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TechTarget Reports Second Quarter 2012 Financial Results

About TechTarget

TechTarget (NASDAQ: TTGT) is the online intersection of serious technology buyers, targeted technical content and technology providers worldwide. Our extensive network of online and social media, powered by TechTarget’s Activity Intelligence platform, redefines how technology marketers view and engage technology buyers based on their active projects, specific technical priorities and business needs. With more than 100 technology-specific websites and a wide selection of custom advertising, branding, and lead generation solutions, TechTarget delivers unparalleled reach and innovative opportunities to drive technology marketing success around the world.

TechTarget has offices in Atlanta, Beijing, Boston, Cincinnati, London, Mumbai, San Francisco, Singapore and Sydney.

(C) 2012 TechTarget, Inc. All rights reserved. TechTarget and the TechTarget logo are registered trademarks, and Activity Intelligence, Nurture and Notify, SearchCIO.com, SearchSecurity.com, and SearchCloudApplications.com 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,

2012       2011 2012       2011
(Unaudited)
Revenues:
Online $ 23,038 $ 24,151 $ 45,109 $ 44,531
Events   3,331   3,951   4,974   6,137
Total revenues 26,369 28,102 50,083 50,668
 

Cost of revenues:

Online(1) 5,949 5,720 11,990 11,326
Events(1)   1,154   1,242   1,917   2,119
Total cost of revenues   7,103   6,962   13,907   13,445
 

Gross profit

19,266 21,140 36,176 37,223
 

Operating expenses:

Selling and marketing(1) 9,227 10,184 18,390 18,815
Product development(1) 1,881 1,870 3,736 3,816
General and administrative(1) 2,979 3,458 6,627 7,257
Restructuring charge 384 384
Depreciation 811 668 1,578 1,309
Amortization of intangible assets   874   989   1,812   2,075
Total operating expenses   15,772   17,553 32,143 33,656
 

Operating income

3,494 3,587 4,033 3,567
Interest income, net   23   6   47   12
 
Income before provision for income taxes 3,517 3,593 4,080 3,579
 

Provision for income taxes

  1,552   1,775   1,750   1,836
Net income $ 1,965 $ 1,818 $ 2,330 $ 1,743
 
Net income per common share:
Basic $ 0.05 $ 0.05 $ 0.06 $ 0.05
 
Net income per common share:
Diluted $ 0.05 $ 0.04 $ 0.06 $ 0.04
 
Weighted average common shares outstanding:
Basic   40,185   38,332   40,024   38,136
 
Weighted average common shares outstanding:
Diluted   40,952   40,691   40,903   40,863
 

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

Cost of online revenues $ 47 $ 62 $ 100 $ 132
Cost of events revenues 4 20 8 42
Selling and marketing 658 1,082 1,389 2,240
Product development 63 100 128 206
General and administrative 357 682 798 1,326
 
   

TECHTARGET, INC.

Reconciliation of Net Income to Adjusted EBITDA

(in $000’s)

 
For the Three Months Ended

June 30,

For the Six Months Ended

June 30,

2012   2011 2012   2011
(Unaudited)
 
Net income $ 1,965 $ 1,818 $ 2,330 $ 1,743
Interest income, net (23 ) (6 ) (47 ) (12 )
Provision for income taxes 1,552 1,775 1,750 1,836
R Restructuring charge 384 384
Depreciation 811 668 1,578 1,309
Amortization of intangible assets   874   989   1,812   2,075
EBITDA   5,179   5,628   7,423   7,335
Stock-based compensation expense   1,129   1,946   2,423   3,946
Adjusted EBITDA $ 6,308 $ 7,574 $ 9,846 $ 11,281
 
   

TECHTARGET, INC.

Reconciliation of Net Income to Adjusted Net Income and Net Income 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,

2012   2011 2012   2011
(Unaudited)
 
Net income $ 1,965 $ 1,818 $ 2,330 $ 1,743
Amortization of intangible assets 874 989 1,812 2,075
Restructuring charge 384 384
Stock-based compensation expense 1,129 1,946 2,423 3,946
Impact of income taxes   (682 )   (1,143 )   (1,627 )   (2,453 )
Adjusted net income $ 3,286 $ 3,994 $ 4,938 $ 5,695
 
Net income per diluted share $ 0.05 $ 0.04 $ 0.06 $ 0.04
 
Weighted average diluted shares outstanding   40,952   40,691   40,903   40,863
 
Adjusted net income per share $ 0.08 $ 0.10 $ 0.12 $ 0.14
Adjusted weighted average diluted shares outstanding   40,952   40,691   40,903   40,863
Options, warrants and restricted stock, treasury
method included in adjusted weighted average
diluted shares above   -   -   -   -
 
Weighted average diluted shares outstanding   40,952   40,691   40,903   40,863
 
 
TECHTARGET, INC.
Financial Guidance for the Three Months Ended September 30, 2012
(in $000's)
           
For the Three Months

Ended September 30, 2012

Range
 
Revenues $ 23,900 $ 25,100
 
Adjusted EBITDA $ 4,274 $ 4,974
Depreciation, amortization and stock-based compensation 3,082 3,082
Interest and other income, net 24 25
Provision for income taxes   538   849
Net income $ 678 $ 1,068
 




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