Slide 1: Fourth Quarter 2024 Results
Fourth Quarter 2024 Results February 4, 2025 © 2025 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates. This presentation, including all supporting materials, is proprietary to Gartner, Inc. and/or its affiliates and is for
Slide 2: Forward Looking Statement and Explanatory Note
Forward Looking Statement and Explanatory Note Statements contained in this presentation regarding the growth and prospects of the business, the Company’s projected 2025 financial results, long-term objectives and all other statements in this presentation other than recitation of historical facts ar
Slide 3: Contents
Contents Consolidated Financials and Guidance 4Q 2024 Financial Results Page 4 2025 Guidance Page 5 Segment Results Research Page 6 - 8 Conferences Page 9 Consulting Page 10 Capital Allocation Capital Structure and Allocation Page 11 Free Cash Flow Page 12 GAAP Financial Statements 4Q 2024 GAAP Fina
Slide 4: 4Q 2024 Growth and Financial Results
4Q 2024 Growth and Financial Results Global Contract Value (CV) Consolidated Revenues Research Revenues Free Cash Flow 7.8% $5.3B 8.1% $1,715M 5.4% $1,311M $311M FX Neutral: 8.3% FX Neutral: 5.7% 66.5% Contribution Margin 74.1% Contribution Margin Global Technology Sales CV Adj. EBITDA Conference Re
Slide 5: Guidance
Guidance 2025 Guidance • Research Revenues: CV continues to accelerate in 2025; FX $ millions, except per share amounts; shares in millions neutral research subscription revenue growth near 8%; non- subscription revenues reflect continuation of Q4 trends. Guidance as of • Conferences revenues reflec
Slide 6: Research Metrics
Research Metrics Global Technology Sales $ millions 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 Contract Value 3,563 3,578 3,643 3,779 3,757 3,797 3,865 4,029 Y/Y FX Neutral Growth 8.8 % 7.3 % 6.5 % 6.3 % 5.4 % 6.1 % 6.1 % 6.6 % Quarterly NCVI 9 14 66 136 -22 40 68 165 Quota Bearing Head Count 3,666 3,6
Slide 7: Research: Additional Metrics
Research: Additional Metrics Global Technology Sales $ millions 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 LTM Net Contract Value Increase (NCVI) 288 244 223 225 194 219 221 250 Productivity ($ thousands) 96 75 64 62 53 60 61 69 Y/Y Growth -31.6% -44.8% -51.6% -43.4% -44.9% -20.6% -5.2% 10.8% Client En
Slide 8: Research Segment
Research Segment Revenues $ millions Contribution Margin 74.5% 1,311 74.1% 74.1% 1,268 1,281 73.9% 1,266 1,243 73.7% 73.7% 1,217 1,208 1,219 73.4% 73.3% 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 $ millions 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 2023 2024 Revenu
Slide 9: Conferences Segment
Conferences Segment Revenues $ millions Contribution Margin 58.3% 58.1% 251 214 50.4% 186 47.6% 169 41.4% 40.2% 76 35.8% 65 57 70 33.2% 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 $ millions 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 2023 2024 Revenues 65 169 57 214
Slide 10: Consulting Segment
Consulting Segment Revenues $ millions Contribution Margin 153 40.0% 40.3% 143 37.4% 36.5% 37.6% 35.1% 135 32.5% 133 128 128 27.1% 127 126 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 $ millions 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 2023 2024 Revenues 127 126 133
Slide 11: Capital Structure and Allocation
Capital Structure and Allocation $ billions 12/31/2024 Rate Maturity Capital Structure Cash 1.9 nm nm • Optimizes financial leverage benefits and financial flexibility • Target 2-2.5x leverage1 Revolver 0.3 Term SOFR + 135 2029 • ~$300-500M cash is needed to run the business 2028 Bonds 0.8 4.50% 202
Slide 12: Free Cash Flow Conversion (LTM)
Free Cash Flow Conversion (LTM) % of Revenue - LTM 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 Our typical Adjusted EBITDA margin to Free Cash Flow margin Adjusted EBITDA 27.1 26.4 26.0 25.1 24.9 25.0 24.8 24.8 conversion is about 4-6 percentage points. Cash interest, net (1.7) (1.5) (1.3) (1.4) (0.9) (
Slide 13: 4Q 2024 GAAP Financial Statements
4Q 2024 GAAP Financial Statements 13 © 2025 Gartner, Inc. and/or its affiliates. All rights reserved.
