Q1 2024 Forrester Research Inc Earnings Call
Operator: Good afternoon, and thank you for standing by. Welcome to Forrester's first quarter 2024 conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. 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
Yeah.
Speaker Change: Good afternoon, and thank you for standing by welcome to Foster a FERC first quarter 'twenty 'twenty four conference call. At this time, all participants are in a listen only mode.
Speaker Change: After the Speakers' presentation there'll be a question and answer session. Please be advised that today's conference is being recorded.
Speaker Change: I would now like to turn the conference over to Vice President of corporate development and Investor Relations at price Morris. Please go ahead.
Ed Bryce Morris: Thank you. And hello, everyone.
Ed Bryce Morris: Thank you and Hello, everyone. Thanks for joining today's call.
Ed Bryce Morris: Thanks for joining today's call. Earlier this afternoon, we issued our press release for the first quarter of 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, our chief sales officer, are also here with us for the Q&A section of the call.
Speaker Change: Afternoon, we issued a press release for the first quarter 2024.
Speaker Change: 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 Forest, as Chief Executive Officer and Chairman.
Crispin: Crispin Chief Financial Officer.
Speaker Change: Johnson, our chief product Officer, and Nate Swan, Our Chief sales Officer are also here with us for the Q&A section of the call.
Ed Bryce Morris: Before we begin, I'd like to remind you that this call will contain forward-looking statements within the meaning of the Private Securities and Litigation Reform Act of 1995. Words such as expects, believes, anticipates, intends, plans, estimates, or similar expressions are intended to identify those forward-looking statements. These statements are based on the company's current plans and expectations and involve risks and uncertainties that could cause future activities and results of operations to be materially different from those set forth in our forward-looking statements.
Speaker Change: Before we begin I'd like to remind you that this call will contain forward looking statements within the meanings of the private Securities Litigation Reform Act is 1995.
Words, such as expects believes anticipates intends plans estimates or similar expressions are intended to identify those forward looking statements.
These statements are based on the company's current plans and expectations.
Speaker Change: And involve risks and uncertainties that could cause future activities and results of operations to be materially different from those set forth in our forward looking statements.
Ed Bryce Morris: Factors that could cause actual results to differ are discussed in our reports and filings with the Securities and Exchange Commission, and the company undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events, or otherwise. Lastly, consistent with our previous calls, today we will be discussing our performance on an unadjusted basis, which excludes items affecting comparability. While reporting on an unadjusted basis is not in accordance with GAAP, we believe that reporting numbers on this adjusted basis provides a meaningful comparison and an appropriate basis for our discussion. You can find a detailed list of items excluded from these adjusted results in our press release.
Speaker Change: Is that could cause actual results to differ are discussed in our reports and filings with the security and Exchange Commission.
Speaker Change: The company undertakes no obligation to publicly update any forward looking statements, whether as a result of new information future events or otherwise.
Speaker Change: Lastly, consistent with our previous calls today, we will be discussing our performance on and an adjusted basis, which excludes items affecting comparability.
Speaker Change: While reporting on an unadjusted basis is not in accordance with GAAP. We believe that reporting numbers on this adjusted basis provides a meaningful comparison and an appropriate basis for discussion.
Speaker Change: You can find the detailed list of items excluded from these adjusted results in our press release.
Ed Bryce Morris: And with that, I'll hand it over to George.
George F. Colony: Thank you for joining Forrester's Q1 earnings call. With me today is Forrester's Chief Financial Officer, Chris Finn, who will provide a financial update following my remarks. We will then be joined by Carrie Johnson, our Chief Product Officer, and Nate Swan, our Chief Sales Officer, for the Q&A portion of the call. Today, I'd like to cover five key themes. Number one, our financial performance in Q1, the Forrester Decisions Migration, three investments in generative AI, four, improvements to our sales process, and five, a preview of our Q2 events. In the first quarter, CV decreased 4% in alignment with our plan.
Speaker Change: And with that I'll hand, it over to George.
George F. Colony: Thank you for joining foresters Q1 earnings call.
George F. Colony: Our key metrics have stabilized, with wallet retention up slightly from the prior quarter at 88% and Forrester Decisions client retention at 82%, flat compared to Q4. Overall, Forrester Decisions' client retention continues to outpace our legacy research products, with retention of the new platform running 10 points better than its predecessors. As we complete our migration, we anticipate retention to improve, creating a base for a return to contract value growth, and Chris will provide more detail on our metrics shortly.
George F. Colony: With me today is foresters, Chief Financial Officer, Chris Finn, who will provide a financial update following my remarks.
George F. Colony: We will then be joined by Carrie Johnson, our Chief product Officer, and Nate Swan, Our Chief sales officer for the Q&A portion of the call.
Today I'd like to cover five key themes number one our financial performance in Q1.
Two the Forrester decisions migration.
George F. Colony: Three investments degenerative AI.
George F. Colony: For improvements to our sales process and five a preview of our Q2 events.
George F. Colony: In the first quarter CV decreased 4% in alignment with our plan.
George F. Colony: Our key metrics have stabilized with wallet retention up slightly from the prior quarter at 88% and Forrester decisions client retention at 82% flat compared to Q4.
George F. Colony: Overall Forrester decisions client retention continued to outpace our legacy research products with retention of the new platform running 10 points better than its predecessors.
George F. Colony: As we complete our migration, we anticipate retention to improve creating a base for our return to contract value growth and Chris will provide more detail on our metrics shortly.
George F. Colony: While our CV business is stabilizing, we've continued to see challenges in our consulting business, an effect that will continue in 2023. The macroeconomic environment, especially within tech, remains difficult, with many companies still adverse to spending for projects.
George F. Colony: While our television business is stabilizing we've continued to see challenges in our consulting business and in fact it continues from 2023.
George F. Colony: The macroeconomic environment, especially within tech remains difficult with many companies still adverse to spending for projects.
George F. Colony: We plan to drive this business forward in Q2 and beyond with more focused sales and marketing efforts. We are in the final year of our transition to Forrester Decisions, and I am pleased to report that our migration efforts remain on track. Since launching our new platform in August of 2021, we have moved 70% of our contract value and are poised to hit our goal of 80% of our CV on Forrester decisions at year end.
George F. Colony: We plan to drive this business forward in Q2 and beyond with more focused sales and marketing efforts.
We are in the final year of our transition to Forrester decisions and I'm pleased to report that our migration efforts remain on track.
