Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? Gartner (IT) , which belongs to the Zacks Consulting Services industry, could be a great candidate to consider.This technology information and analysis company has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 26.28%.For the l ...

Momentum investing revolves around the idea of following a stock's recent trend in either direction. In the 'long' context, investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.Even though momentum is a popular stock char ...

Gartner (IT) has had an impressive run over the past year-to-date period, gaining 35.2% compared with its industry’s 27.1% growth.Reasons Why IT is an Attractive Pick NowSolid Rank: IT currently sports a Zacks Rank #1 (Strong Buy). Our research shows that stocks with a Zacks Rank #1 or 2 (Buy) offer attractive investment opportunities. Thus, the company appears to be a compelling investment proposition at the moment.Positive Earning Trend Revision: The Zacks Consensus Estimate for Gartner’s fourth-quarter e ...

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 1-14443 Gartner, Inc. Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller repor ...

Gartner, Inc. (NYSE:IT) Q2 2023 Results Earnings Conference Call August 1, 2023 8:00 AM ET Company Participants David Cohen - Senior Vice President-Investor Relations Gene Hall - Chief Executive Officer Craig Safian - Chief Financial Officer Conference Call Participants Jeffrey Meuler - Robert W. Baird & Co. Heather Balsky - Band of America Global Research Toni Kaplan - Morgan Stanley & Co. Seth Weber - Wells Fargo Securities Manav Patnaik - Barclays Capital Joshua Chan - UBS Securities Stephanie Moore - Je ...

PART I. FINANCIAL INFORMATION [Financial Statements (Unaudited)](index=3&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS%20(Unaudited)) Unaudited financials show total assets at **$7.36 billion**, equity at **$586.5 million**, and Q2 revenues up 9% to **$1.50 billion** [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2023 | December 31, 2022 | Change | | :--- | :--- | :--- | :--- | | **Assets** | | | | | Cash and cash equivalents | $1,172,828 | $697,999 | +68.0% | | Fees receivable, net | $1,271,792 | $1,556,786 | -18.3% | | Total Assets | $7,355,933 | $7,299,736 | +0.8% | | **Liabilities & Equity** | | | | | Total Liabilities | $6,769,427 | $7,071,938 | -4.3% | | Total Stockholders' Equity | $586,506 | $227,798 | +157.5% | [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q2 2023 vs Q2 2022 Performance (in thousands, except per share data) | Metric | Q2 2023 | Q2 2022 | Change | | :--- | :--- | :--- | :--- | | Total revenues | $1,503,185 | $1,376,521 | +9.2% | | Operating income | $283,107 | $297,122 | -4.7% | | Net income | $198,043 | $204,925 | -3.4% | | Diluted EPS | $2.48 | $2.53 | -2.0% | Six Months 2023 vs 2022 Performance (in thousands, except per share data) | Metric | H1 2023 | H1 2022 | Change | | :--- | :--- | :--- | :--- | | Total revenues | $2,912,054 | $2,639,261 | +10.3% | | Operating income | $691,064 | $514,369 | +34.4% | | Net income | $493,826 | $377,440 | +30.8% | | Diluted EPS | $6.17 | $4.60 | +34.1% | - A pre-tax gain of **$135.4 million** was recorded in the first six months of 2023 from the sale of a divested operation (TalentNeuron), significantly boosting operating and net income for the period[9](index=9&type=chunk)[31](index=31&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Six Months Ended June 30 Cash Flow Summary (in thousands) | Activity | 2023 | 2022 | Change | | :--- | :--- | :--- | :--- | | Cash provided by operating activities | $600,461 | $583,392 | +2.9% | | Cash provided by (used in) investing activities | $109,363 | $(38,385) | N/A | | Cash used in financing activities | $(228,732) | $(920,548) | -75.2% | - Investing activities were positive in H1 2023 due to **$156.1 million** in cash proceeds from the sale of the TalentNeuron business[15](index=15&type=chunk)[31](index=31&type=chunk) - Financing activities in H1 2023 included **$238.4 million** for treasury stock purchases, a significant reduction from the **$929.9 million** used for repurchases in H1 2022[15](index=15&type=chunk)[180](index=180&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) - In February 2023, the company sold its TalentNeuron business for approximately **$161.1 million**, recognizing a pre-tax gain of **$135.4 million**[31](index=31&type=chunk) - As of June 30, 2023, the company had total outstanding debt principal of **$2.48 billion**; in May 2023, the interest rate benchmark for the 2020 Credit Agreement was amended from LIBOR to SOFR[65](index=65&type=chunk)[78](index=78&type=chunk) - The company repurchased **751,513 shares** for **$238.4 million** in the first six months of 2023; as of June 30, 2023, **$827.9 million** remained available under the share repurchase authorization[82](index=82&type=chunk)[84](index=84&type=chunk) - Impairment charges of **$10.0 million** and **$18.7 million** were recorded on right-of-use assets and other long-lived assets for the three and six months ended June 30, 2023, respectively, related to office leases the company will no longer use[108](index=108&type=chunk)[109](index=109&type=chunk) [Management's Discussion and Analysis (MD&A)](index=25&type=section&id=ITEM%202.