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 Gartner Reports Financial Results for First Quarter 2017
   Thursday, May 04, 2017 6:00:07 AM ET

--First Quarter Revenue Increased 13% FX Neutral to $625.2 Million

Gartner, Inc. (IT ) is the world’s leading research and advisory company and today reported results for first quarter 2017. Gartner also provided an update to its financial outlook for full year 2017, which includes its projections for CEB Inc. ("CEB"), which Gartner acquired on April 5, 2017, as previously announced.

For first quarter 2017, total revenue was $625.2 million, an increase of 12% over first quarter 2016 and 13% adjusted for the foreign exchange impact. Net income was $36.4 million in first quarter 2017, while Adjusted EBITDA was $106.1 million, an increase of 3% over first quarter 2016 as reported and 1% adjusted for the foreign exchange impact. GAAP Diluted EPS was $0.43 in first quarter 2017 compared to $0.54 in first quarter 2016. Adjusted EPS was $0.60 in first quarter 2017 compared to $0.67 in first quarter 2016. (See "Non-GAAP Financial Measures" below for definitions of Adjusted EBITDA and Adjusted EPS). For first quarter 2016, both the previously reported GAAP Diluted EPS and Adjusted EPS have increased by $0.06 per share due to the Company’s adoption of FASB Accounting Standards Update (ASU) No. 2016-09 (see below for additional discussion).

Gene Hall, Gartner’s chief executive officer, commented, "We delivered another strong quarter of double-digit growth in revenue and contract value for the first quarter of 2017. We closed the acquisition of CEB and remain extremely excited about our prospects for long term growth in both the Gartner and CEB businesses".

Business Segment Highlights

Research

Revenue for first quarter 2017 was $504.7 million, up 15% compared to first quarter 2016 on both a reported basis and adjusted for the foreign exchange impact. The quarterly gross contribution margin was 69% and 70% in first quarter 2017 and 2016, respectively. Total contract value was $1.95 billion at March 31, 2017, an increase of 13% on a reported basis and 15% on a foreign exchange neutral basis compared to March 31, 2016. Client retention was 83% and 84% in first quarter of 2017 and 2016, respectively. Wallet retention was 104% and 105% in first quarter 2017 and 2016, respectively.

Consulting

Revenue for first quarter 2017 was $85.2 million, which was flat on a reported basis compared to first quarter 2016 but an increase of 2% adjusted for the foreign exchange impact. The gross contribution margin was 33% and 35% in first quarter 2017 and 2016, respectively. First quarter 2017 utilization was 65% compared to 67% in first quarter 2016. As of March 31, 2017, billable headcount was 650 compared to 618 at March 31, 2016. Backlog was $103.2 million at March 31, 2017 compared to $114.1 million at March 31, 2016.

Events

Revenue for first quarter 2017 was $35.3 million compared to $32.1 million in the first quarter 2016, an increase of 10% on a reported basis and 11% adjusted for the foreign exchange impact. The gross contribution margin was 38% in first quarter 2017 compared to 41% in the prior year quarter. The Company held 11 events with 9,035 attendees in first quarter 2017 compared to 12 events with 7,640 attendees in first quarter 2016.

Cash Flow and Balance Sheet Highlights

Gartner used $29.6 million of cash in its operating activities in the first quarter of 2017 compared to cash generated of $13.3 million in the first quarter of 2016. Free Cash Flow for the first quarter of 2017 was $(22.7) million compared to $17.9 million in first quarter of 2016 (See "Non-GAAP Financial Measures" below for the definition of Free Cash Flow). During first quarter 2017 the Company used $22.0 million in cash to repurchase its common shares, $129.3 million for acquisitions, $10.7 million for capital expenditures, and $17.6 million for acquisition and integration payments. After the close of the CEB transaction, the Company had $640.0 million of cash and $630.0 million of additional borrowing capacity under its revolving credit facility.

Acquisition of CEB

On April 5, 2017, Gartner completed the acquisition of CEB by acquiring all of the outstanding shares of CEB in a cash and stock transaction with a total enterprise value of approximately $3.5 billion gross. Additional information regarding the acquisition is provided in the Company’s March 31, 2017 Quarterly Report on Form 10-Q or on Gartner’s website at http://investor.gartner.com .

