Toggle SGML Header (+)


Section 1: 8-K (8-K)

ttgt-8k_20190206.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 6, 2019

 

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 6, 2019, TechTarget, Inc. (the “Company”) disclosed its results for the quarter and twelve (12) months ended December 31, 2018 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 6, 2019.

 

 

 

 

 

 


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 6, 2019

 

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 6, 2019

 

Dear Fellow Shareholders:

We finished 2018 on a strong note, which sets up very well for 2019, 2020, and beyond.

 

2018 revenue grew 12% to $121.3 million

 

2018 Adjusted EBITDA grew 38% to $30.3 million

 

Adjusted EBITDA margin was 25% in 2018 versus 20% in 2017

 

Incremental EBITDA margin was 65% in 2018

 

Net income per share grew 88% in 2018

 

Cash flow from operations was $23.9 million, representing 79% of adjusted EBITDA

 

Long term contracts represented 33% of revenue in Q418 up from 24% in Q417

While we are very pleased with our financial results in 2018, we are even more optimistic about the progress we are making with our product offerings as we continue to build our leadership position against a very large opportunity. Our customers continue to increase their commitment to becoming data-driven sales and marketing organizations. This is creating opportunities to strengthen our partnerships with our customers by further embedding our purchase intent data into their systems to make their sales and marketing efforts more intelligent, competitive and efficient.

Two examples of our deeper integration were included in the Priority Engine enhancements we introduced in November. The first is called Inbound Converter. Customers are using our purchase intent data in combination with their website traffic data to gain additional insights on visits to their websites, identifying the accounts to prioritize and the individuals that are actively researching solutions.  Another example is our new ROI Dashboard, which enables our Priority Engine Salesforce integration to combine customers’ sales pipeline information with our purchase intent data to help customers measure, visualize and optimize results. Many of our customers are taking advantage of these new features, and the key point is that the level of integration we now have with their workflow is growing by leaps and bounds. We still feel that we are in the early innings of our customers’ journey to becoming fully data-driven with regard to their sales and marketing efforts, and we are taking an increasingly direct role in helping them get there.

This is a very different business from our traditional business of selling quarterly marketing campaigns. Over the past two years we have learned a lot as an organization as we have made this transition to selling data subscriptions.  One key learning point has been that the servicing of our customers differs dramatically based on their size – which is generally a proxy for the level of resources associated with their marketing and sales organizations. Our larger customers, who have sophisticated systems and ample resources, generally are able to take our purchase intent data and make effective use of it to run awareness campaigns and fuel sales outreach.   Their success is reflected in our revenue renewal rates for Priority Engine, which are well over 100% for our larger, enterprise accounts.  

Our smaller customers, on the other hand, have proven to need more assistance in making use of our purchase intent data effectively and have revenue renewal rates that are less than 100%. We have consolidated our post-sales efforts into a unified Customer Success Team to help service all of our accounts more effectively, and have organized a specific effort against our smaller accounts.  We believe over time that this will increase our revenue renewal rates with this customer segment.

1 of 10

 


Overall, Priority Engine continues to perform very well. Our revenues for the product were up 29% in Q418 vs. Q417 and bookings remain strong. We added 32 new Priority Engine customers in the quarter. Strong sales of Priority Engine helped propel long term contract revenue to 33% of revenue in Q418 versus 24% of revenue in Q417. We instituted approximately a 10% price increase for Priority Engine in January 2019 on top of the 20% price increase that we instituted in January of 2018.

Turning to the IT environment, despite the current uncertainty in the economy, we feel that the right things are in place for positive IT spending over the next few years. There are several IT catalysts such as AI, security, data analytics, and cloud migrations, to name a few. This is coupled with the financial catalyst of the ability to expense 100% of capital improvements in the first year that was included in the 2018 tax reform bill. Importantly, the accelerated depreciation expires after 2022, giving companies a short window to invest in technology with favorable tax treatment.

We think we are very well positioned to have another banner year in 2019. We have a strong, defensible leadership position in the fast-growing market for purchase intent data. Our recurring revenues continue to increase as a share of overall revenues and our margins continue to expand. At the midpoint of our guidance range, we are forecasting double-digit revenue growth and 20% Adjusted EBITDA growth. Some of the issues we dealt with in Q4 regarding economic uncertainty and GDPR with a handful of large accounts are carrying into 2019 so we expect to see more robust growth in the second half of the year.

