Gartner, Inc. · NYSE:IT
Gartner — Investor Day (February 2013)
148 slides from Gartner's investor day presentation, Feb 14, 2013
Slide 1: Gartner
Gartner
Slide 2: Group Vice President, Investor Relations Brian Shipman
Group Vice President, Investor Relations Brian Shipman
Slide 3: Forward Looking Statements
Forward Looking Statements Statements contained in this presentation regarding the growth and prospects of the business, the Company's projected 2013 financial results, long - term objectives and all other statements in this presentation other than recitation of historical facts are forward looking
Slide 4: Agenda
Agenda Business Overview Gene Hall Research Peter Sondergaard Events Alwyn Dawkins Consulting Per Anders Waern Break Sales David Godfrey Financial Overview Chris Lafond Summary / Q&A Gene Hall and Chris Lafond
Slide 5: Gartner
Gartner
Slide 6: Why Gartner
Why Gartner Exceptional Business Model Strong Value Proposition Winning Strategy Vast Market Opportunity
Slide 7: Extraordinary Research Insight
18% Gartner Consulting Business 10% Gartner Events Business Gartner Note: Percentages based on midpoint of 2013 revenue guidance. Gartner Research Business 72% Extraordinary Research Insight
Slide 8: Gartner Research
Gartner Research • Contract Value • Revenue • Earnings • EBITDA • Cash Flow Consistent, double - digit growth Extraordinary Research Insight Events Consulting Research
Slide 9: A Vast, Untapped Market Opportunity
A Vast, Untapped Market Opportunity $ 1.3 Billion** 12 18 5 4 8 Other* Front - line IT Professionals Supply Chain CIOs IT Functional Leaders $ 47 Billion Source: Gartner internal estimates * technology, professional services , telecommunications and investors ** 2012 ending contract value Market Opp
Slide 10: Winning Growth Strategy
Winning Growth Strategy Performance - Driven Leadership Team Continuous Improvement and Innovation
Slide 11: Turning Our Strategy into Action
Turning Our Strategy into Action Key Initiative V2 V3 V4 V5 V6 V7 New Initiative V2 V3 V4 V5 New Initiative V2 V3 V4
Slide 12: Extraordinary Research Insight
Extraordinary Research Insight 2005 Today Focus on Critical Topics V2 V3 V4 V5 V6 V7 Expanded Coverage Areas Enterprise Architecture Supply Chain Tech Professionals
Slide 13: Extraordinary Research Insight
2005 Today Extraordinary Research Insight Strong Sales Capability High - Value, Differentiated Offerings World Class Service
Slide 14: Performance Driven Leadership Team
US Non - US Performance Driven Leadership Team Tenure World - Class Talent Global 7 years Avg Tenure in Role External 38% Acquisition 15% Promotion 46% 13 years Avg Tenure at Gartner Nationality Source of Leadership
Slide 15: Contract Value, EBITDA, EPS and Free Cash Flow 2004-2013E
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013E 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013E Free Cash Flow 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013E 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013E Contract Value Normalized EBITDA EPS from Continuing Operations 13% 15% 45% 34%
Slide 16: Gartner
Gartner
Slide 17: Senior Vice President, Research Peter Sondergaard
Senior Vice President, Research Peter Sondergaard
Slide 18: Why Gartner
Why Gartner Strong Value Proposition Winning Strategy Vast Market Opportunity
Slide 19: Nexus of Forces
Nexus of Forces Gartner.
