Year-over-year total contract value increased by 10% to $349.4 million
Forrester Research, Inc. (Nasdaq: FORR) has announced strong results for the second quarter ended June 30, 2022, headlined by contract value growth of 10% with revenue growth of 15%. On a GAAP basis, earnings per share (EPS) was $0.72, and on an adjusted basis, EPS was $1.00. The Company also reaffirmed its full-year guidance for adjusted operating margin and adjusted EPS.
“This was another strong quarter for us,” said George F. Colony, Forrester’s chairman and chief executive officer. “We continued to experience double-digit contract value growth and delivered revenue growth of 15% for the period. Additionally, we had strong adjusted EPS performance. We also continued to generate positive cash flow, which allowed us to make investments in our sales, marketing, people, and technology. Given these strong results and our confidence in our ability to manage costs, we are reiterating our guidance for margins and adjusted EPS for the full year.
“Given the uncertain macroeconomic conditions we are reducing our top-line guidance. Our Forrester Decisions product portfolio is continuing to perform well, and I remain confident that Forrester can deliver shareholder value in the quarters and years ahead. I am thankful to all our employees for their continued hard work.”
Second-Quarter Consolidated Results
Total revenues for the second quarter of 2022 were $148.2 million, compared with $128.7 million for the comparable quarter in 2021.
On a GAAP basis, net income was $13.9 million, or $0.72 per diluted share, for the second quarter of 2022, compared with $8.3 million, or $0.43 per diluted share, for the same period in 2021.
On an adjusted basis, net income was $19.2 million, or $1.00 per diluted share, for the second quarter of 2022, reflecting an adjusted effective tax rate of 30%. Adjusted net income excludes stock-based compensation of $3.8 million and amortization of acquisition-related intangible assets of $3.4 million. This compares with an adjusted net income of $12.7 million, or $0.66 per diluted share, for the same period in 2021, which reflects an adjusted tax rate of 31%. Adjusted net income for the second quarter of 2021 excludes stock-based compensation of $2.4 million, amortization of acquisition-related intangible assets of $4.0 million, and integration costs of $0.2 million.
Source: Forrester Earnings Release