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Section 1: 8-K (8-K)

ttgt-8k_20171108.htm

 

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): November 8, 2017

 

TechTarget, Inc.

(Exact name of Registrant as Specified in Its Charter)

 

 

Delaware

1-33472

04-3483216

(State or Other Jurisdiction

of Incorporation)

(Commission File Number)

(IRS Employer

Identification No.)

 

 

 

275 Grove Street,

Newton, MA

 

02466

(Address of Principal Executive Offices)

 

(Zip Code)

Registrant’s Telephone Number, Including Area Code: (617) 431-9200

(Former Name or Former Address, if Changed Since Last Report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 

 

 

 

 

 


Item 2.02 Results of Operations and Financial Condition.

On November 8, 2017, TechTarget, Inc. (the “Company”) disclosed its results for the three and nine months ended September 30, 2017 in its Shareholder Letter, which is posted on the Investor Relations section of its website at www.techtarget.com. The Shareholder Letter is furnished as Exhibit 99.1 to this Current Report on Form 8-K. The information contained in Item 2.02 of this Form 8-K (including Exhibit 99.1) is furnished in accordance with SEC Release No. 33-8216 and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation by reference language in such filing, except as expressly set forth by specific reference in such a filing.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

The following exhibits relating to Item 2.02 shall be deemed to be furnished, and not filed:

 

Exhibit

Number

 

Description

99.1

 

Shareholder Letter dated November 8, 2017.

 

 

 

 

 

 


SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

 

 

TechTarget, Inc.

 

 

 

 

Date: November 8, 2017

 

By:

/s/ Daniel Noreck

 

 

 

Daniel Noreck

 

 

 

Chief Financial Officer and Treasurer

 

 

(Back To Top)

Section 2: EX-99.1 (EX-99.1)

ttgt-ex991_6.htm


Exhibit 99.1

 

 

November 8, 2017

Dear Fellow Shareholders:

The investments that we have been making to transition to a provider of purchase intent data are paying off, which makes us very optimistic about the end of this year, next year, and beyond.

 

Online revenues were up 16% in Q3 2017.

 

IT Deal AlertTM revenues were up 84% versus Q3 2016 and up 58% YTD versus the first nine months of 2016.

 

Revenues from Priority EngineTM and Deal DataTM were up 139% in Q3 2017 versus Q3 2016.

 

The number of IT Deal Alert customers in Q3 2017 was over 600.

 

We had over 60 new Priority Engine and Deal Data customers in Q3 2017.

 

23% of the revenue in Q3 2017 was derived from longer-term contracts.

 

Adjusted EBITDA was $6.1 million (22% adjusted EBITDA margin), up 64% versus Q3 2016.

 

We continue to innovate and drive customer success with our IT Deal Alert offerings. Priority Engine adoption is growing rapidly and is the core driver of the growth we’re seeing in our revenue related to longer-term contracts. We signed more longer-term contracts on Priority Engine in Q3 than we did in all of 2016 combined.    

On the Priority Engine front, we recently announced a partnership with DiscoverOrg to integrate their highly accurate and comprehensive contact data related to additional people on the buying team at accounts that Priority Engine indicates are in-market for purchases. DiscoverOrg is the leading company providing this type of information in their space with over 4000 customers. Earlier this year, we created a partnership with HG Data to integrate their Installed Base Technologies data into Priority Engine. Our strategy is to make Priority Engine the go-to sales and marketing data platform for our customers. We will continue to enhance the offering with additional features based on customer feedback and anticipate forming new partnerships to integrate further data sets into Priority Engine.

We are also seeing stabilization in our core online revenues. While core online revenues were down 14% on a year over year basis, the rate of decline has been moderating over the course of the year, and we expect that trend to continue. As we’ve previously discussed, this revenue stream is heavily influenced by trends at our largest global spenders, a number of which have been involved in large-scale corporate transactions that have negatively affected their marketing spend. We’re seeing improvement at these accounts as those transactions are further along.

