UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 1-33472 TECHTARGET, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or orga ...

[PART I](index=3&type=section&id=PART%20I) [Business](index=3&type=section&id=Item%201.%20Business) TechTarget provides purchase intent-driven marketing and sales data to B2B technology companies, facing macroeconomic headwinds and implementing strategic growth initiatives [Business Overview](index=3&type=section&id=Business%20Overview) TechTarget delivers purchase intent-driven marketing and sales data to B2B tech companies, leveraging a content network and strategic acquisitions for growth - The company is a global data, software, and analytics leader for B2B companies, offering solutions to identify, reach, and influence enterprise technology decision-makers[12](index=12&type=chunk) - As of December 31, 2022, the company had approximately **30.2 million** registered members and users, an increase from **29.1 million** in 2021[14](index=14&type=chunk) - In 2022, the company delivered marketing and sales services to over **3,400** customers[15](index=15&type=chunk) - Recent strategic acquisitions include Xtelligent Healthcare Media (2021), BrightTALK (2020), The Enterprise Strategy Group (2020), and Data Science Central (2020) to enhance its purchase intent data capabilities[13](index=13&type=chunk) [Business and Industry Trends](index=4&type=section&id=Business%20and%20Industry%20Trends) The company's business, impacted by 2022 tech industry downturns and layoffs, anticipates long-term growth from sales/marketing modernization and privacy trends - The enterprise technology market materially worsened in 2022, with over **1,000** tech companies announcing layoffs, leading to a challenging selling environment with elongated sales cycles and budget freezes[18](index=18&type=chunk) - In December 2022, the company announced a headcount reduction of approximately **5%** of its workforce, expected to result in about **$7 million** in annual savings[18](index=18&type=chunk)[69](index=69&type=chunk) - Long-term growth is expected to be supported by trends including the modernization of sales/marketing with automation and first-party purchase intent data, growing privacy regulations, and younger buyers' preference for self-service research[19](index=19&type=chunk) [Our Solutions and Strategy](index=6&type=section&id=Our%20Solutions%20and%20Strategy) TechTarget offers IT Deal Alert and BrightTALK platforms, with a strategy focused on data-enabled innovation, long-term contracts, and international expansion - Key solutions include IT Deal Alert™ (data/software suite), Demand Solutions (content marketing), Brand Solutions (targeted advertising), Custom Content Creation, and the BrightTALK platform (webinars/virtual events)[29](index=29&type=chunk)[30](index=30&type=chunk) - The company's strategy is to enhance its position as a leader in purchase intent-driven marketing by innovating data-enabled services, expanding long-term contracts, growing into new sectors, expanding internationally, and pursuing strategic acquisitions[35](index=35&type=chunk)[36](index=36&type=chunk)[37](index=37&type=chunk) - Planned product improvements for 2023 include enhancements to the Salesforce interface, ROI dashboard, and sales alerts functions[36](index=36&type=chunk) [Platform, Content, and Customers](index=9&type=section&id=Platform%2C%20Content%2C%20and%20Customers) The company's platform, organized by specialized content categories, serves over 3,400 B2B tech customers, with no single customer dominating revenue - The content platform is organized into key market categories such as Security, Networking, Storage, Compute/IT Ops/DevOps, CIO/IT Strategy, Business Applications, Analytics & AI, Application Architecture, Channel, ESG, and Healthcare Technology[44](index=44&type=chunk)[45](index=45&type=chunk)[46](index=46&type=chunk) - The company served over **3,400** customers in 2022, with no single customer representing **10%** or more of total revenues for 2022, 2021, or 2020[50](index=50&type=chunk) [Competition, Regulation, and Human Capital](index=18&type=section&id=Competition%2C%20Regulation%2C%20and%20Human%20Capital) TechTarget navigates competition from diverse tech and media firms, adheres to evolving data privacy regulations, and recently restructured its global workforce - Key competitors include media companies (Ziff Davis, Foundry), data/analytics providers (6sense, Bombora, ZoomInfo), and webinar providers (ON24, LogMeIn)[57](index=57&type=chunk) - The company is subject to numerous data privacy and consumer protection laws, including the CAN-SPAM Act, TCPA, GDPR, and CCPA, which regulate its marketing and data collection activities[61](index=61&type=chunk)[62](index=62&type=chunk)[63](index=63&type=chunk)[64](index=64&type=chunk) - As of December 31, 2022, the company had approximately **1,000** full-time employees. A restructuring plan in December 2022 involved eliminating approximately **60** positions (**5%** of the workforce)[67](index=67&type=chunk)[69](index=69&type=chunk) - Revenue is seasonal, influenced by customer budget cycles, new product introductions, and a historical decrease in marketing activity during summer months[70](index=70&type=chunk) [Risk Factors](index=24&type=section&id=Item%201A.