Forrester Research Reports 2021 Second-Quarter Financial Results
Second-Quarter Financial Performance
Total revenues were
On a GAAP basis, net income was
On an adjusted basis, net income was
"Our laser focus on increasing contract value resulted in another strong quarter," said
"Our products and engagement model are resonating with clients, and we are confident that our new product portfolio, Forrester Decisions, will further accelerate our ability to deliver sustained double-digit contract value growth. Forrester Decisions brings together the vision and strategy of
As part of the company's pivot to contract value (CV) in 2021,
Third-Quarter 2021 (GAAP):
- Total revenues of approximately
$114.0 million to$118 .0 million. - Operating margin of approximately 1.0% to 3.0%.
- Interest expense of approximately
$1.0 million . - An effective tax rate of 31%.
- Earnings per share of approximately
$0 .01 to $0.07.
Third-Quarter 2021 (Adjusted):
Adjusted financial guidance for the third quarter of 2021 excludes stock-based compensation expense of
- Adjusted operating margin of approximately 6.0% to 8.0%.
- Adjusted effective tax rate of 31%.
- Adjusted diluted earnings per share of approximately
$0.22 to$0.28 .
Full-Year 2021 (GAAP):
- Total revenues of approximately $485.0 million to $495.0 million.
- Operating margin of approximately 6.0% to 7.0%.
- Interest expense of approximately $4.3 million.
- An effective tax rate of 31%.
- Earnings per share of approximately $0.85 to $0.95.
Full-Year 2021 (Adjusted):
Adjusted financial guidance for full-year 2021 excludes stock-based compensation expense of
- Adjusted operating margin of approximately 11.0% to 12.0%.
- Adjusted effective tax rate of 31%.
- Adjusted diluted earnings per share of approximately
$1 .75 to$1.85 .
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 |
Six Months Ended |
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|
|
|||||||
2021 |
2020 |
2021 |
2020 |
|||||
Revenues: |
||||||||
Research |
$ 81,002 |
$ 75,034 |
$ 155,970 |
$ 149,301 |
||||
Consulting |
40,960 |
33,475 |
79,510 |
65,463 |
||||
Events |
6,708 |
5,032 |
6,971 |
5,122 |
||||
Total revenues |
128,670 |
113,541 |
242,451 |
219,886 |
||||
Operating expenses: |
||||||||
Cost of services and fulfillment |
52,258 |
43,964 |
99,735 |
87,317 |
||||
Selling and marketing |
42,556 |
39,117 |
81,835 |
79,390 |
||||
General and administrative |
14,334 |
11,456 |
27,512 |
23,461 |
||||
Depreciation |
2,255 |
2,448 |
4,545 |
4,854 |
||||
Amortization of intangible assets |
3,968 |
4,713 |
7,871 |
9,425 |
||||
Integration costs |
216 |
612 |
334 |
3,487 |
||||
Total operating expenses |
115,587 |
102,310 |
221,832 |
207,934 |
||||
Income from operations |
13,083 |
11,231 |
20,619 |
11,952 |
||||
Interest expense |
(1,066) |
(1,307) |
(2,195) |
(2,845) |
||||
Other income (expense), net |
(201) |
(201) |
(671) |
109 |
||||
Gains on investments |
— |
2,352 |
— |
2,365 |
||||
Income before income taxes |
11,816 |
12,075 |
17,753 |
11,581 |
||||
Income tax expense |
3,473 |
238 |
5,454 |
257 |
||||
Net income |
$ 8,343 |
$ 11,837 |
$ 12,299 |
$ 11,324 |
||||
Basic income per common share |
$ 0.44 |
$ 0.63 |
$ 0.64 |
$ 0.60 |
||||
Diluted income per common share |
$ 0.43 |
$ 0.63 |
$ 0.64 |
$ 0.60 |
||||
Basic weighted average shares outstanding |
19,126 |
18,759 |
19,094 |
18,732 |
||||
Diluted weighted average shares outstanding |
19,377 |
18,831 |
19,332 |
18,828 |
||||
Adjusted data (1): |
||||||||
Total revenues - GAAP |
$ 128,670 |
$ 113,541 |
$ 242,451 |
$ 219,886 |
||||
Deferred revenue fair value adjustment |
— |
137 |
— |
322 |
||||
Adjusted revenues |
