Stockholders' Equity

9 Months Ended

Sep. 30, 2024

Equity [Abstract]

Stockholders' Equity

Note 13 — Stockholders’ Equity

The components of stockholders’ equity are as follows (in thousands):

	Three Months Ended September 30, 2024
	Common Stock									Treasury Stock					Accumulated
	Number of Shares		$0.01ParValue		Additional Paid-in Capital		Retained Earnings			Number of Shares		Cost			Other Comprehensive Loss			Total Stockholders' Equity
Balance at June 30, 2024		24,897	$	249	$	285,395	$	177,300			5,841	$	(219,164	)	$	(6,726	)	$	237,054
Issuance of common stock under    stock plans, including tax effects		195		2		193		—			—		—			—			195
Repurchases of common stock		—		—		—		—			268		(4,969	)		—			(4,969	)
Stock-based compensation expense		—		—		3,603		—			—		—			—			3,603
Net loss		—		—		—		(5,798	)		—		—			—			(5,798	)
Net change in marketable investments,    net of tax		—		—		—		—			—		—			107			107
Foreign currency translation		—		—		—		—			—		—			4,142			4,142
Balance at September 30, 2024		25,092	$	251	$	289,191	$	171,502			6,109	$	(224,133	)	$	(2,477	)	$	234,334

	Three Months Ended September 30, 2023
	Common Stock								Treasury Stock					Accumulated
	Number of Shares		$0.01ParValue		Additional Paid-in Capital		Retained Earnings		Number of Shares		Cost			Other Comprehensive Loss			Total Stockholders' Equity
Balance at June 30, 2023		24,512	$	245	$	269,371	$	175,860		5,332	$	(207,887	)	$	(5,944	)	$	231,645
Issuance of common stock under    stock plans, including tax effects		160		2		282		—		—		—			—			284
Repurchases of common stock		—		—		—		—		105		(3,262	)		—			(3,262	)
Stock-based compensation expense		—		—		4,144		—		—		—			—			4,144
Net income		—		—		—		2,484		—		—			—			2,484
Net change in marketable investments,    net of tax		—		—		—		—		—		—			30			30
Foreign currency translation		—		—		—		—		—		—			(2,435	)		(2,435	)
Balance at September 30, 2023		24,672	$	247	$	273,797	$	178,344		5,437	$	(211,149	)	$	(8,349	)	$	232,890

	Nine Months Ended September 30, 2024
	Common Stock										Treasury Stock					Accumulated
	Number of Shares		$0.01 Par Value		Additional Paid-in Capital			Retained Earnings			Number of Shares		Cost			Other Comprehensive Loss			Total Stockholders' Equity
Balance at December 31, 2023		24,684	$	247	$	278,057		$	177,681			5,437	$	(211,149	)	$	(4,571	)	$	240,265
Issuance of common stock under    stock plans, including tax effects		408		4		(68	)		—			—		—			—			(64	)
Repurchases of common stock		—		—		—			—			672		(12,984	)		—			(12,984	)
Stock-based compensation expense		—		—		11,202			—			—		—			—			11,202
Net loss		—		—		—			(6,179	)		—		—			—			(6,179	)
Net change in marketable investments,    net of tax		—		—		—			—			—		—			131			131
Foreign currency translation		—		—		—			—			—		—			1,963			1,963
Balance at September 30, 2024		25,092	$	251	$	289,191		$	171,502			6,109	$	(224,133	)	$	(2,477	)	$	234,334

