FORR - Earnings call transcript Q2 2021 | Forrester Research, Inc.

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Operator

Good afternoon. Thank you for joining today's call. With me today are George Colony, Forrester's Chairman of the Board and CEO; Carrie Johnson, Forrester's Chief Research Officer and Scott Chouinard, Forrester's Interim Chief Financial Officer and Treasurer. George will open the call. Carrie will follow George to provide a product update then Scott will discuss our financials.

the Q&A. open then will call to We Kelley the Q&A Chief Sales be joining Officer will portion Hippler, Forrester's of the call. this can dialing of XX, XXX-XXXX. replay call available be A until XXXX, and XXX-XXXX be (XXX) by accessed or (XXX) will August ID the conference Please XXXXXXX. reference

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

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

George Colony

I Welcome Interim Forrester's and to Scott will brief remarks. XXXX CFO. us give am QX Chouinard The and Product here Call. Forrester's with Johnson, Forrester's Research Carrie Investor Chief Officer three of

by three will joined Hippler, Chief and quarters Forrester's be QX. then Kelley questions. of into take then us will The the four continued We of Sales Officer, momentum the last

year-over-year million rate, events. the second research, $XX value is and Revenue customer consulting content In accelerated strong growing growth million and producing across financial grew on value performance. contract Forrester's X% its contract to $XXX and focused quarter obsessed

has million We in half in produced than of any company the of XXXX. have first full previous And that's more year. generated the $XX cash

of our exceeding quarter, top end guidance. of We in $X.XX $XXX.X XX% to million $X.XX guidance are revenue the grew end by the into beating top the and

during Our clients we retention pandemic. the to client strong count, clients win growth all wallet showed retention and as loss continue back

our of first result the the a in year. performance in QX of As half

We are will this raising detail go update. guidance for second and in year Scott his into time financial more the

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rates to factors QX to over several of year. retention XX% Now moving increasing XX%, to of That's third this our of Client contributing retention for up are the increase. points CV. are quarter. X quarter the growth moved Wallet consecutive

now are business price year in And We strong set growth X,XXX clients clients New in increases showed have XXX finally up realized. being year-over-year. quarter. that's this of January and the

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Our cash has improve CV also launch being products. products new deployed our CV to into

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organization with XX% exceptional consulting -year. posted Forrester’s growth year-over an quarter

meetings. the markets We for our study a pharmaceutical and bookings to contract technology the events replace to lead including strong Among marketing continue the In of to which we CX, lead in are content service have with China tech a BXB quarter sales during and full a their new generation and companies. for pandemic saw see a face-to-face rapidly global international marketing ever. demand marketing across QX, posting practice deal firm expanded workstreams programs, longitudinal five-year market to expanding The has services firm highest engagements European our is scale global reach conduct providers channels with continued drive CX with thought transformation, exciting technology. our a the new

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call the environmental, social our governance to and goals. our discuss wanted to advancing Carrie, turning commitment to before Now I over

continue furniture. Well, manage and the recycled our front, managing our not office to attainable to new we On locations materials worldwide all build-outs and environmental are the standards of given locations we with locations. demolition are recycled the highest certified, lead

new impact. as and And to are our more example, take work their an the also road commuters We policies vehicles. anywhere COX producing off out will with of operate low looking

forward we in especially Socially, inclusion to the move front. diversity continue and

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collaborate over And on value new has to last Johnson, core stayed focused are our Product innovated research bolded Carrie. for clients. on finest call Officer. stayed they've our the I'm have been guidance of teams, the that, Chief increasing to people very the They of turn we unprecedented and I'll XX despite with product agile. and clients. pandemic. are offense, powerful that the We they have to hour. the months used Carrie have the a bring the over truly Forrester’s create accomplished technology year. Forrester challenges proud the they will and This remained Research And launching and

