Gartner Reports Fourth Quarter 2023 Financial Results
Contract Value $4.8 billion, +8% YoY FX Neutral
FOURTH QUARTER 2023 HIGHLIGHTS
-- Revenues: $1.6 billion, +5% as reported, +4% FX neutral.
-- Net income: $209 million, -19%; adjusted EBITDA: $386 million, -8% as
reported, -9% FX neutral.
-- Diluted EPS: $2.64, -18%; adjusted EPS: $3.04, -18%.
-- Operating cash flow: $224 million, +10%; free cash flow: $196 million,
+19%.
FULL YEAR 2023 HIGHLIGHTS
-- Revenues: $5.9 billion, +8% as reported and FX neutral.
-- Net income: $882 million, +9%; adjusted EBITDA: $1.5 billion, +1% as
reported, +2% FX neutral.
-- Diluted EPS: $11.08, +11%; adjusted EPS: $11.33, +1%.
-- Operating cash flow: $1.2 billion, +5%; free cash flow: $1.1 billion,
+6%.
-- Repurchased 1.8 million common shares for $0.6 billion; 1% reduction in
outstanding share count YoY.
STAMFORD, Conn.--(BUSINESS WIRE)--February 06, 2024--
Gartner, Inc. (NYSE: IT), today reported results for the fourth quarter of 2023 and provided its financial outlook for the full year 2024. Additional information regarding the Company’s results and 2024 financial outlook are provided in an earnings supplement available on the Company’s Investor Relations website at
Gene Hall, Gartner’s Chief Executive Officer, commented, “Gartner delivered another strong year, providing exceptional value for our clients, driving high single digit growth in contract value and generating more than $1 billion of free cash flow. Entering 2024, our associate team is the best we’ve ever had, positioning us for long-term, sustained, double-digit growth. We are introducing guidance which is achievable across a wide range of economic scenarios, with the opportunity for upside.”
CONFERENCE CALL INFORMATION
The Company will host a webcast call at 8:00 a.m. Eastern time on Tuesday, February 6, 2024 to discuss the Company’s financial results. Listeners can access the webcast live at To participate actively in the live call via dial-in, please register at Once registered, participants will receive a dial-in number and a unique PIN to access the call. A replay of the webcast will be available on the Company’s website for approximately 30 days following the call.
CONSOLIDATED RESULTS HIGHLIGHTS
(Unaudited; $ in
millions, except
per share
amounts) Three Months Ended
December 31, Inc/(Dec)
----------------------
2023 2022 Inc/(Dec) FX Neutral
------------ -------- ----------- ------------
GAAP Metrics:
Revenues $ 1,586 $ 1,505 5% 4%
Net income 209 257 (19)% na
Diluted EPS 2.64 3.21 (18)% na
Operating cash
flow 224 203 10% na
----------------- -------- ------- ------ ------------
Non-GAAP Metrics:
Adjusted EBITDA $ 386 $ 421 (8)% (9)%
Adjusted EPS 3.04 3.70 (18)% na
Free cash flow 196 166 19% na
------------------- ---- ---- --- ------
na=not available
CONTRACT VALUE HIGHLIGHTS
-- Global Technology Sales Contract Value (GTS CV): $3.7 billion, +6% YoY
FX Neutral
-- Global Business Sales Contract Value (GBS CV): $1.1 billion, +13% YoY
FX Neutral
SEGMENT RESULTS HIGHLIGHTS
Our segment results for the three months ended December 31, 2023 were as follows:
(Unaudited; $ in
millions)
Research Conferences Consulting
---------- --------------- --------------
Revenues $1,243 $ 214 $ 128
Inc/(Dec) 6% 14% (7)%
Inc/(Dec) - FX neutral 5% 12% (7)%
Gross contribution $ 921 $ 108 $ 35
Inc/(Dec) 6% 8% (32)%
Contribution margin 74% 50% 27%
------------------------- ----- ------ -----
Additional details regarding our segment results can be obtained in the earnings supplement and on our webcast call.
