Operating Segments

9 Months Ended

Sep. 30, 2021

Segment Reporting [Abstract]

Operating Segments

Note 13 — 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 became available in August 2021. This new portfolio of products helps 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 no longer provides disaggregation of revenue by its research products in the segment tables below (refer to Note 6 – 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.

We evaluate reportable segment performance and allocate resources based on segment revenues and expenses. 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 September 30, 2021
Research revenues	$	79,876		$	—		$	—		$	79,876
Consulting revenues		10,587			26,806			—			37,393
Events revenues		—			—			867			867
Total segment revenues		90,463			26,806			867			118,136
Segment expenses		(28,657	)		(13,061	)		(1,966	)		(43,684	)
Selling, marketing, administrative and other expenses											(64,217	)
Amortization of intangible assets											(3,696	)
Interest expense, other expense, and gains on investments											(1,251	)
Income before income taxes										$	5,288

	Research Segment			Consulting Segment			Events Segment			Consolidated
Three Months Ended September 30, 2020
Research revenues	$	74,445		$	—		$	—		$	74,445
Consulting revenues		11,878			21,123			—			33,001
Events revenues		—			—			1,131			1,131
Total segment revenues		86,323			21,123			1,131			108,577
Segment expenses		(28,645	)		(9,646	)		(1,284	)		(39,575	)
Selling, marketing, administrative and other expenses											(63,778	)
Amortization of intangible assets											(4,722	)
Integration costs											(328	)
Interest expense, other expense, and gains on investments											(1,533	)
Loss before income taxes										$	(1,359	)

	Research Segment			Consulting Segment			Events Segment			Consolidated
Nine Months Ended September 30, 2021
Research revenues	$	235,846		$	—		$	—		$	235,846
Consulting revenues		36,160			80,743			—			116,903
Events revenues		—			—			7,838			7,838
Total segment revenues		272,006			80,743			7,838			360,587
Segment expenses		(88,791	)		(38,237	)		(5,712	)		(132,740	)
Selling, marketing, administrative and other expenses											(188,788	)
Amortization of intangible assets											(11,567	)
Integration costs											(334	)
Interest expense, other expense, and gains on investments											(4,117	)
Income before income taxes										$	23,041

	Research Segment			Consulting Segment			Events Segment			Consolidated
Nine Months Ended September 30, 2020
Research revenues	$	223,746		$	—		$	—		$	223,746
Consulting revenues		36,388			62,076			—			98,464
Events revenues		—			—			6,253			6,253
Total segment revenues		260,134			62,076			6,253			328,463
Segment expenses		(81,979	)		(29,766	)		(5,167	)		(116,912	)
Selling, marketing, administrative and other expenses											(181,463	)
Amortization of intangible assets											(14,147	)
Integration costs											(3,815	)
Interest expense, other expense, and gains on investments											(1,904	)
Income before income taxes										$	10,222