Craig W. Safian
provide capture and the another XXXX. are tremendous focus the world, our adjusted on clients And revenue Thank our strong morning, grew quarter. to delivered everyone. exceptional we around business model, of our a market third to vast we XX% basis, Gene. quarter we operational the investments of Because in our opportunity, our you, the combined execution strong good value On making
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discussed As revenue of we is purchase as part value last only difference a that is deferred accounting. required the fair adjustment adjusted revenue excludes quarter, the that
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in-depth find on also our QX in of performance Investor will Relations overview presentation our an You website. a
Turning to QX our performance.
total share, includes of combined of EBITDA $XXX revenue XX%, traditional adjusted for for million. included note revenues which Gartner third quarter Our the combined the acquired million the million range the the financial company guidance for revenue quarter of revenue per and diluted our adjusted year-over-year XX% and is growth above for of $XXX top-end our performance approximately a Therefore, for business CEB quarter driven that adjusted on the our $XXX EPS adjustment. basis, combined by quarter. adjusted growth decline X% GAAP of Please XXXX $X.XX deferred $X.XX million an $XX an was business;
updated P&L consistently business sheet CEB with net flow dynamics. before a discuss over now the business rolling free business highlighting XXX% I'll to adjusted Gartner combined a close flow the exceptional last income. remarks where and to of Our third conversion. high-level On acquired depth, our cash conversion turning continues of traditional our the XXXX and results appropriate cash balance cash was free quarters, of and performance create I'll four our flow basis, combined our quarter guidance. on segment in model
quarter revenue will be decline then the revenue XX our than adjusted adjusted This mentioned. value traditional questions. comparable in businesses an X Please Research increased the decline the as point such to margin to presentation for of IR World the a in by Machina traditional to contribution deferred discussion and that Please modest business. performance will Research note Capterra, the on to my included QX, I'll happy Adjusted Acquisitions, the than the gross newer-acquired was points. gross margins due SCM a margin website. now XX% therefore, less primarily basis, or focus third revenue having third quarter Beginning Gartner lower On revenue primarily also lot adjustment XX% the revenues by adjusted We our with a and LX in note on fair information contribution contribution quarter. your on this Research, in business. segment back grew take of growth LX adding on and just contributed we've compared XX% combined basis basis. adjusted Research. quarter. focus The Research our XXXX I in adjusted is that third
had also benefit a We exchange. point foreign from roughly X
Our quarter. Research accelerating growth, billion other remained very Total business XX% our the retention QX. metrics improvements we productivity in roughly year, of of in was sales prior also FX of end for the with and $X.XXX strong the traditional versus XX% Gartner CV the growth value with last delivered neutral contract growth metrics. line as
the also XX% Gartner quarter. comparison, been an total acquired an value On the excluding which traditional March organic with basis, total $X.XXX billion. last on contract for would year contribution at we growth basis, in in QX value consistent FX XXXX reference FX-neutral have rates LX, For Research delivered our XXXX, we of growth the contract current was
We close up continue strong drive consistent on a perspective, XXX% retention flat all-time retention XXXX are for basis Gartner the growth value Research quarter, quarter basis. growth the Both and third and our flat XX%, ended points new sequential a points by sequential through basis. year-on-year contract was client XX retention on a of highs. and basis from roughly XX rates Wallet at figures From business. retention to to traditional in up
sales remained between through and QX. from year-on-year is we our and consistent prior business traditional additional annual strong, existing business as The benefit quarters remains services and up New growth balanced new clients. always, of Gartner clients upgrades price with for And XX% increases. mix new also Research in
