TechTarget, Inc. (TTGT) AI Stock Analysis

• Market Cap: $481.12M
• Dividend Yield: N/A
• Average Volume (3M): 666.91K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.64
• Revenue Growth: -7.89%
• EPS Growth: -192.35%
• Country: US
• Employees: 2,100
• Sector: Communication Services
• Sector Strength: 97
• Industry: Internet Content & Information
• EPS (TTM): -5.58
• Shares Outstanding: 71,489,000
• 10 Day Avg. Volume: 700,770
• 30 Day Avg. Volume: 666,910
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $10.33
• Price Target Upside: 53.49% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 57 Neutral
• Price Target: ―

TechTarget's overall stock score reflects the combination of financial challenges and strategic opportunities. While declining profitability and a negative P/E ratio weigh on the score, the merger with Informa Tech and a cautiously optimistic outlook from the earnings call provide potential for future growth. Technical indicators suggest moderate strength, supporting a balanced view of the company's prospects.

Positive Factors

Strategic Merger

The merger with Informa Tech aims to create a leading B2B growth accelerator, enhancing market reach and accelerating revenue growth, positioning the company for long-term success.

Product Innovation

Successful product innovations indicate strong R&D capabilities and customer engagement, which can drive future growth and competitive advantage.

Strong Financial Position

A robust financial position allows for strategic investments, enhancing competitive positioning and resilience against market fluctuations.

Negative Factors

Declining Profitability

Declining margins indicate operational challenges and reduced profitability, which can impact long-term financial health and investor confidence.

Revenue Decline

A significant revenue decline suggests challenges in market demand or competitive pressures, potentially affecting future growth prospects.

Free Cash Flow Decrease

Reduced free cash flow can strain liquidity, limiting the company's ability to invest in growth opportunities and manage financial obligations effectively.

TechTarget, Inc. Business Overview & Revenue Model

Company Description

TechTarget, Inc. (TTGT) is a prominent digital marketing company specializing in the provision of intent-driven marketing and sales services. The company operates in the technology media sector and focuses on creating and managing a network of specialized websites that deliver targeted content to technology buyers. TechTarget's core products and services include lead generation, brand advertising, and sales enablement solutions, primarily designed to help technology vendors connect with qualified buyers and drive their sales efforts.

How the Company Makes Money

TechTarget generates revenue primarily through its suite of marketing solutions designed for technology vendors. The company's revenue streams include lead generation services, where it provides clients with potential customer leads derived from its online properties. Additionally, TechTarget offers brand advertising services, which allow technology companies to promote their products through targeted advertisements on its network of websites. Another significant revenue source is the sales enablement solutions, which help vendors streamline their sales processes and enhance their engagement with potential buyers. TechTarget also benefits from strategic partnerships with technology vendors and industry associations, which enhance its market reach and contribute to its earnings. These partnerships often involve co-marketing initiatives and content syndication arrangements that expand TechTarget's audience and value proposition in the technology sector.

TechTarget, Inc. Financial Statement Overview

Summary

TechTarget's financial performance shows challenges with declining revenue and profitability, as evidenced by decreasing margins and free cash flow. The balance sheet remains stable, but low returns on equity highlight operational inefficiencies that need addressing.

Income Statement

TechTarget's annual revenue decreased significantly by 22.7% from 2022 to 2023, which indicates a challenging environment or market dynamics. The gross profit margin decreased to 67.15% from 73.61% in the previous year, and the net profit margin fell to 1.94% from 13.99%, showing declining profitability. Additionally, EBIT and EBITDA margins also declined, highlighting operational challenges.

Balance Sheet

The balance sheet shows a stable equity base with a debt-to-equity ratio of 1.93, indicating moderate leverage. The equity ratio is at 31.85%, suggesting that a significant portion of assets are financed through equity. However, the return on equity dropped to 2.00%, reflecting lower returns for shareholders. Overall, the balance sheet remains stable, but there is a need to improve returns.

