10-Q

FORM 10-Q

(MARK ONE)

    x     QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934.

FOR THE QUARTERLY PERIOD ENDED June 30, 2012

OR

    ¨     TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934.

COMMISSION FILE NUMBER: 000-21433

FORRESTER RESEARCH, INC.

(Exact name of registrant as specified in its charter)

DELAWARE	04-2797789
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification Number)
60 Acorn Park Drive CAMBRIDGE, MASSACHUSETTS	02140
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (617) 613- 6000

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  x    No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer	¨	Accelerated filer	x
Non-accelerated filer	¨  (Do not check if a smaller reporting company)	Smaller reporting company	¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨    No  x

As of August 6, 2012, 22,418,000 shares of the registrant’s common stock were outstanding.

FORRESTER RESEARCH, INC.

INDEX TO FORM 10-Q

	PAGE
PART I. FINANCIAL INFORMATION		3
ITEM 1. Financial Statements		3
Consolidated Balance Sheets as of June 30, 2012 and December 31, 2011 (Unaudited)		3
Consolidated Statements of Income for the Three and Six Months Ended June  30, 2012 and 2011 (Unaudited)		4
Consolidated Statements of Comprehensive Income for the Three and Six Months Ended June 30, 2012 and 2011 (Unaudited)		5
Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2012 and 2011 (Unaudited)		6
Notes to Consolidated Financial Statements		7
ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations		15
ITEM 3. Quantitative and Qualitative Disclosures About Market Risk		21
ITEM 4. Controls and Procedures		21
PART II. OTHER INFORMATION		21
ITEM 1A. Risk Factors		21
ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds		21
ITEM 6. Exhibits		22

2

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

FORRESTER RESEARCH, INC.

CONSOLIDATED BALANCE SHEETS

(In thousands, except per share data, unaudited)

	June 30, 2012			December 31, 2011
ASSETS
Current Assets:
Cash and cash equivalents	$	87,663		$	81,047
Marketable investments (Note 3)		148,777			136,991
Accounts receivable, net		47,545			81,378
Deferred commissions		9,370			12,010
Prepaid expenses and other current assets		24,934			25,935
Total current assets		318,289			337,361
Long-term marketable investments (Note 3)		9,686			9,565
Property and equipment, net		48,840			50,448
Goodwill		71,388			71,543
Intangible assets, net		9,029			10,317
Other assets		11,689			8,344
Total assets	$	468,921		$	487,578
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts payable	$	982		$	1,223
Accrued expenses and other current liabilities		28,775			30,153
Deferred revenue		134,550			147,887
Total current liabilities		164,307			179,263
Non-current liabilities		17,444			17,580
Total liabilities		181,751			196,843
Commitments
Stockholders’ Equity (Note 7):
Preferred stock, $.01 par value Authorized - 500 shares, issued and outstanding - none		—			—
Common stock, $.01 par value Authorized - 125,000 shares Issued - 31,255 and 30,962 as of June 30, 2012 and December 31, 2011, respectively Outstanding- 22,530 and 22,747 as of June 30, 2012 and December 31, 2011, respectively		313			310
Additional paid-in capital		382,494			373,591
Retained earnings		109,256			104,662
Treasury stock- 8,725 and 8,215 as of June 30, 2012 and December 31, 2011, respectively, at cost		(198,052	)		(181,000	)
Accumulated other comprehensive loss		(6,841	)		(6,828	)
Total stockholders’ equity		287,170			290,735
Total liabilities and stockholders’ equity	$	468,921		$	487,578

The accompanying notes are an integral part of these consolidated financial statements.

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FORRESTER RESEARCH, INC.

CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except per share data, unaudited)

	Three Months Ended June 30,				Six Months Ended June 30,
	2012		2011		2012		2011
Revenues:
Research services	$	51,072	$	47,341	$	100,832	$	91,888
Advisory services and other		28,021		26,109		48,521		47,304
Total revenues		79,093		73,450		149,353		139,192
Operating expenses:
Cost of services and fulfillment		29,828		28,024		56,766		53,522
Selling and marketing		26,267		26,009		51,400		51,474
General and administrative		8,645		8,330		18,256		17,248
Depreciation		2,255		945		4,248		1,915
Amortization of intangible assets		586		526		1,200		1,219
Reorganization costs		51		—		1,394		—
Total operating expenses		67,632		63,834		133,264		125,378
Income from operations		11,461		9,616		16,089		13,814
Other income (expense), net		130		4		539		(105	)
Gains on investments, net		84		58		143		640
Income before income taxes		11,675		9,678		16,771		14,349
Income tax provision		3,906		4,208		5,821		5,968
Net income	$	7,769	$	5,470	$	10,950	$	8,381
Basic income per common share	$	0.34	$	0.24	$	0.48	$	0.37
Diluted income per common share	$	0.34	$	0.24	$	0.47	$	0.36
Basic weighted average common shares outstanding		22,583		22,684		22,660		22,698
Diluted weighted average common shares outstanding		23,023		23,203		23,098		23,227
Cash dividends declared per common share	$	0.14	$	—	$	0.28	$	—

The accompanying notes are an integral part of these consolidated financial statements.

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FORRESTER RESEARCH, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In thousands, unaudited)

	Three Months Ended June 30,					Six Months Ended June 30,
	2012			2011		2012			2011
Net income	$	7,769		$	5,470	$	10,950		$	8,381
Other comprehensive income (loss), net of taxes:
Cumulative translation adjustments		(1,013	)		627		(332	)		2,891
Changes in market value of investments:
Unrealized gain, net of taxes of $26 and $94 for the three months ended June 30, 2012 and 2011, and $166 and $3 for the six months ended June 30, 2012 and 2011		17			205		333			208
Less: reclassification adjustment for net gains realized in net income, net of taxes of $2 for the three months ended June 30, 2012, and $10 and $3 for the six months ended June 30, 2012 and 2011		(1	)		—		(14	)		(4	)
Net change in market value of investments		16			205		319			204
Other comprehensive income (loss)		(997	)		832		(13	)		3,095
Comprehensive income	$	6,772		$	6,302	$	10,937		$	11,476

The accompanying notes are an integral part of these consolidated financial statements.

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FORRESTER RESEARCH, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands, unaudited)

	Six Months Ended June 30,
	2012			2011
Cash flows from operating activities:
Net income	$	10,950		$	8,381
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		4,248			1,915
Amortization of intangible assets		1,200			1,219
Net gains from investments		(143	)		(640	)
Deferred income taxes		(4,291	)		1,754
Stock-based compensation		2,512			1,681
Amortization of premium on investments		1,460			1,683
Foreign currency losses		239			1,011
Changes in assets and liabilities, net of acquisitions
Accounts receivable		33,661			27,160
Deferred commissions		2,647			1,834
Prepaid expenses and other current assets		234			(590	)
Accounts payable		(244	)		(1,044	)
Accrued expenses and other liabilities		(130	)		(2,699	)
Deferred revenue		(12,944	)		(3,522	)
Net cash provided by operating activities		39,399			38,143
Cash flows from investing activities:
Acquisitions		—			(7,031	)
Purchases of property and equipment		(3,245	)		(26,100	)
Purchases of marketable investments		(65,713	)		(48,361	)
Proceeds from sales and maturities of marketable investments		52,845			31,624
Change in restricted cash		946			11,175
Other investing activity		124			247
Net cash used in investing activities		(15,043	)		(38,446	)
Cash flows from financing activities:
Dividends paid on common stock		(6,356	)		—
Repurchases of common stock		(17,052	)		(13,395	)
Proceeds from issuance of common stock under employee equity incentive plans		6,634			6,425
Excess tax benefits from stock-based compensation		332			332
Payment of deferred acquisition consideration		(739	)		—
Net cash used in financing activities		(17,181	)		(6,638	)
Effect of exchange rate changes on cash and cash equivalents		(559	)		3,199
Net increase (decrease) in cash and cash equivalents		6,616			(3,742	)
Cash and cash equivalents, beginning of period		81,047			86,927
Cash and cash equivalents, end of period	$	87,663		$	83,185

The accompanying notes are an integral part of these consolidated financial statements.

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FORRESTER RESEARCH, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Note 1 — Interim Consolidated Financial Statements

Basis of Presentation

The accompanying unaudited interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for reporting on Form 10-Q. Accordingly, certain information and footnote disclosures required for complete financial statements are not included herein. The year-end balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America. It is recommended that these financial statements be read in conjunction with the consolidated financial statements and related notes that appear in the Forrester Research, Inc. (“Forrester”) Annual Report on Form 10-K for the year ended December 31, 2011. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation of the financial position, results of operations, and cash flows as of the dates and for the periods presented have been included. The results of operations for the three and six months ended June 30, 2012 may not be indicative of the results for the year ending December 31, 2012, or any other period.

Note 2 — Acquisition

On May 12, 2011, Forrester acquired Springboard Research (“Springboard”), a provider of research and advisory services focused on Asia Pacific and emerging markets. Springboard was a former division of Knowledge Platform, Inc. The acquisition of the Springboard business further supports Forrester’s role-based strategy and expands Forrester’s coverage in the Asia Pacific region. The total purchase price was approximately $9.0 million, of which approximately $6.7 million was paid on the acquisition date and $2.3 million (the “Holdback”) is payable at various times through June 1, 2013, subject to possible reduction to satisfy indemnification claims. Of the $2.3 million Holdback, up to $0.9 million was contingent for the retention of certain employees for a period of time and for the extension of a certain lease. As of May 2012, both contingency provisions have elapsed with the full amount payable to Knowledge Platform. As of June 30, 2012, $1.2 million of the Holdback had been paid by the Company and $1.1 million of the Holdback remains in accrued expenses in the Consolidated Balance Sheet. The results of Springboard, which were not material to the consolidated financial statements, have been included in Forrester’s consolidated financial statements since May 12, 2011 in the Business Technology segment. Pro forma financial information has not been provided as it is not material to the consolidated results of operations.

A summary of the purchase price allocation for Springboard is as follows (in thousands):

Assets:
Cash	$	85
Accounts receivable		561
Other current assets		285
Goodwill		3,695
Intangible assets		4,815
Total assets		9,441
Liabilities:
Accrued expenses		160
Deferred revenue		312
Total liabilities		472
Net assets acquired	$	8,969

Approximately $2.1 million of the goodwill is deductible for tax purposes. The Company believes the goodwill reflects its expectations of synergistic revenue opportunities from the acquisition and the value of the acquired workforce.

Intangible assets are amortized according to the expected cash flows to be received. The following are the identifiable intangible assets acquired and their respective weighted average lives (dollars in thousands):

	Assigned Value		Useful Life (in years)
Customer relationships	$	3,605		7.5
Research content		1,080		1.5
Backlog		130		1.0
	$	4,815

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Note 3 — Marketable Investments

The following table summarizes the Company’s marketable investments (in thousands):

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Market Value
June 30, 2012
Available-for-sale securities
State and municipal obligations	$	14,093	$	7	$	(4	)	$	14,096
Federal agency and corporate obligations		134,539		253		(111	)		134,681
Total short-term available-for-sale securities		148,632		260		(115	)		148,777
ARS, long-term		11,000		—		(1,314	)		9,686
Total available-for-sale securities	$	159,632	$	260	$	(1,429	)	$	158,463
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Market Value
December 31, 2011
Available-for-sale securities
State and municipal obligations	$	9,485	$	9	$	(12	)	$	9,482
Federal agency and corporate obligations		127,717		127		(335	)		127,509
Total short-term available-for-sale securities		137,202		136		(347	)		136,991
ARS, long-term		11,000		—		(1,435	)		9,565
Total available-for-sale securities	$	148,202	$	136	$	(1,782	)	$	146,556

Realized gains and losses on securities are included in earnings and are determined using the specific identification method. Realized gains or losses on the sale of the Company’s federal agency, state, municipal and corporate obligations were not material in the three and six months ended June 30, 2012 or 2011.

The following table summarizes the maturity periods of the marketable securities in the Company’s portfolio as of June 30, 2012. In February 2008, certain auction rate securities (“ARS”) that Forrester held experienced failed auctions that limited the liquidity of these securities. These auction failures have continued and based on current market conditions, it is likely that auction failures will continue. The following table reflects the ARS at their contractual maturity dates of between 2024 and 2034 (in thousands).

	FY 2012		FY2013		FY2014		Thereafter		Total
State and municipal obligations	$	2,001	$	3,969	$	8,126	$	—	$	14,096
Federal agency and corporate obligations		24,797		48,514		45,274		16,096		134,681
ARS		—		—		—		9,686		9,686
Total	$	26,798	$	52,483	$	53,400	$	25,782	$	158,463

The following table shows the gross unrealized losses and market value of Forrester’s available-for-sale securities with unrealized losses that are not deemed to be other-than-temporary, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position (in thousands):

	As of June 30, 2012
	Less Than 12 Months				12 Months or Greater
	Market Value		Unrealized Losses		Market Value		Unrealized Losses
State and municipal bonds	$	5,410	$	4	$	—	$	—
Federal agency and corporate obligations		38,904		109		4,032		2
ARS		—		—		9,686		1,314
Total	$	44,314	$	113	$	13,718	$	1,316

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	As of December 31, 2011
	Less Than 12 Months				12 Months or Greater
	Market Value		Unrealized Losses		Market Value		Unrealized Losses
State and municipal bonds	$	2,763	$	9	$	1,107	$	3
Federal agency and corporate obligations		68,962		313		2,043		22
ARS		—		—		9,565		1,435
Total	$	71,725	$	322	$	12,715	$	1,460

Fair Value

The Company measures certain financial assets at fair value on a recurring basis, including cash equivalents and available-for-sale securities. The fair values of these financial assets have been classified as Level 1, 2 or 3 within the fair value hierarchy as described in the accounting standards for fair value measurements.

Level 1 — Fair value based on quoted prices in active markets for identical assets or liabilities.

Level 2 — Fair value based on inputs other than Level 1 inputs that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3 — Fair value based on unobservable inputs that are supported by little or no market activity and such inputs are significant to the fair value of the assets or liabilities.

The following table represents the Company’s fair value hierarchy for its financial assets (cash equivalents and investments) measured at fair value on a recurring basis as of June 30, 2012 and December 31, 2011 (in thousands):

	As of June 30, 2012
	Level 1		Level 2		Level 3		Total
Money market funds (1)	$	4,704	$	—	$	—	$	4,704
State and municipal obligations		—		14,096		—		14,096
Federal agency and corporate obligations (2)		—		141,546		—		141,546
ARS		—		—		9,686		9,686
Total	$	4,704	$	155,642	$	9,686	$	170,032
	As of December 31, 2011
	Level 1		Level 2		Level 3		Total
Money market funds (1)	$	5,786	$	—	$	—	$	5,786
State and municipal obligations		—		9,482		—		9,482
Federal agency and corporate obligations (2)		—		128,509		—		128,509
ARS		—		—		9,565		9,565
Total	$	5,786	$	137,991	$	9,565	$	153,342

(1) Included in cash and cash equivalents.

(2) $6.9 million and $1.0 million included in cash and cash equivalents at June 30, 2012 and December 31, 2011, respectively, as original maturities at the time of purchase were 90 days or less.

Level 2 assets consist of the Company’s entire portfolio of federal, state, municipal and corporate bonds, excluding those municipal bonds described below with an auction reset feature. Level 2 assets have been initially valued at the transaction price and subsequently valued, at the end of each reporting period, typically utilizing third party pricing services or other market observable data. The pricing services utilize industry standard valuation methods, including both income and market based approaches and observable market inputs to determine value. These observable market inputs include reportable trades, benchmark yields, credit spreads, broker/dealer quotes, bids, offers, current spot rates and other industry and economic events.

