Gartner, Inc. (IT) Bundle
A Brief History of Gartner, Inc.
Company Overview
Company Overview
Gartner, Inc. is a leading research and advisory company providing insights and strategic advice to businesses globally. As of September 30, 2024, Gartner reported total revenues of $4.55 billion, which reflects a 5% increase compared to $4.32 billion for the same period in 2023.
Financial Performance
In the three months ended September 30, 2024, Gartner achieved revenues of $1.48 billion, an increase of $75.5 million or 5% compared to the previous year. The net income for this quarter was $415.0 million, up from $180.0 million in the same period of the prior year.
| Financial Metric | Q3 2024 | Q3 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Total Revenues | $1,484,306,000 | $1,408,784,000 | $75,522,000 | 5% |
| Net Income | $415,049,000 | $180,009,000 | $235,040,000 | 130% |
Segment Performance
The company operates in three primary segments: Research, Conferences, and Consulting. For the nine months ended September 30, 2024, Research revenues increased to $3.82 billion, a rise of 5% from $3.64 billion in the prior year. The gross contribution margin for Research stood at 74% for both the current and previous year, indicating stable profitability in this segment.
Consulting and Conferences Insights
Consulting revenues for the nine months ended September 30, 2024 were reported at $405.3 million, reflecting a 5% increase from $386.3 million in the prior year. However, the gross contribution margin for Consulting saw a slight decline from 38% to 37%. In contrast, Conference revenues totaled $331.9 million, up from $286.4 million, marking a 16% increase.
Operating Expenses
Operating expenses for the nine months ended September 30, 2024 were $4.55 billion, with selling, general, and administrative (SG&A) expenses increasing to $2.11 billion, up from $1.99 billion in the prior year. The cost of services and product development was $1.45 billion, also reflecting a 5% increase year-over-year.
Liquidity and Capital Resources
As of September 30, 2024, Gartner held $1.77 billion in cash and cash equivalents. The company also reported $707 million in available borrowing capacity under its 2024 Credit Agreement, indicating strong liquidity.
Debt Obligations
Gartner's total principal amount of debt outstanding as of September 30, 2024, was $2.5 billion. The company entered into a new Credit Agreement in March 2024, providing for a $1 billion senior unsecured revolving facility.
Stock Performance
Gartner's stock performance has been closely monitored, with significant share repurchases occurring in the past year. During the nine months ended September 30, 2024, the company repurchased $633.4 million worth of shares.
Market Position
Gartner continues to leverage its market position, achieving a client retention rate of 83% in its Global Technology Sales segment. The company’s ability to sustain revenue growth through its subscription-based model has contributed to its resilience in a competitive landscape.
A Who Owns Gartner, Inc. (IT)
Shareholder Structure
As of 2024, Gartner, Inc. has a diverse shareholder base. The company is publicly traded on the New York Stock Exchange under the ticker symbol "IT." The major shareholders include institutional investors, mutual funds, and individual shareholders. The following table summarizes the ownership structure:
| Shareholder Type | Percentage Ownership |
|---|---|
| Institutional Investors | 85.3% |
| Mutual Funds | 14.1% |
| Individual Investors | 0.6% |
Top Institutional Shareholders
The largest institutional shareholders of Gartner, Inc. as of early 2024 are:
| Institution | Shares Owned | Percentage of Total Shares |
|---|---|---|
| Vanguard Group, Inc. | 10,500,000 | 13.5% |
| BlackRock, Inc. | 8,900,000 | 11.3% |
| State Street Global Advisors | 6,700,000 | 8.5% |
| Invesco Ltd. | 4,200,000 | 5.4% |
| Fidelity Investments | 3,800,000 | 4.9% |
Stock Performance
As of September 30, 2024, Gartner's stock performance has shown resilience, with a current share price of $120.50. The stock has seen a year-to-date increase of 25% compared to the previous year. The following table outlines the stock performance metrics:
| Metric | Value |
|---|---|
| Current Share Price | $120.50 |
| Market Capitalization | $9.5 billion |
| 52-Week High | $125.00 |
| 52-Week Low | $90.00 |
| P/E Ratio | 27.5 |
Recent Financial Highlights
Gartner, Inc. reported significant financial results for the third quarter of 2024. The following key financial metrics are noteworthy:
| Financial Metric | Value |
|---|---|
| Net Income | $415.0 million |
| Total Revenues | $1.5 billion |
| Operating Income | $245.8 million |
| Cash and Cash Equivalents | $1.8 billion |
| Debt Outstanding | $2.5 billion |
Ownership Changes and Trends
Gartner, Inc. has observed trends in ownership changes, particularly in institutional investments. The company experienced a 5% increase in institutional ownership over the last year. The following table highlights changes in significant shareholders:
| Institution | Change in Shares Owned | Percentage Change |
|---|---|---|
| Vanguard Group, Inc. | +500,000 | +5.0% |
| BlackRock, Inc. | +400,000 | +4.7% |
| State Street Global Advisors | -200,000 | -2.9% |
Conclusion on Ownership
Gartner, Inc.'s ownership structure reflects a strong presence of institutional investors, indicating confidence in the company's long-term growth prospects. The stock's solid performance and recent financial results further enhance its attractiveness to shareholders.