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management reports Q2 2023 revenue up 9% to **$1.5 billion**, driven by strong segment performance, and maintains strong liquidity with **$1.2 billion** cash [Consolidated Results of Operations](index=30&type=section&id=Consolidated%20Results%20of%20Operations) Q2 2023 vs Q2 2022 Consolidated Results (in thousands) | Line Item | Q2 2023 | Q2 2022 | % Change (Reported) | % Change (FX-Neutral) | | :--- | :--- | :--- | :--- | :--- | | Total revenues | $1,503,185 | $1,376,521 | 9% | 10% | | Cost of services | $487,418 | $424,535 | 15% | 15% | | SG&A | $680,168 | $604,911 | 12% | 14% | | Operating income | $283,107 | $297,122 | -5% | N/A | - The increase in Cost of Services and SG&A expenses was primarily driven by higher compensation costs from increased headcount; the number of quota-bearing sales associates increased by **14% year-over-year**[144](index=144&type=chunk)[145](index=145&type=chunk) [Segment Results](index=32&type=section&id=Segment%20Results) Q2 2023 Segment Performance vs Q2 2022 (in thousands) | Segment | Q2 2023 Revenue | Q2 2022 Revenue | % Change | Q2 2023 Gross Contribution | Q2 2022 Gross Contribution | % Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Research | $1,207,885 | $1,142,329 | +6% | $885,282 | $843,965 | +5% | | Conferences | $168,897 | $113,525 | +49% | $98,450 | $73,526 | +34% | | Consulting | $126,403 | $120,667 | +5% | $47,321 | $50,223 | -6% | - **Research:** Total contract value grew to **$4.6 billion**, up **9% year-over-year** on an **FX-neutral** basis; Global Technology Sales (GTS) CV grew **7%** and Global Business Sales (GBS) CV grew **15%**[162](index=162&type=chunk) - **Conferences:** Revenue growth was driven by the return to in-person destination conferences; the company held 17 in-person conferences in Q2 2023 compared to 6 in-person and 8 virtual conferences in Q2 2022[166](index=166&type=chunk) - **Consulting:** Revenue increased 5% (6% **FX-neutral**), while gross contribution margin decreased from **42%** to **37%** due to higher personnel costs; backlog increased **17% FX-neutral** to **$171.6 million**[167](index=167&type=chunk)[169](index=169&type=chunk)[171](index=171&type=chunk) [Liquidity and Capital Resources](index=36&type=section&id=Liquidity%20and%20Capital%20Resources) - As of June 30, 2023, the company had **$1.2 billion** in cash and cash equivalents and approximately **$1.0 billion** of available borrowing capacity under its revolving credit facility[173](index=173&type=chunk) - Cash from operations for the first six months of 2023 was **$600.5 million**, a slight increase from $583.4 million in the prior-year period[178](index=178&type=chunk) - **50%** of cash and cash equivalents were held outside the U.S. as of June 30, 2023[175](index=175&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=37&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The company faces market risks from interest rates on **$278.6 million** floating-rate debt and foreign currency fluctuations, with a **10%** adverse change potentially impacting **$67.0 million** of cash - Interest rate risk on **$278.6 million** of variable-rate debt is managed through an interest rate swap contract that effectively converts it to a fixed rate[186](index=186&type=chunk) - The company is exposed to foreign currency risk, with **50%** of its **$1.2 billion** cash held outside the U.S.; a **10%** adverse change in all relevant foreign exchange rates would impact cash by approximately **$67.0 million**[175](index=175&type=chunk)[188](index=188&type=chunk) - Transaction risk from foreign currency is partially mitigated using foreign currency forward exchange contracts[189](index=189&type=chunk) [Controls and Procedures](index=38&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management concluded disclosure controls and procedures were effective as of June 30, 2023, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of June 30, 2023[193](index=193&type=chunk) - No material changes were made to the internal control over financial reporting during the second quarter of 2023[194](index=194&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=39&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) The company is involved in ordinary course legal proceedings, but does not expect any material financial impact on its operations or position - The company states that ongoing legal proceedings are not expected to have a material financial impact[195](index=195&type=chunk) [Risk Factors](index=39&type=section&id=ITEM%201A.