Forrester Research, Inc. (Nasdaq: FORR), a leading provider of research and analysis on the Internet and emerging technologies, today reported the fastest revenue growth rate in its history as a public company. Revenues increased by 95% to $38.3 million for the quarter, up from $19.7 million in the second quarter of 1999. Net income for the quarter more than doubled to $4.9 million compared with net income of $2.2 million for the same period a year earlier. Diluted earnings per share for the second quarter of 2000 were $0.20 per share compared with $0.12 per share for the second quarter of 1999.
“Forrester’s unique position, successful introduction of new products, and geographic expansion continue to generate strong sales and earnings growth,” said George F. Colony, chairman of the board and chief executive officer. “Our second-quarter results reflect increasing demand for our Internet research products across a highly diversified customer base of global corporations and medium-sized companies as well as startups,” Colony said. Forrester’s total core research revenue increased 90% during the second quarter on a year-over-year basis across business-to-business (B2B) and business-to-consumer (B2C) sectors and across all geographies. Additionally, deferred revenue grew 97% to $81.7 million at June 30, 2000, from $41.5 million at June 30, 1999.
For the six-month period ended June 30, 2000, Forrester reported that revenues increased 84% to $69.1 million from $37.6 million for the same period one year ago. Net income for the first six months of 2000 was $8.3 million, a 102% increase over net income of $4.1 million for the same period last year. Diluted earnings per share increased to $0.35 per share in the six months ended June 30, 2000, compared with $0.22 per share in the comparable period of 1999.
“Looking first at core research, we introduced our Telecom eBusiness lens. We also expanded our financial services research to include the wholesale segment of that industry. Another highlight was our launch of Netquity™, a joint venture with Information Resources, Inc. designed to enable consumer packaged goods companies to build Internet strategies for their brands. We were pleased to see the first new clients sign up for Netquity within the first month of its launch.
“Our European expansion continued last quarter with Europe representing 18% of revenue in the second quarter this year compared with 12% of revenue in the second quarter of last year,” Colony said. “We launched our successful Internet AdWatch™ product in France and Germany and rolled out two new Euro-view lenses — Online Finance and Online Business Trade — in the UK and Europe. Additionally, we established a partnership with Milia 2001, Europe’s premier interactive content event.
“The expansion and diversification of our customer base demonstrates the growing awareness that Forrester helps companies to transform themselves and thrive in the fast-changing Internet economy,” Colony stated. “A great example of this awareness was the Finance & Technology Forum we held in New York City at the end of the quarter. The sellout crowd of more than 700 was the largest we have ever seen for an event held outside the Boston area, and many of the attendees were prospective clients.
“We are looking forward to continued revenue growth and expansion of our product offerings in the third quarter,” Colony said, “with plans that include new B2B2C launches, including a product for the automotive industry, and exciting new developments in Europe and Asia. Forrester is focused on further cementing its position as a leading Internet research company as 2000 continues.”