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Section 1: 8-K (8-K)

ttgt-8k_20180930.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 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 November 7, 2018, TechTarget, Inc. (the “Company”) disclosed its results for the three and nine months ended September 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 November 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: November 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

 

 

November 7, 2018

Dear Fellow Shareholders:

We delivered record revenues, adjusted EBITDA and margins in Q3. Highlights include:

 

Revenues were $30.7 million in Q3 2018, up 10% versus Q3 2017.

 

Adjusted EBITDA was $7.7 million in Q3 2018, up 25% versus Q3 2017.

 

Revenues from Priority EngineTM grew 38% in Q3 2018 versus Q3 2017.

 

35% of the revenues in Q3 2018 were derived from longer-term contracts, up from 23% in Q3 2017.

 

Adjusted EBITDA expanded to 25% of revenue in Q3 2018 compared to 22% of revenue in Q3 2017.

 

We were recognized as a leader in The Forrester Wave: B2B Marketing Data Providers, Q3 2018

 

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 19% to a record $16 million in the quarter. The number of IT Deal Alert customers was approximately 675 in the quarter, compared to approximately 610 customers a year ago. We added 43 new Priority Engine customers in the quarter. The continued success of Priority Engine is driving our business towards a recurring revenue model, with 35% of revenue in the quarter being derived from longer-term contracts compared to 23% in the same quarter last year.

Our leadership position in the market was recognized in a Forrester Wave Report titled The Forrester Wave: B2B Marketing Data Providers, Q3 2018. TechTarget was named a leader in the report. In addition to receiving the highest score among all reviewed vendors in the Data Acquisition and Processing criterion, TechTarget received the highest scores possible in Data Coverage, Data Security and Privacy, and Go-to-Market Strategy criteria. According to the report, “TechTarget offers solid buying signals for tech marketers with a unique opt-in data set.” Further, it stated that, “This opt-in model for data sourcing is a strong differentiator for TechTarget, especially in the current climate of increasing data privacy requirements.”  One customer interviewed for the report stated that they “evaluated multiple intent providers and rated TechTarget the highest.” A second current client added that TechTarget’s “opt-in model was critical because of its ‘conservative’ legal department’s interpretation of GDPR.” Another customer interviewed for this report said it had “very positive results by extending its investment in TechTarget to add these services in an integrated marketing strategy.” You can access a full copy of this report on our corporate web site www.TechTarget.com.

Core revenues are up 8% year-to-date, but were only up 1% in the quarter. In previous shareholder letters, we have made the point that what used to be a bright line between our core and IT product lines is now blurry, making the distinction less meaningful by the day.  With that said, we believe the deceleration in the core growth rate is directly related to cautiousness by some of our largest customers. They are telling us that they are being cautious due to uncertainty in their business related to tariffs, the mid-term elections and GDPR in Europe. This climate has carried into Q4 and is reflected in our guidance.  The two big trends of our customers becoming more data-driven and a better IT spending environment continue and we are still expecting double digit revenue growth and more than 20% Adjusted EBITDA growth in 2019.

 

 

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Q3 2018 Results (Unaudited)

  

 

Three Months Ended September 30,

 

 

Percent

 

 

Nine Months Ended September 30,

 

 

Percent

 

 

 

2018

 

 

2017

 

 

Change

 

 

2018

 

 

2017

 

 

Change

 

 

 

($ in thousands)

 

 

 

 

 

 

($ in thousands)

 

 

 

 

 

Total by Geographic Area:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America IT Deal Alert

 

$

11,921

 

 

$

9,953

 

 

 

20

%

 

$

32,316

 

 

$

26,563

 

 

 

22

%

North America Core

 

 

9,026

 

 

 

9,374

 

 

 

(4

)%

 

 

28,667

 

 

 

26,444

 

 

 

8

%

Total North America

 

 

20,947

 

 

 

19,327

 

 

 

8

%

 

 

60,983

 

 

 

53,007

 

 

 

15

%

International:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

International IT Deal Alert

 

 

4,043

 

 

 

3,451

 

 

 

17

%

 

 

11,309

 

 

 

8,869

 

 

 

28

%

International Core

 

 

5,752

 

 

 

5,234

 

 

 

10

%

 

 

17,221

 

 

 

16,209

 

 

 

6

%

Total International

 

 

9,795

 

 

 

8,685

 

 

 

13

%

 

 

28,530

 

 

 

25,078

 

