EX-99.1

Exhibit 99.1

FOR IMMEDIATE RELEASE

Forrester Research Reports 2023 Third-Quarter Financial Results

CAMBRIDGE, Mass., October 26, 2023 — Forrester Research, Inc. (Nasdaq: FORR) today announced financial results for the third quarter ended September 30, 2023, with flat contract value (CV) at $349.4 million, compared with the prior year.

“While our contract value remained flat this quarter due to persistent headwinds, we now have approximately $200 million of CV on the Forrester Decisions platform and remain on track to convert two-thirds of our CV to Forrester Decisions by the end of the year,” said CEO and Chairman George F. Colony. “We continue to improve the Forrester Decisions platform. These enhancements include the development of Izola, our generative AI system, and the expansion of client outcomes. Izola will enable clients to find answers faster, and outcomes will better align Forrester’s value with client challenges. We remain resolute in our pursuit of growing CV and accelerating the ongoing journey to create a high-performance sales culture.”

Third-Quarter Consolidated Results

Total revenues for the third quarter of 2023 were $113.4 million, compared with $127.7 million for the comparable quarter in 2022.

On a GAAP basis, net income was $2.5 million, or $0.13 per diluted share, for the third quarter of 2023, compared with a net income of $5.4 million, or $0.28 per diluted share, for the same period in 2022.

On an adjusted basis, net income was $8.6 million, or $0.44 per diluted share, for the third quarter of 2023, reflecting an adjusted effective tax rate of 29%. Adjusted net income excludes stock-based compensation of $4.1 million and amortization of acquisition-related intangible assets of $3.0 million. This compares with an adjusted net income of $10.9 million, or $0.57 per diluted share, for the same period in 2022, which reflects an adjusted tax rate of 30%. Adjusted net income for the third quarter of 2022 excludes stock-based compensation of $3.9 million and amortization of acquisition-related intangible assets of $3.4 million.

Forrester is providing updated guidance for 2023 as follows:

Full-Year 2023 (GAAP):

•

Total revenues of approximately $475 million to $485 million

•

Operating margin of approximately 1.2% to 2.2%

•

Interest expense of approximately $3.1 million

•

An effective tax rate of approximately 50%

•

Earnings per share of approximately $0.10 to $0.30

Full-Year 2023 (Adjusted):

Adjusted financial guidance for the full-year 2023 excludes stock-based compensation expense of $15.0 million to $15.5 million, amortization of acquisition-related intangible assets of approximately $12.0 million, restructuring costs of approximately $12.2 million, a legal settlement of $4.8 million, and any investment gains or losses.

•

Adjusted operating margin of approximately 10.5% to 11.5%

•

Adjusted effective tax rate of approximately 29%

•

Adjusted diluted earnings per share of approximately $1.80 to $2.00

About Forrester

Forrester (Nasdaq: FORR) is one of the most influential research and advisory firms in the world. We help leaders across technology, customer experience, digital, marketing, sales, and product functions use customer obsession to accelerate growth. Through Forrester’s proprietary research, consulting, and events, leaders from around the globe are empowered to be bold at work — to navigate change and put their customers at the center of their leadership, strategy, and operations. Our unique insights are grounded in annual surveys of more than 700,000 consumers, business leaders, and technology leaders worldwide; rigorous and objective research methodologies, including Forrester Wave^™ evaluations; over 100 million real-time feedback votes; and the shared wisdom of our clients. To learn more, visit Forrester.com.

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, Forrester’s financial guidance for the full-year 2023 and statements about the performance of Forrester Decisions, Forrester’s sales force, and Forrester’s future financial performance and financial condition. These statements are based on Forrester’s current plans and expectations and involve risks and uncertainties that could cause actual future activities and results of operations to be materially different from those set forth in the forward-looking statements. Important factors that could cause actual future activities and results to differ include, among others, Forrester’s ability to retain and enrich memberships for its research products and services, including the migration of its existing clients into its Forrester Decisions portfolio of services; Forrester’s ability to fulfill existing or generate new consulting engagements and advisory services; technology spending; the risks and challenges inherent in international

business activities; the impact of health epidemics, including COVID-19, on Forrester’s business; Forrester’s ability to offer new products and services; Forrester’s dependence on key personnel; Forrester’s ability to attract and retain professional staff; Forrester’s ability to respond to business and economic conditions and market trends; the impact of Forrester’s outstanding debt obligations; competition and industry consolidation; possible variations in Forrester’s quarterly operating results; concentration of ownership of Forrester; the possibility of network disruptions and security breaches; any failure to enforce and protect Forrester’s intellectual property rights; compliance with privacy laws; taxation risks; any weakness in Forrester’s system of internal controls; and the amount and timing of the repurchase of Forrester stock. Forrester undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events, or otherwise. For further information, please refer to Forrester’s reports and filings with the Securities and Exchange Commission.

The consolidated statements of operations and the table of key financial data are attached.

Contact:

Ed Bryce Morris

Vice President, Corporate Development & Investor Relations

Forrester Research, Inc.

+1 617-613-6565

ebrycemorris@forrester.com

Shweta Agarwal

Senior Director, Public Relations

Forrester Research, Inc.

+1 617-613-6805

sagarwal@forrester.com

Forrester Research, Inc.

