FOR IMMEDIATE RELEASE
Contacts:
| Investor Inquiries | Media Inquiries | |
| Eric Sockol | Marilou Barsam | |
| TechTarget | TechTarget | |
| 781-657-1515 | 781-657-1525 | |
esockol@techtarget.com | mbarsam@techtarget.com |
TechTarget Reports First and Second Quarter 2009 Financial Results
Needham, MA – August 17, 2009 – TechTarget, Inc. (NASDAQ: TTGT) today announced financial results for the first quarter ended March 31, 2009 and the second quarter ended June 30, 2009.
“We are pleased that the restatement project is now behind us. It is important to point out that the restatement involved a change only in the timing of our recognizing revenue. The validity of our revenue was never questioned, our total revenue did not change for any specific customer contract and the aggregate revenue shifted between the annual periods reviewed was approximately 1%. Turning to the company’s performance, the market seems to have stabilized and we are encouraged by our sequential revenue growth in Q2 and our strong cash flow” said Greg Strakosch, Chairman and CEO of TechTarget. “Our primary focus continues to be to take advantage of the downturn by investing and growing market share, while maintaining healthy profitability.”
Total revenues for the first quarter are as follows:
| Three Months Ended March 31, | ||||||||||||||||||||
| (In $000's, unaudited) | 2009 | % of Revenues | 2008 | % of Revenues | % Change 2009 vs. 2008 | |||||||||||||||
| Revenues: | ||||||||||||||||||||
| Online | $ | 16,282 | 88 | % | $ | 18,210 | 78 | % | (11 | )% | ||||||||||
| Events | 2,190 | 12 | % | 3,985 | 17 | % | (45 | )% | ||||||||||||
| - | - | 1,068 | 5 | % | (100 | )% | ||||||||||||||
| Total revenues | 18,472 | 100 | % | 23,263 | 100 | % | (21 | )% | ||||||||||||
Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization, as further adjusted for stock-based compensation) for the first quarter was $1.6 million compared to $3.0 million for the comparable prior year quarter. The first quarter of 2009 includes professional fees of $191,000 incurred in connection with the company’s activities related to the restatement of prior periods.
Total revenues for the second quarter are as follows:
| Three Months Ended June 30, | ||||||||||||||||||||
| (In $000's, unaudited) | 2009 | % of Revenues | 2008 | % of Revenues | % Change 2009 vs. 2008 | |||||||||||||||
| Revenues: | ||||||||||||||||||||
| Online | $ | 17,801 | 82 | % | $ | 19,071 | 69 | % | (7 | )% | ||||||||||
| Events | 3,936 | 18 | % | 7,262 | 26 | % | (46 | )% | ||||||||||||
| - | - | 1,282 | 5 | % | (100 | )% | ||||||||||||||
| Total revenues | 21,737 | 100 | % | 27,615 | 100 | % | (21 | )% | ||||||||||||
Adjusted EBITDA for the second quarter was $3.9 million compared to $5.8 million for the comparable prior year quarter. The second quarter of 2009 includes professional fees of $417,000 incurred in connection with the company’s activities related to the restatement of prior periods.
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Total Non-GAAP gross profit margin (gross profit margin less stock-based compensation) increased for both the first and second quarters to 69% and 72% respectively compared to 68% and 68%, respectively for the comparable prior year quarters. Online Non-GAAP gross profit margin was 71% for the first quarter of 2009 compared to 72% for the comparable prior year quarter. Online Non-GAAP gross profit margin for Q2 2009 increased to 74% compared to 71% for the comparable prior year quarter.
Net loss for the first quarter of 2009 was $2.3 million compared to a net loss of $436,000 for the comparable prior year quarter. Adjusted net income (net income adjusted for amortization and stock-based compensation, as further adjusted for the related income tax impact) for the first quarter was $594,000 compared to $1.6 million for the comparable prior year quarter. Net loss per basic share for the first quarter was ($0.06) compared to ($0.01) for the comparable prior year quarter. Adjusted net income per share (adjusted net income divided by adjusted weighted average diluted shares outstanding) for the first quarter of 2009 was $0.01 compared to $0.04 for the comparable prior year quarter. Net loss for the second quarter of 2009 was $543,000 compared to net income of $1.1 million for the comparable prior year quarter. Adjusted net income for the second quarter was $2.2 million compared to $3.3 million for the comparable prior year quarter. Net loss per basic share for the second quarter was ($0.01) compared to net income per basic share of $0.03 for the comparable prior year quarter. Adjusted net income per share for the second quarter of 2009 was $0.05 compared to $0.07 for the comparable prior year quarter.
