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TheStreet Open House

TechTarget Reports Second Quarter 2011 Financial Results

About TechTarget

TechTarget, Inc. ( www.techtarget.com) (NASDAQ: TTGT) is a leading global technology media company with over 100 technology-specific websites, 10 million registered members, and more than 10 years of groundbreaking accomplishments. Our extensive editorial and vendor-sponsored content fulfills the needs of tech pros looking for in-depth coverage of technology topics throughout their buying process and positions us to meet the needs of technology marketers targeting qualified technology audiences. Outside of North America, TechTarget runs 23 websites and has offices in London, Mumbai and Beijing.

(C) 2011 TechTarget, Inc. All rights reserved. TechTarget and the TechTarget logo are registered trademarks of TechTarget. Activity Intelligence, Enhanced Contact Profiles, Account Intelligence and TechTarget Engage are trademarks of TechTarget. All other trademarks are the property of their respective owners.

             
TECHTARGET, INC.
Consolidated Statements of Operations
(in $000's, except per share amounts)
 
Three Months Ended

June 30,

Six Months Ended

June 30,

2011 2010 2011 2010
(Unaudited)
Revenues:
Online $ 24,151 $ 20,626 $ 44,531 $ 39,187
Events   3,951   4,447   6,137   6,929
Total revenues 28,102 25,073 50,668 46,116
 

Cost of revenues:

Online(1) 5,720 5,180 11,326 10,122
Events(1)   1,242   1,373   2,119   2,311
Total cost of revenues   6,962   6,553   13,445   12,433
 

Gross profit

21,140 18,520 37,223 33,683
 

Operating expenses:

Selling and marketing(1) 10,184 9,420 18,815 18,831
Product development(1) 1,870 2,180 3,816 4,535
General and administrative(1) 3,458 3,757 7,257 8,104
Restructuring charge 384 - 384 -
Depreciation 668 642 1,309 1,167
Amortization of intangible assets   989   1,140   2,075   2,275
Total operating expenses 17,553 17,139 33,656 34,912
 

Operating income (loss)

3,587 1,381 3,567 (1,229 )
Interest income, net   6   84   12   191
 
Income (loss) before provision for income taxes 3,593 1,465 3,579 (1,038 )
 

Provision for income taxes

  1,775   1,019   1,836   856
Net income (loss) $ 1,818 $ 446 $ 1,743 $ (1,894 )
Net income (loss) per common share:
Basic $ 0.05 $ 0.01 $ 0.05 $ (0.04 )
Net income (loss) per common share:
Diluted $ 0.04 $ 0.01 $ 0.04 $ (0.04 )
Weighted average common shares outstanding:
Basic   38,332   42,944   38,136   42,712
Weighted average common shares outstanding:
Diluted   40,691   45,053   40,863   42,712
 

(1) Amounts include stock-based compensation expense as follows:

Cost of online revenues $ 62 $ 86 $ 132 $ 174
Cost of events revenues 20 20 42 46
Selling and marketing 1,082 1,535 2,240 3,464
Product development 100 155 206 316
General and administrative 682 1,359 1,326 2,584
       

TECHTARGET, INC.

Reconciliation of Net Income (Loss) to Adjusted EBITDA

(in $000’s)

 

 

For the Three Months Ended

June 30,

For the Six Months Ended

June 30,

2011 2010 2011 2010
(Unaudited)
 
Net income (loss) $ 1,818 $ 446 $ 1,743 $ (1,894 )
Interest income, net (6 ) (84 ) (12 ) (191 )
Provision for income taxes 1,775 1,019 1,836 856
 
R Restructuring charge 384 - 384 -
Depreciation 668 642 1,309 1,167
Amortization of intangible assets   989   1,140   2,075   2,275
EBITDA   5,628   3,163   7,335   2,213
Stock-based compensation expense   1,946   3,155   3,946   6,584
Adjusted EBITDA $ 7,574 $ 6,318 $ 11,281 $ 8,797
       

TECHTARGET, INC. Reconciliation of Net Income (Loss) to Adjusted Net Income and Net Income (Loss) per Diluted Share to

Adjusted Net Income per Share

(in $000's, except per share amounts)

 
For the Three Months Ended

June 30,

For the Six Months Ended

June 30,

2011 2010 2011 2010
(Unaudited)
 
Net income (loss) $ 1,818 $ 446 $ 1,743 $ (1,894 )
Amortization of intangible assets 989 1,140 2,075 2,275
Restructuring charge 384 - 384 -
 
 
 
 
 
Stock-based compensation expense 1,946 3,155 3,946 6,584
Impact of income taxes   (1,143 )   (875 )   (2,453 )   (1,975 )
Adjusted net income $ 3,994 $ 3,866 $ 5,695 $ 4,990
 
Net income (loss) per diluted share $ 0.04 $ 0.01 $ 0.04 $ (0.04 )
 
Weighted average diluted shares outstanding   40,691   45,053   40,863   42,712
 
Adjusted net income per share $ 0.10 $ 0.09 $ 0.14 $ 0.11
Adjusted weighted average diluted shares outstanding   40,691   45,053   40,863   44,813

Options, warrants and restricted stock, treasurymethod included in adjusted weighted averagediluted shares above

  -   -   -   2,101
 
Weighted average diluted shares outstanding   40,691   45,053   40,863   42,712
     
TECHTARGET, INC.
Financial Guidance for the Three Months Ended September 30, 2011
(in $000's)
 
For the Three Months

Ended September 30, 2011

Range
 
Revenues $ 25,300 $ 26,700
 
Adjusted EBITDA $ 5,000 $ 6,000
Depreciation, amortization and stock-based compensation $ 3,425 $ 3,425
Interest and other income, net $ 25 $ 25
Provision for income taxes $ 792 $ 1,287
Net income $ 808 $ 1,313




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