On this page of StockholderLetter.com we present the 4/17/2023 shareholder letter from GARTNER INC — ticker symbol IT. Reading current and past IT letters to shareholders can bring important insights into the investment thesis.
2022 Annual Report
Dear Shareholders: Gartner delivered another outstanding financial performance in 2022. Gartner provides incredible value to our clients. As a result of the value we delivered throughout 2022, we achieved strong performance in revenue, Gene Hall Chief Executive Officer Craig Safian Chief Financial Officer adjusted EBITDA and free cash flow. The growth rates detailed below exclude the impact of foreign exchange, unless otherwise stated. We generated $5.5 billion of revenue and $1.5 billion of adjusted EBITDA1, representing year-overyear growth of 20% and 19%, respectively. Adjusted EPS was $11.27 in 2022, representing reported growth of 22%. We generated nearly $1 billion in free cash flow, and we returned even more than that to shareholders through our ongoing share repurchase program. At Gartner, we guide the leaders who shape the world. We do this by delivering actionable, objective insight that drives smarter decisions and stronger performance on an organization s mission-critical priorities. 1 Reconciliations of all non-GAAP financial measures used in this letter to the most directly comparable GAAP measures are available on investor.gartner.com.
Compelling client value proposition is the foundation for our growth. At Gartner, we guide the leaders who shape the world. We do this by delivering actionable, We continue to deliver products and services globally through three business segments Research, Conferences and Consulting. objective insight that drives smarter decisions Gartner Research is our largest and most profitable and stronger performance on an organization s segment. We are uniquely positioned to support mission-critical priorities. We are a trusted advisor enterprise leaders by applying Gartner insight, and an objective resource for more than 15,000 drawn from our forward-thinking expert analysis, enterprises in approximately 90 countries and practitioner research on peer best practices and territories across all major functions, in every robust data and analytics. industry and enterprise size. Our research agenda is defined by clients needs, Enterprise leaders face enormous pressure to stay focusing on the critical issues, opportunities and ahead and grow profitably amid constant changes. challenges they face every day. In 2022, we had Whether fueling digital transformation, responding more than 460,000 direct client interactions and to a global health crisis, implementing large-scale advised more than 15,000 distinct client regulatory changes or leading through other enterprises worldwide. Our size and scale enable unique challenges, business executives continue us to apply our vast resources toward broader and to face significant disruptive changes, increased deeper research coverage and to deliver insight volatility and heightened uncertainty. Leaders need to our clients based on their most important, help navigating these turbulent times And they mission-critical priorities. know Gartner is the best source for that help. Enterprise leaders access our research content and Our services often make the di erence between success and failure for executives and their enterprises. We help clients succeed with their mission-critical priorities whether they re in investment mode or reducing costs. advisory services through individual subscription contracts over a defined period. We typically have a minimum contract period of 12 months for our research and advisory subscription contracts and, at December 31, 2022, over 70% of our contracts were multiyear agreements. Gartner Conferences provides enterprise executives and their teams the opportunity to learn, share and network. From our Gartner Symposium/Xpo series, to industry-leading conferences focused on specific business roles and topics, to peer-driven sessions, our o erings enable attendees to experience the best of Gartner insight and guidance.
Attendees experience sessions led by Gartner research experts, and the sessions include cutting-edge technology solutions, peer exchange workshops, one-on-one analyst and advisor meetings, consulting diagnostic workshops, keynotes and more. Our conferences also provide attendees with an opportunity to interact with IT and business executives from the world s leading companies. Gartner is a growth company powered by our people. Our people are our most important resource, enabling our long track record of global growth. We attract and hire a diverse array of highly talented individuals. We support these individuals throughout their Gartner career with learning and development opportunities, wellness support, meaningful benefits and outstanding rewards for During 2022, we were successful at returning strong performances. At December 31, 2022, we to in-person conferences for the first time since had more than 19,500 associates globally. the pandemic began in March 2020. Gartner successfully held 25 in-person and 16 virtual conferences with more than 60,000 attendees, including eight Symposiums/Xpos. Gartner Consulting serves senior executives leading technology-driven strategic initiatives as an extension of our IT Research business. Through custom analysis and on-the-ground projects we enable deeper support on our clients missioncritical priorities. We provide actionable solutions for a range of IT-related priorities, including IT cost optimization, digital transformation and IT sourcing optimization. Over the past few years, our hiring has been carefully calibrated to demand, and we are well positioned from a talent perspective heading into 2023. Our ongoing investments in our teams will drive long-term, sustained double-digit growth. We continually renew our commitment to our people by seeking to optimize our recruitment and professional development processes, create networking and educational opportunities, celebrate heritage and history, celebrate community service and create safe spaces for all employees. Our human capital management strategies are developed by executive management Our market opportunity is vast across all sectors, and overseen by the Compensation Committee sizes and geographies, and we're delivering more of our Board of Directors. value than ever. Our results were strong across the business in 2022. Our Research segment ended 2022 with revenue of $4.6 billion, an increase of 16% year over year. At the end of the year, contract value was $4.7 billion, an increase of 12% year over year.
Global Technology Sales (GTS) serves leaders and We will continue to deliver unparalleled value to their teams within IT and represents almost 80% our clients, staying focused on strong, operational of our total contract value. GTS contract value at execution and continuous improvement and year end was $3.6 billion, an increase of 10% versus innovation so that we get better, faster and stronger the prior year. every year. Global Business Sales (GBS) supports all the Looking out over the medium term, our outstanding enterprise functions beyond IT. This includes HR, financial model and expectations are unchanged. Supply Chain, Marketing, Finance, Legal, Sales We expect to deliver Research contract value and more. GBS represents more than 20% of our growth of 12% to 16% and double-digit revenue total contract value. GBS contract value increased growth. With gross margin expansion, sales cost a strong 19% year over year to end 2022 at growing in line with CV growth over time and G&A $1.0 billion. leverage, we can modestly expand margins from Gartner Conferences provides great value to our clients. In 2022, Conferences revenue was $389 million, an increase of 90% for the full year as we were able to begin our return to in-person conferences. Consulting revenue was $482 million, an increase of 22% for the full year with strong performances across the business in 2022. Looking ahead we are well positioned for long-term, sustained double-digit growth, and we will continue to focus on strong execution. In 2022, Gartner drove outstanding results in terms of revenue, profits and free cash flow. Contract value growth accelerated, giving us great momentum across our business. We ve increased hiring to drive future growth. And we continue to put our capital to work on behalf of our shareholders, repurchasing almost $2.7 billion worth of our stock over the past two years. 2023. With our modest capital expenditure needs and the benefit of clients paying us upfront for our services, we plan to grow free cash flow at least as fast as adjusted EBITDA. Finally, we ll continue to deploy our capital on share repurchases, which will lower the share count over time, and on strategic value-enhancing tuck-in M&A. On behalf of everyone at Gartner, we thank you for your support. Gene Hall Chief Executive Officer Craig Safian Chief Financial Officer
 • shareholder letter icon 4/17/2023 Letter Continued (Full PDF)
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 • stockholder letter icon 4/15/2025 IT Stockholder Letter
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IT 4/17/2023 Shareholder/Stockholder Letter Transcript:

