Q2 2024 Forrester Research Inc Earnings Call

Good afternoon and thank you for standing by. Welcome to Forrester's second 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.

Operator: 24 Conference Call. At this time, all participants are in the listen-only mode. After the speaker's presentation, there will be a question-and-answer session. Please be advised that today's conference has been recorded.

Operator: 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 Brice Morris.

Ed Bryce Mars: I would not like to turn the conference over to Vice President of Corporate Development and Investor Relations, Ed Bryce Mars. Please go ahead.

Speaker Change: I would now like to turn the conference over to Vice President of Corporate Development and Investor Relations, Ed Brice Morris. Please go ahead.

Ed Bryce Mars: Thank you and hello everyone. Thanks for joining today's goal. Earlier this afternoon, we issued our press release for the second quarter of 2024. If you need a copy, you can find one on our website in the Investors section.

Edward Morris: Thank you. And hello, everyone.

Edward Morris: Thanks for joining today's call. Earlier this afternoon, we issued our press release for the second 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: Thank you and hello everyone. Thanks for joining today's call. Earlier this afternoon we issued our press release for the second quarter of 2024. If you need a copy you can find one on our website in the investors section.

Ed Bryce Mars: 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.

Speaker Change: 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.

Ed Bryce Mars: Before we begin, I'd like to remind you that this call will contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as expects, believes, anticipates, intends, plans, estimates, or similar expressions are intended to identify these 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 the forward-looking statements. 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.

Edward 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 Litigation Reform Act of 1995. Phrases such as expects, believes, anticipates, intends, plans, estimates, or similar expressions are intended to identify these 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 the forward-looking statement.

Edward 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: Before we begin, I'd like to remind you that this call will contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.

Edward Morris: And with that, I'll hand it over to George.

Speaker Change: Words such as expects, believes, anticipates, intends, plans, estimates, or similar expressions are intended to identify these forward-looking statements.

Speaker Change: 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 the forward-looking statements.

Speaker Change: 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.

Ed Bryce Mars: Lastly, consistent with our previous calls, today we will be discussing our performance on an adjusted basis, which excludes items affecting comparability. While reporting on an adjusted 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.

Speaker Change: Lastly, consistent with our previous calls, today we will be discussing our performance on an unadjusted 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 our discussion. You can find a detailed list of items excluded from these adjusted results in our press release.

Ed Bryce Mars: You can find a detailed list of items excluded from these adjusted results in our press release, and with that, I'll hand it over to George.

George Colony: Thank you, Ed. I'd like to welcome everyone to Forrester's second quarter 2024 investor call. I will cover the following four themes before turning the call over to Chris Finn for our financial update. Number one, Forrester's Q2 financial performance; two Forrester decisions; and the enhancements we're making to the product. Three are second quarter events, and four changes in Forrester's management team and board. Turning first to second quarter performance, while total contract value or CV should a decrease of 3%, we beat our CV bookings plan in the quarter, representing growth of 5% year over year. These results were driven by improved renewal rates of Forrester Decisions, a greater than expected volume of cross-cell deals, and improving new business flow from both vendor and enterprise user clients.

George F. Colony: I'd like to welcome everyone to Forrester's second quarter 2024 investor call. I will cover the following four themes before turning the call over to Chris Finn for our financial update. Number one, Forrester's Q2 financial performance, and Forrester Decisions and the enhancements we're making to the product. Three, our second quarter events, and 4, Changes in Forrester's Management Team and Board. Turning first to our second quarter

Speaker Change: And with that, I'll hand it over to George.

George F. Colony: Thank you, Ed. I'd like to welcome everyone to Forrester's second quarter 2024 investor call.

George F. Colony: While total contract value, or CV, showed a decrease of 3%, we beat our CV bookings plan in the quarter, representing growth of 5% year over year. These results were driven by improved renewal rates for Forrester decisions, a greater-than-expected volume of cross-sell deals, and improving new business flow for both vendor and enterprise user-clients. As a result, wallet retention increased by 1.289%. However, despite positive movement in contract value bookings, Q2 revenue was down 10% year over year, primarily driven by underperformance in our events and consulting businesses.

George F. Colony: I will cover the following four themes before turning the call over to Chris Finn for our financial update.

George F. Colony: Number one, Forrester's Q2 financial performance.

George F. Colony: to Forrester Decisions and the enhancements we're making to the product.

George F. Colony: 3, our second quarter events, and 4, Changes in Forrester's management team and board.

Leo Christian Finn: Turning first to second quarter performance. While total contract value, or CV, showed a decrease of 3%, we beat our CV bookings plan in the quarter, representing growth of 5% year-over-year.

Leo Christian Finn: These results were driven by improved renewal rates of Forrester decisions, a greater than expected volume of cross-sell deals, and improving new business flow from both vendor and enterprise user clients.

George Colony: As a result, wallet retention increased by 1.289%. Despite positive movement in contract value bookings, Q2 revenue was down 10% year over year, primarily driven by underperformance in our events and consulting businesses. We continue to stay on track converting contract value over to Forrester Decisions. In Q2, 73% of our CV was in Forrester Decisions, up from 70% at the end of Q1. We remain on plan to hit our target of 80% of CV in Forrester Decisions by year end. As contracts convert, we are seeing an increase in the percentage of deals that are multi-year. 68% of FD contract value is now two or more years in length.

Leo Christian Finn: As a result, wallet retention increased by 1.289%.

Leo Christian Finn: Despite positive movement in contract value bookings, Q2 revenue was down 10% year-over-year, primarily driven by underperformance in our events and consulting businesses.

George F. Colony: We continue to stay on track converting contract value over to Forrester Decisions. In Q2, 73% of our revenue was in Forrester Decisions, up from 70% at the end of Q1. We remain on plan to hit our target of 80% of CV, enforcing your decisions, by year-end. As contracts convert, we are seeing an increase in the percentage of deals that are multi-year. 68% of the FD contract value is now two or more years in length.

Leo Christian Finn: We continue to stay on track converting contract value over to Forrester decisions.

Leo Christian Finn: In Q2, 73% of our CV was in Forrester Decisions, up from 70% at the end of Q1.

Leo Christian Finn: We remain on plan to hit our target of 80% of CV, enforce your decisions by year end.

Leo Christian Finn: As contracts convert, we are seeing an increase in the percentage of deals that are multi-year. 68% of FD contract value is now two or more years in length.

George Colony: These longer terms make sense for clients as their initiatives and transformation projects span a series of years. For Forrester, multi-year deals are beneficial as they renew at higher rates and give the company a more predictable flow of revenue. Our long-term goal is to move 80% of our FD research contracts to multi-year. We are becoming increasingly confident that our research CV business is stabilizing, and we expect to show a modest net contract value increase or NCVI by year end as we exit the Forrester Decisions transition.

George F. Colony: These longer terms make sense for clients as their initiatives and transformation projects span a series of years. For Forrester, multi-year deals are beneficial as they renew at higher rates and give the company a more predictable flow of revenue. Our long-term goal is to move 80% of our FD research contracts to multi-year.

Leo Christian Finn: These longer terms make sense for clients as their initiatives and transformation projects span a series of years.

Speaker Change: For Forrester, multi-year deals are beneficial as they renew at higher rates and give the company a more predictable flow of revenue.

Speaker Change: Our long-term goal is to move 80% of our FT research contracts to multi-year.

George F. Colony: We are becoming increasingly confident that our research CV business is stabilizing, and we expect to show a modest net contract value increase, or NCVI, by year-end as we exit the Forrester Decisions transition. I would now like to give you an update on our ongoing product enhancements. In Q2, we made our generative AI tool, IZOLA, available to all clients of Forrester Decisions. The Azolla prompt is now the third most common action taken by clients behind selecting a report and conducting a traditional indexed search.

Speaker Change: We are becoming increasingly confident that our research CV business is stabilizing and we expect to show a modest net contract value increase or NCVI by year-end as we exit the Forrester decisions transition.

