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Section 1: 8-K (8-K)

ttgt-8k_20180630.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): August 8, 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 August 8, 2018, TechTarget, Inc. (the “Company”) disclosed its results for the three and six months ended June 30, 2018 in its Shareholder Letter, which is posted on the Investor Relations section of its website at www.techtarget.com. The Letter to Shareholders 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

 

Letter to Shareholders dated August 8, 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: August 8, 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

 

 

August 8, 2018

Dear Fellow Shareholders:

We delivered record revenues, adjusted EBITDA and margins in Q2. Highlights include:

 

Revenues were a record $31.5 million in Q2 2018, up 18% versus Q2 2017.

 

Revenues from Priority EngineTM increased by more than 60% in Q2 2018 versus Q2 2017.

 

Revenues from our Core offerings increased by 20% in North America and 16% globally in Q2 2018 versus Q2 2017.

 

34% of the revenues in Q2 2018 were derived from longer-term contracts, up from 21% in Q2 2017.

 

Gross profit percentage expanded to 77% in Q2 2018, up from 73% in Q2 2017.

 

Adjusted EBITDA was a record $9 million in Q2 2018, up 74% versus Q2 2017.

 

Adjusted EBITDA expanded to 29% of revenue in Q2 2018 compared to 20% of revenue in Q2 2017.

 

Incremental adjusted EBITDA margin was 80% year over year and 92% sequentially in the quarter.

 

The robust revenue growth we are delivering is demonstrating the inherent operating leverage and room for margin expansion in our financial model. Gross profit percentages expanded to a record 77%. We think we can continue to push gross profit percentage upward. The most dramatic improvement to our margins is on the adjusted EBITDA line, where the margin expanded to 29% from 20%. This is because we are essentially a fixed cost expense model with very little incremental cost of sales when we sell more. This is demonstrated by the 80% year over year and 92% sequential incremental adjusted EBITDA margin in the quarter. Historically, we have targeted annual incremental adjusted EBITDA margins of between 50% and 60% but as our revenue numbers scale we think we will continue to see upside. As we scale revenue, we believe that we can achieve better than 40% adjusted EBITDA margins.

Revenue growth continues to be driven by our leadership position in purchase intent data and our customers’ transition to becoming data driven sales and marketing organizations. IT Deal AlertTM revenue grew to $14 million in the quarter versus $11.7 million in the same quarter last year, up 21%. The number of IT Deal Alert customers was over 600 in the quarter, up from approximately 500 customers a year ago. We added more than 40 new Priority Engine customers. On May 3, 2018, we released an enhanced version of Priority Engine with multiple improved features to help our customers improve their ability to identify and better target active prospects to help them grow their revenue and market share. These new features are being well-received in the market place. Very importantly, the continued success of Priority Engine is driving our business towards a recurring revenue model, with 34% of revenue in the quarter being derived from longer-term contracts.

As you can imagine, with this evolving subscription model, we are very focused on retention and upselling. Approximately 80% of our revenue comes from large and medium sized customers and about 20% comes from smaller companies, typically VC-backed start-ups. Our revenue renewal rate on longer-term contracts from large and medium sized customers is well over 100%. Those customers are finding great value in our purchase intent data and are renewing and buying more from us at high rates. Historically, we have had higher churn with our smaller customers for a host of reasons that you would expect such as changing go-to-market priorities, budget or funding reductions, personnel turnover, etc. This historical churn with our smaller customers on our Core offerings has carried over to our IT Deal Alert longer-term contracts. While we are not surprised with this issue because of the inherent challenges of working with smaller companies, we think we can reduce the churn with this customer set. We are taking three steps to address this issue. First, we are laser-focused on introducing ease-of-use features as many of our smaller customers do not have the same resources or sophistication of our larger customers. Second, we are investing in our Customer Success team, who are responsible for on-boarding, training and monitoring to ensure that our customers get off to a good start and are

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maximizing their ROI throughout the year. Third, we are creating a dedicated sales team who will be responsible for renewing and upselling, which create more focus on retention while having the side benefit of creating more time for our existing sales team to hunt for new opportunities.

