Forrester Research(US:FORR)2021-07-29 02:32Financial Data and Key Metrics Changes - Forrester's contract value grew by $26 million to $320 million, representing a 9% year-over-year growth rate [5] - Revenue increased by 30% to $128.7 million, exceeding the top end of guidance [5] - Net income rose by 4% to $12.7 million, with earnings per share at $0.66, up from $0.65 in the same quarter last year [47] - Operating cash flow reached $29.5 million for the quarter and $70.1 million for the first half of 2021, marking a 180% increase from the prior period [48] Business Line Data and Key Metrics Changes - Research revenues increased by 8% compared to Q2 of 2020 [44] - Consulting revenue grew by 22% year-over-year, marking three consecutive quarters of double-digit growth [45] - Event revenue surged by 33% compared to Q2 of 2020, driven by increased sponsorship revenue [46] Market Data and Key Metrics Changes - Client retention rates improved to 77%, marking the third consecutive quarter of increase [8] - Wallet retention increased to 96%, up 7 points from Q1 of this year [8] - The client count rose to 2,940, an increase of 280 clients year-over-year [8] Company Strategy and Development Direction - Forrester is focused on increasing contract value, generating more cash, and investing in sales, product development, and acquisitions [7] - The launch of Forrester Decisions aims to unify research services and enhance client engagement, expected to drive double-digit contract value growth [30][31] - The company is actively pursuing acquisitions to enhance contract value products and geographical coverage [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 2021 goals despite headwinds from the pandemic and a challenging hiring environment [51] - The company raised its full-year revenue guidance by $12 million and EPS guidance by $0.17 [52][53] - Management highlighted the importance of adapting to a flexible work environment to attract talent [71] Other Important Information - Forrester's consulting organization posted exceptional growth, with international markets achieving their highest bookings quarter ever [18] - The company is committed to advancing its environmental, social, and governance goals, focusing on diversity and inclusion initiatives [21][23] Q&A Session Summary Question: What areas within consulting showed strength in Q2? - Management noted strength in both content marketing and strategy consulting offerings, with good performance across geographic regions [57] Question: What are the expectations for consulting and events in Q3? - Management indicated that Q3 is typically a lighter quarter for events and consulting, with potential revenue step-downs expected [59] Question: Can you provide details on capital allocation plans and share repurchase activity? - The company repurchased $2.7 million in shares during the quarter and plans to be opportunistic with future buybacks [61] Question: How did client growth break down between returning clients and new clients? - Management indicated a balanced split between returning clients and new clients, with significant wins from larger retailers and automotive companies [66] Question: How is the tight labor market impacting hiring goals? - Management acknowledged challenges in talent acquisition but remains committed to aggressive hiring to meet 2022 targets [69]