Contract Value and Client Metrics - Contract value (CV) decreased by 5% to 315.2millionasofSeptember2024comparedto331.2 million in the prior year period[69][70] - Client retention remained flat at 73% and wallet retention remained flat at 89% as of September 2024 compared to the prior year period[69][70] - Number of clients decreased by 14% to 2,002 as of September 2024 compared to 2,338 in the prior year period[70] - Approximately 78% of the company's overall CV was in the Forrester Decisions product platform as of September 2024, with an anticipated increase to over 80% by the end of 2024[70] Revenue Breakdown - Research products and services accounted for 75.2% of total revenues for the three months ended September 30, 2024, up from 71.1% in the prior year period[71] - Consulting projects and advisory services accounted for 22.8% of total revenues for the three months ended September 30, 2024, down from 24.9% in the prior year period[71] - Events revenues accounted for 2.0% of total revenues for the three months ended September 30, 2024, down from 4.0% in the prior year period[71] Expense Breakdown - Cost of services and fulfillment accounted for 41.1% of total revenues for the three months ended September 30, 2024, down from 42.3% in the prior year period[71] - Selling and marketing expenses accounted for 37.3% of total revenues for the three months ended September 30, 2024, up from 35.2% in the prior year period[71] - General and administrative expenses accounted for 15.4% of total revenues for the three months ended September 30, 2024, up from 13.3% in the prior year period[71] Revenue Performance - Total revenues decreased by 10% to 102.5millioninQ32024comparedto113.4 million in Q3 2023[72] - Research revenues decreased by 4% to 77.1millioninQ32024comparedto80.6 million in Q3 2023[72] - Consulting revenues decreased by 17% to 23.4millioninQ32024comparedto28.2 million in Q3 2023[72] - Events revenues decreased by 54% to 2.1millioninQ32024comparedto4.6 million in Q3 2023[72] - Revenues from customers outside the U.S. decreased by 9% to 23.6millioninQ32024comparedto25.8 million in Q3 2023[72] Expense Performance - Cost of services and fulfillment decreased by 12% to 42.2millioninQ32024comparedto48.0 million in Q3 2023[74] - Selling and marketing expenses decreased by 4% to 38.3millioninQ32024comparedto40.0 million in Q3 2023[75] - General and administrative expenses increased by 4% to 15.7millioninQ32024comparedto15.1 million in Q3 2023[77] - Depreciation expense decreased by 0.3millioninQ32024comparedtotheprioryearperiod[78]−Amortizationofintangibleassetsdecreasedby0.6 million in Q3 2024 compared to the prior year period[79] Other Income and Taxes - Other income, net decreased by 0.1millionforthethreemonthsandincreasedby1.1 million for the nine months ended September 30, 2024, primarily due to a 1.9millionincreaseininterestincome,partiallyoffsetbya0.9 million increase in foreign currency exchange losses[84] - Income tax expense increased by 2.3million(994.1 million (106%) for the nine months ended September 30, 2024, with an effective tax rate of 461% for the nine months, driven by discrete tax items including 3.5millionfromthedispositionofassetsrelatedtotheFeedbackNowproductline[85]SegmentPerformance−Researchsegmentrevenuesdecreasedby72.0 million of cash in operating activities during the nine months ended September 30, 2024, a decrease of 11.8millioncomparedtotheprioryearperiod,primarilyduetoa9.9 million decrease in net income[92] - The company generated 4.8millionfrominvestingactivitiesduringtheninemonthsendedSeptember30,2024,including6.0 million from the sale of the FeedbackNow product line[92] - The company used 13.0millioninfinancingactivitiesduringtheninemonthsendedSeptember30,2024,primarilyfor13.0 million in common stock repurchases[92] - As of September 30, 2024, the company had a remaining stock repurchase authorization of approximately 82.9million[92]−Thecompanyhasa150.0 million revolving credit facility, with 35.0milliondrawnasofSeptember30,2024,maturinginDecember2026[92]CashandInvestments−Thecompanyhadcash,cashequivalents,andmarketableinvestmentstotaling114.9 million as of September 30, 2024, with 81.0millionheldoutsidetheU.S.[94]−Non−cancelableleasepaymentsdueasofSeptember30,2024:4.0 million in 2024, 26.4millionwithin2025and2026,8.8 million within 2027 and 2028, and 6.2millionbeyond2028[94]−Thecompanyexpectstoremainincompliancewithitscreditfacilitycovenants,includingmaximumleverageratioandminimuminterestcoverageratio,throughthenext12months[94]−Thecompanyintendstopermanentlyreinvest81.0 million held outside the U.S. and does not plan to repatriate these funds for U.S. operations[94] - The company's current cash balance and cash flows from operations are expected to meet working capital, financing activities, and capital expenditure requirements for the next twelve months[94] Accounting and Risk - No material changes to the company's critical accounting policies and estimates since the last annual report[96] - No material changes in the company's assessment of sensitivity to market risk since the last annual report[98]
Forrester Research(FORR)2024-11-08 14:00