Level 3 assets consist entirely of municipal bonds with an auction reset feature (ARS). Prior to 2008, the fair value of the ARS investments approximated par value due to the frequent resets through the auction process. While the Company continues to receive interest income on its ARS investments at each interest rate reset date (which occurs at either seven or 35 day intervals for each security), these investments trade infrequently and therefore do not have a readily determinable market value. Interest rates on the securities ranged from 0.11% to 0.46% and 0.19% to 0.60% during the six months ended June 30, 2012 and 2011, respectively. The Company values the ARS using a discounted cash flow model that includes unobservable inputs including estimates of interest rates, discounts rates and expected holding periods of the securities, which is considered a Level 3 valuation. Unobservable inputs included in the valuation as of June 30, 2012 included a weighted average interest rate of 0.31%, a weighted average discount rate of 3.07% and a weighted average holding period of 5 years. The valuation resulted in an unrealized loss recorded in other comprehensive loss in the Consolidated Balance Sheets of $1.3 million and $1.4 million at June 30, 2012 and December 31, 2011, respectively. The Company believes that the loss is temporary due to the strong underlying credit rating of the securities and the fact that the Company does not intend

9

to sell the securities and is not likely to be required to sell the securities. The assumptions used in valuing the ARS are volatile and subject to change as the underlying sources of these assumptions and market conditions change. Significant increases or decreases in any of the valuation assumptions in isolation would result in a significant change in the fair value.

The following table provides a summary of changes in fair value of the Company’s Level 3 financial assets for the six months ended June 30, 2012 and 2011 (in thousands):

	ARS
Balance at December 31, 2011		9,565
Sales		—
Total unrealized gains (losses):
Included in other comprehensive income (loss)		121
Balance at June 30, 2012	$	9,686
	ARS
Balance at December 31, 2010		9,117
Sales		—
Total unrealized gains (losses):
Included in other comprehensive income (loss)		142
Balance at June 30, 2011	$	9,259

Note 4 — Non-Marketable Investments

At June 30, 2012 and December 31, 2011, the carrying value of the Company’s non-marketable investments, which were composed primarily of interests in technology-related private equity funds, was $7.8 million and $7.9 million, respectively.

One of the Company’s investments, with a book value of $1.5 million at both June 30, 2012 and December 31, 2011, is being accounted for using the cost method and, accordingly, is valued at cost unless an other-than-temporary impairment in its value occurs. The other investments are being accounted for using the equity method as the investments are limited partnerships and the Company has an ownership interest in excess of 5% and, accordingly, the Company records its share of the investee’s operating results each period. The Company recorded a gain from its non-marketable investments of $0.1 million and $0.1 million during the three months ended June 30, 2012 and 2011, respectively, and $0.1 million and $0.6 million during the six months ended June 30, 2012 and 2011, respectively, which are included in gains on investments, net in the Consolidated Statements of Income.

Note 5 — Reorganization

The following table rolls forward the activity in the reorganization accrual for the six months ended June 30, 2012 (in thousands):

	Workforce Reduction
Accrual at December 31, 2011	$	375
Additions		1,394
Cash payments		(1,567	)
Accrual at June 30, 2012	$	202

In the first quarter of 2012 the Company realigned its sales force to simplify the selling process to its customers and to increase the productivity of the sales organization. The Company incurred approximately $0.4 million of severance costs in the fourth quarter of 2011 for three sales employees located outside of the U.S. based on statutory termination benefits in their country of employment and the fact that termination was considered probable at December 31, 2011. The Company incurred an additional $1.4 million of severance and related costs in the six months ended June 30, 2012 for the termination of 17 additional employees related to the sales reorganization and other cost reduction initiatives. The remaining accrual at June 30, 2012 is expected to be paid by the end of 2012.

Note 6 — Net Income Per Common Share

Basic net income per common share is computed by dividing net income by the basic weighted average number of common shares outstanding during the period. Diluted net income per common share is computed by dividing net income by the diluted weighted average number of common shares and common equivalent shares outstanding during the period. The weighted average number of common equivalent shares outstanding has been determined in accordance with the treasury-stock method. Common equivalent shares consist of common stock issuable on the exercise of outstanding options and vesting of restricted stock units when dilutive.

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Basic and diluted weighted average common shares are as follows (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2012		2011		2012		2011
Basic weighted average common shares outstanding		22,583		22,684		22,660		22,698
Weighted average common equivalent shares		440		519		438		529
Diluted weighted average common shares outstanding		23,023		23,203		23,098		23,227
Options excluded from diluted weighted average share calculation as effect would have been anti-dilutive		559		121		483		89

Note 7 — Stockholders’ Equity

Equity Plans

Stock option activity for the six months ended June 30, 2012 is presented below (in thousands, except per share data):

	Number of Shares			Weighted - Average Exercise Price Per Share		Weighted - Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value
Outstanding at December 31, 2011		2,130		$	27.46
Granted		359			33.90
Exercised		(262	)		25.29
Forfeited		(47	)		31.23
Outstanding at June 30, 2012		2,180		$	28.70		6.72	$	11,726
Exercisable at June 30, 2012		1,253		$	25.90		5.11	$	10,080

Restricted stock unit activity for the six months ended June 30, 2012 is presented below (in thousands, except per share data):

	Number of Shares			Weighted- Average Grant Date Fair Value
Unvested at December 31, 2011		267		$	29.93
Granted		179			33.88
Vested or settled		(49	)		27.60
Forfeited		(57	)		26.57
Unvested at June 30, 2012		340		$	32.92

Stock-Based Compensation

Forrester recognizes the fair value of stock-based compensation in net income 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 thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2012		2011		2012		2011
Cost of services and fulfillment	$	725	$	32	$	1,378	$	647
Selling and marketing		207		53		431		392
General and administrative		257		158		703		642
Total	$	1,189	$	243	$	2,512	$	1,681

In 2009, the Company issued to its employees 95,496 performance-based RSUs. The vesting of the RSUs was subject to performance criteria and would vest at 100% or 40% on April 1, 2012, or the RSUs could be forfeited, depending on whether specified revenue growth and certain operating margin targets related to full year 2011 performance were achieved. Based on 2011 financial performance, 40% of the then outstanding RSUs vested on April 1, 2012. Compensation expense in 2010 and 2009 was recognized based on an estimate of 100% vesting of the RSUs and in the second quarter of 2011 the Company modified it assessment of vesting to the 40% level.

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In 2010, the Company issued to its employees approximately 63,000 performance-based RSUs. The vesting of the RSUs is subject to performance criteria and will vest at 100% or 40% on April 1, 2013, or the RSUs could be forfeited, depending on whether specified revenue growth and certain operating margin targets related to full year 2012 performance are achieved. Compensation expense through the third quarter of 2011 was recognized based on an estimate of 100% vesting of the RSUs and in the fourth quarter of 2011 the Company modified its assessment of vesting to a zero percent level. The Company continues to utilize a zero percent vesting estimate in 2012. In addition, Forrester issued approximately 42,000 RSUs during 2010 that generally vest equally over a four-year period.

In 2011, the Company issued to its employees approximately 71,000 performance-based RSUs. The vesting of the RSUs is subject to performance criteria and will vest at 100% or 40% on April 1, 2014, or the RSUs could be forfeited, depending on whether specified revenue growth and certain operating margin targets related to full year 2013 performance are achieved. Compensation expense through the third quarter of 2011 was recognized based on an estimate of 100% vesting of the RSUs and in the fourth quarter of 2011 the Company modified its assessment of vesting to a zero percent level. The Company continues to utilize a zero percent vesting estimate in 2012. In addition, Forrester issued approximately 48,000 RSUs during 2011 that generally vest equally over a four-year period.

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

	Three Months Ended June 30, 2012						Three Months Ended June 30, 2011
	Equity Incentive Plans			Employee Stock Purchase Plan			Equity Incentive Plans			Employee Stock Purchase Plan
Average risk-free interest rate		0.89	%		0.14	%		1.69	%		0.18	%
Expected dividend yield		1.7	%		1.7	%		None			None
Expected life		4.5 Years			0.5 Years			3.5 Years			0.5 Years
Expected volatility		40	%		31	%		40	%		28	%
Weighted average fair value	$	9.81		$	7.54		$	11.79		$	7.55
	Six Months Ended June 30, 2012						Six Months Ended June 30, 2011
	Equity Incentive Plans			Employee Stock Purchase Plan			Equity Incentive Plans			Employee Stock Purchase Plan
Average risk-free interest rate		0.89	%		0.14	%		1.63	%		0.18	%
Expected dividend yield		1.7	%		1.7	%		None			None
Expected life		4.5 Years			0.5 Years			3.5 Years			0.5 Years
Expected volatility		40	%		31	%		40	%		28	%
Weighted average fair value	$	9.84		$	7.54		$	11.54		$	7.55

Dividends

In the first six months of 2012, the Company declared and paid dividends of $0.28 per share or $6.4 million in the aggregate. In July 2012, the Company declared a dividend of $0.14 per share payable on September 19, 2012 to shareholders of record as of September 5, 2012.

Treasury Stock

The Company’s Board of Directors has authorized an aggregate $260.0 million to purchase common stock under the stock repurchase program. The shares repurchased may be used, among other things, in connection with the Company’s employee and director equity incentive and purchase plans. During the six months ended June 30, 2012 the Company repurchased approximately 0.5 million shares of common stock at an aggregate cost of approximately $17.1 million. As of June 30, 2012, the Company had cumulative repurchases of approximately 8.7 million shares of common stock at an aggregate cost of approximately $198.1 million under the program.

Note 8 — Income Taxes

Forrester provides for income taxes on an interim basis according to management’s estimate of the effective tax rate expected to be applicable for the full fiscal year. Certain items such as changes in tax rates, foreign exchange gains or losses on the remeasurement of deferred tax liabilities and tax benefits related to disqualifying dispositions of incentive stock options are treated as discrete items and are recorded in the period in which they arise. The primary discrete items in the six months ended June 30, 2012 include a remeasurement gain of a euro-denominated deferred tax liability and deductions from disqualified dispositions of incentive stock options. The primary discrete item in the six months ended June 30, 2011 was a remeasurement loss of a euro-denominated deferred tax liability

Note 9 — Operating Segments

Forrester is organized into two client groups with each client group responsible for writing relevant research for the roles within the client organization on a worldwide basis. The two client groups, which are considered operating segments, are: Business Technology (“BT”) and Marketing and Strategy (“M&S”). In addition, the Company’s Events segment supports both client groups. Each client group generates revenue through sales of research, advisory and other service offerings targeted at specific roles within their targeted clients. Each client group consists of research personnel focused primarily on issues relevant to particular roles and to the day-to-day responsibilities of persons within the roles. Amounts included in the Events segment relate to the operations of the events production department. Revenue reported in the Events segment consists primarily of sponsorships and sales of event tickets to Forrester events.

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Forrester evaluates reportable segment performance and allocates resources based on direct margin. Direct margin, as presented below, is defined as operating income excluding sales expenses, certain marketing and fulfillment expenses, stock-based compensation expense, general and administrative expenses, depreciation expense, and amortization of intangibles. In the second quarter of 2012, the Company modified its management structure by consolidating its former Technology Industry client group segment into its two remaining client groups: Business Technology and Marketing and Strategy. In addition, in the first quarter of 2012, the Company modified its calculation of segment direct margin to exclude certain marketing costs and Springboard integration costs and to include certain business development costs. Accordingly, the 2011 amounts have been reclassified to conform to the current presentation. The accounting policies used by the reportable segments are the same as those used in the consolidated financial statements.

The following tables present information about reportable segments (in thousands):

	BT		M&S		Events		Consolidated
Three Months Ended June 30, 2012
Revenue	$	40,559	$	30,186	$	8,348	$	79,093
Direct margin		26,666		20,240		4,260		51,166
Selling, marketing, administrative and other expenses								(39,119	)
Amortization of intangible assets								(586	)
Income from operations							$	11,461
	BT		M&S		Events		Consolidated
Three Months Ended June 30, 2011
Revenue	$	37,830	$	28,928	$	6,692	$	73,450
Direct margin		24,542		19,398		3,605		47,545
Selling, marketing, administrative and other expenses								(37,403	)
Amortization of intangible assets								(526	)
Income from operations							$	9,616
	BT		M&S		Events		Consolidated
Six Months Ended June 30, 2012
Revenue	$	80,215	$	60,035	$	9,103	$	149,353
Direct margin		53,042		40,751		3,967		97,760
Selling, marketing, administrative and other expenses								(80,471	)
Amortization of intangible assets								(1,200	)
Income from operations							$	16,089
	BT		M&S		Events		Consolidated
Six Months Ended June 30, 2011
Revenue	$	74,285	$	56,210	$	8,697	$	139,192
Direct margin		49,409		37,462		4,193		91,064
Selling, marketing, administrative and other expenses								(76,031	)
Amortization of intangible assets								(1,219	)
Income from operations							$	13,814

Note 10 — Recent Accounting Pronouncements

In May 2011, the Financial Accounting Standards Board (“FASB”) issued amended guidance on fair value measurement and related disclosures. The new guidance clarifies the concepts applicable for fair value measurement of non-financial assets and requires the disclosure of quantitative information about the unobservable inputs used in a fair value measurement. This guidance is effective for reporting periods beginning after December 15, 2011 and has been applied prospectively. The adoption of this amended guidance did not have a material impact on the Company’s consolidated financial statements.

In June 2011, the FASB amended its accounting guidance on the presentation of other comprehensive income (OCI) in an entity’s financial statements. The amended guidance eliminates the option to present the components of OCI as part of the statement of changes in shareholders equity and provides two options for presenting

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OCI: in a statement included in the income statement or in a separate statement immediately following the income statement. The amendments do not change the guidance for the items that have to be reported in OCI or when an item of OCI has to be moved into net income. The Company adopted this guidance as of January 1, 2012 by presenting a separate statement of comprehensive income.

In September 2011, the FASB issued updated guidance on the periodic testing of goodwill for impairment. The updated guidance gives companies the option to perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. The amendment is intended to reduce the cost and complexity of the annual goodwill impairment test by providing entities an option to perform a qualitative assessment to determine whether further impairment testing is necessary. The updated accounting guidance is effective for fiscal years beginning after December 15, 2011 and the adoption of this guidance as of January 1, 2012 did not have a material impact on the Company’s consolidated financial statements.

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Overview

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “expects,” “believes,” “anticipates,” “intends,” “plans,” “estimates,” or similar expressions are intended to identify these forward-looking statements. These statements include, but are not limited to, statements about the adequacy of our liquidity and capital resources, future growth rates, anticipated increases in our sales force, and anticipated continued repurchases of our common stock. These statements are based on our current plans and expectations and involve risks and uncertainties that could cause actual future activities and results of operations to be materially different from those set forth in the forward-looking statements. Important factors that could cause actual future activities and results to differ include, among others, our ability to retain and enrich memberships for our research products and services, technology spending, our ability to respond to business and economic conditions and market trends, the risks and challenges inherent in international business activities, competition and industry consolidation, the ability to attract and retain professional staff, our dependence on key personnel, the possibility of network disruptions and security breaches, and possible variations in our quarterly operating results. These risks are described more completely in our Annual Report on Form 10-K for the year ended December 31, 2011. We undertake no obligation to update publicly any forward-looking statements, whether as a result of new information, future events, or otherwise.

