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This presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is for the sole use of the intended Gartner audience or other authorized recipients. This presentation may contain information that is confidential, proprietary or otherwise legally protected, and it may not be further copied, distributed or publicly displayed without the express written permission of Gartner, Inc. or its affiliates. 2012 Gartner, Inc. and/or its affiliates. All rights reserved.
Agenda
Business Overview Research Events Consulting Gene Hall Peter Sondergaard Alwyn Dawkins Per Anders Waern
Break
Sales Financial Overview Summary / Q&A David Godfrey Chris Lafond Gene Hall and Chris Lafond
70%
20%
70%
10%
Gartner Consulting Business
20%
70%
8 4 5 18 12
2012
Front-line IT Professionals
$1.1 Billion**
* technology, professional services, telecommunications and investors ** 2011 ending contract value
Source: Gartner internal estimates.
World-Class Service
Today
V7
V1
V2
V3
2005
Extraordinary Research Insight Strong Sales Capability High-Value, Differentiated Offerings
Today
World-Class Service
Global
Nationality
World-Class Talent
Source of Leadership
External 38%
12 years 6 years
Non-US US Promotion 46%
Acquisition 15%
World-Class Service
Contract Value
1116 978 834 753 593 509 $m 640 784
2004
2005
2006
2007
2008
2009
2010
2011
Normalized EBITDA
315335 279 214 230 191
190
150 $m 103 100
17.9%
14.5%
11.8% EBITDA% 10.4%
2004
2005
2006
2007
2008
2009
2010
2011 2012E
Restated to exclude results of Vision Events. See attached Glossary for a discussion of normalized EBITDA.
$0.85
-$0.05
2004 2005 2006 2007 2008 2009 2010 2011 2012E
Contract Value
$m
Normalized EBITDA
$1.63$1.79
$0.98
$0.65
$0.85
$0.96
$0.47 $0.09
-$0.05
5,100 CIOs
Winning Strategy
Peter Sondergaard
Senior Vice President
Research
This presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is for the sole use of the intended Gartner audience or other authorized recipients. This presentation may contain information that is confidential, proprietary or otherwise legally protected, and it may not be further copied, distributed or publicly displayed without the express written permission of Gartner, Inc. or its affiliates. 2012 Gartner, Inc. and/or its affiliates. All rights reserved.
Gartner Research
NEXUS OF FORCES
150
100
50
2013
2015
NEXUS OF FORCES
Whats Installed
Billions 6 5 4 3 2 1 0 2011
2015
80%
Mobile OS
PC OS
2012 2013 2014 2015
60%
40%
20%
0% 2011
NEXUS OF FORCES
Gartner Research
Gartner Events Business
10%
Gartner Consulting Business
20%
70%
Packaging
485
135
years of experience at
Decision Makers
in 12,400 organizations
Academic Institutions
Investors
Quality
290,000
recorded interactions
5.5 million
document page views
5,500 IT Cost
and Price benchmarks
42
Magic Quadrants
Hype Cycles Vendor Ratings
Interactions
Scalable structure and process to handle 290,000 interactions Phone access to analysts Face-to-face interactions
Gartner Research
70%
Gartner Research
Vast Untapped Market Opportunity
$47 Billion Other* Supply Chain
8 4 5 18 Gartner for IT Executives Equips CIOs with the role-specific tools and knowledge they need to deliver exceptional business results for their organizations
CIOs
IT Functional Leaders
Front-line IT Professionals
12
2012
$1.1 Billion**
Source: Gartner internal estimates * technology, professional services, telecommunications and investors
Gartner Research
Vast Untapped Market Opportunity
$47 Billion Other* Supply Chain
8 4 5 Gartner for IT Leaders 18 Provides IT leaders with just-in-time, rolespecific insight and advice from Gartner analysts to drive success on critical initiatives and IT purchases
$1.1 Billion**
CIOs
IT Functional Leaders
Front-line IT Professionals
12
2012
Source: Gartner internal estimates * technology, professional services, telecommunications and investors
Gartner Research
Vast Untapped Market Opportunity
$47 Billion Other* Supply Chain
CIOs
IT Functional Leaders
Front-line IT Professionals
$1.1 Billion**
Source: Gartner internal estimates * technology, professional services, telecommunications and investors
