The Register Citizen (Torrington, CT)
Gartner revenues drop as conference business hit hard
STAMFORD — Consulting and research firm Gartner on Tuesday reported declining revenues and profits for the past quarter as it dealt with the temporary evaporation of its conference business during the coronavirus crisis.
The Stamford-based company saw its second-quarter revenues decrease 9 percent year-over-year to $973 million. The drop in returns drove a plunge in profits to $55 million, compared with $103 million a year ago.
“We had a strong second quarter despite the challenging macroeconomic environment,” Gartner CEO Gene Hall said in a statement. “Leaders across the enterprise are facing more disruptive change than ever before, and Gartner is the best source of help for these leaders.”
Following the release of the results, Gartner shares were trading midday Tuesday at about $127, up 1 percent from their Monday finish.
Amid temporary economic shutdowns across the country, Gartner recorded only a few hundred thousand dollars in conference revenues in the past quarter, compared with $141 million in the same period last year.
In late March, the company announced that it was canceling or postponing all of its conferences that it had scheduled for April through August, in response to the coronavirus pandemic.
Gartner has estimated that it would miss out on a total of about $180 million in conference revenues in the second and third quarters of this year.
Consulting revenues dipped 6 percent to $98 million.
Research revenues were a bright spot, increasing 6 percent to $875 million.
To help offset the lost revenues, Gartner has said it was implementing several programs that would save a total of at least $200 million if kept in place through the end of this year. Those initiatives include reductions to travel, new hires, and capital expenditures.
Looking ahead to the remainder of the year, Hall said “we’ve restored targeted spending to ensure we’re well-positioned for long-term growth coming out of the downturn.”
Gartner, No. 621 on this year’s Fortune 500 list, is headquartered at 56 Top Gallant Road in Stamford’s Waterside section.