Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | May 07, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | FORR | |
Entity Registrant Name | FORRESTER RESEARCH, INC. | |
Entity Central Index Key | 1,023,313 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 17,984,000 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Current Assets: | ||
Cash and cash equivalents | $ 82,073 | $ 79,790 |
Marketable investments (Note 3) | 54,258 | 54,333 |
Accounts receivable, net | 62,154 | 70,023 |
Deferred commissions | 14,722 | 13,731 |
Prepaid expenses and other current assets | 18,641 | 18,942 |
Total current assets | 231,848 | 236,819 |
Property and equipment, net | 24,487 | 25,249 |
Goodwill | 76,900 | 76,169 |
Intangible assets, net | 559 | 732 |
Other assets | 6,942 | 6,231 |
Total assets | 340,736 | 345,200 |
Current Liabilities: | ||
Accounts payable | 353 | 217 |
Accrued expenses and other current liabilities | 35,260 | 49,629 |
Deferred revenue | 155,425 | 145,207 |
Total current liabilities | 191,038 | 195,053 |
Non-current liabilities | 8,403 | 8,958 |
Total liabilities | 199,441 | 204,011 |
Stockholders' Equity (Note 8): | ||
Preferred stock, $0.01 par value Authorized - 500 shares; issued and outstanding - none | ||
Common stock, $0.01 par value Authorized - 125,000 shares Issued - 22,514 and 22,432 shares as of March 31, 2018 and December 31, 2017, respectively Outstanding - 18,017 and 18,041 shares as of March 31, 2018 and December 31, 2017, respectively | 225 | 224 |
Additional paid-in capital | 186,335 | 181,910 |
Retained earnings | 121,495 | 123,010 |
Treasury stock - 4,497 and 4,391 shares as of March 31, 2018 and December 31, 2017, respectively, at cost | (166,310) | (161,943) |
Accumulated other comprehensive loss | (450) | (2,012) |
Total stockholders’ equity | 141,295 | 141,189 |
Total liabilities and stockholders’ equity | $ 340,736 | $ 345,200 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2018 | Dec. 31, 2017 |
Statement Of Financial Position [Abstract] | ||
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 | 22,514,000 | 22,432,000 |
Common stock, shares outstanding | 18,017,000 | 18,041,000 |
Treasury stock, shares | 4,497,000 | 4,391,000 |
Consolidated Statements of Inco
Consolidated Statements of Income (Loss) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Revenues: | ||
Total revenues | $ 77,749 | $ 77,194 |
Operating expenses: | ||
Cost of services and fulfillment | 34,105 | 31,396 |
Selling and marketing | 33,011 | 30,622 |
General and administrative | 10,739 | 10,170 |
Depreciation | 1,996 | 1,679 |
Amortization of intangible assets | 186 | 191 |
Total operating expenses | 80,037 | 74,058 |
Income (loss) from operations | (2,288) | 3,136 |
Other income (expense), net | (118) | 9 |
Losses on investments, net | (25) | (203) |
Income (loss) before income taxes | (2,431) | 2,942 |
Income tax benefit | (698) | (88) |
Net income (loss) | $ (1,733) | $ 3,030 |
Basic income (loss) per common share | $ (0.10) | $ 0.17 |
Diluted income (loss) per common share | $ (0.10) | $ 0.16 |
Basic weighted average common shares outstanding | 18,036 | 18,230 |
Diluted weighted average common shares outstanding | 18,036 | 18,536 |
Cash dividends declared per common share | $ 0.20 | $ 0.19 |
Research Services [Member] | ||
Revenues: | ||
Total revenues | $ 51,700 | $ 51,743 |
Advisory Services and Events [Member] | ||
Revenues: | ||
Total revenues | $ 26,049 | $ 25,451 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net income (loss) | $ (1,733) | $ 3,030 |
Other comprehensive income (loss), net of taxes: | ||
Foreign currency translation | 1,703 | 790 |
Net change in market value of investments | (115) | 17 |
Other comprehensive income | 1,588 | 807 |
Comprehensive income (loss) | $ (145) | $ 3,837 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (1,733) | $ 3,030 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation | 1,996 | 1,679 |
Amortization of intangible assets | 186 | 191 |
Net losses from investments | 25 | 203 |
Deferred income taxes | 93 | (257) |
Stock-based compensation | 1,963 | 2,049 |
Amortization of premium on investments | 25 | 61 |
Foreign currency losses | 387 | 215 |
Changes in assets and liabilities | ||
Accounts receivable | 7,921 | 3,839 |
Deferred commissions | (122) | (235) |
Prepaid expenses and other current assets | (5,454) | 138 |
Accounts payable | 133 | (1,485) |
Accrued expenses and other liabilities | (14,890) | (11,512) |
Deferred revenue | 17,275 | 21,538 |
Net cash provided by operating activities | 7,805 | 19,454 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (1,324) | (1,540) |
Purchases of marketable investments | (11,604) | (11,503) |
Proceeds from sales and maturities of marketable investments | 11,500 | 12,200 |
Other investing activity | 184 | |
Net cash used in investing activities | (1,428) | (659) |
Cash flows from financing activities: | ||
Dividends paid on common stock | (3,611) | (3,462) |
Repurchases of common stock | (4,367) | (21,453) |
Proceeds from issuance of common stock under employee equity incentive plans | 2,530 | 2,723 |
Taxes paid related to net share settlements of stock-based compensation awards | (66) | (56) |
Net cash used in financing activities | (5,514) | (22,248) |
Effect of exchange rate changes on cash and cash equivalents | 1,420 | 671 |
Net increase (decrease) in cash and cash equivalents | 2,283 | (2,782) |
Cash and cash equivalents, beginning of period | 79,790 | 76,958 |
Cash and cash equivalents, end of period | 82,073 | 74,176 |
Supplemental disclosure of cash flow information: | ||
Cash paid for income taxes | $ 669 | $ 115 |
Interim Consolidated Financial
Interim Consolidated Financial Statements | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Interim Consolidated Financial Statements | Note 1 — Interim Consolidated Financial Statements Basis of Presentation The accompanying unaudited interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for reporting on Form 10-Q. Accordingly, certain information and footnote disclosures required for complete financial statements are not included herein. The year-end balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America. It is recommended that these financial statements be read in conjunction with the consolidated financial statements and related notes that appear in the Forrester Research, Inc. (“Forrester”) Annual Report on Form 10-K for the year ended December 31, 2017. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair statement of the financial position, results of operations, comprehensive income (loss) and cash flows as of the dates and for the periods presented have been included. The results of operations for the three months ended March 31, 2018 may not be indicative of the results for the year ending December 31, 2018, or any other period. Fair Value Measurements The carrying amounts reflected in the Consolidated Balance Sheets for cash and cash equivalents, accounts receivable, accounts payable, and accrued expenses approximate fair value due to their short-term maturities. See Note 3 – Marketable Investments - for the fair value of the Company’s marketable investments. Adoption of New Accounting Pronouncements The Company adopted the guidance in Accounting Standards Update (“ASU”) No. 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments, The Company adopted the guidance in ASU No. 2016-18, Statement of Cash Flows: Restricted Cash, The Company elected to adopt the guidance in ASU No. 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, In May 2014, the Financial Accounting Standards Board (FASB) issued ASU No. 2014-09, Revenue from Contracts with Customers, Other Assets and Deferred Costs-Contracts with Customers On January 1, 2018, the Company adopted ASC 606 using the modified retrospective method. Under this method, the reported results for 2018 reflect the application of ASC 606, while the reported results for 2017 were prepared under the guidance of ASC 605, Revenue Recognition The effect of adopting ASC 606 included a $7.8 million reduction in deferred revenue, primarily related to prepaid performance obligations that are expected to expire in 2018 and 2019 that would have been recognized in 2017 under the new guidance; a decrease of $5.5 million in prepaid expenses and other current assets related to deferred survey costs that would have been expensed as incurred in 2017 under the new guidance and the current tax impact of the cumulative effect; an increase of $0.9 million in deferred commissions related to the capitalization of fringe benefits as incremental costs to obtain customer contracts under the new guidance; and an increase of $0.6 million in other assets for the deferred tax effect of the cumulative effect. Retained earnings increased by $3.8 million as a net result of these adjustments. Refer to Note 5, Revenue and Contract Costs, The following tables summarize the effect of adopting ASC 606 on the Company’s financial statements during and as of the three months ended March 31, 2018 (in thousands): Consolidated Balance Sheet As of March 31, 2018 Amounts as if Previous Guidance in As Reported Effect Accounts receivable, net $ 62,154 $ 67,826 Deferred commissions 14,722 13,791 Prepaid expenses and other current assets 18,641 23,427 Total current assets 231,848 241,375 Other assets 6,942 6,380 Total assets 340,736 349,702 Deferred revenue $ 155,425 $ 166,669 Total current liabilities 191,038 202,282 Total liabilities 