Document and Entity Information
Document and Entity Information - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Mar. 04, 2024 | Jun. 30, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2023 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | FORR | ||
Entity Registrant Name | Forrester Research, Inc. | ||
Entity Central Index Key | 0001023313 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 19,394,000 | ||
Entity Public Float | $ 340,000,000 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity Incorporation, State or Country Code | DE | ||
Entity File Number | 000-21433 | ||
Entity Tax Identification Number | 04-2797789 | ||
Entity Address, Address Line One | 60 Acorn Park Drive | ||
Entity Address, City or Town | Cambridge | ||
Entity Address, State or Province | MA | ||
Entity Address, Postal Zip Code | 02140 | ||
City Area Code | 617 | ||
Local Phone Number | 613-6000 | ||
Title of 12(b) Security | Common Stock, $0.01 Par Value | ||
Security Exchange Name | NASDAQ | ||
Entity Interactive Data Current | Yes | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction Flag | false | ||
Auditor Name | PricewaterhouseCoopers LLP | ||
Auditor Location | Boston, Massachusetts | ||
Auditor Firm ID | 238 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Current Assets: | ||
Cash and cash equivalents shown in balance sheets | $ 72,909 | $ 103,629 |
Marketable investments (Note 2) | 51,580 | 19,688 |
Accounts receivable, net of allowance for expected credit losses of $574 and $560 as of December 31, 2023 and 2022, respectively (Note 1,13) | 58,999 | 73,345 |
Deferred commissions | 23,207 | 24,559 |
Prepaid expenses and other current assets | 9,305 | 14,069 |
Total current assets | 216,000 | 235,290 |
Property and equipment, net | 19,401 | 23,208 |
Operating lease right-of-use assets | 39,722 | 49,970 |
Goodwill | 244,257 | 242,149 |
Intangible assets, net | 37,637 | 49,504 |
Other assets | 7,157 | 8,317 |
Total assets | 564,174 | 608,438 |
Current Liabilities: | ||
Accounts payable | 1,796 | 361 |
Accrued expenses and other current liabilities | 81,482 | 91,007 |
Deferred revenue | 156,798 | 178,021 |
Total current liabilities | 240,076 | 269,389 |
Long-term debt | 35,000 | 50,000 |
Non-current operating lease liabilities | 37,673 | 50,751 |
Other non-current liabilities (Note 13) | 11,160 | 16,642 |
Total liabilities | 323,909 | 386,782 |
Commitments and contingencies (Note14) | ||
Stockholders' Equity: | ||
Preferred stock, $0.01 par value Authorized - 500 shares; issued and outstanding - none | 0 | 0 |
Common stock, $0.01 par value Authorized - 125,000 shares Issued - 24,684 and 24,367 shares as of December 31, 2023 and 2022, respectively Outstanding - 19,248 and 19,062 shares as of December 31, 2023 and 2022, respectively | 247 | 244 |
Additional paid-in capital | 278,057 | 261,766 |
Retained earnings | 177,681 | 174,631 |
Treasury stock - 5,437 and 5,305 shares as of December 31, 2023 and 2022, respectively | (211,149) | (207,067) |
Accumulated other comprehensive loss | (4,571) | (7,918) |
Total stockholders’ equity | 240,265 | 221,656 |
Total liabilities and stockholders’ equity | $ 564,174 | $ 608,438 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for expected credit losses | $ 574 | $ 560 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 500,000 | 500,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 125,000,000 | 125,000,000 |
Common stock, shares issued | 24,684,000 | 24,367,000 |
Common stock, shares outstanding | 19,248,000 | 19,062,000 |
Treasury stock, shares | 5,437,000 | 5,305,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenues: | |||
Total revenues | $ 480,779 | $ 537,787 | $ 494,315 |
Operating expenses: | |||
Cost of services and fulfillment | 204,484 | 223,773 | 201,815 |
Selling and marketing | 167,352 | 181,940 | 170,949 |
General and administrative | 68,497 | 67,655 | 58,056 |
Depreciation | 8,452 | 9,269 | 9,390 |
Amortization of intangible assets | 11,956 | 13,161 | 15,129 |
Integration costs | 0 | 0 | 334 |
Restructuring costs | 13,272 | 9,335 | 0 |
Total operating expenses | 474,013 | 505,133 | 455,673 |
Income from operations | 6,766 | 32,654 | 38,642 |
Interest expense | (3,060) | (2,461) | (4,222) |
Other income (expense), net | 2,371 | 222 | (1,229) |
Gains on investments, net | 208 | 309 | 0 |
Income before income taxes | 6,285 | 30,724 | 33,191 |
Income tax expense | 3,235 | 8,918 | 8,347 |
Net income | $ 3,050 | $ 21,806 | $ 24,844 |
Basic income per common share | $ 0.16 | $ 1.15 | $ 1.3 |
Diluted income per common share | $ 0.16 | $ 1.14 | $ 1.28 |
Basic weighted average common shares outstanding | 19,183 | 18,967 | 19,110 |
Diluted weighted average common shares outstanding | 19,258 | 19,172 | 19,357 |
Research [Member] | |||
Revenues: | |||
Total revenues | $ 334,396 | $ 354,453 | $ 325,340 |
Consulting [Member] | |||
Revenues: | |||
Total revenues | 118,228 | 152,587 | 156,114 |
Events [Member] | |||
Revenues: | |||
Total revenues | $ 28,155 | $ 30,747 | $ 12,861 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 3,050 | $ 21,806 | $ 24,844 |
Other comprehensive income (loss), net of tax: | |||
Foreign currency translation | 3,248 | (4,807) | (3,083) |
Net change in market value of interest rate swap | 0 | 212 | 609 |
Net change in market value of investments | 99 | (134) | (25) |
Other comprehensive income (loss) | 3,347 | (4,729) | (2,499) |
Comprehensive income | $ 6,397 | $ 17,077 | $ 22,345 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | |
Beginning Balance at Dec. 31, 2020 | $ 185,766 | $ 236 | $ 230,128 | $ 127,981 | $ (171,889) | $ (690) | |
Beginning Balance, Shares at Dec. 31, 2020 | 23,648 | 4,631 | |||||
Issuance of common stock under stock plans, including tax effects | 5,792 | $ 5 | 5,787 | ||||
Issuance of common stock under stock plans, including tax effects, Shares | 437 | ||||||
Repurchases of common stock | (20,066) | $ (20,066) | |||||
Repurchase of common stock, Shares | 396 | ||||||
Stock-based compensation expense | 10,070 | 10,070 | |||||
Net Income (Loss) | 24,844 | 24,844 | |||||
Net change in interest rate swap, net of tax | 609 | 609 | |||||
Net change in marketable investments, net of tax | (25) | (25) | |||||
Foreign currency translation | (3,083) | (3,083) | [1] | ||||
Ending Balance at Dec. 31, 2021 | 203,907 | $ 241 | 245,985 | 152,825 | $ (191,955) | (3,189) | |
Ending Balance, Shares at Dec. 31, 2021 | 24,085 | 5,027 | |||||
Issuance of common stock under stock plans, including tax effects | 1,241 | $ 3 | 1,238 | ||||
Issuance of common stock under stock plans, including tax effects, Shares | 282 | ||||||
Repurchases of common stock | (15,112) | $ (15,112) | |||||
Repurchase of common stock, Shares | 278 | ||||||
Stock-based compensation expense | 14,543 | 14,543 | |||||
Net Income (Loss) | 21,806 | 21,806 | |||||
Net change in interest rate swap, net of tax | 212 | 212 | |||||
Net change in marketable investments, net of tax | (134) | (134) | |||||
Foreign currency translation | (4,807) | (4,807) | [1] | ||||
Ending Balance at Dec. 31, 2022 | 221,656 | $ 244 | 261,766 | 174,631 | $ (207,067) | (7,918) | |
Ending Balance, Shares at Dec. 31, 2022 | 24,367 | 5,305 | |||||
Issuance of common stock under stock plans, including tax effects | 808 | $ 3 | 805 | ||||
Issuance of common stock under stock plans, including tax effects, Shares | 317 | ||||||
Repurchases of common stock | (4,082) | $ (4,082) | |||||
Repurchase of common stock, Shares | 132 | ||||||
Stock-based compensation expense | 15,486 | 15,486 | |||||
Net Income (Loss) | 3,050 | 3,050 | |||||
Net change in marketable investments, net of tax | 99 | 99 | |||||
Foreign currency translation | 3,248 | 3,248 | [1] | ||||
Ending Balance at Dec. 31, 2023 | $ 240,265 | $ 247 | $ 278,057 | $ 177,681 | $ (211,149) | $ (4,571) | |
Ending Balance, Shares at Dec. 31, 2023 | 24,684 | 5,437 | |||||
[1] The Company does not record tax provisions or benefits for the net changes in foreign currency translation adjustments as it intends to permanently reinvest undistributed earnings of its foreign subsidiaries. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities: | |||
Net income | $ 3,050 | $ 21,806 | $ 24,844 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 8,452 | 9,269 | 9,390 |
Impairment of property and equipment | 726 | 1,296 | 0 |
Amortization of intangible assets | 11,956 | 13,161 | 15,129 |
Net gains from investments | (208) | (309) | 0 |
Deferred income taxes | (5,461) | (6,652) | (275) |
Stock-based compensation | 15,486 | 14,543 | 10,070 |
Operating lease right-of-use assets amortization and impairments | 11,658 | 14,511 | 11,415 |
Amortization of deferred financing fees | 446 | 443 | 920 |
Amortization of premium (discount) on investments | (300) | (3) | 65 |
Foreign currency losses | 254 | 239 | 1,439 |
Changes in assets and liabilities | |||
Accounts receivable | 14,715 | 12,835 | (3,898) |
Deferred commissions | 1,352 | 5,070 | (6,010) |
Prepaid expenses and other current assets | 6,020 | 4,374 | (1,283) |
Accounts payable | 1,428 | (461) | 201 |
Accrued expenses and other liabilities | (10,644) | (6,102) | 20,426 |
Deferred revenue | (23,279) | (31,656) | 36,007 |
Operating lease liabilities | (13,978) | (12,939) | (11,373) |
Net cash provided by operating activities | 21,673 | 39,425 | 107,067 |
Cash flows from investing activities: | |||
Purchases of property and equipment | (5,495) | (5,663) | (10,745) |
Purchases of marketable investments | (61,068) | (28,683) | (21,607) |
Proceeds from maturities of marketable investments | 28,338 | 27,331 | 2,000 |
Proceeds from sales of marketable investments | 1,453 | 0 | 1,000 |
Other investing activity | 13 | 201 | 56 |
Net cash used in investing activities | (36,759) | (6,814) | (29,296) |
Cash flows from financing activities: | |||
Payments on borrowings | (15,000) | (25,000) | (34,375) |
Payment of debt issuance costs | (25) | 0 | (494) |
Repurchases of common stock | (4,082) | (15,112) | (20,066) |
Proceeds from issuance of common stock under employee equity incentive plans | 3,489 | 4,352 | 9,165 |
Taxes paid for net share settlements of stock-based compensation awards | (2,681) | (3,111) | (3,373) |
Net cash used in financing activities | (18,299) | (38,871) | (49,143) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 2,773 | (6,117) | (1,249) |
Net increase (decrease) in cash, cash equivalents and restricted cash | (30,612) | (12,377) | 27,379 |
Cash, cash equivalents and restricted cash, beginning of year | 105,654 | 118,031 | 90,652 |
Cash, cash equivalents and restricted cash, end of year | 75,042 | 105,654 | 118,031 |
Supplemental disclosure of cash flow information: | |||
Cash paid for interest | 2,596 | 2,015 | 3,279 |
Cash paid for income taxes | $ 10,643 | $ 8,901 | $ 9,815 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pay vs Performance Disclosure | |||
Net Income (Loss) | $ 3,050 | $ 21,806 | $ 24,844 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 1 – Summary of Significant Accounting Policies Basis of Presentation Forrester Research, Inc. is a global independent research and advisory firm. The Company helps leaders across technology, customer experience, marketing, sales and product functions use customer obsession to accelerate growth. Through Forrester’s proprietary research, consulting, and events, leaders from around the globe are empowered to be bold at work, navigate change, and put their custome rs at the center of their leadership, strategy, and operations. The Company’s unique insights are grounded in annual surveys of more than 700,000 consumers, business leaders, and technology leaders worldwide, rigorous and objective research methodologies, over 100 million r eal-time feedback votes, and the shared wisdom of our clients. The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for reporting on Form 10-K. The Company’s fiscal year is the twelve months from January 1 through December 31 and all references to 2023, 2022, and 2021 refer to the fiscal year unless otherwise noted. Principles of Consolidations The accompanying consolidated financial statements include the accounts of Forrester and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. Management Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Forrester considers the more significant of these estimates to be revenue recognition, ongoing impairment reviews of goodwill, intangible and other long-lived assets, and income taxes. On an ongoing basis, management evaluates its estimates. Actual results could differ from these estimates. Adoption of New Accounting Pronouncements 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. Fai r Value Measurements The carrying amounts reflected in the Consolidated Balance Sheets for cash, certain cash equivalents, accounts receivable, accounts payable, and accrued expenses approximate fair value due to their short-term maturities. The Company’s financial instruments also include its outstanding variable-rate borrowings (refer to Note 4 – Debt ). The Company believes that the carrying amount of its variable-rate borrowings reasonably approximate their fair values because the rates of interest on those borrowings reflect current market rates of interest. Additionally, the Company has certain financial assets and liabilities recorded at fair value at each balance sheet date, including cash equivalents and marketable investments, in accordance with the accounting standards for fair value measurements. Refer to Note 7 – Fair Value Measurements for the Company’s fair value disclosures. Cash, Cash Equivalents, and Marketable Investments Forrester considers all short-term, highly liquid investments with original maturities at the time of purchase of 90 days or less to be cash equivalents, inclusive of the Company's U.S. based money market funds. The Company’s portfolio of investments may at any time include securities of U.S. government agencies, municipal notes and bonds, corporate notes and bonds, commercial paper, and money market funds based outside of the U.S. Marketable investments are classified as current assets as they are available for use in current operations. Forrester accounts for all marketable investments as available-for-sale securities and as such, the marketable investments are carried at fair value with unrealized gains and losses (not related to credit losses) recorded in accumulated other comprehensive loss in the Consolidated Balance Sheets. Realized gains and losses on securities are included in earnings and are determined using the specific identification method. The Company conducts periodic reviews to identify and evaluate each investment that has an unrealized loss, in accordance with the meaning of other-than-temporary impairment and its application to certain investments, as required under the accounting standards. Unrealized losses on available-for-sale securities that are determined to be temporary, and not related to credit loss, are recorded, net of tax, in accumulated other comprehensive loss. During the years ended December 31, 2023, 2022, and 2021, the Company did not record any other-than-temporary impairment losses on its available-for-sale securities. The Company did not realize any gains or losses from the Company's available-for-sale securities during the years ended December 31, 2023, 2022, and 2021 . Presentation of Restricted Cash 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 in the accompanying Consolidated Statements of Cash Flows (in thousands). For the Year Ended December 31, 2023 2022 Cash and cash equivalents shown in balance sheets $ 72,909 $ 103,629 Restricted cash classified in other assets (1): 2,133 2,025 Cash, cash equivalents and restricted cash shown in statement of cash flows $ 75,042 $ 105,654 (1) Restricted cash consists of collateral required for leased office space. The short-term or long-term classification regarding the collateral for the leased office space is determined in accordance with the expiration of the underlying leases. Concentrations of Credit Risk Financial instruments that potentially subject Forrester to concentrations of credit risk are principally cash, cash equivalents, marketable investments, accounts receivable, and foreign currency forward exchange contracts. The Company limits its risk exposure by having its cash, cash equivalents, and foreign currency forward exchange contracts with large commercial banks and by diversifying counterparties. No single customer accounted for greater th an 4 % of revenues or 2% of accounts receivable in any of the periods presented. Forrester does not have any off-balance sheet arrangements. Business Acquisitions Forrester accounts for business combinations in accordance with the acquisition method of accounting as prescribed by FASB ASC Topic 805, Business Combinations . The acquisition method of accounting requires the Company to record the assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date, with any excess of the consideration transferred over the estimated fair value of the net assets acquired, including identifiable intangible assets, to be recorded to goodwill. The Company did no t consummate a business combination during the years ended December 31, 2023, 2022, and 2021 . Goodwill 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. Reporting units are determined based on the components of the Company's operating segments that constitute a business for which financial information is available and for which operating results are regularly reviewed by segment management. 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. When performing an impairment assessment, the Company either uses a qualitative assessment, to determine if it is more likely than not that the estimated fair value of any reporting unit is less than its carrying amount, or a quantitative analysis, to determine and compare the fair value of each reporting unit to its carrying value, or a combination of both. An impairment of goodwill is recognized to the extent that the carrying amount of a reporting unit exceeds its estimated fair value. Absent an event that indicates a specific impairment may exist, the Company has selected November 30th as the date for performing the annual goodwill impairment test. Goodwill impairment charges have no t been required for the years ended December 31, 2023, 2022 and 2021 . Impairment of Other Long-Lived Tangible and Intangible Assets Other long-lived assets primarily consist of property and equipment, operating lease right-of-use assets, and intangible assets. The Company periodically evaluates the recoverability of other long-lived assets whenever events and changes in circumstances indicate that the carrying amount of an asset may not be fully recoverable. When indicators of impairment are present, the carrying values of the asset group are evaluated in relation to the future undiscounted cash flows of the underlying business. The net book value of the underlying asset is adjusted to fair value if the sum of the expected discounted cash flows is less than book value. Fair values are based on estimates of market prices and assumptions concerning the amount and timing of estimated future cash flows and assumed discount rates, reflecting varying degrees of perceived ri sk. The Company recorded $ 2.6 million and $ 5.0 million of long-lived asset impairment charges during 2023 and 2022, respectively (refer to Note 5 – Leases ). No imp airment charges were recorded during 2021. Non-Current Liabilities The Company records deferred tax liabilities and other liabilities that are expected to be settled over a period that exceeds one year as non-current liabilities. Foreign Currency The functional currency of Forrester’s wholly-owned subsidiaries is their respective local currency. These subsidiary financial statements are translated to U.S. dollars using period-end exchange rates for assets and liabilities and average exchange rates during the corresponding period for revenues and expenses, with translation gains and losses recorded as a component of accumulated other comprehensive loss in the Consolidated Balance Sheets. Gains and losses related to the remeasurement of monetary assets and liabilities denominated in a currency other than an entity’s functional currency are included in other income (expense), net in the Consolidated Statements of Operations. Forrester recorded $ 0.3 million, $ 0.2 million, and $ 1.4 million of foreign exchange losses durin g 2023, 2022, and 2021 , respectively. Revenue The Company generates all of its revenues from contracts with customers, which t otaled $ 480.8 milli on for the year ended December 31, 2023. The Company recognizes revenue when a customer obtains control of promised products or services, in an amount that reflects the consideration expected to be received in exchange for those products or services. The Company follows the five-step model prescribed under Topic 606: (i) identify the contract(s) with a customer; (ii) identify the performance obligation(s) in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligation(s) in the contract; and (v) recognize revenue when (or as) the Company satisfies each performance obligation. Revenues are presented net of any sales or value added taxes collected from customers and remitted to the government. The Company accounts for a contract when it has approval and commitment from both parties, the fees, payment terms and rights of the parties regarding the products or services to be transferred are identified, the contract has commercial substance, and it is probable that substantially all of the consideration for the products and services expected to be transferred is collectible. The Company applies judgment in determining the customer’s ability and intention to pay for services expected to be transferred, which is based on factors including the customer’s payment history, management’s ability to mitigate exposure to credit risk (for example, requiring payment in advance of the transfer of products or services, or the ability to stop transferring promised products or services in the event a customer fails to pay consideration when due), and experience selling to similarly situated customers. Since the transaction price is fixed and defined as part of entering into a contract, and generally does not change, variable consideration is insignificant. Performance obligations within a contract are identified based on the products and services promised to be transferred in the contract. When a contract includes more than one promised product or service, the Company must apply judgment to determine whether the promises represent multiple performance obligations or a single, combined performance obligation. This evaluation requires the Company to determine if the promises are both capable of being distinct, where the customer can benefit from the product or service on its own or together with other resources readily available, and are distinct within the context of the contract, where the transfer of products or services is separately identifiable from other promises in the contract. When both criteria are met, each promised product or service is accounted for as a separate performance obligation. In cases where the promises are distinct, the Company is further required to evaluate if the promises are a series of products and services that are substantially the same and have the same pattern of transfer to the customer (referred to as the “series” guidance). When the Company determines that promises meet