Provides IT technical professionals with in-depth advice to drive technology architecture decisions and implementation strategy
Gartner Research
Vast Untapped Market Opportunity
$47 Billion Other* Supply Chain
8 4 5 18 Gartner for Supply Leaders Provides Supply Chain leaders within different industries advice and tools to optimize and drive success on critical initiatives around their specific value chain
CIOs
IT Functional Leaders
Front-line IT Professionals
12
2012
$1.1 Billion**
Source: Gartner internal estimates * technology, professional services, telecommunications and investors
Gartner Research
Vast Untapped Market Opportunity
$47 Billion Other* Supply Chain
8 4 5 18
Gartner for Business Leaders Provides business leaders in Technology and Service providers with the tools and insight to ensure they succeed in the marketplace
CIOs
IT Functional Leaders
Front-line IT Professionals
12
2012
$1.1 Billion**
Source: Gartner internal estimates * technology, professional services, telecommunications and investors
Save Money
Contract reviews Best-practice budget benchmark Cost avoidance
Gain Resources
Global perspective Best practice by vertical industry Strategic guidance
Gain Confidence
Making the right decision
Personal development
Increased credibility
Gartner Research
Alwyn Dawkins
Senior Vice President Gartner Events
This presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is for the sole use of the intended Gartner audience or other authorized recipients. This presentation may contain information that is confidential, proprietary or otherwise legally protected, and it may not be further copied, distributed or publicly displayed without the express written permission of Gartner, Inc. or its affiliates. 2012 Gartner, Inc. and/or its affiliates. All rights reserved.
Gartner Events
Gartner Events
Gartner Events Business
Our mission:
Make every conference we produce the MUST ATTEND event for the communities we serve
Gartner Events
Gartner Events Business
10%
60 Events
6 Continents
42,800 Attendees 1,500 Exhibitors
Gartner Events
Gartner Events Business
10%
People Process Proprietary Data
Current
Relevant
Actionable
Face-to-face Analyst interaction Industry leaders Unparalleled peer networking Access to leading solution providers Actionable advice
5,100 CIOs (up 18% YoY) and over 18,000 Attendees (up 16% YoY)
2007
2008
2009
2010
2011
Gartner Events
This presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is for the sole use of the intended Gartner audience or other authorized recipients. This presentation may contain information that is confidential, proprietary or otherwise legally protected, and it may not be further copied, distributed or publicly displayed without the express written permission of Gartner, Inc. or its affiliates. 2012 Gartner, Inc. and/or its affiliates. All rights reserved.
Gartner Consulting
20%
Extraordinary Research Insight
Gartner Consulting
Gartner Consulting
20%
Extraordinary Research Insight
Core Consulting
Benchmarking Services
Contract Optimization
Gartner Consulting
Independent and Objective
20%
Extraordinary Research Insight
Managing Partner
Trust-based relationships
Repeatable services
Gartner Consulting
20%
Extraordinary Research Insight
Longer-term differentiated engagements leveraging Gartner research 50% cost savings Mobility roadmap
Cloud strategy
Note: Percentages based on midpoint of 2012 revenue guidance.
Contract Optimization
>$1.4B
in documented client savings
Gartner Consulting
20%
Extraordinary Research Insight
2004
Note: 2004 Gross Contribution Margin re-stated to reflect the impact of equity compensation expense impact is 1 pt.
2011
Gartner Consulting
David Godfrey
Senior Vice President Worldwide Sales
This presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is for the sole use of the intended Gartner audience or other authorized recipients. This presentation may contain information that is confidential, proprietary or otherwise legally protected, and it may not be further copied, distributed or publicly displayed without the express written permission of Gartner, Inc. or its affiliates. 2012 Gartner, Inc. and/or its affiliates. All rights reserved.