199,441 210,685 Retained earnings 121,495 119,217 Total stockholders’ equity 141,295 139,017 Total liabilities and stockholders’ equity 340,736 349,702 Total assets were $9.0 million less than if the previous guidance remained in effect, largely due to the following changes required by the adoption of ASC 606: • Accounts receivable, net was lower due to the Company excluding invoices issued on cancellable contracts in excess of revenue recognized. • Prepaid expenses and other current assets were lower due to expensing survey costs as incurred and the current period tax effect of the adjustments. Deferred revenue was $11.2 million less due to the accelerated recognition of revenue for estimated unexercised rights, which would have been deferred under the previous guidance until the right expired, and the exclusion of invoices issued on cancellable contracts in excess of revenue recognized. Consolidated Statement of Income (Loss) Three Months Ended March 31, 2018 Amounts as if Previous Guidance in As Reported Effect Revenues: Research services $ 51,700 $ 53,387 Advisory services and events 26,049 26,618 Total revenues 77,749 80,005 Operating expenses: Cost of services and fulfillment 34,105 34,090 Selling and marketing 33,011 33,073 Total operating expenses 80,037 80,084 Income from operations (2,288 ) (79 ) Income before income taxes (2,431 ) (222 ) Income tax provision (698 ) (13 ) Net loss (1,733 ) (209 ) Basic loss per common share $ (0.10 ) $ (0.01 ) Diluted loss per common share $ (0.10 ) $ (0.01 ) The $2.3 million reduction to total revenues is related to ASC 606’s requirement to recognize revenue for estimated future unexercised customer rights rather than recognize unexercised rights when they occur. The Company currently expects this change to primarily affect the timing of revenue within the quarters of 2018 but does not expect it to have a material effect on the Company’s results of operations for the full year of 2018. The net impact, including the tax effect, of accounting for revenue under the new guidance increased net loss and net loss per share by $1.5 million and $0.09, respectively. Consolidated Statement of Comprehensive Income (Loss) Three Months Ended March 31, 2018 Amounts as if Previous Guidance in As Reported Effect Net loss $ (1,733 ) $ (209 ) Comprehensive income (loss) (145 ) 1,379 Consolidated Statement of Cash Flows Three Months Ended March 31, 2018 Amounts as if Previous Guidance in As Reported Effect Cash flows from operating activities: Net income $ (1,733 ) $ (209 ) Accounts receivable 7,921 2,249 Deferred commissions (122 ) (75 ) Prepaid expenses and other current assets (5,454 ) (4,769 ) Deferred revenue 17,275 20,691 The impact to comprehensive loss and cash flows from operating activities are driven by the consolidated balance sheet and income statement changes previously discussed. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Note 2 — Accumulated Other Comprehensive Loss The components of accumulated other comprehensive loss are as follows (in thousands): Total Net Unrealized Cumulative Accumulated Loss on Marketable Translation Other Comprehensive Investments Adjustment Loss Balance at January 1, 2018 $ (115 ) $ (1,897 ) $ (2,012 ) Reclassification of stranded tax effects from tax reform (26 ) — (26 ) Foreign currency translation — 1,703 1,703 Unrealized loss on investments, net of tax of $(38) (115 ) — (115 ) Balance at March 31, 2018 $ (256 ) $ (194 ) $ (450 ) Total Net Unrealized Cumulative Accumulated Loss on Marketable Translation Other Comprehensive Investments Adjustment Loss Balance at January 1, 2017 $ (83 ) $ (7,490 ) $ (7,573 ) Foreign currency translation — 790 790 Unrealized gain on investments, net of tax of $11 17 — 17 Balance at March 31, 2017 $ (66 ) $ (6,700 ) $ (6,766 ) |
Marketable Investments
Marketable Investments | 3 Months Ended |
Mar. 31, 2018 | |
Investments Debt And Equity Securities [Abstract] | |
Marketable Investments | Note 3 — Marketable Investments The following table summarizes the Company’s marketable investments (in thousands): As of March 31, 2018 Gross Gross Amortized Unrealized Unrealized Market Cost Gains Losses Value Federal agency obligations $ 1,800 $ — $ (6 ) $ 1,794 Corporate obligations 52,800 — (336 ) 52,464 Total $ 54,600 $ — $ (342 ) $ 54,258 As of December 31, 2017 Gross Gross Amortized Unrealized Unrealized Market Cost Gains Losses Value Federal agency obligations $ 1,800 $ — $ (7 ) $ 1,793 Corporate obligations 52,721 — (181 ) 52,540 Total $ 54,521 $ — $ (188 ) $ 54,333 Realized gains and losses on investments are included in earnings and are determined using the specific identification method. Realized gains and losses on the sale of the Company’s marketable investments were not material in the three months ended March 31, 2018 and 2017. The following table summarizes the maturity periods of the marketable investments in the Company’s portfolio as of March 31, 2018 (in thousands). FY 2018 FY 2019 FY2020 Total Federal agency obligations $ 1,794 $ — $ — $ 1,794 Corporate obligations 19,970 26,720 $ 5,774 52,464 Total $ 21,764 $ 26,720 $ 5,774 $ 54,258 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 March 31, 2018 Less Than 12 Months 12 Months or Greater Market Unrealized Market Unrealized Value Losses Value Losses Federal agency obligations $ — $ — $ 1,794 $ 6 Corporate obligations 39,966 295 12,498 41 Total $ 39,966 $ 295 $ 14,292 $ 47 As of December 31, 2017 Less Than 12 Months 12 Months or Greater Market Unrealized Market Unrealized Value Losses Value Losses Federal agency obligations $ — $ — $ 1,793 $ 7 Corporate obligations 31,723 149 20,817 32 Total $ 31,723 $ 149 $ 22,610 $ 39 Fair Value The Company measures certain financial assets at fair value on a recurring basis, including cash equivalents and available-for-sale securities. The fair values of these financial assets have been classified as Level 1, 2 or 3 within the fair value hierarchy as described in the accounting standards for fair value measurements. Level 1 — Fair value based on quoted prices in active markets for identical assets or liabilities. Level 2 — Fair value based on inputs other than Level 1 inputs that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; 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 (cash equivalents and investments) measured at fair value on a recurring basis (in thousands): As of March 31, 2018 Level 1 Level 2 Level 3 Total Money market funds (1) $ 851 $ — $ — $ 851 Federal agency obligations — 1,794 — 1,794 Corporate obligations — 52,464 — 52,464 Total $ 851 $ 54,258 $ — $ 55,109 As of December 31, 2017 Level 1 Level 2 Level 3 Total Money market funds (1) $ 492 $ — $ — $ 492 Federal agency obligations — 1,793 — $ 1,793 Corporate obligations — 52,540 — 52,540 Total $ 492 $ 54,333 $ — $ 54,825 (1) Included in cash and cash equivalents. Level 2 assets consist of the Company’s entire portfolio of marketable investments. Level 2 assets have been initially valued at the transaction price and subsequently valued, at the end of each reporting period, typically utilizing third party pricing services or other market observable data. The pricing services utilize industry standard valuation methods, including both income and market based approaches and observable market inputs to determine value. These observable market inputs include reportable trades, benchmark yields, credit spreads, broker/dealer quotes, bids, offers, current spot rates and other industry and economic events. |
Non-Marketable Investments
Non-Marketable Investments | 3 Months Ended |
Mar. 31, 2018 | |
Investments Debt And Equity Securities [Abstract] | |
Non-Marketable Investments | Note 4 — Non-Marketable Investments At March 31, 2018 and December 31, 2017, the carrying value of the Company’s non-marketable investments, which were composed of interests in technology-related private equity funds, was $1.8 million and $1.9 million, respectively, and is included in other assets in the Consolidated Balance Sheets. The Company’s investments at March 31, 2018 are being accounted for using the equity method as the investments are limited partnerships and the Company has an ownership interest in excess of 5% and, accordingly, the Company records its share of the investee’s operating results each period. Losses from non-marketable investments were immaterial during the three months ended March 31, 2018 and were $0.2 million during the three months ended March 31, 2017. Losses are included in Losses on Investments, Net in the Consolidated Statements of Income (Loss). During the three months ended March 31, 2018, no distributions were received from the funds. During the three months ended March 31, 2017, $0.4 million of distributions were received from the funds. |
Revenue and Contract Costs
Revenue and Contract Costs | 3 Months Ended |
Mar. 31, 2018 | |
Revenue From Contract With Customer [Abstract] | |
