Gartner, Inc. · NYSE:IT
Gartner — Investor Day (February 2015)
184 slides from Gartner's investor day presentation, Feb 13, 2015
Slide 1: Investor Relations introduction
0 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. This presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is for the sole us e o f the intended Gartner audience or other authorized recipients. This pre
Slide 2: Forward-looking statements
1 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Statements contained in this presentation regarding the growth and prospects of the business, the Company’s projected 2015 financial results, long - term objectives and all other statements in this pres
Slide 3: Agenda
2 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. 2 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Agenda Introduction Brian Shipman Business Overview Gene Hall Research Peter Sondergaard Events Alwyn Da
Slide 4: Gene Hall, CEO
3 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. This presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is for the sole us e o f the intended Gartner audience or other authorized recipients. This pre
Slide 5: Ongoing Performance Improvement
4 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Ongoing Performance Improvement
Slide 6: Disruptive, Technology-Based Innovation
5 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Disruptive, Technology - Based Innovation
Slide 7: Security Threats
6 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Security Threats
Slide 8: AND PROPRIETARY I AND PROPRIETARY I
7 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. 7 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved.
Slide 9: Why Gartner
8 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Why Gartner Winning Strategy Strong Value Proposition Vast Market Opportunity Exceptional Business Model
Slide 10: Extraordinary Research Insight: revenue mix
9 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Note: Percentages based on midpoint of 2015 revenue guidance . Extraordinary Research Insight 11% Gartner Events Business 16% Gartner Consulting Business 73% Gartner Research Business
Slide 11: Consistent, Double-Digit Growth
10 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Contract Value EBITDA EPS Cash Flow Consistent, Double - Digit Growth: Impressive Sustained Track Record of Performance
Slide 12: A Vast, Untapped Market Opportunity
11 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. A Vast, Untapped Market Opportunity 8 Other Business Leaders 8 Marketing Function IT Function Technical Professionals CIOs IT Leaders 14 19 5 Supply Chain Function 4 Gartner CV $1.6 (in $ billions) $38
Slide 13: Winning Growth Strategy
12 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Winning Growth Strategy Performance - Driven Leadership Team Continuous Improvement and Innovation
Slide 14: Winning Growth Strategy
13 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Winning Growth Strategy
Slide 15: AND PROPRIETARY I
14 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved.
Slide 16: Winning Growth Strategy
15 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Winning Growth Strategy
Slide 17: Gartner sales people
16 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner sales people
Slide 18: Winning Growth Strategy
17 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Winning Growth Strategy
Slide 19: Gartner product set
18 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner product set
Slide 20: Winning Growth Strategy
19 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Winning Growth Strategy
Slide 21: AND PROPRIETARY I
20 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved.
Slide 22: Winning Growth Strategy
21 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Winning Growth Strategy Performance - Driven Leadership Team Continuous Improvement and Innovation
Slide 23: Performance Driven Leadership Team
22 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Performance Driven Leadership Team Tenure World - Class Talent Global 8 years Avg Tenure in Role 14 years Avg Tenure at Gartner Nationality Source of Leadership US Non - US External 31% Acquisition 8%
Slide 24: 2007 2014
23 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. 2007 2014
Slide 25: 2004-2014 EPS, free cash flow, contract value, EBITDA
24 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 EPS from Continuing Operations 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Free
Slide 26: Winning Strategy
25 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Winning Strategy Strong Value Proposition Vast Market Opportunity Exceptional Business Model
Slide 27: AND PROPRIETARY I AND PROPRIETARY I
26 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. 26 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved.
