------------------------------ | :----- | :----- | :----- | | Research | $363,222 | $396,012 | $372,587 | | Consulting | $89,402 | $111,028 | $108,867 | | Events | $28,155 | $30,747 | $12,861 | | Total segment revenues | $480,779 | $537,787 | $494,315 | | Revenues by Geographic Destination | 2023 (in thousands) | 2022 (in thousands) | 2021 (in thousands) | | :--------------------------------- | :------------------ | :------------------ | :------------------ | | United States | $373,483 | $426,041 | $381,662 | | Europe (excluding United Kingdom) | $37,912 | $36,664 | $41,264 | | United Kingdom | $21,311 | $20,079 | $21,913 | | Canada | $16,416 | $20,759 | $17,213 | | Asia Pacific | $23,604 | $26,548 | $26,768 | | Other | $8,053 | $7,696 | $5,495 | | Total | $480,779 | $537,787 | $494,315 | [Note 13 – Certain Balance Sheet Accounts](index=80&type=section&id=Note%2013%20%E2%80%93%20Certain%20Balance%20Sheet%20Accounts) | Property and Equipment, Net (in thousands) | 2023 | 2022 | | :----------------------------------------- | :----- | :----- | | Computers and equipment | $10,128 | $14,303 | | Computer software | $34,641 | $34,903 | | Furniture and fixtures | $9,188 | $9,745 | | Leasehold improvements | $29,506 | $30,285 | | Total property and equipment | $83,463 | $89,236 | | Less accumulated depreciation | $(64,062) | $(66,028) | | Total property and equipment, net | $19,401 | $23,208 | | Accrued Expenses and Other Current Liabilities (in thousands) | 2023 | 2022 | | :------------------------------------------------------------ | :----- | :----- | | Payroll and related benefits | $43,426 | $53,581 | | Taxes | $4,680 | $5,823 | | Lease liability | $14,181 | $13,632 | | Other | $19,195 | $17,971 | | Total | $81,482 | $91,007 | | Allowance for Doubtful Accounts (in thousands) | 2023 | 2022 | 2021 | | :--------------------------------------------- | :----- | :----- | :----- | | Balance, beginning of year | $560 | $610 | $708 | | Provision for doubtful accounts | $701 | $638 | $225 | | Write-offs | $(692) | $(669) | $(318) | | Balance, end of year | $574 | $560 | $610 | [Note 14 – Contingencies](index=81&type=section&id=Note%2014%20%E2%80%93%20Contingencies) - Forrester accrues for legal contingencies when a liability is probable and estimable, and expenses related legal fees as incurred[324](index=324&type=chunk) - In Q1 2023, the company accrued **$4.8 million** for a wage-related legal settlement, classified in general and administrative expense[324](index=324&type=chunk) - Management believes current legal proceedings are not expected to have a material adverse effect on financial position, results of operations, or cash flows, though interim effects could be material[326](index=326&type=chunk) [Note 15 – Subsequent Events](index=81&type=section&id=Note%2015%20%E2%80%93%20Subsequent%20Events) - In February 2024, Forrester implemented a **3% workforce reduction** and plans to close its San Francisco office, anticipating total costs of **$7.3 million to $7.7 million**, including **$3.8 million** in non-cash lease impairment costs[327](index=327&type=chunk) [Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure](index=55&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20With%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) This item is not applicable to Forrester Research, Inc., as there have been no changes in or disagreements with accountants on accounting and financial disclosure - This item is not applicable[328](index=328&type=chunk) [Item 9A. Controls and Procedures](index=55&type=section&id=Item%209A.%20Controls%20and%20Procedures) Forrester's management concluded that disclosure controls and internal control over financial reporting were **effective** as of December 31, 2023, an assessment concurred by PricewaterhouseCoopers LLP, with no material changes in Q4 2023 - Forrester's disclosure controls and procedures were **effective** as of December 31, 2023[329](index=329&type=chunk) - Management concluded that the company's internal control over financial reporting was **effective** as of December 31, 2023, based on the COSO 2013 framework[331](index=331&type=chunk) - PricewaterhouseCoopers LLP audited and confirmed the **effectiveness** of internal control over financial reporting[332](index=332&type=chunk) - **No material changes** in internal control over financial reporting occurred during the quarter ended December 31, 2023[333](index=333&type=chunk) [Item 9B. Other Information](index=55&type=section&id=Item%209B.%20Other%20Information) No director or officer adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during Q4 2023 - No director or officer adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during Q4 2023[334](index=334&type=chunk) [Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](index=55&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20that%20Prevent%20Inspections) This item is not applicable to Forrester Research, Inc - This item is not applicable[335](index=335&type=chunk) PART III [Item 10. Directors, Executive Officers, and Corporate Governance](index=56&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%2C%20and%20Corporate%20Governance) This section lists Forrester's executive officers as of March 8, 2024, and references the company's Code of Business Conduct and Ethics, with further details incorporated from the 2024 Proxy Statement - Key executive officers include George F. Colony (Chairman & CEO), L. Christian Finn (CFO), and Nate Swan (Chief Sales Officer)[338](index=338&type=chunk)[340](index=340&type=chunk)[345](index=345&type=chunk) - Forrester maintains a Code of Business Conduct and Ethics covering all employees, officers, and directors, available on its website[346](index=346&type=chunk) [Item 11. Executive Compensation](index=57&type=section&id=Item%2011.