 

 

14

%

Total Online by Product:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

IT Deal Alert:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America IT Deal Alert

 

$

11,921

 

 

$

9,953

 

 

 

20

%

 

$

32,316

 

 

$

26,563

 

 

 

22

%

International IT Deal Alert

 

 

4,043

 

 

 

3,451

 

 

 

17

%

 

 

11,309

 

 

 

8,869

 

 

 

28

%

Total IT Deal Alert

 

 

15,964

 

 

 

13,404

 

 

 

19

%

 

 

43,625

 

 

 

35,432

 

 

 

23

%

Core:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America Core

 

 

9,026

 

 

 

9,374

 

 

 

(4

)%

 

 

28,667

 

 

 

26,444

 

 

 

8

%

International Core

 

 

5,752

 

 

 

5,234

 

 

 

10

%

 

 

17,221

 

 

 

16,209

 

 

 

6

%

Total Core

 

 

14,778

 

 

 

14,608

 

 

 

1

%

 

 

45,888

 

 

 

42,653

 

 

 

8

%

Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

168

 

 

 

(100

)%

Total Revenues

 

$

30,742

 

 

$

28,012

 

 

 

10

%

 

$

89,513

 

 

$

78,253

 

 

 

14

%

Adjusted EBITDA*

 

$

7,668

 

 

$

6,122

 

 

 

25

%

 

$

21,919

 

 

$

13,874

 

 

 

58

%

 

*

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 Q3 2018 was 76%, compared to 75% for Q3 2017. The improvement is primarily due to higher revenue.

Balance Sheet

Our balance sheet remains very strong. As of September 30, 2018, we had $32.4 million in cash and investments and $24.8 million of outstanding term loan debt. We paid down $2.5 million of debt during the quarter.

We have signed a term sheet with a bank to restructure our current term loan which matures in May 2021. Our current term loan carries an interest rate of LIBOR plus 2.5%, requires principal payments of $10 million per year and has an annual administrative fee of $25,000. The new 5-year agreement, which we expect to finalize before the end of the year, has an interest rate of LIBOR plus 1.375%, principal payments of $1.25 million in years 1 and 2, $1.875 million in year 3, $2.5 million in year 4 and the remainder in year 5 and no annual administrative fees.

New $25 million Common Stock Repurchase Plan

In the quarter, we repurchased 99,426 shares of common stock at an average price of $23.63 for an aggregate purchase price of $2.4 million. The $20.0 million repurchase program that we announced in June of 2016 expired August 2018. Since 2010, the company has bought back and retired 48% of our issued shares at an average purchase price of $6.70 per share.

Today, the Company is announcing an additional stock repurchase program of $25 million over a two-year period beginning in November 2018

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Traffic Update

Unpaid traffic represented 96% of overall traffic in the quarter. Unpaid traffic was almost flat compared to Q3 2017, and remains at a level that is more than sufficient to support our revenue.

Q4 2018 and Preliminary 2019 Guidance

For Q4 2018, we expect revenues between $31 million and $32 million. We expect adjusted EBITDA between $7.3 million and $8.0 million.

Our preliminary 2019 forecast calls for double digit revenue growth and over 20% adjusted EBITDA growth. We will give further details about our 2019 forecast with our next earnings release in February 2019.

Summary

We continue to execute at a high level and expand our leadership position. We are optimistic that IT spending will continue to improve in 2019 and beyond as it tends to move in multi-year cycles, which historically has resulted in marketing budgets growing. As revenue continues to scale, our high-operating leverage financial model will continue to produce expanding margins and growing cash flow. We will use the increased cash flow from operations and the restructuring of our debt to opportunistically repurchase our stock in the open market as part of our successful long –term strategy to return cash to shareholders.

 

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 (November 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 November 7, 2018 one (1) hour after the conference call through December 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 10124686. International callers should dial 1-412-317-0088 and also use the conference number 10124686. Canadian callers should dial 1-855-669-9658 and also use the conference number 10124686. 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 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 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

4 of 10

 


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 Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

 

 

(Unaudited)

 

 

(Unaudited)

 

Revenues

 

$

30,742

 

 

$

28,012

 

 

$

89,513

 

 

$

78,253

 

Cost of revenues(1)

 

 

7,445

 

 

 

6,951

 

 

 

21,294

 

 

 

20,972

 

Gross profit

 

 

23,297

 

 

 

21,061

 

 

 

68,219

 

