Forrester Research (FORR) Q4 2024 earnings summary

Executive summary

• Completed multi-year transition to Forrester Decisions, with 80% of contract value (CV) now on the platform and ongoing go-to-market improvements.

• 2024 saw revenue and CV declines, leading to restructuring for cost efficiency and shaping 2025 guidance.

• Retention and contract value per client improved, with product enhancements including the rollout of generative AI tool Izola and new services.

• Consulting business trends improved in H2, while events and legacy products faced challenges.

• Forrester operates in a $115 billion research market, focusing on recurring revenue and contract value growth.

Financial highlights

• Q4 2024 revenue was $108 million, down 9% year-over-year; full-year revenue was $432.5 million, down 10%.

• Q4 adjusted net income was $6.8 million ($0.36/share), up from $4.8 million in Q4 2023; full-year adjusted net income was $28.1 million ($1.47/share), down from $36.6 million in 2023.

• Operating margin for 2024 was 8.9%; adjusted EBITDA was $46.1 million; free cash flow was negative at -$7.3 million.

• Cash and investments at year-end totaled $104.7 million; $16 million in share repurchases during 2024.

• Headcount at year-end was 1,571, down from 1,744; 6% workforce reduction in early 2025.

Outlook and guidance

• 2025 revenue expected at $400–$415 million, a 4–8% decline year-over-year.

• Adjusted operating margin guidance of 8–9% for 2025; adjusted EPS expected between $1.20–$1.35.

• GAAP operating margin expected at 1.8%–2.8%; GAAP EPS guidance: $0.24–$0.34.

• Positive free cash flow expected to return in 2025.