TechTarget, Inc. (NASDAQ: TTGT) today announced financial results for the three months ended September 30, 2011.
“Despite the continued challenging macro-economic conditions, we are pleased to report revenue is up 18% and adjusted EBITDA is up 39% for the third quarter,” said Greg Strakosch, CEO of TechTarget. “The investments that we have made in our new Activity Intelligence™ product platform and direct international operations continue to pay off.”
Total Q3 2011 revenues increased 18% to $25.9 million compared to Q3 2010. Q3 2011 online revenue increased by 15% to $21.8 million compared to Q3 2010. Online revenues represented 84% of total Q3 2011 revenues. Q3 2011 events revenue increased by 32% to $4.1 million compared to Q3 2010 and represented 16% of total Q3 2011 revenues.
Adjusted EBITDA (earnings before interest, other income and expense, income taxes, depreciation, and amortization, as further adjusted to eliminate stock-based compensation) for Q3 2011 increased 39% to $5.4 million compared to $3.9 million for Q3 2010.Total gross profit margin increased for Q3 2011 to 73%, compared to 72% for Q3 2010. Online gross profit margin increased for Q3 2011 to 75%, compared to 74% for Q3 2010. Events gross profit margin increased for Q3 2011 to 64%, compared to 63% for Q3 2010. Net income was $1.0 million for Q3 2011 compared to a net loss of $0.6 million in Q3 2010. Adjusted net income (net income adjusted to eliminate amortization, stock-based compensation expense and the related income tax impact of these charges) for Q3 2011 was $2.6 million compared to $2.1 million for Q3 2010. Net income per basic share for Q3 2011 was $0.03 compared to a net loss per basic share of $0.01 for Q3 2010. Adjusted net income per share (adjusted net income divided by adjusted weighted average diluted shares outstanding) for Q3 2011 was $0.06 compared to $0.05 for Q3 2010.