Forrester Research Reports 2015 Third-Quarter Financial Results
Third-Quarter Financial Performance
Total revenues were
On a GAAP basis, net income was
On a pro forma basis, net income was
“We met revenue and exceeded earnings-per-share guidance as we continue
to see appetite from clients to develop a customer-obsessed business
strategy,” said
Fourth-Quarter 2015 (GAAP):
-
Total revenues of approximately
$78.0 million to $82.0 million . - Operating margin of approximately 2.5% to 4.5%.
- Other income, net of zero.
- An effective tax rate of 38%.
-
Diluted earnings per share of approximately
$0.06 to $0.10 .
Fourth-Quarter 2015 (Pro Forma):
Pro forma financial guidance for the fourth quarter of 2015 excludes
stock-based compensation expense of
- Pro forma operating margin of approximately 6.0% to 8.0%.
- Pro forma effective tax rate of 38%.
-
Pro forma diluted earnings per share of approximately
$0.15 to $0.19 .
Our full-year 2015 guidance is as follows:
Full-Year 2015 (GAAP):
-
Total revenues of approximately
$311.0 million to $315.0 million . - Operating margin of approximately 5.0% to 6.0%.
-
Other income, net of
$0.3 million . - An effective tax rate of 35%.
-
Diluted earnings per share of approximately
$0.61 to $0.65 .
Full-Year 2015 (Pro Forma):
Pro forma financial guidance for full-year 2015 excludes stock-based
compensation expense of
- Pro forma operating margin of approximately 9.5% to 10.5%.
- Pro forma effective tax rate of 38%.
-
Pro forma diluted earnings per share of approximately
$1.04 to $1.08 .
Quarterly Dividend
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, Forrester’s financial
guidance for the fourth quarter of and full-year 2015, statements about
the success of operational improvements, and statements about
Forrester’s future financial performance and financial condition. These
statements are based on Forrester’s current plans and expectations and
involve risks and uncertainties that could cause actual future
activities and results of operations to be materially different from
those set forth in the forward-looking statements. Important factors
that could cause actual future activities and results to differ include,
among others, Forrester’s ability to retain and enrich memberships for
its research products and services, demand for advisory and consulting
services, technology spending, Forrester’s ability to respond to
business and economic conditions and market trends, Forrester’s ability
to develop and offer new products and services, the risks and challenges
inherent in international business activities, competition and industry
consolidation, the ability to attract and retain professional staff,
Forrester’s dependence on key personnel, Forrester’s ability to realize
the anticipated benefits from recent internal reorganizations, the
possibility of network disruptions and security breaches, Forrester’s
ability to enforce and protect its intellectual property, and possible
variations in Forrester’s quarterly operating results. Financial
guidance regarding shares outstanding and per-share amounts is based on
certain assumptions that are subject to change, including as a result of
the number of shares repurchased by
The consolidated statements of income and the table of key financial data are attached.
© 2015,
Forrester Research, Inc. | ||||||||||||||||||||
Consolidated Statements of Income | ||||||||||||||||||||
(Unaudited, In thousands, except per share data) | ||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||||||
Revenues: | ||||||||||||||||||||
Research services | $ | 52,205 | $ | 50,622 | $ | 156,667 | $ | 153,737 | ||||||||||||
Advisory services and events | 22,548 | 24,741 | 76,084 | 77,644 | ||||||||||||||||
Total revenues | 74,753 | 75,363 | 232,751 | 231,381 | ||||||||||||||||
Operating expenses: | ||||||||||||||||||||
Cost of services and fulfillment | 29,222 | 30,105 | 92,543 | 93,143 | ||||||||||||||||
Selling and marketing | 27,460 | 27,677 | 85,572 | 86,190 | ||||||||||||||||
General and administrative | 9,530 | 10,023 | 28,564 | 29,365 | ||||||||||||||||
Depreciation | 2,048 | 2,174 | 6,251 | 7,236 | ||||||||||||||||
Amortization of intangible assets | 224 | 530 | 669 | 1,605 | ||||||||||||||||
