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- **AI Access Launch Success**: Secured a multimillion-dollar government deal and a fast-growing pipeline, positioning Forrester as the AI research leader.
- **Financial Resilience**: Despite 8% revenue decline, operating margin improved to 10.5%, driven by cost control and AI Access traction.
- **Client Trust Differentiator**: Proprietary AI model (Izola) and exclusive research assets ensure clients cannot replicate Forrester's insights via public LLMs.
- **Sales Momentum**: Q4 pipeline stability and 27% faster conversion rates suggest improving go-to-market execution.
- **Risk Management**: Downward guidance reflects ongoing consulting and events challenges, but AI Access expected to offset headwinds in 2026.

**【Management Opening Remarks】**
- Edward Morris introduced the call, noting the issuance of the Q3 2025 press release and reminding participants of the forward-looking statements disclaimer. He emphasized the use of adjusted metrics for discussion.

**【CEO Commentary】**
- **Q3 Performance**: Total revenue declined 8% YoY to $94.3M, driven by an 8% drop in consulting and a 6% decline in research. Wallet retention improved to 86%, while client retention remained stable at 74%.
- **Go-to-Market Progress**: Sales process improvements include a 55-day average hiring cycle and adoption of the FAST sales methodology, with all reps now certified. AI Access, launched in September, generated a multimillion-dollar pipeline and secured a landmark government deal.
- **AI Strategy**: AI Access democratizes research access, targeting executives who need trusted insights without direct analyst interaction. The product leverages Izola, a proprietary generative AI model, to provide answers based on Forrester's exclusive research.
- **Client Feedback**: Board of Clients highlighted Forrester's role as a trusted advisor, emphasizing its ability to provide actionable, data-driven insights.

**【CFO Commentary】**
- **Financial Results**: GAAP net income was $7.2M (EPS $0.37), up 30% YoY. Operating expenses decreased 11% due to headcount reduction and cost control, leading to a 21% increase in operating income.
- **Business Segments**: Research revenue declined 4% (excluding FeedbackNow), consulting fell 8%, and events were impacted by timing shifts. The company expects a low single-digit decline in research for 2025.
- **Guidance Update**: Full-year revenue revised to $395M-$405M (down 6%-9% YoY) due to consulting and events challenges. EPS guidance is $1.15-$1.25, reflecting margin stabilization and AI Access momentum.

**【Q&A Highlights】**
- **AI Impact**: Clients prefer Forrester's proprietary data over public LLMs for critical decisions. AI Access is gaining traction in government and international markets, with a focus on enterprise-wide pricing models.
- **Sales Pipeline**: Q4 pipeline is stable, with improved conversion rates (e.g., 27% faster time to close in emerging tech). AI Access is driving winbacks and new logo growth.
- **Partnerships**: The Carahsoft partnership is expanding government access, with early interest in state and federal agencies. International IVD channels remain successful.
- **Conversion Strategy**: The "social contract" methodology holds clients accountable, reducing wasted cycles and improving close rates.


Forrester Research, Inc. (FORR) Q3 2025 Earnings Call Transcript

- **Revenue Decline**: Q2 revenue down 8% YoY to $111.7M, driven by events (-23%) and macroeconomic challenges.
- **Government Growth**: Significant wins in U.S. and European public sectors, leveraging generative AI applications.
- **Sales Momentum**: Pipeline up 15% QoQ, but conversion rates lag; 72% of contracts in multiyear deals.
- **AI Leadership**: Izola prompts +44% QoQ, with Gen AI in top 3 initiatives for 14 FT clients.
- **Guidance Adjustment**: Full-year revenue now $400-410M (-5% to -8% YoY), with margin and EPS guidance maintained.

