Forrester Research (FORR) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue was $121.8 million, down 10% year-over-year, with declines across all segments and cost controls implemented.

• Net income for Q2 2024 was $6.3 million ($0.33 per diluted share), up from $5.3 million ($0.28) in Q2 2023, while adjusted net income was $12.9 million ($0.68 per share), down from $18.1 million ($0.94).

• Contract value (CV) was $323.0 million, down 3% year-over-year, but CV bookings grew 5% and retention improved sequentially.

• Forrester Decisions migration progressed, with 73% of CV on the platform and a target of 80% by year-end.

• Workforce reductions and office closures continued to align costs with revenue outlook.

Financial highlights

• Q2 2024 revenue: $121.8 million (down 10% year-over-year); six-month revenue: $221.9 million (down 11%).

• Operating income for Q2 2024: $11.3 million; adjusted operating income: $17.9 million (14.7% margin).

• Cash and investments at quarter-end: $110.8 million.

• Operating cash flow for six months ended June 30, 2024: -$2.3 million, impacted by litigation and restructuring.

• Share repurchases totaled $15 million in H1 2024, with $87.9 million remaining authorized.

Outlook and guidance

• 2024 revenue guidance lowered to $425–$435 million due to consulting and events headwinds.

• Adjusted operating margin expected at 8.5%–9.5%; adjusted EPS guidance $1.37–$1.57; GAAP EPS $0.06–$0.19.

• By year-end, 80% of contract value expected on Forrester Decisions platform.

• Effective tax rate for full year 2024 anticipated to be 65%–80% (GAAP) and 29% (adjusted).