Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically ~~and posted on its corporate Web site, if any,~~ every Interactive Data File required to be submitted ~~and posted~~ pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter)during the preceding 12 months (or for such shorter period that the registrant was required to submit ~~and post~~ such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. ~~(Check one):~~

If an emerging growth company, indicate by checkmark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of ~~November~~May 3, ~~2017 17,975,000~~2021, 19,129,000 shares of the registrant’s common stock were outstanding.

		September 30,			December 31,			March 31,			December 31,
		2017			2016			2021			2020
ASSETS	ASSETS
Current Assets:
Cash and cash equivalents		$	79,960		$	76,958		$	125,600		$	90,257
Marketable investments (Note 3)			54,019			61,147
Accounts receivable, net			39,481			58,812
Accounts receivable, net of allowance for expected credit losses of $731 and $708 as of March 31, 2021 and December 31, 2020, respectively									68,822			84,695
Deferred commissions			9,146			12,052			21,937			23,620
Prepaid expenses and other current assets			15,817			14,467			19,913			18,588
Total current assets			198,423			223,436			236,272			217,160
Property and equipment, net			26,128			23,894			26,513			27,032
Operating lease right-of-use assets									73,810			69,296
Goodwill			75,815			73,193			245,691			247,211
Intangible assets, net			927			1,464			73,898			77,995
Other assets			13,095			13,798			7,535			5,524
Total assets		$	314,388		$	335,785		$	663,719		$	644,218

LIABILITIES AND STOCKHOLDERS' EQUITY	LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable		$	613		$	1,806		$	380		$	657
Accrued expenses and other current liabilities			36,838			41,403			54,747			76,620
Current portion of long-term debt									12,500			12,500
Deferred revenue			132,929			134,265			216,522			179,968
Total current liabilities			170,380			177,474			284,149			269,745
Non-current liabilities			8,788			8,275
Long-term debt, net of deferred financing fees									92,319			95,299
Non-current operating lease liabilities									74,567			70,323
Other non-current liabilities									20,447			23,085
Total liabilities			179,168			185,749			471,482			458,452

Stockholders' Equity (Note 7):
Commitments and contingencies (Note 4, 13)
Stockholders' Equity (Note 11):
Preferred stock, $0.01 par value
Authorized - 500 shares; issued and outstanding - none			—			—
Authorized - 500 shares; issued and outstanding - NaN									—			—
Common stock, $0.01 par value
Authorized - 125,000 shares
Issued - 22,293 and 21,719 shares as of September 30, 2017 and December 31, 2016, respectively
Outstanding - 17,902 and 18,361 shares as of September 30, 2017 and December 31, 2016, respectively			223			217
Issued - 23,755 and 23,648 shares as of March 31, 2021 and December 31, 2020, respectively
Outstanding - 19,124 and 19,017 shares as of March 31, 2021 and December 31, 2020, respectively									238			236
Additional paid-in capital			175,218			157,569			234,752			230,128
Retained earnings			124,343			121,799			131,937			127,981
Treasury stock - 4,391 and 3,358 shares as of September 30, 2017 and December 31, 2016, respectively, at cost			(161,943	)		(121,976	)
Treasury stock - 4,631 shares as of March 31, 2021 and December 31, 2020									(171,889	)		(171,889	)
Accumulated other comprehensive loss			(2,621	)		(7,573	)		(2,801	)		(690	)
Total stockholders’ equity			135,220			150,036			192,237			185,766
Total liabilities and stockholders’ equity		$	314,388		$	335,785		$	663,719		$	644,218

The accompanying notes are an integral part of these consolidated financial statements.

	Three Months Ended						Nine Months Ended						Three Months Ended
	September 30,						September 30,						March 31,
	2017			2016			2017			2016			2021			2020
Revenues:
Research services	$	54,235		$	52,727		$	160,553		$	160,998
Advisory services and events		26,134			24,700			86,743			81,651
Research													$	74,968		$	74,267
Consulting														38,550			31,988
Events														263			90
Total revenues		80,369			77,427			247,296			242,649			113,781			106,345
Operating expenses:
Cost of services and fulfillment		32,508			29,889			100,814			95,429			47,477			43,353
Selling and marketing		29,225			27,751			90,355			87,490			39,279			40,273
General and administrative		10,083			10,086			30,672			30,359			13,178			12,005
Depreciation		1,607			1,941			4,775			5,982			2,290			2,406
Amortization of intangible assets		197			208			582			627			3,903			4,712
Reorganization costs		—			—			—			1,026
Integration costs														118			2,875
Total operating expenses		73,620			69,875			227,198			220,913			106,245			105,624
Income from operations		6,749			7,552			20,098			21,736			7,536			721
Other income, net		146			229			248			374
Losses on investments, net		(772	)		(1,085	)		(997	)		(1,139	)
Income before income taxes		6,123			6,696			19,349			20,971
Income tax provision		2,170			3,584			6,302			9,110
Net income	$	3,953		$	3,112		$	13,047		$	11,861

Basic income per common share	$	0.22		$	0.17		$	0.73		$	0.66

Diluted income per common share	$	0.22		$	0.17		$	0.72		$	0.65

Interest expense														(1,129	)		(1,538	)
Other income (expense), net														(470	)		310
Gain on investments, net														—			13
Income (loss) before income taxes														5,937			(494	)
Income tax expense														1,981			19
Net income (loss)													$	3,956		$	(513	)
Basic income (loss) per common share													$	0.21		$	(0.03	)
Diluted income (loss) per common share													$	0.21		$	(0.03	)
Basic weighted average common shares outstanding		17,747			18,062			17,897			17,896			19,061			18,705

Diluted weighted average common shares outstanding		18,051			18,435			18,212			18,168			19,288			18,705

Cash dividends declared per common share	$	0.19		$	0.18		$	0.57		$	0.54

The accompanying notes are an integral part of these consolidated financial statements.

Three Months Ended

Nine Months Ended

September 30,

September 30,

2017

2016

2017

2016

Net income
$
3,953

$
3,112

$
13,047

$
11,861

Other comprehensive income (loss), net of taxes:

Foreign currency translation

1,601

(120
)

4,905

(68
)
Net change in market value of investments

23

(48
)

47

72

Other comprehensive income (loss)

1,624

(168
)

4,952

4

Comprehensive income
$
5,577

$
2,944

$
17,999

$
11,865

	Three Months Ended
	March 31,
	2021			2020
Net income (loss)	$	3,956		$	(513	)

Other comprehensive loss net of tax:
Foreign currency translation		(2,301	)		(1,920	)
Net change in market value of interest rate swap		190			(1,181	)
Other comprehensive loss		(2,111	)		(3,101	)
Comprehensive income (loss)	$	1,845		$	(3,614	)

The accompanying notes are an integral part of these consolidated financial statements.

	Nine Months Ended
	September 30,						Three Months Ended
	2017			2016			March 31,
							2021			2020
Cash flows from operating activities:
Net income	$	13,047		$	11,861
Adjustments to reconcile net income to net cash provided by operating activities:
Net income (loss)							$	3,956		$	(513	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation		4,775			5,982			2,290			2,406
Impairment of property and equipment								—			626
Amortization of intangible assets		582			627			3,903			4,712
Net losses from investments		997			1,139
Net gains from investments								—			(13	)
Deferred income taxes		(921	)		(413	)		(2,395	)		(251	)
Stock-based compensation		6,423			5,731			2,492			2,802
Amortization of premium on investments		171			267
Foreign currency losses		444			98
Changes in assets and liabilities
Operating lease right-of-use assets, amortization, and impairments								2,666			4,535
Amortization of deferred financing fees								232			244
Foreign currency (gains) losses								521			(229	)
Changes in assets and liabilities:
Accounts receivable		20,140			31,078			15,181			24,556
Deferred commissions		2,906			3,890			1,683			1,723
Prepaid expenses and other current assets		(979	)		2,322			(1,255	)		(6,943	)
Accounts payable		(1,208	)		133			(275	)		(143	)
Accrued expenses and other liabilities		(6,041	)		(10,101	)		(22,235	)		(27,264	)
Deferred revenue		(3,473	)		(14,309	)		36,505			18,574
Operating lease liabilities								(2,718	)		(2,999	)
Net cash provided by operating activities		36,863			38,305			40,551			21,823
Cash flows from investing activities:
Purchases of property and equipment		(5,806	)		(3,334	)		(1,468	)		(2,401	)
Purchases of marketable investments		(27,430	)		(35,555	)
Proceeds from sales and maturities of marketable investments		34,458			20,086
Other investing activity		200			(49	)
Net cash provided by (used in) investing activities		1,422			(18,852	)
Net cash used in investing activities								(1,468	)		(2,401	)
Cash flows from financing activities:
Dividends paid on common stock		(10,205	)		(9,696	)
Repurchases of common stock		(39,967	)		—
Payments on borrowings								(3,125	)		(16,344	)
Proceeds from issuance of common stock under employee equity incentive plans		13,866			9,987			2,614			1,955
Taxes paid related to net share settlements of stock-based compensation awards		(2,511	)		(2,069	)		(480	)		(902	)
Net cash used in financing activities		(38,817	)		(1,778	)		(991	)		(15,291	)
Effect of exchange rate changes on cash and cash equivalents		3,534			(870	)
Net increase in cash and cash equivalents		3,002			16,805
Cash and cash equivalents, beginning of period		76,958			53,331
Cash and cash equivalents, end of period	$	79,960		$	70,136
Effect of exchange rate changes on cash, cash equivalents and restricted cash								(478	)		(2,683	)
Net change in cash, cash equivalents and restricted cash								37,614			1,448
Cash, cash equivalents and restricted cash, beginning of period								90,652			69,192
Cash, cash equivalents and restricted cash, end of period							$	128,266		$	70,640
Supplemental disclosure of cash flow information:
Cash paid for interest							$	902		$	1,286
Cash paid for income taxes							$	1,719		$	1,356

The accompanying notes are an integral part of these consolidated financial statements.

The accompanying unaudited interim consolidated financial statements have been prepared in accordance with generally accepted accounting principles ~~generally accepted~~ in the United States of America (“GAAP”) for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for reporting on Form 10-Q. Accordingly, certain information and footnote disclosures required for complete financial statements are not included herein. The year-end balance sheet data was derived from audited financial statements, but does not include all disclosures required by ~~accounting principles generally accepted in the United States of America.~~GAAP. It is recommended that these financial statements be read in conjunction with the consolidated financial statements and related notes that appear in the Forrester Research, Inc. (“Forrester”) Annual Report on Form 10-K for the year ended December 31, ~~2016.~~2020. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair statement of the financial position, results of operations, comprehensive income (loss), and cash flows as of the dates and for the periods presented have been included. The results of operations for the three ~~and nine~~ months ended ~~September 30, 2017~~March 31, 2021 may not be indicative of the results for the year ending December 31, ~~2017,~~2021, or any other period.

Effective for the first quarter of 2021, the Company modified its key metrics, as further described in Item 2. Management’s Discussions and Analysis of Financial Condition and Results of Operations. As part of these changes, beginning January 1, 2021, the Company is classifying all components of its subscription research products within the Research revenues financial statement line on the Consolidated Statements of Operations. In prior periods, the separate advisory session performance obligations included in any of the Company’s subscription research products were classified within the Consulting revenues financial statement line. Prior periods have been reclassified to conform to the current presentation which resulted in approximately $1.4 million of revenue being reclassified from Consulting revenues to Research revenues during the three months ended March 31, 2020. This reclassification had 0 impact on the amount of total revenues previously reported.

The following table summarizes the end-of-period cash and cash equivalents from the Company's Consolidated Balance Sheets and the total cash, cash equivalents and restricted cash as presented on the accompanying Consolidated Statements of Cash Flows (in thousands).

The Company adopted the guidance in the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Update (“ASU”) No. 2019-12, Income Taxes – Simplifying the Accounting for Income Taxes on January 1, 2021. The standard provides guidance to simplify the accounting for income taxes in certain areas, changes the accounting for select income tax transactions, and makes other minor improvements. The adoption of this standard did not have a material impact on the Company’s financial position or results of operations.

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments (“Topic 326”). The standard amends the existing financial instrument incurred loss impairment model by requiring entities to use a forward-looking approach based on expected losses and to consider a broader range of reasonable and

supportable information to estimate credit losses on certain types of financial instruments, including trade receivables. On January 1, 2020, the Company adopted the standard using the modified retrospective method in which prior periods are not adjusted and recorded a cumulative effect adjustment of $0.2 million to decrease retained earnings.

The Company adopted the guidance in ASU No. 2017-04, Intangibles-Goodwill and Other: Simplifying the Test for Goodwill Impairment on January 1, 2020. The new standard simplifies the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test and requires that instead, an entity should perform its goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. The adoption of this standard did not impact the Company’s financial position or results of operations.

The Company adopted the guidance in ASU No. 2018-13, Fair Value Measurement Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement on January 1, 2020. The new standard modifies the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement, including changes to fair value transfers and Level 3 fair value measurements. Changes required upon adoption of this standard are included in Note 7 – Fair Value Measurements and did not impact the Company’s financial position or results of operations.

The Company adopted the guidance in ASU No. 2018-15, Intangibles-Goodwill and Other-Internal-Use Software: Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract on January 1, 2020. The new standard aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The adoption of this standard did not have a material impact on the Company’s financial position or results of operations.

In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848) – Facilitation of the Effects of Reference Rate Reform on Finance Reporting. The new standard provides optional guidance for a limited period of time to ease the potential burden in accounting for, or recognizing the effects of, reference rate reform on financial reporting due to the risk of cessation of the London Interbank Offered Rate (“LIBOR”). The updates apply to contracts, hedging relationships, and other transactions that reference LIBOR, or another reference rate expected to be discontinued because of reference rate reform, and as a result require a modification. An entity may elect to apply the amendments immediately or at any point through December 31, 2022. The Company is currently evaluating the potential impact that this standard may have on its financial position and results of operations, including the standard’s potential impact on any contractual changes in the future that may result from reference rate reform.