Slide 20: Technology Spending as Percentage of Disposable Income
Technology Spending as Percentage of Disposable Income 2015 1980 2011 3.5% .8% 3%
Slide 21: Disruptive Vendors and Established Vendors
Apple Disruptive Vendors Established Vendors IBM
Slide 22: Overall IT Market
Overall IT Market Trillions of US$ 2016 2011 Gartner Worldwide IT Spending Forecast, 4Q12 Devices Datacenter Software Services Telecom
Slide 23: Gartner
Gartner
Slide 24: Mass Digitization
Mass Digitization Client Retention New Revenues
Slide 25: Every Budget is an IT Budget
Every Budget is an IT Budget
Slide 26: Gartner Predicts: Chief Digital Officer
Gartner Predicts By 2015, 25% of Organizations Will Have a Chief Digital Officer
Slide 27: Big Data Job Roles
Information Management Officer {Big Data Engineer Fraud Scioutist ‘Data Scientist ‘Hpc Engineer {nfoconomist” ata Steward Analytic Seine, Intron Prd Ariost Aivanced Analytics Analyst Algorithins Sciontist (Dats Harggstion iJ ‘Data Security Architect NoSGL DBR Finanela Artolyet, $ ‘Data Scie Business
Slide 28: Big Data Demand Will Reach 4.4 Million Jobs
By 2015, Big Data Demand Will Reach 4.4 Million Jobs Globally But Only 1/3 of Those Jobs Will Be Filled Gartner Predicts
Slide 29: The New Information Economy
The New Information Economy
Slide 30: Information Drives The Next Economic Cycle
New Jobs. New Revenue. New Skills. Information Drives The Next Economic Cycle
Slide 31: 2012 Client Key Initiatives
2012 Client Key Initiatives Source: Gartner.com Data, January 2013 2 Mobile Enterprise Strategy 3 IT Strategic Planning 4 Enterprise Architecture Program 5 Data Center Modernization and Consolidation 7 IT Governance 8 ITIL and Process Improvement 9 Application Development 10 Program and Portfolio Ma
Slide 32: 2006 Client Key Initiatives
2006 Client Key Initiatives Source: Gartner.com Data, January 2007 4 Application Development 5 ERP & Supply Chain Management 6 Mobile & Wireless 7 Customer Relationship Management 8 Application Integration and Middleware 9 Outsourcing 10 Emerging Technologies 1 IT Strategic Planning 2 Security & Pri
Slide 33: Extraordinary Research Insight
Gartner Research Business Gartner Consulting Business 18% 72% Extraordinary Research Insight 10% Gartner Events Business Gartner Note: Percentages based on midpoint of 2013 revenue guidance.
Slide 34: Gartner Research Model: The Research Process
Gartner Research Model The Research Process PEOPLE PACKAGING AND PRESENTATION PROCESSES PROPRIETARY DATA AND ANALYTICS
Slide 35: Research Model: The People — Analysts
Gartner Research Model The People — Analysts Over 900 analysts in 29 countries Over 150 based in APAC, over 210 based i n Europe Minimum 12 years of experience at time of hire 6 0 % have 20+ years of industry experience 150 210 550 Subject Matter Experts PEOPLE
Slide 36: Research Model: The Research Process
Gartner Research Model The Research Process Decision Makers in 13,305 organizations Academic Institutions Technology & Service Providers 12,000 briefings Investors PROCESSES
Slide 37: Research Model: Processes
Gartner Research Model The Research Process Transparency Objectivity Quality PROCESSES
Slide 38: Research Process: Client Key Initiatives
2 Mobile Enterprise Strategy 3 IT Strategic Planning 4 Enterprise Architecture 5 Data Center Modernization and Consolidation Rank Key Initiative 1 Cloud Computing Gartner Research Model The Research Process PROCESSES
Slide 39: Research Model: Proprietary Data and Analytics
Gartner Research Model Proprietary Data and Analytics 38 Over 3 ,900 contract reviews and almost 12,000 strategy reviews A terabyte of continually updated market data 5,500 IT Cost and Price benchmarks 265,000 interactions 5.2 million document page views 4.9 million end - user searches per year PROP
Slide 40: Research Model: Packaging and Presentation