%20RISK%20FACTORS) No material changes to risk factors were reported from the prior Annual Report on Form 10-K for the year ended December 31, 2022 - No material changes to risk factors were reported for the quarter[196](index=196&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=39&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) The company had no unregistered equity sales, repurchased **423,833 shares** for **$132.7 million** in Q2 2023, with **$827.9 million** remaining available for future repurchases Issuer Purchases of Equity Securities (Q2 2023) | Period | Total Shares Purchased | Average Price Paid | Total Cost (approx. in millions) | | :--- | :--- | :--- | :--- | | April 2023 | 144,649 | $306.73 | $44.4 | | May 2023 | 234,758 | $311.24 | $73.0 | | June 2023 | 44,426 | $342.18 | $15.2 | | **Total Q2** | **423,833** | **$312.95** | **$132.7** | - In February 2023, the Board authorized an additional **$0.4 billion** for the share repurchase program; as of quarter-end, **$827.9 million** was available for future repurchases[198](index=198&type=chunk)[199](index=199&type=chunk) [Exhibits](index=40&type=section&id=ITEM%206.%20EXHIBITS) This section lists filed exhibits, including CEO/CFO certifications, credit agreement amendments, and the amended Long-Term Incentive Plan - Exhibits filed include an amendment to the credit agreement, the amended Long-Term Incentive Plan, and required CEO/CFO certifications[201](index=201&type=chunk)

Financial Data and Key Metrics Changes - First quarter revenue was $1.4 billion, up 12% year-over-year as reported and 14% FX neutral [103] - EBITDA for the first quarter was $379 million, up 15% year-over-year on a reported basis and up 19% FX neutral [128] - Adjusted EPS was $2.88, up 24% year-over-year [123] - Free cash flow for the quarter was $144 million, representing 18% of revenue and 65% of EBITDA [110] Business Line Data and Key Metrics Changes - Research revenue grew 7% year-over-year as reported and 9% FX-neutral [105] - Consulting revenues increased by 10% year-over-year to $127 million, with a 14% increase on an FX-neutral basis [127] - Contract value (CV) was $4.5 billion at the end of the first quarter, up 10% versus the prior year [106] - Global Technology Sales (GTS) contract value grew 9% year-over-year, while Global Business Sales (GBS) contract value grew 16% year-over-year [119] Market Data and Key Metrics Changes - CV from enterprise function leaders across GTS and GBS grew at double-digit rates, while CV from tech vendors grew mid-single digits [106] - GBS practices, excluding sales and marketing, grew at double-digit rates, with supply chain and HR growing faster than 20% [107] - Retention for GBS was 110% for the quarter, compared to 115% in the prior year [107] Company Strategy and Development Direction - The company is focused on delivering value to clients through research and consulting, addressing mission-critical priorities [78][99] - The strategy includes a capital allocation plan emphasizing share repurchases and strategic tuck-in M&A [15][113] - The company expects to continue its sustained record of success, with modest margin increases over time [121] Management's Comments on Operating Environment and Future Outlook - Management noted that the tech sector is adjusting to post-pandemic demand and that the banking industry is facing challenges due to rising interest rates [118] - The company has taken a prudent approach to planning for 2023, expecting full-year EBITDA of at least $1.33 billion [17] - There is a higher-than-normal level of uncertainty in the world, but the company remains well-positioned to drive growth [101] Other Important Information - The company repurchased more than $100 million of stock during the first quarter, with about $950 million remaining on its share repurchase authorization [46] - The overall multiyear contracts as a percent of the research business is around 70%, providing resilience [73] - The company expects free cash flow of at least $920 million for 2023 [132] Q&A Session Summary Question: What are the challenges in the tech vendor channel? - Management acknowledged that the tech vendor channel is facing challenges, impacting new business and retention metrics [54][126] Question: How is the company leveraging generative AI? - Management highlighted that generative AI is improving internal efficiencies and client interactions, enhancing overall productivity [21][51] Question: What is the outlook for contract value growth? - Management indicated that contract value growth is expected to remain strong, despite tough comparisons in the upcoming quarters [54][114] Question: How is the company managing expenses? - Management stated that they are managing expenses prudently while supporting future growth, with a focus on maintaining strong margins [112][148] Question: What is the company's approach to pricing and contract renewals? - Management confirmed that they are holding strong on pricing and not offering discounts, maintaining their pricing structure [39][153]

Free Cash Flow deployment | --- | --- | --- | --- | --- | |------------------------------|----------------|---------------------------|---------------------|-----------------------| | Depreciation & Amortization | Interest, net | Stock-Based Compensation | Effective Tax Rate | Captial Expenditures | | ~ 104 | ~ 115 GAAP & | ~ 132 | ~ 23% GAAP & | ~ 110 | | ~ 91 | ~ 111 Non-GAAP | | ~ 22% Adj. | | | --- | --- | --- | --- | --- | --- | --- | |------------------------------------------------------------------- ...

