UNITED STATES | ||
SECURITIES AND EXCHANGE COMMISSION | ||
Washington, D.C. 20549 | ||
CURRENT REPORT | ||
Pursuant to Section 13 or 15(d) of the | ||
Securities Exchange Act of 1934 | ||
Date of Report (Date of earliest event reported) | ||
(Exact name of registrant as specified in its charter) |
DELAWARE | ||||||||||||||
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
(Address of Principal Executive Offices, including Zip Code) | ||
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||
EXHIBIT NO. | DESCRIPTION | |||||||
104 | Cover Page Interactive Data File, formatted in Inline XBRL (included as Exhibit 101). |
Gartner, Inc. | ||||||||
Date: April 30, 2024 | By: | /s/ Craig W. Safian | ||||||
Craig W. Safian Executive Vice President and Chief Financial Officer |
Gartner | Press Release |
(Unaudited; $ in millions, except per share amounts) | Three Months Ended | |||||||||||||||||||||||||
March 31, | Inc/(Dec) | |||||||||||||||||||||||||
2024 | 2023 | Inc/(Dec) | FX Neutral | |||||||||||||||||||||||
GAAP Metrics: | ||||||||||||||||||||||||||
Revenues | $ | 1,473 | $ | 1,409 | 4.5 | % | 4.6 | % | ||||||||||||||||||
Net income | 211 | 296 | (28.8) | % | na | |||||||||||||||||||||
Diluted EPS | 2.67 | 3.68 | (27.4) | % | na | |||||||||||||||||||||
Operating cash flow | 189 | 165 | 14.7 | % | na |
Non-GAAP Metrics: | ||||||||||||||||||||||||||
Adjusted EBITDA | $ | 382 | $ | 379 | 0.8 | % | 1.7 | % | ||||||||||||||||||
Adjusted EPS | 2.93 | 2.88 | 1.7 | % | na | |||||||||||||||||||||
Free cash flow | 166 | 144 | 15.8 | % | na |
(Unaudited; $ in millions) | ||||||||||||||||||||
Research | Conferences | Consulting | ||||||||||||||||||
Revenues | $ | 1,268 | $ | 70 | $ | 135 | ||||||||||||||
Inc/(Dec) | 4.2 | % | 8.4 | % | 6.0 | % | ||||||||||||||
Inc/(Dec) - FX neutral | 4.1 | % | 8.5 | % | 6.9 | % | ||||||||||||||
Gross contribution | $ | 945 | $ | 23 | $ | 54 | ||||||||||||||
Inc/(Dec) | 5.0 | % | (13.2) | % | 6.8 | % | ||||||||||||||
Contribution margin | 74.5 | % | 33.2 | % | 40.3 | % |
(Unaudited; $ in millions) | |||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||
2024 | 2023 | ||||||||||||||||
GAAP net income | $ | 211 | $ | 296 | |||||||||||||
Interest expense, net | 19 | 27 | |||||||||||||||
Gain on event cancellation insurance claims (a) | — | (3) | |||||||||||||||
Other (income) expense, net | (5) | 2 | |||||||||||||||
Tax provision | 49 | 85 | |||||||||||||||
Operating income | 274 | 408 | |||||||||||||||
Adjustments: | |||||||||||||||||
Stock-based compensation expense (b) | 51 | 45 | |||||||||||||||
Depreciation, amortization and accretion (c) | 50 | 47 | |||||||||||||||
Loss on impairment of lease related assets (d) | 1 | 9 | |||||||||||||||
Acquisition and integration charges and other non-recurring items (e) | 8 | 10 | |||||||||||||||
Gain from sale of divested operation (f) | — | (139) | |||||||||||||||
Adjusted EBITDA | $ | 382 | $ | 379 | |||||||||||||
(a) | Consists of the gain on event cancellation insurance claims for events cancelled in 2020. | ||||||||||||||||
(b) | Consists of costs for stock-based compensation awards. | ||||||||||||||||
(c) | Includes depreciation expense, amortization of intangibles and accretion on asset retirement obligations. | ||||||||||||||||
(d) | Includes impairment loss for lease related assets. | ||||||||||||||||
(e) | Consists of direct and incremental expenses related to acquisitions and divestitures, facility-related exit costs and other non-recurring items. | ||||||||||||||||
(f) | Consists of the gain on our February 2023 divestiture. | ||||||||||||||||
(Unaudited; $ in millions, except per share amounts) | |||||||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||||||||
2024 | 2023 | ||||||||||||||||||||||||||||
Amount | Per Share | Amount | Per Share | ||||||||||||||||||||||||||
GAAP net income and GAAP net income per diluted share | $ | 211 | $ | 2.67 | $ | 296 | $ | 3.68 | |||||||||||||||||||||
Acquisition and other adjustments: | |||||||||||||||||||||||||||||
Amortization of acquired intangibles (a) | 23 | 0.29 | 23 | 0.28 | |||||||||||||||||||||||||
Acquisition and integration charges and other non-recurring items (b), (c) | 9 | 0.12 | 11 | 0.14 | |||||||||||||||||||||||||
Gain on event cancellation insurance claims (d) | — | — | (3) | (0.04) | |||||||||||||||||||||||||
