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. | | | | --- | --- | --- | | ...

TechTarget, Inc. (NASDAQ:TTGT) Q1 2022 Results Conference Call May 10, 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 Bhavin Shah - Deutsche Bank Jason Kreyer - Craig-Hallum Joshua Reilly - Needham & Co. Eric Martinuzzi - Lake Street Bryan Bergin - Cowen Operator Hello, everyone, and welcome to the TechTarget First Quarter 2022 C ...

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, 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. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or orga ...

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 ...

Financial Data and Key Metrics Changes - TechTarget reported a strong performance in 2021 with over $100 million in adjusted EBITDA and a successful $400 million convertible debt offering completed in December [6] - The company provided annual guidance for 2022, expecting revenues between $300 million and $315 million and adjusted EBITDA between $120 million and $125 million [6][7] Business Line Data and Key Metrics Changes - Priority Engine revenues grew 20% year-over-year, representing about 25% of overall revenue [9] - Other products, particularly data-driven demand generation solutions, accounted for approximately 40% to 50% of overall revenue and are experiencing healthy growth [9][10] - The company noted strong growth across all product lines, driven by first-party data and privacy compliance [10][12] Market Data and Key Metrics Changes - The company observed a healthy IT environment and an acceleration in the migration of budgets from face-to-face to online platforms [6] - The international business is growing at a healthy rate, with ongoing investments in regions like EMEA, Singapore, and India [40] Company Strategy and Development Direction - TechTarget is focusing on integrating acquisitions and leveraging first-party data to enhance its product offerings [6][10] - The company is optimistic about future M&A opportunities, looking for complementary product lines and permission-based audiences [23] - The strategy includes a shift towards a mixed media approach, combining webinars and tech-based solutions to engage customers [20][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued growth despite economic uncertainties, noting that customers are still investing in intent-driven marketing solutions [45] - The company anticipates a balanced growth across all customer segments, with no signs of slowing down in spending [45][46] Other Important Information - The company plans to increase headcount by approximately 10% in 2022, focusing on product development, customer success, and sales [50][51] - The annual net revenue retention rate for 2021 was reported at 150%, with expectations for a more sustainable rate of around 120% moving forward [46][47] Q&A Session Summary Question: What are the key products driving revenue growth? - Management highlighted strong growth across all product lines, with Priority Engine being a significant contributor [9][12] Question: Can you discuss the sequential decline in Q1? - The decline is attributed to seasonality, which is consistent with previous years, and is expected to rebound in Q2 [15] Question: What are the cross-sell opportunities with BrightTALK? - The integration of BrightTALK is expected to enhance cross-selling opportunities due to complementary product offerings [20][21] Question: How does the company view future M&A opportunities? - Management remains optimistic about future M&A, focusing on relevant content and permission-based audiences [23] Question: What is the expected growth rate for Priority Engine in 2022? - The expected growth rate for Priority Engine is in the high teens to 20% range [41] Question: How is the company addressing international expansion? - The company is focusing on regions like EMEA and APJ, with plans to invest in sales and marketing to capture field marketing dollars [40] Question: What is the strategy for the new sales product? - The new sales product aims to penetrate a larger market by providing tailored solutions for both marketing and sales teams [29][33]

TechTarget, Inc. (NASDAQ:TTGT) Q3 2021 Earnings Conference Call November 3, 2021 5:00 PM ET Company Participants Charles Rennick – Vice President-General Counsel and Corporate Secretary Greg Strakosch – Executive Chairman Mike Cotoia – Chief Executive Officer Conference Call Participants Aaron Kessler – Raymond James Bhavin Shah – Deutsche Bank Joshua Reilly – Needham & Company Zack Ajzenman – Cowen Justin Patterson – KeyBanc Pinjalim Bora – JPMorgan Bruce Goldfarb – Lake Street Capital Operator Good aftern ...

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 September 30, 2021 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) Delaware 04-3483216 (State or other jurisdiction ...

TechTarget, Inc. (NASDAQ:TTGT) Q2 2021 Earnings Conference Call August 4, 2021 5:00 PM ET Company Participants Charlie Rennick - General Counsel Greg Strakosch - Executive Chairman Mike Cotoia - Chief Executive Officer Dan Noreck - Chief Financial Officer Conference Call Participants Aaron Kessler - Raymond James Joshua Reilly - Needham Zack Ajzenman - Cowen Greg Burns - Sidoti & Co Justin Patterson - KeyBanc Operator Good day and welcome to the TechTarget Second Quarter 2021 Earnings Release Conference Cal ...

