FORR - Earnings call transcript Q4 2024 | Forrester Research, Inc.

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Operator

Good afternoon, and thank you for standing by. Welcome to Forrester's Fourth Quarter and Full Year 2024 Conference Call. [Operator Instructions]. After the speaker's presentation, there will be a question-and-answer session. Please be advised that today's conference is being recorded. to Corporate conference Ed Development like Vice to Bryce now of President and would turn over the the Morris. I Investor Relations, ahead. go Please

Edward Morris

Thank fourth quarter call. full joining year issued you, Thanks and press this our the afternoon, we and today's for release XXXX. everyone. hello, Earlier for

on you If one a the in you copy, website need Investors find can our section.

our discuss Chairman; Chief Colony, Forrester's Officer; Officer and and Here Swan, Finn, Officer, George Carrie Officer; Chief with Q&A Chief are us Product are of Johnson, us and Nate also our results the call. today for Financial Chris to section Chief Sales Executive the with

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

or are cause as a and Securities result of discussed could to any information, with whether statements, otherwise. no events update forward-looking company our actual that obligations filings results undertakes and reports and Factors the in Commission. differ the Exchange to future publicly new

previous basis, with calls, will discussing adjusted comparability. which consistent Lastly, affecting an we performance items be our today, excludes on

and numbers provides accordance that basis for an GAAP, on in on a an we adjusted our basis reporting adjusted discussion. reporting this While appropriate basis with meaningful comparison not believe is

results press of a these from And that, in George. over detailed with find excluded items hand it I'll You'll our to release. list adjusted

George Colony

Officer, remarks. Forrester's financial XXXX Year will Finn, our me With is joining Earnings Chief for a update Full and following Call. Chris QX Financial who you Thank present

in progress focus and fiscal one, covering key XXXX and be following the XXXX, I year two financial themes: our XXXX. will three, for performance; QX areas

year We our to a final backdrop have environment. an this the all FD. worked transition slowdown was journey Decisions, or challenges, tech Forrester economic a of in on the XXXX against number of uncertain of in XXXX through and embarked

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have our of value working now of XX% introduce our clients our of a The with product. in is CV We and a with remaining complete had our FT all [indiscernible] report of remaining value migration We small or reprints a contract largely new Forrester. in different our to essentially proposition to that portion way legacy to with CV is XX% portfolio.

As on and after a FD. the our entire focused supporting XXX% result, selling now organization multiyear is migration,

This will Forrester adding clients product allow go-to-market platform. and our on research to teams Decisions enhancing to to enrichment focus and new continue and the retention,

shareholder company's While changes challenging, in have the has the history client made we that value. remain long-term will generate confident been and we

these refocusing By mix, our less a transitioning calls, and now than businesses have of we've been CV. consulting drive Forrester on while previous discussed revenue XX%. been overall Decisions, businesses As portion events also our design, we to smaller to comprise

particular showed improved slow the of strength business year with consulting Our in overcame start the the Strategy half in a and year second trends in consulting.

in challenged XXXX. Our events business was

rose tickets historically were to the attendees rates, of planned total with non-client smaller resulting in clients attending While audiences. events high percentage events down than

events of which revenue. size impacted Audience XX% comprised approximately sales, sponsorship

and to are higher investing our in drive experience factors, Now record XXXX, audiences continue expanded or attendees from to despite high scores value. In these events events part, events experiences. high in we

in stabilized improvement. of the year metrics Our with pockets

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is Turning clients our access a Forrester's research AI to generative Izola now availability into improvements enhance brief synthesis full continue midyear, product and and that quickly tool. tool. at to It in It enables XXXX. our summary of create to of new went we research. the

