TechTarget, Inc. (NASDAQ: TTGT) today announced financial results
for the first quarter ended March 31, 2008. Total revenues for the
first quarter increased by 30% to $23.9 million compared to $18.3
million for the comparable prior year quarter. Online revenues
increased by 38% to $18.9 million and represented 79% of total
revenues. Adjusted EBITDA (earnings before interest, taxes,
depreciation, and amortization, as further adjusted for stock-based
compensation) increased by 24% to $3.6 million compared to $2.9
million for the comparable prior year quarter. "We continue to
execute well against the big opportunity in�our market�as evidenced
by our online revenue growth of 38% in the quarter," said Greg
Strakosch, Chairman and CEO of TechTarget.��The migration of
marketing dollars to targeted, online products that deliver
measurable ROI is continuing to fuel our growth.� Total gross
profit margin for the quarter was 68% compared to 67% for the
comparable prior year quarter. Online gross profit margin for the
quarter was 73% compared to 74% for the comparable prior year
quarter. Net loss for the quarter was $112,000 compared to net
income of $317,000 for the comparable prior year quarter. The
decrease in net income is primarily attributable to increases in
stock-based compensation expense and the amortization of intangible
assets expense. Adjusted net income (net income adjusted for
amortization and stock-based compensation, as further adjusted for
the related income tax impact) increased by 54% to $1.9 million
compared to $1.2 million for the comparable prior year quarter.
Loss per basic share for the quarter was $0.00 compared to net
income per basic share of $0.01 on a pro forma basis for the
comparable prior year quarter. Adjusted net income per share
(adjusted net income divided by adjusted weighted average diluted
shares outstanding) for the quarter was $0.04 compared to $0.03 on
a pro forma basis for the comparable prior year quarter. As of
March 31, 2008 TechTarget had $60.4 million�of cash, cash
equivalents and short term investments, and bank debt of $5.3
million. Recent Company Highlights Launched two new websites in the
Storage market: -- SearchDataBackup.com, focusing on the continued
growth in the backup market, which has been enabled by increased
compliance requirements around the storing and archiving of emails
and documents. Charter advertisers include Symantec, NetApp and
Data Domain. -- SearchSMBStorage.com addressing the storage issues
specific to small and mid-sized companies. Charter advertisers
include Dell and EMC. The integration of the KnowledgeStorm
acquisition continues on schedule. In the first quarter, TechTarget
completed its plan to take advantage of expense synergies. The
integration of the products and the education of the companies and
market are continuing. The Company expects to meet its goal of
completely integrating KnowledgeStorm by the end of Q2 2008.
TechTarget was named by The Boston Business Journal as one of the
2008 Top 20 Best Places to Work, in the Large Companies
category,�for the Greater Boston Area. This is the third time
TechTarget has been recognized by the publication. Other companies
on the list include: Genzyme, Digitas, Vertex Pharmaceuticals, KPMG
LLP and Comcast. Held the TechTarget Online ROI Summit �08 East in
Boston. Hundreds of customers and prospects attended the event to
learn the best ways to measure and improve the ROI of their online
marketing investments. Attendees included representatives from AMD,
CA, CDW, EMC, Google, HP, IBM, Iron Mountain, McAfee, Microsoft,
Motorola, Novell, Pitney Bowes and Sun Microsystems. Financial
guidance In the second quarter of 2008, the Company expects
revenues to be within the range of $30.4 million to $31.6 million
and adjusted EBITDA to be within the range of $8.6 million to $9.4
million. Annual guidance is unchanged from the Company�s guidance
provided in the February 13, 2008 earnings release. For the fiscal
year 2008, the Company expects revenues to be within the range of
$118.0 million to $122.0 million and adjusted EBITDA to be within
the range of $33.0 million to $35.0 million. Conference Call and
Webcast TechTarget will discuss these financial results in a
conference call at 4:30 pm (Eastern Time) today (May 6, 2008). The
public is invited to listen to a live webcast of TechTarget�s
