Research and advisory firm Information Services Group (ISG) has reported a 25% increase (24% on a constant currency basis) in full-year 2017 revenue to $269.6m, up from $216.5m in 2016. The growth follows major acquisitions, but profits also jumped by more than two thirds.
Founded in 2006 and based in Stamford, CT, ISG now employs more than 1,300 professionals in more than 20 countries. Since launch, the group has acquired outsourcing data and advisory firm TPI; business and IT benchmarking specialist Compass; public sector provider STA Consulting; IT trends analyst Saugatuck Technology; subscription-based research, advisory, benchmarking firm Experton Group AG; and US-based outsourcing advisory firm Alsbridge Holdings.
For the three months ended December 31st 2017, revenue rose 23% (20% in constant currency terms) to $66.6m. Operating income was $4.0m compared with a $8.5m loss the previous year, and adjusted EBITDA was $8.9m - up three times from the prior year period. For the full year, adjusted EBITDA was up 69% to $33.5m, while operating income was $9.2m, compared to a loss of $2.5m a year earlier.
Chairman and CEO Michael Connors (pictured) comments: 'We delivered a record year with strong growth in the fourth quarter and made the significant change in our 2017 financials that we planned. With our recurring revenues also continuing to expand, growing 22% for the year, we are creating a more profitable business mix that has helped increase our adjusted EBITDA margins (adjusted EBITDA divided by GAAP revenues) by 300 basis points for the year. ISG continues to grow both in importance and value with our clients, and that gives us great confidence in our growth prospects for 2018 and beyond'.
Connors says ISG is targeting revenues of between $285m and $292m for 2018, and adjusted EBITDA of between $35m and $37m.
Web site: www.isg-one.com .
All articles 2006-19 written and edited by Mel Crowther and/or Nick Thomas.