Q124 IT earnings

Revenue: First quarter revenue was $1.5 billion, up 5% year-over-year both as reported and FX neutral.
EBITDA: EBITDA was $382 million, modestly up from the first quarter of 2023.
Adjusted EPS: Adjusted EPS for Q1 was $2.93, up 2% compared with the previous year.
Free Cash Flow: Free cash flow was $166 million for the quarter.
Research Revenue: Grew 4% year-over-year as reported and on an FX-neutral basis. Subscription revenue grew 6% FX-neutral.
Consulting Revenue: First-quarter consulting revenues increased by 6% year-over-year to $135 million (7% on an FX-neutral basis).
Conferences Revenue: For the first quarter was $70 million, modestly ahead of expectations.

Research Revenue Guidance for 2024: At least $5.115 billion, FX-neutral growth of about 5%.
Conferences Revenue Guidance for 2024: At least $560 million, FX-neutral growth of about 11%.
Consulting Revenue Guidance for 2024: At least $525 million, growth of about 3% FX neutral.
Consolidated Revenue Guidance for 2024: At least $6.2 billion, FX-neutral growth of 5%.
EBITDA Guidance for 2024: At least $1.455 billion, an increase of $35 million from prior guidance before accounting for a stronger dollar.
Adjusted EPS Guidance for 2024: At least $10.90.
Free Cash Flow Guidance for 2024: At least $1.08 billion, up $15 million from prior guidance.
Capital Expenditure and Expenses: Reflecting prudent investments for future growth with notable seasonality driven by the conferences calendar and merit increases.

Contract value grew high single digits in Q1, with enterprise function leaders growing at 10%.
Tech vendor clients continue to face challenges, including layoffs and shifts in venture capital investments.
Interest in artificial intelligence across business functions remains high, with Gartner providing guidance on cybersecurity, supply chain optimization, data analytics, and more.
Global macro uncertainty continues, alongside a dynamic tech vendor market, though Gartner remains resilient in a complex environment.
Gartner expects contract value growth to accelerate as the year progresses, with a significant addressable market opportunity allowing for long-term sustained double-digit revenue growth.

Gene Hall: “Gartner remains resilient in a complex environment. In Q1, contract value grew high single digits. Natural results for the quarter were ahead of expectations.”
Gene Hall: “Our insights often make the difference between success and failure for the leaders we work with and the enterprises they serve. Gartner guides the leaders who shape the world.”
Craig Safian: “First quarter financial results were better than planned with particular strength in profitability and free cash flow.”
Craig Safian: “We have a lot of capacity for share repurchases and remain eager to buy back stock opportunistically.”
Gene Hall: “Looking ahead, we updated our guidance for the stronger dollar and increased revenue, EBITDA, EPS, and free cash flow on a FX-neutral basis.”