Carrie Johnson

accelerate to incredible Decisions our share growth for then Thank that I'm how to double-digit deliver value new Forrester you, CV Forrester. ability will portfolio excited will to the George. deliver and we clients, product our today

with SiriusDecisions, to and is of Forrester of we they from obsession. of that hundreds customer acquisition engaging the an us buying a they their Sirius What wanted Following heard chart way clients. paths as we simpler with spoke

well as want entirely mentioned, certification. and the As These brings product of vision Forrester led of the together of products valuable Decisions Sirius, Forrester’s product frameworks the clients one an as that Forrester analytics research to like or new elements unified and conversations the creation other offering. execution our George

their velocity. Forrester context. are we leaders packed get marketing, Decisions to future will deliver The both their the product Forrester three of get empower Forrester of priorities our on of our combination Forrester’s and to frameworks execution our research results. is and of and all to vision, By access transform service in customer customers No priorities. We senior them our value data. the that brand ability CV time, Decision also will their CV With way. there. the their apply important most pipeline critical growth bold clients with functions. and the research believe The us. decisions to frameworks, transform new platform models teams an speed time bold We're this firm our to target insights experience, calls and stop standardized analysts teams vision easier XX audiences each money sales then business dynamics to to to buy to and new their tools sell. and portfolio extended other propel tailoring strategy research, customers save with increased significantly Forester’s each And Number and and product ways. and to a tailored entirely in from key this in personalized also new, launching services research Forrester technology, together The services will service, be functions, run and Decisions this one product platform for didn't digital benchmarking and and will curated delivers

them, product rates retention. Our time. in in higher sales Number teams for to two conversion less right wallet the quickly resulting can higher direct-to-customers more

sticky a it Decisions product. and frameworks Forrester make research tools

on services. the meaningful availability XX its And multiyear The Decisions and clear a to be roadmap Forrester expansion gives of existing these three cross-sell and services accounts. product clients difficult teams number for The unplug Forrester the will nature of it growth Our deals. Forrester their Priorities value a run and very will our with of our of achievement, most within important account single-year ensure result their side to the the sales are longer lead to by execute that will and commitment deliver client being organizations. Forrester contracts. clients our multiyear priorities in are to a outcomes for deals clients we team not term able will or

the Decisions. delivering speed product, to deliver record We've Forrester Forrester Forrester created is are levels aligned across with marketing Decisions and and of to on and both technology all sales, conviction. research, market

excited Forrester, and months are Decisions, I'm working to of sell indicators last XX very Forrester the course have time for Our receiving the grateful that sales our interest. that as to set and teams client for new Forrester tirelessly of best-in-class the for future the effort model teams their to to they're in And create lent to well. research already to have industry. customers a this strong the spent clients

over Forrester’s to brand product have of side design success. experience We and in and side and turn opportunity promise creating on to our your this growth center your put now by at Scott. be I'll limitless call delivery, for customers the the

Scott Chouinard

for second quarter, note that quarterly figures this are third adjusted we and quarter statement non-GAAP on the review metrics guidance full income Carrie. results, review year to the refer our Forrester’s our Thanks, never and XXXX. for performance we Please which the as financial call I'll results.

provided results press have in reconciliation our GAAP today. results adjusted our that issued of release we We to a our

to driven points overall a Currency we earnings increases strong QX year. of revenue and by up by year XX% improved prior our delivered which CV growth consulting percentage last was CV and across quarter X revenues X%. share our business per research, that with operating had growth growth As exceeded is the versus rates events. And strong compared with about great the revenue margin end Revenue George we of upper revenue, guidance. of our mentioned,

execution with We business quarter. continue X% for our two flagship the our North successful demand to the of revenues showing in growth, consulting the momentum in research expectations outperforming the see the America Summit during services events, and CV in BXB CX very