George F. Colony: Since launching our new platform in August of 2021, we've moved 70% of our contract value and are poised to hit our goal of 80% of our CV unfortunate decisions at year end.
George F. Colony: We continue our evolution from a library model, one in which mid-level executives use research to build a reference center for answering one-off questions, to a new engagement model as a more strategic, continuous research and advisory partner. This model enables Forrester to focus research on client problems and needs, enabling them to accelerate transformations, better align their functions, and drive growth through customer obsession. Now, how do we do this?
George F. Colony: We continue our evolution from a library model, one of which mid level executives use research to build a reference center for answering one off questions.
George F. Colony: Two a new engagement model is it more strategic continuous research and advisory partner.
This model enables forrester to focus research on client problems and needs, enabling them to accelerate transformations better align their functions and drive growth through customer obsession.
Speaker Change: Now how do we do this.
George F. Colony: At the onset of a Forrester Decisions relationship, we systematically collect the initiatives and outcomes of clients, the work that companies are engaged in, and the results that they're looking to achieve from that work. At the end of Q1, we had recorded initiatives for 85% of Forrester Decisions' leadership seats, up from 80% in the prior quarter. We think of initiatives and outcomes as the golden thread, guiding the relationship through time, and we believe that this will lead to a stickier, multi-year engagement.
Speaker Change: At the onset of a forrester decisions relationship, we systematically collect initiatives and outcomes of clients. The work that companies are engaged in and the results that they're looking to achieve from that work.
Speaker Change: At the end of Q1, we had recorded initiatives for 85% of Forrester decisions leader seats up from 80% in the prior quarter.
Speaker Change: We think your initiatives and outcomes is the golden thread guiding the relationship through time and.
Speaker Change: And we believe this will lead to stickier multiyear engagements.
George F. Colony: Here's a quote from an IT client at a large multinational food processing company. When you introduced the Forrester Decisions model, it really resonated with me that we could think through an initiative end-to-end and plan a series of engagements that help progress that initiative. We could bring a business case forward, put a project around it, and then successfully deliver outcomes.
Speaker Change: Here's a quote from an I T client a large multinational food processing company.
Speaker Change: When you introduced the Forrester decisions model it really resonated with me that we could think through initiatives end to end and playing a series of engagements that help progress that initiative.
Speaker Change: We could bring a business case forward put a project around it and then successfully deliver outcomes now it feels that where the Forrester decisions model you are partners in that endeavor.
George F. Colony: Now it feels that, with the Forrester Decisions model, you are partners in that endeavor. Forrester Decisions is helping us to expand our business with IT clients. Two research themes are currently resonating with CIOs and their staffs, generative AI and high-performance IT. Now the world is in the first innings of generative AI, so much of our research continues to be focused on early applications and sorting through the widening field of technologies and models.
Speaker Change: Forrester decisions is helping us to expand our business with ITG clients.
Speaker Change: Two research teams are currently resonating with Cio's and their staffs generative AI and high performance I T.
Speaker Change: Now the world is in the first inning of generative AI. So much of our research continues to be focused on early applications and sorting through the widening field of technologies and models.
George F. Colony: Unlike previous emerging technologies, Gen AI is going to touch all of our clients, whether they sell tires, insurance, software, or banking services. It is the topic most demanded by our clients, and over 50% of Forrester's analysts are directly engaged in Gen AI research. Unsurprisingly, it will be front and center at our two largest events of this quarter, the B2B Summit and the CX Summit. Departing from traditional thinking, high-performance IT recognizes that there's no one-size-fits-all IT organizational structure.
Speaker Change: Unlike previous emerging technologies journey is going to touch all of our clients, whether they sell tires insurance software or banking services.
Speaker Change: It is the topic most in demand by our clients and over 50% of Foresters analysts are directly engaged in G&A I research.
Speaker Change: Unsurprisingly it will be front and center at our two largest events of this quarter BTB summit and the CX summit.
Speaker Change: Departing from traditional thinking high performance I T recognizes that there is no one size fits all I T organizational structure.
George F. Colony: Counterintuitively, this stream of research shows that the best large companies are deploying several different styles of IT simultaneously, enabling them to respond to a multiplicity of diverse market conditions. This further complicates the lives of tech vendors, who must gear up to create different solutions for different divisions of the same customer.
Speaker Change: Counterintuitively. This stream of research shows that the best large companies are deploying several different styles of I T simultaneously, enabling them to respond to a multiplicity of diverse market conditions.
Speaker Change: This further complicates the lives of tech vendors, who must gear up to create different solutions for different divisions of the same customer.
George F. Colony: In addition to the groundbreaking research of Forrester Decisions, we recently made our generative AI tool, IZOLA, available to all of our approximately 1,500 Forrester Decisions accounts. iZola can rapidly synthesize our research, data, and insights, short-cutting clients straight to solutions. We are very proud to be the first major tech research firm to deploy a proprietary generative AI model for clients. Early IZOLA feedback has been quite positive, with customers describing it as useful, objective, and fast.
Speaker Change: In addition to the groundbreaking research of Forrester decisions. We recently made our generative AI tool is zola available to all of our approximately 1500 Forrester decisions accounts.
Speaker Change: I silicon rapidly synthesize our research data and insights short cutting clients straight to solutions.
Speaker Change: We are very proud to be the first major tech research firm to deploy a proprietary generative AI model for clients.
Speaker Change: Early is all the feedback has been quite positive with customers describe as useful objective and fast.
George F. Colony: An executive at a cloud-based software company put it simply, and I quote, it's absolutely critical for customers of research to have tools just like this. We are also using AI to increase productivity at Forrester. Employees are using iZola for knowledge discovery and topic alignment.
Speaker Change: An executive at a cloud based software company put it simply and I quote it's absolutely critical for customers of research to have tools just like this.
Speaker Change: We are also using AI to increase productivity at Forrester.
Employees are using ezola for knowledge discovery and topic alignment.
George F. Colony: We have also rolled out other predictive and generative AI point solutions to automate work in the company. One of these tools, Scout, was recently deployed in our customer success organization to quickly match client interactions with the appropriate analyst. I believe that expertise in generative AI is a critical asset for all companies, and I'm very proud of how quickly we have built that expertise at Forrester. We continue to advance toward a high-performance sales culture.
We have also rolled out other predictive in generative AI point solutions to automate work in the company.