 

 

57,281

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling and marketing(1)

 

 

12,479

 

 

 

11,568

 

 

 

35,254

 

 

 

33,006

 

Product development(1)

 

 

2,340

 

 

 

2,209

 

 

 

6,527

 

 

 

6,168

 

General and administrative(1)

 

 

3,938

 

 

 

3,288

 

 

 

10,663

 

 

 

9,542

 

Depreciation and amortization

 

 

1,156

 

 

 

1,109

 

 

 

3,404

 

 

 

3,375

 

Total operating expenses

 

 

19,913

 

 

 

18,174

 

 

 

55,848

 

 

 

52,091

 

Operating income

 

 

3,384

 

 

 

2,887

 

 

 

12,371

 

 

 

5,190

 

Interest and other expense, net

 

 

(362

)

 

 

(190

)

 

 

(1,206

)

 

 

(447

)

Income before (benefit from) provision for income taxes

 

 

3,022

 

 

 

2,697

 

 

 

11,165

 

 

 

4,743

 

(Benefit from) provision for income taxes

 

 

(747

)

 

 

623

 

 

 

882

 

 

 

1,337

 

Net income

 

$

3,769

 

 

$

2,074

 

 

$

10,283

 

 

$

3,406

 

 

 

Net income per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.14

 

 

$

0.08

 

 

$

0.37

 

 

$

0.12

 

Diluted

 

$

0.13

 

 

$

0.07

 

 

$

0.36

 

 

$

0.12

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

27,827

 

 

 

27,555

 

 

 

27,627

 

 

 

27,521

 

Diluted

 

 

28,764

 

 

 

28,320

 

 

 

28,711

 

 

 

28,275

 

 

(1)

Amounts include stock-based compensation expense as follows:

 

Cost of revenues

 

$

53

 

 

$

13

 

 

$

114

 

 

$

38

 

Selling and marketing

 

 

1,608

 

 

 

1,284

 

 

 

3,263

 

 

 

3,161

 

Product development

 

 

73

 

 

 

18

 

 

 

113

 

 

 

92

 

General and administrative

 

 

1,394

 

 

 

811

 

 

 

2,654

 

 

 

2,018

 

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TechTarget, Inc.

Consolidated Balance Sheets

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

 

 

 

September 30,

2018

 

 

December 31,

2017

 

 

 

(Unaudited)

 

Assets

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

29,447

 

 

$

25,966

 

Short-term investments

 

 

3,000

 

 

 

7,650

 

Accounts receivable, net of allowance for doubtful accounts of $1,975 and $1,783 as

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

 

 

27,621

 

 

 

29,601

 

Prepaid taxes

 

 

2,171

 

 

 

1,303

 

Prepaid expenses and other current assets

 

 

3,751

 

 

 

3,088

 

Total current assets

 

 

65,990

 

 

 

67,608

 

Property and equipment, net

 

 

10,980

 

 

 

9,786

 

Long-term investments

 

 

 

 

 

496

 

Goodwill

 

 

93,709

 

 

 

93,793

 

Intangible assets, net

 

 

892

 

 

 

506

 

Deferred tax assets

 

 

526

 

 

 

98

 

Other assets

 

 

869

 

 

 

882

 

Total assets

 

$

172,966

 

 

$

173,169

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

1,960

 

 

$

1,542

 

Current portion of term loan

 

 

9,888

 

 

 

9,888

 

Accrued expenses and other current liabilities

 

 

3,130

 

 

 

3,343

 

Accrued compensation expenses

 

 

1,394

 

 

 

1,397

 

Income taxes payable

 

 

141

 

 

 

218

 

Contract liabilities

 

 

5,275

 

 

 

7,598

 

Total current liabilities

 

 

21,788

 

 

 

23,986

 

Long-term liabilities:

 

 

 

 

 

 

 

 

Long-term portion of term loan

 

 

14,898

 

 

 

22,339

 

Deferred rent

 

 

5,027

 

 

 

5,259

 

Deferred tax liabilities

 

 

396

 

 

 

838

 

Total liabilities

 

 

42,109

 

 

 

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,

   54,082,275 shares issued and 28,001,671 shares outstanding at September 30, 2018

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

   2017

 

 

54

 

 

 

53

 

Treasury stock, 26,080,604 shares at September 30, 2018 and 25,855,182 shares at

   December 31, 2017, at cost

 

 

(174,780

)

 

 

(170,816

)

Additional paid-in capital

 

 

304,789

 

 

 

300,763

 

Accumulated other comprehensive (loss) income

 

 

(171

)

 

 

65

 

Retained earnings (accumulated deficit)

 

 

965

 

 

 

(9,318

)

Total stockholders’ equity

 

 

130,857

 

 

 

120,747

 

Total liabilities and stockholders’ equity

 

$

172,966

 

 

$

173,169

 

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TECHTARGET, INC.

