FORR - Earnings call transcript Q4 2017 | Forrester Research, Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good afternoon. Thank you for joining today's call. With me today are George Colony, Forrester's Chairman of the Board and CEO; and Mike Doyle, Forrester's Chief Financial Officer. George will open the call. And Mike Doyle will discuss the financials. call the open then to Q&A. We'll of X, XXXX, replay or X-XXX-XXX-XXXX. this by call March until internationally, available be and X-XXX-XXX-XXXX will dialing A can accessed be XXXXXXX#. Please the passcode reference

you intended we and intends, operations plans and or this identify future those within on Before materially forward-looking statements. plans, meaning the the Private XXXX. estimates Act and the these to similar Litigation that involve of like expects, Words I'd to such the different call statements. contain as in These based uncertainties current forward-looking risks forward-looking are activities begin, will statements Company's and statements Reform to of from expectations could are Securities cause forth expressions results set of remind believes, anticipates, be

important undertakes cause Securities call update with obligation filings or to Some actual over reports in future hand information, Company Colony. that the publicly to otherwise. discussed result forward-looking of whether could I'll events The the results no our now Commission. the as are differ a statements, of and new any George to and Exchange factors

George Colony

sales at Officer and fourth that with selling full first Kong year was kickoff will strategy transition guidance joins new year Asian typically the who Sales Customer we Good give fourth to and having quarter. and financial call, XXXX of overview Customer I Year is Model Call. our Hippler, XXXX the for our this call presently us. We thank metrics will financial focused the Forrester on fourth will that of we and what our targets the review in our joining XXXX. believe Chief Doyle, sales you Conference The Age as and QX key structure positive the beat not Hong improvement our afternoon Forrester's quarter quarter CEM. of guidance our or results. so year the Mike Forrester's the showed in model, Full are Engagement the a and the on the year. of was strategy CFO, an it is in Kelley business impact and particular the in be for give its quarter and she new

Additionally, financial for better-than-expected results revenue XXXX, the turning share. full-year Company earnings exceeded its guidance per in in and

level. is Now remember, by consumers empowered economy with as BXB edge, that customers. deliver must connect emotional and and worldwide demanding that In being you’ll the compelling create BXC believes Forrester companies experiences this value an on transformed

build drive business obsessed technology to Forrester that works with growth. strategies customer leaders and

companies a We three, understand higher said were the out in And marketing simply feel of business years many we These customers; as superior achieving to When their good and I've are Barclays USAA do we compared win are But and their revolutionize build approaches revenue in customers; customer in specialized leveraging calls recognized not now, many is corporations had sea the this companies are that Amazon, firms. stand to large help journey yet serves and economy. new change retains one ago, customers. that three previous began the this technology in to four things, companies two, growth markets. to like their Bank, dynamic. competitors. fact, significantly not ahead And

drop to predicted is The companies we these the in grow. that Forrester, Customer spending XX% their us in antidote opportunities we the ratings on of see in So easy. while are and and for XXXX, in on technology Experience to for means XXXX, of back XX% flat. business experiences results. will see happening, world not saw leadership firms the to increase their large spending XX% new that on digital where market for companies, to compelling increasing Index maintaining spending remained expanding that is and for a is technologies, is office place opening since This simple deliver we systems our BT have And focus X,XXX coming chosen firms this decline in with that customers. XXXX, the

in driven a CIO of all and to Bank core TD teams clients in accounts with XX model As a that North by will Clients driven dollar and impact SPs. enrichment offices. interruption the client In customers experienced we Company. we Canada at CSM in of the in saw clients to in enrichment. acceleration improvements. a terms And The core premier of the who the saw were second of by staffed hours and be In a in in in in system our to and now in XXXX, me, A the XXXX, executives, retention, permanent months, retention the selling metrics measure number that success the By is and X% we he worldwide. America, the in In upticks model model. is like affected and loss. the customer with premier fully and new of we in We quarter model and with staffed activity with now stated our that customers X.X% of premier reason new have look been managers customer-obsessed increase now now partners. customer team significant for of severity end X.X% client the these all in transitioned contributed most satisfaction. model, recently renewal new the customer are Nashville we solution of fully impacted XXX% rates, raw instead outages fourth of data thinking said, and was increase increase

to In about user year-over-year. X.X% our of enrichment in that bookings business on dollar talked I QX, previous increased happy X% efforts increased that calls and X.X%. have am In report was and are users to results research I XXXX, grow rates seeing retention we our client Now, retention up X%, increased user front.

