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Operating Segment and Enterprise Wide Reporting
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Operating Segment and Enterprise Wide Reporting

Note 14 – Operating Segment and Enterprise Wide Reporting

The Company’s chief operating decision-maker is the chief executive officer and the chief financial officer. The Company operates in three segments: Research, Consulting, and Events. These segments, which are also the Company's reportable segments, are based on the management structure of the Company and how the chief operating decision maker uses financial information to evaluate performance and determine how to allocate resources. The Company’s products and services are delivered through each segment as described below.

The Research segment includes the revenues from all of the Company’s research products as well as consulting revenues from advisory services (such as speeches and advisory days) delivered by the Company’s research organization. Research segment costs include the cost of the organizations responsible for developing and delivering these products in addition to the costs of the product management organization responsible for product pricing and packaging, and the launch of new products. During the third quarter of

2024, the Company realigned its technology teams and as such certain technology costs are no longer reported within the Research segment, and are now reported within the line selling, marketing, administrative and other expenses. Prior period amounts have been recast to conform to the current presentation.

The Consulting segment includes the revenues and the related costs of the Company’s project consulting organization. The project consulting organization delivers a majority of the Company’s project consulting revenue.

The Events segment includes the revenues and the costs of the organization responsible for developing and hosting in-person and virtual events.

The Company evaluates reportable segment performance and allocates resources based on segment operating income (loss). Segment expenses include the direct expenses of each segment organization and exclude selling and marketing expenses, general and administrative expenses, stock-based compensation expense, depreciation expense, adjustments to incentive bonus compensation from target amounts, amortization of intangible assets, restructuring costs, loss from sale of divested operation, interest expense, other income, and gains on investments. The accounting policies used by the segments are the same as those used in the consolidated financial statements. The Company does not review or evaluate assets as part of segment performance. Accordingly, the Company does not identify or allocate assets by reportable segment.

The Company provides information by reportable segment in the tables below (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research
Segment

 

 

Consulting
Segment

 

 

Events
Segment

 

 

Consolidated

 

Year Ended December 31, 2024

 

 

 

 

 

 

 

 

 

 

 

 

Research revenues

 

$

316,739

 

 

$

—

 

 

$

—

 

 

$

316,739

 

Consulting revenues

 

 

21,095

 

 

 

76,159

 

 

 

—

 

 

 

97,254

 

Events revenues

 

 

—

 

 

 

—

 

 

 

18,477

 

 

 

18,477

 

Total segment revenues

 

 

337,834

 

 

 

76,159

 

 

 

18,477

 

 

 

432,470

 

Segment expenses (1):

 

 

 

 

 

 

 

 

 

 

 

 

  Compensation, benefits and related costs

 

 

(100,620

)

 

 

(27,782

)

 

 

(5,567

)

 

 

(133,969

)

  Direct costs of Events

 

 

—

 

 

 

—

 

 

 

(13,429

)

 

 

(13,429

)

  Professional services

 

 

(10,864

)

 

 

(1,735

)

 

 

(108

)

 

 

(12,707

)

  Billable expenses

 

 

(548

)

 

 

(7,926

)

 

 

—

 

 

 

(8,474

)

  Travel and entertainment

 

 

(1,895

)

 

 

(358

)

 

 

(104

)

 

 

(2,357

)

  Software

 

 

(1,278

)

 

 

(8

)

 

 

(5

)

 

 

(1,291

)

  Other segment expenses (2)

 

 

(446

)

 

 

(19

)

 

 

(37

)

 

 

(502

)

Total segment expenses

 

 

(115,651

)

 

 

(37,828

)

 

 

(19,250

)

 

 

(172,729

)

Segment operating income (loss)

 

 

222,183

 

 

 

38,331

 

 

 

(773

)

 

 

259,741

 

Selling, marketing, administrative and other expenses

 

 

 

 

 

 

 

 

 

 

 

(235,805

)

Amortization of intangible assets

 

