Operating Segments

9 Months Ended

Sep. 30, 2020

Segment Reporting [Abstract]

Operating Segments

Note 14 — Operating Segments

As described in the Company’s Form 8-K filed on April 2, 2020, Forrester’s Chief Product Officer resigned from the Company effective April 17, 2020. Subsequently, the Chief Product Officer position was eliminated and the Company reorganized its operations to reflect three lines of business: Research, Consulting, and Events. As a result of these changes, during the three months ended June 30, 2020, the Company realigned its internal reporting into Research, Consulting, and Events. The realignment eliminated the Products segment as the product lines and organizations supporting the related revenues began operating under the new management structure. The prior period amounts have been revised to conform to the current presentation.

The Research segment includes the revenues of the Research, Connect and Analytics products and the cost of the organizations responsible for developing and delivering these products. In addition, this segment includes Consulting revenues from advisory services (such as workshops, speeches and advisory days) delivered by the Company’s research and analytics analysts. The costs of the product management organization responsible for product pricing and packaging, and the launch of new products, is included in this segment.

The Consulting segment includes the revenues and the related costs of the Company’s project consulting organization. The project consulting organization delivers a majority of the Company’s project consulting revenue and certain advisory services.

The Events segment includes the revenues and the costs of the organization responsible for developing and hosting in-person and virtual events.

The Company evaluates reportable segment performance and allocates resources based on segment revenues and expenses. Segment expenses include the direct expenses of each segment organization and excludes selling and marketing expenses, general and administrative expenses, stock-based compensation expense, depreciation expense, adjustments to incentive bonus compensation from target amounts, amortization of intangible assets, interest and other expense, and gains (losses) on investments. The accounting policies used by the segments are the same as those used in the consolidated financial statements.

The Company provides disaggregated revenue by product in the segment tables below (in thousands):

	Research			Consulting			Events			Consolidated
Three Months Ended September 30, 2020
Research revenues
Research	$	54,107		$	—		$	—		$	54,107
Connect		13,710			—			—			13,710
Analytics		4,996			—			—			4,996
Total research revenues		72,813			—			—			72,813
Consulting		13,372			21,261			—			34,633
Events		—			—			1,131			1,131
Total segment revenues		86,185			21,261			1,131			108,577
Segment expenses		(28,645	)		(9,646	)		(1,284	)		(39,575	)
Selling, marketing, administrative and other expenses											(63,778	)
Amortization of intangible assets											(4,722	)
Acquisition and integration costs											(328	)
Interest expense, other expense and gains on investments											(1,533	)
Loss before income taxes										$	(1,359	)

	Research			Consulting			Events			Consolidated
Three Months Ended September 30, 2019
Research revenues
Research	$	55,022		$	—		$	—		$	55,022
Connect		14,257			—			—			14,257
Analytics		5,269			—			—			5,269
Total research revenues		74,548			—			—			74,548
Consulting		13,357			19,262			—			32,619
Events		—			—			1,429			1,429
Total segment revenues		87,905			19,262			1,429			108,596
Segment expenses		(28,632	)		(9,299	)		(1,733	)		(39,664	)
Selling, marketing, administrative and other expenses											(62,524	)
Amortization of intangible assets											(5,654	)
Acquisition and integration costs											(2,394	)
Interest expense, other income and losses on investments											(1,794	)
Loss before income taxes										$	(3,434	)

	Research			Consulting			Events			Consolidated
Nine Months Ended September 30, 2020
Research revenues
Research	$	163,071		$	—		$	—		$	163,071
Connect		40,677			—			—			40,677
Analytics		15,482			—			—			15,482
Total research revenues		219,230			—			—			219,230
Consulting		40,749			62,231			—			102,980
Events		—			—			6,253			6,253
Total segment revenues		259,979			62,231			6,253			328,463
Segment expenses		(81,979	)		(29,766	)		(5,167	)		(116,912	)
Selling, marketing, administrative and other expenses											(181,463	)
Amortization of intangible assets											(14,147	)
Acquisition and integration costs											(3,815	)
Interest expense, other expense and gains on investments											(1,904	)
Income before income taxes										$	10,222

	Research			Consulting			Events			Consolidated
Nine Months Ended September 30, 2019
Research revenues
Research	$	161,107		$	—		$	—		$	161,107
Connect		41,895			—			—			41,895
Analytics		16,434			—			—			16,434
Total research revenues		219,436			—			—			219,436
Consulting		42,768			55,654			—			98,422
Events		—			—			19,570			19,570
Total segment revenues		262,204			55,654			19,570			337,428
Segment expenses		(89,780	)		(28,207	)		(13,398	)		(131,385	)
Selling, marketing, administrative and other expenses											(189,134	)
Amortization of intangible assets											(16,963	)
Acquisition and integration costs											(7,848	)
Interest expense, other expense and losses on investments											(6,631	)
Loss before income taxes										$	(14,533	)