About AMR Research, Inc.
Gartner helps clients understand the information technology (IT) industry and make informed decisions about IT products. It provides over 15,000 client organizations with competitive analysis reports, industry overviews, market trend data, and product evaluation reports. Its 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 produces conferences, seminars, and other events aimed at the technology sector. The US and Canada account for nearly two-thirds of the company’s sales. About 80% of its revenue is garnered from its research services and products.
Gartner operates through three primary business segments: Research, Conferences, and Consulting.
Research is the company’s largest segment, accounting for about 80% of the company's revenue. It primarily consists of subscription-based research products, access to research inquiry, peer networking services, and membership programs. The segment includes the Global Technology Sales subdivision, which markets to technology users and companies, and the Global Business Sales subdivision, which addresses all other user types.
Representing some 10% of its revenue, Gartner’s Conferences organizes more than 70 learning and networking events each year for greater than 80,000 business professionals yearly. Its flagship summit is the IT Symposium/Xpo series, wherein thousands of CIOs and IT executives gather to discuss analytics, artificial intelligence, cybersecurity, and other technology topics. The company’s Consulting segment also provides around 10% of the company’s sales. It offers on-site support and tools to companies for improving IT costs and performance.
Gartner is active in more than 100 countries. Canada and the US represent nearly 65% of overall sales, while the Europe, Middle East, and Africa contribute about 25%. Other regions account for the remainder. The Stamford, Connecticut-based company has around 85 offices in the US and some 45 international offices.
Sales and Marketing
Gartner has around 15,000 clients worldwide across virtually every industry and size. It publishes tens of thousands of pages of original research annually, and its analysts answer 380,000 client inquiries every year. Its customers include CIOs and senior IT leaders in corporations and government agencies, business leaders in high-tech and telecom enterprises, professional services firms, supply chain professionals, marketing professionals, and technology investors.
Gartner's revenue has grown strongly over the last five years as it scales up via acquisitions, nearly doubling its top line. The company’s net income has dropped by about a third in that time; high operating costs, borrowings, and headcount expansion to support its acquisition of CEB in 2017 that nearly obliviated earnings that year.
In 2018 Gartner’s revenue gained 20% to $4 billion driven by a double-digit improvement in subscription sales in its Research segment (partially caused by the CEB acquisition). Net income soared 3,612%, normalizing significantly compared to the previous year. The company has managed to pay down more than a quarter of the long-term debt it took on to fund the CEB purchase.
Gartner depleted its cash stores by $401.9 million in 2018 to end the year at $158.7 million. Operations and investments provided $471.2 million and $384.1 million, respectively. The company’s divestment of its non-core businesses bolstered investment gains. Financing activities used $1.3 billion, mostly for payments on borrowings.
Gartner uses acquisitions to extend its geographic reach and capture a greater share of the fast-growing IT consultancy market while improving operational efficiency through strategic exits from underperforming business segments.
In 2017 Gartner acquired best practice and talent management company CEB for $2.6 billion. The deal expanded Gartner’s advisory capabilities in human resources, sales, finance, and legal functions. The next year the company sold CEB’s Talent Assessment division for $400 million in an effort to focus on its core research and advisory business. The selloff also allowed the company to pay off some of the long-term debt it took out to fund the acquisition.
A critical part of Gartner's long-term strategy is to increase business volume and penetration with its most valuable clients. The company identifies relationships with the greatest sales potential and then it works to expand those relationships by offering strategically relevant research and advice. Gartner also works to develop new client relationships, augment its sales capacity, and expand into new markets around the world. Gartner is always looking for ways to improve the packaging, marketing, and cross-selling of its products and services.
Mergers and Acquisitions
In 2017 Gartner acquired CEB, a Virginia company offering subscription-based, best practice research and analysis for human resources, sales, finance, IT, and legal, for $3.5 billion in cash and shares. The acquisition deepens Gartner’s existing capabilities while opening Garnet to new markets such as HR, sales, finance, and legal research.
125 SUMMER ST LBBY 4
Boston, MA 02110-1612
Phone: 1 (617) 542-6600
Employer Type: Privately Owned
Vice President: Michael Burkett
Managing Director of Customer Technology Services: Daniel Henry
Senior Vice President Business Technology: Steve Marchant
Employees (This Location): 150
Employees (All Locations): 210
Harpers Ferry, WV