Reorganization costs (credits) | 928 | (71 | ) | 4,433 | 1,817 | |||||||||||||||
Total operating expenses | 69,412 | 70,438 | 218,032 | 219,356 | ||||||||||||||||
Income from operations | 5,341 | 4,925 | 14,719 | 12,025 | ||||||||||||||||
Other income, net | 159 | 232 | 342 | 247 | ||||||||||||||||
Gains (losses) on investments, net | 245 | (105 | ) | 236 | (25 | ) | ||||||||||||||
Income before income taxes | 5,745 | 5,052 | 15,297 | 12,247 | ||||||||||||||||
Income tax provision | 1,295 | 2,009 | 5,321 | 4,981 | ||||||||||||||||
Net income | $ | 4,450 | $ | 3,043 | $ | 9,976 | $ | 7,266 | ||||||||||||
Diluted income per common share | $ | 0.25 | $ | 0.16 | $ | 0.55 | $ | 0.38 | ||||||||||||
Diluted weighted average shares outstanding | 18,065 | 18,549 | 18,231 | 19,169 | ||||||||||||||||
Basic income per common share | $ | 0.25 | $ | 0.17 | $ | 0.55 | $ | 0.38 | ||||||||||||
Basic weighted average shares outstanding | 17,892 | 18,287 | 17,986 | 18,886 | ||||||||||||||||
Pro forma data (1): | ||||||||||||||||||||
Income from operations | $ | 5,341 | $ | 4,925 | $ | 14,719 | $ | 12,025 | ||||||||||||
Amortization of intangible assets | 224 | 530 | 669 | 1,605 | ||||||||||||||||
Reorganization costs (credits) | 928 | (71 | ) | 4,433 | 1,817 | |||||||||||||||
Stock-based compensation included in the |
||||||||||||||||||||
Cost of services and fulfillment | 1,183 | 1,134 | 3,218 | 3,005 | ||||||||||||||||
Selling and marketing | 331 | 302 | 754 | 767 | ||||||||||||||||
General and administrative | 710 | 547 | 1,913 | 1,376 | ||||||||||||||||
Pro forma income from operations | 8,717 | 7,367 | 25,706 | 20,595 | ||||||||||||||||
Other income, net | 159 | 232 | 342 | 247 | ||||||||||||||||
Pro forma income before income taxes | 8,876 | 7,599 | 26,048 | 20,842 | ||||||||||||||||
Pro forma income tax provision | 3,373 | 2,888 | 9,898 | 7,920 | ||||||||||||||||
Pro forma net income | $ | 5,503 | $ | 4,711 | $ | 16,150 | $ | 12,922 | ||||||||||||
Pro forma diluted income per share | $ | 0.30 | $ | 0.25 | $ | 0.89 | $ | 0.67 | ||||||||||||
Pro forma diluted weighted average shares outstanding | 18,065 | 18,549 | 18,231 | 19,169 | ||||||||||||||||
(1)
information to aid in the
understanding of
making compensation decisions. Our pro forma
presentation excludes amortization of acquisition-related
intangible
assets, stock-based compensation, reorganization costs (credits) and net
gains or losses from
investments, as well as their related tax
effects. The pro forma data does not purport to be prepared in
accordance
with Accounting Principles Generally Accepted in
Forrester Research, Inc. | ||||||||||
Key Financial Data | ||||||||||
(Unaudited, dollars in thousands) | ||||||||||
September 30, | December 31, | |||||||||
2015 | 2014 | |||||||||
Balance sheet data: | ||||||||||
Cash, cash equivalents and marketable investments | $ | 104,151 | $ | 104,535 | ||||||
Accounts receivable, net | $ | 37,379 | $ | 67,429 | ||||||
Deferred revenue | $ | 124,195 | $ | 144,568 | ||||||
Nine Months Ended | ||||||||||
September 30, | ||||||||||
2015 | 2014 | |||||||||
Cash flow data: | ||||||||||
Net cash provided by operating activities | $ | 28,218 | $ | 27,851 | ||||||
Purchases of property and equipment | $ | (2,316 | ) | $ | (1,110 | ) | ||||
Repurchases of common stock | $ | (18,639 | ) | $ | (66,557 | ) | ||||
Dividends paid | $ | (9,163 | ) | $ | (9,053 | ) | ||||
As of | ||||||||||
September 30, | ||||||||||
2015 | 2014 | |||||||||
Metrics: | ||||||||||
Agreement value | $ | 233,300 | $ | 226,900 | ||||||
Client retention | 80 | % | 76 | % | ||||||
Dollar retention | 91 | % | 89 | % | ||||||
Enrichment | 97 | % | 97 | % | ||||||
Number of clients | 2,482 | 2,452 | ||||||||
As of | ||||||||||
September 30, | ||||||||||
2015 | 2014 | |||||||||
Headcount: | ||||||||||
Total headcount | 1,321 | 1,316 | ||||||||
Research and consulting staff | 491 | 511 | ||||||||
Sales staff | 513 | 494 |
View source version on businesswire.com: http://www.businesswire.com/news/home/20151028006659/en/
Source:
Forrester Research, Inc.
Michael Doyle, +1-617-613-6000
Chief
Financial Officer
mdoyle@forrester.com
or
Phil
LeClare, + 1-617-613-6441
Director, Public Relations
press@forrester.com