%20Executive%20Compensation) Executive compensation details are incorporated by reference from Forrester's 2024 Proxy Statement - Executive compensation details are incorporated by reference from the 2024 Proxy Statement[349](index=349&type=chunk) [Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=57&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Security ownership information is incorporated by reference from the 2024 Proxy Statement, detailing **1,200,150** securities to be issued from outstanding options and **4,807,930** shares available for future issuance under equity plans - Security ownership information is incorporated by reference from the 2024 Proxy Statement[350](index=350&type=chunk) | Plan Category | Number of Securities to be Issued Upon Exercise of Outstanding Options, Warrants and Rights | Weighted Average Exercise Price of Outstanding Options, Warrants and Rights | Number of Securities Remaining Available for Future Issuance Under Equity Compensation Plans | | :------------------------------------ | :-------------------------------------------------------------------------- | :-------------------------------------------------------------------------- | :------------------------------------------------------------------------------------------- | | Equity compensation plans approved by stockholders | 1,200,150 | $33.93 | 4,807,930 | - The available shares for future issuance include **4,210,914 shares** under the Equity Incentive Plan and **597,016 shares** under the Stock Purchase Plan[350](index=350&type=chunk) [Item 13. Certain Relationships and Related Transactions, and Director Independence](index=57&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information on certain relationships, related transactions, and director independence is incorporated by reference from Forrester's 2024 Proxy Statement - Information on certain relationships, related transactions, and director independence is incorporated by reference from the 2024 Proxy Statement[351](index=351&type=chunk) [Item 14. Principal Accountant Fees and Services](index=57&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Details on principal accountant fees and services are incorporated by reference from Forrester's 2024 Proxy Statement - Details on principal accountant fees and services are incorporated by reference from the 2024 Proxy Statement[352](index=352&type=chunk) PART IV [Item 15. Exhibits and Financial Statement Schedules](index=58&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) Financial statements are filed as part of this 10-K report, with no separate schedules, and a complete listing of exhibits is provided in the Exhibit Index - Financial statements are included in this 10-K report, with no separate financial statement schedules[354](index=354&type=chunk) - A complete listing of exhibits is provided in the Exhibit Index[354](index=354&type=chunk) [Item 16. Form 10-K Summary](index=58&type=section&id=Item%2016.%20Form%2010-K%20Summary) This item is not applicable to Forrester Research, Inc - This item is not applicable[355](index=355&type=chunk)

Financial Data and Key Metrics Changes - Forrester's overall revenue for Q4 2023 was $118.1 million, a 14% decline from $136.9 million in Q4 2022, and for the full year, revenue was $480.7 million, representing an 11% decline from $537.8 million in 2022 [30][34] - Contract value (CV) declined by 4% in 2023, with a total of $215 million or 66% of CV contracts on the Forrester Decisions platform as of January 1, 2024 [8][33] - Operating income decreased by 47% to $6.8 million in Q4 2023, compared to $12.9 million in Q4 2022, and for the full year, operating income decreased by 25% to $52.3 million [38] Business Line Data and Key Metrics Changes - Research segment CV was $332.1 million at December 31, 2023, a 4% decline from December 2022, primarily due to lower enrichment of retained accounts and additional churn [31] - Consulting business revenues were $28.3 million for Q4 2023 and $118.2 million for the full year, representing declines of 25% and 23% respectively [34] - Events business revenues were $4.6 million in Q4 2023, a 36% decline compared to Q4 2022, driven by a shift in event timing [36] Market Data and Key Metrics Changes - The overall client count decreased from the prior quarter, but Forrester Decisions client count continues to grow, with retention remaining well above overall client retention by approximately 10 points [33] - The company expects both CV and wallet retention to be under pressure in 2024 due to the final year of product transition and a challenging economic environment [33] Company Strategy and Development Direction - Forrester aims to complete the transition of two-thirds of its contract value into the Forrester Decisions platform by the end of 2024, focusing on higher-value clients [4][5] - The company is sharpening its target audience for Forrester Decisions, primarily serving C-level executives in large organizations, which is expected to enhance resilience and scalability [6][7] - The company plans to launch new Forrester Waves focused on the generative AI market