NASDAQ$FORR

Forrester Research Inc · Q4 2024 earnings

Q4 2024 earnings · · After market close · Investor relations

Briefing

Forrester Research reported a decline in revenue and net income for the fourth quarter of 2024, with a net loss for the full year.

Forrester Research experienced challenges in Q4 2024, with total revenues decreasing to $108.0 million from $118.1 million in the comparable prior-year quarter. The company reported a GAAP net income of $0.4 million for the quarter, a slight improvement from a net loss in the prior year, but a full-year GAAP net loss of $5.7 million. Adjusted net income for Q4 was $6.8 million.

  • Total revenues for Q4 2024 were $108.0 million, a decrease from $118.1 million in Q4 2023.
  • GAAP net income for Q4 2024 was $0.4 million, or $0.02 per diluted share, compared to a net loss of $0.7 million in Q4 2023.
  • Adjusted net income for Q4 2024 was $6.8 million, or $0.36 per diluted share.
  • Full-year 2024 GAAP net loss was $5.7 million, or $0.30 per diluted share, compared to a net income of $3.1 million in 2023.

Headline financials

Total Revenue

$108M

Previous: $118M-8.5%
EPS (adj)

$0.36

Previous: $0.25+44.0%
Contract value

$312M

Previous: $324M-3.6%
Client retention

73.0%

Previous: 73.0%+0.0%
Wallet retention

89.0%

Previous: 87.0%+2.3%
Number of clients

1.9K

Previous: 2.3K-14.0%
Total headcount

1.6K

Previous: 1.7K-9.9%
Sales force

580

Previous: 601-3.5%
Capital Expenditures

-$657K

Previous: $1.59M-141.3%
Net Income

$432K

Previous: -$663K+165.2%
Operating Income

-$551K

Previous: -$1.44M+61.7%
Gross Profit

$59.8M

Previous: $60.8M-1.6%

Revenue & EPS history

Forrester · Revenue · Quarterly

$108M

Q4 2024-8.5%vs Q4 2023
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 expects full-year 2025 total revenues to be between $400.0 million and $415.0 million, representing a decline of 7.5% to 4.0% versus the prior year. GAAP operating margin is projected to be between 1.8% and 2.8%. Adjusted diluted earnings per share are expected to be between $1.20 and $1.35.

Tailwinds

  • Focus on increasing retention rates.
  • Driving growth across both existing and new accounts.
  • Supercharging events to make them a more effective platform for CV growth.
  • Transition to operating the new Forrester model, moving past the three-year product transition.
  • Anticipated steady improvements across all three lines of business.

Headwinds

  • Projected decline in total revenues for 2025 compared to 2024.
  • Restructuring announced in January 2025 to improve cost efficiency.
  • Impact of revenue and CV declines on 2025 guidance.
  • Adjusted operating margin guidance of 8.0% to 9.0% is lower than previous adjusted operating margins.
  • Exclusion of stock-based compensation, amortization of acquisition-related intangible assets, restructuring costs, and investment gains or losses from adjusted guidance.

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 Q4 2024

Historical avgQ4 2024

-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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