Exhibit 99.1

FOR IMMEDIATE RELEASE

Forrester Research Reports 2022 Third-Quarter Financial Results

Year-over-year total contract value increased by 7% to $353 million

Company raises guidance for balance of year

Cambridge, Mass., November 2, 2022 — Forrester Research, Inc. (Nasdaq: FORR) today announced financial results for the third quarter ended September 30, 2022, and raised its guidance for the balance of the year. Results were driven by contract value (CV) growth of 7% and revenue growth of 8%. On a GAAP basis, earnings per share (EPS) was $0.28, and on an adjusted basis, EPS was $0.57.

Commenting on the announcement, CEO and Chairman George Colony stated, “We delivered solid financial results in the third quarter. We are on track to have one-third of our CV in the Forrester Decisions platform by year-end, and we remain focused on creating shareholder value for the long term. With today’s announcement, we are raising our guidance for the balance of the year, given the results we have posted today and our ongoing ability to manage costs. With that said, we continue to monitor the evolving macro environment and remain focused on our key metrics, which may continue to show volatility in the coming quarters, given our accelerated approach to convert clients to Forrester Decisions.”

Third-Quarter Consolidated Results

Total revenues for the third quarter of 2022 were $127.7 million, compared with $118.1 million for the comparable quarter in 2021.

On a GAAP basis, net income was $5.4 million, or $0.28 per diluted share, for the third quarter of 2022, compared with $4.5 million, or $0.23 per diluted share, for the same period in 2021.

On an adjusted basis, net income was $10.9 million, or $0.57 per diluted share, for the third quarter of 2022, reflecting an adjusted effective tax rate of 30%. Adjusted net income excludes stock-based compensation of $3.9 million and amortization of acquisition-related intangible assets of $3.4 million. This compares with an adjusted net income of $7.9 million, or $0.41 per diluted share, for the same period in 2021, which reflects an adjusted tax rate of 31%. Adjusted net income for the third quarter of 2021 excludes stock-based compensation of $2.5 million and amortization of acquisition-related intangible assets of $3.7 million.

Forrester is providing fourth-quarter and full-year 2022 financial guidance as follows:

Fourth Quarter 2022 (GAAP):

 

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Total revenues of approximately $134 million to $144 million

 

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Operating margin of approximately 1.0% to 3.0%

 

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Interest expense of approximately $0.7 million

 

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An effective tax rate of approximately 32%

 

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Earnings per share of approximately $0.03 to $0.13

Fourth Quarter 2022 (Adjusted):

Adjusted financial guidance for the fourth quarter of 2022 excludes stock-based compensation expense of $3.5 million to $3.7 million, amortization of acquisition-related intangible assets of approximately $3.1 million, and any investment gains or losses.

 

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Adjusted operating margin of approximately 6.0% to 8.0%

 

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Adjusted effective tax rate of approximately 30%

 

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Adjusted diluted earnings per share of approximately $0.28 to $0.38

Full Year 2022 (GAAP):

 

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Total revenues of approximately $535 million to $545 million

 

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Operating margin of approximately 7.0% to 8.0%

 

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Interest expense of approximately $2.5 million

 

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An effective tax rate of approximately 32%

 

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Earnings per share of approximately $1.25 to $1.35

Full Year 2022 (Adjusted):

Adjusted financial guidance for full-year 2022 excludes stock-based compensation expense of $14.5 million to $14.7 million, amortization of acquisition-related intangible assets of approximately $13.2 million, and any investment gains or losses.

 

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Adjusted operating margin of approximately 12.0% to 13.0%

 

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Adjusted effective tax rate of approximately 30%

 

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Adjusted diluted earnings per share of approximately $2.30 to $2.40

About Forrester

Forrester (Nasdaq: FORR) is one of the most influential research and advisory firms in the world. We help leaders across technology, marketing, customer experience, digital, product, and sales 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 70 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 fourth quarter of and full-year 2022 and statements about the performance of Forrester Decisions, Forrester’s ability to manage costs, 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; 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.

Forrester Research, Inc.