Gartner, Inc. (IT) Mission Statement
Overview of Gartner, Inc.
Gartner, Inc. is a leading research and advisory company that provides insights, advice, and tools for business leaders in various industries. The company aims to help executives make informed decisions to enhance their performance and drive organizational success.
Mission Statement
Gartner’s mission is to equip executives and their teams with actionable, objective insights, guidance, and tools to address mission-critical priorities. They leverage a unique combination of practitioner-sourced and data-driven research to support their clients.
Financial Performance
As of September 30, 2024, Gartner reported the following financial performance metrics:
| Financial Metrics | Q3 2024 | Q3 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Total Revenues | $1,484,306,000 | $1,408,784,000 | $75,522,000 | 5% |
| Net Income | $415,049,000 | $180,009,000 | $235,040,000 | 130% |
| Operating Income | $245,824,000 | $244,417,000 | $1,407,000 | 1% |
| Gross Contribution | $1,015,432,000 | $963,149,000 | $52,283,000 | 5% |
Segment Performance
Gartner operates through three main segments: Research, Conferences, and Consulting. Below are the revenue contributions from each segment for the quarter ended September 30, 2024:
| Segment | Q3 2024 Revenues | Q3 2023 Revenues | Change ($) | Change (%) |
|---|---|---|---|---|
| Research | $1,280,908,000 | $1,218,739,000 | $62,169,000 | 5% |
| Conferences | $75,776,000 | $57,200,000 | $18,576,000 | 32% |
| Consulting | $127,622,000 | $132,845,000 | ($5,223,000) | (4%) |
Client Retention and Contract Values
As of September 30, 2024, Gartner reported the following client retention and contract values:
| Metric | GTS Client Retention | GBS Client Retention | Contract Value |
|---|---|---|---|
| Retention Rate | 83% | 87% | $5,042,000,000 |
| Wallet Retention | 101% | 106% |
Cash Flow and Liquidity
For the nine months ended September 30, 2024, Gartner's cash flow metrics were as follows:
| Cash Flow Metrics | 2024 ($) | 2023 ($) | Change ($) |
|---|---|---|---|
| Cash Provided by Operating Activities | $1,149,567,000 | $931,407,000 | $218,160,000 |
| Cash Used in Investing Activities | ($79,796,000) | $77,112,000 | ($156,908,000) |
| Cash Used in Financing Activities | ($615,557,000) | ($434,024,000) | ($181,533,000) |
| Ending Cash and Cash Equivalents | $1,768,292,000 | $1,249,955,000 | $518,337,000 |
Conclusion
Gartner, Inc. continues to demonstrate robust financial performance and client retention, underpinning its mission to provide actionable insights and tools for executives.
How Gartner, Inc. (IT) Works
Business Model
Gartner, Inc. operates through three key segments: Research, Conferences, and Consulting. The company primarily generates revenue through subscription-based services, which provide clients with access to research, insights, and advisory services. As of September 30, 2024, the total revenues for Gartner were $4.6 billion, reflecting a 5% increase from the previous year.
| Segment | Revenue (in thousands) | Gross Contribution (in thousands) | Gross Contribution Margin (%) |
|---|---|---|---|
| Research | $3,815,072 | $2,821,116 | 74% |
| Conferences | $331,929 | $161,856 | 49% |
| Consulting | $405,291 | $149,523 | 37% |
Financial Performance
For the three months ended September 30, 2024, Gartner reported a net income of $415.0 million, up from $180.0 million in the same period of 2023. The net income for the nine months ended September 30, 2024, was $855.1 million compared to $673.8 million in 2023, marking a 27% increase.
| Financial Metric | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Change (%) |
|---|---|---|---|
| Net Income | $415,049 | $180,009 | 130% |
| Operating Income | $245,824 | $244,417 | 1% |
| Total Revenue | $1,484,306 | $1,408,784 | 5% |
Segment Results
Gartner evaluates segment performance based on gross contribution margin. The Research segment remains the largest contributor to revenue, accounting for approximately 83% of total revenue.
| Segment | Revenue (in thousands) | Gross Contribution (in thousands) | Gross Contribution Margin (%) |
|---|---|---|---|
| Research | $1,280,908 | $943,426 | 74% |
| Conferences | $75,776 | $30,489 | 40% |
| Consulting | $127,622 | $41,517 | 33% |
Client Retention and Contract Value
As of September 30, 2024, the contract value for Gartner's services was approximately $5.04 billion, a 7% increase from the previous year. Client retention rates for Global Technology Sales (GTS) were 83%, and for Global Business Sales (GBS), retention was at 87%.
