Forrester Research (FORR) Q4 2000 earnings summary

Executive summary

• FY2000 revenue rose 80% to $157.1M, operating income to $27.1M and net income to $21.6M; diluted EPS was $0.88.

• Agreement value increased 62% to $187.8M; clients reached 2,378, with no single client exceeding 2% of revenue or agreement value.

• International expansion, new research products and events supported growth; 26% of FY2000 revenue came from outside the US.

Financial highlights

• Revenue was $157.1M vs. $87.3M in FY1999; core research revenue was $120.5M and advisory services and other revenue was $36.7M.

• Operating income was $27.1M vs. $13.9M; net income was $21.6M vs. $11.0M.

• Diluted EPS was $0.88 vs. $0.55; pro forma diluted EPS excluding acquisition-related expenses was $0.58 in FY1999 and $0.88 in FY2000.

• Q4 FY2000 revenue was $47.9M, operating income $9.9M, net income $7.3M and diluted EPS $0.30.

• Operating cash flow reached $70.0M vs. $31.9M; cash and marketable securities totaled $174.7M at year-end.

Outlook and guidance

• FY2001 priorities: help large enterprises transform into eBusinesses, expand regional and global research, launch products and strengthen the Whole View of eBusiness.

• Plans called for building an Asia presence in 2001, ahead of expected acceleration in Asian eBusiness beginning in 2003.

• Planned spending included new products and services, additional domestic and international offices, and infrastructure investment; available liquidity and operating cash flows were expected to cover needs for at least two years.