Forrester Research Inc (FORR) Announces Q3 2023 Financial Results
Forrester Research Inc (NASDAQ:FORR) reports a flat contract value (CV) of $349.4 million in Q3 2023, compared to the same period last year.
Q3 2023 total revenues were $113.4 million, a decrease from $127.7 million in Q3 2022.
GAAP net income for Q3 2023 was $2.5 million, or $0.13 per diluted share, compared to $5.4 million, or $0.28 per diluted share, in Q3 2022.
Adjusted net income for Q3 2023 was $8.6 million, or $0.44 per diluted share, compared to $10.9 million, or $0.57 per diluted share, in Q3 2022.
Forrester Research Inc (NASDAQ:FORR) announced its financial results for the third quarter ended September 30, 2023, on October 26, 2023. The company reported a flat contract value (CV) of $349.4 million, compared to the same period last year. Despite the stagnant CV, the company has approximately $200 million of CV on the Forrester Decisions platform and aims to convert two-thirds of its CV to Forrester Decisions by the end of the year.
Financial Performance
Total revenues for Q3 2023 were $113.4 million, a decrease from $127.7 million in Q3 2022. On a GAAP basis, net income was $2.5 million, or $0.13 per diluted share, compared to a net income of $5.4 million, or $0.28 per diluted share, for the same period in 2022. Adjusted net income was $8.6 million, or $0.44 per diluted share, reflecting an adjusted effective tax rate of 29%. This compares with an adjusted net income of $10.9 million, or $0.57 per diluted share, for the same period in 2022, which reflects an adjusted tax rate of 30%.
Company's Outlook
Forrester provided updated guidance for 2023, excluding stock-based compensation expense of $15.0 million to $15.5 million, amortization of acquisition-related intangible assets of approximately $12.0 million, restructuring costs of approximately $12.2 million, a legal settlement of $4.8 million, and any investment gains or losses.
Key Financial Data
As of September 30, 2023, Forrester had cash, cash equivalents, and marketable investments amounting to $111,456, and net accounts receivable of $41,016. The company's deferred revenue stood at $158,349, and outstanding debt was $35,000. The company also reported a net cash provided by operating activities of $9,791, and purchases of property and equipment amounted to $3,903. The company repaid $15,000 of debt and repurchased common stock worth $4,082.
Company's Commentary
CEO and Chairman George F. Colony commented on the results,
While our contract value remained flat this quarter due to persistent headwinds, we now have approximately $200 million of CV on the Forrester Decisions platform and remain on track to convert two-thirds of our CV to Forrester Decisions by the end of the year. We continue to improve the Forrester Decisions platform. These enhancements include the development of Izola, our generative AI system, and the expansion of client outcomes. Izola will enable clients to find answers faster, and outcomes will better align Forresters value with client challenges. We remain resolute in our pursuit of growing CV and accelerating the ongoing journey to create a high-performance sales culture."
Explore the complete 8-K earnings release (here) from Forrester Research Inc for further details.
This article first appeared on GuruFocus.
