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TechTarget Reports Third Quarter 2011 Financial Results

Stocks in this article: TTGT

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. SearchCloudProvider.com , SearchCloudComputing.com , SearchServerVirtualization.com , SearchCloudSecurity.com , SearchCloudStorage.com , SearchVirtualDesktop.com , SearchVirtualStorage.com , BrianMadden.com and TechTarget Social 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 September 30,

Nine Months Ended September 30,

2011 2010 2011 2010
(Unaudited)
Revenues:
Online $ 21,763 $ 18,878 $ 66,294 $ 58,065
Events   4,129   3,123   10,266   10,052
Total revenues 25,892 22,001 76,560 68,117
Cost of revenues:
Online(1) 5,547 4,921 16,873 15,043
Events(1)   1,488   1,149   3,607   3,459
Total cost of revenues   7,035   6,070   20,480   18,502
Gross profit 18,857 15,931 56,080 49,615
Operating expenses:
Selling and marketing(1) 10,182 8,984 28,997 27,815
Product development(1) 1,874 2,087 5,690 6,623
General and administrative(1) 3,105 3,567 10,362 11,671
Restructuring charge 384
Depreciation 692 592 2,001 1,759
Amortization of intangible assets   955   1,126   3,030   3,401
Total operating expenses 16,808 16,356 50,464 51,269
Operating income (loss) 2,049 (425 ) 5,616 (1,654 )
Interest income, net   20   79   32   270
Income (loss) before provision for income taxes 2,069 (346 ) 5,648 (1,384 )
Provision for income taxes   1,106   266   2,942   1,122
Net income (loss) $ 963 $ (612 ) $ 2,706 $ (2,506 )
Net income (loss) per common share:
Basic $ 0.03 $ (0.01 ) $ 0.07 $ (0.06 )
Net income (loss) per common share:
Diluted $ 0.02 $ (0.01 ) $ 0.07 $ (0.06 )
Weighted average common shares outstanding:
Basic   38,511   43,209   38,261   42,878
Weighted average common shares outstanding:
Diluted   40,008   43,209   40,578   42,878

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

Cost of online revenues $ 65 $ (38 ) $ 197 $ 136
Cost of events revenues 22 23 64 69
Selling and marketing 1,149 1,708 3,389 5,172
Product development 111 104 317 420
General and administrative 361 785 1,687 3,369
 
TECHTARGET, INC.
Reconciliation of Net Income (Loss) to Adjusted EBITDA
(in $000’s)
                 

For the Three Months Ended September 30,

For the Nine Months Ended September 30,

2011 2010 2011 2010
(Unaudited)
 
Net income (loss) $ 963 $ (612 ) $ 2,706 $ (2,506 )
Interest income, net (20 ) (79 ) (32 ) (270 )
Provision for income taxes 1,106 266 2,942 1,122
 
R Restructuring charge - - 384 -
Depreciation 692 592 2,001 1,759
Amortization of intangible assets   955   1,126   3,030   3,401
EBITDA   3,696   1,293   11,031   3,506
Stock-based compensation expense   1,708   2,582   5,654   9,166
Adjusted EBITDA $ 5,404 $ 3,875 $ 16,685 $ 12,672
 

 

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 September 30,

For the Nine Months Ended September 30,

2011 2010 2011 2010
(Unaudited)
 
Net income (loss) $ 963 $ (612 ) $ 2,706 $ (2,506 )
Amortization of intangible assets 955 1,126 3,030 3,401
Restructuring charge - - 384 -
 
 
 
Stock-based compensation expense 1,708 2,582 5,654 9,166
Impact of income taxes   (1,028 )   (1,002 )   (3,481 )   (3,115 )
Adjusted net income $ 2,598 $ 2,094 $ 8,293 $ 6,946
 
Net income (loss) per diluted share $ 0.02 $ (0.01 ) $ 0.07 $ (0.06 )
 
Weighted average diluted shares outstanding   40,008   43,209   40,578   42,878
 
Adjusted net income per share $ 0.06 $ 0.05 $ 0.20 $ 0.15
Adjusted weighted average diluted shares outstanding   40,008   45,459   40,578   45,029
Options, warrants and restricted stock, treasury method included in adjusted weighted average diluted shares above   -   2,250   -   2,151
 
Weighted average diluted shares outstanding   40,008   43,209   40,578   42,878
 
TECHTARGET, INC.
Financial Guidance for the Three Months Ended December 31, 2011
(in $000's)
           

For the Three Months Ended December 31, 2011

Range
 
Revenues $ 28,700 $ 30,100
 
Adjusted EBITDA $ 8,500 $ 9,500
Depreciation, amortization and stock-based compensation $ 3,325 $ 3,325
Interest and other income, net $ 20 $ 20
Provision for income taxes $ 2,650 $ 3,160
Net income $ 2,545 $ 3,035




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