10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM10-Q

(MARK ONE)

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

FOR THE QUARTERLY PERIOD ENDED September 30, 2017

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  ☒     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  ☒     No  ☐

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

Large accelerated filer	☐	Accelerated filer	☒
Non-accelerated filer	☐ (Do not check if a smaller reporting company)	Smaller reporting company	☐
Emerging growth company	☐

If an emerging growth company, indicate by checkmark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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

As of November 3, 2017 17,975,000 shares of the registrant’s common stock were outstanding.

FORRESTER RESEARCH, INC.

INDEX TO FORM 10-Q

	PAGE
PART I. FINANCIAL INFORMATION	4
ITEM 1. Financial Statements (Unaudited)	4
Consolidated Balance Sheets as of September 30, 2017 and December 31, 2016	4
Consolidated Statements of Income for the Three and Nine Months Ended September 30, 2017 and 2016	5
Consolidated Statements of Comprehensive Income for the Three and Nine Months Ended September 30, 2017 and 2016	6
Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2017 and 2016	7
Notes to Consolidated Financial Statements	8
ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	17
ITEM 3. Quantitative and Qualitative Disclosures About Market Risk	26
ITEM 4. Controls and Procedures	26
PART II. OTHER INFORMATION	27
ITEM 1A. Risk Factors	27
ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds	27
ITEM 6. Exhibits	28

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PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

FORRESTER RESEARCH, INC.

CONSOLIDATED BALANCE SHEETS

(In thousands, except per share data, unaudited)

	September 30,			December 31,
	2017			2016
ASSETS
Current Assets:
Cash and cash equivalents	$	79,960		$	76,958
Marketable investments (Note 3)		54,019			61,147
Accounts receivable, net		39,481			58,812
Deferred commissions		9,146			12,052
Prepaid expenses and other current assets		15,817			14,467
Total current assets		198,423			223,436
Property and equipment, net		26,128			23,894
Goodwill		75,815			73,193
Intangible assets, net		927			1,464
Other assets		13,095			13,798
Total assets	$	314,388		$	335,785
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable	$	613		$	1,806
Accrued expenses and other current liabilities		36,838			41,403
Deferred revenue		132,929			134,265
Total current liabilities		170,380			177,474
Non-current liabilities		8,788			8,275
Total liabilities		179,168			185,749
Stockholders' Equity (Note 7):
Preferred stock, $0.01 par value
Authorized - 500 shares; issued and outstanding - none		—			—
Common stock, $0.01 par value
Authorized - 125,000 shares
Issued - 22,293 and 21,719 shares as of September 30, 2017 and December 31, 2016, respectively
Outstanding - 17,902 and 18,361 shares as of September 30, 2017 and December 31, 2016, respectively		223			217
Additional paid-in capital		175,218			157,569
Retained earnings		124,343			121,799
Treasury stock - 4,391 and 3,358 shares as of September 30, 2017 and December 31, 2016, respectively, at cost		(161,943	)		(121,976	)
Accumulated other comprehensive loss		(2,621	)		(7,573	)
Total stockholders’ equity		135,220			150,036
Total liabilities and stockholders’ equity	$	314,388		$	335,785

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

4

FORRESTER RESEARCH, INC.

CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except per share data, unaudited)

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2017			2016			2017			2016
Revenues:
Research services	$	54,235		$	52,727		$	160,553		$	160,998
Advisory services and events		26,134			24,700			86,743			81,651
Total revenues		80,369			77,427			247,296			242,649
Operating expenses:
Cost of services and fulfillment		32,508			29,889			100,814			95,429
Selling and marketing		29,225			27,751			90,355			87,490
General and administrative		10,083			10,086			30,672			30,359
Depreciation		1,607			1,941			4,775			5,982
Amortization of intangible assets		197			208			582			627
Reorganization costs		—			—			—			1,026
Total operating expenses		73,620			69,875			227,198			220,913
Income from operations		6,749			7,552			20,098			21,736
Other income, net		146			229			248			374
Losses on investments, net		(772	)		(1,085	)		(997	)		(1,139	)
Income before income taxes		6,123			6,696			19,349			20,971
Income tax provision		2,170			3,584			6,302			9,110
Net income	$	3,953		$	3,112		$	13,047		$	11,861
Basic income per common share	$	0.22		$	0.17		$	0.73		$	0.66
Diluted income per common share	$	0.22		$	0.17		$	0.72		$	0.65
Basic weighted average common shares outstanding		17,747			18,062			17,897			17,896
Diluted weighted average common shares outstanding		18,051			18,435			18,212			18,168
Cash dividends declared per common share	$	0.19		$	0.18		$	0.57		$	0.54

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

5

FORRESTER RESEARCH, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In thousands, unaudited)

	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2017		2016			2017		2016
Net income	$	3,953	$	3,112		$	13,047	$	11,861
Other comprehensive income (loss), net of taxes:
Foreign currency translation		1,601		(120	)		4,905		(68	)
Net change in market value of investments		23		(48	)		47		72
Other comprehensive income (loss)		1,624		(168	)		4,952		4
Comprehensive income	$	5,577	$	2,944		$	17,999	$	11,865

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)

	Nine Months Ended
	September 30,
	2017			2016
Cash flows from operating activities:
Net income	$	13,047		$	11,861
Adjustments to reconcile net income to net cash provided by operating    activities:
Depreciation		4,775			5,982
Amortization of intangible assets		582			627
Net losses from investments		997			1,139
Deferred income taxes		(921	)		(413	)
Stock-based compensation		6,423			5,731
Amortization of premium on investments		171			267
Foreign currency losses		444			98
Changes in assets and liabilities
Accounts receivable		20,140			31,078
Deferred commissions		2,906			3,890
Prepaid expenses and other current assets		(979	)		2,322
Accounts payable		(1,208	)		133
Accrued expenses and other liabilities		(6,041	)		(10,101	)
Deferred revenue		(3,473	)		(14,309	)
Net cash provided by operating activities		36,863			38,305
Cash flows from investing activities:
Purchases of property and equipment		(5,806	)		(3,334	)
Purchases of marketable investments		(27,430	)		(35,555	)
Proceeds from sales and maturities of marketable investments		34,458			20,086
Other investing activity		200			(49	)
Net cash provided by (used in) investing activities		1,422			(18,852	)
Cash flows from financing activities:
Dividends paid on common stock		(10,205	)		(9,696	)
Repurchases of common stock		(39,967	)		—
Proceeds from issuance of common stock under employee equity    incentive plans		13,866			9,987
Taxes paid related to net share settlements of stock-based compensation awards		(2,511	)		(2,069	)
Net cash used in financing activities		(38,817	)		(1,778	)
Effect of exchange rate changes on cash and cash equivalents		3,534			(870	)
Net increase in cash and cash equivalents		3,002			16,805
Cash and cash equivalents, beginning of period		76,958			53,331
Cash and cash equivalents, end of period	$	79,960		$	70,136

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, 2016. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair statement of the financial position, results of operations, comprehensive income and cash flows as of the dates and for the periods presented have been included. The results of operations for the three and nine months ended September 30, 2017 may not be indicative of the results for the year ending December 31, 2017, or any other period.

Fair Value Measurements

The carrying amounts reflected in the Consolidated Balance Sheets for cash and cash equivalents, accounts receivable, accounts payable, and accrued expenses approximate fair value due to their short-term maturities. See Note 3 – Marketable Investments - for the fair value of the Company’s marketable investments.

Adoption of New Accounting Pronouncements

The Company adopted the guidance in Accounting Standards Update ("ASU") No. 2016-09, Compensation - Stock Compensation - Improvements to Employee Share-Based Payment Accounting, on January 1, 2017. Under this standard, entities are permitted to make an accounting policy election to either estimate forfeitures on share-based payment awards, as previously required, or to recognize forfeitures as they occur. The Company has elected to recognize forfeitures as they occur and the impact of that change in accounting policy has been recorded as a$0.2 millioncumulative effect adjustment to increase retained earnings as of January 1, 2017.

Additionally, ASU No. 2016-09 requires that all income tax effects related to settlements of share-based payment awards be reported in earnings as an increase or decrease to income tax expense. Previously, income tax effects at settlement of an award were reported as an increase (or decrease) to additional paid-in capital to the extent that those benefits were greater than (or less than) the income tax effects reported in earnings during the award's vesting period. The requirement to report those income tax effects in earnings has been applied on a prospective basis to settlements occurring on or after January 1, 2017, and the impact of applying this guidance resulted in a $0.3 million tax benefit for the three and nine months ended September 30, 2017. Application of this guidance may result in fluctuations in the Company’s effective tax rate depending on how many options are exercised, how many restricted stock units vest and the volatility of the Company’s stock price.

ASU 2016-09 also requires that all income tax-related cash flows resulting from share-based payments be reported as operating activities in the statement of cash flows. Previously, income tax benefits at settlement of an award were reported as a reduction to operating cash flows and an increase to financing cash flows to the extent that those benefits exceeded the income tax benefits reported in earnings during the award's vesting period. In addition, the standard requires that cash paid by directly withholding shares for tax withholding purposes be classified as a financing activity in the statement of cash flows. For the nine months ended September 30, 2017, the Company reflected $2.5 million of tax withholding in financing activities. The Company has elected to apply the changes in cash flow classification on a retrospective basis resulting in an increase in operating cash flows, with a corresponding decrease in financing cash flows, of $2.4 million for the nine months ended September 30, 2016, as compared to the amounts previously reported.

The Company elected to early adopt the guidance in ASU No. 2016-16, Accounting for Income Taxes: Intra-Entity Asset Transfers of Assets Other than Inventory, on January 1, 2017. The guidance in this standard eliminates for all intra-entity sales of assets other than inventory, the exception under existing standards that permits the tax effects of intra-entity asset transfers to be deferred until the

8

transferred asset is sold to a third party or otherwise recovered through use. As a result, a reporting entity would recognize the tax expense from the sale of the asset in the seller’s tax jurisdiction when the transfer occurs and any deferred tax asset that arises in the buyer’s jurisdiction would also be recognized at the time of the transfer. As a result, the Company has recorded a $0.5 millioncumulative effect adjustment to reduce retained earnings as of January 1, 2017.

Note 2 — Accumulated Other Comprehensive Income (Loss)

The components of accumulated other comprehensive income (loss) are as follows (in thousands):

							Total
	Net UnrealizedGain			Cumulative			Accumulated
	(Loss) on Marketable			Translation			Other Comprehensive
	Investments			Adjustment			Income (Loss)
Balance at January 1, 2017	$	(83	)	$	(7,490	)	$	(7,573	)
Foreign currency translation		—			4,905			4,905
Unrealized gain on investments, net of tax of $29		47			—			47
Balance at September 30, 2017	$	(36	)	$	(2,585	)	$	(2,621	)

							Total
	Net Unrealized Gain			Cumulative			Accumulated
	(Loss) on Marketable			Translation			Other Comprehensive
	Investments			Adjustment			Income (Loss)
Balance at July 1, 2017	$	(59	)	$	(4,186	)	$	(4,245	)
Foreign currency translation		—			1,601			1,601
Unrealized gain on investments, net of tax of $14		23			—			23
Balance at September 30, 2017	$	(36	)	$	(2,585	)	$	(2,621	)

							Total
	Net Unrealized Gain			Cumulative			Accumulated
	(Loss) on Marketable			Translation			Other Comprehensive
	Investments			Adjustment			Income (Loss)
Balance at January 1, 2016	$	(100	)	$	(4,726	)	$	(4,826	)
Foreign currency translation		—			(68	)		(68	)
Unrealized gain on investments, net of tax of $46		72			—			72
Balance at September 30, 2016	$	(28	)	$	(4,794	)	$	(4,822	)

							Total
	Net Unrealized Gain			Cumulative			Accumulated
	(Loss) on Marketable			Translation			Other Comprehensive
	Investments			Adjustment			Income (Loss)
Balance at July 1, 2016	$	20		$	(4,674	)	$	(4,654	)
Foreign currency translation		—			(120	)		(120	)
Unrealized loss on investments, net of tax of $(33)		(48	)		—			(48	)
Balance at September 30, 2016	$	(28	)	$	(4,794	)	$	(4,822	)

Note 3 — Marketable Investments

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

	As of  September 30, 2017
			Gross		Gross
	Amortized		Unrealized		Unrealized			Market
	Cost		Gains		Losses			Value
Federal agency obligations	$	1,800	$	—	$	(4	)	$	1,796
Corporate obligations		52,277		7		(61	)		52,223
Total	$	54,077	$	7	$	(65	)	$	54,019

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	As of December 31, 2016
			Gross		Gross
	Amortized		Unrealized		Unrealized			Market
	Cost		Gains		Losses			Value
Federal agency obligations	$	1,800	$	—	$	(7	)	$	1,793
Corporate obligations		59,481		2		(129	)		59,354
Total	$	61,281	$	2	$	(136	)	$	61,147

Realized gains and losses on investments are included in earnings and are determined using the specific identification method. Realized gains or losses on the sale of the Company’s marketable investments were not material in the three and nine months ended September 30, 2017 and 2016.

The following table summarizes the maturity periods of the marketable investments in the Company’s portfolio as of September 30, 2017 (in thousands).

	FY 2017		FY 2018		FY 2019		Total
Federal agency obligations	$	—	$	1,796	$	—	$	1,796
Corporate obligations		4,000		28,559		19,664		52,223
Total	$	4,000	$	30,355	$	19,664	$	54,019

The following table shows the gross unrealized losses and market value of the Company’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  September 30, 2017
	Less Than 12 Months				12 Months or Greater
	Market		Unrealized		Market		Unrealized
	Value		Losses		Value		Losses
Federal agency obligations	$	-	$	—	$	1,796	$	4
Corporate obligations		25,039		30		17,640		31
Total	$	25,039	$	30	$	19,436	$	35

	As of December 31, 2016
	Less Than 12 Months				12 Months or Greater
	Market		Unrealized		Market		Unrealized
	Value		Losses		Value		Losses
Federal agency obligations	$	1,793	$	7	$	—	$	—
Corporate obligations		53,647		129		—		—
Total	$	55,440	$	136	$	—	$	—

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.

