AUSTIN, Texas & CAMBRIDGE, Mass. - Forrester, a leading global research and advisory firm, has announced the upcoming launch of a new service aimed at assisting chief data, AI, and analytics leaders in large enterprises. Named Forrester Decisions for Data, AI & Analytics, the service is set to be available from October 29, 2024, and will provide tools and frameworks to help executives align their data and AI strategy with business objectives.
The announcement, made at Forrester's Technology & Innovation Summit North America, comes as Forrester's 2025 predictions indicate that nearly a third of chief information officers will seek partnerships with chief data officers to drive AI-powered business growth. Moreover, 40% of regulated companies are expected to merge their data and AI governance programs to ensure compliance with business goals and legal regulations.
Despite these strategic moves, only 22% of global data and analytics decision-makers see data integrity and quality as top challenges in executing their data-related vision. Forrester Decisions for Data, AI & Analytics aims to address this disconnect by enabling leaders to foster a data-driven culture and build competencies in areas such as data governance, business intelligence, and AI innovation.
Sharyn Leaver, chief research officer at Forrester, emphasized the importance of a strong data foundation and clear business objectives for AI-powered innovation. She stated that the new service would help transform data and AI initiatives into enterprise imperatives, thereby accelerating organizational growth.
Forrester's approach combines research-based insights with continuous guidance to help clients progress in their initiatives. The service will cover topics such as effective data and AI team establishment, data governance as a business foundation, and patterns to enable data and analytic business outcomes.
This move by Forrester reflects a broader industry trend towards data and AI integration in business strategy, underscoring the firm's commitment to providing actionable guidance for technology leaders. The information for this article is based on a press release statement from Forrester.
In other recent news, Forrester's Q2 2024 earnings call revealed a mixed financial performance amid the company's ongoing transition to Forrester Decisions. While the total contract value (CV) bookings saw a 5% year-over-year growth, overall revenue experienced a decline of 10%, primarily due to underperformance in the Events and Consulting sectors. Despite these challenges, Forrester is making strides with its Forrester Decisions migration, projecting 80% of CV in Forrester Decisions by the end of the year.
The company has adjusted its full-year revenue guidance to range from $425 million to $435 million, and earnings per share to fall between $1.37 and $1.57, reflecting the current headwinds. This comes after the company's Consulting business revenue fell by 17% due to macroeconomic challenges and the Events business revenue saw a 25% drop, attributed to reduced sponsorships and ticket sales.
Forrester remains confident in its product strategy and long-term business trends, with new product Izola contributing to sales growth. The company is actively managing its sales force, working to improve retention, and remains proactive in buyback activities. These recent developments highlight Forrester's resilience and adaptability in navigating a period of transition and evolving market landscape.
InvestingPro Insights
As Forrester gears up to launch its new Forrester Decisions for Data, AI & Analytics service, the company's financial health and market performance provide an important backdrop. According to InvestingPro data, Forrester holds a market capitalization of $344.99 million, indicative of its standing in the industry. The company's gross profit margin is impressive at 56.68% for the last twelve months as of Q2 2024, which is a testament to its operational efficiency and ability to manage costs effectively in delivering its services.
However, it's noteworthy that the company's revenue has seen a downturn, with a decline of 11.76% over the last twelve months as of Q2 2024. This may reflect broader market challenges or specific strategic decisions that have impacted sales. Despite this, Forrester has managed to maintain a positive operating income margin of 1.92% during the same period, suggesting that they are still able to generate profit from their operations.
InvestingPro Tips further illuminate the company's financial nuances. Forrester is currently trading at a high earnings multiple, with a P/E ratio of 241.87. This suggests that investors have high expectations for the company's future earnings growth. Additionally, analysts have revised their earnings downwards for the upcoming period, which could be a point of consideration for investors monitoring Forrester's performance closely.
For those seeking more comprehensive analysis and additional insights, InvestingPro offers a total of 10 InvestingPro Tips for Forrester, available at https://www.investing.com/pro/FORR. These tips include projections on net income growth, sales trends, and profitability, providing a fuller picture for stakeholders and potential investors.
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