Gartner (IT) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue reached $1.5 billion, up 5.4% year-over-year, with strong performance in Research and Conferences segments and net income surging to $415 million, driven by a $300 million event cancellation insurance gain.

• Adjusted EBITDA was $340 million, up 2.1% year-over-year; adjusted EPS was $2.50, down 2.3% year-over-year.

• Free cash flow reached $565 million, benefiting from insurance proceeds; operating cash flow was $591 million.

• Positioned for long-term double-digit revenue growth, supported by a robust client value proposition and ongoing investments in sales force and innovation.

Financial highlights

• Q3 revenue was $1.5 billion, up 5% year-over-year as reported and 6% FX neutral; Research revenue grew 5.1% to $1.28 billion, Conferences revenue rose 32.5% to $76 million, and Consulting revenue declined 3.9% to $128 million.

• Net income for Q3 was $415 million, up 130.6% year-over-year, with diluted EPS at $5.32.

• Contract value at quarter-end was $5 billion, up 7.3% year-over-year and $104 million sequentially.

• Operating income was $246 million, nearly flat year-over-year.

Outlook and guidance

• 2024 guidance raised: consolidated revenue of at least $6.23 billion (6% FX neutral growth), adjusted EBITDA of at least $1.52 billion, adjusted EPS of at least $11.75, and free cash flow of at least $1.35 billion.

• Research revenue expected at least $5.11 billion (5% FX neutral growth), Conferences at least $580 million (15% FX neutral growth), Consulting at least $535 million (5% FX neutral growth).

• Guidance reflects improved operating performance, insurance proceeds net of taxes, and a non-recurring real estate payment.

• Medium-term targets: Research revenue growth 12–16%, Conferences 5–10%, Consulting 3–8%.