Yahoo Finance Forrester Research Inc (FORR) Q1 2024 Earnings Call Transcript Highlights: Navigating Market ...
Revenue: Q1 total revenue was $100.1 million, down 12% from $113.7 million in the previous year.
Net Income: Decreased to $2.8 million in Q1, down 46% from $5.1 million in Q1 of the previous year.
Earnings Per Share (EPS): Fell to $0.14, down 48% from $0.27 in the same quarter last year.
Client Retention: Overall client retention was flat at 72%, Forrester Decisions client retention at 82%, slightly improved from previous quarter.
Consulting Revenue: Dropped 27% to $23.1 million, reflecting ongoing market challenges.
Operating Income: Decreased by 54% to $3.4 million, representing 3.4% of revenue.
Free Cash Flow: Operating activities generated $0.6 million, capital expenditures were $1.4 million.
Research Revenue: Decreased by 5% from the previous year, with subscription research products down 3%.
Events Revenue: Was $0.4 million, a decrease of 65% due to no events held in Q1.
Release Date: April 30, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q & A Highlights
Q: What kind of selling environment did Forrester Research Inc experience during the quarter, and how did it progress relative to expectations? A: George Colony, Chairman of the Board, President & CEO, noted confidence in selling to senior executives, with significant year-over-year improvement in new business. The high-tech sector showed progress, although there were retention challenges due to the tech recession. The government sector and markets in Europe and Asia were stronger compared to the US.
Q: What feedback has Forrester received on Ana Zola, and what benefits are expected through the year? A: Carrie Johnson, Chief Product Officer, reported strong client feedback on Zola, highlighting its ability to provide fast, trusted answers and enhance client-analyst interactions. Zola is seen as a competitive differentiator, particularly appealing to leaders needing quick upskilling on key initiatives.
Q: Has the introduction of Zola driven legacy clients to transition to the Forrester Decisions platform? A: Nate Swan, Chief Sales Officer, confirmed that Zola, exclusive to Forrester Decisions clients, is a significant driver for migration to the platform, differentiating Forrester in the market and aiding clients in their work.
Q: How is the client count expected to change as Forrester approaches its migration target? A: Chris Finn, CFO, expects client growth to move in a positive direction as the year progresses, with the completion of the Forrester Decisions migration. He noted that about half of the remaining $50 million CV in legacy products is expected to migrate successfully.
Q: What is the status of the CV business pipeline and efforts to sell to more senior executives? A: Nate Swan indicated that the CV pipeline is growing, with a focus on upskilling the sales team to engage with senior executives. The sales team is responding positively to these changes, which are expected to generate more pipeline and drive growth.
Q: How did the consulting business perform, and were there any areas of strength? A: Chris Finn noted that while the consulting business faced challenges, there was interest in generative AI projects and cost optimization work. The strategic consulting segment, particularly in high-tech areas, was weaker.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