Gartner
Gartner Events Business
10%
Gartner Consulting Business
20%
70%
Gartner Sales
Gartner Sales
1,268 quota-bearing sales associates
186% growth since 2004 48% outside of United States
Market Opportunity
Enterprise Opportunity
108,000
80,000
2008
2012
Market Opportunity
Covered Enterprises
34,000
19,000
2008
2012
Market Opportunity
Client Enterprises
8,100 6,800
2008
2012
8
4 5 18
7 3 11
2008
IT Functional Leaders
Front-line IT Professionals
12
2012
Source: Gartner internal estimates * technology, professional services, telecommunications and investors
8
4 5 18
74,000
CIOs
IT Functional Leaders
25,900
12
2012
$1.1 Billion**
Total Uncovered Covered Prospects
8,100
Clients
Source: Gartner internal estimates * technology, professional services, telecommunications and investors ** 2011 ending contract value
69%
31%
24%
7%
IT Functional Leaders
IT Professionals
Gartner Sales
Capacity
Capacity
Coverage
Sales Effectiveness
Capacity
Coverage
Sales Effectiveness
Capacity
Coverage
Sales Effectiveness
Capacity
15 - 20% increased annual sales headcount objective Architected recruitment and training plan
1268
928
942
1049
443
550
663
2004
2005
2006
2007
2008
2009
2010
2011
Capacity
15 - 20% increased annual sales headcount objective Architected recruitment and training plan
1268
928
942
1049
443
550
663
2004
2005
2006
2007
2008
2009
2010
2011
Collaboration
Leading tools and Best Practices
Coverage
90
Gartner Sales
Chris Lafond
Gartner Chief Financial Officer
This presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is for the sole use of the intended Gartner audience or other authorized recipients. This presentation may contain information that is confidential, proprietary or otherwise legally protected, and it may not be further copied, distributed or publicly displayed without the express written permission of Gartner, Inc. or its affiliates. 2012 Gartner, Inc. and/or its affiliates. All rights reserved.
World-Class Service
509
$M
2004
2011
Consulting 30%
Exhibitors
+16%
1,532 1,321
60
30,999
2004
2011
2004
2011
2004
2011
2004
2011
2004
2011
2004
2011
2004
2011
279
103
EBITDA%
2004
2011
2004
2011
(a)
214
$0.09
2004
(a)
23
2011 2004 2011
See the attached Glossary for the definition of Free Cash Flow, and cautionary statement regarding this non-GAAP financial measure.
Winning Strategy
Value Proposition: We Deliver Our Extraordinary Research Insight Through Three Business Segments
Gartner Events Business
10%
Gartner Consulting Business
20%
70%
Other*
Supply Chain CIOs
8 4 5 18
74,000
IT Functional Leaders
25,900
12
2012
$1.1 Billion**
Total Uncovered Covered Prospects
8,100
Clients
69%
31%
24%
7%
2004
2011
$ in millions
214.0
17
23.0
2004
(a)
2011
2004
2011
See the attached Glossary for the definition of Free Cash Flow, and cautionary statement regarding this non-GAAP financial measure.
869
964 1,037
1,168
1,279
1,140
2004
(a) (b) (c) (d) (e)
2005
2006
2007
2008
2009
2010
2011
2012E
Restated to exclude results of Vision Events. See the attached Glossary for the definition of Normalized EBITDA, and cautionary statement regarding this non-GAAP financial measure 2012 Normalized EBITDA margin based upon mid-point of 2012 guidance See Forward Looking Statement disclaimer on page 1 for factors that may affect our ability to achieve these results. See the attached Glossary for the definition of Free Cash Flow, and cautionary statement regarding this non-GAAP financial measure
315335
150
103 100
2004
(a) (b) (c) (d) (e)
2005
2006
2007
2008
2009
2010
2011
2012E
Restated to exclude results of Vision Events. See the attached Glossary for the definition of Normalized EBITDA, and cautionary statement regarding this non-GAAP financial measure 2012 Normalized EBITDA margin based upon mid-point of 2012 guidance See Forward Looking Statement disclaimer on page 1 for factors that may affect our ability to achieve these results. See the attached Glossary for the definition of Free Cash Flow, and cautionary statement regarding this non-GAAP financial measure
$1.63$1.79
$1.39
$0.98 $0.85
$0.65 $0.47 $0.09
2004
(a) (b) (c) (d) (e)
$0.96
-$0.05
2005 2006 2007 2008 2009 2010 2011 2012E
Restated to exclude results of Vision Events. See the attached Glossary for the definition of Normalized EBITDA, and cautionary statement regarding this non-GAAP financial measure 2012 Normalized EBITDA margin based upon mid-point of 2012 guidance See Forward Looking Statement disclaimer on page 1 for factors that may affect our ability to achieve these results. See the attached Glossary for the definition of Free Cash Flow, and cautionary statement regarding this non-GAAP financial measure
160 124 85
147
23
5
2004
(a) (b) (c) (d) (e)
2005
2006
2007
2008
2009
2010
2011 2012E
