Forrester Research (FORR) 5 Nov 242024 Q3 Earnings call transcript

Good afternoon, and thank you for standing by. Welcome to Forrester's Third Quarter 2024 Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to turn the conference over to Vice President of Corporate Development and Investor Relations, Ed Bryce Morris. Please go ahead.

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

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

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

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

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

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

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

adjusted of excluded these release. in the results our list find press detail items can You from

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much to I will Forrester's us now with over Finn, for being And turn Chris the very call this you afternoon. CFO. Thank Chris?

Thanks, George, and good afternoon, everyone.

performed we and third bookings of delivered flat results, CV guidance on our below bookings we to Forrester Our margin believe the a in fourth quarter EPS Decisions largest could maintaining range are slightly track. although and stabilize migration remains plan, continuing revenue stable and period, our end down. CV is quarter and mixed to year. metrics are our the for The Retention is

$X feedback product and noncore from Furthermore, we retained cash business. Decisions focus growth FeedbackNow third the in years our million In on quarter. quarter during that platform. a in was the XXXX. X FeedbackNow received the a a sale $X customer line product was addition, a equity new for stand-alone in real-time due Forrester small divested and in note we is in ago acquired million considered through the driving stake We we that the

have Although this historical metrics product today line and metrics going comparability CV, recast of and count discussed portion retention reflect CV material our update. client this forward, business, better the for the a we was not

QX. X% with XX% QX the quarter. in to decreased in to Overall, $XXX.X prior par X% compared declined decline million CV the on revenue

in million compared to period. For million the generated company, $XXX.X the $XXX.X year revenue prior total we in

terms reprint compared decreased coupled products. slightly subscription the QX our was to third our the our XX%, up to In quarter retention down XX%, from and research retention flat compared quarter, with smaller what X% was our of products, and to for declines Research and client in X%, discontinued of revenue QX. revenues Overall with revenue breakdown XXXX,

client XX% the XX% specific and quarter. slightly, flat Decisions versus second were watt Forrester and While of respectively, retention down retention of

metrics As we XXXX, into improve Forrester to in complete migration retention slowly expect the we XXXX. Decisions

client client continues the prior grow. quarter, overall count down Although count from Decisions to Forrester is

Forrester client the we of retention have on remain plan, million by our Forrester overall XX% retention on Decisions We total client CV well X track approximately for and above platform. migration of or approximately $XXX remains now CV Decisions points.

CV targeting of products. total CV greater being The Forrester X% research remaining year-end. legacy our of are represents CV Decisions primarily XX% our remaining on products, than with We reprint approximately along at

the business which $XX.X Consulting was year. down prior to of revenues XX% Our posted compared million,

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well as $X.X decline XXXX. by events event part merge And the in one push third the revenue a of held QX. quarter the of as our finally, a quarter to third regarding decrease to business, posted revenues representing compared million, in The of driven our XX% of single decision events and we into was another event event X into in

to are we event softness and However, with which sponsorship attendance, continue see we mitigate. to working

third and down on quarter, driven in basis, primarily X%, by X% XXXX. our lower the we an specifically the costs, P&L Continuing to related on period for adjusted headcount, quarter third compared down expenses the for were by decreased same compensation operating

headcount continue or $X.X XX.X% XX% the very hiring revenue of closely. current in We quarter in income revenue or to of the to monitor and million XXXX. by third million Operating quarter to compared X% of decreased attrition $XX.X

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was of as This severance $X impacted incurred the as as settlement approximately $X.X of year-to-date in flow activities structure, the intact. operating $XXX.X year. million cash repurchase We and worth the during expenditures quarter. million were we year We cash stock in capital by our $XX had leaves repurchased were exited quarter. capital the the of our Cash earlier investments authorization the million at million payments negatively negative approximately shares payment of from and Looking $X million. litigation well

