Forrester Research, Inc. (Nasdaq: FORR), a leading provider of research and analysis on the Internet and emerging technologies, today announced consolidated revenues of $27.7 million for the fourth quarter ended December 31, 1999, an increase of 51% from $18.3 million in the fourth quarter of 1998. Before one-time acquisition costs of approximately $694,000 incurred in connection with the acquisition of Fletcher Research Limited, pro forma net income for the fourth quarter of 1999 was $4.6 million, an increase of 71% over net income of $2.7 million in the comparable period of 1998. Earnings per share for the fourth quarter of 1999 was $0.42 per pre-split diluted share, compared with $0.29 per pre-split diluted share in the fourth quarter of 1998. The agreement value of the company’s core research and advisory services at December 31, 1999, increased 68% to $115.8 million from $69.1 million at December 31, 1998. Deferred revenue grew 70% to $66.2 million at December 31, 1999, from $38.9 million at December 31, 1998.
For the year ended December 31, 1999, Forrester reported consolidated revenues of $87.3 million, 42% higher than revenues of $61.6 million in 1998. Before the one-time acquisition costs, pro forma net income for 1999 was $11.6 million, an increase of 54% over net income of $7.5 million in 1998. Earnings per share for 1999 was $1.16 per pre-split diluted share, compared with $0.81 per pre-split diluted share in 1998.
“Forrester provides research and analysis on the business-to-business, business-to-consumer, and technology marketplaces, and our growth was recorded across all of these areas,” stated George F. Colony, chairman of the board, president, and chief executive officer. “Our fourth-quarter revenue increase reflects strong demand for our research offerings and the contribution from three sold-out events, including our annual Forrester Forum in Boston, and new events in the Netherlands and the United Kingdom. Our client companies increased to 1,793 at December 31, 1999, from 1,558 at September 30, 1999, and we continued to expand business within existing accounts.”
“The fourth quarter also included our acquisition of Fletcher Research, a London-based research firm that specializes in analyzing the UK Internet market. Fletcher brings a country-specific focus that augments Forrester’s pan-European research capability and online measurement tools. Our business in Europe represented 17% of fourth-quarter revenue in 1999 compared to 12% of fourth-quarter revenue in 1998,” Colony said.
“Forrester continued to broaden its research coverage by introducing three new lenses: Healthcare Online, Technographics® Travel, and Technographics Europe,” added Colony. “We also launched our eResearch Wave II initiative, which is extending our reach into new markets. Each of our eResearch Wave II offerings — Baseline Research For Internet Entrepreneurs, PowerRankings™, and The eBusiness Voyage™ — were released in the fourth quarter. In addition, the first Forrester book, Now Or Never, written by Mary Modahl, Forrester’s vice president of research, was published.”
Colony concluded, “Our growth strategy includes a number of initiatives, such as further leveraging our eResearch technology platform, launching online research products, creating new research lenses, opening new sales offices throughout the country, and developing new sales channels.”
Forrester’s fourth-quarter net income, including one-time acquisition costs, was $4.0 million, or $0.36 per pre-split diluted share. Forrester’s 1999 net income, including one-time acquisition costs, was $11.0 million, or $1.09 per pre-split diluted share.
On January 18, 2000, Forrester announced a two-for-one stock split. The stock split is being effected in the form of a 100% stock dividend that is payable on or about February 7, 2000, to stockholders of record on January 31, 2000. Forrester’s fourth-quarter earnings per share, split-adjusted and including one-time acquisition costs, was $0.18. Forrester’s 1999 earnings per share, split-adjusted and including one-time acquisition costs, was $0.55.
Forrester Research is a leading independent research firm that analyzes the Internet and emerging technologies and their impact on business, consumers, and society. Forrester’s “Whole View” of the Internet economy enables clients to weave together Internet commerce initiatives with corporate systems to satisfy the customer’s changing needs. Clients receive the “Whole View” through Forrester’s unique eResearch Reports, an array of advisory services, and events. Established in 1983, Forrester is headquartered in Cambridge, Mass. Forrester’s European Research Center offices are located in Amsterdam, Netherlands, and London. Additional information about Forrester Research can be found at www.forrester.com.
Forrester and Technographics are registered trademarks of Forrester Research, Inc. PowerRankings and the eBusiness Voyage, including each of their logos, and eResearch are trademarks of Forrester Research, Inc.