Gartner's CEO Discusses Q2 2012 Results - Earnings Call Transcript

With that, I’ll hand the call to Chris, who can comment in detail on our second quarter results.

Chris Lafond

Thanks, Gene and good morning, everyone. We delivered another very strong quarter in Q2. On an FX neutral basis, we once again achieved double-digit growth in revenue, earnings and cash flow. In research, year-over-year contract value growth remained strong at 14% on an FX neutral basis, and retention rates ended at or near all-time highs.

In Events, our revenues were up 16% FX neutral and accelerated in Q2 from Q1 on a same events basis. And in Consulting, our benchmark and core Consulting businesses grew a combined 9% year-over-year FX neutral while our Contract Optimization business was lower year-over-year as a few deals moved into Q3.

Demand for our services was robust across all three business segments in the second quarter. Our strong top line performance and effective execution in capitalizing on the operating leverage in our business allowed us to once again expand our gross contribution margin, which is now at 60%, up from 59% in Q2 of 2011.

As a result, we delivered significant growth in earnings in Q2. In the second quarter, normalized EBITDA increased 16% year-over-year and our GAAP diluted earnings per share were up 34%. With this strong start, we’re well positioned for continued growth for the remainder of 2012. These results again demonstrate the continued successful execution of our strategy, our ability to consistently deliver on the long-term financial objectives we have established over the past few years and the overall value we bring to the strategic IT initiatives of our clients.

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