Another benefit that we are seeing from our leadership position in purchase intent data is how it is driving growth in our Core offerings. We use our purchase intent data to power our Core offerings, which is a significant competitive advantage and supports our premium pricing model. Core revenues were up 20% in North America and 16% globally. Growth in Core was especially strong from our ten major global customers as they invest in their brand and content syndication as the IT spending environment improves. Interestingly, we even saw some revenue from this customer segment shift budget from Qualified Sales Opportunities to Core demand generation products. Since both of these offerings have the same margin structure, we are agnostic to where our customers choose to invest with us.

On another note, we are pleased to announce that we made a small, non-material acquisition on August 1, 2018. We acquired Oceanos Marketing, which is a Massachusetts-based contact data management company. The Oceanos team, who will be joining TechTarget, bring data quality and data management expertise that will help us improve our offerings and deliver better results to our customers.

Q2 2018 Results (Unaudited)

 

 

Three Months Ended June 30,

 

 

Percent

 

 

Six Months Ended June 30,

 

 

Percent

 

 

 

2018

 

 

2017

 

 

Change

 

 

2018

 

 

2017

 

 

Change

 

 

 

($ in thousands)

 

 

 

 

 

 

($ in thousands)

 

 

 

 

 

Total by Geographic Area:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America IT Deal Alert

 

$

10,389

 

 

$

8,441

 

 

 

23

%

 

$

20,395

 

 

$

16,609

 

 

 

23

%

North America Core Online

 

 

10,798

 

 

 

8,993

 

 

 

20

%

 

 

19,641

 

 

 

17,070

 

 

 

15

%

Total North America

 

 

21,187

 

 

 

17,434

 

 

 

22

%

 

 

40,036

 

 

 

33,679

 

 

 

19

%

International:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

International IT Deal Alert

 

 

3,658

 

 

 

3,215

 

 

 

14

%

 

 

7,266

 

 

 

5,418

 

 

 

34

%

International Core Online

 

 

6,627

 

 

 

6,015

 

 

 

10

%

 

 

11,469

 

 

 

10,976

 

 

 

4

%

Total International

 

 

10,285

 

 

 

9,230

 

 

 

11

%

 

 

18,735

 

 

 

16,394

 

 

 

14

%

Total Online by Product:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

IT Deal Alert:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America IT Deal Alert

 

 

10,389

 

 

 

8,441

 

 

 

23

%

 

 

20,395

 

 

 

16,609

 

 

 

23

%

International IT Deal Alert

 

 

3,658

 

 

 

3,215

 

 

 

14

%

 

 

7,266

 

 

 

5,418

 

 

 

34

%

Total IT Deal Alert

 

 

14,047

 

 

 

11,656

 

 

 

21

%

 

 

27,661

 

 

 

22,027

 

 

 

26

%

Core Online:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America Core Online

 

 

10,798

 

 

 

8,993

 

 

 

20

%

 

 

19,641

 

 

 

17,070

 

 

 

15

%

International Core Online

 

 

6,627

 

 

 

6,015

 

 

 

10

%

 

 

11,469

 

 

 

10,976

 

 

 

4

%

Total Core Online

 

 

17,425

 

 

 

15,008

 

 

 

16

%

 

 

31,110

 

 

 

28,046

 

 

 

11

%

Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

168

 

 

 

(100

)%

Total Revenues

 

$

31,472

 

 

$

26,664

 

 

 

18

%

 

$

58,771

 

 

$

50,241

 

 

 

17

%

Adjusted EBITDA*

 

$

9,047

 

 

$

5,209

 

 

 

74

%

 

$

14,251

 

 

$

7,752

 

 

 

84

%

 

*

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

Gross profit percentage for Q2 2018 was 77%, compared to 73% for Q2 2017. The improvement is primarily due to higher revenue.