for drive reflects Our enterprises. our X% growth QX with stands to vast client FX-neutral business versus spend $XXX,XXX reflects ability penetrating enterprise also through on our per The year both XXXX. opportunity continues increase now prior We X% the third new enterprises. success enterprise our existing with to clients, in It quarter at average existing This to up grow. spend new market ended growth compared enterprise, XX,XXX and both and up new average basis. an in CEB
Turning to FX-neutral beginning-of-period was over account million $XXX,XXX. delivered four we our value. rolling the traditional productivity X,XXX sales divided last was contract Research for the count, $XXX head quota-bearing rolling net quarters, Gartner of executive force, four-quarter When heads, sales our which per by productivity
acquisition, LX sequentially. the year-on-year was impact Excluding productivity X% up the XX% of sales and
our remain short around impact drive recruiting, remain we always, initiatives confident our results tools that sales and long that We As we highly the both the focused implemented improving training productivity. term. on have to and positively productivity over will
down value. research other QX basis. QX. performance Turning in traditional adjusted were flat in modest saw revenues CEB's metrics the decline to year-over-year the from in We modest $XXX research million ended the with CEB a in the positives despite contract research quarter improvement QX, year-on-year of research CEB in CV, with a on decline a We X% year-on-year many of quarter, CEB
at methodology, using also retention, to compared Gartner's quarter. wallet XX%, ended flat addition, In the roughly year-ago the quarter
we show slowdown a around continue best a terms. business implemented did rates practices new as Gartner retention see number to in we of and pricing improvement, While contract
seat-based host also products. a We introduced of new
As we be alluded the last bumps believe quarter, to way businesses. speed we there Gartner integrated would the we CEB as and along
future. position We temporary the are the in drive these growth confident actions and we taking and value impacts to well are us are that
strong QX. revenue on gross increased XX Events' XX%, CEB contribution a quarter. Events revenues, traditional by points Events, seasonally driven year-on-year a revenues XX% was approximately year-on-year to revenues. business third that Moving up year-ago quarter compared by in an increase very a event Events margin increased low QX the same in Gartner combined adjusted the by XX% quarter in a adjusted had increase to XX% XX% with basis, Events for The year-over-year basis in quarter in business.
reporting attendees same We continued to event attendees. increase see in in XX% strength a
Foreign a in on exchange traditional X-point third our Events revenues roughly had Gartner benefit quarter. reported the
on last a XX%. labor-based down In revenues Consulting an business of X% by declined the optimization contract X% the basis Consulting, year, declined declined third while versus business, basis. revenues and was FX-neutral quarter to X% Turning on reported QX
side, year-ago XXX speaking, end up quarter. XX% strategy MP the count partners labor-based head increase we QX, of a the managing working. Broadly the is global X% at the had XXX and of On was over
operational partner described, leading we've Backlog, at million, up some teams. indicator capacity key future we quarter to two we on increasing be see productivity. improvement, X% again at we'll growth Gene productivity of on the slowing We'll two related temporarily revenue experienced ended of down Consulting those for year-on-year. growth challenges that our signs As on $XX look those business managing so our the teams. on can focus MP Once teams, improving
performance in strong September and XXX bookings contribution as well. softness by in primarily in to points looks optimization due strengthened a margin modest pipeline decline business our contract year-on-year, gross the and decreased Our QX basis Consulting slight utilization.
Other adjusted revenues have that we was bookings people sales Assessment Other, of of large Turning recent Both and in those a trends Talent open the been This our combination of & consistent quarter. impacted open at territories the of the and number TA to filled time territories. TA by tenured of the existed segment the as with the by X% a to lower revenue mix acquisition year-ago compared declined & business.
standalone discussed we we caused our business. short-term on now This call, As feel are also that last us. disruptions behind TA a some established as we
the in TA of makes the & SHL. company to Assessment as evaluate two-thirds adjusted Gartner October, mentioned formerly business and of segment This Talent explore Other known X% decided Gene total CEB we As alternatives for early approximately strategic and business, around up revenues.