Revenue and Contract Costs | Note 5 – Revenue and Contract Costs Revenue Policy The Company adopted ASC 606 on January 1, 2018 using the modified retrospective approach, which applies to all contracts not complete as of the date of adoption. Under ASC 606, the Company recognizes revenue when a customer obtains control of promised goods or services, in an amount that reflects the consideration expected to be received in exchange for those goods or services. The Company follows the five step model prescribed under ASC 606: (i) identify 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 obligations in the contract; and (v) recognize revenue when (or as) the Company satisfies the 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 rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration expected to be transferred to the customer is probable. 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 goods or services, or the ability to stop transferring promised goods or services in the event a customer fails to pay consideration when due) and experience selling to similarly situated customers. Performance obligations within a contract are identified based on the goods and services promised to be transferred in the contract. When a contract includes more than one promised good 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 good 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 goods or services is separately identifiable from other promises in the contract. When both criteria are met, each promised good 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 goods 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. The number of performance obligations in the Company’s arrangements is not different under ASC 606 than the number of separate units of accounting under pervious guidance, as discussed further below. 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 continues to determine 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 price, pricing of similar products, and internal pricing objectives. The corresponding allocated revenues are recognized as the performance obligations are satisfied, as discussed below. Research services revenues Research services revenues consist primarily of memberships to Research, Connect, and Analytics products. The majority of the Research revenues are annual subscriptions to our research, including access to all or a designated portion of our research and, depending on the type of license, unlimited phone or email analyst inquiry and unlimited participation in Forrester webinars, all of which are delivered throughout the contract period. The Company has concluded that the 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 time, using an output measure of time elapsed. 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 obligation. 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. The majority of the Connect revenues are the Company’s Leadership Board product which includes access to the Research offering, access to a private forum with other Leadership Board member peers, access to a Forrester advisor, member-generated content, and one Event ticket. The Company has concluded that all promises, other than the Event ticket, represent a stand ready obligation to provide a daily information and peer 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 promises meet the requirements of the series guidance and are accounted for as a single performance obligation. The Company recognizes revenue ratably over time, using an output measure of time elapsed. The Event ticket is accounted for as a separate performance obligation and is recognized when the Event occurs. Analytics revenues are annual subscriptions to access designated survey data products and typically include a data advisor, all of which are delivered throughout the contract period. For Analytics subscriptions, the Company has concluded that the promises represent a stand ready obligation to provide a daily data 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 accounted for as a single performance obligation. The Company recognizes revenue ratably over time, using an output measure of time elapsed. Certain of the Analytics products include advisory services which are accounted for as a separate performance obligation and are recognized at the point in time the session is completed or the final deliverable is transferred to the customer. Advisory services and events revenues Advisory services and events revenues consists of sales of advisory services, consulting projects, and Events. Advisory services revenues are short-term presentations or knowledge sharing sessions (which can range from one hour to two days), such as workshops, 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 session is completed or the final deliverable is transferred to the customer. Consulting project revenues consists of the delivery of focused insights and recommendations that assist customers with their challenges in developing and executing strategies around technology, customer experience and digital transformation. Projects are fixed-fee arrangements that are generally completed within two weeks to three months. The Company concluded that each project represents a single performance obligation as they are 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. This input method was chosen since it 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. Events revenues consist of either ticket or sponsorship sales for a Forrester-hosted event. 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, including Event tickets, reprints, advisory and consulting hours, on non-cancellable contracts that the Company estimates will expire unused are recognized in proportion to the pattern of related rights exercised by the customer. This assessment requires significant 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 periodically updates the rates used to recognize unexercised rights. Refer to Note 9, Operating Segments Contract Modifications The Company considers a contract modification to exist when a mutually agreed upon change creates new, or updates existing, enforceable rights and obligations. ASC 606 introduced three specific methods to account for contract modifications depending on the nature of the change(s) in scope or price to the original contract. The new guidance is consistent with how the Company has historically accounted for contract modifications and as a result, will not have an impact on the Company’s results of operations. The majority of the Company’s contract modifications result in additional or remaining distinct goods and services, and are treated on a prospective basis. Under the prospective method, the transaction price is updated to combine the unrecognized amount as of the modification date plus the additional transaction price from the modification. This amount is then re-allocated to the remaining distinct performance obligations and recognized accordingly. Consulting services contracts can be 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 is relates, is recognized as an adjustment to revenue (either an increase or decrease) on a cumulative catch-up basis. For the three months ended March 31, 2018, the Company recorded an immaterial amount of cumulative catch-up adjustments. Accounts Receivable Accounts receivable includes amounts billed and currently due from customers. Since the only condition for payment of our 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 March 31, 2018. The majority of the Company’s contracts are non-cancellable. However, for contracts that are cancellable by the customer, t he Company does not record a receivable when it issues an invoice. The Company records accounts receivable on these contracts only up to the amount of revenue earned but not yet collected. In addition, since the majority of the Company’s contracts are for a duration of one year and payment is expected within one year from the transfer of goods 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 on the consolidated balance sheets. Deferred revenue consists of billings in excess of revenue recognized. Similar to accounts receivable, the Company does not record deferred revenue for invoices issued on a cancellable contract. During the three months ended March 31, 2018, the Company recognized approximately $58 million of revenue related to its deferred revenue at January 1, 2018. In order to determine revenue recognized in the current period from deferred revenue at the beginning of the period, the Company first allocates revenue to the individual deferred revenue balance outstanding at the beginning of the period, until the revenue exceeds that balance. Approximately $254 million of revenue is expected to be recognized during the next 12 to 24 months from remaining performance obligations as of March 31, 2018. Cost to Obtain and Fulfill Contracts The Company capitalizes commissions paid to internal sales representatives and related fringe benefits costs that are incremental to obtaining customer contracts. These costs are included in deferred commissions on the consolidated balance sheets. The judgments made in determining the amount of costs incurred include the types of costs to capitalize and whether or not the costs are in fact incremental. 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 operations as the related revenue is recognized over the initial contract term. The Company evaluates the recoverability of deferred commissions at each balance sheet date. Costs to fulfill the Company’s contracts, such as our survey costs for our Analytics product line, do not meet the specified capitalization criteria as defined in the guidance and as such are expensed as incurred. