Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2020 | Aug. 04, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Title of 12(b) Security | Common Stock, $.01 Par Value | |
Trading Symbol | FORR | |
Security Exchange Name | NASDAQ | |
Entity Registrant Name | FORRESTER RESEARCH, INC. | |
Entity Central Index Key | 0001023313 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 18,893,000 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false | |
Entity Incorporation, State or Country Code | DE | |
Entity File Number | 000-21433 | |
Entity Tax Identification Number | 04-2797789 | |
Entity Address, Address Line One | 60 Acorn Park Drive | |
Entity Address, City or Town | Cambridge | |
Entity Address, State or Province | MA | |
Entity Address, Postal Zip Code | 02140 | |
City Area Code | 617 | |
Local Phone Number | 613-6000 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Current Assets: | ||
Cash and cash equivalents | $ 68,377 | $ 67,904 |
Accounts receivable, net of allowance for expected credit losses of $931 and $628 as of June 30, 2020 and December 31, 2019, respectively | 54,108 | 84,605 |
Deferred commissions | 15,029 | 20,326 |
Prepaid expenses and other current assets | 21,417 | 19,201 |
Total current assets | 158,931 | 192,036 |
Property and equipment, net | 29,019 | 29,937 |
Operating lease right-of-use assets | 63,837 | 69,100 |
Goodwill | 243,201 | 243,895 |
Intangible assets, net | 87,994 | 97,363 |
Other assets | 5,577 | 6,829 |
Total assets | 588,559 | 639,160 |
Current Liabilities: | ||
Accounts payable | 1,201 | 505 |
Accrued expenses and other current liabilities | 44,272 | 79,857 |
Current portion of long-term debt | 10,938 | 9,375 |
Deferred revenue | 170,777 | 179,194 |
Total current liabilities | 227,188 | 268,931 |
Long-term debt, net of deferred financing fees | 101,235 | 121,170 |
Non-current operating lease liabilities | 63,490 | 67,062 |
Other non-current liabilities | 23,237 | 23,909 |
Total liabilities | 415,150 | 481,072 |
Stockholders' Equity (Note 12): | ||
Preferred stock, $0.01 par value Authorized - 500 shares; issued and outstanding - none | ||
Common stock, $0.01 par value Authorized - 125,000 shares Issued - 23,401 and 23,275 shares as of June 30, 2020 and December 31, 2019, respectively Outstanding - 18,770 and 18,644 shares as of June 30, 2020 and December 31, 2019, respectively | 234 | 233 |
Additional paid-in capital | 222,778 | 216,454 |
Retained earnings | 129,314 | 118,147 |
Treasury stock - 4,631 shares as of June 30, 2020 and December 31, 2019 | (171,889) | (171,889) |
Accumulated other comprehensive loss | (7,028) | (4,857) |
Total stockholders’ equity | 173,409 | 158,088 |
Total liabilities and stockholders’ equity | $ 588,559 | $ 639,160 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Statement Of Financial Position [Abstract] | ||
Accounts receivable, allowance for expected credit losses | $ 931 | $ 628 |
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 | 23,401,000 | 23,275,000 |
Common stock, shares outstanding | 18,770,000 | 18,644,000 |
Treasury stock, shares | 4,631,000 | 4,631,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Revenues: | ||||
Total revenues | $ 113,541 | $ 128,183 | $ 219,886 | $ 228,832 |
Operating expenses: | ||||
Selling and marketing | 39,117 | 44,017 | 79,390 | 86,050 |
General and administrative | 11,456 | 13,221 | 23,461 | 26,411 |
Depreciation | 2,448 | 2,166 | 4,854 | 4,189 |
Amortization of intangible assets | 4,713 | 5,099 | 9,425 | 11,309 |
Acquisition and integration costs | 612 | 2,487 | 3,487 | 5,454 |
Total operating expenses | 102,310 | 123,561 | 207,934 | 235,094 |
Income (loss) from operations | 11,231 | 4,622 | 11,952 | (6,262) |
Interest expense | (1,307) | (2,085) | (2,845) | (4,437) |
Other income (expense), net | (201) | (86) | 109 | (356) |
Gain (loss) on investments, net | 2,352 | (8) | 2,365 | (44) |
Income (loss) before income taxes | 12,075 | 2,443 | 11,581 | (11,099) |
Income tax expense | 238 | 888 | 257 | 662 |
Net income (loss) | $ 11,837 | $ 1,555 | $ 11,324 | $ (11,761) |
Basic income (loss) per common share | $ 0.63 | $ 0.08 | $ 0.60 | $ (0.64) |
Diluted income (loss) per common share | $ 0.63 | $ 0.08 | $ 0.60 | $ (0.64) |
Basic weighted average common shares outstanding | 18,759 | 18,435 | 18,732 | 18,399 |
Diluted weighted average common shares outstanding | 18,831 | 18,780 | 18,828 | 18,399 |
Research [Member] | ||||
Revenues: | ||||
Total revenues | $ 73,621 | $ 76,279 | $ 146,417 | $ 144,888 |
Consulting [Member] | ||||
Revenues: | ||||
Total revenues | 34,888 | 34,017 | 68,347 | 65,803 |
Events [Member] | ||||
Revenues: | ||||
Total revenues | 5,032 | 17,887 | 5,122 | 18,141 |
Cost of Services and Fulfillment [Member] | ||||
Operating expenses: | ||||
Cost of services and fulfillment | $ 43,964 | $ 56,571 | $ 87,317 | $ 101,681 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 11,837 | $ 1,555 | $ 11,324 | $ (11,761) |
Other comprehensive income (loss), net of taxes: | ||||
Foreign currency translation | 885 | 594 | (1,035) | 164 |
Net change in fair value of interest rate swap | 45 | (1,136) | ||
Other comprehensive income (loss) | 930 | 594 | (2,171) | 164 |
Comprehensive income (loss) | $ 12,767 | $ 2,149 | $ 9,153 | $ (11,597) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 11,324 | $ (11,761) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation | 4,854 | 4,189 |
Impairment of property and equipment | 626 | |
Amortization of intangible assets | 9,425 | 11,309 |
Net (gains) losses from investments | (2,365) | 44 |
Deferred income taxes | (1,737) | (10,814) |
Stock-based compensation | 5,266 | 5,533 |
Operating lease right-of-use asset amortization and impairments | 7,417 | 6,415 |
Amortization of deferred financing fees | 490 | 474 |
Foreign currency (gains) losses | (2) | 498 |
Changes in assets and liabilities, net of acquisitions: | ||
Accounts receivable | 29,955 | 22,476 |
Deferred commissions | 5,295 | 840 |
Prepaid expenses and other current assets | 404 | (1,451) |
Accounts payable | 704 | 3,170 |
Accrued expenses and other liabilities | (33,548) | (9,976) |
Deferred revenue | (6,902) | 18,799 |
Operating lease liabilities | (6,204) | (6,216) |
Net cash provided by operating activities | 25,002 | 33,529 |
Cash flows from investing activities: | ||
Acquisitions, net of cash acquired | (238,943) | |
Purchases of property and equipment | (5,110) | (4,666) |
Other investing activity | 30 | |
Net cash used in investing activities | (5,110) | (243,579) |
Cash flows from financing activities: | ||
Proceeds from borrowings, net of costs | 171,275 | |
Payments on borrowings | (18,688) | (33,125) |
Payment of debt issuance costs | (857) | |
Deferred acquisition payments | (766) | |
Proceeds from issuance of common stock under employee equity incentive plans | 2,010 | 4,280 |
Taxes paid related to net share settlements of stock-based compensation awards | (951) | (130) |
Net cash provided by (used in) financing activities | (17,629) | 140,677 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (2,254) | 189 |
Net change in cash, cash equivalents and restricted cash | 9 | (69,184) |
Cash, cash equivalents and restricted cash, beginning of period | 69,192 | 140,296 |
Cash, cash equivalents and restricted cash, end of period | 69,201 | 71,112 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | 2,368 | 3,791 |
Cash (received) paid for income taxes | $ (273) | $ 2,540 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) $ in Millions | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Statement Of Cash Flows [Abstract] | |
Non-cash financing activities, debt issuance costs | $ 3.7 |
Interim Consolidated Financial
Interim Consolidated Financial Statements | 6 Months Ended |
Jun. 30, 2020 | |
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 generally accepted accounting principles 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 GAAP. It is recommended that these financial statements be read in conjunction with the consolidated financial statements and related notes that appear in the Forrester Research, Inc. (“Forrester”) Annual Report on Form 10-K for the year ended December 31, 2019. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair statement of the financial position, results of operations, comprehensive income (loss), and cash flows as of the dates and for the periods presented have been included. The results of operations for the three and six months ended June 30, 2020 may not be indicative of the results for the year ending December 31, 2020, or any other period. Due to the Company’s operating segment realignment during the three months ended June 30, 2020, the revenue line items in the Consolidated Statements of Operations were updated to present Events revenues as a separate financial statement line. In the prior presentation, Events revenues were combined within the “Advisory services and events revenues” financial statement line. Prior periods have been reclassified to conform to the current period presentation. These reclassifications had no impact on the amount of total revenues previously reported. Liquidity and Impact of COVID-19 The COVID-19 pandemic has significantly affected the Company beginning in March 2020 primarily through lower contract bookings and a reduction in revenues from the conversion of the Company’s events from in-person to virtual events. The Company also announced that its events in the second half of 2020 will be held as virtual events. While the duration and severity of this pandemic is uncertain, the Company currently expects a reduction in its subscription Research, Connect and Analytics revenues during the second half of 2020 due to reduced customer contract booking activity that began in March 2020, and which is expected to continue through at least the third quarter of 2020. The extent to which the COVID-19 pandemic ultimately impacts the Company’s business, financial condition, results of operations, cash flows, and liquidity may differ from the Company’s current estimates due to inherent uncertainties regarding the duration and further spread of the outbreak, its severity, actions taken to contain the virus or treat its impact, and how quickly and to what extent normal economic and operating conditions can resume. The Company has implemented several cost-reduction measures that include reductions to travel, new hiring, and employee incentive compensation programs. The Company will continue to proactively respond to the situation and may take further actions that alter the Company’s business operations as may be required by governmental authorities, or that the Company determines are in the best interests of its employees and customers. As of June 30, 2020, the Company is in compliance with its financial covenants under its Credit Agreement (refer to Note 4 – Debt The Company assessed certain accounting estimates that generally require consideration of forecasted financial information in context with the information reasonably available to it and the unknown future impacts COVID-19 as of June 30, 2020 and through the date of this report. The accounting matters assessed included, but were not limited to, the allowance for expected credit losses, the carrying value of its goodwill and other long-lived assets, valuation allowances for tax assets, and revenue recognition. While there was not a material impact to the consolidated financial statements resulting from the Company’s assessments as of and for the three and six months ended June 30, 2020, the Company’s future assessment of its current expectations of the magnitude and duration of COVID-19, as well as other factors, could result in material impacts to its consolidated financial statements in future reporting periods. 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). Six Months Ended June 30, 2020 2019 Cash and cash equivalents $ 68,377 $ 69,762 Restricted cash classified in (1): Prepaid expenses and other current assets 787 203 Other assets 37 1,147 Cash, cash equivalents and restricted cash shown in statement of cash flows $ 69,201 $ 71,112 (1) Restricted cash consists primarily of collateral required for letters of credit. The short-term or long-term classification is determined in accordance with the expiration of the underlying lease as the letters of credit are non-cancellable while the leases are in effect. Adoption of New Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments The allowance for expected credit losses on accounts receivable for the six months ended June 30, 2020 is summarized as follows (in thousands): Total Allowance Balance at December 31, 2019 $ 628 Cumulative effect adjustment of adopting Topic 326 218 Provision for expected credit losses 550 Net write-offs (456 ) Translation adjustments (9 ) Balance at June 30, 2020 $ 931 The Company adopted the guidance in ASU No. 2017-04, Intangibles-Goodwill and Other: Simplifying the Test for Goodwill Impairment The Company adopted the guidance in ASU No. 2018-13, Fair Value Measurement Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement . Fair Value Measurement Fair Value Measurements The Company adopted the guidance in ASU No. 2018-15, Intangibles-Goodwill and Other-Internal-Use Software: Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract . Recent Accounting Pronouncements In December 2019, the FASB issued ASU No. 2019-12, Income Taxes – Simplifying the Accounting for Income Taxes 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 |
