TTGT - Earnings call transcript Q4 2020

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Operator

Good afternoon. Welcome to TechTarget 2020 Fourth Quarter and Full Year Financial Results Conference Call. All participants will be in a listen-only mode. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Charles Rennick, General Counsel. ahead. go Please

Charles Rennick

and Kate, Thank good you, afternoon.

here Executive our me our Greg and Strakosch, Mike Cotoia, CFO. are Chairman; our Noreck, Joining Dan today Chief Officer; Executive

everyone Greg, the release. want over turning call to Before to our call remind on earnings the of I

X-K. of announced, it to on provide the advance the in an on you letter on in order previously our the shareholder call, with our Investor of business furnished we As website an section and update Relations have posted

introductory management statements Actual to today to periodic from in as call, materially not reconciliation the Greg's to are most answer assumptions letter. I'll filed are We your not measures forward-looking speak Please by our forecast. are based risk our factors available Following will be statements and considered not remarks, team non-GAAP that statements GAAP These may be date questions. to made reports financial our A accordance only with factual prepared obligation to measures financial shareholder no refer these the comparable accompanies performance. undertakes measures guarantees turn in results this Greg. differ With forward-looking on future statements. of Any SEC. may with the TechTarget the update over also call to our TechTarget refer GAAP. of of of that, may These the them. and our

Gregory Strakosch

strong on very year Great. the note. Thank you, We Charlie. a finished

Our acquisitions extremely completed convertible and into debt million momentum busy QX. We XXXX from a has closed two carried We XXXX. an $XXX had offering.

that owned We recognized grew XX% the BrightTALK. Revenue approximately approximately nine for million. from QX $XX.X results XXXX. Our $X.X million we days to

long-term I now the EBITDA $XX.X free contribution, XX%. to represented adjusted flow approximately EBITDA. grew contracts XX% And was million, XX% XX% open quarter. XX%, adjusted XX% will EBITDA Adjusted the BrightTALK call to TechTarget margin revenue, of questions. representing margin revenue was of Excluding gross Adjusted revenue $XX million. cash grew the in was

Operator

Instructions] [Operator Kessler Aaron ahead. is James. Go question first Our from from Raymond

Aaron Kessler

on and congrats and guys the Thanks, year. the quarter Great.

Just of questions. a couple

in probably just the as the still then it's of can case on lead of needs then the drivers kind expanded XXXX the kind maybe maybe into use guidance, the part end early right? to of how comment just early, just maybe of quarter, think maybe would First, the go to what product? well? And but maybe on should you terms more about high we linearity range, of with traction QX of maybe that of you the the during here, you're seeing sales QX, the traction saw the And

Michael Cotoia

Mike. Aaron, it's Hey,

In the the to data-driven face-to-face in and on of sales to events, levels. guidance we're data. companies terms still the from ever for obviously, innings about obviously, able trends as those get their on quick past and what we're come -- sales the when believe seeing that adoption purchase a pre-COVID high early we've several XXXX to to transition early organizations really talked this transition of quarters. end, BXB marketing whole this enterprise marketing see We in been had efforts. don't even We're intent terms that those offer our seeing of back We have depleted. to will shift first-party And drive

a that. on marketing creates, largest network registered the content intent content, first, use. we're and to in start data audience to have we and sales BXB really intent So which purchase the purchase opt-in for position good at enterprise first-party produce the technology We level. Remember, organizations, as our investments to first-party a feel marketing adept fuel companies get we more adopt and help inclined sales

come on come trends macro going to under data terms scrutiny. going that some of in market third-party some cookies, to are midstream to going on have You the questions in and

So we with accelerate get through Obviously, can that ESG, and we execute to market. work and and could work feel those, that. the integration into BrightTALK we as help the the on end the higher

terms Priority a strong got Engine case, focus very case. In on our use the we sales use of sales

know, of back launched in for As and accounts, leverage the take penetration, Priority we still for big really QX you some data. takeout. was modifications it marketing Engine. organizations. some part competitive new Marketers net ABM, beginning our Typically, now, we even updates They into which sell

leveraging territory managers, seeing we're data. the Now lot of reps the inside a folks, sales sales

So investment that case more go the their that we use to will into and workflow are Engine and sales going that to massive we data make into sales Priority made supporting sure putting naturally.

that the was worked in things prospect-level So one on a that of we've intelligence.

a a So lot seen success in of launch was that. huge We've October. on that

all I level. So who region, case. based then rank want will you now, active individual what those we to on our and segment, accounts have the should before, I They prospects based technology use and priority on. a should Well, of accounts, engine different at reps know say focus the that those know within call to on should folks you

a seeing lot of big a advancement So that was success. we're

entry was big Another advancement we have points. now customized

Are at for looking want prospect-buying which customize reps right sales sales somebody they in looking Tighter individual a even after. with an deeper backup rep they member entry the team the if the asynchronous integration points So sales replication? those account and Are protection? inside data insights data a big go rep been So to more now. at that you the force are has to you into focus at have protection us. now very engaged we want and or vendors protection market, an can than that data cover market they is now goes

social not to when prospect really able we Engine want XXXX, focused This your your sales our and that. good the We media." the This with prospect fly this case We're prospect seeing visited on on we're content. to help that. just know seeing personalize head We're customers our down engaged website. the way, reps So to only Priority who something we're on to guide case. call, interact to good traction. doing to say, "By into use As but just going to continue is use be to to with sales