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than based year, major update simplify the to buyer needs, that X of decades. selection specific clients to unveiled their a our guide priorities. on preferences product we allow iconic served decisions buyers has purchasing the tech comprehensive this process and These make for Forrester Finally, Wave, and more changes

clients and view Our new wave results to to interactive context. their requirements tailored comparison specific tool allows

reminder are quarter, and of selling our performance. CV Forrester fourth of that year. a dynamics Decisions. attenuated Turning full Bookings now the year adjusting QX full in X% we exigencies was for still the the to late decline resulting to in and This another

for details were fourth you of a our with said, the midpoint and That to we in QX the quarter will guidance. financial in the quarter for in in To moments. Chris in line in in year. a missed additional our X% bookings reduction force revenue XX% keep January. had XXXX, revenue expected expenses few and of CV for early at give decline, contributed the profitability above The revenue or X% XXXX

touch like And I'd for XXXX. now our outlook to on

We value year. flat growth contract planning are in for the

that product is transition and culture in complete, weakness the economic continued factors: XXXX. transition we is potentially technology administration. completing incoming and driven motion being in Two, its while be outlook one, and Our believe driven our will the uncertainties, political being by markets; made tech three, the by sales the and services X presidential U.S. by changes

revenue we while negative XXXX. result in growth as for So contract be expect flat of down value year we increase planning be a CV XXXX, in to are the to in

expect we cash year. However, flow return the to historical levels in to

improving driving growth; the to on two, a and focused transition growth. retention complete, is XXXX, boosting more events X CV three, the product With company one, driver be of initiatives potent in retention; and

enhancing Now clients for our while course, the we in systems company, one to higher job it drive of is, are XXXX. retaining always

sets The The change institutionalization half cycle retention most of progress life Decisions, in continuous second the the is cadence important our the Forrester check-ins we debuted of initiatives. reviewing foremost retention of their with economic XXXX. of the of cycle life process, a client's which buyer

to apply sales close consistently standardized in to our methodology, one, authority half the the with we selling activities XXXX, life our sales business. In will to three, applying and and that executives found call reduce followed; research; are retention. who in and time what new cycle XXXX, drive we budget of the to regimen improved two, FAST, second we continue participation put place have ensuring our To we correlation the client and C-level growth, between

Our boost representatives. training hiring execution, the new productivity, count XXXX and and investments development plan includes quota-bearing growth to including sales head of account

Apple for to powerful events is Our are person make supercharger to to with platforms and where peers ] Store place like I'd in contracts. more get the the and to their time third [ where selling with events colleagues. them can spend clients Forrester, clients renewing research initiative and our we call

in force and audience, We're incentivizing investments events: expanding shifting making marketing expand for dollars events to three, attend. clients and the X the to make to experience events; sales content sign to our nonclients and one, must events up

Our form with in. better being we've alignment events spend to most to We is we this good integrated attention. have of the return CV a ensure been Events that always get messaging, is leverage the to organization that growth. want of and in marketing business asset organization our tightly

as I these past investors years. patience want has to company moved to X thank through Now for their conclude, the

and old Forrester. the this So want outline we accomplished to have than Forrester what I new the will investment been why challenging. certainly has better a be ultimately

Number non-CV. company XX% a XX% has CV, one, the and from non-CV pivoted XX% ratio CV XX% to

AI contracts we we As increase client solutions Four, This retention. sharpened scale wallet business, clients increase has company ongoing operating reflects to power uniqueness. which favor to of on move tool we that research the a larger have retention ratios will constructed expand, corporate in competitive five, customers company profitability centering Three, and finally, faster. improve designed productivity. the platform shed our will only and to are get to leverage. return to continue CV positioning one generative have This growth, research and ultimately clients. small answers sales Two, multiyear increase satisfaction and rates. our and to simplified And these per of client cross-sell new and enable will we

on our competitors, tech our and in finally, clients business We're customers. guidance. analyze unlike uniquely serve and focused win, we research and retain silos. helping together, their We not And continuous offer

the on clients. side of by our are the side We and

higher will this been that and potential growth X of model with clients. opportunities years be believe the with has transition make company to We to the embedded profitable the last worthwhile. with more Getting more new

making transition, focused CFO. We we are Chris? turn very and work. you over Finn, executing, the model now Chris I this Forrester's will are to on Thank call through now much. the product And distinct

