TTGT - Earnings call transcript Q1 2024

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good afternoon. Thank you for attending the TechTarget reports first quarter 2024 conference call and webcast. My name is Cameron, and I will be your moderator for today. [Operator Instructions] And I would now like to pass the conference over to your host, Charles Rennick with the General Counsel.

You may proceed.

Charles Rennick

good and Cameron, you, afternoon, everyone. Thank joining Executive Chairman; speakers Dan our us Executive here our Strakosch, Noreck, Officer. Financial Greg are Chief Mike and today Officer; The Cotoia, Chief our

the Greg, the turning like everyone earnings call process. to call Before we our of over to would remind release on

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

can find of on available as call at webcast You also the conference these SEC, website. made well charge, www.sec.gov. The the materials free Investor as a with this be website replay Relations of at section SEC's will our corresponding of

to the answer management available during by remarks, made are today the from based and be will subject forward-looking questions. forward-looking differ are considered materially that be statements these statements. risks our uncertainties, of introductory are Actual are may factual performance. statements. to TechTarget forward-looking guarantees which team future These from Q&A Greg's not statements, results and not and forecast including assumptions on our Any Following may

that Risk to as and events undertakes to most except XX-Q or revise law. involve of statements number reflect forward-looking of arise conference obligation in and in no of date as of this order These statements including XX-K. TechTarget recent by call, the and section update any after required statements call, may this risks a discussed those the periodic Forward-looking reports Forms Factors our uncertainties, on speak only

letter. certain the these GAAP. with over measures GAAP that, turn available call to not to most A the unreasonable Greg. our non-GAAP certain financial I'll we Finally, reconciliation in prepared financial shareholder to accompanies to accordance efforts, refer comparable without extent And measures, the measures may with of of also

Greg Strakosch

over digital a XXx Informa combine with end-to-end as you, XX, with agreement during Charlie. business. we data past we X across go-to-market. We've January and to into with intent million The a increases new been strong our permission with Informa financial purchase company leading over XXX TAM XX increased XX the profile. countries, will over of with Thank and over half audience vertical to combination of TechTarget we have The company over customers with transaction first-party Tech's a by XXXX. markets scale definitive will a closed XX on the in Great. people. brands we from digital combined have The enter On are entered second have this combination solution our pleased track the progress unique made months, the clients' creates X,XXX

$XXX first long-term margins. to expect $X continue value shareholders EBITDA are stake opportunity will with get to quarter, forward. In regards pay off. above consensus, over pro some in and forma immediate Within to X We the revenues so billion XXXX million. revenue over expect by structured $XX.XX share We grow per cash be paying we out XX% least at deal years, offerings to benefit our we and participate believe through and creation benefit providing investments for to our by pleased a and product shareholders revenues XX% long-term to in and will report going are our to the we a

investment sales return a $XX year-over-year. roughly We regarding XX% to to million business a see million, and and that some with to cautious for seasonality. This technology macro the support flat in normal sequential range remain are of QX levels. revenues QX of stabilized environment, a increase signs reflects forecasting We the which from be as $XX marketing represents the customers which

of continue the issues. presidential rates, election and to We throughout this XXXX surrounding geopolitical interest dynamic uncertainty because expect inflation,

combined and additional company XXXX, better of the We environment scale questions. take a the to recovery. as to XXXX open will the in will call I is have now timing expect macro which advantage good

Operator

the Patterson first Justin is And the question Instructions] from with line KeyBanc. [Operator of

Miles Jakubiak

This is Miles Jakubiak on for Justin.

you're the with environment. Just update to macro start, to an would I get on seeing love what

You spend to R&D touch you're maybe to touched with the a little just kind bit transition there any it and of on seeing but S&M visibility. from any spend, change on updates

Michael Cotoia

Thanks, Miles.

