GARTNER: MANAGEMENT REPORT AND ANALYSIS OF FINANCIAL POSITION AND OPERATING RESULTS (Kind 10-Q)

The aim of this Administration's Dialogue and Evaluation ("MD&A") is to
facilitate an understanding of serious elements influencing the quarterly
working outcomes, monetary situation and money flows of Gartner, Inc.
Moreover, the MD&A conveys our expectations of the potential impression of recognized
tendencies, occasions or uncertainties that will impression future outcomes. It's best to learn
this dialogue along side our Condensed Consolidated Monetary
Statements and associated notes included on this Quarterly Report on Kind 10-Q and
our Annual Report on Kind 10-Okay for the yr ended December 31, 2020 (the "2020
Kind 10-Okay"). Historic outcomes and share relationships are usually not essentially
indicative of working outcomes for future durations. References to "Gartner," the
"Firm," "we," "our" and "us" on this MD&A are to Gartner, Inc. and its
consolidated subsidiaries.

FORWARD-LOOKING STATEMENTS

Along with historic info, this Quarterly Report on Kind 10-Q
incorporates sure forward-looking statements inside the which means of Part 27A of
the Securities Act of 1933, as amended, and Part 21E of the Securities
Change Act of 1934, as amended. Ahead-looking statements are any statements
aside from statements of historic truth, together with statements concerning our
expectations, beliefs, hopes, intentions, projections or methods concerning
the longer term. In some instances, forward-looking statements might be recognized by the
use of phrases similar to "might," "will," "anticipate," "ought to," "might," "imagine,"
"plan," "anticipate," "estimate," "predict," "potential," "proceed" or different
phrases of comparable which means.

We function in a really aggressive and quickly altering setting that includes
quite a few recognized and unknown dangers and uncertainties, a few of that are past our
management. Though we imagine that the expectations mirrored in any of our
forward-looking statements are cheap, precise outcomes might differ
materially from these projected or assumed in any of our forward-looking
statements. Our future quarterly and annual revenues, working revenue, outcomes
of operations and money flows, in addition to any forward-looking assertion, are
topic to alter and to inherent dangers and uncertainties, similar to these
disclosed or integrated by reference in our filings with the Securities and
Change Fee. Necessary elements that might trigger our precise outcomes,
efficiency and achievements, or {industry} outcomes to vary materially from
estimates or projections contained in our forward-looking statements embrace,
amongst others, the next: uncertainty of the magnitude, period, geographic
attain and impression on the worldwide financial system of the COVID-19 pandemic; the present,
and unsure future, impression of the COVID-19 pandemic and governments' responses
to it on our enterprise, development, popularity, projections, prospects, monetary
situation, operations, money flows, and liquidity; the adequacy or effectiveness
of steps we take to reply to the disaster, together with price discount or different
mitigation packages; our means to get better potential claims below our occasion
cancellation insurance coverage; the timing of conferences and conferences, specifically
our Gartner Symposium/Xpo sequence that usually happens throughout the fourth quarter,
in addition to the timing of our return to in-person conferences and conferences and
willingness of members to attend; our means to realize and successfully
handle development, together with our means to combine our acquisitions and
consummate and combine future acquisitions; our means to pay our debt
obligations; our means to take care of and broaden our services; our
means to broaden or retain our buyer base; our means to develop or maintain
income from particular person prospects; our means to draw and retain a
skilled employees of analysis analysts and consultants in addition to skilled
gross sales personnel upon whom we're dependent; our means to realize continued
buyer renewals and obtain new contract worth, backlog and deferred income
development in mild of aggressive pressures; our means to hold out our strategic
initiatives and handle related prices; our means to efficiently compete
with current opponents and potential new opponents; our means to implement
and shield our mental property rights; extra dangers related to
worldwide operations, together with overseas forex fluctuations; the UK's exit
from the European Union and its impression on our outcomes; the impression of
restructuring and different expenses on our companies and operations; cybersecurity
incidents; normal financial situations; modifications in macroeconomic and market
situations and market volatility (together with developments and volatility arising
from the COVID-19 pandemic), together with rates of interest and the impact on the
credit score markets and entry to capital; dangers related to the
creditworthiness, funds cuts, and shutdown of governments and companies; the
impression of modifications in tax coverage and heightened scrutiny from varied taxing
authorities globally; uncertainty from the anticipated discontinuance of LIBOR and
transition to every other rate of interest benchmark; modifications to legal guidelines and
rules; and different dangers and uncertainties detailed on this Kind 10-Q, our
most up-to-date Kind 10-Okay and different filings we make with the SEC. The potential
fluctuations in our working revenue might trigger period-to-period comparisons of
working outcomes to not be significant and will present an unreliable
indication of future working outcomes. An outline of the chance elements
related to our enterprise is included below "Threat Elements" in Merchandise 1A. of the
2020 Kind 10-Okay, which is integrated herein by reference.

