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Section 1: 8-K (8-K)

ttgt-8k_20180207.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): February 7, 2018

 

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 February 7, 2018, TechTarget, Inc. (the “Company”) disclosed its results for the quarter and twelve (12) months ended December 31, 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 February 7, 2018.

 

 

 

 

 

 


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: February 7, 2018

 

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

 

 

February 7, 2018

 

Dear Fellow Shareholders:

We finished 2017 on a strong note, which sets up very well for 2018, 2019, and beyond.

 

Online revenues were up 18% in Q4 2017. Core North American revenues were up for the first time since 2015.

 

IT Deal AlertTM Q4 2017 revenues were $14.1 million, up 58% versus Q4 2016, and $49.5 million for 2017, up 58% versus 2016.

 

Revenues from Priority EngineTM and Deal DataTM more than doubled in Q4 2017 versus Q4 2016.

 

The number of IT Deal Alert customers in Q4 2017 was over 600, up from over 400 a year ago.

 

We had over 40 new Priority Engine and Deal Data customers in Q4 2017.

 

24% of the revenue in Q4 2017 was derived from longer-term contracts.

 

Adjusted EBITDA was $8.1 million (27% adjusted EBITDA margin), up 73% versus Q4 2016.

We believe that we are still in the early innings of a megatrend, namely that our customers are in the early phases of using data to make their sales and marketing organizations more competitive and efficient. We are the clear leader in providing purchase intent data, which is helping our customers drive this transformation. We continue to invest and innovate in our IT Deal Alert suite of products. The foundation of this offering is Priority Engine. In the past year, we have added numerous new automated features aimed at reducing complexity and improving ease-of-use. We have integrated Priority Engine with the leading sales automation and marketing automation systems that our customers rely on. We have forged relationships with market leaders, DiscoverOrg and HG Data to integrate their valuable data sets into Priority Engine. We have several more important improvements that we will introduce in 2018. As a result, there are multiple growth drivers for Priority Engine including renewals, upselling and cross-selling, adding new customers and a recently-instituted double-digit price increase. In 2018, we are forecasting that IT Deal Alert revenues will overtake our core offerings and represent the majority of our business.

The success of Priority Engine drove our ability to deliver 24% of our revenue under longer-term contracts in Q4 2017.  Historically, we mostly sold 30, 60 and 90 day packages, so this is a huge improvement to our business. We believe we can get into the neighborhood of 30% of our revenue derived by longer-term contracts by the end of 2018 and higher than that in 2019 and beyond. This remains a key part of our strategy, as adding a more predictable and recurring revenue stream will create shareholder value.

In regards to our core offerings, we are glad to report that things are brightening. Many of the headwinds that we faced in recent years have alleviated. First of all, we will no longer have the negative comparisons from our discontinued face-to-face events business. Secondly, the dollar has weakened, which should theoretically help our international business. Most importantly, the temporary disruptions to the marketing budgets from four of our largest core customers, who were going through major divestitures or acquisitions, are now behind us as we begin 2018. We continue to see better metrics in regards to core spending by our customers that also use IT Deal Alert. As we continue to add more IT Deal Alert customers, this should also bode well for our core results.

As we built our budget for 2018, we operated under the assumption that IT spending in 2018 would be similar to the tepid spending in 2017. In a flattish spending environment, due to the market share we are gaining and because of the strength of our data

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offerings, we believe we can grow revenue double digits, which translates to approximately 30% adjusted EBITDA growth due to the healthy incremental EBITDA margins on our financial model. If IT spending grows, we believe that there is revenue and EBITDA upside to our model. Many believe that the recently passed Tax Reform Bill will be a catalyst for improved IT spending as a result of the ability to expense 100% of capital investments in the first year, the repatriation of cash held overseas, and the lower corporate tax rate. On January 16th, Gartner updated their 2018 IT spending forecast to 4.5% growth for overall IT spending and 9.8% growth for enterprise software, which along with cloud computing, is a very large market for us. We hope they are right. While we don’t expect that these changes will create a “light switch” moment where marketing budgets drastically increase overnight, an improving spending environment has historically led to more investments in marketing.