Slide 28: Peter Sondergaard, SVP Research
27 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. This presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is for the sole us e o f the intended Gartner audience or other authorized recipients. This pr
Slide 29: Today's Roadmap
28 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Today’s Roadmap Accelerating Impact of Technology Unparalleled Value of Gartner Research Innovative Products
Slide 30: Digital Business
DIGITAL BUSINESS NEW BUSINESS DESIGNS MERGING THE VIRTUAL AND PHYSICAL WORLDS
Slide 31: The Internet of Things
THE INTERNET OF THINGS THE NETWORK OF PHYSICAL OBJECTS THAT CONTAIN EMBEDDED TECHNOLOGY TO SENSE OR INTERACT WITH THEIR INTERNAL STATE OR EXTERNAL ENVIRONMENT
Slide 32: Digital Business
DIGITAL BUSINESS NEW BUSINESS DESIGNS MERGING THE VIRTUAL AND PHYSICAL WORLDS
Slide 33: Power, Investments, People
32 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. POWER INVESTMENTS PEOPLE
Slide 34: Power
33 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. POWER
Slide 35: Every business unit is a technology start-up
TECHNOLOGY START - UP Every business unit is a
Slide 36: Business Technology Spending
35 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. 38% Outside of IT 2017: 50%+ Outside of IT Business Technology Spending Source: Gartner IT Key Metrics Data 2014
Slide 37: Investments
36 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. INVESTMENTS
Slide 38: IT Budget Allocation
IT Budget Allocation 19% 16% 24% 11% 13% 7% 10% Application Development Application Support Data Center End User Computing Networks Service Desk Management Applications Infrastructure and Operations Source: Gartner IT Key Metrics Data 2014 Management
Slide 39: IT Budget Allocation
Services 23% Software 20% Hardware 16% Personnel 41% IT Budget Allocation Source: Gartner IT Key Metrics Data 2014
Slide 40: IT Budget Allocation
Personnel 41% IT Budget Allocation Source: Gartner IT Key Metrics Data 2014
Slide 41: IT Personnel Allocation
IT Personnel Allocation Infrastructure and Operations 39% Service Desk 10% Application Development 21% Application Support 18% IT Management 8% Finance and Administration 4% Source: Gartner IT Key Metrics Data 2014
Slide 42: Digital Budget Allocation
Digital Budget Allocation Services 23% Software 20% Hardware 16% Personnel 41% Services 45% Software 20% Hardware 10% Personnel 25% IT Budget Allocation Source: Gartner IT Key Metrics Data 2014
Slide 43: People
42 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. PEOPLE
Slide 44: Digital Personnel Allocation
Infrastructure and Operations 39% Service Desk 10% Application Development 21% Application Support 18% IT Management 8% Finance and Administration 4% Data Scientists 20% Digital Product Leadership 20% Software Development 17% Customer Experience 8% Supplier Management 10% Infrastructure and Operatio
Slide 45: Skills needed: Now, 2017, 2020
Now 2017 2020 • Mobile • User Experience • Data Sciences • Smart Machines • Internet of Things • Robotics • Automated Judgment • System Integration • Digital Architects • Regulatory • Risk
Slide 46: Gartner Predicts: bimodal IT
45 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner Predicts By 2017, 75% of IT organizations will have a bimodal capability
Slide 47: Gartner Predicts: fewer process workers
46 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner Predicts By 2018, digital businesses will require 50% fewer business process workers
Slide 48: Top 5 CEO Priorities, 2014
1. Information Technology 2. Staffing and Talent 3. Innovation / Research & Development 4. Marketing 5. Partnership, Alliances and Value Networks TOP 5 CEO PRIORITIES, 2014
Slide 49: Unparalleled Value of Gartner Research
48 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Accelerating Impact of Technology Unparalleled Value of Gartner Research Innovative Products
Slide 50: Gartner Research overview
49 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner Research Research Expertise Research Processes Research Deliverables
Slide 51: Research Expertise
50 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner Research Research Expertise Over 1,020 analysts in 32 countries Over 170 based in APAC, over 250 based in Europe Minimum 15 years of experience at time of hire 60% have 20+ years of industry ex
Slide 52: Transparency, Objectivity, Quality
51 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner Research Research Expertise Transparency Objectivity Quality
Slide 53: Research Process
52 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner Research Research Process Decision makers in 10,000 enterprises 17,000 senior Technology Executives Over 20 global education and R&D institutions Analysts
Slide 54: Research Process
53 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner Research Research Process 5,000 Documents 215,000 One - on - one Interactions 2.9 Million End - user Searches 17,000 Strategy Reviews 4,900 Contract Reviews
Slide 55: Research Deliverables
54 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner Research Research Deliverables Mission Critical Priorities: Written Research Access to Experts Coaching and Peer Interactions 1 2 3
Slide 56: Written Research
55 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner Research Research Deliverables Written Research Mission Critical Priorities: Digital Business Strategy Security Strategy & Implementation Analytics & Big Data Technology IT Cost Management Clou
