it-20240331

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

(Mark One)


☑			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.
			For the quarterly period ended March 31, 2024
			OR
☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.

Commission File Number 1-14443

Gartner, Inc.

(Exact name of Registrant as specified in its charter)


Delaware									04-3099750
(State or other jurisdiction of									(I.R.S. Employer
incorporation or organization)									Identification Number)

P.O. Box 10212									06902-7700
56 Top Gallant Road									(Zip Code)
Stamford,
Connecticut
(Address of principal executive offices)

Registrant’s telephone number, including area code: (203) 964-0096

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol	Name of each exchange on which registered
Common Stock, $.0005 par value per share	IT	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☑

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑

As of April 26, 2024, 77,630,468 shares of the registrant’s common shares were outstanding.

Table of Contents


			Page
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS (Unaudited)
Condensed Consolidated Balance Sheets at March 31, 2024 and December 31, 2023			3
Condensed Consolidated Statements of Operations for the Three Months Ended March 31, 2024 and 2023			4
Condensed Consolidated Statements of Comprehensive Income for the Three Months Ended March 31, 2024 and 2023			5
Condensed Consolidated Statements of Changes in Stockholders’ Equity for the Three Months Ended March 31, 2024 and 2023			6
Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2024 and 2023			7
Notes to Condensed Consolidated Financial Statements			8
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS			25
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK			36
ITEM 4. CONTROLS AND PROCEDURES			37
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS			38
ITEM 1A. RISK FACTORS			38
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS			38

ITEM 6. EXHIBITS			39

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

GARTNER, INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(Unaudited; in thousands, except share data)


	March 31,		December 31,
	2024		2023
Assets
Current assets:
Cash and cash equivalents	$	1,235,801	$	1,318,999
Fees receivable, net of allowances of $9,000 for both periods	1,565,960		1,601,228
Deferred commissions	350,725		380,479
Prepaid expenses and other current assets	173,785		127,180

Total current assets	3,326,271		3,427,886
Property, equipment and leasehold improvements, net	256,536		262,718
Operating lease right-of-use assets	352,400		366,809
Goodwill	2,934,398		2,937,260
Intangible assets, net	477,701		501,958
Other assets	362,504		339,288
Total Assets	$	7,709,810	$	7,835,919
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable and accrued liabilities	$	844,274	$	1,127,604
Deferred revenues	2,796,016		2,640,515
Current portion of long-term debt	—		9,600

Total current liabilities	3,640,290		3,777,719
Long-term debt, net of deferred financing fees	2,456,877		2,448,696
Operating lease liabilities	491,182		513,406
Other liabilities	403,287		415,464
Total Liabilities	6,991,636		7,155,285
Stockholders’ Equity
Preferred stock, $0.01 par value, 5,000,000 shares authorized; none issued or outstanding	—		—
Common stock, $0.0005 par value, 250,000,000 shares authorized; 163,602,067 shares issued for both periods	82		82
Additional paid-in capital	2,373,501		2,320,289
Accumulated other comprehensive loss, net	(82,386)		(76,331)
Accumulated earnings	4,949,837		4,739,292
Treasury stock, at cost, 85,390,263 and 85,264,526 common shares, respectively	(6,522,860)		(6,302,698)
Total Stockholders’ Equity	718,174		680,634
Total Liabilities and Stockholders’ Equity	$	7,709,810	$	7,835,919

See the accompanying notes to Condensed Consolidated Financial Statements.

GARTNER, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Operations

(Unaudited; in thousands, except per share data)


	Three Months Ended
	March 31,
	2024		2023
Revenues:
Research	$	1,268,172	$	1,217,191
Conferences	70,069		64,642
Consulting	134,685		127,036
Total revenues	1,472,926		1,408,869
Costs and expenses:
Cost of services and product development	459,441		435,139
Selling, general and administrative	689,833		657,090
Depreciation	26,317		23,896
Amortization of intangibles	22,990		22,735
Acquisition and integration charges	460		1,368
Gain from sale of divested operation	—		(139,316)
Total costs and expenses	1,199,041		1,000,912
Operating income	273,885		407,957
Interest expense, net	(19,219)		(27,391)
Gain on event cancellation insurance claims	—		3,077


Other income (expense), net	4,891		(2,366)
Income before income taxes	259,557		381,277
Provision for income taxes	49,012		85,494
Net income	$	210,545	$	295,783

Net income per share:
Basic	$	2.69	$	3.72
Diluted	$	2.67	$	3.68
Weighted average shares outstanding:
Basic	78,339		79,452
Diluted	78,964		80,282

See the accompanying notes to Condensed Consolidated Financial Statements.

GARTNER, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Comprehensive Income

(Unaudited; in thousands)


	Three Months Ended
	March 31,
	2024		2023
Net income	$	210,545	$	295,783
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	(9,707)		1,832
Interest rate swaps – net change in deferred gain or loss	3,601		3,834
Pension plans – net change in deferred actuarial loss	51		34
Other comprehensive income (loss), net of tax	(6,055)		5,700
Comprehensive income	$	204,490	$	301,483

See the accompanying notes to Condensed Consolidated Financial Statements.

GARTNER, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Changes in Stockholders’ Equity

(Unaudited; in thousands)


Three Months Ended March 31, 2024
	Common Stock		Additional Paid-In Capital		Accumulated Other Comprehensive Loss, Net		Accumulated Earnings		Treasury Stock		Total
Balance at December 31, 2023	$	82	$	2,320,289	$	(76,331)	$	4,739,292	$	(6,302,698)	$	680,634
Net income	—		—		—		210,545		—		210,545
Other comprehensive income	—		—

SEC Form 10-Q filed by Gartner Inc.