[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section presents the company's unaudited consolidated financial statements, management's discussion and analysis, market risk disclosures, and controls and procedures [Item 1. Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(unaudited)) Presents unaudited consolidated financial statements and detailed notes on accounting policies, revenue, debt, leases, and acquisitions [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) The company's balance sheet as of June 30, 2021, shows an increase in total assets, primarily driven by higher cash and goodwill, while total liabilities also rose due to increased convertible debt and contract liabilities, with stockholders' equity slightly decreasing | Metric (in thousands) | June 30, 2021 | December 31, 2020 | Change | | :-------------------- | :------------ | :---------------- | :----- | | **Assets** | | | | | Cash | $109,038 | $82,616 | +$26,422 | | Total current assets | $153,402 | $127,763 | +$25,639 | | Goodwill | $182,222 | $179,118 | +$3,104 | | Intangible assets, net| $105,441 | $108,872 | -$3,431 | | Total assets | $482,218 | $456,568 | +$25,650 | | **Liabilities** | | | | | Total current liabilities | $52,294 | $46,418 | +$5,876 | | Convertible debt | $195,303 | $153,882 | +$41,421 | | Total liabilities | $288,386 | $254,062 | +$34,324 | | **Stockholders' Equity**| | | | | Total stockholders' equity | $193,832 | $202,506 | -$8,674 | [7](index=7&type=chunk) [Consolidated Statements of Income and Comprehensive Income](index=4&type=section&id=Consolidated%20Statements%20of%20Income%20and%20Comprehensive%20Income) Q2 2021 revenue grew 83% with gross profit up 76%, but net income increased only 7% due to higher operating expenses and tax provision | Metric (in thousands) | Q2 2021 | Q2 2020 | YoY Change (%) | YTD 2021 | YTD 2020 | YoY Change (%) | | :-------------------- | :------ | :------ | :------------- | :------- | :------- | :------------- | | Revenue | $63,711 | $34,796 | 83% | $116,680 | $66,212 | 76% | | Gross profit | $45,821 | $26,011 | 76% | $82,857 | $49,276 | 68% | | Operating income | $11,934 | $6,875 | 74% | $15,155 | $10,459 | 45% | | Net income | $5,120 | $4,773 | 7% | $6,930 | $6,980 | -1% | | Basic EPS | $0.18 | $0.17 | 6% | $0.25 | $0.25 | 0% | | Diluted EPS | $0.17 | $0.17 | 0% | $0.24 | $0.25 | -4% | | Provision for income taxes | $6,328 | $2,092 | 202% | $7,043 | $3,000 | 135% | [9](index=9&type=chunk) [Consolidated Statements of Stockholders' Equity](index=5&type=section&id=Consolidated%20Statements%20of%20Stockholders'%20Equity) Stockholders' equity decreased from **$202.5 million** at December 31, 2020, to **$193.8 million** at June 30, 2021, primarily due to a reclassification from ASU 2020-06 adoption | Metric (in thousands) | December 31, 2020 | June 30, 2021 | Change | | :-------------------- | :---------------- | :------------ | :----- | | Common Stock | $56 | $56 | $0 | | Treasury Stock | $(199,796) | $(199,796) | $0 | | Additional Paid-In Capital | $363,055 | $345,609 | $(17,446) | | Accumulated Other Comprehensive Income | $1,611 | $3,220 | +$1,609 | | Retained Earnings | $37,580 | $44,743 | +$7,163 | | Total Stockholders' Equity | $202,506 | $193,832 | $(8,674) | [10](index=10&type=chunk) - Reclassification due to ASU 2020-06 adoption reduced Additional Paid-in Capital by **$30.5 million** and increased Retained Earnings by **$233 thousand**[10](index=10&type=chunk)[40](index=40&type=chunk) [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2021, net cash provided by operating activities significantly increased to **$33.9 million**, driven by higher net income and working capital changes, while investing and financing activities used less cash | Cash Flow Activity (in thousands) | YTD June 30, 2021 | YTD June 30, 2020 | Change | | :-------------------------------- | :---------------- | :---------------- | :----- | | Net cash provided by operating activities | $33,881 | $21,841 | +$12,040 | | Net cash used in investing activities | $(6,225) | $(8,424) | +$2,199 | | Net cash used in financing activities | $(1,415) | $(15,517) | +$14,102 | | Net increase (decrease) in cash | $26,422 | $(2,097) | +$28,519 | | Cash at end of period | $109,038 | $50,390 | +$58,648 | [15](index=15&type=chunk) - The increase in operating cash flow was primarily due to changes in working capital (driven by increases in contract liabilities) and higher stock-based compensation charged to earnings[170](index=170&type=chunk) - Investing activities in 2021 were mainly for property and equipment (**$6.2 million**), while 2020 included a **$5.0 million** acquisition[171](index=171&type=chunk) [Notes to Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Provides detailed disclosures for financial statements, covering accounting policies, revenue, assets, debt, equity, taxes, and acquisitions [Note 1. Organization and Operations](index=8&type=section&id=1.%20Organization%20and%20Operations) TechTarget, Inc. is a global data and analytics leader and software provider for purchase intent-driven marketing and sales data for enterprise technology vendors, operating a network of approximately 140 websites and 1,151 webinars/virtual event channels - TechTarget is a global data and analytics leader and software provider for purchase intent-driven marketing and sales data for enterprise technology vendors[17](index=17&type=chunk) - The company operates a network of approximately **140 websites** and **1,151 webinars** and virtual event channels, categorized into key market opportunities like Security, Networking, Storage, Data Center, CIO/IT Strategy, Business Applications and Analytics, Application Architecture and Development, and ANCL Channel[17](index=17&type=chunk) [Note 2. Summary of Significant Accounting Policies](index=8&type=section&id=2.