Forrester Research Inc. (NASDAQ:FORR) Q3 2018 Earnings Conference Call Transcript
Oct 24, 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 CFO. George will open the call, Kelley will follow George to discuss sales, and Mike Doyle will discuss their financials. We'll then open the call to Q&A.
A replay of this call will be available until November 23, 2018 and can be accessed by dialing 1-888-843-7419 or internationally at 1-630-652-3042. Please reference the passcode 8066275#.
(Forward-Looking Cautionary Statements)
I'll now hand the call over to George Colony.
Thank you very much, and good afternoon and welcome to Forrester's 2018 Q3 Investor Call. After my short brief, I will hand the call over to Kelley Hippler, Chief Sales Officer, who will give an update on the selling team; Mike Doyle, the Company's CFO will give a financial review and then Mike, Kelley and I will take questions.
The Company's positive momentum from Q2 continued into the third quarter. Agreement value increased 8%, enrichment has moved to 100%, revenue is at the upper end of guidance, and EPS exceeded guidance for the quarter. We are on track to achieve our plan for the remainder of 2018.
Several factors are driving our performance. Our customer engagement model or CEM continues to yield positive results. Customer success managers are focused on understanding our clients' pain points and are delivering a tailored customer experience to our premiere clients. Clients with CSMs engage at higher rates as measured by document reads; attendance in forums; attendance in webinars; and participation in our inquiry services. Elevated engagement directly correlates with higher renewal rates.
Solution partners are the sales executives in the CEM that match clients with a set of Forrester products, and their work is driving higher enrichment rates.
During this quarter, we've expanded our product line. As I talked about in the last call, we are developing the real-time customer experience cloud, a product that will enable clients to monitor and improve their experiences in real-time. In simple terms, the cloud will gather feedback from multiple sources into a common data store, process that data through a common analytics engine and then feed relevant advice to multiple recipients within client organizations.
With the acquisition of FeedbackNow in July, the first version of the cloud is now operational in generating new clients. We had a number of wins in the quarter, increasing the client base to over 200 companies. The Port Authority of New York City has deployed the cloud at Newark, LaGuardia and Kennedy airports. Schiphol Airport in the Netherlands, this is the third largest airport in Europe, has rolled out FeedbackNow as part of its Internet of Things initiative, and it is recording over 25 taps or what we call feedbacks per day. And then finally, a national football league stadium in the Midwest has deployed the cloud to monitor and improve fan experience. This is our first large stadium win in the United States.