XXXX earlier, unchanged. guidance for is As noted

decline a business a events $XXX me year. commentary is Revenue our the still a of for for additional business million. let low the to So range outlook of provide mid-single-digit XXs in on the be in and to $XXX business expected This decline, some to decline guidance remainder the the be the the low million in year. consulting the XXs in in our Research assumes

continuing million earnings Operating range for rate $X.XX. to Taking are full to the to margins into we guide in $X all year we to to expected expense account, X.X% in range per approximately the share this still X.X%. are and be to maintaining of are tax approximately year, is of $X.XX be Interest of XX%. expected a the

a finish We set expected, troubled focused year amid we with a XXXX year of be strong positive migration for the as Decisions journey challenging to As proved Forrester has remain to the macroeconomic the on a multiyear a environment. QX up us XXXX. performance finishing

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

Thank you, Chris.

report glad focused make We using As booked XX% push is at on for you of final our the a legacy transitioning busy close Decisions. strong entire time company is to to know, I'm our to and QX the platform a the in quarter XXXX over to on Forrester. build to clients business quarter. that Forrester the very

Thank and I questions back the on to for and for call you will answers. being turn operator call, now the the

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

health start on I kind below to of bookings CV were broadly. bit asking It sounds like end a market wanted plan. by

Just curious anything if an you'd execution maybe point from start that to, an end market if that's issue, there? standpoint primarily we there's

Nate Thanks It's Andrew. the Sure, Swan. question. for

be. good not based made thought standpoint. we like bookings weakness We've the group we're sectors, one as So we should on some some in had feel as particular performances executing actually saw QX actually really several slight that we across where forecast and we for track we well changes and group were and necessarily in from a on

pretty and with we're comfortable Chris are think headed I where I to.

some happen we're progress all same So seeing at good the really progress. exact doesn't time. It's

still are feel we like we track. So on

in a you clients maybe early to seen kind And a have of in do what you've couple bigger just what then 'XX or from sense of maybe of Great. picture an sense level, look your of budgets past the compared years?

Johnson. it's Carrie Sure. Andrew,

to nicely is also and seeing and we which the course, increasing our executives right according strategy tech the both their we are plays that which teams, from in growth technology now. actually know in to, are is our here biggest we're and of most are XXXX, We research Forrester's seeing, with what where, budgets very fact, opportunity

read. So the that's early

stabilizing. world is feels Also like the vendor

X the tech is last you As know, in the feels It that months. million in there in about have layoffs stabilizing. XX like U.S. been world

answer and know or I on Great. And of then different about to maybe if George, of free the basis. a if place give I platforms top of harder of I environment could data just there's multiyear ask you've one you -- maybe ask But make more that for different these what's just any you are are other for guess, wanted to motions about very Nate very you feel execution. and all it you kind more these challenging? kind there's kind sounds working Does as traction that implemented, for color it in the that's well. confident of or it procedures all to feel could in not? X on X what's an metrics a measure mind top little you how those go-to-market And bit things

Great question. sure. Yes,

We organization. look executing we areas. Forrester. referred that progress life involved what out quarter-over-quarter at retention pipelines. look across our That's sales in newer are we how at look we So various our retention, to really really in the a for of of a we're We at cycle. as at variety look And motion our George our components rolling

And it is and like been they look organized working Number from we're with we've stakeholders one, happening and sales a right the in definitely our as good they ways. getting as right I really the at those gaps happening. helps some well really, we're as teams have and like on we time. they are way really as but are while quickly. we happening? not tasks may to, clients feedback couple stay internal that of as our gaps frequently it track it things, how finding them They're them with would how identifying And at our Both both customer it's the in at So happening, anecdotal success are Forrester.

are lot say I a for overall, for would message of So the motions folks is new and new these clients. Forrester our