%20Summary%20of%20Significant%20Accounting%20Policies) Outlines significant accounting policies, including consolidation, revenue recognition, and the impact of ASU 2020-06 on convertible debt accounting - The company adopted ASU 2020-06 effective January 1, 2021, using the modified retrospective method, which reclassified the equity component of convertible notes into the debt component[39](index=39&type=chunk)[40](index=40&type=chunk) | Impact of ASU 2020-06 Adoption (in thousands) | December 31, 2020 | January 1, 2021 | Change | | :-------------------------------------------- | :---------------- | :-------------- | :----- | | Convertible Debt | $153,882 | $194,649 | +$40,767 | | Additional Paid-in Capital | $363,055 | $332,555 | $(30,500) | | Retained Earnings | $37,580 | $37,813 | +$233 | | Deferred Tax Liabilities | $23,848 | $13,348 | $(10,500) | [40](index=40&type=chunk) - Other recently adopted ASUs (2017-04, 2018-15, 2016-03, 2018-13, 2019-12) did not have a material impact on the consolidated financial statements[33](index=33&type=chunk)[35](index=35&type=chunk)[36](index=36&type=chunk) [Note 3. Revenue](index=12&type=section&id=3.%20Revenue) Revenue is disaggregated by North America and International regions, showing significant growth in both, with contract liabilities increasing from **$15.7 million** to **$27.9 million** | Revenue Disaggregation (in thousands) | Q2 2021 | Q2 2020 | YoY Change (%) | YTD 2021 | YTD 2020 | YoY Change (%) | | :------------------------------------ | :------ | :------ | :------------- | :------- | :------- | :------------- | | North America | $39,416 | $21,106 | 87% | $72,454 | $40,855 | 77% | | International | $24,295 | $13,690 | 77% | $44,226 | $25,357 | 74% | | Total Revenue | $63,711 | $34,796 | 83% | $116,680 | $66,212 | 76% | [42](index=42&type=chunk) | Contract Liabilities (in thousands) | Amount | | :---------------------------------- | :----- | | Balance at December 31, 2020 | $15,689 | | Billings (YTD June 30, 2021) | $128,845 | | Revenue Recognized (YTD June 30, 2021) | $(116,680) | | Balance at June 30, 2021 | $27,854 | [43](index=43&type=chunk)[44](index=44&type=chunk) [Note 4. Fair Value Measurements](index=13&type=section&id=4.%20Fair%20Value%20Measurements) Financial assets and liabilities are measured at fair value, with contingent consideration liabilities decreasing from **$2.78 million** to **$2.24 million** | Fair Value Measurements (in thousands) | June 30, 2021 | December 31, 2020 | | :------------------------------------- | :------------ | :---------------- | | Short-term investments (Level 2) | $84 | $84 | | Contingent consideration - current (Level 3) | $2,237 | $1,027 | | Contingent consideration - non-current (Level 3) | — | $1,751 | | Total contingent consideration | $2,237 | $2,778 | [46](index=46&type=chunk) - Contingent consideration liabilities are measured using the income approach and discounted cash flow method, utilizing significant Level 3 (unobservable) inputs such as discount rates and probability measures[48](index=48&type=chunk)[102](index=102&type=chunk) [Note 5. Cash and Investments](index=14&type=section&id=5.%20Cash%20and%20Investments) Cash balance increased from **$82.6 million** at December 31, 2020, to **$109.0 million** at June 30, 2021, while short-term investments remained stable at **$84 thousand** | Metric (in thousands) | June 30, 2021 | December 31, 2020 | Change | | :-------------------- | :------------ | :---------------- | :----- | | Cash | $109,038 | $82,616 | +$26,422 | | Short-term investments | $84 | $84 | $0 | [50](index=50&type=chunk)[51](index=51&type=chunk) [Note 6. Goodwill and Intangible Assets](index=15&type=section&id=6.%20Goodwill%20and%20Intangible%20Assets) Total intangible assets, net, decreased from **$108.9 million** to **$105.4 million** due to amortization, while goodwill increased by **$3.1 million** with no impairment indications | Intangible Assets (in thousands) | June 30, 2021 | December 31, 2020 | | :------------------------------- | :------------ | :---------------- | | Customer, affiliate, advertiser relationships | $69,697 | $71,688 | | Developed websites, technology and patents | $30,026 | $31,220 | | Trademark, trade name and domain name | $5,579 | $5,788 | | Proprietary user information database and internet traffic | — | — | | Non-compete agreements | $139 | $176 | | Total intangible assets, net | $105,441 | $108,872 | [52](index=52&type=chunk) - Amortization expense for intangible assets was **$4.3 million** for the six months ended June 30, 2021, significantly up from **$0.1 million** in the prior year, mainly due to 2020 acquisitions[52](index=52&type=chunk) - Goodwill increased by **$3.1 million** from December 31, 2020, to June 30, 2021, with no indications of impairment[7](index=7&type=chunk)[54](index=54&type=chunk) [Note 7. Net Income Per Common Share](index=16&type=section&id=7.%20Net%20Income%20Per%20Common%20Share) Basic net income per common share for Q2 2021 was **$0.18** (up from **$0.17**), and diluted EPS was **$0.17** (unchanged), with diluted shares outstanding increasing due to the convertible bond | Metric | Q2 2021 | Q2 2020 | YTD 2021 | YTD 2020 | | :-------------------- | :------ | :------ | :------- | :------- | | Net income (in thousands) | $5,120 | $4,773 | $6,930 | $6,980 | | Basic EPS | $0.18 | $0.17 | $0.25 | $0.25 | | Diluted EPS | $0.17 | $0.17 | $0.24 | $0.25 | | Basic Weighted Average Shares | 28,152,210 | 27,532,786 | 28,146,414 | 27,768,224 | | Diluted Weighted Average Shares | 32,144,239 | 28,162,913 | 32,121,463 | 28,304,068 | [55](index=55&type=chunk) - Diluted weighted average shares outstanding for the three and six months ended June 30, 2021, include **2.9 million shares** related to the if-converted basis of the convertible bond[55](index=55&type=chunk) [Note 8. Convertible Debt and Loan Agreement](index=16&type=section&id=8.%20Convertible%20Debt%20and%20Loan%20Agreement) The company issued **$201.3 million** in 0.125% convertible senior notes due December 15, 2025, with the net carrying amount increasing to **$195.3 million** following ASU 2020-06 adoption, and the previous **$25 million** term loan facility was paid in full - Issued **$201.3 million** in **0.125%** convertible senior notes due December 15, 2025, in December 2020[56](index=56&type=chunk) | Convertible Debt (in thousands) | June 30, 2021 | December 31, 2020 | | :------------------------------ | :------------ | :---------------- | | Principal | $201,250 | $201,250 | | Less: debt discount, net | $5,947 | $47,368 | | Net carrying amount | $195,303 | $153,882 | | Fair Value | $254,259 | $218,940 | [66](index=66&type=chunk)[67](index=67&type=chunk) - The **$25 million** term loan facility with Western Alliance Bank was paid in full in December 2020[68](index=68&type=chunk)[181](index=181&type=chunk) [Note 9. Leases and Contingencies](index=18&type=section&id=9.