Exhibit 99.2
Exhibit 99.2
TECHTARGET, INC. (TTGT)
THIRD QUARTER 2011
EARNINGS ANNOUNCEMENT
PREPARED REMARKS
TechTarget is posting to the Investor Information section of its corporate website a copy of
these Prepared Remarks in combination with its financial results press release. These Prepared
Remarks are offered to provide shareholders and analysts with additional time and detail for
analyzing our financial results in advance of our scheduled conference call. The conference call
will begin today, November 9, 2011, at 5:00 pm (ET) and will include only brief comments followed
by questions and answers. These Prepared Remarks will not be read on the call. To access the live
broadcast of the question and answer session, please visit the Investor Information section of
TechTargets website at http://investor.techtarget.com/.
Greg Strakosch, CEO
Despite the impact of a weakening macro-economic environment, overall revenue grew 18% in the
quarter, with online revenue increasing by 15% and event revenue up by 32% in the quarter. We
continued to demonstrate strong growth in profitability, with adjusted EBITDA increasing by 39% in
the quarter. We are very pleased with these financial results, especially since we observed
increased cautious behavior from our customers in light of the market turmoil during the quarter.
We are incorporating this macro-economic softness into our Q4 forecast of 10% online revenue growth
at the midpoint. Our Q4 EBITDA margin forecast is 30% at the midpoint.
We continue to take advantage of the weak economy to gain market share. The investments that
we are making in our Activity Intelligence platform, international expansion and more robust
branding offerings continue to pay off, as evidenced by our results. We continue to receive very
positive feedback from our customers regarding our new Activity Intelligence dashboard as they
adopt it. Our international business continues to grow nicely. EMEA revenues were up over 50% in
the quarter and Asia Pacific revenues more than doubled in the quarter. We have plans to increase
our direct operations in Asia Pacific early in 2012. Our investments in engagement branding
produced more than 70% growth in the quarter, and we are seeing good momentum for this offering
with some recent signature wins that we believe bodes well for this product offering in 2012.
Our balance sheet remains strong. We have $56.3 million in cash, cash equivalents and
investments and no debt.
Jeff Wakely, CFO
Many of our prepared remarks contain a number of percentage changes as we discuss our
financial performance. Unless otherwise indicated, each percentage change represents the
year-over-year percentage change when comparing Q3 2011 to Q3 2010. In addition, these prepared
remarks include a discussion of certain non-GAAP financial measures which are provided as a
complement to the results provided in accordance with GAAP. We provide these non-GAAP financial
measures as they best represent those measures used by management when reviewing our companys
performance. We define adjusted EBITDA as earnings before interest, other income and expense,
income taxes, depreciation, and amortization, as further adjusted to exclude stock-based
compensation and restructuring charges. We define adjusted EBITDA margin as adjusted EBITDA as a
percentage of total revenues. We define adjusted net income as net income adjusted for
amortization, stock-based compensation and restructuring charges, as further adjusted for the
related income tax impact of such adjustments. We define adjusted net income per share as
adjusted net income as defined above divided by weighted average diluted shares outstanding. Note
that in 2011 we changed the manner in which we allocate our real estate facilities costs to align
with actual departmental headcount. Previously these costs were all included as a part of general
and administrative expenses. We have conformed the 2010 numbers below to be comparative with the
2011 methodology.
Revenues
Third quarter revenues are as follows:
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Three Months Ended September 30, |
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$ Change |
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% Change |
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2011 vs. |
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2011 vs. |
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(In $000s) |
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2011 |
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2010 |
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2010 |
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2010 |
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Revenues: |
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Online |
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$ |
21,763 |
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$ |
18,878 |
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$ |
2,885 |
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15 |
% |
Events |
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4,129 |
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3,123 |
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1,006 |
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32 |
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Total revenues |
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$ |
25,892 |
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$ |
22,001 |
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$ |
3,891 |
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18 |
% |
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The 32% increase in events revenue was due to the timing of a major multi-day conference held
in the third quarter of 2011 that was held in the second quarter of 2010.
Gross Profit
Third quarter gross profit margin percentages are as follows:
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Three Months Ended September 30, |
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% Change |
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2011 vs. |
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2011 |
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2010 |
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2010 |
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Online gross profit margin |
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75 |
% |
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74 |
% |
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1 |
% |
Events gross profit margin |
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64 |
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63 |
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1 |
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Total gross profit margin |
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73 |
% |
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72 |
% |
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1 |
% |
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The one point increase in overall gross profit margin was primarily attributable to additional
leverage being produced from the 18% overall increase in revenue.