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, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. Commission File Number 1-14443 Gartner, Inc. (Exact name of Registrant as specified in its charter) Delaware 04-3099750 (State or other jurisdiction of (I.R.S. Employer incorporation or o ...

Part I [Item 1. Business](index=4&type=section&id=ITEM%201.%20BUSINESS) Gartner provides objective research and advisory services to over 15,000 enterprises globally through its Research, Conferences, and Consulting segments - Gartner delivers actionable, objective insight to over **15,000 enterprises** in approximately **90 countries and territories**[9](index=9&type=chunk) - The company operates through three business segments: Research, Conferences, and Consulting[10](index=10&type=chunk) - The Research segment provides subscription-based services with access to published content and a network of approximately **2,500 research experts**, who had over **460,000 direct client interactions** in 2022[17](index=17&type=chunk) - The Conferences segment held **25 in-person** and **16 virtual conferences** in 2022, with over **60,000 attendees**[20](index=20&type=chunk) - As of December 31, 2022, Gartner had approximately **19,500 employees** globally, with about **47% identifying as female** worldwide and **24% of U.S. employees identifying as racially or ethnically diverse**[23](index=23&type=chunk)[27](index=27&type=chunk) - Gartner has committed to achieving **net-zero greenhouse gas emissions by 2035** in accordance with the Science Based Target initiative's (SBTi) Net-Zero Standard[34](index=34&type=chunk) [Item 1A. Risk Factors](index=10&type=section&id=ITEM%201A.%20RISK%20FACTORS) The company faces strategic, operational, macroeconomic, industry, legal, and regulatory risks, including subscription dependence, external conference factors, talent retention, and cybersecurity - Strategic and Operational Risks: The company's success depends on maintaining high-quality products, developing new offerings, and retaining clients, with the Research business, constituting about **76% of 2022 revenues**, relying heavily on subscription renewals[40](index=40&type=chunk)[41](index=41&type=chunk)[45](index=45&type=chunk) - Conferences Risk: The Conferences business is subject to external factors like public health crises, which led to cancellations and a shift to virtual events, with future cancellation insurance for communicable diseases excluded[48](index=48&type=chunk)[52](index=52&type=chunk) - Human Capital Risk: The company faces intense competition for qualified professionals and risks related to labor shortages and wage inflation, with the hybrid work environment potentially impacting company culture and productivity[56](index=56&type=chunk)[58](index=58&type=chunk) - Cybersecurity and Privacy Risk: Gartner is exposed to cybersecurity threats and must comply with evolving data privacy laws like GDPR and CCPA, where a breach could lead to reputational harm, customer loss, and financial penalties[61](index=61&type=chunk)[62](index=62&type=chunk)[63](index=63&type=chunk) - Macroeconomic and Industry Risks: Global economic conditions, including inflation, rising interest rates, and potential recession, could negatively affect demand for Gartner's services, and the company faces intense competition from various information providers[81](index=81&type=chunk)[83](index=83&type=chunk) - Legal and Regulatory Risks: The company must comply with complex U.S. and foreign laws, including anti-bribery regulations, and is subject to risks from litigation and changes in global tax laws, such as the OECD's Pillar Two proposal for a global minimum tax[89](index=89&type=chunk)[91](index=91&type=chunk)[92](index=92&type=chunk) [Item 2. Properties](index=19&type=section&id=ITEM%202.