Speaker Change: One of these tools Scout was recently deployed with our customer success organization to quickly match client interactions with the appropriate analysts.
Speaker Change: I believe that expertise and Jeremy I is a critical asset for all companies and are very proud of how quickly we have built that expertise at Forrester.
Speaker Change: We continue to advance toward a high performance sales culture.
George F. Colony: Under the leadership of Nate Swan, the Forrester sales force is focused on net contract value increase, or NCVI, calling higher and larger organizations, operating using a standard process and methodology, selling more multi-year contracts, and a culture of continuous coaching and improvement. Forrester sales executives are focused on increasing their insight into client accounts, becoming more influential with our clients, all in the cause of building trust. This enhanced sales motion is matched to the on-your-side and by-your-side design of Forrester Decisions, a continuous engagement that enables clients to achieve their outcomes faster.
Speaker Change: Under the leadership of next one the Forrester sales force is focused on net contract value increase or in CVI.
Speaker Change: Calling higher in large organizations.
Speaker Change: Operating using a standard process and methodology.
Speaker Change: Selling more multi year contracts and a culture of continuous coaching and improvement.
Speaker Change: Forrester sales executives are focused on increasing your insight into client accounts, becoming more influential with our clients all in the cause of building trust.
Speaker Change: This enhanced sales motion is matched to the on your side the buyer side design of Forrester decisions, a continuous engagement that enables clients to achieve their outcomes faster and the strategy is progressing.
George F. Colony: And the strategy is progressing. The North American New Business team, for example, is significantly outpacing its first half performance from a year ago. Important large renewals and migrations of existing business occurred in Q1, including a $1.6 million research contract with a technology services client and a $500,000 forester decisions enrichment with a U.S. federal government agency. Before I turn the call over to Chris, I'd like to share a preview of our Q2 events.
Speaker Change: The North American New business team for example is significantly outpacing its first half performance from a year ago.
Speaker Change: Important large renewals in migrations of existing business occurred in Q1, including a $1.6 million research contract with the technology services client and a 500000 dollar Forrester decisions enrichment with a U S Federal government agency.
Speaker Change: Before I turn the call over to Chris I'd like to share a preview of our Q2 events.
George F. Colony: As we've stated before, events are a critical driver of contract value, bringing Forrester's research to life for prospects and existing clients. In the second quarter, we will host four events globally: B2B Summit North America, and CX Summit in the U.S., Europe, and Asia.
Speaker Change: As we've stated before events are a critical driver of contract value, bringing forces research to life for prospects and existing clients.
Speaker Change: In the second quarter, we will host a four events globally.
Chris Finn: Some in North America, and CX summit in the U S Europe and Asia.
George F. Colony: At B2B Summit, we will recognize Verizon Business, DDI, and ADP as winners of our Return on Integration Honors for delivering impactful customer experiences through the alignment of marketing, sales, and product. To complete my remarks, I want to reiterate my optimism about our long-term business. As I've said on previous calls, we are transitioning to a major new product in a time of general economic challenges and a retrenchment in the technology industry. These conditions have affected our financial performance, but we remain confident that we are making the right moves to set the company up for long-term health and growth. I will now turn the call over to Chris for our financial update. Chris. Thanks, George.
Chris Finn: At summit, we will recognize Verizon business DDI and ETP as winners of our return on integration honors for delivering impactful customer experiences through the alignment of marketing sales and product.
Chris Finn: To complete my remarks, I want to reiterate my optimism, but our long term business.
Chris Finn: As I've said in previous calls we are transitioning to a major new product in a time of general economic challenges and a retrenchment in the technology industry.
Chris Finn: These conditions have affected our financial performance, but we remain confident that we are making the right moves to set the company up for long term health and CV growth.
Chris Finn: I will now turn the call over to Chris for a financial update Chris.
Chris Finn: Thanks George, and good afternoon everyone. Our first quarter results were mixed, as our CV research business performed in line with our expectations, while the consulting business underperformed as it continues to be impacted by a challenging budgetary environment and the broader issues affecting the tech market. Despite these uneven results, we saw some positive green shoots in Q1, including reaching the 70% threshold of CV in Forrester decisions, an uptick in new business supported by interest in our high-performance IT and Gen AI content, the stabilization of our key retention metrics, and the expanded rollout of our AI tool, Izola.
Chris Finn: Thanks, George and good afternoon, everyone.
Chris Finn: Our first quarter results were mixed as our CV research business performed in line with our expectations, while the consulting business underperformed as it continues to be impacted by challenging budgetary environment and the broader issues affecting the tech market.
Chris Finn: Despite these uneven results we saw some positive green shoots in Q1, including reaching the 70% threshold of C V enforcer decisions and uptick in new business supported by interest in our high performance IP and Jenny I content, the stabilization of our key retention metrics and the expanded rollout of our AI tool Osceola.
Chris Finn: Q1 saw a 4% CV decline in the quarter, and overall revenue decreased 12%. For the total company, we generated $100.1 million in revenue compared to $113.7 million in the prior year period. As we noted on a prior call, we expected revenue declines this year due to the impact of the decline of bookings during 2023. However, the revenue decline in the first quarter was higher than expected, though, by approximately four points, largely driven by our advisory and consulting businesses.
Q1 saw a 4% CV declined in the quarter and overall revenue decreased 12% for the total company regenerated $100.1 million in revenue compared to $113.7 million in the prior year period.
Chris Finn: As we noted on our prior call we expected revenue declines this year due to the impact from the decline in bookings during 2023 through.
Chris Finn: The revenue decline in the first quarter was higher than expected, though by approximately four points largely driven by our advisory and consulting businesses.
Chris Finn: We continue to believe that macro headwinds will persist throughout 2024, and this is causing our clients to put off buying decisions or modestly shrink their overall research budgets. This is significantly impacting our consulting business, and to a lesser extent, our research and events businesses.
We continue to believe that macro headwinds will perpetuate throughout 2024, and this is causing our clients to put off buying decisions are modestly shrinking their overall research budgets.
This is significantly impacting our consulting business and to a lesser extent, our research and events businesses and.
Chris Finn: And although we expect to return to bookings growth in the second half of 2024, the revenue impact will be muted this year. In terms of our revenue breakdown for the quarter, research revenues decreased 5% compared to the first quarter of 2023, with revenue from our subscription research products down 3%, coupled with declines in our reprint and other small and discontinued products. Overall client retention of 72% was flat, and wallet retention of 88% improved slightly compared to Q4.
