Gartner, Inc. (NYSE: IT), the leading provider of research and analysis on the global information technology industry, today reported results for fourth quarter and full year 2009, and provided its preliminary financial outlook for 2010. Replay of financial results webcast also available.
For fourth quarter 2009, total revenue was $328.8 million, diluted income per share was $0.26, net income was $25.7 million and Normalized EBITDA was $58.0 million. Net income and diluted income per share were negatively impacted by Acquisition and Integration Charges totaling $2.9 million pre-tax, or $0.02 per share after-tax. See "Non-GAAP Financial Measures" for a discussion of Normalized EBITDA and Acquisition and Integration Charges. Excluding the impact of foreign exchange, total revenue decreased 9% year-over-year.
For full year 2009, total revenue was $1,139.8 million, diluted income per share was $0.85, net income was $83.0 million, and Normalized EBITDA was $191.2 million. Net income and diluted income per share were negatively impacted by Acquisition and Integration Charges totaling $2.9 million pre-tax, or $0.02 per share after-tax, recorded in fourth quarter 2009, and were positively impacted by tax benefits totaling $4.7 million, or $0.05 per share, recorded in third quarter 2009. Excluding the impact of foreign exchange, total revenue decreased 8% year-over-year.
Gene Hall, Gartner's chief executive officer, commented, "Our key business metrics continued to improve during the fourth quarter, reflecting both the success of our initiatives to improve sales effectiveness and a better spending environment. We added a record number of new client enterprises, generated record new business, and sequentially increased both client and wallet retention for the first time since the recession began. As a result, we grew contract value by almost $42 million versus the third quarter. We also completed two strategic acquisitions, AMR Research and Burton Group, which we expect will increase our market opportunity and accelerate our growth rate over time.”
Mr. Hall further stated, “During 2009, we maintained research revenue and contract value nearly unchanged from 2008 levels, excluding the impact of foreign exchange. At the same time, our effective cost management enabled us to deliver strong margins and cash flow. The positive momentum in our businesses positions us well to generate double-digit revenue and contract value growth in 2010.”
Business Segment Highlights
Research
- Revenue for fourth quarter 2009 was $195.2 million, down 3% year-over-year excluding the impact of foreign exchange. Gross contribution margin improved approximately 1 percentage point year-over-year to 63%.
- For full year 2009, revenue was $752.5 million, down 1% year-over-year excluding the impact of foreign exchange. Gross contribution margin improved approximately 2 percentage points year-over-year to 65%.
- Contract value was $784.4 million at December 31, 2009, up 6% versus September 30, 2009. Year-over-year, contract value decreased 1% excluding the impact of foreign exchange. Contract value does not include the impact of the recent acquisitions of AMR Research and Burton Group.
- Client and wallet retention rates for fourth quarter 2009 were 78% and 87%, respectively, up from 77% and 85% for third quarter 2009. Client and wallet retention do not include the impact of the recent acquisitions of AMR Research and Burton Group and wallet retention excludes the impact of foreign exchange.
Consulting
- Revenue for fourth quarter 2009 was $81.5 million, down 17% year-over-year excluding the impact of foreign exchange. Gross contribution margin increased 2 percentage points year-over-year to 41%.
- For full year 2009, revenue was $286.8 million, down 15% year-over-year excluding the impact of foreign exchange. Gross contribution margin was 39%.
- Fourth quarter 2009 utilization was 68% and billable headcount was 442. Backlog was $90.9 million at December 31, 2009, up 7% versus September 30, 2009. These metrics do not include the impact of the recent acquisitions of AMR Research and Burton Group.
Events
- Revenue for fourth quarter 2009 was $52.1 million, down 19% year-over-year excluding the impact of foreign exchange. Gross contribution margin increased 1 percentage point year-over-year to 47%.
- For full year 2009, revenue was $100.4 million, down 32% excluding the impact of foreign exchange. Gross contribution margin was 41%.
- During fourth quarter 2009, the Company held 13 events with 15,634 attendees. During full year 2009, the Company held 54 events with 30,610 attendees. These metrics do not include the impact of the recent acquisitions of AMR Research and Burton Group.
Follow the link below for the complete financial results release and link to the replay of the financial results webcast.
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