Acquisitions
Acquisitions | 6 Months Ended |
Jun. 30, 2020 | |
Business Combinations [Abstract] | |
Acquisitions | Note 2 — Acquisitions Forrester accounts for business combinations in accordance with the acquisition method of accounting as prescribed by Accounts Standards Codification (“ASC”) Topic 805, Business Combinations SiriusDecisions, Inc. On January 3, 2019, Forrester acquired 100% of the issued and outstanding shares of SiriusDecisions, Inc. (“SiriusDecisions”), a privately-held company based in Wilton, Connecticut with approximately 350 employees globally. SiriusDecisions equips business-to-business (B2B) sales, marketing, and product leaders with the actionable research, frameworks, tools, operational benchmarks and expert advice they need to maximize performance and drive alignment. The acquisition creates several opportunities for the Company, including cross-selling services to the Company’s respective client bases, extending SiriusDecisions’ platform, methodologies, data, and best-practices tools into new roles, and accelerating international and industry growth. Pursuant to the terms of the merger agreement, the Company paid $246.8 million at closing after certain transaction expense adjustments, which was subject to a working capital adjustment. SiriusDecisions’ operating results are reported within the Company’s Research, Consulting and Events segments. During the year ended December 31, 2019, the Company finalized the purchase price allocation and related accounting for the acquisition. The Company recognized $1.7 million of acquisition costs in the six months ended June 30, 2019 related to the SiriusDecisions acquisition. The costs primarily consisted of investment banker fees and other professional services costs and are included in acquisition and integration costs within the Consolidated Statements of Operations. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 6 Months Ended |
Jun. 30, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Note 3 — Goodwill and Other Intangible Assets Goodwill The change in the carrying amount of goodwill for the six months ended June 30, 2020 Total Balance at December 31, 2019 $ 243,895 Translation adjustments (694 ) Balance at June 30, 2020 $ 243,201 The Company assesses goodwill for impairment annually on November 30, or on an interim basis if an event indicates a specific impairment may exist. As a result of the Company’s segment realignment during the three months ended June 30, 2020 (refer to Note 14 – Operating Segments As of June 30, 2020 , the Company had no accumulated goodwill impairment losses. Finite-Lived Intangible Assets The carrying values of finite-lived intangible assets are as follows (in thousands): June 30, 2020 Gross Net Carrying Accumulated Carrying Amount Amortization Amount Amortizable intangible assets Customer relationships $ 109,688 $ 44,303 $ 65,385 Technology 16,719 8,550 8,169 Backlog 13,000 9,750 3,250 Trademarks 12,459 1,269 11,190 Total $ 151,866 $ 63,872 $ 87,994 December 31, 2019 Gross Net Carrying Accumulated Carrying Amount Amortization Amount Amortizable intangible assets Customer relationships $ 109,825 $ 40,169 $ 69,656 Technology 16,661 7,051 9,610 Backlog 13,000 6,500 6,500 Trademarks 12,451 854 11,597 Total $ 151,937 $ 54,574 $ 97,363 Estimated intangible asset amortization expense for each of the five succeeding years is as follows (in thousands): 2020 (remainder) $ 9,427 2021 12,355 2022 11,016 2023 10,840 2024 9,730 Thereafter 34,626 Total $ 87,994 |
Debt
Debt | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Note 4 — Debt In connection with the acquisition of SiriusDecisions, on January 3, 2019 (the “Closing Date”) the Company entered into a $200.0 million credit agreement (the “Credit Agreement”). The Credit Agreement provides for: (1) senior secured term loans in an aggregate principal amount of $125.0 million (the “ Term Loans Revolving Credit Facility The Credit Agreement permits the Company to borrow incremental term loans and/or increase commitments under the Revolving Credit Facility in an aggregate principal amount up to $50.0 million, subject to approval by the administrative agent and certain customary terms and conditions. The Term Loans and Revolving Credit Facility can be repaid early, in part or in whole, at any time and from time to time, without premium or penalty, other than customary breakage reimbursement requirements for LIBOR based loans. The Term Loans must be prepaid with net cash proceeds of (i) certain debt incurred or issued by Forrester and its restricted subsidiaries and (ii) certain asset sales and condemnation or casualty events, subject to certain reinvestment rights. Amounts borrowed under the Credit Agreement bear interest, at Forrester’s option, at a rate per annum equal to either (i) LIBOR for the applicable interest period plus a margin that is between 1.75% and 2.50% based on Forrester’s consolidated total leverage ratio or (ii) the alternate base rate plus a margin that is between 0.75% and 1.50% based on Forrester’s consolidated total leverage ratio. In addition, the Company pays a commitment fee that is between 0.25% and 0.35% per annum, based on Forrester’s consolidated total leverage ratio, on the average daily unused portion of the Revolving Credit Facility, payable quarterly, in arrears. The Term Loans require repayment of the outstanding principal balance in quarterly installments each year, with the balance repayable on the maturity date, subject to customary exceptions. As of June 30, 2020 a 2020 (remainder) $ 4,688 2021 12,500 2022 12,500 2023 15,625 2024 68,750 Total remaining principal payments $ 114,063 The Revolving Credit Facility does not require repayment prior to maturity, subject to customary exceptions. In addition to financing the acquisition, proceeds from the Revolving Credit Facility can also be used towards working capital and general corporate purposes. Up to $5.0 million of the Revolving Credit Facility is available for the issuance of letters of credit, and any drawings under the letters of credit must be reimbursed within one business day. As of June 30, 2020 Forrester incurred $1.8 million in costs related to the Revolving Credit Facility, which are recorded in other assets on the Consolidated Balance Sheets. These costs are being amortized as interest expense on the Consolidated Statements of Operations on a straight-line basis over the five-year Outstanding Borrowings The following table summarizes the Company’s total outstanding borrowings as of the dates indicated (in thousands): Description: June 30, 2020 December 31, 2019 Term loan facility (1) $ 114,063 $ 118,750 Revolving credit facility (2) — 14,000 Principal amount outstanding (3) 114,063 132,750 Less: Deferred financing fees (1,890 ) (2,205 ) Net carrying amount $ 112,173 $ 130,545 (1) The contractual annualized interest rate as of June 30, 2020 Derivatives and Hedging (2) The Company had $75.0 million of available borrowing capacity on the revolver (not including the expansion feature) as of June 30, 2020 (3) The weighted average annual effective rate on the Company's total debt outstanding for the three and six months ended June 30, 2020 The Credit Agreement contains certain customary restrictive loan covenants, including among others, financial covenants that apply a maximum leverage ratio and minimum fixed charge coverage ratio. The maximum leverage ratio is based on total debt outstanding at the measurement date divided by EBITDA (as defined in the Credit Agreement) and the fixed charge coverage ratio is based upon EBITDA (as defined in the Credit Agreement), less capital expenditures, as a ratio to certain fixed charges, including Term Loan amortization, cash interest expense and cash taxes. The negative covenants limit, subject to various exceptions, the Company’s ability to incur additional indebtedness, create liens on assets, merge, consolidate, liquidate or dissolve any part of the Company, sell assets, pay dividends or other payments in respect to capital stock, change fiscal year, or enter into certain transactions with affiliates and subsidiaries. The Credit Agreement also contains customary events of default, representations, and warranties. As of June 30, 2020 , the Company is in compliance with its financial covenants und er the Credit Agreement . The Company currently forecasts that it will be in compliance with its financial covenants for at least one year from the issuance of these interim financial statements, after taking into consideration the cost - reduction measures implemented during the first quarter of the year. If the impact of COVID-19 is more severe than currently forecasted this may impact the Company’s ability to comply with its financial covenants, and it is not certain that the Company would be able to renegotiate the terms of the Credit Agreement in order to provide relief related to the financial covenants. If the Company were unable to meet its financial covenants and then were unable to renegotiate the terms of its financial covenants, all debt outstanding under the Credit Agreement could become immediately due and payable . All obligations under the Credit Agreement are unconditionally guaranteed by each of the Company’s existing and future, direct and indirect material wholly-owned domestic subsidiaries, other than certain excluded subsidiaries, and are collateralized by a first priority lien on substantially all tangible and intangible assets including intellectual property and all of the capital stock of the Company and its subsidiaries (limited to 65% of the voting equity of certain subsidiaries). |
Leases
Leases | 6 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
Leases | Note 5 — Leases All of the Company’s leases are operating leases, the majority of which are for office space. Operating lease right-of-use (“ROU”) assets and non-current operating lease liabilities are included as individual line items on the Consolidated Balance Sheets, while short-term operating lease liabilities are recorded within accrued expenses and other current liabilities. Leases with an initial term of twelve months or less are not recorded on the Consolidated Balance Sheets and are not material. The components of lease expense were as follows (in thousands): For the Three Months Ended June 30, 2020 2019 Operating lease cost $ 3,944 $ 3,727 Short-term lease cost 81 85 Variable lease cost 1,660 1,335 Sublease income (63 ) — Total lease cost $ 5,622 $ 5,147 For the Six Months Ended June 30, 2020 2019 Operating lease cost $ 7,935 $ 7,296 Short-term lease cost 163 340 Variable lease cost 3,016 2,569 Sublease income (124 ) — Total lease cost $ 10,990 $ 10,205 Additional lease information is summarized in the following table (in thousands, except lease term and discount rate): Six Months Ended Six Months Ended June 30, 2020 June 30, 2019 Cash paid for amounts included in the measurement of operating lease liabilities $ 6,204 $ 6,216 Operating right-of-use assets obtained in exchange for lease obligations $ 3,898 $ 16,626 Weighted-average remaining lease term - operating leases (years) 6.1 6.7 Weighted-average discount rate - operating leases 5.0 % 5.1 % Future minimum lease payments under non-cancellable leases as of June 30, 2020 are as follows (in thousands): 2020 (remainder) $ 7,654 2021 14,202 2022 14,106 2023 13,587 2024 13,215 Thereafter 24,698 Total lease payments 87,462 Less imputed interest (12,243 ) Present value of lease liabilities $ 75,219 Lease balances as of June 30, 2020 are as follows (in thousands): Operating lease right-of-use assets $ 63,837 Short-term operating lease liabilities (1) $ 11,729 Non-current operating lease liabilities 63,490 Total operating lease liabilities $ 75,219 (1) Included in accrued expenses and other current liabilities on the Consolidated Balance Sheets. The Company’s leases do not contain residual value guarantees, material restrictions or covenants, and all sublease transactions are not material. The Company incurred $1.4 million of ROU asset impairments during the related to facility leases from the SiriusDecisions, Inc. acquisition. These impairments are recorded in acquisition and integration costs in the Consolidated Statements of Operations During the three months ended June 30, 2020, the Company did not enter into any new leases. As of June 30, 2020, only one of the operating leases entered into during the prior quarter had not yet commenced. This operating lease, which consists of $13.9 million of undiscounted lease payments, has a lease term of ten years and is expected to commence later in 2020. Additionally, the Company could receive a variable incentive payment from one of its landlords to terminate the related office space lease early. The range of possible incentive payments is zero to $3.5 million, would be received in late 2020 or the first half of 2021, and is dependent on the Company’s ability to exit the existing facility by the proposed early termination dates. |