to model; and pay one, to commitment to the two, our off: beginning our expanding focused a on are the selling of Age bets long-term three user business. new the three, So transition Customer;

on is feel we that there done obviously, we much fronts, track. work three but to all are the Now there's right still be on

going Now review the an to give effects the on change. to tax but we're Forrester, manage Mike overview wanted this I of going on to how new law is

federal all corporate will know, XXXX. you As drop for Forrester's rate

on money the development shareholders remaining form the existing new products in digital and returned transformation In share. previous spending the earnings increased the approximately The addition, back of we of than business, to a will be to our invest the will repatriate We able of to be at held lower products. under plan cut XX% U.S. of tax into the the XX% per outside cash of cost law.

in overseas, used held of business that for we funds activities money the and to currently outside For retain operations. planning to international are invest to U.S. M&A our expansion be of

current repatriation. We could to here those trigger based no have funds bring back plans activities a the M&A into although U.S.

priority three, talked calls, structure The M&A the shareholders our cash as priorities. I've those value returning previous through about of on business; As are two, changed dividends to activity; into one, for of has tax new follows: and use repurchase. to not and back the invest share

new and This our to delivery the of to while brands. called two Now give referenced the of areas two, digital XXXX. consumers app quick topic app real-time summary the of and measurement; feedback for brief One, and call, last of on divestments, in locations to give ideas I I research. wanted a the consumer experience focus customer enables experimental that In improvement Tap. Forrester's built I'm

companies a app the customers I this London. minute-to-minute continually do and future investors update We enhancing basis This by facility by enhancing you their and be in get problems multi-input we smaller demanding going experiences to on the two products through testing also and Francisco effort. real-time www.downloadtap.com. will have and fixing exploring to companies platform, Boston improve been a launch the San believe how primarily which just in the element real We in the companies that. And first can space can this customer QX, is And on experience into way, tests we to app of with time. Tap and experience will by calls require market customer are can on help that track the

clients. updating tools, to shifting. tracking our is our reports are the will and graphics of behavior our our new also users and changing They measurement our consuming that invest in see analytics We products ways. in in Through we to connect data

have that audio more click experimentation found brief. the and analysis Android a XX-second we written examples, iPhone four through have on one than page Forrester through As times apps rates

to Head content of shortly downloads XX,XXX Technology XXXX, XXXX, In which will forms. will the go XXX,XXX number our of of we was and additional launched podcast, a be spearheading tests quickly Steven has Forrester's mark. Peltzman grown new midyear over

other written report, the Forms over that three could data potentially the deliverables next years. and sheets replace

behavior valuable and accessible their more products in our make time and our to changing. a habits when is goal Our to clients are

our in through a Forrester success app notification doubling click-through quick on company XXXX. seeing A culture. already comment Research and with are monthly We sessions

second Forrester company. important at view the of accepting health prospective a Glassdoor internal year one, and This the Glassdoor two For list before applying two, XXX% in is of of job for the on companies. an was of its the top indication a the row, reasons; and culture; employees

to research were So our intimate XXXX the experience of well addition President the been publicly-traded and the organizations and QX several Forrester our BXC well and is of time. knowledge future. a our structured in our been CEO business Forrester faster carry the experience three Jean user increasing present, UK new is brings as had or newest highly CEO are innovative of our the former Neil, and companies in Bradford board left research is and board the meeting other ability Neil the brings board Neil an to deep Birch. growth ranking the brightest. who board members, that members transforming. companies hire since After three the into operations. We the U.S., as Neil two in has how to Jean of company has company and best yesterday board the of high digitally Jean valuable the

I'm hard fourth Doyle, in right quarter. pleased appears over who last is now beginning work and over now to us in to the years about rates, lot over faster performance will hard our financial in provide We've call So our very in it work update. that with three put XXXX the Mike turn off. position and the pay Mike? grow to to like of a conclusion, a the I'd performance to that done especially at And the company