Operating Expenses
Third quarter operating expenses, excluding depreciation and amortization charges, are as follows:
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Three Months Ended September 30, |
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$ Change |
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% Change |
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2011 vs. |
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2011 vs. |
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(In $000s) |
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2011 |
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2010 |
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2010 |
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2010 |
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Operating expenses: |
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Selling and marketing |
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$ |
10,182 |
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$ |
8,984 |
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$ |
1,198 |
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13 |
% |
Product development |
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1,874 |
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2,087 |
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(213 |
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(10 |
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General and administrative |
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3,105 |
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3,567 |
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(462 |
) |
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(13 |
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Total operating expenses |
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$ |
15,161 |
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$ |
14,638 |
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$ |
523 |
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4 |
% |
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Q3 2011 GAAP total operating expenses, excluding depreciation and amortization charges,
increased $0.5 million to $15.2 million compared to $14.6 million for Q3 2010. The portion of
stock-based compensation expense included in GAAP total operating expenses was $1.6 million and
$2.6 million for Q3 2011 and 2010, respectively. Q3 2011 GAAP operating expenses by expense
category as compared to Q3 2010 operating expenses after eliminating the effect of stock-based
compensation are as follows: selling and marketing expenses increased to $9.0 million from $7.3
million, product development expenses decreased to $1.8 million from $2.0 million and general and
administrative expenses decreased slightly to $2.7 million from $2.8 million.
Net Income and Net Income Per Share
Third quarter net income and net income per diluted share are as follows:
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Three Months Ended September 30, |
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% Change |
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2011 vs. |
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(In $000s, except per share amounts) |
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2011 |
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2010 |
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2010 |
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Net income |
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$ |
963 |
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$ |
(612 |
) |
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257 |
% |
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Net income per diluted share |
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$ |
0.02 |
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$ |
(0.01 |
) |
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300 |
% |
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Adjusted EBITDA and Adjusted EBITDA Margin
Third quarter adjusted EBITDA and adjusted EBITDA margin are as follows:
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Three Months Ended September 30, |
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Adj. |
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Adj. |
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% Change |
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EBITDA |
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EBITDA |
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2011 vs. |
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(In $000s) |
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2011 |
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Margin |
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2010 |
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Margin |
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2010 |
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Adjusted EBITDA |
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$ |
5,404 |
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21 |
% |
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$ |
3,875 |
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18 |
% |
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39 |
% |
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Adjusted Net Income and Adjusted Net Income Per Share
Third quarter adjusted net income and adjusted net income per share are as follows:
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Three Months Ended September 30, |
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% Change |
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2011 vs. |
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(In $000s, except per share amounts) |
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2011 |
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2010 |
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2010 |
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Adjusted net income |
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$ |
2,598 |
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$ |
2,094 |
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24 |
% |
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Adjusted net income per share |
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$ |
0.06 |
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$ |
0.05 |
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20 |
% |
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Adjusted net income per share is calculated by adding back to net income the effect of
amortization and stock-based compensation and then tax effecting these adjustments at an effective
annual tax rate of 43%.
Balance Sheet Highlights
Our balance sheet and financial position remain strong. As of September 30, 2011, our cash,
cash equivalents and investments totaled $56.3 million, which is up $1.9 million from our $54.4
million balance at June 30, 2011, and we have no outstanding bank debt. Working capital at
September 30, 2011 is $60.4 million.
Accounts receivable, net of allowance, decreased $1.9 million from June 30, 2011 to $27.1
million at September 30, 2011. Days sales outstanding at September 30, 2011 is 96 days, down from
99 days at September 30, 2010.
Don Hawk, President
We were pleased with the solid results we posted in the business for Q3. Our outlook on Q4,
while still projecting for a record high point on overall and online revenue, is tempered by a more
cautious spending environment from our customers than we would have foreseen earlier in the year.
We believe that the overall operating environment in the enterprise IT market took a more uncertain
turn in the second half of 2011. Its worth reviewing what the impact of economic uncertainty is
on TechTargets current business and how our long term growth initiatives are designed to
mitigate that impact and ultimately outweigh it. We continue to be encouraged by the indications
of long-term sustainability and increasing traction from our biggest growth drivers Activity
Intelligence, international expansion, and our expanded participation in branding budgets.