%20Risk%20Factors) The company faces risks from advertising dependence, short-term contracts, user retention, acquisition integration, evolving data privacy laws, cybersecurity threats, and significant indebtedness [Risks Related to Business and Operations](index=24&type=section&id=Risks%20Related%20to%20Business%20and%20Operations) Business risks include reliance on cyclical advertising, short-term contracts, search engine visibility, international operations, and intense competition - The primary source of revenue is purchase intent-driven advertising, which fluctuates with economic conditions, budgetary constraints, and the cyclical nature of advertising spending[77](index=77&type=chunk) - Business success is closely linked to the health of the enterprise technology industry, which is characterized by volatility, short product cycles, and rapid technological change[80](index=80&type=chunk) - A majority of customer contracts are short-term (typically six months or less) and can be terminated with minimal notice, creating revenue instability[82](index=82&type=chunk) - A significant portion of website traffic comes from internet search engines, making the business vulnerable to changes in search algorithms that could reduce visibility and traffic[86](index=86&type=chunk) [Risks Related to Acquisitions](index=29&type=section&id=Risks%20Related%20to%20Acquisitions) Acquisition risks involve integration challenges, business disruption, and failure to realize expected synergies, potentially increasing expenses and reducing growth - Acquisitions involve numerous risks, including difficulty assimilating operations and personnel, disruption of ongoing business, and potential failure to achieve expected synergies or cross-marketing benefits[98](index=98&type=chunk) - The ability to realize anticipated benefits from acquisitions depends on effective integration, which is a complex, costly, and time-consuming process that may disrupt business if implemented ineffectively[99](index=99&type=chunk) [Risks Related to Data Privacy, Security and Intellectual Property](index=30&type=section&id=Risks%20Related%20to%20Data%20Privacy%2C%20Security%20and%20Intellectual%20Property) Risks include IP infringement, third-party content liability, evolving data privacy laws, cybersecurity breaches, and dependence on unimpeded internet access - The company faces risks from evolving laws and standards related to marketing, data collection, and user privacy, such as GDPR, CCPA, and ePrivacy regulations, which could impose significant compliance costs and decrease revenue[106](index=106&type=chunk)[110](index=110&type=chunk)[113](index=113&type=chunk) - Cybersecurity breaches pose a significant threat, potentially resulting in the loss of confidential information, service disruptions, and significant legal and financial liability[126](index=126&type=chunk)[130](index=130&type=chunk) - The business is vulnerable to system failures, natural disasters, and other disruptions at its third-party data centers and cloud infrastructure providers, which could reduce traffic and negatively impact revenue[133](index=133&type=chunk) [Risks Related to Financial Matters](index=37&type=section&id=Risks%20Related%20to%20Financial%20Matters) Financial risks include goodwill impairment, stock price volatility, significant convertible note indebtedness, and substantial influence by a few major stockholders - As of December 31, 2022, the company had **$192.2 million** of goodwill and **$95.5 million** of net intangible assets, which are subject to impairment risk that could negatively impact earnings[139](index=139&type=chunk) - The company has significant indebtedness, with **$51 million** of 0.125% convertible senior notes due 2025 and **$414 million** of 0.0% convertible senior notes due 2026 outstanding as of December 31, 2022[144](index=144&type=chunk) - As of December 31, 2022, directors, executive officers, and significant stockholders beneficially own approximately **50%** of the outstanding common stock, giving them significant influence over stockholder matters[152](index=152&type=chunk) [Unresolved Staff Comments](index=40&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company confirms no unresolved staff comments from the SEC - None[153](index=153&type=chunk) [Properties](index=40&type=section&id=Item%202.