Forrester Research (FORR) 27 Jul 232023 Q2 Earnings call transcript

Good afternoon and thank you for standing by. Welcome to Forrester’s Second Quarter 2023 Conference Call. [Operator Instructions] Please be advised that today’s conference is being recorded. I would now like to turn the conference over to the Vice President of Corporate Development and Investor Relations, Ed Bryce Morris. Please go ahead.

everyone. hello and you Thank Thanks for today’s call. joining this second quarter we our issued the for release press of Earlier afternoon, XXXX.

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

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

that you Private remind call cause Factors Exchange to and results company’s the to Act as statements like future of those estimates, reports I’d any of begin, the expressions intended the and expects, the plans we forward-looking current or contain of of as are These within uncertainties in are new otherwise. plans, to Securities from this update based risks results statements in and discussed with anticipates, forth the and undertakes information, no to such company events whether future Before could or involve and publicly expectations different forward-looking and materially will Reform intends, identify on believes, our similar filings that statements. that XXXX. these a meaning the Words could operations be Litigation activities statements, differ are and Securities forward-looking Commission result cause statements. set obligation to actual forward-looking

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

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

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to I that, it hand with And George. over will

Thank you XXXX QX Forrester’s call. investor for joining

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Thanks, George and everyone. good afternoon,

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us intact. with $XXX,XXX approximately repurchase repurchase quarter did million stock leaving our of the authorization we shares However, approximately worth of in $XX

year expecting over we through what I commentary. the will and are remainder additional walk you provide now of the

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our and expected driving assumes previous digits consulting million. digit of the expense XX.X% $XXX business provide business million is year. to to the are the year. the approximately decline some our $X in in mid of XX.X%, of positive XX.X% Revenue range outlook for in expected $XXX to to guidance the in from our down a color based XX.X% million Interest our for consulting And This the expected research to me decline, the the on we events. additional year. Operating guidance weaker improvement of to in a be to of $X.XX. the continuing for full to or year is outlook previous low-XXs is into outlook business mid-single to declines $X, share Let for and account, XX%. rate in of slight from range guidance balance a be are now down a a $X.XX events more in to be of now the expected of cautious high-single be margins now approximately Taking tax guide the this per to to our all in earnings $X range to

We months the ahead. about optimistic remain cautiously

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client demand and potential long-term client the of Forrester driven on opportunities, growth our AI. up-sell and by cross-sell base, generative the improving on performance, focused capitalizing are of including future We Decisions and our

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

in highly year. well proven weathered for times. customers resilient and to has to This Forrester the four Chris. its changing technology and decades economic company of I its investors We The operation, forefront month of you, through many at important want our major remain XXth celebrating positioned for Forrester revolution. And support a has been Thank success. mission. Across is be continued has for their storms, thank Forrester’s uncertain business long-term employees, every

I back we to take operator will the to hand with the am call questions. now And that, going and

I comes Anja And Sidoti. from question ahead. show line our Instructions] Soderstrom of first from Please go [Operator the

Hi and my thank taking for you questions.

terms seeing dropping in see mostly of am are kind plans So of just What off? that first, curious the the you is you churn clients. I in

Yes, of really And Chris. within client be be grow that vendor plus it’s see discussed positive churn of on But and we to the Yes, larger clients of base and enterprise a value on as very growth continues as a go the from before. forward, small to percentage perspective, that continue the – FD a value that have business. FD, lot we on it platform. a client continues continue a to realizing the smaller that and we see in based as X we to churn, billion have lot

also yes, are to you And am I Okay. talking – sorry,

was bookings segment. that Carrie, is base Chris we than past And that FD the have about see $X company, targeted as and billion This do current mentioned. in talked client of I at in follow-up. plus going XX% we just to more a being FD

a of business very sort this have out So, of intentionally to that do. dynamics setting we shifting is the been

and more And young. larger cross-selling those you organizations? of up-selling have within kind like sounds that Okay, opportunities then

Correct.