Slide 14: Condensed Consolidated Statements of Operations
Three Months Ended Condensed December 31, 2024 2023 Consolidated Revenues: Research $ 1,310.6 $ 1,243.2 Statements of Conferences Consulting 251.3 153.2 214.4 128.5 Total revenues 1,715.1 1,586.1 Operations Costs and expenses: Cost of services and product development 574.9 529.8 Unaudited; in millio
Slide 15: Condensed Consolidated Balance Sheets
December 31, December 31, Assets 2024 2023 Condensed Current assets: Cash and cash equivalents $ 1,933.1 $ 1,319.0 Consolidated Fees receivable 1,696.2 1,601.2 Deferred commissions 413.9 380.5 Balance Prepaid expenses and other current assets 153.3 127.2 Total current assets 4,196.5 3,427.9 Sheets P
Slide 16: Condensed Consolidated Statement of Cash Flows
Three Months Ended Condensed Operating activities: 2024 December 31, 2023 Net income $ 398.6 $ 208.6 Consolidated Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 51.2 49.3 Stock-based compensation expense 30.2 25.5 Statement of Deferred
Slide 17: Appendix
Appendix 17 © 2025 Gartner, Inc. and/or its affiliates. All rights reserved.
Slide 18: Consolidated Financial Summary
Consolidated Financial Summary $ and shares in millions except per share amounts 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 2023 2024 Revenues 1,409 1,503 1,409 1,586 1,473 1,595 1,484 1,715 5,907 6,267 Y/Y Growth 11.6% 9.2% 5.8% 5.4% 4.5% 6.1% 5.4% 8.1% 7.9% 6.1% Y/Y FX Neutral Growth 14.3% 10.0% 4.9%
Slide 19: Quarterly Financial Summary Charts
Quarterly Financial Summary Charts Contract Value $ millions @ '24 rates Quarterly Net Contract Value Increase (NCVI) $ millions 5,262 220 182 5,042 4,937 102 104 4,880 4,870 67 4,698 41 4,596 25 4,555 (10) 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 Revenues $ mi
Slide 20: Contract Value at 2025 FX Rates
Contract Value at 2025 FX Rates $million 1Q24 2Q24 3Q24 4Q24 GTS 3,650 3,689 3,754 3,911 GBS 1,082 1,110 1,147 1,203 Global 4,732 4,799 4,901 5,114 Numbers are updated to reflect 2025 FX rates and product retirements. 20 © 2025 Gartner, Inc. and/or its affiliates. All rights reserved.
Slide 21: Non-GAAP P&L
Non-GAAP P&L $ millions except per share amounts 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 2023 2024 Revenues 1,409 1,503 1,409 1,586 1,473 1,595 1,484 1,715 5,907 6,267 Less Cost of Services 435 487 451 530 459 513 475 575 1,903 2,023 Contribution 974 1,016 958 1,056 1,013 1,082 1,009 1,140 4,004 4,2
Slide 22: Definitions
Definitions Adjusted EBITDA and Adjusted EBITDA Margin: Represents GAAP net income (loss) adjusted for: (i) interest expense, net; (ii) tax provision (benefit); (iii) gain on event cancellation insurance claims, as applicable; (iv) gain/loss on divestitures, as applicable; (v) other (income) expense
Slide 23: Definitions of Key Metrics/Calculations
Definitions of Key Metrics/Calculations Segment Business Measurements Research Contract value represents the dollar value attributable to all of our subscription-related contracts. It is calculated as the annualized value of all contracts in effect at a specific point in time, without regard to the
Slide 24: Non-GAAP Reconciliations
Non-GAAP Reconciliations 24 © 2025 Gartner, Inc. and/or its affiliates. All rights reserved.
Slide 25: Non-GAAP Reconciliations
Non-GAAP Reconciliations $ millions (a) Consists of the gain on event cancellation insurance claims for events cancelled in Reconciliation- Net Income to Adjusted EBITDA: 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 2020 and 2021. Net Income 295.8 198.0 180.0 208.6 210.5 229.5 415.0 398.6 (b) Consists of
Slide 26: Non-GAAP Reconciliations
Non-GAAP Reconciliations In millions except per share amounts Reconciliations - GAAP Net Income to Adjusted Net Income: 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 (a) Consists of non-cash GAAP net income 295.8 198.0 180.0 208.6 210.5 229.5 415.0 398.6 amortization charges from Acquisition and other adj
Slide 27: Non-GAAP Reconciliations
Non-GAAP Reconciliations $ millions Reconciliation - Interest, net to Non-GAAP Interest, net 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 Interest, net 27.4 24.6 21.8 20.5 19.2 20.0 18.0 12.3 Less amortization of deferred financing fees (1.2) (1.2) (1.2) (1.2) (1.5) (1.0) (1.0) (1.0) Non-GAAP Interest, n
Slide 28: Non-GAAP Reconciliations - 2025 Guidance
Non-GAAP Reconciliations - 2025 Guidance Financial Outlook Reconciliation: GAAP Net Income to Adjusted EBITDA Financial Outlook Reconciliation: GAAP Diluted EPS to Adjusted EPS 2025 2025 (unaudited; $ in millions) Guidance (unaudited; $ in millions) Guidance GAAP net income ≥$ 816 GAAP Diluted EPS (