Q4 2017 Results (Unaudited, in 000’s)

 

 

 

Three Months Ended

 

 

 

 

 

 

Years Ended

 

 

 

 

 

 

 

December 31,

 

 

 

 

 

 

December 31,

 

 

 

 

 

 

 

2017

 

 

2016

 

 

% change

 

 

2017

 

 

2016

 

 

% change

 

Total Online

 

$

30,303

 

 

$

25,585

 

 

 

18

%

 

$

108,388

 

 

$

101,827

 

 

 

6

%

Total Online by Geographic Area:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America IT Deal Alert

 

 

10,059

 

 

 

7,114

 

 

 

41

%

 

 

36,622

 

 

 

25,743

 

 

 

42

%

North America Core Online

 

 

10,143

 

 

 

9,614

 

 

 

6

%

 

 

36,586

 

 

 

43,296

 

 

 

(15

)%

Total North America Online

 

 

20,202

 

 

 

16,728

 

 

 

21

%

 

 

73,208

 

 

 

69,039

 

 

 

6

%

International:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

International IT Deal Alert

 

 

4,037

 

 

 

1,811

 

 

 

123

%

 

 

12,907

 

 

 

5,661

 

 

 

128

%

International Core Online

 

 

6,064

 

 

 

7,046

 

 

 

(14

)%

 

 

22,273

 

 

 

27,127

 

 

 

(18

)%

Total International Online

 

 

10,101

 

 

 

8,857

 

 

 

14

%

 

 

35,180

 

 

 

32,788

 

 

 

7

%

Total Online by Product:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

IT Deal Alert:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America IT Deal Alert

 

 

10,059

 

 

 

7,114

 

 

 

41

%

 

 

36,622

 

 

 

25,743

 

 

 

42

%

International IT Deal Alert

 

 

4,037

 

 

 

1,811

 

 

 

123

%

 

 

12,907

 

 

 

5,661

 

 

 

128

%

Total IT Deal Alert

 

 

14,096

 

 

 

8,925

 

 

 

58

%

 

 

49,529

 

 

 

31,404

 

 

 

58

%

Core Online:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America Core Online

 

 

10,143

 

 

 

9,614

 

 

 

6

%

 

 

36,586

 

 

 

43,296

 

 

 

(15

)%

International Core Online

 

 

6,064

 

 

 

7,046

 

 

 

(14

)%

 

 

22,273

 

 

 

27,127

 

 

 

(18

)%

Total Core Online

 

 

16,207

 

 

 

16,660

 

 

 

(3

)%

 

 

58,859

 

 

 

70,423

 

 

 

(16

)%

Total Events

 

$

 

 

$

1,085

 

 

 

(100

)%

 

$

168

 

 

$

4,798

 

 

 

(96

)%

Total Revenues

 

$

30,303

 

 

$

26,670

 

 

 

14

%

 

$

108,556

 

 

$

106,625

 

 

 

2

%

Adjusted EBITDA*

 

$

8,084

 

 

$

4,670

 

 

 

73

%

 

$

21,958

 

 

$

18,536

 

 

 

18

%

 

*

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

Gross Profit Percentages

Total gross profit percentage for Q4 2017 was 76%, up 500 basis points from Q4 2016. Online gross profit percentage was 76% for Q4 2017, compared to 72% for Q4 2016. These improvements are due to higher online revenue and the discontinuation of our events product line that had lower gross profit percentages.

Balance Sheet

The Company’s balance sheet remains very strong.  As of December 31, 2017, we had $34.1 million in cash and investments and $32.2 million of outstanding term loan debt.

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Common Stock Repurchase Plan

In the quarter, we repurchased 206,109 shares of common stock at an average price of $13.87 for an aggregate purchase price of $2.9 million. There is approximately $4.0 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 up single digits sequentially, as compared to Q3 2017. Organic traffic was down single digits as compared to Q4 2016, which was a record traffic quarter.

2018 and Q1 Guidance

For Q1 2018, we expect revenues to be between $26.0 million and $27.0 million. We expect adjusted EBITDA to be between $3.5 million and $4.5 million.

For 2018, we expect revenues to be between $121.0 and $123.0 million. We expect adjusted EBITDA to be between $28.0 and $30.0 million.

Summary

As IT Deal Alert revenues will make up the majority of our revenues in 2018, our transformation to a data intent company is here. We were able to generate a significant amount of momentum in 2017 that has carried over to this year. We are very optimistic about our business in 2018 and beyond.

 

Sincerely,

 

Michael Cotoia

Greg Strakosch

Chief Executive Officer

Executive Chairman

 

(C) 2018 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 (February 7, 2018). 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 February 7, 2018 one (1) hour after the conference call through March 7, 2018 at 9:00 a.m. ET. To listen to the replay, US callers should dial 1-877-344-7529 and use the conference number 10115382. International callers should dial 1-412-317-0088 and

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also use the conference number 10115382. Canadian callers should dial 1-855-669-9658 and also use the conference number 10115382. The webcast replay will also be available on http://investor.techtarget.com during the same period.

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

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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: 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.

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TechTarget, Inc.

