PART I FINANCIAL INFORMATION [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) Forrester Research reported a significant net loss in Q1 2025, primarily due to a revenue decline and a substantial goodwill impairment charge, despite improved operating cash flow [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets decreased to **$439.8 million** due to a goodwill reduction, while total liabilities increased and stockholders' equity significantly declined | Financial Item | March 31, 2025 (in thousands) | December 31, 2024 (in thousands) | | :--- | :--- | :--- | | **Total Current Assets** | $218,499 | $201,364 | | Goodwill | $145,267 | $227,959 | | **Total Assets** | **$439,806** | **$503,862** | | **Total Current Liabilities** | $223,687 | $203,971 | | Long-term debt | $35,000 | $35,000 | | **Total Liabilities** | **$292,372** | **$274,325** | | Retained Earnings | $84,662 | $171,934 | | **Total Stockholders' Equity** | **$147,434** | **$229,537** | [Consolidated Statements of Operations](index=4&type=section&id=Consolidated%20Statements%20of%20Operations) Total revenues decreased by **10.2%** in Q1 2025, with a significant goodwill impairment charge leading to a substantial operating and net loss compared to the prior year | Metric | Three Months Ended March 31, 2025 (in thousands) | Three Months Ended March 31, 2024 (in thousands) | | :--- | :--- | :--- | | Total Revenues | $89,876 | $100,077 | | Goodwill Impairment | $83,895 | $0 | | Loss from Operations | ($87,591) | ($9,292) | | Net Loss | ($87,272) | ($6,673) | | Diluted Loss Per Share | ($4.62) | ($0.35) | [Consolidated Statements of Cash Flows](index=6&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities significantly improved to **$26.7 million** in Q1 2025, leading to a **$19.6 million** increase in cash and equivalents during the quarter | Cash Flow Activity | Three Months Ended March 31, 2025 (in thousands) | Three Months Ended March 31, 2024 (in thousands) | | :--- | :--- | :--- | | Net cash provided by operating activities | $26,723 | $611 | | Net cash used in investing activities | ($8,472) | ($7,236) | | Net cash provided by (used in) financing activities | $235 | ($4,273) | | **Net change in cash, cash equivalents and restricted cash** | **$19,572** | **($11,550)** | [Notes to Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Key notes detail the **$83.9 million** goodwill impairment, a **6%** workforce reduction, and revenue declines across Research and Consulting segments - A triggering event, including a substantial and sustained decline in the company's stock price, led to a quantitative impairment test as of March 31, 2025, resulting in a goodwill impairment charge of **$83.9 million** for the Research reporting unit[34](index=34&type=chunk) - In January 2025, the company implemented a workforce reduction of approximately **6%**, recording **$1.5 million** in severance and related costs during the first quarter, following a **3%** workforce reduction in February 2024[81](index=81&type=chunk)[82](index=82&type=chunk) - On April 11, 2025, the company amended its headquarters lease in Cambridge, MA, extending the term for floors 4-6 through June 2039 while terminating the lease for floors 1-3 by May 2026[95](index=95&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the **10%** revenue decline to decreased Contract Value and divestiture, with a **$83.9 million** goodwill impairment driving net loss, despite improved operating cash flow and strong liquidity [Key Metrics](index=25&type=section&id=Key%20Metrics) Key performance metrics as of March 31, 2025, show a **7%** decrease in Contract Value and a **14%** drop in client numbers, with mixed retention rates | Metric | As of March 31, 2025 | As of March 31, 2024 | % Change | | :--- | :--- | :--- | :--- | | Contract value | $290.9 million | $312.8 million | (7%) | | Client retention | 73% | 72% | +1 pt | | Wallet retention | 86% | 87% | (1) pt | | Number of clients | 1,822 | 2,122 | (14%) | [Results of Operations](index=27&type=section&id=Results%20of%20Operations) Total revenues declined **10%** in Q1 2025, primarily due to lower CV and divestiture, with an **$83.9 million** goodwill impairment driving a significant operating loss | Revenue Type | Q1 2025 (in millions) | Q1 2024 (in millions) | % Change | | :--- | :--- | :--- | :--- | | Research | $68.4 | $76.6 | (11%) | | Consulting | $21.4 | $23.1 | (7%) | | Events | $0.0 | $0.4 | (93%) | | **Total** | **$89.9** | **$100.1** | **(10%)** | - A goodwill impairment charge of **$83.9 million** was recorded in Q1 2025, which is not deductible for tax purposes, and was the primary reason for the significant increase in net loss[113](index=113&type=chunk)[114](index=114&type=chunk) - The effective tax rate decreased to **1%** in Q1 2025 from **24%** in Q1 2024, primarily due to the non-deductible nature of the goodwill impairment charge[123](index=123&type=chunk) [Segment Results](index=32&type=section&id=Segment%20Results) Both Research and Consulting segments experienced revenue declines of **10%** and **11%** respectively, while expenses decreased due to reduced headcount | Segment | Q1 2025 Revenue (in thousands) | Q1 2024 Revenue (in thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Research | $73,472 | $81,224 | (10%) | | Consulting | $16,378 | $18,498 | (11%) | | Events | $26 | $355 | (93%) | | Segment | Q1 2025 Operating Income (in thousands) | Q1 2024 Operating Income (in thousands) | | :--- | :--- | :--- | | Research | $47,336 | $49,280 | | Consulting | $7,479 | $7,612 | | Events | ($738) | ($423) | [Liquidity and Capital Resources](index=34&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with **$134.3 million** in cash and investments, significantly improved operating cash flow, and compliance with credit facility covenants - The **$26.1 million** increase in cash from operations was primarily due to a **$20.9 million** decrease in cash used for accrued expenses, resulting from lower incentive compensation payments and the payment of a legal settlement in the prior year[133](index=133&type=chunk) - As of March 31, 2025, the company had **$35.0 million** outstanding under its credit facility and was in full compliance with all financial covenants[136](index=136&type=chunk)[137](index=137&type=chunk) - The company holds **$134.3 million** in cash, cash equivalents, and marketable investments, of which **$83.9 million** is held outside the U.S. and is intended to be permanently reinvested abroad[139](index=139&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=28&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes were reported regarding the company's assessment of market risk since its 2024 year-end report - There have been no material changes in the company's assessment of its sensitivity to market risk since its 2024 year-end report[143](index=143&type=chunk) [Item 4. Controls and Procedures](index=28&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls and procedures were deemed effective as of March 31, 2025, with no material changes to internal control over financial reporting during the quarter - Management concluded that the company's disclosure controls and procedures were effective as of March 31, 2025[144](index=144&type=chunk) - No changes occurred during the quarter that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[145](index=145&type=chunk) PART II OTHER INFORMATION [Item 1. Legal Proceedings](index=29&type=section&id=Item%201.