Chris Finn

Thanks, George, and good afternoon, everyone.

of migration, our improving to fell which continuously made platform, a Forrester a this and for our discussed, completing completing Decisions fourth Generative we capability George offer Decisions As launched reprint subscription Forrester year AI this, ongoing expectations. the updates. have reprint materially a launching the allows of including short the company, platform new rollout progress as Despite quarter the with our product tool, meaningful newly results Izola,

In key include and per consensus or improved in wallet multiyear throughout quarter year contracts. addition, steadily client, our and our value with retention, contract than client retention, metrics portion stabilized Furthermore, have and CV midpoint were year. of guidance results financial on or the full better of These the line fourth the estimates.

insignificant to we in had the calculation, of the topic currency an metric error no CV trends. wanted recast the that we which highlight I for prior Furthermore, effect corrected plan rates. XXXX foreign metrics, CV On on have

the our way. We we consolidated of going be completed transformation, materially product metrics commenting have CV recast on forward. will the presentation we because a quarter, our starting next metrics set historical included on in Also, investor only

XXXX. revenue the at in came in the 'XX decline $XXX.X X% $XXX.X million Overall million. the year For a representing a for from million, decline of was million quarter, representing revenues from XX% QX overall we $XXX $XXX.X revenue generated

January, align in outlined we've with the revenue. our decline taken we've better actions cost As in to structure our

I'll additional now the provide regarding some details restructuring.

X%. We have by approximately workforce reduced our

We during to incur costs compensation is million the overall including $X.X expect actions, plan cost was noncash, a and of investments fourth customer incentives quarter. the approximately savings for $X.X use Approximately as of the well $X.X to $XXX,XXX charge sales across to we to million of as and success. that these portion recognized employee million fund focused

segment, smaller In Research came XX, and and the a decline than terms the from is a of due segment on XXXX December million CV at The new was to results lower XXXX. business globe. in this retention for December across decrease in $XXX.X expected in all the X% for quarter, improvement largely CV

most retention George, for by company X of XXXX. important for As and and growth entire sales areas are the the outlined focus

wallet by XX% improved in and X to this XX% from XXXX to continue. retention points have improvement We seen expect

expect a improvements show to we to retention However, wallet we due new XXXX, the of modest only and CV move growth through pacing business improvement anticipated year. as during

in overall, Although improving market, half. lower expect XX%. half retention it's with Overall environment back to first the the for a and client and performance remain is selling quarter the remained improving the fourth still muted count client we was challenging at CV stable

retention initiatives, looking client in near improve we part are to the As term. overall ongoing of the retention

reprint of legacy XX% Client by an achieved retention having of of with remaining products. increasing in and Forrester by a goal we CV benefit along small the portion fact that of CV year-end The remaining our our Decisions in multiyear XX% our contracts. research at platform represents in should the of CV CV our products, amount primarily

and revenue quarter standpoint, decreased full in X% research a From the year. fourth for revenues the X%

as X% the Decisions products year, our subscription growth For approximately our revenue declines by research legacy products. down full in research from was Forrester in was offset

In reprints experienced addition, in smaller and products. other we and declines our discontinued

trends and declines $XX.X a and in services year positive return to continue that XXXX. $XX.X This ongoing strategy consulting saw declines, fourth with quarters, we year, businesses. quarter Our X% bookings X our of consulting of the us consulting to This million consulting representing stabilization our and business booking combined confidence alignment growth full Despite marketing prior posted for revenues in some the versus the million and XXXX. in consulting the of advisory content for improve for and in respectively, of gives these the over last stabilization business periods. will XX%, sales includes improved

Events posted XXXX. finally, million, business compared decline the fourth quarter And of our of representing revenues $X.X XX% of a to

