Forrester Research Q1 2022 Revenue Up 10%

Year-over-year total contract value increased by 15% to $351.4 million

Forrester Research, Inc. (Nasdaq: FORR) has announced strong results for the first quarter ended March 31, 2022, headlined by contract value growth of 15% with revenue growth of 10%. On a GAAP basis, earnings per share (EPS) was $0.22, and on an adjusted basis, EPS was $0.45. The company also reaffirmed its guidance for the full year.

Commenting on the results, Forrester Chairman and CEO George Colony stated, “We started 2022 off on a strong note and are encouraged by the momentum of our Forrester Decisions platform. Despite economic and macro headwinds, we delivered our third consecutive quarter of double-digit contract value growth, growing at 15% in the first quarter, and we also delivered our second consecutive quarter of double-digit growth in research revenue. This performance drove overall revenue growth of 10%, resulting in adjusted EPS that exceeded our guidance in the first quarter. We also drove strong cash flow as we continued to invest funds into our people, marketing, and technologies. While the external challenges facing us and the broader economy remain, we are confident in our ability to deliver on our outlook for the balance of the year. I remain grateful to our employees for their hard work.”

First-Quarter Consolidated Results

Total revenues for the first quarter of 2022 were $125.0 million, compared with $113.8 million for the comparable quarter in 2021.

On a GAAP basis, net income was $4.1 million, or $0.22 per diluted share, for the first quarter of 2022, compared with $4.0 million, or $0.21 per diluted share, for the same period in 2021.
On an adjusted basis, net income was $8.6 million, or $0.45 per diluted share, for the first quarter of 2022, reflecting an adjusted effective tax rate of 30%. Adjusted net income excludes stock-based compensation of $3.3 million, amortization of acquisition-related intangible assets of $3.4 million, and investment gains of $0.4 million. This compares with an adjusted net income of $8.6 million, or $0.45 per diluted share, for the same period in 2021, which reflects an adjusted tax rate of 31%.

Forrester is providing second-quarter and full-year 2022 financial guidance as follows:

Second-Quarter 2022 (GAAP):

Total revenues of approximately $144 million to $148 million
Operating margin of approximately 9% to 11%
Interest expense of approximately $0.5 million
An effective tax rate of 30%
Earnings per share of approximately $0.45 to $0.51

Second-Quarter 2022 (Adjusted):

Adjusted financial guidance for the second quarter of 2022 excludes stock-based compensation expense of $3.5 million to $3.7 million, amortization of acquisition-related intangible assets of approximately $3.4 million, and any investment gains or losses.

Adjusted operating margin of approximately 14.0% to 16.0%
Adjusted effective tax rate of approximately 30%
Adjusted diluted earnings per share of approximately $0.70 to $0.76

Full-Year 2022 (GAAP):

Total revenues of approximately $550 million to $560 million
Operating margin of approximately 6.5% to 7.5%
Interest expense of approximately $2.5 million
An effective tax rate of 30%
Earnings per share of approximately $1.25 to $1.35

Full-Year 2022 (Adjusted):

Adjusted financial guidance for full-year 2022 excludes stock-based compensation expense of $14.0 million to $14.5 million, amortization of acquisition-related intangible assets of approximately $13.2 million, and any investment gains or losses.

Adjusted operating margin of approximately 11.5% to 12.5%
Adjusted effective tax rate of approximately 30%
Adjusted diluted earnings per share of approximately $2.25 to $2.35

About Forrester

Forrester (Nasdaq: FORR) is one of the most influential research and advisory firms in the world. We help leaders across technology, marketing, customer experience, product, and sales functions use customer obsession to accelerate growth. Through Forrester’s proprietary research, consulting, and events, leaders from around the globe are empowered to be bold at work — to navigate change and put their customers at the center of their leadership, strategy, and operations. Our unique insights are grounded in annual surveys of more than 700,000 consumers, business leaders, and technology leaders worldwide; rigorous and objective research methodologies, including Forrester Wave™ evaluations; 70 million real-time feedback votes; and the shared wisdom of our clients. To learn more, visit Forrester.com.

The consolidated statements of operations and the table of key financial data are attached.