Gartner (IT)

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	== Company Overview ==		== Company Overview ==
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-	Gartner's recent focus on accelerating its research business growth has been largely successful. In 2007, the company attained total revenue growth of 12%, earnings per share growth of 36%, and a 40% increase in cash flow from operations. The company has continued its share repurchasing trend with 8.4 million shares repurchased in 2007, which brings the total number of shares repurchased since 2005 to 24.1 million<ref>[http://www.secinfo.com/dsvr4.t26p.htm Gartner (NYSE: IT) Annual Report 2007 Page 14]</ref>.
	=== Business and Financial Metrics ===		=== Business and Financial Metrics ===
-	[[Image:GartnerRevGeo2.png|thumb|650px|center|<ref>[http://www.secinfo.com/dsvr4.t26p.htm Gartner (NYSE: IT) Annual Report 2007 Page]</ref>]]	+	Gartner's recent focus on accelerating its research business growth has been largely successful. In 2007, the company attained total revenue growth of 12%, earnings per share growth of 36%, and a 40% increase in cash flow from operations. The company has continued its share repurchasing trend with 8.4 million shares repurchased in 2007, which brings the total number of shares repurchased since 2005 to 24.1 million<ref>[http://www.secinfo.com/dsvr4.t26p.htm Gartner (NYSE: IT) Annual Report 2007 Page 14]</ref>.
-	[[Image:GartnerRevSeg.png|thumb|650px|center|<ref>[http://www.secinfo.com/dsvr4.t26p.htm Gartner (NYSE: IT) Annual Report 2007 Page]</ref>]]	+
		+	[[Image:GartnerRevGeo2.png|thumb|650px|right|<ref>[http://www.secinfo.com/dsvr4.t26p.htm Gartner (NYSE: IT) Annual Report 2007 Page]</ref>]]
		+	[[Image:GartnerRevSeg.png|thumb|650px|right|<ref>[http://www.secinfo.com/dsvr4.t26p.htm Gartner (NYSE: IT) Annual Report 2007 Page]</ref>]]
	=== Business Segments ===		=== Business Segments ===
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	====Consulting====		====Consulting====
-	====Events====	+	Consulting revenue for 2007 reached $325.0 million, which was an of 6% or $19.8 million. Gartner actually reduced its billable account by 9%, largely due to an exit from consulting in Asia. A combination of both optimized contracts and better utilization rates drove the segment's revenue growth. Average annualized revenue per billable headcount was up 5%, and consultant utilization rates was 69% in 2007 as compared to 64% in 2006. Consulting backlog, which represents future revenues to be recognized from in-process contracts, increased 11% to $121.4 million in 2007.
		+	====Events====
		+	Events revenue in 2007 reached $180.8 million, which represents a 7% or $11.4 million increase compared to 2006. Gartner Events increased the number of events, attendee volume, and tickets prices in 2007.

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Revision as of 20:01, August 17, 2008

Gartner Inc. (NYSE: IT), one of the world's most trusted IT research firms, services 10,000 client organizations spanning 75 countries including 400 of the Fortune 500. Gartner supports its clients with three products -- Research, Consulting, and Events -- covering topics spanning technology, hardware, software, communications, and related information technology (IT) industries. The majority of Gartner's revenues derive from its research products, which accounted for 57% of the company's revenue in 2007 ^[1]. Gartner's services are targeted at chief information officers (CIOs) and other senior IT business executives as well as anyone with a vested interest in the IT industry such as technology investment professionals.

Ever since senior leadership changes in 2004, Gartner has focused on improving its research business with better product differentiation, a larger and enhanced salesforce, an increase in product pricing, and better client services. These efforts helped the company attain 18% and 9% growth in research revenue in 2007 and 2006, respectively ^[2].

Gartner's continued focus on its research business is important for several reasons. Both its consulting and events businesses utilize and leverage the intellectual capital generated by Gartner research. Research products can be created once and distributed widely, which offers . Gartner's research will also help minimize the cyclicality of its consulting and events businesses. Consulting and events operate on one-time contracts that are subject to the strength of the economy and IT industry whereas Gartner's research contracts are typically multi-year and represent a small fraction of its clients' IT spending.

Company Overview

Business and Financial Metrics

Gartner's recent focus on accelerating its research business growth has been largely successful. In 2007, the company attained total revenue growth of 12%, earnings per share growth of 36%, and a 40% increase in cash flow from operations. The company has continued its share repurchasing trend with 8.4 million shares repurchased in 2007, which brings the total number of shares repurchased since 2005 to 24.1 million^[3].

Business Segments

Gartner has three main product offerings: Research, Consulting, and Events. Gartner's main product is Research while Consulting and Events provide additional entry points and synergies for their clients. The company is currently focused on expanding business volume with is most valuable clients.

Research

Gartner Research provides analysis to help CIOs and other IT professionals make strategic IT purchase, implementation, and investment decisions. Research analysis is distributed via published reports and briefings, access to analysts, as well as peer networking and membership services. For examples of the various topics covered by Gartner Research, see the following articles:

• Blades Server Analysis
• iPhone for Business Review
• Cloud Computing Review

In 2007, Research revenue reached $673.3 million, which was a 18% or $102.1 million increase from 2006. Contract value, which represents the value attributable to all subscription-related research products, also increased 18% to $725.5 million in 2007, up from $640.3 for 2006. The research client retention rate for 2007 was 82% while wallet retention reached 101%.

Consulting

Consulting revenue for 2007 reached $325.0 million, which was an of 6% or $19.8 million. Gartner actually reduced its billable account by 9%, largely due to an exit from consulting in Asia. A combination of both optimized contracts and better utilization rates drove the segment's revenue growth. Average annualized revenue per billable headcount was up 5%, and consultant utilization rates was 69% in 2007 as compared to 64% in 2006. Consulting backlog, which represents future revenues to be recognized from in-process contracts, increased 11% to $121.4 million in 2007.

Events

Events revenue in 2007 reached $180.8 million, which represents a 7% or $11.4 million increase compared to 2006. Gartner Events increased the number of events, attendee volume, and tickets prices in 2007.

Key Trends and Forces

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References

1. ↑ Gartner (NYSE: IT) Annual Report 2007 Page 16
2. ↑ Gartner (NYSE: IT) Annual Report 2007 Page
3. ↑ Gartner (NYSE: IT) Annual Report 2007 Page 14
4. ↑ Gartner (NYSE: IT) Annual Report 2007 Page
5. ↑ Gartner (NYSE: IT) Annual Report 2007 Page

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