We derive revenues from memberships to our research products and services, performing advisory services and consulting projects, and hosting events. We offer contracts for our research products that are typically renewable annually and payable in advance. Research revenues are recognized as revenue ratably over the term of the contract. Accordingly, a substantial portion of our billings are initially recorded as deferred revenue. Clients purchase advisory services independently and/or to supplement their memberships to our research. Billings attributable to advisory services and consulting projects are initially recorded as deferred revenue. Advisory service revenues are recognized when the customer receives the agreed upon deliverable. Consulting project revenues, which generally are short-term in nature and based upon fixed-fee agreements, are recognized as the services are provided. Event billings are also initially recorded as deferred revenue and are recognized as revenue upon completion of each event.

Our primary operating expenses consist of cost of services and fulfillment, selling and marketing expenses and general and administrative expenses. Cost of services and fulfillment represents the costs associated with the production and delivery of our products and services, including salaries, bonuses, employee benefits and stock-based compensation expense for research personnel and all associated editorial, travel, and support services. Selling and marketing expenses include salaries, sales commissions, bonuses, employee benefits, stock-based compensation expense, travel expenses, promotional costs and other costs incurred in marketing and selling our products and services. General and administrative expenses include the costs of the technology, operations, finance, and human resources groups and our other administrative functions, including salaries, bonuses, employee benefits, and stock-based compensation expense. Overhead costs such as facilities are allocated to these categories according to the number of employees in each group.

Deferred revenue, agreement value, client retention, dollar retention and enrichment are metrics we believe are important to understanding our business. We believe that the amount of deferred revenue, along with the agreement value of contracts to purchase research and advisory services, provide a significant measure of our business activity. We define these metrics as follows:

• Deferred revenue - billings in advance of revenue recognition as of the measurement date.

• Agreement value - the total revenues recognizable from all research and advisory service contracts in force at a given time (but not including advisory-only contracts), without regard to how much revenue has already been recognized.

• Client retention - the percentage of client companies with memberships expiring during the most recent twelve-month period that renewed one or more of those memberships during that same period.

• Dollar retention - the percentage of the dollar value of all client membership contracts renewed during the most recent twelve-month period to the total dollar value of all client membership contracts that expired during the period.

• Enrichment - the percentage of the dollar value of client membership contracts renewed during the most recent twelve-month period to the dollar value of the corresponding expiring contracts.

Client retention, dollar retention, and enrichment are not necessarily indicative of the rate of future retention of our revenue base. A summary of our key metrics is as follows (dollars in millions):

	As of June 30,						Absolute Increase (Decrease)			Percentage Increase (Decrease)
	2012			2011
Deferred revenue	$	134.6		$	130.4		$	4.2			3	%
Agreement value	$	221.6		$	207.6		$	14.0			7	%
Client retention		79	%		81	%		(2	)		(2	%)
Dollar retention		91	%		91	%		—			—
Enrichment		98	%		103	%		(5	)		(5	%)
Number of clients		2,546			2,444			102			4	%

The growth rate of both deferred revenue and agreement value at June 30, 2012 of 3% and 7%, respectively, has trended down from the growth rate of 10% for each as of March 31, 2012. The decrease in the growth rates is primarily due to a continuing decrease in our enrichment rates that reflects slowing growth in the contract value of existing clients as they renew their contracts, due to a combination of higher attrition of our sales force and a difficult economic environment in Europe

Effective for the period ending June 30, 2012, we modified our calculation of the number of clients in accordance with an automated system that counts as a single client the various divisions and subsidiaries of a corporate parent and also aggregates separate instrumentalities of federal, state, and provincial governments. The number of clients as of June 30, 2011 has been recalculated to conform to the current methodology; however prior period client and dollar retention and enrichment are not recalculated. Accordingly, the client and dollar retention and enrichment percentages at June 30, 2012 are directionally but not absolutely indicative of the actual change from the comparable period in 2011.

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Critical Accounting Policies and Estimates

Management’s discussion and analysis of financial condition and results of operations are based upon our consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. On an ongoing basis, we evaluate our policies and estimates, including but not limited to, those related to our revenue recognition, stock-based compensation, non-marketable investments, goodwill and other intangible assets, income taxes, and valuation and impairment of marketable investments. Management bases its estimates on historical experience, data available at the time the estimates are made and various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. Our critical accounting policies and estimates are described in our Annual Report on Form 10-K for the year ended December 31, 2011.

Results of Operations

The following table sets forth our statement of income as a percentage of total revenues for the periods indicated:

	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
Revenues:
Research services		64.6	%		64.5	%		67.5	%		66.0	%
Advisory services and other		35.4			35.5			32.5			34.0
Total revenues		100.0			100.0			100.0			100.0
Operating expenses:
Cost of services and fulfillment		37.7			38.2			38.0			38.4
Selling and marketing		33.2			35.4			34.4			37.0
General and administrative		10.9			11.3			12.2			12.4
Depreciation		2.9			1.3			2.9			1.4
Amortization of intangible assets		0.7			0.7			0.8			0.9
Reorganization costs		0.1			—			0.9			—
Income from operations		14.5			13.1			10.8			9.9
Other income (expense), net		0.2			—			0.3			(0.1	)
Gains on investments, net		0.1			0.1			0.1			0.5
Income before income taxes		14.8			13.2			11.2			10.3
Income tax provision		5.0			5.8			3.9			4.3
Net income		9.8	%		7.4	%		7.3	%		6.0	%

Three and Six Months Ended June 30, 2012 and June 30, 2011

Revenues

	Three Months Ended June 30,						Absolute Increase (Decrease)			Percentage Increase (Decrease)
	2012			2011
	(dollars in millions)
Revenues	$	79.1		$	73.5		$	5.6			8	%
Revenues from research services	$	51.1		$	47.3		$	3.8			8	%
Revenues from advisory services and other	$	28.0		$	26.1		$	1.9			7	%
Revenues attributable to customers outside of the U.S.	$	21.4		$	21.6		$	(0.2	)		(1	%)
Percentage of revenue attributable to customers outside of the U.S.		27	%		29	%		(2	)		(7	%)
Number of clients (at end of period)		2,546			2,444			102			4	%
Number of events		6			4			2			50	%

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	Six Months Ended June 30,						Absolute Increase (Decrease)			Percentage Increase (Decrease)
	2012			2011
	(dollars in millions)
Revenues	$	149.4		$	139.2		$	10.2			7	%
Revenues from research services	$	100.8		$	91.9		$	8.9			10	%
Revenues from advisory services and other	$	48.6		$	47.3		$	1.2			3	%
Revenues attributable to customers outside of the U.S.	$	41.5		$	41.5		$	—			—
Percentage of revenue attributable to customers outside of the U.S.		28	%		30	%		(2	)		(7	%)
Number of events		7			8			(1	)		(13	%)

Total revenues increased by 8% and 7% during the three and six months ended June 30, 2012, respectively, compared to the corresponding periods in the prior year. The increase was predominantly driven by an 8% and 10% increase in research revenues during the three and six months ended June 30, 2012, respectively. The effect of foreign exchange fluctuations from the prior year had the effect of reducing revenue growth by 2% and 1% for the three and six months ended June 30, 2012, respectively, while the effect of the Springboard Research acquisition in May 2011 had an insignificant impact on revenue growth during the 2012 periods.

Research services revenues are recognized as revenue ratably over the term of the contracts, which are generally twelve-month periods. Accordingly, the increase in research services revenues during 2012 reflects increased contract bookings during the prior twelve-month period, due primarily to the growth of our client base during this period. Revenue from advisory services and other increased 7% during the three months ended June 30, 2012 predominantly due to increased event revenues resulting principally from an increase in the number of events as we shifted events from the first quarter to the second quarter in 2012. We count co-located events, which enable our clients to attend multiple events with one event ticket, as a single event in the tables above. Revenue from advisory services and other increased 3% during the six months ended June 30, 2012 primarily due to 5% revenue growth from events due to an increase in sponsorship revenue and 2% revenue growth from advisory and consulting services. Revenues from customers outside the U.S. during the three and six month ended June 30, 2012 compared to the prior year have declined by two percentage points as a percent of total revenues as revenue growth in Canada and the Asia/Pacific region has been offset by a decline in revenue from Europe. Based on declining growth rates in both agreement value and deferred revenue, we expect the growth in total revenues over the corresponding period in 2011 to decrease to approximately 1% to 4% in the second half of 2012.

Please refer to “Segment Results” section below for a discussion of revenue and direct margin results by segment.

Cost of Services and Fulfillment

	Three Months Ended June 30,						Absolute Increase (Decrease)			Percentage Increase (Decrease)
	2012			2011
Cost of services and fulfillment (dollars in millions)	$	29.8		$	28.0		$	1.8			6	%
Cost of services and fulfillment as a percentage of total revenues		37.7	%		38.2	%		(0.5	)		(1	%)
Number of research and fulfillment employees (at end of period)		537			541			(4	)		(1	%)
	Six Months Ended June 30,						Absolute Increase (Decrease)			Percentage Increase (Decrease)
	2012			2011
Cost of services and fulfillment (dollars in millions)	$	56.8		$	53.5		$	3.3			6	%
Cost of services and fulfillment as a percentage of total revenues		38.0	%		38.4	%		(0.4	)		(1	%)

The increase in cost of services and fulfillment expenses during the three months ended June 30, 2012 compared to the prior period is primarily the result of increased events costs due to an increase in the number of events held in the quarter, as well as increased professional services costs related to advisory and consulting services and an increase of $0.7 million of stock compensation costs resulting from a credit to expense in the 2011 quarter resulting from a change in estimate for the amount of performance-based RSUs that would vest.

The increase in cost of services and fulfillment expenses for the six months ended June 30, 2012 compared to the prior year period is attributable principally to the same factors that impacted expenses during the second quarter and also due to higher compensation and benefit costs due primarily to higher average headcount during the 2012 period. These increases were partially offset by a decrease in travel and entertainment costs primarily due to an all-employee meeting held in 2011 that was not held in 2012.

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Selling and Marketing

	Three Months Ended June 30,						Absolute Increase (Decrease)			Percentage Increase (Decrease)
	2012			2011
Selling and marketing expenses (dollars in millions)	$	26.3		$	26.0		$	0.3			1	%
Selling and marketing expenses as a percentage of total revenues		33.2	%		35.4	%		(2.2	)		(6	%)
Selling and marketing employees (at end of period)		499			491			8			2	%
	Six Months Ended June 30,						Absolute Increase (Decrease)			Percentage Increase (Decrease)
	2012			2011
Selling and marketing expenses (dollars in millions)	$	51.4		$	51.5		$	(0.1	)		—
Selling and marketing expenses as a percentage of total revenues		34.4	%		37.0	%		(2.6	)		(7	%)

Changes in selling and marketing expenses during the three and six months ended June 30, 2012 compared to the prior periods are primarily the result of increased stock compensation costs and professional services costs, offset by a decrease in total compensation costs resulting from lower sales commissions principally due to modifications to our sales commission plan in 2012. The decrease in commissions was partially offset by an increase in incentive bonuses and salary and benefits resulting from an increase in the number of selling and marketing employees. The decrease in selling and marketing expenses as a percentage of total revenues during the 2012 periods is primarily due to lower commission expense as a percentage of sales and to relatively consistent headcount in 2012 compared to 2011 due to higher attrition rates during the 2012 period.

General and Administrative

	Three Months Ended June 30,						Absolute Increase (Decrease)			Percentage Increase (Decrease)
	2012			2011
General and administrative expenses (dollars in millions)	$	8.6		$	8.3		$	0.3			4	%
General and administrative expenses as a percentage of total revenues		10.9	%		11.3	%		(0.4	)		(4	%)
General and administrative employees (at end of period)		170			179			(9	)		(5	%)
	Six Months Ended June 30,						Absolute Increase (Decrease)			Percentage Increase (Decrease)
	2012			2011
General and administrative expenses (dollars in millions)	$	18.3		$	17.2		$	1.1			6	%
General and administrative expenses as a percentage of total revenues		12.2	%		12.4	%		(0.2	)		(2	%)

The increase in general and administrative expenses during the three months ended June 30, 2012 compared to the prior period is primarily due to an increase in professional services costs principally related to information technology projects, partially offset by a decrease in incentive compensation earned. The increase in general and administrative expenses for the six months ended June 30, 2012 compared to the prior period is primarily due to increased professional services costs.

Depreciation

Depreciation expense increased by $1.3 million and $2.3 million during the three and six months ended June 30, 2012, respectively, compared to the prior year periods primarily due to the initiation of depreciation for our new corporate headquarters in August 2011 and our new website in March 2012.

Amortization of Intangible Assets

Amortization expense has remained essentially consistent during 2012 as compared to the prior year.

Reorganization Costs

We incurred reorganization cost of $0.1 million and $1.4 million during the three and six months ended June 30, 2012, respectively. In the first quarter of 2012 we realigned our sales force to simplify the selling process to our customers and to increase the productivity of the sales organization. We incurred approximately $0.4 million of severance costs in the fourth quarter of 2011 for three sales employees located outside of the U.S. based on statutory termination benefits in their country of employment and the fact that termination was considered probable at December 31, 2011. We incurred an additional $1.3 million and $0.1 million of severance and related costs in the first and second quarter of 2012, respectively, for the termination of 17 additional employees related to the sales reorganization and other cost reduction initiatives. We do not anticipate incurring any additional costs related to these initiatives and expect that all amounts incurred will be paid during 2012.

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Other Income (Expense), Net

Other income (expense), net, increased by $0.1 million and $0.6 million during the three and six months ended June 30, 2012, respectively, compared to the prior year periods. The increases are primarily due to lower net foreign exchange losses in the 2012 periods.

Gains on Investments, Net

Gains on investments primarily represent our share of equity method investment gains from our technology-related investment funds. The decrease in gains during the six months ended June 30, 2012 is primarily due to a smaller increase in the valuation of certain assets within the funds as compared to the prior year period.

Provision for Income Taxes

	Three Months Ended June 30,						Absolute Increase (Decrease)			Percentage Increase (Decrease)
	2012			2011
Provision for income taxes (dollars in millions)	$	3.9		$	4.2		$	(0.3	)		(7	%)
Effective tax rate		33.5	%		43.5	%		(10.0	)		(23	%)
	Six Months Ended June 30,						Absolute Increase (Decrease)			Percentage Increase (Decrease)
	2012			2011
Provision for income taxes (dollars in millions)	$	5.8		$	6.0		$	(0.2	)		(2	%)
Effective tax rate		34.7	%		41.6	%		(6.9	)		(17	%)

The decrease in the effective tax rate during the 2012 periods as compared to the prior year periods is due to a credit in the current year due to a remeasurement gain of a euro-denominated deferred tax liability in 2012 compared to a remeasurement loss in 2011 and also due to higher deductions from disqualified dispositions of stock options during 2012.

Segment Results

We are organized into two client groups with each client group responsible for writing relevant research for the roles within the client organization on a worldwide basis. The two client groups, which are considered operating segments, are: Business Technology (“BT”), and Marketing and Strategy (“M&S”). In addition, our Events segment supports both client groups. Each client group generates revenue through sales of research, advisory and other service offerings targeted at specific roles within their targeted clients. Each client group consists of research personnel focused primarily on issues relevant to particular roles and to the day-to-day responsibilities of persons within the roles. Amounts included in the Events segment relate to the operations of the events production department. Revenue reported in the Events segment consists primarily of sponsorships and sales of event tickets to Forrester events. In the second quarter of 2012, we modified our management structure by consolidating our former Technology Industry client group segment into our two remaining client groups: Business Technology and Marketing and Strategy. In addition, in the first quarter of 2012, we modified our calculation of segment direct margin to exclude certain marketing costs and to include certain business development costs. Accordingly, the 2011 amounts have been reclassified to conform to the current presentation.

