ISG's Tough Year Continues

Stamford, CT-based technology research and advisory firm Information Services Group has reported third quarter revenue down 15% to $61.3m, and adjusted EBITDA down a third to $7.1m.

ISG was founded in 2006-7 by former Nielsen / VNU man Michael P. Connors, and is headquartered in Stamford, CT, with around 1,600 employees working in more than twenty countries. Its services now include digital transformation and other change management, sourcing advisory, strategy and operations design, market intelligence, technology research and analysis.

The results closely mirror those from the previous quarter, when revenue fell 14% to $64.3m and adjusted EBITDA was also $7.1m. In the Americas, Q3 2024 revenue fell only 5%, to $40.1m, but declines were much steeper in Europe (down 27% to $16.2m) and Asia Pacific (down 32% to $4.9m).

A month ago the firm sold its robotic process automation (RPA) unit to digital transformation solutions company UST, for $27m in cash, but this is not yet reflected in reported figures.

Connors, who is the firm's Chairman and CEO, sees areas of encouragement: 'ISG closed the third quarter strong, achieving the top of our updated guidance, with strong operating cash flow in the quarter. As we look ahead to 2025, we see signs that client demand in the US is on the rise, including $5 billion of contract value now flowing through ISG Tango, our digital sourcing platform, up 25 percent sequentially from the second quarter'.

Web site: www.isg-one.com .

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