Written Actionable Advice Gartner Research Model Packaging and Presentation PACKAGING AND PRESENTATION Interactions
Slide 41: Research Model: Packaging and Presentation
Gartner Research Model Packaging and Presentation PACKAGING AND PRESENTATION
Slide 42: Packaging and Presentation: Overview & Roadmap
“2012 Strategic Road Map for Mobility” “Agenda for Mobile Infra & Ops” “Predicts 2012: Mobile & Wireless” • Hype Cycles: “Mobile Device Technologies, 2012” “Consumer Services and Mobile Applications, 2012” Gartner Research Model Packaging and Presentation PACKAGING AND PRESENTATION Overview & Roadma
Slide 43: Packaging and Presentation: Select Solution
Gartner Research Model Packaging and Presentation PACKAGING AND PRESENTATION • Magic Quadrants: “Mobile Device Management Software” “Mobile AD Platforms” “Mobile Data Protection” “Consumer Mobile Applications” “IT Market Clock for Enterprise Mobility” Overview & Roadmap Select Solution
Slide 44: Packaging and Presentation: Deploy
Gartner Research Model Packaging and Presentation PACKAGING AND PRESENTATION • How to Maximize the Value of Mobile and Social Commerce • Mobile Solution Analyzer Manual Deploy Overview & Roadmap Select Solution
Slide 45: Packaging and Presentation: Operate & Evolve
• Toolkit : Bring Your Own Device: Mobile Device Policy Template • much more research… Gartner Research Model Packaging and Presentation Deploy Overview & Roadmap Select Solution Operate & Evolve PACKAGING AND PRESENTATION
Slide 46: Packaging and Presentation: Telephone Inquiries
Gartner Research Model Packaging and Presentation PACKAGING AND PRESENTATION Deploy Overview & Roadmap Select Solution Operate & Evolve Telephone inquiries
Slide 47: Gartner Research Business
72% People Process Proprietary Data Packaging Gartner Research Business Gartner Research Note: Percentages based on midpoint of 2013 revenue guidance. Highly differentiated insight delivered primarily through digital media subscriptions Gartner Research Business
Slide 48: Gartner for IT Executives
Gartner for IT Executives Equips CIOs with the role - specific tools and knowledge they need to deliver exceptional business results for their organizations Gartner Research Vast Untapped Market Opportunity $ 1.3 Billion** Source: Gartner internal estimates * technology, professional services , tele
Slide 49: Gartner for IT Leaders
Gartner Research Vast Untapped Market Opportunity $ 1.3 Billion** $ 47 Billion Other* Front - line IT Professionals Supply Chain CIOs IT Functional Leaders 12 18 5 4 8 Gartner for IT Leaders Provides IT leaders with just - in - time, role - specific insight and advice from Gartner analysts to drive
Slide 50: Gartner for Technical Professionals
Gartner Research Vast Untapped Market Opportunity $ 1.3 Billion** $ 47 Billion Other* Front - line IT Professionals Supply Chain CIOs IT Functional Leaders 12 18 5 4 8 Gartner for Technical Professionals Provides IT technical professionals with in - depth advice to drive technology architecture deci
Slide 51: Gartner for Supply Chain Leaders
Gartner for Supply Chain Leaders Provides Supply Chain leaders within different industries advice and tools to optimize and drive success on critical initiatives around their specific value chain Gartner Research Vast Untapped Market Opportunity $ 1.3 Billion** $ 47 Billion Other* Front - line IT Pr
Slide 52: Gartner for Business Leaders
Gartner Research Vast Untapped Market Opportunity $ 1.3 Billion** $ 47 Billion Other* Front - line IT Professionals Supply Chain CIOs IT Functional Leaders 12 18 5 4 8 Gartner for Business Leaders Provides business leaders in Technology and Service providers with the tools and insight to ensure they
Slide 53: Continuous Product Innovation
Continuous Product Innovation Content Technology Platform Usability/ interface
Slide 54: Strong Value Proposition