Goodwill represents the excess of the purchase price of acquired businesses over the estimated fair values of the tangible and identifiable intangible net assets acquired. Goodwill is not amortized; however, it is required to be tested for impairment annually, which requires assessment of the potential impairment at the reporting unit level. Testing for impairment is also required on an interim basis if an event or circumstance indicates it is more likely than not an impairment loss has been incurred.

The Company performed its annual impairment testing as of November 30, 2020 utilizing a qualitative assessment to determine if it was more likely than not thatthe fair values of each of its reporting units was less than their respective carrying values and concluded that 0 impairments existed. Subsequent to completing the annual test and through March 31, 2021, there were no events or circumstances that required an interim impairment test. Accordingly, as of March 31, 2021, the Company had 0 accumulated goodwill impairment losses. Approximately $8.2 million of goodwill is allocated to the Company’s Consulting reporting unit, which has a negative carrying value as of March 31, 2021.

The change in the carrying amount of goodwill for the three months ended March 31, 2021 is summarized as follows (in thousands):

The carrying values of finite-lived intangible assets are as follows (in thousands):

Estimated intangible asset amortization expense for each of the five succeeding years is as follows (in thousands):

On January 3, 2019, the Company entered into a $200.0 million credit agreement (the “Credit Agreement”). The Credit Agreement provides for: (1) senior secured term loans in an aggregate principal amount of $125.0 million (the “Term Loans”) and (2) a senior secured revolving credit facility in an aggregate principal amount of $75.0 million (the “Revolving Credit Facility”). The Credit Agreement is scheduled to mature on January 3, 2024.

The Credit Agreement permits the Company to borrow incremental term loans and/or increase commitments under the Revolving Credit Facility in an aggregate principal amount up to $50.0 million, subject to approval by the administrative agent and certain customary terms and conditions.

The Term Loans and Revolving Credit Facility can be repaid early, in part or in whole, at any time and from time to time, without premium or penalty, other than customary breakage reimbursement requirements for LIBOR based loans. The Term Loans must be prepaid with net cash proceeds of (i) certain debt incurred or issued by Forrester and its restricted subsidiaries and (ii) certain asset sales and condemnation or casualty events, subject to certain reinvestment rights.

Amounts borrowed under the Credit Agreement bear interest, at Forrester’s option, at a rate per annum equal to either (i) LIBOR for the applicable interest period plus a margin that is between 1.75% and 2.50% based on Forrester’s consolidated total leverage ratio, or (ii) the alternate base rate plus a margin that is between 0.75% and 1.50% based on Forrester’s consolidated total leverage ratio. In addition, the Company pays a commitment fee that is between 0.25% and 0.35% per annum, based on Forrester’s consolidated total leverage ratio, on the average daily unused portion of the Revolving Credit Facility, payable quarterly, in arrears.

The Term Loans require repayment of the outstanding principal balance in quarterly installments each year, with the balance repayable on the maturity date, subject to customary exceptions. As of March 31, 2021, the amount payable in each year is set forth in the table below (in thousands):

The Revolving Credit Facility does not require repayment prior to maturity, subject to customary exceptions. The Company has $74.1 million of available borrowing capacity on the revolver (not including the expansion feature) as of March 31, 2021. Proceeds from the Revolving Credit Facility can be used towards working capital and general corporate purposes. Up to $5.0 million of the Revolving Credit Facility is available for the issuance of letters of credit, and any drawings under the letters of credit must be reimbursed within one business day. As of March 31, 2021, $0.9 million in letters of credit were issued under the Revolving Credit Facility.

Forrester incurred $1.8 million in costs related to the Revolving Credit Facility, which are recorded in other assets on the Consolidated Balance Sheets. These costs are being amortized as interest expense on the Consolidated Statements of Operations on a straight-line basis over the five-year term of the Revolving Credit Facility. Forrester incurred $2.8 million in costs related to the Term Loans, which are recorded as a reduction to the face value of long-term debt on the Consolidated Balance Sheets. These costs are being amortized as interest expense on the Consolidated Statements of Operations utilizing the effective interest rate method.

The following table summarizes the Company’s total outstanding borrowings as of the dates indicated (in thousands):

The Credit Agreement contains certain customary restrictive loan covenants, including among others, financial covenants that apply a maximum leverage ratio and minimum fixed charge coverage ratio. The maximum leverage ratio is based on total debt outstanding at the measurement date divided by EBITDA (as defined in the Credit Agreement) and the fixed charge coverage ratio is based upon EBITDA (as defined in the Credit Agreement), less capital expenditures, as a ratio to certain fixed charges, including Term Loan amortization, cash interest expense and cash taxes. The negative covenants limit, subject to various exceptions, the Company’s ability to incur additional indebtedness, create liens on assets, merge, consolidate, liquidate or dissolve any part of the Company, sell assets, pay dividends or other payments in respect to capital stock, change fiscal year, or enter into certain transactions with affiliates and subsidiaries. The Credit Agreement also contains customary events of default, representations, and warranties.

As of March 31, 2021, the Company is in compliance with its financial covenants under the Credit Agreement. The Company currently forecasts that it will be in compliance with its financial covenants for at least one year from the issuance of these interim financial statements.

All obligations under the Credit Agreement are unconditionally guaranteed by each of the Company’s existing and future, direct and indirect material wholly-owned domestic subsidiaries, other than certain excluded subsidiaries, and are collateralized by a first priority lien on substantially all tangible and intangible assets including intellectual property and all of the capital stock of the Company and its subsidiaries (limited to 65% of the voting equity of certain subsidiaries).

All of the Company’s leases are operating leases, the majority of which are for office space. Operating lease right-of-use (“ROU”) assets and non-current operating lease liabilities are included as individual line items on the Consolidated Balance Sheets, while short-term operating lease liabilities are recorded within accrued expenses and other current liabilities. Leases with an initial term of twelve months or less are not recorded on the Consolidated Balance Sheets and are not material.

Additional lease information is summarized in the following table (in thousands, except lease term and discount rate):

Future minimum lease payments under non-cancellable leases as of March 31, 2021 are as follows (in thousands):

The Company’s leases do not contain residual value guarantees, material restrictions or covenants, and all sublease transactions are not material. The Company incurred $1.4 million of ROU asset impairments during the three months ended March 31, 2020 related to facility leases from the SiriusDecisions, Inc. acquisition that the Company no longer used as a result of the integration of SiriusDecisions. These impairments are recorded in integration costs on the Consolidated Statements of Operations.

The Company disaggregates revenue as set forth in the following tables (in thousands):

Accounts receivable includes amounts billed and currently due from customers. Since the only condition for payment of the Company’s invoices is the passage of time, a receivable is recorded on the date an invoice is issued. Also included in accounts receivable are unbilled amounts resulting from revenue exceeding the amount billed to the customer, where the right to payment is unconditional. If the right to payment for services performed was conditional on something other than the passage of time, the unbilled amount would be recorded as a separate contract asset. There were 0 contract assets as of March 31, 2021 or 2020.

The majority of the Company’s contracts are non-cancellable. However, for contracts that are cancellable by the customer, the Company does not record a receivable when it issues an invoice. The Company records accounts receivable on these contracts only up to the amount of revenue earned but not yet collected.

In addition, since the majority of the Company’s contracts are for a duration of one year and payment is expected within one year from the transfer of products and services, the Company does not adjust its receivables or transaction prices for the effects of a significant financing component.

The Company refers to contract liabilities as deferred revenue on the Consolidated Balance Sheets. Payment terms in the Company’s customer contracts vary, but generally require payment in advance of fully satisfying the performance obligation(s). Deferred revenue consists of billings in excess of revenue recognized. Similar to accounts receivable, the Company does not record deferred revenue for unpaid invoices issued on a cancellable contract.

During the three months ended March 31, 2021 and 2020, the Company recognized $72.3 and $69.9 million of revenue, respectively, related to its deferred revenue balances at January 1 of each such period. To determine revenue recognized in each period from deferred revenue at the beginning of each period, the Company first allocates revenue to the individual deferred revenue balance outstanding at the beginning of each period, until the revenue equals that balance.

Approximately $489.0 million of revenue is expected to be recognized during the next 24 months from remaining performance obligations as of March 31, 2021.

The allowance for expected credit losses on accounts receivable for the three months ended March 31, 2021 is summarized as follows (in thousands):

When evaluating the adequacy of the allowance for expected credit losses, the Company makes judgments regarding the collectability of accounts receivable based, in part, on the Company’s historical loss rate experience, customer concentrations, management’s expectations of future losses as informed by current economic conditions, and changes in customer payment terms. If

the expected financial condition of the Company’s customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances may be required. If the expected financial condition of the Company’s customers were to improve, the allowances may be reduced accordingly.

The Company capitalizes commissions paid to sales representatives and related fringe benefits costs that are incremental to obtaining customer contracts. These costs are included in deferred commissions on the Consolidated Balance Sheets. The Company accounts for these costs at a portfolio level as the Company’s contracts are similar in nature and the amortization model used closely matches the amortization expense that would be recognized on a contract-by-contract basis. Costs to obtain a contract are amortized to earnings over the initial contract term, which is the same period the related revenue is recognized. Amortization expense related to deferred commissions for the three months ended March 31, 2021 and 2020 was $8.8 million and $8.1 million, respectively. The Company evaluates the recoverability of deferred commissions at each balance sheet date and there were 0 impairments recorded during the three months ended March 31, 2021 and 2020.

The Company has a derivative contract (an interest rate swap) to mitigate the cash flow risk associated with changes in interest rates on its variable rate debt (refer to Note 3 – Debt). The Company accounts for its derivative contract in accordance with FASB ASC Topic 815 – Derivatives and Hedging (“Topic 815”), which requires all derivatives, including derivatives designated as accounting hedges, to be recorded on the balance sheet at fair value.

At March 31, 2021, the Company had a single interest rate swap contract that matures in 2022, with an initial notional amount of $95.0 million. The notional amount at March 31, 2021 was $52.7 million. The Company pays a base fixed rate of 1.65275% and in return receives the greater of (1) 1-month LIBOR, rounded up to the nearest 1/16 of a percent, or (2) 0.00%. The fair value of the swap on March 31, 2021 was a liability of $0.9 million (refer to Note 7 – Fair Value Measurements for information on determining the fair value). The liability is included in other non-current liabilities on the Consolidated Balance Sheets.

The swap has been designated and accounted for as a cash flow hedge of the forecasted interest payments on the Company’s debt. As long as the swap continues to be a highly effective hedge of the designated interest rate risk, changes in the fair value of the swap are recorded in accumulated other comprehensive income (loss), a component of equity in the Consolidated Balance Sheets. Any ineffective portion of a change in the fair value of a hedge is recorded in earnings.

As required under Topic 815, the swap’s effectiveness is assessed on a quarterly basis. Since its inception, and through March 31, 2021, the interest rate swap was considered highly effective. Accordingly, the entire negative fair value as of March 31, 2021 of $0.6 million, net of taxes, is recorded in accumulated other comprehensive loss. The Company expects $0.5 million of this loss, net of taxes, to be reclassified into earnings within the next 12 months. Realized gains or losses related to the interest rate swap are included as operating activities in the Consolidated Statements of Cash Flows.

The Company’s derivative counterparty is an investment grade financial institution. The Company does not have any collateral arrangements with this counterparty and the derivative contract does not contain credit risk related contingent features. The table below provides information regarding amounts recognized in the Consolidated Statements of Operations for the derivative contract for the periods indicated (in thousands):

The carrying amounts reflected inon the Consolidated Balance Sheets for cash, ~~and cash equivalents,~~ accounts receivable, accounts payable, and accrued expenses approximate fair value due to their short-term maturities. ~~See~~The Company’s financial instruments also include its outstanding variable-rate borrowings (refer to Note 3 – ~~Marketable Investments - for the fair value of the Company’s marketable investments.~~

Debt). The Company ~~adopted~~believes that the ~~guidance in Accounting Standards Update ("ASU") No. 2016-09,~~ ~~Compensation - Stock Compensation~~ - ~~Improvements to Employee Share-Based Payment Accounting~~,carrying amount of its variable-rate borrowings reasonably approximate their fair values because the rates of interest on January 1, 2017. Under this standard, entities are permitted to make an accounting policy election to either estimate forfeitures on share-based payment awards, as previously required, or to recognize forfeitures as they occur. The Company has elected to recognize forfeitures as they occur and the impactthose borrowings reflect current market rates of ~~that change in accounting policy has been recorded as a $0.2 million cumulative effect adjustment to increase retained earnings as of January 1, 2017.~~

Additionally, ASU No. 2016-09 requires that all income tax effects related to settlements of share-based payment awards be reported in earnings as an increase or decrease to income tax expense. Previously, income tax effects at settlement of an award were reported as an increase (or decrease) to additional paid-in capital to the extent that those benefits were greater than (or less than) the income tax effects reported in earnings during the award's vesting period. The requirement to report those income tax effects in earnings has been applied on a prospective basis to settlements occurring on or after January 1, 2017, and the impact of applying this guidance resulted in a $0.3 million tax benefit for the three and nine months ended September 30, 2017. Application of this guidance may result in fluctuations in the Company’s effective tax rate depending on how many options are exercised, how many restricted stock units vest and the volatility of the Company’s stock price.