 

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Balance Sheet

Our balance sheet remains very strong. As of June 30, 2018, we had $34.3 million in cash and investments and $27.3 million of outstanding term loan debt. We paid down $2.5 million of debt during the quarter.

Common Stock Repurchase Plan

In the quarter, we did not repurchase any shares of our common stock. There is approximately $2.4 million available under the $20.0 million repurchase program that we announced in June of 2016.  

Traffic Update

Unpaid traffic represented 96% of overall traffic in the quarter. Unpaid traffic was down single digits as compared to Q2 2017, and remains at a level that is more than sufficient to support our revenue.

Q3 2018 Guidance and Increased 2018 Full Year Forecast

For Q3 2018, we expect revenues between $30 million and $31 million. We expect adjusted EBITDA between $7.2 million and $8.0 million.

For the full year, we are reaffirming our 2018 revenue forecast that we raised on May 9, 2018, for revenues to be between $122 million and $124 million.

Today, we are raising our annual adjusted EBITDA forecast to be between $30 million and $32 million.

The original adjusted EBITDA forecast provided on February 7, 2018 was for annual adjusted EBITDA to be between $28 million and $30 million. On May 9, 2018, the annual adjusted EBITDA forecast was raised to be between $29 million and $31 million.

Summary

Overall, our customers continue to be focused on using data to make their sales and marketing organizations more efficient and competitive. Customers that are executing well with our data are seeing outsized results. We are very optimistic about both our short-term and long-term opportunities, especially as the IT spending environment continues to improve, which will continue to result in healthy revenue growth and even higher profitability as our margins continue to expand.

 

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 Qualified Sales Opportunities 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 (August 8, 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.

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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 August 8, 2018 one (1) hour after the conference call through September 8, 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 10121603. International callers should dial 1-412-317-0088 and also use the conference number 10121603. Canadian callers should dial 1-855-669-9658 and also use the conference number 10121603. 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 diluted 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, income taxes, depreciation and amortization, as further adjusted to exclude stock-based compensation, other income and expense, 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 diluted 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

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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: 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 Income

(in 000’s, except per share data)

 

 

 

 

For the Three Months Ended

 

 

For the Six Months Ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

 

 

(Unaudited)

 

 

(Unaudited)

 

Revenues

 

$

31,472

 

 

$

26,664

 

 

$

58,771

 

 

$

50,241

 

Cost of revenues

 

 

7,124

 

 

 

7,085

 

 

 

13,849

 

 

 

14,021

 

Gross profit

 

 

24,348

 

 

 

19,579

 

 

 

44,922

 

 

 

36,220

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling and marketing(1)

 

 

11,419

 

 

 

10,745

 

 

 

22,774

 

 

 

21,438

 

Product development(1)

 

 

2,069

 

 

 

2,016

 

 

 

4,187

 

 

 

3,959

 

General and administrative(1)

 

 

3,327

 

 

 

3,198

 

 

 

6,726

 

 

 

6,254

 

Depreciation

 

 

1,112

 

 

 

1,093

 

 

 

2,192

 

 

 

2,184

 

Amortization of intangible assets

 

 

28

 

 

 

42

 

 

 

56

 

 

 

82

 

Total operating expenses

 

 

17,955

 

 

 

17,094

 

 

 

35,935

 

 

 

33,917

 

Operating income

 

 

6,393

 

 

 

2,485

 

 

 

8,987

 

 

 

2,303

 

Interest and other expense, net

 

 

(644

)

 

 

(94

)

 

 

(844

)

 

 

(257

)

Income before provision for income taxes

 

 

5,749

 

 

 

2,391

 

 

 

8,143

 

 

 

2,046

 

Provision for income taxes

 

 

1,329

 

 

 

1,030

 

 

 

1,629

 

 

 

714

 

Net income

 

$

4,420

 

 

$

1,361

 