George Colony: I would now like to give you an update on our ongoing product enhancements. In Q2, we made our generative AI tool Isola available to all clients of Forrester Decisions. The Isola prompt is now the third most common action taken by clients, behind selecting report and conducting a traditional indexed search. The percentage of questions that Isola answers from a single prompt reached 91% in Q2, up from 86% in Q1. And here are a few client quotes. And this first one is from a VP of Supply Chain. There's so much research and assets and goodness from Forrester.

Speaker Change: I would now like to give you an update on our ongoing product enhancements.

George F. Colony: The percentage of questions that IZOLA answers from a single prompt reached 91% in Q2, up from 86% in Q1. Here are a few client quotes. This first one is from a VP of supply chain. There's so much research and assets and goodness from Forrester. iZola helps me carve through all of that to find exactly what I want.

Speaker Change: In Q2, we made our generative AI tool, IZOLA, available to all clients of Forrester decisions.

Speaker Change: The Ezola prompt is now the third most common action taken by clients behind selecting a report and conducting a traditional indexed search.

Speaker Change: The percentage of questions that IZOLA answers from a single prompt reached 91% in Q2, up from 86% in Q1. And here are a few client quotes.

Speaker Change: And this first one is from a VP of Supply Chain.

George Colony: Isola helps be carved through all of that to find exactly what I want. And here's a quote from a VP of Customer Experience. Before Isola was launched, I spent hours trying to remember where I had found a nugget of information in your research. Instead of having to go back and thumb through research, I can now just type my question into Isola, and the right research will pop right up for me. We continue to enhance Isola, adding question and answer history logging two weeks after the full launch. I believe the Gen AI will make our research more accessible and useful for our clients.

Speaker Change: There's so much research and assets and goodness from Forrester. iZola helps me carve through all of that to find exactly what I want.

George F. Colony: And here's a quote from a VP of customer experience: Before Izola was launched, I spent hours trying to remember where I had found a nugget of information in your research. Instead of having to go back and thumb through research, I can now just type my question into iZola, and the right research will pop right up for me. We continue to enhance iZola, adding question and answer history logging two weeks after the full launch.

Speaker Change: And here's a quote from a VP of customer experience.

Speaker Change: Before IZOLA was launched, I spent hours trying to remember where I had found a nugget of information in your research.

Speaker Change: Instead of having to go back and thumb through research, I can now just type my question into Izola and the right research will pop right up for me.

Speaker Change: We continue to enhance iZola, adding question and answer history logging two weeks after the full launch.

George F. Colony: I believe that GenAI will make our research more accessible and useful for our clients. It is the most important change in our business since the web in 1991. Now the company is not only leading in the use of AI, but we are aggressively expanding our research coverage of the technology for our clients. In Q2, we published a comprehensive evaluation of large language models.

George Colony: It is the most important change in our business since the web in 1991. Now the company is not only leading in the use of AI, but we are aggressively expanding our research coverage of the technology for our clients. In Q2, we published a comprehensive evaluation of large language models. The AI Foundation Wave breaks down LLM offerings, strategy, and market presence across 21 criteria for 10 providers. This evaluation is the first of its kind from any major research firm. And it brings clients critical insight as they begin to build out their first Gen AI applications. Available for just two months, it is already in the top 15 most red for sure reports year to date.

Speaker Change: I believe that GenAI will make our research more accessible and useful for our clients. It is the most important change in our business since the web in 1991.

Speaker Change: Now, the company is not only leading in the use of AI, but we are aggressively expanding our research coverage of the technology for our clients.

George F. Colony: The AI Foundation Wave breaks down LLM offerings, strategy, and market presence across 21 criteria for 10 providers. This evaluation is the first of its kind from any major research firm, and it brings clients critical insight as they begin to build out their first Gen-AI application. Available for just two months, Forrester Waves, which evaluate over 1,000 vendor offerings per year, are a central pillar of the Forrester Decisions value proposition. Technology purchases constitute a significant long-term financial risk for large companies; the wave de-risks those decisions.

Speaker Change: In Q2, we published a comprehensive evaluation of large language models.

Speaker Change: The AI Foundation Wave breaks down LLM offerings, strategy, and market presence across 21 criteria for 10 providers.

Speaker Change: This evaluation is the first of its kind from any major research firm, and it brings clients critical insight as they begin to build out their first Gen-AI applications.

Speaker Change: Available for just two months, it is already in the top 15 most read Forrester reports year-to-date.

George Colony: Now, as investors know, for sure, waves which evaluate over a thousand vendor offerings per year are a central pillar of the for sure decisions value proposition. Technology purchases constitute significant long-term financial risk for large companies. The wave de-risks those decisions. In Q2, the wave was enhanced for the new interactive tool, enabling our clients to clearly see each wave's evaluation criteria, scale explanations, and scores. Lions can customize wave findings based on their company priorities to easily compare vendors and create short lists based on their specific requirements. This new tool is driving platform use and bringing out a value to our clients who rely and force their waves for an assessment of the market.

Speaker Change: Now, as investors know, Forrester Waves, which evaluate over a thousand vendor offerings per year, are a central pillar of the Forrester Decisions value proposition.

Speaker Change: Technology purchases constitute significant long-term financial risk for large companies. The wave de-risks those decisions.

George F. Colony: In Q2, the WAVE was enhanced with a new interactive tool, enabling our clients to clearly see each WAVE's evaluation criteria, scale explanations, and scores. Additionally, clients can customize WAVE findings based on their company priorities to easily compare vendors and create shortlists based on their specific requirements. This new tool is driving platform use and bringing added value to our clients who rely on Forrester Waves for an assessment of the market. Reprints are an important ancillary business to research, and we have built a new platform to administer and distribute this product. Our newly launched Reprints Hub will allow clients to easily manage their licenses within the core digital Forrester.com platform.

Speaker Change: In Q2, the WAVE was enhanced with a new interactive tool, enabling our clients to clearly see each WAVE's evaluation criteria, scale explanations, and scores.

Speaker Change: Clients can customize WAVE findings based on their company priorities to easily compare vendors and create shortlists based on their specific requirements. This new tool is driving platform use and bringing added value to our clients who rely on Forrester WAVES for an assessment of the market.

George Colony: Reprints are an important and sincere business to research, and we have built a new platform to administer and distribute this product. Our newly launched Reprints Hub will allow clients to easily manage their licenses within the core digital Forrester.com platform. Switching to our new in-house platform brings us operational efficiencies and cost savings, and it has enabled the creation of a new product, flexible Reprints, which launched at the end of the second quarter. The continuous improvement of our contract value product is having an impact. Twice a year, we administer a client satisfaction survey, and in Q2, the results of that survey ticked up by three points, a significant swing.

Speaker Change: Reprints are an important ancillary business to research, and we have built a new platform to administer and distribute this product.

Speaker Change: Our newly launched Reprints Hub will allow clients to easily manage their licenses within the core digital Forrester.com platform.

George F. Colony: Switching to our new in-house platform brings us operational efficiencies and cost savings, and it has enabled the creation of a new product, Flexible Reprints, which launched at the end of the second quarter. The continuous improvement of our contract value products is also having an impact. Twice a year, we administer a client satisfaction survey, and in Q2, the results of that survey ticked up by three points, a significant swing. Improved products and increased customer satisfaction set the stage for higher renewal, enrichment, and new business rates, which will result in strong contract value growth.

Speaker Change: Switching to our new in-house platform brings us operational efficiencies and cost savings, and it has enabled the creation of a new product, Flexible Reprints, which launched at the end of the second quarter.

Speaker Change: The continuous improvement of our contract value products is having an impact.

Speaker Change: Twice a year, we administer a client satisfaction survey, and in Q2, the results of that survey ticked up by three points, a significant swing.

George Colony: Improved products and increased customer satisfaction set the stage for a higher renewal, enrichment, and new business rates, which will result in strong contract value growth.

Speaker Change: Improved products and increased customer satisfaction set the stage for higher renewal, enrichment, and new business rates, which will result in strong contract value growth.

George Colony: In Q2, we held our two largest events, BDB Summit in Austin and CX Summit in Nashville. Both events scored at high levels for content, value, and experience. Valuable case studies are presented from a number of companies including Prudential, NetBank, and the IHH Healthcare Singapore. While our content and value delivery excelled, we did not meet our sponsorship targets for either event, and this will have an impact on our full-year revenue.

