Q2 2024 Forrester Research Inc Earnings Call Transcript
Key Points
- Forrester Research Inc (FORR) achieved a 5% year-over-year growth in contract value bookings, driven by improved renewal rates and cross-sell deals.
- The company successfully increased wallet retention by one point to 89%, indicating strong client loyalty.
- Forrester Decisions now accounts for 73% of total contract value, with a target to reach 80% by year-end, showing progress in product transition.
- The introduction of the generative AI tool, Izola, has been well-received, with 91% of questions answered from a single prompt.
- Forrester's client satisfaction survey results improved by three points, reflecting enhanced product offerings and customer satisfaction.
- Total revenue for Q2 decreased by 10% year-over-year, primarily due to underperformance in the Events and Consulting businesses.
- The Events business saw a 25% decline in revenue compared to the previous year, attributed to lower sponsorship and ticket sales.
- Consulting revenue dropped by 17% year-over-year, with macroeconomic headwinds impacting client spending decisions.
- Overall client retention remained low at 73%, despite slight improvements from Q1.
- The company lowered its financial guidance for the year, reflecting ongoing challenges in non-contract value businesses.
Good afternoon, and thank you for standing by welcome to Forrester's second quarter 2024 conference call. (Operator Instructions) Please be advised that today's conference is being recorded.
I would now like to turn the conference over to Vice President of Corporate Development and Investor Relations, Ed Bryce Morris. Please go ahead.
Thank you. And hello, everyone. Thanks for joining today's call. Earlier this afternoon, we issued our press release for the second quarter 2024. If you need a copy, you can find one on our website in the Investors section.
Here with us today to discuss our results are George Colony, Forrester's Chief Executive Officer and Chairman; and Chris Finn, Chief Financial Officer. Carrie Johnson, our Chief Product Officer; and Nate Swan, Chief Sales Officer, are also here with us for the Q&A section of the call.
Before we begin, I'd like to remind you that this call will contain forward-looking
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