the series guidance, they are accounted for as a single, combined performance obligation. Contracts that contain multiple performance obligations require an allocation of the transaction price to each performance obligation on a relative basis according to their standalone selling prices. The Company determines standalone selling price based on the price at which the performance obligation is sold separately. If the Company does not have a history of selling a performance obligation, management applies judgment to estimate the standalone selling price, taking into consideration available information, including market conditions, factors considered to set list prices, pricing of similar products, and internal pricing objectives. The corresponding allocated revenues are recognized when (or as) the performance obligations are satisfied, as discussed further below. Research revenues The majority of research revenues are subscriptions to our research, including access to a designated portion of our research and, depending on the type of license, unlimited analyst inquiry or guidance sessions, an executive coach or advisor, peer offerings, and unlimited participation in Forrester webinars, all of which are delivered throughout the contract period. The Company has concluded that these promises represent a stand ready obligation to provide a daily information service, in which the services are the same each day, every day is distinct, and the customer simultaneously receives and consumes the benefits as the Company transfers control throughout the contract period. Accordingly, these subscriptions meet the requirements of the series guidance and are each accounted for as a single performance obligation. The Company recognizes revenue ratably over the contract term, using an output measure of time elapsed. Certain of the research products include advisory services and/or an event ticket, which are accounted for as a separate performance obligation and are recognized at the point in time the service is completed, the final deliverable is transferred to the customer, or the event occurs. Research revenues also include sales of electronic reprints, which are written research documents prepared by Forrester’s analysts and hosted via an on-line platform. Reprints include a promise to deliver a customer-selected research document and certain usage data provided through the on-line platform, which represents two performance obligations. The Company satisfies the performance obligation for the research document by providing access to the electronic reprint and accordingly recognizes revenue at that point in time. The Company satisfies the performance obligation for the data portion of the reprint on a daily basis and accordingly recognizes revenue over time. Consulting revenues Consulting revenues consist of consulting projects and advisory services. Consulting project revenues consist of the delivery of focused insights and recommendations to assist clients in developing and executing their technology and business strategies. Projects are fixed-fee arrangements that are generally completed over two weeks to three months . The Company has concluded that each project represents a single performance obligation as each is a single promise to deliver a customized engagement and deliverable. For the majority of these services, either practically or contractually, the work performed and delivered to the customer has no alternative use to the Company. Additionally, Forrester maintains an enforceable right to payment at all times throughout the contract. The Company utilizes an input method and recognizes revenue over time, based on hours expended relative to the total estimated hours required to satisfy the performance obligation. The input method closely aligns with how control of interim deliverables is transferred to the customer throughout the engagement and is also the method used internally to price the project and assess operational performance. If the Company were to enter into an agreement where it does not have an enforceable right to payment at all times, revenue would be recognized at the point in time the project is completed. Certain of our content marketing consulting projects contain a second performance obligation for access to interactive tools over a specified license period, typically 12 or 24 months . The Company recognizes revenue for this performance obligation ratably over the license period. Advisory services revenues are short-term presentations or knowledge sharing sessions (which can range from one hour to two days ), such as speeches and advisory days. Each is a promise for a Forrester analyst to deliver a deeper understanding of Forrester’s published research and represents a single performance obligation. Revenue is recognized at the point in time the service is completed or the final deliverable is transferred to the customer, which is when the customer has received the benefit(s) of the service. Events revenues Events revenues consist of either ticket or sponsorship sales for Forrester-hosted events. Each is a single promise that either allows entry to, or grants the right to promote a product or service at, a specific event. The Company concluded that each of these represents a single performance obligation. The Company recognizes revenue at the completion of the event, which is the point in time when the customer has received the benefit(s) from attending or sponsoring the event. Prepaid performance obligations Prepaid performance obligations (including event tickets, reprints, consulting projects, and advisory services) on non-cancellable contracts, for which the Company estimates will expire unused, are recognized in proportion to the pattern of related rights exercised by the customer. This assessment requires judgment, including estimating the percentage of prepaid rights that will go unexercised and anticipating the impact that future changes to products, pricing, and customer engagement will have on actual expirations. The Company updates estimates used to recognize unexercised rights on a quarterly basis. Contract modifications Consulting contracts are occasionally modified to update the scope of the services purchased. Since a consulting project is a single performance obligation that is only partially satisfied at the modification date, the updated project requirements are not distinct and the modification is accounted for as part of the existing contract. The effect of the modification on the transaction price and the Company’s measure of progress for the performance obligation to which it relates is recognized as an adjustment to revenue (either an increase or decrease) on a cumulative catch-up basis. For the year ended December 31, 2023, the Company recorded an immaterial amount of cumulative catch-up adjustments. Refer to Note 12 – Operating Segment and Enterprise Wide Reporting for a summary of disaggregated revenue by geographic region. Contract Assets and Liabilities Accounts receivable 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, the Company records a receivable on the date the 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 no contract assets as of December 31, 2023. The majority of the Company’s contracts are non-cancelable. However, for contracts that are cancelable 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 invoiced for annual periods, and payment is expected within one year from the transfer of products and services, the Company does not adjust its receivables or transaction price for the effects of a significant financing component. Deferred revenue The Company refers to contract liabilities as deferred revenue in 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 cancelable contract. During the years ended December 31, 2023 and 2022, the Company recognized approxim ately $ 166.3 million a nd $ 189.2 million of revenue, respectively, related to its deferred revenue balance at January 1 of each such period. Approximatel y $ 385.6 million of reve nue is expected to be recognized during the next 24 months from remaining performance obligations as of December 31, 2023 . Cost to Obtain Contracts 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 in the Consolidated Balance Sheets. The Company elected the practical expedient to account 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 of the expense related to deferred commissions wa s $ 39.8 mi llion, $ 45.9 million, and $ 43.9 million for the years ended December 31, 2023, 2022, and 2021 , respectively, and is recorded in selling and marketing expenses in the Consolidated Statements of Operations. The Company evaluates the recoverability of deferred commissions at each balance sheet date and there were no impairments recorded during 2023, 2022, or 2021 . Leases The Company determines whether an arrangement is a lease at inception of the arrangement. The Company accounts for a lease when it has the right to control the leased asset for a period of time while obtaining substantially all of the assets’ economic benefits. 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 in the Consolidated Balance Sheets, while short-term operating lease liabilities are recorded within accrued expenses and other current liabilities. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. The discount rate used to determine the present value of the lease payments is the Company’s incremental borrowing rate based on the information available at lease inception, as generally an implicit rate in the lease is not readily determinable. An operating lease ROU asset includes all lease payments, lease incentives and initial direct costs incurred. Some of the Company’s leases include options to extend or terminate the lease. When determining the lease term, these options are included in the measurement and recognition of the Company’s ROU assets and lease liabilities when it is reasonably certain that the Company will exercise the option(s). The Company considers various economic factors when making this determination, including, but not limited to, the significance of leasehold improvements incurred in the office space, the difficulty in replacing the asset, underlying contractual obligations, and specific characteristics unique to a particular lease. Subsequent to entering into a lease arrangement, the Company reassesses the certainty of exercising options to extend or terminate a lease. When it becomes reasonably certain that the Company will exercise an option that was not included in the lease term, the Company accounts for the change in circumstances as a lease modification, which results in the remeasurement of the ROU asset and lease liability as of the modification date. Lease expense for operating leases is recognized on a straight-line basis over the lease term based on the total lease payments (which include initial direct costs and lease incentives). The expense is included in operating expenses in the Consolidated Statements of Operations. The Company’s lease agreements generally contain lease and non-lease components. Non-lease components are fixed charges stated in an agreement and primarily include payments for parking at the leased office facilities. The Company accounts for the lease and fixed payments for non-lease components as a single lease component under Topic 842, which increases the amount of the ROU assets and lease liabilities. Most of the Company’s lease agreements also contain variable payments, primarily maintenance-related costs, which are expensed as incurred and not included in the measurement of the ROU assets and lease liabilities. Leases with an initial term of twelve months or less are not recorded in the Consolidated Balance Sheets and are not material. Advertising Costs The Company expenses advertising costs as incurred. Advertising expense for the years ended December 31, 2023, 2022, and 2021 w as $ 1.7 mil lion, $ 2.3 million, and $ 2.1 million, respectively. These expenses consisted primarily of online marketing and are included in selling and marketing expense in the Consolidated Statements of Operations. Stock-Based Compensation The Company recognizes the fair value of stock-based compensation expense over the requisite service period of the individual grantee, which generally equals the vesting period. Forfeitures are recognized as they occur and all income tax effects related to settlements of share-based payment awards are reported in earnings as an increase or decrease to income tax expense. All income tax-related cash flows resulting from share-based payments are reported as operating activities in the Consolidated Statements of Cash Flows and cash paid by directly withholding shares for tax withholding purposes is classified as a financing activity. Stock-based compensation expense was recorded in the following expense categories (in thousands): Years Ended December 31, 2023 2022 2021 Cost of services and fulfillment $ 9,068 $ 8,435 $ 6,057 Selling and marketing 2,943 2,774 1,698 General and administrative 3,475 3,334 2,315 Total $ 15,486 $ 14,543 $ 10,070 The options granted under the equity incentive plan and sha res subject to the employee stock purchase plan were valued utilizing the Black-Scholes model using the following assumptions and had the following fair values ( no options were granted i n 2022 or 2021): Years Ended December 31, 2023 2022 2021 Equity Incentive Plans Employee Stock Purchase Plan Employee Stock Purchase Plan Employee Stock Purchase Plan Average risk-free interest rate 4.27 % 5.51 % 3.71 % 0.05 % Expected dividend yield 0.0 % 0.0 % 0.0 % 0.0 % Expected life 4.75 Years 0.5 Years 0.5 Years 0.5 Years Expected volatility 43 % 35 % 33 % 30 % Weighted average fair value $ 14.24 $ 7.90 $ 10.22 $ 11.20 Expected volatility is based on the historical volatility of Forrester’s common stock as well as management’s expectations of future volatility over the expected term of the awards granted. The risk-free interest rate is based on the U.S. Treasury Constant Maturity rate with an equivalent remaining term. The expected term calculation is based upon the option period of the employee stock purchase plan, and for options, it is based upon Forrester's historical experience of exercise patterns. The unamortized fair value of stock-based awards as of December 31, 2023 w as $ 27.7 m illion with a weighted average remaining recognition period of 2.5 years . Depreciation and Amortization Forrester provides for depreciation and amortization of property and equipment, computed using the straight-line method, over their estimated useful lives of its assets as follows: Estimated Useful Life Computers and equipment 3 to 10 Years Computer software 3 to 5 Years Furniture and fixtures 7 Years Leasehold improvements Shorter of asset life or lease term Forrester provides for amortization of intangible assets, computed using an accelerated method according to the expected cash flows to be received from the underlying assets, over their estimated useful lives as follows: Estimated Useful Life Customer relationships 5 to 9 Years Technology 1 to 8 Years Trademarks 6 to 8 Years Income Taxes Forrester recognizes deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the financial statements and tax basis of assets and liabilities as well as operating loss carryforwards. Forrester’s provision for income taxes is composed of a current and a deferred provision for federal, state, and foreign jurisdictions. The current provision is calculated as the estimated taxes payable or refundable on tax returns for the current year. The deferred provision is calculated as the net change during the year in deferred tax assets and liabilities. Valuation allowances are provided if, based on the weight of available evidence, it is more likely than not that some or all of the deferred tax asset will not be realized. Forrester accounts for uncertain tax positions using a “more-likely-than-not” threshold for recognizing and resolving uncertain tax positions. The evaluation of uncertain tax positions is based on factors including, but not limited to, changes in tax law, the measurement of tax positions taken or expected to be taken in tax returns, the effective settlement of matters subject to audit, new audit activity, and changes in facts or circumstances related to a tax position. The Company evaluates these tax positions on a quarterly basis. The Company also accrues for potential interest and penalties related to unrecognized tax benefits in income tax expense. Net Income Per Common Share Basic net income per common share is computed by dividing net inco |
Marketable Investments
Marketable Investments | 12 Months Ended |
Dec. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Marketable Investments | Note 2 – Marketable Investments The following table summarizes the Company’s marketable investments (in thousands): As of December 31, 2023 Gross Gross Amortized Unrealized Unrealized Market Cost Gains Losses Value Corporate obligations $ 18,049 $ — $ ( 72 ) $ 17,977 Federal agency obligations 2,000 — ( 7 ) 1,993 Money market funds 31,610 — — 31,610 Total $ 51,659 $ — $ ( 79 ) $ 51,580 As of December 31, 2022 Gross Gross Amortized Unrealized Unrealized Market Cost Gains Losses Value Corporate obligations $ 17,900 $ 8 $ ( 205 ) $ 17,703 Federal agency obligations 1,999 — ( 14 ) 1,985 Total $ 19,899 $ 8 $ ( 219 ) $ 19,688 Realized gains and losses on investments are included in earnings and are determined using the specific identification method. There were no realized gains or losses on marketable investments during the years ended December 31, 2023, 2022, and 2021. The following table summarizes the maturity periods of the marketable investments in the Company’s portfolio as of December 31, 2023 (in thousands): 2024 2025 Total Corporate obligations $ 16,037 $ 1,940 $ 17,977 Federal agency obligations 1,993 — 1,993 Money market funds 31,610 — 31,610 Total $ 49,640 $ 1,940 $ 51,580 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): As of December 31, 2023 Less Than 12 Months 12 Months or Greater Market Unrealized Market Unrealized Value Losses Value Losses Corporate obligations $ 13,098 $ 8 $ 4,879 $ 64 Federal agency obligations — — 1,993 7 Total $ 13,098 $ 8 $ 6,872 $ 71 As of December 31, 2022 Less Than 12 Months 12 Months or Greater Market Unrealized Market Unrealized Value Losses Value Losses Corporate obligations $ 9,619 $ 139 $ 8,084 $ 66 Federal agency obligations 1,985 14 — — Total $ 11,604 $ 153 $ 8,084 $ 66 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Note 3 – Goodwill and Other Intangible Assets A summary of goodwill by segment and the changes in the carrying amount of goodwill is shown in the following table (in thousands): Research Consulting Total Balance at December 31, 2021 $ 236,770 $ 8,224 $ 244,994 Foreign currency translation adjustments ( 2,750 ) ( 95 ) ( 2,845 ) Balance at December 31, 2022 234,020 8,129 242,149 Foreign currency translation adjustments 2,038 70 2,108 Balance at December 31, 2023 $ 236,058 $ 8,199 $ 244,257 The Company performed its annual impairment test as of November 30, 2023 utilizing a quantitative assessment to determine if the fair values of each of its reporting units was less than their respective carrying values, and concluded that no impairments existed. As of December 31, 2023 , the Company had no accumulated goodwill impairment losses and the Consulting reporting unit had a negative carrying value. A summary of Forrester’s intangible assets is as follows (in thousands): December 31, 2023 Gross Net Carrying Accumulated Carrying Amount Amortization Amount Amortizable intangible assets: Customer relationships $ 77,640 $ 42,091 $ 35,549 Technology 16,524 15,950 574 Trademarks 12,519 11,005 1,514 Total $ 106,683 $ 69,046 $ 37,637 December 31, 2022 Gross Net Carrying Accumulated Carrying Amount Amortization Amount Amortizable intangible assets: Customer relationships $ 77,786 $ 33,805 $ 43,981 Technology 16,803 14,696 2,107 Trademarks 12,472 9,056 3,416 Total $ 107,061 $ 57,557 $ 49,504 Amortization expense related to intangible assets was approxi mately $ 12.0 milli on, $ 13.2 million, and $ 15.1 million during the years ended December 31, 2023, 2022, and 2021 , respectively. Estimated intangible asset amortization expense for each of the five succeeding years is as follows (in thousands): 2024 $ 9,955 2025 8,881 2026 8,396 2027 8,324 2028 2,081 Total $ 37,637 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Note 4 – Debt Amended Credit Agreement On December 21, 2021, the Company and certain of its subsidiaries entered into an amendment of its existing credit facility, dated as of January 3, 2019, with JPMorgan Chase Bank, N.A., as administrative agent (the “Administrative Agent”), and the lenders party thereto (the "Existing Credit Agreement" and the Existing Credit Agreement as amended by the Amendment, the "Amended Credit Agreement"). The Existing Credit Agreement was amended to, among other things, (a) increase the aggregate principal amount of revolving credit commitments (the "Revolving Credit Facility") from $ 75.0 million to $ 150.0 million and eliminate the existing term loan facility, (b) extend the scheduled maturity date of the revolving credit commitments to December of 2026 , (c) reduce the applicable margin with respect to revolving loans to, at Forrester’s option, (i) between 1.25 % and 1.75 % per annum for loans based on LIBOR and (ii) between 0.25 % and 0.75 % per annum for loans based on the applicable base rate, in each case, based on Forrester’s consolidated total leverage ratio, (d) reduce the commitment fee applicable to undrawn revolving credit commitments to between 0.30 % and 0.20 % per annum based on the Company's consolidated total leverage ratio, (e) replace the minimum fixed charge coverage ratio financial covenant under the Existing Credit Agreement with a minimum consolidated interest coverage ratio of 3.50:1.00 , and (f) include a covenant limiting the amount of capital expenditures made by the Company in each fiscal year. On December 21, 2021, the Company converted the $ 100.0 million outstanding term loan amounts under the Existing Credit Agreement to $ 100.0 million outstanding on the Revolving Credit Facility as the lenders remained the same under both facilities. The Amended Credit Agreement permits the Company to 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 Company may voluntarily prepay revolving loans under the credit facility at any time and from time to time, without premium or penalty. No interim amortization payments are required to be made under the credit facility. The Amended Credit Agreement provides that once LIBOR ceases to exist in 2023, the benchmark rate for the Revolving Credit Facility will automatically transfer from LIBOR to the Secured Overnight Financing Rate (SOFR). In April 2023, the Company executed a second amendment to the credit facility to facilitate the conversion from LIBOR to SOFR and to set the base interest rate at SOFR plus 10 basis points. 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 December 31, 2023, $ 0.6 million i n letters of credit were issued under the Revolving Credit Facility. The Company incurred $ 0.5 million in costs related to the issuance of the Revolving Credit Facility under the Amended Credit Agreement, which are included in other assets in the Consolidated Balance Sheets. These costs are being amortized on a straight-line basis over the five-year term of the Revolving Credit Facility and are included in interest expense in the Consolidated Statements of Operations. The Amended Credit Agreement was accounted for as a debt modification and thus no existing debt issuance costs were written off to interest expense as a result of the modification. Existing Credit Agreement Prior to December 21, 2021, the Company had a credit facility that provided for a $ 125.0 million Term Loan A facility and a $ 75.0 million Revolving Credit Facility. The term loan amounts outstanding under the Existing Credit Agreement were repaid when the Company entered into the Amended Credit Agreement on December 21, 2021. Outstanding Borrowings The following table summarizes the Company’s total outstanding borrowings as of the dates indicated (in thousands): Description: December 31, 2023 December 31, 2022 Revolving credit facility (1) (2) (3) $ 35,000 $ 50,000 (1) The contractual annualized interest rate as of December 31, 2023 on the Revolving Credit Facility was 6.70596 %. (2) The Company had $ 114.4 million of available borrowing capacity on the Revolving Credit Facility (not including the expansion feature) as of December 31, 2023 . (3) The weighted average annual effective rate on the Company's total debt outstanding for the years ended December 31, 2023 and 2022 wa s 6.3 % and 2.9 %, respectively. The Amended Credit Agreement contains certain customary restrictive loan covenants, including among others, financial covenants that apply a maximum leverage ratio, minimum interest coverage ratio, and maximum annual capital expenditures. 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, change fiscal year, or enter into certain transactions with affiliates and subsidiaries. The Company was in full compliance with the covenants as of December 31, 2023. The Facility also contains customary events of default, representations, and warranties. All obligations under the Amended 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). |
