TechTarget(US:TTGT)2022-05-09 16:00Financial 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]