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 6 — Income Taxes Forrester provides for income taxes on an interim basis according to management’s estimate of the effective tax rate expected to be applicable for the full fiscal year. Certain items such as changes in tax rates, tax benefits or expense related to settlements of share-based payment awards, and foreign currency gains or losses are treated as discrete items and are recorded in the period in which they arise. Income tax benefit for the three months ended March 31, 2018 was $0.7 million resulting in an effective tax rate of 28.7% for the period. Income tax benefit for the three months ended March 31, 2017 was $0.1 million resulting in an effective tax rate of (3.0)% for the period. The increase in the effective tax rate during the three months ended March 31, 2018 compared to the prior year period was primarily due to the recognition of a $1.3 million benefit from the settlement of a tax audit in the first quarter of 2017. For the full year 2018, the Company anticipates that its effective tax rate will be approximately 31%. On December 22, 2017, the Tax Cuts and Jobs Act (the “Act”) was signed into law making significant changes to the Internal Revenue Code. We calculated our best estimate of the impact of the Act in our prior year end income tax provision in accordance with our understanding of the Act and guidance available at that date. On December 22, 2017, Staff Accounting Bulletin No. 118 ("SAB 118") was issued to address the application of U.S. GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Act. S A 11 p r ov i d e ea u r e e n p e r i o t h a hou l no e x t e n b e yon on y ea fr o t h e n ac t e n d a t of the Act f o c o p a n i e t c o p l e t t h acc oun ti n for the income tax effects of the Act A the Company c o p l e its a n a l y i o t h A c t c o ll ec a n p r e p a r n ece a r d a t a a n i n t e r p r e a n a dd iti on a gu i d a n c i u e b t h U . S T r ea u r D e p a r t e n t t h I R S a n o t h e t a nd a r d - e tti n bod i e the Company a a k a d j u t e n t t t h p r ov i i on a a oun t |
Net Income (Loss) Per Common Sh
Net Income (Loss) Per Common Share | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Common Share | Note 7 — Net Income (Loss) Per Common Share Basic net income (loss) per common share is computed by dividing net income (loss) by the basic weighted average number of common shares outstanding during the period. Diluted net income (loss) per common share is computed by dividing net income (loss) by the diluted weighted average number of common shares and common equivalent shares outstanding during the period. The weighted average number of common equivalent shares outstanding has been determined in accordance with the treasury-stock method. Common equivalent shares consist of common stock issuable on the exercise of outstanding stock options and the vesting of restricted stock units. Basic and diluted weighted average common shares are as follows (in thousands): Three Months Ended March 31, 2018 2017 Basic weighted average common shares outstanding 18,036 18,230 Weighted average common equivalent shares — 306 Diluted weighted average common shares outstanding 18,036 18,536 Options excluded from diluted weighted average share calculation as effect would have been anti-dilutive 1,059 374 |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Stockholders' Equity | Note 8 — Stockholders’ Equity Equity Plans Restricted stock unit activity for the three months ended March 31, 2018 is presented below (in thousands, except per share data): Weighted- Average Number of Grant Date Shares Fair Value Unvested at December 31, 2017 509 $ 37.59 Granted 12 39.14 Vested (9 ) 37.39 Forfeited (17 ) 37.62 Unvested at March 31, 2018 495 $ 37.63 Stock option activity for the three months ended March 31, 2018 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, 2017 937 $ 35.10 Granted — — Exercised (50 ) 33.31 Forfeited (12 ) 35.02 Outstanding at March 31, 2018 875 $ 35.21 5.75 $ 5,465 Exercisable at March 31, 2018 625 $ 35.17 5.16 $ 3,924 Vested and expected to vest at March 31, 2018 875 $ 35.21 5.75 $ 5,465 Stock-Based Compensation Forrester recognizes the fair value of stock-based compensation in net income (loss) over the requisite service period of the individual grantee, which generally equals the vesting period. Stock-based compensation was recorded in the following expense categories (in thousands): Three Months Ended March 31, 2018 2017 Cost of services and fulfillment $ 1,020 $ 1,197 Selling and marketing 244 162 General and administrative 699 690 Total $ 1,963 $ 2,049 Forrester utilizes the Black-Scholes valuation model for estimating the fair value of shares subject to purchase under the employee stock purchase plan, which were valued using the following assumptions: Three Months Ended March 31, 2018 2017 Average risk-free interest rate 1.92 % 0.88 % Expected dividend yield 2.0 % 1.9 % Expected life 0.5 Years 0.5 Years Expected volatility 22 % 28 % Weighted average fair value $ 8.49 $ 8.49 Dividends In the three months ended March 31, 2018, the Company declared and paid a dividend $0.20 per share or $3.6 million in the aggregate. In the three months ended March 31, 2017, the Company declared and paid a dividend 0.19 or $3.5 million in the aggregate. In April 2018, the Company declared a dividend of $0.20 per share payable on June 27, 2018 to shareholders of record as of June 13, 2018. Treasury Stock As of March 31, 2018, Forrester’s Board of Directors had authorized an aggregate $535.0 million to purchase common stock under its stock repurchase program including $50.0 million authorized in February 2018. The shares repurchased may be used, among other things, in connection with Forrester’s equity incentive and purchase plans. In the three months ended March 31, 2018, the Company repurchased approximately 0.1 million shares of common stock at an aggregate cost of approximately $4.4 million. In the three months ended March 31, 2017, the Company repurchased approximately 0.6 million shares of common stock at an aggregate cost of approximately $21.5 million. From the inception of the program through March 31, 2018, the Company repurchased 16.2 million shares of common stock at an aggregate cost of $469.3 million. |
Operating Segments
Operating Segments | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Operating Segments | Note 9 — Operating Segments The Product segment includes the costs of the product management organization that is responsible for product pricing and packaging and the launch of new products. In addition, this segment includes the costs of the Company’s Analytics, Connect and Events organizations. Revenue in this segment includes all revenue for the Company (including Research and Connect) except for revenue from advisory services and project consulting services that are delivered by personnel in the Research and Project Consulting segments. The Research segment includes the costs of the Company’s research personnel who are responsible for writing the research and performing the webinars and inquiries for the Company’s Research and Connect products. In addition, the research personnel deliver advisory services (such as workshops, speeches and advisory days) and a portion of the Company’s project consulting services. Revenue in this segment includes only revenue from advisory services and project consulting services that are delivered by the research personnel in this segment. The Project Consulting segment includes the costs of the consultants that deliver the majority of the Company’s project consulting services. Revenue in this segment includes the project consulting revenue delivered by the consultants in this segment. The Company evaluates reportable segment performance and allocates resources based on segment revenues and expenses. 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, other income (expense) and losses on investments. The accounting policies used by the segments are the same as those used in the consolidated financial statements. The Company is providing disaggregated revenue by product in the segment tables below in accordance with the revenue standard adopted on January 1, 2018. Project Product Research Consulting Consolidated Three Months Ended March 31, 2018 Research services revenues Research $ 34,643 $ — $ — $ 34,643 Connect 12,564 — — 12,564 Analytics 4,493 — — 4,493 Total research services revenues 51,700 — — 51,700 Advisory services and events revenues Advisory services — 9,480 34 9,514 Consulting services — 2,162 12,409 14,571 Events — — — — Analytics services 1,964 — — 1,964 Total advisory services and events revenues 1,964 11,642 12,443 26,049 Total segment revenues 53,664 11,642 12,443 77,749 Segment expenses 10,117 12,713 6,864 29,694 Contribution margin (loss) 43,547 (1,071 ) 5,579 48,055 Selling, marketing, administrative and other expenses (50,157 ) Amortization of intangible assets (186 ) Other income (expense) and losses on investments (143 ) Income before income taxes $ (2,431 ) Project Product Research Consulting Consolidated Three Months Ended March 31, 2017 Research services revenues Research $ 35,524 $ — $ — $ 35,524 Connect 11,637 — — 11,637 Analytics 4,582 — — 4,582 Total research services revenues 51,743 — — 51,743 Advisory services and events revenues Advisory services — 8,536 77 8,613 Consulting services — 1,957 12,380 14,337 Events 80 — — 80 Analytics services 2,421 — — 2,421 Total advisory services and events revenues 2,501 10,493 12,457 25,451 Total segment revenues 54,244 10,493 12,457 77,194 Segment expenses 9,227 12,143 5,854 27,224 Contribution margin (loss) 45,017 (1,650 ) 6,603 49,970 Selling, marketing, administrative and other expenses (46,643 ) Amortization of intangible assets (191 ) Other income (expense) and losses on investments (194 ) Income before income taxes $ 2,942 |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2018 | |
