Adjusted EBITDA (earnings before interest, other income and expense, income taxes, depreciation, amortization and restructuring charges, as further adjusted to eliminate stock-based compensation) for Q2 2012 decreased 17% to $6.3 million compared to $7.6 million for Q2 2011.The Company generated $5.7 million of cash in the quarter. Total gross profit margin for Q2 2012 was 73%, compared to 75% for Q2 2011. Online gross profit margin decreased to 74% for Q2 2012, compared to 76% for Q2 2011. Events gross profit margin decreased to 65% for Q2 2012, as compared to 69% for Q2 2011. Net income was $2.0 million for Q2 2012 compared to a net income of $1.8 million in Q2 2011. Adjusted net income (net income adjusted to eliminate amortization, stock-based compensation expense, restructuring charges and the related income tax impact of these charges) for Q2 2012 was $3.3 million compared to $4.0 million for Q2 2011. Net income per basic share was $0.05 for both Q2 of 2012 and Q2 of 2011. Adjusted net income per share (adjusted net income divided by adjusted weighted average diluted shares outstanding) for Q2 2012 was $0.08 compared to $0.10 for Q2 2011. The Company’s balance sheet and financial position remain strong. As of June 30, 2012, the Company’s cash, cash equivalents and investments totaled $66.6 million, and the Company had no outstanding bank debt. Recent Company Highlights
- Awarded 2 Gold awards and Top 10 Website of the Year by the American Society of Business Publication Editors (ASBPE); won Gold awards in the Web Microsite/Special Section category for its “CIO Innovators Profiles”, featured on its SearchCIO.com™ site; and, in the Web News Section category for its “SearchSecurity.com™ News” feature; was awarded Top 10 Website of the Year for SearchCIO.com.
- Launched SearchCloudApplications.com™, dedicated to serving the information needs of information technology (IT) and business professionals deploying Software-as-a-Service (SaaS) business applications in the cloud, and developers and architects tasked with building custom applications leveraging the cloud.
- Over 350 accounts are utilizing the Activity Intelligence™ dashboard. Over 40 customers have purchased Nurture and Notify™ and they are seeing good results from the additional functionality. Nurture and Notify has doubled the number of prospects that have repeat engagements with a campaign, while tripling the number of engagement points per account. This functionality has enabled our Nurture and Notify customers to triple the number of “hot accounts” that they have been able to identify.
- International geo-targeted revenue grew 18% sequentially from Q1 2012 and represented 20% of revenues in the quarter. Eventually, the Company believes that geo-targeted revenues can represent 40% of overall revenues.