Forrester Research (FORR) Q4 1999 earnings summary

Executive summary

• FY 1999 revenue rose 42% to $87.3 million, net income rose 46% to $11.0 million, and client companies increased 41% to 1,793.

• Agreement value reached $115.8 million, up 68% YoY; deferred revenue rose 70% to $66.2 million.

• eResearch rollout, new digital products, and the Fletcher Research acquisition supported expansion and broadened European reach.

Financial highlights

• FY 1999 revenue was $87.268 million, operating income $13.860 million, and net income $10.981 million.

• Diluted EPS was $0.55; pro forma diluted EPS, excluding acquisition-related expenses, was $0.58.

• Cash from operations increased to $31.9 million from $14.3 million in 1998.

• Q4 1999 revenue was $27.687 million, operating income $5.198 million, net income $3.988 million, and diluted EPS $0.18.

Outlook and guidance

• 2000 plans included eBusiness Voyage, expanded PowerRankings, Internet Policy & Regulation research, new lenses, and an Online Healthcare Forum.

• eResearch Wave III was planned to add Internet-based products for gathering data and delivering research, extending the syndication model.

• Planned domestic sales offices in Atlanta, New York City, San Francisco, and Chicago; available cash, securities, and operating cash flow were expected to cover needs for at least two years.