 

 

 

 

 

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Q3 2017 Results (Unaudited)

  

 

Three Months Ended September 30,

 

 

2017 vs. 2016

 

 

Nine Months Ended

September 30,

 

 

2017 vs. 2016

 

 

 

2017

 

 

2016

 

 

change

 

 

2017

 

 

2016

 

 

change

 

 

 

($ in thousands)

 

 

 

 

 

 

($ in thousands)

 

 

 

 

 

Total Online

 

$

28,012

 

 

$

24,247

 

 

 

16

%

 

$

78,085

 

 

$

76,242

 

 

 

2

%

Total Online by Geographic Area:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America IT Deal Alert

 

 

9,953

 

 

 

5,895

 

 

 

69

%

 

 

26,563

 

 

 

18,629

 

 

 

43

%

North America Core Online

 

 

9,374

 

 

 

10,644

 

 

 

(12

)%

 

 

26,444

 

 

 

33,683

 

 

 

(21

)%

Total North America Online

 

 

19,327

 

 

 

16,539

 

 

 

17

%

 

 

53,007

 

 

 

52,312

 

 

 

1

%

International:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

International IT Deal Alert

 

 

3,451

 

 

 

1,381

 

 

 

150

%

 

 

8,869

 

 

 

3,850

 

 

 

130

%

International Core Online

 

 

5,234

 

 

 

6,327

 

 

 

(17

)%

 

 

16,209

 

 

 

20,080

 

 

 

(19

)%

Total International Online

 

 

8,685

 

 

 

7,708

 

 

 

13

%

 

 

25,078

 

 

 

23,930

 

 

 

5

%

Total Online by Product:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

IT Deal Alert:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America IT Deal Alert

 

 

9,953

 

 

 

5,895

 

 

 

69

%

 

 

26,563

 

 

 

18,629

 

 

 

43

%

International IT Deal Alert

 

 

3,451

 

 

 

1,381

 

 

 

150

%

 

 

8,869

 

 

 

3,850

 

 

 

130

%

Total IT Deal Alert

 

 

13,404

 

 

 

7,276

 

 

 

84

%

 

 

35,432

 

 

 

22,479

 

 

 

58

%

Core Online:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America Core Online

 

 

9,374

 

 

 

10,644

 

 

 

(12

)%

 

 

26,444

 

 

 

33,683

 

 

 

(21

)%

International Core Online

 

 

5,234

 

 

 

6,327

 

 

 

(17

)%

 

 

16,209

 

 

 

20,080

 

 

 

(19

)%

Total Core Online

 

 

14,608

 

 

 

16,971

 

 

 

(14

)%

 

 

42,653

 

 

 

53,763

 

 

 

(21

)%

Total Events

 

$

 

 

$

1,503

 

 

 

(100

)%

 

$

168

 

 

$

3,713

 

 

 

(95

)%

Total Revenues

 

$

28,012

 

 

$

25,750

 

 

 

9

%

 

$

78,253

 

 

$

79,955

 

 

 

(2

)%

Adjusted EBITDA*

 

$

6,122

 

 

$

3,727

 

 

 

64

%

 

$

13,874

 

 

$

13,866

 

 

 

0

%

 

*

Adjusted EBITDA is a non-GAAP financial measure that is defined and reconciled to a GAAP measure later in this Letter to Shareholders.

Gross Margins

Total gross margin for Q3 2017 was 75%, up 500 basis points from Q3 2016. Online gross margin was 75% for Q3 2017, compared to 72% for Q3 2016. These improvements are due to higher online revenue and the discontinuation of our events product line that had lower gross margins.

Balance Sheet

The Company’s balance sheet remains very strong.  As of September 30, 2017, we had $31.1 million in cash and investments and $34.7 million of outstanding term loan debt.

Common Stock Repurchase Plan

In the quarter, we repurchased 300,114 shares of common stock at an average price of $10.23 for an aggregate purchase price of $3.1 million. There is approximately $6.8 million available under the $20 million repurchase program that we announced in June of 2016.  

Traffic Update

Unpaid traffic represented 96% of overall traffic in the quarter. Organic traffic was down single digits as compared to Q2 2017. We are not concerned about this decrease because the comparison is against a record comparable in the earlier period and we have ample traffic to support our revenue.

