Forrester Research Reports 2018 Second-Quarter Financial Results

CAMBRIDGE, Mass., July 27, 2018 /PRNewswire/ -- Forrester Research, Inc. (Nasdaq: FORR) today announced its 2018 second-quarter financial results.

Second-Quarter Financial Performance

Total revenues were $96.4 million for the second quarter of 2018, compared with $89.7 million for the second quarter of 2017. Research revenues increased 7%, and advisory services and events revenues increased 8%, compared with the second quarter of 2017.

On a GAAP basis, net income was $7.8 million, or $0.43 per diluted share, for the second quarter of 2018, compared with net income of $6.1 million, or $0.34 per diluted share, for the same period in 2017.

On a pro forma basis, net income was $9.6 million, or $0.53 per diluted share, for the second quarter of 2018, which reflects a pro forma effective tax rate of 31%. Pro forma net income excludes stock-based compensation of $2.1 million, amortization of acquisition-related intangible assets of $0.2 million, and acquisition and integration costs of $0.3 million. This compares with pro forma net income of $7.6 million, or $0.42 per diluted share, for the same period in 2017, which reflects a pro forma tax rate of 40%. Pro forma net income for the second quarter of 2017 excludes stock-based compensation of $2.2 million and amortization of acquisition-related intangible assets of $0.2 million.

"Forrester exceeded revenue, operating margin, and EPS guidance for the second quarter of 2018," said George F. Colony, Forrester's chairman and chief executive officer. "We had a good quarter. Our selling model continues to show results, and the acquisitions of FeedbackNow and GlimpzIt will help accelerate our build of the real-time CX Cloud, providing our clients the insights they need to win in a customer-led market. We remain positive about our strategy and growth."

Forrester is providing third-quarter 2018 financial guidance as follows:

Third-Quarter 2018 (GAAP):

• Total revenues of approximately $82.0 million to $85.0 million.
• Operating margin of approximately 4.5% to 6.5%.
• Other income (expense), net of zero.
• An effective tax rate of 32%.
• Diluted earnings per share of approximately $0.14 to $0.18.

Third-Quarter 2018 (Pro Forma):

Pro forma financial guidance for the third quarter of 2018 excludes stock-based compensation expense of $2.1 million to $2.3 million, acquisition and integration costs of $0.6 million to $0.8 million, amortization of acquisition-related intangible assets of $0.4 million to $0.6 million, and any investment gains or losses.

• Pro forma operating margin of approximately 8.5% to 10.5%.
• Pro forma effective tax rate of 31%.
• Pro forma diluted earnings per share of approximately $0.27 to $0.31.

Our full-year 2018 guidance is as follows:

Full-Year 2018 (GAAP):

• Total revenues of approximately $352.0 million to $360.0 million.
• Operating margin of approximately 6.5% to 7.5%.
• Other income (expense), net of zero.
• An effective tax rate of 32%.
• Diluted earnings per share of approximately $0.91 to $0.98.

Full-Year 2018 (Pro Forma):

Pro forma financial guidance for full-year 2018 excludes stock-based compensation expense of $8.5 million to $9.0 million, acquisition and integration costs of $1.2 million to $1.4 million, amortization of acquisition-related intangible assets of $1.1 million to $1.4 million, and any investment gains or losses.

• Pro forma operating margin of approximately 9.5% to 10.5%.
• Pro forma effective tax rate of 31%.
• Pro forma diluted earnings per share of approximately $1.33 to $1.40.

Quarterly Dividend

Forrester also announced today that its board of directors has approved a quarterly cash dividend of $0.20 per share, payable September 26, 2018, to shareholders of record on September 12, 2018.

About Forrester Research

Forrester Research is one of the most influential research and advisory firms in the world. We work with business and technology leaders to develop customer-obsessed strategies that drive growth. Forrester's unique insights are grounded in annual surveys of more than 675,000 consumers and business leaders worldwide, rigorous and objective methodologies, and the shared wisdom of our most innovative clients. Through proprietary research, data, custom consulting, exclusive executive peer groups, and events, the Forrester experience is about a singular and powerful purpose: to challenge the thinking of our clients to help them lead change in their organizations. For more information, visit forrester.com.

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, Forrester's financial guidance for the third quarter of and full-year 2018, statements about the success of operational improvements, and statements about Forrester's future financial performance and financial condition. These statements are based on Forrester's current plans and expectations and involve risks and uncertainties that could cause actual future activities and results of operations to be materially different from those set forth in the forward-looking statements. Important factors that could cause actual future activities and results to differ include, among others, Forrester's ability to retain and enrich memberships for its research products and services, demand for advisory and consulting services, technology spending, Forrester's ability to respond to business and economic conditions and market trends, Forrester's ability to develop and offer new products and services, the risks and challenges inherent in international business activities, competition and industry consolidation, the ability to attract and retain professional staff, Forrester's dependence on key personnel, Forrester's ability to realize the anticipated benefits from recent internal reorganizations, the possibility of network disruptions and security breaches, Forrester's ability to enforce and protect its intellectual property, and possible variations in Forrester's quarterly operating results. Dividend declarations are at the discretion of Forrester's board of directors, and plans for future dividends may be revised by the board at any time. Forrester undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events, or otherwise. For further information, please refer to Forrester's reports and filings with the Securities and Exchange Commission.

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

Contact:

Michael Doyle
Chief Financial Officer
Forrester Research, Inc.
+1 617-613-6000
[email protected]

Meaghan Rhyasen
Public Relations
Forrester Research, Inc.
+ 1 617-613-6070
[email protected]

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SOURCE Forrester