2022 Corporate Responsibility Report
Definitions of Key Metrics/Calculations
Segment
Research
Conference
Consulting
Business Measurements
Contract value represents the dollar value attributable to all of our subscription-related contracts. It is calculated as the annualized value of
all contracts in effect at a specific point in time, without regard to the duration of the contract. Contract value primarily includes Research
deliverables for which revenue is recognized on a ratable basis, as well as other deliverables (primarily Conferences tickets) for which
revenue is recognized when the deliverable is utilized. Comparing contract value year-over-year not only measures the short-term growth of
our business, but also signals the long-term health of our Research subscription business since it measures revenue that is highly likely to
recur over a multi-year period. Our contract value consists of Global Technology Sales contract value, which includes sales to users and
providers of technology, and Global Business Sales contract value, which includes sales to all other functional leaders.
Client retention rate represents a measure of client satisfaction and renewed business relationships at a specific point in time. Client
retention is calculated on a percentage basis by dividing our current clients, who were also clients a year ago, by all clients from a year ago.
Client retention is calculated at an enterprise level, which represents a single company or customer.
Wallet retention rate represents a measure of the amount of contract value we have retained with clients over a twelve-month period.
Wallet retention is calculated on a percentage basis by dividing the contract value of our current clients, who were also clients a year ago, by
the contract value from a year ago, excluding the impact of foreign currency exchange. When wallet retention exceeds client retention, it is
an indication of retention of higher-spending clients, or increased spending by retained clients, or both. Wallet retention is calculated at an
enterprise level, which represents a single company or customer.
Number of destination conferences represents the total number of hosted virtual or in-person conferences completed during the period.
Single day, local meetings are excluded.
Number of destination attendees represents the total number of people who attend virtual or in-person conferences. Single day, local
meetings are excluded.
Consulting backlog represents future revenue to be derived from in-process consulting and benchmark analytics engagements.
Utilization rate represents a measure of productivity of our consultants. Utilization rates are calculated for billable headcount on a
percentage basis by dividing total hours billed by total hours available to bill.
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Note: Please see Gartner's 2023 SEC Form 10-K for additional definitions and explanations about the business.
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