TechTarget Posts 70 Percent Gross Profit for 3Q
Needham, Massachussetts-based TechTarget announced third quarter 2007 revenue of $23.3 million, up 15 percent from the same period last year. Online revenue accounted for 63 percent of total revenues and increased by 17 percent over third quarter 2006 to $14.7 million.
The company reported gross profit of 70 percent in the third quarter, up from gross profit of 67 percent for third quarter 2006. Online gross profit was 74 percent, up from 71 percent for the same period last year. Net income fell 3 percent to $1.54 million, which the company attributes to an increase in stock-based compensation expense, which grew from $91,000 in third quarter 2006 to $1.65 million in third quarter 2007. Adjusted EBITDA increased 14 percent to $5.7 million.
For the first nine months of 2007, TechTarget reported total revenue of $66.3 million, up 18.6 percent from $55.9 million for the same period in 2006. Online revenue totaled $44.7 million, followed by events at $16 million and print at $5.3 million (down 13.1 percent from $6.2 million in print revenue for the first nine months of 2006). Gross profit rose 22 percent to $46 million while net income increased 4.5 percent to $4.6 million.
For the fourth quarter, TechTarget says it expects revenue to be within the range of $27.4 million to $28.6 million and adjusted EBITDA to be in the range of $7.3 million to $8.3 million.
Buys IT Search Company KnowledgeStorm
Meanwhile, TechTarget announced today that it has acquired IT search resource KnowledgeStorm for $58 million, including $52 million in cash and 359,820 shares of unregistered common stock. "Our preliminary projections are that KnowledgeStorm will contribute revenues of $12 million to $14 million and adjusted EBITDA of $4.5 million to $5.5 million during the first 12 months post-integration," said TechTarget CEO Greg Strakosch in a statement.