New Accounting Pronouncements And Changes In Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | Note 10 — Recent Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments In January 2017, the FASB issued ASU No. 2017-04, Intangibles-Goodwill and Other: Simplifying the Test for Goodwill Impairment |
Interim Consolidated Financia17
Interim Consolidated Financial Statements (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for reporting on Form 10-Q. Accordingly, certain information and footnote disclosures required for complete financial statements are not included herein. The year-end balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America. It is recommended that these financial statements be read in conjunction with the consolidated financial statements and related notes that appear in the Forrester Research, Inc. (“Forrester”) Annual Report on Form 10-K for the year ended December 31, 2017. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair statement of the financial position, results of operations, comprehensive income (loss) and cash flows as of the dates and for the periods presented have been included. The results of operations for the three months ended March 31, 2018 may not be indicative of the results for the year ending December 31, 2018, or any other period. |
Fair Value Measurements | Fair Value Measurements The carrying amounts reflected in the Consolidated Balance Sheets for cash and cash equivalents, accounts receivable, accounts payable, and accrued expenses approximate fair value due to their short-term maturities. See Note 3 – Marketable Investments - for the fair value of the Company’s marketable investments. |
Adoption of New Accounting Pronouncements | Adoption of New Accounting Pronouncements The Company adopted the guidance in Accounting Standards Update (“ASU”) No. 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments, The Company adopted the guidance in ASU No. 2016-18, Statement of Cash Flows: Restricted Cash, The Company elected to adopt the guidance in ASU No. 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, In May 2014, the Financial Accounting Standards Board (FASB) issued ASU No. 2014-09, Revenue from Contracts with Customers, Other Assets and Deferred Costs-Contracts with Customers On January 1, 2018, the Company adopted ASC 606 using the modified retrospective method. Under this method, the reported results for 2018 reflect the application of ASC 606, while the reported results for 2017 were prepared under the guidance of ASC 605, Revenue Recognition The effect of adopting ASC 606 included a $7.8 million reduction in deferred revenue, primarily related to prepaid performance obligations that are expected to expire in 2018 and 2019 that would have been recognized in 2017 under the new guidance; a decrease of $5.5 million in prepaid expenses and other current assets related to deferred survey costs that would have been expensed as incurred in 2017 under the new guidance and the current tax impact of the cumulative effect; an increase of $0.9 million in deferred commissions related to the capitalization of fringe benefits as incremental costs to obtain customer contracts under the new guidance; and an increase of $0.6 million in other assets for the deferred tax effect of the cumulative effect. Retained earnings increased by $3.8 million as a net result of these adjustments. Refer to Note 5, Revenue and Contract Costs, The following tables summarize the effect of adopting ASC 606 on the Company’s financial statements during and as of the three months ended March 31, 2018 (in thousands): Consolidated Balance Sheet As of March 31, 2018 Amounts as if Previous Guidance in As Reported Effect Accounts receivable, net $ 62,154 $ 67,826 Deferred commissions 14,722 13,791 Prepaid expenses and other current assets 18,641 23,427 Total current assets 231,848 241,375 Other assets 6,942 6,380 Total assets 340,736 349,702 Deferred revenue $ 155,425 $ 166,669 Total current liabilities 191,038 202,282 Total liabilities 199,441 210,685 Retained earnings 121,495 119,217 Total stockholders’ equity 141,295 139,017 Total liabilities and stockholders’ equity 340,736 349,702 Total assets were $9.0 million less than if the previous guidance remained in effect, largely due to the following changes required by the adoption of ASC 606: • Accounts receivable, net was lower due to the Company excluding invoices issued on cancellable contracts in excess of revenue recognized. • Prepaid expenses and other current assets were lower due to expensing survey costs as incurred and the current period tax effect of the adjustments. Deferred revenue was $11.2 million less due to the accelerated recognition of revenue for estimated unexercised rights, which would have been deferred under the previous guidance until the right expired, and the exclusion of invoices issued on cancellable contracts in excess of revenue recognized. Consolidated Statement of Income (Loss) Three Months Ended March 31, 2018 Amounts as if Previous Guidance in As Reported Effect Revenues: Research services $ 51,700 $ 53,387 Advisory services and events 26,049 26,618 Total revenues 77,749 80,005 Operating expenses: Cost of services and fulfillment 34,105 34,090 Selling and marketing 33,011 33,073 Total operating expenses 80,037 80,084 Income from operations (2,288 ) (79 ) Income before income taxes (2,431 ) (222 ) Income tax provision (698 ) (13 ) Net loss (1,733 ) (209 ) Basic loss per common share $ (0.10 ) $ (0.01 ) Diluted loss per common share $ (0.10 ) $ (0.01 ) The $2.3 million reduction to total revenues is related to ASC 606’s requirement to recognize revenue for estimated future unexercised customer rights rather than recognize unexercised rights when they occur. The Company currently expects this change to primarily affect the timing of revenue within the quarters of 2018 but does not expect it to have a material effect on the Company’s results of operations for the full year of 2018. The net impact, including the tax effect, of accounting for revenue under the new guidance increased net loss and net loss per share by $1.5 million and $0.09, respectively. Consolidated Statement of Comprehensive Income (Loss) Three Months Ended March 31, 2018 Amounts as if Previous Guidance in As Reported Effect Net loss $ (1,733 ) $ (209 ) Comprehensive income (loss) (145 ) 1,379 Consolidated Statement of Cash Flows Three Months Ended March 31, 2018 Amounts as if Previous Guidance in As Reported Effect Cash flows from operating activities: Net income $ (1,733 ) $ (209 ) Accounts receivable 7,921 2,249 Deferred commissions (122 ) (75 ) Prepaid expenses and other current assets (5,454 ) (4,769 ) Deferred revenue 17,275 20,691 The impact to comprehensive loss and cash flows from operating activities are driven by the consolidated balance sheet and income statement changes previously discussed. |
Interim Consolidated Financia18
Interim Consolidated Financial Statements (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
ASC 606 [Member] | |
Summary Of Significant Accounting Policy [Line Items] | |
Summary of Effect of Adopting ASC 606 on Company's Financial Statements | The following tables summarize the effect of adopting ASC 606 on the Company’s financial statements during and as of the three months ended March 31, 2018 (in thousands): Consolidated Balance Sheet As of March 31, 2018 Amounts as if Previous Guidance in As Reported Effect Accounts receivable, net $ 62,154 $ 67,826 Deferred commissions 14,722 13,791 Prepaid expenses and other current assets 18,641 23,427 Total current assets 231,848 241,375 Other assets 6,942 6,380 Total assets 340,736 349,702 Deferred revenue $ 155,425 $ 166,669 Total current liabilities 191,038 202,282 Total liabilities 199,441 210,685 Retained earnings 121,495 119,217 Total stockholders’ equity 141,295 139,017 Total liabilities and stockholders’ equity 340,736 349,702 Consolidated Statement of Income (Loss) Three Months Ended March 31, 2018 Amounts as if Previous Guidance in As Reported Effect Revenues: Research services $ 51,700 $ 53,387 Advisory services and events 26,049 26,618 Total revenues 77,749 80,005 Operating expenses: Cost of services and fulfillment 34,105 34,090 Selling and marketing 33,011 33,073 Total operating expenses 80,037 80,084 Income from operations (2,288 ) (79 ) Income before income taxes (2,431 ) (222 ) Income tax provision (698 ) (13 ) Net loss (1,733 ) (209 ) Basic loss per common share $ (0.10 ) $ (0.01 ) Diluted loss per common share $ (0.10 ) $ (0.01 ) Consolidated Statement of Comprehensive Income (Loss) Three Months Ended March 31, 2018 Amounts as if Previous Guidance in As Reported Effect Net loss $ (1,733 ) $ (209 ) Comprehensive income (loss) (145 ) 1,379 Consolidated Statement of Cash Flows Three Months Ended March 31, 2018 Amounts as if Previous Guidance in As Reported Effect Cash flows from operating activities: Net income $ (1,733 ) $ (209 ) Accounts receivable 7,921 2,249 Deferred commissions (122 ) (75 ) Prepaid expenses and other current assets (5,454 ) (4,769 ) Deferred revenue 17,275 20,691 |
Accumulated Other Comprehensi19