%20Leases%20and%20Contingencies) The company operates under non-cancelable operating lease agreements, primarily for office facilities, with operating lease liabilities totaling **$27.1 million** at June 30, 2021, and total lease expense for the six months ended June 30, 2021, at **$2.4 million** | Operating Lease Liabilities (in thousands) | June 30, 2021 | | :----------------------------------------- | :------------ | | Total future minimum lease payments | $30,801 | | Less imputed interest | $3,662 | | Total operating lease liabilities | $27,139 | | Current operating lease liabilities | $3,657 | | Non-current operating lease liabilities | $23,482 | [76](index=76&type=chunk) | Lease Expense (in thousands) | Q2 2021 | Q2 2020 | YTD 2021 | YTD 2020 | | :--------------------------- | :------ | :------ | :------- | :------- | | Operating lease expense | $1,111 | $946 | $2,253 | $1,893 | | Short-term lease expense | $66 | $26 | $142 | $54 | | Total lease expense | $1,177 | $972 | $2,395 | $1,947 | [76](index=76&type=chunk) - No material pending claims, charges, or litigation as of June 30, 2021[78](index=78&type=chunk)[196](index=196&type=chunk) [Note 10. Stock-Based Compensation](index=20&type=section&id=10.%20Stock-Based%20Compensation) The company has stock option and incentive plans for equity awards, with **$30.9 million** of total unrecognized compensation expense related to stock options and restricted stock units as of June 30, 2021 - As of June 30, 2021, there was **$30.9 million** of total unrecognized compensation expense related to stock options and restricted stock units, expected to be recognized over a weighted average period of **1.5 years**[87](index=87&type=chunk) | Restricted Stock Unit Activity (Shares) | December 31, 2020 | June 30, 2021 | | :-------------------------------------- | :---------------- | :------------ | | Nonvested outstanding | 1,478,000 | 1,507,350 | | Granted (YTD 2021) | — | 64,152 | | Vested (YTD 2021) | — | (34,802) | [86](index=86&type=chunk) [Note 11. Stockholders' Equity](index=22&type=section&id=11.%20Stockholders'%20Equity) The company terminated its November 2018 Stock Repurchase Program and authorized a new **$25.0 million** May 2020 Repurchase Program, under which no shares have been repurchased as of June 30, 2021, with **5,538,711 shares** reserved for equity awards and **4,000,186 shares** for convertible notes - The November 2018 Stock Repurchase Program was terminated in May 2020, having repurchased **736,760 shares** for **$14.8 million** in 2020[89](index=89&type=chunk)[173](index=173&type=chunk) - A new **$25.0 million** May 2020 Repurchase Program was authorized, but no shares have been repurchased under this plan as of June 30, 2021[90](index=90&type=chunk)[175](index=175&type=chunk) - As of June 30, 2021, **5,538,711 shares** of common stock were reserved for outstanding options, unvested restricted stock units, and future awards, and **4,000,186 shares** were reserved for the conversion of notes[92](index=92&type=chunk) [Note 12. Income Taxes](index=22&type=section&id=12.%20Income%20Taxes) The company recorded income tax expense of **$6.3 million** for Q2 2021 and **$7.0 million** for YTD 2021, with the Q2 expense increasing by approximately **$3.2 million** due to a UK corporate tax rate increase | Income Tax Expense (in thousands) | Q2 2021 | Q2 2020 | YTD 2021 | YTD 2020 | | :-------------------------------- | :------ | :------ | :------- | :------- | | Provision for income taxes | $6,328 | $2,092 | $7,043 | $3,000 | [93](index=93&type=chunk) - The Q2 2021 tax expense increased by approximately **$3.2 million** due to the UK corporate tax rate increase from **19% to 25%**, effective April 1, 2023, which impacted deferred tax assets and liabilities[93](index=93&type=chunk) [Note 13. Segment Information](index=22&type=section&id=13.%20Segment%20Information) The company operates as a single operating segment providing purchase intent marketing and sales services, with revenue disaggregated by campaign target area and customer billing address, and long-lived assets primarily in the United States and United Kingdom - The company operates as one operating segment: providing purchase intent marketing and sales services[94](index=94&type=chunk) | Net Sales by Campaign Target Area (in thousands) | Q2 2021 | Q2 2020 | YTD 2021 | YTD 2020 | | :----------------------------------------------- | :------ | :------ | :------- | :------- | | North America | $39,416 | $21,106 | $72,454 | $40,855 | | International | $24,295 | $13,690 | $44,226 | $25,357 | | Total | $63,711 | $34,796 | $116,680 | $66,212 | [95](index=95&type=chunk) | Long-Lived Assets by Geographic Area (in thousands) | June 30, 2021 | December 31, 2020 | | :-------------------------------------------------- | :------------ | :---------------- | | United States | $197,778 | $195,424 | | International | $106,338 | $106,227 | | Total | $304,116 | $301,651 | [98](index=98&type=chunk) [Note 14. Acquisitions and Subsequent Events](index=23&type=section&id=14.