%20PROPERTIES) Gartner leases approximately 85 global office properties, including its Stamford headquarters, and believes its current real estate footprint is sufficient due to a hybrid work model - The Company does not own any real property and leases approximately **20 domestic** and **65 international office properties** for its operations[98](index=98&type=chunk) - The corporate office is in Stamford, Connecticut, with the lease expiring in 2027, and other important locations include Arlington, VA, Fort Myers, FL, and international offices in the UK, India, and Spain[98](index=98&type=chunk)[99](index=99&type=chunk) - In early 2022, Gartner adopted a hybrid virtual-first work environment, leading management to believe the current real estate footprint is adequate for future needs[100](index=100&type=chunk) [Item 3. Legal Proceedings](index=19&type=section&id=ITEM%203.%20LEGAL%20PROCEEDINGS) Gartner is involved in ordinary course legal proceedings, with management believing potential liabilities will not materially affect financial results - The company is involved in legal proceedings arising in the ordinary course of business[101](index=101&type=chunk) - Management believes that the potential liability from these proceedings will not have a material effect on the company's financial position, cash flows, or results of operations[101](index=101&type=chunk) Part II [Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=21&type=section&id=ITEM%205.%20MARKET%20FOR%20REGISTRANT%27S%20COMMON%20EQUITY%2C%20RELATED%20STOCKHOLDER%20MATTERS%20AND%20ISSUER%20PURCHASES%20OF%20EQUITY%20SECURITIES) Gartner's common stock trades on the NYSE under 'IT', with the company actively repurchasing shares, including **$1.0 billion** authorized in 2022 - Gartner's common stock is listed on the NYSE under the symbol 'IT', with **969 holders of record** as of February 3, 2023[104](index=104&type=chunk) - The Board of Directors authorized incremental share repurchases of up to **$1.0 billion** in 2022 and an additional **$400 million** on February 2, 2023[106](index=106&type=chunk) Share Repurchases in Q4 2022 | Period | Total Number of Shares Purchased () | Average Price Paid Per Share ($) | | :--- | :--- | :--- | | October 1, 2022 to October 31, 2022 | 24,587 | $ 279.60 | | November 1, 2022 to November 30, 2022 | 9,392 | 320.65 | | December 1, 2022 to December 31, 2022 | 4,189 | 344.30 | | **Total for the quarter** | **38,168** | **$ 296.80** | [Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=21&type=section&id=ITEM%207.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) In 2022, Gartner's total revenues grew **16%** to **$5.5 billion**, driven by strong performance across all segments, supported by robust liquidity and share repurchases 2022 Financial Highlights vs. 2021 | Metric | 2022 | 2021 | % Change (Reported) | | :--- | :--- | :--- | :--- | | Total Revenues | $5.5 billion | $4.7 billion | 16% | | Net Income | $807.8 million | $793.6 million | 2% | | Diluted EPS | $9.96 | $9.21 | 8% | | Cash from Operations | $1.1 billion | $1.3 billion | (16)% | - In November 2022, Gartner entered an agreement to sell its TalentNeuron business, with the sale completed on February 2, 2023, for approximately **$164.0 million**[120](index=120&type=chunk)[121](index=121&type=chunk) - The company repurchased **3.8 million shares** of common stock for an aggregate price of approximately **$1.0 billion** during 2022[128](index=128&type=chunk) [Results of Operations](index=27&type=section&id=RESULTS%20OF%20OPERATIONS) Total revenues increased **16%** to **$5.5 billion** in 2022, driving a **20%** rise in operating income to **$1.1 billion**, despite higher costs Consolidated Results of Operations (in thousands) | | Year Ended Dec 31, 2022 | Year Ended Dec 31, 2021 | % Change | | :--- | :--- | :--- | :--- | | Total revenues | $ 5,475,846 | $ 4,733,962 | 16 % | | Operating income | $ 1,100,106 | $ 915,751 | 20 % | | Net income | $ 807,799 | $ 793,560 | 2 % | - Cost of services and product development increased **17%** to **$1.7 billion**, primarily due to higher compensation costs from increased headcount and the return to in-person conferences[142](index=142&type=chunk) - Selling, general and administrative (SG&A) expense increased **15%** to **$2.5 billion**, mainly due to higher personnel and commission costs, partially offset by reduced facilities expense from real estate footprint reduction[143](index=143&type=chunk) - The 2021 net income included a **$152.3 million** gain on event cancellation insurance