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.\