Revenue Soars For TechTarget; Net Income Slips
Online accounts for 75 percent of revenue.
Online revenue continues to drive Needham, Massachusetts-based TechTarget—accounting for 71 percent of total revenue in the second quarter and 75 percent for the first six months—while print continues to fade, according to the company’s financial statement for the second quarter of 2008.
Total revenue for the second quarter increased 19 percent to $29.4 million while total revenue for the first six months of the year was up 23.9 percent to $53.3 million. However, adjusted EBITDA fell 1 percent to $7.5 million while net income dropped to $1.7 million for the quarter.
During the first six months of the year, Tech Target generated $39.7 million in online revenue, up 32.2 percent from $30 million for the same period last year; $11.2 million in events, up $21.1 million from $9.3 million last year; and $2.3 million from print, down 36.6 percent from $3.6 million for the same period last year.
TechTarget, which last November shuttered magazine CIO Decisions and now has two remaining print titles in Information Security and Storage, says it expects print to continue to fall as an overall percentage of revenue. Events accounted for 21 percent of total revenue for the first six months of 2008 while print dropped from 8 percent of revenue for the first half of 2007 to 4 percent for the first half of 2008.
Integrated ROI programs are driving much of the online revenue for Tech Target, which saw a $3.1 million increase in revenue from lead generation from more white papers and Webcasts, as well as from revenues from TechnologyGuide.com, which the company purchased in April 2007. The company also saw a $1.5 million increase in branding revenue from more banner and newsletter sales. Tech Target says that any lead shortfalls with ROI programs were satisfied within an average extended period of 40 days. The company also saw a $527,000 increase in seminar and custom events revenue.
TechTarget says it expects total revenue for 2008 to be between $108 million and $112 million with adjusted EBITDA in the $25 million to $27 million range.