TechTarget Reports Estimated Third Quarter 2009 Financial Results

Delays Earnings Release and Filing of 10-Q for Current Quarter
NEEDHAM, Mass.--(Business Wire)--
TechTarget, Inc. (NASDAQ: TTGT) announced today that it is delaying its earnings
release, but is releasing estimated third quarter results, its prepared remarks
regarding the current period ended September 30, 2009 and financial guidance for
the fourth quarter of 2009. The Company recently identified an improper
accounting practice relating to certain customer credits that were improperly
eliminated as liabilities on the Company's balance sheet. The Company believes
that the result of this practice was that expenses were understated (overstated)
by approximately $353,000 in 2007, $426,000 in 2008 and ($15,000) in 2009. As a
result, TechTarget is delaying the filing of its Quarterly Report on Form 10-Q
for the third quarter of 2009, and the Audit Committee of TechTarget`s Board of
Directors is currently conducting an investigation into this matter. The Company
currently believes that the improper accounting practice was limited to a single
individual. The Company's expectations concerning the nature and materiality of
these or any other improper accounting activity that may be discovered in the
course of its investigation are subject to change based on the final outcome of
the investigation.

Estimated Third Quarter Results

Estimated revenues for the Q3 2009 are $23.3 million. Estimated online revenues
are $18.5 million. Estimated Q3 2009 Non-GAAP gross profit margin is 73% and
estimated Non-GAAP online gross profit margin is 75%. Q3 2009 estimated adjusted
EBITDA is $5.3 million, which excludes any prior period adjustments associated
with the investigation into the accounting matter described previously.

Estimated Q3 2009 GAAP gross profit margin is 72% and estimated GAAP online
gross profit margin is 74%. Q3 2009 estimated net income per basic share is
$0.00, excluding any prior period adjustments associated with the investigation
into the accounting matter described previously.

Our balance sheet and financial position remain strong. As of September 30,
2009, our cash and investments totaled $78.6 million and our bank debt was
$750,000. As of September 30, 2009, our net cash, defined as cash and
investments less bank debt, increased by $11.3 million compared to December 31,
2008.

It is important to note that the foregoing amounts are estimated results for the
third quarter and may change as a result of the Company`s continued
investigation of the improper accounting practice as described above, or
otherwise as we complete our review of the third quarter of 2009 and any
applicable prior periods. These results include certain Non-GAAP financial
measures which we are providing as a complement to the estimated results
provided in accordance with GAAP. The Company defines "adjusted EBITDA" as
earnings before interest, taxes, depreciation, and amortization, as further
adjusted for stock-based compensation. "Non-GAAP gross profit margin" as gross
profit less stock-based compensation as a percentage of total revenues.

Recent Company Highlights

* Launched SearchVirtualDataCentre.co.uk, our third direct web site in The
United Kingdom. The editorial focus of SearchVirtualDataCentre.co.uk will
include server virtualization, power conservation, green data center initiatives
and data center management and automation. Charter advertisers include: Oracle,
Citrix and F5 Networks.
* Launched the company`s first three direct websites in India. SearchCIO.in,
SearchDataCenter.in and SearchSecurity.in. TechTarget has more than 750,000
registered members in India. Charter advertisers include Microsoft, Dell and HP.

* Hosted the 5th TechTarget Online ROI Summit for almost 300 customers and
prospects in San Francisco. Multiple TechTarget customers presented including
marketing executives from Dell, EMC, Dell, Cisco, Oracle, HP and Hitachi Data
Systems.
* Finished the latest version of our proprietary research project with our
partner Google on how IT professionals use the web to research new technologies
and products. Highlights of the findings were made available at The TechTarget
Online ROI Summit. A road show and written report will be produced before the
end of the year.
* Partnered with VMware for the third year in a row to run the "Best of VMworld
Awards" at VMworld, which was held in San Francisco and attracted more than
12,000 attendees. There were more than 175 product entrants in 8 categories.
* NotebookReview.com , part of TechTarget`s TechnologyGuide network of sites,
was Named One of Media Business Magazine`s "10 Great Web Sites" in the category
of Web 2.0/IT by Media Business magazine. NotebookReview.com is one of the web`s
largest sites devoted entirely to laptop computers that helps buyers who are
currently researching their next laptop purchase. Other sites recognized by
Media Business include; The Wall Street Journal`s www.wsj.com, The Financial
Times` www.ft.com, and BusinessWeek`s http://www.businessweek.com.