%20Acquisitions%20and%20Subsequent%20Events) In December 2020, the company acquired BrightTALK Limited for approximately **$151.0 million** in cash, and subsequently acquired a healthcare B2B media company in July 2021 for **$25.0 million** cash and **$5.0 million** contingent consideration - Acquired BrightTALK Limited in December 2020 for approximately **$151.0 million** in cash, integrating its webinar and virtual event platform[99](index=99&type=chunk) | BrightTALK Preliminary Purchase Price Allocation (in thousands) | December 23, 2020 | June 30, 2021 | | :------------------------------------------------------------ | :---------------- | :------------ | | Net Assets acquired | $150,847 | $150,847 | | Goodwill | $71,846 | $74,406 | | Intangible assets | $90,370 | $90,370 | [102](index=102&type=chunk) - In July 2021, the company acquired a healthcare business-to-business media company for **$25.0 million** in cash and **$5.0 million** in contingent consideration[104](index=104&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial condition, operating results, revenue growth, acquisitions, business trends, liquidity, and critical accounting policies [Overview](index=25&type=section&id=Overview) TechTarget is a global leader in purchase intent-driven marketing and sales data for B2B technology companies, helping them identify, reach, and influence IT decision-makers, with a growing audience of **27.6 million** registered members and users - TechTarget provides purchase intent-driven marketing and sales data and content curation/creation services for B2B technology companies[107](index=107&type=chunk) - The company's audience of registered members and users grew to approximately **27.6 million** as of June 30, 2021, up from **20.5 million** in 2020, with **6.1 million** added from the BrightTALK acquisition[109](index=109&type=chunk) - The company anticipates delivering purchase intent-driven marketing and sales data programs to over **2,000 customers** in 2021[110](index=110&type=chunk) [COVID-19 Business Update](index=25&type=section&id=COVID-19%20Business%20Update) The COVID-19 pandemic created macroeconomic uncertainty, shifting customer purchasing decisions towards shorter-duration contracts and negatively impacting new customer acquisition for longer-term contracts, while accelerating international revenue due to a shift to online platforms - COVID-19 led customers to focus on shorter duration contracts and negatively impacted the ability to attract new customers to longer-term contracts (over **270 days**)[111](index=111&type=chunk) - The company experienced an acceleration of international revenue as customers shifted from face-to-face events to online platforms due to COVID-19[119](index=119&type=chunk) [Executive Summary & Financial Results](index=26&type=section&id=Executive%20Summary) For the six months ended June 30, 2021, revenue increased by **76%** to **$116.7 million**, significantly boosted by acquisitions and increased customer demand for data-driven marketing products, with Priority Engine™ revenue growing **14%** | Metric (in millions) | YTD June 30, 2021 | YTD June 30, 2020 | YoY Change (%) | | :------------------- | :---------------- | :---------------- | :------------- | | Revenue | $116.7 | $66.2 | 76% | | Priority Engine™ Revenue | $28.4 | $25.0 | 14% | [115](index=115&type=chunk) - Revenue from longer-term contracts (over **270 days**) increased by **121%** in Q2 2021 compared to Q2 2020, significantly impacted by acquisitions[115](index=115&type=chunk) - International geo-targeted revenue increased over **77%** for Q2 2021 compared to the prior year[117](index=117&type=chunk) [Business Trends](index=26&type=section&id=Business%20Trends) IT spending is expected to be positive, driven by catalysts like AI and cloud migrations, while Brexit introduces regulatory challenges, and privacy regulations necessitate evaluating data transfer mechanisms, with legacy global customer revenue growing **61%** and other customers **101%** in Q2 2021 - IT spending is expected to be positive, driven by catalysts such as AI, security, data analytics, and cloud migrations[119](index=119&type=chunk) - Brexit could lead to new regulatory costs and challenges, with UK customer revenue accounting for approximately **14%** of total revenue in Q2 2021[120](index=120&type=chunk) - The invalidation of the EU-US Privacy Shield Framework requires the company to evaluate additional mechanisms for personal data transfer[120](index=120&type=chunk) | Customer Revenue Growth (Q2 2021 vs Q2 2020) | Growth (%) | | :------------------------------------------- | :--------- | | Legacy global customers | 61% | | Other customers (excluding legacy global) | 101% | [120](index=120&type=chunk) [Key Strategic Initiatives](index=27&type=section&id=Key%20Strategic%20Initiatives) The company's strategic initiatives focus on leveraging purchase intent data, including integrating BrightTALK data into Priority Engine™ and expanding its reach to the SMB market through Priority Engine™ Express, while also improving connectivity, ROI metrics, and attribution - Integrate purchase intent data acquired through BrightTALK into the Priority Engine™ offering[120](index=120&type=chunk) - Expand the market reach of purchase intent data to companies in the SMB market through Priority Engine™ Express[120](index=120&type=chunk) - Focus on improving connectivity, ROI metrics, and attribution for product offerings[120](index=120&type=chunk) [Revenue Analysis](index=28&type=section&id=Revenue) Total revenue increased by **83%** for Q2 2021 and **76%** for YTD 2021, with strong growth in both North America and International regions, and longer-term contracts accounting for approximately **40%** of Q2 2021 revenue | Revenue (in thousands) | Q2 2021 | Q2 2020 | YoY Change (%) | YTD 2021 | YTD 2020 | YoY Change (%) | | :--------------------- | :------ | :------ | :------------- | :------- | :------- | :------------- | | North America | $39,416 | $21,106 | 87% | $72,454 | $40,855 | 77% | | International | $24,295 | $13,690 | 77% | $44,226 | $25,357 | 74% | | Total | $63,711 | $34,796 | 83% | $116,680 | $66,212 | 76% | [122](index=122&type=chunk) - Approximately **40%** of revenue in Q2 2021 was derived from longer-term contracts (typically less than nine months, but longer-term contracts started in 2016)[122](index=122&type=chunk) [Product and Service Offerings](index=28&type=section&id=Product%20and%20Service%20Offerings) The company offers a comprehensive suite of products and services to B2B technology companies, including IT Deal Alert™ for purchase intent data, Channel Offerings for webinars, Demand Solutions for content marketing, Brand Solutions for targeted audience exposure, and Custom Content Creation - **IT Deal Alert™:** A