You might not know IT, but Gartner does. The company helps clients understand the information technology (IT) industry and make informed decisions about IT products. It provides more than 12,400 client organizations with competitive analysis reports, industry overviews, market trend data, and product evaluation reports. Its GartnerG2, Gartner Dataquest, and other research services are made available through subscriptions, primarily to CIOs and other IT professionals. Gartner also offers technology and management consulting services, and it produces a number of conferences, seminars, and other events aimed at the technology sector.
The company operates in about 85 countries. Canada and the US represent almost 60% of its overall sales. The EMEA region contributes nearly 30%, while other regions account for the remaining amount.
During the recession, Gartner's research and consulting segments (which together account for about 90% of the company's revenue each year) were hurt as corporate spending on IT infrastructure dried up. However, the company has reversed this trend after enjoying three straight years of sizable growth.
From 2011 to 2012 its total sales increased by 10%, and its profits surged by 21%. This was driven by double-digit growth in both its Research and Events segments and revenue increases across all its geographic regions (with a double-digit increase in Research revenues in every region).
Both its client retention and wallet retention remained strong during 2012, peaking at 83% and 99%, respectively. Events revenues increased due to the 62 events in 2012 compared to 60 in 2011. It also experienced higher exhibitor volumes at its ongoing events.
Gartner uses acquisitions to extend its geographic reach and penetrate fast-growing markets. In 2012 it acquired Ideas International Limited, a publicly-owned Australian corporation that provided intelligence on IT infrastructure configurations and pricing data to IT professionals and vendors. Gartner paid around $19 million in cash for the company in order to introduce Ideas International’s products and services to its much larger end user client base and to further penetrate the technology vendor market. Ideas International’s business operations have been integrated into Gartner's Research segment.
Investment advisor T. Rowe Price Associates owns about 16% of Gartner.
▲ Show Less▼ Show Full Description