George F. Colony: In Q2, we held our two largest events, B2B Summit in Austin and CX Summit in Nashville. Both were scored at high levels for content, value, and experience. Valuable case studies were presented from a number of companies, including Prudential, NetBank, and IHH Healthcare Singapore. While our content and value delivery excelled, we did not meet our sponsorship targets for either event, and this will have an impact on our full-year revenue.

Speaker Change: In Q2, we held our two largest events, B2B Summit in Austin and CX Summit in Nashville.

Speaker Change: Both events scored at high levels for content, value, and experience.

Speaker Change: Valuable case studies were presented from a number of companies including Prudential, NetBank, and IHH Healthcare Singapore.

Speaker Change: While our content and value delivery excelled, we did not meet our sponsorship targets for either event, and this will have an impact on our full year revenue.

George Colony: Elected in my remarks with some recent additions to the Board and the leadership team. At our board meeting last week, I introduced two new members, Corey Munchback and Bob Bennett. Corey is the CEO of the customer data platform, BlueConnac. She is a former four-star analyst who covered business and consumer tech trends and the MarTech landscape. Directoratees will help us in the BDB marketing space. Bob Bennett is a serial entrepreneur and inventor. Most recently, the CEO of Payments Company engaged Smart, which Bob founded and took public. Bob has been a relentless driver of annual recurring revenue in the software space and valuable to us as we look to drive CV growth.

George F. Colony: I'd like to end my remarks with some recent additions to the board and the leadership team. At our board meeting last week, I introduced two new members, Corey Munchback and Bob Bennett. Corey is the CEO of the customer data platform Blueconic. She is a former Forrester analyst who covered business and consumer tech trends and the MarTech landscape. Her expertise will help us in the B2B marketing space. Bob Bennett is a serial entrepreneur and inventor, most recently the CEO of payments company EngageSmart, which Bennett founded and took public.

George F. Colony: Bob has been a relentless driver of annual recurring revenue in the software space and is valuable to us as we look to drive CV growth. Both Corey and Bob will be excellent representatives or shareholders. Turning to the management team, we announce the appointment of Jovina Gonzalves as our new Chief People Officer in Q2. Giubina has more than 20 years of global HR experience across Asia, Europe, and North America. She is a great addition, and now I'd like to turn the call over to Chris for a full update on our financial performance. Chris.

Speaker Change: I'd like to end my remarks with some recent additions to the board and the leadership team.

Speaker Change: At our board meeting last week, I introduced two new members, Corey Munchback and Bob Bennett.

Speaker Change: Corey is the CEO of the customer data platform Blueconic.

Speaker Change: She is a former Forrester analyst who covered business and consumer tech trends and the MarTech landscape. Her expertise will help us in the B2B marketing space.

Speaker Change: Bob Bennett is a serial entrepreneur and inventor, most recently the CEO of payments company EngageSmart, which Bob founded and took public.

Speaker Change: Bob has been a relentless driver of annual recurring revenue in the software space and valuable to us as we look to drive CV growth.

George Colony: Both Corey and Bob will be excellent representatives for shareholders.

George Colony: Turning to the management team, we announce the appointment of Jubina Gonzalez as our new Chief People Officer in Q2. Jubina has more than 20 years of global HR experience across Asia, Europe, and North America. She is a great addition.

Speaker Change: Both Corey and Bob will be excellent representatives for shareholders.

Speaker Change: Turning to the management team, we announced the appointment of Jovina Gonsalves as our new Chief People Officer in Q2. Jovina has more than 20 years of global HR experience across Asia, Europe , and North America. She is a great addition.

Chris Finn: And I would like to turn the call over to Chris for a full update on our financial performance. Chris. Thanks, George, and good afternoon, everyone. We saw positive signs in our CV business in the second quarter as CV bookings exceeded our plan, revenue performed in line with expectations, and retention metrics improved modestly from Q1.

Leo Christian Finn: Thanks George, and good afternoon everyone. We saw positive signs in our CV business in the second quarter as CV bookings exceeded our plan, revenue performed in line with expectations, and retention metrics improved modestly from Q1. However, the non-CV portion of the business continues to be challenged. Our events business underperformed in what is our largest events quarter, and the headwinds we have seen in consulting continue. Although we believe these headwinds are transitory in nature, the challenges of our non-CV businesses have led us to lower our financial guidance for the year.

Speaker Change: And now I'd like to turn the call over to Chris for a full update on our financial performance. Chris.

Leo Christian Finn: Thanks, George, and good afternoon, everyone.

Leo Christian Finn: We saw positive signs in our CV business in the second quarter as CV bookings exceeded our plan, revenue performed in line with expectations, and retention metrics improved modestly from Q1.

Chris Finn: However, the non-CV portion of the business continues to be challenged. Our events business underperformed in what is our largest events quarter, and the headwinds we have seen in consulting continue.

Leo Christian Finn: However, the non-CV portion of the business continues to be challenged. Our events business underperformed in what is our largest events quarter, and the headwinds we have seen in consulting continue.

Chris Finn: Although we believe these headwinds are transitory in nature, the challenges of our non-CV businesses have led us to lower our financial guidance for the year. Despite the results, we are encouraged by the continuation of positive trends in our CV business from Q1 into Q2, including reaching 73% of CV in farce of decisions, in ever growing contribution to multi-year deals and the ongoing improvements in our retention metrics. Our continued go-to-market work involving sales, marketing, and customer success is starting to pay dividends from a pipeline, new business, and renewal perspective. This gives us renewed confidence in our ability to deliver flat to slowly positive CV performance by year end.

Leo Christian Finn: Although we believe these headwinds are transitory in nature, the challenges of our non-CV businesses have led us to lower our financial guidance for the year.

Leo Christian Finn: Despite the mixed results, we are encouraged by the continuation of positive trends in our CV business from Q1 into Q2, including reaching 73% of CVs in Forrester decisions, an ever-growing contribution to multi-year deals, and the ongoing improvements in our retention metrics. Our continued go-to-market work involving sales, marketing, and customer success is starting to pay dividends from a pipeline, new business, and renewal perspective. This gives us renewed confidence in our ability to deliver flat to slightly positive CV performance by year-end.

Leo Christian Finn: Despite the mixed results, we are encouraged by the continuation of positive trends in our CV business from Q1 into Q2, including reaching 73% of CV in Forrester decisions, an ever-growing contribution in multi-year deals, and the ongoing improvements in our retention metrics.

Leo Christian Finn: Our continued go-to-market work involving sales, marketing, and customer success is starting to pay dividends from a pipeline, new business, and renewal perspective. This gives us renewed confidence in our ability to deliver flat to slightly positive CV performance by year-end.

Chris Finn: CV declined 3% in Q2, a slight improvement from the 4% to client in Q1. An overall revenue decreased 10%. For the total company, we generated $121.8 million in revenue compared to $135.6 million in the prior year period. In terms of our revenue breakdown for the quarter, research revenues decreased 5% compared to the second quarter of 2023, with revenue from our subscription research products down 1%, coupled with declines in our reprint and our other smaller and discontinued products. Overall, client retention of 73%, and while retention of 89% improves lately compared to Q1, while farce of decision-specific client retention of 81% was down slightly, and while retention of 90% improved versus the first quarter.

Leo Christian Finn: CV declined 3% in Q2, a slight improvement from the 4% decline in Q1, and overall revenue decreased 10%. For the total company, we generated $121.8 million in revenue, compared to $135.6 million in the prior year period. In terms of our revenue breakdown for the quarter, research revenues decreased 5% compared to the second quarter of 2023, with revenue from our subscription research products down 1%, coupled with declines in our reprint and our other smaller and discontinued products.

Leo Christian Finn: CV declined 3% in Q2, a slight improvement from the 4% decline in Q1, and overall revenue decreased 10%. For the total company, we generated $121.8 million in revenue, compared to $135.6 million in the prior year period.

