Gartner Inc. (NYSE:IT) Q3 2017 Earnings Conference Call - Final Transcript
Nov 02, 2017 • 08:00 am ET
Good morning and welcome to Gartner's Third Quarter 2017 Earnings Call. This call will include a discussion of Q3 2017 financial results as well as an updated outlook for 2017. After prepared remarks, you will have an opportunity to ask questions. In addition to today's press release, the company has provided an accompanying presentation as a reference point for investors and analysts. Both the press release and the presentation are available on the investor website at investor.gartner.com.
(Forward-Looking Cautionary Statements)
With that, I would like to hand over the call over to Gartner's CEO, Gene Hall. Mr. Hall, you can please proceed.
Good morning and welcome to our quarterly earnings call. Thanks for joining us.
We delivered another strong quarter of double-digit growth in Q3 of 2017. Our business continues to perform well. We're making great progress on the integration of Gartner and CEB. And I continue to be excited about our business, our prospects for growth and our strategy to drive value for our shareholders over the long term. We're living in exciting times. Technology is opening up new markets and creating innovative ways to serve customers. Technology-driven disruption is providing excellent growth opportunities and threats to entire industries.
Cybersecurity is a pervasive and critical risk. Technology has also become a critical factor in every function of the enterprise, supply chain, sales, marketing, HR, finance, legal and the rest. And if that's not enough, the business environment continues to be mixed, exchange rates, commodity prices, global macroeconomic growth and geopolitical dislocations. Business leaders have never faced the rate of change they face today. They need help to deal with these difficult issues. The combination of CEB and Gartner gives us unique capabilities to help clients address these issues with every function of the business. We're providing the best of both businesses, research methodologies, sales and service best practices, operations and together, we will be better than either company was alone. So the combination of Gartner plus CEB will provide a quantum leap in our ability to help clients. In a moment, Craig will take you through the details of our Q3 results, but before he does, I'd like to take you through a few performance highlights.
Now as we've done in our previous earnings calls and because of ongoing exchange rate volatility, I'll review these highlights in FX neutral terms. The traditional Gartner business continues to deliver outstanding performance. For the third quarter of 2017, traditional Gartner revenues grew 14% year-over-year. The traditional Gartner Research business is doing great. In Q3, we delivered 16% revenue growth and 15% contract value growth, with double-digit increases in every region across every sized company and in virtually every industry and we achieved these strong results despite a two-week disruption in one of our major hubs due to Hurricane Irma and also a higher level -- higher-than-usual level of M&A in our clients.
Our sales force continues to be our largest investment. At the end of Q3, the traditional Gartner sales force grew 17%