Q1 2025 Forrester Research Inc Earnings Call Transcript
Key Points
- Forrester Research Inc (FORR) exceeded consensus expectations for earnings per share and operating margin in the first quarter.
- The company reported healthy cash flow, with positive free cash flow of $26.1 million.
- Forrester Decisions, the company's main platform, is fully transitioned and showing strong client adoption, particularly with the Expanded Access format.
- The company is leveraging its strengths in AI and cybersecurity to penetrate more accounts, especially in the government sector.
- Forrester's AI research capabilities, including its proprietary large language model Izola, are being recognized as leading in the industry.
- Forrester Research Inc (FORR) experienced a 10% decline in overall revenue compared to the prior year period.
- Contract value (CV) decreased by 7% in the first quarter, with expectations for CV to be flat to slightly down for the year.
- Economic uncertainty and tariffs have led to hesitancy among buyers, particularly impacting the Asian and European markets.
- The company's government sector business, which makes up less than 6% of contract value, faced contract cancellations and is expected to remain tight.
- Sales cycles have lengthened by 10 to 12 days due to increased scrutiny and new processes among clients.
Good afternoon, and thank you for standing by. Welcome to Forrester's first quarter 2025 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 first quarter 2025. 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 statements within
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