Mike Doyle

intangibles, financial now begin XXXX. Forrester's I'll Please at fourth performance my reorganization look statement the reporting and sheet and note first a following balance metrics forma that rate year utilize the and stock-based XXXX, financial for and at for continue expense, of December net I'm XX% George. of of gains income costs our Also exclude investments. the for for quarter numbers we results, of Thanks, XX, fourth tax pro forma outlook amortization from the pro quarter items: effective quarter compensation the review losses to the full purposes. an including our and XXXX, are

the that particularly For onetime quarter non-syndicated the for share and our end investments the growth XXXX. fourth We products quarter, pro forma in solid throughout from delivered our exceeded revenue fourth growth plan offerings was Forrester and We our per products, XXXX. to XXXX, data some part in did which the initiate acceleration earnings we experienced double-digit and of infrastructure of revenue top continue first of by that driven revenue quarter in in guidance. of

achieved impact. want Despite we In a EPS I addition, we currency XXXX comment additional these unplanned our GAAP absorbed QX adverse make margin regarding do expenses, some performance. and to our expenses guidance.

For at which for a will rate have effect adverse XXXX to Jobs Tax companies, tax and of XXXX on rate impact positive revaluing deemed tax lower beyond, repatriation U.S. savings. and will toll of a of assets deferred the our the tax as Cuts an the charge million of many Forrester, result meaningful $X.X for GAAP earnings in like Act a QX and earnings. impact our new our There was result

for you on performance a CEM sales moment, update sales initiative. me to our let Turning

teams sales and happy the are XXXX model five in sales the six teams year-over-year the way with new finished, growth We healthy, improvements. best The of the year-over-year showing selling fourth longest quarter. demonstrated the with the

is forward, our sales based that rep reinforced progress made required headcount to Kelley net going metrics territory sales Kelley's ensuring been will with greater sales key achieve a objectives. our belief being enable addition, our the territories. the In each enrichment track right area, significant That of initiative. result has low are One on with improvement the target-rich and verticals. single-digit which on in sales productivity year-over-year in this XXXX retention the has has our rightsizing is CEM growth we

clients see some that products. access services Moving a onto what them aspects deal our experience, important the and We good digital want multiple of better Real-time our and consume they customer our and ways a products. platform to in to they about mentioned. products from more learned are

our During these in rolled improved help digital believe investments XXXX, strategies upgraded platforms which and digital our data XXXX. in mobile out growth. and our customer-obsessed investments business, products our continue apps drive and we that our made data additional enhance We clients infrastructure, build for will

let me more turn to detailed Now fourth our results. of a review quarter

currency for million was demand by driven currency revenue the $XX.X and Fourth adjusted basis. content X% quarter. fourth was on revenue $XX.X business, increased in quarter revenue increase XXXX, revenue event fourth services research and strong businesses. X% in increased the our for constant of in Contributing Forrester's million in increased where the double-digit by represented revenue quarter from from million to in Fourth of QX a the and last $XX.X advisory million by revenue This quarter $XX.X quarter services the increased quarter $XX.X XX% accelerated resulted growth X% by of revenue client the XXXX $XX.X by fourth total XX% constant year. fourth to and consulting, advisory quarter. research to On quarter and reprints our to basis, backlog. of X% represented a of revenue million currency million XX% growth from our fulfillment in and XX% marketing total increased

was two behind starting quarter mix one Forrester activity the like with up basis. points currency to you point XXXX on Research. through I'd our fourth revenue in a XX% XX%, and international Our up constant the revenue, from take product of now

businesses and our frameworks and Research growth published library playbooks, leadership affecting programs. Forrester and quarter the better to market. disruptive and of for fourth Forrester's believe Onto addition We XX Research the research complex Forrester's Connect insights which hosted and capitalize XXX tools offerings, Forrester of to on their webinars and boards organizations. our In new documents XXXX, decision included encompass enable the dynamic in clients. anticipate XX a provides forces and drive executive we our clients

their designed to and and organizations. executives Forrester change connect clients products Connect with are services help to coach and professionals peers to Forrester's lead far-reaching within

to X% year a last December X,XXX XX, members, of Forrester total the XXXX. XXXX, had quarter third of As of to Connect up compared and flat

are services Our can on to choose our designed data and services fact-based provide data our custom insights conduct their customer to or have products clients. leverage Clients data analysis behalf. and us products to

the revenue revenues in near-term For rolled we we quarter, seeing new fourth data decreased products. disruption X%, are out by

to this XXXX. we as minimal into expect We move be

total includes was some quarter saw Forrester our our backlog first all Utilization in consulting Consulting, fourth XX%. increased also revenue which the of quarter and converted for service services, advisory across high we XXXX. segments the and revenue