**【CEO Summary Section】**
- **Revenue Performance**: Total revenue decreased 8% YoY to $111.7M, driven by mid-single-digit declines in research and consulting, and a 23% drop in events revenue. Client retention improved to 74% (up 1pt QoQ), but wallet retention declined 1pt to 85%.
- **Government Momentum**: Booked significant contracts with U.S. state/local governments and European federal agencies, driven by competitive wins and interest in generative AI applications.
- **Sales Progress**: Pipeline grew 15% QoQ, with faster hiring (21% improvement in time to hire) and focus on performance management. Conversion rates remain a key area for improvement.
- **Research Highlights**: Launched two new frameworks:
  - **Buying Networks**: Addresses B2B buyers' reliance on generative AI, influencers, and partner opinions.
  - **Total Experience Score**: Combines brand and customer experience metrics, resonating with CMOs and driving 100+ guidance sessions.
- **Events Update**: CX Summits saw 11% (NA) and 21% (Europe) attendance growth, with satisfaction scores at all-time highs. New Head of Events, Tavar James, is aligning events with marketing to drive value expansion.
- **AI Tool Adoption**: Izola prompts increased 44% QoQ, with half of queries tied to specific reports. Gen AI is now in the top 3 initiatives for 14 FT services.

**【CFO Financial Commentary】**
- **Revenue Breakdown**: Research ($77.9M, -7% YoY), Consulting ($23.4M, -5% YoY), Events ($10.2M, -23% YoY). Excluding FeedbackNow, research declined 5% YoY.
- **Cost Management**: Operating expenses decreased 6% YoY, driven by lower compensation costs (headcount down 12% YoY). Operating margin contracted to 12.2% (vs. 14.7% YoY).
- **Guidance Update**: Full-year revenue now expected at $400-410M (-5% to -8% YoY), with research (-mid-single), consulting (-mid/high-single), and events (-20%) declines. Maintain 8-9% margin and $1.20-1.35 EPS guidance.

**【Q&A Key Highlights】**
- **Events Strategy**: Modernizing sponsorship offerings (e.g., Amsterdam CX Summit to address Brexit), and targeting outcome-based sales. Sponsorship market is competitive but growing.
- **Multiyear Deals**: 72% of contract value in FT deals (up 8pts YoY), with 22% in 3-year contracts. Sales pipeline growth (15% QoQ) outpaces conversion, with focus on early-stage deal acceleration.
- **Sales Force Health**: 75% of reps >25 months tenured, attrition in line with expectations. Hiring continues for second-half growth, with 72% of pipeline in tenured reps.
- **Conversion Challenges**: 70-day average deal cycle, but deals linger in pipeline. Focus on identifying committed buyers and demonstrating ROI to improve close rates.

Forrester Research, Inc. (FORR) Q2 2025 Earnings Call Transcript

- **Revenue decline**: Q1 revenue down 10% YoY to $89.9M, driven by macroeconomic headwinds.
- **Multi-year contracts strength**: 73% of CV in multi-year deals, a record high.
- **Sales pipeline growth**: Month-over-month pipeline expansion, +33% per AE YoY.
- **Government risk**: <6% of CV exposed to federal cuts, but opportunities in AI/cybersecurity.
- **AI leadership**: Expanded Forrester Decisions with interactive tools; 40% of Izola queries focus on vendor selection.
- **2025 Outlook**: Revenue $400-415M (-4% to -8% YoY), EPS $1.20-1.35, 8-9% operating margin.


**【CEO Opening Remarks】**
- Q1 revenue declined 10% YoY to $89.9M, driven by macroeconomic uncertainty and government efficiency efforts.
- 73% of contract value (CV) in multi-year contracts, up from prior quarters, reflecting retention strength.
- Sales pipeline growing month-over-month, with focus on high-level executives and expanding personas within accounts.
- Economic volatility causing budget tightening, particularly in discrete manufacturing and retail sectors.
- Launched new research on managing volatility, which became the second-highest topic in guidance sessions.
- Expanded Forrester Decisions with new interactive data tools and 'Expanded Access' format, seeing strong adoption in Q1.

**【CFO Financial Update】**
- GAAP net income: $2M (down 28% YoY), EPS: $0.11 (down 21% YoY).
- Adjusted free cash flow: $26.1M, with $134M cash on hand and $35M debt.
- Research revenue down 11% YoY; consulting revenue down 7% YoY, though advisory segment grew.
- Wallet retention at 86% (down 3pts YoQ), driven by macroeconomic factors.
- Full-year 2025 guidance: $400-415M revenue (-4% to -8% YoY), 8-9% operating margin, EPS $1.20-1.35.
- Notable non-cash charge: $84M goodwill impairment due to stock price decline.