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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 (in thousands):

	As of  September 30, 2017
	Level 1		Level 2		Level 3		Total
Money market funds (1)	$	763	$	—	$	—	$	763
Federal agency obligations		—		1,796		—		1,796
Corporate obligations		—		52,223		—		52,223
Total	$	763	$	54,019	$	—	$	54,782

	As of December 31, 2016
	Level 1		Level 2		Level 3		Total
Money market funds (1)	$	2,522	$	—	$	—	$	2,522
Federal agency obligations		—		1,793		—		1,793
Corporate obligations		—		59,354		—		59,354
Total	$	2,522	$	61,147	$	—	$	63,669

(1) Included in cash and cash equivalents. 

Level 2 assets consist of the Company’s entire portfolio of marketable investments. 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.

Note 4 — Non-Marketable Investments

At September 30, 2017 and December 31, 2016, the carrying value of the Company’s non-marketable investments, which were composed primarily of interests in technology-related private equity funds, was $1.5 million and $2.8 million, respectively, and is included in other assets in the Consolidated Balance Sheets.

The Company’s investments at September 30, 2017 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. Losses from non-marketable investments were $0.8 million and $1.0 million during the three and nine months ended September 30, 2017. Losses from non-marketable investments were $1.1 million and $1.2 million during the three and nine months ended September 30, 2016. Losses are included in Losses on investments, net in the Consolidated Statements of Income. At December 31, 2016, the Company’s investments also included an investment with a book value of $0.4 million, which was accounted for using the cost method. This investment was fully liquidated during the three months ended March 31, 2017. During the three months ended September 30, 2017, no distributions were received from the funds. During the nine months ended September 30, 2017, distributions of $0.4 million were received from the funds. During the nine months ended September 30, 2016, no distributions were received from the funds.

Note 5 — Reorganization

In the first quarter of 2016, the Company implemented a reduction in its workforce of approximately 2% of its employees across various geographies and functions. The Company recorded $1.0 million of severance and related costs for this action during the three months ended March 31, 2016. All costs under this plan were paid during 2016.

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				Nine Months Ended
	September 30,				September 30,
	2017		2016		2017		2016
Basic weighted average common shares outstanding		17,747		18,062		17,897		17,896
Weighted average common equivalent shares		304		373		315		272
Diluted weighted average common shares outstanding		18,051		18,435		18,212		18,168
Share based awards excluded from diluted weighted average share    calculation as effect would have been anti-dilutive		27		82		177		910

Note 7 — Stockholders’ Equity

Equity Plans

Stock option activity for the nine months ended September 30, 2017 is presented below (in thousands, except per share data and contractual term):

				Weighted -		Weighted -
				Average		Average
				Exercise		Remaining		Aggregate
	Number			Price Per		Contractual		Intrinsic
	of Shares			Share		Term (in years)		Value
Outstanding at December 31, 2016		1,540		$	34.35
Granted		—			—
Exercised		(385	)		32.32
Forfeited		(73	)		34.44
Outstanding at September 30, 2017		1,082		$	35.07		6.01	$	7,332
Exercisable at September 30, 2017		771		$	34.92		5.36	$	5,340
Vested and expected to vest at September 30, 2017		1,082		$	35.07		6.01	$	7,332

Restricted stock unit activity for the nine months ended September 30, 2017 is presented below (in thousands, except per share data):

				Weighted-
				Average
	Number of			Grant Date
	Shares			Fair Value
Unvested at December 31, 2016		539		$	35.50
Granted		241			39.58
Vested		(205	)		35.28
Forfeited		(51	)		36.01
Unvested at September 30, 2017		524		$	37.42

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				Nine Months Ended
	September 30,				September 30,
	2017		2016		2017		2016
Cost of services and fulfillment	$	1,088	$	1,077	$	3,387	$	3,141
Selling and marketing		170		272		535		695
General and administrative		920		622		2,501		1,895
Total	$	2,178	$	1,971	$	6,423	$	5,731

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

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2017			2016			2017			2016
Average risk-free interest rate		0.96	%		0.47	%		0.81	%		0.47	%
Expected dividend yield		1.9	%		2.0	%		1.9	%		2.0	%
Expected life	0.5 Years			0.5 Years			0.5 Years			0.5 Years
Expected volatility		26	%		26	%		24	%		25	%
Weighted average fair value	$	8.50		$	7.52		$	8.32		$	7.75

Dividends

In the nine months ended September 30, 2017, the Company declared and paid dividends of $10.2 million consisting of a $0.19 per share dividend in each of the first three quarters of 2017.  In the nine months ended September 30, 2016, the Company declared and paid dividends of $9.7 million consisting of a $0.18 per share dividend in each of the first three quarters of 2016. In October 2017, the Company declared a dividend of $0.19 per share payable on December 20, 2017 to shareholders of record as of December 6, 2017.

Treasury Stock

As of September 30, 2017, Forrester’s Board of Directors had authorized an aggregate $485.0 million to purchase common stock under its stock repurchase program. The shares repurchased may be used, among other things, in connection with Forrester’s equity incentive and purchase plans. In the three and nine months ended September 30, 2017, the Company repurchased approximately 0.1 and 1.1 million shares, respectively, of common stock at an aggregate cost of approximately $3.5 million and $40.0 million, respectively. The Company did not repurchase shares of common stock in the nine months ended September 30, 2016. From the inception of the program through September 30, 2017, Forrester repurchased 16.1 million shares of common stock at an aggregate cost of $464.9 million.

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 and tax benefits or expense related to settlements of share-based payment awards are treated as discrete items and are recorded in the period in which they arise.

Income tax expense for the nine months ended September 30, 2017 was $6.3 million resulting in an effective tax rate of 32.6% for the period. Income tax expense for the nine months ended September 30, 2016 was $9.1 million resulting in an effective tax rate of 43.4% for the period.  The decrease in the effective tax rate during the nine months ended September 30, 2017 compared to the prior year period was primarily due to the recognition of a $1.3 million benefit from the settlement of a tax audit in the first quarter of 2017 and the recognition of approximately $0.3 million of windfall tax benefits from the settlement of options and restricted stock units during the third quarter of 2017. In addition, in 2016 an additional $0.6 million of tax expense was incurred due to a valuation allowance on a capital loss generated from one of the Company’s investments. For the full year 2017, the Company anticipates that its effective tax rate will be approximately 35%.

Note 9 — Operating Segments

The Research segment includes the costs of the Company’s research personnel who are responsible for writing the research and performing the webinars and inquiries for the Company’s Research and Connect products. In addition, the research personnel deliver advisory services (such as workshops, speeches and advisory days) and a portion of the Company’s project consulting services. Revenue in this segment includes only revenue from advisory services and project consulting services that are delivered by the research personnel in this segment.

The Product segment includes the costs of the product management organization that is responsible for product pricing and packaging and the launch of new products. In addition, this segment includes the costs of the Company’s Data, Connect and Events organizations. Revenue in this segment includes all revenue for the Company (including Research and Connect) except for revenue from advisory services and project consulting services that are delivered by personnel in the Research and Project Consulting segments.

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The Project Consulting segment includes the costs of the consultants that deliver the majority of the Company’s project consulting services. Revenue in this segment includes the project consulting revenue delivered by the consultants in this segment.

The Company evaluates reportable segment performance and allocates resources based on segment revenues and expenses. Segment expenses include the direct expenses of each segment organization and exclude selling and marketing expenses, certain client support expenses, general and administrative expenses, stock-based compensation expense, depreciation expense, adjustments to incentive bonus compensation from target amounts, amortization of intangible assets, reorganization costs, other income, and losses on investments. The accounting policies used by the segments are the same as those used in the consolidated financial statements.

In the first quarter of 2017, the Company modified its internal reporting for the Research and Project Consulting segments to reflect the transfer of revenue and direct costs related to a small consulting team in Asia Pacific from Research to Project Consulting, and to remove from both Research and Project Consulting certain client support activities that are now included within selling, marketing, administrative and other expenses in the table below. Accordingly, the 2016 amounts have been reclassified to conform to the current presentation.

						Project
	Product		Research			Consulting		Consolidated
Three Months Ended September 30, 2017
Research services revenues	$	54,235	$	—		$	—	$	54,235
Advisory services and events revenues		3,353		10,379			12,402		26,134
Total segment revenues		57,588		10,379			12,402		80,369
Segment expenses		9,764		11,953			6,443		28,160
Contribution margin (loss)		47,824		(1,574	)		5,959		52,209
Selling, marketing, administrative and other expenses									(45,263	)
Amortization of intangible assets									(197	)
Reorganization costs									—
Other income and losses on investments									(626	)
Income before income taxes								$	6,123

						Project
	Product		Research			Consulting		Consolidated
Three Months Ended September 30, 2016
Research services revenues	$	52,727	$	—		$	—	$	52,727
Advisory services and events revenues		2,333		10,330			12,037		24,700
Total segment revenues		55,060		10,330			12,037		77,427
Segment expenses		8,884		11,586			5,522		25,992
Contribution margin (loss)		46,176		(1,256	)		6,515		51,435
Selling, marketing, administrative and other expenses									(43,675	)
Amortization of intangible assets									(208	)
Reorganization costs									—
Other income and losses on investments									(856	)
Income before income taxes								$	6,696

						Project
	Product		Research			Consulting		Consolidated
Nine Months Ended September 30, 2017
Research services revenues	$	160,553	$	—		$	—	$	160,553
Advisory services and events revenues		15,714		32,279			38,750		86,743
Total segment revenues		176,267		32,279			38,750		247,296
Segment expenses		32,788		36,510			18,886		88,184
Contribution margin (loss)		143,479		(4,231	)		19,864		159,112
Selling, marketing, administrative and other expenses									(138,432	)
Amortization of intangible assets									(582	)
Reorganization costs									—
Other income and losses on investments									(749	)
Income before income taxes								$	19,349

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						Project
	Product		Research			Consulting		Consolidated
Nine Months Ended September 30, 2016
Research services revenues	$	160,998	$	—		$	—	$	160,998
Advisory services and events revenues		14,191		33,244			34,216		81,651
Total segment revenues		175,189		33,244			34,216		242,649
Segment expenses		30,306		36,026			17,465		83,797
Contribution margin (loss)		144,883		(2,782	)		16,751		158,852
Selling, marketing, administrative and other expenses									(135,463	)
Amortization of intangible assets									(627	)
Reorganization costs									(1,026	)
Other income and losses on investments									(765	)
Income before income taxes								$	20,971

Note 10 — Recent Accounting Pronouncements

In May 2014, the Financial Accounting Standards Board (FASB) issued ASU No. 2014-09, Revenue from Contracts with Customers, which supersedes all existing revenue recognition requirements, including most industry specific guidance. The new standard requires a company to recognize revenue when it transfers goods or services to customers in an amount that reflects the consideration that the company expects to receive for those goods or services. The guidance also includes enhanced disclosure requirements which are intended to help financial statement users better understand the nature, amount, timing and uncertainty of revenue being recognized and the related cash flows. In March 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers: Principal versus Agent Considerations, which clarifies the implementation guidance on principal versus agent considerations. In April 2016, the FASB issued ASU No. 2016-10, Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing, which clarifies certain aspects of identifying performance obligations and licensing implementation guidance. In May 2016, the FASB issued ASU No. 2016-12, Revenue from Contracts with Customers: Narrow Scope Improvements and Practical Expedients, which relates to disclosures of remaining performance obligations, as well as other amendments to guidance on collectability, noncash consideration and the presentation of sales and other similar taxes collected from customers. In December 2016, the FASB issued ASU 2016-20, Technical Corrections and Improvements: Revenue from Contracts with Customers, which clarifies several topics including, certain types of transactions that are outside the scope of the new standard, disclosure requirements and balance sheet considerations.

The new standard will be effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. The two permitted transition methods under the new standard are the full retrospective method, in which case the standard would be applied to each prior reporting period presented, or the modified retrospective method, in which case the cumulative effect of applying the standard would be recognized at the date of initial application. The Company has determined that it will adopt the standard utilizing the modified retrospective method.

In 2016, Forrester established a formal program and cross-functional implementation team to identify, design and implement changes to its accounting systems and policies, business processes and internal controls to support recognition and disclosures under the new standard. The Company believes that it has essentially completed its assessment of how the new standard will affect the Company’s revenue recognition for all of its products and services, and will complete its accounting system and business process changes by the end of 2017.

The Company does not anticipate that the standard will have a material impact on its results of operations. The number of performance obligations in the Company’s arrangements will not be different under the new standard than under current guidance. Determining standalone selling prices and allocating contract consideration on multiple element arrangements will follow a similar process as the Company’s current methodologies of establishing fair value / estimated selling price for our goods and services or allocating total contract consideration under the relative selling price method. Additionally, the timing of revenue recognition will remain substantially unchanged for most products. Subscription based research services revenues will continue to be recognized over time, using the new standard’s output method of time elapsed, as Forrester’s clients receive and consume the benefits of our services as we transfer control throughout the contract period. Advisory, reprint and events revenues will continue to be recognized at the point in time as control is transferred to the customer, which will generally be when the client has physical possession of the good(s) or upon completion of the service(s). The Company expects that most of its consulting contracts will continue to be recognized over time, while some contracts may be required to be recognized at a point in time upon completion of the project.

The following changes are anticipated under the new standard:

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• The Company will no longer record accounts receivable and deferred revenue on its balance sheet when it issues an invoice to a customer for a contract that is cancellable by the customer.  For contracts that are cancellable, the Company will only record accounts receivable up to the amount of revenue earned but not yet collected.  This change will have the effect of reducing the amount of accounts receivable and deferred revenue on the balance sheet compared to amounts recorded based on current accounting standards.  The majority of the Company’s contracts are non-cancellable; however, the Company has not yet determined the effect of this change on its balance sheet.

• The timing of revenue recognition for prepaid performance obligations that are expected to expire unused, which may include event tickets, reprints and advisory hours, will change from recognition at the time of expiration under the current standard to recognition in proportion to the pattern of related rights exercised by the customer. The Company currently expects this change to primarily affect the timing of revenue within the quarters of 2018 but does not expect it to have a material effect on the Company’s results of operations for the full year of 2018.

Key areas still in process include the evaluation of costs to fulfill contracts and completion and testing of new functionality of the Company’s existing software systems that is being implemented as part of this project. The adoption program and all remaining activities, including updates to the Company’s systems, processes, policies and controls, are expected to be completed by the end of 2017.  In addition, report development and testing for disclosure requirements in 2018 will be completed in the first quarter of 2018.