%20Legal%20Proceedings) The company is subject to ordinary course legal proceedings and accrues for probable and estimable liabilities as detailed in the financial statements - The company may be subject to legal proceedings in the ordinary course of business and accrues for losses when they are probable and estimable[94](index=94&type=chunk)[148](index=148&type=chunk) [Item 1A. Risk Factors](index=29&type=section&id=Item%201A.%20Risk%20Factors) A new risk factor highlights the substantial goodwill impairment recorded in Q1 2025, warning of potential future impairment charges impacting financial results - A new risk factor highlights that the company recently recorded a substantial goodwill impairment charge of **$83.9 million** and that any future impairments of goodwill or other long-lived assets could negatively impact results of operations[150](index=150&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=29&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company did not repurchase any shares of its common stock under its authorized program during the first quarter of 2025 - The company did not purchase any shares of its common stock under the stock repurchase program during the first quarter of 2025[151](index=151&type=chunk) [Other Items (3, 4, 5, 6)](index=29&type=section&id=Other%20Items) Items 3 and 4 were not applicable, while Item 5 confirmed no Rule 10b5-1 trading arrangement changes, and Item 6 listed filed exhibits - No defaults on senior securities or mine safety disclosures were reported[152](index=152&type=chunk)[153](index=153&type=chunk) - No director or officer of the company adopted or terminated a Rule 10b5-1 trading arrangement during the quarter[154](index=154&type=chunk)

Core Insights - Forrester Research reported quarterly earnings of $0.11 per share, exceeding the Zacks Consensus Estimate of $0.08 per share, but down from $0.14 per share a year ago, resulting in an earnings surprise of 37.50% [1] - The company posted revenues of $89.88 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 0.89% and down from $100.08 million year-over-year [2] - Forrester Research shares have declined approximately 37.9% year-to-date, contrasting with the S&P 500's decline of 3.9% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.51 on revenues of $111.12 million, and for the current fiscal year, it is $1.30 on revenues of $407.81 million [7] - The estimate revisions trend for Forrester Research is currently unfavorable, leading to a Zacks Rank 4 (Sell), indicating expected underperformance in the near future [6] Industry Context - The Computer - Services industry, to which Forrester Research belongs, is currently ranked in the top 37% of over 250 Zacks industries, suggesting that companies in the top 50% outperform those in the bottom 50% by more than 2 to 1 [8] - Another company in the same industry, WidePoint, is expected to report a quarterly loss of $0.01 per share, reflecting a year-over-year change of +85.7%, with revenues anticipated to be $38.57 million, up 12.7% from the previous year [9][10]

Financial Data and Key Metrics Changes - The company generated $89.9 million in revenue, a decrease of 10% compared to $100.1 million in the prior year period [19] - Net income decreased by 28% to $2 million, with earnings per share at $0.11 compared to $0.14 in the prior year [23] - Operating income decreased by 27% to $2.5 million, representing 2.8% of revenue, down from 3.4% in the previous year [22] - Free cash flow was positive at $26.1 million, reflecting prudent cash management [17] Business Line Data and Key Metrics Changes - Research revenues decreased by 11%, with subscription research products down 6% [20] - Consulting business revenues were $21.4 million, down 7% compared to the prior year, while Advisory showed single-digit growth [21] - Events business revenues were insignificant as no events were held during the quarter [21] Market Data and Key Metrics Changes - Economic uncertainty has led to budget tightening and spending pauses, particularly in verticals like discrete manufacturing and retail [10] - The government sector, which constitutes less than 6% of total contract value, experienced minimal contract cancellations, but future renewals are expected to remain tight [9][19] Company Strategy and Development Direction - The company is focusing on optimizing its go-to-market strategy to align with its product platform, Forrester Decisions [6] - A new wave of research was launched to help companies manage through volatility, covering various topics including B2C and B2B marketing, technology, and cybersecurity [10] - The company aims to leverage its strengths in AI and cybersecurity to penetrate government accounts [11][12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that the first quarter did not meet expectations due to economic instability but expressed confidence in the company's ability to assist clients during volatile times [15][27] - The guidance for 2025 remains unchanged, with expected revenue between $400 million and $415 million, reflecting a decline of 4% to 8% compared to 2024 [26] Other Important Information - The company recorded a goodwill impairment charge of approximately $84 million due to a decline in stock price [24] - The company has approximately $80 million of stock repurchase authorization intact and a strong balance sheet with over $134 million in cash [23] Q&A Session Summary Question: Guidance and macro uncertainty - Management maintained guidance despite macro uncertainty, citing a conservative outlook and potential opportunities in the government sector [33][36] Question: Sales pipeline and performance - Sales pipelines are improving, with a 33% increase per account executive, although sales cycles are prolonged by about 10-12 days [43][53] Question: Client retention and sector challenges - The decline in total clients is primarily among smaller clients, with a focus on selling team solutions to improve retention [65][66]

