Forrester Research, Inc. · NASDAQ:FORR
Forrester Research — Q1 2025 Earnings Presentation
36 slides from Forrester Research's earnings presentation, May 6, 2025
Slide 1: Forrester Investor Summary Q1 2025
Forrester Investor Summary Q1 2025
Slide 2: Forward-Looking Statements & Non-GAAP Measures
Forward-Looking Statements & Non-GAAP Measures This presentation may contain projections or other forward-looking statements regarding future events or the future financial performance of the Company. These projections or statements are only predictions. Actual events or results may differ materiall
Slide 3: Forrester At A Glance
Global reach with offices & operations across Asia Pacific, Europe, Forrester At A Glance and North America Forrester is one of the most influential research and advisory firms in the world. * * Number of employees Fortune 100 Clients Business and technology leaders rely on ~1,500 61% Forrester to a
Slide 4: Why Invest in Forrester?
Why Invest in Forrester? 1. Massive market opportunity 2. Attractive recurring revenue business model 3. Focus on contract value growth 4. Differentiated research platform (Forrester Decisions) and continuous guidance engagement model 5. Leadership team well-positioned to scale business © Forrester
Slide 5: Total Available Research Market
Total Available Research Market $78 MARKET OPPORTUNITY $115 MARKET OPPORTUNITY Massive untapped research market opportunity BILLION BILLION © Forrester Research, Inc. All rights reserved. Note: Forrester estimates. 5
Slide 6: Research, Consulting & Events: A System To Drive Contract Value
Research, Consulting & Events: A System To Drive Contract Value Consulting: Forrester Consulting helps clients implement modern strategies that align and empower teams to deliver on a shared vision for growth. Consulting 2024 revenue: $97.3 million Our Consulting business includes consulting project
Slide 7: Growing Contract Value
Growing Contract Value Acquisitions provide an opportunity for accelerated growth Pricing Future CV Product Innovation Net Contract Value New Increase Business Current CV Enrichment Renewed CV © Forrester Research, Inc. All rights reserved. 7
Slide 8: The Forrester Contract Value Growth Engine
The Forrester Contract Value Growth Engine Invest in: 1. Sales & Marketing Grow CV Generate 2. Products & Platform Cash 3. Acquisitions © Forrester Research, Inc. All rights reserved. 8
Slide 9: Forrester's Transformation Aimed At Driving Sustained Contract Value Growth
Forrester’s Transformation Aimed At Driving Sustained Contract Value Growth Began development of Transitioned Completed migration to the Forrester Decisions platform approximately 1/3 of Forrester Decisions CV portfolio to Refocused the business on CV Launched Izola amidst Forrester Decisions ongoin
Slide 10: Forrester: A Unique Continuous Guidance Model
Forrester: A Unique Continuous Guidance Model Forrester Focusing You On Your Customers Library Model Forrester Consulting Model Experts On and By Your Side Information overload Project based Business and Tech Together Not focused on specific One time, not continuous initiatives or outcomes support R
Slide 11: Forrester Decisions
Forrester Decisions Portfolio of 13 distinct services that support 25 different functions across Business and technology leaders rely the business on Forrester Decisions to tackle their initiatives and deliver business outcomes. Value delivered through unique continuous guidance model tuned to each
Slide 12: Forrester Decisions: What's Inside?
