Gartner(US:IT)2024-04-30 10:05Financial Performance - Total revenues for Q1 2024 were $1.5 billion, an increase of 5% compared to Q1 2023[147] - Net income for Q1 2024 was $210.5 million, a decrease of 29% from $295.8 million in Q1 2023[148] - Operating income decreased by 33% to $273.9 million in Q1 2024 from $408.0 million in Q1 2023[153] - SG&A expense was $689.8 million for the three months ended March 31, 2024, an increase of $32.7 million or 5% compared to the same period in 2023[155] - Operating income decreased to $273.9 million for the three months ended March 31, 2024, down from $408.0 million in the same period in 2023[158] - Net income for the three months ended March 31, 2024 was $210.5 million, a decrease from $295.8 million in the same period in 2023[162] Revenue Breakdown - Research revenue increased by 4%, Conferences revenue increased by 8%, and Consulting revenue increased by 6% year-over-year[147] - Research revenues increased by $51.0 million or 4% during the three months ended March 31, 2024 compared to the same period in 2023[168] - Consulting revenues increased by 6% to $134.7 million for the three months ended March 31, 2024 compared to the same period in 2023[178] - Global Technology Sales contract value increased by 5% to $3.8 billion as of March 31, 2024 compared to the same date in 2023[169] - Global Business Sales contract value increased by 12% to $1.1 billion as of March 31, 2024 compared to the same date in 2023[169] Cash and Debt Management - As of March 31, 2024, the company had $1.2 billion in cash and cash equivalents and approximately $0.7 billion of available borrowing capacity[148] - The company entered into a $1.0 billion senior unsecured revolving credit facility on March 26, 2024[141] - The company borrowed $274.4 million under the new credit agreement, primarily to repay previous debt and for working capital needs[142] - Cash provided by operating activities increased to $188.8 million for the three months ended March 31, 2024, compared to $164.7 million in the same period of 2023, reflecting a year-over-year increase of approximately 14.5%[186] - Cash used in financing activities rose to $219.7 million in Q1 2024 from $101.3 million in Q1 2023, with $225.1 million allocated for share repurchases in 2024 compared to $106.9 million in 2023[188] - As of March 31, 2024, the company had $2.5 billion in total debt principal outstanding[189] Employee and Operational Metrics - Gartner had approximately 20,290 employees globally as of March 31, 2024, reflecting a 2.3% increase from the previous year[139] - Backlog increased by $27.0 million or 17% from March 31, 2023 to March 31, 2024[179] Tax and Interest Rate Exposure - The effective income tax rate decreased to 18.9% for the three months ended March 31, 2024, down from 22.4% in the same period in 2023[161] - Approximately $274.4 million of the total debt was based on a floating interest rate, exposing the company to potential interest rate increases, although this risk is mitigated by interest rate swap contracts[194] Currency and Risk Management - The company had $1.2 billion in cash and cash equivalents as of March 31, 2024, with a significant portion in foreign currencies, which could lead to a potential cash fluctuation of approximately $66.4 million with a 10% change in exchange rates[196] - The company typically enters into foreign currency forward exchange contracts to mitigate transaction risks, with an immaterial net unrealized loss reported as of March 31, 2024[197] - The majority of the company's cash equivalents and financial instruments are with large investment-grade commercial banks, reducing concentration of credit risk[198] - The company has not entered into any material off-balance sheet arrangements from January 1, 2024, through March 31, 2024[191]