TechTarget(US:TTGT)2024-11-12 21:03Revenue Performance - For the three months ended September 30, 2024, total revenue was $58.472 million, a 2.4% increase from $57.128 million for the same period in 2023[30] - For the nine months ended September 30, 2024, total revenue was $169.022 million, a decrease of 2.0% compared to $172.671 million for the same period in 2023[30] - Revenue from North America for the three months ended September 30, 2024, was $41.544 million, up 4.3% from $38.891 million in the same period of 2023[30] - International revenue for the three months ended September 30, 2024, was $16.928 million, down 7.2% from $18.237 million in the same period of 2023[30] - Net sales for the three months ended September 30, 2024, were $58.5 million, compared to $57.1 million for the same period in 2023, representing a 2.4% increase[77] - Approximately 30% of the Company's revenue for the nine months ended September 30, 2024, was derived from customers with billing addresses outside of the United States[155] Financial Position - Cash and cash equivalents totaled $278.5 million as of September 30, 2024, compared to $226.7 million as of December 31, 2023[38] - The balance of contract liabilities was $17.354 million as of September 30, 2024, compared to $14.721 million at December 31, 2023[31] - The fair value of short-term investments was $77.310 million as of September 30, 2024[36] - Total short-term investments as of September 30, 2024, amounted to $77.310 million, with a gross unrealized gain of $1.678 million[39] - The fair value of convertible senior notes as of September 30, 2024, is $407.117 million, compared to $347.087 million as of December 31, 2023[55] - As of September 30, 2024, the net carrying amount of the 2026 Notes is $409.139 million and the 2025 Notes is $3.015 million[52] Net Loss and Earnings - The company reported a net loss of $1.716 million for the three months ended September 30, 2024, compared to a net income of $1.742 million for the same period in 2023[46] - Basic net loss per common share for the three months ended September 30, 2024, was $(0.06), while it was $0.06 for the same period in 2023[46] - The Company recorded income tax expense of $3.5 million for the three months ended September 30, 2024, a decrease of approximately $3.1 million compared to the same period in 2023[75] Intangible Assets and Amortization - Total intangible assets as of September 30, 2024, were valued at $84.755 million, with accumulated amortization of $44.973 million[41] - The company expects amortization expense of intangible assets to total $84.755 million over the remaining useful lives[44] - Amortization expense for intangible assets was $6.6 million for both the nine months ended September 30, 2024, and 2023[41] - The company did not have any indications of impairment for goodwill or intangible assets as of September 30, 2024[40] Stock and Equity - The weighted average shares of common stock outstanding for the three months ended September 30, 2024, were 28,867,873[46] - As of September 30, 2024, the Company has reserved 2,613,628 shares of common stock for various stock options and restricted stock units[74] - There are 20,000 shares of common stock remaining subject to outstanding stock grants under the 2007 Stock Option and Incentive Plan as of September 30, 2024[64] - A total of 1,675,300 shares of common stock remain subject to outstanding stock-based grants under the 2017 Plan as of September 30, 2024[66] - As of September 30, 2024, the Company has 523,653 shares of common stock remaining available for issuance under the Employee Stock Purchase Plan (ESPP) after reserving 600,000 shares[67] - The total unrecognized compensation expense related to stock options and restricted stock units is $48.1 million, expected to be recognized over a weighted average period of 2.0 years[72] - For the nine months ended September 30, 2024, the Company granted 725,585 restricted stock units with a total grant-date fair value of $19.8 million[71] - The aggregate intrinsic value of options outstanding at September 30, 2024, is $495,575, calculated based on the fair value of the Company's common stock[70] Debt and Liabilities - As of September 30, 2024, approximately $3 million of the 2025 convertible notes remain outstanding after a repurchase of $48.3 million in August 2023[47] - The Company issued $201.3 million in 0.125% convertible senior notes due December 15, 2025, and $414 million in 0.0% convertible senior notes due December 15, 2026[47] - Total future minimum lease payments as of September 30, 2024, amount to $19.675 million, with current operating lease liabilities of $3.556 million and non-current liabilities of $13.933 million[59] - The total lease cost for the nine months ended September 30, 2024, is $3.114 million, compared to $3.175 million for the same period in 2023[60] - The weighted-average remaining lease term for operating leases is 3.0 years, with a weighted-average discount rate of 3.4%[61] Legal Matters - The Company is facing litigation related to the Merger Agreement, with two lawsuits filed claiming the Definitive Proxy Statement is materially incomplete and misleading[62] - The Company has determined to voluntarily supplement the Definitive Proxy Statement to eliminate the burden and expense of litigation[63] Accounting and Standards - The company is currently evaluating the impact of adopting new accounting standards effective after December 15, 2024[27] - The company maintains an allowance for credit losses based on historical collectability and current market conditions, which may impact future periods[24] - The expected volatility for the ESPP purchase rights is 42.27% as of September 30, 2024[72]