Gartner(IT) - 2025 Q1 - Quarterly Results

Financial Performance - Contract value reached $5.1 billion, representing a 6.7% year-over-year growth on a foreign exchange neutral basis[1] - Revenues for Q1 2025 were $1.534 billion, an increase of 4.2% as reported and 5.7% FX neutral compared to Q1 2024[6] - Net income for the quarter was $211 million, reflecting a 0.2% increase year-over-year[6] - Adjusted EBITDA was $385 million, up 0.7% as reported and 2.9% FX neutral[6] - Operating cash flow increased significantly by 66.0% to $314 million[6] - Free cash flow rose by 73.3% to $288 million[6] - Total revenues for the three months ended March 31, 2025, were $1,534.1 million, an increase of 4.2% from $1,472.9 million in 2024[28] - Net income for Q1 2025 was $210.9 million, slightly up from $210.5 million in Q1 2024, indicating a stable performance[28] - Adjusted EPS for Q1 2025 was $2.71 based on 77.8 million diluted shares, compared to $2.67 based on 79.0 million diluted shares in Q1 2024[28] - Operating income for the three months ended March 31, 2025, was $278.0 million, compared to $273.9 million in the same period last year, showing a modest increase[28] Revenue Segments - Research segment revenues were $1.322 billion, a 4.2% increase, while consulting revenues were $140 million, up 3.7%[7] - Research revenues increased to $1,321.8 million, up from $1,268.2 million, reflecting a growth of 4.2% year-over-year[28] Cost Management - The company is managing costs effectively while investing for future growth, aiming to enhance adjusted EBITDA margin beyond initial guidance[4] - Total costs and expenses rose to $1,256.1 million in Q1 2025, up from $1,199.0 million in Q1 2024, reflecting an increase of 4.8%[28] - The provision for income taxes increased to $56.1 million in Q1 2025 from $49.0 million in Q1 2024, indicating a higher tax burden[28] - The blended effective tax rates on adjustments were approximately 25.8% for Q1 2025, compared to 25.3% for Q1 2024[26] - Interest expense, net decreased to $(13.4) million in Q1 2025 from $(19.2) million in Q1 2024, indicating improved interest management[28] - The company reported no acquisition and integration charges in Q1 2025, down from $0.5 million in Q1 2024, reflecting a focus on organic growth[28] Contract Value Growth - Global Technology Sales Contract Value was $3.9 billion, growing 5.5% year-over-year FX neutral[11] - Global Business Sales Contract Value reached $1.2 billion, marking a 10.8% year-over-year growth FX neutral[11]