%20Properties) The company leases its 68,000 sq ft global headquarters in Newton, MA, until 2029, alongside other international offices - The company's global headquarters is in a leased **68,000 square foot** office space in Newton, Massachusetts, with the lease term running through December 31, 2029[154](index=154&type=chunk) [Legal Proceedings](index=40&type=section&id=Item%203.%20Legal%20Proceedings) The company is not involved in any material legal proceedings, nor is it aware of any threatened litigation - The company is not currently a party to any material legal proceedings[155](index=155&type=chunk) [PART II](index=41&type=section&id=PART%20II) [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=41&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's common stock trades on Nasdaq (TTGT), does not pay dividends, and repurchased **$33.8 million** in shares during Q4 2022 - The company's common stock is listed on the Nasdaq Global Market under the symbol "**TTGT**"[157](index=157&type=chunk) - The company has not paid cash dividends in the last three fiscal years and does not anticipate paying them in the foreseeable future, intending to retain earnings for business development[159](index=159&type=chunk) Issuer Purchases of Equity Securities (Q4 2022) | Period | Total Number of Shares Purchased | Average Price Paid Per Share | | :--- | :--- | :--- | | Oct 2022 | 80,760 | $63.15 | | Nov 2022 | 298,138 | $53.04 | | Dec 2022 | 297,848 | $43.39 | | **Total Q4** | **676,746** | **$50.00** | - In November 2022, the Board approved a new repurchase program authorizing up to **$200.0 million** in purchases of common stock or convertible senior notes. As of December 31, 2022, **$185.1 million** remained available under this program[165](index=165&type=chunk)[247](index=247&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=44&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) FY2022 revenues grew **13%** to **$297.5 million**, with improved gross margin and operating income, and net income significantly increased due to non-recurring prior-year expenses [Overview and Business Trends](index=44&type=section&id=Overview%20and%20Business%20Trends) FY2022 revenues grew **13%** to **$297.5 million** amid macroeconomic challenges, with non-legacy customer growth and increased longer-term contracts Revenue and Adjusted Revenue (Non-GAAP) | Metric | 2022 | 2021 | % Change | | :--- | :--- | :--- | :--- | | Revenue (GAAP) | $297.5M | $263.4M | 13% | | Adjusted Revenue (Non-GAAP) | $299.2M | $274.9M | 9% | - The enterprise technology market materially worsened in 2022, leading to elongated sales cycles and budget freezes. In response, the company reduced its workforce by approximately **5%** in December 2022[178](index=178&type=chunk) - Revenues from legacy global customers (a cohort of 10 historically largest hardware companies) decreased by **2%** in 2022, while revenues from all other customers increased by **11%**[178](index=178&type=chunk) - Longer-term contracts accounted for **41%** of revenue in 2022, an increase from **40%** in 2021[175](index=175&type=chunk) [Results of Operations (2022 vs 2021)](index=51&type=section&id=Results%20of%20Operations%20(2022%20vs%202021)) FY2022 revenues grew **13%** to **$297.5 million**, gross profit increased **14%** to **$219.0 million**, and net income surged to **$41.6 million** due to the absence of a prior-year inducement expense - Revenue increased by **$34.1 million** (**13%**) in fiscal 2022, with **$25.6 million** from new customers and **$8.5 million** from existing customers[206](index=206&type=chunk) Key Financial Metrics (2022 vs 2021) | Metric | 2022 | 2021 | % Change | | :--- | :--- | :--- | :--- | | Total Revenues | $297.5M | $263.4M | 13% | | Gross Profit | $219.0M | $192.2M | 14% | | Gross Margin | 74% | 73% | +1 ppt | | Operating Income | $56.7M | $34.4M | 65% | | Net Income | $41.6M | $0.9M | 4284% | - Total operating expenses increased by **$4.4 million** (**3%**), which includes a new **$4.4 million** restructuring cost for a reduction in force, partially offset by a **$4.2 million** decrease in amortization expense[208](index=208&type=chunk) - Interest and other expense (income), net, changed by **$24.1 million**, from a **$23.3 million** expense in 2021 to a **$0.9 million** income in 2022, primarily due to the absence of the **$21.2 million** Inducement Expense incurred in 2021[213](index=213&type=chunk) [Results of Operations (2021 vs 2020)](index=53&type=section&id=Results%20of%20Operations%20(2021%20vs%202020)) FY2021 revenues surged **78%** to **$263.4 million**, driven by acquisitions and customer growth, but net income sharply declined to **$0.9 million** due to a **$21.2 million** inducement expense - Revenue increased by **$115.1 million** (**78%**) in fiscal 2021, driven by **$50.0 million** from the BrightTALK acquisition, a **$37 million** increase from existing customers, and a **$28 million** increase from new customers[215](index=215&type=chunk)[216](index=216&type=chunk) Key Financial