Contract Assets and Liabilities
Contract Assets and Liabilities | 6 Months Ended |
Jun. 30, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Contract Assets and Liabilities | Note 6 – 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, a receivable is recorded on the date an invoice is issued. Also included in accounts receivable are unbilled amounts resulting from revenue exceeding the amount billed to the customer, where the right to payment is unconditional. If the right to payment for services performed was conditional on something other than the passage of time, the unbilled amount would be recorded as a separate contract asset. There were no contract assets as of June 30, 2020 or 2019. The majority of the Company’s contracts are non-cancellable. However, for contracts that are cancellable by the customer, the Company does not record a receivable when it issues an invoice. The Company records accounts receivable on these contracts only up to the amount of revenue earned but not yet collected. In addition, since the majority of the Company’s contracts are for a duration of one year and payment is expected within one year from the transfer of products and services, the Company does not adjust its receivables or transaction 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. 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 invoices issued on a cancellable contract. During the three months ended June 30, 2020 and 2019, the Company recognized revenue of $43.2 and $53.5 million, respectively, related to its deferred revenue balance at the beginning of each such period. During the six months ended June 30, 2020 and 2019, the Company recognized revenue of $113.1 and $111.6 million, respectively, related to its deferred revenue balance at the beginning of each such period. To determine revenue recognized in each such 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 equals that balance . Approximately $309.8 million of revenue is expected to be recognized during the next 12 to 24 months from remaining performance obligations as of June 30, 2020. Cost to Obtain 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 Company accounts for these costs at a portfolio level as the Company’s contracts are similar in nature and the amortization model used closely matches the amortization expense that would be recognized on a contract-by-contract basis. Costs to obtain a contract are amortized to operations as the related revenue is recognized over the initial contract term. Amortization expense related to deferred commissions for the three months ended June 30, 2020 and 2019 was $9.0 million and $8.9 million, respectively. Amortization expense related to deferred commissions for the six months ended June 30, 2020 and 2019 was $17.2 million and $16.0 million, respectively. The Company evaluates the recoverability of deferred commissions at each balance sheet date |
Derivatives and Hedging
Derivatives and Hedging | 6 Months Ended |
Jun. 30, 2020 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging | Note 7 — 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 (see Note 4 – Debt Derivatives and Hedging , Interest Rate Swap At June 30, 2020, the Company had a single interest rate swap contract that matures in 2022, with an initial notional amount of $95.0 million. The notional amount at June 30, 2020 was $84.9 million. The Company pays a base fixed rate of 1.65275% and in return receives the greater of (1) 1-month LIBOR, rounded up to the nearest 1/16 Fair Value Measurements The swap has been designated and accounted for as a cash flow hedge of the forecasted interest payments on the Company’s debt. As long as the swap continues to be a highly effective hedge of the designated interest rate risk, changes in the fair value of the swap are recorded in accumulated other comprehensive loss, a component of equity. Any ineffective portion of a change in the fair value of a hedge is recorded in earnings. As required under Topic 815, the swap’s effectiveness is assessed on a quarterly basis. Since its inception, and through June 30, 2020, the interest rate swap was considered highly effective. Accordingly, the entire $1.2 million negative fair value as of June 30, 2020 is recorded, net of taxes, in other comprehensive loss. The Company expects $0.8 million of this loss, net of taxes, to be reclassified into earnings within the next 12 months. Foreign Currency Forwards The Company enters into 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 the three months ended June 30, 2020, the Company entered into three foreign currency forward exchange contracts, all of which settled by June 30, 2020. Accordingly, as of June 30, 2020, there are no amounts recorded in the Consolidated Balance Sheets for these contracts. The Company’s derivative counterpart ies are investment grade financial institution s . The Company does not have any collateral arrangements with its derivative counterpart ies and the derivative contract s 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): Three Months Ended Six Months Ended June 30, June 30, Amount recorded in: 2020 2019 2020 2019 Interest expense (1) $ (252 ) $ — $ (239 ) $ — Other income (expense), net (2) (157 ) — (157 ) — Total $ (409 ) $ — $ (396 ) $ — (1) Consists of interest expense from interest rate swap contract. (2) Consists of net realized gains and losses on foreign currency forward contracts. The Company did not have any derivatives as of, or during, the six months ended June 30, 2019. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 8 — Fair Value Measurements The carrying amounts reflected in the Consolidated Balance Sheets for cash, accounts receivable, accounts payable, and accrued expenses (excluding the contingent consideration discussed below) 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 Additionally, the Company measures certain financial assets and liabilities at fair value on a recurring basis including cash equivalents, contingent purchase price related to acquisitions, and its derivative contracts. The fair values of these financial assets and liabilities have been classified as Level 1, 2 or 3 within the fair value hierarchy as described in the accounting standards for fair value measurements: 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 June 30, 2020 Level 1 Level 2 Level 3 Total Assets Money market funds (1) $ 512 $ — $ — $ 512 Total Assets $ 512 $ — $ — $ 512 Liabilities Contingent purchase price (2) $ — $ — $ (2,603 ) $ (2,603 ) Interest rate swap (3) — $ (1,725 ) — (1,725 ) Total Liabilities $ — $ (1,725 ) $ (2,603 ) $ (4,328 ) As of December 31, 2019 Level 1 Level 2 Level 3 Total Assets Money market funds (1) $ 2,354 $ — $ — $ 2,354 Total Assets $ 2,354 $ — $ — $ 2,354 Liabilities Contingent purchase price (2) $ — $ — $ (2,511 ) $ (2,511 ) Interest rate swap (3) — $ (144 ) — (144 ) Total Liabilities $ — $ (144 ) $ (2,511 ) $ (2,655 ) (1) Included in cash and cash equivalents on the Consolidated Balance Sheets. (2) The acquisition of FeedbackNow on July 6, 2018 included a contingent consideration arrangement that required up to $4.2 million of consideration to be paid to the sellers based on the financial performance of FeedbackNow during the two-year (3) The Company has an interest rate swap contract that hedges the risk of variability from interest payments on its borrowings (see Note 4 – Debt and Note 7 – Derivatives and Hedging ). The fair value of the interest rate swap is based on valuations prepared by a third-party broker. Those valuations are based on observable interest rates and other observable market data, which the Company considers Level 2 inputs. During the six months ended June 30, 2020 and 2019, 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 or Level 3 liabilities. Level 3 liabilities at June 30, 2020 consist entirely of the contingent purchase price related to the acquisition of FeedbackNow. Changes in the fair value of Level 3 contingent consideration for the six months ended June 30, 2020 were as follows (in thousands): Contingent Consideration Balance at December 31, 2019 $ (2,511 ) Fair value adjustment of contingent purchase price (1) (22 ) Payment of contingent purchase price — Foreign exchange effect (70 ) Balance at June 30, 2020 $ (2,603 ) (1) This amount was recognized as acquisition and integration costs within the Consolidated Statements of Operations. As of June 30, 2020, the remaining range of undiscounted amounts that could be payable under this arrangement is $2.0 million to $2.6 million. The amount is expected to be finalized and paid to the sellers by the end of 2020. The significant unobservable inputs used in the Monte Carlo simulation to fair value the contingent consideration included projected contract bookings, a discount rate of 17.3%, and revenue volatility of 26.6%. Increases or decreases in the inputs would result in a higher or lower fair value measurement. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 9 — 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 expense for the six months ended June 30, 2020 was $0.3 million resulting in an effective tax rate of 2.2% for the period. Income tax expense for the six months ended June 30, 2019 was $0.7 million resulting in an effective tax rate of (6.0)% for the period. The decrease in income tax expense during the 2020 period was due to the release of a U.S. valuation allowance on capital loss carryforwards. The Company anticipates that its effective tax rate for the full year 2020 will be approximately 1%. On March 27, 2020, Congress enacted the Coronavirus Aid, Relief and Economic Security ("CARES") Act to provide certain relief as a result of the COVID-19 outbreak. In July 2015, the U.S. Tax Court issued an opinion in Altera Corp. v. Commissioner related to the treatment of stock-based compensation expense in an intercompany cost-sharing arrangement. The opinion invalidates part of a treasury regulation requiring stock-based compensation to be included in any qualified intercompany cost-sharing arrangement. The Company previously recorded a tax benefit based on the opinion in the case. In June 2019, the U.S. Court of Appeals for Ninth Circuit reversed the U.S. Tax Court’s decision. Altera Corp. submitted its appeal for an en banc rehearing before the U.S. Court of Appeals for the Ninth Circuit, which was subsequently denied. During 2020 , Altera Corp. submitted a request to the Supreme Court to accept the case for review, which was also denied, resulting in finality of any legal recourse. The Company maintains its previously recorded tax benefit in accordance with the U.S. Tax Court decision. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 6 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Note 10 — Accumulated Other Comprehensive Loss The components of accumulated other comprehensive loss are as follows (net of tax, in thousands): Total Accumulated Interest Rate Translation Other Comprehensive Swap Adjustment Loss Balance at March 31, 2020 $ (1,285 ) $ (6,673 ) $ (7,958 ) Other comprehensive income (loss) activity during the period: Foreign currency translation — 885 885 Unrealized loss before reclassification (136 ) — (136 ) Reclassification of realized losses to income 181 — 181 Other comprehensive income (loss) for the period 45 885 930 Balance at June 30, 2020 $ (1,240 ) $ (5,788 ) $ (7,028 ) Total Accumulated Translation Other Comprehensive Adjustment Loss Balance at March 31, 2019 $ (5,584 ) $ (5,584 ) Other comprehensive income (loss) activity during the period: Foreign currency translation 594 594 Other comprehensive income (loss) for the period 594 594 Balance at June 30, 2019 $ (4,990 ) $ (4,990 ) Total Accumulated Interest Rate Translation Other Comprehensive Swap Adjustment Loss Balance at December 31, 2019 $ (104 ) $ (4,753 ) $ (4,857 ) Other comprehensive income (loss) activity during the period: Foreign currency translation — (1,035 ) (1,035 ) Unrealized loss before reclassification (1,308 ) — (1,308 ) Reclassification of realized losses to income 172 — 172 Other comprehensive income (loss) for the period (1,136 ) (1,035 ) (2,171 ) Balance at June 30, 2020 $ (1,240 ) $ (5,788 ) $ (7,028 ) Total Accumulated Translation Other Comprehensive Adjustment Loss Balance at December 31, 2018 $ (5,154 ) $ (5,154 ) Other comprehensive income (loss) activity during the period: Foreign currency translation 164 164 Other comprehensive income (loss) for the period 164 164 Balance at June 30, 2019 $ (4,990 ) $ (4,990 ) |
Net Income (Loss) Per Common Sh