Ahead-looking statements are topic to dangers, estimates and uncertainties
that might trigger precise outcomes to vary materially from these mentioned in, or
implied by, the forward-looking statements, and are at present, or sooner or later
might be, amplified by the COVID-19 pandemic. Elements which may trigger such a
distinction embrace, however are usually not restricted to, these listed above or described
below "Threat Elements" in Merchandise 1A of the 2020 Kind 10-Okay. Readers shouldn't place
undue reliance on these forward-looking statements, which replicate administration's
opinion solely as of the date on which they had been made. Ahead-looking
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the statements contained on this Quarterly Report on Kind 10-Q communicate solely as of the date hereof, and the forward-looking statements within the accompanying paperwork that are integrated by reference communicate solely as of the date thereof. Besides as required by legislation, we disclaim any obligation to evaluation or replace these forward-looking statements to replicate occasions or circumstances as they happen.

OVERVIEW OF ACTIVITIES

Gartner, Inc. (NYSE: IT) is the world's main analysis and advisory firm
and a member of the S&P 500. We equip enterprise leaders with indispensable
insights, recommendation and instruments to realize their mission-critical priorities immediately
and construct the profitable organizations of tomorrow. We imagine our unmatched
mixture of expert-led, practitioner-sourced and data-driven analysis steers
shoppers towards the correct choices on the problems that matter most. We're a
trusted advisor and an goal useful resource for greater than 14,000 enterprises in
greater than 100 international locations - throughout all main features, in each {industry} and
enterprise dimension.

We offer our services worldwide via three segments – Analysis, Conferences and Consulting, as described under.

• Analysis supplies dependable and goal info and recommendation on crucial management priorities in all useful areas of a enterprise via studies, briefing notes, proprietary instruments, entry to our analysis specialists , peer-to-peer networking companies and membership packages that empower our shoppers with organizational efficiency.

•Conferences supplies enterprise professionals throughout a company the
alternative to be taught, share and community. From our Gartner Symposium/Xpo sequence,
to industry-leading conferences targeted on particular enterprise roles and matters,
to peer-driven periods, our choices allow attendees to expertise the very best
of Gartner perception and recommendation.

•Consulting combines the ability of Gartner market-leading analysis with customized
evaluation and on-the-ground assist to assist chief info officers and different
senior executives driving technology-related strategic initiatives transfer
confidently from perception to motion.

Affect of COVID-19

The coronavirus illness ("COVID-19") pandemic has affected almost each area
on the earth and has created important uncertainties and disruption within the
international financial system. Gartner is intently monitoring the pandemic-related developments,
and our highest precedence is the well being and security of our associates, shoppers,
distributors, companions, and different stakeholders. We're working intently with our
shoppers to supply greatest in school COVID-19 associated analysis to help them in
reaching their mission crucial priorities.

Because of the COVID-19 pandemic, we've quickly closed Gartner workplaces
(together with our company headquarters) in the US, United Kingdom,
India, and several other different impacted areas around the globe and applied
important journey restrictions. Though we've plans to reopen most workplaces
within the fall of 2021, reopening is topic to many elements outdoors of our
management. Consequently, we can not predict for sure when or how we are going to start to
raise the actions put in place as a part of our enterprise continuity plans,
together with work at home protocols and journey restrictions. As of the date of
this submitting, we don't imagine our work at home protocol has affected our
inner controls over monetary reporting.

We've got seen destructive impacts to all of our segments with Conferences being the
most impacted. We cancelled all in-person conferences after the World Well being
Group's declaration of the COVID-19 pandemic in March 2020, and started
holding digital conferences throughout the second half of 2020. We held 5 digital
conferences throughout Q1 2021 and plan on holding a further 18 digital
conferences via August 2021. These digital conferences are anticipated to
end in considerably much less income and gross contribution than if that they had
been in-person, however we imagine they help in shopper retention and engagement. The
security of our associates and shoppers stays our high precedence so future
in-person conferences can be held solely after we decide the related impacts
of COVID-19 have sufficiently receded within the jurisdictions the place our conferences
are to be held. Operationally, we're planning to renew in-person conferences
beginning in September 2021.