suite of data and services (Priority Engine™, Qualified Sales Opportunities™, Deal Data™) leveraging purchase intent data to identify and prioritize "in-market" prospects[123](index=123&type=chunk) - **Channel Offerings:** Provides customers with a platform for unlimited live webinars and videos to an unlimited audience[123](index=123&type=chunk) - **Demand Solutions:** Content marketing programs (white papers, webcasts, podcasts, webinars, virtual trade shows, content sponsorships) and display advertising to generate demand and influence buyers[123](index=123&type=chunk) - **Brand Solutions:** Offers direct exposure to targeted audiences through on-network branding, off-network branding, and microsites[123](index=123&type=chunk) - **Custom Content Creation:** Development of white papers, case studies, webcasts, or videos tailored to customer specifications[124](index=124&type=chunk) [Cost of Revenue, Operating Expenses, and Other](index=29&type=section&id=Cost%20of%20Revenue,%20Operating%20Expenses,%20and%20Other) This section defines the components of cost of revenue and various operating expense categories, including selling and marketing, product development, general and administrative, depreciation, amortization, and interest and other income (expense), net, with personnel-related costs being a significant component across most categories - **Cost of Revenue:** Primarily includes salaries, member acquisition, freelance writer expenses, website hosting, vendor expenses for content delivery, stock-based compensation, and facility expenses[126](index=126&type=chunk) - **Selling and Marketing:** Comprises salaries, sales commissions, travel, stock-based compensation, and facility expenses[127](index=127&type=chunk) - **Product Development:** Includes salaries, stock-based compensation, and facility expenses related to website creation/maintenance and technical infrastructure[128](index=128&type=chunk) - **General and Administrative:** Consists of salaries, facility expenses, accounting/legal/professional fees, and stock-based compensation[129](index=129&type=chunk) - **Depreciation and Amortization:** Depreciation for property/equipment (**3-12 years** useful life); amortization for intangible assets from acquisitions (**18 months to 19 years** useful life)[130](index=130&type=chunk) - **Interest and Other Income (Expense), Net:** Primarily interest costs and amortization of debt issuance costs on convertible notes, less interest income, and non-operating foreign currency gains/losses[131](index=131&type=chunk) [Non-GAAP Financial Measure (Adjusted Revenue)](index=29&type=section&id=Non-GAAP%20Financial%20Measure) The company uses Adjusted Revenue, a non-GAAP measure, to evaluate operating performance by adding back the impact of fair value adjustments to acquired unearned revenue, with Q2 2021 Adjusted Revenue at **$67.0 million** (92% increase YoY) and YTD 2021 at **$125.0 million** (89% increase YoY) - Adjusted Revenue is defined as GAAP revenue plus the impact of fair value adjustments to acquired unearned revenue related to services billed by an acquired company prior to its acquisition[135](index=135&type=chunk) | Metric (in thousands) | Q2 2021 | Q2 2020 | YTD 2021 | YTD 2020 | | :-------------------- | :------ | :------ | :------- | :------- | | Revenue | $63,711 | $34,796 | $116,680 | $66,212 | | Impact of fair value adjustment on acquired unearned revenue | $3,271 | — | $8,296 | — | | Adjusted Revenue | $66,982 | $34,796 | $124,976 | $66,212 | | Adjusted revenue percentage change | 92% | — | 89% | — | [136](index=136&type=chunk) [Application of Critical Accounting Policies and Use of Estimates](index=30&type=section&id=Application%20of%20Critical%20Accounting%20Policies%20and%20Use%20of%20Estimates) The preparation of financial statements requires management to make continuous estimates and assumptions, with no material changes to critical accounting policies and estimates occurring during the first six months of 2021, other than those noted in Note 2 - No material changes to critical accounting policies and estimates during the first six months of 2021, other than those related to ASU 2020-06 adoption[138](index=138&type=chunk) [Income Taxes](index=30&type=section&id=Income%20Taxes) The company uses estimates for its income tax provision, recognizing deferred tax assets and liabilities based on temporary differences, with the Q2 2021 tax expense impacted by the UK corporate tax rate change from **19% to 25%**, effective April 1, 2023 - The UK corporate tax rate change from **19% to 25%**, effective April 1, 2023, was enacted in June 2021, impacting the value of deferred tax assets and liabilities[140](index=140&type=chunk) [Results of Operations - Comparison of Three Months Ended June 30, 2021 and June 30, 2020](index=31&type=section&id=Results%20of%20Operations%20-%20Comparison%20of%20Three%20Months%20Ended%20June%2030,%202021%20and%20June%2030,%202020) Q2 2021 revenue grew **83%** to **$63.7 million**, with gross profit up **76%**, but operating expenses and income tax provision significantly increased due to acquisitions and tax rate changes | Metric (in thousands) | Q2 2021 | Q2 2020 | YoY Change (%) | | :-------------------- | :------ | :------ | :------------- | | Revenue | $63,711 | $34,796 | 83% | | Cost of revenue | $17,114 | $8,785 | 95% | | Gross profit | $45,821 | $26,011 | 76% | | Gross profit percentage | 72% | 75% | -3% pts | | Selling and marketing | $22,099 | $12,570 | 76% | | Product development | $2,534 | $1,846 | 37% | | General and administrative | $6,208 | $3,267 | 90% | | Depreciation | $1,388 | $1,171 | 19% | | Amortization | $1,658 | $282 | 488% | | Total operating expenses | $33,887 | $19,136 | 77% | | Interest and other expense, net | $(486) | $(10) | 4760% | | Provision for income taxes | $6,328 | $2,092 | 202% | [142](index=142&type=chunk)[144](index=144&type=chunk)[145](index=145&type=chunk) - Gross profit was negatively impacted by **$0.8 million** due to amortization of intangibles related to BrightTALK technology acquisition[145](index=145&type=chunk) - Selling and marketing expenses increased due to