Robust Gartner Sees Profits Jump Despite Tough Climate

Tech consulting and research group Gartner has reported Q4 revenue of $1.11bn, down 9% in the quarter and down 3% in the full year 2020, but the firm's double figure profit growth (full year adjusted EBITDA +20% FX neutral, and Q4 + 10%) supports CEO Gene Hall's bullish appraisal.

For the fourth quarter, revenue from the group's Conferences division fell 57% to $93.2m - itself quite an achievement when other companies have seen their events income all but disappear - but excluding this division, reported revenue would have risen 3% as the Research division rose 4.9% to $925.6m and Consulting declined only 10% to $94m. Adjusted EBITDA was $245m, up 13% on a reported basis or 10% at constant currency.

The markets were pleased, with the share price rising strongly, while shareholders will be too, with EPS (adjusted) up 35% to $1.59; and the Board of Directors authorization further substantial share repurchasing.

For the full year, Gartner had revenues of $4.1bn, down 3% versus 2019, but adjusted EBITDA was up 20% (both reported and FX neutral) to $818m. Operating cash flow rose to $903m, and free cash flow almost doubled (+97%) to $819m.

Hall (pictured) said of the company's figures: 'Gartner delivered strong results in 2020 despite a challenging economic environment. Research resilience continued, we successfully pivoted our conferences to a virtual format, and effective cost management drove outstanding EBITDA and Free Cash Flow. We are well-positioned for 2021 and to drive both double digit top-line growth and margin expansion in the years beyond'. Total costs and expenses were down more than $130m in Q4, to $934.7m

The company is online at www.gartner.com .

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.