Chris Finn: Although we expect to return to bookings growth in the second half of 2020 for the revenue impact will be muted this year.
Chris Finn: In terms of our revenue breakdown for the quarter.
Chris Finn: Research revenues decreased 5% compared to the first quarter of 2023 with revenue from our subscription research products down 3%, coupled with declines in our reprint and other small and discontinued products.
Chris Finn: Overall client retention of 72% was flat and wallet retention of 88% improved slightly compared to Q4 <unk>.
Chris Finn: While Forrester's decision-specific client retention of 82% was flat, and retention of 88% improved versus the fourth quarter, although overall client count is down from the prior quarter, Forrester Decisions' client count continues to grow, and Forrester Decisions' client retention remains well above overall client retention by approximately 10 points. As we complete the Forrester Decisions Migration in 2024, we expect retention metrics to steadily improve throughout the year. We remain on track for a Forrester Decisions migration plan, and we now have approximately $225 million of CV, or 70% of total CV, on the platform.
While Forrester decision specific client retention of 82% was flat and wallet retention of 88% improved versus the fourth quarter.
Chris Finn: Although overall client count is down from the prior quarter Forrester decisions client count continues to grow and foster decision client retention remains well above overall client retention by approximately 10 points.
Chris Finn: As we complete the forester decisions migration in 2024, we expect retention metrics to steadily improve throughout the year.
Chris Finn: We remain on track for a fast decisions migration plan and we now have approximately $225 million of C V, where 70% of total CV on the platform.
Chris Finn: Our consulting business posted revenues of $23.1 million, which was down 27% compared to the prior year. Both consulting and advisory product lines had a challenging quarter, and we expect these challenges to continue throughout 2024. And finally, regarding our events business, we did not hold any events in the first quarter and posted revenues of $0.4 million, representing a decrease of 65% compared to the first quarter of 2023. Continuing down our P&L on an adjusted basis, operating expenses for the first quarter decreased by 9%, primarily driven by lower compensation and related costs.
Our consulting business posted revenues of $23 $1 million, which was down 27% compared to the prior year, both consulting and advisory product lines had a challenging quarter and we expect these challenges to continue throughout 2024.
Chris Finn: And finally regarding our events business, we do not hold any ranch in the first quarter and posted revenues of point $4 million, representing a decrease of 65% compared to the first quarter of 2023.
Chris Finn: Continuing down our P&L on an adjusted basis operating expenses for the first quarter decreased by 9%, primarily driven by lower compensation related costs, specifically on head count for the first quarter, we were down 14% compared to the same period in 2023, we continue to monitor head count hiring and attrition very closely.
Chris Finn: Specifically, on headcount, for the first quarter, we were down 14% compared to the same period in 2023. We continue to monitor headcount, hiring, and attrition very closely, and we are encouraged that attrition has remained very low throughout 2023 and into 2024. Operating income decreased by 54% to $3.4 million, or 3.4% of revenue, in the current quarter, compared to $7.5 million, or 6.6% of revenue, in the first quarter of 2023. Lower operating income and margin were primarily driven by declines in our consulting business, coupled with seasonal trends which impact the business in Q1, including traditionally not holding events during the first quarter.
Chris Finn: And we are encouraged that attrition has remained very low throughout 2023 and into 2024.
Chris Finn: Operating income decreased by 54% to $3 $4 million or three 4% of revenue in the current quarter compared to $7.5 million or six 6% of revenue in the first quarter of 2023.
Lower operating income and margin were primarily driven by declines in our consulting business, coupled with seasonal trends, which impact the business in Q1, including traditionally not holding events during the first quarter.
Chris Finn: Interest expense for the quarter was $0.8 million, consistent with the first quarter of 2023. Finally, net income and earnings per share decreased 46% and 48%, respectively, compared to Q1 of last year, with net income of $2.8 million and earnings per share of $0.14 for the current quarter, compared with net income of $5.1 million and earnings per share of $0.27 in the first quarter of 2023. Looking at our capital structure, our first quarter cash flow from operating activities was $0.6 million, and capital expenditures were $1.4 million.
Chris Finn: Interest expense for the quarter was point $8 million consistent with the first quarter of 2023.
Chris Finn: Finally, net income and earnings per share decreased 46% and 48% respectively compared to Q1 of last year with.
Chris Finn: With net income of $2.8 million and earnings per share at 14 cents for the current quarter compared with net income of $5 $1 million and earnings per share of <unk> 27 cents in the first quarter of 2023.
Looking at our capital structure first quarter cash flow from operating activities was point $6 million and capital expenditures were $1.4 million cash flows were negatively impacted by the payment of the litigation settlement this quarter as well as severance payments under our restructuring plans, we had $118.5 million of cash and investments as we exited the quarter.
Chris Finn: Cash flows were negatively impacted by the payment of the litigation settlement this quarter, as well as severance payments under our restructuring plans. We had $118.5 million of cash in investments as we exited the quarter. We did not pay down any debt during the first quarter. However, we did repurchase approximately $4.1 million worth of shares in the period.
Chris Finn: We did not pay down any debt during the first quarter. However, we did repurchase approximately $4 $1 million worth of shares in the period in.
Chris Finn: In addition, the board just approved a $25 million increase to the repurchase program, bringing the remaining authorization to $89 million. Guidance for 2024 remains unchanged, so let me provide some additional comments on the outlook for the year. Revenue is still expected to be in the range of $430 million to $450 million. This guidance assumes the outlook for the research business to be a mid-single-digit decline, a decline in our consulting business of the mid-to-high teens, and a decline in our events business of the high single digits for the year.
Chris Finn: In addition, the board just approved a $25 million increase to the repurchase program, bringing the remaining authorization to $89 million.
Speaker Change: Guidance for 2024 remains unchanged. So let me provide some additional comments on the outlook for the year.
Speaker Change: Revenue is still expected to be in the range of $430 million to $450 million. This guidance assumes the outlet for the research business to be a mid single digit decline a decline in our consulting business in the mid to high teens and a decline in our events business in the high single digits for the year.
Chris Finn: Operating margins are still expected to be in the range of nine and a half to ten and a half percent. Interest expense is expected to be approximately $3 million for the year, and we are continuing to guide to a full-year tax rate of approximately 29%.
Speaker Change: Operating margins are still expected to be in a range of nine and a half to 10, 5%.