Reconciliation of Net Income to Adjusted EBITDA

(in 000’s)

 

 

  

 

Three Months Ended

September 30,

 

 

Nine Months Ended

September 30,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

 

 

(Unaudited)

 

 

(Unaudited)

 

Net income

 

$

3,769

 

 

$

2,074

 

 

$

10,283

 

 

$

3,406

 

Interest expense, net

 

 

266

 

 

 

334

 

 

 

862

 

 

 

954

 

(Benefit from) provision for income taxes

 

 

(747

)

 

 

623

 

 

 

882

 

 

 

1,337

 

Depreciation and amortization

 

 

1,156

 

 

 

1,109

 

 

 

3,404

 

 

 

3,375

 

EBITDA

 

 

4,444

 

 

 

4,140

 

 

 

15,431

 

 

 

9,072

 

Stock-based compensation expense

 

 

3,128

 

 

 

2,126

 

 

 

6,144

 

 

 

5,309

 

Other expense (income), net

 

 

96

 

 

 

(144

)

 

 

344

 

 

 

(507

)

Adjusted EBITDA

 

$

7,668

 

 

$

6,122

 

 

$

21,919

 

 

$

13,874

 

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

September 30,

 

 

Nine Months Ended

September 30,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

 

 

(Unaudited)

 

 

(Unaudited)

 

Net income

 

$

3,769

 

 

$

2,074

 

 

$

10,283

 

 

$

3,406

 

(Benefit from) provision for income taxes

 

 

(747

)

 

 

623

 

 

 

882

 

 

 

1,337

 

Net income before taxes

 

 

3,022

 

 

 

2,697

 

 

 

11,165

 

 

 

4,743

 

Amortization of intangible assets

 

 

34

 

 

 

44

 

 

 

90

 

 

 

126

 

Stock-based compensation expense

 

 

3,128

 

 

 

2,126

 

 

 

6,144

 

 

 

5,309

 

Foreign exchange (gain) loss and interest expense

 

 

420

 

 

 

217

 

 

 

1,345

 

 

 

536

 

Adjusted income tax provision (1)

 

 

(1,572

)

 

 

(1,846

)

 

 

(4,482

)

 

 

(3,951

)

Adjusted net income

 

$

5,032

 

 

$

3,238

 

 

$

14,262

 

 

$

6,763

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per diluted share

 

$

0.13

 

 

$

0.07

 

 

$

0.36

 

 

$

0.12

 

Weighted average diluted shares outstanding

 

 

28,764

 

 

 

28,320

 

 

 

28,711

 

 

 

28,275

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted net income per diluted share

 

$

0.17

 

 

$

0.11

 

 

$

0.50

 

 

$

0.24

 

Adjusted weighted average diluted shares outstanding (2)

 

 

28,764

 

 

 

28,320

 

 

 

28,711

 

 

 

28,275

 

 

 

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

 

 

 

 

 

 

 

 

 

 

9 of 10

 


TECHTARGET, INC.

Financial Guidance for the Three and Twelve Months Ended December 31, 2018

(in 000’s)

 

  

 

Three Months Ended

December 31, 2018

 

 

Twelve Months Ended

December 31, 2018

 

 

 

Range

 

 

Range

 

Revenues

 

$

31,000

 

 

$

32,000

 

 

$

120,500

 

 

$

121,500

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

 

7,300

 

 

 

8,000

 

 

 

29,200

 

 

 

29,900

 

Depreciation, amortization and stock-based compensation

 

 

3,400

 

 

 

3,400

 

 

 

12,900

 

 

 

12,900

 

Interest and other expense, net

 

 

500

 

 

 

500

 

 

 

1,400

 

 

 

1,400

 

Provision for income taxes

 

 

900

 

 

 

1,000

 

 

 

1,700

 

 

 

1,900

 

Net income

 

$

2,500

 

 

$

3,100

 

 

$

13,200

 

 

$

13,700

 

 

10 of 10

 

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