NASDAQ$FORR

Forrester Research Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Forrester's third quarter results for 2022 were announced, with revenue and contract value growth driving the results and guidance raised for the balance of the year.

Forrester Research reported solid financial results for Q3 2022, driven by a 7% increase in contract value and an 8% increase in revenue. The company's GAAP EPS was $0.28, and adjusted EPS was $0.57. Due to these results and effective cost management, Forrester is raising its guidance for the remainder of the year.

  • Total contract value increased by 7% year-over-year to $353 million.
  • Total revenues for the third quarter of 2022 were $127.7 million, compared to $118.1 million in 2021.
  • GAAP net income was $5.4 million, or $0.28 per diluted share, for Q3 2022, compared to $4.5 million, or $0.23 per diluted share, for the same period in 2021.
  • Adjusted net income was $10.9 million, or $0.57 per diluted share, for Q3 2022.

Headline financials

Total Revenue

$128M

Previous: $118M+8.1%
EPS (adj)

$0.57

Previous: $0.41+39.0%
Contract value

$353M

Previous: $331M+6.6%
Client retention

75.0%

Previous: 78.0%-3.8%
Wallet retention

97.0%

Previous: 99.0%-2.0%
Number of clients

2.9K

Previous: 3.0K-3.0%
Capital Expenditures

-$4.23M

Previous: -$9.85M+57.1%
Free Cash Flow

$1.19M

Previous: -$5.32M+122.3%
Net Income

$5.41M

Previous: $4.52M+19.7%
Operating Income

$8.56M

Previous: $6.54M+30.9%
Gross Profit

$76.5M

Previous: $74.5M+2.7%
Cash & Equivalents

$98.7M

Previous: $129M-23.7%
Total Assets

$585M

Previous: $655M-10.6%
Stock-Based Comp

$3.91M

Previous: $2.46M+58.6%

Revenue & EPS history

Forrester · Revenue · Quarterly

$128M

Q3 2022+8.1%vs Q3 2021
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Revenue by segment

Forrester · $128M total across 3 segments · Q3 2022

  • Research
    $87M+9.0%
  • Consulting
    $37.4M-0.0%
  • Events
    $3.26M+275.9%

Forward guidance

Forrester provided financial guidance for the fourth quarter and full year of 2022.

Tailwinds

  • Total revenues of approximately $134 million to $144 million for Q4 2022.
  • Operating margin of approximately 1.0% to 3.0% for Q4 2022.
  • Adjusted operating margin of approximately 6.0% to 8.0% for Q4 2022.
  • Total revenues of approximately $535 million to $545 million for full year 2022.
  • Operating margin of approximately 7.0% to 8.0% for full year 2022.

Headwinds

  • Interest expense of approximately $0.7 million for Q4 2022.
  • An effective tax rate of approximately 32% for Q4 2022.
  • Earnings per share of approximately $0.03 to $0.13 for Q4 2022.
  • Interest expense of approximately $2.5 million for full year 2022.
  • An effective tax rate of approximately 32% for full year 2022.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2022

Historical avgQ3 2022

-2.0%

Avg return

Earnings day

-3.2%

Avg return

5 days after

-1.7%

Avg return

30 days after

38%

25 / 65 earnings

Positive

+8.9%

Q3 2024

Best reaction

-16.0%

Q4 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.9%+4.3%+14.9%
Q4 2025-9.7%-7.1%-3.9%
Q3 2025+2.9%+0.1%-12.5%
Q1 2025+3.7%+7.6%+9.9%
Q4 2024-12.1%-12.5%-33.0%
Q3 2024+8.9%+10.6%+15.0%
Q2 2024+6.6%+0.5%+1.5%
Q1 2024-6.8%-3.7%-2.5%
Q4 2023-8.1%-14.2%-12.4%
Q3 2023-4.2%-11.6%-3.0%
Q2 2023+1.0%+3.2%-1.1%
Q1 2023-15.8%-14.7%-0.3%
Q4 2022-16.0%-13.5%-15.9%
Q3 2022-15.8%-20.4%-14.2%
Q2 2022-7.3%-7.1%-16.7%
Q1 2022-2.9%-8.5%-7.5%
Q4 2021-3.8%-2.2%-6.3%
Q3 2021+5.4%+9.1%+5.4%
Q2 2021+5.4%-1.3%+3.9%
Q1 2021+4.3%+3.5%-4.1%
Q4 2020-3.8%-4.4%+0.7%
Q3 2020+3.0%+9.0%+20.6%
Q2 2020+7.6%+9.2%+10.5%
Q1 2020+3.5%-10.8%+13.1%
Q4 2019-2.4%-4.9%-31.6%
Q3 2019-1.0%-1.2%+9.8%
Q2 2019-13.9%-21.7%-29.2%
Q1 2019-1.0%+1.6%-9.9%
Q4 2018+1.4%+4.2%+6.5%
Q3 2018-7.3%-4.3%+7.3%
Q2 2018-0.9%+2.8%+14.2%
Q1 2018-10.0%-10.2%-7.6%
Q4 2017-3.7%-5.8%+0.2%
Q3 2017+0.5%-0.8%+6.3%
Q2 2017-1.4%-1.6%-2.1%
Q1 2017-1.0%-2.0%-3.2%
Q4 2016-12.3%-10.8%-8.2%
Q3 2016-3.6%+0.4%+10.5%
Q2 2016+8.1%+5.8%+8.2%
Q1 2016-4.3%
Q4 2015+2.3%
Q3 2015+3.3%
Q2 2015-5.3%
Q1 2015-4.2%
Q4 2014+0.3%
Q3 2014-3.1%
Q2 2014+0.4%
Q1 2014+5.9%
Q4 2013-2.0%
Q3 2013-1.3%
Q2 2013-6.4%
Q1 2013+1.1%
Q4 2012-4.6%
Q3 2012+1.0%
Q2 2012-12.1%
Q1 2011-1.9%
Q1 2012+5.3%
Q4 2009+0.1%
Q4 2011+0.1%
Q3 2011-1.0%
Q3 2010-1.0%
Q2 2010-1.0%
Q2 2011-1.0%
Q4 2010-1.0%
Q1 2010+5.0%

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