In February 2016, the FASB issued ASU No. 2016-02, Leases. The new standard requires that all lessees recognize the assets and liabilities that arise from leases on the balance sheet and disclose qualitative and quantitative information about its leasing arrangements. The new standard will be effective for the Company on January 1, 2019. The adoption of this standard is expected to have a material impact on the Company’s financial position as virtually all leases will be recorded on the balance sheets as a right-of-use asset and a lease liability. The Company is currently evaluating the potential impact that this standard may have on its results of operations.

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments. The new standard amends the current financial instrument impairment model by requiring entities to use a forward-looking approach based on expected losses to estimate credit losses on certain types of financial instruments, including trade receivables. The new standard will be effective for the Company on January 1, 2020. The adoption of this standard is not expected to have a material impact on the Company’s financial position or results of operations.

In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments. The new standard clarifies certain aspects of the statement of cash flows, including contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, and distributions received from equity method investees, among others. The new standard will be effective for the Company on January 1, 2018. The adoption of this standard is not expected to have a material impact on the Company’s statements of cash flows upon adoption.

In January 2017, the FASB issued ASU No. 2017-04, Intangibles-Goodwill and Other: Simplifying the Test for Goodwill Impairment. The new standard simplifies the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test and requires that instead, an entity should perform its goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. The new standard will be effective for the Company on January 1, 2020. The adoption of this standard is not expected to have a material impact on the Company’s financial position or results of operations.

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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. Reference is made in particular to our statements about our plans for anticipated increases in, and productivity of, our sales force and headcount, future growth rates, future tax rates, future operating cash flows, future dividends, future share repurchases and the adequacy of our cash, marketable investments and cash flows to satisfy our working capital and capital expenditures. 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, data and leadership board products and services, our ability to fulfill existing or generate new project consulting engagements, the impact of our evolving customer engagement model, technology spending, the risks and challenges inherent in international business activities, our ability to offer new products and services, our dependence on key personnel, our ability to realize anticipated benefits from internal reorganizations, the ability to attract and retain qualified professional staff, our ability to respond to business and economic conditions and market trends, the possibility of network disruptions and security breaches, competition and industry consolidation, our ability to enforce and protect our intellectual property rights, compliance with privacy laws, possible variations in our quarterly operating results, taxation risks, concentration of our stock ownership and any weakness identified in our system of internal controls. These risks are described more completely in our Annual Report on Form 10-K for the year ended December 31, 2016. 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, and sales of, our Research, Connect and Data products and services, performing advisory services and consulting projects, and hosting events. We offer contracts for our Research, Connect and Data products that are typically renewable annually and payable in advance. Membership 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 subscription-based products. Billings attributable to advisory services and consulting projects are initially recorded as deferred revenue. Advisory service revenues, such as workshops, speeches and advisory days, 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 all personnel that produce and deliver our products and services, including 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 and annual fees for cloud-based information technology systems are allocated to these categories according to the number of employees in each group.

Deferred revenue, agreement value, client retention, dollar retention, enrichment and number of clients are metrics that 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 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.

• Dollarretention — the total dollar value of client membership contracts expiring during the most recent twelve-month period, which are renewed in whole or in part, as a percentage of the dollar value of all expiring client membership contracts during the same 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.

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• Clients — we aggregate the various divisions and subsidiaries of a corporate parent as a single client and we also aggregate separate instrumentalities of the federal, state, and provincial governments as a single client.

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						Absolute			Percentage
	September 30,						Increase			Increase
	2017			2016			(Decrease)			(Decrease)
Deferred revenue	$	132.9		$	126.2		$	6.7			5	%
Agreement value	$	237.8		$	241.1		$	(3.3	)		(1	%)
Client retention		76	%		76	%		—			—
Dollar retention		88	%		88	%		—			—
Enrichment		94	%		95	%		(1	)		(1	%)
Number of clients		2,393			2,482			(89	)		(4	%)

Deferred revenue at September 30, 2017 increased 5% compared to the prior year. The increase in deferred revenue is a result of contract billings in excess of revenue recognized due to an increase in contract bookings. Agreement value decreased 1% at September 30, 2017 compared to the prior year and after adjusting for the effect of foreign currency fluctuations, remained essentially flat compared to the prior year. Client retention rate and dollar retention rate both increased 1% compared to the prior quarter and were essentially flat compared to the prior year period. Enrichment rate, although essentially consistent with the prior quarter, declined 1% compared to the prior year period.

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, non-marketable investments, goodwill and other intangible assets, and income taxes. 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 other critical accounting policies and estimates are described in our Annual Report on Form 10-K for the year ended December 31, 2016.

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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						Nine Months Ended
	September 30,						September 30,
	2017			2016			2017			2016
Revenues:
Research services		67.5	%		68.1	%		64.9	%		66.4	%
Advisory services and events		32.5			31.9			35.1			33.6
Total revenues		100.0			100.0			100.0			100.0
Operating expenses:
Cost of services and fulfillment		40.4			38.6			40.8			39.3
Selling and marketing		36.4			35.8			36.5			36.1
General and administrative		12.6			13.0			12.4			12.5
Depreciation		2.0			2.5			2.0			2.5
Amortization of intangible assets		0.2			0.3			0.2			0.2
Reorganization costs		—			—			—			0.4
Income from operations		8.4			9.8			8.1			9.0
Other income, net		0.2			0.3			0.1			0.1
Losses on investments, net		(1.0	)		(1.5	)		(0.4	)		(0.5	)
Income before income taxes		7.6			8.6			7.8			8.6
Income tax provision		2.7			4.6			2.5			3.7
Net income		4.9	%		4.0	%		5.3	%		4.9	%

Three and Nine Months Ended September 30, 2017 and 2016

Revenues

	Three Months Ended						Absolute		Percentage
	September 30,						Increase		Increase
	2017			2016			(Decrease)		(Decrease)
	(dollars in millions)
Revenues	$	80.4		$	77.4		$	3.0		4	%
Revenues from research services	$	54.2		$	52.7		$	1.5		3	%
Revenues from advisory services and events	$	26.1		$	24.7		$	1.4		6	%
Revenues attributable to customers outside of the U.S.	$	19.2		$	17.4		$	1.8		10	%
Percentage of revenue attributable to customers    outside of the U.S.		24	%		22	%		2		9	%
Number of events		3			3			—		—

	Nine Months Ended						Absolute			Percentage
	September 30,						Increase			Increase
	2017			2016			(Decrease)			(Decrease)
	(dollars in millions)
Revenues	$	247.3		$	242.6		$	4.7			2	%
Revenues from research services	$	160.6		$	161.0		$	(0.4	)		—
Revenues from advisory services and events	$	86.7		$	81.7		$	5.0			6	%
Revenues attributable to customers outside of the U.S.	$	55.7		$	55.4		$	0.3			1	%
Percentage of revenue attributable to customers outside of    the U.S.		23	%		23	%		—			—
Number of events		9			10			(1	)		(10	%)

Total revenues increased 4% and 2% during the three and nine months ended September 30, 2017 respectively, compared to the prior year periods. After adjusting for the effect of foreign currency fluctuations, the revenue increase was 3% during the three months ended September 30, 2017 and remained at 2% for the nine months ended September 30, 2017. Revenues from customers outside the U.S. increased 10% and 1% during the three and nine months ended September 30, 2017, respectively, compared to the prior year periods and increased 8% and 2%, respectively, after adjusting for the effects of foreign currency fluctuations. Revenues from customers outside of the U.S. represented 24% of total revenues for the three months ended September 30, 2017 and after adjusting for

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the effect of foreign currency fluctuations,represented 23% of total revenues compared to 22% in the prior year period.The increase in the percentage of revenues attributable to customers outside of the U.S. during the three months ended September 30, 2017 was principally due to an increase in revenues in Canada and the Asia Pacific region. Revenues from customers outside of the U.S. represented 23% of total revenues during the nine months ended September 30, 2017 and remained essentially flat compared to the prior year period, reflecting growth in revenues in the Asia Pacific region that was offset by a decline in revenues in Europe. There was no material effect of foreign currency fluctuations on revenues from customers outside of the U.S. as a percent of total revenues during the nine months ended September 30, 2017.

Research services revenues are recognized as revenue primarily on a ratable basis over the term of the contracts, which are generally twelve-month periods. Research services revenues increased 3% during the three months ended September 30, 2017 and was essentially flat during the nine months ended September 30, 2017, compared to the prior year periods. Currency fluctuations had the effect of increasing revenue growth by 1% in the three months ended September 30, 2017 and had an insignificant effect in the nine months ended September 30, 2017. The increase in revenues for the three months ended September 30, 2017 was primarily driven by an increase in revenue for our Reprints and Connect products. During the nine months ended September 30, 2017, a decline in revenue for our Data products and a slight decline in revenue for our Research products was offset by an increase in revenue for our Reprints and Connect products.  

Revenues from advisory services and events increased 6% during both the three and nine months ended September 30, 2017 compared to the prior year periods and increased 5% and 6%, respectively, after adjusting for the effect of foreign currency fluctuations. The increase in revenues for the three months ended September 30, 2017 was principally due to increases in both advisory and events revenues, that was partially offset by a slight decline in consulting revenues. The increase in revenues for the nine months ended September 30, 2017 was principally due to growth in consulting and events revenues. Events revenues increased 158% and 14% during the three and nine months ended September 30, 2017, respectively, compared to the prior year periods. The increase in events revenues during the three months ended September 30, 2017 was primarily due to revenue from a new event held in the U.S. during the current year period that exceeded the decline in revenue resulting from the discontinuation of a small event in the Asia Pacific region. The increase in events revenues during the nine months ended September 30, 2017 was due an increase in sponsorship revenues that offset having held one less event in the Asia Pacific region in the current year compared to the prior year.

Please refer to the “Segments Results” section below for a discussion of revenues and expenses by segment.

Cost of Services and Fulfillment

	Three Months Ended						Absolute		Percentage
	September 30,						Increase		Increase
	2017			2016			(Decrease)		(Decrease)
Cost of services and fulfillment (dollars in millions)	$	32.5		$	29.9		$	2.6		9	%
Cost of services and fulfillment as a percentage of    total revenues		40.4	%		38.6	%		1.8		5	%
Service and fulfillment employees    (at end of period)		593			571			22		4	%

	Nine Months Ended						Absolute		Percentage
	September 30,						Increase		Increase
	2017			2016			(Decrease)		(Decrease)
Cost of services and fulfillment (dollars in millions)	$	100.8		$	95.4		$	5.4		6	%
Cost of services and fulfillment as a percentage of total    Revenues		40.8	%		39.3	%		1.5		4	%

Cost of services and fulfillment expenses increased 9% during the three months ended September 30, 2017 compared to the prior year period and after adjusting for the effect of foreign currency fluctuations, increased 8%. The increase in dollars was primarily due to (1) a $1.4 million increase in compensation and benefit costs, resulting principally from an increase in employees compared to the prior year period and annual merit increases, (2) a $0.3 million increase in event expenses and (3) a $0.5 million increase in professional services costs.

Cost of services and fulfillment expenses increased 6% during the nine months ended September 30, 2017 compared to the prior year period and after adjusting for the effect of foreign currency fluctuations, increased 7%. The increase in dollars was primarily due to (1) a $2.8 million increase in compensation and benefit costs, resulting principally from an increase in employees compared to the prior year period and annual merit increases, (2) a $1.0 million increase in event expenses and (3) a $0.7 million increase in professional services costs.

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Selling and Marketing

	Three Months Ended						Absolute		Percentage
	September 30,						Increase		Increase
	2017			2016			(Decrease)		(Decrease)
Selling and marketing expenses (dollars in millions)	$	29.2		$	27.8		$	1.4		5	%
Selling and marketing expenses as a percentage of    total revenues		36.4	%		35.8	%		0.6		2	%
Selling and marketing employees (at end of period)		589			572			17		3	%

	Nine Months Ended						Absolute		Percentage
	September 30,						Increase		Increase
	2017			2016			(Decrease)		(Decrease)
Selling and marketing expenses (dollars in millions)	$	90.4		$	87.5		$	2.9		3	%
Selling and marketing expenses as a percentage of total    revenues		36.5	%		36.1	%		0.4		1	%

Selling and marketing expenses increased 5% during the three months ended September 30, 2017 compared to the prior year period. The increase in dollars was primarily due to a $1.5 million increase in compensation and benefit costs, resulting from an increase in sales employees, annual merit increases, and an increase in incentive bonuses compared to the prior year period. There was no material effect of foreign currency fluctuations on selling and marketing expenses during the three months ended September 30, 2017.

Selling and marketing expenses increased 3% during the nine months ended September 30, 2017 compared to the prior year period and after adjusting for the effect of foreign currency fluctuations, increased 4%. The increase in dollars was primarily due to a $3.4 million increase in compensation and benefit costs, resulting from an increase in sales employees, annual merit increases, an increase in incentive bonuses and an increase in severance costs compared to the prior year period. This increase was partially offset by a $0.8 million decrease in travel and entertainment expenses primarily resulting from a reduction in expense for our annual sales conference.

Subject to the business environment, we expect our sales headcount to increase by 3% to 6% in 2017 as compared to the year ended December 31, 2016.

General and Administrative

	Three Months Ended						Absolute			Percentage
	September 30,						Increase			Increase
	2017			2016			(Decrease)			(Decrease)
General and administrative expenses (dollars in millions)	$	10.1		$	10.1		$	—			—
General and administrative expenses as a percentage of    total revenues		12.6	%		13.0	%		(0.4	)		(3	%)
General and administrative employees (at end of period)		192			189			3			2	%

	Nine Months Ended						Absolute			Percentage
	September 30,						Increase			Increase
	2017			2016			(Decrease)			(Decrease)
General and administrative expenses (dollars in millions)	$	30.7		$	30.4		$	0.3			1	%
General and administrative expenses as a percentage of    total revenues		12.4	%		12.5	%		(0.1	)		(1	%)

General and administrative expenses remained essentially flat during the three months ended September 30, 2017 compared to the prior year period primarily due to a $0.5 million decrease in professional services expense that was offset by (1) a $0.3 million increase in stock compensation expense and (2) a $0.1 million increase in compensation and benefits costs. There was no material effect of foreign currency fluctuations on general and administrative expenses during the three months ended September 30, 2017.

