Forrester Research Inc. (NASDAQ:FORR) Q4 2018 Earnings Conference Call Transcript
Feb 13, 2019 • 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 will follow George to discuss sales and Mike Doyle will discuss our financials. We will then open the call to Q&A. A replay of this call will be available until March 13th, 2019 and can be accessed by dialing 1-(888)-843-7419 or internationally by dialing 1-(630)-652-3042. Please reference the passcode 6316617 followed by the pound symbol or hash key. Before we begin, I'd like to remind you that 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 risk 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 the new information, future events or otherwise. I will now hand the call over to Mr. George Colony.
Thank you very much for joining Forrester's 2018 Q4 Investor Call. Following my remarks, I will hand the call over to Kelley Hippler, Chief Sales Officer. Following Kelley, Mike Doyle, the Company's CFO, will give a financial review of the quarter and the year. He will also give guidance for Q1 and full year 2019. Kelley, Mike and I will then take questions.
The Company's positive momentum from Q3 continued into the fourth quarter enabling Forrester to exceed its bookings plan for the quarter and for the year. In Q4, agreement value increased 10%, enrichment moved to 101%, revenue exceeded guidance and pro forma earnings per share was at the top end of guidance for the quarter. After a slow start in Q1, we accelerated quarter-by-quarter resulting in a strong year for the Company. Four factors accounted for the 2018 results: number one, our selling model; two, our focus on specific vertical markets; three, the launch of new products; and four, the continued strength of our Age of the Customer strategy. We began the transition to a new selling model to what we call the Customer Engagement Model in 2017.
As we talked about on previous calls, CEM bifurcates customers into premier and core. Customer success mangers drive engagement with clients, which accelerates renewal rates and solution partners match client challenges with Forrester products to increase enrichment. The model was successfully completed in 2018. In 2018, we focused the Company on 12 vertical markets. These industries are feeling the effects of the Age of the Customer most acutely. And these verticals