Today, approximately two-thirds of TechTargets online revenue is related to lead generation.
Our customers spend lead generation dollars with us to generate qualified sales leads that can be
followed up on by their internal sales forces. The quality of our customers follow up, and their
ability to measure how leads ultimately contribute to sales, are big areas of long term opportunity
for TechTarget and are the motivation behind our Activity Intelligence emphasis. But today, in the
absence of good information about the activity context of their leads, many of our mid-sized and
smaller customers tend to manage their quarter-to-quarter lead generation investment with us based
upon their anticipated close rate against all of the leads that they purchase. Put simply, if
their sales environment is getting more uncertain, and if they anticipate longer sales cycles, they
have less impetus to increase their lead generation investment.
You can see some of this play out in the customer segment patterns in our Q3 results. Our
strongest year over year online spending increase was from the top dozen IT vendors in the market,
who grew at approximately 20%. Were encouraged by this trend, as weve focused a lot of sales and
product emphasis on growing our business at the largest accounts, who tend to have the most runway
with regard to their continued shift from offline to online marketing. But as compared to Q2,
where we saw strong growth in all segments, in Q3 we saw less year-over-year growth in the
mid-sized customers (our next 100 largest online spenders, excluding the top 12 vendors), and in
our smaller customers. Weve seen this dynamic previously. When there are indications of
degradation in the macro-economic environment, we tend to see an immediate impact on the spending
behavior of our mid-sized and smaller accounts.
Thats why our key long term growth initiatives are so important they all ultimately
provide additional levels of protection against short-term macro fluctuations. Our Activity
Intelligence initiative improves the ability of our lead generation customers to follow up on their
leads effectively, ultimately improving their close rates, and providing a stronger rationale to
grow spending levels even against the macro-economic tides. Our international expansion, while not
entirely immune to macro-economic trends, continues to double on a year over year basis, taking
advantage of a relatively low baseline and enormous runway for online marketing spend focused
outside of the US. And our emphasis on our branding offerings is getting us access to brand new
budgets. Ill provide a brief update on each of these fronts, and explain why were so excited
about our progress in these areas.
When we last discussed Activity Intelligence, we had just announced the new Activity
Intelligence dashboards, which you may recall provide our customers inside sales forces with
actionable intelligence about every prospect, allowing them to quickly understand that prospects
user activity and enabling more informed and productive follow-up conversations. Since then, weve
released the platform and have dozens of customers using it either in beta or full roll-out mode,
and have been working with the remainder of our lead gen customers to facilitate their adoption of
this platform. Feedback continues to be overwhelmingly positive, and we expect the majority of our
lead generation customers to be making use of the platform by early next year. You may recall that
our initial release of these features is built into our base lead generation offering the
revenue impact will come as our customers make use of the intelligence, improve their close rates,
and are able to see the clear differentiation between leads from TechTarget and other sources with
regard to their level of engagement.
Our international expansion efforts continue to serve as a material growth driver for us, even
in an uncertain macro-economic environment. Just as was the case with the core US TechTarget
business during the downturn of the early 2000s, the base value proposition of highly efficient
targeting of IT professionals in specific technology markets is proving to have a lot of appeal in
a difficult macro-economic environment. As evidence that our international expansion has some
macro-resistant dynamics, approximately two-thirds of our geo-targeted revenue is coming out of
Europe, and our year-over-year growth rate in that region exceeds 50%. Were also encouraged about
our go-forward prospects there for 2012 and beyond, as we begin to see a more robust revenue ramp
from our acquisition of Computer Weekly after completing the revamp of the web site and product
capabilities this month. European IT marketing budgets are certainly under strain, but our growth
at this point is based on increased account penetration and growth in program size both factors
on which we have plenty of runway. The same dynamic is at play in Asia, where were seeing a strong
contribution from our China operation. Weve been able to make the necessary investments to drive
revenue growth in these areas without sacrificing overall margin, and will look to continue to
increase our investment as we drive towards a full 25% or more of our online business coming from
outside of North America.
Finally, as we discuss long term growth drivers that provide some hedge against macro
uncertainty, its important to note the progress weve made with regard to our branding offerings.