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As of March 31, 2021, we had roughly $15 million recorded in Pay as you go
bills and different present property on the stability sheet associated to cancelled
conferences. We anticipate to get better nearly all of these and potential
termination prices for future conferences via both power majeure clauses in
our vendor contracts, different preparations with distributors or occasion cancellation
insurance coverage claims. For cancelled conferences, our occasion cancellation insurance coverage
allows us to obtain an quantity as much as the misplaced contribution margin per
convention plus incurred bills. Our occasion cancellation insurance coverage supplies up
to $170 million in protection for 2020 with the correct to reinstate that quantity one
time if these limits are utilized. The insurer has contested our proper to
reinstate limits and to incorporate in reinstated limits conferences cancelled due
to COVID-19. We're in litigation with the insurer on these points. The timing
of receiving the proceeds from these insurance coverage claims is unsure so we are going to
not report any insurance coverage claims in extra of bills incurred till the receipt
of the insurance coverage proceeds.

Our Analysis section has continued to expertise a slowdown as contract worth
(CV) development was 5.8% within the first quarter of 2021 in comparison with 10.5% within the first
quarter of 2020 on a overseas forex impartial foundation. CV development slowed late in
the primary quarter of 2020 as the worldwide virus response led to decrease new enterprise
development and decrease retention charges. CV development improved within the first quarter of
2021, in comparison with the second half of 2020. Since our income and CV have been
traditionally secure and predictable on account of our subscription-based
enterprise mannequin, we solely skilled a modest lower in Analysis income development
in 2020 and the primary quarter of 2021 in comparison with that in 2019. Slower CV development
in 2020 and the primary quarter of 2021 nonetheless will doubtless result in slower
analysis income development in 2021. Nonetheless, we imagine that our emphasis on
offering perception to enterprise leaders and their groups throughout each main
enterprise operate will proceed to drive shopper engagement and satisfaction with
our Analysis merchandise.

Our Consulting section was solely reasonably impacted by the COVID-19 pandemic as
many engagements are being carried out by associates working remotely. Labor based mostly
consulting weakened late within the first quarter of 2020 as a result of pandemic. This
weak spot continued within the the rest of 2020. Labor based mostly consulting income
improved within the first quarter of 2021 to pre-pandemic ranges.

In response to the pandemic's impacts to our enterprise, we applied price
avoidance initiatives within the first half of 2020 together with important
limitations on hiring and third-party spending, reductions to discretionary
spending and elimination of non-essential journey and re-prioritization of
capital expenditures. We started to revive sure investments within the enterprise
throughout the second half of 2020 and we anticipate these investments to extend in
2021 and future durations.


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BUSINESS MEASURES

We imagine the next enterprise metrics are necessary efficiency indicators for our enterprise segments:

BUSINESS SEGMENT                      BUSINESS MEASUREMENT
Analysis                              Complete contract worth represents the 

worth attributable to all of our

                                      subscription-related contracts. It's 

calculated because the annualized worth

                                      of all contracts in impact at a 

exact second in time, with out regard

                                      to the period of the contract. 

The full worth of the contract primarily consists of

                                      Analysis deliverables for which 

the turnover is acknowledged in response to a tariff

                                      foundation, in addition to different deliverables 

(primarily convention tickets) for

                                      which income is acknowledged when the 

deliverable is used. Evaluating

                                      contract worth year-over-year not 

solely measures the short-term development of

                                      our enterprise, but additionally indicators the 

long-term well being of our analysis

                                      subscription enterprise because it 

measures revenue that may be very prone to

                                      recur over a multi-year interval. Our 

the entire worth of the contract consists of

                                      International Know-how Gross sales contract 

worth, which incorporates gross sales to customers

                                      and suppliers of expertise, and 

International Enterprise Gross sales contract worth,

                                      which incorporates gross sales to all different 

useful leaders.

                                      Consumer retention price represents a 

measuring buyer satisfaction and

                                      renewed enterprise relationships at a 

exact second in time. Buyer

                                      retention is calculated on a 

as a share by dividing our

                                      shoppers, who had been additionally shoppers a yr 

there are, by all prospects for one yr

                                      in the past. Consumer retention is calculated at an enterprise degree, which
                                      represents a single firm or buyer.