December 2020 acquisitions and a **$1.4 million** increase in stock-based compensation[147](index=147&type=chunk) [Results of Operations - Comparison of Six Months Ended June 30, 2021 and June 30, 2020](index=33&type=section&id=Results%20of%20Operations%20-%20Comparison%20of%20Six%20Months%20Ended%20June%2030,%202021%20and%20June%2030,%202020) YTD 2021 revenue grew **76%** to **$116.7 million**, with gross profit up **68%**, but operating expenses and income tax provision significantly increased due to acquisitions and tax rate changes | Metric (in thousands) | YTD 2021 | YTD 2020 | YoY Change (%) | | :-------------------- | :------- | :------- | :------------- | | Revenue | $116,680 | $66,212 | 76% | | Cost of revenue | $32,282 | $16,936 | 91% | | Gross profit | $82,857 | $49,276 | 68% | | Gross profit percentage | 71% | 74% | -3% pts | | Selling and marketing | $43,705 | $25,519 | 71% | | Product development | $5,457 | $3,878 | 41% | | General and administrative | $12,643 | $6,622 | 91% | | Depreciation | $2,609 | $2,357 | 11% | | Amortization | $3,288 | $441 | 646% | | Total operating expenses | $67,702 | $38,817 | 74% | | Interest and other expense, net | $(1,182) | $(479) | 147% | | Provision for income taxes | $7,043 | $3,000 | 135% | [142](index=142&type=chunk)[153](index=153&type=chunk)[154](index=154&type=chunk) - Gross profit was negatively impacted by **$1.5 million** due to amortization of intangibles related to BrightTALK technology acquisition[154](index=154&type=chunk) - Selling and marketing expenses increased due to December 2020 acquisitions and a **$2.8 million** increase in stock-based compensation[155](index=155&type=chunk) [Seasonality](index=34&type=section&id=Seasonality) The company's revenue is affected by seasonal factors, including annual budget approvals, new product launches, and decreased advertising in summer months, while personnel-related expenses do not experience significant seasonal fluctuations - Revenue seasonality is influenced by customers' annual budget approval processes, timing of new product introductions, and historical decrease in advertising during summer months[162](index=162&type=chunk) - The majority of expenses are personnel-related and do not experience significant seasonal fluctuations[163](index=163&type=chunk) [Liquidity and Capital Resources](index=34&type=section&id=Liquidity%20and%20Capital%20Resources) Cash and investments increased to **$109.1 million**, driven by operating activities, while DSO improved to **54 days**, and the company maintains a **$25.0 million** stock repurchase program and **$201.3 million** in convertible notes | Metric (in millions) | June 30, 2021 | December 31, 2020 | Change | | :------------------- | :------------ | :---------------- | :----- | | Cash and investments | $109.1 | $82.7 | +$26.4 | [165](index=165&type=chunk) - Days Sales Outstanding (DSO) improved to **54 days** at June 30, 2021, from **57 days** at December 31, 2020[167](index=167&type=chunk) | Cash Flow Activities (in millions) | YTD June 30, 2021 | YTD June 30, 2020 | | :--------------------------------- | :---------------- | :---------------- | | Net cash provided by operating activities | $33.9 | $21.8 | | Net cash used in investing activities | $(6.2) | $(8.4) | | Net cash used in financing activities | $(1.4) | $(15.5) | [168](index=168&type=chunk) [Forward-Looking Statements](index=37&type=section&id=Forward-Looking%20Statements) This section serves as a disclaimer, stating that the report contains forward-looking statements about future activities, events, or developments, which are not guarantees of future performance and involve risks and uncertainties - Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that could cause actual results to differ materially[187](index=187&type=chunk) - Key risks include market acceptance of products, customer/partner/employee relationships, COVID-19 duration, integration of acquired businesses, economic/regulatory changes, and data privacy laws[187](index=187&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=38&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section discusses the company's exposure to market risks, primarily from foreign currency exchange rates and interest rates, detailing international revenue contribution and the short-term nature of investments [Foreign Currency Exchange Risk](index=38&type=section&id=Foreign%20Currency%20Exchange%20Risk) The company has foreign subsidiaries and derived approximately **29%** of its YTD 2021 revenue from international customers, increasing exposure to exchange rate fluctuations, though current exposure is deemed immaterial - Approximately **29%** of revenue for the six months ended June 30, 2021, was derived from customers with billing addresses outside the United States[190](index=190&type=chunk) - The company currently believes its exposure to foreign currency exchange rate fluctuations is financially immaterial and has not entered into hedging transactions, but may consider them in the future[190](index=190&type=chunk) [Interest Rate Risk](index=38&type=section&id=Interest%20Rate%20Risk) The company's market risk exposure to interest rates is primarily related to its cash and investments of **$109.1 million**, but due to the short-term nature of these investments, there is no material exposure to fair value changes from interest rate increases - Cash and investments totaled **$109.1 million** at June 30, 2021, held for working capital purposes, primarily in a bond fund[191](index=191&type=chunk) - Due to the short-term nature of investments, the company believes it has no material exposure to fair value changes from interest rate increases, but declines would reduce investment income[191](index=191&type=chunk) [Item 4. Controls and Procedures](index=38&type=section&id=Item%204.