Over the past year in particular, weve made investments in our custom media team and in a series
of new branding offerings which we refer to collectively as our TechTarget Engage portfolio. The
objective here is to work with our customers on high-touch, highly-contextually, aligned campaigns
in which the success metrics are based around the level of audience interaction with the content of
the ads. The offerings weve created share a common attribute in that we work with the advertisers
through our custom media team on program conception, content creation, and execution a very
different model than our standard run of site display advertising campaigns. This approach is
paying off. We saw over 70% growth in Q3 from these engagement-oriented offerings, which have a
value proposition much more strongly aligned with our core value of targeting, engagement, and
measurable metrics.
Heading into 2012, this new emphasis on our branding offerings is giving us access to areas of
the marketing budget that we havent previously been able to tap into in a material way. In Q4,
for example, weve signed large six-figure contracts that are entirely driven out of the corporate
marketing budget (i.e., not supporting lead generation objectives) at two of our largest customers.
These deals run into next year, and we have significant opportunities pipelined with other
accounts as well. Our investments here are helping us broaden the scope of services for which our
customers will consider us, and were in the early innings with regard to the revenue impact and
penetration of these new areas of budget.
In closing, we continue to be very bullish on our prospects. We believe we are investing in
the right areas to drive long term growth. Weve demonstrated the ability to continue to drive
strong margins even in a weak environment. And were excited about the potential implications of
Activity Intelligence, an opportunity that is still in its very early stages.
Financial Guidance
In the fourth quarter of 2011, the Company expects total revenues to be within the range of
$28.7 million to $30.1 million; online revenues within the range of $26 million to $27 million;
events revenues within the range of $2.7 million to $3.1 million and adjusted EBITDA to be within
the range of $8.5 million to $9.5 million.
Non-GAAP Financial Measures
These prepared remarks and the accompanying tables include a discussion of non-GAAP operating
expenses, adjusted EBITDA, adjusted EBITDA margin, 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). The term non-GAAP operating expenses refers to a financial measure that we
define as GAAP operating expenses excluding depreciation, amortization, stock-based compensation
and certain nonrecurring expenses separately identified. The term adjusted EBITDA refers to a
financial measure that we define as earnings before net interest, other income and expense, income
taxes, depreciation, and amortization, as further adjusted to exclude stock-based compensation and
restructuring charges. The term adjusted EBITDA margin refers to a financial measure which we
define as adjusted EBITDA as a percentage of total revenues. The term adjusted net income refers
to a financial measure which we define as net income adjusted for amortization, stock-based
compensation and restructuring charges, as further adjusted for the related income tax impact of
the adjustments. The term adjusted net income per share refers to a financial measure which we
define as 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 non-GAAP operating expenses, adjusted EBITDA, adjusted EBITDA margin, adjusted net
income and adjusted net income per share may not be comparable to the definitions as reported by
other companies. We believe non-GAAP operating expenses, adjusted EBITDA, adjusted EBITDA margin,
adjusted net income and adjusted net income per share are relevant and useful information because
it provides us and investors with additional measurements to compare the Companys operating
performance. These measures are part of our internal management reporting and planning process and
are primary measures used by our management 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. 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 matters included in these prepared remarks may be considered to be forward-looking
statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of
1934, as amended by the Private Securities Litigation Reform Act of 1995. Those statements include
statements regarding the intent, belief or current expectations of the Company and members of our
management team. All statements contained in these prepared remarks, other than statements of
historical fact, are forward-looking statements, including those regarding: guidance on our future
financial results and other projections or measures of our future performance; our expectations
concerning market opportunities and our ability to capitalize on them; and the amount and timing of
the benefits expected from acquisitions, from new products or services and from other potential
sources of additional revenue. Investors and prospective investors are cautioned that any such
forward-looking statements are not guarantees of future performance and involve risks and
uncertainties, and that actual results may differ materially from those contemplated by such
forward-looking statements. These statements speak only as of the date of these prepared remarks
and are based on our current plans and expectations, and they 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; relationships with customers,
strategic partners and our employees; difficulties in integrating acquired businesses; and changes
in economic or regulatory conditions or other trends affecting the Internet, Internet advertising
and information technology industries. These and other important risk factors are discussed or
referenced in our Annual Report on Form 10-K filed with the Securities and Exchange Commission,
under the heading Risk Factors and elsewhere, and any subsequent periodic or current reports
filed by us with the SEC. Except as required by applicable law or regulation, we do not undertake
any obligation to update our forward-looking statements to reflect future events or circumstances.