Financial Guidance

In the fourth quarter of 2009, the Company expects total revenues to be within
the range of $21.8 million to $22.8 million. The Company expects online revenue
to be within the range of $19.0 million to $19.8 million and events revenue to
be in the range of $2.8 to $3.0 million. The Company expects adjusted EBITDA to
be within the range of $4.5 million to $5.3 million, excluding costs associated
with the investigation into the accounting matter.

Conference Call and Webcast

TechTarget will discuss these financial results in a conference call at 5:00 pm
(Eastern Time) today (November 9, 2009). Supplemental financial information and
prepared remarks for the conference call will be posted to the investor
relations section of our website simultaneously with this press release.

NOTE: The prepared remarks will not be read on the conference call. The
conference call will include only brief remarks followed by questions and
answers.

The public is invited to listen to a live webcast of TechTarget`s conference
call, which can be accessed on the Investor Relations section of our website at
http://investor.techtarget.com/. The conference call can also be heard via
telephone by dialing (888) 679-8034 (US callers) or 617-213-4847 (International
callers) ten minutes prior to the call and referencing participant pass code
13347242 for both domestic and international callers. Participants may
pre-register for the call at:
https://www.theconferencingservice.com/prereg/key.process?key=PU4MJHUUH.
Pre-registrants will be issued a pin number to use when dialing into the live
call which will provide quick access to the conference by bypassing the operator
upon connection. (Due to the length of the above URL, it may be necessary to
copy and paste it into your Internet browser's URL address field. You may also
need to remove an extra space in the URL if one exists.)

For those investors unable to participate in the live conference call, a replay
of the conference call will be available via telephone beginning November 9,
2009 at 8:00 p.m. ET through November 23, 2009 at 11:59 p.m. (ET). To listen to
the replay, dial 888-286-8010 and use the pass code 24672076. International
callers should dial 617-801-6888 and also use the pass code 24672076 to listen
to the replay. The webcast replay will also be available for replay on
http://investor.techtarget.com/ during the same period.

Non-GAAP Financial Measures

This press release and the accompanying tables include a discussion of adjusted
EBITDA, Non-GAAP gross profit, adjusted net income and adjusted net income per
share, all of which are non-GAAP financial measures which are provided as a
complement to results provided in accordance with accounting principles
generally accepted in the United States of America ("GAAP"). The term "adjusted
EBITDA" refers to a financial measure that we define as earnings before net
interest, income taxes, depreciation, and amortization, as further adjusted for
stock-based compensation. The term "Non-GAAP gross profit " refers to a
financial measure which we define as gross profit less stock-based compensation.
The term "Non-GAAP Gross Profit Margin" refers to a financial measure which we
define as gross profit less stock-based compensation as a percentage of total
revenues. The term "adjusted net income" refers to a financial measure which we
define as net income adjusted for amortization and stock-based compensation, as
further adjusted for the related income tax impact for the specific adjustments.
The term "adjusted net income per share" refers to a financial measure which we
define as adjusted net income divided by adjusted weighted average diluted
shares outstanding. These Non-GAAP measures should be considered in addition to
results prepared in accordance with GAAP, but should not be considered a
substitute for, or superior to, GAAP results. In addition, our definition of
adjusted EBITDA, Non-GAAP gross profit, adjusted net income and adjusted net
income per share may not be comparable to the definitions as reported by other
companies. We believe adjusted EBITDA, Non-GAAP gross profit, adjusted net
income and adjusted net income per share are relevant and useful information
because it provides us and investors with additional measurements to compare the
Company`s operating performance. These measures are part of our internal
management reporting and planning process and are primary measures used by our
management to evaluate the operating performance of our business, as well as
potential acquisitions. The components of adjusted EBITDA include the key
revenue and expense items for which our operating managers are responsible and
upon which we evaluate their performance. In the case of senior management,
adjusted EBITDA is used as the principal financial metric in their annual
incentive compensation program. Adjusted EBITDA is also used for planning
purposes and in presentations to our board of directors. Non-GAAP gross profit
is useful to us and investors because it presents an additional measurement of
our financial performance by excluding the impact of certain non-cash expenses
not directly tied to the core operations of our business. Adjusted net income is
useful to us and investors because it presents an additional measurement of our
financial performance, taking into account depreciation, which we believe is an
ongoing cost of doing business, but excluding the impact of certain non-cash
expenses and items not directly tied to the core operations of our business.
Furthermore, we intend to provide these non-GAAP financial measures as part of
our future earnings discussions and, therefore, the inclusion of these non-GAAP
financial measures will provide consistency in our financial reporting. A
reconciliation of these non-GAAP measures to GAAP is provided in the
accompanying tables.