Leo Christian Finn: In terms of our revenue breakdown for the quarter, research revenues decreased 5% compared to the second quarter of 2023 with revenue from our subscription research products down 1% coupled with declines in our reprint and our other smaller and discontinued products.

Leo Christian Finn: Overall client retention of 73% and wallet retention of 89% improved slightly compared to Q1, while Forrester Decisions specific client retention of 81% was down slightly and wallet retention of 90% improved versus the first quarter. As we complete the Forrester Decisions migration in 2024, we expect retention metrics to slowly improve throughout the year. Although the 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 8 points.

Leo Christian Finn: Overall Client Retention of 73% and Wall Retention of 89% improved slightly compared to Q1, while Forrester Decision Specific Client Retention of 81% was down slightly and Wall Retention of 90% improved versus the first quarter.

Chris Finn: As we complete the Farce to Decisions migration in 2024, we expect retention metrics to slowly improve throughout the year. Although overall client count is down from the prior quarter, Farce to Decisions client count continues to grow and Farce to Decisions client retention remains well above overall client retention by approximately 8 points. It should also be noted that even though client count is down, CV per client continues to grow, and with a cross-selling upsell opportunities inherent with the farce to decisions platform, we believe CV per client will continue to grow meaningfully into the future. We remain on track for our farce to decisions migration plan, and we now have approximately $237 million of CV, or 70% of total CV, on the platform.

Leo Christian Finn: As we complete the Forrester Decisions migration in 2024, we expect retention metrics to slowly improve throughout the year.

Leo Christian Finn: 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 8 points.

Leo Christian Finn: It should also be noted that even though client count is down, CV per client continues to grow, and with the cross-sell and up-sell opportunities inherent in the Forrester Decisions platform, we believe CV per client will continue to grow meaningfully into the future. We remain on track for our Forrester Decisions migration plan, and we now have approximately $237 million in CV, or 73% of total CV, on the platform. We are targeting approximately 80% of total CV on Forrester Decisions at year-end.

Leo Christian Finn: It should also be noted that even though client count is down, CV per client continues to grow, and with the cross-sell and up-sell opportunities inherent with the Forrester Decisions platform, we believe CV per client will continue to grow meaningfully into the future.

Leo Christian Finn: We remain on track for our Forestry Decisions Migration Plan, and we now have approximately $237 million of CV, or 73% of total CV, on the platform.

Chris Finn: We are targeting approximately 80% of total CV on farce to decisions at year end. The remaining 20% will be in the non-farce to decisions products like reprints and our feedback now business, as well as less than 5% in the legacy research products.

Leo Christian Finn: The remaining 20% will be in the non-Forrester Decisions products like reprints and our Feedback Now business, as well as less than 5% in the Legacy Research product. Our consulting business posted revenues of $24.8 million, which was down 17% compared to the prior year. Both the consulting and advisory product lines had a challenging quarter. Macro headwinds impacting our consulting business will continue throughout 2024. These headwinds are causing our clients to put off buying decisions and limit their discretionary spending on consulting.

Leo Christian Finn: We are targeting approximately 80% of total CV on Forrester Decisions at year-end. The remaining 20% will be in the non-Forrester Decisions products, like reprints and our Feedback Now business, as well as less than 5% in the Legacy Research products.

Chris Finn: Our consulting business posted revenues of $24.8 million, which was down 17% compared to the prior year. Both the consulting advisory product lines had a challenging quarter. macro headwinds impacting our consulting business will continue throughout 2024. These headwinds are causing our clients to put off buying decisions and limit their discretionary spending on consulting.

Leo Christian Finn: Our consulting business posted revenues of $24.8 million, which was down 17% compared to the prior year.

Leo Christian Finn: Both the consulting and advisory product lines had a challenging quarter. Macro headwinds impacting our consulting business will continue throughout 2024. These headwinds are causing our clients to put off buying decisions and limit their discretionary spending on consulting.

Chris Finn: And finally, regarding our events business, we held four events to the second quarter and posted revenues of $13.4 million, representing a decrease of 25% compared to the second quarter of 2023. The events' challenges were primarily driven by sponsorship declines and, to a lesser extent, lowered ticket sales.

Leo Christian Finn: And finally, regarding our events business, we held four events in the second quarter and posted revenues of $13.4 million, representing a decrease of 25% compared to the second quarter of 2023. The events challenges were primarily driven by sponsorship declines and, to a lesser extent, lower ticket sales.

Leo Christian Finn: And finally, regarding our events business, we held four events in the second quarter and posted revenues of $13.4 million, representing a decrease of 25% compared to the second quarter of 2023. The events challenges were primarily driven by sponsorship declines and, to a lesser extent, lower ticket sales.

Chris Finn: We saw conditions worsen events from our prior outlook and were being cautious with our revised outlook for both consulting and events for the remainder of the year. This is the cause of the adjustment to our guidance this quarter. Continuing down our panel on an adjusted basis, operating expenses for the first quarter decreased by 5% primarily driven by lower compensation and related costs. Specifically on headcount, for the second quarter, we were down 8% compared to the same period in 2023. We continue to monitor headcount hiring and attrition very closely.

Leo Christian Finn: We saw conditions worsen in events from our prior outlook, and we are being cautious with our revised outlook for both consulting and events for the remainder of the year. This is the cause of the adjustment to our guidance this quarter. Continuing down our P&L on an adjusted basis, operating expenses for the first quarter decreased by 5%, primarily driven by lower compensation and related costs. Specifically, on headcount, for the second quarter, we were down 8% compared to the same period in 2023. We continue to monitor headcount, hiring, and attrition very closely.

Leo Christian Finn: We saw conditions worsen in events from our prior outlook, and we are being cautious with our revised outlook for both consulting and events for the remainder of the year. This is the cause of the adjustment to our guidance this quarter.

Leo Christian Finn: Continuing down our P&L on an adjusted basis, operating expenses for the first quarter decreased by 5%, primarily driven by lower compensation and related costs. Specifically on headcount, for the second quarter we were down 8% compared to the same period in 2023. We continue to monitor headcount, hiring, and attrition very closely.

Chris Finn: Operating income decreased by 30% to $17.9 million, or 14.7% of revenue, in the current quarter compared to $25.7 million, or 19% of revenue, in the second quarter of 2023. Lower operating income in margin were primarily driven by the revenue declines in our consulting and events businesses. Interest expense for the quarter was $0.8 million, up slightly versus the second quarter of 2023.

Leo Christian Finn: Operating income decreased by 30% to $17.9 million, or 14.7% of revenue in the current quarter, compared to $25.7 million, or 19% of revenue in the second quarter of 2023. Lower operating income and margin were primarily driven by revenue declines in our consulting and events businesses. Interest expense for the quarter was $0.8 million, up slightly versus the second quarter of 2023. Finally, net income and earnings per share decreased 29% and 28%, respectively, compared to Q2 of last year, with net income at $12.9 million and earnings per share at $0.68 for the current quarter, compared with net income of $18.1 million and earnings per share of $0.94 in the second quarter of 2023.

Leo Christian Finn: Operating income decreased by 30% to $17.9 million or 14.7% of revenue in the current quarter compared to $25.7 million or 19% of revenue in the second quarter of 2023.

Leo Christian Finn: Lower operating income and margin were primarily driven by the revenue declines in our consulting and events businesses.

Chris Finn: Finally, net income in earnings per share decreased 29% and 28%, respectively, compared to Q2 of last year, with net income at $12.9 million in earnings per share at $68 for the current quarter, compared with net income of $18.1 million in earnings per share of $94 in the second quarter of 2023.

Leo Christian Finn: Interest expense for the quarter was $0.8 million, up slightly versus the second quarter of 2023.

Leo Christian Finn: Finally, Net Income and Earnings Per Share decreased 29% and 28% respectively compared to Q2 of last year, with Net Income at $12.9 million and Earnings Per Share at 68 cents for the current quarter.

Leo Christian Finn: compared with net income of $18.1 million and earnings per share of 94 cents in the second quarter of 2023.

