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NEWS11 May 2009

Research performance drives Gartner growth

Financials

Four percent Q1 revenue increase for research arm, but consulting figures drop

US— IT market analyst Gartner has reported a 4% increase in research revenue for the first quarter of 2009.

The figure, which does not include the impact of foreign exchange rates, was the driving force behind a 1% increase in group-wide year-on-year revenues, the firm said.

The research arm’s revenue for the period was $187.7m, but when foreign exchange rates were factored in, the figure was down 2% from 2008’s total of $191.4m.

Contract values were up 2% to $760.7m compared to last year, but lower than in the last set of results in the fourth quarter of 2008 when they were a record $843.3m.

Client and wallet retention rates were 80% and 90% respectively, compared to 82% and 97% in Q1 2008.

Gartner CEO Gene Hall said: “We continued to grow our research revenue year-over-year excluding the impact of foreign exchange. This growth, coupled with tight cost controls, generated significantly increased earnings and higher cash flow despite the challenging global economic environment.”

The consulting division saw a 4% drop in revenue, excluding the impact of foreign exchange rates, to $70.3m, or 10% on a reported basis.

Looking ahead, Hall said: “I remain confident in our prospects for long-term double digit revenue and earnings growth, once global economic activity returns to more levels.”

Author: James Verrinder

Related links:

Research revenue jumps 16% at Gartner

@RESEARCH LIVE

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