As of June 30, 2009, TechTarget had $75.7 million of cash, cash equivalents and short and long-term investments. Outstanding bank debt was $1.5 million as of June 30, 2009. Our net cash, as defined as cash, cash equivalents and investments less bank debt increased by $7.6 million compared to December 31, 2008.
Recent Company Highlights
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Financial Guidance
In the third quarter of 2009, the Company expects total revenues to be within the range of $21.7 million to $22.7 million and adjusted EBITDA to be within the range of $4.0 million to $4.8 million.
Compliance Status
TechTarget today filed its Forms 10-Q for the quarters ending March 31 and June 30, 2009 and the Company believes that it is now compliant with all of its public filing requirements. With the filing of our Form 10-K and related amended quarterly filings in mid-July, we have completed our revenue restatement activities and do not expect to incur any additional restatement expenses related to those activities.
Conference Call and Webcast
TechTarget will discuss these financial results in a conference call at 5:00 pm (Eastern Time) today (August 17, 2009). Supplemental financial information and prepared remarks for the conference call will be posted to the investor relations section of our website simultaneously with this press release.
NOTE: The prepared remarks 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 (888) 679-8035 (US callers) or 617-213-4848 (International callers) ten minutes prior to the call and referencing participant pass code 80683943 for both domestic and international callers. Participants may pre-register for the call at: https://www.theconferencingservice.com/prereg/key.process?key=PQE4GJH4G Pre-registrants will be issued a pin number to use when dialing into the live call which will provide quick access to the conference by bypassing the operator upon connection. (Due to the length of the above URL, it may be necessary to copy and paste it into your Internet browser's URL address field. You may also need to remove an extra space in the URL if one exists.)
For those investors unable to participate in the live conference call, a replay of the conference call will be available via telephone beginning August 17, 2009 at 7:30 p.m. ET through August 31, 2009 at 11:59pm (ET). To listen to the replay, dial 888-286-8010 and use the pass code 63031470. International callers should dial 617-801-6888 and also use the pass code 63031470 to listen to the replay. The webcast replay will also be available for replay on http://investor.techtarget.com/ during the same period.
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Non-GAAP Financial Measures
This press release and the accompanying tables include a discussion of adjusted EBITDA, Non-GAAP gross profit, 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 "adjusted EBITDA" refers to a financial measure that we define as earnings before net interest, income taxes, depreciation, and amortization, as further adjusted for stock-based compensation. The term “Non-GAAP gross profit “ refers to a financial measure which we define as gross profit less stock-based compensation. The term “Non-GAAP Gross Profit Margin” refers to a financial measure which we define as gross profit less stock-based compensation 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 and stock-based compensation, as further adjusted for the related income tax impact for the specific 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 adjusted EBITDA, Non-GAAP gross profit, adjusted net income and adjusted net income per share may not be comparable to the definitions as reported by other companies. We believe adjusted EBITDA, Non-GAAP gross profit, 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 Company’s 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 the principal financial metric in their annual incentive compensation program. Adjusted EBITDA is also used for planning purposes and in presentations to our board of directors. Non-GAAP gross profit is useful to us and investors because it presents an additional measurement of our financial performance by excluding the impact of certain non-cash expenses not directly tied to the core operations of our business. 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 this press release 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 this press release, 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 this press release 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/A 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.
About TechTarget
TechTarget, a leading online technology media company, gives technology providers ROI-focused marketing programs to generate leads, shorten sales cycles, and grow revenues. With its network of more than 60 technology-specific websites and more than 7.5 million registered members, TechTarget is a primary Web destination for technology professionals researching products to purchase. The company is also a leading provider of independent, peer and vendor content, a leading distributor of white papers, and a leading producer of webcasts, podcasts, videos and virtual trade shows for the technology market. Its websites are complemented by numerous invitation-only events. TechTarget provides proven lead generation and branding programs to top advertisers including Cisco, Dell, EMC, HP, IBM, Intel, Microsoft, SAP and Symantec.
(C) 2009 TechTarget, Inc. All rights reserved. TechTarget and the TechTarget logo are registered trademarks, and SearchCloudComputing.com; SearchVirtualDesktop.com; SearchCompliance.com; SearchEnterpriseWAN.com; SearchMid-MarketSecurity.com and SearchCIO.in™, SearchDataCenter.in™, and SearchSecurity.in™ are trademarks, of TechTarget. All other trademarks are the property of their respective owners.