We evaluate reportable segment performance based on direct margin. Direct margin, as presented below, is defined as operating income excluding sales expenses, certain marketing and fulfillment expenses, stock-based compensation expense, general and administrative expenses, depreciation expense, and amortization of intangibles.

	BT			M&S			Events			Consolidated
Three Months Ended June 30, 2012
Revenue	$	40,559		$	30,186		$	8,348		$	79,093
Direct margin	$	26,666		$	20,240		$	4,260		$	51,166
Year over year revenue growth		7	%		4	%		25	%		8	%
Direct margin percentage		65.7	%		67.1	%		51.0	%		64.7	%
	BT			M&S			Events			Consolidated
Three Months Ended June 30, 2011
Revenue	$	37,830		$	28,928		$	6,692		$	73,450
Direct margin	$	24,542		$	19,398		$	3,605		$	47,545
Direct margin percentage		64.9	%		67.1	%		53.9	%		64.7	%

19

	BT			M&S			Events			Consolidated
Six Months Ended June 30, 2012
Revenue	$	80,215		$	60,035		$	9,103		$	149,353
Direct margin	$	53,042		$	40,751		$	3,967		$	97,760
Year over year revenue growth		8	%		7	%		5	%		7	%
Direct margin percentage		66.1	%		67.9	%		43.6	%		65.5	%
	BT			M&S			Events			Consolidated
Six Months Ended June 30, 2011
Revenue	$	74,285		$	56,210		$	8,697		$	139,192
Direct margin	$	49,409		$	37,462		$	4,193		$	91,064
Direct margin percentage		66.5	%		66.6	%		48.2	%		65.4	%

BT revenue growth of 7% and 8% for the three and six months ended June 30, 2012, respectively, compared to the prior year periods, resulted from growth in research services of 6% and 7%, respectively, and growth in advisory services and other of 10% for each of the periods. Direct margin percentage remained relatively consistent during 2012 compared to the prior year.

M&S revenue growth of 4% and 7% for the three and six months ended June 30, 2012, respectively, compared to the prior year periods, resulted from growth in research services of 9% and 13%, respectively, partially offset by a decline in advisory services and other of 8% and 6%, respectively. The increase in direct margin percentage during the six months ended June 30, 2012 compared to the prior year is primarily due to lower travel and entertainment and professional service costs in the first quarter of 2012 compared to the prior year.

Events revenue increased 25% and 5% for the three and six months ended June 30, 2012, respectively, compared to the prior year periods. During 2012, we repositioned our events to more closely align with our roles resulting in an increased amount of smaller, co-located role-based events in comparison to larger combined events in the prior year. Co-located events enable our clients to attend multiple events with one event ticket and are considered as a single event. The increase in revenue during the three months ended June 30, 2012 was primarily due to an increase in the number of events held in comparison to the prior year quarter. The increase in revenue during the six months ended June 30, 2012 was primarily due to an increase in sponsorship revenue as we held multiple co-located events during the period, partially offset by lower ticket revenue as we held one less event during the period. The decrease in direct margin percentage during 2012 is primarily due to the effect of having multiple smaller events in the current period, which has the effect of increasing sponsorship revenue while also increasing the overall costs of the events.

Liquidity and Capital Resources

We have historically financed our operations primarily through funds generated from operations. Memberships for research services, which constituted approximately 68% of our revenues during the six months ended June 30, 2012, are annually renewable and are generally payable in advance. We generated cash from operating activities of $39.4 million and $38.1 million during the six months ended June 30, 2012 and 2011, respectively. The $1.3 million increase in cash provided from operations for the six months ended June 30, 2012 is primarily attributable to an increase in cash generated from working capital, primarily due to a reduction in amounts paid for accrued expenses in 2012. For the six months ended June 30, 2012, we generated $33.7 million of cash from collections of accounts receivable. In the first half of the year, we traditionally generate a significant amount of cash from the collection of accounts receivable as a large portion of our business is contracted for and billed in the fourth quarter of the year.

During the six months ended June 30, 2012, we used $15.0 million of cash from investing activities, consisting primarily of $12.9 million in net purchases of marketable investments and $3.2 million of purchases of property and equipment. Property and equipment purchases during the 2012 period consisted primarily of software and computer equipment. We expect property and equipment purchases to be in the range of $5.0 million to $8.0 million in 2012. During the six months ended June 30, 2011, we used $38.4 million of cash from investing activities, consisting primarily of $16.7 million in net purchases of marketable investments, $26.1 million of purchases of property and equipment and $7.0 million for acquisitions. The property and equipment purchases were partially funded by $11.2 million of restricted cash that had been placed in escrow for such purchases. Property and equipment purchases during the 2011 period consisted of leasehold improvements for new facilities as well as purchases of software and computer equipment. We regularly invest excess funds in short and intermediate-term interest-bearing obligations of investment grade.

We used $17.2 million of cash from financing activities during the six months ended June 30, 2012 resulting from $17.1 million of purchases of our common stock and $6.4 million of dividend payments, partially offset by $6.6 million of proceeds from exercises of stock options. We used $6.6 million of cash from financing activities during the six months ended June 30, 2011 resulting from $13.4 million of purchases of our common stock, partially offset by $6.4 million of proceeds from exercises of stock options and our employee stock purchase plan. At June 30, 2012, we had $61.9 million remaining on our stock repurchase authorization and we plan to continue to repurchase our common stock during the remainder of 2012, as market conditions warrant.

As of June 30, 2012, we held approximately $9.7 million ($11.0 million par value) of state and municipal bonds with an auction reset feature (auction rate securities or “ARS”). In February 2008, auctions began to fail for these securities and have continued to fail. As a result, our ability to liquidate our investment and fully recover the carrying value of our investment in the near term may be limited or not exist. Based on our expected operating cash flows and our cash resources, we do not anticipate the current lack of liquidity of our ARS investments will affect our ability to execute our current business plan.

As of June 30, 2012, we had cash and cash equivalents of $87.7 million and marketable investments of $158.5 million. We do not have a line of credit and do not presently anticipate the need to access a line of credit in the foreseeable future. We believe that our current cash balance, marketable investments, and cash flows from operations will satisfy working capital, financing activities, and capital expenditure requirements for at least the next two years.

Contractual Obligations

There have been no material changes to the contractual obligations table as disclosed in our Annual Report on Form 10-K for the year ended December 31, 2011.

20

Off-Balance Sheet Arrangements

We do not maintain any off-balance sheet financing arrangements.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

There have been no material changes in our assessment of our sensitivity to market risk since our presentation set forth in Item 7A, “Quantitative and Qualitative Disclosures About Market Risk,” in our Annual Report on Form 10-K for the year ended December 31, 2011.

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

We maintain “disclosure controls and procedures,” as such term is defined under Securities Exchange Act Rule 13a-15(e), that are designed to ensure that information required to be disclosed in our Exchange Act reports is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosures. In designing and evaluating the disclosure controls and procedures, our management recognized that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives and our management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures. Our management, with the participation of our principal executive officer and principal financial officer, has evaluated the effectiveness of our disclosure controls and procedures as of June 30, 2012. Based upon their evaluation and subject to the foregoing, the principal executive officer and principal financial officer concluded that our disclosure controls and procedures were effective to provide reasonable assurance as of that date.

Changes in Internal Control Over Financial Reporting

There was no change in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that occurred during the quarter ended June 30, 2012 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

PART II. OTHER INFORMATION

ITEM 1A. RISK FACTORS

In addition to the other information set forth in this Form 10-Q, you should carefully consider the factors discussed in Part I, “Item 1A: Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2011, which could materially affect our business, financial condition or future results. The risk factors described in our Annual Report on Form 10-K remain applicable to our business. The risks described in our Annual Report on Form 10-K are not the only risks that we face. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition and/or operating results.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Our Board of Directors has authorized an aggregate $260.0 million to purchase common stock under our stock repurchase program, including $60.0 million authorized in 2010. During the quarter ended June 30, 2012, we purchased the following shares of our common stock under the stock repurchase program:

Period	Total Number of Shares Purchased (1)		Average Price Paid per Share		Maximum Dollar Value that May Yet be Purchased Under the Stock Repurchase Program
					(In thousands)
April 1 - April 30		93,200	$	32.97	$	68,227
May 1 - May 31		128,567	$	33.95	$	63,862
June 1 - June 30		58,516	$	32.70	$	61,948
		280,283

(1) All purchases of our common stock were made under the stock repurchase program first announced in 2002.

21

ITEM 6. EXHIBITS

10.1	Form of Restricted Stock Unit Award Agreement for Directors (Amended and Restated 2006 Equity Incentive Plan) (filed herewith)
10.2	Forrester Research, Inc. Amended and Restated 2006 Equity Incentive Plan (filed as Exhibit A to Forrester’s Proxy Statement on Schedule 14A filed on March 26, 2012 (File No. 000-21433)) and incorporated herein by reference.
31.1	Certification of the Principal Executive Officer. (filed herewith)
31.2	Certification of the Principal Financial Officer. (filed herewith)
32.1	Certification of the Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. (furnished herewith)
32.2	Certification of the Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. (furnished herewith)
101.INS*	XBRL Instance Document. (furnished herewith)
101.SCH*	XBRL Taxonomy Extension Schema. (furnished herewith)
101.CAL*	XBRL Taxonomy Extension Calculation Linkbase. (furnished herewith)
101.DEF*	XBRL Taxonomy Extension Definition Linkbase. (furnished herewith)
101.LAB*	XBRL Taxonomy Extension Label Linkbase. (furnished herewith)
101.PRE*	XBRL Taxonomy Extension Presentation Linkbase. (furnished herewith)

* Pursuant to Rule 406T of Regulation S-T, these interactive date files shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to liability under that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, except as expressly set forth by specific reference in such filing.

22

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

FORRESTER RESEARCH, INC.
By:	/s/ Michael A. Doyle
	Michael A. Doyle
	Chief Financial Officer and Treasurer
	(Principal financial officer)

Date: August 9, 2012

23

Exhibit Index

Exhibit No.	Document
10.1	Form of Restricted Stock Unit Award Agreement for Directors (Amended and Restated 2006 Equity Incentive Plan) (filed herewith)
10.2	Forrester Research, Inc. Amended and Restated 2006 Equity Incentive Plan (filed as Exhibit A to Forrester’s Proxy Statement on Schedule 14A filed on March 26, 2012 (File No. 000-21433)) and incorporated herein by reference.
31.1	Certification of the Principal Executive Officer. (filed herewith)
31.2	Certification of the Principal Financial Officer. (filed herewith)
32.1	Certification of the Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. (furnished herewith)
32.2	Certification of the Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. (furnished herewith)
101.INS*	XBRL Instance Document. (furnished herewith)
101.SCH*	XBRL Taxonomy Extension Schema. (furnished herewith)
101.CAL*	XBRL Taxonomy Extension Calculation Linkbase. (furnished herewith)
101.DEF*	XBRL Taxonomy Extension Definition Linkbase. (furnished herewith)
101.LAB*	XBRL Taxonomy Extension Label Linkbase. (furnished herewith)
101.PRE*	XBRL Taxonomy Extension Presentation Linkbase. (furnished herewith)

* Pursuant to Rule 406T of Regulation S-T, these interactive date files shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to liability under that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, except as expressly set forth by specific reference in such filing.

EX-10.1

Exhibit 10.1

RESTRICTED STOCK UNIT AWARD AGREEMENT

Issued Pursuant to the Forrester Research, Inc. Amended and Restated 2006 Equity Incentive Plan

%%DATE&&

%%FIRST_NAME%-% %%LAST_NAME%-%

%%ADDRESS_LINE_1%-% %%ADDRESS_LINE_2%-% %%ADDRESS_LINE_3%-%

%%CITY%-% %%STATE%-% %%ZIPCODE%-%

Dear %%FIRST_NAME%-%:

The undersigned (the “Participant”) (i) acknowledges that (s)he has received an award (the “Award”) of restricted stock units from Forrester Research, Inc. (the “Company”) under the Forrester Research, Inc. Amended and Restated 2006 Equity Incentive Plan (the “Plan”), subject to the terms set forth below in this agreement (the “Agreement”) and (ii) agrees with the Company as follows:

1. Effective Date; Restricted Stock Unit Award. This Agreement shall take effect &&DATE&& which is the date of grant of the Award. The Award gives the Participant the conditional right to receive, without payment but subject to the conditions and limitations set forth in this Agreement and in the Plan, %%TOTAL_SHARES_GRANTED%-% shares of Stock (the “Shares”).

Except as otherwise expressly provided herein, all terms used herein shall have the same meaning as in the Plan.

2. Vesting. This Award shall vest twelve (12) months after the date of this Agreement, with regard to one-fourth of the total Shares under this Award (rounded to the nearest whole Share), twenty-four (24) months after the date of this Agreement with regard to an additional one-fourth of the total Shares under this Award (rounded to the nearest whole Share), thirty-six (36) months after the date of this Agreement with regard to an additional one-fourth of the total Shares under this Award (rounded to the nearest whole Share), and forty-eight (48) months after the date of this Agreement for the balance of the total Shares under this Award, provided that the Participant on each such vesting date remains a director of the Company.

3. Delivery of Shares. Subject to Section 5 below, the Company shall, on or as soon as reasonably practicable following each vesting date set forth in Section 2 above (but in no event later than March 15 of the year following the calendar year of each such vesting date, effect delivery of the Shares with respect to the vested portion of the Award to the Participant (or, in the event of the Participant’s death after vesting of all or a portion of the Award, to the person to whom the Award has passed by will or the laws of descent and distribution).

4. Dividends; Equity Interest. The Award shall not be interpreted to bestow upon the Participant any equity interest or ownership in the Company or any of its subsidiaries prior to the date on which the Company delivers Shares to the Participant. The Participant is not entitled to vote any Shares by reason of the granting of this Award or to receive or be credited with any dividends that may be declared and payable on any Share prior to the payment date with respect to such Share. The Participant shall have the rights of a shareholder only as to those Shares, if any, that are actually delivered under the Award.

page 1

5. Certain Tax Matters. The Participant expressly acknowledges that because this Award consists of an unfunded and unsecured promise by the Company to deliver Shares in the future, subject to the terms hereof, it is not possible to make a so-called “83(b) election” with respect to the Award. To the extent applicable, the Company shall, and the Participant expressly authorizes the Company to, satisfy any federal, state, local, non-U.S. or other tax withholding obligations arising in connection with the vesting of this Award or any portion thereof by having shares of Stock withheld from the Shares deliverable to the Participant upon vesting of all or any portion of the Award, up to the greatest number of whole shares with an aggregate fair market value sufficient to satisfy the minimum required withholding applicable to the amount so vesting.

6. Nontransferability. Neither this Award nor any rights with respect thereto may be sold, assigned, transferred, pledged or otherwise encumbered, except as the administrator may otherwise determine.

7. Reservation of Shares. The Company hereby agrees that at all times there shall be reserved for issuance and/or delivery such number of Shares as shall be required for issuance or delivery upon vesting of the Award.

8. Legal Requirements. The Company may postpone the issuance and delivery of Shares after vesting of the Award until (a) the admission of such Shares to listing on any stock exchange or exchanges on which Shares of the Company of the same classes are then listed and (b) the completion of such registration or other qualification of such Shares under any state or federal law, rule or regulation as the Company shall determine to be necessary or advisable.