I'm progressing it pleased and month to less is than into are process well. report the We one that
and updates when provide appropriate. We will as further
third had by on a SG&A the point impact quarter. the combined on growth FX basis, rate. roughly Moving increased a down XX% year-over-year X income in statement, the
Our third be XX% continues associates. is sales ago. and investment our This the an of or force a had business quota-bearing X,XXX end quarter, of the as from largest sales to XXX Gartner traditional of the increase year
of count head grow well. an is able been we were than quarters, which associates. head open the more subsequent XXX and CEB quarter, should of to in acquisition primarily help to us research in frontline While territories from as that We've quarters increase sales this the The count. is to quota-bearing the due beginning prior fact the filling focused are on acceleration QX level reduce and adds sales open
our best around and growth drive training to leverage productivity. will recruiting, practices proven improved We tools CV and accelerated
progress as As growth the to time, acquisition, specifically contract CEB's in XXXX. on related and the now the we functions. other G&A larger investments areas our same in in company, such make the the to areas through technology, made to balance At strategy facilities to to company long we've and a CEB double-digit to we growth growth cost continue value, flow-through expect a in support continue good synergy accelerated net much delivering sustained drive of and to year modest plan the make term. of synergies the growth over already as invest recruiting, Through we continue
Gartner decline which side Adjusted for year-over-year We report on continue This combined to traditional basis. on back cost growth subsequent by is was for synergy work result is CEB million, EBITDA quarters. EBITDA, a quarter and the third to EBITDA. in progress the equation by the offset traditional driven we'll essentially year-over-year flat $XXX of our
reflecting the transaction. Moving depreciation charges the addition significantly, CEB, while up related predominantly of again and quarter, charges integration down the year-over-year amortization in the to increased were income statement,
and certain lower adjusted for adjusted from lower-than-expected for rate Adjusting GAAP about rate QX was The rate costs. Our adjusted rate charges, The our the quarter quarter impacted acquisition of tax tax XX.X%. tax largely timing for tax the EPS resulted non-recurring by $X.XX. was our the XX.X%.
approximately earnings rate $X.XX and We expect approximately negative tax GAAP was our diluted to third XX% quarter. in XX% XX% an share full-year to be on to basis. XX% the GAAP adjusted per
the primary was non-GAAP an on There figure of our Therefore high-end are quarter. EPS $X.XX GAAP our reasons for $X.XX in beat the our range. QX or $X.XX includes also EPS three adjustments. EPS of in adjusted Our guidance above basis,
First, was $X.XX approximately EBITDA contributed of forecasted. This better performance than upside.
as items rate, adjustments Second, about credits, share as These depreciation we $X.XX. below $X.XX two result tax discussed, third, which have approximately EBITDA, forecasted. earnings purchase impacted by lower-than-forecasted as I a accounting contributed our weren't lower And per other our well just incentive of of upside. quarterly as
operating now $XXX for was million QX, cash to million quarter. cash, to in flow the standalone year-ago compared $XXX Gartner Turning in
converting also flow our important acquisition QX free million, flow million. XX% our flow of adjust Our our we $XXX free combined a timing that higher is operating cash and cash driver QX combined and acquisition to yields strong Research was key Pivoting XXXX. million cash which to contract flow, The and cash significant QX integration to QX cash when $XX and out our of free XXXX free operating in increased calculation. begun company cash value for approximately across free XX% have QX cash free results cash integration approximately It were of is performance flow. and QX This note quarterly cash flow payments, compared QX flow includes $XX flow from to year-over-year. growth CapEx March payments our
combined relative the have level repaid debt a as billion. debt perspective, to April of million XX From a by which of gross we end X, X gross billion approximately billion $XXX times the of $X.X balance quarter-ending Turning $X.X of end months approximately we at last net we around the less approximately QX, QX with had adjusted leverage on sheet, had to the of debt EBITDA. $X.X than to a of translates
two first three of Given remained flow the combined cash acquisition. on of characteristics to to we approximately company, to closing firmly leverage within schedule the times favorable delever X gross years the the
guidance, updated XX provides you XXXX. the to now of presentation our with for slide Turning outlook
