US technology market research firm Gartner has reported a 7% fall in first quarter profit to $20m (2008: $21.5m). Revenue from its research segment fell 2% on the stronger dollar, but at constant currency it was up 4% to $187.7m.
The Group’s total revenue dropped 6% to $273.5m (2008: $290.1m).
Client and wallet retention rates for first quarter 2009 were 80% and 90% respectively, versus 82% and 97% for first quarter 2008. Contract value in the research segment rose 2% to $760.7m in Q1, excluding the impact of foreign exchange.
In the consulting arm, revenue for the first quarter was down 4% to $70.3m, while gross contribution margin was 38%. Revenue in the Group’s events sector was down 18% to $15.5m.
CEO Gene Hall commented: ‘During first quarter 2009, we continued to grow our research revenue, and this coupled with tight cost controls, generated significantly increased earnings and higher cash flow despite the challenging global economic environment.’
Based on its first quarter 2009 results and current business trends, Gartner has reiterated its guidance for revenue and cash flow from operations for full year 2009. It is projecting a 9%-14% increase in revenue for the year.
Hall said he remains confident in the firm’s prospects for long-term double digit revenue and earnings growth, once ‘global economic activity returns to more normal levels’.
Web site: www.gartner.com