Q4 2018 Results (Unaudited, in 000’s)

  

 

Three Months Ended

 

 

 

 

 

 

Years Ended

 

 

 

 

 

 

 

December 31,

 

 

 

 

 

 

December 31,

 

 

 

 

 

 

 

2018

 

 

2017

 

 

% change

 

 

2018

 

 

2017

 

 

% change

 

Total Online

 

$

31,820

 

 

$

30,303

 

 

 

5

%

 

$

121,333

 

 

$

108,388

 

 

 

12

%

Total Online by Geographic Area:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America IT Deal Alert

 

 

11,025

 

 

 

10,059

 

 

 

10

%

 

 

43,342

 

 

 

36,622

 

 

 

18

%

North America Core Online

 

 

10,651

 

 

 

10,143

 

 

 

5

%

 

 

39,318

 

 

 

36,586

 

 

 

7

%

Total North America Online

 

 

21,676

 

 

 

20,202

 

 

 

7

%

 

 

82,660

 

 

 

73,208

 

 

 

13

%

International:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

International IT Deal Alert

 

 

4,398

 

 

 

4,037

 

 

 

9

%

 

 

15,707

 

 

 

12,907

 

 

 

22

%

International Core Online

 

 

5,746

 

 

 

6,064

 

 

 

(5

)%

 

 

22,966

 

 

 

22,273

 

 

 

3

%

Total International Online

 

 

10,144

 

 

 

10,101

 

 

 

0

%

 

 

38,673

 

 

 

35,180

 

 

 

10

%

Total Online by Product:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

IT Deal Alert:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America IT Deal Alert

 

 

11,025

 

 

 

10,059

 

 

 

10

%

 

 

43,342

 

 

 

36,622

 

 

 

18

%

International IT Deal Alert

 

 

4,398

 

 

 

4,037

 

 

 

9

%

 

 

15,707

 

 

 

12,907

 

 

 

22

%

Total IT Deal Alert

 

 

15,423

 

 

 

14,096

 

 

 

9

%

 

 

59,049

 

 

 

49,529

 

 

 

19

%

Core Online:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America Core Online

 

 

10,651

 

 

 

10,143

 

 

 

5

%

 

 

39,318

 

 

 

36,586

 

 

 

7

%

International Core Online

 

 

5,746

 

 

 

6,064

 

 

 

(5

)%

 

 

22,966

 

 

 

22,273

 

 

 

3

%

Total Core Online

 

 

16,397

 

 

 

16,207

 

 

 

1

%

 

 

62,284

 

 

 

58,859

 

 

 

6

%

Total Events

 

$

 

 

$

 

 

 

0

%

 

$

 

 

$

168

 

 

 

(100

)%

Total Revenues

 

$

31,820

 

 

$

30,303

 

 

 

5

%

 

$

121,333

 

 

$

108,556

 

 

 

12

%

Adjusted EBITDA*

 

$

8,363

 

 

$

8,084

 

 

 

3

%

 

$

30,282

 

 

$

21,958

 

 

 

38

%

 

*

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 Q4 2018 and Q4 2017 was 76%.

2 of 10

 


Balance Sheet

The Company’s balance sheet remains very strong.  As of December 31, 2018, we had $35.2 million in cash and investments and $25.0 million of outstanding term loan debt.

Common Stock Repurchase Plan

In the quarter, we repurchased 243,425 shares of common stock at an average price of $12.82 for an aggregate purchase price of $3.1 million. There is approximately $22.0 million available under the $25 million repurchase program that we announced in November 2018.  

Traffic Update

Unpaid traffic represented 96% of overall traffic in the quarter. Unpaid traffic was almost flat compared to Q4 2017, and remains at a level that is more than sufficient to support our revenue.

2019 and Q1 Guidance

For Q1 2019, we expect revenues to be between $29 million and $30 million. We expect adjusted EBITDA to be between $6.2 million and $7.0 million.

For 2019, we expect revenues to be between $133 and $134 million. We expect adjusted EBITDA to be between $36 and $37 million.

Summary

We feel that 2018 was a breakthrough year for the company and we are optimistic that we can use that momentum to carry us

to even better results in 2019 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 6, 2019). 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).

 

3 of 10

 


For those investors unable to participate in the live conference call, a replay of the conference call will be available via telephone beginning February 6, 2019 one (1) hour after the conference call through March 6, 2019 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 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

4 of 10

 


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.

