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TechTarget Reports Third 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 and Nurture and Notify 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,

2012     2011 2012     2011
(Unaudited)
Revenues:
Online $ 20,447 $ 21,763 $ 65,556 $ 66,294
Events   4,102   4,129   9,076   10,266
Total revenues 24,549 25,892 74,632 76,560

Cost of revenues:

Online(1) 5,828 5,547 17,818 16,873
Events(1)   1,371   1,488   3,289   3,607
Total cost of revenues   7,199   7,035   21,107   20,480

Gross profit

17,350 18,857 53,525 56,080

Operating expenses:

Selling and marketing(1) 9,082 10,182 27,472 28,997
Product development(1) 1,919 1,874 5,655 5,690
General and administrative(1) 3,433 3,105 10,061 10,362
Restructuring charge 384
Depreciation 850 692 2,428 2,001
Amortization of intangible assets   843   955   2,654   3,030
Total operating expenses   16,127   16,808   48,270 50,464

Operating income

1,223 2,049 5,255 5,616
Interest income, net   37   20   85   32
Income before provision for income taxes 1,260 2,069 5,340 5,648

Provision for income taxes

  588   1,106   2,338   2,942
Net income $ 672 $ 963 $ 3,002 $ 2,706
Net income per common share:
Basic $ 0.02 $ 0.03 $ 0.07 $ 0.07
Net income per common share:
Diluted $ 0.02 $ 0.02 $ 0.07 $ 0.07
Weighted average common shares outstanding:
Basic   40,328   38,511   40,125   38,261
Weighted average common shares outstanding:
Diluted   40,878   40,008   40,894   40,578

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

Cost of online revenues $ 50 $ 65 $ 150 $ 197
Cost of events revenues 4 22 12 64
Selling and marketing 824 1,149 2,213 3,389
Product development 66 111 194 317
General and administrative 543 361 1,341 1,687
 

 

TECHTARGET, INC.

Reconciliation of Net Income to Adjusted EBITDA

(in $000’s)

   
For the Three Months Ended

September 30,

For the Nine Months Ended

September 30,

2012   2011 2012   2011
(Unaudited)
 
Net income $ 672 $ 963 $ 3,002 $ 2,706
Interest income, net (37 ) (20 ) (85 ) (32 )
Provision for income taxes 588 1,106 2,338 2,942

Restructuring charge

384
Depreciation 850 692 2,428 2,001
Amortization of intangible assets   843   955   2,654   3,030
EBITDA   2,916   3,696   10,337   11,031
Stock-based compensation expense   1,487   1,708   3,910   5,654
Adjusted EBITDA $ 4,403 $ 5,404 $ 14,247 $ 16,685
   

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

September 30,

For the Nine Months Ended

September 30,

2012   2011 2012   2011
(Unaudited)
 
Net income $ 672 $ 963 $ 3,002 $ 2,706
Amortization of intangible assets 843 955 2,654 3,030
Restructuring charge 384
Stock-based compensation expense 1,487 1,708 3,910 5,654
Impact of income taxes   (981 )   (1,028 )   (2,608 )   (3,481 )
Adjusted net income $ 2,021 $ 2,598 $ 6,958 $ 8,293
 
Net income per diluted share $ 0.02 $ 0.02 $ 0.07 $ 0.07
 
Weighted average diluted shares outstanding   40,878   40,008   40,894   40,578
 
Adjusted net income per share $ 0.05 $ 0.06 $ 0.17 $ 0.20
Adjusted weighted average diluted shares outstanding   40,878   40,008   40,894   40,578

Options, warrants and restricted stock, treasury

method included in adjusted weighted average

diluted shares above

       
 
Weighted average diluted shares outstanding   40,878   40,008   40,894   40,578
 
TECHTARGET, INC.
Financial Guidance for the Three Months Ended December 31, 2012
(in $000's)
         
For the Three Months

Ended December 31, 2012

Range
 
Revenues $ 24,500 $ 25,700
 
Adjusted EBITDA $ 4,722 $ 5,422
Depreciation, amortization and stock-based compensation 2,918 2,918
Interest and other income, net 35 36
Provision for income taxes   860   1,189
Net income $ 979 $ 1,351




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