Exactly.

still you. terms or…? hybrid of And are they Thank events, then in

again. Carrie is this are, They

to in-person and We offer both digital event. continue a

because a we I experienced this at And quickly, ability is to have that, member digital Decisions known well. And our so from digital point. both. think for clients our playbook an clients, we us tickets from as since that transitioned also to our as coming so, seeing know, do for you well have use of of member capability events, are ACC, Forrester attendance increased

the is do or And to are attendance you in-person remote going more people see the up to prompt event? go

actually we the in this post offer event ability to capability both, we a going bit. right. product is is audience. attend as be that up of back forum little very a sessions, you for call It box, what And of a also in and to are see which excited it’s a strong showing the us in-person expands rest mix world, of kind Folks the our

new got terms – to said of clarity are that in economic sales these enough? is customers. the Thank that you customers? seeing what among in you. we are longer of you up Are Okay. more or concerns constraints soak seeing cycle, terms Have And budgetary as seeing are you from quality, some you of some they that

Sure. Anja, is Thanks for question. Nate. this the

pipelines seeing are we grow, starting with more. are engage are to to us We customers seeing starting and really

the the managers the the are development how we account conversation couple that working upskilling and that the engage on second is are are and deals our sure right with little pipeline. to weeks that they half higher the the workshops, are so coming move really quicker focused giving of of account really and They responding right have can of through them, we the well we them. leaning activities next on the to. One that But in different on kind executives which they coaching over with to that, up to and sales place right is in getting in up opportunities make are engaging moving we Running better better things stack conversations are and and used them. are a bit into organization,

going a of But Anja, we bit on right definitely now. little feels unfreezing

Thank Okay. get for back into queue. will that. you I

Thanks Anja.

Thank you.

Barrington line you. Research. And Please our show from I Thank go comes from Vince the of next Colicchio ahead. question

value guys quarter. stabilized nice that assuming contract hello flattish the your Chris, QX and value gals. in to Yes, in the are stays It expectations, was contract and see QX? in you

Thanks Yes. the for Vince question.

past and macroeconomic product lumpy transition the bit especially a those actually through have the to FD, of to we But guide CV with light we So, ongoing little as we on metrics growth. as go we in be really backdrop. expect said the

a do CV with encouraged are the get And gives are few FD. will we our being by that continue a the sort for we the stabilization that very points, And about. positive metrics. Nate along product up transition we flat. meaningful to expect and feedback that that retention organization said, quarters, been have us overall his and get and client talking combined to down that further on but growth relatively as confidence of next we improvements CV few sales So, making we of down With growth turn be team this lot move

the And what down how number Could ending did force driving sales was bit. up? me of much was remind or you attrition quite that restructuring, pick was a that,

Yes.

No, again. That up. attrition Chris has is did it’s not really we Attrition quarter. did pick in the So, been from prior very low. stable and that restructuring the

Can selling see about you higher? the sales you organization we versus in success in this actual to And terms C-level more of did you at did was And And expected, Nate, were selling those too, expectations? think it? numbers talk good higher in in also chime maybe events the George it that hear in you or How – as those terms participation is perform about terms? of up. could here can quarter

Great question Vince.

I missed first the from engage, have the are it the little a engaging tell at more for little standpoint, a bit, might you I senior levels. But engaging On where Carrie. be one, events sales that better a may can we the at

the organization. value talked showing engage the that executives. the quarter, So, senior we there really executives throughout And those sponsored about with senior our of tons most turn, in earlier some big senior levels they the in win in of to us organization

higher, quarter return. better metrics, To-date, just something on tracking are And of on in doing, those blueprint be a of we activity the pretty lot we are see to our doing how for are getting a calling should calling where metrics us, able and because to training we the but aren’t well for and a put of the that. are rest see into And they in when the at that with systems, QX. organization our are next salespeople levels that we organization able end get is the that feedback should good we on to you So, you we follow. are it’s

I a bit can color… add of little

Go Yes. ahead.

deliberately prospects bigger To Majestic the right for getting our those focus is level. events event what the our C-level events prospects C-level attendees there call the which which at tighter events, we at playbook very to is a a program, we question raised at on get expectations with sales and to

there. So, that as program we higher hit and fact was had in because prior a hoped our we such than for But years. goals deliberate

metrics other C-level to seats that we have talk that about we particular. quarter-over-quarter. as account I is against in continues, but and FD expected penetration platform meant number goals are the rise And numbers, that the continues very tracking, can’t of has terms per as nicely, that to The and those of do in

Those are Thank good back into the go queue. data points. you. will I

Vince. Thanks

am At the further no questions turn Thank you. time, I over would showing to I the queue. to call like CFO back in this Chris Finn, for closing remarks.

you and follow-up weeks evening. have the this you to Ed want conversations or any days Please you very Thank if much. Morris ahead. questions for us Bryce out joining all Thank reach in

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

You may now disconnect.