Leases
Leases | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Leases | Note 5 – Leases The components of lease expense were as follows (in thousands): Year Ended Year Ended Year Ended December 31, 2023 December 31, 2022 December 31, 2021 Operating lease cost $ 12,671 $ 14,284 $ 15,527 Short-term lease cost 981 754 439 Variable lease cost 4,394 5,416 5,582 Sublease income ( 521 ) ( 746 ) ( 549 ) Total lease cost $ 17,525 $ 19,708 $ 20,999 Additional lease information is summarized in the following table (in thousands, except lease term and discount rate): Year Ended Year Ended December 31, 2023 December 31, 2022 Cash paid for amounts included in the measurement of $ 13,839 $ 12,939 Operating ROU assets obtained in exchange for $ 1,110 $ 323 Weighted-average remaining lease term - operating 4.3 5.1 Weighted-average discount rate - operating leases 4.3 % 4.3 % Future minimum lease payments under non-cancelable leases and estimated future sublease cash receipts from non-cancelable arrangements as of December 31, 2023 are as follows (in thousands): Operating Lease Sublease Payments Cash Receipts 2024 $ 16,001 $ 624 2025 13,899 — 2026 12,344 — 2027 5,724 — 2028 2,889 — Thereafter 6,049 — Total lease payments 56,906 $ 624 Less imputed interest ( 5,052 ) Present value of lease liabilities $ 51,854 Lease balances are as follows (in thousands): As of December 31, 2023 Operating lease ROU assets $ 39,722 Short-term operating lease liabilities (1) $ 14,181 Non-current operating lease liabilities 37,673 Total operating lease liabilities $ 51,854 (1) Included in accrued expenses and other current liabilities in the Consolidated Balance Sheets. The Company’s leases do not contain residual value guarantees, material restrictions or covenants. During the year ended December 31, 2021, the Company subleased one of its facilities in San Francisco, California. The sublease agreement expires in 2024 and (i) does not include renewal and termination options, (ii) provides for customary escalations of lease payments in the normal course of business, and (iii) grants the subtenant certain allowances, such as free rent. During the year ended December 31, 2023, the Company recorded $ 1.9 million of ROU asset impairments and accelerated amortization and $ 0.7 million of leasehold improvements impairments related to closing various offices. Dur ing the year ended December 31, 2022, the Company recorded $ 3.7 million of ROU asset impairments and $ 1.3 million of leasehold improvement impairments related to closing one floor of its offices located at 150 Spear Street, San Francisco, California. The space had been vacant prior to the Company electing to permanently reduce its office space. The impairments and accelerated amortization are included in restructuring costs in the Consolidated Statements of Operations. The leasehold improvements were originally recorded in property and equipment, net in the Consolidated Balance Sheets. As a result of the impairments, the ROU asset and leasehold improvements were required to be recorded at their estimated fair value as Level 3 non-financial assets. The fair value of the asset group was determined using a discounted cash flow model, which required the use of estimates, including projected cash flows for the related assets, the selection of a discount rate used in the model, and regional real estate industry data. The fair value of the asset group was allocated to the ROU asset and leasehold improvements based on their relative carrying values. The Compa ny did not have any lease impairments or abandonments during 2021. |
Derivatives and Hedging
Derivatives and Hedging | 12 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging | Note 6 – Derivatives and Hedging The Company enters into derivative contracts (an interest rate swap and foreign currency forwards) to mitigate the cash flow risk associated with changes in interest rates on its variable rate debt (refer to Note 4 – Debt ) and changes in foreign exchange rates on forecasted foreign currency transactions. The Company accounts for its derivative contracts 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. Interest Rate Swap During 2019, the Company entered into a single interest rate swap contract that matured on December 31, 2022 , with an initial notional amount of $ 95.0 million. The Company paid a base fixed rate of 1.65275 % and in return received the greater of: (1) 1-month LIBOR, rounded up to the nearest 1/16 of a percent, or (2) 0.00 %. The swap had been designated and accounted for as a cash flow hedge of the forecasted interest payments on the Company’s debt. The swap was considered to be a highly effective hedge of the designated interest rate risk for the entire contract period and changes in the fair value of the swap were recorded in accumulated other comprehensive loss, a component of equity in the Consolidated Balance Sheets. Foreign Currency Forwards The Company enters into a limited number of foreign currency forward exchange contracts to mitigate the effects of adverse fluctuations in foreign currency exchange rates on transactions entered into in the normal course of business that are denominated in foreign currencies that differ from the local functional currency. These contracts generally have short durations and are recorded at fair value with both realized and unrealized gains and losses recorded in other income (expense), net in the Consolidated Statements of Operations because the Company does not designate these contracts as hedges for accounting purposes. During 2023, the Company entered into twelve foreign currency forward exchange contracts, all of which settled by December 31, 2023. Accordingly, as of December 31, 2023, there are no amounts recorded in the Consolidated Balance Sheets. During 2022, the Company entered into ten foreign currency forward exchange contracts, all of which settled by December 31, 2022. Accordingly, as of December 31, 2022, there are no amounts recorded in the Consolidated Balance Sheets. During 2021, the Company entered into seven foreign currency forward exchange contracts, all of which settled by December 31, 2021. The Company’s derivative counterparties are investment grade financial institutions. The Company does not have any collateral arrangements with its derivative counterparties and the derivative contracts do not contain credit risk related contingent features. The table below provides information regarding amounts recognized in the Consolidated Statements of Operations for derivative contracts for the periods indicated (in thousands): For the Year Ended December 31, Amount recorded in: 2023 2022 2021 I nterest expense (1) $ — $ ( 103 ) $ ( 807 ) Other income (expense ), net (2) ( 13 ) ( 194 ) ( 90 ) Total $ ( 13 ) $ ( 297 ) $ ( 897 ) (1) Consists of interest expense from the interest rate swap contract. (2) Consists of net reali zed losses on f oreign currency forward contracts. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 7 – Fair Value Measurements The Company has certain financial assets and liabilities which have been classified as either Level 1, 2, or 3 within the fair value hierarchy as described below. 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, quoted prices in markets that are not 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 and liabilities that are measured at fair value on a recurring basis (in thousands): As of December 31, 2023 Level 1 Level 2 Total Assets: Money market funds (1) $ 55,128 $ — $ 55,128 Marketable investments (3) — 19,970 19,970 Total Assets $ 55,128 $ 19,970 $ 75,098 As of December 31, 2022 Level 1 Level 2 Total Assets: Money market funds (2) $ 5,800 $ — $ 5,800 Marketable investments (3) — 19,688 19,688 Total Assets $ 5,800 $ 19,688 $ 25,488 (1) U.S. based funds of $ 23.5 million are included in cash and cash equivalents and non-U.S. based funds of $ 31.6 million included in marketable investments in the Consolidated Balance Sheets. (2) Represents U.S. based funds and are included in cash and cash equivalents in the Consolidated Balance Sheets. (3) Marketable investments have been initially valued at the transaction price and subsequently valued, at the end of the reporting period, 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. During the years ended December 31, 2023 and 2022 , the Company did not transfer assets or liabilities between levels of the fair value hierarchy. Additionally, there have been no changes to the valuation techniques for Level 2 assets and liabilities. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 8 – Income Taxes Income before income taxes consists of the following (in thousands): Years Ended December 31, 2023 2022 2021 Domestic $ ( 4,058 ) $ 16,552 $ 22,424 Foreign 10,343 14,172 10,767 Total $ 6,285 $ 30,724 $ 33,191 The components of the income tax expense are as follows (in thousands): Years Ended December 31, 2023 2022 2021 Current: Federal $ 3,867 $ 9,349 $ 4,203 State 1,922 3,819 2,272 Foreign 2,907 2,402 2,147 Total current 8,696 15,570 8,622 Deferred: Federal ( 3,872 ) ( 5,513 ) 334 State ( 1,597 ) ( 1,788 ) ( 663 ) Foreign 8 649 54 Total deferred ( 5,461 ) ( 6,652 ) ( 275 ) Income tax expense $ 3,235 $ 8,918 $ 8,347 A reconciliation of the federal statutory rate to Forrester’s effective tax rate is as follows: Years Ended December 31, 2023 2022 2021 Income tax provision at federal statutory rate 21.0 % 21.0 % 21.0 % Increase (decrease) in tax resulting from: State tax provision, net of federal benefit 8.1 5.2 3.8 Foreign tax rate differential 2.7 ( 0.5 ) ( 0.4 ) Stock compensation 17.5 0.9 ( 0.4 ) Withholding taxes 6.2 1.7 1.3 Non-deductible expenses 8.1 1.5 — Permanent differences ( 1.7 ) ( 0.3 ) ( 0.3 ) Change in valuation allowance 0.5 1.0 — Foreign subsidiary income subject to U.S. tax 1.2 1.3 0.2 Foreign-derived intangible income benefit ( 3.8 ) ( 0.7 ) ( 0.7 ) Change in tax legislation ( 8.1 ) ( 1.6 ) ( 0.3 ) Foreign exchange gain on previously taxed earnings and profits 1.6 — — Other, net ( 1.8 ) ( 0.5 ) 0.9 Effective tax rate 51.5 % 29.0 % 25.1 % The increase in the effective tax rate during 2023 as compared to 2022 was primarily due to 1) the impact from the decline in income before taxes to $ 6.3 million in 2023 from $ 30.7 million in 2022 and 2) increased non-deductible stock compensation due primarily to the effect from the settlement of share-based awards in 2023. The components of deferred income taxes are as follows (in thousands): As of December 31, 2023 2022 Non-deductible reserves and accruals $ 3,077 $ 2,736 Net operating loss and other carryforwards 6,262 6,215 Stock compensation 2,676 2,051 Depreciation and amortization 435 — Lease liability 12,276 17,715 Gross deferred tax asset 24,726 28,717 Less - valuation allowance ( 1,065 ) ( 989 ) Sub-total 23,661 27,728 Other liabilities ( 733 ) ( 807 ) Depreciation and amortization — ( 1,023 ) Goodwill and intangible assets ( 15,181 ) ( 18,648 ) Operating lease right-of-use assets ( 9,163 ) ( 13,705 ) Deferred commissions ( 6,545 ) ( 6,913 ) Net deferred tax liability $ ( 7,961 ) $ ( 13,368 ) As of December 31, 2023 and 2022, long-term net deferred tax assets were $ 0.7 million a nd $ 0.8 million, respectively, and are included in other assets in the Consolidated Balance Sheets. Long-term net deferred tax liabilities wer e $ 8.7 mill ion and $ 14.1 million at December 31, 2023 and 2022, respectively, and are included in non-current liabilities in the Consolidated Balance Sheets. As of December 31, 2023, the Company has fully utilized its U.S. federal net operating loss carryforwards. The Company has foreign net operating loss carryfo rwards of approximately $ 18.1 million, which can be carried forward indefinitely. Approximately $ 3.2 million of the foreign ne t operating loss carryforwards relate to a prior acquisition, the utilization of which is subject to limitation under the tax law of the United Kingdom. As of December 31, 2023 , the Company has no U.S. federal and state capital loss carryforward s. The Company considers all available evidence, both positive and negative, to determine whether, based on the weight of that evidence, a valuation allowance is needed for some portion or all of a net deferred income tax asset. Judgment is required in considering the relative impact of negative and positive evidence. In arriving at these judgments, the weight given to the potential effect of negative and positive evidence is commensurate with the extent to which it can be objectively verified. Although realization is not assured, based upon the Company’s historical taxable income and projections of the Company’s future taxable income over the periods during which the deferred tax assets are deductible and the carryforwards expire, management believes it is more likely than not that the Company will realize the benefits of these deductible differences, net of the existing valuation allowances, as discussed below. As of December 31, 2023 and 2022, the Company maintained a valuation allowance of approxim ately $ 1.1 mil li on and $ 1.0 million, respectively, primarily relating to foreign net operating loss carryforwards from an acquisition, and as of December 31, 2021, also from U.S. capital losses from the Company’s investment in technology-related private equity funds. The following table provides a summary of the changes in the deferred tax valuation allowance for the years ended December 31, 2023, 2022, and 2021 (in thousands): 2023 2022 2021 Deferred tax valuation allowance at January 1 $ 989 $ 1,114 $ 1,237 Additions 39 106 — Deductions — ( 336 ) ( 108 ) Change in tax legislation ( 4 ) 186 — Translation adjustments 41 ( 81 ) ( 15 ) Deferred tax valuation allowance at December 31 $ 1,065 $ 989 $ 1,114 The Company will generally be free of additional U.S. federal tax consequences on additional unremitted foreign earnings that have been subject to U.S. tax primarily through GILTI or would be eligible for a dividends received deduction for earnings distributed after January 1, 2018. Notwithstanding the U.S. taxation of these amounts, the Company intends to continue to invest all of its unremitted earnings o f $ 30.1 million, as we ll as the capital in these subsidiaries, indefinitely outside of the U.S. unless there are opportunities in the future to repatriate in a tax efficient manner. The Company does not expect to incur any material, additional taxes related to such amounts. The Company utilizes a two-step process for the measurement of uncertain tax positions that have been taken or are expected to be taken on a tax return. The first step is a determination of whether the tax position should be recognized in the financial statements. The second step determines the measurement of the tax position. A reconciliation of the beginning and ending amount of unrecognized tax benefits is summarized as follows for the years ended December 31, 2023, 2022, and 2021 (in thousands): 2023 2022 2021 Unrecognized tax benefits at January 1 $ — $ 5 $ 28 Reductions for tax positions of prior years — ( 4 ) ( 24 ) Translation adjustments — ( 1 ) 1 Unrecognized tax benefits at December 31 $ — $ — $ 5 As of December 31, 2023 , the Company had no unrecognized tax benefits. The Company does not expect the liability for unrecognized tax benefits to change materially within the next 12 months. The Company recognizes interest and penalties related to uncertain tax positions in income tax expense and such amounts were not significant in the years ended December 31, 2023, 2022, and 2021. Accrued interest and penalties were insignificant at December 31, 2023, 2022, and 2021. The Company files income tax returns in the U.S. and in foreign jurisdictions. Generally, the Company is no longer subject to U.S., state, local, and foreign income tax examinations by tax authorities in its major jurisdictions for years before 2016, except to the extent of net operating loss and tax credit carryforwards from those years. Major taxing jurisdictions include the U.S., the Netherlands, the United Kingdom, Germany, and Switzerland. As of December 31, 2023, the Company has no jurisdictions under audit. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Stockholders' Equity | Note 9 – Stockholders’ Equity Preferred Stock Forrester has authorized 500,000 shares of $ 0.01 par value preferred stock. The Board of Directors has full authority to issue this stock and to fix the voting powers, preferences, rights, qualifications, limitations, or restrictions thereof, including dividend rights, conversion rights, redemption privileges, liquidation preferences, and the number of shares constituting any series or designation of such series. Treasury Stock As of December 31, 2023, Forrester’s Board of Directors has authorized an aggre gate $ 585.0 milli on to purchase common stock under the Company’s stock repurchase program. The shares repurchased may be used, among other things, in connection with Forrester’s equity incentive and purchase plans. As of December 31, 2023, the Company had repurc hased approximately 17.1 million shares of common stock at an aggregate cost of $ 514.1 million. Dividends The Company does no t currently pay cash dividends on its common stock . Equity Plans The Company maintains the Forrester Research, Inc. Amended and Restated Equity Incentive Plan (the “Equity Incentive Plan”), as most recently amended and restated by our stockholders in May 2023. The amendment and restatement resulted in (1) extending the term of the plan for an additional 10 years until May 2033, (2) increasing the number of shares issuable under the plan by 3,500,000 shares, and (3) establishing a maximum amount of awards issuable under the plan to the Company’s non-employee directors. The Equity Incentive Plan provides for the issuance of stock-based awards, including incentive stock options (“ISOs”), non-qualified stock options (“NSOs”), and restricted stock units (“RSUs”) to purchase up to 9,930,000 shares authorized in the plan plus the number of unused shares from prior plan (not to exceed 2,500,000 shares). Under the terms of the Equity Incentive Plan, ISOs may not be granted at less than fair market value on the date of grant (and in no ev ent less than par value). Options and RSUs generally vest annually over four years and options expire after 10 years. No future awards can be granted or issued under prior plans and there is a maximum amount of awards issuable under the plan to the Company’s non-employee Directors. RSUs granted to non-employee directors vest quarterly over one year . Options and RSUs granted under the Equity Incentive Plan immediately vest upon certain events, as described in the plan. As of December 31, 2023, approximat ely 4.2 million shares were available for future grant of awards under the Equity Incentive Plan. As of December 31, 2023 , no options remain o utstanding under prior plans. Restricted Stock Units Restricted stock units represent the right to receive one share of Forrester common stock when the restrictions lapse and the vesting conditions are met. RSUs are valued on the date of grant based upon the value of the Company’s stock on the date of grant less the present value of dividends expected to be paid during the requisite service period, if any. Shares of Forrester’s common stock are delivered to the grantee upon vesting, subject to a reduction of shares for payment of withholding taxes. The weighted average grant date fair value for RSUs granted in 2023, 2022, and 2021 wa s $ 32.82 , $ 50.37 , and $ 46.64 , respectively. The value of RSUs vested and converted to common stock, based on the value of Forrester’s common stock on the date of vesting, w a s $ 8.8 million , $ 10.8 million, and $ 11.5 million during 2023, 2022, and 2021, respectively. RSU activity for the year ended December 31, 2023 is presented below (in thousands, except per share data): Weighted- Average Number of Grant Date Shares Fair Value Unvested at December 31, 2022 682 $ 46.28 Granted 695 32.82 Vested ( 271 ) 44.95 Forfeited ( 107 ) 42.72 Unvested at December 31, 2023 999 $ 37.66 Stock Options Stock option activity for the year ended December 31, 2023 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, 2022 89 $ 35.58 Granted 144 $ 33.04 Exercised ( 3 ) 34.37 Forfeited ( 29 ) 34.54 Outstanding at December 31, 2023 201 $ 33.93 6.35 $ — Exercisable at December 31, 2023 73 $ 35.51 1.37 $ — Vested and expected to vest at December 31, 2023 201 $ 33.93 6.35 $ — The total intrinsic value of options exercised during 2023, 2022, and 2021 was $ 6 thousand, $ 0.3 million, and $ 2.2 million, respectively. Employee Stock Purchase Plan In May 2022, stockholders of the Company approved an amendment to the Company’s Second Amended and Restated Employee Stock Purchase Plan, which provided for an additional 600,000 shares of common stock, par value $ 0.01 per share, to be granted under the plan. The Comp any's Third Amended and Restated Employee Stock Purchase Plan (the "Stock Purchase Plan"), provides for the issuance of up to 0.8 million shares of common stock and as of December 31, 2023, approximat ely 0.6 million sha res remain available for issuance. With certain limited exceptions, all employees of Forrester whose customary employment is more than 20 hours per week, including officers and directors who are employees, are eligible to participate in the Stock Purchase Plan. Purchase periods under the Stock Purchase Plan are six months in length and commence on each successive March 1 and September 1. Stock purchased under the Stock Purchase Plan is required to be held for one year before it is able to be sold. During each purchase period the maximum number of shares of common stock that may be purchased by an employee is limited to the number of shares equal to $ 12,500 divided by the fair market value of a share of common stock on the first day of the purchase period. An employee may elect to have up to 10 % deducted from his or her compensation for the purpose of purchasing shares under the Stock Purchase Plan. The price at which the employee’s shares are purchased is the lower of: (1) 85 % of the closing price of the common stock on the day that the purchase period commences, or (2) 85 % of the closing price of the common stock on the day that the purchase period terminates. Shares purchased by employees under the Stock Purchase Plan are as follows (in thousands, except per share data): Shares Purchase Purchase Period Ended Purchased Price February 28, 2023 63 $ 27.96 August 31, 2023 63 $ 26.04 February 28, 2022 41 $ 40.50 August 31, 2022 54 $ 35.35 Accumulated Other Comprehensive Loss (“AOCL”) The components of accumulated other comprehensive loss are as follows (in thousands): Marketable Interest Rate Translation Total AOCL Balance at December 31, 2020 $ — $ ( 821 ) $ 131 $ ( 690 ) Foreign currency translation (1) — — ( 3,083 ) ( 3,083 ) Unrealized gain (loss) before reclassification, net 6 ) ( 25 ) 29 — 4 Reclassification to income, net 227 ) (2) — 580 — 580 Balance at December 31, 2021 ( 25 ) ( 212 ) ( 2,952 ) ( 3,189 ) Foreign currency translation (1) — — ( 4,807 ) ( 4,807 ) Unrealized gain (loss) before reclassification, net 10 ) ( 134 ) 137 — 3 Reclassification to income, net 28 ) (2) — 75 — 75 Balance at December 31, 2022 ( 159 ) — ( 7,759 ) ( 7,918 ) Foreign currency translation (1) — — 3,248 3,248 Unrealized gain, net of tax of $( 33 ) 99 — — 99 Balance at December 31, 2023 $ ( 60 ) $ — $ ( 4,511 ) $ ( 4,571 ) (1) The Company does not record tax provisions or benefits for the net changes in foreign currency translation adjustments as it intends to permanently reinvest undistributed earnings of its foreign subsidiaries. (2) Reclassification is related to the Company’s interest rate swap (cash flow hedge) and was recorded in interest expense in the Consolidated Statements of Operations. Refer to Note 6 – Derivatives and Hedging . |