Financial Data and Key Metrics Changes - Forrester generated $89.9 million in revenue for Q1 2025, a decrease of 10% compared to $100.1 million in the prior year period [18] - The company reported a net income of $2 million and earnings per share of $0.11, down from $2.8 million and $0.14 in Q1 2024, representing a significant decline [23] - Operating income decreased by 27% to $2.5 million, or 2.8% of revenue, compared to 3.4% in the same quarter last year [22] - Free cash flow for the quarter was $26.1 million, reflecting prudent cash management [17] Business Line Data and Key Metrics Changes - Research revenues decreased by 11% year-over-year, with subscription research products down 6% [20] - Consulting revenues were $21.4 million, down 7% compared to the prior year, although the Advisory segment showed single-digit growth [21] - The events business generated insignificant revenues as no events were held during the quarter [21] Market Data and Key Metrics Changes - The company experienced a 7% decline in contract value (CV) for the quarter, with expectations of flat to slightly down CV for the year [17] - Economic uncertainty led to budget tightening and spending pauses, particularly in verticals like discrete manufacturing and retail [9] - The government sector, which constitutes less than 6% of total contract value, faced some contract cancellations, but the overall impact was minimal [19] Company Strategy and Development Direction - Forrester is focusing on optimizing its go-to-market strategy to align with its product platform, Forrester Decisions [6] - The company launched a new wave of research aimed at helping clients manage through economic volatility, covering various topics including B2C and B2B marketing, technology, and cybersecurity [10] - Forrester is expanding its research in artificial intelligence and has developed its own large language model, IZOLA, to assist clients [12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that economic volatility is expected to persist throughout 2025, impacting client spending and project initiation [20] - The company remains optimistic about its ability to assist clients in navigating uncertain times, emphasizing its role as a partner in optimizing costs [26] - Guidance for 2025 remains unchanged, with expected revenue between $400 million and $415 million, reflecting a decline of 4% to 8% compared to 2024 [25] Other Important Information - A goodwill impairment charge of approximately $84 million was recorded due to a decline in stock price, which does not reflect lowered long-term expectations for the business [24] - The company has approximately $80 million of stock repurchase authorization intact and a strong balance sheet with over $134 million in cash [23] Q&A Session Summary Question: Guidance and macro uncertainty - Management maintained guidance despite macro uncertainty, citing a conservative outlook and potential opportunities in the government sector [32][34] Question: Sales pipeline and execution - Sales pipelines are improving, with a 33% increase per account executive, although sales cycles are taking longer due to increased scrutiny [42][53] Question: Sector challenges - Challenges are being observed across various sectors, particularly in manufacturing and financial services, with significant impacts noted in Asia and Europe due to tariffs [60] Question: Client retention and small clients - The decline in total clients is primarily among smaller clients, with a focus on ensuring the right product fit for retention [66][68]

Exhibit 99.1 FOR IMMEDIATE RELEASE Forrester Research Reports 2025 First-Quarter Financial Results CAMBRIDGE, Mass., May 6, 2025 — Forrester Research, Inc. (Nasdaq: FORR) today announced financial results for the first quarter ended March 31, 2025, with contract value at $290.9 million, down 7% compared with the prior year. "We expect 2025 to be marked by volatility, and this is reflected in our first-quarter metrics and the decline in revenue," said CEO and Chairman George F. Colony. "However, we continue ...

Core Insights - Amazon is considering implementing a subscription fee for Alexa to offset high AI development costs and enhance profitability [1][4] - The competitive landscape has shifted with the emergence of advanced AI systems like ChatGPT, prompting Amazon to revamp Alexa with generative AI technology [3][9] - Alexa has not met the transformative expectations set by its founder, Jeff Bezos, as most users engage in simple tasks rather than complex interactions [7][8] Group 1: Subscription Model - A subscription fee could help Amazon monetize Alexa, which has historically been unprofitable [1][8] - The company must demonstrate the new capabilities of Alexa to justify a subscription model, similar to offerings from OpenAI and Anthropic [5][4] - Transitioning even a small portion of Alexa's large user base to a paid model could generate significant revenue [5] Group 2: Competitive Landscape - The release of ChatGPT has intensified pressure on Amazon to enhance Alexa's functionality and competitiveness [3][9] - Analysts suggest that the focus may shift from comparing AI companies to comparing specific products like Alexa and ChatGPT [2] Group 3: Historical Context and Challenges - Launched in 2014, Alexa has sold over 500 million devices globally but has not transformed user behavior as anticipated [6][7] - Amazon has incurred substantial losses in its devices business, amounting to tens of billions of dollars [9][10] - The company has undergone significant layoffs in its devices and services unit, reflecting scrutiny over unprofitable projects [10]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (MARK ONE) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934. FOR THE QUARTERLY PERIOD ENDED March 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934. COMMISSION FILE NUMBER: 000-21433 FORRESTER RESEARCH, INC. (Exact name of registrant as specified in its charter) | Large accelerated filer | ☐ | Accelerated filer | ☒ | | --- | --- | --- ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (MARK ONE) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934. FOR THE QUARTERLY PERIOD ENDED September 30, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934. COMMISSION FILE NUMBER: 000-21433 FORRESTER RESEARCH, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) 60 Aco ...