General and administrative expenses increased 1% during the nine months ended September 30, 2017 compared to the prior year period and after adjusting for the effect of foreign currency fluctuations, increased 2%. The increase in dollars was primarily due to (1) a $0.8 million increase in compensation and benefit costs resulting from an increase in headcount and annual merit increases compared to the prior year period, (2) a $0.6 million increase in stock compensation costs and (3) a $0.2 million increase in hiring and relocation expense. These increases were partially offset by a $1.4 million decrease in professional services expense.

21

Depreciation

Depreciation expense decreased by $0.3 million and $1.2 million during the three and nine months ended September 30, 2017, respectively, compared to the prior year periods primarily due to certain equipment and software assets becoming fully depreciated.

Amortization of Intangible Assets

Amortization expense remained essentially consistent during the three and nine months ended September 30, 2017 compared to the prior year periods.

Reorganization Costs

During the nine months ended September 30, 2016, we incurred $1.0 million of severance and related benefits costs for a reduction in our workforce of approximately 2% of employees across various geographies and functions. All costs under this plan were paid during 2016.

Other Income, Net

Other income, net primarily consists of interest income on our investments as well as gains and losses on foreign currency. The decrease in other income, net of $0.1 million during the three months ended September 30, 2017 compared to the prior year period is primarily due to an increase in foreign currency losses. The decrease in other income, net of $0.1 million during the nine months ended September 30, 2017 compared to the prior year period is primarily due to an increase in foreign currency losses of $0.3 million that was partially offset by an increase in interest income of $0.2 million.

Losses on Investments, Net

Losses on investments, net primarily represents our share of equity method investment gains and losses from our technology-related investment funds. The decrease in investment losses during the three and nine months ended September 30, 2017 is primarily due to a decrease in investment losses incurred by the underlying funds as compared to the prior year periods.

Provision for Income Taxes

	Three Months Ended						Absolute			Percentage
	September 30,						Increase			Increase
	2017			2016			(Decrease)			(Decrease)
Provision for income taxes (dollars in millions)	$	2.2		$	3.6		$	(1.4	)		(39	%)
Effective tax rate		35.4	%		53.5	%		(18.1	)		(34	%)

	Nine Months Ended						Absolute			Percentage
	September 30,						Increase			Increase
	2017			2016			(Decrease)			(Decrease)
Provision for income taxes (dollars in millions)	$	6.3		$	9.1		$	(2.8	)		(31	%)
Effective tax rate		32.6	%		43.4	%		(10.8	)		(25	%)

Income tax expense for the nine months ended September 30, 2017 was $6.3 million resulting in an effective tax rate of 32.6% for the period. Income tax expense for the nine months ended September 30, 2016 was $9.1 million resulting in an effective tax rate of 43.4% for the period.  The decrease in the effective tax rate during the nine months ended September 30, 2017 compared to the prior year period was due primarily to the recognition of a $1.3 million benefit from the settlement of a tax audit in the first quarter of 2017 and the recognition of approximately $0.3 million of windfall tax benefits from the settlement of options and restricted stock units during the third quarter of 2017. In addition, in 2016 an additional $0.6 million of tax expense was incurred due to a valuation allowance on a capital loss generated from one of our investments. For the full year 2017, we anticipate that our effective tax rate will be approximately 35%.

Segment Results

The Research segment includes the costs of our research personnel who are responsible for writing the research and performing the webinars and inquiries for our Research and Connect products. In addition, the research personnel deliver advisory services (such as workshops, speeches and advisory days) and a portion of our project consulting services. Revenue in this segment includes only revenue from advisory services and project consulting services that are delivered by the research personnel in this segment.

22

The Product segment includes the costs of the product management organization that is responsible for pricing, packaging and the launch of new products. In addition, this segment includes the costs of our Data, Connect and Events organizations. Revenue in this segment includes all of our revenue (including Research and Connect) except for revenue from advisory services and project consulting services that are delivered by personnel in the Research and Project Consulting segments.

The Project Consulting segment includes the costs of the consultants that deliver the majority of our project consulting services. Revenue in this segment includes the project consulting revenue delivered by the consultants in this segment.

We evaluate reportable segment performance and allocate resources based on segment revenues and expenses. Segment expenses include the direct expenses of each segment organization and exclude selling and marketing expenses, certain client support expenses, general and administrative expenses, stock-based compensation expense, depreciation expense, adjustments to incentive bonus compensation from target amounts, amortization of intangible assets, reorganization costs, other income, and losses on investments. The accounting policies used by the segments are the same as those used in the consolidated financial statements.

In the first quarter of 2017, we modified our internal reporting for the Research and Project Consulting segments to reflect the transfer of revenue and direct costs related to a small consulting team in Asia Pacific from Research to Project Consulting, and to remove from both Research and Project Consulting certain client support activities that are now included within selling, marketing, administrative and other expenses in the table below. Accordingly, the 2016 amounts have been reclassified to conform to the current presentation.

							Project
	Product			Research			Consulting			Consolidated
Three Months Ended September 30, 2017
Research services revenues	$	54,235		$	—		$	—		$	54,235
Advisory services and events revenues		3,353			10,379			12,402			26,134
Total segment revenues		57,588			10,379			12,402			80,369
Segment expenses		9,764			11,953			6,443			28,160
Contribution margin (loss)		47,824			(1,574	)		5,959			52,209
Year over year revenue change		5	%		—			3	%		4	%
Year over year expense change		10	%		3	%		17	%		8	%

						Project
	Product		Research			Consulting		Consolidated
Three Months Ended September 30, 2016
Research services revenues	$	52,727	$	—		$	—	$	52,727
Advisory services and events revenues		2,333		10,330			12,037		24,700
Total segment revenues		55,060		10,330			12,037		77,427
Segment expenses		8,884		11,586			5,522		25,992
Contribution margin (loss)		46,176		(1,256	)		6,515		51,435

							Project
	Product			Research			Consulting			Consolidated
Nine Months Ended September 30, 2017
Research services revenues	$	160,553		$	—		$	—		$	160,553
Advisory services and events revenues		15,714			32,279			38,750			86,743
Total segment revenues		176,267			32,279			38,750			247,296
Segment expenses		32,788			36,510			18,886			88,184
Contribution margin (loss)		143,479			(4,231	)		19,864			159,112
Year over year revenue change		1	%		(3	%)		13	%		2	%
Year over year expense change		8	%		1	%		8	%		5	%

						Project
	Product		Research			Consulting		Consolidated
Nine Months Ended September 30, 2016
Research services revenues	$	160,998	$	—		$	—	$	160,998
Advisory services and events revenues		14,191		33,244			34,216		81,651
Total segment revenues		175,189		33,244			34,216		242,649
Segment expenses		30,306		36,026			17,465		83,797
Contribution margin (loss)		144,883		(2,782	)		16,751		158,852

23

Product segment revenues increased 5% and 1% during the three and nine months ended September 30, 2017, respectively, compared to the prior year periods. Research services revenues increased 3% during the three months ended September 30, 2017 and remained essentially flat during the nine months ended September 30, 2017 compared to the prior year periods. The increase in research services revenues for the three months ended September 30, 2017 was principally driven by an increase in revenues for our Reprints and Connect products. During the nine months ended September 30, 2017 a decline in revenues for our Data products and a slight decline in revenues for our Research products were offset by an increase in revenues for our Reprints and Connect products. Advisory services and events revenues, which is comprised of data consulting and events revenues in this segment, increased 44% and 11% during the three and nine months ended September 30, 2017, respectively, compared to the prior year periods. The increase in advisory services and events revenues during the three months ended September 30, 2017 was primarily due to a $0.4 million increase in data consulting revenues and a $0.7 million increase in Events revenues. The increase in Events revenues was primarily due to revenue from a new event held in the U.S. during the current year period that exceeded the decline in revenue resulting from the discontinuation of a small event in the Asia Pacific region. The increase in advisory services and events revenues during the nine months ended September 30, 2017 was primarily due to a $0.8 million increase in data consulting revenues and a $1.0 million increase in Events revenues. The increase in Events revenues was due to an increase in sponsorship revenues that offset having held one less event in the Asia Pacific region in the current year compared to the prior year. Product segment expenses increased 10% and 8% during the three and nine months ended September 30, 2017, respectively, compared to the prior year periods primarily due to an increase in compensation and benefit costs due to an increase in employees and an increase in events expenses driven by increased attendance at the events.

Research segment revenues remained essentially flat during the three months ended September 30, 2017 and declined 3% during the nine months ended September 30, 2017, compared to the prior year periods. During the three months ended September 30, 2017 an increase in advisory revenues was essentially offset by a decrease in consulting revenues. The decline in revenues during the nine months ended September 30, 2017 was principally due to a decrease in consulting revenues that was partially offset by a slight increase in advisory revenues. Research segment expenses increased 3% and 1% during the three and nine months ended September 30, 2017, respectively, compared to the prior year periods.  The increase in expenses during the three and nine months ended September 30, 2017 was primarily due to an increase in compensation and benefit costs of $0.5 million and $0.8 million, respectively, compared to the prior year periods.

Project Consulting segment revenues increased 3% and 13% during the three and nine months ended September 30, 2017, respectively, compared to the prior year periods due primarily to growth in our content marketing group, that was partially offset by a decline in revenue from our strategic consulting group. We expect revenue growth rates to be at a single digit level for the fourth quarter of the year. Project Consulting expenses increased 17% and 8% during the three and nine months ended September 30, 2017, respectively, compared to the prior year periods. The increase in expenses during the three months and nine months ended September 30, 2017 was primarily due to an increase in compensation and benefit costs of $0.5 million and $1.0 million, respectively, compared to the prior year periods.

Liquidity and Capital Resources

We have historically financed our operations primarily through funds generated from operations. Memberships for research services, which constituted approximately 65% of our revenues during the nine months ended September 30, 2017, are generally renewable annually and are typically payable in advance. We generated cash from operating activities of $36.9 million and $38.3 million during the nine months ended September 30, 2017 and 2016, respectively. The $1.4 million decrease in cash provided from operations for the nine months ended September 30, 2017 was primarily attributable to a $1.7 million decrease in cash generated from working capital.  The decrease in cash from working capital was primarily due to increases in cash used for income taxes and cash used for accounts payable that were partially offset by a decrease in the use of cash for accrued salary expense resulting from a change in the timing of payroll payments. We expect cash from operating activities for the full year 2017 to be in the range of $37.0 to $41.0 million.

During the nine months ended September 30, 2017 we generated $1.4 million of cash from investing activities, consisting primarily of $7.0 million in net proceeds from sales and maturities of marketable investments that was partially offset by $5.8 million of purchases of property and equipment. Property and equipment purchases during 2017 consisted primarily of computer equipment, software and leasehold improvements for our new office location in Nashville. During the nine months ended September 30, 2016, we used $18.9 million of cash from investing activities, consisting primarily of $15.5 million in net purchases of marketable investments and $3.3 million of purchases of property and equipment. Property and equipment purchases during 2016 consisted primarily of computer equipment and software.

24

We used $38.8 million of cash from financing activities during the nine months ended September 30, 2017 primarily due to the use of $40.0 million for purchases of our common stock and $10.2 million for the payment of dividends, at $0.19 per share in each of the first three quarters of 2017 as well as $2.5 million in taxes paid related to net share settlements of restricted stock units, which were partially offset by $13.9 million of proceeds from the exercise of stock options and our employee stock purchase plan. We used $1.8 million of cash from financing activities during the nine months ended September 30, 2016 primarily for thepayment of dividends totaling $9.7 million, at $0.18 per share in each of the first three quarters of 2016, as well as $2.1 million in taxes paid related to net share settlements of restricted stock units, which was partially offset by $10.0 million of proceeds from the exercise of stock options and our employee stock purchase plan.

As of September 30, 2017 our remaining stock repurchase authorization was approximately $20.1 million. We plan to repurchase our common stock as market conditions warrant.

As of September 30, 2017, we had cash and cash equivalents of $80.0 million and marketable investments of $54.0 million. These balances include $61.6 million held outside of the U.S. If these funds outside of the U.S. are needed for operations in the U.S., we would be required to accrue and pay U.S. taxes to repatriate these funds. However, our intent is to permanently reinvest these funds outside of the U.S. and our current plans do not demonstrate a need to repatriate these funds for our U.S. operations. We do not currently have a line of credit and do not presently anticipate the need to access a line of credit in the foreseeable future except in the case of a significant acquisition. 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 the next twelve months.

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, 2016.

Off-Balance Sheet Arrangements

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

Recent Accounting Pronouncements

See Note 1 and Note 10 of the Notes to Consolidated Financial Statements for a full description of recent accounting pronouncements including the expected dates of adoption and effects on results of operations and financial condition.

25

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, 2016.

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 September 30, 2017. 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 September 30, 2017 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

26

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, 2016, 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

Through September 30, 2017, our Board of Directors authorized an aggregate $485.0 million to purchase common stock under our stock repurchase program. During the quarter ended September 30, 2017, we purchased the following shares of our common stock under the stock repurchase program:

					Maximum Dollar
					Value that May
					Yet be Purchased
	Total Number of		AveragePrice		Under the Stock
Period	Shares Purchased (1)		Paid per Share		Repurchase Program
					(In thousands)
July 1 - July 30		32,065	$	39.69
August 1 - August 31		26,468	$	39.82
September 1 - September 30		30,359	$	40.01
		88,892			$	20,100

(1) All purchases of our common stock were made under the stock repurchase program first announced in 2001.