claims, which was not present in 2022[149](index=149&type=chunk) [Segment Results](index=28&type=section&id=SEGMENT%20RESULTS) All three segments showed strong revenue growth in 2022, with Research up **12%**, Conferences surging **82%** due to in-person events, and Consulting increasing **15%** Segment Revenue Performance 2022 vs 2021 (in thousands) | Segment | 2022 Revenue | 2021 Revenue | % Increase | | :--- | :--- | :--- | :--- | | Research | $ 4,604,791 | $ 4,101,392 | 12 % | | Conferences | $ 389,273 | $ 214,449 | 82 % | | Consulting | $ 481,782 | $ 418,121 | 15 % | | **Total** | **$ 5,475,846** | **$ 4,733,962** | **16 %** | [Research](index=29&type=section&id=Research) The Research segment's revenue grew **12%** to **$4.6 billion**, maintaining a **74%** gross margin, driven by strong contract value growth and high client retention Research Segment Financials (in thousands) | Financial Measurement | 2022 | 2021 | % Change | | :--- | :--- | :--- | :--- | | Revenues | $ 4,604,791 | $ 4,101,392 | 12 % | | Gross contribution | $ 3,414,574 | $ 3,036,925 | 12 % | | Gross contribution margin | 74 % | 74 % | 0 pts | Research Segment Business Metrics (Contract Value in thousands) | Business Measurement | 2022 | 2021 | Change | | :--- | :--- | :--- | :--- | | **Global Technology Sales (GTS)** | | | | | Contract value (FX neutral) | $ 3,632,200 | $ 3,300,600 | +10% | | Client retention | 86 % | 86 % | 0 pts | | Wallet retention | 105 % | 106 % | (1) pt | | **Global Business Sales (GBS)** | | | | | Contract value (FX neutral) | $ 1,028,200 | $ 864,600 | +19% | | Client retention | 89 % | 87 % | +2 pts | | Wallet retention | 112 % | 115 % | (3) pts | [Conferences](index=30&type=section&id=Conferences) The Conferences segment's revenue surged **82%** to **$389.3 million** due to the return of in-person events, though gross margin decreased to **54%** Conferences Segment Financials (in thousands) | Financial Measurement | 2022 | 2021 | % Change | | :--- | :--- | :--- | :--- | | Revenues | $ 389,273 | $ 214,449 | 82 % | | Gross contribution | $ 210,726 | $ 133,748 | 58 % | | Gross contribution margin | 54 % | 62 % | (8) pts | Conferences Segment Business Metrics | Business Measurement | 2022 | 2021 | % Change | | :--- | :--- | :--- | :--- | | Number of destination conferences | 41 | 39 | 5 % | | Number of destination conferences attendees | 60,104 | 57,145 | 5 % | - The increase in revenue was primarily due to the return to in-person destination conferences in 2022, with the company holding **25 in-person** and **16 virtual conferences** in 2022, compared to **39 all-virtual conferences** in 2021[163](index=163&type=chunk) [Consulting](index=30&type=section&id=Consulting) The Consulting segment's revenue grew **15%** to **$481.8 million**, with improved gross margin and strong backlog growth, driven by labor-based and contract optimization services Consulting Segment Financials (in thousands) | Financial Measurement | 2022 | 2021 | % Change | | :--- | :--- | :--- | :--- | | Revenues | $ 481,782 | $ 418,121 | 15 % | | Gross contribution | $ 189,834 | $ 158,843 | 20 % | | Gross contribution margin | 39 % | 38 % | +1 pt | Consulting Segment Business Metrics (Backlog in thousands) | Business Measurement | 2022 | 2021 | Change | | :--- | :--- | :--- | :--- | | Backlog (FX neutral) | $ 139,700 | $ 113,000 | +24% | | Average billable headcount | 827 | 749 | +10% | | Consultant utilization | 70 % | 68 % | +2 pts | - Revenue growth was driven by a **13% increase** in labor-based consulting and a **25% increase** in contract optimization[166](index=166&type=chunk) [Liquidity and Capital Resources](index=31&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) Gartner maintained strong liquidity with **$698.0 million** cash and **$1.0 billion** credit availability, using **$1.0 billion** for share repurchases, with total debt at **$2.5 billion** Summary of Cash Flows (in thousands) | | 2022 | 2021 | | :--- | :--- | :--- | | Cash provided by operating activities | $ 1,101,422 | $ 1,312,470 | | Cash used in investing activities | $ (117,558) | $ (80,467) | | Cash used in financing activities | $ (1,027,442) | $ (1,157,609) | - As of December 