Forrester’s 4Q 2024 Earnings – Is This AR's Strategic Inflection Point?
Eight consecutive quarters of influence metrics erosion demands AR’s engagement reassessment
AR Intelligence Snapshot
Forrester's Influence Crisis Deepens
Forrester's Q4 2024 earnings reveal a concerning picture for AR leaders tracking the firm's influence with enterprise buyers. For the eighth consecutive quarter, all core metrics that signal an analyst firm's market impact have deteriorated:
Research contract value plunged 7.3% YoY to $307.6M
Client count hemorrhaged 507 companies in just 12 months
Events revenue collapsed by 42% with declining attendance
Sales headcount down to 580, the lowest since 2018
These aren't mere fluctuations but symptoms of fundamental strategic missteps. Forrester's decision to abandon sub-$50M tech vendors, its struggling transition to Forrester Decisions, and execution failures in events and reprints businesses have created a perfect storm that threatens the firm's ability to influence technology purchasing decisions.
Dig Deeper
Which ones and to what extent did Forrester’s key “future influence” metrics decline in 4Q24?
Can incentivizing the quota-bearing sales reps to sell to sell events tickets and sponsorships solve the declining events business or is there a deeper problem
Will having a digital Reprints Client Hub stop the slide in reprints sales or is there something more fundamental that makes reprints less attractive to vendors
Is DOGE’s Federal contract cancellations and employee firings going to be a Sword of Damocles for Forrester in 2025?
Did Forrester’s decision to stop selling to tech vendors under $50m in revenue contribute to today’s issues with contract value, event sponsorship, and reprints
With analyst firms on divergent trajectories, how should AR leaders reassess their Forrester strategy without abandoning potentially valuable relationships?
AR Intelligence Conclusion: Forrester at a Crossroads, AR at an Inflection Point
Got questions? We have answers! Talk to a Lusher Advisory analyst.
Readers are encouraged to schedule an inquiry with Lusher Advisory to have the research applied to their situation. Contact carter.lusher@lusheradvisory.com or 650-274-8309 to schedule the meeting.
🔐Unlock the full data table, exclusive analysis, and actionable advice for AR and their stakeholders, investors, analyst firms, and corporate consumers of research are available to paid subscribers. Upgrade to a paid subscription to access the full analysis.