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Schedule of Components of Accumulated Other Comprehensive Loss | The components of accumulated other comprehensive loss are as follows (in thousands): Total Net Unrealized Cumulative Accumulated Loss on Marketable Translation Other Comprehensive Investments Adjustment Loss Balance at January 1, 2018 $ (115 ) $ (1,897 ) $ (2,012 ) Reclassification of stranded tax effects from tax reform (26 ) — (26 ) Foreign currency translation — 1,703 1,703 Unrealized loss on investments, net of tax of $(38) (115 ) — (115 ) Balance at March 31, 2018 $ (256 ) $ (194 ) $ (450 ) Total Net Unrealized Cumulative Accumulated Loss on Marketable Translation Other Comprehensive Investments Adjustment Loss Balance at January 1, 2017 $ (83 ) $ (7,490 ) $ (7,573 ) Foreign currency translation — 790 790 Unrealized gain on investments, net of tax of $11 17 — 17 Balance at March 31, 2017 $ (66 ) $ (6,700 ) $ (6,766 ) |
Marketable Investments (Tables)
Marketable Investments (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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 March 31, 2018 Gross Gross Amortized Unrealized Unrealized Market Cost Gains Losses Value Federal agency obligations $ 1,800 $ — $ (6 ) $ 1,794 Corporate obligations 52,800 — (336 ) 52,464 Total $ 54,600 $ — $ (342 ) $ 54,258 As of December 31, 2017 Gross Gross Amortized Unrealized Unrealized Market Cost Gains Losses Value Federal agency obligations $ 1,800 $ — $ (7 ) $ 1,793 Corporate obligations 52,721 — (181 ) 52,540 Total $ 54,521 $ — $ (188 ) $ 54,333 |
Summary of Maturity Periods of Marketable Investments | The following table summarizes the maturity periods of the marketable investments in the Company’s portfolio as of March 31, 2018 (in thousands). FY 2018 FY 2019 FY2020 Total Federal agency obligations $ 1,794 $ — $ — $ 1,794 Corporate obligations 19,970 26,720 $ 5,774 52,464 Total $ 21,764 $ 26,720 $ 5,774 $ 54,258 |
Summary of Gross Unrealized Losses and Market Value of Available-for-Sale Securities with Unrealized Losses | 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 March 31, 2018 Less Than 12 Months 12 Months or Greater Market Unrealized Market Unrealized Value Losses Value Losses Federal agency obligations $ — $ — $ 1,794 $ 6 Corporate obligations 39,966 295 12,498 41 Total $ 39,966 $ 295 $ 14,292 $ 47 As of December 31, 2017 Less Than 12 Months 12 Months or Greater Market Unrealized Market Unrealized Value Losses Value Losses Federal agency obligations $ — $ — $ 1,793 $ 7 Corporate obligations 31,723 149 20,817 32 Total $ 31,723 $ 149 $ 22,610 $ 39 |
Summary of Company's Fair Value Hierarchy for its Financial Assets | The following table represents the Company’s fair value hierarchy for its financial assets (cash equivalents and investments) measured at fair value on a recurring basis (in thousands): As of March 31, 2018 Level 1 Level 2 Level 3 Total Money market funds (1) $ 851 $ — $ — $ 851 Federal agency obligations — 1,794 — 1,794 Corporate obligations — 52,464 — 52,464 Total $ 851 $ 54,258 $ — $ 55,109 As of December 31, 2017 Level 1 Level 2 Level 3 Total Money market funds (1) $ 492 $ — $ — $ 492 Federal agency obligations — 1,793 — $ 1,793 Corporate obligations — 52,540 — 52,540 Total $ 492 $ 54,333 $ — $ 54,825 (1) Included in cash and cash equivalents. |
Net Income (Loss) Per Common 21
Net Income (Loss) Per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Weighted Average Common Shares | Basic and diluted weighted average common shares are as follows (in thousands): Three Months Ended March 31, 2018 2017 Basic weighted average common shares outstanding 18,036 18,230 Weighted average common equivalent shares — 306 Diluted weighted average common shares outstanding 18,036 18,536 Options excluded from diluted weighted average share calculation as effect would have been anti-dilutive 1,059 374 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Schedule of Restricted Stock Unit Activity | Restricted stock unit activity for the three months ended March 31, 2018 is presented below (in thousands, except per share data): Weighted- Average Number of Grant Date Shares Fair Value Unvested at December 31, 2017 509 $ 37.59 Granted 12 39.14 Vested (9 ) 37.39 Forfeited (17 ) 37.62 Unvested at March 31, 2018 495 $ 37.63 |
Schedule of Stock Option Activity | Stock option activity for the three months ended March 31, 2018 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, 2017 937 $ 35.10 Granted — — Exercised (50 ) 33.31 Forfeited (12 ) 35.02 Outstanding at March 31, 2018 875 $ 35.21 5.75 $ 5,465 Exercisable at March 31, 2018 625 $ 35.17 5.16 $ 3,924 Vested and expected to vest at March 31, 2018 875 $ 35.21 5.75 $ 5,465 |
Summary of Stock-Based Compensation Recorded in Expense Categories | Stock-based compensation was recorded in the following expense categories (in thousands): Three Months Ended March 31, 2018 2017 Cost of services and fulfillment $ 1,020 $ 1,197 Selling and marketing 244 162 General and administrative 699 690 Total $ 1,963 $ 2,049 |
Shares Subject to Employee Stock Purchase Plan Valuation Assumptions | Forrester utilizes the Black-Scholes valuation model for estimating the fair value of shares subject to purchase under the employee stock purchase plan, which were valued using the following assumptions: Three Months Ended March 31, 2018 2017 Average risk-free interest rate 1.92 % 0.88 % Expected dividend yield 2.0 % 1.9 % Expected life 0.5 Years 0.5 Years Expected volatility 22 % 28 % Weighted average fair value $ 8.49 $ 8.49 |
Operating Segments (Tables)
Operating Segments (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Information about Reportable Segments | The Company is providing disaggregated revenue by product in the segment tables below in accordance with the revenue standard adopted on January 1, 2018. Project Product Research Consulting Consolidated Three Months Ended March 31, 2018 Research services revenues Research $ 34,643 $ — $ — $ 34,643 Connect 12,564 — — 12,564 Analytics 4,493 — — 4,493 Total research services revenues 51,700 — — 51,700 Advisory services and events revenues Advisory services — 9,480 34 9,514 Consulting services — 2,162 12,409 14,571 Events — — — — Analytics services 1,964 — — 1,964 Total advisory services and events revenues 1,964 11,642 12,443 26,049 Total segment revenues 53,664 11,642 12,443 77,749 Segment expenses 10,117 12,713 6,864 29,694 Contribution margin (loss) 43,547 (1,071 ) 5,579 48,055 Selling, marketing, administrative and other expenses (50,157 ) Amortization of intangible assets (186 ) Other income (expense) and losses on investments (143 ) Income before income taxes $ (2,431 ) Project Product Research Consulting Consolidated Three Months Ended March 31, 2017 Research services revenues Research $ 35,524 $ — $ — $ 35,524 Connect 11,637 — — 11,637 Analytics 4,582 — — 4,582 Total research services revenues 51,743 — — 51,743 Advisory services and events revenues Advisory services — 8,536 77 8,613 Consulting services — 1,957 12,380 14,337 Events 80 — — 80 Analytics services 2,421 — — 2,421 Total advisory services and events revenues 2,501 10,493 12,457 25,451 Total segment revenues 54,244 10,493 12,457 77,194 Segment expenses 9,227 12,143 5,854 27,224 Contribution margin (loss) 45,017 (1,650 ) 6,603 49,970 Selling, marketing, administrative and other expenses (46,643 ) Amortization of intangible assets (191 ) Other income (expense) and losses on investments (194 ) Income before income taxes $ 2,942 |
Interim Consolidated Financia24
Interim Consolidated Financial Statements - Additional Information (Detail) - USD ($) | Jan. 02, 2018 | Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 |
Summary Of Significant Accounting Policy [Line Items] | ||||
Expected revenue performance obligation | $ 155,425,000 | $ 145,207,000 | ||
Prepaid expenses and other current assets | 18,641,000 | 18,942,000 | ||
Deferred commissions | 14,722,000 | 13,731,000 | ||
Other assets | 6,942,000 | 6,231,000 | ||
Retained earnings | 121,495,000 | 123,010,000 | ||
Total assets | 340,736,000 | $ 345,200,000 | ||
Total revenues | 77,749,000 | $ 77,194,000 | ||
Net loss | $ (1,733,000) | $ 3,030,000 | ||
Basic loss per common share | $ (0.10) | $ 0.17 | ||
ASU No. 2018-02 [Member] | ||||
Summary Of Significant Accounting Policy [Line Items] | ||||
Reclassification adjustment to retained earnings for tax effects | $ 26,000 | |||
ASC 606 [Member] | Initial Application Period Cumulative Effect Transition [Member] | ||||
Summary Of Significant Accounting Policy [Line Items] | ||||
Expected revenue performance obligation | $ 7,800,000 | |||
Prepaid expenses and other current assets | (5,500,000) | |||
Deferred commissions | 900,000 | |||
Other assets | 600,000 | |||
Retained earnings | 3,800,000 | |||
ASC 606 [Member] | Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | ||||
Summary Of Significant Accounting Policy [Line Items] | ||||
Expected revenue performance obligation | (11,200,000) | |||
Total assets | (9,000,000) | |||
Total revenues | (2,300,000) | |||
Net loss | $ 1,500,000 | |||
Basic loss per common share | $ 0.09 |
Interim Consolidated Financia25
Interim Consolidated Financial Statements - Summary of Effect of Adopting ASC 606 In Consolidated Balance Sheet (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Accounts receivable, net | $ 62,154 | $ 70,023 |
Deferred commissions | 14,722 | 13,731 |
Prepaid expenses and other current assets | 18,641 | 18,942 |
Total current assets | 231,848 | 236,819 |
Other assets | 6,942 | 6,231 |
Total assets | 340,736 | 345,200 |
Deferred revenue | 155,425 | 145,207 |