Speaker Change: Interest expense is expected to be approximately $3 million for the year and we're continuing to guide to a full year tax rate of approximately 29%.
Chris Finn: Taking all this into account, we are maintaining earnings per share in the range of $1.50 to $1.70. As expected, 2024 will be a challenging year as we complete the Forrester Decisions migration and continue the evolution of our go-to-market team. We believe we will start to see momentum gather as we progress through the year and into 2025. Our focus is on returning to CV growth driven by a flagship Forrester Decisions product. We expect to see ongoing headwinds in the non-CV businesses, specifically in our consulting business.
Speaker Change: Taking all this into account we are maintaining earnings per share in the range of $1 50 to $1 70.
Speaker Change: As expected 2024 will be a challenging year as we complete the Forrester decisions migration and continue the evolution of our go to market team. We believe we will start to see momentum gather as we progressed through the year and into 2025.
Speaker Change: Our focus is on returning the CV growth driven by flagship Forrester decisions product, we expect to see ongoing headwinds from our non CD businesses, specifically in our consulting business. Despite these challenges. We believe Forrester research has never been more relevant where needed in the marketplace. The expanded rollout this quarter of our jet AI tool is ola.
Chris Finn: Despite these challenges, we believe Forrester's research has never been more relevant or needed in the marketplace. The expanded rollout this quarter of our Gen AI tool, IZOLA, is a testament to our ability to stay at the forefront of technology trends. Furthermore, we believe these technological disruptions will be the fuel to drive future demand for our product. Thank you all for taking the time today, and with that, I will hand the call back to George.
Speaker Change: As a testament to our ability to stay at the forefront of technology trends. Furthermore, we believe these technology disruptions will be the fuel to drive future demand for our products.
Speaker Change: Thank you all for taking the time today and with that I'll hand, the call back to George.
George F. Colony: Before we open up the call for Q&A, I want to reiterate the fundamentals of our business. Large corporations continue to need research and advice to navigate technological changes and shifts in customer behavior. The dynamics that drive long-term demand for forestry services are not abating, and Forestry Decisions is the research platform that allows us to seize this expanding opportunity. I'm now going to hand the call back to the operator, and we will now take questions.
George F. Colony: Thank you Chris.
Before we open up the call for Q&A I want to reiterate the fundamentals of our business.
George F. Colony: Large corporations continued to need research and advice to navigate tech changes and shifts in customer behavior.
George F. Colony: The dynamics that drive long term demand for Forrester services are not abating enforcer decisions is the research platform that allows us to seize this expanding opportunity.
Speaker Change: I'm now going to hand, the call back to the operator, and we will now take questions.
Operator: As a reminder, to ask a question, you will need to press star one one on your telephone. To withdraw your question, please press star 1 1 again. Please stand by while we compile the Q&A route. And I will show our first question comes from the line of Andrew Nicholas from William Blair. Please go ahead.
Speaker Change: Thank you Sir.
Speaker Change: As a reminder to ask a question you would need to press star one one on your telephone.
Speaker Change: Your question. Please press star one again.
Speaker Change: Please standby, while we compile the Q&A roster.
Speaker Change: And I show. Our first question comes from the line of Andrew Nicholas from William Blair. Please go ahead.
Tom Rashawn: Hi, good afternoon. This is Tom Rashawn on behalf of Anja and Nicholas. I wanted to ask about what kind of selling environment you saw during the quarter and how it progressed relative to expectations as well as for the fourth quarter.
Speaker Change: Hi, Good afternoon. This is Tom on for Andrew Nicholas.
Tom: I wanted to ask about what kind of song environment, you saw during the quarter and kind of how it congrats relative to your expectations in the fourth quarter.
Operator: Just to clarify, you said what type of selling environment are we seeing? I want to make sure I heard that clearly.
Speaker Change: Just to clarify you said what type of selling environment are we seeing I wanted to make sure I heard that clearly.
Nate Swan: This is Nate, by the way. Yeah. Yeah, they're selling. Okay.
Speaker Change: Alright.
Nate Swan: Great. So the selling environment, certainly, you know, we remain very confident in what we are selling to senior executives. We saw with our new business teams, especially, that we really increased year over year on that new business motion, you know, very significantly, and we see that as a big opportunity in Q2 as well to continue. On the high-tech side, we saw really great progress on our ideal customer profile, so really staying focused there, and that actually is turning in some really good results.
Speaker Change: Yes, yes, okay.
Speaker Change: Great.
Speaker Change: So the selling environment certainly we remain.
Speaker Change: So very confident in what we.
Speaker Change: In selling to senior executives, we saw with our new business teams, especially that we are really increase year over year on that new business motion.
Speaker Change: Up very significantly and we see that as a big opportunity in Q2 as well to continue on the high Tech side, we saw really great.
Speaker Change: Progress on our ideal customer profile, so really staying focused there and that actually is turning in some really good results.
Nate Swan: But certainly, you know, challenges in other parts of the business in the high-tech side of the business with some of the retention challenges that you would see with the tech recession that is out there. But we're seeing really good results in certain sectors, like the government sector. We're seeing some good results around the world. So I feel confident in the selling environment and facing some of the same challenges that I think others face in selling to vendors right now. Yeah.
Speaker Change: But certainly challenges in other parts of the business in the high tech side of the business.
Some of the retention.
Challenges that you would see.
Speaker Change: With the tech recession that is out there.
Speaker Change: Really good results in the.
Speaker Change: Certain sectors like the government sector, we're seeing some good results around the world So feel confident in the selling environment.
Speaker Change: And facing some of the same challenges that I think other spacing and selling two vendors right now yeah, Europe, but Europe, and Asia, I think feels stronger than the U S.
Nate Swan: Yeah, Europe and Asia feel stronger than the U.S.
Nate Swan: Great, thanks. And then for my follow-up, I was wondering what kind of feedback you've gotten on Zola so far and what kind of benefits you're expecting as we go through the year, whether it be on retention or maybe new sales.
Speaker Change: Okay. Thanks, and then.
Speaker Change: For my follow up I was wondering what kind of feedback you've gotten on.
Speaker Change: Well, so far and kind of what kind of benefits you are expecting as we go through the year, whether it be on retention or maybe new cells.
Carrie Johnson Fanlo: Sure, I'll start with that. This is Carrie.
Speaker Change: Okay.
Speaker Change: Sure I'll start with that this is Carrie Hello client feedback on <unk> has been incredibly strong part of the reason here is that we have developed that sort of side by side with clients cooking.