[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This part presents the unaudited consolidated financial statements, management's discussion and analysis, market risk disclosures, and controls and procedures for the Company [Item 1. Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents Forrester Research, Inc.'s unaudited consolidated financial statements for the three months ended March 31, 2020 and 2019, including balance sheets, statements of operations, comprehensive loss, and cash flows, along with detailed notes explaining accounting policies, significant transactions, and financial impacts, particularly concerning the COVID-19 pandemic [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) Presents the company's financial position, detailing assets, liabilities, and equity as of March 31, 2020, and December 31, 2019 **Consolidated Balance Sheet Highlights (in thousands):** | Item | March 31, 2020 | December 31, 2019 | Change | % Change | | :-------------------------------- | :------------- | :---------------- | :----- | :------- | | Total current assets | $172,903 | $192,036 | $(19,133) | (10.0%) | | Total assets | $608,298 | $639,160 | $(30,862) | (4.8%) | | Total current liabilities | $257,357 | $268,931 | $(11,574) | (4.3%) | | Deferred revenue | $195,399 | $179,194 | $16,205 | 9.0% | | Total liabilities | $450,126 | $481,072 | $(30,946) | (6.4%) | | Total stockholders' equity | $158,172 | $158,088 | $84 | 0.1% | [Consolidated Statements of Operations](index=4&type=section&id=Consolidated%20Statements%20of%20Operations) Details the company's revenues, expenses, and net loss for the three months ended March 31, 2020 and 2019 **Consolidated Statements of Operations Highlights (Three Months Ended March 31, in thousands):** | Item | 2020 | 2019 | Change | % Change | | :-------------------------------- | :----- | :----- | :----- | :------- | | Total revenues | $106,345 | $100,649 | $5,696 | 5.7% | | Research services | $72,796 | $68,609 | $4,187 | 6.1% | | Advisory services and events | $33,549 | $32,040 | $1,509 | 4.7% | | Total operating expenses | $105,624 | $111,533 | $(5,909) | (5.3%) | | Income (loss) from operations | $721 | $(10,884) | $11,605 | 106.6% | | Net loss | $(513) | $(13,316) | $12,803 | 96.1% | | Basic loss per common share | $(0.03) | $(0.73) | $0.70 | 95.9% | | Diluted loss per common share | $(0.03) | $(0.73) | $0.70 | 95.9% | [Consolidated Statements of Comprehensive Loss](index=5&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Loss) Reports the net loss and other comprehensive loss components for the three months ended March 31, 2020 and 2019 **Consolidated Statements of Comprehensive Loss (Three Months Ended March 31, in thousands):** | Item | 2020 | 2019 | Change | % Change | | :-------------------------------- | :----- | :----- | :----- | :------- | | Net loss | $(513) | $(13,316) | $12,803 | 96.1% | | Other comprehensive loss | $(3,101) | $(430) | $(2,671) | (621.2%) | | Comprehensive loss | $(3,614) | $(13,746) | $10,132 | 73.7% | [Consolidated Statements of Cash Flows](index=6&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Summarizes cash inflows and outflows from operating, investing, and financing activities for the three months ended March 31, 2020 and 2019 **Consolidated Statements of Cash Flows Highlights (Three Months Ended March 31, in thousands):** | Cash Flow Activity | 2020 | 2019 | Change | % Change | | :-------------------------------- | :----- | :----- | :----- | :------- | | Net cash provided by operating activities | $21,823 | $25,988 | $(4,165) | (16.0%) | | Net cash used in investing activities | $(2,401) | $(241,715) | $239,314 | 99.0% | | Net cash provided by (used in) financing activities | $(15,291) | $151,361 | $(166,652) | (110.1%) | | Net change in cash, cash equivalents and restricted cash | $1,448 | $(63,928) | $65,376 | 102.3% | | Cash, cash equivalents and restricted cash, end of period | $70,640 | $76,368 | $(5,728) | (7.5%) | [Notes to Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Provides detailed explanations of the accounting policies, significant transactions, and financial impacts referenced in the financial statements [Note 1 — Interim Consolidated Financial Statements](index=7&type=section&id=Note%201%20%E2%80%94%20Interim%20Consolidated%20Financial%20Statements) Discusses the basis of presentation, impact of COVID-19, and recent accounting pronouncements - The COVID-19 pandemic began materially impacting the Company's business in March 2020, primarily affecting customer contract bookings and consulting project delivery[21](index=21&type=chunk)[99](index=99&type=chunk) - The Company anticipates the most significant impact on operations in Q2 2020, with subsequent periods also negatively affected[21](index=21&type=chunk)[99](index=99&type=chunk) - Cost-reduction measures have been implemented, including reductions in travel, new hiring, and employee incentive compensation programs, to mitigate the financial impact of COVID-19[22](index=22&type=chunk)[100](index=100&type=chunk) - The Company adopted ASU No. 2016-13 (Topic 326) on January 1, 2020, using the modified retrospective method, resulting in a **$0.2 million decrease to retained earnings** for expected credit losses[27](index=27&type=chunk) **Allowance for Expected Credit Losses on Accounts Receivable (in thousands):** | Item | Amount | | :------------------------------------ | :----- | | Balance at December 31, 2019 | $628 | | Cumulative effect adjustment of adopting Topic 326 | $218 | | Provision for expected credit losses | $433 | | Net write-offs | $(122) | | Translation adjustments | $(13) | | Balance at March 31, 2020 | $1,144 | [Note 2 — Acquisitions](index=9&type=section&id=Note%202%20%E2%80%94%20Acquisitions) Details the acquisition of SiriusDecisions, Inc. and related costs - On January 3, 2019, Forrester acquired 100% of SiriusDecisions, Inc. for **$246.8 million at closing**, aiming to cross-sell services, extend platforms, and accelerate growth[34](index=34&type=chunk)[35](index=35&type=chunk)[101](index=101&type=chunk) - The acquisition costs of **$1.7 million** for the three months ended March 31, 2019, were primarily for investment banker fees and professional services[37](index=37&type=chunk) [Note 3 — Goodwill and Other Intangible Assets](index=9&type=section&id=Note%203%20%E2%80%94%20Goodwill%20and%20Other%20Intangible%20Assets) Provides carrying amounts and amortization schedules for goodwill and finite-lived intangible assets **Goodwill Carrying Amount (in thousands):** | Item | Amount | | :-------------------------- | :------- | | Balance at December 31, 2019 | $243,895 | | Translation adjustments | $(1,205) | | Balance at March 31, 2020 | $242,690 | **Finite-Lived Intangible Assets (March 31, 2020, in thousands):** | Asset Type | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | | :-------------------- | :-------------------- | :----------------------- | :------------------ | | Customer relationships | $109,608 | $42,100 | $67,508 | | Technology | $16,676 | $7,796 | $8,880 | | Backlog | $13,000 | $8,125 | $4,875 | | Trademarks | $12,453 | $1,061 | $11,392 | | **Total** | **$151,737** | **$59,082** | **$92,655** | **Estimated Intangible Asset Amortization Expense (in thousands):** | Year | Amount | | :----------------- | :------- | | 2020 (remainder) | $14,133 | | 2021 | $12,344 | | 2022 | $11,005 | | 2023 | $10,830 | | 2024 | $9,721 | | Thereafter | $34,622 | | **Total** | **$92,655** | [Note 4 — Debt](index=10&type=section&id=Note%204%20%E2%80%94%20Debt) Outlines the Company's credit agreement, outstanding borrowings, and compliance with financial covenants - The Company entered into a **$200.0 million** Credit Agreement on January 3, 2019, comprising **$125.0 million** in Term Loans and a **$75.0 million** Revolving Credit Facility, primarily to finance the SiriusDecisions acquisition[42](index=42&type=chunk)[136](index=136&type=chunk) **Outstanding Borrowings (in thousands):** | Description | March 31, 2020 | December 31, 2019 | | :-------------------------------- | :------------- | :---------------- | | Term loan facility | $116,406 | $118,750 | | Revolving credit facility | $— | $14,000 | | Principal amount outstanding | $116,406 | $132,750 | | Less: Deferred financing fees | $(2,048) | $(2,205) | | Net carrying amount | $114,358 | $130,545 | - As of March 31, 2020, the Company was in compliance with its financial covenants under the Credit Agreement and forecasts continued compliance for at least one year, considering COVID-19 cost-reduction measures[51](index=51&type=chunk)[140](index=140&type=chunk) [Note 5 — Leases](index=12&type=section&id=Note%205%20%E2%80%94%20Leases) Presents lease expenses, future minimum lease payments, and ROU asset impairments **Lease Expense (Three Months Ended March 31, in thousands):** | Item | 2020 | 2019 | | :-------------------- | :----- | :----- | | Operating lease cost | $3,991 | $3,569 | | Short-term lease cost | $81 | $255 | | Variable lease cost | $1,356 | $1,234 | | Sublease income | $(61) | $— | | **Total lease cost** | **$5,367** | **$5,058** | **Future Minimum Lease Payments (as of March 31, 2020, in thousands):** | Year | Amount | | :----------------- | :------- | | 2020 (remainder) | $11,828 | | 2021 | $14,022 | | 2022 | $13,505 | | 2023 | $12,974 | | 2024 | $12,619 | | Thereafter | $23,902 | | **Total lease payments** | **$88,850** | | Less imputed interest | $(12,945) | | **Present value of lease liabilities** | **$75,905** | - The Company incurred **$1.4 million** of ROU asset impairments during Q1 2020 related to facility leases from the SiriusDecisions acquisition[56](index=56&type=chunk) [Note 6 – Contract Assets and Liabilities](index=13&type=section&id=Note%206%20%E2%80%93%20Contract%20Assets%20and%20Liabilities) Details revenue recognition from deferred revenue, remaining performance obligations, and deferred commissions - The Company recognized **$69.9 million** and **$58.1 million** in revenue during the three months ended March 31, 2020 and 2019, respectively, related to its deferred revenue balance at the beginning of each period[62](index=62&type=chunk) - Approximately **$343.6 million** of revenue is expected to be recognized from remaining performance obligations over the next 12 to 24 months as of March 31, 2020[63](index=63&type=chunk) - Amortization expense for deferred commissions was **$8.1 million** and **$7.2 million** for the three months ended March 31, 2020 and 2019, respectively[64](index=64&type=chunk) [Note 7 — Derivatives and Hedging](index=14&type=section&id=Note%207%20%E2%80%94%20Derivatives%20and%20Hedging) Describes the Company's interest rate swap contract, its fair value, and effectiveness as a cash flow hedge - As of March 31, 2020, the Company had an interest rate swap contract with a notional amount of **$89.1 million**, maturing in 2022, designated as a cash flow hedge[66](index=66&type=chunk) - The fair value of the interest rate swap was a liability of **$1.8 million** as of March 31, 2020, recorded in other non-current liabilities[66](index=66&type=chunk) - The swap was considered highly effective through March 31, 2020, with a **$1.3 million** net accumulated loss deferred in accumulated other comprehensive loss[68](index=68&type=chunk) [Note 8 — Fair Value Measurements](index=14&type=section&id=Note%208%20%E2%80%94%20Fair%20Value%20Measurements) Presents the fair value hierarchy for financial instruments and changes in Level 3 contingent consideration **Fair Value Hierarchy (as of March 31, 2020, in thousands):** | Item | Level 1 | Level 2 | Level 3 | Total | | :-------------------------- | :------ | :------ | :------ | :------ | | **Assets:** | | | | | | Money market funds | $2,811 | $— | $— | $2,811 | | **Liabilities:** | | | | | | Contingent purchase price | $— | $— | $(2,524) | $(2,524) | | Interest rate swap | $— | $(1,787) | $— | $(1,787) | | **Total Liabilities** | **$—** | **$(1,787)** | **$(2,524)** | **$(4,311)** | **Changes in Level 3 Contingent Consideration (Three Months Ended March 31, 2020, in thousands):** | Item | Amount | | :------------------------------------ | :------- | | Balance at December 31, 2019 | $(2,511) | | Fair value