time, outlook is for both of flow. basis. XXXX, our approximately adjusted guidance plus and we've full-year On remind you increased an This revenue, we've our expect XX increased same we full-year I'll practice, modestly the EBITDA following. Gartner and of revenue At tightened our EPS our with billion. CEB of outlook adjusted results. high a also a our level, months that adjusted is the includes GAAP for the cash basis. our on revenue adjusted As and months company adjusted EPS $X.X is guidance EPS of Starting X comprised on And combined outlook
expect billion. billion revenues we and between Research, of adjusted $X.XXX $X.X combined For
For the our Gartner is Research reported. growth to of traditional strong expect the contract just growth business, we trend This supported value obviously XXXX. in continue we very by revenue mid-teen
of For $XXX Consulting, we revenues $XXX million. million between and expect
Events, million For we expect and million. the adjusted revenues $XXX $XXX of between
traditional For adjusted to million. growth are TA expect double-digit the we Gartner XXXX. Events between we revenue expect revenue and $XXX in Again, And of adjusted & for adjusted continue ranges. business, Other, these million revenue $XXX
of reconciliation the find to on slide XX GAAP revenue adjusted will guidance of revenue presentation. the ranges You our
as a of have guidance driven adjusted adjusted trimming of for previous XXXX, guidance EBITDA EBITDA reduction our to TA the dynamics, midpoint adjusted range the narrowed business. our we of notable mentioned, in to Turning is modest high-end expected most challenges which by $XX to few our million. EBITDA, the relates range by the This continued
P&L. we situation getting better on both and As will I open territories, an improvements earlier, impact the markedly discussed not those the Gene as have is but fill QX
impact the between ranges. vast of to which adjusted our key commented GAAP integration the midpoint EPS Putting and at total now have XX all As XXXX calculate Slide our guidance. details $X.XX quarter, expect our we approximately full-year by outlook. our below are of EPS share charges, expect non-cash our Slide significantly that presentation we majority in the after-tax expected increase $X.XX earnings nature. share of the used together, midpoint We of is a the reconciles EPS to the guidance. $X.XX these adjusted assumptions of XX updated be this last guidance adjusted and adjusted and difference to between EBITDA adjustments I XXXX updated EPS which the per per impacted is of $X.XX share, per now acquisition GAAP to
XX% GAAP to an for of and we of for earnings effective rate XX% tax to XX% our adjusted For approximately XX%. rate, annual approximately project
In mix XXXX-XX of addition, may ASU timing of the awards the stock-based geographic from items. the quarter-to-quarter well certain as of rate to our also impact due to tax related earnings, vary as projected
guidance XX.X million EPS full-year fully approximately count our on XX.X shares to for average Finally, the million diluted is of XXXX. weighted share based
concluding, Before I'd more our around fourth to quarter little color like provide a outlook.
Events fourth quarter. As during of quarter seasonally XXXX, Events Consulting some remind businesses. quarter. our the is you our and the we you our know, and that Consulting fourth in I'll largest also largest It's quarter softness both had
the As fourth we the XXXX into Gartner have the momentum flows performance we NCVI great have rolled our through and Research in of XXXX, traditional business quarter into P&L.
compares easier businesses, Events had also We the well. for flows through both as and Consulting and that
XXXX. our expecting performance our QX to finish first the we've the with in closing, year are We of strongly, through quarters quarter. consistent three In performance third continued strong XXXX through the
XX%. another and value was contract delivered growth growth business Research mid-teens quarter Our of
near sales in highs. are our retention metrics productivity, acceleration saw all-time also and We
on XXXX, double-digit deliver for Our is future. adjustments Consulting in we Events and should to in the business position us the making strongly growth are track
of The the strengthens industry of to look ahead market further as performing enterprise our of traditional ability the are process us to addition and worldwide. Talent The running of Gartner forward to explore leaders size Assessment priorities you as all a address to are We across business now capture opportunity we progresses. functional CEB well. that able virtually is the alternatives critical for vast mission very to back business reporting every business strategic and
and is beating mentioned, we them. timelines, or exceptionally aggressive well. are Gene achieving integration the As We set going
of the the acceleration has of to traditional us quarter, all market Gartner that given that capture business. as last accelerate force growing the in to investments, performance accelerate ability done vast discussed of a our confidence opportunity As We've such exists. number this to the while CEB driving sales
Now, to and your Operator? call to back over I'll we'll happy the turn be operator, take the questions.