Slide 57: Written Research
56 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner Research Research Deliverables Written Research 1 Access to Experts Coaching and Peer Interactions > 5,000 New Documents 100+ New Market Guides 30+ New Magic Quadrants 115+ New Critical Capabil
Slide 58: Access to Experts
57 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner Research Research Deliverables Written Research Access to Experts Coaching and Peer Interactions 2 215,000 One - on - one Interactions 4.5 Quality Rating
Slide 59: Coaching and Peer Interactions
58 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner Research Research Deliverables Written Research Access to Experts Coaching and Peer Interactions 3 5 ,000 CIOs with coaches 26,000 in Gartner Peer Social Network
Slide 60: Innovative Products
59 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Accelerating Impact of Technology Unparalleled Value of Gartner Research Innovative Products
Slide 61: Research Market Opportunity: IT Function
60 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner Research – Market Opportunity IT Function IT Function IT Leaders 18 CIOs 5 Technical Professionals 12 (in $ billions)
Slide 62: Research Market Opportunity: IT Function
61 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner Research – Market Opportunity IT Function IT Function CIOs 5 Gartner for IT Executives Equip CIOs and senior executives with the tools and insights they need to deliver exceptional business res
Slide 63: Market Opportunity: Supply Chain Function
62 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner Research – Market Opportunity Supply Chain Function Supply Chain Function
Slide 64: Market Opportunity: Supply Chain Function
63 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner Research – Market Opportunity Supply Chain Function Gartner for Supply Chain Leaders Provides Supply Chain Leaders in consumer , healthcare and industrial value chains tools and advice tied to
Slide 65: Market Opportunity: Marketing Function
64 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner Research – Market Opportunity Marketing Function Marketing Function
Slide 66: Market Opportunity: Marketing Function
65 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner Research – Market Opportunity Marketing Function Gartner for Marketing Leaders Provide Digital Marketing Leaders with tools and advice tied to their key initiatives, to make better, more inform
Slide 67: Market Opportunity: Other Business Leaders
66 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner Research – Market Opportunity Other Business Leaders Other Business Leaders
Slide 68: Market Opportunity: Other Business Leaders
67 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner Research – Market Opportunity Other Business Leaders Gartner for Business Leaders Provides business leaders in Technology and Service providers with the tools and insight to ensure they succeed
Slide 69: Vast Untapped Market Opportunity
68 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner Research Vast Untapped Market Opportunity 8 Other Business Leaders 8 Marketing Function IT Function Technical Professionals CIOs IT Leaders 14 19 5 Supply Chain Function 4 Gartner CV $1.6 (in $
Slide 70: Strong Value Proposition
69 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Strong Value Proposition Save Time Save Money Gain Resources Gain Confidence
Slide 71: Why Gartner
70 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Why Gartner Winning Strategy Strong Value Proposition Vast Market Opportunity Exceptional Business Model
Slide 72: Alwyn Dawkins, SVP Gartner Events
71 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. This presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is for the sole us e o f the intended Gartner audience or other authorized recipients. This pr
Slide 73: Why Gartner
72 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Why Gartner Winning Strategy Strong Value Proposition Vast Market Opportunity Exceptional Business Model
Slide 74: Gartner Events Segment Revenue
73 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner Events Segment Revenue: 2009 – 2014 Note: All figures are as reported in USD in millions reported exchange rates 100 121 148 174 199 228 2014 2013 2012 2011 2009 2010
Slide 75: Differentiated live events leveraging research content
74 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner Events Differentiated live events leveraging research content
Slide 76: AND PROPRIETARY I AND PROPRIETARY I
75 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. 75 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved.
Slide 77: Our mission: the must-attend event
76 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. 76 © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Our mission: Make every conference we produce the MUST ATTEND event for the communities we serve
Slide 78: World's Leading IT Conference Producer
77 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner Events World’s Leading IT Conference Producer 62 Events 49,000+ Attendees 6 Continents 2,250 Exhibitors
Slide 79: Current, Relevant, Actionable
78 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner Events Business Current Relevant Actionable
Slide 80: AND PROPRIETARY I AND PROPRIETARY I
79 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. 79 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved.