Employee Pension Plans
Employee Pension Plans | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Employee Pension Plans | Note 10 – Employee Pension Plans Forrester sponsors several defined contribution plans for eligible employees. Generally, the defined contribution plans have funding provisions which, in certain situations, require contributions based upon formulas relating to employee wages or the level of elective participant contributions, as well as allow for additional discretionary contributions. Further, certain plans contain vesting provisions. Forrester’s contributions to these plans totaled approxim ately $ 7.8 m illion, $ 8.2 million, $ 6.5 million for the years ended December 31, 2023, 2022, and 2021 , respectively. |
Restructuring
Restructuring | 12 Months Ended |
Dec. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Note 11 – Restructuring In January 2023, the Company implemented a reduction in its workforce of approximately 4 % across various geographies and functions to streamline operations. The Company recorded $ 4.3 million of severance and related costs for this action during the fourth quarter of 2022, and $ 0.6 million during the first quarter of 2023. The Company also recorded a restructuring charge of $ 5.0 million during the fourth quarter of 2022 related to closing one floor of its offices located at 150 Spear Street, San Francisco, California, of which $ 3.7 million related to an impairment of a right-of-use asset and $ 1.3 million related to an impairment of leasehold improvements. In the first quarter of 2023, the Company recorded an incremental $ 0.4 million impairment to its California office and a $ 0.6 million charge for the write-off of a previously capitalized software project. In the fourth quarter of 2023, the Company also recorded an additional impairment of $ 0.4 million to its California office. Essentially all of the severance and related costs for this plan was paid during 2023. The following table rolls forward the activity in the restructuring accrual for the January 2023 action for the year ended December 31, 2023 (in thousands): Accrual at December 31, 2022 $ 4,360 Additional restructuring and related costs 1,923 Non-cash charge (included above) ( 1,360 ) Cash payments ( 4,875 ) Accrual at December 31, 2023 $ 48 In May 2023, the Company implemented a reduction in its workforce of approximately 8 % across various geographies and functions to better align its cost structure and to streamline its sales and consulting organizations. The Company recorded $ 7.5 million of severance and related costs for this action during the second quarter of 2023. In addition, the Company closed certain of its smaller offices both inside and outside the U.S. in order to reduce facility costs and better match its facilities to its hybrid work strategy. As a result of closing the offices, the Company recorded restructuring costs of $ 2.3 million, which included $ 1.3 million related to right-of-use asset impairments and accelerated amortization and $ 0.6 million related to impairments of leasehold improvements. In addition, the Company incurred $ 0.7 million in contract termination cos ts. The remaining $ 1.3 million of severance and related costs for this plan will be paid during 2024. The following table rolls forward the activity in the restructuring accrual for the May 2023 action for the year ended December 31, 2023 (in thousands): Accrual at December 31, 2022 $ — Additional restructuring and related costs 10,618 Non-cash charge (included above) ( 2,253 ) Non-cash lease settlement gain (included above) 139 Cash payments ( 7,222 ) Accrual at December 31, 2023 $ 1,282 In February 2024, the Company implemented a reduction in force of approximately 3 % of its workforce across various geographies and functions to better align its cost structure with the revenue outlook for the year. Notification to affected persons commenced in December 2023 and was completed by the end of February 2024. Approximately $ 0.7 million of severance and related costs for this action were recorded during the fourth quarter of 2023. See Note 15 - Subsequent Events , for additional details of this action. |
Operating Segment and Enterpris
Operating Segment and Enterprise Wide Reporting | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Operating Segment and Enterprise Wide Reporting | Note 12 – Operating Segment and Enterprise Wide Reporting The Company’s chief operating decision-maker (used in determining the Company’s segments) is the chief executive officer and the chief financial officer. The Company operates in three segments: Research, Consulting, and Events. These segments, which are also the Company's reportable segments, are based on the management structure of the Company and how the chief operating decision maker uses financial information to evaluate performance and determine how to allocate resources. The Company’s products and services are delivered through each segment as described below. The Research segment includes the revenues from all of the Company’s research products as well as consulting revenues from advisory services (such as speeches and advisory days) delivered by the Company’s research organization. Research segment costs include the cost of the organizations responsible for developing and delivering these products in addition to the costs of the product management organization responsible for product pricing and packaging, and the launch of new products. The Consulting segment includes the revenues and the related costs of the Company’s project consulting organization. The project consulting organization delivers a majority of the Company’s project consulting revenue and certain advisory services. The Events segment includes the revenues and the costs of the organization responsible for developing and hosting in-person and virtual events. The Company evaluates reportable segment performance and allocates resources based on segment revenues and expenses. Segment expenses include the direct expenses of each segment organization and exclude selling and marketing expenses, general and administrative expenses, stock-based compensation expense, depreciation expense, adjustments to incentive bonus compensation from target amounts, amortization of intangible assets, restructuring and integration costs, interest and other income (expense), and gains on investments. The accounting policies used by the segments are the same as those used in the consolidated financial statements. The Company does not review or evaluate assets as part of segment performance. Accordingly, the Company does not identify or allocate assets by reportable segment. The Company provides information by reportable segment in the tables below (in thousands): Research Consulting Events Consolidated Year Ended December 31, 2023 Research revenues $ 334,396 $ — $ — $ 334,396 Consulting revenues 28,826 89,402 — 118,228 Events revenues — — 28,155 28,155 Total segment revenues 363,222 89,402 28,155 480,779 Segment expenses ( 132,444 ) ( 45,028 ) ( 20,557 ) ( 198,029 ) Selling, marketing, administrative and other expenses ( 250,756 ) Amortization of intangible assets ( 11,956 ) Restructuring costs ( 13,272 ) Interest expense, other income, and gains on investments ( 481 ) Income before income taxes $ 6,285 Research Consulting Events Consolidated Year Ended December 31, 2022 Research revenues $ 354,453 $ — $ — $ 354,453 Consulting revenues 41,559 111,028 — 152,587 Events revenues — — 30,747 30,747 Total segment revenues 396,012 111,028 30,747 537,787 Segment expenses ( 133,566 ) ( 56,889 ) ( 21,801 ) ( 212,256 ) Selling, marketing, administrative and other expenses ( 270,381 ) Amortization of intangible assets ( 13,161 ) Restructuring costs ( 9,335 ) Interest expense, other income, and gains on investments ( 1,930 ) Income before income taxes $ 30,724 Research Consulting Events Consolidated Year Ended December 31, 2021 Research revenues $ 325,340 $ — $ — $ 325,340 Consulting revenues 47,247 108,867 — 156,114 Events revenues — — 12,861 12,861 Total segment revenues 372,587 108,867 12,861 494,315 Segment expenses ( 118,155 ) ( 51,770 ) ( 12,709 ) ( 182,634 ) Selling, marketing, administrative and other expenses ( 257,576 ) Amortization of intangible assets ( 15,129 ) Integration costs ( 334 ) Interest expense, other expense, and gains on investments ( 5,451 ) Income before income taxes $ 33,191 Net long-lived tangible assets by location as of December 31, 2023 and 2022 are as follows (in thousands): 2023 2022 United States $ 48,001 $ 60,631 United Kingdom 8,194 8,678 Europe (excluding United Kingdom) 186 319 Asia Pacific 2,742 3,550 Total $ 59,123 $ 73,178 Revenues by geographic destination, based on the location products and services are consumed, and as a percentage of total revenues for the years ended December 31, 2023, 2022, and 2021 are as follows (dollars in thousands): 2023 2022 2021 United States $ 373,483 $ 426,041 $ 381,662 Europe (excluding United Kingdom) 37,912 36,664 41,264 United Kingdom 21,311 20,079 21,913 Canada 16,416 20,759 17,213 Asia Pacific 23,604 26,548 26,768 Other 8,053 7,696 5,495 Total $ 480,779 $ 537,787 $ 494,315 2023 2022 2021 United States 78 % 79 % 77 % Europe (excluding United Kingdom) 8 7 9 United Kingdom 4 4 5 Canada 3 4 3 Asia Pacific 5 5 5 Other 2 1 1 Total 100 % 100 % 100 % |
Certain Balance Sheet Accounts
Certain Balance Sheet Accounts | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Certain Balance Sheet Accounts | Note 13 – Certain Balance Sheet Accounts Property and Equipment: Property and equipment as of December 31, 2023 and 2022 is recorded at cost less accumulated depreciation and consists of the following (in thousands): 2023 2022 Computers and equipment $ 10,128 $ 14,303 Computer software 34,641 34,903 Furniture and fixtures 9,188 9,745 Leasehold improvements 29,506 30,285 Total property and equipment 83,463 89,236 Less accumulated depreciation ( 64,062 ) ( 66,028 ) Total property and equipment, net $ 19,401 $ 23,208 The Company incurs costs to develop or obtain internal use computer software used for its operations, and certain of these costs meeting the criteria in ASC 350 – Internal Use Software are capitalized and amortized over their useful lives. The entire balance in the computer software category above consists of these costs. Amortization of capitalized internal-use software costs total ed $ 4.7 m illion, $ 4.8 million, and $ 4.6 million for the years ended December 31, 2023, 2022, and 2021, respectively, and is included in depreciation expense in the Consolidated Statements of Operations. Accrued Expenses and Other Current Liabilities: Accrued expenses and other current liabilities as of December 31, 2023 and 2022 consist of the following (in thousands): 2023 2022 Payroll and related benefits $ 43,426 $ 53,581 Taxes 4,680 5,823 Lease liability 14,181 13,632 Other 19,195 17,971 Total $ 81,482 $ 91,007 Non-Current Liabilities: Non-current liabilities as of December 31, 2023 and 2022 consist of the following (in thousands): 2023 2022 Deferred tax liability $ 8,679 $ 14,133 Other 2,481 2,509 Total $ 11,160 $ 16,642 Allowance for Doubtful Accounts: A rollforward of the allowance for doubtful accounts as of and for the years ended December 31, 2023, 2022, and 2021 is as follows (in thousands): 2023 2022 2021 Balance, beginning of year $ 560 $ 610 $ 708 Provision for doubtful accounts 701 638 225 Write-offs ( 692 ) ( 669 ) ( 318 ) Translation adjustments 5 ( 19 ) ( 5 ) Balance, end of year $ 574 $ 560 $ 610 |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Note 14 – Contingencies From time to time, the Company may be subject to legal proceedings and civil and regulatory claims that arise in the ordinary course of its business activities. It is the Company's policy to record accruals for legal contingencies to the extent that it has concluded that it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated, and to expense costs associated with loss contingencies, including any related legal fees, as they are incurred. The Company reviews its loss contingencies at least quarterly and adjusts its accruals and/or disclosures to reflect the impact of negotiations, settlements, rulings, advice of legal counsel, or other new information, as deemed necessary. Once established, a provision may change in the future due to new developments or changes in circumstances and could increase or decrease the Company’s earnings in the period that the changes are made. Following an April 2023 mediation in a wage-related matter that resulted in a settlement agreement, the Company accrued $ 4.8 million of expense in the quarter ended March 31, 2023 that is classified in general and administrative expense in the Consolidated Statement of Operations. The Company believes that it has meritorious defenses in connection with its current legal proceedings and claims and intends to vigorously contest each of them. Regardless of the outcome, legal proceedings and claims can have a material adverse effect on the Company because of defense and settlement costs, diversion of management resources, and other factors. In the opinion of the Company's management, based upon information currently available to the Company, while the outcome of these legal proceedings and claims is uncertain, the likely results of these legal proceedings and claims are not expected, either individually or in the aggregate, to have a material adverse effect on the Company's financial position, results of operations or cash flows, although the effect could be material to the Company's consolidated results of operations or consolidated cash flows for any interim reporting period. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 15 – Subsequent Events In February 2024, the Company implemented a reduction in force of approximately 3 % of its workforce across various geographies and functions to better align its cost structure with the revenue outlook for the year. In addition, the Company will close its offices located at 150 Spear Street, San Francisco, California and replace it with a shorter term, flexible space to reduce facility costs. The Company anticipates total costs for this action to be in a range of $ 7.3 million to $ 7.7 million, inclusive of non-cash lease impairment costs of approximately $ 3.8 million, with the majority of the cash costs to be expended in 2024. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation Forrester Research, Inc. is a global independent research and advisory firm. The Company helps leaders across technology, customer experience, marketing, sales and product functions use customer obsession to accelerate growth. Through Forrester’s proprietary research, consulting, and events, leaders from around the globe are empowered to be bold at work, navigate change, and put their custome rs at the center of their leadership, strategy, and operations. The Company’s unique insights are grounded in annual surveys of more than 700,000 consumers, business leaders, and technology leaders worldwide, rigorous and objective research methodologies, over 100 million r eal-time feedback votes, and the shared wisdom of our clients. The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for reporting on Form 10-K. The Company’s fiscal year is the twelve months from January 1 through December 31 and all references to 2023, 2022, and 2021 refer to the fiscal year unless otherwise noted. Principles of Consolidations The accompanying consolidated financial statements include the accounts of Forrester and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. Management Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Forrester considers the more significant of these estimates to be revenue recognition, ongoing impairment reviews of goodwill, intangible and other long-lived assets, and income taxes. On an ongoing basis, management evaluates its estimates. Actual results could differ from these estimates. |
Adoption of New Accounting Pronouncements | Adoption of New Accounting Pronouncements 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. |
Fair Value Measurements | Fai r Value Measurements The carrying amounts reflected in the Consolidated Balance Sheets for cash, certain cash equivalents, accounts receivable, accounts payable, and accrued expenses approximate fair value due to their short-term maturities. The Company’s financial instruments also include its outstanding variable-rate borrowings (refer to Note 4 – Debt ). The Company believes that the carrying amount of its variable-rate borrowings reasonably approximate their fair values because the rates of interest on those borrowings reflect current market rates of interest. Additionally, the Company has certain financial assets and liabilities recorded at fair value at each balance sheet date, including cash equivalents and marketable investments, in accordance with the accounting standards for fair value measurements. Refer to Note 7 – Fair Value Measurements for the Company’s fair value disclosures. |
Cash, Cash Equivalents, and Marketable Investments | Cash, Cash Equivalents, and Marketable Investments Forrester considers all short-term, highly liquid investments with original maturities at the time of purchase of 90 days or less to be cash equivalents, inclusive of the Company's U.S. based money market funds. The Company’s portfolio of investments may at any time include securities of U.S. government agencies, municipal notes and bonds, corporate notes and bonds, commercial paper, and money market funds based outside of the U.S. Marketable investments are classified as current assets as they are available for use in current operations. Forrester accounts for all marketable investments as available-for-sale securities and as such, the marketable investments are carried at fair value with unrealized gains and losses (not related to credit losses) recorded in accumulated other comprehensive loss in the Consolidated Balance Sheets. Realized gains and losses on securities are included in earnings and are determined using the specific identification method. The Company conducts periodic reviews to identify and evaluate each investment that has an unrealized loss, in accordance with the meaning of other-than-temporary impairment and its application to certain investments, as required under the accounting standards. Unrealized losses on available-for-sale securities that are determined to be temporary, and not related to credit loss, are recorded, net of tax, in accumulated other comprehensive loss. During the years ended December 31, 2023, 2022, and 2021, the Company did not record any other-than-temporary impairment losses on its available-for-sale securities. The Company did not realize any gains or losses from the Company's available-for-sale securities during the years ended December 31, 2023, 2022, and 2021 . |
Presentation of Restricted Cash | Presentation of Restricted Cash 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 in the accompanying Consolidated Statements of Cash Flows (in thousands). For the Year Ended December 31, 2023 2022 Cash and cash equivalents shown in balance sheets $ 72,909 $ 103,629 Restricted cash classified in other assets (1): 2,133 2,025 Cash, cash equivalents and restricted cash shown in statement of cash flows $ 75,042 $ 105,654 (1) Restricted cash consists of collateral required for leased office space. The short-term or long-term classification regarding the collateral for the leased office space is determined in accordance with the expiration of the underlying leases. |
Concentrations of Credit Risk | Concentrations of Credit Risk Financial instruments that potentially subject Forrester to concentrations of credit risk are principally cash, cash equivalents, marketable investments, accounts receivable, and foreign currency forward exchange contracts. The Company limits its risk exposure by having its cash, cash equivalents, and foreign currency forward exchange contracts with large commercial banks and by diversifying counterparties. No single customer accounted for greater th an 4 % of revenues or 2% of accounts receivable in any of the periods presented. Forrester does not have any off-balance sheet arrangements. |
Business Acquisitions | Business Acquisitions Forrester accounts for business combinations in accordance with the acquisition method of accounting as prescribed by FASB ASC Topic 805, Business Combinations . The acquisition method of accounting requires the Company to record the assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date, with any excess of the consideration transferred over the estimated fair value of the net assets acquired, including identifiable intangible assets, to be recorded to goodwill. The Company did no t consummate a business combination during the years ended December 31, 2023, 2022, and 2021 . |