Speaker Change: All groups and extending them in terms of access and really starting to understand the context of a question. So generative AI can certainly produce a nonsensical result.
Carrie Johnson Fanlo: Hello, client feedback on IZOLA has been incredibly strong. Part of the reason for this is that we have developed this sort of side by side with clients, taking small groups and expanding them in terms of access and really starting to understand the context of a question. So generative AI can certainly produce some nonsensical results.
Speaker Change: We have worked really hard to make sure that the client.
Speaker Change: Answers.
From our trusted research Ali.
Speaker Change: That is what clients have been responding to that it's really helping them.
Speaker Change: Get fast answers from across our trusted.
Research longitudinal research and also then inform the conversations that they're having with our expert nor so theyre getting sort of a leg up in the conversations are coming to the table with part of the answer and then we're having deeper conversations with our analysts.
Speaker Change: In terms of I'll, let Nate talk a little bit about the I don't want as a competitive differentiation and selling environment Forrester decisions is.
Speaker Change: Sorry, I thought it was only available to Forrester decisions clients, which is a big selling point, we believe for the new portfolio and we looked at those migrate customers and also from a new business perspective, and it's also quite appealing to the leaders who are looking for their teams to get up to speed quickly.
Speaker Change: On key initiatives, although some legacy clients want is ola.
Speaker Change: They do and it's only available to Forrester clients.
Speaker Change: Yeah, and as far as in the selling environment. It certainly makes it easier youre getting to answers quicker. So it's.
Carrie Johnson Fanlo: And we have worked really hard to make sure that the answers are from our trusted research only. And that is what clients have been responding to, that it's really helping them get fast answers from across our trusted set of research, longitudinal research, and also then inform the conversations that they're having with our experts more. So they're getting sort of a leg up in the conversations. They're coming to the table with part of the answer.
Carrie Johnson Fanlo: And then we're having deeper conversations with our analysts. In terms of, I'll let Nate talk a little bit about IZOLA as a competitive differentiation in the selling environment, Forrester Decisions is only, I'm sorry, IZOLA is only available to Forrester Decisions clients, which is a big selling point, we believe, for the new portfolio as we look to both migrate customers and also from a new business perspective And it's also quite appealing to leaders who are looking for their teams to get up to speed quickly on key initiatives.
Speaker Change: Clients are looking for answers theyre looking for answers quickly.
Speaker Change: And so if we can help save them time is certainly well received.
Speaker Change: So our existing clients and our prospects have.
Speaker Change: Given us great feedback that that it is a great time saving.
Speaker Change: And it's giving them really good answers also saving time on the <unk> side, because CSM. So I'll have to get involved with those questions.
Speaker Change: Yeah, and I'd also just add one more thing to just derived from sales perspective. It is opening doors for us and we're having the conversations obviously in.
Carrie Johnson Fanlo: Although some legacy clients want IZOLA,
Speaker Change: And thats been helpful.
Speaker Change: Awesome. Thank you.
Speaker Change: Yes, good question.
Speaker Change: Yeah.
Carrie Johnson Fanlo: They do, but it's only available to Forrester Research clients.
Speaker Change: Thank you.
Speaker Change: And I say our next question comes from the line of Anya <unk> from Sidoti. Please go ahead.
Anya: Alright. Thank you for taking my questions I have a follow up on that.
Anya: Hum.
Anya: And you mentioned, some I guess the client wants to use it or.
Anya: Having been a driver for.
Anya: For them to transition to the prestigious patient got farmer.
Anya: Can you still see hesitation there.
Speaker Change: Yes, I think both Gary and I can comment on that.
Speaker Change: Yeah.
Speaker Change: Forrester decisions is where we're making the investment into our products.
Speaker Change: We're not planning on bringing <unk> to our legacy products.
Speaker Change: So that is another reason to make that migration.
Speaker Change: It is a difference maker for people.
Speaker Change: Chris stated earlier, we're on our path to getting to 80% by the end of the year and that is one of the big drag.
Speaker Change: Drivers is making it easier for people to do their jobs. So I think it really is a differentiator for us.
Speaker Change: And it shows that we're out front in the market and.
Speaker Change: Living what we talked about all the time, which is putting something into action.
Speaker Change: That can really help your business.
Speaker Change: Okay. Thank you and then in terms of that.
Speaker Change: Our clients in a setting of smaller clients.
Speaker Change: And stick with that.
Speaker Change: Let me grab clients.
One that we did that to date.
Speaker Change: Stabilizing licensees client count increase again.
Speaker Change: Yes, it's a good question.
Speaker Change: I think as we talked about.
Speaker Change: We're achieving we're approaching 80% at the end of this year, that's the target we're certainly on track.
Speaker Change: To get there.
Speaker Change: We've shed.
Speaker Change: We will start to see CV growth.
Speaker Change: Stabilized this year as we get into the back half.
And start to grow.
Speaker Change: Slightly flat to slightly up.
Speaker Change: As we exit the year. So our expectation is that we should start to see client growth move in a positive direction as we exit the year along with CV.
Speaker Change: Also note just on the.
Speaker Change: From a legacy perspective, where we have left for CV hits approximately $50 million that are in the heritage products.
Speaker Change: We expect about half of that is actually migrate successfully and I do expect the conversations around Iowa to be part of this migration discussions and then the other half.
Speaker Change: We expect <unk> to migrate but at lower overall spend are likely not renew at all.
Speaker Change: And Thats, obviously built into our expectations and our guide for the year.
Speaker Change: Okay. Thank you.
Speaker Change: The larger clients.
Speaker Change: Our remaining on.
Speaker Change: It was just sort of measure that.
Speaker Change: An expansion opportunity with them.
Speaker Change: <unk> targets there and.
Speaker Change: Good luck with your targets.
Speaker Change: Sort of wallet retention.
Speaker Change: Yes, so from a.
Speaker Change: Theres, probably multiple ones of us that can make comments here.
Speaker Change: From a sales perspective, we are always doing our account planning exercises. The nice thing is that we have.
Speaker Change: At Forrester have multiple personas in multiple areas that we can go into.
Speaker Change: Typically we believe arent, what we believe our biggest opportunity is that growth through account expansion.
Speaker Change: Into these accounts, we are typically in one to two buying centers and have another three to four that we feel we can comfortably go after.
And so.
