Forrester Research Reports 2020 Third-Quarter Financial Results
Third-Quarter Financial Performance
Total revenues were
"Businesses are relying on
"Propelled by strong Q3 results and a healthy Q4 pipeline, we are increasing our full-year 2020 guidance for both revenue and EPS," continued Colony. "We are honored by the trust and confidence our clients have placed in
On a GAAP basis, net loss was
On an adjusted basis, net income was
Fourth-Quarter 2020 (GAAP):
- Total revenues of approximately
$108.0 million to$116.0 million . - Operating margin of approximately 3.5% to 5.5%.
- Interest expense of approximately
$1.2 million . - An effective tax rate of approximately 25%.
- Income per share of approximately
$0.11 to$0.18 .
Fourth-Quarter 2020 (Adjusted):
Adjusted financial guidance for the fourth quarter of 2020 excludes stock-based compensation expense of
- Adjusted operating margin of approximately 8.0% to 10.0%.
- Adjusted effective tax rate of 31%.
- Adjusted diluted earnings per share of approximately
$0.27 to$0.34 .
Our full-year 2020 guidance is as follows:
Full-Year 2020 (GAAP):
- Total revenues of approximately
$436.6 million to$444.6 million . - Operating margin of approximately 3.5% to 4.5%.
- Interest expense of approximately
$5.3 million . - An effective tax rate of approximately 26%.
- Income per share of approximately
$0.51 to$0.58 .
Full-Year 2020 (Adjusted):
Adjusted financial guidance for full-year 2020 excludes the reduction in revenue from the fair value adjustment of pre-acquisition deferred revenue of approximately
- Adjusted revenues of approximately
$437.0 million to$445.0 million . - Adjusted operating margin of approximately 10.5% to 11.5%.
- Adjusted effective tax rate of 31%.
- Adjusted diluted earnings per share of approximately
$1.53 to$1.60 .
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 Income |
||||||||
(Unaudited, In thousands, except per share data) |
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Three Months Ended |
Nine Months Ended |
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|
|
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2020 |
2019 |
2020 |
2019 |
|||||
Revenues: |
||||||||
Research |
$ 72,813 |
$ 74,548 |
$ 219,230 |
$ 219,436 |
||||
Consulting |
34,633 |
32,619 |
102,980 |
98,422 |
||||
Events |
1,131 |
1,429 |
6,253 |
19,570 |
||||
Total revenues |
108,577 |
108,596 |
328,463 |
337,428 |
||||
Operating expenses: |
||||||||
Cost of services and fulfillment |
46,125 |
44,929 |
133,442 |
146,610 |
||||
Selling and marketing |
42,209 |
41,605 |
121,599 |
127,655 |
||||
General and administrative |
12,475 |
13,533 |
35,936 |
39,944 |
||||
Depreciation |
2,544 |
2,121 |
7,398 |
6,310 |
||||
Amortization of intangible assets |
4,722 |
5,654 |
14,147 |
16,963 |
||||
Acquisition and integration costs |
328 |
2,394 |
3,815 |
7,848 |
||||
Total operating expenses |
108,403 |
110,236 |
316,337 |
345,330 |
||||
Income (loss) from operations |
174 |
(1,640) |
12,126 |
(7,902) |
||||
Interest expense |
(1,259) |
(1,904) |
(4,104) |
(6,341) |
||||
Other income (expense), net |
(274) |
127 |
(165) |
(229) |
||||
Gains (losses) on investments |
— |
(17) |
2,365 |
(61) |
||||
Income (loss) before income taxes |
(1,359) |
(3,434) |
10,222 |
(14,533) |
||||
Income tax expense (benefit) |
2,401 |
(735) |
2,658 |
(73) |
||||
Net income (loss) |
$ (3,760) |
$ (2,699) |
$ 7,564 |
$ (14,460) |
||||
Basic income (loss) per common share |
$ (0.20) |
$ (0.15) |
$ 0.40 |
$ (0.78) |
||||
Diluted income (loss) per common share |
$ (0.20) |
$ (0.15) |
$ 0.40 |
$ (0.78) |
||||
Basic weighted average shares outstanding |
18,872 |
18,546 |
18,779 |
18,448 |
||||
Diluted weighted average shares outstanding |
18,872 |
18,546 |
18,873 |
18,448 |
||||
Adjusted data (1): |
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Total revenues - GAAP |
$ 108,577 |
$ 108,596 |
$ 328,463 |
$ 337,428 |
||||
Deferred revenue fair value adjustment |
80 |
1,657 |
402 |
10,467 |
||||
Adjusted revenues |
$ 108,657 |
$ 110,253 |
$ 328,865 |
$ 347,895 |
||||
Income (loss) from operations - GAAP |
$ 174 |
$ (1,640) |
$ 12,126 |
$ (7,902) |
||||
Deferred revenue fair value adjustment |
80 |
1,657 |
402 |
10,467 |
||||
Amortization of intangible assets |
4,722 |
5,654 |
14,147 |