Goodwill | Goodwill 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. Reporting units are determined based on the components of the Company's operating segments that constitute a business for which financial information is available and for which operating results are regularly reviewed by segment management. 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. When performing an impairment assessment, the Company either uses a qualitative assessment, to determine if it is more likely than not that the estimated fair value of any reporting unit is less than its carrying amount, or a quantitative analysis, to determine and compare the fair value of each reporting unit to its carrying value, or a combination of both. An impairment of goodwill is recognized to the extent that the carrying amount of a reporting unit exceeds its estimated fair value. Absent an event that indicates a specific impairment may exist, the Company has selected November 30th as the date for performing the annual goodwill impairment test. Goodwill impairment charges have no t been required for the years ended December 31, 2023, 2022 and 2021 . |
Impairment of Other Long-Lived Tangible and Intangible Assets | Impairment of Other Long-Lived Tangible and Intangible Assets Other long-lived assets primarily consist of property and equipment, operating lease right-of-use assets, and intangible assets. The Company periodically evaluates the recoverability of other long-lived assets whenever events and changes in circumstances indicate that the carrying amount of an asset may not be fully recoverable. When indicators of impairment are present, the carrying values of the asset group are evaluated in relation to the future undiscounted cash flows of the underlying business. The net book value of the underlying asset is adjusted to fair value if the sum of the expected discounted cash flows is less than book value. Fair values are based on estimates of market prices and assumptions concerning the amount and timing of estimated future cash flows and assumed discount rates, reflecting varying degrees of perceived ri sk. The Company recorded $ 2.6 million and $ 5.0 million of long-lived asset impairment charges during 2023 and 2022, respectively (refer to Note 5 – Leases ). No imp airment charges were recorded during 2021. |
Non-Current Liabilities | Non-Current Liabilities The Company records deferred tax liabilities and other liabilities that are expected to be settled over a period that exceeds one year as non-current liabilities. |
Foreign Currency | Foreign Currency The functional currency of Forrester’s wholly-owned subsidiaries is their respective local currency. These subsidiary financial statements are translated to U.S. dollars using period-end exchange rates for assets and liabilities and average exchange rates during the corresponding period for revenues and expenses, with translation gains and losses recorded as a component of accumulated other comprehensive loss in the Consolidated Balance Sheets. Gains and losses related to the remeasurement of monetary assets and liabilities denominated in a currency other than an entity’s functional currency are included in other income (expense), net in the Consolidated Statements of Operations. Forrester recorded $ 0.3 million, $ 0.2 million, and $ 1.4 million of foreign exchange losses durin g 2023, 2022, and 2021 , respectively. |
Revenue | Revenue The Company generates all of its revenues from contracts with customers, which t otaled $ 480.8 milli on for the year ended December 31, 2023. The Company recognizes revenue when a customer obtains control of promised products or services, in an amount that reflects the consideration expected to be received in exchange for those products or services. The Company follows the five-step model prescribed under Topic 606: (i) identify the contract(s) with a customer; (ii) identify the performance obligation(s) in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligation(s) in the contract; and (v) recognize revenue when (or as) the Company satisfies each performance obligation. Revenues are presented net of any sales or value added taxes collected from customers and remitted to the government. The Company accounts for a contract when it has approval and commitment from both parties, the fees, payment terms and rights of the parties regarding the products or services to be transferred are identified, the contract has commercial substance, and it is probable that substantially all of the consideration for the products and services expected to be transferred is collectible. The Company applies judgment in determining the customer’s ability and intention to pay for services expected to be transferred, which is based on factors including the customer’s payment history, management’s ability to mitigate exposure to credit risk (for example, requiring payment in advance of the transfer of products or services, or the ability to stop transferring promised products or services in the event a customer fails to pay consideration when due), and experience selling to similarly situated customers. Since the transaction price is fixed and defined as part of entering into a contract, and generally does not change, variable consideration is insignificant. Performance obligations within a contract are identified based on the products and services promised to be transferred in the contract. When a contract includes more than one promised product or service, the Company must apply judgment to determine whether the promises represent multiple performance obligations or a single, combined performance obligation. This evaluation requires the Company to determine if the promises are both capable of being distinct, where the customer can benefit from the product or service on its own or together with other resources readily available, and are distinct within the context of the contract, where the transfer of products or services is separately identifiable from other promises in the contract. When both criteria are met, each promised product or service is accounted for as a separate performance obligation. In cases where the promises are distinct, the Company is further required to evaluate if the promises are a series of products and services that are substantially the same and have the same pattern of transfer to the customer (referred to as the “series” guidance). When the Company determines that promises meet the series guidance, they are accounted for as a single, combined performance obligation. Contracts that contain multiple performance obligations require an allocation of the transaction price to each performance obligation on a relative basis according to their standalone selling prices. The Company determines standalone selling price based on the price at which the performance obligation is sold separately. If the Company does not have a history of selling a performance obligation, management applies judgment to estimate the standalone selling price, taking into consideration available information, including market conditions, factors considered to set list prices, pricing of similar products, and internal pricing objectives. The corresponding allocated revenues are recognized when (or as) the performance obligations are satisfied, as discussed further below. Research revenues The majority of research revenues are subscriptions to our research, including access to a designated portion of our research and, depending on the type of license, unlimited analyst inquiry or guidance sessions, an executive coach or advisor, peer offerings, and unlimited participation in Forrester webinars, all of which are delivered throughout the contract period. The Company has concluded that these promises represent a stand ready obligation to provide a daily information service, in which the services are the same each day, every day is distinct, and the customer simultaneously receives and consumes the benefits as the Company transfers control throughout the contract period. Accordingly, these subscriptions meet the requirements of the series guidance and are each accounted for as a single performance obligation. The Company recognizes revenue ratably over the contract term, using an output measure of time elapsed. Certain of the research products include advisory services and/or an event ticket, which are accounted for as a separate performance obligation and are recognized at the point in time the service is completed, the final deliverable is transferred to the customer, or the event occurs. Research revenues also include sales of electronic reprints, which are written research documents prepared by Forrester’s analysts and hosted via an on-line platform. Reprints include a promise to deliver a customer-selected research document and certain usage data provided through the on-line platform, which represents two performance obligations. The Company satisfies the performance obligation for the research document by providing access to the electronic reprint and accordingly recognizes revenue at that point in time. The Company satisfies the performance obligation for the data portion of the reprint on a daily basis and accordingly recognizes revenue over time. Consulting revenues Consulting revenues consist of consulting projects and advisory services. Consulting project revenues consist of the delivery of focused insights and recommendations to assist clients in developing and executing their technology and business strategies. Projects are fixed-fee arrangements that are generally completed over two weeks to three months . The Company has concluded that each project represents a single performance obligation as each is a single promise to deliver a customized engagement and deliverable. For the majority of these services, either practically or contractually, the work performed and delivered to the customer has no alternative use to the Company. Additionally, Forrester maintains an enforceable right to payment at all times throughout the contract. The Company utilizes an input method and recognizes revenue over time, based on hours expended relative to the total estimated hours required to satisfy the performance obligation. The input method closely aligns with how control of interim deliverables is transferred to the customer throughout the engagement and is also the method used internally to price the project and assess operational performance. If the Company were to enter into an agreement where it does not have an enforceable right to payment at all times, revenue would be recognized at the point in time the project is completed. Certain of our content marketing consulting projects contain a second performance obligation for access to interactive tools over a specified license period, typically 12 or 24 months . The Company recognizes revenue for this performance obligation ratably over the license period. Advisory services revenues are short-term presentations or knowledge sharing sessions (which can range from one hour to two days ), such as speeches and advisory days. Each is a promise for a Forrester analyst to deliver a deeper understanding of Forrester’s published research and represents a single performance obligation. Revenue is recognized at the point in time the service is completed or the final deliverable is transferred to the customer, which is when the customer has received the benefit(s) of the service. Events revenues Events revenues consist of either ticket or sponsorship sales for Forrester-hosted events. Each is a single promise that either allows entry to, or grants the right to promote a product or service at, a specific event. The Company concluded that each of these represents a single performance obligation. The Company recognizes revenue at the completion of the event, which is the point in time when the customer has received the benefit(s) from attending or sponsoring the event. Prepaid performance obligations Prepaid performance obligations (including event tickets, reprints, consulting projects, and advisory services) on non-cancellable contracts, for which the Company estimates will expire unused, are recognized in proportion to the pattern of related rights exercised by the customer. This assessment requires judgment, including estimating the percentage of prepaid rights that will go unexercised and anticipating the impact that future changes to products, pricing, and customer engagement will have on actual expirations. The Company updates estimates used to recognize unexercised rights on a quarterly basis. Contract modifications Consulting contracts are occasionally modified to update the scope of the services purchased. Since a consulting project is a single performance obligation that is only partially satisfied at the modification date, the updated project requirements are not distinct and the modification is accounted for as part of the existing contract. The effect of the modification on the transaction price and the Company’s measure of progress for the performance obligation to which it relates is recognized as an adjustment to revenue (either an increase or decrease) on a cumulative catch-up basis. For the year ended December 31, 2023, the Company recorded an immaterial amount of cumulative catch-up adjustments. Refer to Note 12 – Operating Segment and Enterprise Wide Reporting for a summary of disaggregated revenue by geographic region. |
Accounts Receivable | Accounts receivable 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, the Company records a receivable on the date the 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 no contract assets as of December 31, 2023. The majority of the Company’s contracts are non-cancelable. However, for contracts that are cancelable 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 invoiced for annual periods, and payment is expected within one year from the transfer of products and services, the Company does not adjust its receivables or transaction price for the effects of a significant financing component. |
Deferred revenue | Deferred revenue The Company refers to contract liabilities as deferred revenue in 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 cancelable contract. During the years ended December 31, 2023 and 2022, the Company recognized approxim ately $ 166.3 million a nd $ 189.2 million of revenue, respectively, related to its deferred revenue balance at January 1 of each such period. Approximatel y $ 385.6 million of reve nue is expected to be recognized during the next 24 months from remaining performance obligations as of December 31, 2023 . |
Cost To Obtain Contracts | Cost to Obtain Contracts 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 in the Consolidated Balance Sheets. The Company elected the practical expedient to account 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 of the expense related to deferred commissions wa s $ 39.8 mi llion, $ 45.9 million, and $ 43.9 million for the years ended December 31, 2023, 2022, and 2021 , respectively, and is recorded in selling and marketing expenses in the Consolidated Statements of Operations. The Company evaluates the recoverability of deferred commissions at each balance sheet date and there were no impairments recorded during 2023, 2022, or 2021 . |
Leases | Leases The Company determines whether an arrangement is a lease at inception of the arrangement. The Company accounts for a lease when it has the right to control the leased asset for a period of time while obtaining substantially all of the assets’ economic benefits. 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 in the Consolidated Balance Sheets, while short-term operating lease liabilities are recorded within accrued expenses and other current liabilities. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. The discount rate used to determine the present value of the lease payments is the Company’s incremental borrowing rate based on the information available at lease inception, as generally an implicit rate in the lease is not readily determinable. An operating lease ROU asset includes all lease payments, lease incentives and initial direct costs incurred. Some of the Company’s leases include options to extend or terminate the lease. When determining the lease term, these options are included in the measurement and recognition of the Company’s ROU assets and lease liabilities when it is reasonably certain that the Company will exercise the option(s). The Company considers various economic factors when making this determination, including, but not limited to, the significance of leasehold improvements incurred in the office space, the difficulty in replacing the asset, underlying contractual obligations, and specific characteristics unique to a particular lease. Subsequent to entering into a lease arrangement, the Company reassesses the certainty of exercising options to extend or terminate a lease. When it becomes reasonably certain that the Company will exercise an option that was not included in the lease term, the Company accounts for the change in circumstances as a lease modification, which results in the remeasurement of the ROU asset and lease liability as of the modification date. Lease expense for operating leases is recognized on a straight-line basis over the lease term based on the total lease payments (which include initial direct costs and lease incentives). The expense is included in operating expenses in the Consolidated Statements of Operations. The Company’s lease agreements generally contain lease and non-lease components. Non-lease components are fixed charges stated in an agreement and primarily include payments for parking at the leased office facilities. The Company accounts for the lease and fixed payments for non-lease components as a single lease component under Topic 842, which increases the amount of the ROU assets and lease liabilities. Most of the Company’s lease agreements also contain variable payments, primarily maintenance-related costs, which are expensed as incurred and not included in the measurement of the ROU assets and lease liabilities. Leases with an initial term of twelve months or less are not recorded in the Consolidated Balance Sheets and are not material. |
Advertising Costs | Advertising Costs The Company expenses advertising costs as incurred. Advertising expense for the years ended December 31, 2023, 2022, and 2021 w as $ 1.7 mil lion, $ 2.3 million, and $ 2.1 million, respectively. These expenses consisted primarily of online marketing and are included in selling and marketing expense in the Consolidated Statements of Operations. |
Stock-Based Compensation | Stock-Based Compensation The Company recognizes the fair value of stock-based compensation expense over the requisite service period of the individual grantee, which generally equals the vesting period. Forfeitures are recognized as they occur and all income tax effects related to settlements of share-based payment awards are reported in earnings as an increase or decrease to income tax expense. All income tax-related cash flows resulting from share-based payments are reported as operating activities in the Consolidated Statements of Cash Flows and cash paid by directly withholding shares for tax withholding purposes is classified as a financing activity. Stock-based compensation expense was recorded in the following expense categories (in thousands): Years Ended December 31, 2023 2022 2021 Cost of services and fulfillment $ 9,068 $ 8,435 $ 6,057 Selling and marketing 2,943 2,774 1,698 General and administrative 3,475 3,334 2,315 Total $ 15,486 $ 14,543 $ 10,070 The options granted under the equity incentive plan and sha res subject to the employee stock purchase plan were valued utilizing the Black-Scholes model using the following assumptions and had the following fair values ( no options were granted i n 2022 or 2021): Years Ended December 31, 2023 2022 2021 Equity Incentive Plans Employee Stock Purchase Plan Employee Stock Purchase Plan Employee Stock Purchase Plan Average risk-free interest rate 4.27 % 5.51 % 3.71 % 0.05 % Expected dividend yield 0.0 % 0.0 % 0.0 % 0.0 % Expected life 4.75 Years 0.5 Years 0.5 Years 0.5 Years Expected volatility 43 % 35 % 33 % 30 % Weighted average fair value $ 14.24 $ 7.90 $ 10.22 $ 11.20 Expected volatility is based on the historical volatility of Forrester’s common stock as well as management’s expectations of future volatility over the expected term of the awards granted. The risk-free interest rate is based on the U.S. Treasury Constant Maturity rate with an equivalent remaining term. The expected term calculation is based upon the option period of the employee stock purchase plan, and for options, it is based upon Forrester's historical experience of exercise patterns. The unamortized fair value of stock-based awards as of December 31, 2023 w as $ 27.7 m illion with a weighted average remaining recognition period of 2.5 years . |
Depreciation and Amortization | Depreciation and Amortization Forrester provides for depreciation and amortization of property and equipment, computed using the straight-line method, over their estimated useful lives of its assets as follows: Estimated Useful Life Computers and equipment 3 to 10 Years Computer software 3 to 5 Years Furniture and fixtures 7 Years Leasehold improvements Shorter of asset life or lease term Forrester provides for amortization of intangible assets, computed using an accelerated method according to the expected cash flows to be received from the underlying assets, over their estimated useful lives as follows: Estimated Useful Life Customer relationships 5 to 9 Years Technology 1 to 8 Years Trademarks 6 to 8 Years |
Income Taxes | Income Taxes Forrester recognizes deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the financial statements and tax basis of assets and liabilities as well as operating loss carryforwards. Forrester’s provision for income taxes is composed of a current and a deferred provision for federal, state, and foreign jurisdictions. The current provision is calculated as the estimated taxes payable or refundable on tax returns for the current year. The deferred provision is calculated as the net change during the year in deferred tax assets and liabilities. Valuation allowances are provided if, based on the weight of available evidence, it is more likely than not that some or all of the deferred tax asset will not be realized. Forrester accounts for uncertain tax positions using a “more-likely-than-not” threshold for recognizing and resolving uncertain tax positions. The evaluation of uncertain tax positions is based on factors including, but not limited to, changes in tax law, the measurement of tax positions taken or expected to be taken in tax returns, the effective settlement of matters subject to audit, new audit activity, and changes in facts or circumstances related to a tax position. The Company evaluates these tax positions on a quarterly basis. The Company also accrues for potential interest and penalties related to unrecognized tax benefits in income tax expense. |
Net Income Per Common Share | Net Income Per Common Share Basic net income per common share is computed by dividing net income by the basic weighted average number of common shares outstanding during the period. Diluted net income per common share is computed by dividing net income 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 stock equivalents consist of common stock issuable upon the exercise of outstanding stock options and the vesting of restricted stock units. Basic and diluted weighted average common shares are as follows (in thousands): Years Ended December 31, 2023 2022 2021 Basic weighted average common shares outstanding 19,183 18,967 19,110 Weighted average common equivalent shares 75 205 247 Diluted weighted average common shares outstanding 19,258 19,172 19,357 Options and restricted stock units excluded from diluted weighted 730 210 3 |