adjustment of contingent purchase price | $(11) | | Foreign exchange effect | $(2) | | Balance at March 31, 2020 | $(2,524) | [Note 9 — Income Taxes](index=15&type=section&id=Note%209%20%E2%80%94%20Income%20Taxes) Reports income tax expense, effective tax rate, and the evaluation of the CARES Act **Income Tax Expense (Benefit) (Three Months Ended March 31, in thousands):** | Item | 2020 | 2019 | | :-------------------------- | :----- | :----- | | Income tax expense (benefit) | $19 | $(226) | | Effective tax rate | (3.8%) | 1.7% | - The Company anticipates an effective tax rate of approximately **10% to 15%** for the full year 2020[79](index=79&type=chunk) - The Company is evaluating the potential impact of the Coronavirus Aid, Relief and Economic Security (CARES) Act enacted on March 27, 2020[80](index=80&type=chunk) [Note 10 — Accumulated Other Comprehensive Loss](index=16&type=section&id=Note%2010%20%E2%80%94%20Accumulated%20Other%20Comprehensive%20Loss) Details the components of accumulated other comprehensive loss, including unrealized gains/losses and translation adjustments **Components of Accumulated Other Comprehensive Loss (in thousands):** | Item | Net Unrealized Gain (Loss) on Interest Rate Swap | Cumulative Translation Adjustment | Total Accumulated Other Comprehensive Loss | | :------------------------------------ | :--------------------------------------------- | :-------------------------------- | :----------------------------------------- | | Balance at December 31, 2019 | $(104) | $(4,753) | $(4,857) | | Foreign currency translation | $— | $(1,920) | $(1,920) | | Unrealized loss on interest rate swap, net of tax | $(1,181) | $— | $(1,181) | | **Balance at March 31, 2020** | **$(1,285)** | **$(6,673)** | **$(7,958)** | [Note 11 — Net Loss Per Common Share](index=16&type=section&id=Note%2011%20%E2%80%94%20Net%20Loss%20Per%20Common%20Share) Provides basic and diluted weighted average common shares outstanding and anti-dilutive exclusions **Basic and Diluted Weighted Average Common Shares (in thousands):** | Item | March 31, 2020 | March 31, 2019 | | :------------------------------------ | :------------- | :------------- | | Basic weighted average common shares outstanding | 18,705 | 18,363 | | Diluted weighted average common shares outstanding | 18,705 | 18,363 | | Options and restricted stock units excluded (anti-dilutive) | 980 | 703 | [Note 12 — Stockholders' Equity](index=17&type=section&id=Note%2012%20%E2%80%94%20Stockholders%27%20Equity) Summarizes changes in stockholders' equity, stock-based compensation, and dividend/repurchase programs **Stockholders' Equity Changes (Three Months Ended March 31, 2020, in thousands):** | Item | Common Stock ($0.01 Par Value) | Additional Paid-in Capital | Retained Earnings | Treasury Stock Cost | Accumulated Other Comprehensive Loss | Total Equity | | :------------------------------------ | :----------------------------- | :------------------------- | :---------------- | :------------------ | :----------------------------------- | :----------- | | Balance at Dec 31, 2019 | $233 | $216,454 | $118,147 | $(171,889) | $(4,857) | $158,088 | | Issuance of common stock under stock plans, net | $1 | $1,052 | $— | $— | $— | $1,053 | | Stock-based compensation expense | $— | $2,802 | $— | $— | $— | $2,802 | | Cumulative effect adjustment (Topic 326) | $— | $— | $(157) | $— | $— | $(157) | | Net loss | $— | $— | $(513) | $— | $— | $(513) | | Net change in interest rate swap, net of tax | $— | $— | $— | $— | $(1,181) | $(1,181) | | Foreign currency translation | $— | $— | $— | $— | $(1,920) | $(1,920) | | **Balance at Mar 31, 2020** | **$234** | **$220,308** | **$117,477** | **$(171,889)** | **$(7,958)** | **$158,172** | **Stock-Based Compensation Expense (Three Months Ended March 31, in thousands):** | Expense Category | 2020 | 2019 | | :------------------------------------ | :----- | :----- | | Cost of services and fulfillment | $1,593 | $1,463 | | Selling and marketing | $362 | $440 | | General and administrative | $847 | $782 | | **Total** | **$2,802** | **$2,685** | - The Company suspended its dividends program in 2019 following the SiriusDecisions acquisition and related debt, declaring no dividends in Q1 2020 or Q1 2019[88](index=88&type=chunk) - No shares of common stock were repurchased in the three months ended March 31, 2020 or 2019, and the Company plans to substantially reduce or eliminate repurchases in 2020[89](index=89&type=chunk)[156](index=156&type=chunk) [Note 13 — Non-Marketable Investments](index=19&type=section&id=Note%2013%20%E2%80%94%20Non-Marketable%20Investments) Describes the carrying value and accounting method for non-marketable investments in private equity funds - The carrying value of non-marketable investments in technology-related private equity funds was **$2.5 million** as of March 31, 2020, accounted for using the equity method[90](index=90&type=chunk)[91](index=91&type=chunk) [Note 14 — Operating Segments](index=19&type=section&id=Note%2014%20%E2%80%94%20Operating%20Segments) Details the Company's segment realignment and financial performance for Products and Research segments - Effective January 1, 2020, the Company realigned its internal management and reporting into Products and Research segments, eliminating the SiriusDecisions segment[92](index=92&type=chunk)[124](index=124&type=chunk) **Total Segment Revenues and Expenses (Three Months Ended March 31, in millions):** | Segment | 2020 Revenues | 2019 Revenues | YoY Revenue Change | 2020 Expenses | 2019 Expenses | YoY Expense Change | | :---------------- | :------------ | :------------ | :----------------- | :------------ | :------------ | :----------------- | | Products | $39,918 | $37,967 | 5% | $(19,378) | $(19,948) | (3%) | | Research | $66,427 | $62,682 | 6% | $(18,784) | $(20,397) | (8%) | | **Consolidated** | **$106,345** | **$100,649** | **6%** | **$(38,162)** | **$(40,345)** | **(5%)** | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=21&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the Company's financial condition and results of operations, highlighting the impact