**【Q&A Key Takeaways】**
1. **Government Risk & Opportunity**: 
   - Federal government business <6% of CV, with $2M contract cancellations in Q1.
   - New government leadership focused on AI/cybersecurity, opening doors to previously locked accounts.
   - State/local government pipeline showing early success.
2. **Sales Pipeline Momentum**: 
   - Per-AE pipeline up 33% YoY in Q1, with April trend continuing.
   - Longer sales cycles (+10-12 days) due to increased scrutiny.
3. **Client Retention Insights**: 
   - Attrition primarily due to persona/product mismatch (e.g., single-seat licenses).
   - Focus on team-based solutions to improve retention.
4. **Event Strategy**: 
   - CX events in Europe and North America (Nashville) seeing strong attendance growth.
   - Events positioned as critical for client engagement in uncertain times.


Forrester Research (FORR)-6 May 25-2025 Q1 Earnings call transcript

- **Transition Success**: 80% of CV migrated to FD, with 69% in multiyear contracts, driving long-term retention.
- **2024 Results**: Revenue down 10%, but operating margin improved to 8.3% in Q4. Retention rate +2pts to 89%.
- **AI Differentiation**: Izola users renew at 20% higher rate; internal AI tools cut analyst response time by 50%.
- **2025 Outlook**: Flat CV growth, but EPS expected to rise to $1.20-$1.35 on cost savings and margin expansion.
- **Growth Drivers**: Events revenue to double by 2025; consulting bookings growth in Strategy practice.
- **Risk Mitigation**: 6% workforce reduction cuts costs by $12M annually, aligning with lower revenue.


**【CEO Summary Section】**
- **Transition Completion**: 80% of contract value (CV) migrated to Forrester Decisions (FD), with remaining 20% in legacy products. Entire organization now focused on FD sales and support.
- **2024 Financials**: Full-year CV declined 5% to $307.6M, revenue down 10% to $432.5M. Q4 revenue $108M (-9% YoY). Retention improved 2pts to 89%, CV per client +10% to $158K.
- **Product Enhancements**: 
  - **Izola AI Tool**: 3rd highest traffic destination, now integrates survey data and WAVE models.
  - **Reprint Hub**: New flexible reprints subscription launched Q3.
  - **FD for Data, AI & Analytics**: Guides leaders on AI/ML adoption, with focus on financial services, consumer, and tech.
  - **Interactive Wave Tool**: Customizable vendor comparisons based on client needs.
- **2025 Outlook**: Flat CV growth, revenue down 4-8%, EPS $1.20-$1.35. Focus on retention (e.g., retention life cycle process), sales productivity (FAST methodology), and events expansion.
- **Cost Actions**: 6% workforce reduction in Q1, $5.5M restructuring costs.

**【CFO Financial Commentary】**
- **Q4 2024 Results**: 
  - Revenue: $108M (-9% YoY)
  - Operating Income: $8.9M (8.3% of rev, +32% YoY)
  - Net Income: $6.8M (+42% YoY)
  - Cash Flow: Negative $3.9M (impacted by bookings decline)
- **Full Year 2024**: 
  - Revenue: $432.5M (-10% YoY)
  - Operating Income: $38.5M (-26% YoY)
  - Net Income: $28.1M (-23% YoY)
- **2025 Guidance**: 
  - Revenue: $400-415M (-4% to -8%)
  - Operating Margin: 8-9%
  - EPS: $1.20-$1.35
- **Segment Performance**: 
  - Research: -7% Q4, -5% FY
  - Consulting: -8% Q4, -18% FY (but bookings growth in Strategy Consulting)
  - Events: -42% Q4, -34% FY (sponsorship decline)

**【Q&A Key Themes】**
- **Q4 Booking Challenges**: Small tech vendors (e.g., India, government delays), execution issues vs macro trends.
- **AI Impact**: Izola users renew at 20% higher rate; internal automation reduces analyst call time.
- **Large Client Strategy**: Selling to C-levels with FAST methodology, multiyear contracts, and cross-selling FD.
- **Events Reboot**: 2025 investments to expand audience, integrate marketing/sales, and enhance experiences.


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