31, 2022, the company had **$698.0 million** in cash and cash equivalents and approximately **$1.0 billion** of available borrowing capacity on its revolving credit facility[168](index=168&type=chunk) - The decrease in operating cash flow from 2021 was primarily due to **$166.9 million** of insurance proceeds received in 2021 related to 2020 event cancellation claims[173](index=173&type=chunk) - Cash used in financing activities in 2022 was primarily for **$1.0 billion** in share repurchases[175](index=175&type=chunk) Future Contractual Cash Commitments (in thousands) | Commitment Description | Total | | :--- | :--- | | Debt – principal, interest, and commitment fees | $ 3,136,934 | | Operating leases | $ 914,459 | | Deferred compensation arrangements | $ 96,641 | | Other | $ 266,240 | | **Totals** | **$ 4,414,274** | [Item 7A. Quantitative and Qualitative Disclosures About Market Risk](index=33&type=section&id=ITEM%207A.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) Gartner manages market risks from interest rates, foreign currency, and credit through swaps, forward contracts, and a diverse customer base - Interest Rate Risk: As of Dec 31, 2022, approximately **$282.0 million** of the company's debt was variable-rate, with this risk mitigated through interest rate swap contracts that effectively convert floating rates to fixed rates[183](index=183&type=chunk)[184](index=184&type=chunk) - Foreign Currency Risk: A significant portion of revenue is derived from outside the U.S., where a hypothetical **10% adverse change** in foreign exchange rates against the U.S. dollar would have decreased reported cash and cash equivalents by approximately **$42.9 million** at year-end 2022[185](index=185&type=chunk)[186](index=186&type=chunk) - Credit Risk: The company has limited concentration of credit risk due to a diverse customer base and the use of large, investment-grade commercial banks for its cash, investments, and derivative contracts[188](index=188&type=chunk) [Item 8. Financial Statements and Supplementary Data](index=33&type=section&id=ITEM%208.%20FINANCIAL%20STATEMENTS%20AND%20SUPPLEMENTARY%20DATA) This section presents Gartner's audited consolidated financial statements for 2020-2022, including balance sheets, income statements, and cash flow statements, along with KPMG's report Consolidated Balance Sheet Data (in thousands) | | Dec 31, 2022 | Dec 31, 2021 | | :--- | :--- | :--- | | **Assets** | | | | Total current assets | $ 2,786,107 | $ 2,620,080 | | Total Assets | $ 7,299,736 | $ 7,416,324 | | **Liabilities and Stockholders' Equity** | | | | Total current liabilities | $ 3,597,600 | $ 3,378,780 | | Total Liabilities | $ 7,071,938 | $ 7,045,266 | | Total Stockholders' Equity | $ 227,798 | $ 371,058 | | Total Liabilities and Stockholders' Equity | $ 7,299,736 | $ 7,416,324 | Consolidated Statement of Operations Data (in thousands) | | 2022 | 2021 | 2020 | | :--- | :--- | :--- | :--- | | Total revenues | $ 5,475,846 | $ 4,733,962 | $ 4,099,403 | | Operating income | $ 1,100,106 | $ 915,751 | $ 490,150 | | Net income | $ 807,799 | $ 793,560 | $ 266,745 | | Diluted EPS | $ 9.96 | $ 9.21 | $ 2.96 | Consolidated Statement of Cash Flows Data (in thousands) | | 2022 | 2021 | 2020 | | :--- | :--- | :--- | :--- | | Cash provided by operating activities | $ 1,101,422 | $ 1,312,470 | $ 903,278 | | Cash used in investing activities | $ (117,558) | $ (80,467) | $ (83,888) | | Cash used in financing activities | $ (1,027,442) | $ (1,157,609) | $ (416,224) | [Item 9A. Controls and Procedures](index=33&type=section&id=ITEM%209A.%20CONTROLS%20AND%20PROCEDURES) Management and independent auditors concluded Gartner's disclosure controls and internal control over financial reporting were effective as of December 31, 2022 - Management concluded that as of December 31, 2022, the company's disclosure controls and procedures were effective[193](index=193&type=chunk) - Based on an assessment using the COSO framework, management concluded that Gartner's internal control over financial reporting was effective as of December 31, 2022[196](index=196&type=chunk) - KPMG LLP, the independent auditor, provided an unqualified opinion on the effectiveness of the company's internal control over financial reporting as of December 31, 2022[196](index=196&type=chunk)[213](index=213&type=chunk) - There were no changes in internal control over financial reporting during the quarter ended December 31, 2022, that materially affected, or are reasonably likely to materially affect, the company's internal control[197](index=197&type=chunk) Part III [Item 10. Directors, Executive Officers and Corporate Governance](index=36&type=section&id=ITEM%2010.