Strong Value Proposition Right direction, right away Immediate shortlists on key initiatives Contract proposal reviews Best - practice budget benchmark Global perspective Best practice by vertical industry Strategic guidance Making the right decision Personal development Increased credibility Save T
Slide 55: Why Gartner
Why Gartner Strong Value Proposition Winning Strategy Vast Market Opportunity
Slide 56: Senior Vice President, Gartner Events Alwyn Dawkins
Senior Vice President, Gartner Events Alwyn Dawkins
Slide 57: Gartner Events
Gartner Events Strong Value Proposition Winning Strategy Vast Market Opportunity
Slide 58: Gartner Events Business
Gartner Events Extraordinary Research Insight Gartner Events Business Differentiated live events leveraging research content Gartner Events Business
Slide 59: Gartner Events Business
Gartner Events Extraordinary Research Insight Gartner Events Business Differentiated live events leveraging research content Gartner Events Business
Slide 60: Our mission: the MUST ATTEND event
Make every conference we produce the MUST ATTEND event for the communities we serve Our mission:
Slide 61: World's Leading IT Conference Producer
Gartner Events 62 Events 6 Continents World’s Leading IT Conference Producer 46,307 Attendees 1,839 Exhibitors Gartner Events Business Extraordinary Research Insight Gartner Events Business
Slide 62: Gartner Events: Current Relevant Actionable
Gartner Events Current Relevant Actionable Gartner Events Business Extraordinary Research Insight Gartner Events Business
Slide 63: Gartner Events: Current Relevant Actionable
Gartner Events Extraordinary Research Insight Gartner Events Business Current Relevant Actionable Gartner Events Business
Slide 64: Attendee Value Proposition
Attendee Value Proposition Face - to - face Analyst interaction Industry leaders Unparalleled peer networking Access to leading solution providers Actionable advice
Slide 65: Attendee Value Proposition
Attendee Value Proposition 64 Face - to - face Analyst interaction Industry leaders Unparalleled peer networking Access to leading solution providers Actionable advice
Slide 66: Attendee Value Proposition
Attendee Value Proposition Face - to - face Analyst interaction Industry leaders Unparalleled peer networking Access to leading solution providers Actionable advice
Slide 67: Attendee Value Proposition
Attendee Value Proposition Face - to - face Analyst interaction Industry leaders Unparalleled peer networking Access to leading solution providers Actionable advice
Slide 68: Attendee Value Proposition
Attendee Value Proposition 67 Face - to - face Analyst interaction Industry leaders Unparalleled peer networking Access to leading solution providers Actionable advice
Slide 69: Exhibitor Value Proposition
Exhibitor Value Proposition Face to face interaction with high level attendees Cost effective lead generation
Slide 70: 2012 Gartner Event Portfolio
2012 Gartner Event Portfolio 62 strategic conferences Record breaking global attendance
Slide 71: Global Symposium Event Locations and Dates
UNITED STATES October 21 – 25 SPAIN November 5 – 8 UNITED ARAB EMIRATES March 5 – 7, 2013 JAPAN October 3 – 5 INDIA October 10 – 12 BRAZIL October 29 – 31 AUSTRALIA November 12 – 15 The World's Most Important Gathering of CIOs and Senior IT Executives UNITED ARAB EMIRATES March 5 – 7, 2013 SOUTH AFR
Slide 72: Symposium Strategy Driving Increased CIO Attendance
Symposium strategy driving increased CIO attendance 6,100+ CIOs 20% YOY increase 2007 2010 2008 2009 2011 1,900 2 ,500 3 ,500 4 ,300 5,100 +19% +23% +40% +32% 6,100 +20% 2012 Global Symposium CIO Attendance
Slide 73: 2013 Gartner Event Portfolio
2013 Gartner Event Portfolio 64 strategic conferences
Slide 74: Gartner Events
Gartner Events Strong Value Proposition Winning Strategy Vast Market Opportunity
Slide 75: Gartner
Gartner
Slide 76: Senior Vice President, Gartner Consulting Per Anders Waern