with headcount the X% quarter million, XXXX by Research sales to per XXXX. XXXX end quarter and income shares income XX% as or for had was and XXXX. average the with compared staff quarter million million compared sequentially. decreased earnings fourth increased increased share net the to of fourth XXXX. Operating fourth force outstanding weighted XX.X% of or a the This currency, by reported in professional the year-over-year. event San and in fourth was XXXX was by Consulting and expenses of XX% In and and force in higher XX.X new headcount Our million and $XX of year. in with outstanding constant services. by costs quarter $XX,XXX by of by of $X.X in fourth a increases. Total constant Forum by merit of professional of now income the of $XXX,XXX reported and increased our $XX.X $X.X expense a the year-over-year. in merit fourth and is million currency higher $XX.X including the on compared Net XXX. quarter consulting per Security income to Selling marketing held General held London, Customer we of Overall and increased XX% XX% with higher on the compared Experience XX% Customer In our by and on and XX% the events increases and increased two of X% to total and by Francisco; Forum. increased our diluted million compared due five driven was X% the X% XXXX. the compared due the average had earnings Cost and Operating of the X% shares and services of by of merit to X% At increased of technology fourth and quarter of headcount X% $X.XX new weighted to $X.X staff on prior to of fourth million, increased events: our headcount, revenue increased compared income adjusted XX.X% basis for decrease revenue I sequentially. currency were services to XX.X we statement. as in forum for the increased and as three expenses income basis the new quarter on fourth Other XXX X% compared increased a by U.S. costs. we Forum quarter research Forum; quarter, fulfillment $X.XX share our and a quarter administrative diluted will third Forrester currency BXB and and increased X,XXX, revenue constant X% a highlight sales total and in XXXX. and million Boston, Marketing quarter of of quarter events the of Experience Austin; Europe, Privacy portions

the research more on been review value. to of place metrics already revenue results amount the contracts I'll of operating Agreement for recognized. advisory for provide represents regard without to the This Forrester's and services total value in the quarter quarter. fourth perspective all has that Now

As XXXX the and up agreement $XXX.X from of December X% X% a – agreement million, XX, value constant was of up XXXX, fourth quarter basis. on was currency

X% for unlike and X% last XX, and Client point-in-time year is a X,XXX, the retention last companies December metrics, each XXXX, down quarter. our of of to to up quarter. enrichment count, was our As end compared total client at metric compared

companies client compared XX, and for Forrester's last retention last year. to up of to December XX% as flat quarter rate was compared X% XXXX,

rate flat last XX%, last compared X to dollar quarter was up retention to compared Our and – X% point year.

Our a period information. enrichment for to up rate or close X enrichment last rates up methodology the the and slip XX, X year. ending quarters retention was December the that and XXXX, basis to can with compared points between next appropriate XX% to deals on into compared client occur rolling the last We calculate due points The and dollar rates XX-month trend rolling early quarter. which XX-month fluctuations captures quarter

balance like I'd sheet. Now to review the

exercised total Accounts XXXX. a compared million of quarter and the during compared XXXX, any was fourth was operations or million million million, in $X.X to XX, year-end marketable the December cash in million cash quarter the XXXX. $XXX.X fourth was at XX, paid XXXX, $XX $X.XX $X.X stock year. Our of $X.X for at receivable December options from a is did during per XX, $X quarter last million which fourth the $XX.X $XXX,XXX the securities as repurchase Cash dividend $XXX.X million of quarter last million year. we received from We quarter of to of as compared December in decrease We to and quarter. million $X.X for from at the not as share

a revenue to XX, and December at December at XXXX of December over was currency an days December compared XX, to days compared Our million, XXXX, XX $XXX.X at X% XX, accounts X% was at X% XX, XX XX, days of constant XXXX. basis. X% an at compared XXXX on Deferred XXXX XX December increase XX, increase XXXX. was days And December sales to receivable outstanding

began improvement of our iPad, the and we web So year. the the performance We importantly, up ourselves share are new returned in our established completed We built improve initiative in achieved form We digitizing buyback at in investments and to of finished revenue our in progress of Android has beginning receiving strategic made products targeted in XXXX. enhanced and our enrichment. our We to customer accelerate experience. of in in significant significant core and shareholders we European retention national dividends; margin. the metrics iPhone in We in our XXXX XXXX objectives from set out made priorities model investments data beat the our million and in EPS office; rollout. a our operating This our business the CEM rollout with $XX.X targets on key our in as selling achieving key and improved our to this clients. XXXX. our North across closing, financial plan established and and resulted team of response versions apps, of We we favorable most efforts area America; more

we result, further tax $X savings expected utilize plan the to half in pretax, a of cut, the reinvest rate As from million digitization. product approximately to

innovate drive growth program resonating improved We in growth and accomplished very as what with executive products meaningful our results about our with feel suggested clients. and showing with user XXXX, we've We good – the business. to executive other the helping in team – with team access products the our continue

we look to build past on at We rates expect of success in that accelerated performance as XXXX the our this improve will year.

