TechTarget Expects Lower Annual Revenue Due to Weak Economy
Company reduces 2008 financial guidance.
In its preliminary report of its second quarter financial results, information technology media company TechTarget estimates its revenues for the quarter will be $29.4 million, up about 20 percent from $24.6 million during the same period last year. The majority of this comes from online revenues, which the company estimates will be $20.8 million, up nearly 30 percent from $16.8 million during the second quarter last year.
In its report, TechTarget revised its financial guidance statement for the year, estimating revenues for 2008 to be between $108 million and $112 million, down from its previous forecast of between $118 million and $122 million. The comany now expects adjusted EBITDA for 2008 to be between $25 million and $27 million. Previously, the company expected adjusted EBITDA to be between $33 million and $35 million.
“Our business remains fundamentally solid as evidenced by our revenue growth and our long-term thesis is unchanged,” CEO Greg Strakosch said in a statement. “We believe that we are continuing to gain market share, however, due to the macroeconomic weakness in the U.S. and its impact on advertising spending, we believe it is prudent to reduce our guidance to reflect the current market conditions.”
At press time, the company’s stock was trading at $7.31 per share, down from yesterday’s close of $10.45.
In May, TechTarget said its first quarter revenues were $23.9 million, up 30 percent over $18.3 million during the same period in 2007. However, it posted a $112,000 net loss for the quarter, attributing much of the profit loss to increases in stock-based compensation expense and the amortization of intangible assets expense.
TechTarget will release its final second quarter figures on August 13.