 

 

 

 

 

 

 

 

 

 

(9,648

)

Restructuring costs

 

 

 

 

 

 

 

 

 

 

 

(11,773

)

Loss from sale of divested operation

 

 

 

 

 

 

 

 

 

 

 

(1,775

)

Interest expense, other income, and gains on investments

 

 

 

 

 

 

 

 

 

 

 

1,897

 

Income before income taxes

 

 

 

 

 

 

 

 

 

 

$

2,637

 

 

(1)
The significant expense categories and amounts align with the segment-level information that is regularly provided to the chief operating decision maker.
(2)
Other segment expenses for each reportable segment includes office supplies, maintenance, and certain overhead expenses.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research
Segment

 

 

Consulting
Segment

 

 

Events
Segment

 

 

Consolidated

 

Year Ended December 31, 2023

 

 

 

 

 

 

 

 

 

 

 

 

Research revenues

 

$

334,396

 

 

$

—

 

 

$

—

 

 

$

334,396

 

Consulting revenues

 

 

28,826

 

 

 

89,402

 

 

 

—

 

 

 

118,228

 

Events revenues

 

 

—

 

 

 

—

 

 

 

28,155

 

 

 

28,155

 

Total segment revenues

 

 

363,222

 

 

 

89,402

 

 

 

28,155

 

 

 

480,779

 

Segment expenses (1):

 

 

 

 

 

 

 

 

 

 

 

 

  Compensation, benefits and related costs

 

 

(109,025

)

 

 

(34,324

)

 

 

(6,049

)

 

 

(149,398

)

  Direct costs of Events

 

 

—

 

 

 

—

 

 

 

(14,293

)

 

 

(14,293

)

  Professional services

 

 

(11,861

)

 

 

(2,272

)

 

 

(60

)

 

 

(14,193

)

  Billable expenses

 

 

(595

)

 

 

(8,113

)

 

 

—

 

 

 

(8,708

)

  Travel and entertainment

 

 

(1,690

)

 

 

(297

)

 

 

(124

)

 

 

(2,111

)

  Software

 

 

(1,729

)

 

 

(11

)

 

 

(14

)

 

 

(1,754

)

  Other segment expenses (2)

 

 

(492

)

 

 

(11

)

 

 

(17

)

 

 

(520

)

Total segment expenses

 

 

(125,392

)

 

 

(45,028

)

 

 

(20,557

)

 

 

(190,977

)

Segment operating income

 

 

237,830

 

 

 

44,374

 

 

 

7,598

 

 

 

289,802

 

Selling, marketing, administrative and other expenses

 

 

 

 

 

 

 

 

 

 

 

(257,808

)

Amortization of intangible assets

 

 

 

 

 

 

 

 

 

 

 

(11,956

)

Restructuring costs

 

 

 

 

 

 

 

 

 

 

 

(13,272

)

Interest expense, other income, and gains on investments

 

 

 

 

 

 

 

 

 

 

 

(481

)

Income before income taxes

 

 

 

 

 

 

 

 

 

 

$

6,285

 

 

(1)
The significant expense categories and amounts align with the segment-level information that is regularly provided to the chief operating decision maker.
(2)
Other segment expenses for each reportable segment includes office supplies, maintenance, and certain overhead expenses.

 

 

 

Research
Segment

 

 

Consulting
Segment

 

 

Events
Segment

 

 

Consolidated

 

Year Ended December 31, 2022

 

 

 

 

 

 

 

 

 

 

 

 

Research revenues

 

$

354,453

 

 

$

—

 

 

$

—

 

 

$

354,453

 

Consulting revenues

 

 

41,559

 

 

 

111,028

 

 

 

—

 

 

 

152,587

 

Events revenues

 

 

—

 

 

 

—

 

 

 

30,747

 

 

 

30,747

 

Total segment revenues

 

 

396,012

 

 

 

111,028

 

 

 

30,747

 

 