the of quarter the me for take you let XXXX. and specifics Now year full first through guidance our

for $XXX,XXX $X.X full first million $X.X for full the As quarter of and assets, XXXX; guidance compensation amortization our expense for we $X.X to XXXX; million excludes investment the approximately the intangible $XXX,XXX of $X million to year losses. stock-based which quarter and any million expect and following; the reminder, be to for first and gains year a approximately the

I impact guidance foreign a XXXX. our XXXX. point discuss to EPS in rates in issued for now to effects growth approximately X% benefit with currency foreign our today will corresponding that expenses that currency press we or earlier The expect XXXX X reflects release projected revenue and We and by for

XXXX; the appreciate X%. to pound Canadian approximately We the appreciate euro the British following changes to appreciate approximately X%; dollar X%; approximately to expect the and versus

rules be will effective as of XXXX. the January adopting Forrester new X, revenue

on be Although no will year revenue results, significant first approximately million tickets be there full remainder effect will a of quarters rather we each that in do from be recognized the events be not quarter. quarter, the the during longer our recognized number of expect there event $X the of will in expired year based on held

company lower survey our addition, which the In of costs remainder no year and the costs result and of will the longer for the quarter the will amortize capitalize data higher year. costs, first in in

addition spend mentioned we fact into beat initiative these fourth our quarter and the I XXXX. refund margin impacted consulting the items, that our enter into revenues negatively of revenue and to as XXXX quarter our first is the in for In backlog by that aid

to million, financial guidance per of million providing XXXX first of approximately forma approximately X%, approximately $XX pro rate revenues follows; quarter forma X% XX% as and operating total $X.XX forma to $X.XX. share effective tax pro to of pro Forrester's of $XX diluted earnings margin

$X.XX. effective tax GAAP first to the total year Thanks press over million, We and our forma now portion earnings very full today. in is diluted full the million for quarter pro XX% to back call $X.XX X-K year release XXXX as approximately and much. guidance a filed operator of to XX%, going the to on revenues operating pro XX%, and the forma guidance And of provided Q&A call. turn for the forma $XXX XXXX of basis per margin I'm to share of rate of pro follows; approximately approximately Our $XXX

Operator

you. Thank

session. the Tim now question-and-answer Please from our go from McHugh ahead. William [Operator comes question We Instructions] And will begin first Blair.

Tim McHugh

Thanks.

you've investment follow-up guess, Just the guess, to through that walk last benefits. or want but I investing it's the few cash tax get I decision been years. on of just of – windfall obviously, I to kind reinvest flow, you the part can of why, also spending the

So a I me on thought were talk get the you process. list these things were just wish that before? that to couldn't guess, through

Mike Doyle

Tim, that certainly the this of And we I to decision a we factors initiatives I do keep, enter our – the initiatives, more in standpoint, have combination think, strategic list our plan. broader tax looked from that at as rate of XXXX, of think part we into five-year helped. our running

what described way. to in at importantly, areas, are And frankly, George accelerate think these think, real the in growth trying a is we this faster the build very beginning see rate. a beginning key in resonate investments I much I we're to more to

So of the sort net growth expected still, helps the is see we what otherwise. to it Forrester. is to fund create we invest reduction and would've certainly it But rate because the helps tax higher opportunity that in result than a year-over-year a EPS did very high potential for

George Colony

George here. Tim,

faster. grow to us enabled it's think I

Mike Doyle

Yes.