$ 128,670 |
$ 113,678 |
$ 242,451 |
$ 220,208 |
||||
Income from operations - GAAP |
$ 13,083 |
$ 11,231 |
$ 20,619 |
$ 11,952 |
||||
Deferred revenue fair value adjustment |
— |
137 |
— |
322 |
||||
Amortization of intangible assets |
3,968 |
4,713 |
7,871 |
9,425 |
||||
Integration costs |
216 |
612 |
334 |
3,487 |
||||
Stock-based compensation included in the |
||||||||
following expense categories: |
||||||||
Cost of services and fulfillment |
1,401 |
1,232 |
2,835 |
2,825 |
||||
Selling and marketing |
399 |
423 |
848 |
785 |
||||
General and administrative |
597 |
809 |
1,206 |
1,656 |
||||
Adjusted income from operations |
$ 19,664 |
$ 19,157 |
$ 33,713 |
$ 30,452 |
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Three Months Ended |
Six Months Ended |
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|
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2021 |
2020 |
2021 |
2020 |
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Amount |
Per Share |
Amount |
Per Share |
Amount |
Per Share |
Amount |
Per Share |
|||||||||
Net income - GAAP |
$ 8,343 |
$ 0.43 |
$ 11,837 |
$ 0.63 |
$ 12,299 |
$ 0.64 |
$ 11,324 |
$ 0.60 |
||||||||
Deferred revenue fair value adjustment |
— |
— |
137 |
0.01 |
— |
— |
322 |
0.02 |
||||||||
Amortization of intangible assets |
3,968 |
0.21 |
4,713 |
0.25 |
7,871 |
0.41 |
9,425 |
0.50 |
||||||||
Integration costs |
216 |
0.01 |
612 |
0.03 |
334 |
0.02 |
3,487 |
0.19 |
||||||||
Stock-based compensation |
2,397 |
0.12 |
2,464 |
0.13 |
4,889 |
0.25 |
5,266 |
0.28 |
||||||||
Gains on investments |
— |
— |
(2,352) |
(0.12) |
— |
— |
(2,365) |
(0.13) |
||||||||
Tax effects of items above (2) |
(1,768) |
(0.09) |
(2,441) |
(0.13) |
(3,415) |
(0.18) |
(5,153) |
(0.27) |
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Adjustment to tax expense for adjusted tax rate (3) |
(462) |
(0.02) |
(2,792) |
(0.15) |
(694) |
(0.04) |
(3,182) |
(0.17) |
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Adjusted net income |
$ 12,694 |
0.66 |
$ 12,178 |
$ 0.65 |
$ 21,284 |
1.10 |
$ 19,124 |
$ 1.02 |
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Diluted weighted average shares outstanding |
19,377 |
18,831 |
19,332 |
18,828 |
(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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|
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2021 |
2020 |
|||
Balance sheet data: |
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Cash and cash equivalents |
|
$ 90,257 |
||
Accounts receivable, net |
$ 63,397 |
$ 84,695 |
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Deferred revenue |
|
|
||
Debt outstanding |
|
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Six Months Ended |
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|
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2021 |
2020 |
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Cash flow data: |
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Net cash provided by operating activities |
$ 70,093 |
$ 25,002 |
||
Purchases of property and equipment |
$ (5,243) |
$ (5,110) |
||
Repayments of debt |
$ (6,250) |
|
||
Repurchases of common stock |
$ (2,673) |
$ — |
||
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 |
77% |
72% |
||
Wallet retention |
96% |
87% |
||
Number of clients |
2,940 |
2,760 |
||
As of |
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|
||||
2021 |
2020 |
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Headcount: |
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Total headcount |
1,719 |
1,843 |
||
Sales force |
638 |
719 |
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