quarter with this shares six the a of the We the flow of second our first operating year, resulting in in I cash in last the history, million] EPS, have $X.X minutes. and cash revenue, for raising quarter. we the for in performance use confident as for our months on of the describe flow [$XX remainder us these to metrics of back buying we Forrester’s are And reporting XXXX section I've and the new this significant Overall, million of Investor discussed in during of guidance and cash a of a continue margin few momentum will on XXXX continue our any to in we to seen call, our website. the generate Relations quarter for year. And going set which start published the being metrics business we record the first operating period are

minutes are overall spend now being me the on these let based with a contract metrics concept metrics, Now few that value products. our our explaining

research is is annualized this recurring of the our CV, of or value contract up our the So subscription products. value research This measure of products. made predominantly

clients year metric are retention of by typically neutral renewed. currency that We throughout the show component CV CV subscription used also on clients products include the CV Wallet basis. relationship relationship our year, a the expanding from retained these that retained have attrition. all research count losses of we with purchase a which from majority prior client and the us. CV vast that from product subscription gains the includes clients client includes and much a reprint We products measures we how include as in are our these And and with clients

current straight expenses beat the and XX% This the increased during with with revenue increased double-digit to count to revenues represents quarters by by at XXXX. this million million both content to our the the quarter seen million Turning XXXX $XXX from six of and marketing from and was million the CapEx second million $XX.X with for income revenue. to quarter. of the and to sequential were the And our $X.X as or of was levels, of upward in the CV QX compared we balance in in per have of quarter of the compared million cash quarter a and of the growth of strategy by increased to for EPS or CV an Event down client X% we earnings prior for XXXX in second compared quarter, a revenue months. with quarter growth compared net was due XX% annual million quarter consulting $X.X of the And flow to of to compared net of we bonuses second was operating in of sequential the quarter driven quarter cash services. quarter in from to of ended of $XX.X of And second sponsors and on Consulting XX.X% up in represents in for QX virtual in increase in per And second XXXX. quarter the year continued Interest million year. first XXXX. flow growth to in quarter the accelerating $XX.X sheet. reinstatement second growth as offerings. $X.XX QX to in net coming three headcount of from quarter, by $X.X retention of of the steadily the XX.X% for to X% the second increases trend sponsorship to with and consecutive over $XX.X XXXX $X.X strength revenue, growth six million was revenue share the of at with wallet research XXX% of $XX.X income $XX.X for low was by quarter year, second The million prior quarters the increased debt driver have experienced Operating increased year XX% period. merit last see value for $X.XX second months driven increased share in to compared compared XXXX. the results has a events. compared in client X% reduce compared quarter, and of professional income XXXX. revenue our higher million up quarter CV, X% Similar income last the million revenue last primary QX Operating quarter CV of the X% four activities in current expense of compared Cash Ending XXXX. earnings the was $XX.X the X%

great with growth, earnings CV had and summary, exceeded So in quarter expectations. we revenue a that our

Our trend to count metrics at client was a retention continue and record level. flow and upwards, cash our

In buy addition, to we our began progresses. plan use and cash to opportunistically to year stock our back as the continue to buy

Our with sustained wallet products are a to and our growth. to and engagement relationship the resonating force driver goal retention achieving of And increases double-digit further in model deepen clients. lead should of introduction in will CV that our key decisions be

headwinds conditions to experience, and half be in on virtual closer hiring our While there with that regards mix those XXXX to are be words planned And those events. beyond. first events. a being QX to for get experiences. we of the a this feel goals hybrid events person virtual. once QX are subject in XXXX be difficult of in we are And attrition and quarter will few which a then of achieving our we events the a us local and a course, planned environment, events second pandemic to face majority will The light our guidance, for for our confident is

by our or EPS and Now $X.XX guidance million or full $XX revenue raised we by full XX%. guidance X% year have year

filed We excluded the a our in in press today. and GAAP our guidance adjusted guidance release basis provided on listed items X-K have from