Slide 81: Attendee Value Proposition
80 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Attendee Value Proposition Face - to - face Analyst interaction Industry leaders Unparalleled peer networking Access to leading solution providers Actionable advice
Slide 82: Attendee Value Proposition
81 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Attendee Value Proposition Industry leaders Unparalleled peer networking Access to leading solution providers Actionable advice Face - to - face Analyst interaction
Slide 83: Attendee Value Proposition
82 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Attendee Value Proposition Industry leaders Unparalleled peer networking Access to leading solution providers Actionable advice Face - to - face Analyst interaction
Slide 84: Attendee Value Proposition
83 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Attendee Value Proposition Industry leaders Unparalleled peer networking Access to leading solution providers Actionable advice Face - to - face Analyst interaction
Slide 85: Attendee Value Proposition
84 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Attendee Value Proposition 84 Industry leaders Unparalleled peer networking Access to leading solution providers Actionable advice Face - to - face Analyst interaction
Slide 86: Exhibitor Value Proposition
85 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Exhibitor Value Proposition Face - to - face interaction with high level attendees Cost effective lead generation
Slide 87: AND PROPRIETARY I AND PROPRIETARY I
86 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. 86 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved.
Slide 88: 2014 Gartner Event Portfolio
87 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. 2014 Gartner Event Portfolio 62 strategic conferences covering all major geographies, attracting more than 49,000 technology and business professionals
Slide 89: AND PROPRIETARY I
88 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved.
Slide 90: Gartner Symposium/ITxpo global events
89 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. UNITED STATES October 5 – 9 SPAIN November 9 – 13 JAPAN October 28 – 30 AUSTRALIA November 17 – 20 BRAZIL October 28 – 30 INDIA October 14 – 17 SOUTH AFRICA September 10 – 12 UNITED ARAB EMIRATES April
Slide 91: #GartnerSYM media coverage
90 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. # GartnerSYM One of the recommendations at Gartner Symposium/ ITxpo is that organizations must evaluate big data technologies with an eye on what’s possible and practical for seizing opportunities in t
Slide 92: Global Symposium Strategy Driving Increased CIO Attendance
91 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Global Symposium Strategy Driving Increased CIO Attendance 2012 2011 2010 2009 2008 2013 2014 2,000 6,200
Slide 93: 2015 Gartner Event Portfolio
92 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. 2015 Gartner Event Portfolio 65 Strategic Conferences
Slide 94: Why Gartner
93 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Why Gartner Winning Strategy Strong Value Proposition Vast Market Opportunity Exceptional Business Model
Slide 95: AND PROPRIETARY I AND PROPRIETARY I
94 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. 94 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved.
Slide 96: Per Anders Waern, SVP Gartner Consulting
95 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. This presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is for the sole us e o f the intended Gartner audience or other authorized recipients. This pr
Slide 97: Gartner Consulting
96 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner Consulting Longer - term differentiated engagements leveraging Gartner research Gartner Consulting Business Extraordinary Research Insight Gartner Consulting Business
Slide 98: Why Gartner
97 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Why Gartner Winning Strategy Strong Value Proposition Vast Market Opportunity Exceptional Business Model
Slide 99: Independent and Objective Consulting
98 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner Consulting Independent and Objective Powered by Gartner Research Proprietary Benchmark Enabled Extraordinary Research Insight Gartner Consulting Business
Slide 100: Consulting revenue and Managing Partners
99 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner Consulting Increased number of Managing Partners Highly relevant offerings Revenue +11% 348 2013 2014 314
Slide 101: Benchmarking, Best Practices, Products and Pricing
100 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner Consulting Benchmarking Best Practices Products and Pricing Extraordinary Research Insight Gartner Consulting Business
Slide 102: Benchmark Analytics
101 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Benchmark Analytics >5K IT environments annually Roadmap of priorities Become digital ready
Slide 103: Best Practices for Key IT Initiatives
102 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Best Practices For Key IT Initiatives Research driven Benchmark informed From good to great
Slide 104: Best Practices for Key IT Initiatives
103 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Best Practices For Key IT Initiatives Embrace disruption Leverage the Nexus of Forces Mitigate risks
Slide 105: Right Products, Right Terms, Right Pricing
104 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Right Products, Right Terms, Right Pricing Needs assessment Negotiation of money saving terms and conditions Focus on bottom line impact
