TechTarget Reports First Quarter 2012 Financial Results
Company reports Online Revenue up 8%
Technology media company TechTarget, Inc. (NASDAQ: TTGT) today announced financial results for the three months ended March 31, 2012.
“Despite new weakness in the IT market, we are continuing to make excellent progress on our two major strategic initiatives; our Activity Intelligence™ product platform and our direct international expansion,” said Greg Strakosch, CEO of TechTarget. “We are confident that these investments will pay off even more when the IT market improves.”
Total Q1 2012 revenues increased 5% to $23.7 million compared to Q1 2011. Q1 2012 online revenue increased by 8% to $22.1 million compared to Q1 2011. Online revenues represented 93% of total Q1 2012 revenues. Q1 2012 events revenue decreased by 25% to $1.6 million compared to Q1 2011 and represented 7% of total Q1 2012 revenues.
Adjusted EBITDA (earnings before interest, other income and expense, income taxes, depreciation, and amortization, as further adjusted to eliminate stock-based compensation) for Q1 2012 decreased 5% to $3.5 million compared to $3.7 million for Q1 2011.
Total gross profit margin for Q1 2012 was 71%, compared to 71% for Q1 2011. Online gross profit margin increased to 73% for Q1 2012, compared to 72% for Q1 2011. Events gross profit margin decreased to 53% for Q1 2012, as compared to 60% for Q1 2011.
Net income was $0.4 million for Q1 2012 compared to a net loss of $0.1 million in Q1 2011. Adjusted net income (net income adjusted to eliminate amortization, stock-based compensation expense and the related income tax impact of these charges) for both Q1 2012 and Q1 2011 was $1.7 million. Net income per basic share for Q1 2012 was $0.01 compared to net loss per basic share of $0.00 for Q1 2011. Adjusted net income per share (adjusted net income divided by adjusted weighted average diluted shares outstanding) for Q1 2012 and Q1 2011 was $0.04.
The Company’s balance sheet and financial position remain strong. As of March 31, 2012, the Company’s cash, cash equivalents and investments totaled $60.8 million, working capital is $72.1 million, and the Company has no outstanding bank debt.
The Company is also announcing that Janice Kelliher has been elected as the permanent Chief Financial Officer and Treasurer of the Company. Ms. Kelliher, 49, joined the Company in January 2012 as Vice President, Finance and was elected as the Company’s interim Chief Financial Officer on March 13, 2012.
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