Forrester Research Inc

We sold Forrester Research in Q4 due to concerns about its revenue challenges, which we believe were mostly self-inflicted. While Forrester achieved peak earnings during the pandemic, it has struggled to maintain growth as larger peer Gartner continued to perform well. Recent cracks in Gartner's growth trajectory raised our concerns further, especially as AI chatbots have improved significantly, potentially drawing away paying subscribers. Given Forrester's significant deferred revenue, we worry that shrinking revenues could lead to cash outflows, making its cash pile less reliable for valuation.

Forrester Research provides advice and research to help business and technology leaders make better decisions. The firm was founded in 1983 by George Colony, who remains CEO and owns over 40% of the company. The core Research business is a subscription-based model paid in advance by customers and has 90% renewal rates, leading to high cash generation. Forrester is a very distant number two player in the space, after Gartner. While Forrester is usually mentioned in the same breath as Gartner when discussing leaders in technology research, Forrester’s economics pale in comparison.

Forrester Research provides advice and research to help business and technology leaders make better decisions. The firm was founded in 1983 by George Colony, who remains CEO and owns over 40% of the company. The core Research business is a subscription-based model paid in advance by customers and has 90% renewal rates, leading to high cash generation. Forrester is a very distant number two player in the space, after Gartner. While Forrester is usually mentioned in the same breath as Gartner when discussing leaders in technology research, Forrester’s economics pale in comparison.

Forrester Research provides advice and research to help business and technology leaders make better decisions. The firm was founded in 1983 by George Colony, who remains CEO and owns over 40% of the company. The core Research business is a subscription-based model paid in advance by customers and has 90% renewal rates, leading to high cash generation. Forrester is a very distant number two player in the space, after Gartner. While Forrester is usually mentioned in the same breath as Gartner when discussing leaders in technology research, Forrester’s economics pale in comparison.

Forrester Research provides advice and research to help business and technology leaders make better decisions. The firm was founded in 1983 by George Colony, who remains CEO and owns over 40% of the company. The core Research business is a subscription-based model paid in advance by customers and has 90% renewal rates, leading to high cash generation. Forrester is a very distant number two player in the space, after Gartner. While Forrester is usually mentioned in the same breath as Gartner when discussing leaders in technology research, Forrester’s economics pale in comparison.