Slide 106: Right Products, Right Terms, Right Pricing
105 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Right Products, Right Terms, Right Pricing Needs assessment Negotiation of money saving terms and conditions Focus on bottom line impact $500M
Slide 107: Independent and Objective Consulting
106 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner Consulting Independent and Objective Powered by Gartner Research Proprietary Benchmark Enabled Gartner Consulting Business Extraordinary Research Insight Gartner Consulting Business
Slide 108: Experienced Senior Practitioners
107 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Experienced Senior Practitioners 535 billable Consultants Over $400K average annual revenue per head Powerful value proposition for attracting top talent
Slide 109: Managing Partners
108 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Managing Partners Long term, trust based relationships Repeat business 92 Managing Partners
Slide 110: Improved Efficiency Through Managing Partner Model
109 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Improved Efficiency Through Managing Partner Model Utilization +390 BPS Revenue per Consultant + 8 % 2014 68% 2013 64% 2014 442 2013 409 2014 367 2013 356 Bill Rate +3%
Slide 111: $100M Backlog
110 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. $100M Backlog
Slide 112: Why Gartner
111 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Why Gartner Winning Strategy Strong Value Proposition Vast Market Opportunity Exceptional Business Model
Slide 113: David Godfrey, SVP Worldwide Sales
112 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. This presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is for the sole us e o f the intended Gartner audience or other authorized recipients. This p
Slide 114: Headcount Growth and Productivity Improvement
113 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Headcount Growth 14% Productivity Improvement 14%
Slide 115: Revenue mix by business
114 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner Note: Percentages based on midpoint of 2015 revenue guidance. Extraordinary Research Insight 11% Gartner Events Business 16% Gartner Consulting Business 73% Gartner Research Business
Slide 116: Gartner Sales
115 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner Sales
Slide 117: Gartner Sales
116 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner Sales 1,881 quota - bearing sales associates • 325% growth since 2004 • Roughly split between NA and ROW Profile of a Ga r tner Account Executive • Highly motivated • Great sales DNA • Passion
Slide 118: $58B Gartner Estimated Current Market
117 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. $58B Gartner Estimated Current Market
Slide 119: 110,000 Enterprises in our Database
118 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. 110,000 Enterprises in our Database
Slide 120: Current Enterprise Penetration
119 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. 9% 10,000 Current Enterprise Penetration
Slide 121: Client Enterprise and Contract Value Growth
120 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Client Enterprise and Contract Value Growth 5,818 6,215 6,318 6,798 6,400 6,544 7,680 8,070 8,630 9,071 # Of Client Enterprises 2012 2011 2010 2009 2008 2007 2006 2005 2004 2013 +887 9,958 +14% FX Neu
Slide 122: Research Sold as Subscriptions to Individuals
121 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. … … … … … Research Sold as Subscriptions to Individuals • Role - based • Recurring revenue IT Functional Leaders CIO IT Professionals
Slide 123: Research Sold as Subscriptions to Individuals
122 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. … … … … … Research Sold as Subscriptions to Individuals • Role - based • Recurring revenue IT Functional Leaders CIO IT Professionals
Slide 124: Research Sold as Subscriptions to Individuals
123 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. … … … … … Research Sold as Subscriptions to Individuals IT Functional Leaders CIO IT Professionals
Slide 125: Research Sold as Subscriptions to Individuals
124 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. … … … … … Research Sold as Subscriptions to Individuals IT Functional Leaders CIO IT Professionals
Slide 126: Why Gartner
125 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Why Gartner Winning Strategy Strong Value Proposition Vast Market Opportunity Exceptional Business Model
Slide 127: Sales Strategy to Capture Market Opportunity
126 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Sales Strategy to Capture Market Opportunity Coverage Capacity Effectiveness
Slide 128: Sales Strategy: Capacity
127 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Capacity Sales Strategy to Capture Market Opportunity Coverage Effectiveness
Slide 129: Sales Strategy: Coverage
128 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Coverage Sales Strategy to Capture Market Opportunity Capacity Effectiveness
Slide 130: Sales Strategy: Effectiveness
129 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Effectiveness Sales Strategy to Capture Market Opportunity Coverage Capacity
Slide 131: Sales Strategy: Capacity
Sales Strategy to Capture Market Opportunity • Grow sales headcount 15 – 20% annually • Architected recruitment and training plan Capacity 130 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved.