Net Income (Loss) Per Common Share | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Common Share | Note 11 — 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 treasur y-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 Six Months Ended June 30, June 30, 2020 2019 2020 2019 Basic weighted average common shares outstanding 18,759 18,435 18,732 18,399 Weighted average common equivalent shares 72 345 96 — Diluted weighted average common shares outstanding 18,831 18,780 18,828 18,399 Options and restricted stock units excluded from diluted weighted average share calculation as effect would have been anti-dilutive 733 1 441 1,084 |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
Stockholders' Equity | Note 12 — Stockholders’ Equity The components of stockholders’ equity are as follows (in thousands): Three Months Ended June 30, 2020 Common Stock Treasury Stock Accumulated Number of Shares $0.01 Par Value Additional Paid-in Capital Retained Earnings Number of Shares Cost Other Comprehensive Income (Loss) Total Equity Balance at March 31, 2020 23,389 $ 234 $ 220,308 $ 117,477 4,631 $ (171,889 ) $ (7,958 ) $ 158,172 Issuance of common stock under stock plans, net 12 — 6 — — — — 6 Stock-based compensation expense — — 2,464 — — — — 2,464 Net income — — — 11,837 — — — 11,837 Other comprehensive income — — — — — — 930 930 Balance at June 30, 2020 23,401 $ 234 $ 222,778 $ 129,314 4,631 $ (171,889 ) $ (7,028 ) $ 173,409 Three Months Ended June 30, 2019 Common Stock Treasury Stock Accumulated Number of Shares $0.01 Par Value Additional Paid-in Capital Retained Earnings Number of Shares Cost Other Comprehensive Income (Loss) Total Equity Balance at March 31, 2019 23,050 $ 231 $ 206,655 $ 114,401 4,631 $ (171,889 ) $ (5,584 ) $ 143,814 Issuance of common stock under stock plans, net 39 — 875 — — — — 875 Stock-based compensation expense — — 2,848 — — — — 2,848 Net income — — — 1,555 — — — 1,555 Other comprehensive income — — — — — — 594 594 Balance at June 30, 2019 23,089 $ 231 $ 210,378 $ 115,956 4,631 $ (171,889 ) $ (4,990 ) $ 149,686 Six Months Ended June 30, 2020 Common Stock Treasury Stock Accumulated Number of Shares $0.01 Par Value Additional Paid-in Capital Retained Earnings Number of Shares Cost Other Comprehensive Income (Loss) Total Equity Balance at December 31, 2019 23,275 $ 233 $ 216,454 $ 118,147 4,631 $ (171,889 ) $ (4,857 ) $ 158,088 Issuance of common stock under stock plans, net 126 1 1,058 — — — — 1,059 Stock-based compensation expense — — 5,266 — — — — 5,266 Cumulative effect adjustment due to adoption of new accounting pronouncement, net of tax of $61 — — — (157 ) — — — (157 ) Net income — — — 11,324 — — — 11,324 Other comprehensive loss — — — — — — (2,171 ) (2,171 ) Balance at June 30, 2020 23,401 $ 234 $ 222,778 $ 129,314 4,631 $ (171,889 ) $ (7,028 ) $ 173,409 Six Months Ended June 30, 2019 Common Stock Treasury Stock Accumulated Number of Shares $0.01 Par Value Additional Paid-in Capital Retained Earnings Number of Shares Cost Other Comprehensive Income (Loss) Total Equity Balance at December 31, 2018 22,951 $ 230 $ 200,696 $ 127,717 4,631 $ (171,889 ) $ (5,154 ) $ 151,600 Issuance of common stock under stock plans, net 138 1 4,149 — — — — 4,150 Stock-based compensation expense — — 5,533 — — — — 5,533 Net loss — — — (11,761 ) — — — (11,761 ) Other comprehensive income — — — — — — 164 164 Balance at June 30, 2019 23,089 $ 231 $ 210,378 $ 115,956 4,631 $ (171,889 ) $ (4,990 ) $ 149,686 Equity Plans Restricted stock unit activity for the six months ended June 30, 2020 is presented below (in thousands, except per share data): Weighted- Average Number of Grant Date Shares Fair Value Unvested at December 31, 2019 656 $ 42.94 Granted 62 31.06 Vested (83 ) 44.04 Forfeited (76 ) 43.77 Unvested at June 30, 2020 559 $ 41.35 Stock option activity for the six months ended June 30, 2020 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, 2019 436 $ 35.62 Granted — — Exercised (28 ) 32.96 Forfeited (38 ) 38.25 Outstanding at June 30, 2020 370 $ 35.56 3.40 $ 15 Exercisable at June 30, 2020 367 $ 35.52 3.38 $ 15 Vested and expected to vest at June 30, 2020 370 $ 35.56 3.40 $ 15 Stock-Based Compensation Forrester recognizes the fair value of stock-based compensation over the requisite service period of the individual grantee, which generally equals the vesting period . Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 Cost of services and fulfillment $ 1,232 $ 1,567 $ 2,825 $ 3,030 Selling and marketing 423 485 785 925 General and administrative 809 796 1,656 1,578 Total $ 2,464 $ 2,848 $ 5,266 $ 5,533 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 Six Months Ended June 30, June 30, 2020 2019 2020 2019 Average risk-free interest rate 0.30 % 2.51 % 0.30 % 2.51 % Expected dividend yield 0.0 % 0.0 % 0.0 % 0.0 % Expected life 0.5 Years 0.5 Years 0.5 Years 0.5 Years Expected volatility 26 % 34 % 26 % 34 % Weighted average fair value $ 8.10 $ 12.50 $ 8.10 $ 12.50 Dividends As a result of the acquisition of SiriusDecisions on January 3, 2019 (see Note 2 – Acquisitions) Debt no Treasury Stock As of June 30, 2020, Forrester’s Board of Directors had authorized an aggregate $535.0 million to purchase common stock under its stock repurchase program. The shares repurchased may be used, among other things, in connection with Forrester’s equity incentive and purchase plans. In the six months ended June 30, 2020 and 2019, the Company did not repurchase any shares of common stock. From the inception of the program through June 30, 2020, the Company repurchased 16.3 million shares of common stock at an aggregate cost of $474.9 million. |
Non-Marketable Investments
Non-Marketable Investments | 6 Months Ended |
Jun. 30, 2020 | |
Investments Debt And Equity Securities [Abstract] | |
Non-Marketable Investments | Note 13 — Non-Marketable Investments At June 30, 2020 and December 31, 2019, the carrying value of the Company’s non-marketable investments, which were composed of interests in technology-related private equity funds, was $4.9 million and $2.5 million, respectively. At June 30, 2020, $4.3 million is included in prepaid expenses and other current assets in the Consolidated Balance Sheets as Forrester received a distribution of this amount from the underlying funds during July 2020. The remaining $0.6 million, and the entire balance at December 31, 2019, is included in other assets in the Consolidated Balance Sheets. The Company’s non-marketable investments are 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. Gains from non-marketable investments were $2.4 million during each of the three and six months ended June 30, 2020 and are included in gain (loss) on investments, net in the Consolidated Statements of Operations. Gains (losses) from non-marketable investments were immaterial during the three and six months ended June 30, 2019. During the three and six months ended June 30, 2020 and 2019, no distributions were received from the funds. |
Operating Segments
Operating Segments | 6 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
Operating Segments | Note 14 — Operating Segments As described in the Company’s Form 8-K filed on April 2, 2020, Forrester’s Chief Product Officer resigned from the Company effective April 17, 2020. Subsequently, the Chief Product Officer position was eliminated and the Company reorganized its operations to reflect three lines of business: Research, Consulting, and Events. As a result of these changes, during the three months ended June 30, 2020, the Company realigned its internal reporting into Research, Consulting, and Events. The realignment eliminated the Products segment as the product lines and organizations supporting the related revenues began operating under the new management structure. The prior period amounts have been revised to conform to the current presentation. The Research segment includes the revenues of the Research, Connect and Analytics products and the cost of the organizations responsible for developing and delivering these products. In addition, this segment includes Consulting revenues from the delivery of advisory services (such as workshops, speeches and advisory days) delivered by the Company’s research and analytics analysts. The costs of the product management organization that is responsible for product pricing and packaging, and the launch of new products is included in this segment. 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 s 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, interest and other expense, and gains ( losses ) on investments. The accounting policies used by the segments are the same as those used in the consolidated financial statements. The Company provides disaggregated revenue by product in the segment tables below (in thousands): Research Consulting Events Consolidated Three Months Ended June 30, 2020 Research revenues Research $ 55,358 $ — $ — $ 55,358 Connect 13,078 — — 13,078 Analytics 5,185 — — 5,185 Total research revenues 73,621 — — 73,621 Consulting 13,351 21,537 — 34,888 Events — — 5,032 5,032 Total segment revenues 86,972 21,537 5,032 113,541 Segment expenses (25,870 ) (10,099 ) (3,206 ) (39,175 ) Selling, marketing, administrative and other expenses (57,810 ) Amortization of intangible assets (4,713 ) Acquisition and integration costs (612 ) Interest expense, other expense and gains on investments 844 Income before income taxes $ 12,075 Research Consulting Events Consolidated Three Months Ended June 30, 2019 Research revenues Research $ 56,305 $ — $ — $ 56,305 Connect 14,067 — — 14,067 Analytics 5,907 — — 5,907 Total research revenues 76,279 — — 76,279 Consulting 15,024 18,993 — 34,017 Events — — 17,887 17,887 Total segment revenues 91,303 18,993 17,887 128,183 Segment expenses (31,209 ) (9,474 ) (10,693 ) (51,376 ) Selling, marketing, administrative and other expenses (64,599 ) Amortization of intangible assets (5,099 ) Acquisition and integration costs (2,487 ) Interest expense, other expense and losses on investments (2,179 ) Income before income taxes $ 2,443 Research Consulting Events Consolidated Six Months Ended June 30, 2020 Research revenues Research $ 108,964 $ — $ — $ 108,964 Connect 26,967 — — 26,967 Analytics 10,486 — — 10,486 Total research revenues 146,417 — — 146,417 Consulting 27,377 40,970 — 68,347 Events — — 5,122 5,122 Total segment revenues 173,794 40,970 5,122 219,886 Segment expenses (53,334 ) (20,120 ) (3,883 ) (77,337 ) Selling, marketing, administrative and other expenses (117,685 ) Amortization of intangible assets (9,425 ) Acquisition and integration costs (3,487 ) Interest expense, other income and gains on investments (371 ) Income before income taxes $ 11,581 Research Consulting Events Consolidated Six Months Ended June 30, 2019 Research revenues Research $ 106,085 $ — $ — $ 106,085 Connect 27,638 — — 27,638 Analytics 11,165 — — 11,165 Total research revenues 144,888 — — 144,888 Consulting 29,411 36,392 — 65,803 Events — — 18,141 18,141 Total segment revenues 174,299 36,392 18,141 228,832 Segment expenses (61,148 ) (18,908 ) (11,665 ) (91,721 ) Selling, marketing, administrative and other expenses (126,610 ) Amortization of intangible assets (11,309 ) Acquisition and integration costs (5,454 ) Interest expense, other expense and losses on investments (4,837 ) Loss before income taxes $ (11,099 ) |
Interim Consolidated Financia_2
Interim Consolidated Financial Statements (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited interim consolidated financial statements have been prepared in accordance with generally accepted accounting principles 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 GAAP. It is recommended that these financial statements be read in conjunction with the consolidated financial statements and related notes that appear in the Forrester Research, Inc. (“Forrester”) Annual Report on Form 10-K for the year ended December 31, 2019. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair statement of the financial position, results of operations, comprehensive income (loss), and cash flows as of the dates and for the periods presented have been included. The results of operations for the three and six months ended June 30, 2020 may not be indicative of the results for the year ending December 31, 2020, or any other period. Due to the Company’s operating segment realignment during the three months ended June 30, 2020, the revenue line items in the Consolidated Statements of Operations were updated to present Events revenues as a separate financial statement line. In the prior presentation, Events revenues were combined within the “Advisory services and events revenues” financial statement line. Prior periods have been reclassified to conform to the current period presentation. These reclassifications had no impact on the amount of total revenues previously reported. |
