Forrester Research(FORR) - 2021 Q2 - Quarterly Report

Revenue Growth - Total revenues increased by 13% and 10% for the three and six months ended June 30, 2021, respectively, compared to the prior year periods, with 2% of the increase due to changes in foreign currency[110]. - Research revenues rose by 8% and 4% during the three and six months ended June 30, 2021, respectively, with 2% and 1% of the increase attributed to foreign currency fluctuations[111]. - Consulting revenues grew by 22% and 21% for the three and six months ended June 30, 2021, respectively, compared to the prior year periods[108]. - Events revenues increased by 33% and 36% for the three and six months ended June 30, 2021, respectively, compared to the prior year periods[108]. - Revenues from customers outside the U.S. increased by 27% and 26% during the three and six months ended June 30, 2021, respectively[110]. - Research revenues for the three months ended June 30, 2021, increased by 8% year-over-year to $81,002 thousand, while consulting revenues increased by 30% to $40,960 thousand[134]. - Total segment revenues for the six months ended June 30, 2021, reached $242,451 thousand, reflecting a 10% increase compared to the prior year[135]. - Consulting segment revenues increased by 32% during the six months ended June 30, 2021, primarily driven by strong demand for content marketing offerings[137]. - Event segment revenues increased by 36% during the six months ended June 30, 2021, mainly due to higher sponsorship revenues[139]. Client Retention - Client retention improved to 77% from 72%, while wallet retention increased to 96% from 87% year-over-year[105]. Operating Performance - Operating income margin improved to 10.2% for the three months ended June 30, 2021, compared to 9.9% in the prior year[107]. - Net income margin decreased to 6.5% for the three months ended June 30, 2021, down from 10.4% in the prior year[107]. Expenses - Cost of services and fulfillment increased by 19% for the three months and 14% for the six months ended June 30, 2021, with significant contributions from reinstated compensation and benefit costs[114][115]. - Selling and marketing expenses grew by 9% for the three months and 3% for the six months ended June 30, 2021, primarily due to increased compensation and advertising expenses[116][117]. - General and administrative expenses increased by 25% for the three months and 17% for the six months ended June 30, 2021, largely driven by higher compensation and benefit costs[118][119]. - Research segment expenses increased by 14% during the three months ended June 30, 2021, primarily due to a $3.1 million increase in compensation and benefit costs[136]. - Consulting segment expenses increased by 27% during the three months ended June 30, 2021, largely due to reinstating incentive bonus programs[138]. Tax and Interest - Income tax expense surged by $5.2 million during the six months ended June 30, 2021, primarily due to increased U.S. profitability, with an anticipated effective tax rate of approximately 31% for the full year 2021[129]. - The effective tax rate for the three months ended June 30, 2021, was 29.4%, a significant increase from 2.0% in the prior year period[129]. - Interest expense decreased by $0.2 million and $0.7 million during the three and six months ended June 30, 2021, respectively, due to lower average borrowings and interest rates[126]. Cash and Financing - Cash generated from operating activities for the six months ended June 30, 2021, was $70.1 million, a $45.1 million increase from the prior year[141]. - As of June 30, 2021, the company had cash and cash equivalents of $146.4 million, including $62.4 million held outside of the U.S.[151]. - The company entered into a $200.0 million credit agreement, with remaining principal payments totaling $103.1 million as of June 30, 2021[147]. Stock Repurchase - The company plans to repurchase common stock as market conditions warrant, with a remaining stock repurchase authorization of approximately $57.5 million[146]. Integration Costs - Integration costs decreased by $0.4 million and $3.2 million during the three and six months ended June 30, 2021, respectively, due to the completion of the integration of SiriusDecisions, Inc.[125]. Investment Gains - Gain on investments decreased by $2.4 million during the three and six months ended June 30, 2021, attributed to reduced investment gains from underlying funds[128].