Recent Accounting Pronouncements | Recent Accounting Pronouncements 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. In December 2022, the FASB issued ASU No. 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848 . The amendments in this update defer the sunset date of Topic 848 from December 31, 2022, to December 31, 2024, after which entities will no longer be permitted to apply the relief in Topic 848. The amendments in this update apply to all entities, subject to meeting certain criteria, that have contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The standard has not impacted the Company’s financial position or results of operations, and will not have an impact in the future as the Company no longer has any financial instruments that reference LIBOR. In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280) - Improvements to Reportable Segment Disclosures . The new standard enhances the disclosures of reportable segment information, primarily in regards to significant segment expenses. The new standard will be effective for the Company for the annual periods beginning January 1, 2024, and for interim periods beginning January 1, 2025, with early adoption permitted. Upon adoption, the guidance should be applied retrospectively to all prior periods presented in the financial statements. The Company is currently evaluating the impact of adoption of the standard on its consolidated financial statements. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740) - Improvements to Income Tax Disclosures . The new standard enhances income tax disclosure requirements by requiring specified categories and greater disaggregation within the rate reconciliation table, disclosure of income taxes paid by jurisdiction, and providing clarification on uncertain tax positions and related financial statement impacts. The new standard will be effective for the Company on January 1, 2025, with early adoption permitted. The Company is currently evaluating the impact of adoption of the standard on its consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of End-of-period Cash and Cash Equivalents and Cash, Cash Equivalents and Restricted Cash from Financial Statements | 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 in the accompanying Consolidated Statements of Cash Flows (in thousands). For the Year Ended December 31, 2023 2022 Cash and cash equivalents shown in balance sheets $ 72,909 $ 103,629 Restricted cash classified in other assets (1): 2,133 2,025 Cash, cash equivalents and restricted cash shown in statement of cash flows $ 75,042 $ 105,654 (1) Restricted cash consists of collateral required for leased office space. The short-term or long-term classification regarding the collateral for the leased office space is determined in accordance with the expiration of the underlying leases. |
Summary of Stock-Based Compensation Expense Recorded in Expense Categories | Stock-based compensation expense was recorded in the following expense categories (in thousands): Years Ended December 31, 2023 2022 2021 Cost of services and fulfillment $ 9,068 $ 8,435 $ 6,057 Selling and marketing 2,943 2,774 1,698 General and administrative 3,475 3,334 2,315 Total $ 15,486 $ 14,543 $ 10,070 |
Shares Subject to Employee Stock Purchase Plan Valuation Assumptions | The options granted under the equity incentive plan and sha res subject to the employee stock purchase plan were valued utilizing the Black-Scholes model using the following assumptions and had the following fair values ( no options were granted i n 2022 or 2021): Years Ended December 31, 2023 2022 2021 Equity Incentive Plans Employee Stock Purchase Plan Employee Stock Purchase Plan Employee Stock Purchase Plan Average risk-free interest rate 4.27 % 5.51 % 3.71 % 0.05 % Expected dividend yield 0.0 % 0.0 % 0.0 % 0.0 % Expected life 4.75 Years 0.5 Years 0.5 Years 0.5 Years Expected volatility 43 % 35 % 33 % 30 % Weighted average fair value $ 14.24 $ 7.90 $ 10.22 $ 11.20 |
Depreciation and Amortization of Property and Equipment, Useful Life | Forrester provides for depreciation and amortization of property and equipment, computed using the straight-line method, over their estimated useful lives of its assets as follows: Estimated Useful Life Computers and equipment 3 to 10 Years Computer software 3 to 5 Years Furniture and fixtures 7 Years Leasehold improvements Shorter of asset life or lease term |
Amortization of Intangible Assets, Estimated Useful Life | Forrester provides for amortization of intangible assets, computed using an accelerated method according to the expected cash flows to be received from the underlying assets, over their estimated useful lives as follows: Estimated Useful Life Customer relationships 5 to 9 Years Technology 1 to 8 Years Trademarks 6 to 8 Years |
Schedule of Basic and Diluted Weighted Average Common Shares | Basic and diluted weighted average common shares are as follows (in thousands): Years Ended December 31, 2023 2022 2021 Basic weighted average common shares outstanding 19,183 18,967 19,110 Weighted average common equivalent shares 75 205 247 Diluted weighted average common shares outstanding 19,258 19,172 19,357 Options and restricted stock units excluded from diluted weighted 730 210 3 |
Marketable Investments (Tables)
Marketable Investments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Company's Marketable Investments | The following table summarizes the Company’s marketable investments (in thousands): As of December 31, 2023 Gross Gross Amortized Unrealized Unrealized Market Cost Gains Losses Value Corporate obligations $ 18,049 $ — $ ( 72 ) $ 17,977 Federal agency obligations 2,000 — ( 7 ) 1,993 Money market funds 31,610 — — 31,610 Total $ 51,659 $ — $ ( 79 ) $ 51,580 As of December 31, 2022 Gross Gross Amortized Unrealized Unrealized Market Cost Gains Losses Value Corporate obligations $ 17,900 $ 8 $ ( 205 ) $ 17,703 Federal agency obligations 1,999 — ( 14 ) 1,985 Total $ 19,899 $ 8 $ ( 219 ) $ 19,688 |
Summarizes the Maturity Periods of Marketable Investments | The following table summarizes the maturity periods of the marketable investments in the Company’s portfolio as of December 31, 2023 (in thousands): 2024 2025 Total Corporate obligations $ 16,037 $ 1,940 $ 17,977 Federal agency obligations 1,993 — 1,993 Money market funds 31,610 — 31,610 Total $ 49,640 $ 1,940 $ 51,580 |
Unrealized Losses on Debt Investments | 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): As of December 31, 2023 Less Than 12 Months 12 Months or Greater Market Unrealized Market Unrealized Value Losses Value Losses Corporate obligations $ 13,098 $ 8 $ 4,879 $ 64 Federal agency obligations — — 1,993 7 Total $ 13,098 $ 8 $ 6,872 $ 71 As of December 31, 2022 Less Than 12 Months 12 Months or Greater Market Unrealized Market Unrealized Value Losses Value Losses Corporate obligations $ 9,619 $ 139 $ 8,084 $ 66 Federal agency obligations 1,985 14 — — Total $ 11,604 $ 153 $ 8,084 $ 66 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Goodwill by Segment and Changes in Carrying Amount of Goodwill | A summary of goodwill by segment and the changes in the carrying amount of goodwill is shown in the following table (in thousands): Research Consulting Total Balance at December 31, 2021 $ 236,770 $ 8,224 $ 244,994 Foreign currency translation adjustments ( 2,750 ) ( 95 ) ( 2,845 ) Balance at December 31, 2022 234,020 8,129 242,149 Foreign currency translation adjustments 2,038 70 2,108 Balance at December 31, 2023 $ 236,058 $ 8,199 $ 244,257 |
Summary of Intangible Assets | A summary of Forrester’s intangible assets is as follows (in thousands): December 31, 2023 Gross Net Carrying Accumulated Carrying Amount Amortization Amount Amortizable intangible assets: Customer relationships $ 77,640 $ 42,091 $ 35,549 Technology 16,524 15,950 574 Trademarks 12,519 11,005 1,514 Total $ 106,683 $ 69,046 $ 37,637 December 31, 2022 Gross Net Carrying Accumulated Carrying Amount Amortization Amount Amortizable intangible assets: Customer relationships $ 77,786 $ 33,805 $ 43,981 Technology 16,803 14,696 2,107 Trademarks 12,472 9,056 3,416 Total $ 107,061 $ 57,557 $ 49,504 |
Summary of Estimated Intangible Assets Amortization Expense | Estimated intangible asset amortization expense for each of the five succeeding years is as follows (in thousands): 2024 $ 9,955 2025 8,881 2026 8,396 2027 8,324 2028 2,081 Total $ 37,637 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Summary of Company's Total Outstanding Borrowings | The following table summarizes the Company’s total outstanding borrowings as of the dates indicated (in thousands): Description: December 31, 2023 December 31, 2022 Revolving credit facility (1) (2) (3) $ 35,000 $ 50,000 (1) The contractual annualized interest rate as of December 31, 2023 on the Revolving Credit Facility was 6.70596 %. (2) The Company had $ 114.4 million of available borrowing capacity on the Revolving Credit Facility (not including the expansion feature) as of December 31, 2023 . (3) The weighted average annual effective rate on the Company's total debt outstanding for the years ended December 31, 2023 and 2022 wa s 6.3 % and 2.9 %, respectively. |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Summary of Components of Lease Expense | The components of lease expense were as follows (in thousands): Year Ended Year Ended Year Ended December 31, 2023 December 31, 2022 December 31, 2021 Operating lease cost $ 12,671 $ 14,284 $ 15,527 Short-term lease cost 981 754 439 Variable lease cost 4,394 5,416 5,582 Sublease income ( 521 ) ( 746 ) ( 549 ) Total lease cost $ 17,525 $ 19,708 $ 20,999 |
Summary of Additional Lease Information | Additional lease information is summarized in the following table (in thousands, except lease term and discount rate): Year Ended Year Ended December 31, 2023 December 31, 2022 Cash paid for amounts included in the measurement of $ 13,839 $ 12,939 Operating ROU assets obtained in exchange for $ 1,110 $ 323 Weighted-average remaining lease term - operating 4.3 5.1 Weighted-average discount rate - operating leases 4.3 % 4.3 % |
Summary of Future Minimum Lease Payments and Sublease Cash Receipts Under Non-Cancelable Leases | Future minimum lease payments under non-cancelable leases and estimated future sublease cash receipts from non-cancelable arrangements as of December 31, 2023 are as follows (in thousands): Operating Lease Sublease Payments Cash Receipts 2024 $ 16,001 $ 624 2025 13,899 — 2026 12,344 — 2027 5,724 — 2028 2,889 — Thereafter 6,049 — Total lease payments 56,906 $ 624 Less imputed interest ( 5,052 ) Present value of lease liabilities $ 51,854 |
Summary of Lease Balances | Lease balances are as follows (in thousands): As of December 31, 2023 Operating lease ROU assets $ 39,722 Short-term operating lease liabilities (1) $ 14,181 Non-current operating lease liabilities 37,673 Total operating lease liabilities $ 51,854 (1) Included in accrued expenses and other current liabilities in the Consolidated Balance Sheets. |
Derivatives and Hedging (Tables
Derivatives and Hedging (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Contracts Amounts Recognized in Consolidated Statement of Operations | The table below provides information regarding amounts recognized in the Consolidated Statements of Operations for derivative contracts for the periods indicated (in thousands): For the Year Ended December 31, Amount recorded in: 2023 2022 2021 I nterest expense (1) $ — $ ( 103 ) $ ( 807 ) Other income (expense ), net (2) ( 13 ) ( 194 ) ( 90 ) Total $ ( 13 ) $ ( 297 ) $ ( 897 ) (1) Consists of interest expense from the interest rate swap contract. (2) Consists of net reali zed losses on f oreign currency forward contracts. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Summary of Company's Fair Value Hierarchy for its Financial Assets and Liabilities | The following table represents the Company’s fair value hierarchy for its financial assets and liabilities that are measured at fair value on a recurring basis (in thousands): As of December 31, 2023 Level 1 Level 2 Total Assets: Money market funds (1) $ 55,128 $ — $ 55,128 Marketable investments (3) — 19,970 19,970 Total Assets $ 55,128 $ 19,970 $ 75,098 As of December 31, 2022 Level 1 Level 2 Total Assets: Money market funds (2) $ 5,800 $ — $ 5,800 Marketable investments (3) — 19,688 19,688 Total Assets $ 5,800 $ 19,688 $ 25,488 (1) U.S. based funds of $ 23.5 million are included in cash and cash equivalents and non-U.S. based funds of $ 31.6 million included in marketable investments in the Consolidated Balance Sheets. (2) Represents U.S. based funds and are included in cash and cash equivalents in the Consolidated Balance Sheets. (3) Marketable investments have been initially valued at the transaction price and subsequently valued, at the end of the reporting period, 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. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Before Income Taxes | Income before income taxes consists of the following (in thousands): Years Ended December 31, 2023 2022 2021 Domestic $ ( 4,058 ) $ 16,552 $ 22,424 Foreign 10,343 14,172 10,767 Total $ 6,285 $ 30,724 $ 33,191 |
Components of Income Tax Expense | The components of the income tax expense are as follows (in thousands): Years Ended December 31, 2023 2022 2021 Current: Federal $ 3,867 $ 9,349 $ 4,203 State 1,922 3,819 2,272 Foreign 2,907 2,402 2,147 Total current 8,696 15,570 8,622 Deferred: Federal ( 3,872 ) ( 5,513 ) 334 State ( 1,597 ) ( 1,788 ) ( 663 ) Foreign 8 649 54 Total deferred ( 5,461 ) ( 6,652 ) ( 275 ) Income tax expense $ 3,235 $ 8,918 $ 8,347 |
Reconciliation of Federal Statutory Rate | A reconciliation of the federal statutory rate to Forrester’s effective tax rate is as follows: Years Ended December 31, 2023 2022 2021 Income tax provision at federal statutory rate 21.0 % 21.0 % 21.0 % Increase (decrease) in tax resulting from: State tax provision, net of federal benefit 8.1 5.2 3.8 Foreign tax rate differential 2.7 ( 0.5 ) ( 0.4 ) Stock compensation 17.5 0.9 ( 0.4 ) Withholding taxes 6.2 1.7 1.3 Non-deductible expenses 8.1 1.5 — Permanent differences ( 1.7 ) ( 0.3 ) ( 0.3 ) Change in valuation allowance 0.5 1.0 — Foreign subsidiary income subject to U.S. tax 1.2 1.3 0.2 Foreign-derived intangible income benefit ( 3.8 ) ( 0.7 ) ( 0.7 ) Change in tax legislation ( 8.1 ) ( 1.6 ) ( 0.3 ) Foreign exchange gain on previously taxed earnings and profits 1.6 — — Other, net ( 1.8 ) ( 0.5 ) 0.9 Effective tax rate 51.5 % 29.0 % 25.1 % |
Components of Deferred Income Taxes | The components of deferred income taxes are as follows (in thousands): As of December 31, 2023 2022 Non-deductible reserves and accruals $ 3,077 $ 2,736 Net operating loss and other carryforwards 6,262 6,215 Stock compensation 2,676 2,051 Depreciation and amortization 435 — Lease liability 12,276 17,715 Gross deferred tax asset 24,726 28,717 Less - valuation allowance ( 1,065 ) ( 989 ) Sub-total 23,661 27,728 Other liabilities ( 733 ) ( 807 ) Depreciation and amortization — ( 1,023 ) Goodwill and intangible assets ( 15,181 ) ( 18,648 ) Operating lease right-of-use assets ( 9,163 ) ( 13,705 ) Deferred commissions ( 6,545 ) ( 6,913 ) Net deferred tax liability $ ( 7,961 ) $ ( 13,368 ) |
Summary of Changes in Deferred Tax Valuation Allowance | The following table provides a summary of the changes in the deferred tax valuation allowance for the years ended December 31, 2023, 2022, and 2021 (in thousands): 2023 2022 2021 Deferred tax valuation allowance at January 1 $ 989 $ 1,114 $ 1,237 Additions 39 106 — Deductions — ( 336 ) ( 108 ) Change in tax legislation ( 4 ) 186 — Translation adjustments 41 ( 81 ) ( 15 ) Deferred tax valuation allowance at December 31 $ 1,065 $ 989 $ 1,114 |
Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is summarized as follows for the years ended December 31, 2023, 2022, and 2021 (in thousands): 2023 2022 2021 Unrecognized tax benefits at January 1 $ — $ 5 $ 28 Reductions for tax positions of prior years — ( 4 ) ( 24 ) Translation adjustments — ( 1 ) 1 Unrecognized tax benefits at December 31 $ — $ — $ 5 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Schedule of Restricted Stock Unit Activity | RSU activity for the year ended December 31, 2023 is presented below (in thousands, except per share data): Weighted- Average Number of Grant Date Shares Fair Value Unvested at December 31, 2022 682 $ 46.28 Granted 695 32.82 Vested ( 271 ) 44.95 Forfeited ( 107 ) 42.72 Unvested at December 31, 2023 999 $ 37.66 |
Schedule of Stock Option Activity | Stock option activity for the year ended December 31, 2023 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, 2022 89 $ 35.58 Granted 144 $ 33.04 Exercised ( 3 ) 34.37 Forfeited ( 29 ) 34.54 Outstanding at December 31, 2023 201 $ 33.93 6.35 $ — Exercisable at December 31, 2023 73 $ 35.51 1.37 $ — Vested and expected to vest at December 31, 2023 201 $ 33.93 6.35 $ — |
Summary of Shares Purchased by Employees Under the Stock Purchase Plan | Shares purchased by employees under the Stock Purchase Plan are as follows (in thousands, except per share data): Shares Purchase Purchase Period Ended Purchased Price February 28, 2023 63 $ 27.96 August 31, 2023 63 $ 26.04 February 28, 2022 41 $ 40.50 August 31, 2022 54 $ 35.35 |
Schedule of Components of Accumulated Other Comprehensive Loss | The components of accumulated other comprehensive loss are as follows (in thousands): Marketable Interest Rate Translation Total AOCL Balance at December 31, 2020 $ — $ ( 821 ) $ 131 $ ( 690 ) Foreign currency translation (1) — — ( 3,083 ) ( 3,083 ) Unrealized gain (loss) before reclassification, net 6 ) ( 25 ) 29 — 4 Reclassification to income, net 227 ) (2) — 580 — 580 Balance at December 31, 2021 ( 25 ) ( 212 ) ( 2,952 ) ( 3,189 ) Foreign currency translation (1) — — ( 4,807 ) ( 4,807 ) Unrealized gain (loss) before reclassification, net 10 ) ( 134 ) 137 — 3 Reclassification to income, net 28 ) (2) — 75 — 75 Balance at December 31, 2022 ( 159 ) — ( 7,759 ) ( 7,918 ) Foreign currency translation (1) — — 3,248 3,248 Unrealized gain, net of tax of $( 33 ) 99 — — 99 Balance at December 31, 2023 $ ( 60 ) $ — $ ( 4,511 ) $ ( 4,571 ) (1) The Company does not record tax provisions or benefits for the net changes in foreign currency translation adjustments as it intends to permanently reinvest undistributed earnings of its foreign subsidiaries. (2) Reclassification is related to the Company’s interest rate swap (cash flow hedge) and was recorded in interest expense in the Consolidated Statements of Operations. Refer to Note 6 – Derivatives and Hedging . |
Restructuring (Tables)
Restructuring (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Activity in Restructuring Accrual | The following table rolls forward the activity in the restructuring accrual for the January 2023 action for the year ended December 31, 2023 (in thousands): Accrual at December 31, 2022 $ 4,360 Additional restructuring and related costs 1,923 Non-cash charge (included above) ( 1,360 ) Cash payments ( 4,875 ) Accrual at December 31, 2023 $ 48 The following table rolls forward the activity in the restructuring accrual for the May 2023 action for the year ended December 31, 2023 (in thousands): Accrual at December 31, 2022 $ — Additional restructuring and related costs 10,618 Non-cash charge (included above) ( 2,253 ) Non-cash lease settlement gain (included above) 139 Cash payments ( 7,222 ) Accrual at December 31, 2023 $ 1,282 |
Operating Segment and Enterpr_2
Operating Segment and Enterprise Wide Reporting (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Information by Reportable Segment | The Company provides information by reportable segment in the tables below (in thousands): Research Consulting Events Consolidated Year Ended December 31, 2023 Research revenues $ 334,396 $ — $ — $ 334,396 Consulting revenues 28,826 89,402 — 118,228 Events revenues — — 28,155 28,155 Total segment revenues 363,222 89,402 28,155 480,779 Segment expenses ( 132,444 ) ( 45,028 ) ( 20,557 ) ( 198,029 ) Selling, marketing, administrative and other expenses ( 250,756 ) Amortization of intangible assets ( 11,956 ) Restructuring costs ( 13,272 ) Interest expense, other income, and gains on investments ( 481 ) Income before income taxes $ 6,285 Research Consulting Events Consolidated Year Ended December 31, 2022 Research revenues $ 354,453 $ — $ — $ 354,453 Consulting revenues 41,559 111,028 — 152,587 Events revenues — — 30,747 30,747 Total segment revenues 396,012 111,028 30,747 537,787 Segment expenses ( 133,566 ) ( 56,889 ) ( 21,801 ) ( 212,256 ) Selling, marketing, administrative and other expenses ( 270,381 ) Amortization of intangible assets ( 13,161 ) Restructuring costs ( 9,335 ) Interest expense, other income, and gains on investments ( 1,930 ) Income before income taxes $ 30,724 Research Consulting Events Consolidated Year Ended December 31, 2021 Research revenues $ 325,340 $ — $ — $ 325,340 Consulting revenues 47,247 108,867 — 156,114 Events revenues — — 12,861 12,861 Total segment revenues 372,587 108,867 12,861 494,315 Segment expenses ( 118,155 ) ( 51,770 ) ( 12,709 ) ( 182,634 ) Selling, marketing, administrative and other expenses ( 257,576 ) Amortization of intangible assets ( 15,129 ) Integration costs ( 334 ) Interest expense, other expense, and gains on investments ( 5,451 ) Income before income taxes $ 33,191 |
Schedule of Net Long-lived Tangible Assets by Location | Net long-lived tangible assets by location as of December 31, 2023 and 2022 are as follows (in thousands): 2023 2022 United States $ 48,001 $ 60,631 United Kingdom 8,194 8,678 Europe (excluding United Kingdom) 186 319 Asia Pacific 2,742 3,550 Total $ 59,123 $ 73,178 |
Schedule of Revenues by Geographic Destination, Based on Location Products and Services and as a Percentage of Total Revenues | Revenues by geographic destination, based on the location products and services are consumed, and as a percentage of total revenues for the years ended December 31, 2023, 2022, and 2021 are as follows (dollars in thousands): 2023 2022 2021 United States $ 373,483 $ 426,041 $ 381,662 Europe (excluding United Kingdom) 37,912 36,664 41,264 United Kingdom 21,311 20,079 21,913 Canada 16,416 20,759 17,213 Asia Pacific 23,604 26,548 26,768 Other 8,053 7,696 5,495 Total $ 480,779 $ 537,787 $ 494,315 2023 2022 2021 United States 78 % 79 % 77 % Europe (excluding United Kingdom) 8 7 9 United Kingdom 4 4 5 Canada 3 4 3 Asia Pacific 5 5 5 Other 2 1 1 Total 100 % 100 % 100 % |
Certain Balance Sheet Accounts
Certain Balance Sheet Accounts (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Property and Equipment | Property and equipment as of December 31, 2023 and 2022 is recorded at cost less accumulated depreciation and consists of the following (in thousands): 2023 2022 Computers and equipment $ 10,128 $ 14,303 Computer software 34,641 34,903 Furniture and fixtures 9,188 9,745 Leasehold improvements 29,506 30,285 Total property and equipment 83,463 89,236 Less accumulated depreciation ( 64,062 ) ( 66,028 ) Total property and equipment, net $ 19,401 $ 23,208 |
Summary of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities as of December 31, 2023 and 2022 consist of the following (in thousands): 2023 2022 Payroll and related benefits $ 43,426 $ 53,581 Taxes 4,680 5,823 Lease liability 14,181 13,632 Other 19,195 17,971 Total $ 81,482 $ 91,007 |
Summary of Non-Current Liabilities | Non-current liabilities as of December 31, 2023 and 2022 consist of the following (in thousands): 2023 2022 Deferred tax liability $ 8,679 $ 14,133 Other 2,481 2,509 Total $ 11,160 $ 16,642 |