%20Controls%20and%20Procedures) This section confirms the effectiveness of the company's disclosure controls and procedures and notes the ongoing integration of controls for the recently acquired BrightTALK Limited, with no other material changes to internal control over financial reporting [Disclosure Controls and Procedures](index=38&type=section&id=Disclosure%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective at the reasonable assurance level as of June 30, 2021 - Disclosure controls and procedures were effective at the reasonable assurance level as of June 30, 2021[193](index=193&type=chunk) [Changes in Internal Control over Financial Reporting](index=38&type=section&id=Changes%20in%20Internal%20Control%20over%20Financial%20Reporting) The company is integrating controls and related procedures for BrightTALK Limited, acquired in Q4 2020, with no other material changes in internal control over financial reporting identified during Q2 2021 - The company is integrating controls and related procedures for BrightTALK Limited, acquired in Q4 2020[194](index=194&type=chunk) - No other material changes in internal control over financial reporting were identified during Q2 2021[194](index=194&type=chunk) [PART II. OTHER INFORMATION](index=39&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section covers legal proceedings, risk factors, exhibits, and the official signatures for the report [Item 1. Legal Proceedings](index=39&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently a party to any material legal proceedings and is unaware of any pending or threatened litigation that could have a material adverse effect on its business, operating results, or financial condition - No material legal proceedings are currently pending or threatened against the company[196](index=196&type=chunk) [Item 1A. Risk Factors](index=39&type=section&id=Item%201A.%20Risk%20Factors) The company's business is subject to various risks, as identified in Item 1A, "Risk Factors" of its 2020 Annual Report on Form 10-K, which could materially affect its business, results of operations, financial condition, and/or liquidity - Business risks are identified in Item 1A, "Risk Factors" of the 2020 Annual Report on Form 10-K[197](index=197&type=chunk) [Item 6. Exhibits](index=40&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed as part of this Quarterly Report on Form 10-Q, including the Fourth Amendment to Lease Agreement, certifications from the CEO and CFO, and XBRL documents - Exhibits include the Fourth Amendment to Lease Agreement, CEO and CFO certifications (31.1, 31.2, 32.1), and XBRL Instance, Schema, Calculation, Definition, Label, and Presentation Linkbase Documents[200](index=200&type=chunk) [Signatures](index=41&type=section&id=Signatures) The report is signed by Michael Cotoia, Chief Executive Officer and Director, and Daniel Noreck, Chief Financial Officer and Treasurer, on August 4, 2021 - The report was signed by Michael Cotoia (CEO) and Daniel Noreck (CFO and Treasurer) on August 4, 2021[202](index=202&type=chunk)

Financial Data and Key Metrics Changes - Adjusted revenue grew 85% to approximately $59 million [7] - Adjusted EBITDA increased 123% to approximately $19 million, with an adjusted EBITDA margin of 33% [7] - Free cash flow was $12.6 million, representing 66% of adjusted EBITDA [8] - Annual guidance raised to expected adjusted revenues between $245 million and $250 million and adjusted EBITDA between $80 million and $85 million [8] Business Line Data and Key Metrics Changes - Long-term contracts represented 42% of revenue, marking an all-time high [8] - Priority Engine revenues grew 7% in Q1, with expectations of over 15% growth for the remainder of the year [13][35] Market Data and Key Metrics Changes - The company operates over 141 enterprise technology-specific sites with over 20 million registered members, alongside BrightTALK's 8 million registered members [21] - The transition from face-to-face events to online and digital strategies is expected to continue, with a significant shift in customer budgets [68] Company Strategy and Development Direction - The company aims to increase longer-term revenue metrics as a percentage of total revenue, focusing on Priority Engine and its integration with BrightTALK [11][16] - There is a strong emphasis on leveraging first-party data and purchase intent data as a competitive advantage, especially with the elimination of third-party cookies [21][22] - The strategy includes expanding sales adoption and enhancing product offerings to cater to both SMBs and large enterprises [41][56] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing momentum and tailwinds benefiting the company, particularly in the digital transformation space [7][22] - The company anticipates a mix of digital and hybrid events in 2021 and beyond, with a focus on maintaining a digital-first approach [36][38] - There is optimism regarding customer willingness to commit to longer-term contracts as the pandemic situation improves [50] Other Important Information - The company has identified close to 10,000 prospective customers, indicating significant growth potential [41] - There are ongoing investments in sales personnel and self-service capabilities to support customer growth [46] Q&A Session Summary Question: Insights on long-term subscriptions and Priority Engine revenue acceleration - Management noted a goal to increase long-term revenue metrics, with Priority Engine revenues growing 7% in Q1 and expected to grow over 15% for the remainder of the year [11][13] Question: Customer feedback on BrightTALK acquisition - Customers are excited about the integration of BrightTALK's webinar platform, which complements TechTarget's offerings and enhances data capture [16][18] Question: Sales adoption and Priority Engine Express updates - Sales adoption is increasing, with a focus on personalized data access for sales reps, and a recovery in interest for Priority Engine Express is noted [26][35] Question: Demand from global vendors and revenue concentration - There has been an increase in spending from global vendors, with revenue concentration down to approximately 20%, indicating a more diversified customer base [62] Question: Sustainability of growth rates for non-Priority Engine business - Management believes the shift to digital marketing will sustain growth rates, as customers become more comfortable with intent data and digital strategies [68]