in business terms high In see a technology headwinds the several customers. marketing anniversary the has this that we balance be and simple. of interest pullbacks. And international in tensions lot nothing managed to opportunity we the strong to when But leader We going and of we're right we rates, an say, some business, in areas product We have over several being an around sheet we've audience our it take been sure the celebrating make to our leverage sales macro, really inflation, comes still playbook facing we've year services I'd BXB presidential with pretty our functionality, quarters. and invest market and enterprise evolution, through continue last in -- as changed our the content to for mentioned upcoming being election. is enterprise to be shareholder, XXth the

product of we prospect-level to that AI retention, we're and most able increase our So are seen e-mail outreach capabilities. again in great we've even automation, some combine that on that off. and based prospect-level been our It's marketing in full though our leveraging the and there's platform making which usage IntentMail.AI, we customers' leverage positioning. recent, users our paying from investments of intelligence sales are first lot it with a no front for intelligence, our have in the are a relevant that feel most stuff our real quarter. Customers product We've our leveraging catalyst, on functionality terms our of done

repetitive to work integrations seeing usage. And that, our sequences going sales with competitive road adoption to to usage, retention, engagement on and on healthy into is we're multi-email expand that map future platforms. So the continue

around and the right sure So investments. platform the continuing making making we're

low I high a present in rates of mentioned, of things opening, inflation. But and of couple will the As are doesn't we be to high market tech a a and catalysts there'll we know as letter shareholder lot be XXXX recovery. terms mentioned in return, that true, and rates, the Greg's in interest interest

So we're investments today can we're things And that results as right our navigate making recovery. this making challenging we right doing sure and see the through QX QX feel to to our in forecast, you the macro. capture

Miles Jakubiak

focus That's maybe like integration helpful. and investments product. improvements that the And to side. little seems about then some just Priority bit building last off It upcoming direct point maybe in Engine the more on a there's

love the cycle. about So about invest current hear through kind you think of just priorities to you how as product

Michael Cotoia

Yes, great.

of use. focus on integrations, full a generative in X big is IntentMail, automation We've had X I our this is As mentioned, into over our X CRM, But months integrations marketing beyond, AI last customer and to the offering, quarter platforms. concentrated integrating help within support customers who information a to Priority platforms. We our made data in other other into Engine really and Priority existing technology integrate Engine into reallocated workflows and want platforms. we resources to effort data internal invested

partnerships leverage looking that from mass a TechTarget's of our we're first to have data, with existing focused we're QX. doing of our are customers with We on customers. And some a going get QX, some benefits partners' platforms. to we strategic continue joint to QX, critical throughout the have like party And and are a announced and that announce -- partnerships, working partners share

with a focus are we So pleased road pleased we're big for with with us, we're where and and seeing map. some and that we're good this it's the success on

Operator

The is with of next question line from Shah Deutsche Bhavin the Bank.

Bhavin Shah

over kind helping on point about translate we do to Just that terms lag of improvement IntentMail growth? the product of think on continues of that kind of Priority kind just that of overall long-term in and to revenue as last in total improvements Engine, revenue when kind

Michael Cotoia

Yes, great question, that's Bhavin. a

engaged I'll of around in really well some to continue use Priority the we our areas. And stores. support So at we've -- both look road now on as of against fronts: that the platform Engine, the integration making investments talked again, asked. you us really big we're IntentMail and get some and into to those which important and some will good map those as we're customers X are one getting question about, of just investments making it for the It's being progress them, be help

X looking avenues that's other IntentMail, version our of There's assist we're family. the do. product on that to So personal

expanding work integrations to as with with, engagement mentioned, I sequences In and platforms. multi-email terms features sales those of

like SalesLoft part as In intelligence Outreach. organizations their or prospect-level of that to access So have like cadence and things to of that, BDR we customers. SDR want to outreaching

across So the usage. data data again, and integrations, personalized engagement more stickiness, more global creates

experience. terms that into we're a our in On a explaining common evolving very large TechTarget we're priority and we other more incorporate have initiative the road that doing of And platform user on integration to the offerings into the a end. -- strategy, map,

buying support to unified that be of take a by teams. So and the action with insights action decision-making, identify ability visualization impact, will program active intent-based and driven to program

from an So demand to it's all versus access customers overall look doing getting programs more offering siloed content to visibility this, so have offerings of about and are intent to unified brand, and if the can inside platform you at insight visualization updated how a the end-to-end the solution only. being into

you'll are -- some overall the the We're that, the strategy. Engine map XXXX of that be the So Priority seeing end the that at and those announcements seeing platform about of investments half we're second road capability traction on good and and making.