Consolidated Statements of Income

 

(Unaudited, in thousands, except per share data)

 

		Three Months Ended September 30,								Nine Months Ended September 30,
		2022				2021				2022				2021
Revenues:
Research		$	87,038			$	79,876			$	262,265			$	235,846
Consulting			37,382				37,393				115,075				116,903
Events			3,259				867				23,556				7,838
Total revenues			127,679				118,136				400,896				360,587
Operating expenses:
Cost of services and fulfillment			52,717				49,836				166,959				149,571
Selling and marketing			44,231				41,340				133,249				123,175
General and administrative			16,448				14,383				47,897				41,895
Depreciation			2,374				2,342				6,992				6,887
Amortization of intangible assets			3,352				3,696				10,068				11,567
Integration costs			—				—				—				334
Total operating expenses			119,122				111,597				365,165				333,429
Income from operations			8,557				6,539				35,731				27,158
Interest expense			(584	)			(1,056	)			(1,732	)			(3,251	)
Other income (expense), net			346				(195	)			192				(866	)
Gains on investments			—				—				426				—
Income before income taxes			8,319				5,288				34,617				23,041
Income tax expense			2,905				766				11,181				6,220
Net income		$	5,414			$	4,522			$	23,436			$	16,821
Basic income per common share		$	0.29			$	0.24			$	1.24			$	0.88
Diluted income per common share		$	0.28			$	0.23			$	1.22			$	0.87
Basic weighted average shares outstanding			18,958				19,134				18,939				19,107
Diluted weighted average shares outstanding			19,139				19,388				19,192				19,351
Adjusted data (1):
Income from operations—GAAP		$	8,557			$	6,539			$	35,731			$	27,158
Amortization of intangible assets			3,352				3,696				10,068				11,567
Integration costs			—				—				—				334
Stock-based compensation included in the following expense categories:
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
Adjusted income from operations		$	15,814			$	12,697			$	56,835			$	46,410

		Three Months Ended September 30,																Nine Months Ended September 30,
		2022								2021								2022								2021
		Amount				Per Share				Amount				Per Share				Amount				Per Share				Amount				Per Share
Net income—GAAP		$	5,414			$	0.28			$	4,522			$	0.23			$	23,436			$	1.22			$	16,821			$	0.87
Amortization of intangible assets			3,352				0.18				3,696				0.19				10,068				0.53				11,567				0.59
Integration costs			—				—				—				—				—				—				334				0.02
Stock-based compensation			3,905				0.20				2,462				0.13				11,036				0.58				7,351				0.38
Gains on investments			—				—				—				—				(426	)			(0.02	)			—				—
Tax effects of items above (2)			(1,980	)			(0.10	)			(1,861	)			(0.09	)			(5,487	)			(0.29	)			(5,276	)			(0.27	)
Adjustment to tax expense for adjusted tax rate (3)			212				0.01				(921	)			(0.05	)			79				—				(1,615	)			(0.08	)
Adjusted net income		$	10,903				0.57			$	7,898			$	0.41			$	38,706				2.02			$	29,182			$	1.51
Diluted weighted average shares outstanding			19,139								19,388								19,192								19,351

 

(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, integration costs, and net gains from investments, as well as their related tax effects. We also utilized an assumed tax rate of 30% in 2022 and 31% in 2021, which excludes items such as any release of reserves for uncertain tax positions established in prior years, 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 Accounting Principles Generally Accepted 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 30% in 2022 and 31% in 2021.

Forrester Research, Inc.

Key Financial Data

 

(Unaudited, dollars in thousands)

		September 30, 2022				December 31, 2021
Balance sheet data:
Cash, cash equivalents and marketable investments		$	118,738			$	134,278
Accounts receivable, net		$	50,602			$	86,965
Deferred revenue		$	180,758			$	213,696
Debt outstanding		$	50,000			$	75,000
		September 30,
		2022				2021
Cash flow data:
Net cash provided by operating activities		$	37,803			$	84,992
Purchases of property and equipment		$	(4,227	)		$	(9,845	)
Repayments of debt		$	(25,000	)		$	(9,375	)
Repurchases of common stock		$	(15,112	)		$	(10,646	)
		As of September 30,
		2022				2021
Metrics:
Contract value		$	353,000			$	328,600	(a)
Client retention			75	%			78	%
Wallet retention			97	%			99	%
Number of clients			2,875				2,964
		As of September 30,
		2022				2021
Headcount:
Total headcount			2,004				1,763
Sales force			701				648

(a) September 30, 2021 contract value has been recast based on 2022 foreign currency rates.