NEWS10 February 2010

Forrester plans investment after ‘beating plan’ for 2009

Financials North America

US— Forrester Research has reported revenue drops in the fourth quarter and for 2009 as a whole, but chairman and CEO George Colony said the firm finished the year ahead of target and was moving into 2010 with a view to investing for growth.

Total revenue for fourth quarter was down 2% to $61.5m while full-year revenue declined 3% to $233.4m. Research revenue during Q4 fell 1% to $40.7m, but was up 1.5% over 12 months to $157.7m.

Colony (pictured) said: “Forrester’s performance accelerated in the fourth quarter, capping a year in which we beat our plan. We met or exceeded our financial targets including revenue, operating margin and EPS and ended the year with client and dollar retention approaching pre-recession levels.”

Looking ahead to the first quarter of 2010, the analyst firm has predicted total revenues of approximately $57.5m to $59.5m. For the full year, Forrester said it expects to see total revenue of between $240 and $248m.

Colony added: “Coming out of the 2009 recession, we believe that now is the time to expand the sales force, invest in the infrastructure of the business and enhance our client-facing technology. These investments will dampen the operating margins in 2010 as reflected in our full-year guidance.”