Speaker Change: As we do our.
Speaker Change: Our account modeling our account planning.
Speaker Change: Look at where is the next most logical place to go based on where we're currently at.
Speaker Change: As you know all you are fortunate decisions was designed for expansion and wallet retention. So.
Speaker Change: And that is.
Speaker Change: Nate has put a lot of.
A lot of focus on that in the sales force this year.
Speaker Change: Okay. Thank you and then I have one question about your share buybacks nice expansion there.
Speaker Change: Given where you're trading now and this being a transition year do you think youre going to be more aggressive on.
Speaker Change: Buybacks.
Speaker Change: Yes, I think as we've discussed this in the past.
Speaker Change: We obviously evaluate best uses of cash, including keeping powder dry for Optionality and I think we along with the board probably is a good opportunity to purchase shares in the first quarter.
Speaker Change: And we're comfortable with the current volume and we're going to continue to look at it and be opportunistic as we move forward in the year.
Speaker Change: That's why the board expanded the buyback exactly.
I think Nick thanks.
Speaker Change: Thanks.
Speaker Change: Thank you and.
Speaker Change: And I show our next and last question comes from the line of Vincent Colicchio from Barrington Research. Please go ahead.
Nate Swan: Yeah, and as far as in the selling environment, it certainly makes it easier. You're getting to answers quicker, so it's, you know, clients are looking for answers. They're looking for answers quickly. And so if we can help save them time, it is certainly well received. So our existing clients and our prospects have given us great feedback that it is a great time-saving effort and it's given them really good answers.
Nate Swan: It's also saving time on the Forrester side because CSMs don't have to get involved with those questions. Yeah, and I'd also just add one more.
Speaker Change: Yes.
Vincent Alexander Colicchio: I'm curious how would you characterize the sequential change in the CV business pipeline from last quarter.
Nate Swan: Yeah, and I'd also just add one more thing, too, just from a sales perspective. It is opening doors for us, and we're having the conversations, obviously, and that's been
Vincent Alexander Colicchio: CV pipeline is growing.
Vincent Alexander Colicchio: So we put a major focus on it.
Really Vince if I look at the sales organization the big priorities for US are upscaling. So that we can call on those more senior executives now that we're in the middle of that process.
Vincent Alexander Colicchio: We are expecting people to make more calls to higher level executives.
So therefore, we expect to generate more pipeline.
Operator: Good question.
The sales game is a math game how much retention do you have how much growth can you build to start going forward and so we are very focused on driving more pipeline and the sales organization and the sales organization is responding really well, they're they're excited about it.
Vincent Alexander Colicchio: They believe that they have opportunity.
Vincent Alexander Colicchio: And.
Vincent Alexander Colicchio: So we believe that the.
Vincent Alexander Colicchio: The pipeline growth will continue and we're measuring that on a weekly basis.
Operator: And I show our next question comes from the line of Anja Soderstrom from Sidelity. Please go ahead.
Vincent Alexander Colicchio: And Nate is the progress towards selling to more senior people meeting your expectations.
Anja Marie Theresa Soderstrom: Hi, thank you for taking the questions. I have a follow-up on Isola and the solution.
Nate Swan: Yes, I think so I think.
Nate Swan: The sales organization has really leaned in and we are.
Anja Marie Theresa Soderstrom: You mentioned some legacy clients want to use it as well. Has it been a driver for them to transition to the Forrester Decision platform, or is there still some hesitation there?
Nate Swan: Moving from a <unk>.
Nate Swan: Enterprise access to Forrester decisions. They are excited about that that's where our analyst community spends their time, that's where they want to be.
Nate Swan: Yeah, I think both Carrie and I can comment on that. You know, Forrester Decisions is where we're making the investment in our products. You know, we're not planning on bringing IDOLA to our legacy products, and so that is another reason to make that migration. It is a difference maker for people. As Chris stated earlier, you know, we're on our path to getting to 80% by the end of the year, and that is, you know, one of the big drivers is making it easier for people to do their jobs.
Nate Swan: So I think it really is a differentiator for us, and it shows that we're out front in the market and living what we talk about all the time, which is putting something into action that can really help your business.
Chris Finn: Okay, thank you. And then in terms of the clients, sort of shedding smaller clients and sticking with the London Grab clients. Why do you anticipate that it will stabilize, and we should see the client count increase again?
Nate Swan: They've they've really embraced the methodology change that.
Nate Swan: We've gone to.
Chris Finn: Yeah, that's a good question, Anja. You know, as we talked about with CV, right, we're approaching 80% at the end of this year. That's the target. We're certainly on track to get there. And we've said, you know, we will start to see CV growth stabilize this year as we get into the back half, and then start to grow, be slightly flat, slowly up as we exit the year.
We're in the midst of that rollout right now and so I think they're very excited because salespeople.
Chris Finn: So, you know, our expectation is that we should start to see client growth move in a positive direction as we exit the year along with CV. I'd also note, from a legacy perspective, where we have left for CV, it's approximately $50 million that are in the heritage products. We expect about half of that to actually migrate successfully, and I do expect the conversations around IZOLA to be part of those migration discussions. And then the other half, you know, we expect it to either migrate but at a lower overall spend or not renew at all. And that's obviously built into our expectations and our guidance.
Nate Swan: They want to be successful in their roles and they know this is how they're going to be successful.
Nate Swan: And the methodologies methodology change is really focused on helping salespeople be more influential have more insight on the client and that is very relevant for calling hype.
Nate Swan: And whats consulting weak across the board or are there any pockets of strength such as perhaps generative AI projects.
Anja Marie Theresa Soderstrom: Okay, thank you. And in terms of the larger clients that are remaining, are you able to sort of measure the sort of expansion opportunity with them and set targets there and also set targets for your own sort of wallet retention?
Nate Swan: Yeah, so from my perspective, there are probably multiple ones of us that can make comments here. I would say that from a sales perspective, we are always doing our account planning exercises. You know, the nice thing is that we at Forrester have multiple personas and multiple areas that we can go into. Typically, we believe our, well, we believe our biggest opportunity is growth through account expansion into these accounts. We are typically in one to two buying centers and have, you know, another three to four that we feel we can comfortably go after. And so, you know, as we do our account modeling or account planning, we look at where is the next most logical place to go based on where we're currently at.
Nate Swan: We did hi, Vince it's Kerry we did.
