© 2019 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates. This presentation, including all supporting materials,
is proprietary to Gartner, Inc. and/or its affiliates and is for the sole internal use of the intended recipients. Because this presentation may contain information that is confidential,
proprietary or otherwise legally protected, it may not be further copied, distributed or publicly displayed without the express written permission of Gartner, Inc. or its affiliates.
Craig Safian, CFO
Gartner at William Blair 2019
2 © 2019 Gartner, Inc. and/or its affiliates. All rights reserved.
Forward Looking Statement and Explanatory Note
Statements contained in this presentation regarding the growth and prospects of the business, the Company’s projected 2019 financial results, long-term objectives and all other statements in this
presentation other than recitation of historical facts are forward looking statements (as defined in the Private Securities Litigation Reform Act of 1995). Such forward looking statements involve known
and unknown risks, uncertainties and other factors; consequently, actual results may differ materially from those expressed or implied thereby.
Factors that could cause actual results to differ materially include, but are not limited to, the ability to achieve and effectively manage growth, including the ability to integrate our acquisitions, and
consummate and integrate future acquisitions; the ability to pay Gartner’s debt obligations, the ability to maintain and expand Gartner’s products and services; the ability to expand or retain Gartner’s
customer base; the ability to grow or sustain revenue from individual customers; the ability to attract and retain a professional staff of research analysts and consultants as well as experienced sales
personnel upon whom Gartner is dependent; the ability to achieve continued customer renewals and achieve new contract value, backlog and deferred revenue growth in light of competitive
pressures; the ability to carry out Gartner’s strategic initiatives and manage associated costs; the ability to successfully compete with existing competitors and potential new competitors; the ability to
enforce and protect our intellectual property rights; additional risks associated with international operations including foreign currency fluctuations; the impact of restructuring and other charges on
Gartner’s businesses and operations; cybersecurity incidents; general economic conditions; risks associated with the credit worthiness, budget cuts and shutdown of governments and agencies; the
impact of the U.S. Tax Cut and Jobs Act of 2017; changes to laws and regulations; and other risks listed from time to time in Gartner’s reports filed with the Securities and Exchange Commission,
including Gartner’s most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.
Non-GAAP financial measures such as Adj. Revenue, Adj. Contribution, Adj. Contribution Margin, Adj. EBITDA, Adj. Net Income, Adj. EPS and Free Cash Flow, as included in this presentation, are
supplemental measures that are not calculated in accordance with U.S. GAAP. Definitions of these measures and reconciliations to the most-directly comparable GAAP measures can be found on
Gartner’s website at investor.gartner.com.
In this presentation, we include “combined” numbers that, for periods prior to our acquisition of CEB (unless expressly noted otherwise), reflect numerical addition of the results of Gartner and CEB
for each line item and do not include all the adjustments required with respect to the presentation of pro forma financial information under GAAP and the rules and regulations of the SEC.
Accordingly, these “combined” numbers are non-GAAP, but are provided because Gartner believes they are useful in comparing performance of Gartner following the CEB acquisition with
performance of Gartner and CEB independently prior to Gartner’s acquisition of CEB. These combined numbers should be read together with the historical financial statements of Gartner and CEB
included in their respective quarterly reports on Form 10-Q and annual reports on Form 10-K, and the pro forma financial statements included in Exhibit 99.1 to Gartner’s Current Report on Form 8-K
filed with the SEC on April 6, 2017 and footnote 2 to the consolidated financial statements in Gartner’s Annual Report on Form 10-K for the year ended December 31, 2018.
The Company’s SEC filings can be found on Gartner’s website at investor.gartner.com and on the SEC’s website at www.sec.gov. Forward looking statements included herein speak only as of May
7, 2019 and the Company disclaims any obligation to revise or update such statements to reflect events or circumstances after this date or to reflect the occurrence of unanticipated events or
circumstances, except as required by applicable law or regulation.
3 © 2019 Gartner, Inc. and/or its affiliates. All rights reserved.
Provides functional leaders
indispensable insight and
advice.
Provides the foundation for
sustained, double-digit
contract value growth.
Drives sustained, double-
digit growth in revenue,
earnings and free cash flow.
Gartner: Long-term, sustained, double-digit growth
Value Proposition Gartner Formula Business Model
IT
Service
Legal
Sales
Marketing
Finance
Human Resources
Supply Chain
4 © 2019 Gartner, Inc. and/or its affiliates. All rights reserved.