of COVID-19, key business metrics, detailed revenue and expense analysis, segment performance, and liquidity [Overview](index=21&type=section&id=Overview) Discusses the impact of the COVID-19 pandemic on business operations, implemented cost-reduction measures, and key business metrics - The COVID-19 pandemic significantly impacted Q1 2020 business, primarily affecting March customer contract bookings and consulting project delivery[99](index=99&type=chunk)[152](index=152&type=chunk) - Q2 2020 is expected to face the most significant impact, including a substantial reduction in revenues and profits from virtualized flagship events (SiriusDecisions Summit, CX North America) and cancelled smaller events[99](index=99&type=chunk)[152](index=152&type=chunk) - The Company has implemented cost-reduction measures, including cuts to travel, new hiring, and employee incentive compensation, to proactively respond to the pandemic's effects[100](index=100&type=chunk)[153](index=153&type=chunk) **Key Business Metrics (as of March 31, dollars in millions):** | Metric | 2020 | 2019 | Absolute Change | Percentage Change | | :-------------------- | :----- | :----- | :-------------- | :---------------- | | Deferred revenue | $195.4 | $191.6 | $3.8 | 2% | | Agreement value | $354.9 | $345.3 | $9.6 | 3% | | Client retention | 69% | 72% | (3) | (4%) | | Dollar retention | 89% | 90% | (1) | (1%) | | Enrichment | 102% | 106% | (4) | (4%) | | Number of clients | 2,805 | 2,850 | (45) | (2%) | - Retention and enrichment rates were negatively affected by decreased contract bookings in March 2020 due to the widespread economic effects of COVID-19[106](index=106&type=chunk) [Results of Operations](index=23&type=section&id=Results%20of%20Operations) Analyzes revenue performance, operating expenses, amortization, interest expense, and income tax for the period **Revenue Performance (Three Months Ended March 31, in millions):** | Revenue Category | 2020 | 2019 | Absolute Increase (Decrease) | Percentage Increase (Decrease) | | :------------------------------------ | :----- | :----- | :--------------------------- | :----------------------------- | | Total revenues | $106.3 | $100.6 | $5.7 | 6% | | Research services | $72.8 | $68.6 | $4.2 | 6% | | Advisory services and events | $33.5 | $32.0 | $1.5 | 5% | | Revenues from customers outside of the U.S. | $21.4 | $22.4 | $(1.0) | (4%) | - Total revenues increased **6% YoY**, with approximately **4%** of this growth attributed to the fair value adjustment of pre-acquisition deferred revenue in 2019[109](index=109&type=chunk) - Cost of services and fulfillment decreased **4% YoY**, primarily due to a **$2.6 million** decrease in compensation and benefits (incentive bonuses) and a **$0.6 million** decrease in travel and entertainment, partially offset by increased professional services costs[112](index=112&type=chunk) - Selling and marketing expenses decreased **4% YoY**, driven by a **$1.1 million** decrease in travel and entertainment and a **$0.7 million** decrease in compensation and benefits (incentive bonuses)[114](index=114&type=chunk) - General and administrative expenses decreased **9% YoY**, mainly due to a **$1.1 million** decrease in compensation and benefits (incentive bonuses)[115](index=115&type=chunk) - Amortization of intangible assets decreased by **$1.5 million YoY** as certain technology intangible assets became fully amortized[117](index=117&type=chunk) - Interest expense decreased by **$0.8 million YoY** due to lower average outstanding borrowings and lower effective interest rates[119](index=119&type=chunk) **Income Tax Expense (Benefit) (Three Months Ended March 31, in millions):** | Item | 2020 | 2019 | Absolute Increase (Decrease) | Percentage Increase (Decrease) | | :------------------------------------ | :----- | :----- | :--------------------------- | :----------------------------- | | Provision (benefit) for income taxes | $0.0 | $(0.2) | $0.2 | 100% | | Effective tax rate | (3.8%) | 1.7% | (5.5) | (324%) | [Segment Results](index=26&type=section&id=Segment%20Results) Provides a detailed analysis of revenue and expense performance for the Product and Research segments - Product segment revenues increased **5% YoY**, driven by a **2% increase** in Connect revenues (executive program) and a **9% increase** in Consulting revenues (strong consultant delivery)[129](index=129&type=chunk) - Product segment expenses decreased **3% YoY**, primarily due to a **$1.5 million** decrease in compensation and benefits (incentive bonuses) and a **$0.4 million** decrease in travel and entertainment, partially offset by a **$1.4 million** increase in professional services[130](index=130&type=chunk) - Research segment revenues increased **6% YoY**, driven by an **8% increase** in the Research product line (reprint product), partially offset by a **1% decrease** in Consulting revenues[131](index=131&type=chunk) - Research segment expenses decreased **8% YoY**, mainly due to a **$1.5 million** decrease in compensation and benefits (incentive bonuses)[132](index=132&type=chunk) [Liquidity and Capital Resources](index=27&type=section&id=Liquidity%20and%20Capital%20Resources) Examines cash flow activities, debt obligations, cash and cash equivalents, and contractual obligations - Net cash provided by operating activities decreased by **$4.2 million YoY** to **$21.8 million** for Q1 2020, primarily due to a **$5.3 million** reduction in cash from accounts receivable and deferred revenue from decreased contract bookings[133](index=133&type=chunk) - Net cash used in investing activities was **$2.4 million** in Q1 2020, primarily for property and equipment purchases, a significant decrease from **$241.7 million** in Q1 2019 (which included the SiriusDecisions acquisition)[134](index=134&type=chunk) - Net cash used in financing activities was **$15.3 million** in Q1 2020, mainly due to **$16.3 million** in debt repayments (**$14.0 million** discretionary on revolving credit, **$2.3 million** required on term loan)[135](index=135&type=chunk) - The Company expects to pay approximately **$3.5 million** in