9. Amendment. The Compensation Committee may, with the consent of the Participant in the case of an amendment that adversely affects the Participant’s rights under the Award, at any time or from time to time, amend the terms and conditions of the Award. No amendment of any provision of this Agreement shall be valid unless the same shall be in writing.

10. Notices. Any notice which either party hereto may be required or permitted to give to the other shall be in writing, and may be delivered personally or by mail, postage prepaid, addressed as follows: to the Company, at its office at 60 Acorn Park Drive, Cambridge, Massachusetts 02140, or at such other address as the Company by notice to the Participant may designate in writing from time to time; to the Participant, at the address shown below his signature on this Agreement, or at such other address as the Participant by notice to the Company may designate in writing from time to time. Notices shall be effective upon receipt.

11. Personal Data. Participant agrees, understands and acknowledges that by signing this Agreement, Participant has given his/her voluntary and explicit consent to the Company to process personal data and/or sensitive personal data concerning the Participant, including but not limited to the information provided in this Agreement and any changes thereto, other necessary or appropriate personal and financial data relating to Participant and Participant’s Award, participation in the Plan, and the Shares acquired upon vesting of the Award. Participant also hereby gives his or her explicit and voluntary consent to the Company to transfer any such personal data and/or sensitive personal data or information outside the country or jurisdiction in which the Participant works or is employed in order for the Company to fulfill its obligations under this Award and the Plan. Participant acknowledges that the Company and any subsidiary

page 2

may make such personal data available to one or more third parties selected by the Company or the Administrator who provide services to the Company relating to the Award and the Plan. Participant hereby acknowledges that he or she has been informed of his or her right of access to his or her personal data by contacting the Chief Legal Officer of the Company. Participant understands and acknowledges that the transfer of the personal data is important to the administration of the Award and the Plan and that failure to consent to the transmission of such data may limit his or her participation in the Plan.

12. Incorporation of Plan; Interpretation. The Award and this Agreement are issued pursuant to and are subject to all of the terms and conditions of the Plan, the terms, conditions, and definitions of which are hereby incorporated as though set forth at length, and the receipt of a copy of which the Participant hereby acknowledges by his signature below. A determination of the Compensation Committee as to any questions which may arise with respect to the interpretation of the provisions of this Award and of the Plan shall be final. The Compensation Committee may authorize and establish such rules, regulations, and revisions thereof not inconsistent with the provisions of the Plan, as it may deem advisable.

IN WITNESS WHEREOF, the parties have signed this Agreement as of the date first above written.

Forrester Research, Inc.

By:

Chief Legal Officer

Participant

Signature:                                                                                  

Name of Participant:                                                                                 Date: Effective %%DATE%%

Address of Participant:

page 3

EX-31.1

Exhibit 31.1

CERTIFICATION OF THE PRINCIPAL EXECUTIVE OFFICER

I, George F. Colony, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Forrester Research, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f))for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

/s/ GEORGE F. COLONY

George F. Colony

Chairman of the Board and Chief Executive Officer

(Principal executive officer)

Date: August 9, 2012

EX-31.2

Exhibit 31.2

CERTIFICATION OF THE PRINCIPAL FINANCIAL OFFICER

I, Michael A. Doyle, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Forrester Research, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f))for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

/s/ MICHAEL A. DOYLE

Michael A. Doyle

Chief Financial Officer and Treasurer

(Principal financial officer)

Date: August 9, 2012

EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO

SECTION 1350, CHAPTER 63 OF TITLE 18, UNITED STATES CODE,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

Pursuant to Section 1350, Chapter 63 of Title 18, United States Code, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, the undersigned, as Chief Executive Officer of Forrester Research, Inc. (the “Company”), does hereby certify that to the undersigned’s knowledge:

1) the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2012, as filed with the Securities and Exchange Commission (the “10-Q Report”), fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2) the information contained in the 10-Q Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ George F. Colony

George F. Colony

Chairman of the Board and

Chief Executive Officer

Dated: August 9, 2012

EX-32.2

EXHIBIT 32.2

CERTIFICATION PURSUANT TO

SECTION 1350, CHAPTER 63 OF TITLE 18, UNITED STATES CODE,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

Pursuant to Section 1350, Chapter 63 of Title 18, United States Code, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, the undersigned, as Chief Financial Officer of Forrester Research, Inc. (the “Company”), does hereby certify that to the undersigned’s knowledge:

1) the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2012, as filed with the Securities and Exchange Commission (the “10-Q Report”), fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2) the information contained in the 10-Q Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ MICHAEL A. DOYLE

Michael A. Doyle

Chief Financial Officer and Treasurer

Dated: August 9, 2012

XML

Stockholders' Equity (Details 2) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Summary of Stock based compensation recorded in expense categories
Total Allocated Share-based Compensation Expense	$ 1,189	$ 243	$ 2,512	$ 1,681
Cost of Services and Fulfillment [Member]
Summary of Stock based compensation recorded in expense categories
Total Allocated Share-based Compensation Expense	725	32	1,378	647
Selling and Marketing [Member]
Summary of Stock based compensation recorded in expense categories
Total Allocated Share-based Compensation Expense	207	53	431	392
General and Administrative [Member]
Summary of Stock based compensation recorded in expense categories
Total Allocated Share-based Compensation Expense	$ 257	$ 158	$ 703	$ 642

XML

Non- Marketable Investments (Details) (USD $) In Millions, unless otherwise specified					3 Months Ended		6 Months Ended
	Jun. 30, 2012	Dec. 31, 2011	Jun. 30, 2012 Technology Related Private Equity Funds [Member]	Dec. 31, 2011 Technology Related Private Equity Funds [Member]	Jun. 30, 2012 Non Marketable Investments [Member]	Jun. 30, 2011 Non Marketable Investments [Member]	Jun. 30, 2012 Non Marketable Investments [Member]	Jun. 30, 2011 Non Marketable Investments [Member]
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Carrying Value of the Company's non-marketable investments			$ 7.8	$ 7.9
Gain from non- marketable investments					0.1	0.1	0.1	0.6
Non- Marketable Investments (Textual) [Abstract]
Ownership interest of company	5.00%
Book value of investment	$ 1.5	$ 1.5

XML

Acquisition (Details 1) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2012
Summary of identifiable intangible assets acquired and their respective weighted average lives
Intangible Assets, Assigned Value	$ 4,815
Customer Relationships [Member]
Summary of identifiable intangible assets acquired and their respective weighted average lives
Intangible Assets, Assigned Value	3,605
Intangible Assets, Useful Life	7 years 6 months
Research Content [Member]
Summary of identifiable intangible assets acquired and their respective weighted average lives
Intangible Assets, Assigned Value	1,080
Intangible Assets, Useful Life	1 year 6 months
Backlog [Member]
Summary of identifiable intangible assets acquired and their respective weighted average lives
Intangible Assets, Assigned Value	$ 130
Intangible Assets, Useful Life	1 year

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Operating Segments (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Summary of reportable segments
Revenue	$ 79,093	$ 73,450	$ 149,353	$ 139,192
Direct Margin	51,166	47,545	97,760	91,064
Selling, marketing, administrative and other expenses	(39,119)	(37,403)	(80,471)	(76,031)
Amortization of intangible assets	586	526	1,200	1,219
Income from operations	11,461	9,616	16,089	13,814
Business Technology [Member]
Summary of reportable segments
Revenue	40,559	37,830	80,215	74,285
Direct Margin	26,666	24,542	53,042	49,409
Marketing and Strategy [Member]
Summary of reportable segments
Revenue	30,186	28,928	60,035	56,210
Direct Margin	20,240	19,398	40,751	37,462
Events [Member]
Summary of reportable segments
Revenue	8,348	6,692	9,103	8,697
Direct Margin	$ 4,260	$ 3,605	$ 3,967	$ 4,193

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Stockholders' Equity (Details) (USD $) In Thousands, except Per Share data, unless otherwise specified	6 Months Ended
	Jun. 30, 2012
Summary of stock option activity
Outstanding at December 31, 2011	2,130
Weighted Average Exercise Price, Beginning Balance	$ 27.46
Granted	359
Weighted Average Exercise Price, Granted	$ 33.9
Exercised	(262)
Weighted Average Exercise Price ,Exercised	$ 25.29
Forfeited	(47)
Weighted Average Exercise Price, Forfeited	$ 31.23
Outstanding at June 30, 2012	2,180
Weighted Average Exercise Price, Ending Balance	$ 28.70
Weighted Average Remaining Contractual Term, Outstanding	6 years 8 months 19 days
Aggregate Intrinsic Value, Outstanding, Ending Balance	$ 11,726
Exercisable at June 30, 2012	1,253
Weighted Average Exercise Price per share, exercisable	$ 25.9
Weighted Average Remaining Contractual Term, Exercisable	5 years 1 month 10 days
Aggregate Intrinsic Value, Exercisable	$ 10,080

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Acquisition

6 Months Ended

Jun. 30, 2012

Acquisition [Abstract]

Acquisition

Note 2 — Acquisition

On May 12, 2011, Forrester acquired Springboard Research (“Springboard”), a provider of research and advisory services focused on Asia Pacific and emerging markets. Springboard was a former division of Knowledge Platform, Inc. The acquisition of the Springboard business further supports Forrester’s role-based strategy and expands Forrester’s coverage in the Asia Pacific region. The total purchase price was approximately $9.0 million, of which approximately $6.7 million was paid on the acquisition date and $2.3 million (the “Holdback”) is payable at various times through June 1, 2013, subject to possible reduction to satisfy indemnification claims. Of the $2.3 million Holdback, up to $0.9 million was contingent for the retention of certain employees for a period of time and for the extension of a certain lease. As of May 2012, both contingency provisions have elapsed with the full amount payable to Knowledge Platform. As of June 30, 2012, $1.2 million of the Holdback had been paid by the Company and $1.1 million of the Holdback remains in accrued expenses in the Consolidated Balance Sheet. The results of Springboard, which were not material to the consolidated financial statements, have been included in Forrester’s consolidated financial statements since May 12, 2011 in the Business Technology segment. Pro forma financial information has not been provided as it is not material to the consolidated results of operations.

A summary of the purchase price allocation for Springboard is as follows (in thousands):

Assets:
Cash	$	85
Accounts receivable		561
Other current assets		285
Goodwill		3,695
Intangible assets		4,815
Total assets		9,441
Liabilities:
Accrued expenses		160
Deferred revenue		312
Total liabilities		472
Net assets acquired	$	8,969

Approximately $2.1 million of the goodwill is deductible for tax purposes. The Company believes the goodwill reflects its expectations of synergistic revenue opportunities from the acquisition and the value of the acquired workforce.

Intangible assets are amortized according to the expected cash flows to be received. The following are the identifiable intangible assets acquired and their respective weighted average lives (dollars in thousands):

	Assigned Value		Useful Life (in years)
Customer relationships	$	3,605		7.5
Research content		1,080		1.5
Backlog		130		1.0
	$	4,815

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Operating Segments (Details Textual)	6 Months Ended
	Jun. 30, 2012 Segment
Operating Segments (Textual) [Abstract]
Number of Operating Segments	2
Company modified internal reporting structure and combined former Technology Industry client group segment into remaining client group	2

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Marketable Investments (Details 2) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Summary of the gross unrealized losses and market value of available for sale securities with unrealized losses
Available for sale securities, Less Than 12 Months, Market Value	$ 44,314	$ 71,725
Available for sale securities, Less Than 12 Months, Unrealized Losses	113	322
Available for sale securities, 12 Months or Greater, Market Value	13,718	12,715
Available for sale securities, 12 Months or Greater, Unrealized Losses	1,316	1,460
State and municipal bonds [Member]
Summary of the gross unrealized losses and market value of available for sale securities with unrealized losses
Available for sale securities, Less Than 12 Months, Market Value	5,410	2,763
Available for sale securities, Less Than 12 Months, Unrealized Losses	4	9
Available for sale securities, 12 Months or Greater, Market Value		1,107
Available for sale securities, 12 Months or Greater, Unrealized Losses		3
Federal agency and corporate obligations [Member]
Summary of the gross unrealized losses and market value of available for sale securities with unrealized losses
Available for sale securities, Less Than 12 Months, Market Value	38,904	68,962
Available for sale securities, Less Than 12 Months, Unrealized Losses	109	313
Available for sale securities, 12 Months or Greater, Market Value	4,032	2,043
Available for sale securities, 12 Months or Greater, Unrealized Losses	2	22
ARS [Member]
Summary of the gross unrealized losses and market value of available for sale securities with unrealized losses
Available for sale securities, Less Than 12 Months, Market Value
Available for sale securities, Less Than 12 Months, Unrealized Losses
Available for sale securities, 12 Months or Greater, Market Value	9,686	9,565
Available for sale securities, 12 Months or Greater, Unrealized Losses	$ 1,314	$ 1,435

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Marketable Investments (Details 1) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Summary of Auction Rate Securities at their contractual maturity date
FY 2012, Total	$ 26,798
FY2013, Total	52,483
FY2014, Total	53,400
Thereafter, Total	25,782
Total available-for-sale securities	158,463	146,556
State and municipal bonds [Member]
Summary of Auction Rate Securities at their contractual maturity date
FY 2012, Total	2,001
FY2013, Total	3,969
FY2014, Total	8,126
Thereafter, Total
Total available-for-sale securities	14,096	9,482
Federal agency and corporate obligations [Member]
Summary of Auction Rate Securities at their contractual maturity date
FY 2012, Total	24,797
FY2013, Total	48,514
FY2014, Total	45,274
Thereafter, Total	16,096
Total available-for-sale securities	134,681	127,509
Auction Rate Securities [Member]
Summary of Auction Rate Securities at their contractual maturity date
FY 2012, Total
FY2013, Total
FY2014, Total
Thereafter, Total	9,686
Total available-for-sale securities	$ 9,686

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Marketable Investments (Details 3) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Summary of Company's fair value hierarchy for its financial assets
Fair value of assets on recurring basis	$ 170,032	$ 153,342
Money market funds [Member]
Summary of Company's fair value hierarchy for its financial assets
Fair value of assets on recurring basis	4,704	5,786
State and municipal bonds [Member]
Summary of Company's fair value hierarchy for its financial assets
Fair value of assets on recurring basis	14,096	9,482
Federal agency and corporate obligations [Member]
Summary of Company's fair value hierarchy for its financial assets
Fair value of assets on recurring basis	141,546	128,509
ARS [Member]
Summary of Company's fair value hierarchy for its financial assets
Fair value of assets on recurring basis	9,686	9,565
Level 1 [Member]
Summary of Company's fair value hierarchy for its financial assets
Fair value of assets on recurring basis	4,704	5,786
Level 1 [Member] | Money market funds [Member]
Summary of Company's fair value hierarchy for its financial assets
Fair value of assets on recurring basis	4,704	5,786
Level 1 [Member] | State and municipal bonds [Member]
Summary of Company's fair value hierarchy for its financial assets
Fair value of assets on recurring basis
Level 1 [Member] | Federal agency and corporate obligations [Member]
Summary of Company's fair value hierarchy for its financial assets
Fair value of assets on recurring basis
Level 1 [Member] | ARS [Member]
Summary of Company's fair value hierarchy for its financial assets
Fair value of assets on recurring basis
Level 2 [Member]
Summary of Company's fair value hierarchy for its financial assets
Fair value of assets on recurring basis	155,642	137,991
Level 2 [Member] | Money market funds [Member]
Summary of Company's fair value hierarchy for its financial assets
Fair value of assets on recurring basis
Level 2 [Member] | State and municipal bonds [Member]
Summary of Company's fair value hierarchy for its financial assets
Fair value of assets on recurring basis	14,096	9,482
Level 2 [Member] | Federal agency and corporate obligations [Member]
Summary of Company's fair value hierarchy for its financial assets
Fair value of assets on recurring basis	141,546	128,509
Level 2 [Member] | ARS [Member]
Summary of Company's fair value hierarchy for its financial assets
Fair value of assets on recurring basis
Level 3 [Member]
Summary of Company's fair value hierarchy for its financial assets
Fair value of assets on recurring basis	9,686	9,565
Level 3 [Member] | Money market funds [Member]
Summary of Company's fair value hierarchy for its financial assets
Fair value of assets on recurring basis
Level 3 [Member] | State and municipal bonds [Member]
Summary of Company's fair value hierarchy for its financial assets
Fair value of assets on recurring basis
Level 3 [Member] | Federal agency and corporate obligations [Member]
Summary of Company's fair value hierarchy for its financial assets
Fair value of assets on recurring basis
Level 3 [Member] | ARS [Member]
Summary of Company's fair value hierarchy for its financial assets
Fair value of assets on recurring basis	$ 9,686	$ 9,565