Impact of the Adoption of FASB ASU No. 2016-09 on our Previously Reported Q1 2016 Numbers

In the third quarter of 2016 the Company early adopted Financial Accounting Standards Board Update 2016-09, Improvements to Employee Share-Based Payment Accounting ("ASU No. 2016-09"), which changed the accounting for stock-based awards. The accounting changes required by ASU No. 2016-09 were applied to the beginning of the Company’s 2016 fiscal year, and as a result certain previously reported financial results for the three months ended March 31, 2016 have changed. These changes include a $4.8 million increase in net income, and a $0.06 increase in each of GAAP basic earnings per share, GAAP diluted earnings per share and Adjusted earnings per share. In addition, our previously reported operating cash flow for the three months March 31, 2016 increased by $4.8 million. Note 1 in the Notes to the Financial Statements in the Company’s March 31, 2017 Quarterly Report on Form 10-Q provides additional information.

Financial Outlook for 2017

The Company also provided an update to its financial outlook for full year 2017, to include CEB:

                                                                                                                                                                                                                         
($ in millions, except per share data) (1)                                                                                                                                                                                                   2017 Projected Range
------------------------------------------                      ------------------------------------------------------------------------------------------------------------------------------------------------------------------                              ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                  Gartner                                                                                                                                                                        CEB                                                                                                                                                                Combined
Revenue (GAAP):                                                                                                                                                                                                                                                                                                                                                                                                                      
Research                                                                           $            2,070                      --                                         $            2,105                          --                                                              --                                         $   2,070                                           --                                         $   2,105
Consulting                                                                                                           345                      --                                                                           360                                             --                                                                                 --                                                                  345                                           --                                                                  360
Events                                                                                                               285                      --                                                                           300                                             --                                                                                 --                                                                  285                                           --                                                                  300
CEB                                                                 --                                                              --                      $              519                      --                      $              549                                         $     519                        --                                         $     549  
                                                                -------------------- -------------------- --------------                                                          -------------------- -------------------- --------------                      - -------------------- --------------                                                          - -------------------- --------------                      -------------------- -------------------- ----- --------------------                                                          -------------------- -------------------- ----- --------------------
Total Revenue (GAAP)                                                               $                               2,700                      --                                         $                               2,765                      $                                 519                      --                      $                                 549                                         $                      3,219                                           --                                         $                      3,314
Deferred Revenue Fair Value Adjustment                                                                    --                                                                                                    --                                                        209                      --                                                        209                                                                  209                                                                                                                           209
Total Adjusted Revenue (Non-GAAP)                                                  $            2,700                                                                             $            2,765                      $              728                                                          $              758                                         $   3,428                                                                               $   3,523  
                                                                ==================== ==================== ==============                                                          ==================== ==================== ==============                      = ==================== ==============                                                          = ==================== ==============                      ==================== ==================== ===== ====================                                                          ==================== ==================== ===== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
Adjusted EBITDA (Non-GAAP)                                                         $              495                      --                                         $              530                      $              190                      --                      $              205                                         $     685                        --                                         $     735  
                                                                -------------------- -------------------- --------------                                                          -------------------- -------------------- --------------                      - -------------------- --------------                                                          - -------------------- --------------                      -------------------- -------------------- ----- --------------------                                                          -------------------- -------------------- ----- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                                                          ---------------------------------------------------------------------                                                         ---------------------------------------------------------------------
Operating Income (GAAP)                                                                                                                                                                                                                                                                                                                                                                                                                      $     (42 )                                                                                                $       8  
                                                                                                                                                                                                                                                                                                                                                                                                                          -------------------- -------------------- ----- --------------------                                                          -------------------- -------------------- ----- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
Diluted EPS (GAAP)                                                                                                                                                                                                                                                                                                                                                                                                                           $                      (1.16 )                                                                                                $                      (0.76 )
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
Adjusted EPS (Non-GAAP)                                                                                                                                                                                                                                                                                                                                                                                                                      $                       3.32                                                                                                  $                       3.60
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
Operating Cash Flow (GAAP)                                                                                                                                                                                                                                                                                                                                                                                                                   $                        315                                                                                                  $                        345
Acquisition and Integration Payments                                                                                                                                                                                                                                                                                                                                                                                                                                  115                                                                                                                           125
Capital Expenditures                                                                                                                                                                                                                                                                                                                                                                                                            (95 )                                                                                  (105 )
                                                                                                                                                                                                                                                                                                                                                                                                                          -------------------- -------------------- ----- --------------------                                                          -------------------- -------------------- ----- --------------------
Free Cash Flow (Non-GAAP)                                                                                                                                                                                                                                                                                                                                                                                                                    $     335                                                                               $     365  
------------------------------------------                                                                                                                                                                                                                                                                                                                                                                                ==================== ==================== ===== ====================                                                          ==================== ==================== ===== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         