Slide 132: Direct Quota Bearing Headcount
443 550 663 806 928 942 1,049 1,268 1,417 1,643 1,881 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Direct Quota Bearing Headcount Sales Strategy to Capture Market Opportunity Capacity • Grow sales headcount 15 – 20% annually • Architected recruitment and training plan 131 CONFIDENTIAL AND
Slide 133: Sales Strategy: Coverage
Coverage Sales Strategy to Capture Market Opportunity • Matched to global opportunity • Emphasizing client intimacy 132 CONFIDENTIAL AND PROPRIETARY © 2015 Gartner, Inc. and/or its affiliates. All rights reserved.
Slide 134: Coverage: client enterprises and average contract value
Coverage 88 95 101 111 130 120 127 138 146 157 161 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Average Contract Value per Enterprise ($K) 5,818 6,215 6,318 6,798 6,400 6,544 7,680 8,070 8,630 9,071 9,958 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Research Client Enterprises Sa
Slide 135: Sales Strategy to Capture Market Opportunity
134 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Sales Strategy to Capture Market Opportunity Coverage Capacity Effectiveness
Slide 136: AND PROPRIETARY I AND PROPRIETARY I
135 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. 135 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved.
Slide 137: Sales Strategy: Effectiveness
Sales Strategy to Capture Market Opportunity • Great Talent • World Class Training • Proprietary Tools and Best Practices Effectiveness 136 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved.
Slide 138: Gartner Sales: A Great Place to Work
137 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Best Place To Work, Employees’ Choice Winner 2012, 2013 and 2014 One of Americas Best Companies to Work for in 2014 Gartner Sales: A Great Place to Work Gartner reputation
Slide 139: Gartner Sales: A Great Place to Work
138 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner Sales: A Great Place to Work Gartner culture • Strategic relationships • Collaboration • Leading tools and best practices • Innovative products
Slide 140: Why Gartner
139 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Why Gartner Winning Strategy Strong Value Proposition Vast Market Opportunity Exceptional Business Model
Slide 141: Craig Safian, CFO
140 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. This presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is for the sole us e o f the intended Gartner audience or other authorized recipients. This p
Slide 142: Why Gartner
141 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Why Gartner Winning Strategy Strong Value Proposition Vast Market Opportunity Exceptional Business Model
Slide 143: Today's Roadmap
142 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Today’s Roadmap Strong Fundamentals 2015 Outlook Margins and Sales Productivity Cash/Capital Deployment
Slide 144: Strong Fundamentals: Market opportunity
143 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Strong F undamentals : Market opportunity 8 Other Business Leaders 8 Marketing Function IT Function Technical Professionals CIOs IT Leaders 14 19 5 Supply Chain Function 4 Gartner CV $1.6 (in $ billio
Slide 145: Strong Fundamentals: Attractive and predictable business model
144 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. High level of conversion from earnings into FCF Strong f undamentals: Attractive and predictable business m odel Subscription - based business model High renewal rates High incremental gross margins S
Slide 146: Strong Fundamentals: Track record of success
145 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Strong Fundamentals : Track record of success 2004 9,958 2014 # of Enterprises 2004 2014 $161k CV per Enterprise 2004 2014 Quota Bearing Headcount $ millions 5,818 $88k 443 1,881
Slide 147: Strong Fundamentals: Track record of success
146 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Strong Fundamentals: Track record of success Gross Margin% 19.1% EBITDA Margin% 2004 2014 2004 2014 11.8% 51.5% 60.5% 2,021 2004 2014 Revenue $ millions 894
Slide 148: Strong Fundamentals: Track record of success
147 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Strong Fundamentals: Track record of success 1,603 2004 2014 CV $ millions 2004 2014 Normalized EBITDA $ millions 386 103 509 3.1x 12% CAGR Free Cash Flow $ millions 2004 2014 3.7x 14% CAGR 13.6 x 30%
Slide 149: Strong Fundamentals: 2014 Acceleration
148 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. 104% 104% 105% 105% 106% 83% 84% 84% 84% 85% Strong Fundamentals : 2014 Acceleration Q4 14 Q4 13 Q1 14 Q3 14 Q2 14 Client Retention Q3 14 Q4 14 Q1 14 Q4 13 Q2 14 Wallet Retention
Slide 150: Strong Fundamentals: 2014 Acceleration
