Gartner Inc. Q1 FY2024 results: revenue $1.5 billion, up 4.5% on the year

Gartner Inc. (IT) reported revenue of $1.5 billion for Q1 FY2024, the quarter ended 31 March 2024, up 4.5% on the same quarter a year earlier. Net income was $211 million, down 28.8% on the year, and diluted earnings per share $2.67. The figures are the company's own, from the 10-Q it filed with the SEC on 30 April 2024.

Revenue$1.5 billionup 4.5%

Net income$211 milliondown 28.8%

Diluted EPS$2.67

QuarterQ1 FY2024ended 31 March 2024

The quarter, against the one before and a year earlier

Line	Q1 FY2024	Q4 FY2023	A year earlier	Change on the year
Revenue	1,473	1,586	n/a	n/a
Cost of revenue	459	530	n/a	n/a
Gross profit	1,022	1,056	n/a	n/a
Gross margin	69.4%	66.6%	n/a
Selling, general and administrative	690	704	n/a	n/a
Operating income	274	301	n/a	n/a
Operating margin	18.6%	19.0%	n/a
Interest expense	19.2	59.0	n/a	n/a
Pre-tax income	260	277	n/a	n/a
Income tax	49.0	68.6	n/a	n/a
Effective tax rate	18.9%	24.8%	n/a
Net income	211	209	n/a	n/a
Net margin	14.3%	13.2%	n/a
Diluted EPS	$2.67	$2.66	n/a	n/a

$ million except per share. Fourth quarters are the year less the first three quarters. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow and capital returned

Line	Q1 FY2024	Q4 FY2023	A year earlier	Change on the year
Operating cash flow	189	224	n/a	n/a
Capital expenditure	22.7	28.0	n/a	n/a
Free cash flow	166	196	n/a	n/a
Free cash flow margin	11.3%	12.4%	n/a
Depreciation and amortisation	49.3	49.3	n/a	n/a
Share-based compensation	50.5	25.4	n/a	n/a
Buybacks	225	158	n/a	n/a
Diluted shares, weighted	79m	80m	n/a	n/a
Shares outstanding at period end	78m	78m	n/a	n/a

Cash flow lines for the quarter; where the company files them year to date, the quarter is the difference between two filings.

Balance sheet at quarter end

Line	Q1 FY2024	Q4 FY2023	A year earlier	Change on the year
Total assets	7,710	7,836	n/a	n/a
Cash and equivalents	1,236	1,319	n/a	n/a
Receivables	1,566	1,601	n/a	n/a
Goodwill	2,934	2,937	n/a	n/a
Total debt, as filed	2,457	2,458	n/a	n/a
Long-term debt	2,457	2,449	n/a	n/a
Borrowings, as the company tags them	2,479	2,479	n/a	n/a
Operating lease liabilities	491	513	n/a	n/a
Shareholders' equity	718	681	n/a	n/a

Quarterly results, the last 12 quarters

	Q3 FY2023	Q4 FY2023 *	Q1 FY2024	Q2 FY2024	Q3 FY2024	Q4 FY2024 *	Q1 FY2025	Q2 FY2025	Q3 FY2025	Q4 FY2025 *	Q1 FY2026	Q2 FY2026
Revenue	1,409	1,586	1,473	1,595	1,484	1,715	1,534	1,686	1,524	1,753	1,511	1,676
Cost of revenue	451	530	459	513	475	575	475	532	474	573	429	487
Gross profit	958	1,056	1,022	1,095	1,015	1,145	1,065	1,158	1,057	1,188	1,086	1,198
Gross margin	68%	67%	69%	69%	68%	67%	69%	69%	69%	68%	72%	72%
SG&A	661	704	690	712	712	771	730	777	763	798	726	765
Operating income	244	301	274	319	246	318	278	327	86.3	334	316	379
Operating margin	17%	19%	19%	20%	17%	19%	18%	19%	6%	19%	21%	23%
Interest expense	21.8	59.0	19.2	20.0	18.0	73.9	13.4	11.8	16.3	83.8	21.0	22.3
Pre-tax income	224	277	260	299	527	302	267	318	69.5	314	292	355
Tax rate	20%	25%	19%	23%	21%	-32%	21%	24%	49%	23%	24%	22%
Net income	180	209	211	230	415	399	211	241	35.4	242	222	275
Net margin	13%	13%	14%	14%	28%	23%	14%	14%	2%	14%	15%	16%
Diluted EPS	$2.26	$2.66	$2.67	$2.93	$5.32	$5.08	$2.71	$3.11	$0.47	$3.36	$3.18	$4.14
Operating cash flow	331	224	189	370	591	335	314	384	299	295	391	398
Capital expenditure	28.5	28.0	22.7	29.4	25.8	23.9	25.6	36.2	29.5	23.8	20.4	19.9
Free cash flow	302	196	166	341	565	311	288	347	269	271	371	378
Buybacks	209	158	225	340	68.7	102	163	274	1,056	498	535	547
Shares outstanding	78m	78m	78m	77m	77m	77m	77m	76m	72m	70m	67m	63m
Filing	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q

* The fourth quarter is the full year less the first three quarters, because the company files the year and not the quarter on its own. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and the share count are as they are. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Cash flow lines filed year to date are the difference between two filings. Shares outstanding are at the period end where the balance sheet tags them, otherwise the count on the filing's cover page. A derived fourth-quarter EPS is left blank when a split in the year makes the arithmetic meaningless.

Source

10-Q for the period ended 31 March 2024, filed 30 April 2024, accession 0000749251-24-000024: the filing on EDGAR. All of Gartner Inc.'s filings: EDGAR company page.

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