Liquidity and Impact of COVID-19 | Liquidity and Impact of COVID-19 The COVID-19 pandemic has significantly affected the Company beginning in March 2020 primarily through lower contract bookings and a reduction in revenues from the conversion of the Company’s events from in-person to virtual events. The Company also announced that its events in the second half of 2020 will be held as virtual events. While the duration and severity of this pandemic is uncertain, the Company currently expects a reduction in its subscription Research, Connect and Analytics revenues during the second half of 2020 due to reduced customer contract booking activity that began in March 2020, and which is expected to continue through at least the third quarter of 2020. The extent to which the COVID-19 pandemic ultimately impacts the Company’s business, financial condition, results of operations, cash flows, and liquidity may differ from the Company’s current estimates due to inherent uncertainties regarding the duration and further spread of the outbreak, its severity, actions taken to contain the virus or treat its impact, and how quickly and to what extent normal economic and operating conditions can resume. The Company has implemented several cost-reduction measures that include reductions to travel, new hiring, and employee incentive compensation programs. The Company will continue to proactively respond to the situation and may take further actions that alter the Company’s business operations as may be required by governmental authorities, or that the Company determines are in the best interests of its employees and customers. As of June 30, 2020, the Company is in compliance with its financial covenants under its Credit Agreement (refer to Note 4 – Debt The Company assessed certain accounting estimates that generally require consideration of forecasted financial information in context with the information reasonably available to it and the unknown future impacts COVID-19 as of June 30, 2020 and through the date of this report. The accounting matters assessed included, but were not limited to, the allowance for expected credit losses, the carrying value of its goodwill and other long-lived assets, valuation allowances for tax assets, and revenue recognition. While there was not a material impact to the consolidated financial statements resulting from the Company’s assessments as of and for the three and six months ended June 30, 2020, the Company’s future assessment of its current expectations of the magnitude and duration of COVID-19, as well as other factors, could result in material impacts to its consolidated financial statements in future reporting periods. |
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). Six Months Ended June 30, 2020 2019 Cash and cash equivalents $ 68,377 $ 69,762 Restricted cash classified in (1): Prepaid expenses and other current assets 787 203 Other assets 37 1,147 Cash, cash equivalents and restricted cash shown in statement of cash flows $ 69,201 $ 71,112 (1) Restricted cash consists primarily of collateral required for letters of credit. The short-term or long-term classification is determined in accordance with the expiration of the underlying lease as the letters of credit are non-cancellable while the leases are in effect. |
Adoption of New Accounting Pronouncements | Adoption of New Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments The allowance for expected credit losses on accounts receivable for the six months ended June 30, 2020 is summarized as follows (in thousands): Total Allowance Balance at December 31, 2019 $ 628 Cumulative effect adjustment of adopting Topic 326 218 Provision for expected credit losses 550 Net write-offs (456 ) Translation adjustments (9 ) Balance at June 30, 2020 $ 931 The Company adopted the guidance in ASU No. 2017-04, Intangibles-Goodwill and Other: Simplifying the Test for Goodwill Impairment The Company adopted the guidance in ASU No. 2018-13, Fair Value Measurement Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement . Fair Value Measurement Fair Value Measurements The Company adopted the guidance in ASU No. 2018-15, Intangibles-Goodwill and Other-Internal-Use Software: Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract . Recent Accounting Pronouncements In December 2019, the FASB issued ASU No. 2019-12, Income Taxes – Simplifying the Accounting for Income Taxes 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 |
Interim Consolidated Financia_3
Interim Consolidated Financial Statements (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
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). Six Months Ended June 30, 2020 2019 Cash and cash equivalents $ 68,377 $ 69,762 Restricted cash classified in (1): Prepaid expenses and other current assets 787 203 Other assets 37 1,147 Cash, cash equivalents and restricted cash shown in statement of cash flows $ 69,201 $ 71,112 (1) Restricted cash consists primarily of collateral required for letters of credit. The short-term or long-term classification is determined in accordance with the expiration of the underlying lease as the letters of credit are non-cancellable while the leases are in effect. |
Summary of Allowance for Expected Credit Losses on Accounts Receivable | The allowance for expected credit losses on accounts receivable for the six months ended June 30, 2020 is summarized as follows (in thousands): Total Allowance Balance at December 31, 2019 $ 628 Cumulative effect adjustment of adopting Topic 326 218 Provision for expected credit losses 550 Net write-offs (456 ) Translation adjustments (9 ) Balance at June 30, 2020 $ 931 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Summary of Change in Carrying Amount of Goodwill | The change in the carrying amount of goodwill for the six months ended June 30, 2020 Total Balance at December 31, 2019 $ 243,895 Translation adjustments (694 ) Balance at June 30, 2020 $ 243,201 |
Summary of Carrying Values of Finite-Lived Intangible Assets | The carrying values of finite-lived intangible assets are as follows (in thousands): June 30, 2020 Gross Net Carrying Accumulated Carrying Amount Amortization Amount Amortizable intangible assets Customer relationships $ 109,688 $ 44,303 $ 65,385 Technology 16,719 8,550 8,169 Backlog 13,000 9,750 3,250 Trademarks 12,459 1,269 11,190 Total $ 151,866 $ 63,872 $ 87,994 December 31, 2019 Gross Net Carrying Accumulated Carrying Amount Amortization Amount Amortizable intangible assets Customer relationships $ 109,825 $ 40,169 $ 69,656 Technology 16,661 7,051 9,610 Backlog 13,000 6,500 6,500 Trademarks 12,451 854 11,597 Total $ 151,937 $ 54,574 $ 97,363 |
Summary of Estimated Intangible Assets Amortization Expense | Estimated intangible asset amortization expense for each of the five succeeding years is as follows (in thousands): 2020 (remainder) $ 9,427 2021 12,355 2022 11,016 2023 10,840 2024 9,730 Thereafter 34,626 Total $ 87,994 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Maturities of Long-term Debt | As of June 30, 2020 a 2020 (remainder) $ 4,688 2021 12,500 2022 12,500 2023 15,625 2024 68,750 Total remaining principal payments $ 114,063 |
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: June 30, 2020 December 31, 2019 Term loan facility (1) $ 114,063 $ 118,750 Revolving credit facility (2) — 14,000 Principal amount outstanding (3) 114,063 132,750 Less: Deferred financing fees (1,890 ) (2,205 ) Net carrying amount $ 112,173 $ 130,545 (1) The contractual annualized interest rate as of June 30, 2020 Derivatives and Hedging (2) The Company had $75.0 million of available borrowing capacity on the revolver (not including the expansion feature) as of June 30, 2020 (3) The weighted average annual effective rate on the Company's total debt outstanding for the three and six months ended June 30, 2020 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
Summary of Components of Lease Expense | The components of lease expense were as follows (in thousands): For the Three Months Ended June 30, 2020 2019 Operating lease cost $ 3,944 $ 3,727 Short-term lease cost 81 85 Variable lease cost 1,660 1,335 Sublease income (63 ) — Total lease cost $ 5,622 $ 5,147 For the Six Months Ended June 30, 2020 2019 Operating lease cost $ 7,935 $ 7,296 Short-term lease cost 163 340 Variable lease cost 3,016 2,569 Sublease income (124 ) — Total lease cost $ 10,990 $ 10,205 |
Summary of Additional Lease Information | Additional lease information is summarized in the following table (in thousands, except lease term and discount rate): Six Months Ended Six Months Ended June 30, 2020 June 30, 2019 Cash paid for amounts included in the measurement of operating lease liabilities $ 6,204 $ 6,216 Operating right-of-use assets obtained in exchange for lease obligations $ 3,898 $ 16,626 Weighted-average remaining lease term - operating leases (years) 6.1 6.7 Weighted-average discount rate - operating leases 5.0 % 5.1 % |
Summary of Future Minimum Lease Payments Under Non-Cancellable Leases | Future minimum lease payments under non-cancellable leases as of June 30, 2020 are as follows (in thousands): 2020 (remainder) $ 7,654 2021 14,202 2022 14,106 2023 13,587 2024 13,215 Thereafter 24,698 Total lease payments 87,462 Less imputed interest (12,243 ) Present value of lease liabilities $ 75,219 |
Summary of Lease Balances | Lease balances as of June 30, 2020 are as follows (in thousands): Operating lease right-of-use assets $ 63,837 Short-term operating lease liabilities (1) $ 11,729 Non-current operating lease liabilities 63,490 Total operating lease liabilities $ 75,219 (1) Included in accrued expenses and other current liabilities on the Consolidated Balance Sheets. |
Derivatives and Hedging (Tables
Derivatives and Hedging (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
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): Three Months Ended Six Months Ended June 30, June 30, Amount recorded in: 2020 2019 2020 2019 Interest expense (1) $ (252 ) $ — $ (239 ) $ — Other income (expense), net (2) (157 ) — (157 ) — Total $ (409 ) $ — $ (396 ) $ — (1) Consists of interest expense from interest rate swap contract. (2) Consists of net realized gains and losses on foreign currency forward contracts. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
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 June 30, 2020 Level 1 Level 2 Level 3 Total Assets Money market funds (1) $ 512 $ — $ — $ 512 Total Assets $ 512 $ — $ — $ 512 Liabilities Contingent purchase price (2) $ — $ — $ (2,603 ) $ (2,603 ) Interest rate swap (3) — $ (1,725 ) — (1,725 ) Total Liabilities $ — $ (1,725 ) $ (2,603 ) $ (4,328 ) As of December 31, 2019 Level 1 Level 2 Level 3 Total Assets Money market funds (1) $ 2,354 $ — $ — $ 2,354 Total Assets $ 2,354 $ — $ — $ 2,354 Liabilities Contingent purchase price (2) $ — $ — $ (2,511 ) $ (2,511 ) Interest rate swap (3) — $ (144 ) — (144 ) Total Liabilities $ — $ (144 ) $ (2,511 ) $ (2,655 ) (1) Included in cash and cash equivalents on the Consolidated Balance Sheets. (2) The acquisition of FeedbackNow on July 6, 2018 included a contingent consideration arrangement that required up to $4.2 million of consideration to be paid to the sellers based on the financial performance of FeedbackNow during the two-year (3) The Company has an interest rate swap contract that hedges the risk of variability from interest payments on its borrowings (see Note 4 – Debt and Note 7 – Derivatives and Hedging ). The fair value of the interest rate swap is based on valuations prepared by a third-party broker. Those valuations are based on observable interest rates and other observable market data, which the Company considers Level 2 inputs. |
Summary of Changes in the Fair Value of Level 3 Contingent Consideration | Changes in the fair value of Level 3 contingent consideration for the six months ended June 30, 2020 were as follows (in thousands): Contingent Consideration Balance at December 31, 2019 $ (2,511 ) Fair value adjustment of contingent purchase price (1) (22 ) Payment of contingent purchase price — Foreign exchange effect (70 ) Balance at June 30, 2020 $ (2,603 ) (1) This amount was recognized as acquisition and integration costs within the Consolidated Statements of Operations. As of June 30, 2020, the remaining range of undiscounted amounts that could be payable under this arrangement is $2.0 million to $2.6 million. The amount is expected to be finalized and paid to the sellers by the end of 2020. The significant unobservable inputs used in the Monte Carlo simulation to fair value the contingent consideration included projected contract bookings, a discount rate of 17.3%, and revenue volatility of 26.6%. Increases or decreases in the inputs would result in a higher or lower fair value measurement. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