TECHTARGET, INC.
Consolidated Statements of Operations
(in $000s, except per share amounts)
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Three Months Ended |
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Nine Months Ended |
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|
September 30, |
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September 30, |
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2011 |
|
|
2010 |
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|
2011 |
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|
2010 |
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(Unaudited) |
|
Revenues: |
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|
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Online |
|
$ |
21,763 |
|
|
$ |
18,878 |
|
|
$ |
66,294 |
|
|
$ |
58,065 |
|
Events |
|
|
4,129 |
|
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|
3,123 |
|
|
|
10,266 |
|
|
|
10,052 |
|
|
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|
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Total revenues |
|
|
25,892 |
|
|
|
22,001 |
|
|
|
76,560 |
|
|
|
68,117 |
|
Cost of revenues: |
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Online(1) |
|
|
5,547 |
|
|
|
4,921 |
|
|
|
16,873 |
|
|
|
15,043 |
|
Events(1) |
|
|
1,488 |
|
|
|
1,149 |
|
|
|
3,607 |
|
|
|
3,459 |
|
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Total cost of revenues |
|
|
7,035 |
|
|
|
6,070 |
|
|
|
20,480 |
|
|
|
18,502 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
|
18,857 |
|
|
|
15,931 |
|
|
|
56,080 |
|
|
|
49,615 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling and marketing(1) |
|
|
10,182 |
|
|
|
8,984 |
|
|
|
28,997 |
|
|
|
27,815 |
|
Product development(1) |
|
|
1,874 |
|
|
|
2,087 |
|
|
|
5,690 |
|
|
|
6,623 |
|
General and administrative(1) |
|
|
3,105 |
|
|
|
3,567 |
|
|
|
10,362 |
|
|
|
11,671 |
|
Restructuring charge |
|
|
|
|
|
|
|
|
|
|
384 |
|
|
|
|
|
Depreciation |
|
|
692 |
|
|
|
592 |
|
|
|
2,001 |
|
|
|
1,759 |
|
Amortization of intangible assets |
|
|
955 |
|
|
|
1,126 |
|
|
|
3,030 |
|
|
|
3,401 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating expenses |
|
|
16,808 |
|
|
|
16,356 |
|
|
|
50,464 |
|
|
|
51,269 |
|
Operating income (loss) |
|
|
2,049 |
|
|
|
(425 |
) |
|
|
5,616 |
|
|
|
(1,654 |
) |
Interest income, net |
|
|
20 |
|
|
|
79 |
|
|
|
32 |
|
|
|
270 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before provision for income taxes |
|
|
2,069 |
|
|
|
(346 |
) |
|
|
5,648 |
|
|
|
(1,384 |
) |
Provision for income taxes |
|
|
1,106 |
|
|
|
266 |
|
|
|
2,942 |
|
|
|
1,122 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
$ |
963 |
|
|
$ |
(612 |
) |
|
$ |
2,706 |
|
|
$ |
(2,506 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.03 |
|
|
$ |
(0.01 |
) |
|
$ |
0.07 |
|
|
$ |
(0.06 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted |
|
$ |
0.02 |
|
|
$ |
(0.01 |
) |
|
$ |
0.07 |
|
|
$ |
(0.06 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
38,511 |
|
|
|
43,209 |
|
|
|
38,261 |
|
|
|
42,878 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted |
|
|
40,008 |
|
|
|
43,209 |
|
|
|
40,578 |
|
|
|
42,878 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Amounts include stock-based compensation expense as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of online revenues |
|
$ |
65 |
|
|
$ |
(38 |
) |
|
$ |
197 |
|
|
$ |
136 |
|
Cost of events revenues |
|
|
22 |
|
|
|
23 |
|
|
|
64 |
|
|
|
69 |
|
Selling and marketing |
|
|
1,149 |
|
|
|
1,708 |
|
|
|
3,389 |
|
|
|
5,172 |
|
Product development |
|
|
111 |
|
|
|
104 |
|
|
|
317 |
|
|
|
420 |
|
General and administrative |
|
|
361 |
|
|
|
785 |
|
|
|
1,687 |
|
|
|
3,369 |
|
TECHTARGET, INC.
