Gartner, Inc. (NYSE:IT) Q2 2023 Earnings Call Transcript

Gene Hall: We’re looking at AI from a lot of perspectives. The first and most important one is what I talked about earlier, which is there’s a tremendous amount of client demand, and we’re the best source for clients to get help in AI. And it’s of a tremendous interest with them. So that’s the key place that we are most focused on. We actually use AI in our business today. We have for years in different parts of our business. And so, internally, we look at are there cost optimization opportunities we use internally? As I said, we’ve been doing that. We’re increasing the amount of that over time. We’re also looking at, can we support provide customer services [indiscernible] enhanced, all those kinds of things. I’d say, internally, those kinds of uses are going to be normal course of business.

We always focus on improved productivity. We have a lot of tools. Technology is a big part of the toolkit. And AI is just one of those tools improving productivity over time, which we’ve always been focused on. And so, I don’t see any kind of, like, some costs dropping by 50% or something because [indiscernible] part of our ongoing continuous improvement and continuous innovation that we’ve been doing for years.

Operator: Thank you. I’m showing no further questions in the queue. At this time, I will now turn the call back over to Mr. Gene Hall for any closing remarks.

Gene Hall: So here’s what I’d like you to take away from today’s call. Gartner drove another strong performance in Q2. We deliver unparalleled value to enterprise leaders and their teams across every major function, whether they’re thriving, struggling or anywhere in between. We’re exceptionally agile and continuously adapt to the changing world. We know the right things to do to be successful in any environment. Looking ahead, we’re well positioned to continue our sustained record of success far into the future. Our client value proposition and addressable market opportunity will allow us to drive long-term, sustained, double-digit revenue growth. We expect margins will expand modestly over time, and we generate significant free cash flow well in excess of net income.

Even as we invest for future growth, we’ll return significant levels of excess capital to our shareholders. This reduces shares outstanding and increases returns over time. Thanks for joining us today and we look forward to updating you again next quarter.

Operator: Ladies and gentlemen, that does conclude our conference for today. Thank you for your participation. You may now disconnect.