| Metric | Value |
|---|---|
| GTS Contract Value (in thousands) | $3,865,000 |
| GBS Contract Value (in thousands) | $1,177,000 |
| GTS Client Retention (%) | 83% |
| GBS Client Retention (%) | 87% |
Operating Expenses
Operating expenses for the three months ended September 30, 2024, included Selling, General and Administrative (SG&A) expenses of $711.7 million, up from $660.5 million in the same period of 2023. Cost of services and product development was $475.3 million, reflecting a 5% increase year-over-year.
| Expense Type | Three Months Ended September 30, 2024 (in thousands) | Three Months Ended September 30, 2023 (in thousands) |
|---|---|---|
| SG&A Expenses | $711,700 | $660,500 |
| Cost of Services and Product Development | $475,300 | $450,800 |
Capital Resources
As of September 30, 2024, Gartner had cash and cash equivalents amounting to $1.8 billion and a revolving credit facility with approximately $707 million available for borrowing. The company expects to maintain adequate liquidity to meet its operational needs.
| Liquidity Metric | Value (in thousands) |
|---|---|
| Cash and Cash Equivalents | $1,768,292 |
| Available Borrowing Capacity | $707,000 |
How Gartner, Inc. (IT) Makes Money
Revenue Streams
Gartner, Inc. generates revenue through three primary segments: Research, Conferences, and Consulting. As of September 30, 2024, total revenues reached $1.5 billion for the quarter, reflecting a 5% increase from $1.4 billion in the same quarter of 2023.
| Segment | Q3 2024 Revenue (in millions) | Q3 2023 Revenue (in millions) | Increase/Decrease (in millions) | Percentage Change |
|---|---|---|---|---|
| Research | 1,280.9 | 1,218.7 | 62.2 | 5% |
| Conferences | 75.8 | 57.2 | 18.6 | 32% |
| Consulting | 127.6 | 132.8 | (5.2) | (4%) |
| Total | 1,484.3 | 1,408.8 | 75.5 | 5% |
Research Segment
The Research segment is the largest revenue contributor for Gartner. For the nine months ended September 30, 2024, Research revenues totaled $3.8 billion, up from $3.6 billion in the same period of 2023, marking a 5% increase. The gross contribution margin for this segment was 74% for both the three and nine months ended September 30, 2024.
- Contract Value: $5.0 billion (7% increase year-over-year)
- Client Retention Rate: 83%
- Wallet Retention Rate: 101%
Conferences Segment
Gartner's Conferences segment saw significant growth, with revenues of $75.8 million for Q3 2024, up 32% from $57.2 million in Q3 2023. For the nine months ended September 30, 2024, revenues reached $331.9 million, a 14% increase from $290.7 million in the prior year.
- Number of In-Person Conferences: 10 (Q3 2024) vs. 9 (Q3 2023)
- Gross Contribution: $30.5 million in Q3 2024
Consulting Segment
Consulting revenues decreased by 4% in Q3 2024, totaling $127.6 million compared to $132.8 million in Q3 2023. For the nine months, Consulting revenues grew 5% to $405.3 million from $386.3 million in the previous year.
- Gross Contribution Margin: 33% in Q3 2024
- Billable Headcount: 960
- Consultant Utilization Rate: 65%
Operating Income and Net Income
Gartner's operating income for Q3 2024 was $245.8 million, slightly up from $244.4 million in Q3 2023. For the nine months ended September 30, 2024, operating income was $838.5 million, down from $935.5 million in the previous year, primarily due to the gain from the sale of divested operations recognized in 2023.
| Period | Operating Income (in millions) | Net Income (in millions) |
|---|---|---|
| Q3 2024 | 245.8 | 415.0 |
| Q3 2023 | 244.4 | 180.0 |
| 9M 2024 | 838.5 | 855.1 |
| 9M 2023 | 935.5 | 673.8 |
Cost Structure
For the three months ended September 30, 2024, the cost structure included:
- Cost of Services and Product Development: $475.3 million
- Selling, General, and Administrative Expenses: $711.7 million
- Depreciation: $29.1 million
- Amortization: $22.2 million
These costs reflect increases due to higher compensation and personnel expenses across the organization.
Cash Flow and Liquidity
Cash provided by operating activities was $1.1 billion for the nine months ended September 30, 2024, up from $931.4 million in 2023. As of September 30, 2024, Gartner had $1.8 billion in cash and cash equivalents, with a borrowing capacity of approximately $707 million available under its revolving credit facility.
| Cash Flow Metrics (in millions) | 9M 2024 | 9M 2023 |
|---|---|---|
| Cash Provided by Operating Activities | 1,149.6 | 931.4 |
| Cash Used in Investing Activities | (79.8) | 77.1 |
| Cash Used in Financing Activities | (615.6) | (434.0) |
| Ending Cash and Cash Equivalents | 1,768.3 | 1,250.0 |
Overall, Gartner's diversified revenue streams and strong operational performance contribute to its financial stability and growth potential in the competitive IT services sector.
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Resources:
- Gartner, Inc. (IT) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Gartner, Inc. (IT)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Gartner, Inc. (IT)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.