George Colony

if But faster to – experience accelerate maybe have. real-time that hadn't These able if get there. the customer an as platform, than – would we're just windfall hadn't could we to glad the been the investments, be we delayed have had to would we we example,

which So like. it's just speeding we us up,

Tim McHugh

nice advisory Okay. types what think see How years the about few research how business the guess, to consulting for of like and parts – And, obviously the year? this year that next impact improvement in is quarter. how the of does was the bookings. predictability the margins expect over that you some I next the or business? you can talk into of you It the coming of or much from it versus seems traditional kind And of in

Mike Doyle

business. bookings core and research look, had we've think, healthy been performance our I advisory, – mean, with consulting I we but their in happy of with the

think part I been good very encouraging. that has So been and

think I made year-end. happened, what point, this there, we've we've to progress by think very George's meaningful I been encouraged

ago As we year look growing at our half. of meaningful was we've whereas, the our than year-over-year, products product got, frankly, a it a less bulk at probably way, set,

we being really so and it, one research And good core feel them. about of

George Colony

I ways the work digital the that forms the think – we're space, especially is helping research. the here, around and in Tim, to new new doing and data us the deliver

and our as iPad the iPhone we're use, of use syndicated Android about doubled we've said, also it's feeling the so side well. good I business – As the and

Tim McHugh

you. thank Okay,

George Colony

Thanks, Tim.

Operator

from And Please our question comes Research. ahead. next Vincent from go Barrington Colicchio

Vincent Colicchio

Yes. Mike, that healthy that the Can Was with teams six you you've was us that the help five give growth. one Europe? had mentioned – did of not, that? that

Mike Doyle

had good We Europe we were happy Europe, no. rebounded pretty a Europe. nicely. quarter in Actually,

And beginning the a is so of we're trend. real hoping this

from think good that also, we're stabilization, leadership I CEM. think, some are I starting things some benefits feeling to they're getting But happen about.

George Colony

is the think improving. economy I

Mike Doyle

is. it Yes

So we’ve that got going.

transition. continue the to bit. the really they're into CEM and we're West change, we're addition happy that's think team some and They've you come was and go the in continue and what's market, I made And encouraging. the ramp good think six changes the moving Europe really Because American the temporal. to of got good have going now good. some the that it numbers, with in mean, really has to which last consistently had going model of think sort team, showing North down in notion feel of this we've teams really struggled on teams actually making was will, I very we performed learning the very that But and longest as have was a right – leadership see five no, curve, rest a performance the will better it is to I to accelerate. well And the this importantly, encouraging. year more up, very, teams been if

Vincent Colicchio

in you any of culture? you territories, as the seeing sales terms the rightsize then, pushback meaningful And are

Mike Doyle

in because that necessarily sales are very think excited weren't target I about we territories in actually past, teams think frankly I the they them rightsizing the put out rich. the felt, that No,

I space. verticals And that and are existing in in this looking old existing them target of taking sales so that notion folks work it the that wasn't field I is a they think model think. with much are higher start the to effective, think a they've that find resources, better from step actually candidates I nicely balance fit that the sales because and list what opportunity. good territories and a think an and them of everybody. This they'll opportunities, of put frankly, is happy book try with the AV it's our I more with for sales with headcount, appropriately the just done the target all-around of at back, business match

the over give of growth with new territories them – we're a territories. in is clients of we're model, territory, To driven well-endowed in increase in legitimate each the group getting asking growth opportunities. If with to Vince, at net AV which a very you going really look those value selling time, to for had – be that, and Kelley do those

those So to precursor it's growth time. a over really the of territories

Vincent Colicchio

improving your receivable, quarter, see normalizing momentum up you quite a the the half? ticked in then bit. DSOs that accounts the And your with Do first in

Mike Doyle

I I'm Yeah, I that. I mean too not think concerned. with did concerned we But notice that. wasn’t too

I out revenue impacted. bit think we a numbers be model, We’ve will with have also little rolled midst our the changing QX in the new may we're of systems.

a finished out we systems everything up into changeover XXXX and moving with So Salesforce. Siebel of

collection cash see what little QX. is in we'll So a probably slower

in receivables. impact of comfortable our of the collection very some QX. I'm concerned process. with quality the But back the see about I'm normal. end we'll we half, I think So may to not first be by

Vincent Colicchio

guys. Thanks

Mike Doyle

Thank you, Vince.

George Colony

Thanks Vince.

Operator

our Klee & And Sidoti next comes from Allen ahead. Please from go question Company.

