Tue, May 6, 10:09 AM (17 days ago)
**Gartner, Inc. (IT) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** $1.534B (up 4% YoY) - Research: $1.322B (up 4% YoY) - Conferences: $72.6M (up 4% YoY) - Consulting: $139.7M (up 4% YoY) - **Operating Income:** $278M (up 2% YoY) - **Net Income:** $210.9M (flat YoY) - **EPS (Diluted):** $2.71 (up 1% YoY) - **Cash Flow from Operations:** $313.5M (up 66% YoY) **Profit Margins:** - **Operating Margin:** 18.1% (down from 18.6% YoY) - **Net Margin:** 13.8% (down from 14.3% YoY) **Cash Flow:** - **Operating Cash Flow:** $313.5M (up 66% YoY) - **Investing Cash Flow:** -$25.6M (up slightly YoY) - **Financing Cash Flow:** -$152.9M (down 29% YoY) **Earnings Changes:** - **Revenue Growth:** Driven by Research contract value growth in 2024. - **Operating Income Growth:** Slight increase due to increased revenues, partially offset by higher expenses. - **Net Income Growth:** Flat due to increased operating expenses and provision for income taxes. **Quarterly Performance Discussion:** - **Research:** Contract value increased by 7% YoY, driven by new business from existing clients. Client retention and wallet retention rates remained strong. - **Conferences:** Revenues increased by 4% YoY, driven by increased exhibitor revenue. Gross contribution margin improved by 5 points. - **Consulting:** Revenues increased by 4% YoY, with a 16% increase in backlog. Gross contribution margin decreased by 2 points due to higher personnel expenses. **Trends & Uncertainties:** - **Geopolitical Risks:** Uncertain effects of changes and volatility in tariffs and trade policies. - **Economic Conditions:** Impact of global economic and geopolitical conditions, including inflation and recession. - **Government Contracts:** Nearly all US federal contracts will come to term during 2025, with about 40% having transacted in Q1 2025. - **Currency Fluctuations:** Significant portion of revenues derived from sales outside the US, exposing the company to foreign currency translation and transaction risks. **Future Operations Impact:** - **Cash Position:** $2.1B in cash and cash equivalents, with $0.7B of available borrowing capacity. - **Debt:** $2.5B in total debt principal outstanding, with a weighted average annual effective rate of 4.89%. - **Share Repurchases:** $162.7M used for share repurchases in Q1 2025, with $0.9B remaining available under the share repurchase program.