                                      Pockets retention price represents a

measure of contract quantity

                                      worth we've retained with shoppers 

over a twelve month interval. Pockets

                                      retention is calculated on a 

share foundation by dividing the contract

                                      worth of our present shoppers, who

had been additionally prospects a yr in the past, by the

                                      whole contract worth from a yr in the past, 

excluding the impression of

                                      forex trade. When pockets 

retention exceeds buyer retention, it’s

                                      a sign of retention of 

prospects who spend extra, or have elevated

                                      spending by retained shoppers, or 

each. The portfolio retention is calculated at

                                      an enterprise degree, which represents 

a single firm or buyer.

Conferences                           Variety of vacation spot conferences 

represents the entire variety of visitors

                                      digital or in-person conferences 

accomplished throughout the interval. Solely

                                      day, native conferences are excluded.

                                      Variety of vacation spot conferences 

members represents the entire quantity

                                      of individuals who attend digital or 

in-person conferences. Someday, native

                                      conferences are excluded.

Consulting                            Consulting backlog represents future income to be derived from
                                      in-process consulting and measurement engagements.

                                      Utilization price represents a measure of productiveness of our
                                      consultants. Utilization charges are

calculated for headcount billable on

                                      a share foundation by dividing whole hours billed by whole hours
                                      out there to invoice.

                                      Billing price represents earned

billable income divided by whole

                                      billable hours.

                                      Common annualized income per 

billable headcount is a measure

                                      of the income producing means of 

a median billable marketing consultant and

                                      is calculated periodically by 

multiplying the common billing price by

                                      hour instances the utilization share 

instances billable hours out there

                                      for one yr.



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EXECUTIVE SUMMARY OF OPERATIONS AND FINANCIAL POSITION

The basics of our technique embrace a deal with creating extraordinary analysis views, delivering revolutionary and extremely differentiated product choices, constructing a powerful gross sales capability, offering world-class customer support. with a deal with buyer engagement and retention, and steady enchancment of our operational effectivity.

We had whole revenues of $1.1 billion throughout the first quarter of 2021, an
enhance of 8% in comparison with the primary quarter of 2020. In the course of the first quarter
of 2021 revenues for Analysis elevated by 8% year-over-year, whereas Conferences
and Consulting revenues elevated by 79% and 4%, respectively. For a extra
full dialogue of our outcomes by section, see Phase Outcomes under.

For the primary quarter of 2021 and 2020, we had web revenue of $164.1 million and
$75.1 million, respectively, and diluted revenue per share of $1.84 and $0.83,
respectively. Money supplied by working actions was $157.3 million and $55.7
million throughout the three months ended March 31, 2021 and 2020, respectively. As
of March 31, 2021, we had $446.0 million of money and money equivalents and
roughly $1.0 billion of accessible borrowing capability on our revolving
credit score facility. For a extra full dialogue of our money flows and monetary
place, see the Liquidity and Capital Assets part under.

SIGNIFICANT ACCOUNTING POLICIES AND ESTIMATES

For info concerning our crucial accounting insurance policies and estimates, please
confer with Half II, Merchandise 7, "Crucial Accounting Insurance policies and Estimates" contained
in our Annual Report on Kind 10-Okay for the fiscal yr ended December 31, 2020.
There have been no materials modifications to the crucial accounting insurance policies
beforehand disclosed in that report.

RECENTLY ISSUED ACCOUNTING STANDARDS

The FASB has issued accounting requirements that haven't but grow to be efficient and
that will impression the Firm's consolidated monetary statements or its
disclosures in future durations. Word 1 - Enterprise and Foundation of Presentation in
the Notes to Condensed Consolidated Monetary Statements supplies info
concerning these accounting requirements.

RESULTS OF OPERATIONS
Consolidated Outcomes
Along with GAAP outcomes, we offer overseas forex impartial greenback quantities
and percentages for our revenues, sure bills, contract values and different
metrics. These overseas forex impartial greenback quantities and percentages remove
the consequences of trade price fluctuations and thus present a extra correct and
significant pattern within the underlying knowledge being measured. We calculate overseas
forex impartial greenback quantities by changing the underlying quantities in native
forex for various durations into U.S. {dollars} by making use of the identical overseas
trade charges to all durations offered.
The desk under presents an evaluation of chosen line objects and
period-over-period modifications in our interim Condensed Consolidated Statements of
Operations for the durations indicated (in 1000's).