Bhavin Shah

enterprise, of it X more your difference? follow-up, Got continues looks first out in or but is bit XX top But there. large a the their kind while. time quarter, remainder just And legacy to that for year-over-year. to customer it, base, to that's which great the see can you helpful notice macro-wise, a grew revenue in the little largest like macro-related, call SMB Anything the decline

Michael Cotoia

say and offer quarters, we've on help Strategy to some this end-to-end several Group accounts, BrightTALK and the Xtelligent about, to talked our of last customers. go-to-market key made product strategy we and and over I'll What acquisitions Yes. enterprise create Enterprise the investments with the

set strategic to into then now our So have and advisory research, we more programs capability right intelligence content and to put in position activate get product to enterprise accounts, in portfolio terms and accounts. our entry from creating points the with there against of

a across so more can the terms entire the the budget end-to-end and of the that go-to-market makes more lot account, involved And we terms we're the larger of stakeholders momentum a in in. great get of different sense strategy. penetrating pockets that seeing And actually in

Bank. are intent. propositions putting projects today have But some to we They and this rightsize the whether the might some collapse the what navigate points entry of by if their months the a have BrightTALK meet might over these they drive and or a for we -- Silicon a content, SMB smaller demand ago, I need think that, customer of Again, help to our have positioning smaller that managing been had Valley through we end do of against as customers. to creation. They make do our I ESG where for accounts, capabilities they're since I absolutely only expenses, A of to looking is want and to so content accounts. for we Engine terms account it's again, isn't Studios with X demand leveraged they In to it's need positioning, And headwinds offerings value area our in subscription, environment. confirmed market or or years it's versus might year intent- product value accounts we're to their a XX go different their this the ready versus back quarter brand projects. our an smaller looking have Priority mean sure what points whether to funnel lower lot their different smaller true with

terms So well. in SMB a position good we're engaging we those customers of in providing feel for as value and pretty

Operator

from is Needham. question the Joshua with next The Reilly of line

Joshua Reilly

at this as drive typically, customers sequential guidance some new talked typical with revenues. your here, product about the we're have So releases you looking the seasonality June believe, I increase quarter in by guys how historically, can

what there maybe Just we wanted of? play is that to normal is Or other factor understand, aware is the the some -- be should is driving revenues? what seasonality, that at there that improved

Michael Cotoia

it's a think things, couple of Josh. I

we product sales targets, before, they all, with who And some work quality, to how are customers customers it's serve on some when purchase still have is really going driven when conversations offerings market to to and data commission-based focused to can now. we've really, on recovers, be annual of be see of as our of first audiences. But market, going the That's our last deals, in things multiyear that year. We're off intent there's you that can down or a said to do breadth I -- that quality and stabilize started right the not be a with think help is to that the today. support normalization what their forecast. flight back need middle revenue paying understanding pipeline, first-party their in starting even needs we of based really ready might to those customers starting by

the of to to able came yes, is our are paying portfolio well-architected, around confirmed so our well intent, whether and brand the again, opportunities, sales customers what demand need, qualified accommodate and So our as of into well, to XXXX, investments and bottom projects or funnel we data being strategy the quality of positioned content the quality off. it's

account adopter launched multiple just a announced, we Now speed. program around beta/early and we're running insight

offerings. different Engine ABM use That This any So propensity offering really scoring. customers from it's and won't used impact have for is QX. prospect-level a will But insights-only, in new our their was a our that initiatives new Priority against programmatic it's case be revenue Priority Engine announced. offering

again, our I believe they is third-party in are say, get go level only new before. stream revenue the that the the the and announcing for studies cookies, able of future the but another XXXX create with to Google at customers gold sunset And into we back that's where -- of going So that very data be in going And not we will level. prospect weren't to first-party account buyers that at also to case with now mix new we're impactful is.

we terms increase -- we're this we relatively the really I going we in around June to down QX, X expect ago. year-over-year. QX of what projected revenue revenue, mean, this quarters in the So XX%. to said that's guided to be see closing I QX focused on. But is the be an up gap in