Senior Vice President, Gartner Consulting Per Anders Waern
Slide 77: Gartner Consulting Business
18% Extraordinary Research Insight Gartner Consulting Gartner Consulting Business Longer - term differentiated engagements leveraging Gartner research Gartner Consulting Business
Slide 78: Gartner Consulting
Strong Value Proposition Winning Strategy Vast Market Opportunity Gartner Consulting
Slide 79: Gartner Consulting Business
Gartner Consulting Business Photo Image will be inserted here Core Consulting and Benchmarking Gartner Consulting Contract Optimization Extraordinary Research Insight Core Consulting and Benchmarking (90%) Contract Optimization (10%)
Slide 80: Independent and Objective, Powered by Gartner Research
Photo Image will be inserted here Gartner Consulting Independent and Objective Powered by Gartner Research Proprietary Benchmark Enabled Extraordinary Research Insight Gartner Consulting Business
Slide 81: Gartner Consulting
Gartner Consulting Gartner
Slide 82: Gartner Consulting: 4th Gen Mobile Banking
Gartner Consulting 4th Gen Mobile Banking \ Gartner
Slide 83: Gartner Consulting: Secure Effective Cloud
Gartner Consulting Secure Effective Cloud , Gartner
Slide 84: Gartner Consulting: Clinical Data Strategy
Gartner Consulting a" Clinical Data Strategy ” Gartner
Slide 85: Independent and Objective, Powered by Gartner Research
Photo Image will be inserted here Gartner Consulting Independent and Objective Powered by Gartner Research Proprietary Benchmark Enabled Extraordinary Research Insight Gartner Consulting Business Gartner Consulting Business
Slide 86: Experienced Senior Practitioners
Photo Image will be inserted here Experienced Senior Practitioners • 503 billable Consultants • $430K average annual revenue per head • Powerful value proposition for attracting top talent
Slide 87: Managing Partners
Managing Partners Trust - based relationships Repeatable services
Slide 88: Managing Partner Strategy Driving Results
Managing Partner Strategy Driving Results 503 493 2012 2004 Billable FTE 67% 60% Utilization $430k $340k Revenue / FTE 1 $258k $113k Avg. Engagement Size 1 – Full Time Equivalents
Slide 89: Gartner Consulting
Gartner Consulting Strong Value Proposition Winning Strategy Vast Market Opportunity
Slide 90: Gartner
Gartner
Slide 91: Senior Vice President, Worldwide Sales David Godfrey
Senior Vice President, Worldwide Sales David Godfrey
Slide 92: Gartner Business Lines
Gartner Gartner Research Business Gartner Consulting Business Extraordinary Research Insight Gartner Events Business
Slide 93: Gartner Sales
Gartner Sales
Slide 94: Gartner Sales
Gartner Sales 1,417 quota - bearing sales associates • 220% growth since 2004 • 53% outside of United States Profile of a Gartner Account Executive • Highly motivated • Great sales DNA • Passionate • Goal oriented
Slide 95: Vast Market Opportunity for Research
Vast Market Opportunity for Research Total 108,000 38,000 # of Enterprises Market Opportunity 99,370 Prospects Clients 8,630 Percent of Total 100% 92% 8% * technology, professional services, telecommunications and investors ** 2012 ending contract value Source: Gartner internal estimates $ 1.3 Billi
Slide 96: Client Enterprise and Contract Value Growth
Client Enterprise and Contract Value Growth # Of Client Enterprises 2009 6,544 2008 6,400 2007 6,798 2006 6,318 2005 6,215 2004 5,818 2012 8,630 2011 8,070 2010 7,680 Research Contract Value 2012 $1,263M 2011 $1,116M 2010 $978M 2009 $784M 2008 $834M 2007 $753M 2006 $640M 2005 $593M 2004 $509M +560 +
Slide 97: Research Sold as Subscriptions to Individuals
… … … … … Research sold as subscriptions to individuals • Role - based • Recurring revenue IT Functional Leaders CIO IT Professionals
Slide 98: Research Sold as Subscriptions to Individuals
… … … … … Research sold as subscriptions to individuals • Role - based • Recurring revenue IT Functional Leaders CIO IT Professionals
