TechTarget, Inc.

impacted by layoffs and so far today we've seen them land in other positions and typically when that happens that's a that's a good thing for tech target they bring us in they understand our value proposition and I don't want to say where the first company they call but I'm going to guess we're on top of the dial when they make that phone call so right now we've seen we've seen them get impacted we've seen them land in new positions and we've seen them call us and bring us in so that really hasn't changed in the last few quarters

Got it. And then, you know, I know you're going to be describing this more at the September Analyst Day, but as you've had some more time to review the assets of Informatech, maybe just a couple of things, any updated thoughts around the timeline to close the transaction? And then secondarily, any updated thoughts or confidence around the synergies and combined growth trajectory when the deal closes? Thanks, guys.

Yeah, no problem. What I'd say in the combination, we continue to make good progress in the combination. We did follow the S4 back at the end of June time frame. We're on track. We've scheduled an investor morning on September 19th. And yeah, we've gotten to understand the assets of Informatech, not only the assets, the people, the business, how they work in our proposed operating model going forward. We've done a lot of diligence on that on both sides. So we've expanded and laid out a proposed operating model. We've looked at the executive team, what we call executive minus one, executive minus two. So we've made all the right moves to make sure that we're ready for the close, which we expect to be on time. In terms of the synergies, what we stated, we still feel very confident on the numbers that we stated. It was $25 million in expense and $20 million in revenue over the course of a couple of years post-close, and we still feel very confident on those numbers.

Great. Thanks, guys.

Our next question comes from Bruce Gottfarb with the company Lake Street Capital Markets. Bruce, your line is now open.

Thank you. Greg, Michael, congratulations on your results. Thanks for taking my questions. Can you comment on demand trends? What do you see in international versus North America?

Yeah, I think you see a little bit of – we've been pretty consistent, Bruce, in terms of – if you go back to last August, a year ago today, when we had our earnings call, we said we feel that we're going to be navigating the bottom right now. We've hit the bottom. We're going to be navigating to that. And I think that's pretty consistent across the board. What you see in the U.S., you also see internationally. You might see some areas in some regions internationally that might be pinched a little tougher because some companies, a lot of the larger organizations are trying to centralize their budget where they might want to manage everything out of North America and then allocate it to the respective fields but have access to it in a centralized manner. So I think what we see here in the United States, we see across EMEA as well as APAC. Again, there are some of the APAC regions within APAC. You see some of the consolidation and centralization of budgets coming back to the global headquarters. A lot of those companies are based in the U.S., but it's fairly consistent across the board.

Great. Thank you. And then are you seeing, in terms of seasonal trends, are you seeing any signs of a Q4 budget flash? And in the second half of the year, are you seeing any, you know, is there a probability we'll see more long-term contracts?

Yeah, what I can tell you is that it was good to see, you know, when we look at the business, when we see signs of seasonality trends, to us it's a positive sign. So from Q1 to Q2, our revenue grew sequentially 14%. We had a year-over-year increase of 1% of revenue. But that Q1 to Q2 was, again, something that we had predicted back in February and May when we laid out the budget. That's a good sign. And historically, we see Q1 being the lowest quarter, Q2 having to jump, Q3 off slightly from Q2, and then the ramp up in Q4. So based on what we've seen so far, We like the size in terms of the seasonality, historical timelines that are coming back into business. As you recall, we didn't see that last year. It was pretty flat throughout the quarters, roughly $57, $58 million every quarter. So those are good signs. I don't want to predict what we'll see in Q4. Again, we have high interest rates, inflation, international tensions, and upcoming presidency. But typically, we have seen when interest rates get cut, investors really reward you know, our technology customers around growth. And you see technology companies invest more in sales and marketing. What we're seeing today, what we've seen in the last year and a half, there's been a lot of investments from our companies on R&D. And that R&D has to turn into ROI. And so, you know, one of the triggers that we see or one of the catalysts we've historically seen is a cotton interest rate.

Great. And then in terms of product roadmap, where do you expect to invest post, you know, the Informatech combination after close?

Well, I'll tell you what we're investing in now for TechTarget because it shouldn't really change and deviate much. As you saw in Q2, we announced our account in 10 feeds. So, again, it's a priority engine-based offering that has a continuous stream of our first party customers account insights into CRM and ABM systems. So this is a separately purchased subscription that plugs into our clients' current workflows. And clients can identify, they can engage, and convert target accounts through programmatic and social advertising. They do a lot of account prioritization, ABM segmentation and creation, and it's really valuable insights for sellers. We also announced a partnership with Sixth Sense Revenue AI platform for our joint customers. So Sixth Sense and Tectonic have a lot of joint customers. It links our account insight feeds through a direct integration right into Sixth Sense's revenue AI platform to easily leverage our first-party insights. It actually drives value for both offerings. So you can expect to see more integrations around ABM platforms and other types of platforms that organizations have. The previous Justin brought up Market Monitor and what we're seeing on that, having insights. Again, so this is all. offshoots or priority engines. And I'll play the roadmap is to consolidate all the offerings into a platform or create a unified solution for clients to manage. So as we've talked about, we really can help out and we bring value to our customers across their entire go-to-market strategy. From intelligence and advisory with their strategy and their product marketing positioning all the way to brand and content, to intent and demand that converts and drives that revenue and that demand for the R&D investments that our customers made. That's going to be very consistent. We're going to continue to accelerate those opportunities and making sure we have a unified platform to bring all of our solutions together for our customers to leverage across their go-to-market.

Great. Thank you very much. Thanks. Congrats again. Thank you.

Our next question comes from Bevin Shaw with the company Deutsche Bank. Bevin, your line is now open.

Great. Thanks for taking my questions. The first one, just kind of in the past you guys talked about the opportunity to benefit from the deprecation of third-party cookies. Now that kind of seems like it's no longer happening from the Google side. Do you have to kind of adjust your go-to-market messaging or anything kind of as you go forward?

Yeah, you know, Bob, a good question. First of all, marketers have been educated over the last couple years, several years, regarding the value of first party versus third party. So if anything, Google's sort of caught between a rock and a hard place in terms of what they have to do and what they've been doing with regulators across the EU, across the United States. But over the last two years, the conversation with marketers, it's really clear that first party insights or permission-based audience are really the quality and the go-to source to drive impact. So What I read and what we wrote on Google is that they're going to sort of come in this in-between where they're going to have to be very transparent on the options of whether you want to have your cookies tracked and not tracked. And I don't know about you, but I'm going to bet a lot of those folks that have that option presented right in front of them while they're doing their research are going to click no on that. So things may change a little bit, but I think we've actually benefited from the last couple of years of education of what's going on in the market and the value of first-party data and permission-based audiences.

That's super helpful. And just a quick follow up. I know notice in the shareholder letter that you guys didn't discuss kind of 2024 guidance. Should we, that should, should we still kind of rely upon that or is that no longer valid?

Yeah, well, we are very confident that we're going to be closing the transaction with Informatech, uh, early two, four. Therefore, it's really not going to be an actual number that is going to be, you know, moving, you know, going forward. The go-forward focus is going to be on the combined companies coming together in Q4 moving forward. So, you know, we just thought we don't want to cause confusion in the market on that, and we want to make sure that that was communicated and focused on our Q3 numbers today.

Perfect. Thanks for taking my question.

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