TechTarget(US:TTGT)2021-05-08 21:24Financial 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]