Chris Finn: Looking at our capital structure during the first half of 2024, cash flow from operating activities was negative $2.3 million, and capital expenditures were $2.3 million. Cash flows were negatively impacted by the payment of the litigation settlement last quarter, as well as severance payments under our restructuring plans. We had $110.8 million of cash investments as we exited the quarter. We repurchased approximately $3.9 million with the shares in the quarter; this leaves approximately $88 million of our stock repurchased authorization intact.

Leo Christian Finn: Looking at our capital structure, during the first half of 2024, cash flow from operating activities was negative $2.3 million, and capital expenditures were $2.3 million. Cash flows were negatively impacted by the payment of the litigation settlement last quarter as well as severance payments under our restructuring plan.

Leo Christian Finn: Looking at our capital structure, during the first half of 2024, cash flow from operating activities was negative $2.3 million, and capital expenditures were $2.3 million.

Leo Christian Finn: Cash flows were negatively impacted by the payment of the litigation settlement last quarter, as well as severance payments under our restructuring plans. We had $110.8 million of cash in investments as we exited the quarter.

Leo Christian Finn: We had $110.8 million of cash and investments as we exited the quarter. We repurchased approximately $3.9 million worth of shares in the quarter. This leaves approximately $88 million of our stock repurchase authorization intact.

Leo Christian Finn: We repurchased approximately $3.9 million worth of shares in the quarter. This leaves approximately $88 million of our stock repurchase authorization intact.

Chris Finn: As noted earlier, guidance for 2024 has been updated, so let me provide some additional commentary on the outlook for the year. Revenue is now expected to be in the range of $425 million to $435 million. This guidance assumes the outlook for the research business remains unchanged with a mid-single digit decline, a decline in our consulting business in the low 20s, and a decline in our events business in the high 20s for the year. Operating margins are now expected to be in the range of 8.5 to 9.5%. Interest expense is expected to be approximately $3 million for the year.

Leo Christian Finn: As noted earlier, guidance for 2024 has been updated, so let me provide some additional commentary on the outlook for the year. Revenue is now expected to be in the range of $425 million to $435 million. This guidance assumes the outlook for the research business remains unchanged with a mid-single-digit decline, a decline in our consulting business in the low 20s, and a decline in our events business in the high 20s for the year. Operating margins are now expected to be in the range of 8.5% to 9.5%. Interest expense is expected to be approximately $3 million for the year.

Leo Christian Finn: As noted earlier, guidance for 2024 has been updated, so let me provide some additional commentary on the outlook for the year.

Leo Christian Finn: Revenue is now expected to be in the range of $425 million to $435 million. This guidance assumes the outlook for the research business remains unchanged with a mid-single-digit decline, a decline in our consulting business in the low 20s, and a decline in our events business in the high 20s for the year.

Leo Christian Finn: Operating margins are now expected to be in the range of 8.5% to 9.5%. Interest expense is expected to be approximately $3 million for the year. We are continuing to guide to a full year tax rate of approximately 29%.

Chris Finn: We are continuing to guide to a full year tax rate of approximately 29%.

Leo Christian Finn: We are continuing to guide to a full-year tax rate of approximately 29%. Taking all of this into account, we are now expecting earnings per share in the range of $1.37 to $1.57, down from our previous guidance of $1.50 to $1.70. As expected, 2024 is proving to be a challenging year as we finish the Forrester Decisions migration amid an uneven macroeconomic backdrop. However, we're starting to see some positive signals as we progress through the first half of 2024, specifically within our core research business.

Chris Finn: Taking all of this into account, we are now expecting earnings per share in the range of $1.37 to $1.57, down from our previous guidance of $1.50 to $1.70. As expected, 2024 is proving to be a challenging year as we finish the farest of issues in migration amid an uneven macroeconomic backdrop. We are starting to see some positive signals as we progress to the first half of 2024, specifically within our core research business. The ongoing improvements to the farest of the season product, the importance of generative AI disruption, and the good of market enhancements are sitting at the stage for growth in 2025.

Leo Christian Finn: Taking all of this into account, we are now expecting earnings per share in the range of $1.37 to $1.57, down from our previous guidance of $1.50 to $1.70.

Leo Christian Finn: As expected, 2024 is proving to be a challenging year as we finish the Forrester District's migration amid an uneven macroeconomic backdrop.

Leo Christian Finn: We're starting to see some positive signals as we progress through the first half of 2024, specifically within our core research business.

Leo Christian Finn: The ongoing improvements to the Forrester Decisions product, the importance of generative AI disruption, and the go-to-market enhancements are setting the stage for growth in 2025. We believe in our product strategy, the value of consulting and events to drive retention and new business, our ability to guide clients through technological change, and the long-term trends supporting the business. Thank you all for taking the time today, and with that, I will hand the call back to George. Thank you, Chris.

Leo Christian Finn: The ongoing improvements to the Forrester Decision product, the importance of generative AI disruption, and the go-to-market enhancements are setting the stage for growth in 2025. We believe in our product strategy, the value of consulting and events to drive retention and new business, our ability to guide clients through technology change, and the long-term trends supporting the business.

Chris Finn: We believe in our product strategy, the value of consulting events to drive retention and new business, our ability to guide clients through technology change, and the long-term trend supporting the business.

George Colony: Thank you all for taking the time today, and with that, I will hand the call back to George. Thank you, Chris.

Leo Christian Finn: Thank you all for taking the time today. And with that, I will hand the call back to George.

George F. Colony: Before we go to Q&A, I'd like to reiterate the main themes. Number one, our CV business is stabilizing. Number two, the Forrester Decisions transition is on track, and we expect it to be complete by year end. There were a number of product innovations led by Azolla. 4. A Vets in Q2 scored well in content but fell short in sponsorship. And five, two excellent new members have joined the Forrester board. Thank you for listening, and I will now hand the call over to the operator for Q&A.

George Colony: Before we go to Q&A, I'd like to reiterate the main themes. Number one, our CV business is stabilizing. Number two, the Forshore Decisions Transition is on track, and we expect it to be complete by year-end. Three, there were a number of product innovations led by Isola. Four, the Vets, and Q2 scored well in content, but fell short in sponsorships. And five, two excellent new members have joined the Forrester board.

George F. Colony: Thank you, Chris.

George F. Colony: Before we go to Q&A, I'd like to reiterate the main themes. Number one, our CV business is stabilizing.

George F. Colony: Number two, the Forrester Decisions transition is on track and we expect it to be complete by year-end.

George F. Colony: 3. There were a number of product innovations led by Azolla.

George F. Colony: 4. A Vincent Q2 scored well in content, but fell short in sponsorships.

George F. Colony: and five, two excellent new members have joined the Forrester board.

Operator: Thank you for listening, and I will now hand the call over to the operator for Q&A.

George F. Colony: Thank you for listening, and I will now hand the call over to the operator for Q&A.

Operator: Thank you, sir.

Operator: As a reminder, to ask a question, you would need to press star 1-1 on your telephone. To enjoy your question, please press star 1-1 again. Please stand by while we compile the Q&A roster.

Operator: As a reminder, to ask a question, you would need to press star one one on your telephone. To rejoin your question, please press star 1 1 again. Please stand by while we compile the Q&A roster. And I will show our first question comes from the line of Anja Soderstrom from Sidoti. Please go ahead.

Speaker Change: Thank you, sir.

Speaker Change: As a reminder, to ask a question, you will need to press star 1-1 on your telephone.

Speaker Change: To rejoin your question, please press star 1 1 again.

Speaker Change: Please stand by while we compile the Q&A roster.

Anja Söderström: And I show our first question, comes from the line of Anja Soderstrom from Siddori. Please go ahead.

Speaker Change: And I show our first question comes from the line of Anja Soderstrom from Sidoti. Please go ahead.

Anja Söderström: Hi, thank you for taking my question. You have a lot of internal transitions going on this year. So how dependent are you on the macro environment to improve to show some revenue growth interest from 25?

Anja Marie Theresa Soderstrom: Hi, and thank you for taking my questions. You have a lot of internal transitions going on this year. So, how dependent are you on the macro environment to improve to show some revenue growth in 2025?

Anja Marie Theresa Soderstrom: Hi, and thank you for taking my questions.