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                                              Three Months           Three Months                                     Enhance
                                            Ended March 31,        Ended March 31,            Enhance               (Lower)
                                                  2021                   2020               (Lower)                   %
Complete revenues                              $   1,104,038$   1,018,891$     85,147                          8  %
Prices and bills:
Value of companies and product growth          334,467                341,278                (6,811)                        (2)
Promoting, normal and administrative               487,255                496,639                (9,384)                        (2)
Depreciation                                       25,750                 22,517                 3,233                         14
Amortization of intangibles                        30,514                 32,179                (1,665)                        (5)
Acquisition and integration expenses                   640                  1,560                  (920)                       (59)
Working revenue                                  225,412                124,718               100,694                         81
Curiosity expense, web                             (26,149)               (26,349)                 (200)                        (1)

Different revenue (expense), web                        15,490                 (1,515)               17,005                            nm
Much less: Provision for revenue taxes                   50,653                 21,757                28,896                        133
Internet revenue                                  $     164,100$      75,097$     89,003                        119  %
nm = not significant





Complete revenues for the three months ended March 31, 2021 had been $1.1 billion, an
enhance of $85.1 million, or 8% in comparison with the identical interval in 2020 on a
reported foundation and 6% excluding the overseas forex impression. Consult with the
part of this MD&A under entitled "  Phase Outcomes  " for a dialogue of
revenues and outcomes by section.

Value of companies and product growth was $334.5 million throughout the three
months ended March 31, 2021, a lower of $6.8 million in comparison with the identical
interval in 2020, or 2% on a reported foundation and 4% excluding the overseas forex
impression. The lower in Value of companies and product growth was primarily
as a result of decrease journey and leisure prices throughout the quarter in addition to the
continuation of assorted price avoidance initiatives. Value of companies and product
growth as a % of revenues was 30% and 33% throughout the three months
ended March 31, 2021 and 2020, respectively.

Promoting, normal and administrative ("SG&A") expense was $487.3 million throughout
the three months ended March 31, 2021, a lower of $9.4 million in comparison with
the identical interval in 2020, or 2% on a reported foundation and 4% excluding the overseas
forex impression. The lower in SG&A expense was primarily as a result of lowered
conferences associated bills, amenities prices and journey and leisure
prices in addition to the continuation of assorted price avoidance initiatives,
partially offset by the restoration of some compensation and advantages packages
for the three months ended March 31, 2021. The variety of quota-bearing gross sales
associates in International Know-how Gross sales decreased 6% to 2,992 and in International
Enterprise Gross sales elevated by 1% to 867 in comparison with March 31, 2020. On a mixed
foundation, the entire variety of quota-bearing gross sales associates decreased by 5% when
in comparison with March 31, 2020. SG&A expense as a % of revenues was 44% and
49% throughout the three months ended March 31, 2021 and 2020, respectively.

Depreciation elevated 14% within the three months ended March 31, 2021, in comparison with the identical interval in 2020. The rise for the three months ended
March 31, 2021 was as a result of extra investments, together with new leasehold enhancements as extra workplace area got here into service, and software program capitalization.

Amortization of intangible property decreased by 5% within the three months ended
March 31, 2021, in comparison with the identical interval in 2020 as a result of sure intangible property which had been totally amortized in 2020.

Acquisition and integration prices decreased by $ 0.9 million throughout the three months ended March 31, 2021, in comparison with the identical interval in 2020.

Working revenue was $225.4 million and $124.7 million throughout the three months
ended March 31, 2021 and 2020, respectively. The rise in working revenue
was as a result of elevated income, along with lowered Prices of companies and
product growth and SG&A bills.

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Curiosity expense, web decreased by $0.2 million throughout the three months ended
March 31, 2021, in comparison with the identical interval in 2020. The lower was primarily
as a result of a discount in excellent debt, partially offset by increased weighted
common annual efficient charges, on account of curiosity expense on our
de-designated swaps.

Different revenue (expense), web for the durations offered herein included the online
impression of overseas forex beneficial properties and losses from our hedging actions. Throughout
2021, Different (expense) revenue, web additionally included a $15.8 million achieve on
de-designated rate of interest swaps.

The supply for revenue taxes for the three months ended March 31, 2021 and
2020 was an expense of $50.7 million and $21.8 million, respectively. The
efficient revenue tax price was an expense of 23.6% and 22.5% for the three months
ended March 31, 2021 and 2020, respectively. The quarter-over-quarter enhance
within the efficient revenue tax price was primarily as a result of shifts in estimated
geographical mixture of earnings in addition to the relative impression of tax advantages from
stock-based compensation.

