Operating Segments

6 Months Ended

Jun. 30, 2021

Segment Reporting [Abstract]

Operating Segments

Note 12 — Operating Segments

The Company’s operations are grouped into three segments: Research, Consulting, and Events. These segments are based on the management structure of the Company and how management uses financial information to evaluate performance and determine how to allocate resources. The Company’s products and services are delivered through each segment as described below. Additionally, the tables below include the reclassification of revenues for the components of the Company’s CV subscription research products, as described further in Note 1: Interim Consolidated Financial Statements.

The Research segment includes the revenues from all of the Company’s research products as well as consulting revenues from advisory services (such as speeches and advisory days) delivered by the Company’s research organization. Research segment costs include the cost of the organizations responsible for developing and delivering these products in addition to the costs of the product management organization responsible for product pricing and packaging, and the launch of new products. In May 2021, the Company announced the launch of a new research portfolio called Forrester Decisions, which will be available in August 2021. This new portfolio of products will help executives, functional leaders, and their teams, across technology, marketing, customer experience, sales, and product management, plan ​and pursue initiatives for driving growth. The Forrester Decisions product combines the research, frameworks, models, and methodologies of the Company’s Forrester Research and SiriusDecisions Research product offerings, as well as features of the Company’s Connect and Analytics products. In connection with the launch of Forrester Decisions, the Company will no longer provide disaggregation of revenue by its research products in the segment tables below (refer to Note 5 – Revenue and Related Matters for disclosure of disaggregated revenue).

The Consulting segment includes the revenues and the related costs of the Company’s project consulting organization. The project consulting organization delivers a majority of the Company’s project consulting revenue and certain advisory services.

The Events segment includes the revenues and the costs of the organization responsible for developing and hosting in-person and virtual events.

Segment expenses include the direct expenses of each segment organization and exclude selling and marketing expenses, general and administrative expenses, stock-based compensation expense, depreciation expense, adjustments to incentive bonus compensation from target amounts, amortization of intangible assets, interest and other expense, and gains on investments. The accounting policies used by the segments are the same as those used in the consolidated financial statements.

The Company provides information by reportable segment in the tables below (in thousands):

	Research Segment			Consulting Segment			Events Segment			Consolidated
Three Months Ended June 30, 2021
Research revenues	$	81,002		$	—		$	—		$	81,002
Consulting revenues		12,842			28,118			—			40,960
Events revenues		—			—			6,708			6,708
Total segment revenues		93,844			28,118			6,708			128,670
Segment expenses		(29,417	)		(12,851	)		(3,032	)		(45,300	)
Selling, marketing, administrative and other expenses											(66,103	)
Amortization of intangible assets											(3,968	)
Integration costs											(216	)
Interest expense, other expense, and gains on investments											(1,267	)
Income before income taxes										$	11,816

	Research Segment			Consulting Segment			Events Segment			Consolidated
Three Months Ended June 30, 2020
Research revenues	$	75,034		$	—		$	—		$	75,034
Consulting revenues		11,928			21,547			—			33,475
Events revenues		—			—			5,032			5,032
Total segment revenues		86,962			21,547			5,032			113,541
Segment expenses		(25,870	)		(10,099	)		(3,206	)		(39,175	)
Selling, marketing, administrative and other expenses											(57,810	)
Amortization of intangible assets											(4,713	)
Integration costs											(612	)
Interest expense, other expense, and gains on investments											844
Income before income taxes										$	12,075

	Research Segment			Consulting Segment			Events Segment			Consolidated
Six Months Ended June 30, 2021
Research revenues	$	155,970		$	—		$	—		$	155,970
Consulting revenues		25,573			53,937			—			79,510
Events revenues		—			—			6,971			6,971
Total segment revenues		181,543			53,937			6,971			242,451
Segment expenses		(60,134	)		(25,176	)		(3,746	)		(89,056	)
Selling, marketing, administrative and other expenses											(124,571	)
Amortization of intangible assets											(7,871	)
Integration costs											(334	)
Interest expense, other expense and gains on investments											(2,866	)
Income before income taxes										$	17,753

	Research Segment			Consulting Segment			Events Segment			Consolidated
Six Months Ended June 30, 2020
Research revenues	$	149,301		$	—		$	—		$	149,301
Consulting revenues		24,510			40,953			—			65,463
Events revenues		—			—			5,122			5,122
Total segment revenues		173,811			40,953			5,122			219,886
Segment expenses		(53,334	)		(20,120	)		(3,883	)		(77,337	)
Selling, marketing, administrative and other expenses											(117,685	)
Amortization of intangible assets											(9,425	)
Integration costs											(3,487	)
Interest expense, other income, and gains on investments											(371	)
Income before income taxes										$	11,581