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IT NYSE· Gartner, Inc
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IT NYSE· Gartner, Inc
Earnings report Q4 2023

Gartner Reports Strong IT Revenue Growth in Latest Quarter

Segments of revenue

In the latest quarter, Gartner's IT segment performed well, contributing significantly to the company's overall revenue growth. IT revenues reached $4.9 billion, representing a 6% increase compared to the same quarter in the previous year. This growth was observed on both a reported basis and after excluding the impact of foreign currency fluctuations.

Strengths

Gartner's strong performance in the IT segment can be attributed to its focus on delivering actionable insights and innovative product offerings to executives and their teams across various industries. The company's research products, which make up approximately 92% of the segment's revenue, have been in high demand, driving subscription contract revenues. Gartner's ability to provide objective insights and guidance based on a combination of practitioner-sourced and data-driven research has helped clients address their mission-critical priorities effectively.

Challenges

While Gartner's IT segment experienced revenue growth, it is important to note that the increase of 6% was relatively modest compared to previous quarters. This suggests potential challenges in maintaining a higher growth rate in a competitive market. Additionally, the company may face challenges in sustaining its subscription contract revenues and ensuring client engagement and retention in the long term.

Noteworthy

Gartner's IT segment maintained a consistent gross contribution margin of 74% in both the latest quarter and the previous year. This indicates the company's ability to effectively manage costs associated with delivering research products and services. Furthermore, Gartner's management authorized incremental share repurchases of up to an additional $500.0 million of the company's common stock, demonstrating confidence in its financial position.

Summary

Gartner's IT segment demonstrated solid revenue growth in the latest quarter, contributing to the company's overall positive financial performance. The demand for Gartner's research products, driven by its ability to provide actionable insights, has been a key strength. However, the company may face challenges in sustaining higher growth rates and ensuring long-term client engagement and retention. Overall, Gartner's focus on delivering innovative and differentiated offerings positions it well in the competitive IT market.

Source documents

Form 10-K  filed on Feb 15, 2024
120 pages scanned

Reference data

Company financials Q4 revenue 1.59B
Analyst estimates Q4 EPS beat by 7.51%
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