 

 

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Q4 2017 and Preliminary 2018 Guidance

For Q4 2017, we expect revenues between $29.5 million and $30.5 million. We expect adjusted EBITDA between $7.5 million and $8.5 million.

For 2018, we expect revenues to increase by double digits and adjusted EBITDA to increase by at least 25%. We will provide more specifics in regards to our 2018 guidance in our next shareholder letter in February of 2018.

Summary

We are very optimistic about the end of this year, next year, and beyond. We believe that our customers’ transition to becoming data-driven sales and marketing organizations presents a very large opportunity and is still in the early innings. Many of the temporary headwinds that we have faced in the past two years are abating. The dollar has weakened and the temporary disruptions to marketing budgets at some of our largest customers caused by significant divestitures or acquisitions will be behind us in 2018. While overall IT spending remains challenged, we are confident that we will continue to gain market share and grow faster than the overall market with significant upside when IT spending increases.

 

Sincerely,

 

Michael Cotoia

Greg Strakosch

Chief Executive Officer

Executive Chairman

 

(C) 2017 TechTarget, Inc. All rights reserved. TechTarget and the TechTarget logo are registered trademarks, and IT Deal Alert, Priority Engine and Deal Data are trademarks of TechTarget. All other trademarks are the property of their respective owners.

Conference Call and Webcast

TechTarget will discuss these financial results in a conference call at 5:00 p.m. (Eastern Time) today (November 8, 2017). Supplemental financial information and this Letter to Shareholders will be posted to the Investor Relations section of our website.

 

NOTE: Our Letter to Shareholders will not be read on the conference call. The conference call will include only brief remarks followed by questions and answers.

 

The public is invited to listen to a live webcast of TechTarget’s conference call, which can be accessed on the Investor Relations section of our website at http://investor.techtarget.com. The conference call can also be heard via telephone by dialing 1-888-339-0724 (US callers), 1-412-902-4191 (International callers), or 1-855-669-9657 (Canadian callers).

 

For those investors unable to participate in the live conference call, a replay of the conference call will be available via telephone beginning November 8, 2017 one (1) hour after the conference call through December 8, 2017 at 9:00 a.m. ET. To listen to the replay, US callers should dial 1-877-344-7529 and use the conference number 10112893. International callers should dial 1-412-317-0088 and also use the conference number 10112893. Canadian callers should dial 1-855-669-9658 and also use the conference number 10112893. The webcast replay will also be available on http://investor.techtarget.com during the same period.

3 of 10

 


Non-GAAP Financial Measures

This letter and the accompanying tables include a discussion of adjusted EBITDA, adjusted net income and adjusted net income per share, all of which are non-GAAP financial measures which are provided as a complement to results provided in accordance with accounting principles generally accepted in the United States of America (“GAAP”).

 

“Adjusted EBITDA” means earnings before net interest, other income and expense, income taxes, depreciation and amortization, as further adjusted to exclude stock-based compensation and other one-time charges, if any.

 

“Adjusted net income” means net income adjusted for amortization, stock-based compensation, foreign exchange, interest on the term loan and one-time charges, if any, as further adjusted for the related income tax impact of the adjustments.

 

“Adjusted net income per share” means adjusted net income divided by adjusted weighted average diluted shares outstanding.

 

These non-GAAP measures should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, GAAP results. In addition, our definition of adjusted EBITDA, adjusted net income and adjusted net income per share may not be comparable to the definitions as reported by other companies. We believe that adjusted EBITDA, adjusted net income and adjusted net income per share provide relevant and useful information to enable us and investors to compare our operating performance using an additional measurement. We use these measures in our internal management reporting and planning process as primary measures to evaluate the operating performance of our business, as well as potential acquisitions.

The components of adjusted EBITDA include the key revenue and expense items for which our operating managers are responsible and upon which we evaluate their performance. In the case of senior management, adjusted EBITDA is used as one of the principal financial metrics in their annual incentive compensation program. Adjusted EBITDA is also used for planning purposes and in presentations to our Board of Directors. Adjusted net income is useful to us and investors because it presents an additional measurement of our financial performance, taking into account depreciation, which we believe is an ongoing cost of doing business, but excluding the impact of certain non-cash expenses and items not directly tied to the core operations of our business, including interest on the term loan. Furthermore, we intend to provide these non-GAAP financial measures as part of our future earnings discussions and, therefore, the inclusion of these non-GAAP financial measures will provide consistency in our financial reporting. A reconciliation of these non-GAAP measures to GAAP is provided in the accompanying tables.