Cash Flow

Free cash flow decreased by 24.5% from 2022 to 2023, signaling a potential strain on liquidity. The operating cash flow to net income ratio is strong at 16.25, indicating good cash conversion from earnings, but the free cash flow to net income ratio at 12.97 suggests some pressure on generating cash relative to profit.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	282.30M	284.90M	229.96M	297.49M	263.43M	148.38M
Gross Profit	164.96M	177.64M	139.90M	219.00M	192.22M	111.03M
EBITDA	-877.51M	-61.43M	18.86M	75.90M	54.80M	29.76M
Net Income	-923.77M	-116.86M	4.46M	41.61M	949.00K	17.07M
Balance Sheet
Total Assets	1.10B	2.27B	699.89M	764.72M	789.00M	456.57M
Cash, Cash Equivalents and Short-Term Investments	61.73M	353.69M	326.27M	364.73M	381.70M	82.70M
Total Debt	137.61M	435.98M	431.16M	480.16M	481.29M	184.44M
Total Liabilities	427.84M	694.63M	476.96M	547.24M	566.24M	254.06M
Stockholders Equity	668.68M	1.57B	222.93M	217.47M	222.76M	202.51M
Cash Flow
Free Cash Flow	37.68M	-71.61M	57.85M	76.67M	69.07M	45.79M
Operating Cash Flow	33.44M	-64.85M	72.49M	90.70M	81.70M	52.45M
Investing Cash Flow	89.39M	-79.36M	-93.02M	-14.45M	-56.98M	-175.75M
Financing Cash Flow	-297.23M	409.63M	-98.14M	-92.96M	254.46M	153.37M

TechTarget, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.73
• 50DMA: Positive
• 100DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TTGT, the sentiment is Positive. The current price of 6.73 is above the 20-day moving average (MA) of 6.07, above the 50-day MA of 6.64, and equal to the 200-day MA of ―, indicating a neutral trend. The MACD of 0.05 indicates Negative momentum. The RSI at 58.48 is Neutral, neither overbought nor oversold. The STOCH value of 83.21 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TTGT.

TechTarget, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
APPF	79 Outperform	10.10B	50.82	44.57%	―	19.47%	61.10%
EVER	74 Outperform	931.08M	20.54	27.34%	―	92.91%	0.00%
ZD	73 Outperform	1.57B	26.36	3.59%	―	5.94%	-8.89%
YELP	72 Outperform	2.01B	14.40	19.98%	―	5.37%	13.08%
HUBS	65 Neutral	27.34B	-2,294.74	-0.58%	―	18.96%	58.78%
TTGT	57 Neutral	$481.12M	―	-5.28%	―	-7.89%	-192.35%
PERI	54 Neutral	442.72M	-83.16	-0.69%	―	-38.18%	-107.00%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

TechTarget, Inc. Corporate Events

TechTarget Merges with Informa Tech for Growth Acceleration

TechTarget has undergone significant changes, with the company now operating as Informa TechTarget following its combination with Informa Tech’s digital businesses. This merger aims to create a leading B2B growth accelerator for the technology sector by leveraging unique intent data and specialist content. The new entity, trading under the ticker symbol ‘TTGT’, is poised to capitalize on a $20 billion market opportunity by offering advanced solutions to technology vendors. Informa TechTarget’s services are designed to enhance market reach and accelerate revenue growth for its clients.

TechTarget Approves Merger and Incentive Plans

TechTarget, Inc. recently held a special meeting where shareholders approved a merger with Informa Tech’s digital businesses, creating a new entity called New TechTarget. This merger, set to close on December 2, 2024, aims to form a leading global B2B growth accelerator. As part of this merger, TechTarget’s 2024 Incentive Plan and Employee Stock Purchase Plan were also approved, offering stock options and discounted shares to employees. TechTarget’s stock will continue to trade on Nasdaq under the ticker TTGT.