What is Growth Strategy and Future Prospects of Forrester Company?

A core element is the ongoing development of its proprietary generative AI tool, Izola. This tool aims to provide clients with accelerated insights and reinforces the company's commitment to AI leadership.

The company's 'Predictions 2025' reports underscore a forward-looking strategy focused on achieving tangible, near-term business benefits through the strategic application of generative AI and other emerging technologies.

Guidance is offered on balancing AI innovation with established automation methods. This includes advice on maximizing the effectiveness of existing technologies through improved adoption, integration, and optimization.

The company provides essential guidance on critical areas such as AI security, data strategies, and the establishment of a secure and private data fabric.

Research indicates a positive outlook for technology budgets in 2025, with 91% of technology leaders anticipating growth. A significant portion of this investment is expected to be directed towards pragmatic AI, security, and automation initiatives aimed at cost reduction.

The introduction of the 'Total Experience Score' in June 2025 highlights a commitment to innovation. This metric assists companies in aligning brand and customer experiences to potentially achieve up to 3.5x revenue growth and enhanced customer retention.

For the full year 2025, Forrester projects operating margins to be within the range of 8% to 9%. This reflects a focus on cost management amidst revenue pressures.

Adjusted diluted earnings per share are forecasted to be between $1.20 and $1.35 for 2025. This projection is a key indicator for the company's profitability outlook.

In Q1 2025, Forrester generated $26.7 million in cash flow from operating activities. This demonstrates the company's ability to generate cash even during a period of revenue decline.

Despite financial headwinds, Forrester is strategically emphasizing AI and client-centric research. These areas are crucial for maintaining its competitive edge and adapting to future market changes.

The company anticipates mid-single-digit declines across its research, consulting, and events businesses for 2025. This broad-based expectation highlights the challenges in its core offerings.

Forrester is actively focused on managing its costs to navigate the current financial climate. This proactive approach is vital for sustaining operations and investing in future growth initiatives.

Ongoing economic uncertainty and market volatility are primary risks for Forrester. The company experienced a 10% revenue decline in Q1 2025, with research revenue showing its ninth consecutive quarterly decrease.

The rapid advancement of generative AI presents a dual-edged sword. While Forrester is developing its own AI tools and research, a risk exists that businesses might deprioritize AI use due to a lack of perceived value or insufficient budgets, potentially impacting demand for related research.

Evolving regulatory environments create complexity for businesses. A significant 24% of enterprise risk management leaders identified regulatory changes as a top risk, necessitating robust compliance management strategies.

Rising geopolitical tensions and economic pressures, including global job cuts, can exacerbate insider risks and cybercrime. The projected cost of cybercrime is expected to reach $12 trillion in 2025.

A 14% decline in client count from Q1 2024, largely due to the loss of smaller vendor clients, highlights a vulnerability in Forrester's client acquisition and retention strategies.

Navigating these uncertain times requires a strategic focus on cost optimization, efficient risk management, and accelerated adaptation to market shifts to ensure sustained growth and relevance.