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TECHTARGET, INC.
Consolidated Balance Sheets(in $000's)
| March 31, 2009 | December 31, 2008 | |||||||
| Assets | (Unaudited) | |||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 22,948 | $ | 24,130 | ||||
| Short-term investments | 41,114 | 42,863 | ||||||
| Accounts receivable, net of allowance for doubtful accounts | 13,684 | 17,622 | ||||||
| Prepaid expenses and other current assets | 7,072 | 6,251 | ||||||
| Deferred tax assets | 2,836 | 2,959 | ||||||
| Total current assets | 87,654 | 93,825 | ||||||
| Property and equipment, net | 3,710 | 3,904 | ||||||
| Long-term investments | 6,619 | 2,575 | ||||||
| Goodwill | 88,958 | 88,958 | ||||||
| Intangible assets, net of accumulated amortization | 16,027 | 17,242 | ||||||
| Deferred tax assets | 3,545 | 3,369 | ||||||
| Other assets | 132 | 139 | ||||||
| Total assets | $ | 206,645 | $ | 210,012 | ||||
| Liabilities and Stockholders' Equity | ||||||||
| Current liabilities: | ||||||||
| Current portion of bank term loan payable | $ | 2,250 | $ | 3,000 | ||||
| Accounts payable | 2,232 | 3,404 | ||||||
| Accrued expenses and other current liabilities | 2,260 | 2,908 | ||||||
| Accrued compensation expenses | 788 | 702 | ||||||
| Deferred revenue | 7,910 | 8,749 | ||||||
| Total current liabilities | 15,440 | 18,763 | ||||||
| Long-term liabilities: | ||||||||
| Other liabilities | 244 | 312 | ||||||
| Total liabilities | 15,684 | 19,075 | ||||||
| Commitments | - | - | ||||||
| Stockholders' equity: | ||||||||
| Preferred stock | - | - | ||||||
| Common stock | 42 | 42 | ||||||
| Additional paid-in capital | 223,746 | 221,597 | ||||||
| Warrants | 2 | 2 | ||||||
| Accumulated other comprehensive loss | 106 | (77 | ) | |||||
| Accumulated deficit | (32,935 | ) | (30,627 | ) | ||||
| Total stockholders' equity | 190,961 | 190,937 | ||||||
| Total liabilities and stockholders' equity | $ | 206,645 | $ | 210,012 | ||||
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TECHTARGET, INC.
Consolidated Balance Sheets(in $000's)
| June 30, 2009 | December 31, 2008 | |||||||
| Assets | (Unaudited) | |||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 33,408 | $ | 24,130 | ||||
| Short-term investments | 36,075 | 42,863 | ||||||
| Accounts receivable, net of allowance for doubtful accounts | 14,116 | 17,622 | ||||||
| Prepaid expenses and other current assets | 5,319 | 6,251 | ||||||
| Deferred tax assets | 2,876 | 2,959 | ||||||
| Total current assets | 91,794 | 93,825 | ||||||
| Property and equipment, net | 3,449 | 3,904 | ||||||
| Long-term investments | 6,209 | 2,575 | ||||||
| Goodwill | 88,958 | 88,958 | ||||||
| Intangible assets, net of accumulated amortization | 14,846 | 17,242 | ||||||
| Deferred tax assets | 3,518 | 3,369 | ||||||
| Other assets | 88 | 139 | ||||||
| Total assets | $ | 208,862 | $ | 210,012 | ||||
| Liabilities and Stockholders' Equity | ||||||||
| Current liabilities: | ||||||||
| Current portion of bank term loan payable | $ | 1,500 | $ | 3,000 | ||||
| Accounts payable | 3,153 | 3,404 | ||||||
| Accrued expenses and other current liabilities | 1,843 | 2,908 | ||||||
| Accrued compensation expenses | 790 | 702 | ||||||
| Deferred revenue | 8,432 | 8,749 | ||||||
| Total current liabilities | 15,718 | 18,763 | ||||||
| Long-term liabilities: | ||||||||
| Other liabilities | 181 | 312 | ||||||
| Total liabilities | 15,899 | 19,075 | ||||||
| Commitments | - | - | ||||||
| Stockholders' equity: | ||||||||
| Preferred stock | - | - | ||||||
| Common stock | 42 | 42 | ||||||
| Additional paid-in capital | 226,330 | 221,597 | ||||||
| Warrants | 2 | 2 | ||||||
| Accumulated other comprehensive loss | 67 | (77 | ) | |||||
| Accumulated deficit | (33,478 | ) | (30,627 | ) | ||||
| Total stockholders' equity | 192,963 | 190,937 | ||||||
| Total liabilities and stockholders' equity | $ | 208,862 | $ | 210,012 | ||||
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TECHTARGET, INC.