Schedule of Components of Accumulated Other Comprehensive Loss | The components of accumulated other comprehensive loss are as follows (net of tax, in thousands): Total Accumulated Interest Rate Translation Other Comprehensive Swap Adjustment Loss Balance at March 31, 2020 $ (1,285 ) $ (6,673 ) $ (7,958 ) Other comprehensive income (loss) activity during the period: Foreign currency translation — 885 885 Unrealized loss before reclassification (136 ) — (136 ) Reclassification of realized losses to income 181 — 181 Other comprehensive income (loss) for the period 45 885 930 Balance at June 30, 2020 $ (1,240 ) $ (5,788 ) $ (7,028 ) Total Accumulated Translation Other Comprehensive Adjustment Loss Balance at March 31, 2019 $ (5,584 ) $ (5,584 ) Other comprehensive income (loss) activity during the period: Foreign currency translation 594 594 Other comprehensive income (loss) for the period 594 594 Balance at June 30, 2019 $ (4,990 ) $ (4,990 ) Total Accumulated Interest Rate Translation Other Comprehensive Swap Adjustment Loss Balance at December 31, 2019 $ (104 ) $ (4,753 ) $ (4,857 ) Other comprehensive income (loss) activity during the period: Foreign currency translation — (1,035 ) (1,035 ) Unrealized loss before reclassification (1,308 ) — (1,308 ) Reclassification of realized losses to income 172 — 172 Other comprehensive income (loss) for the period (1,136 ) (1,035 ) (2,171 ) Balance at June 30, 2020 $ (1,240 ) $ (5,788 ) $ (7,028 ) Total Accumulated Translation Other Comprehensive Adjustment Loss Balance at December 31, 2018 $ (5,154 ) $ (5,154 ) Other comprehensive income (loss) activity during the period: Foreign currency translation 164 164 Other comprehensive income (loss) for the period 164 164 Balance at June 30, 2019 $ (4,990 ) $ (4,990 ) |
Net Income (Loss) Per Common _2
Net Income (Loss) Per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
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 Six Months Ended June 30, June 30, 2020 2019 2020 2019 Basic weighted average common shares outstanding 18,759 18,435 18,732 18,399 Weighted average common equivalent shares 72 345 96 — Diluted weighted average common shares outstanding 18,831 18,780 18,828 18,399 Options and restricted stock units excluded from diluted weighted average share calculation as effect would have been anti-dilutive 733 1 441 1,084 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
Components of Stockholders' Equity | The components of stockholders’ equity are as follows (in thousands): Three Months Ended June 30, 2020 Common Stock Treasury Stock Accumulated Number of Shares $0.01 Par Value Additional Paid-in Capital Retained Earnings Number of Shares Cost Other Comprehensive Income (Loss) Total Equity Balance at March 31, 2020 23,389 $ 234 $ 220,308 $ 117,477 4,631 $ (171,889 ) $ (7,958 ) $ 158,172 Issuance of common stock under stock plans, net 12 — 6 — — — — 6 Stock-based compensation expense — — 2,464 — — — — 2,464 Net income — — — 11,837 — — — 11,837 Other comprehensive income — — — — — — 930 930 Balance at June 30, 2020 23,401 $ 234 $ 222,778 $ 129,314 4,631 $ (171,889 ) $ (7,028 ) $ 173,409 Three Months Ended June 30, 2019 Common Stock Treasury Stock Accumulated Number of Shares $0.01 Par Value Additional Paid-in Capital Retained Earnings Number of Shares Cost Other Comprehensive Income (Loss) Total Equity Balance at March 31, 2019 23,050 $ 231 $ 206,655 $ 114,401 4,631 $ (171,889 ) $ (5,584 ) $ 143,814 Issuance of common stock under stock plans, net 39 — 875 — — — — 875 Stock-based compensation expense — — 2,848 — — — — 2,848 Net income — — — 1,555 — — — 1,555 Other comprehensive income — — — — — — 594 594 Balance at June 30, 2019 23,089 $ 231 $ 210,378 $ 115,956 4,631 $ (171,889 ) $ (4,990 ) $ 149,686 Six Months Ended June 30, 2020 Common Stock Treasury Stock Accumulated Number of Shares $0.01 Par Value Additional Paid-in Capital Retained Earnings Number of Shares Cost Other Comprehensive Income (Loss) Total Equity Balance at December 31, 2019 23,275 $ 233 $ 216,454 $ 118,147 4,631 $ (171,889 ) $ (4,857 ) $ 158,088 Issuance of common stock under stock plans, net 126 1 1,058 — — — — 1,059 Stock-based compensation expense — — 5,266 — — — — 5,266 Cumulative effect adjustment due to adoption of new accounting pronouncement, net of tax of $61 — — — (157 ) — — — (157 ) Net income — — — 11,324 — — — 11,324 Other comprehensive loss — — — — — — (2,171 ) (2,171 ) Balance at June 30, 2020 23,401 $ 234 $ 222,778 $ 129,314 4,631 $ (171,889 ) $ (7,028 ) $ 173,409 Six Months Ended June 30, 2019 Common Stock Treasury Stock Accumulated Number of Shares $0.01 Par Value Additional Paid-in Capital Retained Earnings Number of Shares Cost Other Comprehensive Income (Loss) Total Equity Balance at December 31, 2018 22,951 $ 230 $ 200,696 $ 127,717 4,631 $ (171,889 ) $ (5,154 ) $ 151,600 Issuance of common stock under stock plans, net 138 1 4,149 — — — — 4,150 Stock-based compensation expense — — 5,533 — — — — 5,533 Net loss — — — (11,761 ) — — — (11,761 ) Other comprehensive income — — — — — — 164 164 Balance at June 30, 2019 23,089 $ 231 $ 210,378 $ 115,956 4,631 $ (171,889 ) $ (4,990 ) $ 149,686 |
Schedule of Restricted Stock Unit Activity | Restricted stock unit activity for the six months ended June 30, 2020 is presented below (in thousands, except per share data): Weighted- Average Number of Grant Date Shares Fair Value Unvested at December 31, 2019 656 $ 42.94 Granted 62 31.06 Vested (83 ) 44.04 Forfeited (76 ) 43.77 Unvested at June 30, 2020 559 $ 41.35 |
Schedule of Stock Option Activity | Stock option activity for the six months ended June 30, 2020 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, 2019 436 $ 35.62 Granted — — Exercised (28 ) 32.96 Forfeited (38 ) 38.25 Outstanding at June 30, 2020 370 $ 35.56 3.40 $ 15 Exercisable at June 30, 2020 367 $ 35.52 3.38 $ 15 Vested and expected to vest at June 30, 2020 370 $ 35.56 3.40 $ 15 |
Summary of Stock-Based Compensation Recorded in Expense Categories in Consolidated Statements of Operations | Forrester recognizes the fair value of stock-based compensation over the requisite service period of the individual grantee, which generally equals the vesting period . Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 Cost of services and fulfillment $ 1,232 $ 1,567 $ 2,825 $ 3,030 Selling and marketing 423 485 785 925 General and administrative 809 796 1,656 1,578 Total $ 2,464 $ 2,848 $ 5,266 $ 5,533 |
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 Six Months Ended June 30, June 30, 2020 2019 2020 2019 Average risk-free interest rate 0.30 % 2.51 % 0.30 % 2.51 % Expected dividend yield 0.0 % 0.0 % 0.0 % 0.0 % Expected life 0.5 Years 0.5 Years 0.5 Years 0.5 Years Expected volatility 26 % 34 % 26 % 34 % Weighted average fair value $ 8.10 $ 12.50 $ 8.10 $ 12.50 |
Operating Segments (Tables)
Operating Segments (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Information about Reportable Segments, Disaggregation of Revenue by Product | The Company provides disaggregated revenue by product in the segment tables below (in thousands): Research Consulting Events Consolidated Three Months Ended June 30, 2020 Research revenues Research $ 55,358 $ — $ — $ 55,358 Connect 13,078 — — 13,078 Analytics 5,185 — — 5,185 Total research revenues 73,621 — — 73,621 Consulting 13,351 21,537 — 34,888 Events — — 5,032 5,032 Total segment revenues 86,972 21,537 5,032 113,541 Segment expenses (25,870 ) (10,099 ) (3,206 ) (39,175 ) Selling, marketing, administrative and other expenses (57,810 ) Amortization of intangible assets (4,713 ) Acquisition and integration costs (612 ) Interest expense, other expense and gains on investments 844 Income before income taxes $ 12,075 Research Consulting Events Consolidated Three Months Ended June 30, 2019 Research revenues Research $ 56,305 $ — $ — $ 56,305 Connect 14,067 — — 14,067 Analytics 5,907 — — 5,907 Total research revenues 76,279 — — 76,279 Consulting 15,024 18,993 — 34,017 Events — — 17,887 17,887 Total segment revenues 91,303 18,993 17,887 128,183 Segment expenses (31,209 ) (9,474 ) (10,693 ) (51,376 ) Selling, marketing, administrative and other expenses (64,599 ) Amortization of intangible assets (5,099 ) Acquisition and integration costs (2,487 ) Interest expense, other expense and losses on investments (2,179 ) Income before income taxes $ 2,443 Research Consulting Events Consolidated Six Months Ended June 30, 2020 Research revenues Research $ 108,964 $ — $ — $ 108,964 Connect 26,967 — — 26,967 Analytics 10,486 — — 10,486 Total research revenues 146,417 — — 146,417 Consulting 27,377 40,970 — 68,347 Events — — 5,122 5,122 Total segment revenues 173,794 40,970 5,122 219,886 Segment expenses (53,334 ) (20,120 ) (3,883 ) (77,337 ) Selling, marketing, administrative and other expenses (117,685 ) Amortization of intangible assets (9,425 ) Acquisition and integration costs (3,487 ) Interest expense, other income and gains on investments (371 ) Income before income taxes $ 11,581 Research Consulting Events Consolidated Six Months Ended June 30, 2019 Research revenues Research $ 106,085 $ — $ — $ 106,085 Connect 27,638 — — 27,638 Analytics 11,165 — — 11,165 Total research revenues 144,888 — — 144,888 Consulting 29,411 36,392 — 65,803 Events — — 18,141 18,141 Total segment revenues 174,299 36,392 18,141 228,832 Segment expenses (61,148 ) (18,908 ) (11,665 ) (91,721 ) Selling, marketing, administrative and other expenses (126,610 ) Amortization of intangible assets (11,309 ) Acquisition and integration costs (5,454 ) Interest expense, other expense and losses on investments (4,837 ) Loss before income taxes $ (11,099 ) |
Interim Consolidated Financia_4
Interim Consolidated Financial Statements - Summary of End-of-period Cash and Cash Equivalents and Cash, Cash Equivalents and Restricted Cash from Financial Statements (Detail) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 |
Cash And Cash Equivalents [Abstract] | |||
Cash and cash equivalents | $ 68,377 | $ 67,904 | $ 69,762 |
Restricted cash, current | $ 787 | 203 | |
Restricted Cash, Current, Asset, Statement of Financial Position [Extensible List] | us-gaap:PrepaidExpenseAndOtherAssetsCurrent | ||
Restricted cash, non-current | $ 37 | 1,147 | |
Restricted Cash, Noncurrent, Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherAssetsNoncurrent | ||
Cash, cash equivalents and restricted cash shown in statement of cash flows | $ 69,201 | $ 71,112 |
Interim Consolidated Financia_5
Interim Consolidated Financial Statements - Additional Information (Detail) - USD ($) $ in Thousands | Jan. 01, 2020 | Jun. 30, 2020 |
Summary Of Significant Accounting Policy [Line Items] | ||
Decrease in retained earnings | $ (157) | |
Topic 326 [Member] | ||
Summary Of Significant Accounting Policy [Line Items] | ||
Decrease in retained earnings | $ (200) |
Interim Consolidated Financia_6
Interim Consolidated Financial Statements - Summary of Allowance for Expected Credit Losses on Accounts Receivable (Detail) $ in Thousands | 6 Months Ended |
Jun. 30, 2020USD ($) | |
Receivables [Abstract] | |
Balance at December 31, 2019 | $ 628 |
Cumulative effect adjustment of adopting Topic 326 | 218 |
Provision for expected credit losses | 550 |
Net write-offs | (456) |
Translation adjustments | (9) |
Balance at June 30, 2020 | $ 931 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - SiriusDecisions, Inc [Member] $ in Millions | Jan. 03, 2019USD ($)Employee | Jun. 30, 2019USD ($) |
Business Acquisition [Line Items] | ||
Percentage of issued and outstanding shares acquired | 100.00% | |
Number of employees | Employee | 350 | |
Purchase price paid | $ 246.8 | |
Acquisition costs recognized | $ 1.7 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Summary of Changes in Carrying Amount of Goodwill (Detail) $ in Thousands | 6 Months Ended |
Jun. 30, 2020USD ($) | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill, Beginning Balance | $ 243,895 |
Translation adjustments | (694) |
Goodwill, Ending Balance | $ 243,201 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Additional Information (Detail) | Jun. 30, 2020USD ($) |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Accumulated goodwill impairment losses | $ 0 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Summary of Carrying Values of Finite-Lived Intangible Assets (Detail) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 151,866 | $ 151,937 |
Accumulated Amortization | 63,872 | 54,574 |
Total | 87,994 | 97,363 |
Customer Relationships [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 109,688 | 109,825 |
Accumulated Amortization | 44,303 | 40,169 |
Total | 65,385 | 69,656 |
Technology [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 16,719 | 16,661 |
Accumulated Amortization | 8,550 | 7,051 |
Total | 8,169 | 9,610 |
Backlog [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 13,000 | 13,000 |
Accumulated Amortization | 9,750 | 6,500 |
Total | 3,250 | 6,500 |
Trademarks [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 12,459 | 12,451 |
Accumulated Amortization | 1,269 | 854 |
Total | $ 11,190 | $ 11,597 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets - Summary of Estimated Intangible Assets Amortization Expense (Detail) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Finite Lived Intangible Assets Future Amortization Expense [Abstract] | ||
2020 (remainder) | $ 9,427 | |
2021 | 12,355 | |