Slide 99: Case Study: Growing the Account
Case Study: Growing the Account … … … … … IT Functional Leaders CIO IT Professionals
Slide 100: Case Study: Growing the Account
Case Study: Growing the Account … … … … … IT Functional Leaders CIO IT Professionals
Slide 101: Gartner Sales
Gartner Sales Strong Value Proposition Winning Strategy Vast Market Opportunity
Slide 102: Sales Strategy to Capture Market Opportunity
Sales Strategy to Capture Market Opportunity Coverage Capacity Sales Effectiveness
Slide 103: Sales Strategy to Capture Market Opportunity
Sales Strategy to Capture Market Opportunity Coverage Capacity Sales Effectiveness
Slide 104: Sales Strategy to Capture Market Opportunity
Sales Strategy to Capture Market Opportunity Coverage Sales Effectiveness Capacity
Slide 105: Sales Strategy to Capture Market Opportunity
Sales Strategy to Capture Market Opportunity Sales Effectiveness Capacity Coverage
Slide 106: Sales Strategy: Capacity
Sales Strategy to Capture Market Opportunity • Grow sales headcount 15 – 20% annually • Architected recruitment and training plan Capacity
Slide 107: Sales Strategy: Direct Quota Bearing Headcount
443 550 663 806 928 942 1,049 1,268 1,417 2004 2005 2006 2007 2008 2009 2010 2011 2012 Direct Quota Bearing Headcount Sales Strategy to Capture Market Opportunity • Grow sales headcount 15 – 20% annually • Architected recruitment and training plan Capacity
Slide 108: Sales Strategy: Coverage
Coverage Sales Strategy to Capture Market Opportunity • Matched to global opportunity • Emphasizing client intimacy
Slide 109: Coverage: Average Contract Value per Organization
Coverage 58 64 68 74 79 75 84 90 95 2004 2005 2006 2007 2008 2009 2010 2011 2012 Average Contract Value per Organization ($K) 8,720 9,315 9,470 10,189 10,579 10,492 11,601 12,427 13,305 2004 2005 2006 2007 2008 2009 2010 2011 2012 Research Client Organizations Sales Strategy to Capture Market Opport
Slide 110: Sales Strategy to Capture Market Opportunity
Sales Strategy to Capture Market Opportunity Coverage Capacity Sales Effectiveness
Slide 111: Sales Strategy: Sales Effectiveness
Sales Strategy to Capture Market Opportunity • Great Talent • World Class Training • Proprietary Tools and Best Practices Sales Effectiveness
Slide 112: Gartner Sales: A Great Place to Work
Gartner Sales: A great place to work Gartner reputation
Slide 113: Gartner Sales: A Great Place to Work
Gartner Sales: A great place to work Gartner culture • Access to the C - Level • Collaboration • Leading tools and Best Practices • Innovative products
Slide 114: Gartner Sales
Gartner Sales Strong Value Proposition Winning Strategy Vast Market Opportunity
Slide 115: Gartner
Gartner
Slide 116: Chief Financial Officer Chris Lafond
Gartner Chief Financial Officer Chris Lafond
Slide 117: Consistent, Winning Growth Strategy
Consistent, Winning Growth Strategy Performance - Driven Leadership Team Continuous Improvement and Innovation
Slide 118: The Financial Plan We Set in 2005
Consistent, Winning Growth Strategy The Financial Plan We Set in 2005 117 • Grow the Research business • Optimize the Events portfolio • Improve the profitability of the Consulting business • Leverage our G&A infrastructure • Drive shareholder value
Slide 119: Grow the Research Business
Consistent, Winning Growth Strategy Grow the Research Business 509 1,263 2004 2012 $M Contract Value >100%
Slide 120: Grow the Research Business: Revenue Mix
Consistent, Winning Growth Strategy Grow the Research Business Events 13% 2004 Consulting 30% Research 57% Events 11% 2012 Consulting 19% Research 70%
Slide 121: Research Contribution Margin
Consistent, Winning Growth Strategy Grow the Research Business 2004 62% Research Contribution Margin
Slide 122: Research Contribution Margin