Reconciliation of Net Income (Loss) to Adjusted EBITDA
(in $000s)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended |
|
|
For the Nine Months Ended |
|
|
|
September 30, |
|
|
September 30, |
|
|
|
2011 |
|
|
2010 |
|
|
2011 |
|
|
2010 |
|
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
$ |
963 |
|
|
$ |
(612 |
) |
|
$ |
2,706 |
|
|
$ |
(2,506 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income, net |
|
|
(20 |
) |
|
|
(79 |
) |
|
|
(32 |
) |
|
|
(270 |
) |
Provision for income taxes |
|
|
1,106 |
|
|
|
266 |
|
|
|
2,942 |
|
|
|
1,122 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring charge |
|
|
|
|
|
|
|
|
|
|
384 |
|
|
|
|
|
Depreciation |
|
|
692 |
|
|
|
592 |
|
|
|
2,001 |
|
|
|
1,759 |
|
Amortization of intangible assets |
|
|
955 |
|
|
|
1,126 |
|
|
|
3,030 |
|
|
|
3,401 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA |
|
|
3,696 |
|
|
|
1,293 |
|
|
|
11,031 |
|
|
|
3,506 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation expense |
|
|
1,708 |
|
|
|
2,582 |
|
|
|
5,654 |
|
|
|
9,166 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
|
$ |
5,404 |
|
|
$ |
3,875 |
|
|
$ |
16,685 |
|
|
$ |
12,672 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TECHTARGET, INC.
Reconciliation of Net Income (Loss) to Adjusted Net Income and Net Income (Loss) per Diluted Share to
Adjusted Net Income per Share
(in $000s, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended |
|
|
For the Nine Months Ended |
|
|
|
September 30, |
|
|
September 30, |
|
|
|
2011 |
|
|
2010 |
|
|
2011 |
|
|
2010 |
|
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
$ |
963 |
|
|
$ |
(612 |
) |
|
$ |
2,706 |
|
|
$ |
(2,506 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of intangible assets |
|
|
955 |
|
|
|
1,126 |
|
|
|
3,030 |
|
|
|
3,401 |
|
Restructuring charge |
|
|
|
|
|
|
|
|
|
|
384 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation expense |
|
|
1,708 |
|
|
|
2,582 |
|
|
|
5,654 |
|
|
|
9,166 |
|
Impact of income taxes |
|
|
(1,028 |
) |
|
|
(1,002 |
) |
|
|
(3,481 |
) |
|
|
(3,115 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income |
|
$ |
2,598 |
|
|
$ |
2,094 |
|
|
$ |
8,293 |
|
|
$ |
6,946 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per diluted share |
|
$ |
0.02 |
|
|
$ |
(0.01 |
) |
|
$ |
0.07 |
|
|
$ |
(0.06 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average diluted shares
outstanding |
|
|
40,008 |
|
|
|
43,209 |
|
|
|
40,578 |
|
|
|
42,878 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income per share |
|
$ |
0.06 |
|
|
$ |
0.05 |
|
|
$ |
0.20 |
|
|
$ |
0.15 |
|
Adjusted weighted average diluted
shares outstanding |
|
|
40,008 |
|
|
|
45,459 |
|
|
|
40,578 |
|
|
|
45,029 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Options, warrants and restricted
stock, treasury method included
in adjusted weighted average
diluted shares above |
|
|
|
|
|
|
2,250 |
|
|
|
|
|
|
|
2,151 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average diluted shares
outstanding |
|
|
40,008 |
|
|
|
43,209 |
|
|
|
40,578 |
|
|
|
42,878 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TECHTARGET, INC.
Financial Guidance for the Three Months Ended December 31, 2011
(in $000s)
|
|
|
|
|
|
|
|
|
|
|
For the Three Months |
|
|
|
Ended December 31, 2011 |
|
|
|
Range |
|
|
|
|
|
|
|
|
|
|
Revenues |
|
$ |
28,700 |
|
|
$ |
30,100 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
|
$ |
8,500 |
|
|
$ |
9,500 |
|
|
|
|
|
|
|
|
Depreciation, amortization and stock-based compensation |
|
$ |
3,325 |
|
|
$ |
3,325 |
|
Interest and other income, net |
|
$ |
20 |
|
|
$ |
20 |
|
Provision for income taxes |
|
$ |
2,650 |
|
|
$ |
3,160 |
|
|
|
|
|
|
|
|
Net income |
|
$ |
2,545 |
|
|
$ |
3,035 |
|
|
|
|
|
|
|
|