 

$

6,514

 

 

$

1,332

 

 

Net income per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.16

 

 

$

0.05

 

 

$

0.24

 

 

$

0.05

 

Diluted

 

$

0.15

 

 

$

0.05

 

 

$

0.23

 

 

$

0.05

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

27,541

 

 

 

27,477

 

 

 

27,527

 

 

 

27,505

 

Diluted

 

 

28,759

 

 

 

28,333

 

 

 

28,664

 

 

 

28,261

 

 

(1)

Amounts include stock-based compensation expense as follows:

 

Cost of revenues

 

$

31

 

 

$

12

 

 

$

61

 

 

$

24

 

Selling and marketing

 

 

828

 

 

 

927

 

 

 

1,655

 

 

 

1,877

 

Product development

 

 

20

 

 

 

41

 

 

 

40

 

 

 

75

 

General and administrative

 

 

635

 

 

 

609

 

 

 

1,260

 

 

 

1,207

 

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TechTarget, Inc.

Consolidated Balance Sheets

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

 

 

 

 

June 30,

2018

 

 

December 31,

2017

 

 

 

(Unaudited)

 

Assets

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

30,269

 

 

$

25,966

 

Short-term investments

 

 

4,006

 

 

 

7,650

 

Accounts receivable, net of allowance for doubtful accounts of $1,903 and $1,783 as

   of June 30, 2018 and December 31, 2017, respectively

 

 

28,438

 

 

 

29,601

 

Prepaid taxes

 

 

635

 

 

 

1,303

 

Prepaid expenses and other current assets

 

 

3,044

 

 

 

3,088

 

Total current assets

 

 

66,392

 

 

 

67,608

 

Property and equipment, net

 

 

11,256

 

 

 

9,786

 

Long-term investments

 

 

 

 

 

496

 

Goodwill

 

 

93,716

 

 

 

93,793

 

Intangible assets, net

 

 

439

 

 

 

506

 

Deferred tax assets

 

 

483

 

 

 

98

 

Other assets

 

 

871

 

 

 

882

 

Total assets

 

$

173,157

 

 

$

173,169

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

2,013

 

 

$

1,542

 

Current portion of term loan

 

 

9,888

 

 

 

9,888

 

Accrued expenses and other current liabilities

 

 

2,962

 

 

 

3,343

 

Accrued compensation expenses

 

 

1,212

 

 

 

1,397

 

Income taxes payable

 

 

141

 

 

 

218

 

Contract liabilities

 

 

5,265

 

 

 

7,598

 

Total current liabilities

 

 

21,481

 

 

 

23,986

 

Long-term liabilities:

 

 

 

 

 

 

 

 

Long-term portion of term loan

 

 

17,370

 

 

 

22,339

 

Deferred rent

 

 

5,104

 

 

 

5,259

 

Deferred tax liabilities

 

 

508

 

 

 

838

 

Total liabilities

 

 

44,463

 

 

 

52,422

 

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,

   53,545,739 shares issued and 27,578,254 shares outstanding at June 30, 2018

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

   2017

 

 

54

 

 

 

53

 

Treasury stock, 25,967,485 shares at June 30, 2018 and 25,855,182 shares at

   December 31, 2017, at cost

 

 

(172,429

)

 

 

(170,816

)

Additional paid-in capital

 

 

303,926

 

 

 

300,763

 

Accumulated other comprehensive (loss) income

 

 

(53

)

 

 

65

 

Accumulated deficit

 

 

(2,804

)

 

 

(9,318

)

Total stockholders’ equity

 

 

128,694

 

 

 

120,747

 

Total liabilities and stockholders’ equity

 

$

173,157

 

 

$

173,169

 

7 of 10

 


TECHTARGET, INC.

