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TechTarget Reports Fourth Quarter And Full Year 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, Paris, San Francisco, Singapore and Sydney.

(C) 2013 TechTarget, Inc. All rights reserved. TechTarget and the TechTarget logo are registered trademarks, and Activity Intelligence and IT Deal Alert 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 December 31,

   

Twelve Months Ended December 31,

2012     2011 2012     2011
(Unaudited)
Revenues:
Online $ 22,636 $ 26,009 $ 88,192 $ 92,303
Events   2,723   2,929   11,799   13,195
Total revenues 25,359 28,938 99,991 105,498

Cost of revenues:

Online(1) 5,695 5,500 23,513 22,373
Events(1)   1,012   1,158   4,301   4,765
Total cost of revenues   6,707   6,658   27,814   27,138

Gross profit

18,652 22,280 72,177 78,360

Operating expenses:

Selling and marketing(1) 9,246 10,589 36,718 39,586
Product development(1) 1,866 1,998 7,521 7,688
General and administrative(1) 3,145 3,319 13,206 13,680
Restructuring charge 384
Depreciation 851 758 3,279 2,759
Amortization of intangible assets   697   946   3,351   3,976
Total operating expenses   15,805   17,610 64,075 68,073

Operating income

2,847 4,670 8,102 10,287
Interest income, net   22   25   107   57
Income before provision for income taxes 2,869 4,695 8,209 10,344

Provision for income taxes

  1,847   2,713   4,185   5,655
Net income $ 1,022 $ 1,982 $ 4,024 $ 4,689
Net income per common share:
Basic $ 0.03 $ 0.05 $ 0.10 $ 0.12
Net income per common share:
Diluted $ 0.02 $ 0.05 $ 0.10 $ 0.12
Weighted average common shares outstanding:
Basic   40,469   39,344   40,211   38,532
Weighted average common shares outstanding:
Diluted   40,956   40,536   40,910   40,567

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

Cost of online revenues $ 52 $ 76 $ 202 $ 273
Cost of events revenues 6 27 18 91
Selling and marketing 675 1,324 2,888 4,713
Product development 71 126 265 443
General and administrative 553 262 1,894 1,949
 
 

TECHTARGET, INC.

Reconciliation of Net Income to Adjusted EBITDA

(in $000’s)

 
 

For the Three Months Ended December 31,

 

For the Twelve Months Ended December 31,

2012   2011 2012   2011
(Unaudited)
 
Net income $ 1,022 $ 1,982 $ 4,024 $ 4,689
Interest income, net (22 ) (25 ) (107 ) (57 )
Provision for income taxes 1,847 2,713 4,185 5,655

Restructuring charge

384
Depreciation 851 758 3,279 2,759
 
Amortization of intangible assets 697 946 3,351 3,976
Amortization of purchase price adjustment     323     398
EBITDA   4,395   6,697   14,732   17,804
Stock-based compensation expense   1,357   1,815   5,267   7,469
Adjusted EBITDA $ 5,752 $ 8,512 $ 19,999 $ 25,273
 
 

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 December 31,

 

For the Twelve Months Ended December 31,

2012     2011 2012   2011
(Unaudited)
 
Net income $ 1,022 $ 1,982 $ 4,024 $ 4,689
Amortization of intangible assets 697 946 3,351 3,976
Restructuring charge 384
Stock-based compensation expense 1,357 1,815 5,267 7,469
Amortization of purchase price adjustment 323 398
Impact of income taxes 29 (490 ) (2,579 ) (4,003 )
               

Adjusted net income

$ 3,105 $ 4,576 $ 10,063 $ 12,913
 
Net income per diluted share $ 0.02 $ 0.05 $ 0.10 $ 0.12
 

Weighted average diluted shares outstanding

  40,956   40,536   40,910   40,567
 
Adjusted net income per share $ 0.08 $ 0.11 $ 0.25 $ 0.32
Adjusted weighted average diluted shares outstanding   40,956   40,536   40,910   40,567

Options, warrants and restricted stock, treasury method included in adjusted weighted average diluted shares above

       
 
Weighted average diluted shares outstanding   40,956   40,536   40,910   40,567
 
 
TECHTARGET, INC.
Financial Guidance for the Three Months Ended March 31, 2013
(in $000's)
   

For the Three Months Ended March 31, 2013

Range
 
Revenues $ 20,000 $ 21,200
 
Adjusted EBITDA $ 43 $ 743
Depreciation, amortization and stock-based compensation 3,093 3,093
Interest and other income, net 19 21
Benefit from income taxes   1,364   1,048
Net loss $ (1,667 ) $ (1,281 )




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