TechTarget, Inc. (NASDAQ:TTGT) Q3 2018 Earnings Conference Call Transcript
Nov 07, 2018 • 05:00 pm ET
Good day, and welcome to the TechTarget Q3 Earnings Release Conference Call. All participants will be on listen-only mode. (Operator Instructions) Please note, this event is being recorded. I would now like to turn the conference over to Mr. Charlie Rennick, General Counsel. Please go ahead.
Thank you, Lexie. Before turning the call over to Greg Strakosch, our Executive Chairman; and Mike Cotoia, our CEO, I want to remind everyone on the call of our earnings release process. As previously announced, in order to provide you with an update on the business in advance of the call, we have posted our shareholder letter on the Investor Relations section of our website and furnished it on an 8-K. Also joining us on the call today is Dan Noreck, our CFO. Following Greg and Mike's remarks, the management team will be available to answer your questions. (Forward-Looking Cautionary Statement). We may also refer to financial measures not prepared in accordance with GAAP. A reconciliation 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 and Mike.
Great. Thank you, Charlie. We had an excellent Q3 with double-digit revenue growth and 25% adjusted EBITDA growth. Revenues were $30.7 million in Q3, up 10%. Adjusted EBITDA was $7.7 million, up 25%. Revenues from Priority Engine grew 38%. 35% of our revenues in Q3 2018 were derived from longer-term contracts, up from 23% in Q3 2017. Adjusted EBITDA expanded to 25% of revenue in Q3 2018, compared to 22% of revenue in Q3 2017. Our preliminary 2019 forecast calls for double-digit revenue growth and over 20% adjusted EBITDA growth. We will give further details about our 2019 forecast with our next earnings release in February of 2019. Today, we are announcing a new $25 million stock repurchase plan. I will now open up the call for questions.