Forward Looking Statements

Certain information included in this news release may contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included or referenced in this release that address activities, events or developments which we expect will or may occur in the future are forward-looking statements, including statements regarding the intent, belief or current expectations of the Company and members of our management team. The words “will,” “believe,” “intend,” “expect,” “anticipate,” “project,” “estimate,” “predict” and similar expressions are also intended to identify forward-looking statements. Such statements may include those regarding guidance on our future financial results and other projections or measures of our future performance; expectations concerning market opportunities and our ability to capitalize on them; and the amount and timing of the benefits expected from acquisitions, new products or services and other potential sources of additional revenue. These statements speak only as of the date of this release and are based on our current plans and expectations. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties that could cause actual future events or results to be different than those described in or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to, those relating to:

4 of 10

 


market acceptance of our products and services, including continued increased sales of our IT Deal Alert offerings and continued increased international growth; relationships with customers, strategic partners and employees; difficulties in integrating acquired businesses; changes in economic or regulatory conditions or other trends affecting the internet, internet advertising and information technology industries; and other matters included in our SEC filings, including in our Annual Report on Form 10-K. Actual results may differ materially from those contemplated by the forward-looking statements. We undertake no obligation to update our forward-looking statements to reflect future events or circumstances.

5 of 10

 


TECHTARGET, INC.

Consolidated Statements of Operations

(in 000’s, except per share data)

 

 

 

 

For the Three Months Ended

 

 

For the Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

 

 

(Unaudited)

 

 

(Unaudited)

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Online

 

$

28,012

 

 

$

24,247

 

 

$

78,085

 

 

$

76,242

 

Events

 

 

 

 

 

1,503

 

 

 

168

 

 

 

3,713

 

Total revenues

 

 

28,012

 

 

 

25,750

 

 

 

78,253

 

 

 

79,955

 

Cost of revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Online(1)

 

 

6,951

 

 

 

6,889

 

 

 

20,931

 

 

 

20,360

 

Events

 

 

 

 

 

723

 

 

 

41

 

 

 

2,049

 

Total cost of revenues

 

 

6,951

 

 

 

7,612

 

 

 

20,972

 

 

 

22,409

 

Gross profit

 

 

21,061

 

 

 

18,138

 

 

 

57,281

 

 

 

57,546

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling and marketing(1)

 

 

11,568

 

 

 

11,243

 

 

 

33,006

 

 

 

33,331

 

Product development(1)

 

 

2,209

 

 

 

2,074

 

 

 

6,168

 

 

 

6,027

 

General and administrative(1)

 

 

3,288

 

 

 

3,138

 

 

 

9,542

 

 

 

9,392

 

Depreciation

 

 

1,065

 

 

 

951

 

 

 

3,249

 

 

 

2,987

 

Amortization of intangible assets

 

 

44

 

 

 

183

 

 

 

126

 

 

 

718

 

Total operating expenses

 

 

18,174

 

 

 

17,589

 

 

 

52,091

 

 

 

52,455

 

Operating income

 

 

2,887

 

 

 

549

 

 

 

5,190

 

 

 

5,091

 

Interest and other expense, net

 

 

(190

)

 

 

(471

)

 

 

(447

)

 

 

(1,037

)

Income before provision for income taxes

 

 

2,697

 

 

 

78

 

 

 

4,743

 

 

 

4,054

 

Provision for income taxes

 

 

623

 

 

 

100

 

 

 

1,337

 

 

 

1,725

 

Net income (loss)

 

$

2,074

 

 

$

(22

)

 

$

3,406

 

 

$

2,329

 

 

Net income (loss) per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.08

 

 

$

(0.00

)

 

$

0.12

 

 

$

0.08

 

Diluted

 

$

0.07

 

 

$

(0.00

)

 

$

0.12

 

 

