Is Forrester's New Research Platform Facing Headwinds? An Analyst's Perspective On Q2 Revenue And Sales Force Improvement

Barrington Research analyst reiterated an Outperform rating on the shares of Forrester Research Inc FORR with a price target of $32.

Forrester Research plans to release its Q2/23 earnings results on Thursday, July 27, after the market close.

The analyst expects Forrester to report 2Q23 non-GAAP EPS of $0.61, representing a 61% Y/Y decline and less than the FactSet consensus forecast of $0.73.

The analyst expects Forrester to report 2Q23 adjusted EBITDA of $19.1 million, which is 15% less than the FactSet consensus forecast of $22.4 million.

The analyst’s estimate for 2Q23 revenue is $126.4 million, which is 2% less than the FactSet consensus forecast of $129.0 million.

There is a possibility of a flat to slightly negative year-over-year change in contract value (CV) in 2Q23 on softness in research subscription bookings, said the analyst.

The company’s weak research subscription bookings in 1Q were due to economic headwinds, client losses, and longer sales cycles for Forrester Decisions (FD), the company’s new research platform. The headwinds are expected in 2Q23 as well.

Important points to be noted in the earnings call are updates on client demand for the research subscription business, notably the Forrester Decisions (FD) bundle, and progress toward improving the sales force, the analyst listed.

Price Action: FORR shares are trading higher by 0.19% at $32.18 on the last check Monday.