Consolidated Statements of Operations(in $000's, except share and per share amounts)
| Three Months Ended March 31, | ||||||||
| 2009 | 2008 | |||||||
| (Unaudited) | ||||||||
| Revenues: | ||||||||
| Online | $ | 16,282 | $ | 18,210 | ||||
| Events | 2,190 | 3,985 | ||||||
| - | 1,068 | |||||||
| Total revenues | 18,472 | 23,263 | ||||||
| Cost of revenues: | ||||||||
Online (1) | 4,880 | 5,169 | ||||||
Events (1) | 1,081 | 1,827 | ||||||
| - | 546 | |||||||
| Total cost of revenues | 5,961 | 7,542 | ||||||
| Gross profit | 12,511 | 15,721 | ||||||
| Operating expenses: | ||||||||
Selling and marketing (1) | 7,516 | 8,444 | ||||||
Product development (1) | 2,081 | 2,762 | ||||||
General and administrative (1) | 3,919 | 3,795 | ||||||
| Depreciation | 536 | 724 | ||||||
| Amortization of intangible assets | 1,215 | 1,480 | ||||||
| Total operating expenses | 15,267 | 17,205 | ||||||
| Operating loss | (2,756 | ) | (1,484 | ) | ||||
| Interest income (expense), net | (110 | ) | 418 | |||||
| Loss before benefit from income taxes | (2,866 | ) | (1,066 | ) | ||||
| Benefit from income taxes | (558 | ) | (630 | ) | ||||
| Net loss | $ | (2,308 | ) | $ | (436 | ) | ||
| Net loss per common share: | ||||||||
| Basic and diluted | $ | (0.06 | ) | $ | (0.01 | ) | ||
| Weighted average common shares outstanding: | ||||||||
| Basic and diluted | 41,754,131 | 41,158,418 | ||||||
(1) Amounts include stock-based compensation expense as follows: | ||||||||
| Cost of online revenue | $ | 234 | $ | 98 | ||||
| Cost of events revenue | 17 | 22 | ||||||
| Selling and marketing | 1,328 | 1,392 | ||||||
| Product development | 131 | 140 | ||||||
| General and administrative | 893 | 601 | ||||||
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TECHTARGET, INC.
Consolidated Statements of Operations(in $000's, except share and per share amounts)
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2009 | 2008 | 2009 | 2008 | |||||||||||||
| (Unaudited) | ||||||||||||||||
| Revenues: | ||||||||||||||||
| Online | $ | 17,801 | $ | 19,071 | $ | 34,083 | $ | 37,281 | ||||||||
| Events | 3,936 | 7,262 | 6,126 | 11,247 | ||||||||||||
| - | 1,282 | - | 2,350 | |||||||||||||
| Total revenues | 21,737 | 27,615 | 40,209 | 50,878 | ||||||||||||
| Cost of revenues: | ||||||||||||||||
Online (1) | 4,776 | 5,481 | 9,656 | 10,650 | ||||||||||||
Events (1) | 1,455 | 2,923 | 2,536 | 4,750 | ||||||||||||
| - | 632 | - | 1,178 | |||||||||||||
| Total cost of revenues | 6,231 | 9,036 | 12,192 | 16,578 | ||||||||||||
| Gross profit | 15,506 | 18,579 | 28,017 | 34,300 | ||||||||||||
| Operating expenses: | ||||||||||||||||
Selling and marketing (1) | 8,023 | 8,885 | 15,539 | 17,329 | ||||||||||||
Product development (1) | 2,194 | 2,890 | 4,275 | 5,652 | ||||||||||||
General and administrative (1) | 4,064 | 3,459 | 7,983 | 7,254 | ||||||||||||
| Depreciation | 498 | 581 | 1,034 | 1,305 | ||||||||||||
| Amortization of intangible assets | 1,181 | 1,332 | 2,396 | 2,812 | ||||||||||||
| Total operating expenses | 15,960 | 17,147 | 31,227 | 34,352 | ||||||||||||
| Operating income (loss) | (454 | ) | 1,432 | (3,210 | ) | (52 | ) | |||||||||
| Interest income (expense), net | 174 | 268 | 64 | 686 | ||||||||||||
| Income (loss) before provision for (benefit from) income taxes | (280 | ) | 1,700 | (3,146 | ) | 634 | ||||||||||
| Provision for (benefit from) income taxes | 263 | 648 | (295 | ) | 18 | |||||||||||
| Net income (loss) | $ | (543 | ) | $ | 1,052 | $ | (2,851 | ) | $ | 616 | ||||||
| Net income (loss) per common share: | ||||||||||||||||
