Stockholders' Equity

9 Months Ended

Sep. 30, 2022

Equity [Abstract]

Stockholders' Equity

Note 12 — Stockholders’ Equity

The components of stockholders’ equity are as follows (in thousands):

	Three Months Ended September 30, 2022
	Common Stock									Treasury Stock					Accumulated
	Number of Shares		$0.01ParValue		Additional Paid-in Capital			Retained Earnings		Number of Shares		Cost			Other Comprehensive Income (Loss)			Total Stockholders' Equity
Balance at June 30, 2022		24,159	$	242	$	254,937		$	170,847		5,305	$	(207,067	)	$	(8,860	)	$	210,099
Issuance of common stock under    stock plans, including tax effects		193		2		(501	)		—		—		—			—			(499	)
Stock-based compensation expense		—		—		3,905			—		—		—			—			3,905
Net income		—		—		—			5,414		—		—			—			5,414
Net change in interest rate swap,    net of tax		—		—		—			—		—		—			(5	)		(5	)
Net change in marketable investments,    net of tax		—		—		—			—		—		—			(54	)		(54	)
Foreign currency translation		—		—		—			—		—		—			(4,971	)		(4,971	)
Balance at September 30, 2022		24,352	$	244	$	258,341		$	176,261		5,305	$	(207,067	)	$	(13,890	)	$	213,889

	Three Months Ended September 30, 2021
	Common Stock								Treasury Stock					Accumulated
	Number of Shares		$0.01 Par Value		Additional Paid-in Capital		Retained Earnings		Number of Shares		Cost			Other Comprehensive Income (Loss)			Total Stockholders' Equity
Balance at June 30, 2021		23,780	$	238	$	237,485	$	140,280		4,694	$	(174,562	)	$	(1,939	)	$	201,502
Issuance of common stock under    stock plans, including tax effects		262		2		2,021		—		—		—			—			2,023
Repurchases of common stock		—		—		—		—		170		(7,973	)		—			(7,973	)
Stock-based compensation expense		—		—		2,462		—		—		—			—			2,462
Net income		—		—		—		4,522		—		—			—			4,522
Net change in interest rate swap,    net of tax		—		—		—		—		—		—			128			128
Net change in marketable investments,    net of tax		—		—		—		—		—		—			(4	)		(4	)
Foreign currency translation		—		—		—		—		—		—			(1,508	)		(1,508	)
Balance at September 30, 2021		24,042	$	240	$	241,968	$	144,802		4,864	$	(182,535	)	$	(3,323	)	$	201,152

	Nine Months Ended September 30, 2022
	Common Stock								Treasury Stock					Accumulated
	Number of Shares		$0.01 Par Value		Additional Paid-in Capital		Retained Earnings		Number of Shares		Cost			Other Comprehensive Income (Loss)			Total Stockholders' Equity
Balance at December 31, 2021		24,085	$	241	$	245,985	$	152,825		5,027	$	(191,955	)	$	(3,189	)	$	203,907
Issuance of common stock under    stock plans, including tax effects		267		3		1,320		—		—		—			—			1,323
Repurchases of common stock		—		—		—		—		278		(15,112	)		—			(15,112	)
Stock-based compensation expense		—		—		11,036		—		—		—			—			11,036
Net income		—		—		—		23,436		—		—			—			23,436
Net change in interest rate swap,    net of tax		—		—		—		—		—		—			259			259
Net change in marketable investments,    net of tax		—		—		—		—		—		—			(147	)		(147	)
Foreign currency translation		—		—		—		—		—		—			(10,813	)		(10,813	)
Balance at September 30, 2022		24,352	$	244	$	258,341	$	176,261		5,305	$	(207,067	)	$	(13,890	)	$	213,889