conference call, which can be accessed on the Investor Relations
section of our website at http://investor.techtarget.com/. The
conference call can also be heard via telephone by dialing
888-680-0890 (US callers) or 617-213-4857 (International callers)
ten minutes prior to the call and referencing participant pass code
20740851 for both domestic and international callers. For those
investors unable to participate in the live conference call, a
replay of the conference call will be available via telephone
beginning May 6, 2008 at 7:00 p.m. ET through May 21, 2008. To
listen to the replay, dial 888-286-8010 and use the pass code
55243357. International callers should dial 617-801-6888 and also
use the pass code 55243357 to listen to the replay. The webcast
replay will also be available for replay on
http://investor.techtarget.com/ during the same period. Non-GAAP
Financial Measures This press release and the accompanying tables
include a discussion of adjusted EBITDA, adjusted EBITDA Margin,
adjusted net income and adjusted net income per share, all of which
are non-GAAP financial measures which are provided as a complement
to results provided in accordance with accounting principles
generally accepted in the United States of America ("GAAP"). The
term "adjusted EBITDA" refers to a financial measure that we define
as earnings before net interest, income taxes, depreciation, and
amortization, as further adjusted for stock-based compensation. The
term �adjusted EBITDA Margin� refers to a financial measure which
we define as adjusted EBITDA as a percentage of total revenues. The
term �adjusted net income� refers to a financial measure which we
define as net income adjusted for amortization and stock-based
compensation, as further adjusted for the related income tax impact
for the specific adjustments. The tax rates used in the
reconciliation represent the Company�s forecasted effective tax
rate excluding discrete tax items, such as non-disqualified
dispositions, occurring in the respective periods. The term
�adjusted net income per share� refers to a financial measure which
we define as adjusted net income divided by adjusted weighted
average diluted shares outstanding. These Non-GAAP measures should
be considered in addition to results prepared in accordance with
GAAP, but should not be considered a substitute for, or superior
to, GAAP results. In addition, our definition of adjusted EBITDA,
adjusted EBITDA Margin, adjusted net income and adjusted net income
per share may not be comparable to the definitions as reported by
other companies. We believe adjusted EBITDA, adjusted EBITDA
Margin, adjusted net income and adjusted net income per share are
relevant and useful information because it provides us and
investors with additional measurements to compare the Company�s
operating performance. These measures are part of our internal
management reporting and planning process and are primary measures
used by our management to evaluate the operating performance of our
business, as well as potential acquisitions. The components of
adjusted EBITDA include the key revenue and expense items for which
our operating managers are responsible and upon which we evaluate
their performance. In the case of senior management, adjusted
EBITDA is used as the principal financial metric in their annual
incentive compensation program. Adjusted EBITDA is also used for
planning purposes and in presentations to our board of directors.
Adjusted net income is useful to us and investors because it
presents an additional measurement of our financial performance,
taking into account depreciation, which we believe is an ongoing
cost of doing business, but excluding the impact of certain
non-cash expenses and items not directly tied to the core
operations of our business. Furthermore, we intend to provide these
non-GAAP financial measures as part of our future earnings
discussions and, therefore, the inclusion of these non-GAAP
financial measures will provide consistency in our financial
reporting. A reconciliation of these non-GAAP measures to GAAP is
provided in the accompanying tables. Forward Looking Statements
Certain matters included in this press release may be considered to
be "forward-looking statements" within the meaning of the
Securities Act of 1933 and the Securities Exchange Act of 1934, as
amended by the Private Securities Litigation Reform Act of 1995.