149 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Strong Fundamentals: 2014 Acceleration Q4 14 Q4 13 Q1 14 Q3 14 Q2 14 Contract Value Growth Q3 14 Q4 14 Q1 14 Q4 13 Q2 14 Sales Productivity $108k $111k $123k $105k $108k 12% 13% 13% 14% 14%
Slide 151: 2015 Outlook
150 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Strong Fundamentals 2015 Outlook Margins and Sales Productivity Cash/Capital Deployment
Slide 152: 2015 Outlook: Core business fundamentals are strong
151 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. 2015 Outlook: Core business fundamentals are strong Note: Estimated 2015 growth rates in FX neutral terms Normalized EPS (w constant tax rate) Research Consulting Events Total Revenue Normalized EBITD
Slide 153: 2015 Outlook: Long-term Growth Objectives
152 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. 2015 Outlook: Long - term Growth Objectives Annual Total Revenue Growth 12 – 17% Research 15 – 20% Consulting 3 – 8% Events 5 – 10%
Slide 154: 2015 Outlook: Impact of strengthening US dollar
153 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. 2015 Outlook: Impact of strengthening US dollar • Gartner is a global company with businesses in 90+ countries • Matching of revenues and expenses in non - US Dollar currencies creates a natural hedge
Slide 155: 2015 Outlook: Impact of strengthening US dollar on tax rate
154 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. 2015 Outlook: Impact of strengthening US d ollar on tax rate • Tax rate sensitive to geographic mix of earnings • Certain jurisdictions outside of the US have lower tax rates than the US ~ 30% Non - U
Slide 156: 2015 Outlook: Core business fundamentals remain strong
155 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. 2015 Outlook: Core business fundamentals remain strong Note : Estimated 2015 growth rates in FX neutral terms Normalized EPS (w constant tax rate) Research Consulting Events Total Revenue Normalized E
Slide 157: Margins and Sales Productivity
156 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Incredibly Strong Fundamentals 2015 Outlook Margins and Sales Productivity Cash/Capital Deployment
Slide 158: Margins & Sales Productivity: Mix
157 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Margins & Sales Productivity: Mix Note: 2015 based upon midpoint of current outlook. 13 % Events 2004 $894M 30 % Consulting 57 % Research 11 % Events 2015 $2.2B 16% Consulting 73% Research
Slide 159: Margins & Sales Productivity: Gross Margin
158 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Margins & Sales Productivity: Gross Margin Note: Percentage of Gross Contribution based upon 2014 total segment contribution 2004 Segment contribution adjusted for inclusion of equity compensation exp
Slide 160: Margins & Sales Productivity: Gross Margin
0 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Margins & Sales Productivity: Gross Margin Note: Percentage of Gross Contribution based upon 2014 total segment contribution 2004 Segment contribution adjusted for inclusion of equity compensation expen
Slide 161: Margins & Sales Productivity: Gross Margin
160 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Margins & Sales Productivity: Gross Margin Note: Percentage of Gross Contribution based upon 2014 total segment contribution. 2004 Segment contribution adjusted for inclusion of equity compensation ex
Slide 162: Margins & Sales Productivity: Gross Margin
1 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Margins & Sales Productivity: Gross Margin Note: Percentage of Gross Contribution based upon 2014 total segment contribution 2004 Segment contribution adjusted for inclusion of equity compensation expen
Slide 163: Mix shift drives gross margin leverage
162 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Margin & Sales Productivity: Mix shift drives gross margin leverage Note: Growth rate assumes mid - point of 2015 FX neutral outlook 72% 73% 74% 75% 76% 77% 11% 11% 12% 12% 12% 12% 17% 16% 14% 13% 12%
Slide 164: Sales force expansion
163 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Margin & Sales Productivity: Sales force expansion 443 550 663 806 928 942 1,049 1,268 1,417 1,643 1,881 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Direct Quota Bearing Headcount 16% CAGR
Slide 165: Measuring sales productivity
164 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Margin & Sales Productivity: Measuring sales productivity Net contract value increase ( NCVI or growth) per Account Executive (AE) • Focus on growth per AE as much of our business is renewable Measure
Slide 166: Calculating NCVI per sales person
165 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Margin & Sales Productivity: Calculating NCVI per sales p erson (AE) Note: For illustrative purposes Closing CV per AE Opening CV per AE New Business $1,150k $1,000k $150k $300k Illustrative Basis Ret
