TechTarget, Inc. today announced that it is delaying its earnings release and investor conference call previously scheduled for 4:30 p.m. (ET) today. The Company is delaying its release of fourth quarter and 2008 financial results in order to finalize its review of the period over which it has historically recognized revenue from its webcast offerings.

As part of the year-end audit process, the Company has concluded that its methodology for determining the timing of recognizing webcast revenues was improper. The Company had been recognizing the majority of the revenue in the month in which the webcast occurred. The Company has concluded that the webcast revenues should have been recognized ratably over the period in which the webcasts were available on the websites of the Company and its partners, and is changing its revenue recognition policy accordingly. This accounting policy change does not increase or decrease the total amount of revenues to be recognized for any given contract. The policy change only affects how much of the total contract revenue is recognized in a particular month. Preliminary analysis indicates that this change in recognizing webcast revenues does not have a material effect on revenue or adjusted EBITDA for the years 2008 or 2007, although the Company expects revenue may shift between quarters. The Company is working to determine whether it is necessary to restate its financial statements for any prior period as a result of changes to its revenue recognition policies. It is estimated that this process will take approximately 90 days.

Estimated Fourth Quarter and 2008 Results

It is important to note that the following amounts are estimated results for the fourth quarter and 2008, and may change as a result of the Company’s continued evaluation of the timing of its revenue recognition as described above, or otherwise as we complete our 2008 audit.

Estimated revenues for the fourth quarter of 2008 are $25.1 million. Estimated online revenues are $18.1 million. Estimated event revenues are $6.0 million. Estimated print revenues are $1.0 million.

In December 2008, TechTarget incurred a one time restructuring charge of $1.4 million related to a reduction in workforce of 76 employees, the exiting of certain office space and the closure of its two print publications. Estimated adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization, as adjusted for stock-based compensation and excluding the restructuring charge) for the fourth quarter of 2008 was $4.6 million.

Total estimated revenues for 2008 are $103.5 million. Estimated online revenues for 2008 are $76.4 million, and estimated adjusted EBITDA, excluding the fourth quarter restructuring charge, is $20.2 million.

“Despite the challenging economic conditions, we are adjusted EBITDA-positive, have a very strong balance sheet and are very well-positioned for the future. We plan to continue to invest aggressively during the downturn to take advantage of the shift of advertising dollars to online marketing that demonstrates ROI,” said Greg Strakosch, Chairman and CEO of TechTarget.

Recent Company Highlights:

• 7^th consecutive year of positive adjusted EBITDA and 5^th consecutive year of being cash flow positive.
• Online revenues from the 12 largest IT vendors in the market grew by approximately 40% in Q4.
• The Q4 renewal rate for the Company’s 100 largest accounts was 94%
• The Company continues to have a very strong balance sheet. Cash balance on December 31, 2008 was $69.6 million with total debt of $3 million.
• Acquired The Brian Madden Company, the leading independent, website and conference to address the needs of the leading users of desktop and application virtualization technology.
• Launched SearchVirtualDesktop.com to address the needs of IT decision makers who are embarking on desktop and application virtualization projects.
• Launched SearchCompliance.com to provide senior IT leadership with strategic direction on managing information systems to improve compliance processes and results and to reduce the costs and complexity of supporting business requirements related to government and industry regulations.

“We recently went through our 2009 budget process. We had two main objectives. The first is to remain profitable with adjusted EBITDA margins in the range of 15% to 20%. The second is to aggressively invest during the downturn to further our lead,” said Strakosch.

Areas of Investment

• The Company launched about a dozen new websites in 2008 and plans to launch an additional 6 to 10 new websites in 2009.
• Continue to invest in sales and product initiatives with the largest IT vendors in the market. Our online revenues grew by approximately 40% from the 12 largest vendors in the IT market in 2008. As an online leader in the IT market, the Company benefits from the continued shift of budgets from offline to online at these accounts.
• International revenue was approximately only 4% of our business in 2008 and was one of the fastest growing areas of the Company. The Company is in the beginning stages of migrating from a partner model to a direct model internationally. The three geographies where the Company will go direct first are the United Kingdom, India and China.
• Continue to be opportunistic when it comes to acquisitions. Continue to take advantage of our balance sheet and our strengthening competitive position that will make us more attractive to companies looking to be acquired.

Financial Guidance for the First Quarter of 2009

In the first quarter of 2009, the Company expects total revenues to be within the range of $17 million to $18 million and adjusted EBITDA to be within the range of negative $700,000 to positive $200,000.