Forrester Research, Inc. reported a challenging financial performance for the third quarter and the first nine months of fiscal year 2024, with significant declines in revenue and profitability compared to the same periods in 2023. For the three months ended September 30, 2024, total revenues decreased to $102.5 million, down 10% from $113.4 million in the prior year. For the nine months, revenues fell to $324.4 million, an 11% decline from $362.7 million in 2023. The decrease was primarily driven by declines in consulting and events revenues, which dropped 17% and 54%, respectively, due to lower client bookings and reduced sponsorship and ticket sales.

The company's operating expenses also decreased, totaling $103.3 million for the third quarter, down from $108.4 million in 2023, and $323.1 million for the nine months, compared to $354.5 million in the prior year. Despite this reduction, Forrester reported a loss from operations of $(731,000) for the third quarter, contrasting with an income of $5.1 million in the same period last year. The net loss for the third quarter was $(5.8 million), compared to a net income of $2.5 million in 2023. For the nine months, the net loss was $(6.2 million), down from a net income of $3.7 million in the previous year.

In terms of strategic developments, Forrester divested its non-core product line, FeedbackNow, in August 2024 for approximately $17.6 million, which included cash, a note receivable, and a non-marketable equity investment. The sale resulted in a pre-tax loss of $1.8 million. Additionally, the company has undergone workforce reductions, including an 8% cut in May 2023 and a 3% reduction in February 2024, incurring severance costs and restructuring charges.

As of September 30, 2024, Forrester's total current assets were $193.9 million, down from $216.0 million at the end of 2023. Cash and cash equivalents also decreased to $62.8 million from $72.9 million. Total liabilities decreased to $270.9 million, while total stockholders' equity slightly declined to $234.3 million.

The company continues to focus on its three segments: Research, Consulting, and Events, with a notable shift towards the Forrester Decisions product platform, which now represents approximately 78% of overall contract value. Despite the challenges, Forrester anticipates recognizing approximately $346.2 million in revenue from remaining performance obligations over the next 24 months.