Slide 167: Calculating sales productivity
166 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Margin & Sales Productivity: Calculating sales productivity Rolling Four - Quarter FX Neutral CV Growth Opening period sales headcount Average Productivity (NCVI) per AE How to calculate sales product
Slide 168: 2014 Productivity
167 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Margin & Sales Productivity: 2014 Productivity $201.6M 2014 Opening CV 2014 NCVI $1,603M 2014 Closing CV $1,402M 2014 FX Neutral NCVI $202M Opening 2014 direct quota bearing headcount 1,643 Average Pr
Slide 169: Sales Productivity
168 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Margin & Sales Productivity: Sales Productivity $127k $122k $108k $123k +14% 2014 2013 2010 2011 2012 Annual NCVI per AE $133k
Slide 170: Improving productivity accelerates growth
169 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. $5k improvement per year (FX Neutral) 15.0% 15.6% 16.2% 16.6% 17.0% $10k improvement per year (FX Neutral) 15.6% 16.8% 17.7% 18.5% 19.0% Margin & Sales Productivity: Improving productivity accelerates
Slide 171: Impact on margins
170 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Margin & Sales Productivity: Impact on margins Increasing Sales Productivity Gross Margin Leverage Increases Leverage Per Sales Person Increases
Slide 172: Impact on margins
171 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Margin & Sales Productivity: Impact on margins $5k / Year ~ 50+ bps ~(25) – 0 bps 25 – 50 bps $10k / Year ~ 60 bps ~ 0 – 40 bps 60 – 100 bps Flat Productivity Gross Margin Impact ~ 50 bps SG&A Impact
Slide 173: Margins & Sales Productivity: Takeaways
172 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. • 70% incremental margin for Research is the right target • Gross margin leverage achieved through powerful business model and incremental Research economics • EBITDA margin leverage through continued
Slide 174: Cash/Capital Deployment
173 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Strong Fundamentals 2015 Outlook Margins and Sales Productivity Cash/Capital Deployment
Slide 175: Cash Flow Generation
174 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Cash & Capital Deployment: Cash Flow Generation See the attached Glossary for the definition of Free Cash Flow, and cautionary statement regarding this non - GAAP financial measu re . Free Cash Flow (
Slide 176: Cash & Capital Deployment: Priorities
175 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Cash & Capital Deployment: Priorities Strategic Acquisitions Share Re - purchases
Slide 177: Strategic Acquisitions
176 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. ( $63M ) Cash & Capital Deployment: Strategic Acquisitions Strategic Acquisitions ~$439M on seven deals 2005 ( $160M ) 2009 2012 ( $18M) 2014 ( $135M ) ($ 56M) ( $1M Net ) ( $6M)
Slide 178: Share re-purchases
177 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Cash & Capital Deployment: Share re - purchases Note: Company has $413 million remaining on its share re - purchase authorization. 2010 212 2011 100 2013 197 2012 111 2014 Annual share re - purchase a
Slide 179: Share re-purchases
178 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Cash & Capital Deployment: Share re - purchases Q4 Fully Diluted Shares Outstanding (in thousands) 2004 126,326 2014 88,956 - 29% Repurchased over $2B of stock since 2004
Slide 180: Cumulative sources and uses
179 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Cash & Capital Deployment : Cumulative sources and uses $1.8B $2.0B $0.4B $2.4B Free Cash Flow Strategic Uses Acquisitions Share Re - purchase Cumulative Sources/Strategic Uses of Cash 2004 – 2014
Slide 181: AND PROPRIETARY I AND PROPRIETARY I
180 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. 180 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved.
Slide 182: Why Gartner: summary
181 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Why Gartner Winning Strategy Strong Value Proposition Vast Market Opportunity Exceptional Business Model Proven Track Record of Success Increasing Sales Productivity Drives Margin Expansion Continued
Slide 183: Appendix
182 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. 182 © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Appendix
Slide 184: Select Sales Productivity Data
183 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Select Sales Productivity Data 2013 2014 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Rolling 12 - Month NCVI $151M $145M $145M $153M $158M $162M $179M $202M Opening Period Head Count 1,288 1,358 1,397 1,417 1,461 1,549 1