Our clients stakeholders are ecosystem We're our the organization. across support Forrester responding well. from and really getting great

our understand working really community us So help at in leaning what's our analyst clients. to

there. look from see we'll results then doing And retention see we'll so at the look and execution we're and fall the how and at well where metrics

mean rolling And we would I just And analyze we that got of Yes. looked as we QX. It's close quota-bearing they the and But have per early opportunities. in days, opportunities to Andrew. those closer were began headcount. looking solid $XXX,XXX bit little a we're still at for pipe to wanted. then not as

of crank the closely we're Med make of the that's a $XXX,XXX So to -- and is to turn is PIC actually viable. strong all using called opportunities methodology next examine very is pipe sure the to the

and systems the feeling and systems . being progress. are So the place good are to about in work, the we're

this remarks mentioned -- not year-over-year. is forward. the plan This going changing George we Yes, -- is we feel and the prerecorded as quarter-over-quarter, in that

that direction. this the We organization the year at new beginning things are X of in on and different a organization rest to we're is sales going add not knows going plan. the we're -- what say following next knows doing. And that of this the We're

lot high sure cycle. you run sales retention execute have and the have methodology activities, our We to our plan. a use expecting We're make of life call

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

for revenue growth next for how we think the guidance should contract the bookings, value year? about With new the

it's Chris. Anja,

conferences? -- Sorry, do you the say on

value. contract a On

next contract, sure. year, yes, for On Yes. yes,

bookings on us. as for a outlook necessarily not we're December largest year. far, bookings by Forrester 'XX call. I providing the you So largest is, of know, quarter mean, the the month

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October, in great next into looked really tell more get going October in I February. on year. So sales confident. year results detail stabilization concerned, in year you then the growth the improve hit can to is But revenue big and us. significant quarter our But in revenue to organization seeing through don't 'XX, have say will And plan as quarter. a I obviously, call this well. ramp the which bookings we're get was for in we we're I'd material We a I provide through maintaining how on sign. the I our just certainly about based big in positive is this front then This that quarter. the that we'll expect of think We And us. just double-digit for Nate -- talked about outlook feel the from the declines as pretty November, think pipeline 'XX. December landing in building. got we're we've and And on a far

we'll sort through of for year. have next period, just rest kind see the detailed get a guide that's we performance and a But we then of the we and then So direction. next more general, general as give CV of I of in see year ramp what for to revenue how sense

with think go up? shedding you sort and do count clients, open And will smaller the we client be Okay. that, done of when will seeing you start the

Yes, and it's you, and want I'll Chris start in to Nate. Carrie might maybe jump on

buying it much gone most We've There's we will through there's smaller continue client we a to there's that from smaller. smaller migration really the expect targeting -- So impact then group, and for be and a are as we're in things. no journey opportunity the that specific us. longer of seeing X XXXX, the

less less we're and So seeing impact.

well that Our market. feel year tech this actually in that tech group is the leadership with considered emerging team things in all very is doing. performing confident We team and pretty what

is So a I and through going feel going on be been the really of good like team next roughest with. be we're trajectory, you've to that year, to

as million $XX emerging group sales sells to size. Anja, Yes. tech vendors in the know, you over

So million $XX we're not point. playing this below at

than going sub-XX. of just going going the the to XX% year, juncture, we're to this I the add I mean was at be on exit to that's overall less base.

And the trained? helpful. was Or like where -- of up? is? fully So when that it are in just and your is That how up Or running? being terms team, then team they feel sales Okay. sales still you do picked

Yes. question, Anja. Great

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leaning they're so And really do that. to in

line Colicchio from Research. question And I show Vincent the Barrington our from next comes of

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good. feel So I

quarter. was And clear, small then that the decline in clients high clients? to be relatively this Was

Vincent. Chris. is Yes, This

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yes. Yes,

sense, Does make that Vincent?

yes, Yes, yes.

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continual our client But hear to But most connected we important job demonstrating hear value we're we do we in have. that so a back. is sales when to easy pushback we push common know for challenge. an as a -- hear is better certainly, budget those to budget budget that if -- most a challenge need that we initiatives a way clients The

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That to turn would for concludes Q&A time, session. closing like back Finn, the Chris to CFO, this our At conference remarks. I

for Thanks everyone. follow-up call Morris. today, myself Ed Any questions, Yes. us joining Thank or please Bryce you.

very you Thank much.

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

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