Revenues operating X% $XXX basis Our guidance rate adjusted earnings of and per of third million, $X.XX on to to and X% $XXX quarter follows. margin XX% is million of effective share tax of $X.XX. diluted to as an

have to and the for each million, on the reported that earnings diluted call proud our and to margin work for follows. teammates $X.XX the in call. force effective we to an achieving today. of done Our financial to throughout all XX% of launching the will of you that is of our employees serving pandemic of passionately XX% $X.XX. operating Thank I the as and of I'm million XXXX and $XXX tax of very full guidance the from clients supporting joining and much XX% decision year so per Revenues the rate being $XXX performance basis operator now share us. great Q&A other developing And over turn portion to to and adjusted

Operator

[Operator while stand you. Thank by Please we the roster. Q&A compile Instructions]

William question Our from with first comes Nicholas Blair. Andrew

may proceed question. your with You

Andrew Nicholas

good questions. for thank And you afternoon. Hi, my taking

But first I main to the was respect that question to for with area could was The maybe surprised results like break QX back upside you. the had sounds just looking that you consulting if item if strength the you're quarter within where second down what bit in misheard clarify that upside maybe a little seeing terms debt in you further into and specifically? I the specifically line of was

Scott Chouinard

a Andrew, we geographic Thanks saw for Hey, did standpoint. Scott. we question. from And also have, has is strength you're offering good -- an was upside with for of marketing, been strong quarter, what good with so some we for this we as and saw strategy the that standpoint which from consulting kind content board on strengthen the across Yes surprise right, the also offering a the consulting nice is this us while. consultant both and the

Andrew Nicholas

then Thank it. Got follow up that. a maybe to And as you.

what up in the revenue I the third that guess increase guess had is expected. guide growth at I'm little to expectations, quarter given a for curious just was step expectations CV. strong least quarter quarter because what -- I'm surprised are Looking given I at sixth third relative bit I'm I higher, are what your I third CV really, the guess and really sequential consulting the sequential in events

would just of given sequential out? factors breaking could you call one down if it's that step be I if know down So a consulting and there's don't that any helpful? kind what strong or but further step the other quarter

Scott Chouinard

events, so streams, events. quarter the I saying, smaller there's two events, two of revenue light our about revenue the the think as minimal first, they're you when Sure, was

So months, that it's one quarters And down of for from certainly the revenue revenue during us. always stepped consulting, summer lower the QX. for significantly of

So in recall, here is a growth our potential of the research growth quarter. step revenue in on subscription But yes then entitlement the we're third consulting providing down revenue product. portion sequential comes line, from And in the research you the CV seeing revenue. a if event our growth

So because that are events quarter. the down, fewer in steps there third

Andrew Nicholas

Got it.

a help forward? makes us or that little going share missed active allocation just also, quarter, then know in size You repurchase That repurchase And would front great. of capital was sounds I more more plans, sense. in squeeze on the that Could than not one if could have the maybe again. only a been that, you I how like you of the some become plans bit you activity were your time. allocation capital but portion will be what just big in because Thanks, percentage on

Scott Chouinard

Sure.

we plan the we opportunistic be quarter. $X.X the repurchase call, on said in as And future we to buys. So with million

had Board repurchases we said, and yesterday, price. is a certain on discussion But to capital being opportunistic with of level that know, stock a commitment forward again amount our Meeting of fair there going being You future allocation. there's still

still firm commitment our on $XX authorization. left over no have we So, repurchase there, million

capacity there capacity and with have we So covenants. have our we

or pay purchases. debt kind we the that level we standpoint half. what do or need down future acquisition few a options standpoint second And to upon strategically from have at based of for we want an look of So, to

George Colony

a undervalued here. Andrew, as company. we're think We George

the Two, be our going are goes engine. [indiscernible] in that's to build especially capital we the build in first a place growth opportunistic to CV business, the one. company is buybacks So to

investment. one internal Thank priority be you. will So

Andrew Nicholas

you. Thank

Operator

Vincent question our Research. you. with comes from next Thank Colicchio And Barrington

with your proceed may You question.

