TechTarget Inc

CIK:0001293282|SEC Filings

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($)
$ in Thousands

3 Months Ended

9 Months Ended

Sep. 30, 2024

Sep. 30, 2023

Sep. 30, 2024

Sep. 30, 2023

Income Statement [Abstract]

Revenue

$ 58,472

$ 57,128

$ 169,022

$ 172,671

Cost of revenue

^[1]

21,298

18,250

61,870

54,006

Amortization of acquired technology

723

700

2,128

2,067

Gross profit

36,451

38,178

105,024

116,598

Operating expenses:

Selling and marketing

^[1]

22,269

23,944

68,419

73,615

Product development

^[1]

2,948

2,700

8,345

7,766

General and administrative

^[1]

6,607

7,383

20,927

23,007

Transaction and related expenses

2,645

11,240

Depreciation, excluding depreciation of $1,380, $996, $3,832 and $2,760, respectively, included in cost of revenue

2,317

2,180

6,930

6,275

Amortization

1,513

1,502

4,509

4,501

Total operating expenses

38,299

37,709

120,370

115,164

Operating income (loss)

(1,848)

469

(15,346)

1,434

Interest and other income, net

3,609

2,791

9,958

8,463

Gain from early extinguishment of debt

5,033

Income (loss) before provision for income taxes

1,761

8,293

(5,388)

14,930

Provision for income taxes

3,477

6,551

5,104

8,868

Net income (loss)

(1,716)

1,742

(10,492)

6,062

Other comprehensive income (loss), net of tax:

Unrealized gain (loss) on investments (net of tax provision effect of $217, $6, $213 and $(16), respectively)

766

752

(58)

Foreign currency translation gain (loss)

4,067

(2,459)

3,514

1,228

Other comprehensive income (loss)

4,833

(2,438)

4,266

1,170

Comprehensive income

$ 3,117

$ (696)

$ (6,226)

$ 7,232

Net Income (Loss) Per Common Share:

Basic

$ (0.06)

$ 0.06

$ (0.37)

$ 0.21

Diluted

$ (0.06)

$ 0.06

$ (0.37)

$ 0.21

Weighted average common shares outstanding:

Basic

28,868,000

28,073,000

28,646,000

28,295,000

Diluted weighted average shares

28,867,873

28,206,336

28,646,451

28,483,620

[1]	Amounts include stock-based compensation expense as follows:

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Operating activities:
Net income (loss)	$ (10,492)	$ 6,062
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation	10,762	9,035
Amortization	6,637	6,568
Provision for bad debt	(1,125)	2,003
Stock-based compensation	32,548	36,486
Amortization of debt issuance costs	1,653	1,850
Deferred tax benefit	3,314	(2,137)
Gain on early extinguishment of debt	0	(5,033)
Changes in operating assets and liabilities:
Accounts receivable	(9)	15,055
Operating lease assets with right of use	2,098	1,594
Prepaid expenses and other current assets	(5,160)	166
Other assets	0	(100)
Accounts payable	1,286	1,616
Income taxes payable	202	(4,336)
Accrued expenses and other current liabilities	(972)	(2,147)
Accrued compensation expenses	459	(1,380)
Operating lease liabilities with right of use	(2,786)	(2,435)
Contract liabilities	2,530	(9,067)
Net cash provided by operating activities	40,945	53,800
Investing activities:
Purchases of property and equipment, and other capitalized assets, net	(12,572)	(10,906)
Purchases of investments	(3,383)	(77,261)
Maturities of investments	26,649	0
Net cash provided by (used in) investing activities	10,694	(88,167)
Financing activities:
Tax withholdings related to net share settlements	(336)	(4,551)
Purchase of treasury shares and related costs	0	(50,000)
Proceeds from stock option exercises	0	18
Issuance of common stock from ESPP	563	650
Payment of repurchase of convertible senior notes	0	(42,560)
Payment of earnout liabilities	0	(2,267)
Net cash provided by (used in) financing activities	227	(98,710)
Effect of exchange rate changes on cash and cash equivalents	(15)	660
Net increase (decrease) in cash and cash equivalents	51,851	(132,417)
Cash and cash equivalents at beginning of period	226,668	344,523
Cash and cash equivalents at end of period	278,519	212,106
Supplemental disclosure of cash flow information:
Cash paid for taxes, net	5,506	15,444
Schedule of non-cash investing and financing activities:
Right of use assets and lease liabilities	$ 26	$ 492

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents	$ 278,519	$ 226,668
Short-term investments	77,310	99,601
Accounts receivable, net of allowance for doubtful accounts of $2,996 and $5,028 respectively	40,438	39,239
Prepaid taxes	3,928	1,634
Prepaid expenses and other current assets	5,660	4,331
Total current assets	405,855	371,473
Property and equipment, net	26,851	24,917
Goodwill	196,004	194,074
Intangible assets, net	84,755	89,163
Operating lease assets with right-of-use	14,605	17,166
Deferred tax assets	4,248	2,445
Other assets	652	650
Total assets	732,970	699,888
Current liabilities:
Accounts payable	6,616	5,312
Current operating lease liabilities	3,556	4,049
Accrued expenses and other current liabilities	8,133	9,041
Accrued compensation expenses	1,817	1,345
Income taxes payable	1,201	2,522
Contract liabilities	17,354	14,721
Total current liabilities	38,677	36,990
Non-current operating lease liabilities	13,933	16,615
Convertible senior notes	412,154	410,500
Deferred tax liabilities	18,730	12,856
Total liabilities	483,494	476,961
Leases and contingencies (see Note 9)
Stockholders’ equity:
Preferred stock, $0.001 par value; 5,000,000 shares authorized; no shares issued or outstanding	0	0
Common stock, $0.001 par value; 100,000,000 shares authorized; 59,480,004 and 58,659,065 shares issued, respectively; 29,235,043 and 28,415,144 shares outstanding, respectively	59	59
Treasury stock, at cost; 30,244,961 and 30,243,921 shares, respectively	(329,118)	(329,118)
Additional paid-in capital	504,471	471,696
Accumulated other comprehensive loss	(276)	(4,542)
Retained earnings	74,340	84,832
Total stockholders’ equity	249,476	222,927
Total liabilities and stockholders’ equity	$ 732,970	$ 699,888