ASU 2016-09 also requires that all income tax-related cash flows resulting from share-based payments be reported as operating activities in the statement of cash flows. Previously, income tax benefits at settlement of an award were reported as a reduction to operating cash flows and an increase to financing cash flows to the extent that those benefits exceeded the income tax benefits reported in earnings during the award's vesting period. In addition, the standard requires that cash paid by directly withholding shares for tax withholding purposes be classified as a financing activity in the statement of cash flows. ~~For the nine months ended September 30, 2017, the Company reflected $2.5 million of tax withholding in financing activities.~~ ~~The Company has elected to apply the changes in cash flow classification on a retrospective basis~~ ~~resulting in an increase in operating cash flows, with a corresponding decrease in financing cash flows, of $2.4 million for the nine months ended September 30, 2016,~~ ~~as compared to the amounts previously reported.~~

~~The Company elected to early adopt the guidance in ASU No. 2016-16,~~ ~~Accounting for Income Taxes: Intra-Entity Asset Transfers of Assets Other than Inventory~~, on January 1, 2017. The guidance in this standard eliminates for all intra-entity sales of assets other than inventory, the exception under existing standards that permits the tax effects of intra-entity asset transfers to be deferred until the

transferred asset is sold to a third party or otherwise recovered through use. As a result, a reporting entity would recognize the tax expense from the sale of the asset in the seller’s tax jurisdiction when the transfer occurs and any deferred tax asset that arises in the buyer’s jurisdiction would also be recognized at the time of the transfer. As a result, the Company has recorded a $0.5 million~~cumulative effect adjustment to reduce retained earnings as of January 1, 2017.~~

~~The components of accumulated other comprehensive income (loss) are as follows (in thousands):~~

~~The following table summarizes the Company’s marketable investments (in thousands):~~

Realized gains and losses on investments are included in earnings and are determined using the specific identification method. Realized gains or losses on the sale of the Company’s marketable investments were not material in the three and nine months ended September 30, 2017 and 2016.

~~The following table summarizes the maturity periods of the marketable investments in the Company’s portfolio as of September 30, 2017 (in thousands).~~

The following table shows the gross unrealized losses and market value of the Company’s available-for-sale securities with unrealized losses that are not deemed to be other-than-temporary, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position (in thousands):

~~The~~ Company measures certain financial assets and liabilities at fair value on a recurring basis including cash equivalents and ~~available-for-sale securities.~~its derivative contract. The fair values of these financial assets and liabilities have been classified as Level 1, 2, or 3 within the fair value hierarchy as described in the accounting standards for fair value ~~measurements.~~measurements:

Level 1 — Fair value based on quoted prices in active markets for identical assets or liabilities.

Level 2 — Fair value based on inputs other than Level 1 inputs that are observable, either directly or indirectly, such as quoted prices for similar assets or ~~liabilities;~~liabilities, quoted prices in markets that are not ~~active;~~active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3 — Fair value based on unobservable inputs that are supported by little or no market activity and such inputs are significant to the fair value of the assets or liabilities.

The following table represents the Company’s fair value hierarchy for its financial assets ~~(cash equivalents~~ and ~~investments)~~liabilities that are measured at fair value on a recurring basis (in thousands):

As of September 30, 2017

Level 1

Level 2

Level 3

Total

Money market funds (1)

$
763

$
—

$
—

$
763

Federal agency obligations

—

1,796

—

1,796

Corporate obligations

—

52,223

—

52,223

Total

$
763

$
54,019

$
—

$
54,782

	As of March 31, 2021
	Level 1		Level 2			Total
Assets:
Money market funds (1)	$	503	$	—		$	503
Total Assets	$	503	$	—		$	503

Liabilities:
Interest rate swap (2)		—	$	(880	)	$	(880	)
Total Liabilities	$	—	$	(880	)	$	(880	)

As of December 31, 2016

Level 1

Level 2

Level 3

Total

Money market funds (1)

$
2,522

$
—

$
—

$
2,522

Federal agency obligations

—

1,793

—

1,793

Corporate obligations

—

59,354

—

59,354

Total

$
2,522

$
61,147

$
—

$
63,669

	As of December 31, 2020
	Level 1		Level 2			Total
Assets:
Money market funds (1)	$	503	$	—		$	503
Total Assets	$	503	$	—		$	503

Liabilities:
Interest rate swap (2)		—	$	(1,144	)	$	(1,144	)
Total Liabilities	$	—	$	(1,144	)	$	(1,144	)

Level 2 assets consist of the Company’s entire portfolio of marketable investments. Level 2 assets have been initially valued at the transaction price and subsequently valued, at the end of each reporting period, typically utilizing third party pricing services or other market observable data. The pricing services utilize industry standard valuation methods, including both income and market based approaches and observable market inputs to determine value. These observable market inputs include reportable trades, benchmark yields, credit spreads, broker/dealer quotes, bids, offers, current spot rates and other industry and economic events.

At September 30, 2017 and December 31, 2016, the carrying value of the Company’s non-marketable investments, which were composed primarily of interests in technology-related private equity funds, was $1.5 million and $2.8 million, respectively, and is included in other assets in the Consolidated Balance Sheets.

The Company’s investments at September 30, 2017 are being accounted for using the equity method as the investments are limited partnerships and the Company has an ownership interest in excess of 5% and, accordingly, the Company records its share of the investee’s operating results each period. Losses from non-marketable investments were $0.8 million and $1.0 million during the three and nine months ended September 30, 2017. Losses from non-marketable investments were $1.1 million and $1.2 million during the three and nine months ended September 30, 2016. Losses are included in Losses on investments, net in the Consolidated Statements of Income. At December 31, 2016, the Company’s investments also included an investment with a book value of $0.4 million, which was accounted for using the cost method. This investment was fully liquidated duringDuring the three months ended March 31, ~~2017. During~~2021, the ~~three months ended September 30, 2017,~~Company did not transfer assets or liabilities between levels of the fair value hierarchy. Additionally, there have been no ~~distributions were received from~~changes to the funds. During the nine months ended September 30, 2017, distributions of $0.4 million were received from the funds. During the nine months ended September 30, 2016, no distributions were received from the funds.

Forrester provides for income taxes on an interim basis according to management’s estimate of the effective tax rate expected to be applicable for the full fiscal year. Certain items such as changes in tax rates, tax benefits or expense related to settlements of share-based payment awards, and foreign currency gains or losses are treated as discrete items and are recorded in the period in which they arise.

In the first quarter of 2016, the Company implemented a reduction in its workforce of approximately 2% of its employees across various geographies and functions. The Company recorded $1.0 million of severance and related costsIncome tax expense for ~~this action during~~ the three months ended March 31, ~~2016. All costs under this plan were paid during 2016.~~2021 was $2.0 million resulting in an effective tax rate of 33.4% for the period. Income tax expense for the three months ended March 31, 2020 was $19 thousand resulting in an effective tax rate of

negative 3.8% for the period. The increase in income tax expense during the 2021 period was primarily due to the increase in overall U.S. profitability.

The Company anticipates that its effective tax rate for the full year 2021 will be approximately 32%.

On March 27, 2020, Congress enacted the Coronavirus Aid, Relief and Economic Security ("CARES") Act to provide certain relief as a result of the COVID-19 outbreak. The Company evaluated the impact of the CARES Act and determined it was not material to its financial position or results of operations.

The components of accumulated other comprehensive income (loss) are as follows (net of tax, in thousands):

Basic net income (loss) per common share is computed by dividing net income (loss) by the basic weighted average number of common shares outstanding during the period. Diluted net income (loss) per common share is computed by dividing net income (loss) by the diluted weighted average number of common shares and common equivalent shares outstanding during the period. The weighted average number of common equivalent shares outstanding has been determined in accordance with the treasury-stock method. Common equivalent shares consist of common stock issuable on the exercise of outstanding stock options and the vesting of restricted stock ~~units when dilutive.~~units.

	Three Months Ended				Nine Months Ended				Three Months Ended
	September 30,				September 30,				March 31,
	2017		2016		2017		2016		2021		2020
Basic weighted average common shares outstanding		17,747		18,062		17,897		17,896		19,061		18,705
Weighted average common equivalent shares		304		373		315		272		227		—
Diluted weighted average common shares outstanding		18,051		18,435		18,212		18,168		19,288		18,705
Share based awards excluded from diluted weighted average share calculation as effect would have been anti-dilutive		27		82		177		910
Options and restricted stock units excluded from diluted weighted average share calculation as effect would have been anti-dilutive										3		980

	Three Months Ended March 31, 2021
	Common Stock								Treasury Stock					Accumulated
	Number of Shares		$0.01 Par Value		Additional Paid-in Capital		Retained Earnings		Number of Shares		Cost			Other Comprehensive Income (Loss)			Total Stockholders' Equity
Balance at December 31, 2020		23,648	$	236	$	230,128	$	127,981		4,631	$	(171,889	)	$	(690	)	$	185,766
Issuance of common stock under stock plans, including tax effects		107		2		2,132		—		—		—			—			2,134
Stock-based compensation expense		—		—		2,492		—		—		—			—			2,492
Net income		—		—		—		3,956		—		—			—			3,956
Net change in interest rate swap, net of tax		—		—		—		—		—		—			190			190
Foreign currency translation		—		—		—		—		—		—			(2,301	)		(2,301	)
Balance at March 31, 2021		23,755	$	238	$	234,752	$	131,937		4,631	$	(171,889	)	$	(2,801	)	$	192,237

	Three Months Ended March 31, 2020
	Common Stock									Treasury Stock					Accumulated
	Number of Shares		$0.01 Par Value		Additional Paid-in Capital		Retained Earnings			Number of Shares		Cost			Other Comprehensive Income (Loss)			Total Stockholders' Equity
Balance at December 31, 2019		23,275	$	233	$	216,454	$	118,147			4,631	$	(171,889	)	$	(4,857	)	$	158,088
Issuance of common stock under stock plans, including tax effects		114		1		1,052		—			—		—			—			1,053
Stock-based compensation expense		—		—		2,802		—			—		—			—			2,802
Cumulative effect adjustment due to adoption of new accounting pronouncement, net of tax		—		—		—		(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 March 31, 2020		23,389	$	234	$	220,308	$	117,477			4,631	$	(171,889	)	$	(7,958	)	$	158,172

Restricted stock unit activity for the three months ended March 31, 2021 is presented below (in thousands, except per share data):

Stock option activity for the ~~nine~~three months ended ~~September 30, 2017~~March 31, 2021 is presented below (in thousands, except per share data and contractual term):

				Weighted -		Weighted -
				Average		Average
				Exercise		Remaining		Aggregate
	Number			Price Per		Contractual		Intrinsic
	of Shares			Share		Term (in years)		Value
Outstanding at December 31, 2020		292		$	35.46
Exercised		(30	)		36.04
Outstanding at March 31, 2021		262		$	35.40		3.15	$	1,859
Vested and Exercisable at March 31, 2021		262		$	35.40		3.15	$	1,859

Weighted -

Weighted -

Average

Average

Exercise

Remaining

Aggregate

Number

Price Per

Contractual

Intrinsic

of Shares

Share

Term (in years)

Value

Outstanding at December 31, 2016

1,540

$
34.35

Granted

—

—

Exercised

(385
)

32.32

Forfeited

(73
)

34.44

Outstanding at September 30, 2017

1,082

$
35.07

6.01

$
7,332

Exercisable at September 30, 2017

771

$
34.92

5.36

$
5,340

Vested and expected to vest at September 30, 2017

1,082

$
35.07

6.01

$
7,332

~~Restricted~~NaN stock ~~unit activity for~~options were granted or forfeited during the ~~nine~~three months ended ~~September 30, 2017 is presented below (in thousands, except per share data):~~

Forrester recognizes the fair value of stock-based compensation ~~in net income~~ over the requisite service period of the individual grantee, which generally equals the vesting ~~period.~~ period. Stock-based compensation was recorded in the following expense categories on the Consolidated Statements of Operations (in thousands):

	Three Months Ended				Nine Months Ended				Three Months Ended
	September 30,				September 30,				March 31,
	2017		2016		2017		2016		2021		2020
Cost of services and fulfillment	$	1,088	$	1,077	$	3,387	$	3,141	$	1,435	$	1,593
Selling and marketing		170		272		535		695		449		362
General and administrative		920		622		2,501		1,895		608		847
Total	$	2,178	$	1,971	$	6,423	$	5,731	$	2,492	$	2,802

Forrester utilizes the Black-Scholes valuation model for estimating the fair value of shares subject to purchase under the employee stock purchase plan, which were valued using the following assumptions:

	Three Months Ended						Nine Months Ended						Three Months Ended
	September 30,						September 30,						March 31,
	2017			2016			2017			2016			2021			2020
Average risk-free interest rate		0.96	%		0.47	%		0.81	%		0.47	%		0.05	%		0.30	%
Expected dividend yield		1.9	%		2.0	%		1.9	%		2.0	%		0.0	%		0.0	%
Expected life	0.5 Years			0.5 Years			0.5 Years			0.5 Years			0.5 Years			0.5 Years
Expected volatility		26	%		26	%		24	%		25	%		35	%		26	%
Weighted average fair value	$	8.50		$	7.52		$	8.32		$	7.75		$	11.50		$	8.10

In 2019, the ~~nine~~Company suspended its dividends program as a result of the acquisition of SiriusDecisions, Inc. and the related debt incurred to fund the acquisition (refer to Note 3 – Debt). The Company did not declare or pay any dividends in the three months ended ~~September 30, 2017, the Company declared~~March 31, 2021 and paid dividends of $10.2 million consisting of a $0.19 per share dividend in each of the first three quarters of 2017. In the nine months ended September 30, 2016, the Company declared and paid dividends of $9.7 million consisting of a $0.18 per share dividend in each of the first three quarters of 2016. In October 2017, the Company declared a dividend of $0.19 per share payable on December 20, 2017 to shareholders of record as of December 6, 2017.2020, respectively.