XX% full was sales. the driven sponsorship $XX.X to For This by by revenue the and year, segment million. declined lower ticket

to prospects looking leadership events we investments, on and George As sponsorship to in our new are both emphasis and refocus outlined, and additional driving business with events. clients XXXX

the decreased primarily an P&L our for cost fourth by down Continuing driven quarter management. ongoing expenses basis, XX%, Operating by adjusted on

quarter Specifically period for XXXX. compared to in same on count down head the the grew XX% fourth

expenses On including year and associated a largely basis, services reductions by and compensation the professional expenses. from X%, decreased with operating facilities savings and full driven labor benefit other additional categories, also by savings

million or $XX.X or X.X% decreased to XXXX. of compared to $X.X year basis, fourth current XXXX. revenue $X.X revenue of X.X% XX% in revenue of the $XX.X to million quarter the income operating million income by of or of X.X% full with increased XX.X% or Operating million quarter a XX% compared in revenue by On in

our We cost committed with continue to our outlook. to be aligning structure revenue

$X.X $X.X million million was the $X.X expense year compared fourth the $X expense to Interest was interest as to million of XXXX. a compared full quarter in quarter On XXXX. basis, for million in

decreased quarter QX at XXXX. the $X.X with net and compared to share quarter respectively. of of last a share income of earnings to XX% and for of On net Finally, share $X.XX earnings year $X.XX increased income income per EPS per in XX% net XX%, and income million year and of compared fourth $X.X basis, $XX.X respectively, net million with full and current per million the and $X.XX, earnings

capital and outlined cash bookings our from driven structure. the was declining expenditure QX. at negative for The and flow million million. flow Looking capital we litigation $X.X was was XXXX Cash by $X.X in operating activities negative settlement

And of the had of $XX We leaves in This million million $XXX.X of quarter. repurchased approximately the investments our shares stock the intact. We we shares. of million as million year, we fourth and authorization exited almost cash repurchase $X.X quarter. $XX worth approximately for repurchased worth

Turning with to line. guidance, top starting the

or half outlook assumes with Furthermore, For XXXX, decline and last we X% events the revenue be The a consulting the the second versus expect driven year. revenue to bookings by is this half. be for anticipated hampers $XXX million to better to year's to outlook first $XXX down the million decline mid-single-digit all research, performance XXXX. X% for guidance growth for businesses which

year to And range investments interest expense we've Given the expect actions expected of to are be be of costs, the to full EPS combined a to X% would this the of in all we control to to guiding the full year. with $X.XX range expect margins is rate XX%. we year would the for for X% into operating we tax for our $X.XX highlighted, Taking have taken account, we be to million $X.X XXXX. in

business believe going in in and will also Consulting and of activities. go-to-market in XXXX. show second will that through in of summary, revenue improved improvements Decisions In the Forrester these stabilized were the performance to our business progress significant CV see progress forward. XXXX, we positive see We base We our the to platform we that pleased half we momentum and transforming made as has believe the XXXX the benefits

a remains we're the difficult business had with moving business events positive, business to for the we the our actions and outlook year, expect although stabilize taking. Events And forward the

in addition, anticipate to improvement. flow XXXX on we returning In bookings cash positive based free

ever We technology the all events business and continue forward. back growth. of Forrester platform as and The positive Decisions cycles our about to to consulting product driving of remain the very singular potential growth going faster disruption,

potential We business. execution our in plan the on place to of full and this year, have realize laser-focused solid for a we're

for back time And Thank all the I'll the you with hand call George. to that, taking today.

