Gartner(US:IT)2025-02-13 21:34Financial Performance - Total revenues for Gartner, Inc. reached $6.3 billion in 2024, a 6% increase compared to 2023[131] - Net income increased to $1.3 billion in 2024 from $882.5 million in 2023, with diluted earnings per share rising to $16.00 from $11.08[131] - Research revenues grew to $5.1 billion in 2024, marking a 5% increase compared to 2023[132] - Conferences revenues increased to $583.2 million in 2024, a 15% rise compared to 2023[133] - Consulting revenues rose to $558.5 million in 2024, a 9% increase compared to 2023[134] - Total revenues for 2024 were $6.3 billion, an increase of $360.5 million compared to 2023, or 6% on both a reported basis and excluding foreign currency impact[146] - Net income was $1.3 billion in 2024, a 42% increase from $882.5 million in 2023, primarily due to a gain on event cancellation insurance claims and lower provision for income taxes[158] Revenue Breakdown - The cost of services and product development was $2.0 billion in 2024, reflecting a 6% increase from 2023, driven by higher personnel and conference expenses[148] - Selling, general and administrative (SG&A) expenses rose to $2.9 billion in 2024, a 7% increase from 2023, mainly due to increased personnel expenses[149] - Operating income decreased by 7% to $1.16 billion in 2024, primarily due to the prior year's gain from the sale of divested operations and increased operating expenses[153] - Research segment revenues increased by $238.6 million in 2024, or 5%, with a gross contribution margin of 74% for both years[161] - Consulting revenues increased by 9% year-over-year, with a 5% rise in labor-based consulting and a 21% increase in contract optimization[171] Cash Flow and Financial Position - Cash provided by operating activities was $1.5 billion in 2024, up from $1.2 billion in 2023[135] - As of December 31, 2024, Gartner, Inc. had $1.9 billion in cash and cash equivalents and approximately $0.7 billion in available borrowing capacity[135] - Cash provided by operating activities was $1.5 billion in 2024, up from $1.2 billion in 2023, primarily due to $300 million in insurance proceeds[180] - Cash used in financing activities was $710.1 million in 2024, including $700 million for share repurchases[182] - As of December 31, 2024, the company had $2.5 billion of principal amount of debt outstanding[184] Contract Value and Backlog - Contract value for Research was $5.3 billion at December 31, 2024, an 8% increase on a foreign currency neutral basis compared to the previous year[132] - The backlog for Consulting was $191.5 million at December 31, 2024[134] - Contract value for the Research segment increased by $382 million, or 8%, in 2024, indicating strong growth in client retention and wallet retention metrics[161] - Contract value increased to $5.3 billion at December 31, 2024, representing an 8% growth compared to December 31, 2023 on a foreign currency neutral basis[164] - Backlog increased by $28.5 million, or 17%, from December 31, 2023 to December 31, 2024[172] Tax and Insurance Claims - The effective income tax rate decreased to 9.6% in 2024 from 23.1% in 2023, attributed to net tax benefits from an intercompany transfer of intellectual property[157] - Gain on event cancellation insurance claims was $300 million in 2024, significantly higher than $3.1 million in 2023, resolving litigation from 2020 and 2021[155] Sales and Workforce - The number of quota-bearing sales associates increased by 6% to 5,102 in 2024, with Global Technology Sales associates rising by 4% and Global Business Sales by 9%[150] Foreign Currency Exposure - A significant portion of the company's revenues are derived from sales outside of the United States, with major foreign currencies including Euro, British Pound, Japanese Yen, Australian Dollar, and Canadian Dollar[193] - As of December 31, 2024, the company had $1.9 billion in cash and cash equivalents, with a substantial portion in foreign currencies[194] - A 10% change in foreign currency exchange rates could result in an approximate $78.6 million increase or decrease in reported cash and cash equivalents[194] - The company typically enters into foreign currency forward exchange contracts to mitigate transaction risk, with an immaterial net unrealized loss as of December 31, 2024[195] - The majority of the company's cash equivalents and financial instruments are with large investment grade commercial banks, limiting concentration of credit risk[196] - The company's diverse customer base and geographic dispersion contribute to limited concentration of credit risk in fees receivable[196]