As of ~~September 30, 2017,~~March 31, 2021, Forrester’s Board of Directors had authorized an aggregate ~~$485.0~~$535.0 million to purchase common stock under its stock repurchase program. The shares repurchased may be used, among other things, in connection with Forrester’s equity incentive and purchase plans. In the three ~~and nine~~ months ended ~~September 30, 2017,~~March 31, 2021 and 2020, the Company ~~repurchased approximately 0.1 and 1.1 million shares, respectively, of common stock at an aggregate cost of approximately $3.5 million and $40.0 million, respectively. The Company~~ did ~~not~~0t repurchase any shares of common ~~stock in the nine months ended September 30, 2016.~~stock. From the inception of the program through ~~September 30, 2017, Forrester~~March 31, 2021, the Company repurchased ~~16.1~~16.3 million shares of common stock at an aggregate cost of ~~$464.9~~$474.9 million.

~~Forrester provides for income taxes~~The Company’s operations are grouped into 3 segments: Research, Consulting, and Events. These segments are based on ~~an interim basis according to management’s estimate~~the management structure of the ~~effective tax rate expected~~Company and how management uses financial information to ~~be applicable~~evaluate performance and determine how to allocate resources. The Company’s products and services are delivered through each segment as described below. Additionally, the tables below include the reclassification of revenues for the full fiscal year. Certain items such as changes in tax rates and tax benefits or expense related to settlements of share-based payment awards are treated as discrete items and are recorded in the period in which they arise.

Income tax expense for the nine months ended September 30, 2017 was $6.3 million resulting in an effective tax rate of 32.6% for the period. Income tax expense for the nine months ended September 30, 2016 was $9.1 million resulting in an effective tax rate of 43.4% for the period. The decrease in the effective tax rate during the nine months ended September 30, 2017 compared to the prior year period was primarily due to the recognition of a $1.3 million benefit from the settlement of a tax audit in the first quarter of 2017 and the recognition of approximately $0.3 million of windfall tax benefits from the settlement of options and restricted stock units during the third quarter of 2017. In addition, in 2016 an additional $0.6 million of tax expense was incurred due to a valuation allowance on a capital loss generated from onecomponents of the Company’s ~~investments. For the full year 2017, the Company anticipates that its effective tax rate will be approximately 35%.~~

CV subscription research products, as described further in Note ~~9 — Operating Segments~~1: Interim Consolidated Financial Statements.

The Research segment includes the ~~costs~~revenues from all of the Company’s research ~~personnel who are responsible for writing the research and performing the webinars and inquiries for the Company’s Research and Connect products. In addition, the research personnel deliver~~products as well as consulting revenues from advisory services (such as ~~workshops,~~ speeches and advisory days) ~~and a portion of the Company’s project consulting services. Revenue in this segment includes only revenue from advisory services and project consulting services that are~~ delivered by the Company’s research ~~personnel~~organization. Research segment costs include the cost of the organizations responsible for developing and delivering these products in ~~this segment.~~

~~The Product segment includes~~addition to the costs of the product management organization ~~that is~~ responsible for product pricing and packaging, and the launch of new products. In ~~addition, this~~May 2021, the Company announced the launch of a new research portfolio called Forrester Decisions, anticipated to be available in August 2021. This new portfolio of products will help executives, functional leaders, and their teams, across technology, marketing,customer experience, sales, and product management, plan and pursue initiatives for driving growth. The Forrester Decisions product combines the research, frameworks, models, and methodologies of the Company’s Forrester Research and SiriusDecisions Research product offerings, as well as features of the Company’s Connect and Analytics products. In connection with the launch of Forrester Decisions, the Company will no longer provide disaggregation of revenue by its research products in the segment tables below (refer to Note 5 – Revenue and Related Matters for disclosure of disaggregated revenue).

The Consulting segment includes the revenues and the related costs of the Company’s ~~Data, Connect and Events organizations. Revenue in this segment includes all revenue for the Company (including Research and Connect) except for revenue from advisory services and~~ project consulting ~~services that are delivered by personnel in the Research and Project Consulting segments.~~

organization. The ~~Project Consulting segment includes the costs of the consultants that deliver the~~project consulting organization delivers a majority of the Company’s project consulting revenue and certain advisory services. ~~Revenue in this~~

The Events segment includes the ~~project consulting revenue delivered by the consultants in this segment.~~

~~The Company evaluates reportable segment performance and allocates resources based on segment~~ revenues and ~~expenses.~~ the costs of the organization responsible for developing and hosting in-person and virtual events.

Segment expenses include the direct expenses of each segment organization and exclude selling and marketing ~~expenses, certain client support~~ expenses, general and administrative expenses, stock-based compensation expense, depreciation expense, adjustments to incentive bonus compensation from target amounts, amortization of intangible assets, ~~reorganization costs,~~interest and other ~~income,~~expense, and ~~losses~~gains on investments. The accounting policies used by the segments are the same as those used in the consolidated financial statements.

~~In the first quarter of 2017, the~~The Company modified its internal reporting for the Research and Project Consulting segments to reflect the transfer of revenue and direct costs related to a small consulting team in Asia Pacific from Research to Project Consulting, and to remove from both Research and Project Consulting certain client support activities that are now included within selling, marketing, administrative and other expensesprovides information by reportable segment in the ~~table below. Accordingly, the 2016 amounts have been reclassified to conform to the current presentation.~~tables below (in thousands):

Project

Product

Research

Consulting

Consolidated

Three Months Ended September 30, 2017

Research services revenues

$
54,235

$
—

$
—

$
54,235

Advisory services and events revenues

3,353

10,379

12,402

26,134

Total segment revenues

57,588

10,379

12,402

80,369

Segment expenses

9,764

11,953

6,443

28,160

Contribution margin (loss)

47,824

(1,574
)

5,959

52,209

Selling, marketing, administrative and other expenses

(45,263
)
Amortization of intangible assets

(197
)
Reorganization costs

—

Other income and losses on investments

(626
)
Income before income taxes

$
6,123

	Research Segment			Consulting Segment			Events Segment			Consolidated
Three Months Ended March 31, 2021
Research revenues	$	74,968		$	—		$	—		$	74,968
Consulting revenues		12,731			25,819			—			38,550
Events revenues		—			—			263			263
Total segment revenues		87,699			25,819			263			113,781
Segment expenses		(30,717	)		(12,325	)		(714	)		(43,756	)
Selling, marketing, administrative and other expenses											(58,468	)
Amortization of intangible assets											(3,903	)
Integration costs											(118	)
Interest expense, other expense, and gains on investments											(1,599	)
Loss before income taxes										$	5,937

Project

Product

Research

Consulting

Consolidated

Three Months Ended September 30, 2016

Research services revenues

$
52,727

$
—

$
—

$
52,727

Advisory services and events revenues

2,333

10,330

12,037

24,700

Total segment revenues

55,060

10,330

12,037

77,427

Segment expenses

8,884

11,586

5,522

25,992

Contribution margin (loss)

46,176

(1,256
)

6,515

51,435

Selling, marketing, administrative and other expenses

(43,675
)
Amortization of intangible assets

(208
)
Reorganization costs

—

Other income and losses on investments

(856
)
Income before income taxes

$
6,696

	Research Segment			Consulting Segment			Events Segment			Consolidated
Three Months Ended March 31, 2020
Research revenues	$	74,267		$	—		$	—		$	74,267
Consulting revenues		12,582			19,406			—			31,988
Events revenues		—			—			90			90
Total segment revenues		86,849			19,406			90			106,345
Segment expenses		(27,464	)		(10,021	)		(677	)		(38,162	)
Selling, marketing, administrative and other expenses											(59,875	)
Amortization of intangible assets											(4,712	)
Integration costs											(2,875	)
Interest expense, other income, and gains on investments											(1,215	)
Loss before income taxes										$	(494	)

Project

Product

Research

Consulting

Consolidated

Nine Months Ended September 30, 2017

Research services revenues

$
160,553

$
—

$
—

$
160,553

Advisory services and events revenues

15,714

32,279

38,750

86,743

Total segment revenues

176,267

32,279

38,750

247,296

Segment expenses

32,788

36,510

18,886

88,184

Contribution margin (loss)

143,479

(4,231
)

19,864

159,112

Selling, marketing, administrative and other expenses

(138,432
)
Amortization of intangible assets

(582
)
Reorganization costs

—

Other income and losses on investments

(749
)
Income before income taxes

$
19,349

Project

Product

Research

Consulting

Consolidated

Nine Months Ended September 30, 2016

Research services revenues

$
160,998

$
—

$
—

$
160,998

Advisory services and events revenues

14,191

33,244

34,216

81,651

Total segment revenues

175,189

33,244

34,216

242,649

Segment expenses

30,306

36,026

17,465

83,797

Contribution margin (loss)

144,883

(2,782
)

16,751

158,852

Selling, marketing, administrative and other expenses

(135,463
)
Amortization of intangible assets

(627
)
Reorganization costs

(1,026
)
Other income and losses on investments

(765
)
Income before income taxes

$
20,971

~~In May 2014,~~From time to time, the ~~Financial Accounting Standards Board (FASB) issued ASU No. 2014-09,~~ ~~Revenue from Contracts with Customers, which supersedes all existing revenue recognition requirements, including most industry specific guidance. The new standard requires a company~~Company may be subject to ~~recognize revenue when it transfers goods or services to customers~~legal proceedings and civil and regulatory claims that arise in ~~an amount that reflects~~ the consideration that the company expects to receive for those goods or services. The guidance also includes enhanced disclosure requirements which are intended to help financial statement users better understand the nature, amount, timing and uncertaintyordinary course of ~~revenue being recognized and the related cash flows. In March 2016, the FASB issued ASU No. 2016-08,~~ ~~Revenue from Contracts with Customers: Principal versus Agent Considerations, which clarifies the implementation guidance on principal versus agent considerations. In April 2016, the FASB issued ASU No. 2016-10,~~ ~~Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing, which clarifies certain aspects of identifying performance obligations and licensing implementation guidance. In May 2016, the FASB issued ASU No. 2016-12, Revenue from Contracts with Customers: Narrow Scope Improvements and Practical Expedients~~, which relates to disclosures of remaining performance obligations, as well as other amendments to guidance on collectability, noncash consideration and the presentation of sales and other similar taxes collected from customers. In December 2016, the FASB issued ASU 2016-20, ~~Technical Corrections and Improvements: Revenue from Contracts with Customers, which clarifies several topics including, certain types of transactions that are outside the scope~~its business activities. Regardless of the ~~new standard, disclosure requirements and balance sheet considerations.~~

The new standard will be effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. The two permitted transition methods under the new standard are the full retrospective method, in which case the standard would be applied to each prior reporting period presented, or the modified retrospective method, in which case the cumulative effect of applying the standard would be recognized at the date of initial application. The Company has determined that it will adopt the standard utilizing the modified retrospective method.

In 2016, Forrester established a formal program and cross-functional implementation team to identify, design and implement changes to its accounting systems and policies, business processes and internal controls to support recognition and disclosures under the new standard. The Company believes that it has essentially completed its assessment of how the new standard will affect the Company’s revenue recognition for all of its products and services, and will complete its accounting system and business process changes by the end of 2017.

~~The Company does not anticipate that the standard will~~outcome, litigation can have a material ~~impact~~adverse effect on ~~its results~~the Company because of ~~operations. The number~~defense and settlement costs, diversion of ~~performance obligations in the Company’s arrangements will not be different under the new standard than under current guidance. Determining standalone selling prices~~management resources, and allocating contract consideration on multiple element arrangements will follow a similar process as the Company’s current methodologies of establishing fair value / estimated selling price for our goods and services or allocating total contract consideration under the relative selling price method. Additionally, the timing of revenue recognition will remain substantially unchanged for most products. Subscription based research services revenues will continue to be recognized over time, using the new standard’s output method of time elapsed, as Forrester’s clients receive and consume the benefits of our services as we transfer control throughout the contract period. Advisory, reprint and events revenues will continue to be recognized at the point in time as control is transferred to the customer, which will generally be when the client has physical possession of the good(s) or upon completion of the service(s). The Company expects that most of its consulting contracts will continue to be recognized over time, while some contracts may be required to be recognized at a point in time upon completion of the project.

Key areas still in process include the evaluation of costs to fulfill contracts and completion and testing of new functionality of the Company’s existing software systems that is being implemented as part of this project. The adoption program and all remaining activities, including updates to the Company’s systems, processes, policies and controls, are expected to be completed by the end of 2017. In addition, report development and testing for disclosure requirements in 2018 will be completed in the first quarter of 2018.

~~In February 2016, the FASB issued ASU No. 2016-02,~~ ~~Leases~~. The new standard requires that all lessees recognize the assets and liabilities that arise from leases on the balance sheet and disclose qualitative and quantitative information about its leasing arrangements. The new standard will be effective for the Company on January 1, 2019. The adoption of this standard is expected to have a material impact on the Company’s financial position as virtually all leases will be recorded on the balance sheets as a right-of-use asset and a lease liability. The Company is currently evaluating the potential impact that this standard may have on its results of operations.

~~In June 2016, the FASB issued ASU No. 2016-13,~~ ~~Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments~~. The new standard amends the current financial instrument impairment model by requiring entities to use a forward-looking approach based on expected losses to estimate credit losses on certain types of financial instruments, including trade receivables. The new standard will be effective for the Company on January 1, 2020. The adoption of this standard is not expected to have a material impact on the Company’s financial position or results of operations.

~~In August 2016, the FASB issued ASU No. 2016-15,~~ ~~Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments~~. The new standard clarifies certain aspects of the statement of cash flows, including contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, and distributions received from equity method investees, among others. The new standard will be effective for the Company on January 1, 2018. The adoption of this standard is not expected to have a material impact on the Company’s statements of cash flows upon adoption.

