IT Q2 2016 Earnings Report — Gartner, Inc. Revenue & Financial Results | Market Cap Arena

Gartner, Inc.IT

Q2 2016 Earnings

Reported August 4, 2016

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	Q2 2016	Q1 2016	Q2 2015	QoQ Change	YoY Change
Revenue	$610M	$557M	—	9.5%	—
Op. Income	$83M	$64M	—	29.3%	—
Gross Margin	62.1%	61.9%	—	0.1pp	—
Net Margin	7.9%	7.2%	—	0.6pp	—
EPS (Diluted)	$0.62	$0.54	—	14.8%	—
Free Cash Flow	$126M	$2M	—	6135.5%	—

Revenue Flow

Item	Amount
REVENUE	$610M
Cost of Revenue	$231M
GROSS PROFIT	$379M
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$272M
SG&A Expenses	$272M
Other Expenses	$23M
Operating Expenses	$295M
Cost & Expenses	$527M
OPERATING INCOME	$83M
Interest Income	$0
Interest Expense	$7M
Other Income/Expenses	-$6M
INCOME BEFORE TAX	$77M
Income Tax Expense	$29M
Net Income from Continuing Ops	$52M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$48M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$52M
D&A	$15M
EBIT	$85M
EBITDA	$100M
EPS	$1
EPS Diluted	$1

Income Statement

Item	Amount
REVENUE	$610M
Cost of Revenue	$231M
GROSS PROFIT	$379M
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$272M
SG&A Expenses	$272M
Other Expenses	$23M
Operating Expenses	$295M
Cost & Expenses	$527M
OPERATING INCOME	$83M
Interest Income	$0
Interest Expense	$7M
Other Income/Expenses	-$6M
INCOME BEFORE TAX	$77M
Income Tax Expense	$29M
Net Income from Continuing Ops	$52M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$48M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$52M
D&A	$15M
EBIT	$85M
EBITDA	$100M
EPS	$1
EPS Diluted	$1

Cash Flow Statement

Item	Amount
Net Income	$48M
Depreciation & Amortization	$15M
Stock-Based Compensation	$11M
Deferred Income Tax	$1M
Other Non-Cash Items	-$2M
Change in Working Capital	$71M
OPERATING CASH FLOW	$145M
Capital Expenditure	-$19M
Acquisitions (Net)	-$29M
Purchases of Investments	$0
Sales/Maturities of Investments	$0
Other Investing Activities	$0
NET CASH FROM INVESTING	-$48M
Net Debt Issuance	-$55M
Common Stock Repurchased	-$6M
Common Dividends Paid	$0
Other Financing Activities	-$3M
NET CASH FROM FINANCING	-$61M
FREE CASH FLOW	$126M
Net Change in Cash	$41M

Balance Sheet

Item	Amount
Cash & Equivalents	$445M
Short-Term Investments	$0
Net Receivables	$614M
Inventory	$0
Other Current Assets	$111M
TOTAL CURRENT ASSETS	$1.2B
PP&E (Net)	$117M
Goodwill	$743M
Intangible Assets	$99M
Long-Term Investments	$0
Tax Assets	$0
Other Non-Current Assets	$112M
TOTAL NON-CURRENT ASSETS	$1.1B
TOTAL ASSETS	$2.3B
Account Payables	$287M
Short-Term Debt	$70M
Deferred Revenue	$1.0B
Other Current Liabilities	$93.0K
TOTAL CURRENT LIABILITIES	$1.4B
Long-Term Debt	$756M
Deferred Revenue NC	$0
Deferred Tax Liabilities	$0
Other Non-Current Liabilities	$214M
TOTAL NON-CURRENT LIABILITIES	$970M
TOTAL LIABILITIES	$2.4B
Common Stock	$78.0K
Additional Paid-In Capital	$847M
Retained Earnings	$1.5B
Treasury Stock	-$2.4B
Accum. Other Comp. Income	-$48M
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	-$53M
Minority Interest	$0
TOTAL EQUITY	-$53M
TOTAL LIABILITIES & EQUITY	$2.3B
Total Debt	$826M
Net Debt	$381M