Anja Marie Theresa Soderstrom: You have a lot of internal transitions going on this year, so how dependent are you on the macro environment to improve, to show some revenue growth in 2025?

George Colony: Your question was, are we looking for macro to change? Yeah, I had a kind of value for that to change, given you transitioning and expansion you have with existing clients. This is where you have a lot of internal things going on that could help you in 2025. So how dependent are you on also the macro environment improving? I think somewhat, I mean, this is if we going through a transition like this, Anja has been so difficult, but doing it in the second I've made it much more challenging. That being said, I think there are glimmers around the edges.

Anja Marie Theresa Soderstrom: Your question was, are we looking for macro to change?

Anja Marie Theresa Soderstrom: Yeah, how dependent are you on that to change, given the transitioning and expansion you have with existing clients? Since you have a lot of internal things going on that could help you in 2025, how dependent are you on macro-environment improvements?

Speaker Change: Your question was, are we looking for macro to change?

Speaker Change: Yeah, I had a pen and diary for that to change, given you transitioning and...

Speaker Change: expansion you have with existing clients, since they have a lot of internal things going on that could help you in 2025. So how dependent are you on also the macro environment improving?

George F. Colony: I think, somewhat, I mean, going through a transition like this, Anja, has been, it's always difficult, but doing it in this economic environment has made it much more challenging. That being said, I think there are glimmers around the edges.

Speaker Change: I think somewhat. I mean, going through a transition like this, Anja, it's always difficult, but doing it in this economic environment has made it much more challenging. That being said, I think there are glimmers around the edges.

George F. Colony: I know at our board meeting, there was talk about the U.S. looking better, Europe looking maybe a little bit worse, but I think we're going to see some rate cuts here in the second half of the year. I know Chris has stronger views than I do on this, but some rate cuts in the second half of the year and early in 2025.

George Colony: I don't want to board. Being there was talk about US looking better; you're looking maybe a little bit worse. But I think we're going to see some rate cuts here in the second half of the year, and Chris has strong reviews, and I do on this. But some rate cuts in the second half of the year and early in 2025. That's going to help the general economy; it's going to help us.

Speaker Change: I know on our board meeting, there was talk about the U.S. looking better, Europe looking maybe a little bit worse.

Leo Christian Finn: But I think we're going to see some rate cuts here in the second half of the year and Chris has stronger views than I do on those.

George F. Colony: I think that's going to help the general economy. It's going to help us. Yeah, I agree with that, George.

Leo Christian Finn: But some rate cuts in the second half of the year and early in

Leo Christian Finn: I would think, in general, though, looking at the selling environment, I don't think it's really changed significantly. I think it's still tough out there, but to your point, we're making a lot of, you know, addressing a lot of issues on our end, and the work that the go-to-market team and Nate and the sales organization have done, I think, is helping tremendously. We're starting to see some of that positive result and positive results, you know, from a CV perspective, but it's early yet, and so, but, you know, nothing that we're doing right now from a forecast perspective is relying on anything changing in the macroenvironment. I mean, this is just continuing to delve into the issues and try to find growth where we can. And the tech economy, Anja, is still recovering. No doubt about that, even for the large vendors.

Chris Finn: Yeah, I agree with that, George. I would think in general, though, what doing the selling environment, I don't think it's really changed significantly. I think it's still tough out there. But to your point, we're making a lot of, you know, addressing a lot of issues on our end and the work that we're going to market team and Nate. And the sales organization is made. I think we're helping tremendously. We're starting to see some of that positive results and positive results on, you know, from a CV perspective. But it's early yet. And so, but, you know, nothing that we're doing right now from a forecast perspective is relying on anything changing the macro environment.

Leo Christian Finn: in 2025. And I think that's going to help the general economy, it's going to help us. Yeah, I agree with that, George. I would think in general, though, look, the selling environment, I don't think it's really changed significantly. I think it's still tough out there. But to your point, we're making a lot of...

Nate Swan: You know, addressing a lot of issues on our end and the work that the Go-To-Market team and Nate and the sales organization has made, I think are helping tremendously. We're starting to see some of that positive.

Nate Swan: results and positive results from a CV perspective, but it's early yet and so but you know nothing that we're doing right now from a forecast perspective is relying on anything changing the macro environment. I mean this is just

George Colony: I mean, this is just continuing to delve into the issues and try to find growth where we can. And the tech, tech economy on you is still recovering. No, no doubt about that. Even the large, the large vent from the large vendors. Yeah.

Nate Swan: continuing to delve into the issues and try to find growth where we can.

Anja Marie Theresa Soderstrom: And the tech economy, Anja, is still recovering, no doubt about that, even from the large vendors.

Anja Marie Theresa Soderstrom: Yeah, and how's the government, Claire, is coming along?

Nate Swan: And how is the government clear as coming to along? We feel very high on you, Nate. We feel very confident in our plan with the government. We're seeing not just US, but around the world we have opportunity to earn that business. It's obviously a big quarter in the US for the federal government in Q3. Feel like we're well positioned and, you know, are expecting big things from that team this quarter. So really excited and excited about what we're seeing across government around. We're here from government teams, Anja, that they want an alternative in the research space, and so we've been engaging on that. Okay, that's exciting.

Anja: Yeah, and how's the government clearance coming along?

Nate Swan: We feel very, hi Anja, it's Nate, and we feel very confident in our plan with the government. We're seeing not just the U.S., but around the world, we have an opportunity to earn that business. It's obviously a big quarter in the U.S. for the federal government in Q3. Feel like we're well positioned and are expecting big things from that team this quarter, so really excited and excited about what we're seeing across government around the world.

Anja: We feel very, hi Anja, it's Nate, and we feel very confident in our plan with the government. We're seeing not just U.S. but around the world we have opportunity to earn that business.

Speaker Change: It's obviously a big quarter in the U.S. for the federal government in Q3. I feel like we're well-positioned and are expecting big things from that team this quarter.

Nate Swan: We're hearing from government teams, Anja, that they want an alternative in the research space, and so we've been engaging on that.

Speaker Change: So really excited and excited about what we're seeing across government around the world.

Anja Marie Theresa Soderstrom: We're hearing from government teams, Anja, that they want an alternative in the research space, and so we've been engaging on that.

Anja Marie Theresa Soderstrom: Okay, sounds exciting. And then in terms of the events business, it seems like that was a bit of a surprise, maybe, on the sponsorship side. What are you hearing there, and what do you think the reason is for that, and what kind of... initiatives are we taking for next year to improve that?

Carrie Johnson: And then in terms of their events business, it seems like that was a bit of a surprise; maybe most of the sponsorships are what, what are you hearing there and what do you think the reason is for that, and what kind of initiatives are you taking for next year to improve that.

Anja: Okay, sounds exciting. And then in terms of the events business, it seems like that was...

Anja: A bit of a surprise, maybe, on the Muslim Sponsorship side.

Anja: What are you hearing there, and what do you think the reason is for that, and what kind of...

Carrie Johnson Fanlo: I'll take that. Hi Anja, it's Carrie.

Speaker Change: Initiatives we are taking for next year to improve that.

Carrie Johnson: I'll take that hi on. That's Carrie. The sponsorship business, as you can imagine, is 100% tied to the high tech industry. And as we saw, companies look to get more value out of, obviously, what we talked about as it already about a very good event.

Speaker Change: I'll take that. Hi, Anja. It's Carrie.

Speaker Change: The sponsorship business, as you can imagine, is 100% tied to the high-tech industry.

Carrie Johnson Fanlo: The sponsorship business, as you can imagine, is 100% tied to the high-tech industry. And as we saw, companies look to get more value out of, obviously, what we talked about already, a very good event. I think we struggled a bit to react to a more challenging sales environment there, more of a solution sell at that event, similar to what we've seen in the sort of core Forrester business. We do have new leadership in our event sales sponsorship business.

Speaker Change: And as we saw, companies look to get more value out of, obviously, what we talked about already at a very good event. I think we struggled a bit to react to a more challenging sales environment there. More of a solution sell on that event, similar to what we've seen in the sort of core Forrester business. We do have new leadership.