$

0.07

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

27,555

 

 

 

27,540

 

 

 

27,521

 

 

 

30,650

 

Diluted

 

 

28,320

 

 

 

27,540

 

 

 

28,275

 

 

 

31,608

 

 

(1)

Amounts include stock-based compensation expense as follows:

 

Cost of online revenues

 

$

13

 

 

$

36

 

 

$

38

 

 

$

90

 

Selling and marketing

 

 

1,284

 

 

 

1,260

 

 

 

3,161

 

 

 

3,103

 

Product development

 

 

18

 

 

 

45

 

 

 

92

 

 

 

124

 

General and administrative

 

 

811

 

 

 

703

 

 

 

2,018

 

 

 

1,753

 

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TechTarget, Inc.

Consolidated Balance Sheets

(in 000’s, except share and per share data)

 

 

 

 

September 30,

2017

 

 

December 31,

2016

 

 

 

(Unaudited)

 

Assets

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

19,253

 

 

$

18,485

 

Short-term investments

 

 

8,764

 

 

 

10,988

 

Accounts receivable, net of allowance for doubtful accounts of $1,676 and $1,961 as

   of September 30, 2017 and December 31, 2016, respectively

 

 

29,393

 

 

 

22,551

 

Prepaid taxes

 

 

2,133

 

 

 

3,961

 

Prepaid expenses and other current assets

 

 

2,670

 

 

 

1,952

 

Total current assets

 

 

62,213

 

 

 

57,937

 

Property and equipment, net

 

 

8,757

 

 

 

9,232

 

Long-term investments

 

 

3,042

 

 

 

7,801

 

Goodwill

 

 

93,717

 

 

 

93,469

 

Intangible assets, net

 

 

542

 

 

 

601

 

Deferred tax assets

 

 

543

 

 

 

139

 

Other assets

 

 

880

 

 

 

898

 

Total assets

 

$

169,694

 

 

$

170,077

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

1,486

 

 

$

2,100

 

Current portion of term loan

 

 

9,888

 

 

 

6,157

 

Accrued expenses and other current liabilities

 

 

2,747

 

 

 

2,792

 

Accrued compensation expenses

 

 

1,240

 

 

 

698

 

Income taxes payable

 

 

-

 

 

 

122

 

Deferred revenue

 

 

9,238

 

 

 

6,079

 

Total current liabilities

 

 

24,599

 

 

 

17,948

 

Long-term liabilities:

 

 

 

 

 

 

 

 

Long-term portion of term loan

 

 

24,811

 

 

 

32,286

 

Deferred rent

 

 

1,763

 

 

 

2,080

 

Deferred tax liabilities

 

 

198

 

 

 

200

 

Total liabilities

 

 

51,371

 

 

 

52,514

 

Stockholders’ equity:

 

 

 

 

 

 

 

 

Preferred stock, 5,000,000 shares authorized; no shares issued or outstanding

 

 

 

 

 

 

Common stock, $0.001 par value per share, 100,000,000 shares authorized,

   53,246,110 shares issued and 27,597,037 shares outstanding at September 30, 2017

   and 52,601,284 shares issued and 27,495,539 shares outstanding at December 31,

   2016

 

 

53

 

 

 

52

 

Treasury stock, 25,649,073 shares at September 30, 2017 and 25,105,745 shares at

   December 31, 2016, at cost

 

 

(167,953

)

 

 

(162,731

)

Additional paid-in capital

 

 

298,933

 

 

 

296,853

 

Accumulated other comprehensive gain (loss)

 

 

5

 

 

 

(248

)

Accumulated deficit

 

 

(12,715

)

 

 

(16,363

)

Total stockholders’ equity

 

 

118,323

 

 

 

117,563

 

Total liabilities and stockholders’ equity

 

$

169,694

 

 

$

170,077

 

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TECHTARGET, INC.