George Colony

conclusion, In excited model. be new focused the Chris. company the you, is Forrester to Thank executing on

that right return strategy to growth. bookings to confident have growth revenue and are we We go-to-market and ultimately, right product the the

your take for company questions. operator, of valuable again belief to and back the we hand you support our your Thank and the important now I'm call going will the and in mission. to

Operator

the line Andrew first [Operator question Nicholas our Blair. William from Instructions]. comes And show of from I

Andrew Nicholas

you I bit I also still attenuated the some fourth noted the growth wanted of And as the dealing you're think in with George, and bookings adjustments motion start to little kind that bookings commentary. culture. that quarter. with sales transition a think I late the you said you

of individual Can of giving what over end would was Do you kind a the little you more industries Any be unpack you December? more driven? were market and additional there great. November bit execution-driven course or it just think there occurred Were color more issues? that

Nate Swan

Officer. Andrew, it's Chief Nate Swan, the Sales

jump So some give well. in, sure George happy to comments will and as I'm

us a high-tech So We a some of challenges was smaller challenging some QX field, we've across in for seen challenges. couple different the continually quarter where had segments.

well, but meeting QX. We're we pretty in backwards little bit step a those

as play. a get as that lot QX. were lot government The for really was government was That Christmas in well due budgets. struggling vendors the of the agencies in a of with until really continuing also sector did small to was I resolved a think partly not challenge resolution break

meeting numbers. some then And had in India, also we our challenges

I really the was say, XXXX, And focus our is in forward guess, organization. execution. execution I it would going around sales So for main

strategies. our of any changing not are We

getting executing life refers using that as staying our methodology George to just the developing same at retention it. our cycle pipelines, and fast on and sales better are We of focus

introduced delivering sales get and about to We've clients and senior plenty, the page and same for those sure of our rest making We introduce delivering into more. getting it's team don't we're them. need and on and Forrester for the that executives level the

would That probably be area. challenge biggest -- the the

at to the doing say industries. organization. second were a buyer those would be focus area getting So where as better an senior could the specific been be the we area I'd more economic has

George Colony

well half last large one Premier we the it's in area I'd Yes, That QX one the pretty strength actually is second that has call say was comment high year. but recovered tech, business companies. of tech of the on

Nate performer Big for challenged. tech year, small question. full a the think Yes. But Tech talked being I was very about yes. Good

Andrew Nicholas

guess that to overall I a I'm just XXXX Great. for into little and as now a guess I execution visibility of growth broadly, follow-up maybe your to of fall the more expectation we kind that of guidance acceleration? need small the improve time much understand second will maybe kind versus thinking improvement bit? second year. half comments you macro and how that on the need see any of to you a last move high-tech as about trying this half And to relative to business CV

George Colony

on group. we've as what we're nearly follow-up. small not most that over had much migration -- good has said, We're as through as the The with Andrew, few the Yes, Chris is of amount smaller tech exposure very the years. last

want to to not clients. are -- move We also on we from keep We're trying them. on working those

exposure for has well as We and on. not as move we're trying a But to nearly different is as product paths we them that in sector glide to those set it move on to have working clients over the been. what much that are them

Unknown Executive

Yes.

that's challenging roll tide love happened the to know, from of tech but years. back sub-$XX you would it away good they of million We they tide couple what's in on more times, will we've last on of been vendors, times. the out transitioning roll the them death, and really As

that. we've above made a decision sub-$XX deemphasize to company So the a as million focus

So most over is of transition at point. this that

Andrew Nicholas

perspective about more means decisions and kind Understood. understand in you're And topic. anything the on what there or management But to it overall the that of Forrester any product you have could the cost developments offering. side, then if I productivity to? pipeline that for one very been I AI or from could that's speak squeeze Izola, there with an in operational the optimistic just efficiency help on

Carrie Fanlo

Sure. Officer. It's Chief Carrie Product Johnson,

client-facing noted, it leveraging well you but as using for -- efficiency. tool, a we're all are As as bit internal certainly quite

Izola allowing are find faster like enhancements plus primarily added answers we've some to success for So tools our other that customer clients. team

part automation, to time outsourcing analysts the using the We're some some it we're calls of, also way, which for the and with takes that then by automation using clients. of we're our also decrease conduct is doing to that

that summarization faster. then GenAI records then help the So service us to clients some then some we're auto doing and update

So of tools certainly, both us, big and a the new area side end. client focus some tools plus using the the of for back same on on

George Colony

but higher again, users research Yes informal informal, and XX% Izola at were some here on QX, in of renewing rates. heavy Izola

there's on -- emerging to us. it correlation an with looks like companies recommitting Izola focused who here the So are

So it's been a big help.