5 of 10

 


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,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

 

 

(Unaudited)

 

 

(Unaudited)

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Online

 

$

31,820

 

 

$

30,303

 

 

$

121,333

 

 

$

108,388

 

Events

 

 

 

 

 

-

 

 

 

-

 

 

 

168

 

Total revenues

 

 

31,820

 

 

 

30,303

 

 

 

121,333

 

 

 

108,556

 

Cost of revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Online(1)

 

 

7,665

 

 

 

7,364

 

 

 

28,959

 

 

 

28,295

 

Events

 

 

 

 

 

-

 

 

 

-

 

 

 

41

 

Total cost of revenues

 

 

7,665

 

 

 

7,364

 

 

 

28,959

 

 

 

28,336

 

Gross profit

 

 

24,155

 

 

 

22,939

 

 

 

92,374

 

 

 

80,220

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling and marketing(1)

 

 

12,525

 

 

 

11,741

 

 

 

47,779

 

 

 

44,747

 

Product development(1)

 

 

2,342

 

 

 

2,047

 

 

 

8,869

 

 

 

8,215

 

General and administrative(1)

 

 

3,894

 

 

 

2,670

 

 

 

14,557

 

 

 

12,212

 

Depreciation and amortization

 

 

1,144

 

 

 

1,261

 

 

 

4,548

 

 

 

4,636

 

Total operating expenses

 

 

19,905

 

 

 

17,719

 

 

 

75,753

 

 

 

69,810

 

Operating income

 

 

4,250

 

 

 

5,220

 

 

 

16,621

 

 

 

10,410

 

Interest and other expense, net

 

 

(572

)

 

 

(246

)

 

 

(1,778

)

 

 

(693

)

Income before provision for income taxes

 

 

3,678

 

 

 

4,974

 

 

 

14,843

 

 

 

9,717

 

Provision for income taxes

 

 

1,006

 

 

 

1,577

 

 

 

1,888

 

 

 

2,914

 

Net income

 

$

2,672

 

 

$

3,397

 

 

$

12,955

 

 

$

6,803

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.10

 

 

$

0.12

 

 

$

0.47

 

 

$

0.25

 

Diluted

 

$

0.09

 

 

$

0.12

 

 

$

0.45

 

 

$

0.24

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

28,071

 

 

 

27,636

 

 

 

27,738

 

 

 

27,550

 

Diluted

 

 

28,543

 

 

 

28,408

 

 

 

28,653

 

 

 

28,271

 

 

(1)

Amounts include stock-based compensation expense as follows:

 

Cost of online revenues

 

$

45

 

 

$

6

 

 

$

159

 

 

$

43

 

Selling and marketing

 

 

1,636

 

 

 

959

 

 

 

4,899

 

 

 

4,120

 

Product development

 

 

87

 

 

 

19

 

 

 

200

 

 

 

112

 

General and administrative

 

 

1,201

 

 

 

619

 

 

 

3,855

 

 

 

2,637

 

6 of 10

 


TechTarget, Inc.

Consolidated Balance Sheets

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

  

  

 

December 31,

 

 

 

2018

 

 

2017

 

 

 

(Unaudited)

 

Assets

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

34,672

 

 

$

25,966

 

Short-term investments

 

 

500

 

 

 

7,650

 

Accounts receivable, net of allowance for doubtful accounts of $2,099 and $1,783 as

   of December 31, 2018 and 2017, respectively

 

 

30,042

 

 

 

29,601

 

Prepaid taxes

 

 

1,834

 

 

 

1,303

 

Prepaid expenses and other current assets

 

 

3,070

 

 

 

3,088

 

Total current assets

 

 

70,118

 

 

 

67,608

 

Property and equipment, net

 

 

10,901

 

 

 

9,786

 

Long-term investments

 

 

 

 

 

496

 

Goodwill

 

 

93,687

 

 

 

93,793

 

Intangible assets, net

 

 

849

 

 

 

506

 

Deferred tax assets

 

 

55

 

 

 

98

 

Other assets

 

 

853

 

 

 

882

 

Total assets

 

$

176,463

 

 

$

173,169

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

1,871

 

 

$

1,542

 

Current portion of term loan

 

 

1,241

 

 

 

9,888

 

Accrued expenses and other current liabilities

 

 

3,260

 

 

 

3,343

 

Accrued compensation expenses

 

 

2,432

 

 

 