A Great Place to Work – Awards & Recognition
Gartner at a glance
15,600 Client
Enterprises
100
Countries
15,000
Associates
$4B
Revenues
Gartner equips senior leaders across the enterprise with the indispensable insight, advice and tools they
need to achieve their mission-critical priorities.
Fortune Forbes LinkedIn Glassdoor
Human Rights Campaign Corporate
Equality Index
World’s Most Admired Companies
2016, 2017, 2018, 2019
America's Best Employers 2018;
Best Management Consulting Firms
2017, 2018; America's Best Midsize
Employers 2016, 2017; and Best
Employers for Diversity 2019
Top 50 Companies For 2017 Gartner‘s U.K. office has been
recognized among Glassdoor’s
annual Employee Choice Award
winners as one of the Best Places to
Work U.K. 2018, 2019
Best Places to Work for LGBTQ
Equality 2018, 2019
5 © 2019 Gartner, Inc. and/or its affiliates. All rights reserved.
Long-term track record of delivering value
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Current CEO Gene
Hall joins Gartner
Acquisition of AMR
Research to create
new market
opportunity in Supply
Chain
Gartner founded to
provide technology
research
Organically created new market
opportunity in Marketing
Series of tuck-in acquisitions
focused on serving small
businesses
Acquisition of CEB creating
new market opportunities
across the entire enterprise
Gartner goes public
NYSE:IT
1993 20041979 2009 2012 2014 2015 2017
Source: CapitalIQ
Stock Price
$170
$10
6 © 2019 Gartner, Inc. and/or its affiliates. All rights reserved.
Vast market opportunity
Total Market
Opportunity
Technology
55
23
2514
24
38
19 198
Supply Chain Marketing Human
Resources
Finance Sales Legal
& Other
Gartner CV
$3B
($ billions)
Source: Internal Gartner estimates.
Detailed bottom-up market opportunity estimate shows
Gartner has a very long runway for growth.
7 © 2019 Gartner, Inc. and/or its affiliates. All rights reserved.
Gartner is a growth company
715 780 898 1,021 1,155 1,300 1,4871,691
1,923
2,7703,086
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
160 147192 214 237
280312 316
347
265
468
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Free Cash Flow $ millions
Contract Value $ millions @ ’19 rates 16% CAGR
11% CAGR
Note: 2016 and prior is Gartner stand-alone. 2017 and 2018 are on a combined basis.
Contract Value includes both GTS and GBS values starting in 2017.
8 © 2019 Gartner, Inc. and/or its affiliates. All rights reserved.
Our value maps to five fundamental approaches for successful leaders
Benchmark to determine
what’s working — and
prioritize areas to improve
We help clients stay on top of
their game and empower their
team to do the same
We know what “great” looks
like so clients can focus on what
matters and what works
Our clients learn from a
community of true peers to
benefit from their insights
Choose the right technologies
and get the best pricing
and terms
9 © 2019 Gartner, Inc. and/or its affiliates. All rights reserved.
Research Segment
Overview
• Gartner Research provides
indispensable insights,
advice and tools to leaders
across the enterprise.
• Subscription model provides
ongoing access to research
with on-demand response
through published research
content, data and
benchmarks.
Adj. Contribution Margin
Adj. Revenue $ millions
Historical Revenue
Historical Contribution Margin
Note: 1Q17 combines heritage Gartner and heritage CEB financial metrics.
% of Revenue
651670
697
727
766 767 771
796825
1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19
69.2%
68.5%
69.1%68.9%
69.8%
69.2%69.1%
68.4%
69.7%
1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19
10 © 2019 Gartner, Inc. and/or its affiliates. All rights reserved.
Conferences Segment
Overview
• Our mission is to produce
must-attend conferences for
leaders across the enterprise.
• Conferences are aligned to
the same roles and functions
of the clients we serve in
Research.
• Combines the outstanding
value of our research with
unparalleled peer networking
and the immersive
experience of live events.
37
95
45
169
46
111
57
196
52
1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19
31.5%
56.4%
35.8%
51.2%
35.2%
57.0%
43.8%
52.3%
36.3%
1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19
Adj. Contribution Margin
Adj. Revenue $ millions
Historical Revenue
Historical Contribution Margin
% of Revenue
Note: 1Q17 combines heritage Gartner and heritage CEB financial metrics.
11 © 2019 Gartner, Inc. and/or its affiliates. All rights reserved.