Carrie Johnson: I think we struggled a bit to react to a more challenging sales environment; there more of a solution sell on that event, similar to what we've seen in the sort of core Forrester business. We do have new leadership in our event sell sponsorship business that has this leader has an outstanding track record of elevating the skills needed of a sponsorship team. So we're confident that we can adjust to the changing market, and the new leadership will help us get there, especially based off the strength of the events that experience that we're offering.

Carrie Johnson Fanlo: This leader has an outstanding track record of elevating the skills needed by a sponsorship team. So we're confident that we can adjust to the changing market and the new leadership will help us get there, especially based on the strength of the events experience that we're offering.

Speaker Change: in our event sales sponsorship business.

Speaker Change: that has, this leader has an outstanding track record of elevating the skills needed of a sponsorship team. So we're confident that we can adjust to the changing market and the new leadership will help us get there, especially based off the strength of the events experience that we're offering.

Anja Söderström: Okay, thank you.

Anja Marie Theresa Soderstrom: Okay, thank you. That will solve it for me.

Anja Söderström: It was hope for me. Thank you.

Speaker Change: Okay, thank you. That was all for me.

Vincent Colicchio: And I show our next question comes from the line of Vincent Colligio from Barrington Research.

Operator: And I show our next question comes from the line of Vincent Colicchio from Barrington Research. Please go ahead.

Speaker Change: Thank you, Anja.

Anja Marie Theresa Soderstrom: Thank you.

Speaker Change: And I show our next question. It comes from the line of Vincent Colicchio from Barrington Research. Please go ahead.

Vincent Colicchio: Please go ahead. Yeah, Nate, I'd like an update on how you're feeling about the sales force. You know, there's been, there was a drop in the number of total number of sales people in the quarter, wondering if that's involuntary. And then just wondering if you feel like you've got a strong, balanced sales force where the strength there is more concentrated in a few members.

Vincent Alexander Colicchio: Yeah, Nate, I'd like an update on how you feel about the sales force. You know, there's been a drop in the total number of salespeople in the quarter. I'm wondering if that's involuntary or voluntary. And then just wondering if...

Vincent Alexander Colicchio: There's been a drop in the total number of salespeople in the quarter, wondering if that's involuntary.

Speaker Change: And then just wondering if you feel like you've got a...

Speaker Change: You know, a strong, balanced sales force where the strength there is more concentrated in a few members.

Nate Swan: Yeah Vince, a great question. Thanks very much.

Nate Swan: Yeah, Vince, great question. Thanks very much. Feel very good about the progress that we're making with the sales force. So we really focused in Q2. We had three specific messages that we were working on with the sales organization building pipeline. Number one, rolling out our retention process across the organization. So lots of great work across the forest or ecosystem, including customer success. The sales organization and the analyst community to make sure we were delivering for our clients and, you know, get an operational retention system in place and structured. And then finally, we've rolled out our forest or sales process to make sure that we're consistently working with more senior level executives and connecting with them on the issues and initiatives that were there working on all three of those.

Nate Swan: I feel very good about the progress that we're making with Salesforce. So we really focused on Q2. We had three specific messages that we were working on with the sales organization. Building pipeline, number one. Rolling out our retention process across the organization. So lots of great work across the Forrester ecosystem, including customer success, the sales organization, and the analyst community, to make sure we were delivering for our clients and you know get an operational retention system in place and structured.

Speaker Change: Yeah, Vince, great question. Thanks very much. I feel very good about the progress that we're making with the Salesforce. So we really focused in Q2. We had three specific messages that we were working on with the sales organization. Building pipeline, number one, rolling out our retention process across the organization. So lots of great work across the Forrester ecosystem, including customer success.

Speaker Change: the sales organization, and the analyst community to make sure we were delivering.

Nate Swan: And then finally, we've rolled out our Forrester sales process to make sure that we are consistently working with more senior-level executives and connecting with them on the issues and initiatives that they are working on. All three of those, it was a lot of work across the sales and sales operations, customer success, and really across Forrester are operating really well.

Speaker Change: for our clients and...

Speaker Change: get an operational retention system in place and structured.

Speaker Change: And then finally, we've rolled out our Forrester sales process.

Speaker Change: to make sure that we are consistently working with more senior-level executives and connecting with them on the issues and initiatives that they're working on. All three of those, it was a lot of work across the sales and sales operations, customer success, and really across Forrester.

Nate Swan: It was a lot of work across the sales and sales operations, customer success, and really across the forest. Are operating really well. Very pleased with the progress that we've made. Pipelines are improving. We saw a 30% improvement in quarter of our pipelines. We need to convert that to growth, but the first step is actually getting into the pipeline. So feel really good about that. The sales headcount is just normal attrition. We are stepping into our performance management. We hire really good people into the sales organization. We're trying to bring them back into the organization if they're not performing.

Nate Swan: Very pleased with the progress that we've made. Pipelines are improving. We saw a 30% improvement in a quarter of our pipelines. We need to convert that to growth, but the first step is actually getting it into the pipeline.

Speaker Change: are operating really well, very pleased with the progress that we've made.

Speaker Change: pipelines are improving. We saw a 30% improvement in quarter of our pipelines. We need to convert that to growth. But the first step is actually getting it into the pipeline. So feel really good about that.

Nate Swan: So we feel really good about that. The sales headcount is just normal attrition. We are stepping into our performance management. We hire really good people into the sales organization. We're trying to bring them back into the organization if they're not performing, but some people will choose to opt out if it's not the place that they want to be. But you know our intention with our performance management program is to manage people back into the business and help them be successful.

Speaker Change: The

Speaker Change: Sales headcount is just normal attrition. We are stepping into our performance management. We hire really good people into the sales organization. We're trying to bring them back into the organization if they're not performing. And then some people will choose to opt out if it's not the place that they want to be. But you know our intention with our performance management program is to manage people back into the business and help them be successful. So we've been doing that. We're seeing a little bit higher attrition than we did in 2023 but that was expected.

Nate Swan: And then some people will choose to opt out if it's not the place that they want to be. But, you know, our intention with our performance management program is to manage people back into the business and help them be successful. So we've been doing that. We're seeing a little bit higher attrition than we did in 2023, but that was expected. Going into this year, so nothing outside of the plan, and we'll continue to bring in where we see really good opportunity. So the plan is staying steady with that single-digit headcount growth throughout this year.

Nate Swan: So we've been doing that. We're seeing a little bit higher attrition than we did in 2023, but that was expected going into this year. So nothing outside of the plan, and we'll continue to bring in headcount where we see really good opportunities. So the plan is staying steady with that single-digit headcount growth through throughout this year. Anything else I can clarify? Good candidates on the street. Yeah, that's good.

Speaker Change: going into this year, so nothing outside of the plan.

Speaker Change: And we'll continue to bring in headcount where we see really good opportunity. So the plan is staying steady with that single digit headcount growth throughout this year. Anything else I can clarify? Good candidates on the street. Yeah, that's a great point, George.

Vincent Colicchio: So anything else I can clarify?

George Colony: Good candidates on the street.

Vincent Colicchio: That's a great point, George. We have seen some really good candidates. I know several of my regions have been commented about the high quality that we're seeing coming into the organization, which is a big change from a couple of years ago where it was really difficult to find high end. Now, a very helpful color. Thank you for that.

George F. Colony: We have seen some really good candidates. I know several of my regions have been commenting about the high quality that we're seeing coming into the organization, which is a big change from a couple of years ago where it was really difficult to find high-end talent.

Vincent Alexander Colicchio: A very helpful caller. Thank you for that.

Chris Finn: It was nice to see CV stabilized and Chris, so you had mentioned the outlook for CV and the next two quarters. I missed that. Did you say flat up slightly? Well, for the four-year events, we expect CV to be flat to slightly up as we continue through the migration. We're confident in getting to 80% plus our CV to be NFT by the end of the year. And from a heritage perspective, I mean, we're less than 12% at this point on heritage, and we're continuing to drive migration pretty significantly. And then for the high risk portion that's sub 50, I mean, we're less than 4% at this point.