(1) See "Non-GAAP Financial Measures" below for definitions of Adjusted Revenue, Adjusted EBITDA, Adjusted EPS, and Free Cash Flow.

Conference Call Information

Gartner has scheduled a conference call at 8:00 a.m. eastern time on Thursday, May 4, 2017 to discuss the Company’s financial results for first quarter 2017. The conference call will be available via the Internet by accessing the Company’s website at http://investor.gartner.com or by dial-in. The U.S. dial-in number is 888-680-0865 and the international dial-in number is 617-213-4853. The participant passcode is 16757805#. The question and answer session of the conference call will be open to investors and analysts only. A replay of the webcast will be available for approximately 30 days following the call on the Company’s website. In addition, a transcript of the call will also be available on the Company’s website shortly after the conclusion of the call.

Annual Meeting of Stockholders

Gartner will hold its 2017 Annual Meeting of Stockholders at 10:00 a.m. eastern time on June 1, 2017 at the Company’s offices in Stamford, Connecticut.

About Gartner

Gartner, Inc. (IT ) is the world’s leading research and advisory company. We help business leaders across all major functions in every industry and enterprise size with the objective insights they need to make the right decisions. Our comprehensive suite of services delivers strategic advice and proven best practices to help clients succeed in their mission-critical priorities. Gartner is headquartered in Stamford, Connecticut, U.S.A., and has 13,000 associates serving clients in over 11,000 enterprises in over 90 countries. For more information, visit www.gartner.com.

Non-GAAP Financial Measures

Certain financial measures used in this Press Release are not defined by generally accepted accounting principles ("GAAP") and as such are considered non-GAAP financial measures. We provide these measures to enhance the user’s overall understanding of the Company’s current financial performance and the Company’s prospects for the future. Investors are cautioned that these Non-GAAP financial measures are not defined in the same manner by other companies and as a result may not be comparable to other similarly titled measures used by other companies. Also, these Non-GAAP financial measures should not be construed as alternatives to other measures determined in accordance with GAAP.

The Company’s Non-GAAP financial measures are as follows:

Adjusted Revenue: Represents GAAP revenue plus non-cash fair value adjustments on pre-acquisition deferred revenues. The majority of the pre-acquisition deferred revenue is recognized ratably over the remaining period of the underlying revenue contract. We believe Adjusted Revenue is an important measure of our recurring operations as it provides a more accurate period-over-period comparison of trends in revenues.

Adjusted EBITDA: Represents GAAP operating income excluding stock-based compensation expense, depreciation and amortization, accretion on obligations related to excess facilities, acquisition and integration adjustments, and other charges. We believe Adjusted EBITDA is an important measure of our recurring operations as it excludes items that may not be indicative of our core operating results.

Adjusted EPS: Represents GAAP diluted earnings per share adjusted for the impact of certain items directly related to acquisitions and other charges. The adjustment items consist of the amortization of identifiable intangibles; incremental acquisition and integration charges related to the achievement of certain performance targets and employment conditions, as well as legal, consulting, severance, and other costs; and non-cash fair value adjustments on pre-acquisition deferred revenues. We believe Adjusted EPS is an important measure of our recurring operations as it excludes items that may not be indicative of our core operating results.

Free Cash Flow: Represents GAAP cash (used in) provided by operating activities plus cash acquisition and integration payments less payments for capital expenditures. We believe that Free Cash Flow is an important measure of the recurring cash generated by the Company’s core operations that may be available to be used to repurchase our stock, repay debt obligations, invest in future growth through new business development activities, or make acquisitions.

Tables provided in this Press Release provide reconciliations of these Non-GAAP financial measures with the most directly comparable GAAP measure.

Safe Harbor Statement

Statements contained in this press release regarding the Company’s growth and prospects, projected financial results and all other statements in this release 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 that may cause actual results to be materially different.

