Technology media company TechTarget, Inc. (NASDAQ: TTGT) today announced financial results for the three months ended September 30, 2013.
“We continue to see good results from both the roll-out of IT Deal Alert™ and our expansion of direct operations internationally. Despite the continued weakness in the IT market, we believe that our online revenues in Q4 2013 will be roughly flat with online revenues in Q4 2012,” said Greg Strakosch, TechTarget CEO. “This will provide the foundation for a return to double digit revenue growth in 2014.”
Q3 2013 online revenue decreased by 8% to $18.8 million compared to Q3 2012. Online revenues represented 85% of total Q3 2013 revenues. Q3 2013 events revenue decreased by 20% to $3.3 million compared to Q3 2012 and represented 15% of total Q3 2013 revenues. Total Q3 2013 revenues decreased 10% to $22.1 million compared to Q3 2012.
Adjusted EBITDA (earnings before interest, other income and expense, income taxes, depreciation and amortization, as further adjusted to eliminate stock-based compensation) for Q3 2013 decreased 38% to $2.7 million compared to $4.4 million for Q3 2012.The Company generated $5.8 million of cash in the quarter. Total gross profit margin for Q3 2013 was 70%, compared to 71% for Q3 2012. Online gross profit margin remained flat at 71% in Q3 2013 compared to Q3 2012. Events gross profit margin decreased to 63% for Q3 2013, as compared to 67% for Q3 2012. Net income was $0.6 million for Q3 2013 compared to $0.7 million in Q3 2012. Adjusted net income (net income adjusted to eliminate amortization, stock-based compensation expense and the related income tax impact of these charges) for Q3 2013 was $1.2 million compared to $2.0 million for Q3 2012. Net income per basic share was $0.01 for Q3 of 2013 compared with net income per basic share of $0.02 for Q3 of 2012. Adjusted net income per share (adjusted net income divided by adjusted weighted average diluted shares outstanding) for Q3 2013 was $0.03 compared to $0.05 for Q3 2012.