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Stockholders' Equity
 9 Months Ended
Sep. 30, 2023
Equity [Abstract]  
Stockholders' Equity

Note 12 — Stockholders’ Equity

The components of stockholders’ equity are as follows (in thousands):

 

Three Months Ended September 30, 2023

 

 

Common Stock

 

 

 

 

 

 

 

 

Treasury Stock

 

 

Accumulated

 

 

 

 

 

Number
of
Shares

 

 

$0.01ParValue

 

 

Additional
Paid-in
Capital

 

 

Retained
Earnings

 

 

Number
of
Shares

 

 

Cost

 

 

Other
Comprehensive
Income (Loss)

 

 

Total
Stockholders'
Equity

 

Balance at June 30, 2023

 

24,512

 

 

$

245

 

 

$

269,371

 

 

$

175,860

 

 

 

5,332

 

 

$

(207,887

)

 

$

(5,944

)

 

$

231,645

 

Issuance of common stock under
   stock plans, including tax effects

 

160

 

 

 

2

 

 

 

282

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

284

 

Repurchases of common stock

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

105

 

 

 

(3,262

)

 

 

—

 

 

 

(3,262

)

Stock-based compensation expense

 

—

 

 

 

—

 

 

 

4,144

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

4,144

 

Net income

 

—

 

 

 

—

 

 

 

—

 

 

 

2,484

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2,484

 

Net change in marketable investments,
   net of tax

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

30

 

 

 

30

 

Foreign currency translation

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(2,435

)

 

 

(2,435

)

Balance at September 30, 2023

 

24,672

 

 

$

247

 

 

$

273,797

 

 

$

178,344

 

 

 

5,437

 

 

$

(211,149

)

 

$

(8,349

)

 

$

232,890

 

 

 

Three Months Ended September 30, 2022

 

 

Common Stock

 

 

 

 

 

 

 

 

Treasury Stock

 

 

Accumulated

 

 

 

 

 

Number
of
Shares

 

 

$0.01
Par
Value

 

 

Additional
Paid-in
Capital

 

 

Retained
Earnings

 

 

Number
of
Shares

 

 

Cost

 

 

Other
Comprehensive
Income (Loss)

 

 

Total
Stockholders'
Equity

 

Balance at June 30, 2022

 

24,159

 

 

$

242

 

 

$

254,937

 

 

$

170,847

 

 

 

5,305

 

 

$

(207,067

)

 

$

(8,860

)

 

$

210,099

 

Issuance of common stock under
   stock plans, including tax effects

 

193

 

 

 

2

 

 

 

(501

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(499

)

Stock-based compensation expense

 

—

 

 

 

—

 

 

 

3,905

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

3,905

 

Net income

 

—

 

 

 

—

 

 

 

—

 

 

 

5,414

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

5,414

 

Net change in interest rate swap,
   net of tax

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(5

)

 

 

(5

)

Net change in marketable investments,
   net of tax

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(54

)

 

 

(54

)

Foreign currency translation

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(4,971

)

 

 

(4,971

)

Balance at September 30, 2022

 

24,352

 

 

$

244

 

 

$

258,341

 

 

$

176,261

 

 

 

5,305

 

 

$

(207,067

)

 

$

(13,890

)

 

$

213,889

 

 

 

Nine Months Ended September 30, 2023

 

 

Common Stock

 

 

 

 

 

 

 

 

Treasury Stock

 

 

Accumulated

 

 

 

 

 

Number
of
Shares

 

 

$0.01
Par
Value

 

 

Additional
Paid-in
Capital

 

 

Retained
Earnings

 

 

Number
of
Shares

 

 

Cost

 

 

Other
Comprehensive
Income (Loss)

 

 

Total
Stockholders'
Equity

 

Balance at December 31, 2022

 

24,367

 

 

$

244

 

 

$

261,766

 

 

$

174,631

 

 

 

5,305

 

 

$

(207,067

)

 

$

(7,918

)

 

$

221,656

 

Issuance of common stock under
   stock plans, including tax effects

 

305

 

 

 

3

 

 

 

862

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

865

 

Repurchases of common stock

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

132

 

 

 

(4,082

)

 

 

—

 

 

 

(4,082

)

Stock-based compensation expense

 

—

 

 

 

—

 

 

 

11,169

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

11,169

 

Net income

 

—

 

 

 

—

 

 

 

—

 

 

 

3,713

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

3,713

 

Net change in marketable investments,
   net of tax

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

52

 

 

 

52

 

Foreign currency translation

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(483

)

 

 

(483

)

Balance at September 30, 2023

 

24,672

 

 

$

247

 

 

$

273,797

 

 

$

178,344

 

 

 

5,437

 

 

$

(211,149

)

 

$

(8,349

)

 

$

232,890

 

 

 

 

Nine Months Ended September 30, 2022

 

 

Common Stock

 

 

 

 

 

 

 

 

Treasury Stock

 

 

Accumulated

 

 

 

 

 

Number
of
Shares

 

 

$0.01
Par
Value

 

 

Additional
Paid-in
Capital

 

 

Retained
Earnings

 

 

Number
of
Shares

 

 

Cost

 

 

Other
Comprehensive
Income (Loss)

 

 

Total
Stockholders'
Equity

 

Balance at December 31, 2021

 

24,085

 

 

$

241

 

 

$

245,985

 

 

$

152,825

 

 

 

5,027

 

 

$

(191,955

)

 

$

(3,189

)

 

$

203,907

 

Issuance of common stock under
   stock plans, including tax effects

 

267

 

 

 

3

 

 

 

1,320

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,323

 

Repurchases of common stock

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

278

 

 

 