Those statements include statements regarding the intent, belief or
current expectations of the company and members of our management
team. All statements contained in this press release, other than
statements of historical fact, are forward-looking statements,
including those regarding: guidance on our future financial results
and other projections or measures of our future performance; our
expectations concerning market opportunities and our ability to
capitalize on them; and the amount and timing of the benefits
expected from acquisitions, from new products or services and from
other potential sources of additional revenue. Investors and
prospective investors are cautioned that any such forward-looking
statements are not guarantees of future performance and involve
risks and uncertainties, and that actual results may differ
materially from those contemplated by such forward-looking
statements. These statements speak only as of the date of this
press release and are based on our current plans and expectations,
and they involve risks and uncertainties that could cause actual
future events or results to be different than those described in or
implied by such forward-looking statements. These risks and
uncertainties include, but are not limited to, those relating to:
market acceptance of our products and services; relationships with
customers, strategic partners and our employees; difficulties in
integrating acquired businesses; and changes in economic or
regulatory conditions or other trends affecting the Internet,
Internet advertising and information technology industries. These
and other important risk factors are discussed or referenced in our
Annual Report on Form 10-K filed with the Securities and Exchange
Commission, under the heading "Risk Factors" and elsewhere, and any
subsequent periodic or current reports filed by us with the SEC.
Except as required by applicable law or regulation, we do not
undertake any obligation to update our forward-looking statements
to reflect future events or circumstances. About TechTarget
TechTarget, a leading online Information Technology (IT) media
company, provides IT companies with ROI-focused marketing programs
to generate leads, shorten sales cycles, and grow revenues. With
its network of 50 technology-specific Web sites and over 6.6
million registered members, TechTarget is a primary Web destination
for IT professionals researching which products to purchase. The
company is also a leading provider of independent, peer and vendor
content, a leading distributor of white papers, and a leading
producer of vendor-sponsored Webcasts and Podcasts for the IT
market. Its Web sites are complemented by numerous invitation-only
events and two magazines. TechTarget provides proven lead
generation and branding programs to over 1,100 advertisers
including Cisco, Dell, EMC, HP, IBM, Intel, Microsoft, SAP and
Symantec. (C) 2008 TechTarget, Inc. All rights reserved.
TechTarget, KnowledgeStorm and the TechTarget logo are registered
trademarks, and SearchDataBackup.com, SearchSMBStorage.com, and The
IT Media ROI Experts are trademarks, of TechTarget, Inc. All other
trademarks are the property of their respective owners. TechTarget,
Inc. Consolidated Balance Sheets (in $000's) � � March 31, 2008
December 31,2007 Assets (Unaudited) Current assets: Cash and cash
equivalents $ 38,297 $ 10,693 Short-term investments 22,107 51,308
Accounts receivable, net of allowance for doubtful accounts 17,055
15,198 Prepaid expenses and other current assets 4,324 1,962
Deferred tax assets � 2,802 � 2,947 Total current assets 84,585
82,108 � Property and equipment, net 4,094 4,401 Long-term
investments 1,950 - Goodwill 88,326 88,326 Intangible assets, net
of accumulated amortization 20,509 21,939 Deferred tax assets 3,180
2,910 Other assets 199 203 � � � � Total assets $ 202,843 $ 199,887
� Liabilities and Stockholders' Equity Current liabilities: Current
portion of bank term loan payable $ 3,000 $ 3,000 Accounts payable
3,775 2,919 Income taxes payable 47 1,031 Accrued expenses and
other current liabilities 1,740 2,473 Accrued compensation expenses