| Basic | $ | (0.01 | ) | $ | 0.03 | $ | (0.07 | ) | $ | 0.01 | ||||||
| Diluted | $ | (0.01 | ) | $ | 0.02 | $ | (0.07 | ) | $ | 0.01 | ||||||
| Weighted average common shares outstanding: | ||||||||||||||||
| Basic | 41,759,506 | 41,375,997 | 41,756,818 | 41,267,207 | ||||||||||||
| Diluted | 41,759,506 | 43,598,364 | 41,756,818 | 43,531,804 | ||||||||||||
(1) Amounts include stock-based compensation expense as follows: | ||||||||||||||||
| Cost of online revenue | $ | 78 | $ | 43 | $ | 312 | $ | 141 | ||||||||
| Cost of events revenue | 36 | 25 | 53 | 47 | ||||||||||||
| Selling and marketing | 1,478 | 1,347 | 2,806 | 2,739 | ||||||||||||
| Product development | 132 | 140 | 263 | 280 | ||||||||||||
| General and administrative | 917 | 858 | 1,810 | 1,459 | ||||||||||||
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TECHTARGET, INC.
Reconciliation of Net Income (Loss) to Adjusted EBITDA
(in $000's)
| Three Months Ended March 31, | ||||||||
| 2009 | 2008 | |||||||
| (Unaudited) | ||||||||
| Net loss | $ | (2,308 | ) | $ | (436 | ) | ||
| Interest income (expense), net | (110 | ) | 418 | |||||
| Benefit from income taxes | (558 | ) | (630 | ) | ||||
| Depreciation | 536 | 724 | ||||||
| Amortization of intangible assets | 1,215 | 1,480 | ||||||
| EBITDA | (1,005 | ) | 720 | |||||
| Stock-based compensation expense | 2,603 | 2,253 | ||||||
| Adjusted EBITDA | $ | 1,598 | $ | 2,973 | ||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2009 | 2008 | 2009 | 2008 | |||||||||||||
| (Unaudited) | ||||||||||||||||
| Net income (loss) | $ | (543 | ) | $ | 1,052 | $ | (2,851 | ) | $ | 616 | ||||||
| Interest income, net | 174 | 268 | 64 | 686 | ||||||||||||
| Provision for (benefit from) income taxes | 263 | 648 | (295 | ) | 18 | |||||||||||
| Depreciation | 498 | 581 | 1,034 | 1,305 | ||||||||||||
| Amortization of intangible assets | 1,181 | 1,332 | 2,396 | 2,812 | ||||||||||||
| EBITDA | 1,225 | 3,345 | 220 | 4,065 | ||||||||||||
| Stock-based compensation expense | 2,641 | 2,413 | 5,244 | 4,666 | ||||||||||||
| Adjusted EBITDA | $ | 3,866 | $ | 5,758 | $ | 5,464 | $ | 8,731 | ||||||||
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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 $000's, except share and per share amounts)
| Three Months Ended March 31, | ||||||||
| 2009 | 2008 | |||||||
| (Unaudited) | ||||||||
| Net loss | $ | (2,308 | ) | $ | (436 | ) | ||
| Amortization of intangible assets | 1,215 | 1,480 | ||||||
| Stock-based compensation expense | 2,603 | 2,253 | ||||||
| Impact of income taxes | 916 | 1,662 | ||||||
| Adjusted net income | $ | 594 | $ | 1,635 | ||||
| Net loss per diluted share | $ | (0.06 | ) | $ | (0.01 | ) | ||
| Weighted average diluted shares outstanding | 41,754,131 | 41,158,418 | ||||||
| Adjusted net income per share | $ | 0.01 | $ | 0.04 | ||||
| Adjusted weighted average diluted shares outstanding | 42,522,199 | 43,465,245 | ||||||
| Options, warrants and restricted stock, treasury method included in adjusted weighted average diluted shares above | 768,068 | 2,306,827 | ||||||
| Weighted average diluted shares outstanding | 41,754,131 | 41,158,418 | ||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2009 | 2008 | 2009 | 2008 | |||||||||||||
| (Unaudited) | ||||||||||||||||
| Net income (loss) | $ | (543 | ) | $ | 1,052 | $ | (2,851 | ) | $ | 616 | ||||||
| Amortization of intangible assets | 1,181 | 1,332 | 2,396 | 2,812 | ||||||||||||
| Stock-based compensation expense | 2,641 | 2,413 | 5,244 | 4,666 | ||||||||||||
