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Forrester Research (Forrester Research) Gross Margin %

: 55.46% (As of Dec. 2023)
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Gross Margin % is calculated as gross profit divided by its revenue. Forrester Research's Gross Profit for the three months ended in Dec. 2023 was $65.5 Mil. Forrester Research's Revenue for the three months ended in Dec. 2023 was $118.1 Mil. Therefore, Forrester Research's Gross Margin % for the quarter that ended in Dec. 2023 was 55.46%.


The historical rank and industry rank for Forrester Research's Gross Margin % or its related term are showing as below:

FORR' s Gross Margin % Range Over the Past 10 Years
Min: 57.39   Med: 59.32   Max: 60.69
Current: 57.47


During the past 13 years, the highest Gross Margin % of Forrester Research was 60.69%. The lowest was 57.39%. And the median was 59.32%.

FORR's Gross Margin % is ranked better than
77.26% of 994 companies
in the Business Services industry
Industry Median: 34.85 vs FORR: 57.47

Forrester Research had a gross margin of 55.46% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Forrester Research was -0.30% per year.


Forrester Research Gross Margin % Historical Data

The historical data trend for Forrester Research's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Forrester Research Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 57.39 59.71 59.17 58.39 57.47

Forrester Research Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Gross Margin % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 58.50 56.64 59.72 57.70 55.46

Competitive Comparison

For the Consulting Services subindustry, Forrester Research's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Forrester Research Gross Margin % Distribution

For the Business Services industry and Industrials sector, Forrester Research's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Forrester Research's Gross Margin % falls into.



Forrester Research Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Forrester Research's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )=Gross Profit (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=276.3 / 480.779
=(Revenue - Cost of Goods Sold) / Revenue
=(480.779 - 204.484) / 480.779
=57.47 %

Forrester Research's Gross Margin for the quarter that ended in Dec. 2023 is calculated as


Gross Margin % (Q: Dec. 2023 )=Gross Profit (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=65.5 / 118.089
=(Revenue - Cost of Goods Sold) / Revenue
=(118.089 - 52.6) / 118.089
=55.46 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


Forrester Research  (NAS:FORR) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Forrester Research had a gross margin of 55.46% for the quarter that ended in Dec. 2023 => Durable competitive advantage


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.


Forrester Research Gross Margin % Related Terms

Thank you for viewing the detailed overview of Forrester Research's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Forrester Research (Forrester Research) Business Description

Traded in Other Exchanges
Address
60 Acorn Park Drive, Cambridge, MA, USA, 02140
Forrester Research Inc is a United States-based company that provides independent research, data, and advisory services. It operates through the following segments: The Research segment develops and delivers research, connect, and analytics products; The consulting segment includes the revenues and the related costs of the company's consulting organization, and the Events segment is engaged in developing and hosting in-person and virtual events.
Executives
Steven P. Peltzman officer: CBTO C/O FORRESTER RESEARCH, INC., 60 ACORN PARK DRIVE, CAMBRIDGE MA 02140
Scott Chouinard officer: Chief Accounting Officer C/O FORRESTER RESEARCH, INC., 400 TECHNOLOGY SQUARE, CAMBRIDGE MA 02139
Carrie Johnson officer: Chief Research Officer C/O FORRESTER RESEARCH, INC., 60 ACORN PARK DRIVE, CAMBRIDGE MA 02140
Ryan Darrah officer: Chief Legal Officer C/O FORRESTER RESEARCH, INC., 60 ACORN PARK DRIVE, CAMBRIDGE MA 02140
Anthony J Friscia director C/O FORRESTER RESEARCH, INC., 60 ACORN PARK DRIVE, CAMBRIDGE MA 02140
Robert Galford director C/O FORRESTER RESEARCH, 400 TECHNOLOGY SQUARE, CAMBRIDGE MA 02139
Alicia Lee officer: Chief Consulting Officer C/O FORRESTER RESEARCH, INC., 60 ACORN PARK DRIVE, CAMBRIDGE MA 02140
Kelley Hippler officer: Chief Sales Officer C/O FORRESTER RESEARCH, INC., 60 ACORN PARK DR., CAMBRIDGE MA 02140
David Boyce director C/O FORRESTER RESEARCH, INC., 60 ACORN PARK DRIVE, CAMBRIDGE MA 02140
Roy Sarah Le officer: Chief People Officer C/O FORRESTER RESEARCH, INC., 60 ACORN PARK DRIVE, CAMBRIDGE MA 02140
Warren N Romine director 7325 16TH STREET NW, WASHINGTON DC 20012
Sharyn Leaver officer: Chief Research Officer C/O FORRESTER RESEARCH, INC., 60 ACORN PARK DRIVE, CAMBRIDGE MA 02140
Nathaniel Swan officer: Chief Sales Officer C/O FORRESTER RESEARCH, INC., 60 ACORN PARK DRIVE, CAMBRIDGE MA 02140
George F Colony director, 10 percent owner, officer: Chairman & CEO C/O FORRESTER RESEARCH INC, 1033 MASSACHUSETTS AVE, CAMBRIDGE MA 02138
Gretchen Teichgraeber director C/O FORRESTER RESEARCH, 400 TECHNOLOGY SQUARE, CAMBRIDGE MA 02139