So the and laid we business. we're on performance of with we're the track pleased with out what

Joshua Reilly

lot the leverage have into helpful. as about Are but thinking levels very other forward? As we moving how we a also be QX? about we of know you That's making are to kind QX the here. margin overall it. going think you're other that margin your of any considerations investments margins our gross of there model revenue, and should Got we then should And gross sensitive then

Michael Cotoia

Yes. Thanks, Josh.

investments So to again, business plan we to right expansion. and make help the margin drive the to feel

feel the product teams, management visibility solution visibility we this right close our contracts sets, to a investment streamline success areas so some and information our is done we've across to So is that it year of the can provides end-to-end we've to And implemented currently that so from the workflow execution this all and we teams. fulfillment our operation our sales customer billing.

QX and in the a into implementing that. more a bit. will sales solution to But the is workflow We better create of that we us do at end, for on we're middle of scope head the of cost provide able little expand visibility be So efficient what as XXXX. a

needed see made and that. end, the we of to make of continue bit cost is investments so that, It's margins. help more we knew you on So efficient and in a doing to done. on will middle cost little that the right get that we're But now. at right the of still a expand that something sales We

Operator

The next is from Goldfarb of Street the Lake question line Markets. Capital with Bruce

Bruce Goldfarb

Dan, congrats Michael, Greg, on results. And the

at be you question revenue where do as percent on long-term a of the a to total Just XXXX? of expect long-term revenue, revenue end

Michael Cotoia

that look into premium. We expect on order capabilities to about be to assets, be acquire this what We drive penetration and look we're a we going the we to when do is markets. 'XX or look revenue mid-XXs. in at vertical you at and look like audience are yes, purchase in new contracts last predicted right the audiences. insights intent When doing, tech-enabled more the when we look look the continued we that at need doing we the low long-term look just of different environment, pullback evaluate we We Bruce, at and content a first-party at with first-party when why And and like this XXXX, and into we be that's few permission-based talk to years couple macro content the this. evaluate combination a as to to take absolute at things. going we feel time look we in at for

the at Enterprise brands line Strategy assets in we assets is So business, with advisory the the which combined take that around and Group our a media Informa quality research business. a look around be and are merging digital industry with [indiscernible] we guys digital special in business the intelligence and around that Tech's --

of the Omdia their contracts. look long-term revenue about If business, at under a XX% you take is

So the assets, get timing and all together assets really right now for to ready be the of it is quality integrate important recovery. now, these combined,

year the in over mid-XXs our this So X-year revenue yes, long-term plans X- to contracts. might we low to the be on but XX% revenue

Bruce Goldfarb

of you with in terms Informa Tech, then Informa working TechTarget? And regarding getting inquiries inbound customers merger from Tech any the are with

Michael Cotoia

customers got Informa mentioned we've made. letter, mean, right this. inbound shareholder think introduction, No, any we the we're Tech us working on to really I haven't right we're that and inbound as in the happy we progress with now, I

conviction business We this. strong have the for we're on ready our as of usual also making the really focused combination. timing that sure We're but on

XXXX. But are still reaching complete which we directly out in from to the Tech half scheduled we So have haven't to second us. of customers Informa heard

Bruce Goldfarb

like buyback quiet until closes? weren't quarter. saw the the I during likely transaction on Tech you active then after And you Informa Are

Michael Cotoia

Yes.

going really to that. it's on be quiet. we're think Yes, I quiet pretty

November that is I anyway. XXXX [indiscernible] think

Bruce Goldfarb

up on anyway. results. Great, coming it's the so Congrats

Michael Cotoia

you. Thank

Operator

the to closing additional There team management like the at remarks. are would over this back conference time. questions pass I waiting no to for

Michael Cotoia

next We and talk No everybody joining questions? quarter. other closing you remarks. appreciate to No

Charles Rennick

Thank everyone. you,

Operator

Thank of TechTarget rest your the and quarter for participation, the XXXX and conference webcast. your reports first concludes enjoy day. call you That

TechTarget (TTGT) 9 May 242024 Q1 Earnings call transcript