Forrester Research Inc. (NASDAQ:FORR) Q1 2018 Earnings Conference Call - Preliminary Transcript
Apr 26, 2018 • 04:30 pm ET
Good afternoon. Thank you for joining today's call. With me today are George Colony, Forrester's Chairman of the Board and CEO; Kelley Hippler, Forrester's Chief Sales Officer and Mike Doyle, Forrester's Chief Financial Officer. George will open the call. Kelley Hippler will follow to discuss sales. Mike Doyle will then follow Kelley Hippler to discuss our financials. We'll then open the call to Q&A.
A replay of this call will be available until May 26, 2018, and can be accessed by dialing 1-888-843-7419 or internationally at, 1-630-652-3042. Please reference the passcode 6026889 followed by the pound sign.
Before we begin, I'd like to remind you this call will contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as expects, believes, anticipates, intends, plans, estimates or similar expressions are intended to identify these forward-looking statements.
These statements are based on the Company's current plans and expectations and involve risks and uncertainties that could cause future activities and results of operations to be materially different from those set forth in the forward-looking statements.
Some of the important factors that could cause actual results to differ are discussed in our reports and filings with the Securities and Exchange Commission. The Company undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
I'll now hand the call over to George Colony. Sir, you may begin.
Thanks for listening in on Forrester's 2018 Q1 conference call. I will give a short update on our progress. Kelley Hippler will brief on the sales organization and then Mike Doyle will give a financial review for the quarter.
In the fourth quarter of 2017, the Company showed good progress as I reported on the February call. Retention rates, Enrichment rates and bookings in our user business showed strong growth. In the first quarter of 2018, Enrichment rates continued to climb and agreement value increased 4%.
That said, the growth we saw on retention rates and bookings in Q4 attenuated in Q1. However, we do not believe this represents a trend and we project to be on track to attain our 2018 plan.
As I reported on the year-end 2017 call, our user business continues to expand. We focused on nine user industries. Financial services, wealth management, life insurance, banking, utilities, government, order, retail and health insurance. These vertical markets fall into what we call our ideal client profile.
Markets spaces that are most impacted by age of the customer dynamics.
Customers in these markets tend to be the most demanding. Our premier and core channels are progressing to specialize in these markets. Our lead development and lead creation systems focus on generating opportunities in ICP companies.
In fact our data is showing that these verticals have a shorter sales cycle, higher average transaction size and longer life time value than our other user clients.
In Q1, 77% of our user bookings were in these industries outpacing growth in the non-ICP client