Gartner Reports First Quarter Research Revenue Rise

IT industry analyst Gartner has reported an 18% increase in first quarter revenue to $557.3m, up 21% excluding the negative impact of foreign exchange. Research revenue rose 16% to $440.3m, or 18% in constant currency terms.

In the Research division, at March 31, 2016, total contract value was $1.72 billion, an increase of 14% on a foreign exchange neutral basis and 9% on a reported basis compared to March 31, 2015. First quarter 2016 and 2015 client retention was 84% and 85%, respectively, while wallet retention was 105% and 106%, respectively. Elsewhere in the group, the Consultancy division reported Q1 revenue of $84.9m, an increase of 11% compared to first quarter 2015 and 12% excluding the foreign exchange impact; and the firm's Events arm reported revenue of $32.1m, compared to $13.3m in first quarter 2015, an increase of 141% on a reported basis and 143% excluding the foreign exchange impact.

Overall for the group, first quarter 2016 net income was $40.2m, up 42% over first quarter 2015; and normalized EBITDA was $103.3m, an increase of 28% over first quarter 2015 on a reported basis and 31% adjusted for foreign exchange impact.

CEO Gene Hall (pictured) comments: 'Gartner had a great start to 2016. We continued our trend of consistent, double-digit growth in contract value, revenue and EPS, with strong cash flow conversion. We have raised guidance following our first quarter performance and remain confident in our ability to deliver tremendous value to our clients and long-term growth in cash and earnings to our shareholders.'

Web site: www.gartner.com .