TechTarget, Inc.

Hello, everyone, and thank you for joining the Informa Tech Target Reports 2024 Full Year Financial Results. My name is Sammy, and I'll be coordinating your call today. During the presentation, you can register a question by pressing star followed by one on your telephone keypad. If you change your mind, please press star followed by two on your telephone keypad to remove yourself from the question queue. I'll now hand over to your host, Charles Rennick, General Counsel at Informa Tech Targets, to begin. Please go ahead, Charles.

Thank you, Sammy, and good morning, everyone. The speakers joining us here today are Gary Nugent, our chief executive officer, and Dan Norick, our chief financial officer. Before turning the call over to Gary, we 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 have posted a press release to the investor relations section of our website and furnished it on an 8K. You can also find these materials with the SEC free of charge at the SEC's website, www.sec.gov. Corresponding webcast, as well as a replay of this conference call, will be made available on the investor relations section of our website. Following Gary's remarks, the management team will be available to answer questions. Any statements made today by Informatech targets 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. Forward-looking statements involve a number of risks and uncertainties, including those discussed in the risk factors section of our most recent periodic report filed on Form 10-K. These statements speak only as of the date of this call, and Informant Tech Target undertakes no obligation to revise or update any forward-looking statements in order to reflect events that may arise after this conference call, except as required by law. 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 to the extent available without unreasonable effort accompanies our press release. And with that, I'll turn the call over to Gary.

Thank you, Charlie. Good morning from Boston, Massachusetts, and thank you for investing the time to join us today and for your patience whilst we work through the Informatech Target 2024 audit and preparations for the 10-K filing. We filed our full set of 2024 financial statements and the annual report on Form 10-K last week on May 28, which is available at www.informatechtarget.com. Reported results for 2024 reflect the structure of the combination, comprising 12 months' contribution from the Informatech digital businesses and around one month's contribution from the legacy tech target business. being the period from completion of the transaction on December the 2nd, 2024, through to the year end. On this basis, reported revenues were $285 million, with a gap net loss of $117 million, the latter reflecting the contribution period of TechTarget, acquisition and integration costs, and non-cash impairments at the point of combination. Adjusted EBITDA was $31 million. On a combined company basis, assuming the combination was in effect from January 1st, 2024, we delivered full year revenues of $490 million in line with the previous guidance. This equates to broadly flat underlying performance for the year. reflecting the subdued market backdrop with activity levels impacted by geopolitical tensions and macroeconomic uncertainties. The combined company net loss was $166 million, and combined company adjusted EBITDA was $82 million. The latter included certain non-recurring operating costs relating to the combination, including an allocation of the Informa Group's central costs to the Informa Tech digital businesses in 2024, a portion of which are included in the transitional service agreements entered into on the closing date. Our financial position at the year end was strong with cash, cash equivalents and short-term investments of around $354 million and around $416 million of outstanding convertible senior notes. Given the subdued market backdrop, I would describe our performance in 2024 as robust, holding revenues while improving margins. And if you let me turn to the future, our combined business sits at the intersection of two attractive and dynamic markets, technology and B2B marketing, representing a $20 billion addressable market. Through this combination, we are creating the scale, talent and operating platform to nurture and build specialist audiences and deliver increasing value for clients. And I am excited and optimistic about the opportunity that we have ahead of us and how that can translate into value for our other stakeholders too, including our shareholders and our 2,000 or so colleagues at Informatech targets. In 2025, the foundation year for Informatech Target, our focus is on combining our strengths across brands, products, go-to-market, and talent to position the business for long-term growth. The combination program to successfully integrate the legacy companies is well underway with all executive and senior leadership appointments completed and reporting lines and responsibilities confirmed. The restructuring of our sales organization has been accelerated including a unified go-to-market strategy that gives increased focus to our largest customer accounts through dedicated service teams. Product strategy work is advancing well, including a repositioning of the net line product to address the volume end of the demand market and reshaping the intelligence and advisory portfolio to better meet the needs of our evolving customer requirements. We are tracking well ahead of year one operating cost energy target of $5 million with a high degree of confidence in our ability to meet or beat the $45 million overall run rate synergies targeted by year three. The business environment remains subdued, but our guidance remains in line with previous commentary with a target for broadly flat light for light revenues and an increase in adjusted EBITDA for the year supported by the over-delivery of combination synergies and non-recurrence of one-off combination costs that were included within the 2024 results. Beyond the near-term market dynamics and the foundation year, we remain confident in the medium-term growth opportunities for Informa Tech Target, underpinned by innovation and growth in technology and the increasing demand for more efficient data-driven B2B digital services. A final note, we will update our investor presentation following today's call, which again you will find on www.informatechtarget.com. Thank you. I will now pass the call back to our moderator, Sami, and open the call for any questions.