-- In trying -- that COVID the terms what we saw in on the for of our take last have foundation of that lot those huge always-on a navigate, customers net navigate Engine. been three-, lot through programs us to be new a integrated still is to uptick a efforts. our us audience customers mentioned our that, pandemic, trust momentum, of saw a lead-generation QX opt-in to as investment, registered and QX back, as a to TechTarget the And will programs of I quarter, intent. transitioning six-month in big those And be -- that that's at for first-party good and we are encountered Priority thing because members come and that our saw will because we our subscription-based, focus, we

Aaron Kessler

then, for it, great. provide quarter? finally, you Got the international any out. around I international. didn't And just numbers see color broken that Can

Michael Cotoia

little the in around numbers markets, the international XX%, a XX%. We're great data-driven international behind U.S. almost look Yes, typically they're when and grew about markets markets. you seeing international those Again, digital. bit at the success in

that regions are You of some face-to-face these very concentrated see events. in heavily

three, opportunity. to been which could the has digital have two, this whole transformation, over happen COVID projected years, four been So with accelerated

with to continue pandemic -- now. right we the So

those to we in solid So XXXX. and to -- growth see markets, continue invest we project we continue in

Aaron Kessler

Great. you, Thank guys.

Michael Cotoia

You're welcome.

Operator

is Our ahead. Go and Kreyer next from from question Jason Craig Hallum.

Jason Kreyer

Thank you.

Engine. last Just as to couple talked opposed wanted we've on Priority agreements the for shorter-duration your to quarters, about ask of customers opting

elaborate of that any that the of strategy if customers can open and also or to here changed them then up wondering subscription? So And in things to those early try in to back get bit a what just little on as QX. maybe go more, into longer-term you QX some is

Michael Cotoia

Jason, yes, question. good

came of commit long for as mentioned, that's the to something had especially So want And mindset in, through the smaller we to when down, March customers' to have -- something b, term. our customers, new; when a and too, was don't a, March, that's of navigate we we've I want XXXX, we this. to: hunker lot pandemic since

audience So sites. to our with audience have navigate our through They to through XXX-plus some we're help QX. again making a that growth. come seeing this we're relationship have investments good uncertainty customers we of the in content with through knowing our listen, still And so across to QX, because that have navigating come good our pandemic, us really the they're some

surrounding programs they working, that three- and on all to is to that playbook are other stay transition our lead-generation intent-led that Now content our branding the annual of not to entire programs make through Engine, marketing, Priority customers, integrating six-month of buy from messaging aligned that or with to team how they those so them walk close understand sure are still with contextually throughout And Priority with members an journey. Engine. only highlight the value buying the subscription it

that. good with XX-day and or focused We're Engine content commitment we head some execution. that We're it. integrating around customers into XXX-day there were So on is where seeing our starting that that's on Priority longer-term our very programs playbook transition we programs that some momentum on into to and XXXX, it as are marketing, staying

Jason Kreyer

to a the early see Any gotten just pipeline feedback updates has some the you've But how last wanted had as to quarters. of progress ago. there bit as intelligence few far prospect-level over little if that mentioned continued you you And users? that specific any from

Michael Cotoia

positive. Sales so to case. part prop Yes. market reps a feedback workflow, got their important we and very The our extremely get is want to what has been in provide overall -- value in we've use information of

force CRM system. going to sales data the is able However, any to into or fit their be

SalesLoft, need Now that. things that a that. platforms, sales works like reps cadence have sales-enablement IO, They Outreach with

to identified making well their what reps folks people continue as platform, individual And in force, focus have data into our sales themselves or the as us to to tight for sales of well sure that they is make sales territories, that big sure prospect the we sure that levels that's the it's data a their have momentum with that a sales aligns workflows, make rep integration focus our this usage, for a continue works sales-enablement access our as that through departments. cadence. we marketing So whether

Jason Kreyer

one Perfect. for me. Last

here, kind impact BrightTALK seems you talk revenue Just about a -- that Can the 'XX of you of for synergies of course expect specifically. in acquisition it to on the the there. I opportunity like and lot layer model? mean over how how there's

Michael Cotoia

has with job. great in thing BrightTALK have would I organizations BrightTALK -- opportunities. there They audience. fruit the organizations does. about Yes, of, and excited really had call, the That's talks that in they hand, acquire of acquisition. engaged their lot to focus. team is on now. opportunities intent looking momentum, synergies and data have an also momentum. so cost not content and to a a low-hanging TechTarget, and Think audience what focus the the and and lot is done combining right not question. cross-sell customers. upsell with support membership, we're our a I'll of first create And the to the stay, other our a out but lot BrightTALK webinars going a are gate, cross-sell what and only goal a, videos provide accelerate They've purchase to help excellent are at, team best of There We're other be say an the summit, registered

Engine. we how the our the We're the engaged they later and how do BrightTALK do the an look to platform integrate to and will active We community. have look intent on intent because Priority from we're data drive that community we BrightTALK going getting audiences, at road and it to down membership leverage into leverage

that So But those the we looking the are term, short are we're that at. keeping flying. momentum in things

with service. -- teams get have customers which identify world-class both these opportunities with engaged are to cross-sell customer an to provide opportunity We and

Jason Kreyer

right. All Thanks, guys.