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Marketable Investments (Details 4) (ARS [Member], Level 3 [Member], USD $) In Thousands, unless otherwise specified	3 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Dec. 31, 2011	Dec. 31, 2010
ARS [Member] | Level 3 [Member]
Summary of Changes in fair value of Level 3 financial assets
Fair value of assets, Beginning Balance			$ 9,565	$ 9,117
Sales
Included in other comprehensive income (loss)	121	142
Fair value of assets, Ending Balance	$ 9,686	$ 9,259	$ 9,565	$ 9,117

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Interim Consolidated Financial Statements

6 Months Ended

Jun. 30, 2012

Interim Consolidated Financial Statements [Abstract]

Interim Consolidated Financial Statements

Note 1 — Interim Consolidated Financial Statements

Basis of Presentation

The accompanying unaudited interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for reporting on Form 10-Q. Accordingly, certain information and footnote disclosures required for complete financial statements are not included herein. The year-end balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America. It is recommended that these financial statements be read in conjunction with the consolidated financial statements and related notes that appear in the Forrester Research, Inc. (“Forrester”) Annual Report on Form 10-K for the year ended December 31, 2011. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation of the financial position, results of operations, and cash flows as of the dates and for the periods presented have been included. The results of operations for the three and six months ended June 30, 2012 may not be indicative of the results for the year ending December 31, 2012, or any other period.

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Marketable Investments (Details Textual) (USD $) In Millions, unless otherwise specified	6 Months Ended									6 Months Ended
	Jun. 30, 2012	Jun. 30, 2012 Minimum [Member]	Jun. 30, 2011 Minimum [Member]	Jun. 30, 2012 Maximum [Member]	Jun. 30, 2011 Maximum [Member]	Jun. 30, 2012 Accumulated Net Unrealized Investment Gain (Loss) [Member]	Dec. 31, 2011 Accumulated Net Unrealized Investment Gain (Loss) [Member]	Jun. 30, 2012 Federal agency and corporate obligations [Member]	Dec. 31, 2011 Federal agency and corporate obligations [Member]	Jun. 30, 2012 ARS [Member] Level 3 [Member]
Marketable Investments (Textual) [Abstract]
Cash and cash equivalents								$ 6.9	$ 1.0
Original maturities	90 days
Intervals for each security		7 days		35 days
Interest rates on securities ranged		0.11%	0.19%	0.46%	0.60%
Weighted average interest rate										0.31%
Weighted average discount rate										3.07%
Weighted average holding period										5 years
Unrealized loss recorded in other comprehensive loss						$ 1.3	$ 1.4

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Stockholders' Equity (Details 3) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Equity Incentive Plans [Member]
Valuation of options granted under the equity incentive plans and shares subject to purchase under the employees stock purchase plan
Average risk-free interest rate	0.89%	1.69%	0.89%	1.63%
Expected dividend yield	1.70%		1.70%
Expected life	4 years 6 months	3 years 6 months	4 years 6 months	3 years 6 months
Expected volatility	40.00%	40.00%	40.00%	40.00%
Weighted average fair value	$ 9.81	$ 11.79	$ 9.84	$ 11.54
Employee Stock Purchase Plan [Member]
Valuation of options granted under the equity incentive plans and shares subject to purchase under the employees stock purchase plan
Average risk-free interest rate	0.14%	0.18%	0.14%	0.18%
Expected dividend yield	1.70%		1.70%
Expected life	6 months	6 months	6 months	6 months
Expected volatility	31.00%	28.00%	31.00%	28.00%
Weighted average fair value	$ 7.54	$ 7.55	$ 7.54	$ 7.55

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Consolidated Balance Sheets (Unaudited) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Current Assets:
Cash and cash equivalents	$ 87,663	$ 81,047
Marketable investments (Note 3)	148,777	136,991
Accounts receivable, net	47,545	81,378
Deferred commissions	9,370	12,010
Prepaid expenses and other current assets	24,934	25,935
Total current assets	318,289	337,361
Long-term marketable investments (Note 3)	9,686	9,565
Property and equipment, net	48,840	50,448
Goodwill	71,388	71,543
Intangible assets, net	9,029	10,317
Other assets	11,689	8,344
Total assets	468,921	487,578
Current Liabilities:
Accounts payable	982	1,223
Accrued expenses and other current liabilities	28,775	30,153
Deferred revenue	134,550	147,887
Total current liabilities	164,307	179,263
Non-current liabilities	17,444	17,580
Total liabilities	181,751	196,843
Commitments
Stockholders' Equity (Note 7):
Preferred stock, $.01 par value, Authorized - 500 shares, issued and outstanding - none
Common stock, $.01 par value,Authorized - 125,000 shares,Issued - 31,255 and 30,962 as of June 30, 2012 and December 31, 2011, respectively Outstanding- 22,530 and 22,747 as of June 30, 2012 and December 31, 2011, respectively	313	310
Additional paid-in capital	382,494	373,591
Retained earnings	109,256	104,662
Treasury stock- 8,725 and 8,215 as of June 30, 2012 and December 31, 2011, respectively, at cost	(198,052)	(181,000)
Accumulated other comprehensive loss	(6,841)	(6,828)
Total stockholders' equity	287,170	290,735
Total liabilities and stockholders' equity	$ 468,921	$ 487,578

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Consolidated Statements of Comprehensive Income (Parenthetical) (Unaudited) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Consolidated Statements of Comprehensive Income [Abstract]
Taxes (benefits) on unrealized gain (loss)	$ 26	$ 94	$ 166	$ 3
Taxes (benefits) on reclassification adjustment	$ 2		$ 10	$ 3

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Reorganization (Details Textual) (USD $) In Millions, unless otherwise specified	3 Months Ended	6 Months Ended
	Dec. 31, 2011 Person	Jun. 30, 2012 Person
Reorganization (Textual) [Abstract]
Severance Costs	$ 0.4	$ 1.4
Number of sales employees for which severance was incurred based on statutory termination benefits.	3
Number of additional employees terminated related to sales reorganization and other cost reduction initiatives.		17

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Stockholders' Equity (Tables)

6 Months Ended

Jun. 30, 2012

Stockholders' Equity [Abstract]

Summary of Stock option activity

	Number of Shares			Weighted - Average Exercise Price Per Share		Weighted - Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value
Outstanding at December 31, 2011		2,130		$	27.46
Granted		359			33.90
Exercised		(262	)		25.29
Forfeited		(47	)		31.23
Outstanding at June 30, 2012		2,180		$	28.70		6.72	$	11,726
Exercisable at June 30, 2012		1,253		$	25.90		5.11	$	10,080

Details of Restricted stock unit activity

	Number of Shares			Weighted- Average Grant Date Fair Value
Unvested at December 31, 2011		267		$	29.93
Granted		179			33.88
Vested or settled		(49	)		27.60
Forfeited		(57	)		26.57
Unvested at June 30, 2012		340		$	32.92

Summary of Stock based compensation recorded in expense categories

	Three Months Ended June 30,				Six Months Ended June 30,
	2012		2011		2012		2011
Cost of services and fulfillment	$	725	$	32	$	1,378	$	647
Selling and marketing		207		53		431		392
General and administrative		257		158		703		642
Total	$	1,189	$	243	$	2,512	$	1,681

Valuation of options granted under the equity incentive plans and shares subject to purchase under the employees stock purchase plan

	Three Months Ended June 30, 2012						Three Months Ended June 30, 2011
	Equity Incentive Plans			Employee Stock Purchase Plan			Equity Incentive Plans			Employee Stock Purchase Plan
Average risk-free interest rate		0.89	%		0.14	%		1.69	%		0.18	%
Expected dividend yield		1.7	%		1.7	%		None			None
Expected life		4.5 Years			0.5 Years			3.5 Years			0.5 Years
Expected volatility		40	%		31	%		40	%		28	%
Weighted average fair value	$	9.81		$	7.54		$	11.79		$	7.55
	Six Months Ended June 30, 2012						Six Months Ended June 30, 2011
	Equity Incentive Plans			Employee Stock Purchase Plan			Equity Incentive Plans			Employee Stock Purchase Plan
Average risk-free interest rate		0.89	%		0.14	%		1.63	%		0.18	%
Expected dividend yield		1.7	%		1.7	%		None			None
Expected life		4.5 Years			0.5 Years			3.5 Years			0.5 Years
Expected volatility		40	%		31	%		40	%		28	%
Weighted average fair value	$	9.84		$	7.54		$	11.54		$	7.55

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Net Income Per Common Share (Details) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Summary of Basic and diluted weighted average common shares
Basic weighted average common shares outstanding	22,583	22,684	22,660	22,698
Weighted average common equivalent shares	440	519	438	529
Diluted weighted average common shares outstanding	23,023	23,203	23,098	23,227
Options excluded from diluted weighted average share calculation as effect would have been anti-dilutive	559	121	483	89

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Acquisition (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012
Assets:
Cash	$ 85
Accounts receivable	561
Other current assets	285
Goodwill	3,695
Intangible assets	4,815
Total assets	9,441
Liabilities:
Accrued expenses	160
Deferred revenue	312
Total liabilities	472
Net assets acquired	$ 8,969

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Consolidated Statements of Cash Flows (Unaudited) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
Cash flows from operating activities:
Net income	$ 10,950	$ 8,381
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	4,248	1,915
Amortization of intangible assets	1,200	1,219
Net gains from investments	(143)	(640)
Deferred income taxes	(4,291)	1,754
Stock-based compensation	2,512	1,681
Amortization of premium on investments	1,460	1,683
Foreign currency losses	239	1,011
Changes in assets and liabilities, net of acquisitions
Accounts receivable	33,661	27,160
Deferred commissions	2,647	1,834
Prepaid expenses and other current assets	234	(590)
Accounts payable	(244)	(1,044)
Accrued expenses and other liabilities	(130)	(2,699)
Deferred revenue	(12,944)	(3,522)
Net cash provided by operating activities	39,399	38,143
Cash flows from investing activities:
Acquisitions		(7,031)
Purchases of property and equipment	(3,245)	(26,100)
Purchases of marketable investments	(65,713)	(48,361)
Proceeds from sales and maturities of marketable investments	52,845	31,624
Change in restricted cash	946	11,175
Other investing activity	124	247
Net cash used in investing activities	(15,043)	(38,446)
Cash flows from financing activities:
Dividends paid on common stock	(6,356)
Repurchases of common stock	(17,052)	(13,395)
Proceeds from issuance of common stock under employee equity incentive plans	6,634	6,425
Excess tax benefits from stock-based compensation	332	332
Payment of deferred acquisition consideration	(739)
Net cash used in financing activities	(17,181)	(6,638)
Effect of exchange rate changes on cash and cash equivalents	(559)	3,199
Net increase (decrease) in cash and cash equivalents	6,616	(3,742)
Cash and cash equivalents, beginning of period	81,047	86,927
Cash and cash equivalents, end of period	$ 87,663	$ 83,185

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Consolidated Balance Sheets (Parenthetical) (Unaudited) (USD $) In Thousands, except Per Share data, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Consolidated Balance Sheets [Abstract]
Preferred stock, Par value	$ 0.01	$ 0.01
Preferred stock, Shares Authorized	500	500
Preferred stock, Shares issued
Preferred stock, Shares outstanding
Common stock, Par value	$ 0.01	$ 0.01
Common stock, Shares Authorized	125,000	125,000
Common stock, Shares Issued	31,255	30,962
Common stock, Shares Outstanding	22,530	22,747
Treasury stock, Shares	8,725	8,215

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Recent Accounting Pronouncements

6 Months Ended

Jun. 30, 2012

Recent Accounting Pronouncements [Abstract]

Recent Accounting Pronouncements

Note 10 — Recent Accounting Pronouncements

In May 2011, the Financial Accounting Standards Board (“FASB”) issued amended guidance on fair value measurement and related disclosures. The new guidance clarifies the concepts applicable for fair value measurement of non-financial assets and requires the disclosure of quantitative information about the unobservable inputs used in a fair value measurement. This guidance is effective for reporting periods beginning after December 15, 2011 and has been applied prospectively. The adoption of this amended guidance did not have a material impact on the Company’s consolidated financial statements.

In June 2011, the FASB amended its accounting guidance on the presentation of other comprehensive income (OCI) in an entity’s financial statements. The amended guidance eliminates the option to present the components of OCI as part of the statement of changes in shareholders equity and provides two options for presenting OCI: in a statement included in the income statement or in a separate statement immediately following the income statement. The amendments do not change the guidance for the items that have to be reported in OCI or when an item of OCI has to be moved into net income. The Company adopted this guidance as of January 1, 2012 by presenting a separate statement of comprehensive income.

In September 2011, the FASB issued updated guidance on the periodic testing of goodwill for impairment. The updated guidance gives companies the option to perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. The amendment is intended to reduce the cost and complexity of the annual goodwill impairment test by providing entities an option to perform a qualitative assessment to determine whether further impairment testing is necessary. The updated accounting guidance is effective for fiscal years beginning after December 15, 2011 and the adoption of this guidance as of January 1, 2012 did not have a material impact on the Company’s consolidated financial statements.