877 2,600 Deferred revenue � 6,734 � 3,761 Total current
liabilities 16,173 15,784 � Long-term liabilities: Other
liabilities 487 455 Bank term loan payable, net of current portion
� 2,250 � 3,000 Total liabilities 18,910 19,239 � Commitments - - �
Stockholders' equity: Preferred stock - - Common stock 41 41
Additional paid-in capital 213,233 209,773 Warrants 4 13
Accumulated other comprehensive loss (156 ) (102 ) Accumulated
deficit � (29,189 ) � (29,077 ) Total stockholders' equity 183,933
180,648 � � � � Total liabilities and stockholders' equity $
202,843 $ 199,887 TechTarget, Inc. Consolidated Statements of
Operations (in $000's, except�per share information) � For the
Three Months EndedMarch 31, 2008 � 2007 (Unaudited) Revenues:
Online $ 18,863 $ 13,709 Events 3,985 2,939 Print � 1,022 � 1,697
Total revenues � 23,870 � 18,345 � Cost of revenues: Online (1)
5,169 3,525 Events (1) 1,827 1,372 Print (1) � 546 � 1,129 Total
cost of revenues � 7,542 � 6,026 � Gross profit 16,328 12,319 �
Operating expenses: Selling and marketing (1) 8,444 6,152 Product
development (1) 2,762 1,748 General and administrative (1) 3,795
2,610 Depreciation 724 330 Amortization of intangible assets �
1,480 � 759 Total operating expenses � 17,205 � 11,599 � Operating
income (877 ) 720 � Interest income (expense): Interest income 532
360 Interest expense � (114 ) � (427 ) Total interest income
(expense) � 418 � (67 ) � (Loss) income before (benefit from)
provision for income taxes (459 ) 653 � (Benefit from) provision
for income taxes � (347 ) � 336 � Net (loss) income $ (112 ) $ 317
� Net loss per common share: Basic and Diluted $ 0.00 $ (0.28 ) �
Weighted average common shares outstanding: Basic and Diluted �
41,158 � 8,174 � � (1) Amounts include stock-based compensation
expense as follows: Cost of online revenue $ 98 $ 70 Cost of events
revenue 22 12 Cost of print revenue - 9 Selling and marketing 1,392
536 Product development 140 73 General and administrative 601 371
TechTarget, Inc. Reconciliation of GAAP to Non-GAAP Measures � � �
Reconciliation of Net (Loss) Income�to Adjusted EBITDA (in $000's)
� For the Three Months EndedMarch 31, 2008 � 2007 (Unaudited) � � �
Net (Loss) Income $ (112 ) $ 317 Interest Income (Expense), net 418
(67 ) (Benefit From) Provision For Income Taxes (347 ) 336
Depreciation 724 330 Amortization of Intangible Assets � 1,480 �
759 EBITDA � 1,327 � 1,809 Stock-Based Compensation Expense � 2,253
� 1,071 Adjusted EBITDA $ 3,580 $ 2,880 Reconciliation of Net
(Loss) Income to Adjusted Net Income and Net Loss per Diluted Share
to Adjusted Net Income per Share (in $000's, except per share
amounts) � For the Three Months EndedMarch 31, 2008 � 2007
(Unaudited) � � � Net (Loss) Income $ (112 ) $ 317 Amortization of
Intangible Assets 1,480 759 Stock-Based Compensation Expense 2,253
1,071 Impact of Income Taxes � 1,755 � 933 Adjusted Net Income $
1,866 $ 1,214 � � � � � � � � � Net Loss per Diluted Share $ (0.00
) $ (0.28 ) Weighted Average Diluted Shares Outstanding � 41,158 �
8,174 � � � � � Adjusted Net Income per Share $ 0.04 $ 0.03
Adjusted Weighted Average Diluted Shares Outstanding � 43,465 �
36,290 Options, Warrants and Restricted Stock, Treasury Method
Included in Adjusted Weighted Average Diluted Shares Above 2,307 -
Pro Forma Adjustment Including Assumed Conversion of Redeemable
Convertible Preferred Stock � - � 28,116 Weighted Average Diluted
Shares Outstanding � 41,158 � 8,174 TechTarget, Inc. Financial
Guidance Summary (in $000's) � � � For the Three Months EndedJune
30, 2008 For the Year Ended December 31,2008 Range Range � � � � �
� � � � Revenues $ 30,400 $ 31,600 $ 118,000 $ 122,000 � � � � � �
� � � Adjusted EBITDA $ 8,600 $ 9,400 $ 33,000 $ 35,000 Interest
Income, net 295 295 1,287 1,287 Depreciation, Amortization and
Stock-Based Compensation 4,170 4,170 17,184 17,184 Provision for
Income Taxes � 2,079 � 2,431 � 7,823 � 9,703 Net Income $ 2,646 $
3,094 $ 9,280 $ 9,400
Tech Target (NASDAQ:TTGT)
Historical Stock Chart
From Jun 2024 to Jul 2024
Tech Target (NASDAQ:TTGT)
Historical Stock Chart
From Jul 2023 to Jul 2024