Reconciliation of Net Income (Loss) to Adjusted EBITDA

(in 000’s)

 

 

  

 

Three Months Ended

September 30,

 

 

Nine Months Ended

September 30,

 

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

 

 

(Unaudited)

 

Net income (loss)

 

$

2,074

 

 

$

(22

)

 

$

3,406

 

 

$

2,329

 

Interest and other expense, net

 

 

190

 

 

 

471

 

 

 

447

 

 

 

1,037

 

Provision for income taxes

 

 

623

 

 

 

100

 

 

 

1,337

 

 

 

1,725

 

Depreciation

 

 

1,065

 

 

 

951

 

 

 

3,249

 

 

 

2,987

 

Amortization of intangible assets

 

 

44

 

 

 

183

 

 

 

126

 

 

 

718

 

EBITDA

 

 

3,996

 

 

 

1,683

 

 

 

8,565

 

 

 

8,796

 

Stock-based compensation expense

 

 

2,126

 

 

 

2,044

 

 

 

5,309

 

 

 

5,070

 

Adjusted EBITDA

 

$

6,122

 

 

$

3,727

 

 

$

13,874

 

 

$

13,866

 

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TECHTARGET, INC.

Reconciliation of Net Income (Loss) to Adjusted Net Income and

Net Income (Loss) per Diluted Share to Adjusted Net Income per Diluted Share

(in 000’s, except per share data)

 

 

 

Three Months Ended

September 30,

 

 

Nine Months Ended

September 30,

 

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

 

 

(Unaudited)

 

Net income (loss)

 

$

2,074

 

 

$

(22

)

 

$

3,406

 

 

$

2,329

 

Provision for income taxes

 

 

623

 

 

 

100

 

 

 

1,337

 

 

 

1,725

 

Net income before taxes

 

 

2,697

 

 

 

78

 

 

 

4,743

 

 

 

4,054

 

Amortization of intangible assets

 

 

44

 

 

 

183

 

 

 

126

 

 

 

718

 

Stock-based compensation expense

 

 

2,126

 

 

 

2,044

 

 

 

5,309

 

 

 

5,070

 

Foreign exchange (gain) loss and interest on term loan (1)

 

 

217

 

 

 

503

 

 

 

536

 

 

 

1,153

 

Adjusted income tax provision (2)

 

 

(1,846

)

 

 

(815

)

 

 

(3,951

)

 

 

(3,871

)

Adjusted net income

 

$

3,238

 

 

$

1,993

 

 

$

6,763

 

 

$

7,124

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) per diluted share

 

$

0.07

 

 

$

(0.00

)

 

$

0.12

 

 

$

0.07

 

Weighted average diluted shares outstanding

 

 

28,320

 

 

 

27,540

 

 

 

28,275

 

 

 

31,608

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted net income per diluted share

 

$

0.11

 

 

$

0.07

 

 

$

0.24

 

 

$

0.23

 

Adjusted weighted average diluted shares outstanding (3)

 

 

28,320

 

 

 

28,325

 

 

 

28,275

 

 

 

31,608

 

 

 

(1)

For consistency with current presentation, we have adjusted prior year non-GAAP income to include the adjustment for interest on the term loan.

 

(2)

Adjusted income tax provision was calculated using an adjusted effective tax rate, excluding discrete items, for each respective period.

 

(3)

Adjusted weighted average diluted shares outstanding includes 785 shares related to unvested stock awards calculated using the treasury method.

9 of 10

 


TECHTARGET, INC.

Financial Guidance for the Three and Twelve Months Ended December 31, 2017

(in 000’s)

 

 

 

Three Months Ended

December 31, 2017

 

 

Twelve Months Ended

December 31, 2017

 

 

 

Range

 

 

Range

 

Total Revenues

 

$

29,500

 

 

$

30,500

 

 

$

107,585

 

 

$

108,585

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

 

7,500

 

 

 

8,500

 

 

 

21,374

 

 

 

22,374

 

Depreciation, amortization and stock-based compensation

 

 

2,900

 

 

 

2,900

 

 

 

11,584

 

 

 

11,584

 

Interest and other expense, net

 

 

300

 

 

 

300

 

 

 

747

 

 

 

747

 

Provision for income taxes

 

 

2,000

 

 

 

2,500

 

 

 

3,337

 

 

 

3,837

 

Net income

 

$

2,300

 

 

$

2,800

 

 

 

5,706

 

 

 

6,206

 

 

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