Forrester Research Inc (FORR)

Forrester Research Inc. (FORR): Company Overview

Company Profile:

Detailed history and background:

Forrester Research Inc. is a global research and advisory firm founded in 1983 by George F. Colony. The company initially focused on technology research for corporate buyers but has since expanded to cover various industries and functions, including marketing, customer experience, and digital transformation.

Core business areas:

Forrester provides data and insights to help businesses understand and respond to technology and market trends. They offer research reports, consulting services, data analysis tools, and events designed to help clients improve their business outcomes.

Leadership team and corporate structure:

Forrester is led by CEO and Chairman George F. Colony. The leadership team also includes Michelle L. Waters as Chief Operating Officer, Simon Yates as Chief Financial Officer, and Frank A. Maresca as Chief Information Officer. The company operates a traditional hierarchical structure with executives overseeing various departments, including research, consulting, and data analysis.

Top Products and Market Share:

Products:

• Forrester Wave™ reports: provide in-depth analysis and vendor comparisons for various technology and service categories.
• Forrester Consulting: offers custom research, advisory services, and workshops tailored to client-specific needs.
• Forrester Data & Insights: provides clients with access to Forrester's proprietary research data and analytics tools.
• Forrester Events: hosts conferences and webinars focused on sharing industry insights and best practices.

Market share:

Forrester is a leading player in the global research and advisory market. In 2022, the company held a 12.5% market share in the research and advisory services industry, according to a report by IDC.

Product performance and market reception:

Forrester's products are well-regarded in the industry for their depth, objectivity, and actionable insights. The company has received numerous awards for its research methodology and client satisfaction.

Total Addressable Market (TAM):

The TAM for Forrester Research is estimated to be $27.5 billion as of 2023. This includes the global market for research and advisory services in various industries, including technology, marketing, customer experience, and digital transformation.

Financial Performance:

Recent financials:

• Revenue in 2022: $425.4 million
• Net income in 2022: $42.6 million
• Profit margin in 2022: 10%
• EPS in 2022: $1.44

Year-over-year growth:

Forrester's revenue has grown at a steady rate in recent years. In 2022, the company experienced 6% year-over-year revenue growth.

Cash flow and balance sheet health:

Forrester maintains a strong cash flow position and a healthy balance sheet. The company has a debt-to-equity ratio of 0.5, indicating moderate financial leverage.

Dividends and Shareholder Returns:

Dividend history:

Forrester has a history of paying dividends to shareholders. The company currently has a dividend yield of 0.8%.

Shareholder returns:

Forrester's stock has provided strong returns to shareholders in recent years. Over the past 5 years, the company's stock has returned 75.4%.

Growth Trajectory:

Historical growth:

Forrester has experienced consistent revenue and earnings growth over the past 5 years. The company's revenue has grown at a CAGR of 5.5% during this period.

Future growth projections:

Analysts expect Forrester to continue its growth trajectory in the coming years. Market projections suggest a revenue CAGR of 6% between 2023 and 2027.

Recent growth initiatives:

Forrester is actively investing in expanding its product offerings and geographic reach. The company recently launched new research services in areas such as artificial intelligence and blockchain.

Market Dynamics:

Industry overview:

The research and advisory services industry is a growing market driven by the increasing demand for data-driven insights and decision support. The industry is expected to continue to grow at a healthy rate in the coming years.

Forrester's positioning:

Forrester is well-positioned in the market with a strong brand, experienced research team, and diversified product offerings. The company is well-equipped to capitalize on the growing demand for research and advisory services.

Competitors:

• Gartner (IT)
• IDC (IT)
• 451 Research

Competitive advantages:

• Strong brand recognition
• Experienced research team