Total current liabilities | 191,038 | 195,053 |
Total liabilities | 199,441 | 204,011 |
Retained earnings | 121,495 | 123,010 |
Total stockholders’ equity | 141,295 | 141,189 |
Total liabilities and stockholders’ equity | 340,736 | $ 345,200 |
ASC 606 [Member] | Amounts as if Previous Guidance in Effect [Member] | ||
Accounts receivable, net | 67,826 | |
Deferred commissions | 13,791 | |
Prepaid expenses and other current assets | 23,427 | |
Total current assets | 241,375 | |
Other assets | 6,380 | |
Total assets | 349,702 | |
Deferred revenue | 166,669 | |
Total current liabilities | 202,282 | |
Total liabilities | 210,685 | |
Retained earnings | 119,217 | |
Total stockholders’ equity | 139,017 | |
Total liabilities and stockholders’ equity | $ 349,702 |
Interim Consolidated Financia26
Interim Consolidated Financial Statements - Summary of Effect of Adopting ASC 606 In Consolidated Statement of Income (Loss) (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Revenues: | ||
Total revenues | $ 77,749 | $ 77,194 |
Operating expenses: | ||
Cost of services and fulfillment | 34,105 | 31,396 |
Selling and marketing | 33,011 | 30,622 |
Total operating expenses | 80,037 | 74,058 |
Income from operations | (2,288) | 3,136 |
Income before income taxes | (2,431) | 2,942 |
Income tax provision | (698) | (88) |
Net loss | $ (1,733) | $ 3,030 |
Basic loss per common share | $ (0.10) | $ 0.17 |
Diluted loss per common share | $ (0.10) | $ 0.16 |
Research Services [Member] | ||
Revenues: | ||
Total revenues | $ 51,700 | $ 51,743 |
Advisory Services and Events [Member] | ||
Revenues: | ||
Total revenues | 26,049 | $ 25,451 |
ASC 606 [Member] | Amounts as if Previous Guidance in Effect [Member] | ||
Revenues: | ||
Total revenues | 80,005 | |
Operating expenses: | ||
Cost of services and fulfillment | 34,090 | |
Selling and marketing | 33,073 | |
Total operating expenses | 80,084 | |
Income from operations | (79) | |
Income before income taxes | (222) | |
Income tax provision | (13) | |
Net loss | $ (209) | |
Basic loss per common share | $ (0.01) | |
Diluted loss per common share | $ (0.01) | |
ASC 606 [Member] | Research Services [Member] | Amounts as if Previous Guidance in Effect [Member] | ||
Revenues: | ||
Total revenues | $ 53,387 | |
ASC 606 [Member] | Advisory Services and Events [Member] | Amounts as if Previous Guidance in Effect [Member] | ||
Revenues: | ||
Total revenues | $ 26,618 |
Interim Consolidated Financia27
Interim Consolidated Financial Statements - Summary of Effect of Adopting ASC 606 In Consolidated Statement of Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Net loss | $ (1,733) | $ 3,030 |
Comprehensive income (loss) | (145) | $ 3,837 |
ASC 606 [Member] | Amounts as if Previous Guidance in Effect [Member] | ||
Net loss | (209) | |
Comprehensive income (loss) | $ 1,379 |
Interim Consolidated Financia28
Interim Consolidated Financial Statements - Summary of Effect of Adopting ASC 606 In Consolidated Statement of Cash Flows (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (1,733) | $ 3,030 |
Accounts receivable | 7,921 | 3,839 |
Deferred commissions | (122) | (235) |
Prepaid expenses and other current assets | (5,454) | 138 |
Deferred revenue | 17,275 | $ 21,538 |
ASC 606 [Member] | Amounts as if Previous Guidance in Effect [Member] | ||
Cash flows from operating activities: | ||
Net income (loss) | (209) | |
Accounts receivable | 2,249 | |
Deferred commissions | (75) | |
Prepaid expenses and other current assets | (4,769) | |
Deferred revenue | $ 20,691 |
Accumulated Other Comprehensi29
Accumulated Other Comprehensive Loss - Schedule of Components of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | $ (2,012) | |
Reclassification of stranded tax effects from tax reform | (26) | |
Foreign currency translation | 1,703 | $ 790 |
Unrealized gain (loss) on investments, net of tax | (115) | 17 |
Ending Balance | (450) | |
Beginning Balance | 141,189 | |
Ending Balance | 141,295 | |
Net Unrealized Loss on Marketable Investments [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | (115) | (83) |
Reclassification of stranded tax effects from tax reform | (26) | |
Unrealized gain (loss) on investments, net of tax | (115) | 17 |
Ending Balance | (256) | (66) |
Cumulative Translation Adjustment [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | (1,897) | (7,490) |
Foreign currency translation | 1,703 | 790 |
Ending Balance | (194) | (6,700) |
Total Accumulated Other Comprehensive Loss [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | (2,012) | (7,573) |
Ending Balance | $ (450) | $ (6,766) |
Accumulated Other Comprehensi30
Accumulated Other Comprehensive Loss - Schedule of Components of Accumulated Other Comprehensive Loss (Detail) (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Other Comprehensive Income Loss Tax Parenthetical Disclosures [Abstract] | ||
Tax expense (benefit) on unrealized gain (loss) on investments | $ (38) | $ 11 |
Marketable Investments - Summar
Marketable Investments - Summary of Company's Marketable Investments (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 54,600 | $ 54,521 |
Gross Unrealized Losses | (342) | (188) |
Market Value | 54,258 | 54,333 |
Federal Agency Obligations [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 1,800 | 1,800 |
Gross Unrealized Losses | (6) | (7) |
Market Value | 1,794 | 1,793 |
Corporate Obligations [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 52,800 | 52,721 |
Gross Unrealized Losses | (336) | (181) |
Market Value | $ 52,464 | $ 52,540 |
Marketable Investments - Summ32
Marketable Investments - Summary of Maturity Periods of the Marketable Investments (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Schedule of Available-for-sale Securities [Line Items] | ||
FY 2,018 | $ 21,764 | |
FY 2,019 | 26,720 | |
FY2020 | 5,774 | |
Total | 54,258 | $ 54,333 |
Federal Agency Obligations [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
FY 2,018 | 1,794 | |
Total | 1,794 | 1,793 |
Corporate Obligations [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
FY 2,018 | 19,970 | |
FY 2,019 | 26,720 | |
FY2020 | 5,774 | |
Total | $ 52,464 | $ 52,540 |
Marketable Investments - Summ33
Marketable Investments - Summary of Gross Unrealized Losses and Market Value of Available-for-Sale Securities with Unrealized Losses (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale securities, Less Than 12 Months, Market Value | $ 39,966 | $ 31,723 |
Available for sale securities, Less Than 12 Months, Unrealized Losses | 295 | 149 |
Available for sale securities, 12 Months or Greater, Market Value | 14,292 | 22,610 |
Available for sale securities, 12 Months or Greater, Unrealized Losses | 47 | 39 |
Federal Agency Obligations [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale securities, 12 Months or Greater, Market Value | 1,794 | 1,793 |
Available for sale securities, 12 Months or Greater, Unrealized Losses | 6 | 7 |
Corporate Obligations [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale securities, Less Than 12 Months, Market Value | 39,966 | 31,723 |
Available for sale securities, Less Than 12 Months, Unrealized Losses | 295 | 149 |
Available for sale securities, 12 Months or Greater, Market Value | 12,498 | 20,817 |
Available for sale securities, 12 Months or Greater, Unrealized Losses | $ 41 | $ 32 |
Marketable Investments - Summ34
Marketable Investments - Summary of Company's Fair Value Hierarchy for its Financial Assets (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets on recurring basis | $ 55,109 | $ 54,825 |
Money Market Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets on recurring basis | 851 | 492 |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets on recurring basis | 851 | 492 |
Level 1 [Member] | Money Market Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets on recurring basis | 851 | 492 |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets on recurring basis | 54,258 | 54,333 |
Federal Agency Obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets on recurring basis | 1,794 | 1,793 |
Federal Agency Obligations [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets on recurring basis | 1,794 | 1,793 |
Corporate Obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets on recurring basis | 52,464 | 52,540 |
Corporate Obligations [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets on recurring basis | $ 52,464 | $ 52,540 |
Non-Marketable Investments - Ad
Non-Marketable Investments - Additional Information (Detail) - USD ($) | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items] | |||
Carrying value of the Company's non-marketable investments | $ 1,800,000 | $ 1,900,000 | |
Losses from non-marketable investments | $ (200,000) | ||
Distributions received from funds | $ 0 | $ 400,000 | |
Limited Partnerships Investments [Member] | Minimum [Member] | |||
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items] | |||
Ownership interest of Company | 5.00% |
Revenue and Contract Costs - Ad
Revenue and Contract Costs - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Contract assets | $ 0 |
Contract with customer, contract duration | 1 year |
Deferred revenue recognized | $ 58,000,000 |
Revenue expected to be recognized | $ 254,000,000 |
Minimum [Member] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Advisory services period | 1 hour |
Consulting services period | two weeks |
Performance obligation, revenue expected to be recognized | 12 months |
