FORRESTER RESEARCH, INC. Q4 FY2024 earnings call

• Product Transition: The migration to Forrester Decisions (FD) is essentially complete, with 80% of contract value in the FD portfolio. The remaining 20% is mostly reprints. - 2024 Progress: Izola, the generative AI tool, went into full availability mid - year and had updates; a new reprints hub and flexible reprints product were launched; Forrester Decisions for data, AI and analytics service was introduced; a major update to the Forrester Wave was unveiled. - 2024 Financial Performance: Bookings attenuated late in the fourth quarter, resulting in a 5% CV decline for the full year, 9% revenue decline for the quarter and 10% for the year. - 2025 Focus: Planning for flat CV growth in 2025, focused on improving retention, driving growth, and boosting events; adjusting cost structure with a 6% reduction in force in early January.

Research Segment: In the fourth quarter, research CV was $307.6 million on December 31, 2024, a 5% decline from December 2023. Revenue from research decreased 7% in the fourth quarter and 5% for the full year. Consulting Segment: Fourth - quarter revenue was $25.9 million, full - year revenue was $97.3 million, declining 8% and 18% respectively compared to prior year periods. Events Segment: Fourth - quarter revenue was $2.7 million, a 42% decline from the same period in 2023; full - year revenue was $18.5 million, a 34% decline.

• 2025 revenue is expected to be $400 million to $415 million, down 4% to 8% versus 2024. - Operating margins are expected to be in the range of 8% to 9% for 2025. - Interest expense is expected to be $2.7 million for the year and the full - year tax rate is guided to 29%. - EPS is expected to be in the range of $1.20 to $1.35 for the full year. - Anticipates returning to positive free cash flow in 2025 based on bookings improvement.

• Technology and tech services markets remain weak. - Economic and political uncertainties, potentially driven by changes in the incoming U.S. presidential administration. - Exposure to smaller tech vendors which can be volatile. - Q4 execution issues in India related to growth and retention.

Q: Please unpack more on bookings commentary in November and December, including individual industries and whether it was execution - driven or end market - driven?

A: Nate Swan said Q4 was challenging across segments, with challenges in smaller high - tech (where small vendors had budget issues), government sector (due to continuing resolution), and India. It was mainly execution - driven. George Colony added that Premier high - tech (large tech companies) had recovered well in the second half.

Q: Comments on overall visibility of the business now relative to this time last year and how much macro improvement and execution is needed for second half acceleration?

A: George Colony said exposure on smaller tech is not as much as in previous years. Chris Finn said the company has transitioned away from sub - $50 million tech vendors and focuses above that. George Colony also mentioned working on Forrester agile selling technique and early renewal program for larger customers.

Q: Any developments on AI efficiency for cost management or productivity?

A: Carrie Johnson said Izola is used for internal efficiency, with customer success team finding answers faster, automation used to decrease time for analysts to conduct calls with clients, including auto summarization and GenAI to update records for faster client service.

Q: Elaborate on issues in India and how growth and retention in Q4 execution was?

A: George Colony said there were challenges in Q4 execution on growth and retention in India, but doesn't think it's a long - term problem, and he'll be in India in 2 weeks to learn more.

Q: How is expanding with larger customers going and what's being done to improve getting to the C - suite?

A: George Colony said they are working on Forrester agile selling technique, educating salespeople on having conversations with C - suite, using early renewal program, and seeing good success when working with senior executives. Management is coaching and salespeople are practicing the new sales motion.

Q: Roadmap for new products?

A: Carrie Johnson said the reprints hub and flexible reprints product are helpful for large vendor relationships. Product roadmap involves leveraging existing insights and delivering them faster, with more features like interactivity around data to unlock rich datasets for customers, and Izola upgrades during the year