TechTarget, Inc.

Good day, and welcome to the TechTargets first quarter 2021 earnings release conference call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing star then zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on a touch-tone phone. To withdraw your question, please press star then two. Please note, this event is being recorded. I would now like to turn the conference over to Charlie Renick, General Counsel. Please go ahead.

Thank you, Betsy, and good afternoon. Joining me here today are Greg Straykosch, our Executive Chairman, Mike Katoya, our Chief Executive Officer, and Dan Norick, our Chief Financial Officer. Before turning the call over to Greg, I would 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 8K. 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. Please refer to our risk factors in our most recent public reports filed with the SEC including in our annual report on Form 10-K and our quarterly reports on Form 10-Q. These statements speak only as of the date of this call, and TechTarget undertakes no obligation to update them to reflect future events or circumstances. 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.

Great. Thank you, Charlie. The momentum we had at the end of 2020 has carried into 2021 as we continue to benefit from strong execution and some significant tailwinds, producing the following positive results. Adjusted revenue grew 85% to approximately $59 million. Adjusted EBITDA grew 123% to approximately $19 million. Adjusted EBITDA margin was 33%. Adjusted gross margin was 75%. Longer-term contracts represented 42% of revenue, an all-time high. Free cash flow was $12.6 million, representing 66% of adjusted EBITDA. Based on the momentum we are experiencing today, we are raising our annual guidance. We expect adjusted revenues between $245 million and $250 million. We expect adjusted EBITDA between $80 million and $85 million. I will now open the call to questions.