2022
Annual
Report

Dear Shareholders:
Gartner delivered another
outstanding financial performance
in 2022.
Gartner provides incredible value to our clients.
As a result of the value we delivered throughout
2022, we achieved strong performance in revenue,
Gene Hall
Chief Executive Officer
Craig Safian
Chief Financial Officer
adjusted EBITDA and free cash flow. The growth
rates detailed below exclude the impact of foreign
exchange, unless otherwise stated.
We generated $5.5 billion of revenue and $1.5
billion of adjusted EBITDA1, representing year-overyear growth of 20% and 19%, respectively. Adjusted
EPS was $11.27 in 2022, representing reported
growth of 22%. We generated nearly $1 billion in
free cash flow, and we returned even more than
that to shareholders through our ongoing share
repurchase program.
   At Gartner, we guide the leaders who shape the world.
We do this by delivering actionable, objective insight that
drives smarter decisions and stronger performance on
an organization   s mission-critical priorities.   
1
Reconciliations of all non-GAAP financial measures used in this
letter to the most directly comparable GAAP measures are available
on investor.gartner.com.

Compelling client value proposition
is the foundation for our growth.
At Gartner, we guide the leaders who shape
the world. We do this by delivering actionable,
We continue to deliver products
and services globally through three
business segments     Research,
Conferences and Consulting.
objective insight that drives smarter decisions
Gartner Research is our largest and most profitable
and stronger performance on an organization   s
segment. We are uniquely positioned to support
mission-critical priorities. We are a trusted advisor
enterprise leaders by applying Gartner insight,
and an objective resource for more than 15,000
drawn from our forward-thinking expert analysis,
enterprises in approximately 90 countries and
practitioner research on peer best practices and
territories     across all major functions, in every
robust data and analytics.
industry and enterprise size.
Our research agenda is defined by clients    needs,
Enterprise leaders face enormous pressure to stay
focusing on the critical issues, opportunities and
ahead and grow profitably amid constant changes.
challenges they face every day. In 2022, we had
Whether fueling digital transformation, responding
more than 460,000 direct client interactions and
to a global health crisis, implementing large-scale
advised more than 15,000 distinct client
regulatory changes or leading through other
enterprises worldwide. Our size and scale enable
unique challenges, business executives continue
us to apply our vast resources toward broader and
to face significant disruptive changes, increased
deeper research coverage and to deliver insight
volatility and heightened uncertainty. Leaders need
to our clients based on their most important,
help navigating these turbulent times     And they
mission-critical priorities.
know Gartner is the best source for that help.
Enterprise leaders access our research content and
Our services often make the di   erence between
success and failure for executives and their
enterprises. We help clients succeed with their
mission-critical priorities whether they   re in
investment mode or reducing costs.
advisory services through individual subscription
contracts over a defined period. We typically have
a minimum contract period of 12 months for our
research and advisory subscription contracts and,
at December 31, 2022, over 70% of our contracts
were multiyear agreements.
Gartner Conferences provides enterprise
executives and their teams the opportunity
to learn, share and network. From our Gartner
Symposium/Xpo series, to industry-leading
conferences focused on specific business roles
and topics, to peer-driven sessions, our o   erings
enable attendees to experience the best of
Gartner insight and guidance.