%20DIRECTORS%2C%20EXECUTIVE%20OFFICERS%20AND%20CORPORATE%20GOVERNANCE) Information on directors, executive officers, and corporate governance is incorporated by reference from the 2023 Proxy Statement - Required information for this item is incorporated by reference from the Company's 2023 Proxy Statement, specifically under the captions 'The Board of Directors,' 'Proposal One: Election of Directors,' 'Executive Officers,' and 'Corporate Governance'[200](index=200&type=chunk) [Item 11. Executive Compensation](index=36&type=section&id=ITEM%2011.%20EXECUTIVE%20COMPENSATION) Executive and director compensation details are incorporated by reference from the 2023 Proxy Statement - Required information for this item is incorporated by reference from the Company's 2023 Proxy Statement, specifically under captions such as 'Compensation Discussion & Analysis' and 'Compensation Tables and Narrative Disclosures'[201](index=201&type=chunk) [Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=36&type=section&id=ITEM%2012.%20SECURITY%20OWNERSHIP%20OF%20CERTAIN%20BENEFICIAL%20OWNERS%20AND%20MANAGEMENT%20AND%20RELATED%20STOCKHOLDER%20MATTERS) Security ownership and equity compensation plan information is incorporated by reference from the 2023 Proxy Statement - Required information for this item is incorporated by reference from the Company's 2023 Proxy Statement, under the captions 'Equity Compensation Plan Information' and 'Security Ownership of Certain Beneficial Owners and Management'[202](index=202&type=chunk) [Item 13. Certain Relationships and Related Transactions and Director Independence](index=36&type=section&id=ITEM%2013.%20CERTAIN%20RELATIONSHIPS%20AND%20RELATED%20TRANSACTIONS%20AND%20DIRECTOR%20INDEPENDENCE) Related person transactions and director independence information is incorporated by reference from the 2023 Proxy Statement - Required information for this item is incorporated by reference from the Company's 2023 Proxy Statement, under the captions 'Transactions With Related Persons' and 'Corporate Governance — Director Independence'[203](index=203&type=chunk) [Item 14. Principal Accountant Fees and Services](index=36&type=section&id=ITEM%2014.%20PRINCIPAL%20ACCOUNTANT%20FEES%20AND%20SERVICES) Principal accountant fees and services information is incorporated by reference from the 2023 Proxy Statement - Required information for this item is incorporated by reference from the Company's 2023 Proxy Statement, under the caption 'Proposal Five: Ratification of Appointment of Independent Registered Public Accounting Firm'[204](index=204&type=chunk) Part IV [Item 15. Exhibits and Financial Statement Schedules](index=37&type=section&id=ITEM%2015.%20EXHIBITS%20AND%20FINANCIAL%20STATEMENT%20SCHEDULES) This section lists all financial statements, schedules, and exhibits, including auditor reports, corporate documents, and compensation plans, filed with the Form 10-K - This section includes the financial statements and the reports of the independent registered public accounting firm, KPMG LLP[205](index=205&type=chunk) - The exhibit list includes key agreements such as the Amended and Restated Credit Agreement dated September 28, 2020, and indentures for Senior Notes due in 2028, 2029, and 2030[206](index=206&type=chunk) - Various management compensation plans are filed as exhibits, including the 2011 Employee Stock Purchase Plan, the Long-Term Incentive Plan, and forms of stock appreciation right and performance stock unit agreements for executive officers[206](index=206&type=chunk) - Certifications by the CEO and CFO under Sections 302 and 906 of the Sarbanes-Oxley Act of 2002 are filed with the document[207](index=207&type=chunk)