27

ITEM 6. EXHIBITS

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. (filed herewith)
101.SCH	XBRL Taxonomy Extension Schema. (filed herewith)
101.CAL	XBRL Taxonomy Extension Calculation Linkbase. (filed herewith)
101.DEF	XBRL Taxonomy Extension Definition Linkbase. (filed herewith)
101.LAB	XBRL Taxonomy Extension Label Linkbase. (filed herewith)
101.PRE	XBRL Taxonomy Extension Presentation Linkbase. (filed herewith)

28

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 (Principal financial officer)

Date: November 7, 2017

29

Exhibit Index

Exhibit No.	Document
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. (filed herewith)
101.SCH	XBRL Taxonomy Extension Schema. (filed herewith)
101.CAL	XBRL Taxonomy Extension Calculation Linkbase. (filed herewith)
101.DEF	XBRL Taxonomy Extension Definition Linkbase. (filed herewith)
101.LAB	XBRL Taxonomy Extension Label Linkbase. (filed herewith)
101.PRE	XBRL Taxonomy Extension Presentation Linkbase. (filed herewith)

30

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: November 7, 2017

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

(Principal financial officer)

Date: November 7, 2017

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 September 30, 2017, 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: November 7, 2017

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 September 30, 2017, 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

Dated: November 7, 2017

XML

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2017	Nov. 03, 2017
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2017
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	Q3
Trading Symbol	FORR
Entity Registrant Name	FORRESTER RESEARCH, INC.
Entity Central Index Key	0001023313
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		17,975,000

XML

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Current Assets:
Cash and cash equivalents	$ 79,960	$ 76,958
Marketable investments (Note 3)	54,019	61,147
Accounts receivable, net	39,481	58,812
Deferred commissions	9,146	12,052
Prepaid expenses and other current assets	15,817	14,467
Total current assets	198,423	223,436
Property and equipment, net	26,128	23,894
Goodwill	75,815	73,193
Intangible assets, net	927	1,464
Other assets	13,095	13,798
Total assets	314,388	335,785
Current Liabilities:
Accounts payable	613	1,806
Accrued expenses and other current liabilities	36,838	41,403
Deferred revenue	132,929	134,265
Total current liabilities	170,380	177,474
Non-current liabilities	8,788	8,275
Total liabilities	179,168	185,749
Stockholders' Equity (Note 7):
Preferred stock, $0.01 par value Authorized - 500 shares; issued and outstanding - none
Common stock, $0.01 par value Authorized - 125,000 shares Issued - 22,293 and 21,719 shares as of September 30, 2017 and December 31, 2016, respectively Outstanding - 17,902 and 18,361 shares as of September 30, 2017 and December 31, 2016, respectively	223	217
Additional paid-in capital	175,218	157,569
Retained earnings	124,343	121,799
Treasury stock - 4,391 and 3,358 shares as of September 30, 2017 and December 31, 2016, respectively, at cost	(161,943)	(121,976)
Accumulated other comprehensive loss	(2,621)	(7,573)
Total stockholders’ equity	135,220	150,036
Total liabilities and stockholders’ equity	$ 314,388	$ 335,785

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Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2017	Dec. 31, 2016
Statement Of Financial Position [Abstract]
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	500,000	500,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	125,000,000	125,000,000
Common stock, shares issued	22,293,000	21,719,000
Common stock, shares outstanding	17,902,000	18,361,000
Treasury stock, shares	4,391,000	3,358,000

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Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Revenues:
Research services	$ 54,235	$ 52,727	$ 160,553	$ 160,998
Advisory services and events	26,134	24,700	86,743	81,651
Total revenues	80,369	77,427	247,296	242,649
Operating expenses:
Cost of services and fulfillment	32,508	29,889	100,814	95,429
Selling and marketing	29,225	27,751	90,355	87,490
General and administrative	10,083	10,086	30,672	30,359
Depreciation	1,607	1,941	4,775	5,982
Amortization of intangible assets	197	208	582	627
Reorganization costs				1,026
Total operating expenses	73,620	69,875	227,198	220,913
Income from operations	6,749	7,552	20,098	21,736
Other income, net	146	229	248	374
Losses on investments, net	(772)	(1,085)	(997)	(1,139)
Income before income taxes	6,123	6,696	19,349	20,971
Income tax provision	2,170	3,584	6,302	9,110
Net income	$ 3,953	$ 3,112	$ 13,047	$ 11,861
Basic income per common share	$ 0.22	$ 0.17	$ 0.73	$ 0.66
Diluted income per common share	$ 0.22	$ 0.17	$ 0.72	$ 0.65
Basic weighted average common shares outstanding	17,747	18,062	17,897	17,896
Diluted weighted average common shares outstanding	18,051	18,435	18,212	18,168
Cash dividends declared per common share	$ 0.19	$ 0.18	$ 0.57	$ 0.54

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Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Statement Of Income And Comprehensive Income [Abstract]
Net income	$ 3,953	$ 3,112	$ 13,047	$ 11,861
Other comprehensive income (loss), net of taxes:
Foreign currency translation	1,601	(120)	4,905	(68)
Net change in market value of investments	23	(48)	47	72
Other comprehensive income (loss)	1,624	(168)	4,952	4
Comprehensive income	$ 5,577	$ 2,944	$ 17,999	$ 11,865

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Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Cash flows from operating activities:
Net income	$ 13,047	$ 11,861
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	4,775	5,982
Amortization of intangible assets	582	627
Net losses from investments	997	1,139
Deferred income taxes	(921)	(413)
Stock-based compensation	6,423	5,731
Amortization of premium on investments	171	267
Foreign currency losses	444	98
Changes in assets and liabilities
Accounts receivable	20,140	31,078
Deferred commissions	2,906	3,890
Prepaid expenses and other current assets	(979)	2,322
Accounts payable	(1,208)	133
Accrued expenses and other liabilities	(6,041)	(10,101)
Deferred revenue	(3,473)	(14,309)
Net cash provided by operating activities	36,863	38,305
Cash flows from investing activities:
Purchases of property and equipment	(5,806)	(3,334)
Purchases of marketable investments	(27,430)	(35,555)
Proceeds from sales and maturities of marketable investments	34,458	20,086
Other investing activity	200	(49)
Net cash provided by (used in) investing activities	1,422	(18,852)
Cash flows from financing activities:
Dividends paid on common stock	(10,205)	(9,696)
Repurchases of common stock	(39,967)
Proceeds from issuance of common stock under employee equity incentive plans	13,866	9,987
Taxes paid related to net share settlements of stock-based compensation awards	(2,511)	(2,069)
Net cash used in financing activities	(38,817)	(1,778)
Effect of exchange rate changes on cash and cash equivalents	3,534	(870)
Net increase in cash and cash equivalents	3,002	16,805
Cash and cash equivalents, beginning of period	76,958	53,331
Cash and cash equivalents, end of period	$ 79,960	$ 70,136

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Interim Consolidated Financial Statements

9 Months Ended

Sep. 30, 2017

Accounting Policies [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, 2016. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair statement of the financial position, results of operations, comprehensive income and cash flows as of the dates and for the periods presented have been included. The results of operations for the three and nine months ended September 30, 2017 may not be indicative of the results for the year ending December 31, 2017, or any other period.

Fair Value Measurements

The carrying amounts reflected in the Consolidated Balance Sheets for cash and cash equivalents, accounts receivable, accounts payable, and accrued expenses approximate fair value due to their short-term maturities. See Note 3 – Marketable Investments - for the fair value of the Company’s marketable investments.

Adoption of New Accounting Pronouncements

The Company adopted the guidance in Accounting Standards Update ("ASU") No. 2016-09, Compensation - Stock Compensation - Improvements to Employee Share-Based Payment Accounting, on January 1, 2017. Under this standard, entities are permitted to make an accounting policy election to either estimate forfeitures on share-based payment awards, as previously required, or to recognize forfeitures as they occur. The Company has elected to recognize forfeitures as they occur and the impact of that change in accounting policy has been recorded as a$0.2 millioncumulative effect adjustment to increase retained earnings as of January 1, 2017.

Additionally, ASU No. 2016-09 requires that all income tax effects related to settlements of share-based payment awards be reported in earnings as an increase or decrease to income tax expense. Previously, income tax effects at settlement of an award were reported as an increase (or decrease) to additional paid-in capital to the extent that those benefits were greater than (or less than) the income tax effects reported in earnings during the award's vesting period. The requirement to report those income tax effects in earnings has been applied on a prospective basis to settlements occurring on or after January 1, 2017, and the impact of applying this guidance resulted in a $0.3 million tax benefit for the three and nine months ended September 30, 2017. Application of this guidance may result in fluctuations in the Company’s effective tax rate depending on how many options are exercised, how many restricted stock units vest and the volatility of the Company’s stock price.

ASU 2016-09 also requires that all income tax-related cash flows resulting from share-based payments be reported as operating activities in the statement of cash flows. Previously, income tax benefits at settlement of an award were reported as a reduction to operating cash flows and an increase to financing cash flows to the extent that those benefits exceeded the income tax benefits reported in earnings during the award's vesting period. In addition, the standard requires that cash paid by directly withholding shares for tax withholding purposes be classified as a financing activity in the statement of cash flows. For the nine months ended September 30, 2017, the Company reflected $2.5 million of tax withholding in financing activities. The Company has elected to apply the changes in cash flow classification on a retrospective basis resulting in an increase in operating cash flows, with a corresponding decrease in financing cash flows, of $2.4 million for the nine months ended September 30, 2016, as compared to the amounts previously reported.

The Company elected to early adopt the guidance in ASU No. 2016-16, Accounting for Income Taxes: Intra-Entity Asset Transfers of Assets Other than Inventory, on January 1, 2017. The guidance in this standard eliminates for all intra-entity sales of assets other than inventory, the exception under existing standards that permits the tax effects of intra-entity asset transfers to be deferred until the transferred asset is sold to a third party or otherwise recovered through use. As a result, a reporting entity would recognize the tax expense from the sale of the asset in the seller’s tax jurisdiction when the transfer occurs and any deferred tax asset that arises in the buyer’s jurisdiction would also be recognized at the time of the transfer. As a result, the Company has recorded a $0.5 millioncumulative effect adjustment to reduce retained earnings as of January 1, 2017.

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Accumulated Other Comprehensive Income (Loss)

9 Months Ended

Sep. 30, 2017

Equity [Abstract]

Accumulated Other Comprehensive Income (Loss)

Note 2 — Accumulated Other Comprehensive Income (Loss)

The components of accumulated other comprehensive income (loss) are as follows (in thousands):

							Total
	Net UnrealizedGain			Cumulative			Accumulated
	(Loss) on Marketable			Translation			Other Comprehensive
	Investments			Adjustment			Income (Loss)
Balance at January 1, 2017	$	(83	)	$	(7,490	)	$	(7,573	)
Foreign currency translation		—			4,905			4,905
Unrealized gain on investments, net of tax of $29		47			—			47
Balance at September 30, 2017	$	(36	)	$	(2,585	)	$	(2,621	)

							Total
	Net Unrealized Gain			Cumulative			Accumulated
	(Loss) on Marketable			Translation			Other Comprehensive
	Investments			Adjustment			Income (Loss)
Balance at July 1, 2017	$	(59	)	$	(4,186	)	$	(4,245	)
Foreign currency translation		—			1,601			1,601
Unrealized gain on investments, net of tax of $14		23			—			23
Balance at September 30, 2017	$	(36	)	$	(2,585	)	$	(2,621	)

							Total
	Net Unrealized Gain			Cumulative			Accumulated
	(Loss) on Marketable			Translation			Other Comprehensive
	Investments			Adjustment			Income (Loss)
Balance at January 1, 2016	$	(100	)	$	(4,726	)	$	(4,826	)
Foreign currency translation		—			(68	)		(68	)
Unrealized gain on investments, net of tax of $46		72			—			72
Balance at September 30, 2016	$	(28	)	$	(4,794	)	$	(4,822	)

							Total
	Net Unrealized Gain			Cumulative			Accumulated
	(Loss) on Marketable			Translation			Other Comprehensive
	Investments			Adjustment			Income (Loss)
Balance at July 1, 2016	$	20		$	(4,674	)	$	(4,654	)
Foreign currency translation		—			(120	)		(120	)
Unrealized loss on investments, net of tax of $(33)		(48	)		—			(48	)
Balance at September 30, 2016	$	(28	)	$	(4,794	)	$	(4,822	)

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Marketable Investments

9 Months Ended

Sep. 30, 2017

Investments Debt And Equity Securities [Abstract]

Marketable Investments

Note 3 — Marketable Investments

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

	As of  September 30, 2017
			Gross		Gross
	Amortized		Unrealized		Unrealized			Market
	Cost		Gains		Losses			Value
Federal agency obligations	$	1,800	$	—	$	(4	)	$	1,796
Corporate obligations		52,277		7		(61	)		52,223
Total	$	54,077	$	7	$	(65	)	$	54,019

	As of December 31, 2016
			Gross		Gross
	Amortized		Unrealized		Unrealized			Market
	Cost		Gains		Losses			Value
Federal agency obligations	$	1,800	$	—	$	(7	)	$	1,793
Corporate obligations		59,481		2		(129	)		59,354
Total	$	61,281	$	2	$	(136	)	$	61,147

Realized gains and losses on investments are included in earnings and are determined using the specific identification method. Realized gains or losses on the sale of the Company’s marketable investments were not material in the three and nine months ended September 30, 2017 and 2016.

The following table summarizes the maturity periods of the marketable investments in the Company’s portfolio as of September 30, 2017 (in thousands).

	FY 2017		FY 2018		FY 2019		Total
Federal agency obligations	$	—	$	1,796	$	—	$	1,796
Corporate obligations		4,000		28,559		19,664		52,223
Total	$	4,000	$	30,355	$	19,664	$	54,019

The following table shows the gross unrealized losses and market value of the Company’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  September 30, 2017
	Less Than 12 Months				12 Months or Greater
	Market		Unrealized		Market		Unrealized
	Value		Losses		Value		Losses
Federal agency obligations	$	-	$	—	$	1,796	$	4
Corporate obligations		25,039		30		17,640		31
Total	$	25,039	$	30	$	19,436	$	35

	As of December 31, 2016
	Less Than 12 Months				12 Months or Greater
	Market		Unrealized		Market		Unrealized
	Value		Losses		Value		Losses
Federal agency obligations	$	1,793	$	7	$	—	$	—
Corporate obligations		53,647		129		—		—
Total	$	55,440	$	136	$	—	$	—

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 (in thousands):

	As of  September 30, 2017
	Level 1		Level 2		Level 3		Total
Money market funds (1)	$	763	$	—	$	—	$	763
Federal agency obligations		—		1,796		—		1,796
Corporate obligations		—		52,223		—		52,223
Total	$	763	$	54,019	$	—	$	54,782

	As of December 31, 2016
	Level 1		Level 2		Level 3		Total
Money market funds (1)	$	2,522	$	—	$	—	$	2,522
Federal agency obligations		—		1,793		—		1,793
Corporate obligations		—		59,354		—		59,354
Total	$	2,522	$	61,147	$	—	$	63,669

(1) Included in cash and cash equivalents. 

Level 2 assets consist of the Company’s entire portfolio of marketable investments. 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.

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Non-Marketable Investments

9 Months Ended

Sep. 30, 2017

Investments Debt And Equity Securities [Abstract]

Non-Marketable Investments

Note 4 — Non-Marketable Investments

At September 30, 2017 and December 31, 2016, the carrying value of the Company’s non-marketable investments, which were composed primarily of interests in technology-related private equity funds, was $1.5 million and $2.8 million, respectively, and is included in other assets in the Consolidated Balance Sheets.

