Gartner Inc (IT) Reports 5.8% YoY Revenue Increase in Q3 2023

GuruFocus Research
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In this article:

  • Gartner Inc (NYSE:IT) reported Q3 2023 revenues of $1.4 billion, marking a 5.8% increase YoY.

  • Net income for the quarter was $180 million, a 3.7% increase from the same period in the previous year.

  • Diluted EPS stood at $2.26, a 4.1% increase YoY.

  • The company's Board of Directors increased the share repurchase authorization by $500 million in October 2023.

On November 3, 2023, Gartner Inc (NYSE:IT) released its financial results for the third quarter of 2023. The company reported revenues of $1.4 billion, marking a 5.8% increase as reported and a 4.9% increase on an FX neutral basis. Net income for the quarter was $180 million, a 3.7% increase as reported. Diluted EPS stood at $2.26, marking a 4.1% increase.

Financial Highlights

Adjusted EBITDA for the quarter was $333 million, a slight increase of 0.6% as reported and 0.1% on an FX neutral basis. The company reported an operating cash flow of $331 million, a 5.1% increase, and a free cash flow of $302 million, a 6.9% increase. During the quarter, Gartner repurchased 0.6 million common shares for $209 million.

The company's Global Technology Sales Contract Value (GTS CV) stood at $3.6 billion, marking a 6.5% YoY increase on an FX neutral basis. The Global Business Sales Contract Value (GBS CV) was $1.0 billion, a 14.0% YoY increase on an FX neutral basis, excluding the previously disclosed divestiture.

Segment Results

For the three months ended September 30, 2023, the company reported revenues of $1,219 million for Research, $57 million for Conferences, and $133 million for Consulting. The gross contribution for these segments was $894 million, $20 million, and $49 million respectively.

CEO Commentary

Gartners Chief Executive Officer, Gene Hall, commented, Gartner delivered another strong quarter with high single-digit growth in contract value and better than expected performance in revenue, profitability, and free cash flow. We are increasing our 2023 guidance and positioning ourselves well for 2024 and beyond.

Additional details regarding the company's financial results and the updated 2023 financial outlook are available on the company's Investor Relations website.

Explore the complete 8-K earnings release (here) from Gartner Inc for further details.

This article first appeared on GuruFocus.

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