Benzinga | Nov 2, 2021 10:57AM EDT

Contract Value Growth Drives Gartner's Q3 Beat, Raises FY21 Outlook Above Consensus

* Gartner Inc (NYSE:IT) reported third-quarter FY21 revenue growth of 16.3% year-on-year to $1.16 billion, beating the consensus of $1.13 billion.

* Revenues from Research rose 16.2% Y/Y to $1.04 billion, and Conferences was $24.4 million, up 92.1% Y/Y. Consulting revenue grew 6.2% Y/Y to $94.7 million.

* Global Technology Sales Contract Value rose 11.8% Y/Y to $3.2 billion on a neutral currency basis. Global Business Sales Contract Value increased 22.3% Y/Y to $0.8 billion on a neutral currency basis.

* Adjusted EPS of $2.03 beat the consensus of $1.56.

* The adjusted EBITDA margin expanded by 950 bps to 26.4%.

* Gartner generated $345 million in operating cash flow.

* "Our strong growth in contract value, revenue, EBITDA, and free cash flow continued in the third quarter. We repurchased more than $1.4 billion of stock year-to-date and remain committed to returning excess capital to shareholders. We are again raising our guidance to reflect the momentum we have seen through the first three quarters of the year," CEO Gene Hall said.

* Outlook: Gartner raised the FY21 revenue guidance from $4.57 billion to $4.66 billion above the consensus of $4.63 billion.

* It raised the adjusted EPS outlook from $7.60 to $8.54, above the consensus of $7.80.

* Price Action: IT shares closed lower by 1.06% at $328.40 on Monday.