TechTarget reports Q1 revenue of $104 million amid integration efforts

NEWTON, Mass. - TechTarget, Inc. (Nasdaq:TTGT), a B2B technology sector growth accelerator, reported preliminary first quarter 2025 revenue of $104 million, representing a 77% increase over the prior year’s reported revenue but a 6% decline on a combined company basis. According to InvestingPro data, the company maintains a healthy gross margin of 62.35% despite recent market challenges, though its current market capitalization stands at $560 million following a significant 75% decline in share price over the past year.

The company expects to report a Q1 net loss between $513 million and $545 million, compared to $32 million for the combined company in the prior year period. This significant loss primarily reflects a non-cash impairment of $450-475 million due to the difference between current market capitalization and year-end book value. InvestingPro analysis shows the stock trading at a low Price/Book multiple of 0.36x, with current financial health rated as FAIR based on comprehensive metrics.

"We have made good operational progress in the first quarter of 2025 and will continue these efforts throughout our Foundation Year," said Gary Nugent, Chief Executive of Informa TechTarget.

The company reaffirmed its full-year guidance, targeting broadly flat year-on-year revenues on a combined company basis with improving momentum through the second half of 2025. TechTarget expects to deliver adjusted EBITDA growth in 2025, supported by accelerated cost synergies that are expected to exceed the original first-year target.

TechTarget’s integration efforts following its combination with Informa Tech Digital have focused on establishing leadership teams, consolidating product portfolios, and simplifying go-to-market strategies. The company now expects to more than double its original Year 1 cost savings goal, targeting a minimum of $10 million in operating synergies in 2025.

The company plans to file its Form 10-Q for the quarter ended March 31, 2025 shortly after the July 4th holidays, which should enable it to regain compliance with Nasdaq listing requirements.

Despite current market headwinds, with enterprise technology customers limiting marketing investments to prioritize AI-related development, TechTarget remains confident in its long-term growth strategy based on its expanded first-party data assets and combined product offerings. InvestingPro subscribers have access to 12 additional key insights about TechTarget, including detailed analysis of its growth prospects and financial health metrics. Get the full picture with the comprehensive Pro Research Report, available exclusively to subscribers.

The information in this article is based on a company press release statement.

In other recent news, TechTarget Inc. reported a significant earnings miss for the first quarter of 2025, with an EPS of -$0.22, falling short of the forecasted $0.3613. Despite this, the company’s revenue performance was strong, reaching $98.9 million, surpassing the expected $54.04 million. In a separate development, JPMorgan downgraded TechTarget’s stock rating from Neutral to Underweight, reducing the price target from $18.00 to $8.00, citing disappointing financial outcomes. Meanwhile, Craig-Hallum initiated coverage on TechTarget with a Buy rating and set a price target of $12.00, noting the company’s progress in resolving filing delays and strategic integration efforts. TechTarget has also partnered with Salesloft to enhance B2B sales efficiency by integrating its Priority Engine intent data platform with Salesloft’s cadences. This partnership aims to streamline workflows and improve sales outreach through precision targeting and accelerated engagement. These recent developments highlight a mix of challenges and strategic initiatives for TechTarget as it navigates the current market landscape.

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