Technology media company TechTarget, Inc. (NASDAQ: TTGT) today announced financial results for the three months ended June 30, 2013.
“We believe we hit the bottom of the cycle in Q1 of 2013. While the IT market remains weak, the healthy growth that we are experiencing with our International operations and new IT Deal Alert™ service is providing light at the end of the tunnel,” said Greg Strakosch, TechTarget CEO. “We expect improved results in the second half of 2013, which will create the foundation for our forecasted return to growth in 2014.”
Total Q2 2013 revenues decreased 12% to $23.1 million compared to Q2 2012. Q2 2013 online revenue also decreased by 12% to $20.4 million compared to Q2 2012. Online revenues represented 88% of total Q2 2013 revenues. Q2 2013 events revenue decreased by 18% to $2.7 million compared to Q2 2012 and represented 12% of total Q2 2013 revenues.
Adjusted EBITDA (earnings before interest, other income and expense, income taxes, depreciation and amortization, as further adjusted to eliminate stock-based compensation) for Q2 2013 decreased 57% to $2.7 million compared to $6.3 million for Q2 2012.The Company generated $0.6 million of cash in the quarter. Total gross profit margin for Q2 2013 was 69%, compared to 73% for Q2 2012. Online gross profit margin decreased to 70% for Q2 2013, compared to 74% for Q2 2012. Events gross profit margin decreased to 60% for Q2 2013, as compared to 65% for Q2 2012. Net loss was $0.9 million for Q2 2013 compared to a net income of $2.0 million in Q2 2012. Adjusted net income (net income adjusted to eliminate amortization, stock-based compensation expense and the related income tax impact of these charges) for Q2 2013 was $1.0 million compared to $3.3 million for Q2 2012. Net loss per basic share was $0.02 for Q2 of 2013 compared with net income per basic share of $0.05 for Q2 of 2012. Adjusted net income per share (adjusted net income divided by adjusted weighted average diluted shares outstanding) for Q2 2013 was $0.03 compared to $0.08 for Q2 2012.