Forrester Research (FORR) 5 Nov 24 2024 Q3 Earnings call transcript

Forrester, a leading research and advisory firm, held its third quarter earnings call for 2024, providing investors and stakeholders with a comprehensive update on the company's financial performance and strategic initiatives. The call, led by CEO George Colony and CFO Chris Finn, highlighted both challenges and opportunities for the company as it continues to navigate a rapidly evolving market landscape.

Performance Highlights

Forrester reported a mixed performance in Q3, with revenue declining 10% compared to the previous year, and contract value (CV) declining by 5%. Despite these challenges, the company showed progress in key areas, particularly in its migration to the Forrester Decisions platform, which is projected to be completed by the end of 2024. The platform, which offers clients direct access to analysts and continuous guidance, has been well-received and is expected to drive future growth.

Strategic Initiatives

One of the most significant strategic initiatives highlighted during the call was the launch of the FD service for data, AI, and analytics leaders. This new service aims to help executives and their teams pursue their most pressing priorities in the areas of data strategy, AI platform development, and data governance. This move underscores Forrester's commitment to staying at the forefront of technological innovation and providing value-added services to its clients.

Another strategic initiative discussed was the company's go-to-market strategy, which focuses on selling to C-level executives, standardizing sales activities, and leveraging its sales methodology (FAST) to reduce the time to close business. This strategic approach, which is expected to continue unchanged in the coming years, is aimed at returning Forrester to growth and scaling research contract value at double-digit rates.

Key Takeaways

1. Forrester is in the process of migrating its clients to the Forrester Decisions platform, which is projected to be completed by the end of 2024. This platform offers clients direct access to analysts and continuous guidance, differentiating it from competitors.2. The company is experiencing challenges in the form of declining revenue and contract value, but is making progress in areas such as Premier International and government contracts.3. Forrester's strategic initiatives, including the launch of the FD service for data, AI, and analytics leaders, and the implementation of its go-to-market strategy, are aimed at driving future growth and returning the company to profitability.4. The company remains confident about its future, despite the challenges faced in 2024, and is focused on using the fourth quarter to build a strong platform for 2025.

Conclusion

Forrester's third quarter earnings call provided investors and stakeholders with a clear understanding of the company's financial performance and strategic initiatives. While the company faces challenges in the form of declining revenue and contract value, it remains focused on its long-term growth prospects, particularly through the migration to the Forrester Decisions platform and the launch of new services like the FD service for data, AI, and analytics leaders. With a clear vision and a strategic approach, Forrester is well-positioned to navigate the challenges of the current market landscape and drive future growth.