Gain from sale of divested operation (e) | — | — | (139) | (1.74) | |||||||||||||||||||||||||
Loss on impairment of lease related assets (f) | 1 | 0.01 | 9 | 0.11 | |||||||||||||||||||||||||
Gain on de-designated interest rate swaps (g) | (4) | (0.06) | 1 | 0.02 | |||||||||||||||||||||||||
Tax impact of adjustments (h) | (7) | (0.09) | 34 | 0.43 | |||||||||||||||||||||||||
Adjusted net income and Adjusted EPS (i) | $ | 232 | $ | 2.93 | $ | 231 | $ | 2.88 | |||||||||||||||||||||
(a) | Consists of non-cash amortization from acquired intangibles. | ||||||||||||||||||||||||||||
(b) | Consists of direct and incremental expenses related to acquisitions and divestitures, facility-related exit costs and other non-recurring items. | ||||||||||||||||||||||||||||
(c) | Includes the amortization and write-off of deferred financing fees, which are recorded in Interest expense, net in the Company’s accompanying Condensed Consolidated Statements of Operations. | ||||||||||||||||||||||||||||
(d) | Consists of the gain on event cancellation insurance claims for events cancelled in 2020. | ||||||||||||||||||||||||||||
(e) | Consists of the gain on our February 2023 divestiture. | ||||||||||||||||||||||||||||
(f) | Includes impairment loss for lease related assets. | ||||||||||||||||||||||||||||
(g) | Represents the fair value adjustment for interest rate swaps after de-designation. | ||||||||||||||||||||||||||||
(h) | The blended effective tax rates on the adjustments were approximately 25.3% and 34.8% for the three months ended March 31, 2024 and 2023, respectively. | ||||||||||||||||||||||||||||
(i) | Adjusted EPS was calculated based on 79.0 million and 80.3 million diluted shares for the three months ended March 31, 2024 and 2023, respectively. | ||||||||||||||||||||||||||||
(Unaudited; $ in millions) | ||||||||||||||
Three Months Ended March 31, | ||||||||||||||
2024 | 2023 | |||||||||||||
GAAP cash provided by operating activities | $ | 189 | $ | 165 | ||||||||||
Cash paid for capital expenditures | (23) | (21) | ||||||||||||
Free Cash Flow | $ | 166 | $ | 144 |
Three Months Ended | |||||||||||
March 31, | |||||||||||
2024 | 2023 | ||||||||||
Revenues: | |||||||||||
Research | $ | 1,268.2 | $ | 1,217.3 | |||||||
Conferences | 70.1 | 64.6 | |||||||||
Consulting | 134.6 | 127.0 | |||||||||
Total revenues | 1,472.9 | 1,408.9 | |||||||||
Costs and expenses: | |||||||||||
Cost of services and product development | 459.4 | 435.1 | |||||||||
Selling, general and administrative | 689.8 | 657.1 | |||||||||
Depreciation | 26.3 | 23.9 | |||||||||
Amortization of intangibles | 23.0 | 22.7 | |||||||||
Acquisition and integration charges | 0.5 | 1.4 | |||||||||
Gain from sale of divested operation | — | (139.3) | |||||||||
Total costs and expenses | 1,199.0 | 1,000.9 | |||||||||
Operating income | 273.9 | 408.0 | |||||||||
Interest expense, net | (19.2) | (27.4) | |||||||||
Gain on event cancellation insurance claims | — | 3.1 | |||||||||
Other income (expense), net | 4.8 | (2.4) | |||||||||
Income before income taxes | 259.5 | 381.3 | |||||||||
Provision for income taxes | 49.0 | 85.5 | |||||||||
Net income | $ | 210.5 | $ | 295.8 | |||||||
Net income per share: | |||||||||||
Basic | $ | 2.69 | $ | 3.72 | |||||||
Diluted | $ | 2.67 | $ | 3.68 | |||||||
Weighted average shares outstanding: | |||||||||||
Basic | 78.3 | 79.5 | |||||||||
Diluted | 79.0 | 80.3 |
Cover Page |
Apr. 30, 2024 |
---|---|
Cover [Abstract] | |
Amendment Flag | false |
Entity Incorporation, State or Country Code | DE |
Document Type | 8-K |
Entity Registrant Name | GARTNER, INC. |
Entity File Number | 1-14443 |
Entity Tax Identification Number | 04-3099750 |
Entity Address, Address Line One | P.O. Box 10212 |
Entity Address, Address Line Two | 56 Top Gallant Road |
Entity Address, City or Town | Stamford |
Entity Address, State or Province | CT |
Entity Address, Postal Zip Code | 06902-7747 |
City Area Code | 203 |
Local Phone Number | 964-0096 |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
Entity Emerging Growth Company | false |
Title of 12(b) Security | Common Stock, $0.0005 par value per share |
Trading Symbol | IT |
Security Exchange Name | NYSE |
Document Period End Date | Apr. 30, 2024 |
Entity Central Index Key | 0000749251 |
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