2022 | 11,016 | |
2023 | 10,840 | |
2024 | 9,730 | |
Thereafter | 34,626 | |
Total | $ 87,994 | $ 97,363 |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) | Jan. 03, 2019 | Jun. 30, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | |||
Credit facility, maximum borrowing capacity amount | $ 200,000,000 | ||
Aggregate principal amount | $ 114,063,000 | $ 132,750,000 | |
Percentage of voting equity of subsidiaries | 65.00% | ||
Maximum [Member] | LIBOR [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate | 2.50% | ||
Maximum [Member] | Base Rate [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate | 1.50% | ||
Minimum [Member] | LIBOR [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate | 1.75% | ||
Minimum [Member] | Base Rate [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate | 0.75% | ||
Term Loans [Member] | |||
Debt Instrument [Line Items] | |||
Aggregate principal amount | $ 125,000,000 | $ 114,063,000 | 118,750,000 |
Senior secured term loans | $ 125,000,000 | ||
Debt instrument maturity date | Jan. 3, 2024 | ||
Interest rate | 2.00% | ||
Debt cost incurred related to term loans | $ 2,800,000 | ||
Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Aggregate principal amount | $ 14,000,000 | ||
Line of credit facility, maximum borrowing capacity | 75,000,000 | ||
Line of credit facility current borrowing capacity | $ 50,000,000 | ||
Credit facility maturity date | Jan. 3, 2024 | ||
Revolving Credit Facility [Member] | Letters of Credit [Member] | |||
Debt Instrument [Line Items] | |||
Available for issuance of letter of credit | $ 5,000,000 | ||
Debt cost incurred related to revolving credit facility | $ 1,800,000 | ||
Debt instrument, amortized over the term | 5 years | ||
Issuance of letter of credit | $ 900,000 | ||
Revolving Credit Facility [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Increase (decrease) in line of credit facility | $ 50,000,000 | ||
Percentage of commitment fee on the unused portion of the facility | 0.35% | ||
Revolving Credit Facility [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Percentage of commitment fee on the unused portion of the facility | 0.25% |
Debt - Schedule of Maturities o
Debt - Schedule of Maturities of Long-term Debt (Detail) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | Jan. 03, 2019 |
Debt Instrument [Line Items] | |||
Total remaining principal payments | $ 114,063 | $ 132,750 | |
Term Loans [Member] | |||
Debt Instrument [Line Items] | |||
2020 (remainder) | 4,688 | ||
2021 | 12,500 | ||
2022 | 12,500 | ||
2023 | 15,625 | ||
2024 | 68,750 | ||
Total remaining principal payments | $ 114,063 | $ 118,750 | $ 125,000 |
Debt - Summary of Company's Tot
Debt - Summary of Company's Total Outstanding Borrowings (Detail) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | Jan. 03, 2019 |
Debt Instrument [Line Items] | |||
Principal amount outstanding | $ 114,063 | $ 132,750 | |
Less: Deferred financing fees | (1,890) | (2,205) | |
Net carrying amount | 112,173 | 130,545 | |
Term Loans [Member] | |||
Debt Instrument [Line Items] | |||
Principal amount outstanding | $ 114,063 | 118,750 | $ 125,000 |
Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Principal amount outstanding | $ 14,000 |
Debt - Summary of Company's T_2
Debt - Summary of Company's Total Outstanding Borrowings (Parenthetical) (Detail) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2020USD ($) | Jun. 30, 2020USD ($) | |
Debt Instrument [Line Items] | ||
Weighted average interest rate | 2.54% | 3.24% |
Term Loans [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate | 2.1875% | 2.1875% |
Debt instrument margin rate | 2.00% | |
Term Loans [Member] | LIBOR [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate | 0.1875% | 0.1875% |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Line of credit facility, available borrowing capacity | $ 75 | $ 75 |
Leases - Summary of Components
Leases - Summary of Components of Lease Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Leases [Abstract] | ||||
Operating lease cost | $ 3,944 | $ 3,727 | $ 7,935 | $ 7,296 |
Short-term lease cost | 81 | 85 | 163 | 340 |
Variable lease cost | 1,660 | 1,335 | 3,016 | 2,569 |
Sublease income | (63) | (124) | ||
Total lease cost | $ 5,622 | $ 5,147 | $ 10,990 | $ 10,205 |
Leases - Summary of Additional
Leases - Summary of Additional Lease Information (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Leases [Abstract] | ||
Cash paid for amounts included in the measurement of operating lease liabilities | $ 6,204 | $ 6,216 |
Operating right-of-use assets obtained in exchange for lease obligations | $ 3,898 | $ 16,626 |
Weighted-average remaining lease term - operating leases (years) | 6 years 1 month 6 days | 6 years 8 months 12 days |
Weighted-average discount rate - operating leases | 5.00% | 5.10% |
Leases - Summary of Future Mini
Leases - Summary of Future Minimum Lease Payments Under Non-Cancellable Leases (Detail) $ in Thousands | Jun. 30, 2020USD ($) |
Leases [Abstract] | |
2020 (remainder) | $ 7,654 |
2021 | 14,202 |
2022 | 14,106 |
2023 | 13,587 |
2024 | 13,215 |
Thereafter | 24,698 |
Total lease payments | 87,462 |
Less imputed interest | (12,243) |
Present value of lease liabilities | $ 75,219 |
Leases - Summary of Lease Balan
Leases - Summary of Lease Balances (Detail) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Operating lease right-of-use assets | $ 63,837 | $ 69,100 |
Short-term operating lease liabilities | $ 11,729 | |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:AccruedLiabilitiesCurrent | |
Non-current operating lease liabilities | $ 63,490 | $ 67,062 |
Total operating lease liabilities | $ 75,219 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) | 3 Months Ended | ||
Mar. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Lessee Lease Description [Line Items] | |||
Lessee, operating lease, lease not yet commenced, undiscounted lease payments | $ 13,900,000 | ||
Lessee, operating lease, lease not yet commenced, term of contract | 10 years | ||
Office Space [Member] | Scenario, Forecast [Member] | Minimum [Member] | |||
Lessee Lease Description [Line Items] | |||
Lease incentive receivable | $ 0 | ||
Office Space [Member] | Scenario, Forecast [Member] | Maximum [Member] | |||
Lessee Lease Description [Line Items] | |||
Lease incentive receivable | $ 3,500,000 | ||
Topic 842 [Member] | SiriusDecisions, Inc [Member] | Facility Lease [Member] | |||
Lessee Lease Description [Line Items] | |||
Operating lease right-of-use asset impairments | $ 1,400,000 |
Contract Assets and Liabiliti_2
Contract Assets and Liabilities - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Contract assets | $ 0 | $ 0 | $ 0 | $ 0 |
Contract with customer, contract duration | 1 year | |||
Deferred revenue recognized | 43,200,000 | 53,500,000 | $ 113,100,000 | 111,600,000 |
Revenue expected to be recognized | 309,800,000 | 309,800,000 | ||
Amortization expense related to deferred commissions | $ 9,000,000 | $ 8,900,000 | $ 17,200,000 | $ 16,000,000 |
Maximum [Member] | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Contract with customer, expected payment term | one year |
Contract Assets and Liabiliti_3
Contract Assets and Liabilities - Additional Information1 (Detail) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-07-01 | Jun. 30, 2020 |
Minimum [Member] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation, revenue expected to be recognized | 12 months |
Maximum [Member] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation, revenue expected to be recognized | 24 months |
Derivatives and Hedging - Addit
Derivatives and Hedging - Additional Information (Detail) - USD ($) | 6 Months Ended | ||
Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | |
Derivatives Fair Value [Line Items] | |||
Derivative maturity year | 2022 | ||
Derivative asset | $ 0 | ||
Derivative liabilities | $ 0 | ||
Interest Rate Swap [Member] | |||
Derivatives Fair Value [Line Items] | |||
Derivative notional amount | $ 84,900,000 | $ 95,000,000 | |
Derivative fixed interest rate | 1.65275% | ||
Negative fair value of derivative | $ (1,200,000) | ||
Other comprehensive loss, net of taxes, to be reclassified into earnings within the next 12 months | $ 800,000 | ||
Interest Rate Swap [Member] | Minimum [Member] | |||
Derivatives Fair Value [Line Items] | |||
Derivative receive rate | 0.00% | ||
Interest Rate Swap [Member] | Other Non Current Liabilities [Member] | |||
Derivatives Fair Value [Line Items] | |||
Fair value of liabilities | $ 1,700,000 | ||
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 | 3 Months Ended | 6 Months Ended |
Jun. 30, 2020 | Jun. 30, 2020 | |
Derivative Instruments Gain Loss [Line Items] | ||
Amount recorded in operations | $ (409) | $ (396) |
Interest Expense [Member] | ||
Derivative Instruments Gain Loss [Line Items] | ||
Amount recorded in operations | (252) | (239) |
Other Income (Expense), Net [Member] | ||
Derivative Instruments Gain Loss [Line Items] | ||
Amount recorded in operations | $ (157) | $ (157) |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Company's Fair Value Hierarchy for its Financial Assets and Liabilities (Detail) - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 |
Liabilities | |||
Fair value of liabilities | $ 0 | ||
Fair Value, Measurements, Recurring [Member] | |||
Assets | |||
Fair value of investments | $ 512,000 | $ 2,354,000 | |
Liabilities | |||
Fair value of liabilities | (4,328,000) | (2,655,000) | |
Fair Value, Measurements, Recurring [Member] | Contingent Purchase Price [Member] | |||
Liabilities | |||
Fair value of liabilities | (2,603,000) | (2,511,000) | |
Fair Value, Measurements, Recurring [Member] | Interest Rate Swap [Member] | |||
Liabilities | |||
Fair value of liabilities | (1,725,000) | (144,000) | |
Fair Value, Measurements, Recurring [Member] | Money Market Funds [Member] | |||
Assets | |||
Fair value of cash equivalents | 512,000 | 2,354,000 | |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | |||
Assets | |||
Fair value of investments | 512,000 | 2,354,000 | |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Money Market Funds [Member] | |||
Assets | |||
Fair value of cash equivalents | 512,000 | 2,354,000 | |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | |||
Liabilities | |||
Fair value of liabilities | (1,725,000) | (144,000) | |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Interest Rate Swap [Member] | |||
Liabilities | |||
Fair value of liabilities | (1,725,000) | (144,000) | |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | |||
Liabilities | |||
Fair value of liabilities | (2,603,000) | (2,511,000) | |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Contingent Purchase Price [Member] | |||
Liabilities | |||
Fair value of liabilities | $ (2,603,000) | $ (2,511,000) |
Fair Value Measurements - Sum_2
Fair Value Measurements - Summary of Company's Fair Value Hierarchy for its Financial Assets and Liabilities (Parenthetical) (Detail) - FeedbackNow [Member] - USD ($) | Jul. 06, 2018 | Jun. 30, 2020 | Dec. 31, 2019 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Maximum contingent consideration payable based on the financial performance of acquired company | $ 4,200,000 | $ 2,600,000 | |
Contingent consideration payable period | 2 years | ||
Accrued Expenses and Other Current Liabilities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Fair value of contingent consideration to be paid | $ 2,600,000 | $ 2,500,000 |
Fair Value Measurements - Sum_3
Fair Value Measurements - Summary of Changes in the Fair Value of Level 3 Contingent Consideration (Detail) - Level 3 [Member] - Contingent Consideration [Member] $ in Thousands | 6 Months Ended |
Jun. 30, 2020USD ($) | |
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |
Beginning balance | $ (2,511) |
Fair value adjustment of contingent purchase price | (22) |
Foreign exchange effect | (70) |
Ending balance | $ (2,603) |
Fair Value Measurements - Sum_4
Fair Value Measurements - Summary of Changes in the Fair Value of Level 3 Contingent Consideration (Parenthetical) (Detail) - FeedbackNow [Member] | Jun. 30, 2020USD ($) | Jul. 06, 2018USD ($) |
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Business acquisition undiscounted amounts payable, minimum | $ 2,000,000 | |
Business acquisition undiscounted amounts payable, maximum | $ 2,600,000 | $ 4,200,000 |
Level 3 [Member] | Discount Rate [Member] | Contingent Consideration [Member] | ||
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Fair value of contingent consideration discount rate | 0.173 | |
Level 3 [Member] | Revenue Volatility [Member] | Contingent Consideration [Member] | ||
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Fair value of contingent consideration discount rate | 0.266 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2020 | |
Income Taxes [Line Items] | |||||
Income tax (benefit) expense | $ 238 | $ 888 | $ 257 | $ 662 | |
Effective income tax rate | 2.20% | (6.00%) | |||