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Document and Entity Information	6 Months Ended
	Jun. 30, 2012	Aug. 06, 2012
Document and Entity Information [Abstract]
Entity Registrant Name	FORRESTER RESEARCH INC
Entity Central Index Key	0001023313
Document Type	10-Q
Document Period End Date	Jun. 30, 2012
Amendment Flag	false
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	Q2
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		22,418,000

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Acquisition (Tables)

6 Months Ended

Jun. 30, 2012

Acquisition [Abstract]

Summary of the purchase price allocation

Assets:
Cash	$	85
Accounts receivable		561
Other current assets		285
Goodwill		3,695
Intangible assets		4,815
Total assets		9,441
Liabilities:
Accrued expenses		160
Deferred revenue		312
Total liabilities		472
Net assets acquired	$	8,969

Summary of identifiable intangible assets acquired and their respective weighted average lives

	Assigned Value		Useful Life (in years)
Customer relationships	$	3,605		7.5
Research content		1,080		1.5
Backlog		130		1.0
	$	4,815

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Consolidated Statements of Income (Unaudited) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Revenues:
Research services	$ 51,072	$ 47,341	$ 100,832	$ 91,888
Advisory services and other	28,021	26,109	48,521	47,304
Total revenues	79,093	73,450	149,353	139,192
Operating expenses:
Cost of services and fulfillment	29,828	28,024	56,766	53,522
Selling and marketing	26,267	26,009	51,400	51,474
General and administrative	8,645	8,330	18,256	17,248
Depreciation	2,255	945	4,248	1,915
Amortization of intangible assets	586	526	1,200	1,219
Reorganization costs	51		1,394
Total operating expenses	67,632	63,834	133,264	125,378
Income from operations	11,461	9,616	16,089	13,814
Other income (expense), net	130	4	539	(105)
Gains on investments, net	84	58	143	640
Income before income taxes	11,675	9,678	16,771	14,349
Income tax provision	3,906	4,208	5,821	5,968
Net income	$ 7,769	$ 5,470	$ 10,950	$ 8,381
Basic income per common share	$ 0.34	$ 0.24	$ 0.48	$ 0.37
Diluted income per common share	$ 0.34	$ 0.24	$ 0.47	$ 0.36
Basic weighted average common shares outstanding	22,583	22,684	22,660	22,698
Diluted weighted average common shares outstanding	23,023	23,203	23,098	23,227
Cash dividends declared per common share	$ 0.14		$ 0.28

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Reorganization

6 Months Ended

Jun. 30, 2012

Reorganization [Abstract]

Reorganization

Note 5 — Reorganization

The following table rolls forward the activity in the reorganization accrual for the six months ended June 30, 2012 (in thousands):

	Workforce Reduction
Accrual at December 31, 2011	$	375
Additions		1,394
Cash payments		(1,567	)
Accrual at June 30, 2012	$	202

In the first quarter of 2012 the Company realigned its sales force to simplify the selling process to its customers and to increase the productivity of the sales organization. The Company incurred approximately $0.4 million of severance costs in the fourth quarter of 2011 for three sales employees located outside of the U.S. based on statutory termination benefits in their country of employment and the fact that termination was considered probable at December 31, 2011. The Company incurred an additional $1.4 million of severance and related costs in the six months ended June 30, 2012 for the termination of 17 additional employees related to the sales reorganization and other cost reduction initiatives. The remaining accrual at June 30, 2012 is expected to be paid by the end of 2012.

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Non-Marketable Investments

6 Months Ended

Jun. 30, 2012

Non-Marketable Investments [Abstract]

Non-Marketable Investments

Note 4 — Non-Marketable Investments

At June 30, 2012 and December 31, 2011, the carrying value of the Company’s non-marketable investments, which were composed primarily of interests in technology-related private equity funds, was $7.8 million and $7.9 million, respectively.

One of the Company’s investments, with a book value of $1.5 million at both June 30, 2012 and December 31, 2011, is being accounted for using the cost method and, accordingly, is valued at cost unless an other-than-temporary impairment in its value occurs. The other investments are being accounted for using the equity method as the investments are limited partnerships and the Company has an ownership interest in excess of 5% and, accordingly, the Company records its share of the investee’s operating results each period. The Company recorded a gain from its non-marketable investments of $0.1 million and $0.1 million during the three months ended June 30, 2012 and 2011, respectively, and $0.1 million and $0.6 million during the six months ended June 30, 2012 and 2011, respectively, which are included in gains on investments, net in the Consolidated Statements of Income.

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Operating Segments (Tables)

6 Months Ended

Jun. 30, 2012

Operating Segments [Abstract]

Summary of reportable segments

	BT		M&S		Events		Consolidated
Three Months Ended June 30, 2012
Revenue	$	40,559	$	30,186	$	8,348	$	79,093
Direct margin		26,666		20,240		4,260		51,166
Selling, marketing, administrative and other expenses								(39,119	)
Amortization of intangible assets								(586	)
Income from operations							$	11,461
	BT		M&S		Events		Consolidated
Three Months Ended June 30, 2011
Revenue	$	37,830	$	28,928	$	6,692	$	73,450
Direct margin		24,542		19,398		3,605		47,545
Selling, marketing, administrative and other expenses								(37,403	)
Amortization of intangible assets								(526	)
Income from operations							$	9,616
	BT		M&S		Events		Consolidated
Six Months Ended June 30, 2012
Revenue	$	80,215	$	60,035	$	9,103	$	149,353
Direct margin		53,042		40,751		3,967		97,760
Selling, marketing, administrative and other expenses								(80,471	)
Amortization of intangible assets								(1,200	)
Income from operations							$	16,089
	BT		M&S		Events		Consolidated
Six Months Ended June 30, 2011
Revenue	$	74,285	$	56,210	$	8,697	$	139,192
Direct margin		49,409		37,462		4,193		91,064
Selling, marketing, administrative and other expenses								(76,031	)
Amortization of intangible assets								(1,219	)
Income from operations							$	13,814

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Marketable Investments (Tables)

6 Months Ended

Jun. 30, 2012

Marketable Investments [Abstract]

Summary of the Company 's marketable investments

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Market Value
June 30, 2012
Available-for-sale securities
State and municipal obligations	$	14,093	$	7	$	(4	)	$	14,096
Federal agency and corporate obligations		134,539		253		(111	)		134,681
Total short-term available-for-sale securities		148,632		260		(115	)		148,777
ARS, long-term		11,000		—		(1,314	)		9,686
Total available-for-sale securities	$	159,632	$	260	$	(1,429	)	$	158,463
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Market Value
December 31, 2011
Available-for-sale securities
State and municipal obligations	$	9,485	$	9	$	(12	)	$	9,482
Federal agency and corporate obligations		127,717		127		(335	)		127,509
Total short-term available-for-sale securities		137,202		136		(347	)		136,991
ARS, long-term		11,000		—		(1,435	)		9,565
Total available-for-sale securities	$	148,202	$	136	$	(1,782	)	$	146,556

Summary of Auction Rate Securities at their contractual maturity date

	FY 2012		FY2013		FY2014		Thereafter		Total
State and municipal obligations	$	2,001	$	3,969	$	8,126	$	—	$	14,096
Federal agency and corporate obligations		24,797		48,514		45,274		16,096		134,681
ARS		—		—		—		9,686		9,686
Total	$	26,798	$	52,483	$	53,400	$	25,782	$	158,463

Summary of the gross unrealized losses and market value of available for sale securities with unrealized losses

	As of June 30, 2012
	Less Than 12 Months				12 Months or Greater
	Market Value		Unrealized Losses		Market Value		Unrealized Losses
State and municipal bonds	$	5,410	$	4	$	—	$	—
Federal agency and corporate obligations		38,904		109		4,032		2
ARS		—		—		9,686		1,314
Total	$	44,314	$	113	$	13,718	$	1,316

	As of December 31, 2011
	Less Than 12 Months				12 Months or Greater
	Market Value		Unrealized Losses		Market Value		Unrealized Losses
State and municipal bonds	$	2,763	$	9	$	1,107	$	3
Federal agency and corporate obligations		68,962		313		2,043		22
ARS		—		—		9,565		1,435
Total	$	71,725	$	322	$	12,715	$	1,460

Summary of Company's fair value hierarchy for its financial assets

	As of June 30, 2012
	Level 1		Level 2		Level 3		Total
Money market funds (1)	$	4,704	$	—	$	—	$	4,704
State and municipal obligations		—		14,096		—		14,096
Federal agency and corporate obligations (2)		—		141,546		—		141,546
ARS		—		—		9,686		9,686
Total	$	4,704	$	155,642	$	9,686	$	170,032
	As of December 31, 2011
	Level 1		Level 2		Level 3		Total
Money market funds (1)	$	5,786	$	—	$	—	$	5,786
State and municipal obligations		—		9,482		—		9,482
Federal agency and corporate obligations (2)		—		128,509		—		128,509
ARS		—		—		9,565		9,565
Total	$	5,786	$	137,991	$	9,565	$	153,342

Summary of changes in fair value of Level 3 financial assets

	ARS
Balance at December 31, 2011		9,565
Sales		—
Total unrealized gains (losses):
Included in other comprehensive income (loss)		121
Balance at June 30, 2012	$	9,686
	ARS
Balance at December 31, 2010		9,117
Sales		—
Total unrealized gains (losses):
Included in other comprehensive income (loss)		142
Balance at June 30, 2011	$	9,259

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Income Taxes

6 Months Ended

Jun. 30, 2012

Income Taxes [Abstract]

Income Taxes

Note 8 — Income Taxes

Forrester provides for income taxes on an interim basis according to management’s estimate of the effective tax rate expected to be applicable for the full fiscal year. Certain items such as changes in tax rates, foreign exchange gains or losses on the remeasurement of deferred tax liabilities and tax benefits related to disqualifying dispositions of incentive stock options are treated as discrete items and are recorded in the period in which they arise. The primary discrete items in the six months ended June 30, 2012 include a remeasurement gain of a euro-denominated deferred tax liability and deductions from disqualified dispositions of incentive stock options. The primary discrete item in the six months ended June 30, 2011 was a remeasurement loss of a euro-denominated deferred tax liability

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Net Income Per Common Share

6 Months Ended

Jun. 30, 2012

Net Income Per Common Share [Abstract]

Net Income Per Common Share

Note 6 — Net Income Per Common Share

Basic net income per common share is computed by dividing net income by the basic weighted average number of common shares outstanding during the period. Diluted net income per common share is computed by dividing net income by the diluted weighted average number of common shares and common equivalent shares outstanding during the period. The weighted average number of common equivalent shares outstanding has been determined in accordance with the treasury-stock method. Common equivalent shares consist of common stock issuable on the exercise of outstanding options and vesting of restricted stock units when dilutive.

Basic and diluted weighted average common shares are as follows (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2012		2011		2012		2011
Basic weighted average common shares outstanding		22,583		22,684		22,660		22,698
Weighted average common equivalent shares		440		519		438		529
Diluted weighted average common shares outstanding		23,023		23,203		23,098		23,227
Options excluded from diluted weighted average share calculation as effect would have been anti-dilutive		559		121		483		89

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Stockholders' Equity

6 Months Ended

Jun. 30, 2012

Stockholders' Equity [Abstract]

Stockholders' Equity

Note 7 — Stockholders’ Equity

Equity Plans

Stock option activity for the six months ended June 30, 2012 is presented below (in thousands, except per share data):

	Number of Shares			Weighted - Average Exercise Price Per Share		Weighted - Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value
Outstanding at December 31, 2011		2,130		$	27.46
Granted		359			33.90
Exercised		(262	)		25.29
Forfeited		(47	)		31.23
Outstanding at June 30, 2012		2,180		$	28.70		6.72	$	11,726
Exercisable at June 30, 2012		1,253		$	25.90		5.11	$	10,080

Restricted stock unit activity for the six months ended June 30, 2012 is presented below (in thousands, except per share data):

	Number of Shares			Weighted- Average Grant Date Fair Value
Unvested at December 31, 2011		267		$	29.93
Granted		179			33.88
Vested or settled		(49	)		27.60
Forfeited		(57	)		26.57
Unvested at June 30, 2012		340		$	32.92

Stock-Based Compensation

Forrester recognizes the fair value of stock-based compensation in net income 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 thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2012		2011		2012		2011
Cost of services and fulfillment	$	725	$	32	$	1,378	$	647
Selling and marketing		207		53		431		392
General and administrative		257		158		703		642
Total	$	1,189	$	243	$	2,512	$	1,681

In 2009, the Company issued to its employees 95,496 performance-based RSUs. The vesting of the RSUs was subject to performance criteria and would vest at 100% or 40% on April 1, 2012, or the RSUs could be forfeited, depending on whether specified revenue growth and certain operating margin targets related to full year 2011 performance were achieved. Based on 2011 financial performance, 40% of the then outstanding RSUs vested on April 1, 2012. Compensation expense in 2010 and 2009 was recognized based on an estimate of 100% vesting of the RSUs and in the second quarter of 2011 the Company modified it assessment of vesting to the 40% level.

In 2010, the Company issued to its employees approximately 63,000 performance-based RSUs. The vesting of the RSUs is subject to performance criteria and will vest at 100% or 40% on April 1, 2013, or the RSUs could be forfeited, depending on whether specified revenue growth and certain operating margin targets related to full year 2012 performance are achieved. Compensation expense through the third quarter of 2011 was recognized based on an estimate of 100% vesting of the RSUs and in the fourth quarter of 2011 the Company modified its assessment of vesting to a zero percent level. The Company continues to utilize a zero percent vesting estimate in 2012. In addition, Forrester issued approximately 42,000 RSUs during 2010 that generally vest equally over a four-year period.

In 2011, the Company issued to its employees approximately 71,000 performance-based RSUs. The vesting of the RSUs is subject to performance criteria and will vest at 100% or 40% on April 1, 2014, or the RSUs could be forfeited, depending on whether specified revenue growth and certain operating margin targets related to full year 2013 performance are achieved. Compensation expense through the third quarter of 2011 was recognized based on an estimate of 100% vesting of the RSUs and in the fourth quarter of 2011 the Company modified its assessment of vesting to a zero percent level. The Company continues to utilize a zero percent vesting estimate in 2012. In addition, Forrester issued approximately 48,000 RSUs during 2011 that generally vest equally over a four-year period.

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

	Three Months Ended June 30, 2012						Three Months Ended June 30, 2011
	Equity Incentive Plans			Employee Stock Purchase Plan			Equity Incentive Plans			Employee Stock Purchase Plan
Average risk-free interest rate		0.89	%		0.14	%		1.69	%		0.18	%
Expected dividend yield		1.7	%		1.7	%		None			None
Expected life		4.5 Years			0.5 Years			3.5 Years			0.5 Years
Expected volatility		40	%		31	%		40	%		28	%
Weighted average fair value	$	9.81		$	7.54		$	11.79		$	7.55
	Six Months Ended June 30, 2012						Six Months Ended June 30, 2011
	Equity Incentive Plans			Employee Stock Purchase Plan			Equity Incentive Plans			Employee Stock Purchase Plan
Average risk-free interest rate		0.89	%		0.14	%		1.63	%		0.18	%
Expected dividend yield		1.7	%		1.7	%		None			None
Expected life		4.5 Years			0.5 Years			3.5 Years			0.5 Years
Expected volatility		40	%		31	%		40	%		28	%
Weighted average fair value	$	9.84		$	7.54		$	11.54		$	7.55

Dividends

In the first six months of 2012, the Company declared and paid dividends of $0.28 per share or $6.4 million in the aggregate. In July 2012, the Company declared a dividend of $0.14 per share payable on September 19, 2012 to shareholders of record as of September 5, 2012.

Treasury Stock

The Company’s Board of Directors has authorized an aggregate $260.0 million to purchase common stock under the stock repurchase program. The shares repurchased may be used, among other things, in connection with the Company’s employee and director equity incentive and purchase plans. During the six months ended June 30, 2012 the Company repurchased approximately 0.5 million shares of common stock at an aggregate cost of approximately $17.1 million. As of June 30, 2012, the Company had cumulative repurchases of approximately 8.7 million shares of common stock at an aggregate cost of approximately $198.1 million under the program.

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Operating Segments

6 Months Ended

Jun. 30, 2012

Operating Segments [Abstract]

Operating Segments

Note 9 — Operating Segments

Forrester is organized into two client groups with each client group responsible for writing relevant research for the roles within the client organization on a worldwide basis. The two client groups, which are considered operating segments, are: Business Technology (“BT”) and Marketing and Strategy (“M&S”). In addition, the Company’s Events segment supports both client groups. Each client group generates revenue through sales of research, advisory and other service offerings targeted at specific roles within their targeted clients. Each client group consists of research personnel focused primarily on issues relevant to particular roles and to the day-to-day responsibilities of persons within the roles. Amounts included in the Events segment relate to the operations of the events production department. Revenue reported in the Events segment consists primarily of sponsorships and sales of event tickets to Forrester events.