Reconciliation of Net Income to Adjusted EBITDA

(in 000’s)

 

 

 

 

Three Months Ended

June 30,

 

 

Six Months Ended

June 30,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

 

 

(Unaudited)

 

 

(Unaudited)

 

Net income

 

$

4,420

 

 

$

1,361

 

 

$

6,514

 

 

$

1,332

 

Interest expense (income), net

 

 

293

 

 

 

321

 

 

 

598

 

 

 

620

 

Provision for income taxes

 

 

1,329

 

 

 

1,030

 

 

 

1,629

 

 

 

714

 

Depreciation

 

 

1,112

 

 

 

1,093

 

 

 

2,192

 

 

 

2,184

 

Amortization of intangible assets

 

 

28

 

 

 

42

 

 

 

56

 

 

 

82

 

EBITDA

 

 

7,182

 

 

 

3,847

 

 

 

10,989

 

 

 

4,932

 

Stock-based compensation expense

 

 

1,514

 

 

 

1,589

 

 

 

3,016

 

 

 

3,183

 

Other expense (income), net

 

 

351

 

 

 

(227

)

 

 

246

 

 

 

(363

)

Adjusted EBITDA

 

$

9,047

 

 

$

5,209

 

 

$

14,251

 

 

$

7,752

 

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

June 30,

 

 

Six Months Ended

June 30,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

 

 

(Unaudited)

 

 

(Unaudited)

 

Net income

 

$

4,420

 

 

$

1,361

 

 

$

6,514

 

 

$

1,332

 

Provision for income taxes

 

 

1,329

 

 

 

1,030

 

 

 

1,629

 

 

 

714

 

Net income before taxes

 

 

5,749

 

 

 

2,391

 

 

 

8,143

 

 

 

2,046

 

Amortization of intangible assets

 

 

28

 

 

 

42

 

 

 

56

 

 

 

82

 

Stock-based compensation expense

 

 

1,514

 

 

 

1,589

 

 

 

3,016

 

 

 

3,183

 

Foreign exchange (gain) loss and interest (income)/expense

 

 

689

 

 

 

125

 

 

 

925

 

 

 

319

 

Adjusted income tax provision (1)

 

 

(1,866

)

 

 

(1,604

)

 

 

(2,909

)

 

 

(2,105

)

Adjusted net income

 

$

6,114

 

 

$

2,543

 

 

$

9,231

 

 

$

3,525

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per diluted share

 

$

0.15

 

 

$

0.05

 

 

$

0.23

 

 

$

0.05

 

Weighted average diluted shares outstanding

 

 

28,759

 

 

 

28,333

 

 

 

28,664

 

 

 

28,261

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted net income per diluted share

 

$

0.21

 

 

$

0.09

 

 

$

0.32

 

 

$

0.12

 

Adjusted weighted average diluted shares outstanding (2)

 

 

28,759

 

 

 

28,333

 

 

 

28,664

 

 

 

28,261

 

 

 

(1)

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

 

(2)

Adjusted weighted average diluted shares outstanding as of June 30, 2018 includes 1.2 million and 1.1 million shares related to unvested stock awards calculated using the treasury method for the three and six months ended. June 30, 2018, respectively. Adjusted weighted average diluted shares outstanding as of June 30, 2017 includes 0.9 million and 0.8 million shares related to unvested stock awards calculated using the treasury method for the three and six months ended June 30, 2017, respectively.

 

 

 

 

 

 

 

 

 

 

9 of 10

 


TECHTARGET, INC.

Financial Guidance for the Three Months Ended September 30, 2018

(in 000’s)

 

 

 

Three Months Ended

September 30, 2018

 

 

 

Range

 

Revenues

 

$

30,000

 

 

$

31,000

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

 

7,200

 

 

 

8,000

 

Depreciation, amortization and stock-based compensation

 

 

4,400

 

 

 

4,400

 

Interest and other expense, net

 

 

300

 

 

 

300

 

Provision for income taxes

 

 

600

 

 

 

800

 

Net income

 

$

1,900

 

 

$

2,500

 

 

10 of 10

 

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