Consolidated Statements of Operations

(in 000’s, except per share data)

 

 

 

 

For the Three Months Ended

 

 

For the Years Ended

 

 

 

December 31,

 

 

December 31,

 

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

 

 

(Unaudited)

 

 

(Unaudited)

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Online

 

$

30,303

 

 

$

25,585

 

 

$

108,388

 

 

$

101,827

 

Events

 

 

 

 

 

1,085

 

 

 

168

 

 

 

4,798

 

Total revenues

 

 

30,303

 

 

 

26,670

 

 

 

108,556

 

 

 

106,625

 

Cost of revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Online(1)

 

 

7,364

 

 

 

7,185

 

 

 

28,295

 

 

 

27,545

 

Events

 

 

 

 

 

623

 

 

 

41

 

 

 

2,672

 

Total cost of revenues

 

 

7,364

 

 

 

7,808

 

 

 

28,336

 

 

 

30,217

 

Gross profit

 

 

22,939

 

 

 

18,862

 

 

 

80,220

 

 

 

76,408

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling and marketing(1)

 

 

11,741

 

 

 

10,985

 

 

 

44,747

 

 

 

44,316

 

Product development(1)

 

 

2,047

 

 

 

2,011

 

 

 

8,215

 

 

 

8,038

 

General and administrative(1)

 

 

2,670

 

 

 

2,978

 

 

 

12,212

 

 

 

12,370

 

Depreciation

 

 

1,218

 

 

 

1,097

 

 

 

4,467

 

 

 

4,084

 

Amortization of intangible assets

 

 

43

 

 

 

91

 

 

 

169

 

 

 

809

 

Total operating expenses

 

 

17,719

 

 

 

17,162

 

 

 

69,810

 

 

 

69,617

 

Operating income

 

 

5,220

 

 

 

1,700

 

 

 

10,410

 

 

 

6,791

 

Interest and other expense, net

 

 

(246

)

 

 

(737

)

 

 

(693

)

 

 

(1,774

)

Income before provision for income taxes

 

 

4,974

 

 

 

963

 

 

 

9,717

 

 

 

5,017

 

Provision for income taxes

 

 

1,577

 

 

 

873

 

 

 

2,914

 

 

 

2,598

 

Net income

 

$

3,397

 

 

$

90

 

 

$

6,803

 

 

$

2,419

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.12

 

 

$

 

 

$

0.25

 

 

$

0.08

 

Diluted

 

$

0.12

 

 

$

 

 

$

0.24

 

 

$

0.08

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

27,636

 

 

 

27,865

 

 

 

27,550

 

 

 

29,954

 

Diluted

 

 

28,408

 

 

 

28,298

 

 

 

28,271

 

 

 

30,774

 

 

(1)

Amounts include stock-based compensation expense as follows:

 

Cost of online revenues

 

$

6

 

 

$

22

 

 

$

43

 

 

$

112

 

Selling and marketing

 

 

959

 

 

 

1,016

 

 

 

4,120

 

 

 

4,119

 

Product development

 

 

19

 

 

 

35

 

 

 

112

 

 

 

159

 

General and administrative

 

 

619

 

 

 

709

 

 

 

2,637

 

 

 

2,462

 

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TechTarget, Inc.

Consolidated Balance Sheets

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

  

 

 

December 31,

 

 

 

2017

 

 

2016

 

 

 

(Unaudited)

 

Assets

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

25,966

 

 

$

18,485

 

Short-term investments

 

 

7,650

 

 

 

10,988

 

Accounts receivable, net of allowance for doubtful accounts of $1,783 and $1,961 as

   of December 31, 2017 and 2016, respectively

 

 

29,601

 

 

 

22,551

 

Prepaid taxes

 

 

1,303

 

 

 

3,961

 

Prepaid expenses and other current assets

 

 

3,088

 

 

 

1,952

 

Total current assets

 

 

67,608

 

 

 

57,937

 

Property and equipment, net

 

 

9,786

 

 

 

9,232

 

Long-term investments

 

 

496

 

 

 

7,801

 

Goodwill

 

 

93,793

 

 

 

93,469

 

Intangible assets, net

 

 

506

 

 

 

601

 

Deferred tax assets

 

 

98

 

 

 

139

 

Other assets

 

 

882

 

 

 

898

 

Total assets

 

$

173,169

 

 

$

170,077

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

1,542

 

 

$

2,100

 

Current portion of term loan

 

 

9,888

 

 

 

6,157

 

Accrued expenses and other current liabilities

 

 

3,343

 

 

 

2,792

 

Accrued compensation expenses

 

 

1,397

 

 

 

698

 

Income taxes payable

 

 

218

 

 

 

122

 

Deferred revenue

 

 

7,598

 

 

 

6,079

 

Total current liabilities

 

 

23,986

 

 

 

17,948

 

Long-term liabilities:

 

 

 

 

 