deferred acquisition purchase price in 2020 for the FeedbackNow acquisition[135](index=135&type=chunk) - As of March 31, 2020, cash and cash equivalents totaled **$69.8 million**, with **$51.8 million** held outside the U.S., which the Company intends to permanently reinvest[141](index=141&type=chunk) **Contractual Obligations (as of March 31, 2020, in thousands):** | Contractual Obligations | Total | 2020 | 2021 | 2022 | 2023 | 2024 | Thereafter | | :---------------------- | :------ | :----- | :----- | :----- | :----- | :----- | :--------- | | Operating lease payments | $106,026 | $12,046 | $15,777 | $15,387 | $14,872 | $14,534 | $33,410 | | Purchase commitments | $8,372 | $6,632 | $870 | $870 | $— | $— | $— | | **Total** | **$114,398** | **$18,678** | **$16,647** | **$16,257** | **$14,872** | **$14,534** | **$33,410** | - Purchase commitments were reduced by **$2.1 million** due to the cancellation of event venue contracts as flagship events moved to a virtual format and smaller events were cancelled due to COVID-19[145](index=145&type=chunk) [Off-Balance Sheet Arrangements](index=28&type=section&id=Off-Balance%20Sheet%20Arrangements) Confirms the absence of any off-balance sheet financing arrangements - The Company does not maintain any off-balance sheet financing arrangements[144](index=144&type=chunk) [Recent Accounting Pronouncements](index=28&type=section&id=Recent%20Accounting%20Pronouncements) Refers to Note 1 for a comprehensive description of recent accounting pronouncements - Refer to Note 1 – Interim Consolidated Financial Statements for a full description of recent accounting pronouncements[145](index=145&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=29&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section states that there have been no material changes in the Company's assessment of its sensitivity to market risk since the last annual report - No material changes in the assessment of market risk sensitivity since the Annual Report on Form 10-K for the year ended December 31, 2019[146](index=146&type=chunk) [Item 4. Controls and Procedures](index=29&type=section&id=Item%204.%20Controls%20and%20Procedures) This section details the evaluation of the Company's disclosure controls and procedures and reports on any changes in internal control over financial reporting [Evaluation of Disclosure Controls and Procedures](index=29&type=section&id=Evaluation%20of%20Disclosure%20Controls%20and%20Procedures) Concludes on the effectiveness of the Company's disclosure controls and procedures as of March 31, 2020 - Management, including the principal executive and financial officers, concluded that the Company's disclosure controls and procedures were effective as of March 31, 2020, providing reasonable assurance[147](index=147&type=chunk) [Changes in Internal Control Over Financial Reporting](index=29&type=section&id=Changes%20in%20Internal%20Control%20Over%20Financial%20Reporting) Reports on the absence of material changes in internal control over financial reporting during Q1 2020 - No material changes in internal control over financial reporting occurred during Q1 2020, despite modifications to control procedures due to employees working remotely in response to COVID-19[148](index=148&type=chunk) [PART II. OTHER INFORMATION](index=30&type=section&id=PART%20II.%20OTHER%20INFORMATION) This part includes information on legal proceedings, risk factors, equity sales, and exhibits [Item 1. Legal Proceedings](index=30&type=section&id=Item%201.%20Legal%20Proceedings) This section confirms that the Company is not currently involved in any material legal proceedings - The Company is not currently a party to any material legal proceedings[150](index=150&type=chunk) [Item 1A. Risk Factors](index=30&type=section&id=Item%201A.%20Risk%20Factors) This section updates the Company's risk factors, specifically emphasizing the adverse impact of health epidemics like COVID-19 on business operations, financial condition, and the ability to comply with financial covenants - The risk factor regarding health epidemics has been updated to reflect the adverse impact of COVID-19, which is expected to significantly affect Q2 2020 results and subsequent periods[151](index=151&type=chunk)[152](index=152&type=chunk) - The pandemic could disrupt or restrict the Company's ability to sell or fulfill products/services, reduce demand, and impact financial condition, results of operations, cash flows, and liquidity[152](index=152&type=chunk) - Despite cost-reduction measures, a more severe impact from COVID-19 than currently forecasted could affect the Company's ability to comply with financial covenants, potentially having a material adverse effect[153](index=153&type=chunk)[154](index=154&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=30&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section reports on the Company's stock repurchase program, noting no repurchases during the first quarter of 2020 and future plans to reduce or eliminate such activities - No shares of common stock were repurchased under the stock repurchase program during the quarter ended March 31, 2020[156](index=156&type=chunk) - The Company anticipates continuing to substantially reduce or eliminate repurchases of common stock during 2020 following the SiriusDecisions acquisition[156](index=156&type=chunk) [Item 6. Exhibits](index=31&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed as part of the Form 10-Q, including organizational documents, certifications, and XBRL data files - The exhibits include Restated Certificate of Incorporation, Amended and Restated By-Laws, Specimen Certificate for Common Stock, Certifications of Principal Executive and Financial Officers (31.1, 31.2, 32.1, 32.2), and XBRL Instance Document and Taxonomy Extensions[162](index=162&type=chunk) [SIGNATURES](index=33&type=section&id=SIGNATURES) This section contains the official signatures for the Form 10-Q filing, confirming its submission by authorized personnel - The report was signed by Michael A. Doyle, Chief Financial Officer, on May 11, 2020[165](index=165&type=chunk)