 

537,787

 

Segment expenses (1):

 

 

 

 

 

 

 

 

 

 

 

 

  Compensation, benefits and related costs

 

 

(107,870

)

 

 

(37,625

)

 

 

(7,187

)

 

 

(152,682

)

  Direct costs of Events

 

 

—

 

 

 

—

 

 

 

(14,373

)

 

 

(14,373

)

  Professional services

 

 

(13,441

)

 

 

(8,063

)

 

 

(62

)

 

 

(21,566

)

  Billable expenses

 

 

(740

)

 

 

(10,712

)

 

 

—

 

 

 

(11,452

)

  Travel and entertainment

 

 

(1,414

)

 

 

(357

)

 

 

(123

)

 

 

(1,894

)

  Software

 

 

(1,488

)

 

 

(103

)

 

 

(1

)

 

 

(1,592

)

  Other segment expenses (2)

 

 

(476

)

 

 

(29

)

 

 

(55

)

 

 

(560

)

Total segment expenses

 

 

(125,429

)

 

 

(56,889

)

 

 

(21,801

)

 

 

(204,119

)

Segment operating income

 

 

270,583

 

 

 

54,139

 

 

 

8,946

 

 

 

333,668

 

Selling, marketing, administrative and other expenses

 

 

 

 

 

 

 

 

 

 

 

(278,518

)

Amortization of intangible assets

 

 

 

 

 

 

 

 

 

 

 

(13,161

)

Restructuring costs

 

 

 

 

 

 

 

 

 

 

 

(9,335

)

Interest expense, other income, and gains on investments

 

 

 

 

 

 

 

 

 

 

 

(1,930

)

Income before income taxes

 

 

 

 

 

 

 

 

 

 

$

30,724

 

 

(1)
The significant expense categories and amounts align with the segment-level information that is regularly provided to the chief operating decision maker.
(2)
Other segment expenses for each reportable segment includes office supplies, maintenance, and certain overhead expenses.

Net long-lived tangible assets by location as of December 31, 2024 and 2023 are as follows (in thousands):

 

 

 

2024

 

 

2023

 

United States

 

$

30,307

 

 

$

48,001

 

United Kingdom

 

 

7,043

 

 

 

8,194

 

Europe (excluding United Kingdom)

 

 

191

 

 

 

186

 

Asia Pacific

 

 

1,207

 

 

 

2,742

 

Total

 

$

38,748

 

 

$

59,123

 

Revenues by geographic destination, based on the location products and services are consumed, and as a percentage of total revenues for the years ended December 31, 2024, 2023, and 2022 are as follows (dollars in thousands):

 

 

 

2024

 

 

2023

 

 

2022

 

United States

 

$

334,095

 

 

$

373,483

 

 

$

426,041

 

Europe (excluding United Kingdom)

 

 

37,698

 

 

 

37,912

 

 

 

36,664

 

United Kingdom

 

 

18,934

 

 

 

21,311

 

 

 

20,079

 

Canada

 

 

12,221

 

 

 

16,416

 

 

 

20,759

 

Asia Pacific

 

 

20,778

 

 

 

23,604

 

 

 

26,548

 

Other

 

 

8,744

 

 

 

8,053

 

 

 

7,696

 

Total

 

$

432,470

 

 

$

480,779

 

 

$

537,787

 

 

 

 

2024

 

 

2023

 

 

2022

 

United States

 

 

77

 %

 

 

78

 %

 

 

77

 %

Europe (excluding United Kingdom)

 

 

9

 

 

 

8

 

 

 

9

 

United Kingdom

 

 

4

 

 

 

4

 

 

 

5

 

Canada

 

 

3

 

 

 

3

 

 

 

3

 

Asia Pacific

 

 

5

 

 

 

5

 

 

 

5

 

Other

 

 

2

 

 

 

2

 

 

 

1

 

Total

 

 

100

 %

 

 

100

 %

 

 

100

 %