	Nine Months Ended September 30, 2023
	Common Stock								Treasury Stock					Accumulated
	Number of Shares		$0.01 Par Value		Additional Paid-in Capital		Retained Earnings		Number of Shares		Cost			Other Comprehensive Loss			Total Stockholders' Equity
Balance at December 31, 2022		24,367	$	244	$	261,766	$	174,631		5,305	$	(207,067	)	$	(7,918	)	$	221,656
Issuance of common stock under    stock plans, including tax effects		305		3		862		—		—		—			—			865
Repurchases of common stock		—		—		—		—		132		(4,082	)		—			(4,082	)
Stock-based compensation expense		—		—		11,169		—		—		—			—			11,169
Net income		—		—		—		3,713		—		—			—			3,713
Net change in marketable investments,    net of tax		—		—		—		—		—		—			52			52
Foreign currency translation		—		—		—		—		—		—			(483	)		(483	)
Balance at September 30, 2023		24,672	$	247	$	273,797	$	178,344		5,437	$	(211,149	)	$	(8,349	)	$	232,890

Equity Plans

Restricted stock unit activity for the nine months ended September 30, 2024 is presented below (in thousands, except per share data):

				Weighted-
				Average
	Number of			Grant Date
	Shares			Fair Value
Unvested at December 31, 2023		999		$	37.66
Granted		876			21.38
Vested		(380	)		38.15
Forfeited		(146	)		31.52
Unvested at September 30, 2024		1,349		$	27.61

Stock option activity for the nine months ended September 30, 2024 is presented below (in thousands, except per share data and contractual term):

				Weighted -		Weighted -
				Average		Average
				Exercise		Remaining		Aggregate
	Number			Price Per		Contractual		Intrinsic
	of Shares			Share		Term (in years)		Value
Outstanding at December 31, 2023		201		$	33.93
Forfeited		(31	)		37.46
Outstanding at September 30, 2024		170		$	33.29		6.59	$	—
Exercisable at September 30, 2024		74		$	33.62		4.22	$	—
Vested and expected to vest at September 30, 2024		170		$	33.29		6.59	$	—

No stock options were granted or exercised during the three and nine months ended September 30, 2024.

Stock-Based Compensation

Forrester recognizes the fair value of stock-based compensation over the requisite service period of the individual grantee, which generally equals the vesting period. Stock-based compensation was recorded in the following expense categories in the Consolidated Statements of Operations (in thousands):

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2024		2023		2024		2023
Cost of services and fulfillment	$	2,142	$	2,449	$	6,777	$	6,505
Selling and marketing		528		790		1,685		2,094
General and administrative		933		905		2,740		2,570
Total	$	3,603	$	4,144	$	11,202	$	11,169

Forrester utilizes the Black-Scholes valuation model for estimating the fair value of options granted under the equity incentive plans and shares subject to purchase under the employee stock purchase plan, which were valued using the following assumptions:

	Three Months Ended									Nine Months Ended
	September 30,									September 30,
	2024			2023						2024			2023
	Employee Stock Purchase Plan			Equity Incentive Plans			Employee Stock Purchase Plan			Employee Stock Purchase Plan			Equity Incentive Plans			Employee Stock Purchase Plan
Average risk-free interest rate		4.55	%		4.27	%		5.51	%		4.55	%		4.27	%		5.51	%
Expected dividend yield		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%
Expected life	0.5 Years			4.75 Years			0.5 Years			0.5 Years			4.75 Years			0.5 Years
Expected volatility		38	%		43	%		35	%		38	%		43	%		35	%
Weighted average fair value	$	4.86		$	14.24		$	7.90		$	4.86		$	14.24		$	7.90

Treasury Stock

As of September 30, 2024, Forrester’s Board of Directors had authorized an aggregate $610.0 million to purchase common stock under its stock repurchase program, which includes an additional $25.0 million authorized in April 2024. The shares repurchased may be used, among other things, in connection with Forrester’s equity incentive and purchase plans. During the three and nine months ended September 30, 2024, the Company repurchased approximately 0.3 million shares and 0.7 million shares of common stock at an aggregate cost of approximately $5.0 million and $13.0 million, respectively. During each of the three and nine months ended September 30, 2023, the Company repurchased approximately 0.1 million shares of common stock at an aggregate cost of approximately $3.3 and $4.1 million, respectively. From the inception of the program through September 30, 2024, the Company repurchased 17.8 million shares of common stock at an aggregate cost of $527.1 million.