On November 2, 2023, Information Services Group Inc (III, Financial), a leading global technology research and advisory firm, announced its financial results for the quarter ended September 30, 2023. The company reported record third-quarter revenues of $72 million, marking its best topline performance ever in a third quarter.
Financial Performance
The company reported revenues of $71.8 million, up 4.3% from $68.8 million in the prior year. The reported revenues were positively impacted by currency translation by $1.4 million versus the prior year. The revenues were $42.5 million in the Americas, up 1%; $22.1 million in Europe, up 14%; and $7.2 million in Asia Pacific, down 2% versus the prior year.
However, the company reported a decrease in operating income and net income. The third-quarter operating income was $6.2 million, down 16% from $7.4 million in the third quarter of 2022. The reported third-quarter net income was $3.2 million, down 42% from net income of $5.6 million in the prior year. The fully diluted earnings per share was $0.06, compared with $0.11 per fully diluted share in the prior year.
Acquisition of Ventana Research
Information Services Group Inc (III, Financial) announced the acquisition of Ventana Research, a leading technology research firm specializing in the software industry. This move is expected to expand the capabilities of ISG Research, an important and fast-growing recurring-revenue-stream business for ISG. The acquisition is expected to increase ISG's market research coverage and accelerate the growth of its Software Advisory business with enterprises.
Outlook
For the fourth quarter, ISG is targeting revenues of between $68 million and $71 million and adjusted EBITDA of between $9.0 million and $10.5 million. The company will continue to monitor the macroeconomic and geopolitical environment, and other factors, and adjust its business plans accordingly.
Dividend Announcement
The ISG Board of Directors declared a fourth-quarter dividend of $0.045 per share payable on December 20, 2023, to shareholders of record on December 5, 2023.
Explore the complete 8-K earnings release (here) from Information Services Group Inc for further details.
