Technology media company TechTarget, Inc. (NASDAQ: TTGT) today announced financial results for the three months ended September 30, 2012. Additionally, the Company announced that it has appointed Bob Burke, former CEO of Art Technology Group (ATG), to its Board of Directors.
“Despite the continued weakness in the IT market, we continue to make good progress with our Activity Intelligence™ product roll-out and international expansion, which we are optimistic will result in a return to growth in 2013,” said Greg Strakosch, TechTarget Chairman and CEO. “We continue to manage expenses carefully as evidenced by our healthy margins and cash flow.”
With respect to results for the quarter, total Q3 2012 revenues decreased 5% to $24.5 million compared to Q3 2011. Q3 2012 online revenue decreased by 6% to $20.4 million compared to Q3 2011. Online revenues represented 83% of total Q3 2012 revenues. Q3 2012 events revenue decreased by 1% to $4.1 million compared to Q3 2011 and represented 17% of total Q3 2012 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 2012 decreased 19% to $4.4 million compared to $5.4 million for Q3 2011.
The Company generated $6.0 million of cash in the quarter.
Total gross profit margin for Q3 2012 was 71%, compared to 73% for Q3 2011. Online gross profit margin decreased to 71% for Q3 2012, compared to 75% for Q3 2011. Events gross profit margin increased to 67% for Q3 2012, as compared to 64% for Q3 2011.
Net income was $0.7 million for Q3 2012 compared to $1.0 million in Q3 2011. Adjusted net income (net income adjusted to eliminate amortization, stock-based compensation expense and the related income tax impact of these charges) for Q3 2012 was $2.0 million compared to $2.6 million for Q3 2011. Net income per basic share was $0.02 for Q3 2012 compared to $0.03 in Q3 2011. Adjusted net income per share (adjusted net income divided by adjusted weighted average diluted shares outstanding) for Q3 2012 was $0.05 compared to $0.06 for Q3 2011.