1,397

 

Income taxes payable

 

 

176

 

 

 

218

 

Deferred revenue

 

 

5,573

 

 

 

7,598

 

Total current liabilities

 

 

14,553

 

 

 

23,986

 

Long-term liabilities:

 

 

 

 

 

 

 

 

Long-term portion of term loan

 

 

23,714

 

 

 

22,339

 

Deferred rent

 

 

4,949

 

 

 

5,259

 

Deferred tax liabilities

 

 

662

 

 

 

838

 

Total liabilities

 

 

43,878

 

 

 

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;

   54,117,325 shares issued and 27,791,045 shares outstanding at December 31, 2018;

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

 

 

54

 

 

 

53

 

Treasury stock, 26,326,280 and  25,855,182 shares at December 31, 2018 and 2017,

    respectively, at cost

 

 

(177,905

)

 

 

(170,816

)

Additional paid-in capital

 

 

307,014

 

 

 

300,763

 

Accumulated other comprehensive income (loss)

 

 

(215

)

 

 

65

 

Retained earnings (accumulated deficit)

 

 

3,637

 

 

 

(9,318

)

Total stockholders’ equity

 

 

132,585

 

 

 

120,747

 

Total liabilities and stockholders’ equity

 

$

176,463

 

 

$

173,169

 

 


7 of 10

 


TechTarget, Inc.

Reconciliation of Net Income to Adjusted EBITDA

(in 000’s)

 

 

 

Three Months Ended

December 31,

 

 

Years Ended

December 31,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

Net income

 

$

2,672

 

 

$

3,397

 

 

$

12,955

 

 

$

6,803

 

Interest and other expense, net

 

 

572

 

 

 

246

 

 

 

1,778

 

 

 

693

 

Provision for income taxes

 

 

1,006

 

 

 

1,577

 

 

 

1,888

 

 

 

2,914

 

Depreciation and amortization

 

 

1,144

 

 

 

1,261

 

 

 

4,548

 

 

 

4,636

 

EBITDA

 

 

5,394

 

 

 

6,481

 

 

 

21,169

 

 

 

15,046

 

Stock-based compensation expense

 

 

2,969

 

 

 

1,603

 

 

 

9,113

 

 

 

6,912

 

Adjusted EBITDA

 

$

8,363

 

 

$

8,084

 

 

$

30,282

 

 

$

21,958

 

 

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,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

Net income

 

$

2,672

 

 

$

3,397

 

 

$

12,955

 

 

$

6,803

 

Provision for income taxes

 

 

1,006

 

 

 

1,577

 

 

 

1,888

 

 

 

2,914

 

Net income before taxes

 

 

3,678

 

 

 

4,974

 

 

 

14,843

 

 

 

9,717

 

Amortization of intangible assets

 

 

37

 

 

 

43

 

 

 

128

 

 

 

169

 

Stock-based compensation expense

 

 

2,969

 

 

 

1,603

 

 

 

9,113

 

 

 

6,912

 

Foreign exchange (gain) loss and interest on term loan

 

 

632

 

 

 

276

 

 

 

1,978

 

 

 

812

 

Adjusted income tax provision (1)

 

 

(2,154

)

 

 

(1,307

)

 

 

(6,636

)

 

 

(5,258

)

Adjusted net income

 

$

5,162

 

 

$

5,589

 

 

$

19,426

 

 

$

12,352

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per diluted share

 

$

0.09

 

 

$

0.12

 

 

$

0.45

 

 

$

0.24

 

Weighted average diluted shares outstanding

 

 

28,543

 

 

 

28,408

 

 

 

28,653

 

 

 

28,271

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted net income per diluted share

 

$

0.18

 

 

$

0.20

 

 

$

0.68

 

 

$

0.44

 

Adjusted weighted average diluted shares outstanding

 

 

28,543

 

 

 

28,408

 

 

 

28,653

 

 

 

28,271

 

 

 

(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, 2019

 

 

 

Range

 

Total Revenues

 

$

29,000

 

 

$

30,000

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

$

6,200

 

 

$

7,000

 

Depreciation, amortization and stock-based compensation

 

$

3,400

 

 

$

3,400

 

Interest and other expense, net

 

$

200

 

 

$

200

 

Provision for income taxes

 

$

800

 

 

$

900

 

Net income

 

$

1,800

 

 

$

2,500

 

 

 

 

10 of 10

 

(Back To Top)