Maximum [Member] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Advisory services period | 2 days |
Consulting services period | three months |
Contract with customer, expected payment term | one year |
Performance obligation, revenue expected to be recognized | 24 months |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2018 | |
Income Taxes [Line Items] | |||
Income tax benefit | $ (698,000) | $ (88,000) | |
Effective income tax rate | 28.70% | (3.00%) | |
Tax Cuts and Jobs Act, Measurement Period Adjustment, Income Tax Expense (Benefit) | $ 0 | ||
Settlement from Tax Audit [Member] | |||
Income Taxes [Line Items] | |||
Tax benefit recognized | $ 1,300,000 | ||
Anticipated [Member] | |||
Income Taxes [Line Items] | |||
Effective income tax rate | 31.00% |
Net Income (Loss) Per Common 38
Net Income (Loss) Per Common Share - Schedule of Basic and Diluted Weighted Average Common Shares (Detail) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Earnings Per Share [Abstract] | ||
Basic weighted average common shares outstanding | 18,036 | 18,230 |
Weighted average common equivalent shares | 306 | |
Diluted weighted average common shares outstanding | 18,036 | 18,536 |
Options excluded from diluted weighted average share calculation as effect would have been anti-dilutive | 1,059 | 374 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Restricted Stock Unit Activity (Detail) - Restricted Stock Units (RSUs) [Member] shares in Thousands | 3 Months Ended |
Mar. 31, 2018$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Shares, Unvested at December 31, 2017 | shares | 509 |
Number of Shares, Granted | shares | 12 |
Number of Shares, Vested | shares | (9) |
Number of Shares, Forfeited | shares | (17) |
Number of Shares, Unvested at March 31, 2018 | shares | 495 |
Weighted-Average Grant Date Fair Value, Unvested, Beginning Balance | $ / shares | $ 37.59 |
Weighted-Average Grant Date Fair Value, Granted | $ / shares | 39.14 |
Weighted-Average Grant Date Fair Value, Vested | $ / shares | 37.39 |
Weighted-Average Grant Date Fair Value, Forfeited | $ / shares | 37.62 |
Weighted-Average Grant Date Fair Value, Unvested, Ending Balance | $ / shares | $ 37.63 |
Stockholders' Equity - Schedu40
Stockholders' Equity - Schedule of Stock Option Activity (Detail) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($)$ / sharesshares | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Number of Shares, Outstanding at December 31, 2017 | shares | 937 |
Number of Shares, Exercised | shares | (50) |
Number of Shares, Forfeited | shares | (12) |
Number of Shares, Outstanding at March 31, 2018 | shares | 875 |
Number of Shares, Exercisable at March 31, 2018 | shares | 625 |
Number of Shares, Vested and expected to vest at March 31, 2018 | shares | 875 |
Weighted - Average Exercise Price Per Share, Outstanding, Beginning balance | $ / shares | $ 35.10 |
Weighted - Average Exercise Price Per Share, Exercised | $ / shares | 33.31 |
Weighted - Average Exercise Price Per Share, Forfeited | $ / shares | 35.02 |
Weighted - Average Exercise Price Per Share, Outstanding, Ending balance | $ / shares | 35.21 |
Weighted - Average Exercise Price Per Share, Exercisable at March 31, 2018 | $ / shares | 35.17 |
Weighted - Average Exercise Price Per Share, Vested and expected to vest at March 31, 2018 | $ / shares | $ 35.21 |
Weighted - Average Remaining Contractual Term, Outstanding at March 31, 2018 | 5 years 9 months |
Weighted - Average Remaining Contractual Term, Exercisable at March 31, 2018 | 5 years 1 month 28 days |
Weighted - Average Remaining Contractual Term, Vested and expected to vest at March 31, 2018 | 5 years 9 months |
Aggregate Intrinsic Value, Outstanding at March 31, 2018 | $ | $ 5,465 |
Aggregate Intrinsic Value, Exercisable at March 31, 2018 | $ | 3,924 |
Aggregate Intrinsic Value, Vested and expected to vest at March 31, 2018 | $ | $ 5,465 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Stock-Based Compensation Recorded in Expense Categories (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Total allocated share-based compensation expense | $ 1,963 | $ 2,049 |
Cost of Services and Fulfillment [Member] | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Total allocated share-based compensation expense | 1,020 | 1,197 |
Selling and Marketing [Member] | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Total allocated share-based compensation expense | 244 | 162 |
General and Administrative [Member] | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Total allocated share-based compensation expense | $ 699 | $ 690 |
Stockholders' Equity - Shares S
Stockholders' Equity - Shares Subject to Employee Stock Purchase Plan Valuation Assumptions (Detail) - Employee Stock Purchase Plan [Member] - $ / shares | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Average risk-free interest rate | 1.92% | 0.88% |
Expected dividend yield | 2.00% | 1.90% |
Expected life | 6 months | 6 months |
Expected volatility | 22.00% | 28.00% |
Weighted average fair value | $ 8.49 | $ 8.49 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, shares in Millions | 1 Months Ended | 3 Months Ended | ||
Apr. 30, 2018 | Mar. 31, 2018 | Mar. 31, 2017 | Feb. 28, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Dividend declared and paid per share | $ 0.20 | $ 0.19 | ||
Aggregate dividend declared for the year | $ 3,600,000 | $ 3,500,000 | ||
Dividend declared per share | $ 0.20 | $ 0.19 | ||
Authorized to purchase of common stock under the stock repurchase program | $ 535,000,000 | $ 50,000,000 | ||
Repurchase of common Stock | 0.1 | 0.6 | ||
Cumulative aggregate cost of repurchase of common stock | $ 4,400,000 | $ 21,500,000 | ||
Cumulative repurchase of common stock | 16.2 | |||
Aggregate cost of repurchase of common stock | $ 469,300,000 | |||
Subsequent Event [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Dividend declared per share | $ 0.20 | |||
Dividend payable, date declared | 2018-04 | |||
Dividend declared payable date | Jun. 27, 2018 | |||
Dividend payable, record date | Jun. 13, 2018 |
Operating Segments - Schedule o
Operating Segments - Schedule of Information about Reportable Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Segment Reporting Information [Line Items] | ||
Total revenues | $ 77,749 | $ 77,194 |
Segment expenses | 29,694 | 27,224 |
Contribution margin (loss) | 48,055 | 49,970 |
Selling, marketing, administrative and other expenses | (50,157) | (46,643) |
Amortization of intangible assets | (186) | (191) |
Other income (expense) and losses on investments | (143) | (194) |
Income (loss) before income taxes | (2,431) | 2,942 |
Research [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 34,643 | 35,524 |
Connect [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 12,564 | 11,637 |
Analytics [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 4,493 | 4,582 |
Research Services [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 51,700 | 51,743 |
Advisory Services [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 9,514 | 8,613 |
Consulting Services [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 14,571 | 14,337 |
Events [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 80 | |
Analytics Services [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 1,964 | 2,421 |
Advisory Services and Events [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 26,049 | 25,451 |
Product Organization [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 53,664 | 54,244 |
Segment expenses | 10,117 | 9,227 |
Contribution margin (loss) | 43,547 | 45,017 |
Product Organization [Member] | Research [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 34,643 | 35,524 |
Product Organization [Member] | Connect [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 12,564 | 11,637 |
Product Organization [Member] | Analytics [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 4,493 | 4,582 |
Product Organization [Member] | Research Services [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 51,700 | 51,743 |
Product Organization [Member] | Events [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 80 | |
Product Organization [Member] | Analytics Services [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 1,964 | 2,421 |
Product Organization [Member] | Advisory Services and Events [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 1,964 | 2,501 |
Research Organization [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 11,642 | 10,493 |
Segment expenses | 12,713 | 12,143 |
Contribution margin (loss) | (1,071) | (1,650) |
Research Organization [Member] | Advisory Services [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 9,480 | 8,536 |
Research Organization [Member] | Consulting Services [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 2,162 | 1,957 |
Research Organization [Member] | Advisory Services and Events [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 11,642 | 10,493 |
Project Consulting [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 12,443 | 12,457 |
Segment expenses | 6,864 | 5,854 |
Contribution margin (loss) | 5,579 | 6,603 |
Project Consulting [Member] | Advisory Services [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 34 | 77 |
Project Consulting [Member] | Consulting Services [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 12,409 | 12,380 |
Project Consulting [Member] | Advisory Services and Events [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenues | $ 12,443 | $ 12,457 |