TechTarget(TTGT) - 2023 Q2 - Quarterly Report

Revenue Performance - For the three months ended June 30, 2023, total revenue was $58.4 million, a decrease of 26% compared to $78.9 million for the same period in 2022[32]. - North America revenue for the six months ended June 30, 2023, was $76.7 million, down 18% from $93.8 million in the same period of 2022[32]. - International revenue for the six months ended June 30, 2023, was $38.8 million, a decrease of 27% compared to $53.3 million in the same period of 2022[32]. - The company recognized revenue of $57.1 million for the year-to-date period ending June 30, 2023, compared to $147.0 million for the same period in 2022[33]. - Net sales for the six months ended June 30, 2023, totaled $115.5 million, a decrease from $147.0 million in the same period of 2022[84]. - Approximately 24% of the company's revenue for the six months ended June 30, 2023, was derived from customers outside the United States[171]. Financial Position - Cash and cash equivalents totaled $238.0 million as of June 30, 2023, down from $344.5 million at December 31, 2022[40]. - The company had cash, cash equivalents, and investments totaling $334.3 million as of June 30, 2023, with no amounts outstanding under the 2021 Loan Agreement[173]. - Fair value of short-term investments as of June 30, 2023, was $96.3 million, compared to $20.2 million at December 31, 2022[36]. - As of June 30, 2023, total short-term investments amounted to $96,279 million, with unrealized losses of $404 million[41]. - The company has no contingent consideration amounts remaining as of June 30, 2023[39]. Income and Expenses - The company reported a net income of $2,675 million for the three months ended June 30, 2023, compared to $12,415 million for the same period in 2022[46]. - Basic net income per common share for the three months ended June 30, 2023, was $0.10, down from $0.42 in the same period of 2022[46]. - The company recorded an income tax expense of $0.9 million for the three months ended June 30, 2023, a decrease of approximately $4.8 million compared to the same period in 2022[81]. - Total interest expense recognized related to the Notes for the three months ended June 30, 2023, was $1,287, compared to $1,280 for the same period in 2022[54]. Liabilities and Debt - Contract liabilities decreased to $20.6 million as of June 30, 2023, from $27.1 million at December 31, 2022[35]. - As of June 30, 2023, approximately $51 million of the 2025 convertible notes remain outstanding[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]. - The fair value of the convertible senior notes as of June 30, 2023, was $367,594, down from $456,949 as of December 31, 2022[54]. Stock and Equity - The total weighted average shares for diluted net income per common share for the three months ended June 30, 2023, was 32,162,078[46]. - As of June 30, 2023, there were 22,500 shares of common stock remaining subject to outstanding stock grants under the 2007 Stock Option and Incentive Plan[65]. - The 2017 Stock Option and Incentive Plan has 1,878,398 shares of common stock remaining subject to outstanding stock-based grants as of June 30, 2023[66]. - The Company has 568,840 shares of common stock available for issuance under the 2022 Employee Stock Purchase Plan as of June 30, 2023[67]. - The total cash received from the exercise of stock options was approximately $18 thousand during the six months ended June 30, 2023, with no options exercised in the same period of 2022[71]. - The company had 1,758,398 nonvested restricted stock units outstanding as of June 30, 2023, with a weighted average grant date fair value of $60.13 per share[72]. - A total of 69,007 restricted stock units vested during the six months ended June 30, 2023, with a total grant-date fair value of $4.4 million[72]. Amortization and Intangible Assets - Total intangible assets as of June 30, 2023, were valued at $93,220 million, with accumulated amortization of $32,774 million[43]. - Amortization expense for the six months ended June 30, 2023, was $4.4 million, slightly down from $4.6 million in the same period of 2022[44]. - The company expects amortization expense for the second half of 2023 to be approximately $4,409 million[45]. - The company did not have any indications of impairment for goodwill or intangible assets as of June 30, 2023[42]. Lease Obligations - Total future minimum lease payments as of June 30, 2023, amounted to $25,497, with current operating lease liabilities of $3,968[62]. - The total lease expense for the three months ended June 30, 2023, was $1,053, compared to $714 for the same period in 2022[62]. - The weighted-average remaining lease term for operating leases was 3.5 years, with a weighted-average discount rate of 3.4%[62]. Credit and Economic Factors - The allowance for credit losses is influenced by macroeconomic uncertainty in the technology sector, which may impact future periods[26]. - The Company has a $75 million revolving credit facility under the 2021 Loan Agreement, with an interest rate of 7.91% as of June 30, 2023[55].