Slide 1: First Quarter 2025 Results
First Quarter 2025 Results May 6, 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 the so
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 1Q 2025 Financial Results Page 4 Updated 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 1Q 2025 G
Slide 4: 1Q 2025 Growth and Financial Results
1Q 2025 Growth and Financial Results Global Contract Value (CV) Consolidated Revenues Research Revenues Free Cash Flow 6.7% $5.1B 4.2% $1,534M 4.2% $1,322M $288M FX Neutral: 5.7% FX Neutral: 5.8% 69.0% Contribution Margin 74.5% Contribution Margin Global Technology Sales CV Adj. EBITDA Conference Re
Slide 5: Guidance
Guidance 2025 Guidance • Research revenues reflect an expectation that both 1) Q1 $ millions, except per share amounts; shares in millions new business and retention trends and 2) non-subscription traffic and pricing trends continue for the balance of the year. Guidance as of February 4, Updated Gui
Slide 6: Research Metrics
Research Metrics Global Technology Sales $ millions 1Q24 2Q24 3Q24 4Q24 1Q25 Contract Value 3,650 3,689 3,754 3,911 3,853 Y/Y FX Neutral Growth 5.3 % 6.0 % 5.9 % 6.5 % 5.5 % Quarterly NCVI -23 39 65 157 -58 Quota Bearing Head Count 3,602 3,575 3,666 3,804 3,707 Y/Y Growth -1.7 % -2.4 % 1.0 % 4.5 % 2
Slide 7: Research: Additional Metrics
Research: Additional Metrics Global Technology Sales $ millions 1Q24 2Q24 3Q24 4Q24 1Q25 LTM Net Contract Value Increase (NCVI) 183 208 210 238 203 Productivity ($ thousands) 50 57 58 65 56 Y/Y Growth -46.4% -22.1% -5.8% 11.0% 12.9% Client Enterprises 12,815 12,617 12,461 12,432 12,107 Contract Valu
Slide 8: Research Segment
Research Segment Revenues $ millions Contribution Margin 74.5% 74.5% 1,311 1,322 74.1% 1,281 73.7% 73.7% 1,268 1,266 1Q24 2Q24 3Q24 4Q24 1Q25 1Q24 2Q24 3Q24 4Q24 1Q25 $ millions 1Q24 2Q24 3Q24 4Q24 1Q25 2024 Revenues 1,268 1,266 1,281 1,311 1,322 5,126 Y/Y Growth 4.2% 4.8% 5.1% 5.4% 4.2% 4.9% Y/Y FX
Slide 9: Conferences Segment
Conferences Segment Revenues $ millions Contribution Margin 58.1% 251 186 47.6% 40.2% 37.7% 70 76 73 33.2% 1Q24 2Q24 3Q24 4Q24 1Q25 1Q24 2Q24 3Q24 4Q24 1Q25 $ millions 1Q24 2Q24 3Q24 4Q24 1Q25 2024 Revenues 70 186 76 251 73 583 Y/Y Growth 8.4% 10.2% 32.5% 17.2% 3.6% 15.5% Y/Y FX Neutral Growth 8.5%
Slide 10: Consulting Segment
Consulting Segment Revenues $ millions Contribution Margin 153 40.3% 143 37.6% 38.2% 140 135 35.1% 128 32.5% 1Q24 2Q24 3Q24 4Q24 1Q25 1Q24 2Q24 3Q24 4Q24 1Q25 $ millions 1Q24 2Q24 3Q24 4Q24 1Q25 2024 Revenues 135 143 128 153 140 559 Y/Y Growth 6.0% 13.1% -3.9% 19.3% 3.7% 8.5% Y/Y FX Neutral Growth 6
Slide 11: Capital Structure and Allocation
Capital Structure and Allocation $ billions 3/31/2025 Rate Maturity Capital Structure Cash 2.1 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% 2028
Slide 12: Free Cash Flow Conversion (LTM)
Free Cash Flow Conversion (LTM) % of Revenue - LTM 1Q24 2Q24 3Q24 4Q24 1Q25 Our typical Adjusted EBITDA margin to Free Cash Flow Adjusted EBITDA 24.9 25.0 24.8 24.8 24.6 margin conversion is about 4-6 percentage points. Cash interest, net (0.9) (0.8) (0.7) (0.6) (1.0) Our typical Free Cash Flow conv
Slide 13: 1Q 2025 GAAP Financial Statements
1Q 2025 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 March 31, 2025 2024 Consolidated Revenues: Research $ 1,321.8 $ 1,268.2 Statements of Conferences Consulting 72.6 139.7 70.1 134.6 Total revenues 1,534.1 1,472.9 Operations Costs and expenses: Cost of services and product development 475.0 459.4 Unaudited; in millions, e
