TechTarget Announces Q3 2004 Online Revenue Growth of 42 Percent; Company also Posts Record Year-to-Date Profit as Profit Margins Widen

Business Wire, Nov 2, 2004

NEEDHAM, Mass. -- Information technology (IT) media company TechTarget today announced results for the quarter ending September 30, 2004. For the third quarter, the company reported a 42 percent increase in online revenues relative to the same period last year. The company also reported year-to-date results showing overall revenue growth of 40 percent, with each line of business showing a record increase in revenues. The company posted a record profit for the same time period. TechTarget has been profitable since 2002.

TechTarget's revenue and profit growth were driven by significant increases in the number of advertisers doing business with TechTarget, the number of advertising orders, and the average size of each advertising order.

"TechTarget's results demonstrate the strength of our business model, which has enabled us to seize significant market share from our competitors," said TechTarget CEO Greg Strakosch. "Revenues are continuing to grow robustly and our profit margins are expanding at an even faster rate. We are very optimistic about the company's future."

Q3 2004 Highlights

During the third quarter, TechTarget continued to grow its online, print and advertising operations, and laid the foundation for future growth:

--Hired Maryfran Johnson, former editor in chief of Computerworld, and Joseph L. Levy, founder of IDG's CXO media unit and former president and CEO of IDG Communications, to develop new integrated media properties

--Set a record for print revenue: with both Information Security and Storage magazine hitting new highs in ad revenues, TechTarget's print division posted an increase of 39% in revenues in Q3 2004

--Achieved record revenues and attracted a record number of qualified delegates to Storage Decisions Fall. The conference also set a record for on-site contract renewals by sponsors

--Released audits for 2004 Data Center Decisions, Enterprise Messaging Decisions, Smart CRM, and Storage Decisions Fall conferences showing 100% "net purchase involvement" by attendees

--Reached unprecedented traffic levels on its network of Web sites, serving a record number of visitors and pageviews during the quarter

--Increased membership to its Web sites, reaching nearly 3.5 million opt-in, registered members at the close of the quarter, a 53% increase versus the same time last year

--Received eight awards in the "Tabbies" competition organized by Trade, Association and Business Publications International (TABPI) for Information Security and Storage magazines. The Tabbies competition recognizes design and editorial excellence in English-language trade, association and business publications from around the world.

--CEO and co-founder Greg Strakosch honored as one of the "Top Ten in Business Media" in BtoB magazine's annual "Who's Who in Business Media," for building the company into a multi-platform media outlet that delivers targeted content in print, events, and online. This was the third consecutive year Strakosch has been named to the list.

About TechTarget

TechTarget produces the most targeted media for enterprise information technology (IT) professionals, including invitation-only conferences; controlled, qualified e-newsletters; Webcasts; two magazines, Storage and Information Security; and the TechTarget network of Web sites targeting specific sectors of the IT market. TechTarget leads the industry in developing innovative advertising vehicles that address IT marketers' need for high-ROI branding and lead-generation programs. The leading IT companies in the world rely on TechTarget media to reach qualified IT professionals with buying power. TechTarget has more than 2000 advertisers, including IBM, Microsoft, Oracle, HP, Cisco, Intel, and EMC. More information about TechTarget is available at www.techtarget.com