Consistent, Winning Growth Strategy Grow the Research Business 68% 2004 62% 2012 +600 bps Research Contribution Margin
Slide 123: Optimize the Events Portfolio
Consistent, Winning Growth Strategy Optimize the Events Portfolio # Events +11% 2004 62 2012 56 Attendees 30,999 46,307 +49% 2004 2012 1,321 +39% 1,839 2004 2012 Exhibitors
Slide 124: Improve Consulting Profitability
Revenue ($M) 2004 $259 2012 $305 Headcount 2004 493 2012 503 Gross Contribution Margin (%) 2004 34% 2012 36% Consistent, Winning Growth Strategy Improve Consulting Profitability
Slide 125: Leverage our G&A Infrastructure
Consistent, Winning Growth Strategy Leverage our G&A Infrastructure 2004 18% of revenue 2012 15% of revenue - 300 bps G&A % of Revenue
Slide 126: Drive Shareholder Value
Consistent, Winning Growth Strategy Drive Shareholder Value Shares Outstanding (in thousands) 2004 126,326 2012 95,716 - 24% Share Repurchases 47 million shares repurchased Over $1 billion returned to shareholders 2005: META ($160M) 2009 : AMR Research ($63M) 2009: Burton Group ($56M) 2012: IDEAS ($
Slide 127: The Financial Plan We Set in 2005
Consistent, Winning Growth Strategy The Financial Plan We Set in 2005 126 • Grow the Research business • Optimize the Events portfolio • Improve the profitability of the Consulting business • Leverage our G&A infrastructure • Drive shareholder value
Slide 128: Earnings & Cash Flow Track Record
Consistent, Winning Growth Strategy Earnings & Cash Flow Track Record $103 $315 2004 2012 Normalized EBITDA (b) $ in millions 11.8% 19.5% 2004 2012 EBITDA% Normalized EBITDA Margin (b) $0.09 $1.73 2004 2012 EPS from Continuing Operations $23 $237 2004 2012 Free Cash Flow (a) $ in millions (a) See th
Slide 129: Areas of Focus
• Double - digit revenue growth • Margin expansion • Sales productivity • Cash flow generation • Capital deployment Consistent, Winning Growth Strategy Areas of Focus 128
Slide 130: Market Opportunity Remains Large and Untapped
Market opportunity remains large and untapped 99,370 Total 108,000 Prospects 38,000 # of Enterprises 12 18 5 4 8 Market Opportunity Other* Front - line IT Professionals Supply Chain CIOs IT Functional Leaders Clients 8,630 Percent of Total 100% 92% 8% $ 1.3 Billion** * technology, professional servi
Slide 131: Client Enterprise and Contract Value Growth
Client enterprise and Contract Value growth + ~2,800 2012 8,630 2011 8,070 2010 7,680 2009 6,544 2008 6,400 2007 6,798 2006 6,318 2005 6,215 2004 5,818 # of client enterprises 2005 2004 + ~$750M 2012 2009 2011 2006 2010 2008 2007 Research Contract Value $593M $509M $1,116M $1,263M $640M $978M $753M
Slide 132: Research Business Characteristics
Research Business Characteristics Research 72% Extraordinary Research Insight • Subscription - based model with recurring revenue • Annual contracts • High levels of retention • Negative working capital • High incremental margins Note: Based upon mid - point of 2013 Revenue Guidance
Slide 133: Research Business Economics
Research Business Economics 70% Research Incremental Margins • Highly leveraged intellectual property and research assets • Leverage fixed cost structure • High retention rates • Consistent new business growth
Slide 134: Margin Expansion
Margin Expansion 11.8% 19.5% Normalized EBITDA Margin (a) +770 bps 2004 2012 Consulting 40% Events 50% Research 70% Incremental Margins (a) See the attached Glossary for the definition of Normalized EBITDA, and cautionary statement regarding this non - GAAP financial measure
Slide 135: Improving Sales Productivity
Improving Sales Productivity 17% $25k 16% $15k $5k 15% CV Growth Scenarios Productivity improvements from 2012 actual performance Contract value growth if average productivity improves by…
Slide 136: Cash Flow Generation
Cash Flow Generation (a) See the attached Glossary for the definition of Free Cash Flow, and cautionary statement regarding this non - GAAP financial measure . $104M $86M $96M $137M $166M $160M $147M $192M $214M 2012 2011 2009 2010 2008 Free Cash Flow (a) Net Income $236M • Upfront billing for Resea
