Gartner returns rise in third quarter


  • Gartner is headquartered at 56 Top Gallant Road in Stamford, Conn. Photo: Lindsay Perry / Lindsay Perry / Stamford Advocate

Photo: Lindsay Perry / Lindsay Perry

Gartner is headquartered at 56 Top Gallant Road in Stamford, Conn.

Gartner is headquartered at 56 Top Gallant Road in Stamford, Conn.

Photo: Lindsay Perry / Lindsay Perry

Gartner returns rise in third quarter

STAMFORD — IT consulting and badysis firm Gartner noticed its revenues soar 44 p.c within the third quarter, development that mirrored a multi-billion acquisition earlier this 12 months, in line with its newest earnings report launched Thursday.

Gartner officers stated they have been happy with the top-line complete of about $828 million, which included returns from know-how and insights enterprise agency CEB, which was purchased in April for $2.6 billion for money and inventory and one other $700 million in CEB debt. A 3rd-quarter lack of about $48 million included acquisition-related prices, the corporate stated.

“Our business continues to perform extraordinarily well,” Gartner CEO Gene Hall stated in a press release Thursday. “We’ve successfully integrated CEB’s talented badociates into Gartner and are already delivering value to our clients through a ‘best of both’ approach. I remain extremely excited about our long-term prospects for growth and delivering shareholder value.”

“Talent Assessment and Other,” a clbad created after the CEB acquisition, recorded revenues of about $58 million up to now quarter.

Last month, the corporate introduced it could discover “strategic alternatives” for its Talent Assessment enterprise, which includes a big a part of the Talent Assessment and Other sector. The choices may embody promoting the Talent Assessment enterprise.

Research revenues hit about $653 million, up 40 p.c from the identical interval final 12 months.

“Traditional” complete contract worth got here to $2.1 billion, 14 p.c greater than in the identical time-frame final 12 months. Contract worth within the conventional enterprise grew by double digits in “every geography, across every client size and in virtually every industry,” Hall stated.

The firm’s “traditional” shopper retention ran at 83 p.c up to now quarter, unchanged from the extent a 12 months in the past.

Consulting revenues of about $72 million have been similar to the whole a 12 months in the past.

Event revenues of $45 million represented a 34 p.c rise from the quantity within the third quarter final 12 months. Gartner’s conventional occasions enterprise held 16 capabilities up to now quarter; CEB hosted one.

Starting in 2018, annual financial savings from the addition of CEB would run between $25 million and $50 million, in line with Gartner officers. In the long run, Gartner goals to supply double-digit development in revenues, earnings and free money stream whereas sustaining a powerful steadiness sheet and liquidity.

Gartner officers have stated they wish to develop a line of latest badysis and advisory merchandise that its executives stated would reap the benefits of CEB’s strengths in human badets, gross sales, finance and authorized companies.

Combined, Gartner and CEB would make use of greater than 13,000 workers in additional than 100 international locations, firm officers have stated.

Gartner shares closed Thursday at about $120, down four p.c from their closing complete Wednesday.

[email protected]; 203-964-2236; twitter: @paulschott

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