Such factors include, but are not limited to, the following: our ability to achieve and effectively manage growth, including our ability to integrate our recent CEB acquisition and other acquisitions, and consummate and integrate future acquisitions; our ability to pay our debt, which has increased substantially with the recent CEB acquisition; our ability to maintain and expand our products and services; our ability to expand or retain our customer base; our ability to grow or sustain revenue from individual customers; our ability to attract and retain a professional staff of research analysts and consultants as well as experienced sales personnel upon whom we are dependent; our ability to achieve continued customer renewals and achieve new contract value, backlog and deferred revenue growth in light of competitive pressures; our ability to carry out our strategic initiatives and manage associated costs; our ability to successfully compete with existing competitors and potential new competitors; our ability to enforce or protect our intellectual property rights; additional risks associated with international operations including foreign currency fluctuations; the impact of restructuring and other charges on our businesses and operations; general economic conditions; risks associated with the creditworthiness and budget cuts of governments and agencies; and other factors described under "Risk Factors" contained in our Annual Report on Form 10-K for the year ended December 31, 2016, which can be found on Gartner’s website at www.investor.gartner.com and the SEC’s website at www.sec.gov.

Forward-looking statements included herein speak only as of the date hereof and Gartner disclaims any obligation to revise or update such statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events or circumstances.

                                                                                                                                                                                
                                                                                                                                 GARTNER, INC.
                                                                                                                       Condensed Consolidated Statements
                                                                                                                                 of Operations
                                                                                                                     (Unaudited; in thousands, except per
                                                                                                                                share amounts)
                                                                                                                                                                                                                                           
                                                                                                                                            Three Months Ended
                                                                                                                                                 March 31,
                                                                                                              2017                                                   2016
                                                                                      -----------------------------------------------------                     -----------------------------------------------------
Revenues:
   Research                                                                            $   504,652                                            $   440,271                                                       15                    %
   Consulting                                                                                                  85,248                                                                    84,940                                           --                    %
   Events                                                                                                      35,269                                                 32,055                                    10                    %
                                                                                      ----------------------------------------------------                      ----------------------------------------------------
Total revenues                                                                                                625,169                                                                   557,266                                                       12                    %
Costs and expenses:
   Cost of services and product development                                                                   237,609                                                                   212,041                                                       12                    %
   Selling, general and administrative                                                                        304,244                                                                   257,411                                                       18                    %
   Depreciation                                                                                                10,240                                                                     8,834                                                       16                    %
   Amortization of intangibles                                                                                  6,290                                                                     6,183                                                        2                    %
   Acquisition and integration charges                                                                         13,272                                                  8,368                                    59                    %
                                                                                      ----------------------------------------------------                      ----------------------------------------------------
Total costs and expenses                                                                                      571,655                                                492,837                                    16                    %
                                                                                      ----------------------------------------------------                      ----------------------------------------------------
   Operating income                                                                                            53,514                                                                    64,429                                                      (17                   )%
Interest expense, net                                                                                          (5,906 )                                                                  (6,006 )                                                     (2                   )%
Other income, net                                                                                                 889                                                  1,884                                   (53                   )%
                                                                                      ----------------------------------------------------                      ----------------------------------------------------
Income before income taxes                                                                                     48,497                                                                    60,307                                                      (20                   )%
Provision for income taxes                                                                                     12,064                                                 15,320                                   (21                   )%
                                                                                      ----------------------------------------------------                      ----------------------------------------------------
   Net income                                                                          $    36,433                         $    44,987                                   (19                   )%
                                                                                      == ==================== ======= ====================                      == ==================== ======= ====================
                                                                                                                                                                                                                                           
Income per common share:
   Basic                                                                               $                         0.44                                            $                         0.55                                                      (20                   )%
   Diluted                                                                             $                         0.43                                            $                         0.54                                                      (20                   )%
Weighted average shares outstanding:
   Basic                                                                                                       82,835                                                                    82,451                                           --                    %
   Diluted                                                                                                     84,095                                                 83,464                                     1                    %
                                                                                      ----------------------------------------------------                      ----------------------------------------------------
                                                                                                                                                                                                                                                          