Operator

And from comes I Sidoti. question line Anja from show of Soderstrom next our the

Anja Soderstrom

I'm had mentioned you you India. just some on curious, just Could that? you in challenges elaborate

George Colony

the small we It a the had We bit sure. that of been with that more had years the X -- we having in first here were little a a really time vendors in challenge. miss. I've Yes, was India,

trend in and market. learning of looking as in that were team So we that in think on that growth the but QX we it more weeks just come execution see problem, with broader is we to a quarter X a it's opposed retention to about in I'll a miss we more forward expecting on don't some that to be execution there long-term challenges being think a and in. of market, actually more

Anja Soderstrom

grow had been the expand to to get improve to sort and have that C-suite. going? Okay. that right? like the seems are challenging and you But is you doing You you thought And So focus more vendors to mentioned -- larger smaller -- with some you how of is you some your customers, you're with larger have it with mentioning what it's really issues customers? than

George Colony

Yes, great question.

salespeople selling for really agile educated quarters, on They're where have how on those our technique conversations. working the Forrester -- to leaning last we We to in. X our are are

Our It's to in coaching than sales management before. do team leaning really motion that. different a on we had

on practice. So that in they working are

we're all And doing the great have some success So getting better we seen done where that. time we've that.

program, executives, where early an run really multiyear senior an good of work we to new do them with that we're the for XX% members engagement. we show services that. seeing current So rewriting and could contract new renewal and there's growth seeing -- really, We're our opportunity utilizing XX% roughly improve be those a those when with success when we

it's customer have, are execution that sure making they and do When So success do that, broad-based really to the just deliver them. understanding analysts across against we our we so sales that our we're well. outcomes up setting we're success, can they for sure the organization, initiatives what making that clients trying achieve

Anja Soderstrom

I'm you engaging new the not does map like year? ] the look [ for a And Okay. released customers? road driver products, And some for that with the what

Carrie Fanlo

Sure.

to where research. a That we allow which in in research potentially a products product. I comments, successful as of It's -- our flexible one -- is was as some Reprint I is customers been very And as name Reprints reprints is for its couple for a that's, sort has of Chris. did think, you business for hub, that know, the flexible mean, a mentioned the much his more our published purchase George existing So rights us. of product.

se a been clients Forrester our they've it's per very Decisions, -- engagement but product that helpful around and with asking high-tech our for. in with Less certainly driven

of So impact those talking relationships we net has that particular in believe large sort on that about. been vendor we've a positive

and Decisions. sort other essentially The that from an allow enhancement customization Forrester around are of further perspective flexibility things

very of to tool great it and of the personalized allowing that kind wave research is about already have and what's as example, So we in George access talked and all done a about an Izola the customers Interactive more unlocking really critical insights that way.

our think have leveraging much product customers you it road in insights when already to map, delivering and that of faster. we about the fact, is, it So

of interactivity allow Forrester from like get we that features rich data, more again, see customers which data is, you'll personalized. and faster around to to have type set the So insights more and unlocking that service

George Colony

during of Izola upgrades a year I'd improvements as say So and lot the year, Izola well. the during

Operator

I'm queue. Finn, to to call showing questions Financial in no like for Chief this further At I remarks. Chris would the closing time, turn the back Officer,

Chris Finn

Yes. for the call today. joining Thanks, everyone,

As Ed, always, or follow-ups. for any just reach out to myself

Operator

you concludes participating. for Thank you. Thank This call. today's conference

may disconnect. now You

Forrester Research (FORR) 11 Feb 252024 Q4 Earnings call transcript