Forrester Research(US:FORR)2025-03-07 13:40Revenue Performance - Total revenues decreased by 10% from $480.8 million in 2023 to $432.5 million in 2024[106]. - Research revenues declined by 5% from $334.4 million in 2023 to $316.7 million in 2024, primarily due to a decrease in contract value[106][107]. - Consulting revenues fell by 18% from $118.2 million in 2023 to $97.3 million in 2024, attributed to lower client bookings[106][107]. - Events revenues decreased significantly by 34% from $28.2 million in 2023 to $18.5 million in 2024, due to declines in sponsorship and ticket sales[106][107]. - Research segment revenues for 2024 were $316,739, a decrease of 7% compared to 2023[129]. - Consulting segment revenues decreased by 15% in 2024, totaling $97,254, primarily due to lower client bookings[130]. - Event segment revenues saw a significant decline of 34% in 2024, amounting to $18,477, attributed to decreased sponsorship and ticket sales[132]. - Total consolidated revenues for 2024 were $432,470, reflecting a 10% year-over-year decline[129]. Client Metrics - The number of clients decreased by 14%, from 2,257 in 2023 to 1,942 in 2024, primarily due to macroeconomic conditions[91]. - Client retention remained flat at 73% year-over-year, while wallet retention improved by 2 percentage points to 89%[91]. Cost Management - Cost of services and fulfillment reduced by 11% from $204.5 million in 2023 to $182.5 million in 2024, with a decrease in headcount contributing to lower compensation costs[109]. - Selling and marketing expenses decreased by 5% from $167.4 million in 2023 to $159.6 million in 2024, primarily due to reduced headcount and commissions[110]. - General and administrative expenses fell by 14% from $68.5 million in 2023 to $58.8 million in 2024, driven by lower legal and compensation costs[111]. Income and Taxation - Net income loss was reported at (1.3%) in 2024 compared to a net income of 0.6% in 2023[105]. - Income tax expense increased by 159% from $3.2 million in 2023 to $8.4 million in 2024, with an effective tax rate rising from 51% to 318%[124]. Asset and Cash Management - The company recorded $3.6 million of right-of-use asset impairments during 2024[102]. - The company maintained a valuation allowance of $1.1 million for deferred tax assets as of December 31, 2024[103]. - Cash used in operating activities was $3.9 million in 2024, down from $21.7 million generated in 2023, primarily due to increased working capital needs[135]. - The company generated $5.0 million from investing activities in 2024, mainly from the sale of the FeedbackNow product line[136]. - As of December 31, 2024, the company had cash, cash equivalents, and marketable investments totaling $104.7 million[143]. - The company has a credit facility of up to $150 million, with $35 million outstanding as of December 31, 2024[138]. Foreign Currency Exposure - Foreign currency exchange losses amounted to $0.8 million in 2024, indicating exposure to currency fluctuations[149]. Contract and Revenue Recognition - Research revenues as a percentage of total revenues increased from approximately 70% in 2023 to approximately 73% in 2024[88]. - Contract value decreased by 5% from $323.6 million in 2023 to $307.6 million in 2024[91]. - Revenue from consulting projects is recognized as services are provided, based on fixed-fee agreements[87]. - Subscription products are recognized as revenue over the term of the contract, with deferred revenue recorded for billings in excess of revenue recognized[86]. - The company evaluates its accounting estimates and judgments regularly, particularly regarding revenue recognition and goodwill[92]. - Approximately 80% of the overall contract value was in the Forrester Decisions product platform as of December 31, 2024, compared to 62% in 2023[91]. Divestiture - Loss from the sale of divested operation amounted to $1.8 million due to the sale of the FeedbackNow product line in August 2024[120].