	Nine Months Ended September 30, 2021
	Common Stock								Treasury Stock					Accumulated
	Number of Shares		$0.01 Par Value		Additional Paid-in Capital		Retained Earnings		Number of Shares		Cost			Other Comprehensive Income (Loss)			Total Stockholders' Equity
Balance at December 31, 2020		23,648	$	236	$	230,128	$	127,981		4,631	$	(171,889	)	$	(690	)	$	185,766
Issuance of common stock under    stock plans, including tax effects		394		4		4,489		—		—		—			—			4,493
Repurchases of common stock		—		—		—		—		233		(10,646	)		—			(10,646	)
Stock-based compensation expense		—		—		7,351		—		—		—			—			7,351
Net income		—		—		—		16,821		—		—			—			16,821
Net change in interest rate swap,    net of tax		—		—		—		—		—		—			457			457
Net change in marketable investments,    net of tax		—		—		—		—		—		—			(4	)		(4	)
Foreign currency translation		—		—		—		—		—		—			(3,086	)		(3,086	)
Balance at September 30, 2021		24,042	$	240	$	241,968	$	144,802		4,864	$	(182,535	)	$	(3,323	)	$	201,152

Equity Plans

Restricted stock unit activity for the nine months ended September 30, 2022 is presented below (in thousands, except per share data):

				Weighted-
				Average
	Number of			Grant Date
	Shares			Fair Value
Unvested at December 31, 2021		634		$	42.45
Granted		348			50.58
Vested		(213	)		41.77
Forfeited		(70	)		44.94
Unvested at September 30, 2022		699		$	46.45

Stock option activity for the nine months ended September 30, 2022 is presented below (in thousands, except per share data and contractual term):

				Weighted -		Weighted -
				Average		Average
				Exercise		Remaining		Aggregate
	Number			Price Per		Contractual		Intrinsic
	of Shares			Share		Term (in years)		Value
Outstanding at December 31, 2021		114		$	35.52
Exercised		(21	)		35.29
Forfeited		(3	)		34.91
Outstanding at September 30, 2022		90		$	35.59		2.28	$	126
Vested and Exercisable at September 30, 2022		90		$	35.59		2.28	$	126

No stock options were granted during the nine months ended September 30, 2022.

In May 2022, stockholders of the Company approved an amendment to the Company’s Second Amended and Restated Employee Stock Purchase Plan, which provided for an additional 600,000 shares of Common Stock, par value $0.01 per share, to be granted under the plan.

Stock-Based Compensation

Forrester recognizes the fair value of stock-based compensation over the requisite service period of the individual grantee, which generally equals the vesting period. Stock-based compensation was recorded in the following expense categories on the Consolidated Statements of Income (in thousands):

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2022		2021		2022		2021
Cost of services and fulfillment	$	2,268	$	1,554	$	6,397	$	4,389
Selling and marketing		743		372		2,128		1,220
General and administrative		894		536		2,511		1,742
Total	$	3,905	$	2,462	$	11,036	$	7,351

Forrester utilizes the Black-Scholes valuation model for estimating the fair value of shares subject to purchase under the employee stock purchase plan, which were valued using the following assumptions:

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2022			2021			2022			2021
Average risk-free interest rate		3.71	%		0.05	%		3.71	%		0.05	%
Expected dividend yield		0.0	%		0.0	%		0.0	%		0.0	%
Expected life	0.5 Years			0.5 Years			0.5 Years			0.5 Years
Expected volatility		33	%		30	%		33	%		30	%
Weighted average fair value	$	10.22		$	11.20		$	10.22		$	11.20

Treasury Stock

As of September 30, 2022, Forrester’s Board of Directors had authorized an aggregate $585.0 million to purchase common stock under its stock repurchase program. The shares repurchased may be used, among other things, in connection with Forrester’s equity incentive and purchase plans. During the three months ended September 30, 2022, the Company did not repurchase any shares of common stock. During the nine months ended September 30, 2022, the Company repurchased approximately 0.3 million shares of common stock at an aggregate cost of approximately $15.1 million. During the three and nine months ended September 30, 2021, the Company repurchased approximately 0.2 million shares of common stock at an aggregate cost of approximately $8.0 million and $10.6 million, respectively. From the inception of the program through September 30, 2022, the Company repurchased 17.0 million shares of common stock at an aggregate cost of $510.0 million.