Operator

is Eric ahead. question Lake Street. from next Martinuzzi Our Go from

Eric Martinuzzi

wanted for I sure the make guidance I Yes. to understand XXXX.

to to that adjustment anticipate as an adjusted each of I letter. shareholder an go seeing plus the So non-GAAP us throughout quarter I'm you part revenue getting Should noticed upper expression. refer a used case adjusted revenue we year? revenue to we a the going GAAP

Michael Cotoia

that. answer CFO, our Dan, have I'll Eric,

Daniel Noreck

can reconciliation done future Eric, Yes. see that shareholder letters. expect in to you the

Eric Martinuzzi

will adjusted the that to And through ripple Okay. EBITDA?

Daniel Noreck

Correct.

Eric Martinuzzi

Okay.

Daniel Noreck

for letter, the So recognize. and the we're QX the in we're to put revenue year, not the $XX.X million current that schedule -- $X that's under we allowed in deferred million for the GAAP

Eric Martinuzzi

about it than tapers way the my it? less being experience that with quarter-by-quarter, think each kind Yes. this, successive first with of Is quarter Q quarter. correct -- And to from

Michael Cotoia

That's look it, a at to fair assessment how yes.

Eric Martinuzzi

Okay.

the talked acquisitions, Now, you of guys checking boxes. a lot about

do in decrease One the I'm with something the guidance the things of looked that. if math the margins less for me I I finished Help and EBITDA incremental in up XX% adjusted than was see understand And for on that profitability, I XXXX, EBITDA range. out adjusted you coming with XXXX the margin.

Daniel Noreck

Yes.

TechTarget, both a these in one. Over of TechTarget in will that's -- structure their meantime the acquisitions synergies. believe the those bit businesses, with -- come was margin based on than So, little revenue we so lower were margin property. the the acquired that time, short term, In line

So no plans synergies achieve we expense able we that been -- have for over have we expense -- and to there's that. be some there'll synergies big obviously, yet, no But really haven't don't we've time.

-- this to we're be but thing. quarter, example, going so that's a For not three paying CFOs, long-term

you'll couple with but the in historical over -- if continue margin see So line of TechTarget next expansion. years, to expansion you margin look out

Eric Martinuzzi

BrightTALK we can wouldn't to be revenue number either but for do have disclose for revenue either XXXX audited, that's for ESG. I but ESG? them curious Okay, know, And helpful. a you know if for to it, or or number I BrightTALK expect I'm then, don't

Daniel Noreck

BrightTALK we're to we've not disclosed, debt going convertible disclosed, not to reasons. and competitive number So, in it's for disclosed so not be required approximately has ESG a not $XX offering, been -- revenue is the million.

Eric Martinuzzi

price that the lastly, -- increase? kind on happened by have of from customers How price can the tell what Okay. of What Engine we What QX of legacy the Priority do and the more the in much price we of would business? revenue -- commits. benefit increases about the that? percentage contract impact the how maybe impacted your And percentage then, us historically, can either -- long-term percentage you increase

Michael Cotoia

integrations understand we positive the data-driven a marketing don't so long feedback mean sales price, double-digit get road, had are we become and so features, the on implemented the and that. near even features I increase the have at in and trying additional believe we lot power sales purchase a lot and on that expect Yes. that They Eric, down first-party focused are a cases. price looking with to additional intent. And to We around People functionality, organizations. are functionalities of continue. pushback We've of our we use we pricing some the moving term.

Eric Martinuzzi

revenue like, increase price I or -- of impacted look in of if year doesn't on know I the or as, far XXX% increase? by base. the X/X as What But of would price had price the that base that your $XXX back increase XXXX, me we X/X be X/X impact X/X understand million. revenue that of -- Help that.

Michael Cotoia

rough Yes. when as pricing I on And would look at it different and for we're say, sign numbers, know, that year of the contracts. we customers long-term in around at months you that. -- X/X up

But the for in that in that's it up so if even your I be was February, a if May, about of rata on would you March, you'd amount have So X/X, pro revenue would increase. would estimates January, April, recognized our you -- affecting customers sign start recognize Customers -- X/X. X/X of you price get have that. increases all in use

Eric Martinuzzi

QX. my for congratulations very on questions All right. busy the and Thanks Okay. taking

Michael Cotoia

Thank you.

Operator

question-and-answer now concludes conference for concluded. This our has presentation. The you Thank today's attending sessions.

You disconnect. may now

TechTarget (TTGT) 11 Feb 212020 Q4 Earnings call transcript