The Company’s investments at September 30, 2017 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. Losses from non-marketable investments were $0.8 million and $1.0 million during the three and nine months ended September 30, 2017. Losses from non-marketable investments were $1.1 million and $1.2 million during the three and nine months ended September 30, 2016. Losses are included in Losses on investments, net in the Consolidated Statements of Income. At December 31, 2016, the Company’s investments also included an investment with a book value of $0.4 million, which was accounted for using the cost method. This investment was fully liquidated during the three months ended March 31, 2017. During the three months ended September 30, 2017, no distributions were received from the funds. During the nine months ended September 30, 2017, distributions of $0.4 million were received from the funds. During the nine months ended September 30, 2016, no distributions were received from the funds.

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Reorganization

9 Months Ended

Sep. 30, 2017

Restructuring And Related Activities [Abstract]

Reorganization

Note 5 — Reorganization

In the first quarter of 2016, the Company implemented a reduction in its workforce of approximately 2% of its employees across various geographies and functions. The Company recorded $1.0 million of severance and related costs for this action during the three months ended March 31, 2016. All costs under this plan were paid during 2016.

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Net Income Per Common Share

9 Months Ended

Sep. 30, 2017

Earnings Per 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				Nine Months Ended
	September 30,				September 30,
	2017		2016		2017		2016
Basic weighted average common shares outstanding		17,747		18,062		17,897		17,896
Weighted average common equivalent shares		304		373		315		272
Diluted weighted average common shares outstanding		18,051		18,435		18,212		18,168
Share based awards excluded from diluted weighted average share    calculation as effect would have been anti-dilutive		27		82		177		910

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Stockholders' Equity

9 Months Ended

Sep. 30, 2017

Equity [Abstract]

Stockholders' Equity

Note 7 — Stockholders’ Equity

Equity Plans

Stock option activity for the nine months ended September 30, 2017 is presented below (in thousands, except per share data and contractual term):

				Weighted -		Weighted -
				Average		Average
				Exercise		Remaining		Aggregate
	Number			Price Per		Contractual		Intrinsic
	of Shares			Share		Term (in years)		Value
Outstanding at December 31, 2016		1,540		$	34.35
Granted		—			—
Exercised		(385	)		32.32
Forfeited		(73	)		34.44
Outstanding at September 30, 2017		1,082		$	35.07		6.01	$	7,332
Exercisable at September 30, 2017		771		$	34.92		5.36	$	5,340
Vested and expected to vest at September 30, 2017		1,082		$	35.07		6.01	$	7,332

Restricted stock unit activity for the nine months ended September 30, 2017 is presented below (in thousands, except per share data):

				Weighted-
				Average
	Number of			Grant Date
	Shares			Fair Value
Unvested at December 31, 2016		539		$	35.50
Granted		241			39.58
Vested		(205	)		35.28
Forfeited		(51	)		36.01
Unvested at September 30, 2017		524		$	37.42

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				Nine Months Ended
	September 30,				September 30,
	2017		2016		2017		2016
Cost of services and fulfillment	$	1,088	$	1,077	$	3,387	$	3,141
Selling and marketing		170		272		535		695
General and administrative		920		622		2,501		1,895
Total	$	2,178	$	1,971	$	6,423	$	5,731

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

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2017			2016			2017			2016
Average risk-free interest rate		0.96	%		0.47	%		0.81	%		0.47	%
Expected dividend yield		1.9	%		2.0	%		1.9	%		2.0	%
Expected life	0.5 Years			0.5 Years			0.5 Years			0.5 Years
Expected volatility		26	%		26	%		24	%		25	%
Weighted average fair value	$	8.50		$	7.52		$	8.32		$	7.75

Dividends

In the nine months ended September 30, 2017, the Company declared and paid dividends of $10.2 million consisting of a $0.19 per share dividend in each of the first three quarters of 2017.  In the nine months ended September 30, 2016, the Company declared and paid dividends of $9.7 million consisting of a $0.18 per share dividend in each of the first three quarters of 2016. In October 2017, the Company declared a dividend of $0.19 per share payable on December 20, 2017 to shareholders of record as of December 6, 2017.

Treasury Stock

As of September 30, 2017, Forrester’s Board of Directors had authorized an aggregate $485.0 million to purchase common stock under its stock repurchase program. The shares repurchased may be used, among other things, in connection with Forrester’s equity incentive and purchase plans. In the three and nine months ended September 30, 2017, the Company repurchased approximately 0.1 and 1.1 million shares, respectively, of common stock at an aggregate cost of approximately $3.5 million and $40.0 million, respectively. The Company did not repurchase shares of common stock in the nine months ended September 30, 2016. From the inception of the program through September 30, 2017, Forrester repurchased 16.1 million shares of common stock at an aggregate cost of $464.9 million.

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Income Taxes

9 Months Ended

Sep. 30, 2017

Income Tax Disclosure [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 and tax benefits or expense related to settlements of share-based payment awards are treated as discrete items and are recorded in the period in which they arise.

Income tax expense for the nine months ended September 30, 2017 was $6.3 million resulting in an effective tax rate of 32.6% for the period. Income tax expense for the nine months ended September 30, 2016 was $9.1 million resulting in an effective tax rate of 43.4% for the period.  The decrease in the effective tax rate during the nine months ended September 30, 2017 compared to the prior year period was primarily due to the recognition of a $1.3 million benefit from the settlement of a tax audit in the first quarter of 2017 and the recognition of approximately $0.3 million of windfall tax benefits from the settlement of options and restricted stock units during the third quarter of 2017. In addition, in 2016 an additional $0.6 million of tax expense was incurred due to a valuation allowance on a capital loss generated from one of the Company’s investments. For the full year 2017, the Company anticipates that its effective tax rate will be approximately 35%.

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Operating Segments

9 Months Ended

Sep. 30, 2017

Segment Reporting [Abstract]

Operating Segments

Note 9 — Operating Segments

The Research segment includes the costs of the Company’s research personnel who are responsible for writing the research and performing the webinars and inquiries for the Company’s Research and Connect products. In addition, the research personnel deliver advisory services (such as workshops, speeches and advisory days) and a portion of the Company’s project consulting services. Revenue in this segment includes only revenue from advisory services and project consulting services that are delivered by the research personnel in this segment.

The Product segment includes the costs of the product management organization that is responsible for product pricing and packaging and the launch of new products. In addition, this segment includes the costs of the Company’s Data, Connect and Events organizations. Revenue in this segment includes all revenue for the Company (including Research and Connect) except for revenue from advisory services and project consulting services that are delivered by personnel in the Research and Project Consulting segments.

The Project Consulting segment includes the costs of the consultants that deliver the majority of the Company’s project consulting services. Revenue in this segment includes the project consulting revenue delivered by the consultants in this segment.

The Company evaluates reportable segment performance and allocates resources based on segment revenues and expenses. Segment expenses include the direct expenses of each segment organization and exclude selling and marketing expenses, certain client support expenses, general and administrative expenses, stock-based compensation expense, depreciation expense, adjustments to incentive bonus compensation from target amounts, amortization of intangible assets, reorganization costs, other income, and losses on investments. The accounting policies used by the segments are the same as those used in the consolidated financial statements.

In the first quarter of 2017, the Company modified its internal reporting for the Research and Project Consulting segments to reflect the transfer of revenue and direct costs related to a small consulting team in Asia Pacific from Research to Project Consulting, and to remove from both Research and Project Consulting certain client support activities that are now included within selling, marketing, administrative and other expenses in the table below. Accordingly, the 2016 amounts have been reclassified to conform to the current presentation.

						Project
	Product		Research			Consulting		Consolidated
Three Months Ended September 30, 2017
Research services revenues	$	54,235	$	—		$	—	$	54,235
Advisory services and events revenues		3,353		10,379			12,402		26,134
Total segment revenues		57,588		10,379			12,402		80,369
Segment expenses		9,764		11,953			6,443		28,160
Contribution margin (loss)		47,824		(1,574	)		5,959		52,209
Selling, marketing, administrative and other expenses									(45,263	)
Amortization of intangible assets									(197	)
Reorganization costs									—
Other income and losses on investments									(626	)
Income before income taxes								$	6,123

						Project
	Product		Research			Consulting		Consolidated
Three Months Ended September 30, 2016
Research services revenues	$	52,727	$	—		$	—	$	52,727
Advisory services and events revenues		2,333		10,330			12,037		24,700
Total segment revenues		55,060		10,330			12,037		77,427
Segment expenses		8,884		11,586			5,522		25,992
Contribution margin (loss)		46,176		(1,256	)		6,515		51,435
Selling, marketing, administrative and other expenses									(43,675	)
Amortization of intangible assets									(208	)
Reorganization costs									—
Other income and losses on investments									(856	)
Income before income taxes								$	6,696

						Project
	Product		Research			Consulting		Consolidated
Nine Months Ended September 30, 2017
Research services revenues	$	160,553	$	—		$	—	$	160,553
Advisory services and events revenues		15,714		32,279			38,750		86,743
Total segment revenues		176,267		32,279			38,750		247,296
Segment expenses		32,788		36,510			18,886		88,184
Contribution margin (loss)		143,479		(4,231	)		19,864		159,112
Selling, marketing, administrative and other expenses									(138,432	)
Amortization of intangible assets									(582	)
Reorganization costs									—
Other income and losses on investments									(749	)
Income before income taxes								$	19,349

						Project
	Product		Research			Consulting		Consolidated
Nine Months Ended September 30, 2016
Research services revenues	$	160,998	$	—		$	—	$	160,998
Advisory services and events revenues		14,191		33,244			34,216		81,651
Total segment revenues		175,189		33,244			34,216		242,649
Segment expenses		30,306		36,026			17,465		83,797
Contribution margin (loss)		144,883		(2,782	)		16,751		158,852
Selling, marketing, administrative and other expenses									(135,463	)
Amortization of intangible assets									(627	)
Reorganization costs									(1,026	)
Other income and losses on investments									(765	)
Income before income taxes								$	20,971

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Recent Accounting Pronouncements

9 Months Ended

Sep. 30, 2017

New Accounting Pronouncements And Changes In Accounting Principles [Abstract]

Recent Accounting Pronouncements

Note 10 — Recent Accounting Pronouncements

In May 2014, the Financial Accounting Standards Board (FASB) issued ASU No. 2014-09, Revenue from Contracts with Customers, which supersedes all existing revenue recognition requirements, including most industry specific guidance. The new standard requires a company to recognize revenue when it transfers goods or services to customers in an amount that reflects the consideration that the company expects to receive for those goods or services. The guidance also includes enhanced disclosure requirements which are intended to help financial statement users better understand the nature, amount, timing and uncertainty of revenue being recognized and the related cash flows. In March 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers: Principal versus Agent Considerations, which clarifies the implementation guidance on principal versus agent considerations. In April 2016, the FASB issued ASU No. 2016-10, Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing, which clarifies certain aspects of identifying performance obligations and licensing implementation guidance. In May 2016, the FASB issued ASU No. 2016-12, Revenue from Contracts with Customers: Narrow Scope Improvements and Practical Expedients, which relates to disclosures of remaining performance obligations, as well as other amendments to guidance on collectability, noncash consideration and the presentation of sales and other similar taxes collected from customers. In December 2016, the FASB issued ASU 2016-20, Technical Corrections and Improvements: Revenue from Contracts with Customers, which clarifies several topics including, certain types of transactions that are outside the scope of the new standard, disclosure requirements and balance sheet considerations.

The new standard will be effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. The two permitted transition methods under the new standard are the full retrospective method, in which case the standard would be applied to each prior reporting period presented, or the modified retrospective method, in which case the cumulative effect of applying the standard would be recognized at the date of initial application. The Company has determined that it will adopt the standard utilizing the modified retrospective method.

In 2016, Forrester established a formal program and cross-functional implementation team to identify, design and implement changes to its accounting systems and policies, business processes and internal controls to support recognition and disclosures under the new standard. The Company believes that it has essentially completed its assessment of how the new standard will affect the Company’s revenue recognition for all of its products and services, and will complete its accounting system and business process changes by the end of 2017.

The Company does not anticipate that the standard will have a material impact on its results of operations. The number of performance obligations in the Company’s arrangements will not be different under the new standard than under current guidance. Determining standalone selling prices and allocating contract consideration on multiple element arrangements will follow a similar process as the Company’s current methodologies of establishing fair value / estimated selling price for our goods and services or allocating total contract consideration under the relative selling price method. Additionally, the timing of revenue recognition will remain substantially unchanged for most products. Subscription based research services revenues will continue to be recognized over time, using the new standard’s output method of time elapsed, as Forrester’s clients receive and consume the benefits of our services as we transfer control throughout the contract period. Advisory, reprint and events revenues will continue to be recognized at the point in time as control is transferred to the customer, which will generally be when the client has physical possession of the good(s) or upon completion of the service(s). The Company expects that most of its consulting contracts will continue to be recognized over time, while some contracts may be required to be recognized at a point in time upon completion of the project.

The following changes are anticipated under the new standard:

• The Company will no longer record accounts receivable and deferred revenue on its balance sheet when it issues an invoice to a customer for a contract that is cancellable by the customer.  For contracts that are cancellable, the Company will only record accounts receivable up to the amount of revenue earned but not yet collected.  This change will have the effect of reducing the amount of accounts receivable and deferred revenue on the balance sheet compared to amounts recorded based on current accounting standards.  The majority of the Company’s contracts are non-cancellable; however, the Company has not yet determined the effect of this change on its balance sheet.

• The timing of revenue recognition for prepaid performance obligations that are expected to expire unused, which may include event tickets, reprints and advisory hours, will change from recognition at the time of expiration under the current standard to recognition in proportion to the pattern of related rights exercised by the customer. The Company currently expects this change to primarily affect the timing of revenue within the quarters of 2018 but does not expect it to have a material effect on the Company’s results of operations for the full year of 2018.

Key areas still in process include the evaluation of costs to fulfill contracts and completion and testing of new functionality of the Company’s existing software systems that is being implemented as part of this project. The adoption program and all remaining activities, including updates to the Company’s systems, processes, policies and controls, are expected to be completed by the end of 2017.  In addition, report development and testing for disclosure requirements in 2018 will be completed in the first quarter of 2018.

