TechTarget Inc. (NASDAQ:TTGT) Q3 2022 Results Conference Call November 9, 2022 5:00 PM ET

Company Participants

Charles Rennick - VP, General Counsel and Corporate Secretary

Greg Strakosch - Co-Founder and Executive Chairman

Mike Cotoia - CEO and Director

Daniel Noreck - CFO and Treasurer

Conference Call Participants

Justin Patterson - KeyBanc

Aaron Kessler - Raymond James

Bhavin Shah - Deutsche Bank

Max Michaelis - Lake Street Capital

Greg Burns - Sidoti & Co

Operator

Good afternoon, and thank you for attending today's TechTarget Reports Third Quarter 2022 Conference Call. My name is Austin, and I will be your moderator for today. [Operator Instructions]

I would now like to pass the conference over to our host, Charles Rennick, with TechTarget. Charles, please go ahead.

Charles Rennick

Thank you, Austin, and good afternoon. Joining me here today are Greg Strakosch, our Executive Chairman; Mike Cotoia, our Chief Executive Officer; and Dan Noreck, our Chief Financial Officer. .

Before turning the call over to Greg, I'd like to remind everyone on the call of our earnings release process. As previously announced, in order to provide you with an update on our business in advance of the call, we've posted our shareholder letter on the Investor Relations section of our website and furnished it on an 8-K. Following Greg's introductory remarks, the management team will be available to answer your questions. Any statements made today by TechTarget that are not factual including during the Q&A may be considered forward-looking statements. These forward-looking statements, which are subject to risks and uncertainties are based on assumptions and are not guarantees of our future performance. Actual results may differ materially from our forecast and from these forward-looking statements.

Forward-looking statements involve a number of risks and uncertainties, including those discussed in the Risk Factors section of our filings with the SEC. These statements speak only as of the date of this call, and TechTarget undertakes no obligation to revise or update any forward-looking statements in order to reflect events that may arise after this conference call as is required by law.

Finally, we may also refer to certain financial measures not prepared in accordance with GAAP. A reconciliation of certain of these non-GAAP financial measures to the most comparable GAAP measures accompanies our shareholder letter.

With that, I'll turn the call over to Greg.

Greg Strakosch

Great. Thank you, Charlie. For Q3 2022, GAAP revenue grew 11% to approximately $77.4 million. Adjusted revenue grew 8% to approximately $77.4 million. Net income was approximately $14.8 million, an increase of 49%. Adjusted EBITDA grew 15% to $32.4 million. Net income margin was 19%. Adjusted EBITDA margin was 42%. GAAP gross margin was 74%, adjusted gross margin was 77%. Longer-term revenue grew 25% $33 million, representing 43% of total revenue. Cash flow from operations was $22.5 million and free cash flow was $18.8 million.