16,963 |
||||
Acquisition and integration costs |
328 |
2,394 |
3,815 |
7,848 |
||||
Lease incentive |
219 |
— |
219 |
— |
||||
Stock-based compensation included in the |
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following expense categories: |
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Cost of services and fulfillment |
1,638 |
1,782 |
4,463 |
4,812 |
||||
Selling and marketing |
446 |
441 |
1,231 |
1,366 |
||||
General and administrative |
614 |
849 |
2,270 |
2,427 |
||||
Adjusted income from operations |
$ 8,221 |
$ 11,137 |
$ 38,673 |
$ 35,981 |
Three Months Ended |
Nine Months Ended |
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|
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2020 |
2019 |
2020 |
2019 |
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Amount |
Per Share |
Amount |
Per Share |
Amount |
Per Share |
Amount |
Per Share |
|||||||||
Net income (loss) - GAAP |
$ (3,760) |
$ (0.20) |
$ (2,699) |
$ (0.15) |
$ 7,564 |
$ 0.40 |
$ (14,460) |
$ (0.78) |
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Effect on GAAP net loss of diluted shares |
— |
0.01 |
— |
0.01 |
||||||||||||
Deferred revenue fair value adjustment |
80 |
— |
1,657 |
0.09 |
402 |
0.02 |
10,467 |
0.56 |
||||||||
Amortization of intangible assets |
4,722 |
0.26 |
5,654 |
0.30 |
14,147 |
0.76 |
16,963 |
0.90 |
||||||||
Acquisition and integration costs |
328 |
0.02 |
2,394 |
0.13 |
3,815 |
0.20 |
7,848 |
0.42 |
||||||||
Lease incentive |
219 |
0.01 |
— |
— |
219 |
0.01 |
— |
— |
||||||||
Stock-based compensation |
2,698 |
0.14 |
3,072 |
0.16 |
7,964 |
0.42 |
8,605 |
0.46 |
||||||||
(Gains) losses on investments |
— |
— |
17 |
— |
(2,365) |
(0.13) |
61 |
— |
||||||||
Tax effects of items above (2) |
(1,828) |
(0.10) |
(3,128) |
(0.17) |
(6,980) |
(0.37) |
(10,896) |
(0.58) |
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Adjustment to tax expense for adjusted tax rate (3) |
2,156 |
0.11 |
(509) |
(0.03) |
(1,027) |
(0.05) |
1,706 |
0.09 |
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Adjusted net income |
$ 4,615 |
0.24 |
$ 6,458 |
$ 0.34 |
$ 23,739 |
1.26 |
$ 20,294 |
$ 1.08 |
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Diluted weighted average shares outstanding |
18,963 |
18,727 |
18,873 |
18,732 |
(1) |
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(2) The tax effect of adjusting items is based on the accounting treatment and rate for the jurisdiction of each item. |
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(3) To compute adjusted net income, we apply an adjusted 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 |
$ 73,027 |
$ 67,904 |
||
Accounts receivable, net |
$ 54,141 |
$ 84,605 |
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Deferred revenue |
$ 155,418 |
$ 179,194 |
||
Debt outstanding |
$ 111,719 |
$ 132,750 |
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Nine Months Ended |
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2020 |
2019 |
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Cash flow data: |
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Net cash provided by operating activities |
$ 29,199 |
$ 45,622 |
||
Purchases of property and equipment |
$ (7,279) |
$ (8,362) |
||
Cash paid for acquisitions |
$ — |
$ (237,684) |
||
Repayments of debt |
$ (21,031) |
$ (40,688) |
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As of |
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2020 |
2019 |
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Metrics: |
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Agreement value |
$ 337,900 |
$ 355,200 |
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Client retention |
65% |
73% |
||
Dollar retention |
88% |
90% |
||
Enrichment |
98% |
111% |
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Number of clients |
2,660 |
2,867 |
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As of |
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2020 |
2019 |
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Headcount: |
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Total headcount |
1,823 |
1,785 |
||
Products and advisory services staff |
716 |
673 |
||
Sales force |
716 |
699 |
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