~~In January 2017, the FASB issued ASU No. 2017-04,~~ ~~Intangibles-Goodwill and Other: Simplifying the Test for Goodwill Impairment~~. The new standard simplifies the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test and requires that instead, an entity should perform its goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. The new standard will be effective for the Company on January 1, 2020. The adoption of this standard is not expected to have a material impact on the Company’s financial position or results of operations.

ITEM 2. ~~MANAGEMENT’S~~MANAGEMENT’S DISCUSSION AND ANALYSIS OFOF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “expects,” “believes,” “anticipates,” “intends,” “plans,” “estimates,” or similar expressions are intended to identify these forward-looking statements. Reference is made in particular to our statements about possible acquisitions, future dividends, future share repurchases, future growth rates, results from operations and tax rates, the launch of Forrester Decisions, future compliance with financial covenants under our ~~plans for~~credit facility, future interest expense, anticipated increases in, and productivity of, our sales force and headcount, ~~future growth rates, future tax rates, future operating cash flows, future dividends, future share repurchases and~~ the adequacy of our cash, ~~marketable investments~~ and cash flows to satisfy our working capital and capital ~~expenditures.~~expenditures, and the anticipated impact of accounting standards. These statements are based on our current plans and expectations and involve risks and ~~uncertainties that could cause actual future activities and results of operations to be materially different from those set forth in the forward-looking statements.~~uncertainties. Important factors that could cause actual future activities and results to differ include, among others, our ability to retain and enrich ~~memberships for~~subscriptions to, and licenses of, our ~~research, data and leadership board~~Research products and services, our ability to fulfill existing or generate new ~~project~~ consulting engagements and advisory services, our ability to generate and increase demand for the ~~impact of our evolving customer engagement model,~~Events we host, technology spending, our ability to mitigate the adverse impact from the widespread outbreak of COVID-19 which could disrupt or restrict our ability to sell or fulfill, or reduce demand for, our products, services, and events, the risks and challenges inherent in international business activities including any impact of Brexit, our ability to offer new products and services, our dependence on key personnel, our ~~ability to realize anticipated benefits from internal reorganizations, the~~ ability to attract and retain qualified professional staff, our ability to respond to business and economic conditions and market trends, the impact of our outstanding debt, competition and industry consolidation, possible variations in our quarterly operating results, concentration of our stock ownership, the possibility of network disruptions and security breaches, ~~competition and industry consolidation,~~ our ability to enforce and protect our intellectual property rights, compliance with privacy laws, ~~possible variations in our quarterly operating results,~~ taxation risks, ~~concentration of our stock ownership~~ and any weakness identified in our system of internal controls. These risks are described more completely in our Annual Report on Form 10-K for the year ended December 31, ~~2016.~~2020. We undertake no obligation to update publicly any forward-looking statements, whether as a result of new information, future events, or otherwise.

The COVID-19 pandemic significantly affected us beginning in March 2020 primarily through lower contract bookings and a reduction in revenues from the conversion of our events from in-person events to virtual events. While the duration and severity of the pandemic is uncertain, we did experience a rebound in contract bookings beginning in the fourth quarter of 2020 and continuing through the first quarter of 2021. We expect that trend to continue in 2021. Our events business continues to be negatively affected by the pandemic. As we previously announced, all events in the first half of 2021 will be held as virtual events, including two of our flagship events, B2B Summit North America and CX North America. We hope to hold our events during the second half of 2021 as hybrid events, consisting of both in-person and virtual experiences.

The extent to which the COVID-19 pandemic ultimately impacts our business, financial condition, results of operations, cash flows, and liquidity may differ from our current estimates due to inherent uncertainties regarding the duration and further spread of the outbreak, its severity, actions taken to contain the virus or treat its impact, and how quickly and to what extent normal economic and operating conditions can resume.

We derive revenues from ~~memberships~~subscriptions to our Research products and ~~sales~~services, licensing electronic “reprints” of our Research, ~~Connect~~performing consulting projects and ~~Data products and services, performing~~ advisory services, and ~~consulting projects, and~~ hosting ~~events.~~Events. We offer contracts for our Research ~~Connect and Data~~ products that are typically renewable annually and payable in advance. ~~Membership revenues~~Subscription products are recognized as revenue ratably over the term of the contract. Accordingly, a substantial portion of our billings are initially recorded as deferred revenue. Reprints include an obligation to deliver a customer-selected research document and certain usage data provided through an on-line platform, which represents two performance obligations. We recognize revenue for the performance obligation for the data portion of the reprint ratably over the license term. We recognize revenue for the performance obligation for the research document at the time of providing access to the document. Billings for licensing of reprints are initially recorded as deferred revenue. Clients purchase consulting projects and advisory services independently and/or to supplement their ~~memberships~~access to our subscription-based products. Billings attributable to advisory services and consulting projects are initially recorded as deferred revenue. Advisory service revenues, such as workshops, speeches and advisory days, are recognized when the customer receives the agreed upon deliverable. Consulting project revenues, which ~~generally~~ are ~~short-term in nature and~~ based upon fixed-fee agreements, are recognized as the services are provided. ~~Event billings~~Advisory service revenues, such as speeches and advisory days, are recognized when the service is complete or the customer receives the agreed upon deliverable. Billings attributable to consulting projects and advisory services are initially recorded as deferred revenue. Events revenues consist of ticket and sponsorship sales for a Forrester-hosted event. Billings for Events are also initially recorded as deferred revenue and are recognized as revenue upon completion of each ~~event.~~Event.

Our primary operating expenses consist of cost of services and fulfillment, selling and marketing expenses, and general and administrative expenses. Cost of services and fulfillment represents the costs associated with the production and delivery of our products and services, including salaries, bonuses, employee benefits, and stock-based compensation expense for all personnel that produce and deliver our products and services, including all associated editorial, travel, and support services. Selling and marketing expenses include salaries, sales commissions, bonuses, employee benefits, stock-based compensation expense, travel expenses, promotional costs, and other costs incurred in marketing and selling our products and services. General and administrative expenses include the costs of the technology, operations, finance, and human resources groups and our other administrative functions, including

salaries, bonuses, employee benefits, and stock-based compensation expense. Overhead costs such as facilities and annual fees for cloud-based information technology systems are allocated to these categories according to the number of employees in each group.

~~Deferred revenue, agreement~~Effective for the first quarter of 2021, we have modified our key metrics to focus on our contract value (“CV”) products (as described below) in comparison to our prior metrics which included measures of our broader product portfolio. For 2021, we have focused on increasing our CV product bookings and have modified our compensation programs and metrics accordingly. We are focusing on CV products as these products are our most profitable products and historically our contracts for CV products have renewed at high rates (as measured by our client retention and wallet retention metrics). Our CV products make up essentially all of our research revenues.

We have included the historical calculation of the metrics below, dating back to the first quarter of 2019, on the investor relations section of our website.

Contract value, client retention, ~~dollar~~wallet retention, ~~enrichment~~ and number of clients are metrics that we believe are important to understanding our ~~business. We believe that the amount of deferred revenue, along with the agreement value of contracts to purchase~~ research ~~and advisory services, provide a significant measure of our business activity.~~business. We define these metrics as follows:

Client retention ~~dollar~~and wallet retention ~~and enrichment~~ are not necessarily indicative of the rate of future retention of our revenue base. A summary of our key metrics is as follows (dollars in millions):

As of

Absolute

Percentage

September 30,

Increase

Increase

2017

2016

(Decrease)

(Decrease)

Deferred revenue

$
132.9

$
126.2

$
6.7

5
%
Agreement value

$
237.8

$
241.1

$
(3.3
)

(1
%)
Client retention

76
%

76
%

—

—

Dollar retention

88
%

88
%

—

—

Enrichment

94
%

95
%

(1
)

(1
%)
Number of clients

2,393

2,482

(89
)

(4
%)

	As of						Absolute			Percentage
	March 31,						Increase			Increase
	2021			2020			(Decrease)			(Decrease)
Contract value	$	307.3		$	308.0		$	(0.7	)		—
Client retention		75	%		74	%		1			1	%
Wallet retention		89	%		90	%		(1	)		(1	%)
Number of clients		2,907			2,835			72			3	%

Deferred revenue at September 30, 2017 increased 5% compared to the prior year. The increase in deferred revenue is a result of contract billings in excess of revenue recognized due to an increase in contract bookings. AgreementContract value ~~decreased 1% at September 30, 2017 compared to the prior year~~ and ~~after adjusting for the effect of foreign currency fluctuations, remained~~our retention metrics were essentially flat ~~compared to the prior year. Client retention rate and dollar retention rate both increased 1% compared to the prior quarter and were essentially flat~~at March 31, 2021 compared to the prior year period. ~~Enrichment rate, although essentially consistent with~~These metrics were at their lows during the ~~prior quarter,~~second and third quarters of 2020 as contract booking declined ~~1% compared~~during 2020 due to the ~~prior year period.~~

pandemic. We have seen an improvement in these metrics from their lows in the middle of 2020 as contract bookings expanded during the second half of 2020 and the first quarter of 2021.

Management’s discussion and analysis of financial condition and results of operations are based upon our consolidated financial statements, which have been prepared in accordance with generally accepted accounting principles ~~generally accepted~~ in the United States of America (“GAAP”). The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. On an ongoing basis, we evaluate our policies and estimates, including but not limited to, those related to our revenue recognition, ~~non-marketable investments,~~leases, goodwill, intangible and other ~~intangible~~long-lived assets, and income taxes. Management bases its estimates on historical experience, data available at the time the estimates are made and various ~~other~~ assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. Our ~~other~~ critical accounting policies and estimates are described in our Annual Report on Form 10-K for the year ended December 31, ~~2016.~~2020.

The following table sets forth our statement of ~~income~~operations as a percentage of total revenues for the periods indicated:

	Three Months Ended						Nine Months Ended						Three Months Ended
	September 30,						September 30,						March 31,
	2017			2016			2017			2016			2021			2020
Revenues:
Research services		67.5	%		68.1	%		64.9	%		66.4	%
Advisory services and events		32.5			31.9			35.1			33.6
Research revenues														65.9	%		69.8	%
Consulting revenues														33.9			30.1
Events revenues														0.2			0.1
Total revenues		100.0			100.0			100.0			100.0			100.0			100.0
Operating expenses:
Cost of services and fulfillment		40.4			38.6			40.8			39.3			41.7			40.8
Selling and marketing		36.4			35.8			36.5			36.1			34.5			37.9
General and administrative		12.6			13.0			12.4			12.5			11.6			11.3
Depreciation		2.0			2.5			2.0			2.5			2.1			2.2
Amortization of intangible assets		0.2			0.3			0.2			0.2			3.4			4.4
Reorganization costs		—			—			—			0.4
Integration costs														0.1			2.7
Income from operations		8.4			9.8			8.1			9.0			6.6			0.7
Other income, net		0.2			0.3			0.1			0.1
Losses on investments, net		(1.0	)		(1.5	)		(0.4	)		(0.5	)
Income before income taxes		7.6			8.6			7.8			8.6
Income tax provision		2.7			4.6			2.5			3.7
Net income		4.9	%		4.0	%		5.3	%		4.9	%
Interest expense														(1.0	)		(1.4	)
Other income (expense), net														(0.4	)		0.2
Gain on investments, net														—			—
Income (loss) before income taxes														5.2			(0.5	)
Income tax expense														1.7			—
Net income (loss)														3.5	%		(0.5	%)

Three ~~and Nine~~ Months Ended ~~September 30, 2017~~March 31, 2021 and ~~2016~~2020

Three Months Ended

Absolute

Percentage

September 30,

Increase

Increase

2017

2016

(Decrease)

(Decrease)

(dollars in millions)

Revenues

$
80.4

$
77.4

$
3.0

4
%
Revenues from research services

$
54.2

$
52.7

$
1.5

3
%
Revenues from advisory services and events

$
26.1

$
24.7

$
1.4

6
%
Revenues attributable to customers outside of the U.S.

$
19.2

$
17.4

$
1.8

10
%
Percentage of revenue attributable to customers
outside of the U.S.

24
%

22
%

2

9
%
Number of events

3

3

—

—

Nine Months Ended

Absolute

Percentage

September 30,

Increase

Increase

2017

2016

(Decrease)

(Decrease)

(dollars in millions)

Revenues

$
247.3

$
242.6

$
4.7

2
%
Revenues from research services

$
160.6

$
161.0

$
(0.4
)

—

Revenues from advisory services and events

$
86.7

$
81.7

$
5.0

6
%
Revenues attributable to customers outside of the U.S.

$
55.7

$
55.4

$
0.3

1
%
Percentage of revenue attributable to customers outside of
the U.S.