 
BUSINESS SEGMENT DATA
(Unaudited; in thousands)
                                                        Revenue                                                Direct                                                   Gross                              Contribution
                                                                                                                                                                                           Expense                                                                 Contribution                                                 Margin
                                                                                          -------------------------------------------------                         -------------------------------------------------                         --------------------------------------------------                         --------------------
Three Months Ended 3/31/17
Research                                                                                   $   504,652                                            $   157,944                                             $   346,708                                                    69%
Consulting                                                                                                         85,248                                                                    56,906                                                                     28,342                                                    33%
Events                                                                                                             35,269                                                 21,702                                                  13,567                                 38%
                                                                                          ----------------------------------------------------                      ----------------------------------------------------                      -----------------------------------------------------
TOTAL                                                                                      $   625,169                         $   236,552                          $   388,617                                 62%
                                                                                          == ==================== ======= ====================                      == ==================== ======= ====================                      === ==================== ======= ====================
Three Months Ended 3/31/16
Research                                                                                   $                      440,271                                            $                      132,085                                             $                      308,186                                                    70%
Consulting                                                                                                         84,940                                                                    55,562                                                                     29,378                                                    35%
Events                                                                                                             32,055                                                 19,072                                                  12,983                                 41%
                                                                                          ----------------------------------------------------                      ----------------------------------------------------                      -----------------------------------------------------
TOTAL                                                                                      $   557,266                         $   206,719                          $   350,547                                 63%
                                                                                          == ==================== ======= ====================                      == ==================== ======= ====================                      === ==================== ======= ====================
                                                                                                                                                                                                                                                                                                                          
                                                                                                                      
SELECTED STATISTICAL DATA (unaudited)
 
                                                                                                               March 31,                                                                                         March 31,
                                                                                                                 2017                                                                                              2016
                                                                                                   ------------------------------                                                                  ---------------------------------
Total contract value (a), (b)                                                                        $   1.953                                                                                          $   1.721
Research client retention                                                                                   83 %                                                                                               84 %
Research wallet retention                                                                                  104 %                                                                                              105 %
Research client enterprises                                                                             11,166                                                                                             10,474
                                                                                                                                                                                                    
Consulting backlog (c)                                                                               $ 103,200                                                                                          $ 114,100
Consulting--quarterly utilization                                                               65 %                                                                                               67 %
Consulting billable headcount                                                                              650                                                                                                618
Consulting--average annualized revenue per billable headcount (c)                        $     359                                                                                          $     386
                                                                                                                                                                                                    
Events--number of events for the quarter                                                        11                                                                                                 12
Events--attendees for the quarter                                                            9,035                                                                           7,640  
-----------------------------------------------------------------------------                      --------------------------------                                                                -----------------------------------
(a)     Total contract value represents the 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. Total contract value
                                              primarily includes Research deliverables for which revenue is
                                              recognized on a ratable basis, as well as other deliverables
                                              (primarily Events tickets) for which revenue is recognized when the
                                              deliverable is utilized.
(b)                                           In billions.
(c)                                           In thousands.
                                               
                                                          
SUPPLEMENTAL INFORMATION
                                                                               
Reconciliation - Operating income to Adjusted EBITDA (a)
(Unaudited; in thousands):
 
                                                                                                                                    Three Months Ended
                                                                                                                                         March 31,
                                                                              ----------------------------------------------------------------------------------------------------------------------
                                                                                                      2017                                                   2016
                                                                              -----------------------------------------------------                     -----------------------------------------------------
Net income                                                                     $    36,433                                            $    44,987
Interest expense, net                                                                                   5,906                                                                     6,006
Other income, net                                                                                        (889 )                                                                  (1,884 )
Tax provision                                                                                          12,064                                                 15,320  
                                                                              ----------------------------------------------------                      ----------------------------------------------------
Operating income                                                               $                       53,514                                            $                       64,429
Normalizing adjustments:
Stock-based compensation expense (b)                                                                   22,576                                                                    15,495
Depreciation, accretion, and amortization (c)                                                          16,553                                                                    15,038
Acquisition and integration adjustments (d)                                                            13,415                                                  8,368  
                                                                              ----------------------------------------------------                      ----------------------------------------------------
   Adjusted EBITDA                                                             $   106,058                         $   103,330  
--------------------------------------------------------                      == ==================== ======= ====================                      == ==================== ======= ====================
                                                                                                                                                                                         