In February 2016, the FASB issued ASU No. 2016-02, Leases. The new standard requires that all lessees recognize the assets and liabilities that arise from leases on the balance sheet and disclose qualitative and quantitative information about its leasing arrangements. The new standard will be effective for the Company on January 1, 2019. The adoption of this standard is expected to have a material impact on the Company’s financial position as virtually all leases will be recorded on the balance sheets as a right-of-use asset and a lease liability. The Company is currently evaluating the potential impact that this standard may have on its results of operations.

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments. The new standard amends the current financial instrument impairment model by requiring entities to use a forward-looking approach based on expected losses to estimate credit losses on certain types of financial instruments, including trade receivables. The new standard will be effective for the Company on January 1, 2020. The adoption of this standard is not expected to have a material impact on the Company’s financial position or results of operations.

In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments. The new standard clarifies certain aspects of the statement of cash flows, including contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, and distributions received from equity method investees, among others. The new standard will be effective for the Company on January 1, 2018. The adoption of this standard is not expected to have a material impact on the Company’s statements of cash flows upon adoption.

In January 2017, the FASB issued ASU No. 2017-04, Intangibles-Goodwill and Other: Simplifying the Test for Goodwill Impairment. The new standard simplifies the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test and requires that instead, an entity should perform its goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. The new standard will be effective for the Company on January 1, 2020. The adoption of this standard is not expected to have a material impact on the Company’s financial position or results of operations.

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Interim Consolidated Financial Statements (Policies)

9 Months Ended

Sep. 30, 2017

Accounting Policies [Abstract]

Basis of Presentation

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, 2016. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair statement of the financial position, results of operations, comprehensive income and cash flows as of the dates and for the periods presented have been included. The results of operations for the three and nine months ended September 30, 2017 may not be indicative of the results for the year ending December 31, 2017, or any other period.

Fair Value Measurements

Fair Value Measurements

The carrying amounts reflected in the Consolidated Balance Sheets for cash and cash equivalents, accounts receivable, accounts payable, and accrued expenses approximate fair value due to their short-term maturities. See Note 3 – Marketable Investments - for the fair value of the Company’s marketable investments.

Adoption of New Accounting Pronouncements

Adoption of New Accounting Pronouncements

The Company adopted the guidance in Accounting Standards Update ("ASU") No. 2016-09, Compensation - Stock Compensation - Improvements to Employee Share-Based Payment Accounting, on January 1, 2017. Under this standard, entities are permitted to make an accounting policy election to either estimate forfeitures on share-based payment awards, as previously required, or to recognize forfeitures as they occur. The Company has elected to recognize forfeitures as they occur and the impact of that change in accounting policy has been recorded as a$0.2 millioncumulative effect adjustment to increase retained earnings as of January 1, 2017.

Additionally, ASU No. 2016-09 requires that all income tax effects related to settlements of share-based payment awards be reported in earnings as an increase or decrease to income tax expense. Previously, income tax effects at settlement of an award were reported as an increase (or decrease) to additional paid-in capital to the extent that those benefits were greater than (or less than) the income tax effects reported in earnings during the award's vesting period. The requirement to report those income tax effects in earnings has been applied on a prospective basis to settlements occurring on or after January 1, 2017, and the impact of applying this guidance resulted in a $0.3 million tax benefit for the three and nine months ended September 30, 2017. Application of this guidance may result in fluctuations in the Company’s effective tax rate depending on how many options are exercised, how many restricted stock units vest and the volatility of the Company’s stock price.

ASU 2016-09 also requires that all income tax-related cash flows resulting from share-based payments be reported as operating activities in the statement of cash flows. Previously, income tax benefits at settlement of an award were reported as a reduction to operating cash flows and an increase to financing cash flows to the extent that those benefits exceeded the income tax benefits reported in earnings during the award's vesting period. In addition, the standard requires that cash paid by directly withholding shares for tax withholding purposes be classified as a financing activity in the statement of cash flows. For the nine months ended September 30, 2017, the Company reflected $2.5 million of tax withholding in financing activities. The Company has elected to apply the changes in cash flow classification on a retrospective basis resulting in an increase in operating cash flows, with a corresponding decrease in financing cash flows, of $2.4 million for the nine months ended September 30, 2016, as compared to the amounts previously reported.

The Company elected to early adopt the guidance in ASU No. 2016-16, Accounting for Income Taxes: Intra-Entity Asset Transfers of Assets Other than Inventory, on January 1, 2017. The guidance in this standard eliminates for all intra-entity sales of assets other than inventory, the exception under existing standards that permits the tax effects of intra-entity asset transfers to be deferred until the transferred asset is sold to a third party or otherwise recovered through use. As a result, a reporting entity would recognize the tax expense from the sale of the asset in the seller’s tax jurisdiction when the transfer occurs and any deferred tax asset that arises in the buyer’s jurisdiction would also be recognized at the time of the transfer. As a result, the Company has recorded a $0.5 millioncumulative effect adjustment to reduce retained earnings as of January 1, 2017.

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Accumulated Other Comprehensive Income (Loss) (Tables)

9 Months Ended

Sep. 30, 2017

Equity [Abstract]

Schedule of Components of Accumulated Other Comprehensive Income (Loss)

The components of accumulated other comprehensive income (loss) are as follows (in thousands):

							Total
	Net UnrealizedGain			Cumulative			Accumulated
	(Loss) on Marketable			Translation			Other Comprehensive
	Investments			Adjustment			Income (Loss)
Balance at January 1, 2017	$	(83	)	$	(7,490	)	$	(7,573	)
Foreign currency translation		—			4,905			4,905
Unrealized gain on investments, net of tax of $29		47			—			47
Balance at September 30, 2017	$	(36	)	$	(2,585	)	$	(2,621	)

							Total
	Net Unrealized Gain			Cumulative			Accumulated
	(Loss) on Marketable			Translation			Other Comprehensive
	Investments			Adjustment			Income (Loss)
Balance at July 1, 2017	$	(59	)	$	(4,186	)	$	(4,245	)
Foreign currency translation		—			1,601			1,601
Unrealized gain on investments, net of tax of $14		23			—			23
Balance at September 30, 2017	$	(36	)	$	(2,585	)	$	(2,621	)

							Total
	Net Unrealized Gain			Cumulative			Accumulated
	(Loss) on Marketable			Translation			Other Comprehensive
	Investments			Adjustment			Income (Loss)
Balance at January 1, 2016	$	(100	)	$	(4,726	)	$	(4,826	)
Foreign currency translation		—			(68	)		(68	)
Unrealized gain on investments, net of tax of $46		72			—			72
Balance at September 30, 2016	$	(28	)	$	(4,794	)	$	(4,822	)

							Total
	Net Unrealized Gain			Cumulative			Accumulated
	(Loss) on Marketable			Translation			Other Comprehensive
	Investments			Adjustment			Income (Loss)
Balance at July 1, 2016	$	20		$	(4,674	)	$	(4,654	)
Foreign currency translation		—			(120	)		(120	)
Unrealized loss on investments, net of tax of $(33)		(48	)		—			(48	)
Balance at September 30, 2016	$	(28	)	$	(4,794	)	$	(4,822	)

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Marketable Investments (Tables)

9 Months Ended

Sep. 30, 2017

Investments Debt And Equity Securities [Abstract]

Summary of Company's Marketable Investments

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

	As of  September 30, 2017
			Gross		Gross
	Amortized		Unrealized		Unrealized			Market
	Cost		Gains		Losses			Value
Federal agency obligations	$	1,800	$	—	$	(4	)	$	1,796
Corporate obligations		52,277		7		(61	)		52,223
Total	$	54,077	$	7	$	(65	)	$	54,019

	As of December 31, 2016
			Gross		Gross
	Amortized		Unrealized		Unrealized			Market
	Cost		Gains		Losses			Value
Federal agency obligations	$	1,800	$	—	$	(7	)	$	1,793
Corporate obligations		59,481		2		(129	)		59,354
Total	$	61,281	$	2	$	(136	)	$	61,147

Summary of Maturity Periods of Marketable Investments

The following table summarizes the maturity periods of the marketable investments in the Company’s portfolio as of September 30, 2017 (in thousands).

	FY 2017		FY 2018		FY 2019		Total
Federal agency obligations	$	—	$	1,796	$	—	$	1,796
Corporate obligations		4,000		28,559		19,664		52,223
Total	$	4,000	$	30,355	$	19,664	$	54,019

Summary of Gross Unrealized Losses and Market Value of Available-for-Sale Securities with Unrealized Losses

The following table shows the gross unrealized losses and market value of the Company’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  September 30, 2017
	Less Than 12 Months				12 Months or Greater
	Market		Unrealized		Market		Unrealized
	Value		Losses		Value		Losses
Federal agency obligations	$	-	$	—	$	1,796	$	4
Corporate obligations		25,039		30		17,640		31
Total	$	25,039	$	30	$	19,436	$	35

	As of December 31, 2016
	Less Than 12 Months				12 Months or Greater
	Market		Unrealized		Market		Unrealized
	Value		Losses		Value		Losses
Federal agency obligations	$	1,793	$	7	$	—	$	—
Corporate obligations		53,647		129		—		—
Total	$	55,440	$	136	$	—	$	—

Summary of Company's Fair Value Hierarchy for its Financial Assets

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 (in thousands):

	As of  September 30, 2017
	Level 1		Level 2		Level 3		Total
Money market funds (1)	$	763	$	—	$	—	$	763
Federal agency obligations		—		1,796		—		1,796
Corporate obligations		—		52,223		—		52,223
Total	$	763	$	54,019	$	—	$	54,782

	As of December 31, 2016
	Level 1		Level 2		Level 3		Total
Money market funds (1)	$	2,522	$	—	$	—	$	2,522
Federal agency obligations		—		1,793		—		1,793
Corporate obligations		—		59,354		—		59,354
Total	$	2,522	$	61,147	$	—	$	63,669

(1) Included in cash and cash equivalents. 

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Net Income Per Common Share (Tables)

9 Months Ended

Sep. 30, 2017

Earnings Per Share [Abstract]

Schedule of Basic and Diluted Weighted Average Common Shares

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

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2017		2016		2017		2016
Basic weighted average common shares outstanding		17,747		18,062		17,897		17,896
Weighted average common equivalent shares		304		373		315		272
Diluted weighted average common shares outstanding		18,051		18,435		18,212		18,168
Share based awards excluded from diluted weighted average share    calculation as effect would have been anti-dilutive		27		82		177		910

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Stockholders' Equity (Tables)

9 Months Ended

Sep. 30, 2017

Equity [Abstract]

Schedule of Stock Option Activity

Stock option activity for the nine months ended September 30, 2017 is presented below (in thousands, except per share data and contractual term):

				Weighted -		Weighted -
				Average		Average
				Exercise		Remaining		Aggregate
	Number			Price Per		Contractual		Intrinsic
	of Shares			Share		Term (in years)		Value
Outstanding at December 31, 2016		1,540		$	34.35
Granted		—			—
Exercised		(385	)		32.32
Forfeited		(73	)		34.44
Outstanding at September 30, 2017		1,082		$	35.07		6.01	$	7,332
Exercisable at September 30, 2017		771		$	34.92		5.36	$	5,340
Vested and expected to vest at September 30, 2017		1,082		$	35.07		6.01	$	7,332

Schedule of Restricted Stock Unit Activity

Restricted stock unit activity for the nine months ended September 30, 2017 is presented below (in thousands, except per share data):

				Weighted-
				Average
	Number of			Grant Date
	Shares			Fair Value
Unvested at December 31, 2016		539		$	35.50
Granted		241			39.58
Vested		(205	)		35.28
Forfeited		(51	)		36.01
Unvested at September 30, 2017		524		$	37.42

Summary of Stock-Based Compensation Expense Recorded in Expense Categories

Stock-based compensation was recorded in the following expense categories (in thousands):

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2017		2016		2017		2016
Cost of services and fulfillment	$	1,088	$	1,077	$	3,387	$	3,141
Selling and marketing		170		272		535		695
General and administrative		920		622		2,501		1,895
Total	$	2,178	$	1,971	$	6,423	$	5,731

Shares Subject to Employee Stock Purchase Plan Valuation Assumptions

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

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2017			2016			2017			2016
Average risk-free interest rate		0.96	%		0.47	%		0.81	%		0.47	%
Expected dividend yield		1.9	%		2.0	%		1.9	%		2.0	%
Expected life	0.5 Years			0.5 Years			0.5 Years			0.5 Years
Expected volatility		26	%		26	%		24	%		25	%
Weighted average fair value	$	8.50		$	7.52		$	8.32		$	7.75

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Operating Segments (Tables)

9 Months Ended

Sep. 30, 2017

Segment Reporting [Abstract]

Schedule of Information about Reportable Segments

						Project
	Product		Research			Consulting		Consolidated
Three Months Ended September 30, 2017
Research services revenues	$	54,235	$	—		$	—	$	54,235
Advisory services and events revenues		3,353		10,379			12,402		26,134
Total segment revenues		57,588		10,379			12,402		80,369
Segment expenses		9,764		11,953			6,443		28,160
Contribution margin (loss)		47,824		(1,574	)		5,959		52,209
Selling, marketing, administrative and other expenses									(45,263	)
Amortization of intangible assets									(197	)
Reorganization costs									—
Other income and losses on investments									(626	)
Income before income taxes								$	6,123

						Project
	Product		Research			Consulting		Consolidated
Three Months Ended September 30, 2016
Research services revenues	$	52,727	$	—		$	—	$	52,727
Advisory services and events revenues		2,333		10,330			12,037		24,700
Total segment revenues		55,060		10,330			12,037		77,427
Segment expenses		8,884		11,586			5,522		25,992
Contribution margin (loss)		46,176		(1,256	)		6,515		51,435
Selling, marketing, administrative and other expenses									(43,675	)
Amortization of intangible assets									(208	)
Reorganization costs									—
Other income and losses on investments									(856	)
Income before income taxes								$	6,696

						Project
	Product		Research			Consulting		Consolidated
Nine Months Ended September 30, 2017
Research services revenues	$	160,553	$	—		$	—	$	160,553
Advisory services and events revenues		15,714		32,279			38,750		86,743
Total segment revenues		176,267		32,279			38,750		247,296
Segment expenses		32,788		36,510			18,886		88,184
Contribution margin (loss)		143,479		(4,231	)		19,864		159,112
Selling, marketing, administrative and other expenses									(138,432	)
Amortization of intangible assets									(582	)
Reorganization costs									—
Other income and losses on investments									(749	)
Income before income taxes								$	19,349