Internet revenue for the three months ended March 31, 2021 and 2020 was $164.1 million
and $75.1 million, respectively. Our diluted web revenue per share throughout the
three months ended March 31, 2021 elevated by $1.01 in comparison with the identical interval
in 2020. The rise in web revenue throughout the three months ended March 31, 2021
was primarily the results of elevated revenues, lowered working bills and
the achieve from de-designated rate of interest swaps, partially offset by a rise
in revenue tax expense.

SEGMENT RESULTS

We consider reportable section efficiency and allocate assets based mostly on gross
contribution margin. Gross contribution is outlined as working revenue or loss
excluding sure Value of companies and product growth bills, SG&A
bills, Depreciation, Amortization of intangibles, and Acquisition and
integration expenses. Gross contribution margin is outlined as gross contribution
as a % of revenues.

Reportable Segments

The segments of the corporate to current are as follows:

• Analysis supplies dependable and goal info and recommendation on mission-critical priorities for leaders in all useful areas of a enterprise via studies, briefings, proprietary instruments, entry to our specialists in analysis, peer networking companies and membership packages that empower our shoppers to drive organizational efficiency.

•Conferences supplies enterprise professionals throughout a company the
alternative to be taught, share and community. From our Gartner Symposium/Xpo sequence,
to industry-leading conferences targeted on particular enterprise roles and matters,
to peer-driven periods, our choices allow attendees to expertise the very best
of Gartner perception and recommendation.

•Consulting combines the ability of Gartner market-leading analysis with customized
evaluation and on-the-ground assist to assist chief info officers and different
senior executives driving technology-related strategic initiatives transfer
confidently from perception to motion.

The sections under current the outcomes of the three reportable enterprise segments of the corporate.

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Analysis
                                                   As Of And For The            As Of And For The                                   Proportion
                                                   Three Months Ended           Three Months Ended           Enhance                Enhance
                                                     March 31, 2021               March 31, 2020            (Lower)              (Lower)
Monetary Measurements:
Revenues (1)                                     $       979,732$       909,291$   70,441                          8  %
Gross contribution (1)                           $       724,372$       653,469$   70,903                         11  %
Gross contribution margin                                     74      %                    72      %            2 factors                       -
Enterprise Measurements:
International Know-how Gross sales (2):
Contract worth (1), (3)                          $     2,991,000$     2,862,000$  129,000                          5  %
Consumer retention                                              83      %                    82      %             1 level                       -
Pockets retention                                              98      %                   104      %          (6) factors                       -
International Enterprise Gross sales (2):
Contract worth (1), (3)                          $       731,000$       655,000$   76,000                         12  %
Consumer retention                                              84      %                    83      %             1 level                       -
Pockets retention                                             105      %                   101      %            4 factors                       -





(1){Dollars} in 1000's.
(2)International Know-how Gross sales consists of gross sales to customers and suppliers of expertise.
International Enterprise Gross sales consists of gross sales to all different useful leaders.
(3)Contract values are on a overseas trade impartial foundation. Contract values as
of March 31, 2020 have been calculated utilizing the identical overseas forex charges as
2021.

Analysis revenues elevated by $70.4 million throughout the three months ended
March 31, 2021 in comparison with the identical interval in 2020, or 8% on a reported foundation
and 5% excluding the overseas forex impression. The section gross contribution
margin was 74% and 72% throughout the three months ended March 31, 2021 and 2020,
respectively. The rise in revenues throughout 2021 was primarily as a result of identical
elements driving the pattern in our Analysis contract worth, that are mentioned
under. The development in margin of two factors for the three months ended
March 31, 2021 in comparison with prior yr was primarily as a result of development in income
and a decline in journey and leisure bills as a result of COVID-19 journey
restrictions.

Complete contract worth elevated to $3.7 billion at March 31, 2021, or 6% in contrast
to March 31, 2020 on a overseas forex impartial foundation. International Know-how Gross sales
("GTS") contract worth elevated by 5% at March 31, 2021 when in comparison with
March 31, 2020. The rise in GTS contract worth was primarily as a result of new
enterprise from new and current shoppers. International Enterprise Gross sales ("GBS") contract
worth elevated by 12% year-over-year, additionally primarily pushed by new enterprise
from new and current shoppers.

