TechTarget, Inc. (NASDAQ:TTGT) Q2 2020 Earnings Conference Call - Final Transcript
Aug 05, 2020 • 05:00 pm ET
Good afternoon. Welcome to TechTarget's Second Quarter 2020 Earnings Release Conference Call. [Operator Instructions]
I would now like to turn the conference over to Charlie Rennick, General Counsel. Please go ahead.
Thank you, Kate, and good afternoon. Joining me here today are Greg Strakosch, our Executive Chairman; Mike Cotoia, our Chief Executive Officer; and Dan Noreck, 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 the business in advance of the call, we posted our shareholder letter on the Investor Relations section of our website and furnished it on an 8-K. 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 may be considered forward-looking statements. These forward-looking statements are based on assumptions and are not guarantees of our future performance. Actual results may differ materially from our forecast. Please refer to our risk factors in our annual report on Form 10-K and our quarterly reports on Form 10-Q filed with the SEC. These statements speak only as of the date of this call, and TechTarget undertakes no obligation to update them. 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 it over to Greg.
Great. Thank you, Charlie. Despite the significant challenges created by COVID-19, TechTarget continues to perform extremely well. For Q2 2020, revenue grew 1%, to $34.8 million. Adjusted EBITDA grew 7%, to $11.8 million. Adjusted EBITDA margin was 34%, up from 32% in Q2 2019. Long-term contracts represented 34% of revenue in Q2 2020, up from 33% in Q2 2019. Gross margin was 75% in Q2 2020 compared to 77% in the same quarter last year. And adjusted free cash flow was $10.1 million, representing 86% of adjusted EBITDA in the quarter.
We are very grateful and proud of the way the TechTarget team has responded to these difficult and unexpected challenges. We've learned a lot about ourselves and our customers that we believe will make us even a stronger company in the future.We are more optimistic than ever about our competitive position. As enterprise technology companies continue to rely on data to make their sales and marketing organizations smarter, more competitive and efficient, there is increasing demand for first-party data that is compliant with new privacy regulations. We believe that we are the best positioned company to take advantage of this large and growing opportunity in the trillion dollar IT market.
I will now open the call to questions.