(15,112

)

 

 

—

 

 

 

(15,112

)

Stock-based compensation expense

 

—

 

 

 

—

 

 

 

11,036

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

11,036

 

Net income

 

—

 

 

 

—

 

 

 

—

 

 

 

23,436

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

23,436

 

Net change in interest rate swap,
   net of tax

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

259

 

 

 

259

 

Net change in marketable investments,
   net of tax

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(147

)

 

 

(147

)

Foreign currency translation

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(10,813

)

 

 

(10,813

)

Balance at September 30, 2022

 

24,352

 

 

$

244

 

 

$

258,341

 

 

$

176,261

 

 

 

5,305

 

 

$

(207,067

)

 

$

(13,890

)

 

$

213,889

 

Equity Plans

 

Restricted stock unit activity for the nine months ended September 30, 2023 is presented below (in thousands, except per share data):

 

 

 

 

 

Weighted-

 

 

 

 

 

 

Average

 

 

 

Number of

 

 

Grant Date

 

 

 

Shares

 

 

Fair Value

 

Unvested at December 31, 2022

 

 

682

 

 

$

46.28

 

Granted

 

 

625

 

 

 

33.34

 

Vested

 

 

(256

)

 

 

45.33

 

Forfeited

 

 

(99

)

 

 

43.24

 

Unvested at September 30, 2023

 

 

952

 

 

$

38.36

 

 

Stock option activity for the nine months ended September 30, 2023 is presented below (in thousands, except per share data and contractual term):

 

 

 

 

 

Weighted -

 

 

Weighted -

 

 

 

 

 

 

 

 

 

Average

 

 

Average

 

 

 

 

 

 

 

 

 

Exercise

 

 

Remaining

 

 

Aggregate

 

 

 

Number

 

 

Price Per

 

 

Contractual

 

 

Intrinsic

 

 

 

of Shares

 

 

Share

 

 

Term (in years)

 

 

Value

 

Outstanding at December 31, 2022

 

 

89

 

 

$

35.58

 

 

 

 

 

 

 

Granted

 

 

144

 

 

 

33.04

 

 

 

 

 

 

 

Exercised

 

 

(2

)

 

 

34.37

 

 

 

 

 

 

 

Forfeited

 

 

(27

)

 

 

34.23

 

 

 

 

 

 

 

Outstanding at September 30, 2023

 

 

204

 

 

$

33.98

 

 

 

6.52

 

 

$

—

 

Exercisable at September 30, 2023

 

 

75

 

 

$

35.58

 

 

 

1.57

 

 

$

—

 

Vested and expected to vest at September 30, 2023

 

 

204

 

 

$

33.98

 

 

 

6.52

 

 

$

—

 

In May 2023, stockholders of the Company approved the amendment and restatement of the Forrester Research, Inc. Amended and Restated Equity Incentive Plan (the “Amended and Restated Equity Incentive Plan”), pursuant to which the number of shares available for purchase was increased by 3,500,000 shares.

Stock-Based Compensation

Forrester recognizes the fair value of stock-based compensation over the requisite service period of the individual grantee, which generally equals the vesting period. Stock-based compensation was recorded in the following expense categories in the Consolidated Statements of Operations (in thousands):

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Cost of services and fulfillment

 

$

2,449

 

 

$

2,268

 

 

$

6,505

 

 

$

6,397

 

Selling and marketing

 

 

790

 

 

 

743

 

 

 

2,094

 

 

 

2,128

 

General and administrative

 

 

905

 

 

 

894

 

 

 

2,570

 

 

 

2,511

 

Total

 

$

4,144

 

 

$

3,905

 

 

$

11,169

 

 

$

11,036

 

 

Forrester utilizes the Black-Scholes valuation model for estimating the fair value of options granted under the equity incentive plans and shares subject to purchase under the employee stock purchase plan, which were valued using the following assumptions:

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

 

 

Equity Incentive Plans

 

 

Employee Stock Purchase Plan

 

 

Employee Stock Purchase Plan

 

 

Equity Incentive Plans

 

 

Employee Stock Purchase Plan

 

 

Employee Stock Purchase Plan

 

Average risk-free interest rate

 

 

4.27

%

 

 

5.51

%

 

 

3.71

%

 

 

4.27

%

 

 

5.51

%

 

 

3.71

%

Expected dividend yield

 

 

0.0

%

 

 

0.0

%

 

 

0.0

%

 

 

0.0

%

 

 

0.0

%

 

 

0.0

%

Expected life

 

4.75 Years

 

 

0.5 Years

 

 

0.5 Years

 

 

4.75 Years

 

 

0.5 Years

 

 

0.5 Years

 

Expected volatility

 

 

43

%

 

 

35

%

 

 

33

%

 

 

43

%

 

 

35

%

 

 

33

%

Weighted average fair value

 

$

14.24

 

 

$

7.90

 

 

$

10.22

 

 

$

14.24

 

 

$

7.90

 

 

$

10.22

 

 

Treasury Stock

As of September 30, 2023, Forrester’s Board of Directors had authorized an aggregate $585.0 million to purchase common stock under its stock repurchase program. The shares repurchased may be used, among other things, in connection with Forrester’s equity incentive and purchase plans. During each of the three and nine months ended September 30, 2023, the Company repurchased approximately 0.1 million shares of common stock at an aggregate cost of approximately $3.3 and $4.1 million, respectively. During the three and nine months ended September 30, 2022, the Company repurchased approximately 0.3 million shares of common stock at an aggregate cost of approximately $15.1 million. From the inception of the program through September 30, 2023, the Company repurchased 17.1 million shares of common stock at an aggregate cost of $514.1 million.