Consolidated Statements of Income

(Unaudited, in thousands, except per share data)


	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2023			2022			2023			2022
Revenues:
Research	$	80,606		$	87,038		$	249,211		$	262,265
Consulting		28,237			37,382			89,957			115,075
Events		4,588			3,259			23,522			23,556

Total revenues		113,431			127,679			362,690			400,896

Operating expenses:
Cost of services and fulfillment		47,978			52,717			151,884			166,959
Selling and marketing		39,967			44,231			123,080			133,249
General and administrative		15,108			16,448			51,650			47,897
Depreciation		2,262			2,374			6,557			6,992
Amortization of intangible assets		3,041			3,352			9,175			10,068
Restructuring costs		19			—			12,140			—

Total operating expenses		108,375			119,122			354,486			365,165

Income from operations		5,056			8,557			8,204			35,731
Interest expense		(763	)		(584	)		(2,286	)		(1,732	)
Other income, net		568			346			1,632			192
Gains on investments		—			—			—			426

Income before income taxes		4,861			8,319			7,550			34,617
Income tax expense		2,377			2,905			3,837			11,181

Net income	$	2,484		$	5,414		$	3,713		$	23,436

Basic income per common share	$	0.13		$	0.29		$	0.19		$	1.24

Diluted income per common share	$	0.13		$	0.28		$	0.19		$	1.22

Basic weighted average shares outstanding		19,191			18,958			19,164			18,939

Diluted weighted average shares outstanding		19,289			19,139			19,239			19,192

Adjusted data (1):
Income from operations—GAAP	$	5,056		$	8,557		$	8,204		$	35,731
Amortization of intangible assets		3,041			3,352			9,175			10,068
Restructuring costs		19			—			12,140			—
Legal settlement		—			—			4,800			—
Stock-based compensation included in the following expense categories:
Cost of services and fulfillment		2,449			2,268			6,505			6,397
Selling and marketing		790			743			2,094			2,128
General and administrative		905			894			2,570			2,511

Adjusted income from operations	$	12,260		$	15,814		$	45,488		$	56,835


	Three Months Ended												Nine Months Ended
	September 30,												September 30,
	2023						2022						2023						2022
	Amount			Per Share			Amount			Per Share			Amount			Per Share			Amount			Per Share
Net income—GAAP	$	2,484		$	0.13		$	5,414		$	0.28		$	3,713		$	0.19		$	23,436		$	1.22
Amortization of intangible assets		3,041			0.16			3,352			0.18			9,175			0.47			10,068			0.53
Restructuring costs		19			—			—			—			12,140			0.63			—			—
Legal settlement		—			—			—			—			4,800			0.25			—			—
Stock-based compensation		4,144			0.21			3,905			0.20			11,169			0.58			11,036			0.58
Gains on investments		—			—			—			—			—			—			(426	)		(0.02	)
Tax effects of items above (2)		(1,542	)		(0.08	)		(1,980	)		(0.10	)		(9,117	)		(0.47	)		(5,487	)		(0.29	)
Adjustment to tax expense for adjusted tax rate (3)		420			0.02			212			0.01			(48	)		—			79			—

Adjusted net income	$	8,566			0.44		$	10,903		$	0.57		$	31,832			1.65		$	38,706		$	2.02

Diluted weighted average shares outstanding		19,289						19,139						19,239						19,192

(1)

Forrester believes that adjusted financial results provide investors with consistent and comparable information to aid in the understanding of Forrester’s ongoing business, and are also used by Forrester in making compensation decisions. Our adjusted presentation excludes amortization of acquisition-related intangible assets, stock-based compensation, restructuring costs, a legal settlement, and net gains from investments, as well as their related tax effects. We also utilized an assumed tax rate of 29% in 2023 and 30% in 2022, which excludes items such as the settlement of prior year tax audits and the effect of any adjustments related to the filing of prior year tax returns. The adjusted data does not purport to be prepared in accordance with Generally Accepted Accounting Principles in the United States.

(2)	The tax effect of adjusting items is based on the accounting treatment and rate for the jurisdiction of each item.

(3)	To compute adjusted net income, we apply an adjusted effective tax rate of 29% in 2023 and 30% in 2022.

Forrester Research, Inc.

Key Financial Data

(Unaudited, dollars in thousands)


	September 30,			December 31,
	2023			2022
Balance sheet data:
Cash, cash equivalents and marketable investments	$	111,456		$	123,317
Accounts receivable, net	$	41,016		$	73,345
Deferred revenue	$	158,349		$	178,021
Debt outstanding	$	35,000		$	50,000

	September 30,
	2023			2022
Cash flow data:
Net cash provided by operating activities	$	9,791		$	37,803
Purchases of property and equipment	$	(3,903	)	$	(4,227	)
Repayments of debt	$	(15,000	)	$	(25,000	)
Repurchases of common stock	$	(4,082	)	$	(15,112	)

	As of
	September 30,
	2023			2022
Metrics:
Contract value	$	349,400		$	348,900	(a)
Client retention		73	%		75	%
Wallet retention		91	%		98	%
Number of clients		2,538			2,875

	As of
	September 30,
	2023			2022
Headcount:
Total headcount		1,750			2,004
Sales force		599			701

(a)	September 30, 2022 contract value has been recast based on 2023 foreign currency rates.