Summary of Allowance for Doubtful Accounts | A rollforward of the allowance for doubtful accounts as of and for the years ended December 31, 2023, 2022, and 2021 is as follows (in thousands): 2023 2022 2021 Balance, beginning of year $ 560 $ 610 $ 708 Provision for doubtful accounts 701 638 225 Write-offs ( 692 ) ( 669 ) ( 318 ) Translation adjustments 5 ( 19 ) ( 5 ) Balance, end of year $ 574 $ 560 $ 610 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended | |||
Dec. 31, 2023 USD ($) ConsumerandBusinessLeader Customer shares | Dec. 31, 2022 USD ($) shares | Dec. 31, 2021 USD ($) shares | Dec. 31, 2020 | |
Summary Of Significant Accounting Policy [Line Items] | ||||
Number of real time feedback votes included in annual surveys | Customer | 100 | |||
Change in accounting principle, accounting standards update, adopted | true | |||
Lease package practical expedients | true | |||
Original maturities | 90 days | |||
Number of customers accounted for revenues or accounts receivable greater than 3% or 3% of total | Customer | 0 | |||
Annual goodwill impairment test, period | November 30th | |||
Business combination amount | $ 0 | $ 0 | $ 0 | |
Goodwill impairment charges | 0 | 0 | 0 | |
Long-lived asset impairment charges | $ 2,600,000 | 5,000,000 | 0 | |
Impairment, Long-Lived Asset, Held-for-Use, Statement of Income or Comprehensive Income [Extensible Enumeration] | Property And Equipment Write Offs And Impairments | |||
Foreign exchange losses | $ (300,000) | (200,000) | (1,400,000) | |
Revenue from Contract with Customer, Excluding Assessed Tax | $ 480,779,000 | 537,787,000 | 494,315,000 | |
Specified license period | 12 or 24 months | |||
Contract assets | $ 0 | |||
Deferred revenue recognized | 166,300,000 | 189,200,000 | ||
Revenue expected to be recognized | 385,600,000 | |||
Amortization expense related to deferred commissions | 39,800,000 | 45,900,000 | 43,900,000 | |
Impairment of deferred commissions | $ 0 | 0 | 0 | |
Option to extend description | Some of the Company’s leases include options to extend or terminate the lease. When determining the lease term, these options are included in the measurement and recognition of the Company’s ROU assets and lease liabilities when it is reasonably certain that the Company will exercise the option(s). | |||
Advertising expense | $ 1,700,000 | $ 2,300,000 | $ 2,100,000 | |
Stock options granted | shares | 144,000 | 0 | 0 | |
Unamortized fair value stock based compensation | $ 27,700,000 | |||
Weighted average remaining recognition period | 2 years 6 months | |||
Research Service Revenue [Member] | Customer Concentration Risk [Member] | Major Customer [Member] | ||||
Summary Of Significant Accounting Policy [Line Items] | ||||
Customer accounted for percentage | 4% | |||
Topic 842 [Member] | ||||
Summary Of Significant Accounting Policy [Line Items] | ||||
Change in accounting principle, accounting standards update, adopted | true | |||
Change in accounting principle, accounting standards update, immaterial effect | true | |||
ASU No. 2019-12 [Member] | ||||
Summary Of Significant Accounting Policy [Line Items] | ||||
Change in accounting principle, accounting standards update, adopted | true | |||
Change in accounting principle, accounting standards update, immaterial effect | true | |||
Minimum | ||||
Summary Of Significant Accounting Policy [Line Items] | ||||
Number of consumers and business leaders and technology leaders included in annual surveys | ConsumerandBusinessLeader | 700,000 | |||
Consulting services period | 14 days | |||
Advisory services period | 1 hour | |||
Maximum | ||||
Summary Of Significant Accounting Policy [Line Items] | ||||
Consulting services period | 3 months | |||
Advisory services period | 2 days | |||
Contract with customer, expected payment term | one year |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Summary of End-of-period Cash and Cash Equivalents and Cash, Cash Equivalents and Restricted Cash from Financial Statements (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Cash and Cash Equivalents [Abstract] | ||
Cash and cash equivalents shown in balance sheets | $ 72,909 | $ 103,629 |
Restricted cash, non-current | $ 2,133 | $ 2,025 |
Restricted Cash, Noncurrent, Asset, Statement of Financial Position [Extensible List] | Other assets | Other assets |
Cash, cash equivalents and restricted cash shown in statement of cash flows | $ 75,042 | $ 105,654 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Additional Information1 (Detail) | Dec. 31, 2023 |
Maximum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-01-01 | |
Summary Of Significant Accounting Policy [Line Items] | |
Performance obligation, revenue expected to be recognized | 24 months |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Summary of Stock-Based Compensation Expense Recorded in Expense Categories (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Total allocated share-based compensation expense | $ 15,486 | $ 14,543 | $ 10,070 |
Cost of Services and Fulfillment [Member] | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Total allocated share-based compensation expense | 9,068 | 8,435 | 6,057 |
Selling and Marketing [Member] | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Total allocated share-based compensation expense | 2,943 | 2,774 | 1,698 |
General and Administrative [Member] | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Total allocated share-based compensation expense | $ 3,475 | $ 3,334 | $ 2,315 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Fair Value of Options Granted Under Equity Incentive Plan and Shares Subject to Employee Stock Purchase Plan Valuation Assumptions (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Equity Incentive Plans | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Average risk-free interest rate | 4.27% | ||
Expected dividend yield | 0% | ||
Expected life | 4 years 9 months | ||
Expected volatility | 43% | ||
Weighted average fair value | $ 14.24 | ||
Employee Stock Purchase Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Average risk-free interest rate | 5.51% | 3.71% | 0.05% |
Expected dividend yield | 0% | 0% | 0% |
Expected life | 6 months | 6 months | 6 months |
Expected volatility | 35% | 33% | 30% |
Weighted average fair value | $ 7.9 | $ 10.22 | $ 11.2 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Depreciation and Amortization of Property and Equipment, Useful Life (Detail) | 12 Months Ended |
Dec. 31, 2023 | |
Computers and Equipment [Member] | Minimum | |
Property Plant And Equipment [Line Items] | |
Property and Equipment, Estimated Useful Life | 3 years |
Computers and Equipment [Member] | Maximum | |
Property Plant And Equipment [Line Items] | |
Property and Equipment, Estimated Useful Life | 10 years |
Computer Software [Member] | Minimum | |
Property Plant And Equipment [Line Items] | |
Property and Equipment, Estimated Useful Life | 3 years |
Computer Software [Member] | Maximum | |
Property Plant And Equipment [Line Items] | |
Property and Equipment, Estimated Useful Life | 5 years |
Furniture and Fixtures [Member] | |
Property Plant And Equipment [Line Items] | |
Property and Equipment, Estimated Useful Life | 7 years |
Leasehold Improvements [Member] | |
Property Plant And Equipment [Line Items] | |
Property and Equipment, Estimated Useful Life | Shorter of asset life or lease term |
Property, Plant, and Equipment, Useful Life, Term, Description [Extensible Enumeration] | Property, Plant and Equipment, Net |
Summary of Significant Accou_10
Summary of Significant Accounting Policies - Amortization of Intangible Assets, Estimated Useful Life (Detail) | Dec. 31, 2023 |
Customer Relationships [Member] | Minimum | |
Finite Lived Intangible Assets [Line Items] | |
Amortization of intangible assets, estimated useful life | 5 years |
Customer Relationships [Member] | Maximum | |
Finite Lived Intangible Assets [Line Items] | |
Amortization of intangible assets, estimated useful life | 9 years |
Technology [Member] | Minimum | |
Finite Lived Intangible Assets [Line Items] | |
Amortization of intangible assets, estimated useful life | 1 year |
Technology [Member] | Maximum | |
Finite Lived Intangible Assets [Line Items] | |
Amortization of intangible assets, estimated useful life | 8 years |
Trademarks [Member] | Minimum | |
Finite Lived Intangible Assets [Line Items] | |
Amortization of intangible assets, estimated useful life | 6 years |
Trademarks [Member] | Maximum | |
Finite Lived Intangible Assets [Line Items] | |
Amortization of intangible assets, estimated useful life | 8 years |
Summary of Significant Accou_11
Summary of Significant Accounting Policies - Schedule of Basic and Diluted Weighted Average Common Shares (Detail) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |||
Basic weighted average common shares outstanding | 19,183 | 18,967 | 19,110 |
Weighted average common equivalent shares | 75 | 205 | 247 |
Diluted weighted average common shares outstanding | 19,258 | 19,172 | 19,357 |
Options and restricted stock units excluded from diluted weighted average share calculation as effect would have been anti-dilutive | 730 | 210 | 3 |
Acquisitions - Summary of Fair
Acquisitions - Summary of Fair Value of Aggregate Consideration Paid (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Business Acquisition [Line Items] | |||
Total | $ 0 | $ 0 | $ 0 |
Acquisitions - Summary of Fai_2
Acquisitions - Summary of Fair Value of Aggregate Consideration Payable (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Business Acquisition [Line Items] | |||
Total | $ 0 | $ 0 | $ 0 |
Marketable Investments - Summar
Marketable Investments - Summary of Company's Marketable Investments (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized Cost | $ 51,659 | $ 19,899 |
Gross Unrealized Gains | 0 | 8 |
Gross Unrealized Losses | (79) | (219) |
Market value | 51,580 | 19,688 |
Money Market Funds [Member] | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized Cost | 31,610 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 0 | |
Market value | 31,610 | |
Corporate Obligations [Member] | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized Cost | 18,049 | 17,900 |
Gross Unrealized Gains | 0 | 8 |
Gross Unrealized Losses | (72) | (205) |
Market value | 17,977 | 17,703 |
Federal Agency Obligations [Member] | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized Cost | 2,000 | 1,999 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (7) | (14) |
Market value | $ 1,993 | $ 1,985 |
Marketable Investments - Additi
Marketable Investments - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |||
Realized gains or losses on investments | $ 0 | $ 0 | $ 0 |
Marketable Investments - Summ_2
Marketable Investments - Summarizes the Maturity Periods of Marketable Investments (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Marketable Securities [Line Items] | ||
FY2024 | $ 49,640 | |
FY2025 | 1,940 | |
Total | 51,580 | $ 19,688 |
Money Market Funds [Member] | ||
Marketable Securities [Line Items] | ||
FY2024 | 31,610 | |
FY2025 | 0 | |
Total | 31,610 | |
Corporate Obligations [Member] | ||
Marketable Securities [Line Items] | ||
FY2024 | 16,037 | |
FY2025 | 1,940 | |
Total | 17,977 | 17,703 |
Federal Agency Obligations [Member] | ||
Marketable Securities [Line Items] | ||
FY2024 | 1,993 | |
FY2025 | 0 | |
Total | $ 1,993 | $ 1,985 |
Marketable Investments - Unreal
Marketable Investments - Unrealized Losses on Debt Investments (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-Sale [Line Items] | ||
Less than 12 Months - Market Value | $ 13,098 | $ 11,604 |
Less than 12 Month - Unrealized Losses | 8 | 153 |
12 Months or Greater - Market Value | 6,872 | 8,084 |
12 Months or Greater - Unrealized Losses | 71 | 66 |
Corporate Obligations [Member] | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Less than 12 Months - Market Value | 13,098 | 9,619 |
Less than 12 Month - Unrealized Losses | 8 | 139 |
12 Months or Greater - Market Value | 4,879 | 8,084 |
12 Months or Greater - Unrealized Losses | 64 | 66 |
Federal Agency Obligations [Member] | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Less than 12 Months - Market Value | 0 | 1,985 |
Less than 12 Month - Unrealized Losses | 0 | 14 |
12 Months or Greater - Market Value | 1,993 | 0 |
12 Months or Greater - Unrealized Losses | $ 7 | $ 0 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Summary of Goodwill by Segment and Changes in Carrying Amount of Goodwill (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Goodwill [Line Items] | ||
Goodwill, Beginning Balance | $ 242,149 | $ 244,994 |
Foreign currency translation adjustments | 2,108 | (2,845) |
Goodwill, Ending Balance | 244,257 | 242,149 |
Research Segment [Member] | ||
Goodwill [Line Items] | ||
Goodwill, Beginning Balance | 234,020 | 236,770 |
Foreign currency translation adjustments | 2,038 | (2,750) |
Goodwill, Ending Balance | 236,058 | 234,020 |
Consulting Segment [Member] | ||
Goodwill [Line Items] | ||
Goodwill, Beginning Balance | 8,129 | 8,224 |
Foreign currency translation adjustments | 70 | (95) |
Goodwill, Ending Balance | $ 8,199 | $ 8,129 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Accumulated goodwill impairment losses | $ 0 | ||
Amortization of intangible assets | $ 11,956,000 | $ 13,161,000 | $ 15,129,000 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Summary of Intangible Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 106,683 | $ 107,061 |
Accumulated Amortization | 69,046 | 57,557 |
Total | 37,637 | 49,504 |
Customer Relationships [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 77,640 | 77,786 |
Accumulated Amortization | 42,091 | 33,805 |
Total | 35,549 | 43,981 |
Technology [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 16,524 | 16,803 |
Accumulated Amortization | 15,950 | 14,696 |
Total | 574 | 2,107 |
Trademarks [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 12,519 | 12,472 |
Accumulated Amortization | 11,005 | 9,056 |
Total | $ 1,514 | $ 3,416 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets - Summary of Estimated Intangible Assets Amortization Expense (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Finite Lived Intangible Assets Future Amortization Expense [Abstract] | ||
2024 | $ 9,955 | |
2025 | 8,881 | |
2026 | 8,396 | |
2027 | 8,324 | |
2028 | 2,081 | |
Total | $ 37,637 | $ 49,504 |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 21, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | [1],[2],[3] | ||
Debt Instrument [Line Items] | |||||
Write off of debt issuance cost | $ 0 | ||||
Line of credit facility, covenant terms description | replace the minimum fixed charge coverage ratio financial covenant under the Existing Credit Agreement with a minimum consolidated interest coverage ratio of 3.50:1.00 | ||||
Percentage of voting equity of subsidiaries | 65% | ||||
Maximum | LIBOR [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 1.75% | ||||
Maximum | Base Rate [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 0.75% | ||||
Minimum | LIBOR [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 1.25% | ||||
Minimum | Base Rate [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 0.25% | ||||
Term Loans [Member] | Line of Credit [Member] | |||||
Debt Instrument [Line Items] | |||||
Proceeds from line of credit | $ 100,000 | ||||
Term Loans [Member] | Term Loan A [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | 125,000 | ||||
Revolving Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Aggregate principal amount | $ 75,000 | $ 35,000 | [1],[2],[3] | $ 50,000 | |
Credit facility maturity date | Dec. 31, 2026 | ||||
Revolving Credit Facility [Member] | Line of Credit [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | $ 75,000 | ||||
Proceeds from line of credit | 100,000 | ||||
Revolving Credit Facility [Member] | Letters of Credit [Member] | |||||
Debt Instrument [Line Items] | |||||
Available for issuance of letter of credit | $ 5,000 | ||||
Debt cost incurred related to revolving credit facility | 500 | ||||
Debt instrument, amortized over the term | 5 years | ||||
Issuance of letter of credit | $ 600 | ||||
Revolving Credit Facility [Member] | Maximum | |||||
Debt Instrument [Line Items] | |||||
Aggregate principal amount | $ 150,000 | ||||
Increase (decrease) in line of credit facility | $ 50,000 | ||||
Percentage of commitment fee on the unused portion of the facility | 0.20% | ||||
Revolving Credit Facility [Member] | Minimum | |||||
Debt Instrument [Line Items] | |||||
Percentage of commitment fee on the unused portion of the facility | 0.30% | ||||
[1] The Company had $ 114.4 million of available borrowing capacity on the Revolving Credit Facility (not including the expansion feature) as of December 31, 2023 . The contractual annualized interest rate as of December 31, 2023 on the Revolving Credit Facility was 6.70596 %. The weighted average annual effective rate on the Company's total debt outstanding for the years ended December 31, 2023 and 2022 wa s 6.3 % and 2.9 %, respectively. |
Debt - Summary of Company's Tot
Debt - Summary of Company's Total Outstanding Borrowings (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 21, 2021 | ||
Revolving Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Principal amount outstanding | $ 35,000 | [1],[2],[3] | $ 50,000 | [1],[2],[3] | $ 75,000 |
[1] The Company had $ 114.4 million of available borrowing capacity on the Revolving Credit Facility (not including the expansion feature) as of December 31, 2023 . The contractual annualized interest rate as of December 31, 2023 on the Revolving Credit Facility was 6.70596 %. The weighted average annual effective rate on the Company's total debt outstanding for the years ended December 31, 2023 and 2022 wa s 6.3 % and 2.9 %, respectively. |
Debt - Summary of Company's T_2
Debt - Summary of Company's Total Outstanding Borrowings (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | ||
Weighted average interest rate | 6.30% | 2.90% |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate | 6.70596% | |
Line of credit facility, available borrowing capacity | $ 114.4 |
Leases - Summary of Components
Leases - Summary of Components of Lease Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Leases [Abstract] | |||
Operating lease cost | $ 12,671 | $ 14,284 | $ 15,527 |
Short-term lease cost | 981 | 754 | 439 |
Variable lease cost | 4,394 | 5,416 | 5,582 |
Sublease income | (521) | (746) | (549) |
Total lease cost | $ 17,525 | $ 19,708 | $ 20,999 |
Leases - Summary of Additional
Leases - Summary of Additional Lease Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Leases [Abstract] | ||
Cash paid for amounts included in the measurement of operating lease liabilities | $ 13,839 | $ 12,939 |
Operating ROU assets obtained in exchange for lease obligations | $ 1,110 | $ 323 |
Weighted-average remaining lease term - operating leases (years) | 4 years 3 months 18 days | 5 years 1 month 6 days |
Weighted-average discount rate - operating leases | 4.30% | 4.30% |
Leases - Summary of Future Mini
Leases - Summary of Future Minimum Lease Payments and Sublease Cash Receipts Under Non-Cancelable Leases (Detail) $ in Thousands | Dec. 31, 2023 USD ($) |
Leases [Abstract] | |
2024 | $ 16,001 |
2025 | 13,899 |
2026 | 12,344 |
2027 | 5,724 |
2028 | 2,889 |
Thereafter | 6,049 |
Total lease payments | 56,906 |
Less imputed interest | (5,052) |
Total lease payments | 51,854 |
2024 | 624 |
2025 | 0 |
2026 | 0 |
2027 | 0 |
2028 | 0 |
Thereafter | 0 |
Total lease payments | $ 624 |
Leases - Summary of Lease Balan
Leases - Summary of Lease Balances (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | |
Leases [Abstract] | |||
Operating lease ROU assets | $ 39,722 | $ 49,970 | |
Short-term operating lease liabilities | $ 14,181 | [1] | $ 13,632 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Accrued expenses and other current liabilities | Accrued expenses and other current liabilities | |
Non-current operating lease liabilities | $ 37,673 | $ 50,751 | |
Total operating lease liabilities | $ 51,854 | ||
[1] Included in accrued expenses and other current liabilities in the Consolidated Balance Sheets. |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |
May 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Lessee Lease Description [Line Items] | ||||
ROU asset impairments and accelerated amortization | $ 1.3 | $ 3.7 | ||
Leasehold impairments | $ 0.6 | $ 1.3 | ||
Leasehold Improvements [Member] | ||||
Lessee Lease Description [Line Items] | ||||
ROU asset impairments and accelerated amortization | $ 1.9 | |||
Leasehold impairments | $ 0.7 | |||
Leasehold Improvements [Member] | California [Member] | ||||
Lessee Lease Description [Line Items] | ||||
ROU asset impairments and accelerated amortization | $ 3.7 | |||
Leasehold impairments | $ 1.3 |
Derivatives and Hedging - Addit
Derivatives and Hedging - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2019 USD ($) | |
Derivatives Fair Value [Line Items] | |
Derivative maturity year | 2022 |
Interest Rate Swap [Member] | |
Derivatives Fair Value [Line Items] | |
Derivative notional amount | $ 95,000,000 |
Derivative fixed interest rate | 1.65275% |
Interest Rate Swap [Member] | Minimum | |
Derivatives Fair Value [Line Items] | |
Derivative receive rate | 0% |
Interest Rate Swap [Member] | LIBOR [Member] | |
Derivatives Fair Value [Line Items] | |
Derivative basis rate | 0.0625% |
Derivatives and Hedging - Sched
Derivatives and Hedging - Schedule of Derivative Contracts Amounts Recognized in Consolidated Statement of Operations (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Derivative Instruments Gain Loss [Line Items] | ||||
Amount recorded in operations | $ (13) | $ (297) | $ (897) | |
Interest Expense [Member] | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Amount recorded in operations | [1] | $ 0 | $ (103) | $ (807) |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Interest Income (Expense), Net | Interest Income (Expense), Net | Interest Income (Expense), Net | |
Other Income (Expense), Net [Member] | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Amount recorded in operations | [2] | $ (13) | $ (194) | $ (90) |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) | |
[1] Consists of interest expense from the interest rate swap contract. Consists of net reali zed losses on f oreign currency forward contracts. |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Company's Fair Value Hierarchy for its Financial Assets and Liabilities (Detail) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | |||
Assets: | |||||
Fair value of investments | $ 75,098 | $ 25,488 | |||
Money Market Funds [Member] | |||||
Assets: | |||||
Fair value of cash equivalents | 55,128 | [1] | 5,800 | [2] | |
Marketable Investments [Member] | |||||
Assets: | |||||
Fair value of investments | [3] | 19,970 | 19,688 | ||
Level 1 [Member] | |||||
Assets: | |||||
Fair value of investments | 55,128 | 5,800 | |||
Level 1 [Member] | Money Market Funds [Member] | |||||
Assets: | |||||
Fair value of cash equivalents | 55,128 | [1] | 5,800 | [2] | |
Level 1 [Member] | Marketable Investments [Member] | |||||
Assets: | |||||
Fair value of investments | [3] | 0 | 0 | ||
Fair Value, Inputs, Level 2 | |||||
Assets: | |||||
Fair value of investments | 19,970 | 19,688 | |||
Fair Value, Inputs, Level 2 | Money Market Funds [Member] | |||||
Assets: | |||||
Fair value of cash equivalents | 0 | [1] | 0 | [2] | |