(a)     Adjusted EBITDA is based on GAAP operating income adjusted for
                                              certain normalizing adjustments.
(b)                                           Consists of charges for stock-based compensation awards.
(c)                                           Includes depreciation expense, accretion on excess facilities
                                              accruals, and amortization of intangibles.
(d)                                           Consists of directly-related incremental expenses from acquisitions
                                              and non-cash fair value adjustments on pre-acquisition deferred
                                              revenues.
                                               
 
Reconciliation - GAAP Diluted Earnings Per Share to Adjusted
Earnings Per Share (a) (Unaudited; in thousands, except per
share amounts):
                                                                                                                                                                           Three Months Ended March 31,
                                                                                                                                                                      2017                                                                                                                           2016
                                                                                                           --------------------------------------------------------------------------------------------------------------------------                     --------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                   Total                                                EPS                                                                    Total                                                   EPS
                                                                                                                                  Amount                                                                                                                                         Amount
                                                                                                           ------------------------------------------------                         ---------------------------------------------                         ------------------------------------------------                         ---------------------------------------------------
GAAP diluted earnings per share                                                                             $   36,433                                           $   0.43                                            $   44,987                                           $         0.54
Acquisition and other adjustments:
Amortization of acquired intangibles (b)                                                                                            6,196                                                                  0.07                                                                    6,089                                                                        0.07
Acquisition and integration adjustments (c)                                                                                        13,415                                                                  0.16                                                                    8,368                                                                        0.10
   Tax impact of adjustments (d)                                                                                                   (5,406 )                                                               (0.06 )                                                                 (3,715 )                                                                     (0.04 )
                                                                                                           ---------------------------------------------------                      ------------------------------------------------                      ---------------------------------------------------                      ------------------------------------------------------
Adjusted earnings per share (e)                                                                             $   50,638                        $   0.60                         $   55,729                        $         0.67  
                                                                                                           == ==================== ====== ====================                      = ==================== ==== ====================                      == ==================== ====== ====================                      = ==================== ========== ====================
                                                                                                                                                                                                                                                                                                                                                           
(a)     Adjusted earnings per share represents GAAP diluted earnings per
                                              share adjusted for the impact of certain items directly-related to
                                              acquisitions and other items.
(b)                                           Consists of non-cash amortization charges from acquired intangibles.
(c)                                           Consists of directly-related incremental charges from acquisitions
                                              and non-cash fair value adjustments on pre-acquisition deferred
                                              revenues.
(d)                                           The effective tax rates were 28% and 26% for the three months ended
                                              March 31, 2017 and 2016, respectively.
(e)                                           Calculated based on 84.1 million and 83.5 million shares for the
                                              three months ended March 31, 2017 and 2016, respectively.
                                               
 
Reconciliation - Cash Provided by Operating Activities to Free
Cash Flow (a) (Unaudited; in thousands):
                                                                                                   Three Months Ended
                                                                                                                                                                 March 31,
                                                                                                               ---------------------------------------------------------------------------------------------------
                                                                                                                              2017                                          2016
                                                                                                               -----------------------------------                     ----------------------------------------------------
Cash (used in) provided by operating activities                                                                 $   (29,605 )                        $   13,331
Adjustments:
Cash acquisition and integration payments                                                                                               17,585                                                 11,100
Cash paid for capital expenditures                                                                                                     (10,700 )                                               (6,560 )
                                                                                                               ----------------------------------                      ---------------------------------------------------
   Free Cash Flow                                                         $   (22,720 )                        $   17,871  
----------------------------------------------- -------------------- --------------------                      == ==================== ======= ==                      == ==================== ====== ====================
                                                                                                                                                                                                       
(a)     Free cash flow is based on cash provided by operating activities
                                              determined in accordance with GAAP plus cash acquisition and
                                              integration payments less additions to capital expenditures.

http://cts.businesswire.com/ct/CT?id=bwnews&sty=20170504005460r1&sid=cmtx6&distro=nx&lang=en

View source version on businesswire.com: http://www.businesswire.com/news/home/20170504005460/en/

SOURCE: Gartner, Inc.

Gartner, Inc. 
Sherief Bakr, +1-203-316-6537 
Group Vice President, Investor Relations 
investor.relations@gartner.com


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