GTS shopper retention was 83% and 82% as of March 31, 2021 and 2020,
respectively, whereas pockets retention was 98% and 104%, respectively. The
lower in GTS pockets retention was primarily as a result of decreased spending by
enterprises that had been shoppers a yr in the past. GBS shopper retention was 84% and 83%
as of March 31, 2021 and 2020, respectively, whereas pockets retention was 105% and
101%, respectively. The rise in GBS pockets retention was largely as a result of
elevated spending by current shoppers. The variety of GTS shopper enterprises
elevated by 3% when in comparison with prior yr, whereas GBS shopper enterprises
declined by 6% at March 31, 2021 when in comparison with March 31, 2020.


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Conferences
                                                  As Of And For The            As Of And For The                                    Proportion
                                                  Three Months Ended           Three Months Ended            Enhance                Enhance
                                                    March 31, 2021               March 31, 2020             (Lower)              (Lower)
Monetary Measurements:
Revenues (1)                                    $       24,802$       13,870$    10,932                         79  %
Gross contribution (1)                          $       13,896$       (6,060)$    19,956                            nm
Gross contribution margin                                   56       %                  (44)      %                   nm                       -
Enterprise Measurements:
Variety of vacation spot conferences (2)                        5                            5                         -                          -  %
Variety of vacation spot conferences attendees (2)          5,382                        3,364                     2,018                         60  %


nm = not significant


(1){Dollars} in 1000's.
(2)Consists of each digital and in-person conferences. Single day, native conferences
are excluded.

In response to the COVID-19 pandemic, we cancelled all in-person conferences
from March 2020 via a minimum of August 2021, and pivoted to producing digital
conferences with a deal with maximizing the worth we ship to our shoppers. We
held 5 digital conferences throughout the three months ended March 31, 2021, and
plan on holding 18 digital conferences via August 2021. Operationally, we
are planning to renew in-person conferences beginning in September 2021. We
started holding digital Evanta conferences throughout the second quarter of 2020.
Conferences revenues elevated by $10.9 million throughout the three months ended
March 31, 2021 in comparison with the identical interval in 2020, or 79% on a reported foundation
and 68% excluding the overseas forex impression. The rise in revenues was
primarily as a result of the usage of ticket entitlements which we prolonged from 2020 due
to the pandemic. Gross contribution elevated to $13.9 million throughout the three
months ended March 31, 2021 in comparison with a lack of $6.1 million in the identical
interval final yr.

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Consulting
                                                   As Of And For The            As Of And For The                                    Proportion
                                                   Three Months Ended           Three Months Ended            Enhance                Enhance
                                                     March 31, 2021               March 31, 2020             (Lower)              (Lower)
Monetary Measurements:
Revenues (1)                                     $       99,504$       95,730$     3,774                          4  %
Gross contribution (1)                           $       39,098$       29,382$     9,716                         33  %
Gross contribution margin                                    39       %                   31       %             8 factors                       -
Enterprise Measurements:
Backlog (1), (2)                                 $      116,500$      113,100$     3,400                          3  %
Billable headcount                                          744                          808                       (64)                        (8) %
Guide utilization                                       68       %                   62       %             6 factors                       -
Common annualized income per billable
headcount (1)                                    $          387               $          367               $        20                          5  %





(1){Dollars} in 1000's.
(2)Backlog is on a overseas trade impartial foundation. Backlog as of March 31, 2020
has been calculated utilizing the identical overseas forex charges as 2021.

Consulting revenues elevated 4% throughout the three months ended March 31, 2021
in comparison with the identical interval in 2020 on a reported foundation and had been flat excluding
the overseas forex impression, with a income enhance in labor-based consulting
of 4%, and a rise in contract optimization of 6%, every on a reported foundation.
Contract optimization income might fluctuate considerably and, as such, revenues for
the primary quarter of 2021 will not be indicative of outcomes for the rest of
2021 or past. The section gross contribution margin was 39% and 31% for the
three months ended March 31, 2021 and 2020, respectively. The rise in gross
contribution margin throughout the first quarter of 2021 was primarily as a result of
enhance in income, in addition to advantages derived from sure cost-reduction
initiatives applied in 2020, together with a decline in journey and leisure
bills as a result of COVID-19 journey restrictions. Guide utilization elevated
by 6 factors throughout the three months ended March 31, 2021 in comparison with the identical
interval in 2020 as a result of a discount in billable headcount.

Backlog elevated by $3.4 million, or 3%, from March 31, 2020 to March 31, 2021
on a overseas forex impartial foundation. The $116.5 million of backlog at March 31,
2021 represented roughly 4 months of backlog, which is in step with the
Firm's operational goal.