						Project
	Product		Research			Consulting		Consolidated
Nine Months Ended September 30, 2016
Research services revenues	$	160,998	$	—		$	—	$	160,998
Advisory services and events revenues		14,191		33,244			34,216		81,651
Total segment revenues		175,189		33,244			34,216		242,649
Segment expenses		30,306		36,026			17,465		83,797
Contribution margin (loss)		144,883		(2,782	)		16,751		158,852
Selling, marketing, administrative and other expenses									(135,463	)
Amortization of intangible assets									(627	)
Reorganization costs									(1,026	)
Other income and losses on investments									(765	)
Income before income taxes								$	20,971

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Interim Consolidated Financial Statements - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended		12 Months Ended
	Sep. 30, 2017	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Summary Of Significant Accounting Policy [Line Items]
Tax withholding in financing activities		$ 2,511	$ 2,069
ASU No. 2016-09 [Member]
Summary Of Significant Accounting Policy [Line Items]
Cumulative effect adjustment to increase or (reduce) retained earnings				$ 200
Tax benefit recognized	$ 300	300
Tax withholding in financing activities		$ 2,500
Change in reclassification of tax withholding			$ 2,400
Early Adoption of ASU No. 2016-16 [Member]
Summary Of Significant Accounting Policy [Line Items]
Cumulative effect adjustment to increase or (reduce) retained earnings				$ (500)

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Accumulated Other Comprehensive Income (Loss) - Schedule of Components of Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance			$ (7,573)
Foreign currency translation	$ 1,601	$ (120)	4,905	$ (68)
Unrealized gain (loss) on investments, net of tax	23	(48)	47	72
Ending Balance	(2,621)		(2,621)
Beginning Balance			150,036
Ending Balance	135,220		135,220
Net Unrealized Gain (Loss) on Marketable Investments [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	(59)	20	(83)	(100)
Unrealized gain (loss) on investments, net of tax	23	(48)	47	72
Ending Balance	(36)	(28)	(36)	(28)
Cumulative Translation Adjustment [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	(4,186)	(4,674)	(7,490)	(4,726)
Foreign currency translation	1,601	(120)	4,905	(68)
Ending Balance	(2,585)	(4,794)	(2,585)	(4,794)
Total Accumulated Other Comprehensive Income (Loss) [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	(4,245)	(4,654)	(7,573)	(4,826)
Ending Balance	$ (2,621)	$ (4,822)	$ (2,621)	$ (4,822)

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Accumulated Other Comprehensive Income (Loss) - Schedule of Components of Accumulated Other Comprehensive Income (Loss) (Parenthetical) (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Other Comprehensive Income Loss Tax Parenthetical Disclosures [Abstract]
Tax expense (benefit) on unrealized gain (loss) on investments	$ 14	$ (33)	$ 29	$ 46

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Marketable Investments - Summary of Company's Marketable Investments (Detail) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	$ 54,077	$ 61,281
Gross Unrealized Gains	7	2
Gross Unrealized Losses	(65)	(136)
Market Value	54,019	61,147
Federal Agency Obligations [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	1,800	1,800
Gross Unrealized Losses	(4)	(7)
Market Value	1,796	1,793
Corporate Obligations [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	52,277	59,481
Gross Unrealized Gains	7	2
Gross Unrealized Losses	(61)	(129)
Market Value	$ 52,223	$ 59,354

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Marketable Investments - Summary of Maturity Periods of the Marketable Investments (Detail) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Schedule of Available-for-sale Securities [Line Items]
FY 2017	$ 4,000
FY 2018	30,355
FY 2019	19,664
Total	54,019	$ 61,147
Federal Agency Obligations [Member]
Schedule of Available-for-sale Securities [Line Items]
FY 2018	1,796
Total	1,796	1,793
Corporate Obligations [Member]
Schedule of Available-for-sale Securities [Line Items]
FY 2017	4,000
FY 2018	28,559
FY 2019	19,664
Total	$ 52,223	$ 59,354

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Marketable Investments - Summary of Gross Unrealized Losses and Market Value of Available-for-Sale Securities with Unrealized Losses (Detail) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Schedule of Available-for-sale Securities [Line Items]
Available for sale securities, Less Than 12 Months, Market Value	$ 25,039	$ 55,440
Available for sale securities, Less Than 12 Months, Unrealized Losses	30	136
Available for sale securities, 12 Months or Greater, Market Value	19,436
Available for sale securities, 12 Months or Greater, Unrealized Losses	35
Federal Agency Obligations [Member]
Schedule of Available-for-sale Securities [Line Items]
Available for sale securities, Less Than 12 Months, Market Value		1,793
Available for sale securities, Less Than 12 Months, Unrealized Losses		7
Available for sale securities, 12 Months or Greater, Market Value	1,796
Available for sale securities, 12 Months or Greater, Unrealized Losses	4
Corporate Obligations [Member]
Schedule of Available-for-sale Securities [Line Items]
Available for sale securities, Less Than 12 Months, Market Value	25,039	53,647
Available for sale securities, Less Than 12 Months, Unrealized Losses	30	$ 129
Available for sale securities, 12 Months or Greater, Market Value	17,640
Available for sale securities, 12 Months or Greater, Unrealized Losses	$ 31

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Marketable Investments - Summary of Company's Fair Value Hierarchy for its Financial Assets (Detail) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of assets on recurring basis	$ 54,782	$ 63,669
Money Market Funds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of assets on recurring basis	763	2,522
Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of assets on recurring basis	763	2,522
Level 1 [Member] | Money Market Funds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of assets on recurring basis	763	2,522
Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of assets on recurring basis	54,019	61,147
Federal Agency Obligations [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of assets on recurring basis	1,796	1,793
Federal Agency Obligations [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of assets on recurring basis	1,796	1,793
Corporate Obligations [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of assets on recurring basis	52,223	59,354
Corporate Obligations [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of assets on recurring basis	$ 52,223	$ 59,354

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Non-Marketable Investments - Additional Information (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items]
Carrying value of the Company's non-marketable investments	$ 1,500,000		$ 1,500,000		$ 2,800,000
Losses from non-marketable investments	800,000	$ 1,100,000	1,000,000	$ 1,200,000
Book value of investment					$ 400,000
Distributions received from funds	$ 0		$ 400,000	$ 0
Limited Partnerships Investments [Member] | Minimum [Member]
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items]
Ownership interest of Company			5.00%

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Reorganization - Additional Information (Detail) $ in Millions	3 Months Ended
	Mar. 31, 2016 USD ($)
Restructuring And Related Activities [Abstract]
Percentage of workforce reduction	2.00%
Severance costs	$ 1.0

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Net Income Per Common Share - Schedule of Basic and Diluted Weighted Average Common Shares (Detail) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Earnings Per Share [Abstract]
Basic weighted average common shares outstanding	17,747	18,062	17,897	17,896
Weighted average common equivalent shares	304	373	315	272
Diluted weighted average common shares outstanding	18,051	18,435	18,212	18,168
Share based awards excluded from diluted weighted average share calculation as effect would have been anti-dilutive	27	82	177	910

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Stockholders' Equity - Schedule of Stock Option Activity (Detail) $ / shares in Units, shares in Thousands, $ in Thousands	9 Months Ended
	Sep. 30, 2017 USD ($) $ / shares shares
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Number of Shares, Outstanding at December 31, 2016 | shares	1,540
Number of Shares, Exercised | shares	(385)
Number of Shares, Forfeited | shares	(73)
Number of Shares, Outstanding at September 30, 2017 | shares	1,082
Number of Shares, Exercisable at September 30, 2017 | shares	771
Number of Shares, Vested and expected to vest at September 30, 2017 | shares	1,082
Weighted - Average Exercise Price Per Share, Outstanding, Beginning balance | $ / shares	$ 34.35
Weighted - Average Exercise Price Per Share, Exercised | $ / shares	32.32
Weighted - Average Exercise Price Per Share, Forfeited | $ / shares	34.44
Weighted - Average Exercise Price Per Share, Outstanding, Ending balance | $ / shares	35.07
Weighted - Average Exercise Price Per Share, Exercisable at September 30, 2017 | $ / shares	34.92
Weighted - Average Exercise Price Per Share, Vested and expected to vest at September 30, 2017 | $ / shares	$ 35.07
Weighted - Average Remaining Contractual Term, Outstanding at September 30, 2017	6 years 4 days
Weighted - Average Remaining Contractual Term, Exercisable at September 30, 2017	5 years 4 months 10 days
Weighted - Average Remaining Contractual Term, Vested and expected to vest at September 30, 2017	6 years 4 days
Aggregate Intrinsic Value, Outstanding at September 30, 2017 | $	$ 7,332
Aggregate Intrinsic Value, Exercisable at September 30, 2017 | $	5,340
Aggregate Intrinsic Value, Vested and expected to vest at September 30, 2017 | $	$ 7,332

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Stockholders' Equity - Schedule of Restricted Stock Unit Activity (Detail) - Restricted Stock Units (RSUs) [Member] shares in Thousands	9 Months Ended
	Sep. 30, 2017 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Shares, Unvested at December 31, 2016 | shares	539
Number of Shares, Granted | shares	241
Number of Shares, Vested | shares	(205)
Number of Shares, Forfeited | shares	(51)
Number of Shares, Unvested at September 30, 2017 | shares	524
Weighted-Average Grant Date Fair Value, Unvested, Beginning Balance | $ / shares	$ 35.50
Weighted-Average Grant Date Fair Value, Granted | $ / shares	39.58
Weighted-Average Grant Date Fair Value, Vested | $ / shares	35.28
Weighted-Average Grant Date Fair Value, Forfeited | $ / shares	36.01
Weighted-Average Grant Date Fair Value, Unvested, Ending Balance | $ / shares	$ 37.42

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Stockholders' Equity - Schedule of Stock-Based Compensation Recorded in Expense Categories (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total allocated share-based compensation expense	$ 2,178	$ 1,971	$ 6,423	$ 5,731
Cost of Services and Fulfillment [Member]
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total allocated share-based compensation expense	1,088	1,077	3,387	3,141
Selling and Marketing [Member]
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total allocated share-based compensation expense	170	272	535	695
General and Administrative [Member]
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total allocated share-based compensation expense	$ 920	$ 622	$ 2,501	$ 1,895

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Stockholders' Equity - Shares Subject to Employee Stock Purchase Plan Valuation Assumptions (Detail) - Employee Stock Purchase Plan [Member] - $ / shares	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Average risk-free interest rate	0.96%	0.47%	0.81%	0.47%
Expected dividend yield	1.90%	2.00%	1.90%	2.00%
Expected life	6 months	6 months	6 months	6 months
Expected volatility	26.00%	26.00%	24.00%	25.00%
Weighted average fair value	$ 8.50	$ 7.52	$ 8.32	$ 7.75

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Stockholders' Equity - Additional Information (Detail) - USD ($)	1 Months Ended	3 Months Ended						9 Months Ended
	Oct. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Sep. 30, 2017	Sep. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Dividend declared and paid per share		$ 0.19	$ 0.19	$ 0.19	$ 0.18	$ 0.18	$ 0.18
Aggregate dividend declared for the year								$ 10,200,000	$ 9,700,000
Dividend declared per share		$ 0.19			$ 0.18			$ 0.57	$ 0.54
Authorized to purchase of common stock under the stock repurchase program		$ 485,000,000						$ 485,000,000
Repurchase of common Stock		100,000						1,100,000	0
Cumulative aggregate cost of repurchase of common stock		$ 3,500,000						$ 40,000,000
Cumulative repurchase of common stock		16,100,000						16,100,000
Aggregate cost of repurchase of common stock								$ 464,900,000
Subsequent Event [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Dividend declared per share	$ 0.19
Dividend payable, date declared	Dec. 20, 2017
Dividend payable, record date	Dec. 06, 2017

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Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended			9 Months Ended		12 Months Ended
	Sep. 30, 2017	Mar. 31, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2017	Dec. 31, 2016
Income Taxes [Line Items]
Income tax expense (benefit)	$ 2,170		$ 3,584	$ 6,302	$ 9,110
Effective income tax rate				32.60%	43.40%
Tax expense due to valuation allowance on capital loss generated from investments							$ 600
Settlement of Options and Restricted Stock Units [Member]
Income Taxes [Line Items]
Tax benefit recognized				$ 300
Settlement from Tax Audit [Member]
Income Taxes [Line Items]
Tax benefit recognized		$ (1,300)
Anticipated [Member]
Income Taxes [Line Items]
Effective income tax rate						35.00%

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Operating Segments - Schedule of Information about Reportable Segments (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Segment Reporting Information [Line Items]
Research services revenues	$ 54,235	$ 52,727	$ 160,553	$ 160,998
Advisory services and events revenues	26,134	24,700	86,743	81,651
Total revenues	80,369	77,427	247,296	242,649
Segment expenses	28,160	25,992	88,184	83,797
Contribution margin (loss)	52,209	51,435	159,112	158,852
Selling, marketing, administrative and other expenses	(45,263)	(43,675)	(138,432)	(135,463)
Amortization of intangible assets	(197)	(208)	(582)	(627)
Reorganization costs				(1,026)
Other income and losses on investments	(626)	(856)	(749)	(765)
Income before income taxes	6,123	6,696	19,349	20,971
Product Segment [Member]
Segment Reporting Information [Line Items]
Research services revenues	54,235	52,727	160,553	160,998
Advisory services and events revenues	3,353	2,333	15,714	14,191
Total revenues	57,588	55,060	176,267	175,189
Segment expenses	9,764	8,884	32,788	30,306
Contribution margin (loss)	47,824	46,176	143,479	144,883
Research Segment [Member]
Segment Reporting Information [Line Items]
Advisory services and events revenues	10,379	10,330	32,279	33,244
Total revenues	10,379	10,330	32,279	33,244
Segment expenses	11,953	11,586	36,510	36,026
Contribution margin (loss)	(1,574)	(1,256)	(4,231)	(2,782)
Project Consulting [Member]
Segment Reporting Information [Line Items]
Advisory services and events revenues	12,402	12,037	38,750	34,216
Total revenues	12,402	12,037	38,750	34,216
Segment expenses	6,443	5,522	18,886	17,465
Contribution margin (loss)	$ 5,959	$ 6,515	$ 19,864	$ 16,751