Forrester Decisions: What’s Inside? Bold Vision Curated Tools And Hands-On Stay ahead of changing Frameworks Guidance customer and Empower your team to Accelerate progress and market dynamics, plan for conquer your priorities with de-risk decisions with best the future, and set your proven strategic
Slide 13: Forrester Helps These Executives & Their Teams Accelerate Growth Through Customer Obsession
Forrester Helps These Executives & Their Teams Accelerate Growth Through Customer Obsession PERSONAS SERVED Chief Information Officers Security & Risk Leaders Portfolio Marketing Leaders Revenue Operations Leaders Chief Technology Officers CX Leaders Product Marketing Leaders Sales Operations Leader
Slide 14: Forrester Decisions: How it Works
Forrester Decisions: How it Works Clients tackle their initiatives and deliver outcomes with Forrester Decisions. Guidance Sessions Events Meet with an expert to Get inspired, align your Peer Discussions team, and connect with discuss your initiatives. Hear from others, analysts at events. share win
Slide 15: Forrester Delivers Results For Our Clients
Forrester Delivers Results For Our Clients 12% increase in digitally active banking clients over two years Top customer industries — A consumer bank undergoing digital transformation to differentiate the business and accelerate growth • Business services Revenue was 140% over target projections. •
Slide 16: The Value and ROI of Investing in Forrester Decisions
The Value and ROI of Investing in Forrester Decisions Forrester conducted a Total Economic Impact (TEI) study to examine the potential return on ROI BENEFITS PV NPV INITIATIVE SUCCESS investment (ROI) 259% $2.54M $1.83M 26% more likely organizations may realize by investing in Three-Year Benefits Fo
Slide 17: Leadership Team Well-Positioned To Scale The Business
Leadership Team Well-Positioned To Scale The Business Deep experience accelerating growth at global SaaS and CV-oriented companies George F. Colony Andrew Cox Ryan Darrah Michael Facemire Chris Finn Chairman of the Interim Chief Chief Legal Chief Technology Chief Financial Board, Chief Marketing Off
Slide 18: Financial Overview Q1 2025
Financial Overview Q1 2025 © Forrester Research, Inc. All rights reserved. 18
Slide 19: Q1 2025 Financial Summary
Q1 2025 Financial Summary Consolidated Revenue Research Revenue Consulting Revenue Event Revenue $89.9M -10% $68.4M -11% $21.4M -7% $0M -93% vs. PY vs. PY vs. PY vs. PY Adj. Operating Margin Adj. EPS Adj. EBITDA Margin Free Cash Flow 2.8% -64 bps $0.11 -21% 4.4% -105 bps $26.1M vs. PY vs. PY vs. PY
Slide 20: Full Year 2024 Financial Summary
Full Year 2024 Financial Summary Consolidated Revenue Research Revenue Consulting Revenue Event Revenue $432.5M -10% $316.7M -5% $97.3M -18% $18.5M -34% vs. PY vs. PY vs. PY vs. PY Adj. Operating Margin Adj. EPS Adj. EBITDA Margin Free Cash Flow 8.9% -197 bps $1.47 -23% 10.7% -198 bps -$7.3M vs. PY
Slide 21: Research Revenue Trends
Research Revenue Trends Revenue by Quarter (millions) $100 $90 $87.7 $85.2 $83.7 $80.9 $80.6 $79.4 $80 $76.6 $77.1 $68.4 $70 $60 $50 $40 $30 $20 $10 $0 Q1 '23 Q2 '23 Q3 '23 Q4 '23 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 © Forrester Research, Inc. All rights reserved. 21
Slide 22: CV & Wallet Retention Trends
CV & Wallet Retention Trends $350 100% $300 80% $250 $200 60% $150 40% $100 20% $50 $- 0% Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 CV (in $MM) 330.3 325.1 328.4 323.6 312.8 311.9 309.8 307.6 290.9 Wallet Retention 89% 89% 88% 87% 87% 88% 88% 89% 86% Note: Figures have been restated for
Slide 23: Client Count & Client Retention Trends
Client Count & Client Retention Trends 3,000 74% 2,500 74% 2,000 73% 1,500 73% 1,000 72% 500 0 72% Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 Clients 2,460 2,383 2,338 2,257 2,122 2,052 2,002 1,942 1,822 Client Retention 74% 74% 73% 73% 72% 72% 73% 73% 73% Note: For comparative purposes,
