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 rose 42% to $1.3 billion, boosted by a $300 million gain from the settlement of 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 driven by the insurance settlement proceeds and lower net interest expense, partially offset by the prior year’s gain on the sale of a business. 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.

Strengths and Weaknesses

Gartner’s key strengths include its leading market position, diversified revenue streams, and strong cash flow generation. The company’s subscription-based Research business, which accounts for the majority of revenues, provides a stable and recurring revenue base. Gartner’s focus on delivering high-quality, actionable insights to its clients across various industries and functions has helped it maintain a loyal customer base, as evidenced by its strong client and wallet retention rates.

However, Gartner faces some challenges, including intense competition, the need to continuously innovate its product offerings, and the impact of macroeconomic conditions and global events on its Conferences business. The company’s reliance on in-person conferences, which were disrupted during the COVID-19 pandemic, highlights the vulnerability of this revenue stream to external shocks.

Outlook and Future Prospects

Looking ahead, Gartner is well-positioned to capitalize on the growing demand for research, advisory, and consulting services. The company’s investments in technology, data, and talent are expected to drive further innovation and enhance its ability to deliver value to clients.

The Research segment, with its high-margin subscription model, is likely to remain the primary growth engine. Gartner’s focus on expanding its client base and increasing wallet share within existing accounts should support continued contract value growth. The Conferences business is expected to benefit from the recovery in in-person events, though it may face ongoing challenges related to global economic conditions and travel patterns.

The Consulting segment, while smaller in size, provides an opportunity for Gartner to leverage its deep industry expertise and deliver customized solutions to senior executives. The growth in Consulting backlog suggests a positive outlook for this business.

Overall, Gartner’s strong financial performance, diversified business model, and strategic initiatives position the company well to navigate the evolving market landscape and deliver long-term value to shareholders.

Tables

Revenues by Segment (in thousands)

Segment	2024	2023	Increase	Percentage Increase
Research	$5,125,650	$4,887,046	$238,604	5%
Conferences	$583,224	$505,164	$78,060	15%
Consulting	$558,537	$514,746	$43,791	9%
Total Revenues	$6,267,411	$5,906,956	$360,455	6%

Business Measurements

Metric	2024	2023
Research Contract Value (in thousands)	$5,262,000	$4,880,000
Research Client Retention	84%	83%
Research Wallet Retention	102%	101%
Number of Destination Conferences	51	47
Number of Destination Conference Attendees	86,625	75,569
Consulting Backlog (in thousands)	$191,500	$163,000
Consulting Utilization Rate	65%	65%