Restated to exclude results of Vision Events. See the attached Glossary for the definition of Normalized EBITDA, and cautionary statement regarding this non-GAAP financial measure 2012 Normalized EBITDA margin based upon mid-point of 2012 guidance See Forward Looking Statement disclaimer on page 1 for factors that may affect our ability to achieve these results. See the attached Glossary for the definition of Free Cash Flow, and cautionary statement regarding this non-GAAP financial measure
Winning Strategy
Appendix
Projected 2012
Full Year Revenue and EBITDA Outlook
($ in millions except per share data)
2012 Projection
(1)
$ 1,130 - 1,150 310 - 330 160 - 170 $1,600 - 1,650 $315 - 335
(1)
(2)
See Forward Looking Statement disclaimer on page 1 for factors that may affect our ability to achieve these results. See the attached Glossary for a discussion of Normalized EBITDA
Projected 2012
Earnings and Cash Flow Outlook
($ in millions except per share data)
Diluted Income per share Operating Cash Flow (1) Capital Expenditures (1) Free Cash Flow (2)
(1)
(2) (3)
Capital expenditures includes $16.0 million of estimated payments we will make for the renovation of our Stamford headquarters facility, which are contractually reimbursable from the landlord. The accounting impact of these renovation payments increases both cash flow from operations and capital expenditures (investing activities) by the same amount and as a result has no net impact on Free Cash Flow. See the attached Glossary for a discussion of Free Cash Flow. See Forward Looking Statement disclaimer on page 1 for factors that may affect our ability to achieve these results.
Note: See Forward Looking Statement disclaimer on page 1 for factors that may affect our ability to achieve these results.
Note: See Forward Looking Statement disclaimer on page 1 for factors that may affect our ability to achieve these results.
Q1 19%
Q2 25%
Q3 20%
Q4 36%
Above based on the midpoint of guidance Based upon business conditions the Company may accelerate or postpone expenses throughout the year which could shift earnings between quarters
Note: See Forward Looking Statement disclaimer on page 1 for factors that may affect our ability to achieve these results.
Winning Strategy
Glossary
Non-GAAP Financial Measures Investors are cautioned that Normalized EBITDA and Free Cash Flow are not financial measures under generally accepted accounting principles. In addition, they should not be construed as alternatives to any other measures of performance determined in accordance with generally accepted accounting principles. These non-GAAP financial measures are provided to enhance the user's overall understanding of the Company's current financial performance and the Company's prospects for the future. Normalized EBITDA Represents operating income excluding depreciation, accretion on obligations related to excess facilities, amortization, stock-based compensation expense, Acquisition Adjustments and Other charges. We believe Normalized EBITDA is an important measure of our recurring operations as it excludes items that may not be indicative of our core operating results. Reconciliation of Normalized EBITDA to GAAP
($ in millions)
Net income (loss) Interest expense, net Other (income) expense, net Discontinued operations Tax provision Operating income
(1) (1)
2004
$17 1 7 (5) 16 $36 31 36
2005
($2) 11 9 (4) 7 $20 36 15 29
2006
$58 17 1 (4) 26 $98 34 1 17
2007
$74 22 (3) (3) 40 $129 28 9 24
2008
$104 19 1 (7) 48 $164 28 21
2009
$83 16 3 33 $134 28 26 3
2010
$96 16 38 $149 36 33 4 8 $230
2011
$137 10 2 65 214 32 33 $279
Normalizing adjustments: Depreciation, accretion and amortization META integration charges Other charges SFAS No. 123(R) stock compensation expense Pre-acquisition deferred revenue fair value adjustments Acquisition and Integration Charges Normalized EBITDA (1)
(2)
$103
$100
$150
$190
$213
$191
140
Glossary
Non-GAAP Financial Measures
Free Cash Flow: Represents cash provided by operating activities excluding cash charges related to the acquisitions of AMR Research and Burton Group, which primarily consist of certain nonrecurring costs such as severance and other exit costs (Cash Acquisition and Integration Charges), less additions to property, equipment and leasehold improvements (Capital Expenditures). We believe that Free Cash Flow is an important measure of the recurring cash generated by the Companys core operations that is available to be used to repurchase stock, repay debt obligations and invest in future growth through new business development activities or acquisitions.
Capital Expenditures
Free Cash Flow
(25)
$23
(22)
$5
(21)
$85
(24)
124
(24)
$160
(15)
$147
(21)
$192
(42)
$214
141