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Gartner (IT) Delivers Impressive Q1 Results, Raises Full-Year Guidance
Published on September 24, 2024 | Ticker: IT

Gartner, Inc. (NYSE: IT), a leading global research and advisory firm, has reported its first-quarter 2024 financial results, showcasing strong performance and raising its full-year guidance. The company's resilience in a complex environment is evident, as it continues to provide valuable insights and guidance to its clients worldwide.

Financials

In the first quarter of 2024, Gartner delivered impressive financial results, with revenues reaching $1.5 billion, up 5% compared to the same period in 2023. The company's net income for the quarter stood at $210.5 million, while its annual net income for the fiscal year 2023 was $882.5 million. Gartner's annual revenue for the fiscal year 2023 was $5.9 billion, and its annual operating cash flow and free cash flow were $1.2 billion and $1.1 billion, respectively.

Segment Performance

The company's Research segment, which is its largest and most profitable business, continued to perform well, with revenues growing 4% year-over-year in the first quarter. Gartner's Conferences segment also saw an 8% increase in revenues during the same period, driven by the successful launch of two new conferences. The Consulting segment, which helps clients execute their strategic initiatives, reported a 6% revenue increase in the first quarter.

Gartner's geographic diversification is a key strength, with the company generating revenue from the United States and Canada (65%), Europe, Middle East, and Africa (23%), and Other International regions (12%). This global footprint allows Gartner to serve clients across various industries and functions, providing them with the insights and guidance they need to navigate the complex business landscape.

The company's strong performance is a testament to its ability to deliver actionable, objective insights that drive smarter decisions and stronger performance for its clients. Gartner's focus on creating value for its customers, coupled with its innovative product offerings and world-class client service, has been instrumental in driving its success.

Recent Developments

One of the highlights of Gartner's first-quarter results was the 10% growth in contract value from enterprise function leaders across its Global Technology Sales (GTS) and Global Business Sales (GBS) segments. This growth demonstrates the strong demand for Gartner's services, as executives and their teams seek guidance on mission-critical priorities.

The company's Conferences segment also showed promising momentum, with the launch of two new conferences in the first quarter. Gartner's strategy to expand its conference portfolio to serve every major constituency and geography is paying off, as the company continues to deliver valuable insights to its highly engaged audience.

Gartner's Consulting segment, which complements its Research business, also reported solid performance, with a 6% increase in revenues. The segment's labor-based revenue grew 13%, highlighting the strong demand for Gartner's expertise in executing strategic initiatives.

Liquidity

The company's balance sheet and liquidity position remain strong, with $1.2 billion in cash and cash equivalents as of March 31, 2024. Gartner's free cash flow conversion from GAAP net income was 135%, underscoring its ability to generate significant cash flow to support its growth initiatives and return capital to shareholders.

Outlook

Looking ahead, Gartner has raised its full-year guidance, reflecting the strong performance in the first quarter and the company's confidence in its ability to navigate the current macroeconomic environment. The company now expects full-year 2024 revenue of at least $6.2 billion, EBITDA of at least $1.5 billion, and adjusted EPS of at least $10.90.

Gartner's resilience and adaptability in the face of global uncertainties have been instrumental in its continued success. The company's focus on delivering exceptional value to its clients, coupled with its innovative product offerings and strong execution, positions it well for long-term growth and value creation for its shareholders.

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