Metrics (2021 vs 2020) | Metric | 2021 | 2020 | % Change | | :--- | :--- | :--- | :--- | | Total Revenues | $263.4M | $148.4M | 78% | | Gross Profit | $192.2M | $111.0M | 73% | | Gross Margin | 73% | 75% | -2 ppt | | Operating Income | $34.4M | $22.8M | 51% | | Net Income | $0.9M | $17.1M | -95% | - Gross profit margin decreased from **75%** to **73%**, primarily due to purchase accounting adjustments on acquired deferred revenue from recent acquisitions[218](index=218&type=chunk) - Interest and other expense, net, increased by **$23.0 million**, primarily due to a **$21.2 million** inducement expense incurred in connection with the retirement of a portion of the 2025 Notes[222](index=222&type=chunk) [Liquidity and Capital Resources](index=55&type=section&id=Liquidity%20and%20Capital%20Resources) The company ended 2022 with **$364.7 million** in cash and investments, strong operating cash flow, and **$465 million** in convertible notes, while DSO increased to **76 days** Cash Flow Summary (in thousands) | Activity | 2022 | 2021 | 2020 | | :--- | :--- | :--- | :--- | | Net cash provided by operating activities | $90,702 | $81,699 | $52,453 | | Net cash used in investing activities | $(14,450) | $(56,984) | $(175,747) | | Net cash provided by (used in) financing activities | $(92,958) | $254,459 | $153,366 | - Cash and investments totaled **$364.7 million** at year-end 2022, a decrease of **$17.0 million** from 2021, primarily due to cash used for stock buybacks[227](index=227&type=chunk)[228](index=228&type=chunk) - Days Sales Outstanding (DSO) increased to **76 days** at Dec 31, 2022, compared to **60 days** at Dec 31, 2021, attributed to the timing of customer payments[230](index=230&type=chunk) - In 2022, the company used **$79 million** for share repurchases under its stock buyback programs[241](index=241&type=chunk) - The company has a **$75 million** revolving credit facility which was undrawn as of December 31, 2022[259](index=259&type=chunk) [Critical Accounting Policies](index=48&type=section&id=Critical%20Accounting%20Policies) Critical accounting policies involve significant judgments in revenue recognition, goodwill impairment testing, business combinations, and stock-based compensation valuation - Revenue Recognition: The company uses stand-alone selling price (SSP) to allocate transaction prices among performance obligations in bundled contracts, requiring judgment based on historical pricing and market conditions[191](index=191&type=chunk) - Goodwill and Long-Lived Assets: Goodwill is tested for impairment annually at the entity level. As of December 31, 2022, no impairment was indicated[195](index=195&type=chunk) - Stock-Based Compensation: The fair value of stock option awards is determined using the Black-Scholes model, with key assumptions for expected volatility (**44%** in 2022) and expected term (**6 years**)[199](index=199&type=chunk) - Internal-Use Software and Website Development Costs: The company capitalized **$12.9 million** in costs for internal-use software and website development in 2022, up from **$11.5 million** in 2021[201](index=201&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=59&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Primary market risks are foreign currency and interest rates, with a **10%** adverse currency movement having an immaterial impact on operating income - Foreign Currency Risk: Approximately **25%** of 2022 revenues were from customers with billing addresses outside the U.S. A **10%** unfavorable movement in foreign exchange rates would have decreased operating income by less than **$450 thousand**[263](index=263&type=chunk) - Interest Rate Risk: The company's convertible notes bear a fixed interest rate. The undrawn line of credit has a variable rate. Due to the short-term nature of its **$364.7 million** in cash and investments, exposure to changes in fair value from interest rate changes is considered immaterial[265](index=265&type=chunk) [Financial Statements and Supplementary Data](index=60&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents audited consolidated financial statements for 2020-2022, including balance sheets, income statements, and cash flows, with an unqualified auditor's opinion [Consolidated Financial Statements](index=63&type=section&id=Consolidated%20Financial%20Statements) The consolidated financial statements show **$764.7 million** in total assets, **$297.5 million** in revenues, and **$41.6 million** in net income for 2022 Consolidated Balance Sheet Highlights (As of Dec 31, 2022) | Account | Amount (in thousands) | | :--- | :--- | | Cash and cash equivalents | $344,523 | | Total Assets | $764,717 | | Convertible senior notes | $455,694 | | Total Liabilities | $547,243 | | Total Stockholders' Equity | $217,474 | Consolidated Statement of Income Highlights (Year Ended Dec 31, 2022) | Account | Amount (in