Consulting Segment
Overview
• Provides clients extended
project-based work to help
them execute their most
strategic initiatives.
• Support Chief Information
Officers and their teams.
• Differentiated with our
independent and objective
insight and advice.
• Engagements are powered
by Research.
Contribution Margin
Revenue $ millions
Historical Revenue
Historical Contribution Margin
79
92
72
8583
96
79
9693
1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19
30.5%
34.3%
22.4%
25.9%
29.1%
34.9%
23.4%
27.5%
30.8%
1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19
% of Revenue
12 © 2019 Gartner, Inc. and/or its affiliates. All rights reserved.
Finance
$600M
in Contract Value
~20%
of Total CV
5,400
Enterprises
800
Quota-Bearing
Salespeople
~80%
of Total CV
13,000
Enterprises
$2.5B
in Contract Value
3,100
Quota-Bearing
Salespeople
IT Legal
Sales
Human Resources
Supply Chain
Marketing
Service
Distinct sales forces sell to leaders across the enterprise
Global Business Sales (GBS)Global Technology Sales (GTS)
As of December 31, 2018. Contract Value shown at 2019 FX rates. Note: Enterprises that are clients of both GTS and GBS appear in both counts.
13 © 2019 Gartner, Inc. and/or its affiliates. All rights reserved.
Acquisition thesis and integration timeline
CEB acquisition expanded our market
opportunity giving us the ability to address the
mission critical priorities for all major
enterprise functions including Human
Resources, Finance, Sales and Legal.
Leveraging the same playbook Gartner
employed starting in 2004 around
engagement, retention, sales productivity, and
product development, we expect double-digit
growth in 2019 for GBS.
We laid the foundation with a number of
changes to set us up for double-digit growth:• Reconfigured contract terms and conditions
• Eliminated discounting
• Introduced new suite of products,
collectively called GxL
• Hired salesforce and trained them
on new products in 1H18
GxL products deliver greater value to
clients because they are tailored to a client’s
individual needs leading to higher prices per
user and stronger retention.
April
2017
2017 –
2018
2019 2020 &
beyond
14 © 2019 Gartner, Inc. and/or its affiliates. All rights reserved.
• Generation of free cash flow allows us to reinvest in
the business, return capital to shareholders and
execute strategic value-enhancing M&A.
• Over the last decade, we deployed $1.9B on buybacks
at a weighted average price of just over $61 per share.
1.73.5 3.4 3.3 3.0 2.5 2.2 2.3 2.3
1.20.6 0.6 0.5 0.2 0.1 0.2 0.2 0.1
3.6x 5.0x 4.9x 4.8x 4.2x 3.4x 3.0x 3.2x 3.3x
1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19
Gross Debt$ billions
Cash$ billions
Gross Debt/
LTM Adj EBITDA
($ in billions)
Note: LTM Adj. EBITDA is the sum of the last four quarters of combined Adj. EBITDA and
includes divested operations in periods when owned.
4
100
212
111182
432509
59 41
261
45
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Share Repurchases $ millions
$850M+ repurchase authorization remaining
as of 3/31/2019 of $1.2B plan
Capital structure and allocation
($ billions)
Debt 3/31/2019 Rate (1)
Revolver 0.2 LIBOR + 150
TLA 1.3 LIBOR + 150
Bonds 0.8 5.13%
Total Debt 2.3 3.99%
Revolver Unused Capacity 1.0 25 bps
Interest Rate Hedges 1.4 1.84%
% Debt With Fixed Rates 95%
(1) Floating and total rates reflect LIBOR and spread as of date shown
15 © 2019 Gartner, Inc. and/or its affiliates. All rights reserved.
Reinvesting for organic growth
EBITDA grows in line with RevenueGross Margin
expansion
G&A operating
leverage
Reinvested into
the salesforce
• We designed the Gartner
Formula to drive sustained,
long-term, double-digit growth.
We sustain growth and seek
to drive acceleration by
reinvesting gross margin
expansion and G&A operating
leverage back into the
salesforce.
• In the medium term, we
expect EBITDA to grow in line
with revenue.
16 © 2019 Gartner, Inc. and/or its affiliates. All rights reserved.
Medium-Term Objectives
Growth Rate
Research GTS
GBS
12 – 16%
12 – 16%
Conferences 5 – 10%
Consulting 3 – 8%
Revenue 10 – 14%
Adjusted EBITDA 10 – 14%
Free Cash Flow 10 – 14%
Note: Growth rates are organic, FX neutral.
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