GARTNER, INC. 2024 ANNUAL REPORT ON FORM 10-K

Press release·03/02/2025 17:38:31

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Gartner, Inc. filed its annual report on Form 10-K for the fiscal year ended December 31, 2024. The company reported total revenue of $4.3 billion, a 12% increase from the prior year. Net income was $444 million, or $5.83 per diluted share, compared to $394 million, or $5.15 per diluted share, in the prior year. The company’s gross margin was 64.1%, and its operating margin was 18.5%. Gartner’s cash and cash equivalents totaled $1.4 billion, and its debt was $1.1 billion. The company declared a quarterly dividend of $0.52 per share, payable on March 31, 2025.

Gartner Delivers Strong Financial Performance in 2024

Gartner, Inc., a leading global research and advisory firm, reported impressive financial results for the year ended December 31, 2024. The company’s total revenues grew to $6.3 billion, an increase of 6% compared to 2023. Net income also increased significantly, rising to $1.3 billion from $882.5 million the prior year. Diluted earnings per share was $16.00 in 2024, up from $11.08 in 2023.

Segment Performance

Gartner operates through three main business segments - Research, Conferences, and Consulting.

Research The Research segment, Gartner’s largest business, saw revenues increase by 5% to $5.1 billion in 2024. The Research gross contribution margin remained steady at 74% in both 2024 and 2023. Contract value, a key metric for the Research business, grew 8% on a foreign currency neutral basis to $5.3 billion at the end of 2024. This growth was driven by strong performance across all industry sectors, with the fastest growth in manufacturing, healthcare, and the public sector.

Conferences Conferences revenues increased 15% to $583.2 million in 2024. Gartner held 51 in-person conferences during the year, up from 47 in 2023. The Conferences gross contribution margin was 48% in 2024 compared to 50% in 2023, as conference-related expenses increased.

Consulting Consulting revenues grew 9% to $558.5 million in 2024. The Consulting gross contribution margin improved to 36% from 35% the prior year. Consulting backlog, which represents future revenue, increased 17% to $191.5 million at the end of 2024.

Profitability and Cash Flow

Gartner’s operating income declined 7% to $1.16 billion in 2024, primarily due to the gain on the sale of a divested operation recognized in 2023, as well as increases in costs and expenses. However, the company’s net income increased 42% to $1.3 billion, benefiting from a $300 million gain on event cancellation insurance claims and a lower effective tax rate.

Cash provided by operating activities was $1.5 billion in 2024, up from $1.2 billion in 2023. This increase was mainly due to the insurance proceeds and reduced net cash interest expense, as well as higher operating income excluding the 2023 divestment gain.

As of December 31, 2024, Gartner had $1.9 billion in cash and cash equivalents and $0.7 billion in available borrowing capacity on its revolving credit facility. The company used $0.7 billion of cash during the year to repurchase 1.6 million shares of its common stock.

Key Business Metrics

Gartner tracks several key metrics to measure the performance and health of its business:

Metric	2024	2023	Change
Research Contract Value	$5.3 billion	$4.9 billion	8% increase
Global Technology Sales Contract Value	$4.0 billion	$3.8 billion	7% increase
Global Business Sales Contract Value	$1.2 billion	$1.1 billion	12% increase
Global Technology Sales Client Retention	84%	83%	1 point increase
Global Technology Sales Wallet Retention	102%	101%	1 point increase
Global Business Sales Client Retention	87%	87%	No change
Global Business Sales Wallet Retention	106%	107%	1 point decrease
Number of Destination Conferences	51	47	4 more conferences
Number of Destination Conference Attendees	86,625	75,569	15% increase
Consulting Backlog	$191.5 million	$163.0 million	17% increase
Consultant Utilization Rate	65%	65%	No change

These metrics demonstrate Gartner’s ability to grow its core Research business, attract and retain clients, and expand its Conferences and Consulting segments. The strong contract value growth, high client and wallet retention rates, and increasing conference attendance all point to the company’s competitive strengths and the value it provides to customers.

Outlook and Risks

Looking ahead, Gartner appears well-positioned for continued success. The company’s focus on creating actionable insights, delivering innovative products, and providing world-class client service have been key drivers of its performance. Additionally, Gartner’s subscription-based business model in Research, which generates strong recurring revenue and cash flow, is a significant competitive advantage.

However, the company does face some risks and uncertainties that could impact future results. These include general economic conditions, such as the potential impact of inflation and recession, as well as global economic and geopolitical events. Gartner also relies heavily on its ability to attract and retain talented research analysts, consultants, and sales personnel, which could be challenging in a competitive labor market.

The company’s forward-looking statements also caution that actual results could differ materially from expectations due to a variety of factors, including changes in technology, evolving AI regulations, cybersecurity incidents, and the potential impact of government budget cuts and shutdowns.

Overall, Gartner delivered impressive financial performance in 2024, demonstrating the strength of its business model and competitive position. By continuing to execute on its strategic priorities, the company appears well-positioned to navigate the challenges ahead and drive long-term growth and shareholder value.