Fair Value, Inputs, Level 2 | Marketable Investments [Member] | |||||
Assets: | |||||
Fair value of investments | [3] | $ 19,970 | $ 19,688 | ||
[1] U.S. based funds of $ 23.5 million are included in cash and cash equivalents and non-U.S. based funds of $ 31.6 million included in marketable investments in the Consolidated Balance Sheets. Represents U.S. based funds and are included in cash and cash equivalents in the Consolidated Balance Sheets. Marketable investments have been initially valued at the transaction price and subsequently valued, at the end of the reporting period, 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. |
Fair Value Measurements - Sum_2
Fair Value Measurements - Summary of Company's Fair Value Hierarchy for its Financial Assets and Liabilities (Parenthetical) (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Cash and cash equivalent [Member] | U.S. Based Funds [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair value of investments | $ 23.5 |
Marketable investment [Member] | Non-U.S. Based Funds [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair value of investments | $ 31.6 |
Income Taxes - Income Before In
Income Taxes - Income Before Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ (4,058) | $ 16,552 | $ 22,424 |
Foreign | 10,343 | 14,172 | 10,767 |
Income before income taxes | $ 6,285 | $ 30,724 | $ 33,191 |
Income Taxes - Components of th
Income Taxes - Components of the Income Tax Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Current: | |||
Federal | $ 3,867 | $ 9,349 | $ 4,203 |
State | 1,922 | 3,819 | 2,272 |
Foreign | 2,907 | 2,402 | 2,147 |
Total current | 8,696 | 15,570 | 8,622 |
Deferred: | |||
Federal | (3,872) | (5,513) | 334 |
State | (1,597) | (1,788) | (663) |
Foreign | 8 | 649 | 54 |
Total deferred | (5,461) | (6,652) | (275) |
Income tax expense | $ 3,235 | $ 8,918 | $ 8,347 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of the Federal Statutory Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Income tax provision at federal statutory rate | 21% | 21% | 21% |
Increase (decrease) in tax resulting from: | |||
State tax provision, net of federal benefit | 8.10% | 5.20% | 3.80% |
Foreign tax rate differential | 2.70% | (0.50%) | (0.40%) |
Stock compensation | 17.50% | 0.90% | (0.40%) |
Withholding taxes | 6.20% | 1.70% | 1.30% |
Non-deductible expenses | 8.10% | 1.50% | 0% |
Permanent differences | (1.70%) | (0.30%) | (0.30%) |
Change in valuation allowance | 0.50% | 1% | 0% |
Foreign subsidiary income subject to U.S. tax | 1.20% | 1.30% | 0.20% |
Foreign-derived intangible income benefit | (3.80%) | (0.70%) | (0.70%) |
Change in tax legislation | (8.10%) | (1.60%) | (0.30%) |
Foreign exchange gain on previously taxed earnings and profits | 1.60% | 0% | 0% |
Other, net | (1.80%) | (0.50%) | 0.90% |
Effective tax rate | 51.50% | 29% | 25.10% |
Income Taxes - Components of De
Income Taxes - Components of Deferred Income Taxes (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Income Tax Disclosure [Abstract] | ||||
Non-deductible reserves and accruals | $ 3,077 | $ 2,736 | ||
Net operating loss and other carryforwards | 6,262 | 6,215 | ||
Stock compensation | 2,676 | 2,051 | ||
Depreciation and amortization | 435 | 0 | ||
Lease liability | 12,276 | 17,715 | ||
Gross deferred tax asset | 24,726 | 28,717 | ||
Less - valuation allowance | (1,065) | (989) | $ (1,114) | $ (1,237) |
Sub-total | 23,661 | 27,728 | ||
Other liabilities | (733) | (807) | ||
Depreciation and amortization | 0 | (1,023) | ||
Goodwill and intangible assets | (15,181) | (18,648) | ||
Operating lease right-of-use assets | (9,163) | (13,705) | ||
Deferred commissions | (6,545) | (6,913) | ||
Net deferred tax liability | $ (7,961) | $ (13,368) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Taxes [Line Items] | ||||
Increase in effective tax rate before income taxes | $ 6,285,000 | $ 30,724,000 | $ 33,191,000 | |
Long-term net deferred tax liabilities | 7,961,000 | 13,368,000 | ||
Operating loss carryforwards related to a prior acquisition | 3,200,000 | |||
U.S. federal and state capital loss carryforwards | 0 | |||
Valuation allowance | 1,065,000 | 989,000 | 1,114,000 | $ 1,237,000 |
Unremitted earnings | 30,100,000 | |||
Unrecognized tax benefits | 0 | 0 | $ 5,000 | $ 28,000 |
Foreign Tax Authority [Member] | ||||
Income Taxes [Line Items] | ||||
Operating loss carryforwards | 18,100,000 | |||
Other Assets [Member] | ||||
Income Taxes [Line Items] | ||||
Long-term net deferred tax assets | 700,000 | 800,000 | ||
Non-current Liabilities [Member] | ||||
Income Taxes [Line Items] | ||||
Long-term net deferred tax liabilities | $ 8,700,000 | $ 14,100,000 |
Income Taxes - Summary of Chang
Income Taxes - Summary of Changes in Deferred Tax Valuation Allowance (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Deferred tax valuation allowance, Beginning Balance | $ 989 | $ 1,114 | $ 1,237 |
Additions | 39 | 106 | 0 |
Deductions | 0 | (336) | (108) |
Change in tax legislation | (4) | 186 | 0 |
Translation adjustments | 41 | (81) | (15) |
Deferred tax valuation allowance, Ending Balance | $ 1,065 | $ 989 | $ 1,114 |
Income Taxes - Reconciliation_2
Income Taxes - Reconciliation of Unrecognized Tax Benefits (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Unrecognized tax benefits, Beginning Balance | $ 0 | $ 5,000 | $ 28,000 |
Reductions for tax positions of prior years | 0 | (4,000) | (24,000) |
Translation adjustments | 0 | (1,000) | 1,000 |
Unrecognized tax benefits, Ending Balance | $ 0 | $ 0 | $ 5,000 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | |||
May 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Preferred stock, shares authorized | 500,000 | 500,000 | |||
Preferred stock, par value | $ 0.01 | $ 0.01 | |||
Authorized to purchase of common stock under the stock repurchase program | $ 585,000,000 | ||||
Cumulative repurchase of common stock | 17,100,000 | ||||
Aggregate cost of repurchase of common stock | $ 514,100,000 | ||||
Aggregate dividend declared for the year | $ 0 | ||||
Number of shares unused from prior plans | 2,500,000 | ||||
Option Outstanding and vested | 201,000 | 89,000 | |||
Increase in number of shares issuable under plan | 3,500,000 | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Description | The amendment and restatement resulted in (1) extending the term of the plan for an additional 10 years until May 2033, (2) increasing the number of shares issuable under the plan by 3,500,000 shares, and (3) establishing a maximum amount of awards issuable under the plan to the Company’s non-employee directors. | ||||
Common stock, par value | $ 0.01 | $ 0.01 | |||
Employee Stock Purchase Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Issuance of common shares under plans | 800,000 | ||||
Future awards granted or issued under plans | 600,000 | ||||
Increase in number of shares issuable under plan | 600,000 | ||||
Common stock, par value | $ 0.01 | ||||
Duration of purchase periods under employee stock purchase plan | 6 months | ||||
Holding period of stocks acquired under employee stock purchase plan | 1 year | ||||
Value used to derive maximum number of shares per participant for employee stock purchase | $ 12,500 | ||||
Employee maximum elected percentage reduction of compensation to purchase shares | 10% | ||||
Exercise price rate of fair value | 85% | ||||
Restricted Stock Units (RSUs) [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Weighted average grant date fair value for RSUs granted | $ 32.82 | $ 50.37 | $ 46.64 | ||
Number of shares received per restricted stock unit on lapse of restrictions and vesting condition met | 1 | ||||
Value of RSUs vested and converted to common stock | $ 8,800,000 | $ 10,800,000 | $ 11,500,000 | ||
Employee Stock Option | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Intrinsic value of options exercised | $ 6,000 | $ 300,000 | $ 2,200,000 | ||
Equity Incentive Plan [Member] | Equity Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares authorized | 9,930,000 | ||||
Option expiration period | 10 years | ||||
Future awards granted or issued under plans | 4,200,000 | ||||
Option Outstanding and vested | 0 | ||||
Equity Incentive Plan [Member] | Equity Plan [Member] | Restricted Stock Units (RSUs) [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Options vested period | 4 years | ||||
Equity Incentive Plan [Member] | Equity Plan [Member] | Non-Employee Directors [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Future awards granted or issued under plans | 0 | ||||
Equity Incentive Plan [Member] | Equity Plan [Member] | Non-Employee Directors [Member] | Restricted Stock Units (RSUs) [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Options vested period | 1 year |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Restricted Stock Unit Activity (Detail) - Restricted Stock Units (RSUs) [Member] - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Shares, Unvested, Beginning Balance | 682 | ||
Number of Shares, Granted | 695 | ||
Number of Shares, Vested | (271) | ||
Number of Shares, Forfeited | (107) | ||
Number of Shares, Unvested, Ending Balance | 999 | 682 | |
Weighted-Average Grant Date Fair Value, Unvested, Beginning Balance | $ 46.28 | ||
Weighted-Average Grant Date Fair Value, Granted | 32.82 | $ 50.37 | $ 46.64 |
Weighted-Average Grant Date Fair Value, Vested | 44.95 | ||
Weighted-Average Grant Date Fair Value, Forfeited | 42.72 | ||
Weighted-Average Grant Date Fair Value, Unvested, Ending Balance | $ 37.66 | $ 46.28 |
Stockholders' Equity - Schedu_2
Stockholders' Equity - Schedule of Stock Option Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-Based Payment Arrangement [Abstract] | |||
Number of Shares, Outstanding, Beginning Balance | 89,000 | ||
Number of Shares, Granted | 144,000 | 0 | 0 |
Number of Shares, Exercised | (3,000) | ||
Number of Shares, Forfeited | (29,000) | ||
Number of Shares, Outstanding, Ending Balance | 201,000 | 89,000 | |
Number of Shares, Exercisable at December 31, 2023 | 73,000 | ||
Number of Shares, Vested and Expected to Vest at December 31, 2023 | 201,000 | ||
Weighted - Average Exercise Price Per Share, Outstanding, Beginning balance | $ 35.58 | ||
Weighted - Average Exercise Price Per Share, Granted | 33.04 | ||
Weighted - Average Exercise Price Per Share, Exercised | 34.37 | ||
Weighted - Average Exercise Price Per Share, Forfeited | 34.54 | ||
Weighted - Average Exercise Price Per Share, Outstanding, Ending balance | 33.93 | $ 35.58 | |
Weighted - Average Exercise Price Per Share, Exercisable at December 31, 2023 | 35.51 | ||
Weighted - Average Exercise Price Per Share, Vested and Expected to Vest at December 31, 2023 | $ 33.93 | ||
Weighted - Average Remaining Contractual Term, Outstanding at December 31, 2023 | 6 years 4 months 6 days | ||
Weighted - Average Remaining Contractual Term, Exercisable at December 31, 2023 | 1 year 4 months 13 days | ||
Weighted - Average Remaining Contractual Term, Vested and Expected to Vest at December 31, 2023 | 6 years 4 months 6 days | ||
Aggregate Intrinsic Value, Outstanding at December 31, 2023 | $ 0 | ||
Aggregate Intrinsic Value, Vested and Exercisable at December 31, 2023 | 0 | ||
Aggregate Intrinsic Value, Vested and Expected to Vest at December 31, 2023 | $ 0 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Shares Purchased by Employees Under the Stock Purchase Plan (Detail) - $ / shares shares in Thousands | 6 Months Ended | |||
Aug. 31, 2023 | Feb. 28, 2023 | Aug. 31, 2022 | Feb. 28, 2022 | |
Share-Based Payment Arrangement [Abstract] | ||||
Shares Purchased | 63 | 63 | 54 | 41 |
Purchase Price | $ 26.04 | $ 27.96 | $ 35.35 | $ 40.50 |
Stockholders' Equity - Schedu_3
Stockholders' Equity - Schedule of Components of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning Balance | $ 221,656 | $ 203,907 | $ 185,766 | |
Foreign currency translation | 3,248 | (4,807) | (3,083) | |
Ending Balance | 240,265 | 221,656 | 203,907 | |
Marketable Investments [Member] | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning Balance | (159) | (25) | ||
Unrealized loss before reclassification, net of tax | 99 | (134) | (25) | |
Ending Balance | (60) | (159) | (25) | |
Interest Rate Swap [Member] | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning Balance | (212) | (821) | ||
Unrealized loss before reclassification, net of tax | 137 | 29 | ||
Reclassification of AOCI/L to income, net of tax | [1] | 75 | 580 | |
Ending Balance | 0 | (212) | ||
Translation Adjustment [Member] | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning Balance | (7,759) | (2,952) | 131 | |
Foreign currency translation | [2] | 3,248 | (4,807) | (3,083) |
Ending Balance | (4,511) | (7,759) | (2,952) | |
Total AOCI/L [Member] | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning Balance | (7,918) | (3,189) | (690) | |
Foreign currency translation | [2] | 3,248 | (4,807) | (3,083) |
Unrealized loss, net of tax | 99 | 3 | 4 | |
Reclassification of AOCI/L to income, net of tax | [1] | 75 | 580 | |
Ending Balance | $ (4,571) | $ (7,918) | $ (3,189) | |
[1] Reclassification is related to the Company’s interest rate swap (cash flow hedge) and was recorded in interest expense in the Consolidated Statements of Operations. Refer to Note 6 – Derivatives and Hedging . The Company does not record tax provisions or benefits for the net changes in foreign currency translation adjustments as it intends to permanently reinvest undistributed earnings of its foreign subsidiaries. |
Stockholders' Equity - Schedu_4
Stockholders' Equity - Schedule of Components of Accumulated Other Comprehensive Loss (Parenthetical) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-Based Payment Arrangement [Abstract] | |||
Accumulated other comprehensive income (loss), unrealized gain (loss) before reclassification, net of tax | $ (33) | $ (10) | $ (6) |
Accumulated other comprehensive income (loss), reclassification of AOCI/L to income, net of tax | $ (28) | $ (227) |
Employee Pension Plans - Additi
Employee Pension Plans - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |||
Contribution to defined contribution plans | $ 7.8 | $ 8.2 | $ 6.5 |
Restructuring - Additional Info
Restructuring - Additional Information (Detail) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||
Feb. 29, 2024 | May 31, 2023 | Jan. 31, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | |
Restructuring Cost and Reserve [Line Items] | |||||||
Severance And Related Costs | $ 7.5 | $ 0.6 | $ 4.3 | $ 0.7 | |||
Restructuring Charges | $ 2.3 | 5 | |||||
ROU asset impairments and accelerated amortization | 1.3 | 3.7 | |||||
Leasehold impairments | $ 0.6 | $ 1.3 | |||||
Reduction of Workforce Period Percent | 3% | 8% | 4% | ||||
Contract termination cost | $ 0.7 | ||||||
Restructuring Reserve | 1.3 | ||||||
California [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring Charges | 0.4 | $ 0.4 | |||||
Capitalized software project writeoff value | $ 0.6 |
Restructuring - Schedule of Act
Restructuring - Schedule of Activity in Restructuring Accrual (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Restructuring Cost and Reserve [Line Items] | |
Accrual at December 31, 2023 | $ 1,300 |
Workforce reduction in january two thousand twenty three | |
Restructuring Cost and Reserve [Line Items] | |
Accrual at December 31, 2022 | 4,360 |
Additional restructuring and related costs | 1,923 |
Non-cash charge (included above) | (1,360) |
Cash payments | (4,875) |
Accrual at December 31, 2023 | 48 |
Workforce reduction in may two thousand twenty three | |
Restructuring Cost and Reserve [Line Items] | |
Accrual at December 31, 2022 | 0 |
Additional restructuring and related costs | 10,618 |
Non-cash charge (included above) | (2,253) |
Non-cash lease settlement gain (included above) | 139 |
Cash payments | (7,222) |
Accrual at December 31, 2023 | $ 1,282 |
Operating Segment and Enterpr_3
Operating Segment and Enterprise Wide Reporting - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2023 Segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 3 |
Operating Segment and Enterpr_4
Operating Segment and Enterprise Wide Reporting - Schedule of Information by Reportable Segment (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||
Total revenues | $ 480,779 | $ 537,787 | $ 494,315 |
Segment expenses | (198,029) | (212,256) | (182,634) |
Selling, marketing, administrative and other expenses | (250,756) | (270,381) | (257,576) |
Amortization of intangible assets | (11,956) | (13,161) | (15,129) |
Restructuring costs | (13,272) | (9,335) | 0 |
Integration costs | 0 | 0 | (334) |
Interest expense, other income, and gains on investments | (481) | (1,930) | (5,451) |
Income before income taxes | 6,285 | 30,724 | 33,191 |
Research Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 363,222 | 396,012 | 372,587 |
Segment expenses | (132,444) | (133,566) | (118,155) |
Consulting Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 89,402 | 111,028 | 108,867 |
Segment expenses | (45,028) | (56,889) | (51,770) |
Events Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 28,155 | 30,747 | 12,861 |
Segment expenses | (20,557) | (21,801) | (12,709) |
Research [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 334,396 | 354,453 | 325,340 |
Research [Member] | Research Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 334,396 | 354,453 | 325,340 |
Research [Member] | Consulting Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 0 | 0 | 0 |
Research [Member] | Events Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 0 | 0 | 0 |
Consulting [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 118,228 | 152,587 | 156,114 |
Consulting [Member] | Research Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 28,826 | 41,559 | 47,247 |
Consulting [Member] | Consulting Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 89,402 | 111,028 | 108,867 |
Consulting [Member] | Events Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 0 | 0 | 0 |
Events [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 28,155 | 30,747 | 12,861 |
Events [Member] | Research Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 0 | 0 | 0 |
Events [Member] | Consulting Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 0 | 0 | 0 |
Events [Member] | Events Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | $ 28,155 | $ 30,747 | $ 12,861 |
Operating Segment and Enterpr_5
Operating Segment and Enterprise Wide Reporting - Schedule of Net Long-lived Tangible Assets by Location (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Net long-lived tangible assets | $ 59,123 | $ 73,178 |
United States [Member] | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Net long-lived tangible assets | 48,001 | 60,631 |
United Kingdom [Member] | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Net long-lived tangible assets | 8,194 | 8,678 |
Europe (Excluding United Kingdom) [Member] | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Net long-lived tangible assets | 186 | 319 |
Asia Pacific [Member] | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Net long-lived tangible assets | $ 2,742 | $ 3,550 |
Operating Segment and Enterpr_6
Operating Segment and Enterprise Wide Reporting - Schedule of Revenues by Geographic Destination, Based on Location Products and Services and as a Percentage of Total Revenues (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Revenue | $ 480,779 | $ 537,787 | $ 494,315 |
Revenues by geographical area percentage | 100% | 100% | 100% |
United States [Member] | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Revenue | $ 373,483 | $ 426,041 | $ 381,662 |
Revenues by geographical area percentage | 78% | 79% | 77% |
Europe (Excluding United Kingdom) [Member] | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Revenue | $ 37,912 | $ 36,664 | $ 41,264 |
Revenues by geographical area percentage | 8% | 7% | 9% |
United Kingdom [Member] | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Revenue | $ 21,311 | $ 20,079 | $ 21,913 |
Revenues by geographical area percentage | 4% | 4% | 5% |
Canada [Member] | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Revenue | $ 16,416 | $ 20,759 | $ 17,213 |
Revenues by geographical area percentage | 3% | 4% | 3% |
Asia Pacific [Member] | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Revenue | $ 23,604 | $ 26,548 | $ 26,768 |
Revenues by geographical area percentage | 5% | 5% | 5% |
Other [Member] | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Revenue | $ 8,053 | $ 7,696 | $ 5,495 |
Revenues by geographical area percentage | 2% | 1% | 1% |
Contingencies - Additional Info
Contingencies - Additional Information (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
General and Administrative Expense [Member] | |
Loss Contingencies [Line Items] | |
Expense related to litigation | $ 4.8 |
Certain Balance Sheet Account_2
Certain Balance Sheet Accounts - Summary of Property and Equipment (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Property Plant And Equipment [Line Items] | ||
Total property and equipment | $ 83,463 | $ 89,236 |
Less accumulated depreciation | (64,062) | (66,028) |
Total property and equipment, net | 19,401 | 23,208 |
Computers and Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 10,128 | 14,303 |
Computer Software [Member] | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 34,641 | 34,903 |
Furniture and Fixtures [Member] | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 9,188 | 9,745 |
Leasehold Improvements [Member] | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | $ 29,506 | $ 30,285 |
Certain Balance Sheet Account_3
Certain Balance Sheet Accounts - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Amortization of capitalized internal use software costs | $ 4.7 | $ 4.8 | $ 4.6 |
Certain Balance Sheet Account_4
Certain Balance Sheet Accounts - Summary of Accrued Expenses and Other Current Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | |
Payables and Accruals [Abstract] | |||
Payroll and related benefits | $ 43,426 | $ 53,581 | |
Taxes | 4,680 | 5,823 | |
Lease liability | 14,181 | [1] | 13,632 |
Other | 19,195 | 17,971 | |
Total | $ 81,482 | $ 91,007 | |
[1] Included in accrued expenses and other current liabilities in the Consolidated Balance Sheets. |
Certain Balance Sheet Account_5
Certain Balance Sheet Accounts - Summary of Non-Current Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Liabilities, Noncurrent [Abstract] | ||
Deferred tax liability | $ 8,679 | $ 14,133 |
Other | 2,481 | 2,509 |
Total | $ 11,160 | $ 16,642 |
Certain Balance Sheet Account_6
Certain Balance Sheet Accounts - Summary of Allowance for Doubtful Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Receivables [Abstract] | |||
Balance, beginning of year | $ 560 | $ 610 | $ 708 |
Provision for doubtful accounts | 701 | 638 | 225 |
Write-offs | (692) | (669) | (318) |
Translation adjustments | 5 | (19) | (5) |
Balance, end of year | $ 574 | $ 560 | $ 610 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | ||
Feb. 29, 2024 | May 31, 2023 | Jan. 31, 2023 | Dec. 31, 2022 | |
Subsequent Event [Line Items] | ||||
Reduction of Workforce Period Percent | 3% | 8% | 4% | |
Restructuring Charges | $ 2.3 | $ 5 | ||
Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Reduction of Workforce Period Percent | 3% | |||
Restructuring Charges | $ 3.8 | |||
Subsequent Event | Minimum | ||||
Subsequent Event [Line Items] | ||||
Anticipates Total Costs | 7.3 | |||
Subsequent Event | Maximum | ||||
Subsequent Event [Line Items] | ||||
Anticipates Total Costs | $ 7.7 |