Attendees experience sessions led by Gartner
research experts, and the sessions include
cutting-edge technology solutions, peer exchange
workshops, one-on-one analyst and advisor
meetings, consulting diagnostic workshops,
keynotes and more. Our conferences also provide
attendees with an opportunity to interact with
IT and business executives from the world   s
leading companies.
Gartner is a growth company
powered by our people.
Our people are our most important resource,
enabling our long track record of global growth.
We attract and hire a diverse array of highly
talented individuals. We support these individuals
throughout their Gartner career with learning and
development opportunities, wellness support,
meaningful benefits and outstanding rewards for
During 2022, we were successful at returning
strong performances. At December 31, 2022, we
to in-person conferences for the first time since
had more than 19,500 associates globally.
the pandemic began in March 2020. Gartner
successfully held 25 in-person and 16 virtual
conferences with more than 60,000 attendees,
including eight Symposiums/Xpos.
Gartner Consulting serves senior executives
leading technology-driven strategic initiatives as
an extension of our IT Research business. Through
custom analysis and on-the-ground projects we
enable deeper support on our clients    missioncritical priorities. We provide actionable solutions
for a range of IT-related priorities, including
IT cost optimization, digital transformation and IT
sourcing optimization.
Over the past few years, our hiring has been
carefully calibrated to demand, and we are well
positioned from a talent perspective heading into
2023. Our ongoing investments in our teams will
drive long-term, sustained double-digit growth.
We continually renew our commitment to our
people by seeking to optimize our recruitment
and professional development processes,
create networking and educational opportunities,
celebrate heritage and history, celebrate
community service and create safe spaces for
all employees. Our human capital management
strategies are developed by executive management
Our market opportunity is vast across all sectors,
and overseen by the Compensation Committee
sizes and geographies, and we're delivering more
of our Board of Directors.
value than ever.
Our results were strong across the
business in 2022.
Our Research segment ended 2022 with revenue
of $4.6 billion, an increase of 16% year over year.
At the end of the year, contract value was $4.7
billion, an increase of 12% year over year.

Global Technology Sales (GTS) serves leaders and
We will continue to deliver unparalleled value to
their teams within IT and represents almost 80%
our clients, staying focused on strong, operational
of our total contract value. GTS contract value at
execution and continuous improvement and
year end was $3.6 billion, an increase of 10% versus
innovation so that we get better, faster and stronger
the prior year.
every year.
Global Business Sales (GBS) supports all the
Looking out over the medium term, our outstanding
enterprise functions beyond IT. This includes HR,
financial model and expectations are unchanged.
Supply Chain, Marketing, Finance, Legal, Sales
We expect to deliver Research contract value
and more. GBS represents more than 20% of our
growth of 12% to 16% and double-digit revenue
total contract value. GBS contract value increased
growth. With gross margin expansion, sales cost
a strong 19% year over year to end 2022 at
growing in line with CV growth over time and G&A
$1.0 billion.
leverage, we can modestly expand margins from
Gartner Conferences provides great value
to our clients. In 2022, Conferences revenue
was $389 million, an increase of 90% for the
full year as we were able to begin our return to
in-person conferences.
Consulting revenue was $482 million, an increase
of 22% for the full year with strong performances
across the business in 2022.
Looking ahead we are well
positioned for long-term, sustained
double-digit growth, and we
will continue to focus on strong
execution.
In 2022, Gartner drove outstanding results in
terms of revenue, profits and free cash flow.
Contract value growth accelerated, giving us
great momentum across our business. We   ve
increased hiring to drive future growth. And we
continue to put our capital to work on behalf
of our shareholders, repurchasing almost $2.7
billion worth of our stock over the past two years.
2023. With our modest capital expenditure needs
and the benefit of clients paying us upfront for our
services, we plan to grow free cash flow at least as
fast as adjusted EBITDA. Finally, we   ll continue to
deploy our capital on share repurchases, which will
lower the share count over time, and on strategic
value-enhancing tuck-in M&A.
On behalf of everyone at Gartner, we thank you
for your support.
Gene Hall
Chief Executive Officer
Craig Safian
Chief Financial Officer


shareholder letter icon 4/17/2023 Letter Continued (Full PDF)
 

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