Forward Looking Statements

Certain matters included in this press release may be considered to be
"forward-looking statements" within the meaning of the Securities Act of 1933
and the Securities Exchange Act of 1934, as amended by the Private Securities
Litigation Reform Act of 1995. Those statements include statements regarding the
intent, belief or current expectations of the company and members of our
management team. All statements contained in this press release, other than
statements of historical fact, are forward-looking statements, including those
regarding: guidance on our future financial results and other projections or
measures of our future performance; our expectations concerning market
opportunities and our ability to capitalize on them; and the amount and timing
of the benefits expected from acquisitions, from new products or services and
from other potential sources of additional revenue. Investors and prospective
investors are cautioned that any such forward-looking statements are not
guarantees of future performance and involve risks and uncertainties, and that
actual results may differ materially from those contemplated by such
forward-looking statements. These statements speak only as of the date of this
press release and are based on our current plans and expectations, and they
involve risks and uncertainties that could cause actual future events or results
to be different than those described in or implied by such forward-looking
statements. These risks and uncertainties include, but are not limited to, those
relating to: market acceptance of our products and services; relationships with
customers, strategic partners and our employees; difficulties in integrating
acquired businesses; and changes in economic or regulatory conditions or other
trends affecting the Internet, Internet advertising and information technology
industries. These and other important risk factors are discussed or referenced
in our Annual Report on Form 10-K/A filed with the Securities and Exchange
Commission, under the heading "Risk Factors" and elsewhere, and any subsequent
periodic or current reports filed by us with the SEC. Except as required by
applicable law or regulation, we do not undertake any obligation to update our
forward-looking statements to reflect future events or circumstances.

About TechTarget

TechTarget, a leading online technology media company, gives technology
providers ROI-focused marketing programs to generate leads, shorten sales
cycles, and grow revenues. With its network of more than 60 technology-specific
websites and more than 7.5 million registered members, TechTarget is a primary
Web destination for technology professionals researching products to purchase.
The company is also a leading provider of independent, peer and vendor content,
a leading distributor of white papers, and a leading producer of webcasts,
podcasts, videos and virtual trade shows for the technology market. Its websites
are complemented by numerous invitation-only events. TechTarget provides proven
lead generation and branding programs to top advertisers including Cisco, Dell,
EMC, HP, IBM, Intel, Microsoft, SAP and Symantec.

(C) 2009 TechTarget, Inc. All rights reserved. TechTarget and the TechTarget
logo are registered trademarks, and SearchVirtualDataCentre.co.uk, SearchCIO.in,
SearchDataCenter.in and SearchSecurity.in., are trademarks, of TechTarget. All
other trademarks are the property of their respective owners.

TechTarget
Eric Sockol, 781-657-1515
esockol@techtarget.com

Copyright Business Wire 2009