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LIQUIDITY AND CAPITAL RESOURCES

We finance our operations via money generated from our working actions
and borrowings. Word 7 - Debt within the Notes to Condensed Consolidated Monetary
Statements supplies extra info concerning the Firm's excellent
debt obligations. At March 31, 2021, we had $446.0 million of money and money
equivalents and roughly $1.0 billion of accessible borrowing capability on
the revolving credit score facility below our 2020 Credit score Settlement. We imagine that
the Firm has sufficient liquidity to fulfill its at present anticipated wants for
a minimum of the following twelve months.

We've got traditionally generated important money flows from our working
actions. Our working money stream has been repeatedly maintained by the
leverage traits of our subscription-based enterprise mannequin in our
Analysis section, which is our largest enterprise section and traditionally has
constituted a good portion of our whole revenues. The vast majority of our
Analysis buyer contracts are paid upfront and, mixed with a powerful
buyer retention price and excessive incremental margins, has resulted in
repeatedly robust working money stream. Money stream technology has additionally benefited
from our ongoing efforts to enhance the working efficiencies of our companies
in addition to a deal with the optimum administration of our working capital as we
enhance gross sales.

Our money and money equivalents are held in quite a few areas all through the
world with 73% held abroad at March 31, 2021. We intend to reinvest
considerably all of our gathered undistributed overseas earnings, besides in
situations the place repatriation would end in minimal extra tax. Consequently
of the U.S. Tax Cuts and Jobs Act of 2017, we imagine that the revenue tax impression
if such earnings had been repatriated can be minimal.

The desk under summarizes the modifications within the Firm’s money balances for the durations indicated (in 1000’s).

                                                          Three Months          Three Months
                                                         Ended March 31,       Ended March 31,         Enhance
                                                              2021                  2020              (Lower)
Money supplied by working actions                    $    157,298$     55,749$  101,549
Money utilized in investing actions                             (12,521)              (24,536)             12,015
Money utilized in financing actions                            (403,220)              (68,490)           (334,730)
Internet lower in money and money equivalents                    (258,443)              (37,277)           (221,166)
Results of trade charges                                      (8,145)              (15,709)              7,564
Starting money and money equivalents                           712,583               280,836             431,747
Ending money and money equivalents                         $    445,995$    227,850$  218,145



Working

Money supplied by working actions was $157.3 million and $55.7 million
throughout the three months ended March 31, 2021 and 2020, respectively. The
year-over-year enhance was primarily as a result of increased pre-tax revenue within the 2021
interval and a rise in deferred revenues ensuing from elevated bookings in
Analysis, partially offset by increased bonus funds made in 2021 associated to
2020.

Make investments

Money utilized in investing actions was $12.5 million and $24.5 million throughout the
three months ended March 31, 2021 and 2020, respectively. The money utilized in each
durations was for capital expenditures. The lower from 2020 to 2021 was the
results of lowered capital spending in response to the COVID-19 pandemic.

Funding

Money utilized in financing actions was $403.2 million and $68.5 million throughout
the three months ended March 31, 2021 and 2020, respectively. In the course of the 2021
interval, we repaid a web $5.0 million on our revolving credit score facility below the
2020 Credit score Settlement, paid a web $5.1 million in debt principal repayments and
used $398.5 million of money for share repurchases. In the course of the 2020 interval, the
Firm borrowed a web $27.0 million on our then current revolving credit score
facility, paid a web $28.0 million in debt principal repayments and paid $73.2
million for share repurchases.


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Debt

As of March 31, 2021, the Firm had $2.0 billion of principal quantity of debt
excellent, of which $15.4 million is to be repaid within the the rest of fiscal
yr 2021. Word 7 - Debt within the Notes to Condensed Consolidated Monetary
Statements supplies extra info concerning the Firm's excellent
debt obligations. Occasionally, the Firm might search to retire or
repurchase its excellent debt via varied strategies together with open market
repurchases, negotiated block transactions, or in any other case, all or a few of which
could also be effected via Rule 10b5-1 plans. Such transactions, if any, rely upon
prevailing market situations, our liquidity and capital necessities,
contractual restrictions, and different elements, and will contain materials quantities.

OFF-BALANCE SHEET ARRANGEMENTS

From January 1, 2021 via March 31, 2021, the Firm has not entered into
any materials off-balance sheet preparations or transactions with unconsolidated
entities or different individuals.

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