Certain financial metrics contained in this Press Release are considered non-GAAP financial measures. Definitions of these non-GAAP financial measures are included in this Press Release under “Non-GAAP Financial Measures” and the related reconciliations are under “Supplemental Information — Non-GAAP Reconciliations.” In this Press Release, some totals may not add due to rounding. The percentage changes are based on the unrounded whole number and recalculation based on millions may yield a different result.
ABOUT GARTNER
Gartner, Inc. (NYSE: IT) delivers actionable, objective insight to executives and their teams. Our expert guidance and tools enable faster, smarter decisions and stronger performance on an organization’s mission critical priorities.
FORWARD LOOKING STATEMENTS
Statements contained in this press release regarding the Company’s growth and prospects, projected financial results, long-term objectives, and all other statements in this release other than recitation of historical facts are forward-looking statements within the meaning of Section 27A of the Securities Exchange Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements involve known and unknown risks, estimates, uncertainties and other factors that may cause actual results to be materially different. Such forward-looking statements involve known and unknown risks, estimates, uncertainties and other factors that may cause actual results to be materially different. Such factors include, but are not limited to, the following: the impact of general economic conditions, including inflation (and related monetary policy by governments in response to inflation), on economic activity and our operations; changes in macroeconomic and market conditions and market volatility, including interest rates and the effect on the credit markets and access to capital; the impact of global economic and geopolitical conditions, including inflation, and recession; our ability to carry out our strategic initiatives and manage associated costs; our ability to recover potential claims under our event cancellation insurance; the timing of conferences and meetings, in particular our Gartner Symposium/Xpo series that normally occurs during the fourth quarter; our ability to achieve and effectively manage growth, including our ability to integrate our acquisitions and consummate and integrate future acquisitions; our ability to pay our debt obligations; our ability to maintain and expand our products and services; our ability to expand or retain our customer base; our ability to grow or sustain revenue from individual customers; our ability to attract and retain a professional staff of research analysts and consultants as well as experienced sales personnel upon whom we are dependent, especially in light of labor competition; our ability to achieve continued customer renewals and achieve new contract value, backlog and deferred revenue growth in light of competitive pressures; our ability to successfully compete with existing competitors and potential new competitors; our ability to enforce and protect our intellectual property rights; our ability to keep pace with technological developments in artificial intelligence; additional risks associated with international operations, including foreign currency fluctuations; the impact on our business resulting from changes in international conditions, including those resulting from the conflict in the Middle East, the war in Ukraine and current and future sanctions imposed by governments or other authorities; the impact of restructuring and other charges on our businesses and operations; cybersecurity incidents; risks associated with the creditworthiness, budget cuts, and shutdown of governments and agencies; our ability to meet ESG commitments; the impact of changes in tax policy (including global minimum tax legislation) and heightened scrutiny from various taxing authorities globally; changes to laws and regulations; and other risks and uncertainties described under “Risk Factors” in our most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, which can be found on Gartner’s website at and the SEC’s website at www.sec.gov. Forward-looking statements included herein speak only as of the date hereof and Gartner disclaims any obligation to revise or update such statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events or circumstances, except as required by applicable law.
NON-GAAP FINANCIAL MEASURES
Certain financial measures used in this Press Release are not defined by U.S. generally accepted accounting principles (“GAAP”) and as such are considered non-GAAP financial measures. We provide these measures to enhance the user’s overall understanding of the Company’s current financial performance and the Company’s prospects for the future. Investors are cautioned that these non-GAAP financial measures may not be defined in the same manner by other companies and, as a result, may not be comparable to other similarly titled measures used by other companies. Also, these non-GAAP financial measures should not be construed as alternatives, or superior, to other measures determined in accordance with GAAP. The non-GAAP financial measures used in this Press Release are defined below.