thousands) | | :--- | :--- | | Total Revenues | $297,488 | | Gross Profit | $219,000 | | Operating Income | $56,693 | | Net Income | $41,609 | | Diluted EPS | $1.30 | [Notes to Consolidated Financial Statements](index=68&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes detail accounting policies, revenue disaggregation, acquisition impacts, debt terms for **$414 million** and **$51 million** convertible notes, and stock-based compensation - In 2022, North American revenue was **$189.9 million** and International revenue was **$107.6 million**. Revenue from longer-term contracts was **$123.4 million**[328](index=328&type=chunk)[330](index=330&type=chunk) - The company has two outstanding convertible senior notes: **$51.4 million** principal of 0.125% notes due 2025 and **$414 million** principal of 0.00% notes due 2026[350](index=350&type=chunk) - As of December 31, 2022, there was **$82.4 million** of total unrecognized compensation expense related to stock options and restricted stock units, expected to be recognized over a weighted average period of **1.9 years**[377](index=377&type=chunk) - The company's effective tax rate for 2022 was **27.7%**, compared to **91.0%** in 2021, primarily due to the non-recurrence of a large non-deductible inducement expense from 2021[214](index=214&type=chunk)[388](index=388&type=chunk) [Controls, Procedures and Other Information](index=95&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes or disagreements with accountants, and management concluded disclosure controls and internal controls were effective as of December 31, 2022 - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of December 31, 2022[401](index=401&type=chunk) - Management concluded that as of December 31, 2022, the company's internal control over financial reporting was effective[406](index=406&type=chunk) - There were no changes in internal control over financial reporting during the fourth quarter of 2022 that have materially affected, or are reasonably likely to materially affect, internal controls[402](index=402&type=chunk) [PART III](index=96&type=section&id=PART%20III) [Directors, Executive Compensation, and Corporate Governance](index=96&type=section&id=Items%2010-14) Information for Items 10-14, covering directors, executive compensation, and corporate governance, is incorporated by reference from the 2023 Proxy Statement - Information regarding Directors, Executive Officers, Corporate Governance, Executive Compensation, Security Ownership, and Principal Accountant Fees and Services is incorporated by reference from the company's 2023 Proxy Statement[410](index=410&type=chunk)[412](index=412&type=chunk)[413](index=413&type=chunk)[414](index=414&type=chunk)[415](index=415&type=chunk) - The company has a Code of Business Conduct and Ethics applicable to all employees, officers, and directors, which is available on its investor relations website[411](index=411&type=chunk) [PART IV](index=97&type=section&id=PART%20IV) [Exhibits and Financial Statement Schedules](index=97&type=section&id=Item%2015.%20Exhibits%2C%20Financial%20Statement%20Schedules) This section lists Form 10-K exhibits, including consolidated financial statements, with schedules omitted as not required - The consolidated financial statements are included in Item 8. Financial statement schedules have been omitted as they are not required or the information is provided elsewhere[417](index=417&type=chunk) [Form 10-K Summary](index=102&type=section&id=Item%2016.%20Form%2010-K%20Summary) The company has not provided a summary for Form 10-K - None[424](index=424&type=chunk)

Our next question is from Joshua Reilly from Needham. Our next question is from Bryan Bergin from Cowen. Charles Rennick - VP, General Counsel & Corporate Secretary Justin Patterson - KeyBanc Capital Markets Bhavin Shah - Deutsche Bank Zack Ajzenman - Cowen and Company Thank you, Lauren, and good morning. Joining me today are Greg Strakosch, our Executive Chairman; Mike Cotoia, our CEO; and Dan Noreck, our CFO. Forward-looking statements involve a number of risks and uncertainties, including those discussed ...

TechTarget Inc. (NASDAQ:TTGT) Q3 2022 Results Conference Call November 9, 2022 5:00 PM ET Company Participants Charles Rennick - VP, General Counsel and Corporate Secretary Greg Strakosch - Co-Founder and Executive Chairman Mike Cotoia - CEO and Director Daniel Noreck - CFO and Treasurer Conference Call Participants Justin Patterson - KeyBanc Aaron Kessler - Raymond James Bhavin Shah - Deutsche Bank Max Michaelis - Lake Street Capital Greg Burns - Sidoti & Co Operator Good afternoon, and thank you for atten ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 1-33472 TECHTARGET, INC. (Exact name of registrant as specified in its charter) Delaware 04-3483216 (State or other jurisdiction of incorporation or organization) WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly p ...