Slide 24: Consulting and Event Revenue Trends
Consulting and Event Revenue Trends Consulting Events Revenue by Quarter Revenue by Quarter (millions) (millions) $31.8 $17.9 $30.0 $28.2 $28.3 $25.9 $24.8 $13.4 $23.1 $23.4 $21.4 $4.6 $4.6 $2.7 $2.1 $1.0 $0.4 $0.0 Q1 '23 Q2 '23 Q3 '23 Q4 '23 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q1 '23 Q2 '23 Q3 '23 Q4 '23
Slide 25: 2025 Full Year Guidance
2025 Full Year Guidance Revenue: $400M to $415M • Declining 4% to 8% compared to prior year Adjusted Operating Margin: 8.0% to 9.0% • Declining ~90 bps to increasing ~10 bps compared to prior year Adjusted EPS: $1.20 to $1.35 • Declining 8% to 18% compared to prior year © Forrester Research, Inc. Al
Slide 26: Non-GAAP Reconciliations
Non-GAAP Reconciliations © Forrester Research, Inc. All rights reserved. 26
Slide 27: Non-GAAP Reconciliation – Income From Operations and EBITDA
Non-GAAP Reconciliation – Income From Operations and EBITDA (dollars in millions) Q1-24 Q1-25 Loss from operations - GAAP ($9.3) ($87.6) Amortization of intangible assets 2.5 2.2 Restructuring costs 6.6 1.5 Goodwill impairment -- 83.9 Stock-based compensation included in the following expense catego
Slide 28: Non-GAAP Reconciliation – Income From Operations and EBITDA
Non-GAAP Reconciliation – Income From Operations and EBITDA (dollars in millions) FY 24 Income from operations - GAAP $0.7 Amortization of intangible assets 9.6 Restructuring costs 11.8 Divestment loss 2.0 Stock-based compensation included in the following expense categories: Cost of services and fu
Slide 29: Non-GAAP Reconciliation – Net Income and EPS
Non-GAAP Reconciliation – Net Income and EPS (dollars in millions, except per share) Q1-24 Q1-25 Amount Per Share Amount Per Share Net loss - GAAP ($6.7) ($0.35) ($87.3) ($4.62) Amortization of intangible assets 2.5 0.13 2.2 0.12 Restructuring costs 6.6 0.34 1.5 0.08 Goodwill impairment -- -- 83.9 4
Slide 30: Non-GAAP Reconciliation – Net Income and EPS
Non-GAAP Reconciliation – Net Income and EPS (dollars in millions, except per share) FY 24 Amount Per Share Net loss - GAAP ($5.7) ($0.30) Amortization of intangible assets 9.6 0.50 Restructuring costs 11.8 0.62 Divestment loss 2.0 0.10 Stock-based compensation 14.3 0.75 Gains on investments (0.8) (
Slide 31: Non-GAAP Cash Flow Reconciliation
Non-GAAP Cash Flow Reconciliation (dollars in millions) Q1-22 Q1-23 Q1-24 Q1-25 Net cash provided by operating activities $22.7 $12.3 $0.6 $26.7 Less: purchases of property and equipment (1.3) (1.6) (1.4) (0.6) Free cash flow $21.4 $10.7 ($0.8) $26.1 (dollars in millions) FY 21 FY 22 FY 23 FY 24 Net
Slide 32: Non-GAAP Margin and EPS Full Year 2025 Guidance Reconciliation
Non-GAAP Margin and EPS Full Year 2025 Guidance Reconciliation Low End High End of Range of Range Low End High End Per Share Per Share of Range of Range GAAP - loss per share ($4.23) ($4.08) GAAP operating margin -18.6% -17.6% Amortization of intangible assets 0.46 0.46 Amortization of intangible as
Slide 33: Metric Definitions
Metric Definitions © Forrester Research, Inc. All rights reserved. 33
Slide 34: Metric Definitions
Metric Definitions Contract Value (CV) represents the value attributable to all of our recurring research- related contracts. It is calculated as the annualized value of all contracts in effect at a specific point in time, without regard to how much revenue has already been recognized. Contract valu
Slide 35: Metric Definitions
Metric Definitions Client Retention represents the percentage of client companies (defined as all clients that buy a CV product) at the prior year measurement date that have active contracts at the current year measurement date. Client Count is the total of enterprise clients with an active CV contr
Slide 36: Thank You.
Thank You. © Forrester Research, Inc. All rights reserved.