Slide 15: Condensed Consolidated Balance Sheets
March 31, December 31, Assets 2025 2024 Condensed Current assets: Cash and cash equivalents $ 2,091.0 $ 1,933.1 Consolidated Fees receivable 1,503.6 1,696.2 Deferred commissions 377.4 413.9 Balance Prepaid expenses and other current assets 160.0 153.3 Total current assets 4,132.0 4,196.5 Sheets Prop
Slide 16: Condensed Consolidated Statement of Cash Flows
Three Months Ended Condensed Operating activities: 2025 March 31, 2024 Net income $ 210.9 $ 210.5 Consolidated Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 50.8 49.3 Stock-based compensation expense 50.2 50.5 Statement of Deferred ta
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 1Q24 2Q24 3Q24 4Q24 1Q25 2024 Revenues 1,473 1,595 1,484 1,715 1,534 6,267 Y/Y Growth 4.5% 6.1% 5.4% 8.1% 4.2% 6.1% Y/Y FX Neutral Growth 4.6% 6.9% 5.6% 8.3% -75.2% 6.4% Contribution 1,013 1,082 1,009 1,140 1,059 4,244
Slide 19: Quarterly Financial Summary Charts
Quarterly Financial Summary Charts Contract Value $ millions @ '25 rates 5,114 Quarterly Net Contract Value Increase (NCVI) $ millions 5,051 213 103 4,902 67 4,799 (10) 4,732 (63) 1Q24 2Q24 3Q24 4Q24 1Q25 1Q24 2Q24 3Q24 4Q24 1Q25 Revenues $ millions Adj. EBITDA $ millions 1,715 417 416 1,595 382 385
Slide 20: Non-GAAP P&L
Non-GAAP P&L $ millions except per share amounts 1Q24 2Q24 3Q24 4Q24 1Q25 2024 Revenues 1,473 1,595 1,484 1,715 1,534 6,267 Less Cost of Services 459 513 475 575 475 2,023 Contribution 1,013 1,082 1,009 1,140 1,059 4,244 Less SG&A 690 712 712 771 730 2,885 Plus Equity Comp 51 40 34 30 50 155 Plus Ot
Slide 21: 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) other (income) expense, net; (v) stock-based compensation expense; (
Slide 22: 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 23: Adjusted Working Capital and Non-Recurring Items
Adjusted Working Capital and Non-Recurring Items Adjusted working capital = Free Cash Flow - Adjusted EBITDA + Cash Taxes + Cash Interest Net of Interest income + Capex $ millions Non-Recurring Items Included in Free Cash Flow: 1Q24 2Q24 3Q24 4Q24 1Q25 Insurance Proceeds — — 300 — — Real Estate Paym
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 Reconciliation- Net Income to Adjusted EBITDA: 1Q24 2Q24 3Q24 4Q24 1Q25 (a) Consists of the gain on event cancellation Net Income 210.5 229.5 415.0 398.6 210.9 insurance claims for events cancelled in Interest expense, net 19.2 20.0 18.0 12.3 13.4 2020 and 2021. G
Slide 26: Non-GAAP Reconciliations
Non-GAAP Reconciliations In millions except per share amounts Reconciliations - GAAP Net Income to Adjusted Net Income: 1Q24 2Q24 3Q24 4Q24 1Q25 (a) Consists of non-cash amortization charges GAAP net income 210.5 229.5 415.0 398.6 210.9 from acquired intangibles. Acquisition and other adjustments: —
Slide 27: Non-GAAP Reconciliations
Non-GAAP Reconciliations $ millions Reconciliation - Interest, net to Non-GAAP Interest, net 1Q24 2Q24 3Q24 4Q24 1Q25 Interest, net 19.2 20.0 18.0 12.3 13.4 Less amortization of deferred financing fees (1.5) (1.0) (1.0) (1.0) (1.0) Non-GAAP Interest, net 17.7 19.0 16.9 11.3 12.4 Effective GAAP Tax R
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 ≥$ 835 GAAP Diluted EPS (