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Forrester Research Reports 2023 First-Quarter Financial Results
CAMBRIDGE, Mass.--(BUSINESS WIRE)-- Forrester Research, Inc. (Nasdaq: FORR) today announced financial results for the first quarter ended March 31, 2023.
About this update from Forrester Research, Inc.
[{"type":"text","content":" CAMBRIDGE, Mass.--(BUSINESS WIRE)--\nForrester Research, Inc. (Nasdaq: FORR) today announced financial results for the first quarter ended March 31, 2023. Results were driven by flat contract value (CV) growth and a revenue decline of 9%. On a GAAP basis, loss per share was $0.21, and on an adjusted basis, earnings per share (EPS) was $0.27.\n\n\nCommenting on the announcement, CEO and Chairman George Colony stated, “The first quarter was difficult for Forrester. The unsteady economy, along with our ongoing product transformation, constitute ongoing challenges for our business. Consequently, we are taking actions to maintain our margins by reducing our cost structure to align with our expected revenue. Despite these moves, we remain confident in our strategy and in the Forrester Decisions research platform. We remain on track to transition two-thirds of our contract value to Forrester Decisions by year end.”\n\n\nFirst-Quarter Consolidated Results\n\n\nTotal revenues for the first quarter of 2023 were $113.7 million, compared with $125.0 million for the comparable quarter in 2022.\n\n\nOn a GAAP basis, net loss was $4.1 million, or $0.21 per diluted share, for the first quarter of 2023, compared with net income of $4.1 million, or $0.22 per diluted share, for the same period in 2022.\n\n\nOn an adjusted basis, net income was $5.1 million, or $0.27 per diluted share, for the first quarter of 2023, reflecting an adjusted effective tax rate of 29%. Adjusted net income excludes stock-based compensation of $3.2 million, amortization of acquisition-related intangible assets of $3.1 million, restructuring costs of $1.6 million, and a legal settlement of $4.8 million. This compares with an adjusted net income of $8.6 million, or $0.45 per diluted share, for the same period in 2022, which reflects an adjusted tax rate of 30%. Adjusted net income for the first quarter of 2022 excludes stock-based compensation of $3.3 million, amortization of acquisition-related intangible assets of $3.4 million, and investment gains of $0.4 million.\n\n\nForrester is providing updated guidance for 2023 as follows:\n\n\nFull Year 2023 (GAAP):\n\n\n\nTotal revenues of approximately $475 million to $495 million\n\n\n\nOperating margin of approximately 2.0% to 3.0%\n\n\n\nInterest expense of approximately $3.0 million\n\n\n\nAn effective tax rate of approxim...