Allen Klee

I be line modeling are down that savings, Why guidance. to it first results back quarter question half going better? if is your Yes, EPS the reinvest you your to you're go to to of year-over-year? back the Help on wouldn't going understand, me be wanted tax bottom

Mike Doyle

there's going full of treat nicely. revenues. we can in the year accounting happening, event on. how impact EPS You change meaningfully And a ticket rules is what's things see our from growing think obviously, couple I The

we of really event now follow events our QX block every occur, going And when year. to the happened have year. revenue which in would fall ticket So that a events begin normally of that's revenue, QX would effectively, in this

George Colony

And event QX. no in

Mike Doyle

So cost as course to spread basis. that goes hit the of impact for as treated. way costs impact over there’s almost XX-months, use the terms in that data Regs you We cash so a used The them are survey like survey. being basically people the spend, away, essentially to push an of

driven up costs. has So that

are those So meaningful two things impacts.

as had we see performances, in quarter. consulting both addition, can strong on fourth revenue In and you the reprints

And frankly meaningful. backlog the quarter. it's to Some hit is that expected of first that we

coming So that, out. definitely that's

all first and quarter, the stabilize. expect in you to impacting clearly impact full year of those us those we So in guidance, things terms truly it from can of falls temporal QX. see are things in primarily our They

So us costs it then due initiative And effect coming We to down. costs those backlog situation see all the – in, And of event the always revenues so things of coming revenue, consulting our quarter our the effect for we quarter that's more odd events. been plus historically an lowest because quarter creates has Lower of sort which of QX. combination in come and margin. earnings compresses during the ticket first meaningful. revenue, have is typically first the sort other things no two in

low a normally matter have all it's fact, a expenses But sort you up your expenses, quarter. as quarter. in normal the some first all – come of So of

up. All of to tax comes related your comp

changes mentioned. bit just think So is pretty confident. seeing due year, we But normal little This I we're compression than some these I that aberration. more a the a to full of for QX again, feel

Allen Klee

then your I or up margin And think that, guidance, that believe accounting on Is due modeling operating other that of sort not to would expansion. for – be – reasons really reason? year Okay. full I any don't you're following

Mike Doyle

to business. desire to No. It's It's due our due It's the really investment. not in due back to invest accounting. to

continue at on expense an and digitization. of down double saves gets put So books look investment to go question to what we've back decided the looked and think Tim the to at we onto we – is tax asking, $X of additional and to product – form the had I this that million was in

basis, growth year-over-year. XX%. impact. the that an had shows your percentage that's seen XX% that's so Obviously, flat are a To EPS to of basically, correct that we've margins point, on approximately guidance And

we So opting in push – to going drive growth. clearly, and spend additional earnings to money share's up per or back

Allen Klee

you And Okay, you did were much did? repatriate if to cash you. any, say, planning you thank or how

Mike Doyle

cash. at repatriate any point, planning this We're not, to

continuing look overseas. at we're to I pipeline opportunities M&A our we're – think what and look at investment

point, Until a large consider made, George's that in we we've if referenced you back conscious cash fact so And and was, to there. there the made M&A U.S. we this needed I back. determine we fact, opportunity decision that point, stay it to at think we in obviously bringing here either, in have will the a

those as it at progresses, we'll we opting So the now, things were but is. cash look right for year to where keep the

Allen Klee

in don't I bought finally, back shares And think Okay. the any quarter. you

how your thinking Just that any about going on any thoughts or and thoughts maybe authorization forward? what is you're

Mike Doyle

increased release in $XX an $XX our by that million. million. authorization our announced $XX And – we we million. our And I authorization have today, about we mean, last was additional we that I think – dropped spent year,

to been opportunities, appropriate share per for in we third it appropriate are: dividend, if I And then think cash us. reasonable as our the is George which $X.XX the to of acquisition cash the increase for opportunistic form per always, opportunistic we that we'll board we a at to that reiterate they're share So we and returning felt company; price. and made when repurchase think be appropriate announce believe as one; the that be number And the replenish. I'll investment, uses point always will think primary being shareholders has quarter. for essentially the internal stock it we'll it's

Allen Klee

you Thank much. very

Mike Doyle

You bet.

George Colony

Thanks Allen.

Mike Doyle

Allen. Thanks

Operator

further at Thank this no And gentlemen. questions we time. ladies have you, and

ahead. go Okay,

George Colony

much seeing Thanks look you. will I out course quarter, you the appreciate the with of forward investors joining you so And to we call. we everyone. the be visiting Thank soon. very during

Mike Doyle

you. Thank

Operator

ladies disconnect. today's now This concludes participating. you Thank conference. And gentlemen. you, may you Thank and for

Forrester Research (FORR) 7 Feb 182017 Q4 Earnings call transcript