Vincent Colicchio

for guys. momentum, did on side, as so than the CV quarter? quarter Congrats beginning on sense as sales improve the it the a at the bookings was me, pipeline on quarter the side higher of good a and then CV the now Few [indiscernible] progressed, for

Kelley Hippler

is Vincent. Thanks, Kelley Hippler here. This

all of So we quarter. quarter the had across consistently bookings in a terms momentum, actually months strong three of

perspective, we the basically, really the pleased QX early especially do seeing and lead well are as we results to lead Decisions, in we're quarter, And as we're last considerably So pickup we from for it's saw increase going that's strong quarter that momentum continued started the a pipeline what believe the pipeline with in QX. growth while seeing December, to to we of QX. with in to launch this quarter Forrester and

Vincent Colicchio

mentioned your you George old had down return new the in of versus in new the The clients of clients some the that does some terms clients? of growth? that And return of that clients old how break quarter, client

George Colony

with It Kelley more [indiscernible] it Yes it's the And a an give imprecise SiriusDecisions will half And a then give answer. half We the look I'll you SiriusDecisions. basically probably answer. was bit really I'll side. and that, Forrester to in little give back Kelley.

Kelley Hippler

Great, thank you, George.

premier our user are organization. ongoing our of our as well core organization, selling So we programs as with did have motions, that both back win selling

the on last But some definitely larger lost is that we there. of to So the year and retailers results Vincent companies what's automotive the for encouraging. side seeing great user program are target XX/XX pandemic gave already that split to its we're premiere coming back that is year. now which them we back, hit come that the very starting And their due businesses

clients So we as offering the for to Decisions doubled looking continues think I our half. pick the us. it Forrester with of more to with reengage second we'll new continue And momentum see up to and

Vincent Colicchio

have place salespeople you're do the in be labor here tight to the the change you your It of the initial year? that by inflation you goal looks to And hope how mentioned second going being in will like I market, meaningful is by end will the for you half? think wage impacted think

Kelley Hippler

we go for are similar that hiring -- and next retention we say ramped are actively to and other up companies, can working challenges, so be backfill to Well, to acquisition Vincent, aggressively I but would positions for some facing year. and ready very we talent

to our be doing One helping to line geographies seeking Right pent which a just within up of in things now, population, in based been spike with we is are employee attrition year. last wages demand that on is we've there did expectations. keep our the expanding expect the which we

well. get our our continue will invest But to can can want to nothing hit about that our in XXXX. continue more productive help us we ability our So targets actively targets. to think to that to do hire so that force to to for XXXX be impact sales and is as technologies this existing also getting we But

So help our around I make in approach easier that to to but productive take And we to as infrastructure in head we as investing think get it for targets. existing them their more as and well. sales XXXX done continue organization, building we'll you've to balanced sort to of folks have parallel into also to the known, the them be

Vincent Colicchio

go I queue. the in Okay. will back nice quarter. Again,

Kelley Hippler

you. Thank

George Colony

Vincent. you question last tech than have we been our working has people Thank a two One fantastic is, for bit little more anywhere. advantages. the [indiscernible]

Kelley we're also And so said we a flex to today, going as And that's enabling anywhere. work. into have hire

Our plan two means three the we days in days, in flex [indiscernible] which office.

So there Thanks crazy labor questions. is for a flexibility But market. a lot the the us of this is markets. helping labor in

Vincent Colicchio

welcome. You’re

Operator

turn the this for I'm any would further Please the to and further to Instructions] standby not any showing back Scott [Operator Chouinard And you, time. you. call I Q&A remarks. compile roster. we Thank thank now over questions like at art

Scott Chouinard

call today. our you. thank the everyone everyone third want on call. during us Thank on you. joining we look I updating quarter forward progress Thank for to our to And

Operator

participating. this you concludes Thank Ladies call. and gentlemen, today's conference you. Thank for

disconnect. may You now

Forrester Research (FORR) 29 Jul 212021 Q2 Earnings call transcript