Gartner (IT) Q4 2024 earnings summary

Executive summary

• Q4 2024 revenues reached $1.72 billion, up 8.1% year-over-year and FX neutral, with net income of $399 million, up 91% year-over-year.

• Full-year 2024 revenues totaled $6.3 billion, up 6.1% year-over-year, and net income was $1.3 billion, up 42% year-over-year.

• Adjusted EBITDA for Q4 2024 was $417 million (8% growth), with a margin of 24.3%; full-year adjusted EBITDA was $1.6 billion, up 5%.

• Adjusted EPS for Q4 2024 was $5.45, up 79% year-over-year; full-year adjusted EPS was $14.09, up 24%.

• Free cash flow for Q4 2024 was $311 million, up 59% year-over-year; full-year free cash flow reached $1.4 billion, up 31%.

Financial highlights

• Global contract value at year-end was $5.3 billion, up 8% year-over-year FX neutral.

• Research revenues were $1.31 billion in Q4 2024, up 5.4% year-over-year; subscription revenues grew 7.5% while non-subscription revenues declined 22.7%.

• Conference revenues surged 17% to $251 million in Q4 2024; consulting revenues rose 19% to $153 million.

• Q4 contribution margins: Research 74%, Conferences 48%, Consulting 35%.

• Repurchased over $735 million in stock during 2024, reducing share count by 1% year-over-year.

Outlook and guidance

• 2025 consolidated revenue guidance of at least $6.56 billion, representing 6% FX neutral growth.

• Research revenue expected to be at least $5.365 billion (6% FX neutral growth); conferences revenue at least $625 million (10% growth); consulting revenue at least $565 million (2% growth).

• 2025 EBITDA guidance of at least $1.51 billion (23% margin); adjusted EPS of at least $11.45; free cash flow of at least $1.14 billion.

• Management expects to accelerate hiring in 2025, aiming for sustained double-digit growth.

• FX expected to be a 2 percentage point headwind to revenue and EBITDA growth in 2025.