Carrie Johnson Fanlo: As you know, Forrester Decisions was designed for expansion and wallet retention, and Nate has put a lot of focus on that in Salesforce this year.
The interest in projects like generative AI and of course. They are in these times clients also come to us to do some cost optimization type.
Nate Swan: Type of work just looking at their say.
Kerry: Cit's portfolio as an example, right things like that.
Anja Marie Theresa Soderstrom: Okay, thank you. And then I have one question about your share buybacks, nice expansion there. Given where you're trading now and this being a transition year, do you think you're going to be more aggressive, or what's your approach to buybacks?
Chris Finn: Yeah, you know, I think as we've discussed this in the past, we obviously evaluate the best uses of cash, right, including keeping a positive drive for optionality. And I think we, along with the board, have a good opportunity to purchase shares in the first quarter. And we're comfortable with the current volume, and we're going to continue to look at it and be opportunistic.
Kerry: We do a mix our consulting business is a mix of what I would call what we.
Kerry: We call strategic consulting and then there is some demand Gen work that we do like RTI and as you can imagine in the demand Gen spaces, where we're heavily dependent on.
The Tech high Tech area, that's where we saw some weaknesses in some of those types of products.
Chris Finn: That's why the board expanded the buyback.
Speaker Change: And Chris any help on the cadence of revenue and earnings through the balance of the year Q2 is usually a good strong quarter.
But was just wondering.
Chris Finn: If we should see any pattern different from seasonal seasonal.
Chris Finn: Trends in the past we've seen in the past.
Anja Marie Theresa Soderstrom: Okay, thank you. That was helpful to me. (inaudible)
Chris Finn: Yes look I think.
Chris Finn: As we talked about from a from a revenue perspective.
Chris Finn: Do expect to continue to see declines this year from.
Chris Finn: From a top line perspective.
Chris Finn: On the research services line I think you should start to see that abate, certainly STB stabilizes and we get through the year I mean, do you expect that slight.
Chris Finn: <unk> to slightly up.
Chris Finn: End of the year exiting Q4, so youll start to see that.
Chris Finn: Sort of that decline start to slow I think on the on the consulting business side I think we're going to remain challenged for the rest of the year.
Chris Finn: In our events I'd say, it's probably the same story as the research line should start to see that decline.
Chris Finn: The clients start to abate.
Yes.
Chris Finn: And you better and slower as we get through the end of the year.
Okay.
Speaker Change: Thanks for answering my questions.
Speaker Change: Thanks, guys I appreciate it.
Operator: Thanks, Tony.
Speaker Change: Thank you.
Speaker Change: That concludes our Q&A session at this time I'd like to turn the call back to Mr. Chris <unk> CFO for closing remarks.
Operator: Thank you. And I assure you our next and last question comes from the line of Vincent Colicchio from Barrington Research. Please go ahead.
Vincent Alexander Colicchio: Yes, I'm curious. How would you characterize the sequential change in the CV business pipeline from last quarter?
Nate Swan: CV pipeline is growing. So, you know, we are putting a major focus on it.
Chris Finn: Yes, thanks to everybody for joining the call today it.
Nate Swan: Really, Vint, if I look at the sales organization, the big priorities for us are upscaling so that we can call in those more senior executives. Now that we're in the middle of that process, we are expecting people to make more calls to higher-level executives. So, therefore, we expect to generate more pipeline. You know, the sales game is a math game. You know, how much retention do you have?
Nate Swan: How much growth can you build to start going forward? And so we are very focused on driving more pipeline in the sales organization. The sales organization is responding really well. They're excited about it. They believe that they have an opportunity. And so we believe that the pipeline growth will continue, and we're measuring that on a weekly basis.
Chris Finn: Yeah, thanks everybody for joining the call today. It was nice talking to everyone. If you have any questions, please follow up with myself or Ed.
Nate Swan: And Nate, is the progress towards selling to more senior people meeting your expectations?
Chris Finn: It was always talking to everyone. If you have any questions. Please follow up with myself or Ed.
Nate Swan: Yeah, I think so. I think, you know, the sales organizations really leaned in. You know, we are moving from this enterprise access to Forrester decisions. They're excited about that. That's where our analyst community spends its time. That's where they want to be. You know, they've really embraced the methodology change that we've gone to. We're in the midst of that rollout right now. And so I think they're very excited because salespeople, you know, they want to be successful in their roles, and they know this is how they're going to be successful.
Nate Swan: And the methodology change is really focused on helping salespeople be more influential, have more insight into the client, and that is very relevant for calling high.
Carrie Johnson Fanlo: And was consulting weak across the board, or were there any pockets of strength, such as perhaps a generative AI project?
Carrie Johnson Fanlo: We did. Hi Vince, it's Carrie.
Operator: Thank you. This concludes today's conference call. Thank you for participating. You may now disconnect.
Carrie Johnson Fanlo: We did see interest in projects like generative AI. And, of course, during these times, clients also come to us to do some, you know, cost optimization type of work, just looking at their, say, you know, legacy IT portfolio as an example, right, things like that. You know, we do a mix; our consulting business is a mix of what I would call strategic consulting and then there's some demand generation work that we do, like our TEI. And as you can imagine, in the demand-gen spaces where we're heavily dependent on the tech, high-tech area, that's where we saw some weaknesses in some of those types of products.
Chris Finn: And Chris, any help on the cadence of revenue and earnings through the balance of the year? Q2 is usually a good, strong quarter, but I was just wondering if we should see any pattern different from seasonal trends we've seen in the past.
Speaker Change: Thank you. This concludes today's conference call. Thank you for participating you may now disconnect.
Chris Finn: Yeah, look, Vince, as we talked about from a revenue perspective, we do expect to continue to see declines this year from a top line perspective. But, I think on the research services line, I think you should start to see that abate, certainly as CV stabilizes and we get through the year. And we do expect that slight, you know, flat to slightly up by the end of the year, as you're in Q4, so you'll start to see that, you know, sort of that decline start to slow.
Chris Finn: I think on the consulting business side, I think we're going to remain challenged there for the rest of the year. And then on events, I'd say it's probably the same story as the research line should start to see those declines start to abate and get better and slower as we get through the end of the year. Okay, thanks.
Vincent Alexander Colicchio: Thanks for answering my questions.
Operator: Thank you. That concludes our Q&A session. At this time, I would like to turn the call back to Mr. Chris Finn, CFO, for closing remarks.
Speaker Change: Okay.
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Yes.
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