Forrester evaluates reportable segment performance and allocates resources based on direct margin. Direct margin, as presented below, is defined as operating income excluding sales expenses, certain marketing and fulfillment expenses, stock-based compensation expense, general and administrative expenses, depreciation expense, and amortization of intangibles. In the second quarter of 2012, the Company modified its management structure by consolidating its former Technology Industry client group segment into its two remaining client groups: Business Technology and Marketing and Strategy. In addition, in the first quarter of 2012, the Company modified its calculation of segment direct margin to exclude certain marketing costs and Springboard integration costs and to include certain business development costs. Accordingly, the 2011 amounts have been reclassified to conform to the current presentation. The accounting policies used by the reportable segments are the same as those used in the consolidated financial statements.

The following tables present information about reportable segments (in thousands):

	BT		M&S		Events		Consolidated
Three Months Ended June 30, 2012
Revenue	$	40,559	$	30,186	$	8,348	$	79,093
Direct margin		26,666		20,240		4,260		51,166
Selling, marketing, administrative and other expenses								(39,119	)
Amortization of intangible assets								(586	)
Income from operations							$	11,461
	BT		M&S		Events		Consolidated
Three Months Ended June 30, 2011
Revenue	$	37,830	$	28,928	$	6,692	$	73,450
Direct margin		24,542		19,398		3,605		47,545
Selling, marketing, administrative and other expenses								(37,403	)
Amortization of intangible assets								(526	)
Income from operations							$	9,616
	BT		M&S		Events		Consolidated
Six Months Ended June 30, 2012
Revenue	$	80,215	$	60,035	$	9,103	$	149,353
Direct margin		53,042		40,751		3,967		97,760
Selling, marketing, administrative and other expenses								(80,471	)
Amortization of intangible assets								(1,200	)
Income from operations							$	16,089
	BT		M&S		Events		Consolidated
Six Months Ended June 30, 2011
Revenue	$	74,285	$	56,210	$	8,697	$	139,192
Direct margin		49,409		37,462		4,193		91,064
Selling, marketing, administrative and other expenses								(76,031	)
Amortization of intangible assets								(1,219	)
Income from operations							$	13,814

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Reorganization (Details) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2012
Summary of rolls forward the activity in the reorganization accrual
Accrual at December 31, 2011	$ 375
Additions	1,394
Cash payments	(1,567)
Accrual at June 30, 2012	$ 202

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Net Income Per Common Share (Tables)

6 Months Ended

Jun. 30, 2012

Net Income Per Common Share [Abstract]

Summary of Basic and diluted weighted average common shares

	Three Months Ended June 30,				Six Months Ended June 30,
	2012		2011		2012		2011
Basic weighted average common shares outstanding		22,583		22,684		22,660		22,698
Weighted average common equivalent shares		440		519		438		529
Diluted weighted average common shares outstanding		23,023		23,203		23,098		23,227
Options excluded from diluted weighted average share calculation as effect would have been anti-dilutive		559		121		483		89

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Acquisition (Details Textual) (USD $) In Millions, unless otherwise specified	0 Months Ended
	May 12, 2011	Jun. 30, 2012
Business Acquisition [Line Items]
Entity acquisition liability incurred		$ 2.3
Acquisition (Textual) [Abstract]
Business Acquisition Effective Date	May 12, 2011
Purchase Price		9.0
Cash paid on acquisition date	6.7	1.2
Payment for employee retention and Lease extension		0.9
Goodwill deductible for tax purpose		2.1
Accrued Liabilities [Member]
Business Acquisition [Line Items]
Entity acquisition liability incurred		$ 1.1

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Stockholders' Equity (Details Textual) (USD $)	6 Months Ended						3 Months Ended				6 Months Ended
	Jun. 30, 2012	Sep. 19, 2012	Dec. 31, 2011	Mar. 31, 2011 Performance Based Restricted Stock Units [Member]	Mar. 31, 2010 Performance Based Restricted Stock Units [Member]	Mar. 31, 2009 Performance Based Restricted Stock Units [Member]	Jun. 30, 2011 Restricted Stock Units (RSUs) [Member]	Mar. 31, 2011 Restricted Stock Units (RSUs) [Member]	Mar. 31, 2010 Restricted Stock Units (RSUs) [Member]	Mar. 31, 2009 Restricted Stock Units (RSUs) [Member]	Jun. 30, 2012 Restricted Stock Units (RSUs) [Member]	Jun. 30, 2011 Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
RSU's issued	340,000		267,000	71,000	63,000	95,496
Performance of RSU's Vesting								100% or 40% on April 1, 2014	100% or 40% on April 1, 2013	100% or 40% on April 1, 2012
Performance of Outstanding RSU's										40.00%
Compensation expense Estimate vesting								100.00%	100.00%	100.00%
Modified Estimate vesting of RSU's							40.00%				0.00%	0.00%
Additional RSU's issued	179,000							48,000	42,000
Vest period of additional RSU's issued								4 years	4 years
Stockholders Equity (Textual) [Abstract]
Dividend declared per share	$ 0.28
Dividends Payable, Amount Per Share		$ 0.14
Aggregate dividend declared	$ 6,400,000
Purchase of Common Stock	260,000,000
Repurchase of Common Stock	8,725,000		8,215,000
Aggregate cost of Repurchase of Common Stock	198,052,000		181,000,000
Cumulative Repurchase of Common Stock	8,700,000
Cumulative aggregate cost of Repurchase of Common Stock	$ 198,100,000

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Consolidated Statements of Comprehensive Income (Unaudited) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Consolidated Statements of Comprehensive Income [Abstract]
Net income	$ 7,769	$ 5,470	$ 10,950	$ 8,381
Other comprehensive income (loss), net of taxes:
Cumulative translation adjustments	(1,013)	627	(332)	2,891
Changes in market value of investments:
Unrealized gain, net of taxes of $26 and $94 for the three months ended June 30, 2012 and 2011, and $166 and $3 for the six months ended June 30, 2012 and 2011	17	205	333	208
Less: reclassification adjustment for net gains realized in net income, net of taxes of $2 for the three months ended June 30, 2012, and $10 and $3 for the six months ended June 30, 2012 and 2011	(1)		(14)	(4)
Net change in market value of investments	16	205	319	204
Other comprehensive income (loss)	(997)	832	(13)	3,095
Comprehensive income	$ 6,772	$ 6,302	$ 10,937	$ 11,476

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Marketable Investments

6 Months Ended

Jun. 30, 2012

Marketable Investments [Abstract]

Marketable Investments

Note 3 — Marketable Investments

The following table summarizes the Company’s marketable investments (in thousands):

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Market Value
June 30, 2012
Available-for-sale securities
State and municipal obligations	$	14,093	$	7	$	(4	)	$	14,096
Federal agency and corporate obligations		134,539		253		(111	)		134,681
Total short-term available-for-sale securities		148,632		260		(115	)		148,777
ARS, long-term		11,000		—		(1,314	)		9,686
Total available-for-sale securities	$	159,632	$	260	$	(1,429	)	$	158,463
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Market Value
December 31, 2011
Available-for-sale securities
State and municipal obligations	$	9,485	$	9	$	(12	)	$	9,482
Federal agency and corporate obligations		127,717		127		(335	)		127,509
Total short-term available-for-sale securities		137,202		136		(347	)		136,991
ARS, long-term		11,000		—		(1,435	)		9,565
Total available-for-sale securities	$	148,202	$	136	$	(1,782	)	$	146,556

Realized gains and losses on securities are included in earnings and are determined using the specific identification method. Realized gains or losses on the sale of the Company’s federal agency, state, municipal and corporate obligations were not material in the three and six months ended June 30, 2012 or 2011.

The following table summarizes the maturity periods of the marketable securities in the Company’s portfolio as of June 30, 2012. In February 2008, certain auction rate securities (“ARS”) that Forrester held experienced failed auctions that limited the liquidity of these securities. These auction failures have continued and based on current market conditions, it is likely that auction failures will continue. The following table reflects the ARS at their contractual maturity dates of between 2024 and 2034 (in thousands).

	FY 2012		FY2013		FY2014		Thereafter		Total
State and municipal obligations	$	2,001	$	3,969	$	8,126	$	—	$	14,096
Federal agency and corporate obligations		24,797		48,514		45,274		16,096		134,681
ARS		—		—		—		9,686		9,686
Total	$	26,798	$	52,483	$	53,400	$	25,782	$	158,463

The following table shows the gross unrealized losses and market value of Forrester’s available-for-sale securities with unrealized losses that are not deemed to be other-than-temporary, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position (in thousands):

	As of June 30, 2012
	Less Than 12 Months				12 Months or Greater
	Market Value		Unrealized Losses		Market Value		Unrealized Losses
State and municipal bonds	$	5,410	$	4	$	—	$	—
Federal agency and corporate obligations		38,904		109		4,032		2
ARS		—		—		9,686		1,314
Total	$	44,314	$	113	$	13,718	$	1,316

	As of December 31, 2011
	Less Than 12 Months				12 Months or Greater
	Market Value		Unrealized Losses		Market Value		Unrealized Losses
State and municipal bonds	$	2,763	$	9	$	1,107	$	3
Federal agency and corporate obligations		68,962		313		2,043		22
ARS		—		—		9,565		1,435
Total	$	71,725	$	322	$	12,715	$	1,460

Fair Value

The Company measures certain financial assets at fair value on a recurring basis, including cash equivalents and available-for-sale securities. The fair values of these financial assets have been classified as Level 1, 2 or 3 within the fair value hierarchy as described in the accounting standards for fair value measurements.

Level 1 — Fair value based on quoted prices in active markets for identical assets or liabilities.

Level 2 — Fair value based on inputs other than Level 1 inputs that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3 — Fair value based on unobservable inputs that are supported by little or no market activity and such inputs are significant to the fair value of the assets or liabilities.

The following table represents the Company’s fair value hierarchy for its financial assets (cash equivalents and investments) measured at fair value on a recurring basis as of June 30, 2012 and December 31, 2011 (in thousands):

	As of June 30, 2012
	Level 1		Level 2		Level 3		Total
Money market funds (1)	$	4,704	$	—	$	—	$	4,704
State and municipal obligations		—		14,096		—		14,096
Federal agency and corporate obligations (2)		—		141,546		—		141,546
ARS		—		—		9,686		9,686
Total	$	4,704	$	155,642	$	9,686	$	170,032
	As of December 31, 2011
	Level 1		Level 2		Level 3		Total
Money market funds (1)	$	5,786	$	—	$	—	$	5,786
State and municipal obligations		—		9,482		—		9,482
Federal agency and corporate obligations (2)		—		128,509		—		128,509
ARS		—		—		9,565		9,565
Total	$	5,786	$	137,991	$	9,565	$	153,342

(1) Included in cash and cash equivalents.

(2) $6.9 million and $1.0 million included in cash and cash equivalents at June 30, 2012 and December 31, 2011, respectively, as original maturities at the time of purchase were 90 days or less.

Level 2 assets consist of the Company’s entire portfolio of federal, state, municipal and corporate bonds, excluding those municipal bonds described below with an auction reset feature. Level 2 assets have been initially valued at the transaction price and subsequently valued, at the end of each reporting period, typically utilizing third party pricing services or other market observable data. The pricing services utilize industry standard valuation methods, including both income and market based approaches and observable market inputs to determine value. These observable market inputs include reportable trades, benchmark yields, credit spreads, broker/dealer quotes, bids, offers, current spot rates and other industry and economic events.

Level 3 assets consist entirely of municipal bonds with an auction reset feature (ARS). Prior to 2008, the fair value of the ARS investments approximated par value due to the frequent resets through the auction process. While the Company continues to receive interest income on its ARS investments at each interest rate reset date (which occurs at either seven or 35 day intervals for each security), these investments trade infrequently and therefore do not have a readily determinable market value. Interest rates on the securities ranged from 0.11% to 0.46% and 0.19% to 0.60% during the six months ended June 30, 2012 and 2011, respectively. The Company values the ARS using a discounted cash flow model that includes unobservable inputs including estimates of interest rates, discounts rates and expected holding periods of the securities, which is considered a Level 3 valuation. Unobservable inputs included in the valuation as of June 30, 2012 included a weighted average interest rate of 0.31%, a weighted average discount rate of 3.07% and a weighted average holding period of 5 years. The valuation resulted in an unrealized loss recorded in other comprehensive loss in the Consolidated Balance Sheets of $1.3 million and $1.4 million at June 30, 2012 and December 31, 2011, respectively. The Company believes that the loss is temporary due to the strong underlying credit rating of the securities and the fact that the Company does not intend to sell the securities and is not likely to be required to sell the securities. The assumptions used in valuing the ARS are volatile and subject to change as the underlying sources of these assumptions and market conditions change. Significant increases or decreases in any of the valuation assumptions in isolation would result in a significant change in the fair value.

The following table provides a summary of changes in fair value of the Company’s Level 3 financial assets for the six months ended June 30, 2012 and 2011 (in thousands):

	ARS
Balance at December 31, 2011		9,565
Sales		—
Total unrealized gains (losses):
Included in other comprehensive income (loss)		121
Balance at June 30, 2012	$	9,686
	ARS
Balance at December 31, 2010		9,117
Sales		—
Total unrealized gains (losses):
Included in other comprehensive income (loss)		142
Balance at June 30, 2011	$	9,259

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Marketable Investments (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Available-for-sale securities
Amortized Cost	$ 159,632	$ 148,202
Gross Unrealized Gains	260	136
Gross Unrealized Losses	(1,429)	(1,782)
Total available-for-sale securities	158,463	146,556
State and municipal bonds [Member]
Available-for-sale securities
Amortized Cost	14,093	9,485
Gross Unrealized Gains	7	9
Gross Unrealized Losses	(4)	(12)
Total available-for-sale securities	14,096	9,482
Federal agency and corporate obligations [Member]
Available-for-sale securities
Amortized Cost	134,539	127,717
Gross Unrealized Gains	253	127
Gross Unrealized Losses	(111)	(335)
Total available-for-sale securities	134,681	127,509
Total short-term available-for-sale securities [Member]
Available-for-sale securities
Amortized Cost	148,632	137,202
Gross Unrealized Gains	260	136
Gross Unrealized Losses	(115)	(347)
Total available-for-sale securities	148,777	136,991
ARS, long-term [Member]
Available-for-sale securities
Amortized Cost	11,000	11,000
Gross Unrealized Gains
Gross Unrealized Losses	(1,314)	(1,435)
Total available-for-sale securities	$ 9,686	$ 9,565

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Stockholders' Equity (Details 1) (USD $) In Thousands, except Per Share data, unless otherwise specified	6 Months Ended
	Jun. 30, 2012
Details of Restricted stock unit activity
Number of Shares, Unvested at December 31, 2011	267
Weighted Average Grant Date Fair Value ,Unvested Beginning Balance	$ 29.93
Number of Shares, Granted	179
Weighted Average Grant Date Fair Value ,Granted	$ 33.88
Number of Shares, Vested or Settled	(49)
Weighted Average Grant Date Fair Value, Vested	$ 27.6
Number of Shares, Forfeited	(57)
Weighted Average Grant Date Fair Value, Forfeited	$ 26.57
Number of Shares, Unvested at June 30, 2012	340
Weighted Average Grant Date Fair Value , Ending Balance	$ 32.92

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Reorganization (Tables)

6 Months Ended

Jun. 30, 2012

Reorganization [Abstract]

Summary of rolls forward the activity in the reorganization accrual

	Workforce Reduction
Accrual at December 31, 2011	$	375
Additions		1,394
Cash payments		(1,567	)
Accrual at June 30, 2012	$	202