23
%

23
%

—

—

Number of events

9

10

(1
)

(10
%)

	Three Months Ended						Absolute		Percentage
	March 31,						Increase		Increase
	2021			2020			(Decrease)		(Decrease)
	(dollars in millions)
Total revenues	$	113.8		$	106.3		$	7.4		7	%
Research revenues	$	75.0		$	74.3		$	0.7		1	%
Consulting revenues	$	38.6		$	32.0		$	6.6		21	%
Events revenues	$	0.3		$	0.1		$	0.2		192	%
Revenues attributable to customers outside of the U.S.	$	26.8		$	21.4		$	5.5		26	%
Percentage of revenue attributable to customers outside of the U.S.		24	%		20	%		4		20	%
Number of events		—			—			—		—

Total revenues increased ~~4% and 2%~~7% during the three ~~and nine~~ months ended ~~September 30, 2017 respectively,~~March 31, 2021 compared to the prior year ~~periods. After adjusting for~~period, with 1% of the ~~effect of~~increase due to changes in foreign ~~currency fluctuations, the revenue increase was 3% during the three months ended September 30, 2017 and remained at 2% for the nine months ended September 30, 2017.~~ currencies. Revenues from customers outside the U.S. increased 10% and 1% during the three and nine months ended September 30, 2017, respectively, compared to the prior year periods and increased 8% and 2%, respectively, after adjusting for the effects of foreign currency fluctuations. Revenues from customers outside of the U.S. represented 24% of total revenues for the three months ended September 30, 2017 and after adjusting for

the effect of foreign currency fluctuations, represented 23% of total revenues compared to 22% in the prior year period. The increase in the percentage of revenues attributable to customers outside of the U.S.25% during the three months ended ~~September 30, 2017 was principally~~March 31, 2021, due to an increase in revenues in ~~Canada and~~ the Asia Pacific region. Revenues from customers outside of the U.S. represented 23% of total revenues during the nine months ended September 30, 2017 and remained essentially flat compared to the prior year period, reflecting growth in revenues in theUnited Kingdom, Asia Pacific region, ~~that was offset by a decline in revenues in Europe. There was no material effect of foreign currency fluctuations on revenues from customers outside~~Europe and Canada. Approximately 7% of the ~~U.S. as a percent of total revenues during the nine months ended September 30, 2017.~~increase was due to changes in foreign currencies.

Research ~~services~~ revenues are recognized as revenue primarily on a ratable basis over the term of the contracts, which are generally twelve-month periods. Research ~~services~~ revenues increased 3%1% during the three months ended ~~September 30, 2017 and was essentially flat during the nine months ended September 30, 2017,~~March 31, 2021 compared to the prior year ~~periods. Currency fluctuations had the effect of increasing revenue~~period, which primarily resulted from flat contract value growth ~~by 1% in~~during this period.

Consulting revenues increased 21% during the three months ended September 30, 2017 and had an insignificant effect in the nine months ended September 30, 2017. The increase in revenues for the three months ended September 30, 2017 was primarily driven by an increase in revenue for our Reprints and Connect products. During the nine months ended September 30, 2017, a decline in revenue for our Data products and a slight decline in revenue for our Research products was offset by an increase in revenue for our Reprints and Connect products.

~~Revenues from advisory services and events increased 6% during both the three and nine months ended September 30, 2017~~March 31, 2021 compared to the prior year ~~periods~~period due to continued strong demand for our content marketing offerings and ~~increased 5%~~growth in our advisory services.

Events revenues were insignificant and ~~6%, respectively, after adjusting for the effect of foreign currency fluctuations. The increase in revenues for~~remained essentially consistent during the three months ended September 30, 2017 was principally due to increases in both advisory and events revenues, that was partially offset by a slight decline in consulting revenues. The increase in revenues for the nine months ended September 30, 2017 was principally due to growth in consulting and events revenues. Events revenues increased 158% and 14% during the three and nine months ended September 30, 2017, respectively,March 31, 2021 compared to the prior year ~~periods. The increase in~~period as no events ~~revenues~~took place during the three months ended September 30, 2017 was primarily due to revenue from a new event held in the U.S. during the current year period that exceeded the decline in revenue resulting from the discontinuation of a small event in the Asia Pacific region. The increase in events revenues during the nine months ended September 30, 2017 was due an increase in sponsorship revenues that offset having held one less event in the Asia Pacific region in the current year compared to the prior year.either period.

~~Please refer~~Refer to the “Segments Results” section below for a discussion of revenues and expenses by segment.

	Nine Months Ended						Absolute		Percentage			Three Months Ended						Absolute			Percentage
	September 30,						Increase		Increase			March 31,						Increase			Increase
	2017			2016			(Decrease)		(Decrease)			2021			2020			(Decrease)			(Decrease)
Cost of services and fulfillment (dollars in millions)	$	100.8		$	95.4		$	5.4		6	%	$	47.5		$	43.4		$	4.1			10	%
Cost of services and fulfillment as a percentage of total Revenues		40.8	%		39.3	%		1.5		4	%
Cost of services and fulfillment as a percentage of total revenues													41.7	%		40.8	%		0.9			2	%
Service and fulfillment employees (at end of period)													760			786			(26	)		(3	%)

Cost of services and fulfillment expenses increased 9%10% during the three months ended September 30, 2017 compared to the prior year period and after adjusting for the effect of foreign currency fluctuations, increased 8%. The increase in dollars was primarily due to (1) a $1.4 million increase in compensation and benefit costs, resulting principally from an increase in employees compared to the prior year period and annual merit increases, (2) a $0.3 million increase in event expenses and (3) a $0.5 million increase in professional services costs.

Cost of services and fulfillment expenses increased 6% during the nine months ended September 30, 2017 compared to the prior year period and after adjusting for the effect of foreign currency fluctuations, increased 7%. The increase in dollars was primarily due to (1) a $2.8 million increase in compensation and benefit costs, resulting principally from an increase in employees compared to the prior year period and annual merit increases, (2) a $1.0 million increase in event expenses and (3) a $0.7 million increase in professional services costs.

~~Selling and marketing expenses increased 5% during the three months ended September 30, 2017~~March 31, 2021 compared to the prior year period. The increase ~~in dollars~~ was primarily due to (1) a $4.0 million increase in compensation and benefit costs due to reinstating incentive bonus programs that were eliminated as part of the cost-reduction measures implemented in 2020 as a result of the impact of the COVID-19 pandemic, merit increases, and severance costs, and (2) a $2.3 million increase in professional services costs primarily due to increases in outsourced services related to revenue delivery and survey costs. These increases were partially offset by a $1.5 million decrease in travel and entertainment expenses due to reduced travel as a result of the COVID-19 pandemic.

Selling and marketing expenses decreased 2% during the three months ended March 31, 2021 compared to the prior year period. The decrease was primarily due to (1) a $1.7 million decrease in travel and entertainment expenses due to reduced travel as a result of the COVID-19 pandemic, and (2) a $0.4 million decrease in bad debt expense. These decreases were partially offset by a $1.5 million increase in compensation and benefit costs ~~resulting from~~due to reinstating incentive bonus programs that were eliminated as part of the cost-reduction measures implemented in 2020 as a result of the impact of the COVID-19 pandemic, an increase in ~~sales employees, annual~~commissions expense, and merit ~~increases,~~increases.

General and administrative expenses increased 10% during the three months ended March 31, 2021 compared to the prior year period. ~~There was no material effect of foreign currency fluctuations on selling and marketing expenses during the three months ended September 30, 2017.~~

Selling and marketing expenses increased 3% during the nine months ended September 30, 2017 compared to the prior year period and after adjusting for the effect of foreign currency fluctuations, increased 4%. The increase ~~in dollars~~ was primarily due to a ~~$3.4~~$1.3 million increase in compensation and benefit costs ~~resulting from an increase~~due to reinstating incentive bonus programs that were eliminated as part of the cost-reduction measures implemented in ~~sales employees, annual~~2020 as a result of the impact of the COVID-19 pandemic and merit increases, an increase in incentive bonuses and an increase in severance costs compared to the prior year period. This increase was partially offset by a $0.8 million decrease in travel and entertainment expenses primarily resulting from a reduction inincreases.

~~Subject to the business environment, we expect our sales headcount to increase by 3% to 6% in 2017 as compared to the year ended December 31, 2016.~~

~~General and administrative expenses remained essentially flat~~ during the three months ended ~~September 30, 2017~~March 31, 2021 was consistent with the prior year period.

Amortization expense decreased by $0.8 million during the three months ended March 31, 2021 compared to the prior year period primarily due to a ~~$0.5~~certain intangible asset becoming fully amortized in 2020.

Integration costs consist of direct and incremental costs to integrate acquired companies and in 2020 primarily consisted of certain fair value adjustments, consulting, severance, accounting and tax professional fees, and expenses related to unused lease facilities.

Integration costs decreased by $2.8 million decrease in professional services expense that was offset by (1) a $0.3 million increase in stock compensation expense and (2) a $0.1 million increase in compensation and benefits costs. There was no material effect of foreign currency fluctuations on general and administrative expenses during the three months ended ~~September 30, 2017.~~

~~General and administrative expenses increased 1% during the nine months ended September 30, 2017~~March 31, 2021 compared to the prior year period ~~and after adjusting~~due to the substantial completion of the integration of SiriusDecisions, Inc. (acquired at the beginning of 2019) during 2020. Integration costs in 2021 relate to unused lease facilities from the SiriusDecisions acquisition.

We expect to incur integration costs in a range of $0.3 million to $0.5 million for the ~~effect~~year ending December 31, 2021.

Interest expense consists of ~~foreign currency fluctuations, increased 2%. The increase in dollars was primarily due to (1) a $0.8~~interest on our borrowings and realized gains (losses) on the related interest rate swap. Interest expense decreased by $0.4 million ~~increase in compensation and benefit costs resulting from an increase in headcount and annual merit increases~~during the three months ended March 31, 2021 compared to the prior year period (2) a $0.6 million increase in stock compensation costs and (3) a $0.2 million increase in hiring and relocation expense. These increases were partially offset by a $1.4 million decrease in professional services expense.

~~Depreciation expense decreased by $0.3 million and $1.2 million during the three and nine months ended September 30, 2017, respectively, compared to the prior year periods primarily~~ due to ~~certain equipment~~lower average outstanding borrowings and ~~software assets becoming fully depreciated.~~

~~Amortization expense remained essentially consistent during the three and nine months ended September 30, 2017 compared to the prior year periods.~~

~~During the nine months ended September 30, 2016, we incurred $1.0 million of severance and related benefits costs for~~ a ~~reduction in our workforce of approximately 2% of employees across various geographies and functions. All costs under this plan were paid during 2016.~~lower effective interest rate.

Other income (expense), net primarily consists of ~~interest income on our investments as well as~~ gains ~~and losses~~(losses) on foreign ~~currency.~~currency and interest income. The decrease in other income (expense), net of ~~$0.1~~$0.8 million during the three months ended ~~September 30, 2017~~March 31, 2021 compared to the prior year period iswas primarily due to an increase in foreign currency losses. The decrease in other income, net of $0.1 million during the nine months ended September 30, 2017 compared to the prior year period is primarily due to an increase in foreign currency losses of $0.3 million that was partially offset by an increase in interest income of $0.2 million.

~~Losses~~Gain on investments, net primarily represents our share of equity method investment gains and losses from our technology-related investment funds. ~~The decrease in investment losses~~Gain on investments, net remained consistent during the three ~~and nine~~ months ended ~~September 30, 2017 is primarily due to a decrease in investment losses incurred by the underlying funds as~~March 31, 2021 compared to the prior year ~~periods.~~period.

	Nine Months Ended						Absolute			Percentage			Three Months Ended						Absolute		Percentage
	September 30,						Increase			Increase			March 31,						Increase		Increase
	2017			2016			(Decrease)			(Decrease)			2021			2020			(Decrease)		(Decrease)
Provision for income taxes (dollars in millions)	$	6.3		$	9.1		$	(2.8	)		(31	%)	$	2.0		$	—		$	2.0		100	%
Effective tax rate		32.6	%		43.4	%		(10.8	)		(25	%)		33.4	%		(3.8	%)		37.2		968	%

Income tax expense ~~for~~increased by $2.0 million during the ~~nine~~three months ended September 30, 2017 was $6.3 million resulting in an effective tax rate of 32.6% for the period. Income tax expense for the nine months ended September 30, 2016 was $9.1 million resulting in an effective tax rate of 43.4% for the period. The decrease in the effective tax rate ~~during the nine months ended September 30, 2017~~March 31, 2021 compared to the prior year period ~~was~~primarily due ~~primarily~~ to the ~~recognition of a $1.3 million benefit from the settlement of a tax audit~~increase in the first quarter of 2017 and the recognition of approximately $0.3 million of windfall tax benefits from the settlement of options and restricted stock units during the third quarter of 2017. In addition, in 2016 an additional $0.6 million of tax expense was incurred due to a valuation allowance on a capital loss generated from one of our investments.overall U.S. profitability. For the full year ~~2017,~~2021, we anticipate that our effective tax rate will be approximately ~~35%~~32%.

Our operations are grouped into three segments: Research, Consulting, and Events. These segments are based on our management structure and how management uses financial information to evaluate performance and determine how to allocate resources. Our products and services are delivered through each segment as described below. Additionally, the tables below include the reclassification of revenues for the components of our CV subscription research products, as described further in Note 1: Interim Consolidated Financial Statements in the Notes to Consolidated Financial Statements.

The Research segment includes the ~~costs~~revenues from all of our research ~~personnel who are responsible for writing the research and performing the webinars and inquiries for our Research and Connect products. In addition, the research personnel deliver~~products as well as consulting revenues from advisory services (such as ~~workshops,~~ speeches and advisory days) ~~and a portion of our project consulting services. Revenue in this segment includes only revenue from advisory services and project consulting services that are~~ delivered by our research organization. Research segment costs include the ~~research personnel~~cost of the organizations responsible for developing and delivering these products in ~~this segment.~~

~~The Product segment includes~~addition to the ~~costs~~cost of the product management organization that is responsible for product pricing and packaging and the launch of new products. In ~~addition, this segment includes~~May 2021, we announced the ~~costs~~launch of a new research portfolio called Forrester Decisions, anticipated to be available in August 2021. This new portfolio of products will help executives, functional leaders, and their teams, across technology, marketing,customer experience, sales, and product management, plan and pursue their initiatives for driving growth. The Forrester Decisions product combines the research, frameworks, models, and methodologies of our ~~Data,~~Forrester Research and SiriusDecisions Research product offerings, as well as features of our Connect and Events organizations. Revenue in this segment includes all of our revenue (including Research and Connect) except for revenue from advisory services and project consulting services that are delivered by personnel in the Research and Project Consulting segments.Analytics products.

