NASDAQ$FORR

Forrester Research Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Forrester's Q3 2023 financial results were announced, revealing flat contract value and decreased revenue compared to the previous year.

Forrester Research reported its Q3 2023 financial results, showing a decrease in revenue to $113.4 million compared to $127.7 million in the same quarter of the prior year. The contract value remained flat at $349.4 million. Net income also decreased to $2.5 million, or $0.13 per diluted share, compared to $5.4 million, or $0.28 per diluted share, in Q3 2022.

  • Total revenue decreased to $113.4 million, compared to $127.7 million in the same quarter last year.
  • Net income decreased to $2.5 million, or $0.13 per diluted share, compared to $5.4 million, or $0.28 per diluted share, for the same period in 2022.
  • Adjusted net income was $8.6 million, or $0.44 per diluted share, compared to $10.9 million, or $0.57 per diluted share, for the same period in 2022.
  • Contract value remained flat at $349.4 million compared to the prior year.

Headline financials

Total Revenue

$113M

Previous: $128M-11.2%
EPS (adj)

$0.44

Previous: $0.57-22.8%
Contract value

$349M

Previous: $353M-1.0%
Client retention

73.0%

Previous: 75.0%-2.7%
Wallet retention

91.0%

Previous: 97.0%-6.2%
Number of clients

2.5K

Previous: 2.9K-11.7%
Capital Expenditures

-$3.9M

Previous: -$4.23M+7.7%
Free Cash Flow

-$1.42M

Previous: $1.19M-219.5%
Net Income

$2.48M

Previous: $5.41M-54.1%
Operating Income

$5.06M

Previous: $8.56M-40.9%
Gross Profit

$66.9M

Previous: $76.5M-12.5%
Cash & Equivalents

$102M

Previous: $98.7M+3.0%
Total Assets

$536M

Previous: $585M-8.4%
Stock-Based Comp

$4.14M

Previous: $3.91M+6.1%

Revenue & EPS history

Forrester · Revenue · Quarterly

$113M

Q3 2023-11.2%vs Q3 2022
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Revenue by segment

Forrester · $113M total across 3 segments · Q3 2023

  • Research
    $80.6M-7.4%
  • Consulting
    $28.2M-24.5%
  • Events
    $4.59M+40.8%

Forward guidance

Forrester is providing updated guidance for 2023.

Tailwinds

  • Total revenues of approximately $475 million to $485 million
  • Operating margin of approximately 1.2% to 2.2%
  • Interest expense of approximately $3.1 million
  • An effective tax rate of approximately 50%
  • Earnings per share of approximately $0.10 to $0.30

Headwinds

  • Adjusted operating margin of approximately 10.5% to 11.5%
  • Adjusted effective tax rate of approximately 29%
  • Adjusted diluted earnings per share of approximately $1.80 to $2.00
  • Stock-based compensation expense of $15.0 million to $15.5 million
  • Amortization of acquisition-related intangible assets of approximately $12.0 million

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 2023

Historical avgQ3 2023

-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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro