Forrester Research Reports 2020 First-Quarter Financial Results
First-Quarter Financial Performance
Total revenues were
"
"Looking ahead to 2021 and beyond, we believe
On a GAAP basis, net loss was
On a pro forma basis, net income was
"We ended Q1 with nearly
Second-Quarter 2020 (GAAP):
- Total revenues of approximately
$103 .0 million to$108 .0 million. - Operating margin of approximately 1.0% to 3.0%.
- Interest expense of approximately
$1.3 million . - An effective tax rate of 10% to 15%.
- Income (loss) per share of approximately $(0.01) to $0.07.
Second-Quarter 2020 (Pro Forma):
Pro forma financial guidance for the second quarter of 2020 excludes the reduction in revenue from the fair value adjustment of pre-acquisition deferred revenue of approximately
- Pro forma operating margin of approximately 8.0% to 10.0%.
- Pro forma effective tax rate of 31%.
- Pro forma diluted earnings per share of approximately
$0.26 to$0.34 .
Our full-year 2020 guidance is as follows:
Full-Year 2020 (GAAP):
- Total revenues of approximately
$410 .0 million to $430.0 million. - Operating margin of approximately (1.0) % to 1.0%.
- Interest expense of approximately
$5.6 million . - An effective tax rate of 10% to 15%.
- Loss per share of approximately $(0.37) to $(0.07).
Full-Year 2020 (Pro Forma):
Pro forma financial guidance for full-year 2020 excludes the reduction in revenue from the fair value adjustment of pre-acquisition deferred revenue of approximately
- Pro forma operating margin of approximately 7.0% to 9.0%.
- Pro forma effective tax rate of 31%.
- Pro forma diluted earnings per share of approximately
$0.90 to$1.20 .
About
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, the anticipated impact of COVID-19 on
The consolidated statements of operations and the table of key financial data are attached.
Contact:
Chief Financial Officer
+1 617-613-6000
mdoyle@forrester.com
Public Relations
+1 617-613-6805
sagarwal@forrester.com
© 2020,
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Consolidated Statements of Operations |
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(Unaudited, In thousands, except per share data) |
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Three Months Ended |
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|
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2020 |
2019 |
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Revenues: |
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Research services |
$ 72,796 |
$ 68,609 |
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Advisory services and events |
33,549 |
32,040 |
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Total revenues |
106,345 |
100,649 |
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Operating expenses: |
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Cost of services and fulfillment |
43,353 |
45,110 |
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Selling and marketing |
40,273 |
42,033 |
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General and administrative |
12,005 |
13,190 |
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Depreciation |
2,406 |
2,023 |
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Amortization of intangible assets |
4,712 |
6,210 |
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Acquisition and integration costs |
2,875 |
2,967 |
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Total operating expenses |
105,624 |
111,533 |
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Income (loss) from operations |
721 |
(10,884) |
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Interest expense |
(1,538) |
(2,352) |
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Other income (expense), net |
310 |
(270) |
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Gains (losses) on investments |
13 |
(36) |
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Loss before income taxes |
(494) |
(13,542) |
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Income tax expense (benefit) |
19 |
(226) |
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Net loss |
$ (513) |
$ (13,316) |
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Basic loss per common share |
$ (0.03) |
$ (0.73) |
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Diluted loss per common share |
$ (0.03) |
$ (0.73) |
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Basic weighted average shares outstanding |
18,705 |
18,363 |
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Diluted weighted average shares outstanding |
18,705 |
18,363 |
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Pro forma data (1): |
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GAAP total revenues |
$ 106,345 |
$ 100,649 |
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Deferred revenue fair value adjustment |
185 |
3,905 |
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Pro forma revenues |
$ 106,530 |
$ 104,554 |
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Income (loss) from operations |
$ 721 |
$ (10,884) |
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Amortization of intangible assets |
4,712 |
6,210 |
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Deferred revenue fair value adjustment |
185 |
3,905 |
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Acquisition and integration costs |
2,875 |
2,967 |
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Stock-based compensation included in the |
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following expense categories: |
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Cost of services and fulfillment |
1,593 |
1,463 |
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Selling and marketing |
362 |
440 |
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General and administrative |
847 |
782 |
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Pro forma income from operations |
11,295 |
4,883 |
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Interest expense |
(1,538) |
(2,352) |
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Other income (expense), net |
310 |
(270) |
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Pro forma income before income taxes |
10,067 |
2,261 |
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Income tax expense (benefit) GAAP |
19 |
(226) |
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Tax effects of pro forma items (2) |
2,712 |
3,897 |
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Adjustment to tax expense to reflect pro forma tax rate (3) |
390 |
(2,970) |
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Pro forma net income |
$ 6,946 |
$ 1,560 |
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Pro forma diluted income per share |
$ 0.37 |
$ 0.08 |
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Pro forma diluted weighted average shares outstanding |
18,826 |
18,651 |
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(1) |
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comparable information to aid in the understanding of |
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used by |
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amortization of acquisition-related intangible assets, acquisition-related deferred revenue fair value |
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adjustments, stock-based compensation, acquisition and integration costs, net gains or losses |
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from investments, as well as their related tax effects. We also utilized an assumed tax rate of 31% |
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in both 2020 and 2019, which excludes items such as any release of reserves for uncertain tax |
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positions established in prior years, the settlement of prior year tax audits, and the effect of any |
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adjustments related to the filing of prior year tax returns. The pro forma data does not purport to be |
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prepared in accordance with Accounting Principles Generally Accepted in the United States. |
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(2) The tax effect of adjusting items is based on the accounting treatment and rate for the |
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jurisdiction of each item. |
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(3) To compute pro forma net income, we apply a pro forma effective tax rate of 31%. |
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Key Financial Data |
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(Unaudited, dollars in thousands) |
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2020 |
2019 |
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Balance sheet data: |
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Cash and cash equivalents |
$ 69,815 |
$ 67,904 |
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Accounts receivable, net |
$ 59,505 |
$ 84,605 |
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Deferred revenue |
$ 195,399 |
$ 179,194 |
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Debt outstanding |
$ 116,406 |
$ 132,750 |
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2020 |
2019 |
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Cash flow data: |
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Net cash provided by operating activities |
$ 21,823 |
$ 25,988 |
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Purchases of property and equipment |
$ (2,401) |
$ (2,772) |
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Cash paid for acquisitions |
$ — |
$ (238,943) |
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Repayments of debt |
$ (16,344) |
$ (21,563) |
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As of |
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2020 |
2019 |
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Metrics: |
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Agreement value |
$ 354,900 |
$ 345,300 |
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Client retention |
69% |
72% |
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Dollar retention |
89% |
90% |
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Enrichment |
102% |
106% |
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Number of clients |
2,805 |
2,850 |
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As of |
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2020 |
2019 |
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Headcount: |
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Total headcount |
1,794 |
1,779 |
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Products and advisory services staff |
710 |
664 |
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Sales force |
684 |
694 |
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