The ~~Project~~ Consulting segment includes the revenues and the related costs of ~~the consultants that deliver the~~our project consulting organization. The project consulting organization delivers a majority of our project consulting revenue and certain advisory services. ~~Revenue in this~~

The Events segment includes the ~~project consulting revenue delivered by the consultants in this segment.~~

~~We evaluate reportable segment performance and allocate resources based on segment~~ revenues and ~~expenses.~~ the costs of the organization responsible for developing and hosting in-person and virtual events.

In the first quarter of 2017, we modified our internal reporting for the Research and Project Consulting segments to reflect the transfer of revenue and direct costs related to a small consulting team in Asia Pacific from Research to Project Consulting, and to remove from both Research and Project Consulting certain client support activities that are now included within selling, marketing, administrative and other expenses in the table below. Accordingly, the 2016 amounts have been reclassified to conform to the current presentation.

							Project						Research Segment			Consulting Segment			Events Segment			Consolidated
	Product			Research			Consulting			Consolidated			(dollars in thousands)
Three Months Ended September 30, 2017
Research services revenues	$	54,235		$	—		$	—		$	54,235
Advisory services and events revenues		3,353			10,379			12,402			26,134
Three Months Ended March 31, 2021
Research revenues													$	74,968		$	—		$	—		$	74,968
Consulting revenues														12,731			25,819			—			38,550
Events revenues														—			—			263			263
Total segment revenues		57,588			10,379			12,402			80,369			87,699			25,819			263			113,781
Segment expenses		9,764			11,953			6,443			28,160			(30,717	)		(12,325	)		(714	)		(43,756	)
Contribution margin (loss)		47,824			(1,574	)		5,959			52,209
Year over year revenue change		5	%		—			3	%		4	%		1	%		33	%		192	%		7	%
Year over year expense change		10	%		3	%		17	%		8	%		12	%		23	%		5	%		15	%

Project

Product

Research

Consulting

Consolidated

Nine Months Ended September 30, 2017

Research services revenues

$
160,553

$
—

$
—

$
160,553

Advisory services and events revenues

15,714

32,279

38,750

86,743

Total segment revenues

176,267

32,279

38,750

247,296

Segment expenses

32,788

36,510

18,886

88,184

Contribution margin (loss)

143,479

(4,231
)

19,864

159,112

Year over year revenue change

1
%

(3
%)

13
%

2
%
Year over year expense change

8
%

1
%

8
%

5
%


	Research Segment			Consulting Segment			Events Segment			Consolidated
	(dollars in thousands)
Three Months Ended March 31, 2020
Research revenues	$	74,267		$	—		$	—		$	74,267
Consulting revenues		12,582			19,406			—			31,988
Events revenues		—			—			90			90
Total segment revenues		86,849			19,406			90			106,345
Segment expenses		(27,464	)		(10,021	)		(677	)		(38,162	)

~~Product~~Research segment revenues increased ~~5% and~~ 1% during the three ~~and nine~~ months ended ~~September 30, 2017, respectively,~~March 31, 2021 compared to the prior year ~~periods.~~period. Research ~~services~~revenues within this segment increased 1% which primarily resulted from flat contract value growth during this period. Consulting revenues increased 3%1% within this segment due to increased delivery of advisory services.

Research segment expenses increased 12% during the three months ended ~~September 30, 2017 and remained essentially flat during the nine months ended September 30, 2017~~March 31, 2021 compared to the prior year ~~periods. The increase in research services revenues for the three months ended September 30, 2017 was principally driven by an increase in revenues for our Reprints and Connect products.~~ During the nine months ended September 30, 2017 a decline in revenues for our Data products and a slight decline in revenues for our Research products were offset by an increase in revenues for our Reprints and Connect products. Advisory services and events revenues, which is comprised of data consulting and events revenues in this segment, increased 44% and 11% during the three and nine months ended September 30, 2017, respectively, compared to the prior year periods. The increase in advisory services and events revenues during the three months ended September 30, 2017 was primarily due to a $0.4 million increase in data consulting revenues and a $0.7 million increase in Events revenues. The increase in Events revenues was primarily due to revenue from a new event held in the U.S. during the current year period that exceeded the decline in revenue resulting from the discontinuation of a small event in the Asia Pacific region. The increase in advisory services and events revenues during the nine months ended September 30, 2017 was primarily due to a $0.8 million increase in data consulting revenues and a $1.0 million increase in Events revenues. The increase in Events revenues was due to an increase in sponsorship revenues that offset having held one less event in the Asia Pacific region in the current year compared to the prior year. Product segment expenses increased 10% and 8% during the three and nine months ended September 30, 2017, respectively, compared to the prior year periods primarily due to an increase in compensation and benefit costs due to an increase in employees and an increase in events expenses driven by increased attendance at the events.

Research segment revenues remained essentially flat during the three months ended September 30, 2017 and declined 3% during the nine months ended September 30, 2017, compared to the prior year periods. During the three months ended September 30, 2017 an increase in advisory revenues was essentially offset by a decrease in consulting revenues. The decline in revenues during the nine months ended September 30, 2017 was principally due to a decrease in consulting revenues that was partially offset by a slight increase in advisory revenues. Research segment expenses increased 3% and 1% during the three and nine months ended September 30, 2017, respectively, compared to the prior year periods. The increase in expenses during the three and nine months ended September 30, 2017 was primarily due to an increase in compensation and benefit costs of $0.5 million and $0.8 million, respectively, compared to the prior year periods.

Project Consulting segment revenues increased 3% and 13% during the three and nine months ended September 30, 2017, respectively, compared to the prior year periods due primarily to growth in our content marketing group, that was partially offset by a decline in revenue from our strategic consulting group. We expect revenue growth rates to be at a single digit level for the fourth quarter of the year. Project Consulting expenses increased 17% and 8% during the three and nine months ended September 30, 2017, respectively, compared to the prior year periods. period. The increase in expenses during the three months ended March 31, 2021 was primarily due to (1) a $3.6 million increase in compensation and ~~nine~~benefit costs primarily due to reinstating incentive bonus programs that were eliminated as part of the cost-reduction measures implemented in 2020 as a result of the impact of the COVID-19 pandemic, merit increases, and severance costs and (2) a $0.9 million increase in professional services costs due to an increase in survey costs and new product development. These increases were partially offset by a $1.1 million decrease in travel and entertainment expenses due to reduced travel as a result of the COVID-19 pandemic.

Consulting segment revenues increased 33% during the three months ended ~~September 30, 2017~~March 31, 2021 compared to the prior year period driven by continued strong demand for our content marketing offerings.

Consulting segment expenses increased 23% during the three months ended March 31, 2021 compared to the prior year period. The increase in expenses during the three months ended March 31, 2021 was primarily due to (1) a $1.5 million increase in professional services primarily due to an increase in outsourced services related to revenue delivery, and (2) a $1.1 million increase in compensation and benefit costs primarily due to reinstating incentive bonus programs that were eliminated as part of ~~$0.5 million~~the cost-reduction measures implemented in 2020 as a result of the impact of the COVID-19 pandemic.

Event segment revenues and ~~$1.0 million, respectively,~~expenses remained essentially consistent during the three months ended March 31, 2021 compared to the prior year ~~periods.~~

We have historically financed our operations primarily through funds generated from operations. ~~Memberships for research services,~~Research revenues, which constituted approximately ~~65%~~66% of our revenues during the ~~nine~~three months ended ~~September 30, 2017,~~March 31, 2021, are generally renewable annually and are typically payable in advance. We generated cash from operating activities of ~~$36.9~~$40.6 million and ~~$38.3~~$21.8 million during the ~~nine~~three months ended ~~September 30, 2017~~March 31, 2021 and ~~2016,~~2020, respectively. The ~~$1.4~~$18.8 million ~~decrease~~increase in cash provided from operations for the ~~nine~~three months ended ~~September 30, 2017~~ March 31, 2021 compared to the prior year period was primarily ~~attributable~~due to a ~~$1.7~~$10.8 million ~~decrease~~reduction in cash used for working capital (excluding accounts receivable and deferred revenue) and an $8.6 million increase in cash generated from ~~working capital. The decrease in cash from working capital was primarily~~accounts receivable and deferred revenue due to ~~increases~~an increase in ~~cash used for income taxes~~contract bookings and cash used for accounts payable that were partially offset by a decrease in the use of cash for accrued salary expense resulting from a change in the timing of payroll payments. We expect cash from operating activities for the full year 2017 to be in the range of $37.0 to $41.0 million.strong collections activity.

During the ~~nine~~three months ended ~~September 30, 2017~~March 31, 2021, we ~~generated $1.4 million of~~used cash ~~from~~in investing activities ~~consisting primarily~~ of ~~$7.0~~$1.5 million ~~in net proceeds from sales and maturities of marketable investments that was partially offset by $5.8 million of~~for purchases of property and ~~equipment. Property~~equipment, primarily consisting of computer software and equipment ~~purchases during 2017 consisted primarily of computer equipment, software and leasehold improvements for our new office location in Nashville.~~. During the ~~nine~~three months ended ~~September 30, 2016,~~ March 31, 2020, we used ~~$18.9 million of~~ cash ~~from~~in investing activities ~~consisting primarily~~ of ~~$15.5~~$2.4 million ~~in net purchases of marketable investments and $3.3 million of~~for purchases of property and ~~equipment. Property and~~ equipment, ~~purchases during 2016 consisted~~ primarily consisting of computer ~~equipment~~software and ~~software.~~leasehold improvements.

We used ~~$38.8~~$1.0 million of cash from financing activities during the ~~nine~~three months ended ~~September 30, 2017~~March 31, 2021 primarily due to ~~the use~~$3.1 million of ~~$40.0 million for purchases~~repayments of our common stock and $10.2 million for the payment of dividends, at $0.19 per share in each of the first three quarters of 2017 as well as $2.5 million in taxes paid related to net share settlements of restricted stock units, which wereterm loan, partially offset by ~~$13.9~~$2.1 million of net proceeds from the ~~exercise~~issuance of common stock ~~options and~~under our ~~employee stock purchase plan.~~stock-based incentive plans. We used ~~$1.8~~$15.3 million of cash ~~from~~in financing activities during the ~~nine~~three months ended ~~September 30, 2016~~ March 31, 2020 primarily ~~for~~due to $16.3 million of repayments of debt that included $14.0 million of discretionary payments on our revolving credit facility.

We entered into a $200.0 million credit agreement on January 3, 2019. The credit agreement provides for: (1) senior secured term loans in an aggregate principal amount of $125.0 million (the “Term Loans”) and, (2) a senior secured revolving credit facility in an aggregate principal amount of $75.0 million (the “Revolving Credit Facility” and, together with the ~~payment~~Term Loans, the “Facilities”). Additional information is provided in Note 3 – Debt in the Notes to Consolidated Financial Statements. The Facilities mature on January 3, 2024. As of ~~dividends~~March 31, 2021, we had remaining principal payments on the Facilities totaling ~~$9.7~~$106.3 million, ~~at $0.18 per share~~contractually due as follows: $9.4 million in ~~each~~2021, $28.1 million within 2022 and 2023, and $68.8 million in 2024. We were in full compliance with the covenants as of March 31, 2021 and expect to continue to be in compliance through the next 12 months.

The Facilities contain certain customary restrictive loan covenants, including among others, financial covenants that apply a maximum leverage ratio and minimum fixed charge coverage ratio. The negative covenants limit, subject to various exceptions, our ability to incur additional indebtedness, create liens on assets, merge, consolidate, liquidate or dissolve any part of the ~~first three quarters~~Company, sell assets, pay dividends or other payments in respect to capital stock, change fiscal year, or enter into certain transactions with affiliates and subsidiaries.

Additional future contractual cash obligations extending over the next 12 months and beyond primarily consist of ~~2016,~~operating lease payments. We lease office space under non-cancellable operating lease agreements (refer to Note 4 – Leases in the Notes to Consolidated Financial Statements for additional information). The remaining duration of non-cancellable office space leases ranges from less than 1 year to 11 years. As of March 31, 2021, remaining non-cancelable lease payments are due as ~~well as $2.1~~follows: $11.6 million in ~~taxes paid related~~2021, $33.2 million within 2022 and 2023, $30.4 million within 2024 and 2025, and $27.1 million beyond 2025.

In addition to ~~net share settlements of restricted stock units, which was partially offset by $10.0 million of proceeds from~~ the ~~exercise of stock options~~contractual cash commitments included above, we have other payables and ~~our employee stock purchase plan.~~liabilities that may be legally enforceable but are not considered contractual commitments.

As of ~~September 30, 2017 our remaining stock repurchase authorization was approximately $20.1 million. We plan to repurchase our common stock as market conditions warrant.~~

~~As of September 30, 2017,~~March 31, 2021, we had cash and cash equivalents of ~~$80.0 million and marketable investments of $54.0~~$125.6 million. ~~These balances include $61.6~~This balance includes $60.2 million held outside of the U.S. If ~~these funds~~the cash outside of the U.S. ~~are~~is needed for operations in the U.S., we would be required to accrue and pay U.S. state taxes and may be required to pay withholding taxes to foreign jurisdictions to repatriate these funds. However, our intent is to permanently reinvest these funds outside of the U.S. and our current plans do not demonstrate a need to repatriate these funds for our U.S. operations. We ~~do not currently have a line of credit and do not presently anticipate the need to access a line of credit in the foreseeable future except in the case of a significant acquisition. We~~ believe that our current cash balance ~~marketable investments,~~ and cash flows from operations will satisfy working capital, financing activities, and capital expenditure requirements for the next twelve months.

