Forrester Research Reports 2021 First-Quarter Financial Results
First-Quarter Financial Performance
Total revenues were
On a GAAP basis, net income was
On an adjusted basis, net income was
"We significantly beat our Q1 expectations for revenue, operating margin, and earnings per share and generated record quarterly cash flow," said
"We played offense in 2020, investing and preparing the company for recovery and positioning it to grow contract value bookings by double-digit rates. To that end, I am excited to announce the launch of Forrester Decisions, a premium portfolio of 15 new research services designed to help our clients shorten the distance between a bold vision of the future and superior business impact. The pandemic has driven customer behavior changes, and companies must now be all-in on digital. The Forrester Decisions product portfolio will help businesses navigate these changes. I expect the new product to drive
As part of the company's pivot to contract value (CV) in 2021,
Second-Quarter 2021 (GAAP):
- Total revenues of approximately
$120.0 million to$124.0 million . - Operating margin of approximately 8.0% to 10.0%.
- Interest expense of approximately
$1.1 million . - An effective tax rate of 32%.
- Earnings per share of approximately
$0.28 to$0.34 .
Second-Quarter 2021 (Adjusted):
Adjusted financial guidance for the second quarter of 2021 excludes stock-based compensation expense of
- Adjusted operating margin of approximately 13.0% to 15.0%.
- Adjusted effective tax rate of 31%.
- Adjusted diluted earnings per share of approximately
$0.52 to$0.58 .
Full-Year 2021 (GAAP):
- Total revenues of approximately
$473.0 million to$483.0 million . - Operating margin of approximately 4.5% to 5.5%.
- Interest expense of approximately
$4.3 million . - An effective tax rate of 32%.
- Earnings per share of approximately
$0.66 to$0.76 .
Full-Year 2021 (Adjusted):
Adjusted financial guidance for full-year 2021 excludes stock-based compensation expense of
- Adjusted operating margin of approximately 10.0% to 11.0%.
- Adjusted effective tax rate of 31%.
- Adjusted diluted earnings per share of approximately
$1.58 to$1.68 .
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 consolidated statements of operations and the table of key financial data are attached.
Contact:
Interim Chief Financial Officer and Treasurer
+1 617-613-6060
schouinard@forrester.com
Public Relations
+1 617-613-6805
sagarwal@forrester.com
© 2021,
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Consolidated Statements of Income |
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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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2021 |
2020 |
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Revenues: |
||||
Research |
$ 74,968 |
$ 74,267 |
||
Consulting |
38,550 |
31,988 |
||
Events |
263 |
90 |
||
Total revenues |
113,781 |
106,345 |
||
Operating expenses: |
||||
Cost of services and fulfillment |
47,477 |
43,353 |
||
Selling and marketing |
39,279 |
40,273 |
||
General and administrative |
13,178 |
12,005 |
||
Depreciation |
2,290 |
2,406 |
||
Amortization of intangible assets |
3,903 |
4,712 |
||
Integration costs |
118 |
2,875 |
||
Total operating expenses |
106,245 |
105,624 |
||
Income from operations |
7,536 |
721 |
||
Interest expense |
(1,129) |
(1,538) |
||
Other income (expense), net |
(470) |
310 |
||
Gains on investments |
— |
13 |
||
Income (loss) before income taxes |
5,937 |
(494) |
||
Income tax expense |
1,981 |
19 |
||
Net income (loss) |
$ 3,956 |
$ (513) |
||
Basic income (loss) per common share |
$ 0.21 |
$ (0.03) |
||
Diluted income (loss) per common share |
$ 0.21 |
$ (0.03) |
||
Basic weighted average shares outstanding |
19,061 |
18,705 |
||
Diluted weighted average shares outstanding |
19,288 |
18,705 |
||
Adjusted data (1): |
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Total revenues - GAAP |
|
|
||
Deferred revenue fair value adjustment |
— |
185 |
||
Adjusted revenues |
|
|
||
Income from operations - GAAP |
$ 7,536 |
$ 721 |
||
Deferred revenue fair value adjustment |
— |
185 |
||
Amortization of intangible assets |
3,903 |
4,712 |
||
Integration costs |
118 |
2,875 |
||
Stock-based compensation included in the |
||||
following expense categories: |
||||
Cost of services and fulfillment |
1,435 |
1,593 |
||
Selling and marketing |
449 |
362 |
||
General and administrative |
608 |
847 |
||
Adjusted income from operations |
$ 14,049 |
$ 11,295 |
Three Months Ended |
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|
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2021 |
2020 |
|||||||
Amount |
Per Share |
Amount |
Per Share |
|||||
Net income (loss) - GAAP |
|
$ 0.21 |
$ (513) |
$ (0.03) |
||||
Effect on GAAP net loss of diluted shares |
— |
— |
||||||
Deferred revenue fair value adjustment |
— |
— |
185 |
0.01 |
||||
Amortization of intangible assets |
3,903 |
0.20 |
4,712 |
0.25 |
||||
Integration costs |
118 |
0.01 |
2,875 |
0.15 |
||||
Stock-based compensation |
2,492 |
0.13 |
2,802 |
0.15 |
||||
Gains on investments |
— |
— |
(13) |
— |
||||
Tax effects of items above (2) |
(1,647) |
(0.09) |
(2,712) |
(0.14) |
||||
Adjustment to tax expense for adjusted tax rate (3) |
(231) |
(0.01) |
(390) |
(0.02) |
||||
Adjusted net income |
|
$ 0.45 |
|
$ 0.37 |
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Diluted weighted average shares outstanding |
19,288 |
18,826 |
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(1) |
(2) The tax effect of adjusting items is based on the accounting treatment and rate for the jurisdiction of each item. |
(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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|
|
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2021 |
2020 |
|||
Balance sheet data: |
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Cash and cash equivalents |
|
$ 90,257 |
||
Accounts receivable, net |
$ 68,822 |
$ 84,695 |
||
Deferred revenue |
|
|
||
Debt outstanding |
|
|
||
|
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2021 |
2020 |
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Cash flow data: |
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Net cash provided by operating activities |
$ 40,551 |
$ 21,823 |
||
Purchases of property and equipment |
$ (1,468) |
$ (2,401) |
||
Repayments of debt |
$ (3,125) |
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As of |
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|
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2021 |
2020 |
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Metrics: |
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Contract value |
|
|
||
Client retention |
75% |
74% |
||
Wallet retention |
89% |
90% |
||
Number of clients |
2,907 |
2,835 |
||
As of |
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|
||||
2021 |
2020 |
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Headcount: |
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Total headcount |
1,749 |
1,794 |
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Sales force |
662 |
684 |
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