Gartner Reports Q3 Loss after CEB Buy

Technology research and advisory company Gartner has reported Research revenue of $653.4m for the third quarter of 2017, a rise of 38% at constant currencies - reflecting its acquisition of CEB. For the group, Gartner reported a Q3 loss of $48.2m, compared with a profit a year earlier.

Gartner's latest results include those from talent management insights firm CEB, which it acquired earlier in the year. For Q3, the group's Research arm saw contract value rise 14% on a reported basis (15% on a constant currency basis). The Research segment now includes CEB's core subscription-based best practice and decision support research activities.

During the quarter, Consulting revenue was $72.1m, compared with £73.7m in Q3 2016; Events revenue was $45.0m, compared with $33.5m; and the new segment - Talent Assessment & Other, resulting from the CEB acquisition - pulled in $57.6m. However, Gartner has confirmed that it is considering a range of strategic options, which may include a sale of the Talent Assessment business.

Overall for the group, third quarter revenue rose 44% to $828.1m, or 43% on a foreign exchange neutral basis. Adjusted revenue was $891.7m; net loss was $48.2m; and operating loss was $24.3m. Adjusted EBITDA was $149.0m in third quarter 2017, a 64% increase over the third quarter of 2016. For the nine months ended September 30th, total revenue was c.$2.3 billion, an increase of 32% on both a reported and foreign exchange neutral basis. CEO Gene Hall (pictured) commented: 'Our business continues to perform extraordinarily well. Our traditional Gartner business again achieved double-digit contract value growth in every geography, across every client size and in virtually every industry. We've successfully integrated CEB's talented associates 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'.

Web site: www.gartner.com .

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.