~~There have been no material changes to the contractual obligations table as disclosed in our Annual Report on Form 10-K for the year ended December 31, 2016.~~

~~See~~Refer to Note 1 ~~and Note 10 of~~– Interim Consolidated Financial Statements in the Notes to Consolidated Financial Statements for a full description of recent accounting pronouncements including the expected dates of adoption and effects on results of operations and financial condition.

ITEM 3. QUANTITATIVE AND ~~QUALITATIVE~~QUALITATIVE DISCLOSURES ABOUT MARKET RISK

There have been no material changes in our assessment of our sensitivity to market risk since our presentation set forth in Item 7A, “Quantitative and Qualitative Disclosures About Market Risk,” in our Annual Report on Form 10-K for the year ended December 31, ~~2016.~~2020.

We maintain “disclosure controls and procedures,” as such term is defined under Securities Exchange Act Rule 13a-15(e), that are designed to ensure that information required to be disclosed in our Exchange Act reports is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosures. In designing and evaluating the disclosure controls and procedures, our management recognized that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives and our management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures. Our management, with the participation of our principal executive officer and principal financial officer, has evaluated the effectiveness of our disclosure controls and procedures as of ~~September 30, 2017.~~March 31, 2021. Based upon their evaluation and subject to the foregoing, the principal executive officer and principal financial officer concluded that our disclosure controls and procedures were effective to provide reasonable assurance as of that date.

~~There~~Except as noted below, there was no change in our internal control over financial reporting (as defined in Rules 13a-15(f) ~~and 15d-15(f) under~~of the Exchange Act) that occurred during the quarter ended ~~September 30, 2017 that~~March 31, 2021, which has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

In response to COVID-19, we have undertaken measures to protect our employees, partners, and clients, including encouraging employees to work remotely. These changes have compelled us to modify some of our control procedures. However, these changes have so far not been material.

From time to time, we may be subject to legal proceedings and civil and regulatory claims that arise in the ordinary course of our business activities. Regardless of the outcome, litigation can have a material adverse effect on us because of defense and settlement costs, diversion of management resources, and other factors.

In addition to the other information set forth in this Form 10-Q, you should carefully consider the factors discussed in Part I, “Item 1A: Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, ~~2016,~~2020, which could materially affect our business, financial condition or future results. The risk factors described in our Annual Report on Form 10-K remain applicable to our business. The risks described in our Annual Report on Form 10-K are not the only risks that we face. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition and/or operating results.

Through ~~September 30, 2017,~~March 31, 2021, our Board of Directors authorized an aggregate ~~$485.0~~$535.0 million to purchase common stock under our stock repurchase program. During the quarter ended ~~September 30, 2017,~~March 31, 2021, we ~~purchased the following~~did not purchase any shares of our common stock under the stock repurchase ~~program:~~program.

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

~~DELAWARE~~Delaware		04-2797789
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification Number)

60 Acorn Park Drive ~~CAMBRIDGE, MASSACHUSETTS~~Cambridge, Massachusetts		02140 (Zip Code)
(Address of principal executive offices)		~~(Zip Code)~~

Title of Each Class		Trading Symbol(s)		Name of Each Exchange on Which Registered
Common Stock, $.01 Par Value		FORR		Nasdaq Global Select Market

Large accelerated filer	☐	Accelerated filer	☒

Non-accelerated filer	☐ ~~(Do not check if a smaller reporting company)~~	Smaller reporting company	☐
Emerging growth company	☐

		~~PAGE~~Page
PART I	FINANCIAL INFORMATION
Item 1.	~~PART I. FINANCIAL INFORMATION~~Financial Statements (Unaudited)	3
	4
~~ITEM 1. Financial Statements (Unaudited)~~		4
Consolidated Balance Sheets as of ~~September 30, 2017~~March 31, 2021 and December 31, ~~2016~~2020	3
	4
Consolidated Statements of ~~Income~~Operations for the ~~Three~~three months ended March 31, 2021 and ~~Nine Months Ended September 30, 2017 and 2016~~2020	4
	5
Consolidated Statements of Comprehensive Income (Loss) for the ~~Three~~three months ended March 31, 2021 and ~~Nine Months Ended September 30, 2017 and 2016~~2020	5
	6
Consolidated Statements of Cash Flows for the ~~Nine Months Ended September 30, 2017~~three months ended March 31, 2021 and ~~2016~~2020	6
	7
Notes to Consolidated Financial Statements		8	7
Item 2.	~~ITEM 2.~~ Management’s Discussion and Analysis of Financial Condition and Results of Operations		17	19
Item 3.	~~ITEM 3.~~ Quantitative and Qualitative Disclosures About Market Risk	26
Item 4.	Controls and Procedures	26
	26
~~ITEM 4. Controls and Procedures~~PART II		26OTHER INFORMATION
~~PART II. OTHER INFORMATION~~Item 1.	Legal Proceedings	27
~~ITEM~~Item 1A. ~~Risk Factors~~	Risk Factors	27
Item 2.	~~ITEM 2.~~ Unregistered Sales of Equity Securities and Use of Proceeds	27
Item 3.	Defaults Upon Senior Securities	27
Item 4.	Mine Safety Disclosures	27
Item 5.	Other Information	27
Item 6.	Exhibits	28
	27
~~ITEM 6. Exhibits~~SIGNATURES			28	29

	March 31, 2021
	Gross				Net
	Carrying		Accumulated		Carrying
	Amount		Amortization		Amount
Amortizable intangible assets:
Customer relationships	$	78,375	$	19,384	$	58,991
Technology		16,740		10,929		5,811
Trademarks		12,463		3,367		9,096
Total	$	107,578	$	33,680	$	73,898


☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934.


☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934.

	Three Months Ended March 31,
	2021		2020
Cash and cash equivalents	$	125,600	$	69,815
Restricted cash classified in (1):
Prepaid expenses and other current assets		360		787
Other assets		2,306		38
Cash, cash equivalents and restricted cash shown in statement of cash flows	$	128,266	$	70,640

	December 31, 2020
	Gross				Net
	Carrying		Accumulated		Carrying
	Amount		Amortization		Amount
Amortizable intangible assets:
Customer relationships	$	78,450	$	17,277	$	61,173
Technology		16,956		10,197		6,759
Trademarks		12,495		2,432		10,063
Total	$	107,901	$	29,906	$	77,995

2021 (remainder)	$	11,212
2022		13,179
2023		11,938
2024		9,895
2025		8,879
Thereafter		18,795
Total	$	73,898

2021 (remainder)		9,375
2022		12,500
2023		15,625
2024		68,750
Total remaining principal payments	$	106,250

Description:	March 31, 2021			December 31, 2020
Principal amount outstanding (1) (2)	$	106,250		$	109,375
Less: Deferred financing fees		(1,431	)		(1,576	)
Net carrying amount	$	104,819		$	107,799

	For the Three Months Ended March 31,
	2021			2020
Operating lease cost	$	3,819		$	3,991
Short-term lease cost		88			81
Variable lease cost		1,436			1,356
Sublease income		(61	)		(61	)
Total lease cost	$	5,282		$	5,367

2021 (remainder)	$	11,642
2022		16,623
2023		16,582
2024		16,208
2025		14,233
Thereafter		27,076
Total lease payments		102,364
Less imputed interest		(15,623	)
Present value of lease liabilities	$	86,741

Operating lease ROU assets	$	73,810

Short-term operating lease liabilities (1)	$	12,174
Non-current operating lease liabilities		74,567
Total operating lease liabilities	$	86,741

	For the Three Months Ended March 31,
Revenues: (1)	2021		2020
North America	$	90,896	$	88,410
Europe		15,081		11,787
Asia Pacific		6,393		5,051
Other		1,411		1,097
Total	$	113,781	$	106,345

	Total Allowance
Balance at December 31, 2020	$	708
Provision for expected credit losses		86
Write-offs		(63	)
Balance at March 31, 2021	$	731

	For the Three Months Ended
	March 31,
Amount recorded in:	2021			2020
Interest expense (1)	$	(259	)	$	13
Total	$	(259	)	$	13

							Total
	Net Unrealized Gain			Cumulative			Accumulated
	(Loss) on Marketable			Translation			Other Comprehensive
	Investments			Adjustment			Income (Loss)
Balance at January 1, 2017	$	(83	)	$	(7,490	)	$	(7,573	)
Foreign currency translation		—			4,905			4,905
Unrealized gain on investments, net of tax of $29		47			—			47
Balance at September 30, 2017	$	(36	)	$	(2,585	)	$	(2,621	)

	As of September 30, 2017
			Gross		Gross
	Amortized		Unrealized		Unrealized			Market
	Cost		Gains		Losses			Value
Federal agency obligations	$	1,800	$	—	$	(4	)	$	1,796
Corporate obligations		52,277		7		(61	)		52,223
Total	$	54,077	$	7	$	(65	)	$	54,019

	As of December 31, 2016
			Gross		Gross
	Amortized		Unrealized		Unrealized			Market
	Cost		Gains		Losses			Value
Federal agency obligations	$	1,800	$	—	$	(7	)	$	1,793
Corporate obligations		59,481		2		(129	)		59,354
Total	$	61,281	$	2	$	(136	)	$	61,147

	FY 2017		FY 2018		FY 2019		Total
Federal agency obligations	$	—	$	1,796	$	—	$	1,796
Corporate obligations		4,000		28,559		19,664		52,223
Total	$	4,000	$	30,355	$	19,664	$	54,019

	As of September 30, 2017
	Less Than 12 Months				12 Months or Greater
	Market		Unrealized		Market		Unrealized
	Value		Losses		Value		Losses
Federal agency obligations	$	-	$	—	$	1,796	$	4
Corporate obligations		25,039		30		17,640		31
Total	$	25,039	$	30	$	19,436	$	35


	Interest Rate			Translation
	Swap			Adjustment			Total AOCI/L
Balance at December 31, 2020	$	(821	)	$	131		$	(690	)
Foreign currency translation (1)		—			(2,301	)		(2,301	)
Unrealized gain before reclassification, net of tax of $(1)		4			—			4
Reclassification of AOCI/L to income, net of tax of $(73) (2)		186			—			186
Balance at March 31, 2021	$	(631	)	$	(2,170	)	$	(2,801	)

				Weighted-
				Average
	Number of			Grant Date
	Shares			Fair Value
Unvested at December 31, 2020		642		$	38.99
Granted		7			46.04
Vested		(38	)		41.24
Forfeited		(13	)		39.44
Unvested at March 31, 2021		598		$	38.93

					Maximum Dollar
					Value that May
					Yet be Purchased
	Total Number of		Average Price		Under the Stock
Period	Shares Purchased (1)		Paid per Share		Repurchase Program
					(In thousands)
July 1 - July 30		32,065	$	39.69
August 1 - August 31		26,468	$	39.82
September 1 - September 30		30,359	$	40.01
		88,892			$	20,100

3.1		Restated Certificate of Incorporation of Forrester Research, Inc. (see Exhibit 3.1 to Registration Statement on Form S-1A filed on November 5, 1996)

3.2		Certificate of Amendment of the Certificate of Incorporation of Forrester Research, Inc. (see Exhibit 3.1 to Annual Report on Form 10-K for the year ended December 31, 1999)

3.3		Certificate of Amendment to Restated Certificate of Incorporation of Forrester Research, Inc.

3.4		Amended and Restated By-Laws of Forrester Research, Inc.

4.1		Specimen Certificate for shares of Common Stock, $.01 par value, of Forrester Research, Inc. (see Exhibit 4 to Registration Statement on Form S-1A filed on November 5, 1996)

31.1		Certification of the Principal Executive Officer. (filed herewith)

31.2		Certification of the Principal Financial Officer. (filed herewith)

32.1		Certification of the Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. (furnished herewith)

32.2		Certification of the Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. (furnished herewith)

101.INS		Inline XBRL Instance ~~Document.~~Document – the instance document does not appear in the Interactive Data File because XBRL tags are embedded within the Inline XBRL document. (filed herewith)

101.SCH		Inline XBRL Taxonomy Extension ~~Schema.~~Schema Document. (filed herewith)

101.CAL		Inline XBRL Taxonomy Extension Calculation ~~Linkbase.~~Linkbase Document. (filed herewith)

101.DEF		Inline XBRL Taxonomy Extension Definition ~~Linkbase.~~Linkbase Document. (filed herewith)

101.LAB		Inline XBRL Taxonomy Extension Label ~~Linkbase.~~Linkbase Document. (filed herewith)

101.PRE		Inline XBRL Taxonomy Extension Presentation ~~Linkbase.~~Linkbase Document. (filed herewith)

104		Cover Page Interactive Data File (embedded within the Inline XBRL Document). (filed herewith)

FORRESTER RESEARCH, INC.

By:		/s/ ~~Michael A. Doyle~~SCOTT R. CHOUINARD
		~~Michael A. Doyle~~Scott R. Chouinard
		Interim Chief Financial Officer (Principal financial and accounting officer)

~~Exhibit~~ ~~No.~~		~~Document~~

~~31.1~~		~~Certification of the Principal Executive Officer. (filed herewith)~~

~~31.2~~		~~Certification of the Principal Financial Officer. (filed herewith)~~

~~32.1~~		~~Certification of the Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. (furnished herewith)~~

~~32.2~~		~~Certification of the Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. (furnished herewith)~~

~~101.INS~~		~~XBRL Instance Document. (filed herewith)~~

~~101.SCH~~		~~XBRL Taxonomy Extension Schema. (filed herewith)~~

~~101.CAL~~		~~XBRL Taxonomy Extension Calculation Linkbase. (filed herewith)~~

~~101.DEF~~		~~XBRL Taxonomy Extension Definition Linkbase. (filed herewith)~~

~~101.LAB~~		~~XBRL Taxonomy Extension Label Linkbase. (filed herewith)~~

~~101.PRE~~		~~XBRL Taxonomy Extension Presentation Linkbase. (filed herewith)~~