in 2024, indicating a strategic pivot towards emerging technologies [12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that 2023 was a challenging year due to internal transitions and external macroeconomic factors, but expressed confidence in the long-term benefits of these changes [2][46] - The company anticipates declining revenue in 2024 but aims to control costs to maintain margins and lay a foundation for sustainable growth in 2025 [13][41] - Management believes that 2024 will be an inflection point for Forrester as it completes its product migration and refines its go-to-market strategy [14][46] Other Important Information - The company reduced its workforce by 3% as part of its restructuring plan, which is expected to incur costs of approximately $7.3 million to $7.7 million [41] - Interest expense for Q4 2023 was $0.8 million, an increase from $0.7 million in Q4 2022, driven by higher interest rates [39] Q&A Session Summary Question: How much of the decline for this year is attributed to internal initiatives versus the macro environment? - Management indicated that while internal decisions have impacted short-term performance, the majority of the decline is attributed to external macroeconomic factors, particularly the tech recession [54][62] Question: What is the outlook for generative AI's impact on growth? - Management expressed confidence that generative AI will drive growth, as clients increasingly seek guidance on navigating this technology [65][67] Question: Is there more room for headcount cuts without jeopardizing quality? - Management stated that they believe they are through the majority of labor reductions and intend to preserve resources to support future growth [79] Question: How is the company performing in different regions? - Management noted strong performance in the government sector and indicated that international markets are showing positive signs [98]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (MARK ONE) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934. FOR THE QUARTERLY PERIOD ENDED September 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934. COMMISSION FILE NUMBER: 000-21433 FORRESTER RESEARCH, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) DELAWA ...

Financial Data and Key Metrics Changes - In Q3, overall revenue decreased by 11% to $113.4 million compared to $127.7 million in the prior year period [11] - Net income and earnings per share decreased by 21% and 23%, respectively, with net income at $8.6 million and earnings per share at $0.44 [38] - Contract value (CV) was flat in Q3, with Forrester Decisions reaching approximately $200 million, representing 57% of overall CV [24][48] Business Line Data and Key Metrics Changes - Research revenues decreased by 7% compared to Q3 2022, with subscription research products down by 1% [12] - Consulting business revenues were $28.2 million, down 24% year-over-year, attributed to clients limiting discretionary spending [15] - Events business revenues increased by 41% to $4.6 million, driven by hosting three events compared to two in the prior year [49] Market Data and Key Metrics Changes - Government clients showed strong traction, with several million-dollar deals closed with U.S. government agencies and significant contracts in APAC and EMEA [6][10] - The overall client retention rate dipped slightly to 73%, while Forrester Decisions client retention remained higher at 85% [12][13] Company Strategy and Development Direction - The company is focused on migrating approximately 2/3 of its CV to Forrester Decisions by the end of the year, with a long-term goal of 80% [53] - Enhancements to Forrester Decisions include the introduction of Izola, a generative AI tool aimed at improving client interactions and research accessibility [29][30] - The company is also simplifying its events portfolio to improve client experience and align with research content [35] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the future despite ongoing macroeconomic headwinds, expecting revenue declines to moderate into next year [41][42] - The uncertain environment is impacting new business growth, particularly in consulting and events, but the company remains on track for its migration plan [14][47] Other Important Information - Operating expenses decreased by 10% due to a restructuring plan, with headcount down 13% compared to the same period in 2022 [50] - The company repurchased approximately $3.3 million worth of shares during the quarter, maintaining a stock repurchase authorization of approximately $71 million [39] Q&A Session Summary Question: Stabilization of CV growth - Management noted that CV growth is expected to be relatively flat in the near term, with some fluctuations [65] Question: Client retention and churn - Client churn is primarily due to shedding non-strategic accounts, with retention rates for Forrester Decisions being approximately 12 points higher than the overall business [69][70] Question: Feedback on Izola - Early feedback on Izola has been overwhelmingly positive, with clients appreciating the ability to quickly access relevant research [86] Question: Sales headcount and strategy - The company is focused on new business development and plans to add back headcount to capture more user clients [101][102] Question: Impact of generative AI - Generative AI is expected to enhance operations and improve client interactions, with Izola being a significant step forward [80][81]