Gartner Earnings Outpace Estimates in Q4, Revenues Increase Y/Y

Core Insights - Gartner, Inc. reported better-than-expected fourth-quarter 2024 results with adjusted earnings per share of $5.6, beating the Zacks Consensus Estimate by 69.3% and increasing 79.3% year-over-year [2] - Revenues reached $1.7 billion, surpassing the consensus estimate by 1.8% and improving 8.1% year-over-year [2] - The stock has gained 16.6% over the past year, outperforming the industry average of 7.8% [2] Revenue Breakdown - Research segment revenues were $1.3 billion, growing 5.4% year-over-year on a reported basis and 5.7% on a foreign-currency-neutral basis, with a gross contribution margin of 74.1% [3] - Conference revenues amounted to $251 million, increasing 17.2% year-over-year on a reported basis and 17.1% on a foreign-currency-neutral basis, with a gross contribution margin of 47.6% [4] - Consulting segment revenues were $153 million, up 19.3% year-over-year on a reported basis and 19.2% on a foreign-currency-neutral basis, with a gross contribution margin of 35.1% [5] Operating Performance - Adjusted EBITDA for the quarter was $417 million, reflecting an 8% increase year-over-year on a reported basis and 8.9% on a foreign-currency-neutral basis [6] Balance Sheet & Cash Flow - At the end of the quarter, Gartner had $1.9 billion in cash and cash equivalents, up from $1.8 billion in the previous quarter, with long-term debt remaining flat at $2.5 billion [7] - Operating cash flow totaled $335.4 million, while free cash flow utilized was $110.2 million, with capital expenditure at $8.1 million [7] 2025 Outlook - For 2025, Gartner raised its total revenue guidance to at least $6.55 billion, compared to the previous estimate of $6.23 billion, although this is lower than the Zacks Consensus Estimate of $6.73 billion [8] - The adjusted earnings per share guidance was lowered to at least $11.45 from $11.75, which is also below the Zacks Consensus Estimate of $13.21 [8] - Adjusted EBITDA guidance was reduced to at least $1.51 billion from $1.52 billion, and free cash flow guidance was lowered to at least $1.14 billion from $1.35 billion [9]