TechTarget, Inc. (NASDAQ:TTGT) Q2 2022 Earnings Conference Call August 4, 2022 9:00 AM ET Company Participants Charlie Rennick - General Counsel Greg Strakosch - Executive Chairman Mike Cotoia - CEO Dan Noreck – CFO Conference Call Participants Justin Patterson - KeyBanc Aaron Kessler - Raymond James Jason Kreyer - Craig-Hallum Joshua Reilly - Needham & Co. Zach Ajzenman - Cowen Eric Martinuzzi - Lake Street Operator Good morning, and welcome to today's TechTarget Reports Second Quarter 2022 Conference Call ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 1-33472 TECHTARGET, INC. | Securities registered or to be registered pursuant to Section 12(b) of the Act. | | | | --- | --- | --- | | ...

Financial Data and Key Metrics Changes - GAAP revenue grew 29% to $68 million in Q1 2022 [6] - Adjusted EBITDA increased by 39% to $26.6 million [6] - Free cash flow was reported at $24 million, representing 35% of revenue [6] - The midpoint of the new higher annual guidance indicates a 20% revenue growth and a 40% adjusted EBITDA margin [6] Business Line Data and Key Metrics Changes - Long-term revenue grew 16% to $28.7 million, accounting for 41% of total revenue [6] - Priority Engine experienced a 20% growth, showing strong traction with smaller customers [16][18] Market Data and Key Metrics Changes - Growth was consistent across North America and international markets, with strength observed in all product lines [27] - Organic traffic remained strong, with mid-90% levels reported [58][59] Company Strategy and Development Direction - The company is focusing on integrating content strategies with its ESG offering to enhance customer engagement and sales effectiveness [15][39] - A new stock repurchase program of $50 million was announced, indicating confidence in the company's financial health [5] - The company is adapting to market trends by emphasizing quality data and ROI for customers, especially in a volatile economic environment [43][45] Management's Comments on Operating Environment and Future Outlook - Management noted that despite high inflation and interest rates, the enterprise IT market remains healthy and competitive [22][37] - There has been no significant impact from macroeconomic factors on bookings or revenue, with expectations for continued growth [35][36] - The company anticipates a shift in spending from branding solutions to demand generation as customers focus on ROI [39][45] Other Important Information - The company has repurchased 206,114 shares for approximately $14.2 million since the last earnings call [5] - The integration of Xtelligent into the healthcare IT market is progressing well, with operational efficiencies being realized [40] Q&A Session Summary Question: Changes in customer conversations regarding content to close model - Management discussed how the content to close model has improved customer engagement and sales strategies, emphasizing the importance of self-service access to relevant information [9][10] Question: Areas driving upside in guidance - Management indicated strength across all products and regions, attributing growth to modernization in sales and marketing departments and the shift to digital transformation [22][23] Question: Impact of macroeconomic factors on spending - Management confirmed no significant changes in spending patterns month-to-month, with strong bookings and revenue observed [35][36] Question: Trends in healthcare IT market and Xtelligent integration - Management reported positive operational efficiencies in the healthcare IT market and expressed excitement about the integration of Xtelligent [40] Question: Growth outlook for Priority Engine - Management projected a 20% growth for Priority Engine, emphasizing its role as a catalyst for other products [66] Question: Expected volume of activity on BrightTALK - Management highlighted new product introductions on BrightTALK and anticipated increased user engagement through various events and summits [71][73]

Financial Performance - For the three months ended March 31, 2022, total revenue was $68.165 million, a 29.1% increase from $52.969 million in the same period of 2021[31] - The company reported a net income of $7,164,000 for the three months ended March 31, 2022, compared to $1,810,000 for the same period in 2021, representing a year-over-year increase of approximately 296%[42] - Basic net income per common share for Q1 2022 was $0.24, up from $0.06 in Q1 2021, while diluted net income per common share was $0.23, also an increase from $0.06[42] - Total net sales for the three months ended March 31, 2022, were $68.165 million, up from $52.969 million in the same period in 2021, representing a year-over-year growth of approximately 29.1%[74] - Net sales in North America for the three months ended March 31, 2022, were $43.587 million, compared to $33.038 million in the same period in 2021, reflecting a growth of approximately 32%[74] Revenue Breakdown - North American revenue reached $43.587 million, up 32.1% from $33.038 million year-over-year, while international revenue increased by 23.3% to $24.578 million from $19.931 million[31] - Approximately 26% of the company's revenue for the three months ended March 31, 2022, was derived from customers with billing addresses outside of the United States[153] Assets and Investments - Cash and cash equivalents totaled $375.1 million as of March 31, 2022, compared to $361.6 million at December 31, 2021[36] - The fair value of short-term investments was $20.020 million as of March 31, 2022, with no significant changes from the previous period[34] - As of March 31, 2022, total short-term investments amounted to $20,020,000, a slight increase from $20,076,000 on December 31, 2021[37] - The company had cash and investments of $395.2 million as of March 31, 2022, held for working capital purposes[154] Liabilities and Debt - Contract liabilities increased to $37.707 million as of March 31, 2022, from $30.492 million at the end of 2021, reflecting billings of $75.380 million and revenue recognized of $68.165 million during the year-to-date period[33] - Contingent consideration liabilities decreased to $3.209 million as of March 31, 2022, from $7.979 million at December 31, 2021, due to payments and remeasurement[35] - The total interest expense recognized for the three months ended March 31, 2022, was $640,000, compared to $390,000 for the same period in 2021, reflecting a 64% increase[50] - The Company has a $75 million revolving credit facility under the 2021 Loan Agreement, with an interest rate of 2.98% as of March 31, 2022[51] Stock and Equity - The company issued $201.3 million in 0.0125% convertible senior notes due December 15, 2025, and $414 million in 0.0% convertible senior notes due December 15, 2026[43] - As of March 31, 2022, approximately $51 million of the 2025 Notes remain outstanding[43] - The fair value of the convertible senior notes was $450.1 million as of March 31, 2022, compared to a carrying value of $453.8 million[50] - The Company has 1,657,449 shares of common stock remaining subject to outstanding stock-based grants under the 2017 Plan as of March 31, 2022[62] - The company repurchased 4,614 shares for an aggregate purchase price of $0.3 million at an average share price of $69.91 during the three months ended March 31, 2022, under the May 2020 Repurchase Program[68] - The company has authorized a new stock repurchase program in May 2022, allowing for repurchases of up to $50.0 million in common stock[69] Expenses and Amortization - The company expects amortization expense of intangible assets to be $6,875,000 for the remainder of 2022 and $9,006,000 for 2023[41] - Amortization expense for the three months ended March 31, 2022, was $2.3 million, compared to $2.2 million for the same period in 2021[40] - The total lease expense for the three months ended March 31, 2022, was $1.15 million, slightly down from $1.22 million in the same period in 2021, indicating a 5.7% decrease[57] Tax and Compliance - The company recorded an income tax expense of $2.9 million for the three months ended March 31, 2022, an increase of approximately $2.2 million compared to the same period in 2021, primarily due to a $7.6 million increase in pretax income[72] - The company continues to assess collectability of accounts receivable, considering the impact of COVID-19 and market volatility on credit trends[25] - The company did not have any indications of impairment for goodwill or intangible assets as of March 31, 2022[39] - The Company did not have any pending claims or litigation that it expects would materially affect its financial position as of March 31, 2022[59] Accounting and Guidance - The company is evaluating the impact of new accounting guidance (ASU 2021-08) on its consolidated financial statements, effective for periods beginning after December 15, 2022[29] - The company has not assessed whether contracts have a significant financing component, as it expects the period between payment and service transfer to be one year or less[33] Other Financial Metrics - Long-lived assets as of March 31, 2022, totaled $322.350 million, a slight decrease from $326.183 million as of December 31, 2021[76] - The weighted-average remaining lease term for operating leases was 4.1 years as of March 31, 2022[58] - The company had $63.5 million of total unrecognized compensation expense related to stock options and restricted stock units, expected to be recognized over a weighted average period of 1.7 years[67] - As of March 31, 2022, the Company had 127,500 stock options outstanding with a weighted average exercise price of $26.72[65] - The company’s weighted average shares of common stock outstanding increased to 29,708,233 in Q1 2022 from 28,140,619 in Q1 2021[42]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to _________ Commission file number: 1-33472 TECHTARGET, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organizatio ...