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TechTarget Reports Fourth Quarter and Full Year 2009 Financial Results

Posted by Dana in March 11th 2010

TechTarget, Inc. (NASDAQ: TTGT) announced financial results for the three months and year ended December 31, 2009.

Total Q4 2009 revenues decreased 13% to $23.2 million compared to Q4 2008. Excluding Q4 2008 print revenue, total Q4 2009 revenues decreased 10% compared to Q4 2008. Q4 2009 online revenue increased by 2% to $20.1 million compared to Q4 2008 and represented 86% of total Q4 2009 revenues. Total 2009 revenues decreased 17% to $86.5 million compared to 2008. Excluding 2008 print revenue, total 2009 revenues decreased by 14% compared to 2008. Total 2009 online revenue decreased by 7% to $72.3 million compared to 2008 and represented 84% of total 2009 revenues.

Total gross profit margin increased for both Q4 2009 and full year 2009 to 73% and 71%, respectively, compared to 70% and 68%, for Q4 2008 and full year 2008, respectively. Online gross profit margin increased for both Q4 2009 and full year 2009 to 75% and 73%, respectively, compared to 73% and 72% for Q4 2008 and full year 2008, respectively.

Net loss for Q4 2009 was $0.8 million compared to net income of $0.4 million for Q4 2008. Adjusted net income (net income adjusted for amortization and stock-based compensation, as further adjusted for the related income tax impact) for Q4 2009 was $2.2 million compared to $2.9 million for Q4 2008. Net loss per basic share for Q4 2009 was $0.02 compared to net income per share of $0.01 for Q4 2008. Adjusted net income per share (adjusted net income divided by adjusted weighted average diluted shares outstanding) for the Q4 2009 was $0.05 compared to $0.07 for Q4 2008. Net loss for full year 2009 was $5.1 million compared to net income of $1.8 million for full year 2008. Adjusted net income for 2009 was $7.5 million compared to $11.6 million for 2008. Net loss per basic share for full year 2009 was $0.12 compared to net income per basic share of $0.04 for full year 2008. Adjusted net income per share for full year 2009 was $0.17 compared to $0.27 for full year 2008.

Adjusted EBITDA (earnings before interest, taxes, depreciation, amortization, and restructuring charge, as further adjusted for stock-based compensation) for Q4 2009 was $4.1 million compared to $6.1 million for Q4 2008. Q4 2009 adjusted EBITDA was reduced by $1.2 million as a result of professional fees related to the investigation activities associated with an improper accounting practice previously disclosed. Adjusted EBITDA for full year 2009 was $13.9 million compared to $21.0 million for 2008. Full year 2009 adjusted EBITDA was reduced by $1.8 million as a result of professional fees related to the restatement of prior periods and investigation activities associated with the improper accounting practice previously disclosed.

The Company’s balance sheet and financial position remain strong. As of December 31, 2009, the Company’s cash and investments totaled $82.6 million and its bank term loan has been paid off in full. As of December 31, 2009, the Company’s net cash, defined as cash and investments less bank debt, increased by $16.0 million compared to December 31, 2008.