Slide 137: Capital Deployment
Capital Deployment 2004 2012 - 24% Share Repurchases 47 million shares repurchased Over $1 billion returned to shareholders 2005: META ($160M) 2009 : AMR Research ($63M) 2009: Burton Group ($56M) 2012: IDEAS ($18M) Strategic Acquisitions ~$300M on four deals Shares Outstanding (in thousands) 126,326
Slide 138: Long-Term Financial Objectives
Long - Term Financial Objectives Normalized EBITDA (a) margin improvement 50 – 150 bps per year Total Revenue Growth 11 – 16% Annual Research 15 – 20% Consulting 3 – 8% Events 5 – 10% (a) See the attached Glossary for the definition of Normalized EBITDA, and cautionary statement regarding this non -
Slide 139: Total Revenue
Consistent, Winning Growth Strategy (a) Restated to exclude results of Vision Events. Total Revenue (a, c) $ in millions 869 964 1,037 1,168 1,279 1,140 1,288 1,469 1,775 – 1,820 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013E 1,616 2013 Guidance: +10 – 13% (b) See Forward Looking Statement discl
Slide 140: Normalized EBITDA
Consistent, Winning Growth Strategy 103 100 150 190 214 191 230 279 315 350 – 370 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013E Normalized EBITDA (a, b, c) (a) Restated to exclude results of Vision Events. (b) See the attached Glossary for the definition of Normalized EBITDA, and cautionary sta
Slide 141: EPS from Continuing Operations
Consistent, Winning Growth Strategy $0.09 - $0.05 $0.47 $0.65 $0.98 $0.85 $0.96 $1.39 $ 1.73 $1.96 – $2.10 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013E EPS from Continuing Operations (a) 2013 Guidance: +13 – 21% (a) See Forward Looking Statement disclaimer on page 1 for factors that may affect
Slide 142: Free Cash Flow
Consistent, Winning Growth Strategy (a) Restated to exclude results of Vision Events. 23 5 85 124 160 147 192 214 237 259 - 278 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013E Free Cash Flow (a, b, c) $ in millions 2013 Guidance: +10 – 17% (b) See Forward Looking Statement disclaimer on page 1 fo
Slide 143: Why Invest in Gartner
Why Invest in Gartner Exceptional Business Model Strong Value Proposition Winning Strategy Vast Market Opportunity
Slide 144: Attractive and Predictable Business Model
Attractive and Predictable Business Model 143 • Subscription - based business model • High renewal/retention rates – 80% plus – attractive level of recurring revenue • Negative working capital • High incremental margins • Strong balance sheet • High level of conversion from earnings into FCF
Slide 145: Why Invest in Gartner
Strong Value Proposition Winning Strategy Vast Market Opportunity Why Invest in Gartner
Slide 146: Projected 2013 Earnings and Cash Flow Outlook
Projected 2013 Earnings and Cash Flow Outlook Reported {Sin millons except per share data) 2013 Projection — % change Diluted Earnings pershare $1.96 - 2.10 13% - 21% Operating Cash Flow $296 - 316 6% - 13% Capital Expenditures 37) - (38) Free Cash Flow (*) 259 - 278 10% - 17% (9) See te ataehes say
Slide 147: Projected 2013 Full Year Revenue and EBITDA Outlook
Projected 2013 Full Year Revenue and EBITDA Outlook ($ in millions except per share data) Research $ 1,280 - 1,300 13% - 14% Consulting 310 - 325 2% - 7% Events 185 - 195 6% - 12% Total Revenue $ 1,775 - 1,820 10% - 13% 2013 Projection (1) Reported % change (1) Normalized EBITDA (2) $350 - 370 11% -
Slide 148: Projected 2013 Earnings and Cash Flow Outlook
Projected 2013 Earnings and Cash Flow Outlook ($ in millions except per share data) 2013 Projection (2) Reported % change Diluted Earnings per share $ 1.96 - 2.10 13% - 21% Operating Cash Flow $ 296 - 316 6% - 13% Capital Expenditures (37) - (38) Free Cash Flow (1) 259 - 278 10% - 17% (1) See the at