Speaker Change: Now a very helpful caller. Thank you for that. It was nice to see CV stabilize. And Chris, you had mentioned the outlook for CV in the next two quarters. I missed that. Did you say flat up slightly?

Vincent Alexander Colicchio: It was nice to see C.V. stabilize. Chris, you had mentioned the outlook for C.V. for the next two quarters. I missed that. Did you say flat up slightly?

Leo Christian Finn: Yeah, well, for the full year, Vince, we expect CVE to be flat to slightly up as we continue through the migration. We're confident in getting to 80% plus of our CVE to be in FD by the end of the year. And from a heritage perspective, we're less than 12% at this point in terms of heritage, and we're continuing to drive migration pretty significantly. And then for the high risk portion, that sub-50, we're less than 4% at this point.

Leo Christian Finn: Yeah, well, for the full year, Vince, we expect CVE to be flat to slightly up.

Speaker Change: As we continue through the migration, we're confident in getting to 80% plus.

Speaker Change: of our CV to be an FD by the end of the year. And from a heritage perspective, I mean, we're less than.

Speaker Change: 12% at this point on heritage, and we're continuing to drive migration pretty significantly. And then for the high-risk portion, that sub-50, I mean, we're less than 4% at this point, and we expect overall heritage in general by the end of the year to be less than 5%. So we are really on track to be fully through the migration effort.

Leo Christian Finn: And we expect overall heritage in general by the end of the year to be less than 5%. So we are really on track to be fully through the migration effort by the end of the year. And this is under 50.

Chris Finn: And we expect overall heritage in general by the end of the year to be less than 5%. So we are really on track to be fully through the migration effort by the end of the year. Yeah, Vincent, sub 50 is small vendors below $15 million in revenue. Yeah.

Leo Christian Finn: Yeah, this is sub-50, which is small vendors below $50 million in revenue.

Speaker Change: by the end of the year. Again, VISTA Sub-50 is small vendors below $50 million in revenue. Yep.

George Colony: And George, are you seeing the effectiveness of Zola? It sounds impressive. Helping spur additional sales of seats.

George F. Colony: And George, are you seeing the effectiveness of Izola, it sounds impressive, helping spur additional sales of seats?

George F. Colony: And George, are you seeing the effectiveness of Izola, it sounds impressive, helping spur additional sales of seats?

Nate Swan: I'll jump in on this, Vince. I wouldn't say we can say there is a quantified number based on what we see with iZola, but our clients like it. We have a lot of valuable research, so to be able to cut through to exactly what they're looking for helps. We want people to access, use, and come back. So the quicker they can get that, the more likely they are to engage with Forrester.

George Colony: I'll jump in on this event. I wouldn't say we can say there is a quantified number based on what we see with Zola. But our clients like it; we have a lot of valuable research. So, to be able to cut to through to exactly what they're looking for, it helps. We want people to access, use, and come back. So the quicker they can get that, the more likely they are to engage with Forrester. Our sales people love to be prepared with it. So they go out to a meeting with a client, and they use Zola to help prep on some of the issues and show how it can help them.

George F. Colony: I'll jump in on this, Vince.

George F. Colony: I wouldn't say we can say there is a quantified number based on what we see with iZola, but our clients like it.

Speaker Change: We have a lot of valuable research, so to be able to cut through to exactly what they're looking for, it helps. We want people to access, use, and come back, so the quicker they can get that, the more likely they are to engage with Forrester. Our salespeople love to prepare with it, so they go out to a meeting with a client and they use iZola to help prep on some of the issues and show how it can help them.

Nate Swan: Our salespeople love to prepare with it. So they go out to a meeting with a client, and they use iZola to help prepare for some of the issues and show how it can help them. And then, frankly, we've gotten a lot of clients that have come back to us and said, hey, we really like how you've done this within your business. We'd actually like to talk to your product tech team as to how they actually made that happen so quickly. So we're seeing some really good signs from our clients and prospects that this is helping them. They're really interested in how we did this and made it work so quickly.

George Colony: And then, frankly, we've gotten a lot of clients that have come back to us and said, hey, we really like how you've done this within your business. We'd actually like to talk to your product tech team. How did they actually make that happen so quickly? So we're seeing some really good signs from our clients and prospects that this is helping them. They're really interested in how we did this and made it work so quickly.

Speaker Change: And then, frankly, we've gotten a lot of clients that have come back to us and said, hey, we really like how you've done this within your business. We'd actually like to talk to your product tech team as to how did they actually make that happen so quickly. So we're seeing some really

Speaker Change: you know, good signs from our clients and prospects that this is helping them. They're really interested in how we did this and made it work so quickly.

Carrie Johnson Fanlo: One thing I'll add, Vince, it's Carrie, is as a reminder, EIZL is only available to customers in Forrester Decisions and Forrester Market Insights, so the new portfolio, so it's also helping our sales discussions from a migration perspective. It's not available to our heritage.

George Colony: One thing I'll add, Vince, is, as a reminder, Zola is only available to customers and Forrester decisions and Forrester market insights, so the new portfolio. So it's also helping ourselves discussions from a migration perspective. It's not available to our heritage client. I think what's interesting, Vince, is that some of the heritage clients are saying, "Hey, can we get Zola with a heritage product?" And we're saying, no, you cannot. But the fact that they're asking for it is a great sign.

Carrie Johnson Fanlo: One thing I'll add, Vince, it's Carrie, is as a reminder, EIZO is only available to customers in Forrester Decisions and Forrester Market Insights, so the new portfolio, so it's also helping our sales discussions from a migration perspective. It's not available to our heritage clients.

George F. Colony: I think what's interesting, Vince, is that some of the Heritage clients are saying, hey, can we get iZola with a Heritage product? And we're saying, no, you cannot. But the fact that they're even asking for it is great.

George F. Colony: I think it was very interesting.

Carrie Johnson Fanlo: I think what's interesting, Vince, is that some of the Heritage clients are saying, hey, can we get iZola with a Heritage product? And we're saying, no, you cannot. But the fact that they're even asking for it is a great sign.

Vincent Alexander Colicchio: And one last one, Chris, should we expect you to be proactive on the buyback activity in the second half?

Chris Finn: And one last one, Chris, should we expect you to be proactive on the buyback activity in the second half? Yeah, we're going to absolutely continue to look to be opportunistic about buybacks for the rest of the year as we watch performance closely. And that hasn't changed.

Carrie Johnson Fanlo: And one last one, Chris, should we expect you to be proactive on the buyback activity in the second half?

Leo Christian Finn: Yeah, we're going to absolutely continue to look to be opportunistic about buybacks for the rest of the year as we watch performance closely, and that hasn't changed. Okay, thank you guys.

Leo Christian Finn: Yeah, we're going to absolutely continue to look to be opportunistic about buybacks for the rest of the year as we watch performance closely and that hasn't changed.

Vincent Colicchio: Okay, thank you, Vince. Thank you.

Operator: I'm Chandler for the questions in the queue.

Operator: I'm sure there are further questions in the queue. At this time, I'd like to turn the conference back to Chris Finn, CFO, for closing remarks.

Speaker Change: Okay, thank you guys.

Chris Finn: At this time, I'd like to turn the conference back to Chris and the CFO for closing remarks. Yeah, I'll let you just thank everybody for joining us today.

Ben: Thanks, Vincent. Thank you.

Speaker Change: I'm sure no further questions in the queue at this time. I'd like to turn the conference back to Chris and CFO for closing remarks

Leo Christian Finn: Yeah, I'll let you just thank everybody for joining us today. Any follow-up questions, please contact Ed or myself. Thank you very much.

Chris Finn: Any follow-up questions? Please contact Ed and me. Thank you very much. Thank you.

Leo Christian Finn: Yeah, I'll let you just thank everybody for joining us today. Any follow-up questions, please contact Ed or myself. Thank you very much.

Operator: Thank you. This concludes today's conference call. Thank you for participating. You may now disconnect.

Operator: This concludes today's conference call. Thank you for participating.

Operator: You may now disconnect.

Speaker Change: Thank you. This concludes today's conference call. Thank you for participating. You may now disconnect.