| Impact of income taxes | 1,096 | 1,528 | 2,019 | 3,223 | ||||||||||||
| Adjusted net income | $ | 2,183 | $ | 3,269 | $ | 2,770 | $ | 4,871 | ||||||||
| Net income (loss) per diluted share | $ | (0.01 | ) | $ | 0.02 | $ | (0.07 | ) | $ | 0.01 | ||||||
| Weighted average diluted shares outstanding | 41,759,506 | 43,598,364 | 41,756,818 | 43,531,804 | ||||||||||||
| Adjusted net income per share | $ | 0.05 | $ | 0.07 | $ | 0.06 | $ | 0.11 | ||||||||
| Adjusted weighted average diluted shares outstanding | 42,763,961 | 43,598,364 | 42,643,080 | 43,531,804 | ||||||||||||
| Options, warrants and restricted stock, treasury method included in adjusted weighted average diluted shares above | 1,004,455 | - | 886,262 | - | ||||||||||||
| Weighted average diluted shares outstanding | 41,759,506 | 43,598,364 | 41,756,818 | 43,531,804 | ||||||||||||
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TECHTARGET, INC.
Reconciliation of Total Gross Profit Margin to Total Non-GAAP Gross Profit Margin
(in $000's)
| Three Months Ended March 31, | ||||||||||||||||
| 2009 | 2008 | |||||||||||||||
| (Unaudited) | ||||||||||||||||
| Total gross profit margin | $ | 12,511 | 68 | % | $ | 15,721 | 68 | % | ||||||||
| Stock-based compensation expense | 251 | 120 | ||||||||||||||
| Total non-GAAP gross profit margin | $ | 12,762 | 69 | % | $ | 15,841 | 68 | % | ||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||
| 2009 | 2008 | 2009 | 2008 | |||||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||||||||
| Total gross profit margin | $ | 15,506 | 71 | % | $ | 18,579 | 67 | % | $ | 28,017 | 70 | % | $ | 34,300 | 67 | % | ||||||||||||||||
| Stock-based compensation expense | 114 | 68 | 365 | 188 | ||||||||||||||||||||||||||||
| Total non-GAAP gross profit margin | $ | 15,620 | 72 | % | $ | 18,647 | 68 | % | $ | 28,382 | 71 | % | $ | 34,488 | 68 | % | ||||||||||||||||
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TECHTARGET, INC.
Reconciliation of Online Gross Profit Margin to Online Non-GAAP Gross Profit Margin
(in $000's)
| Three Months Ended March 31, | ||||||||||||||||
| 2009 | 2008 | |||||||||||||||
| (Unaudited) | ||||||||||||||||
| Online gross profit margin | $ | 11,402 | 70 | % | $ | 13,041 | 72 | % | ||||||||
| Stock-based compensation expense | 234 | 98 | ||||||||||||||
| Online non-GAAP gross profit margin | $ | 11,636 | 71 | % | $ | 13,139 | 72 | % | ||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||
| 2009 | 2008 | 2009 | 2008 | |||||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||||||||
| Online gross profit margin | $ | 13,025 | 73 | % | $ | 13,590 | 71 | % | $ | 24,427 | 72 | % | $ | 26,631 | 71 | % | ||||||||||||||||
| Stock-based compensation expense | 78 | 43 | 312 | 141 | ||||||||||||||||||||||||||||
| Online non-GAAP gross profit margin | $ | 13,103 | 74 | % | $ | 13,633 | 71 | % | $ | 24,739 | 73 | % | $ | 26,772 | 72 | % | ||||||||||||||||
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TECHTARGET, INC.
Financial Guidance for the Three Months Ended September 30, 2009
(in $000's)
| For the Three Months Ended September 30, 2009 | ||||||||
| Range | ||||||||
| Revenues | $ | 21,700 | $ | 22,700 | ||||
| Adjusted EBITDA | $ | 4,000 | $ | 4,800 | ||||
| Depreciation, amortization and stock-based compensation | 4,520 | 4,520 | ||||||
| Interest income, net | 190 | 190 | ||||||
| Provision for income taxes | 370 | 700 | ||||||
| Net income | $ | (700 | ) | $ | (230 | ) | ||
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