Slide 1: Gartner September 2007
Gartner September 2007
Slide 2: Forward-Looking Statements
Forward-Looking Statements Statements contained in this presentation regarding the growth and prospects of the business, the Company's projected 2007 financial results, 2005-2008 Roadmap Objective, 2008-2009 Roadmap Objective and all other statements in this release other than recitation of historic
Slide 3: Gartner Is ...
Gartner Is ... The world's leading IT research and advisory company, delivering the technology-related insight necessary for our clients to make the right decisions, every day Three lines of business: Research, Consulting and Events 2007 estimated revenue of almost $1.2 billion Approximately 650 ana
Slide 4: Why Invest in Gartner
Why Invest in Gartner Business services company providing high value to clients Leading brand name in technology related research World's leading IT conference provider Substantial cost savings produced for clients each year Attractive business model Strong cash flow High incremental margins Recurri
Slide 5: We Deliver our Insight Through Three Business Segments
We Deliver our Insight Through Three Business Segments Research Content Sales Events Consulting Research World's largest IT conference provider 74 events in 2006 with over 41,000 attendees Revenues derived from attendees and sponsors World's most comprehensive IT research and advice 650 analysts acr
Slide 6: Research: The Growth Engine of Our Business
Gartner Research The Growth Engine of Our Business Delivering practical and actionable research tailored to client segments End-users - Investors CIOs - Professional service firms Tech and telecom providers Launched new, premium, role-based products beginning in 2006 Gartner for IT Leaders / Gartner
Slide 7: Research Product Programs
Gartner Research Product Programs Core Research Gartner for IT Leaders Industry Advisory Services Gartner Invest Gartner for Business Leaders Dataquest Core Research End User High Tech and Telecom Note: Pie charts reflect business composition in 2006.
Slide 8: Consulting: Independent and Objective IT Strategy Advice
Gartner Consulting Independent and Objective IT Strategy Advice Overview Approximately 500 consultants deliver client specific IT strategy consulting using Gartner's core research platform Ability to cross-sell existing research customer base 25% of customers use both consulting and research product
Slide 9: Events: Leveraging Gartner's Research Platform
Gartner Events Leveraging Gartner's Research Platform Driven by our proprietary Research content Depth and breadth Unique event formats include Symposium / ITXpo, Summit and Vision 74 events with over 41,000 attendees and 2,786 exhibitors in 2006 Cross-selling opportunities Drive Research awareness
Slide 10: Strategy for Growth
Strategy for Growth Continue to provide extraordinary research Productively expand our salesforce Continue to introduce innovative, high-value offerings Provide world class client service
Slide 11: Research Has A Significant Untapped Opportunity
Research Has A Significant Untapped Opportunity Total Opportunity $ in Billions $11.5 $5.3 $4.3 $1.9 Worldwide Americas Europe, Middle East, Africa Asia Pacific End User Vendor/Investor Total Research opportunity estimated at $18.5 billion Source: Gartner estimates
Slide 12: Salesforce Growth Drives CV Growth
Salesforce Growth Drives CV Growth Weighted Average Salesforce and Total Contract Value $640 512 457 438 418 516 634 $482 $489 $534 $509 $593 2001 2002 2003 2004 2005 2006 Salesforce Contract Value ($ in millions)
Slide 13: Sales Coverage Strategy
Account Executives that cover too many clients or prospects Clients with a low Contract Value compared to the company turnover or industry Sales Coverage Strategy Localized Selling Approach - local sales people, selling to local opportunities. Non Headquarter Locations Enterprises and organizations
Slide 14: We Are Productively Growing Our Salesforce
14 We Are Productively Growing Our Salesforce Starting Headcount 2005 Ending Headcount Increase % Increase 2006 2007E 443 550 107 24% 550 663 113 20% 663 ~813 ~150 ~23%
Slide 15: Recent Performance Demonstrates Momentum
Recent Performance Demonstrates Momentum 2004 2005 2006 2007E 2005 2006 0.13 -0.02 0.5 0.7 -0.03 0.51 GAAP EPS Note: 2007 estimates reflect the midpoint of Company guidance. (1) See the attached Glossary for the definition of Normalized EBITDA, a reconciliation to Net Income, and cautionary statemen
Slide 16: 2007 Guidance: Progress on the Roadmap
2007 Guidance Progress on the Roadmap Total Revenue Research Consulting Events Other Normalized EBITDA(1) GAAP EPS(2) Current Guidance $1,168 - 1,187 $193 - 203 $0.66 - $0.73 % Change over 2006 15 - 16% 4 - 6% 9 - 12% 24 - 30% 32 - 46% Operating Cash Flow $135 - 150 27 - 41% 2005-2008 Roadmap Object
Slide 17: 2008-2009 Roadmap: Accelerated Growth Expected
2008 - 2009 Roadmap Accelerated Growth Expected Total Revenue Research Consulting Events Normalized EBITDA(1) margin Operating Cash Flow (millions) Tax Rate 2007 Guidance 10 - 12% 15 - 16% 4 - 6% 9 - 12% 16 - 18% 33 - 34% $135 - 150 Capital Spending (millions) $20 - 25 2005-2008 Roadmap Objective 8
Slide 18: Glossary: Non-GAAP Financial Measure
Glossary Non-GAAP Financial Measure Investors are cautioned that Normalized EBITDA contained in this presentation is not a financial measure under generally accepted accounting principles. In addition, it should not be construed as an alternative to any other measures of performance determined in ac
Slide 19: Gartner
Gartner