Scenario, Forecast [Member] | |||||
Income Taxes [Line Items] | |||||
Effective income tax rate | 1.00% |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Schedule of Components of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning Balance | $ 158,172 | $ 143,814 | $ 158,088 | $ 151,600 |
Other comprehensive income (loss) activity during the period: | ||||
Foreign currency translation | 885 | 594 | (1,035) | 164 |
Unrealized loss before reclassification | (136) | (1,308) | ||
Reclassification of realized losses to income | 181 | 172 | ||
Other comprehensive income (loss) for the period | 930 | 594 | (2,171) | 164 |
Ending Balance | 173,409 | 149,686 | 173,409 | 149,686 |
Interest Rate Swap [Member] | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning Balance | (1,285) | (104) | ||
Other comprehensive income (loss) activity during the period: | ||||
Unrealized loss before reclassification | (136) | (1,308) | ||
Reclassification of realized losses to income | 181 | 172 | ||
Other comprehensive income (loss) for the period | 45 | (1,136) | ||
Ending Balance | (1,240) | (1,240) | ||
Translation Adjustment [Member] | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning Balance | (6,673) | (5,584) | (4,753) | (5,154) |
Other comprehensive income (loss) activity during the period: | ||||
Foreign currency translation | 885 | 594 | (1,035) | 164 |
Other comprehensive income (loss) for the period | 885 | 594 | (1,035) | 164 |
Ending Balance | (5,788) | (4,990) | (5,788) | (4,990) |
Total Accumulated Other Comprehensive Loss [Member] | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning Balance | (7,958) | (5,584) | (4,857) | (5,154) |
Other comprehensive income (loss) activity during the period: | ||||
Other comprehensive income (loss) for the period | 930 | 594 | (2,171) | 164 |
Ending Balance | $ (7,028) | $ (4,990) | $ (7,028) | $ (4,990) |
Net Income (Loss) Per Common _3
Net Income (Loss) Per Common Share - Schedule of Basic and Diluted Weighted Average Common Shares (Detail) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Earnings Per Share [Abstract] | ||||
Basic weighted average common shares outstanding | 18,759 | 18,435 | 18,732 | 18,399 |
Weighted average common equivalent shares | 72 | 345 | 96 | |
Diluted weighted average common shares outstanding | 18,831 | 18,780 | 18,828 | 18,399 |
Options and restricted stock units excluded from diluted weighted average share calculation as effect would have been anti-dilutive | 733 | 1 | 441 | 1,084 |
Stockholders' Equity - Componen
Stockholders' Equity - Components of Stockholders' Equity (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Beginning Balance | $ 158,172 | $ 143,814 | $ 158,088 | $ 151,600 |
Issuance of common stock under stock plans, net | 6 | 875 | 1,059 | 4,150 |
Stock-based compensation expense | 2,464 | 2,848 | 5,266 | 5,533 |
Cumulative effect adjustment due to adoption of new accounting pronouncement, net of tax | (157) | |||
Net income (loss) | 11,837 | 1,555 | 11,324 | (11,761) |
Other comprehensive income (loss) | 930 | 594 | (2,171) | 164 |
Ending Balance | 173,409 | 149,686 | 173,409 | 149,686 |
Common Stock [Member] | ||||
Beginning Balance | $ 234 | $ 231 | $ 233 | $ 230 |
Beginning Balance, Shares | 23,389,000 | 23,050,000 | 23,275,000 | 22,951,000 |
Issuance of common stock under stock plans, net | $ 1 | $ 1 | ||
Issuance of common stock under stock plans, net, Shares | 12,000 | 39,000 | 126,000 | 138,000 |
Ending Balance | $ 234 | $ 231 | $ 234 | $ 231 |
Ending Balance, Shares | 23,401,000 | 23,089,000 | 23,401,000 | 23,089,000 |
Additional Paid-in Capital [Member] | ||||
Beginning Balance | $ 220,308 | $ 206,655 | $ 216,454 | $ 200,696 |
Issuance of common stock under stock plans, net | 6 | 875 | 1,058 | 4,149 |
Stock-based compensation expense | 2,464 | 2,848 | 5,266 | 5,533 |
Ending Balance | 222,778 | 210,378 | 222,778 | 210,378 |
Retained Earnings [Member] | ||||
Beginning Balance | 117,477 | 114,401 | 118,147 | 127,717 |
Cumulative effect adjustment due to adoption of new accounting pronouncement, net of tax | (157) | |||
Net income (loss) | 11,837 | 1,555 | 11,324 | (11,761) |
Ending Balance | 129,314 | 115,956 | 129,314 | 115,956 |
Treasury Stock [Member] | ||||
Beginning Balance | $ (171,889) | $ (171,889) | $ (171,889) | $ (171,889) |
Beginning Balance, Shares | 4,631,000 | 4,631,000 | 4,631,000 | 4,631,000 |
Ending Balance | $ (171,889) | $ (171,889) | $ (171,889) | $ (171,889) |
Ending Balance, Shares | 4,631,000 | 4,631,000 | 4,631,000 | 4,631,000 |
Accumulated Other Comprehensive Income (Loss) [Member] | ||||
Beginning Balance | $ (7,958) | $ (5,584) | $ (4,857) | $ (5,154) |
Other comprehensive income (loss) | 930 | 594 | (2,171) | 164 |
Ending Balance | $ (7,028) | $ (4,990) | $ (7,028) | $ (4,990) |
Stockholders' Equity - Compon_2
Stockholders' Equity - Components of Stockholders' Equity (Parenthetical) (Detail) $ in Thousands | 6 Months Ended |
Jun. 30, 2020USD ($) | |
Statement Of Stockholders Equity [Abstract] | |
Cumulative effect adjustment due to adoption of new accounting pronouncement tax | $ 61 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Restricted Stock Unit Activity (Detail) - Restricted Stock Units (RSUs) [Member] shares in Thousands | 6 Months Ended |
Jun. 30, 2020$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Shares, Unvested at December 31, 2019 | shares | 656 |
Number of Shares, Granted | shares | 62 |
Number of Shares, Vested | shares | (83) |
Number of Shares, Forfeited | shares | (76) |
Number of Shares, Unvested at June 30, 2020 | shares | 559 |
Weighted-Average Grant Date Fair Value, Unvested, Beginning Balance | $ / shares | $ 42.94 |
Weighted-Average Grant Date Fair Value, Granted | $ / shares | 31.06 |
Weighted-Average Grant Date Fair Value, Vested | $ / shares | 44.04 |
Weighted-Average Grant Date Fair Value, Forfeited | $ / shares | 43.77 |
Weighted-Average Grant Date Fair Value, Unvested, Ending Balance | $ / shares | $ 41.35 |
Stockholders' Equity - Schedu_2
Stockholders' Equity - Schedule of Stock Option Activity (Detail) $ / shares in Units, shares in Thousands, $ in Thousands | 6 Months Ended |
Jun. 30, 2020USD ($)$ / sharesshares | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Number of Shares, Outstanding at December 31, 2019 | shares | 436 |
Number of Shares, Exercised | shares | (28) |
Number of Shares, Forfeited | shares | (38) |
Number of Shares, Outstanding at June 30, 2020 | shares | 370 |
Number of Shares, Exercisable at June 30, 2020 | shares | 367 |
Number of Shares, Vested and expected to vest at June 30, 2020 | shares | 370 |
Weighted - Average Exercise Price Per Share, Outstanding, Beginning balance | $ / shares | $ 35.62 |
Weighted - Average Exercise Price Per Share, Exercised | $ / shares | 32.96 |
Weighted - Average Exercise Price Per Share, Forfeited | $ / shares | 38.25 |
Weighted - Average Exercise Price Per Share, Outstanding, Ending balance | $ / shares | 35.56 |
Weighted - Average Exercise Price Per Share, Exercisable at June 30, 2020 | $ / shares | 35.52 |
Weighted - Average Exercise Price Per Share, Vested and expected to vest at June 30, 2020 | $ / shares | $ 35.56 |
Weighted - Average Remaining Contractual Term, Outstanding at June 30, 2020 | 3 years 4 months 24 days |
Weighted - Average Remaining Contractual Term, Exercisable at June 30, 2020 | 3 years 4 months 17 days |
Weighted - Average Remaining Contractual Term, Vested and expected to vest at June 30, 2020 | 3 years 4 months 24 days |
Aggregate Intrinsic Value, Outstanding at June 30, 2020 | $ | $ 15 |
Aggregate Intrinsic Value, Exercisable at June 30, 2020 | $ | 15 |
Aggregate Intrinsic Value, Vested and expected to vest at June 30, 2020 | $ | $ 15 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Stock-Based Compensation Recorded in Expense Categories in Consolidated Statements of Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total allocated share-based compensation expense | $ 2,464 | $ 2,848 | $ 5,266 | $ 5,533 |
Cost of Services and Fulfillment [Member] | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total allocated share-based compensation expense | 1,232 | 1,567 | 2,825 | 3,030 |
Selling and Marketing [Member] | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total allocated share-based compensation expense | 423 | 485 | 785 | 925 |
General and Administrative [Member] | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total allocated share-based compensation expense | $ 809 | $ 796 | $ 1,656 | $ 1,578 |
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 | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Average risk-free interest rate | 0.30% | 2.51% | 0.30% | 2.51% |
Expected dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Expected life | 6 months | 6 months | 6 months | 6 months |
Expected volatility | 26.00% | 34.00% | 26.00% | 34.00% |
Weighted average fair value | $ 8.10 | $ 12.50 | $ 8.10 | $ 12.50 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Dividend declared and paid per share | ||
Authorized to purchase of common stock under the stock repurchase program | $ 535,000,000 | |
Repurchase of common stock | 0 | 0 |
Cumulative repurchase of common stock | 16,300,000 | |
Aggregate cost of repurchase of common stock | $ 474,900,000 |
Non-Marketable Investments - Ad
Non-Marketable Investments - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items] | |||||
Carrying value of the Company's non-marketable investments | $ 4,900,000 | $ 4,900,000 | $ 2,500,000 | ||
Gains from non-marketable investments | 2,400,000 | 2,400,000 | |||
Distributions received from funds | 0 | $ 0 | $ 0 | $ 0 | |
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% | ||||
Prepaid Expenses and Other Current Assets [Member] | |||||
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items] | |||||
Carrying value of the Company's non-marketable investments | 4,300,000 | $ 4,300,000 | |||
Other Assets [Member] | |||||
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items] | |||||
Carrying value of the Company's non-marketable investments | $ 600,000 | $ 600,000 | $ 2,500,000 |
Operating Segments - Additional
Operating Segments - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2020Segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 3 |
Operating Segments - Schedule o
Operating Segments - Schedule of Information about Reportable Segments, Disaggregation of Revenue by Product (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Segment Reporting Information [Line Items] | ||||
Total revenues | $ 113,541 | $ 128,183 | $ 219,886 | $ 228,832 |
Segment expenses | (39,175) | (51,376) | (77,337) | (91,721) |
Selling, marketing, administrative and other expenses | (57,810) | (64,599) | (117,685) | (126,610) |
Amortization of intangible assets | (4,713) | (5,099) | (9,425) | (11,309) |
Acquisition and integration costs | (612) | (2,487) | (3,487) | (5,454) |
Interest expense, other income (expense) and gains (losses) on investments | 844 | (2,179) | (371) | (4,837) |
Income (loss) before income taxes | 12,075 | 2,443 | 11,581 | (11,099) |
Research Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 86,972 | 91,303 | 173,794 | 174,299 |
Segment expenses | (25,870) | (31,209) | (53,334) | (61,148) |
Consulting Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 21,537 | 18,993 | 40,970 | 36,392 |
Segment expenses | (10,099) | (9,474) | (20,120) | (18,908) |
Events Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 5,032 | 17,887 | 5,122 | 18,141 |
Segment expenses | (3,206) | (10,693) | (3,883) | (11,665) |
Research [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 55,358 | 56,305 | 108,964 | 106,085 |
Research [Member] | Research Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 55,358 | 56,305 | 108,964 | 106,085 |
Connect [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 13,078 | 14,067 | 26,967 | 27,638 |
Connect [Member] | Research Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 13,078 | 14,067 | 26,967 | 27,638 |
Analytics [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 5,185 | 5,907 | 10,486 | 11,165 |
Analytics [Member] | Research Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 5,185 | 5,907 | 10,486 | 11,165 |
Total Research Revenues [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 73,621 | 76,279 | 146,417 | 144,888 |
Total Research Revenues [Member] | Research Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 73,621 | 76,279 | 146,417 | 144,888 |
Consulting [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 34,888 | 34,017 | 68,347 | 65,803 |
Consulting [Member] | Research Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 13,351 | 15,024 | 27,377 | 29,411 |
Consulting [Member] | Consulting Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 21,537 | 18,993 | 40,970 | 36,392 |
Events [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 5,032 | 17,887 | 5,122 | 18,141 |
Events [Member] | Events Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | $ 5,032 | $ 17,887 | $ 5,122 | $ 18,141 |