 

 

 

Long-term portion of term loan

 

 

22,339

 

 

 

32,286

 

Deferred rent

 

 

5,259

 

 

 

2,080

 

Deferred tax liabilities

 

 

838

 

 

 

200

 

Total liabilities

 

 

52,422

 

 

 

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;

   53,338,297 shares issued and 27,483,115 shares outstanding at December 31, 2017;

   52,601,284 shares issued and 27,495,539 shares outstanding at December 31, 2016

 

 

53

 

 

 

52

 

Treasury stock, 25,855,182 and  25,105,745 shares at December 31, 2017 and 2016,

    respectively, at cost

 

 

(170,816

)

 

 

(162,731

)

Additional paid-in capital

 

 

300,763

 

 

 

296,853

 

Accumulated other comprehensive loss

 

 

65

 

 

 

(248

)

Accumulated deficit

 

 

(9,318

)

 

 

(16,363

)

Total stockholders’ equity

 

 

120,747

 

 

 

117,563

 

Total liabilities and stockholders’ equity

 

$

173,169

 

 

$

170,077

 


7 of 10

 


TechTarget, Inc.

Reconciliation of Net Income to Adjusted EBITDA

(in 000’s)

 

 

 

 

Three Months Ended

December 31,

 

 

Years Ended

December 31,

 

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

Net income

 

$

3,397

 

 

$

90

 

 

$

6,803

 

 

$

2,419

 

Interest and other expense, net

 

 

246

 

 

 

737

 

 

 

693

 

 

 

1,774

 

Provision for income taxes

 

 

1,577

 

 

 

873

 

 

 

2,914

 

 

 

2,598

 

Depreciation

 

 

1,218

 

 

 

1,097

 

 

 

4,467

 

 

 

4,084

 

Amortization of intangible assets

 

 

43

 

 

 

91

 

 

 

169

 

 

 

809

 

EBITDA

 

 

6,481

 

 

 

2,888

 

 

 

15,046

 

 

 

11,684

 

Stock-based compensation expense

 

 

1,603

 

 

 

1,782

 

 

 

6,912

 

 

 

6,852

 

Adjusted EBITDA

 

$

8,084

 

 

$

4,670

 

 

$

21,958

 

 

$

18,536

 

8 of 10

 


TECHTARGET, INC.

Reconciliation of Net Income to Adjusted Net Income and

Net Income per Diluted Share to Adjusted Net Income per Diluted Share

(in 000’s, except per share data)

 

 

 

Three Months Ended

December 31,

 

 

Years Ended

December 31,

 

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

Net income

 

$

3,397

 

 

$

90

 

 

$

6,803

 

 

$

2,419

 

Provision for income taxes

 

 

1,577

 

 

 

873

 

 

 

2,914

 

 

 

2,598

 

Net income before taxes

 

 

4,974

 

 

 

963

 

 

 

9,717

 

 

 

5,017

 

Amortization of intangible assets

 

 

43

 

 

 

91

 

 

 

169

 

 

 

809

 

Stock-based compensation expense

 

 

1,603

 

 

 

1,782

 

 

 

6,912

 

 

 

6,852

 

Foreign exchange (gain) loss and interest on term loan

 

 

276

 

 

 

760

 

 

 

812

 

 

 

1,913

 

Adjusted income tax provision (1)

 

 

(1,307

)

 

 

(702

)

 

 

(5,258

)

 

 

(4,573

)

Adjusted net income

 

$

5,589

 

 

$

2,894

 

 

$

12,352

 

 

$

10,018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per diluted share

 

$

0.12

 

 

$

0.00

 

 

$

0.24

 

 

$

0.08

 

Weighted average diluted shares outstanding

 

 

28,408

 

 

 

28,298

 

 

 

28,271

 

 

 

30,774

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted net income per diluted share

 

$

0.20

 

 

$

0.10

 

 

$

0.44

 

 

$

0.33

 

Adjusted weighted average diluted shares outstanding

 

 

28,408

 

 

 

28,298

 

 

 

28,271

 

 

 

30,774

 

 

 

(1)

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

9 of 10

 


TECHTARGET, INC.

Financial Guidance for the Three Months Ended March 31, 2018

(in 000’s)

 

 

 

Three Months Ended

March 31, 2018

 

 

 

Range

 

Total Revenues

 

$

26,000

 

 

$

27,000

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

 

3,500

 

 

 

4,500

 

Depreciation, amortization and stock-based compensation

 

 

2,800

 

 

 

2,800

 

Interest and other expense, net

 

 

300

 

 

 

300

 

Provision for income taxes

 

 

100

 

 

 

400

 

Net income

 

$

300

 

 

$

1,000

 

 

10 of 10

 

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