Latest news with #Q1Results
Yahoo
01-08-2025
- Automotive
- Yahoo
Allegro Microsystems Inc (ALGM) Q1 2026 Earnings Call Highlights: Strong Revenue Growth and ...
Revenue: $203 million, a 5% sequential increase and 22% year-over-year growth. Gross Margin: 48.2%, an increase of 260 basis points sequentially. Operating Margin: 11.1% of sales, up from 9% in Q4 and 6% a year ago. Non-GAAP EPS: $0.09, above the midpoint of guidance. Adjusted EBITDA: 16.4% of sales. Automotive Sales Growth: 3% sequential increase, 13% year-over-year growth. E-mobility Sales Growth: 16% sequential increase, 31% year-over-year growth. Industrial and Other Sales Growth: 11% sequential increase, 50% year-over-year growth. Cash Flow from Operations: $62 million. Free Cash Flow: $51 million or 25% of sales. Debt Repayment: Voluntary repayment of $35 million, reducing debt balance to $310 million. Net Debt: Reduced to $181 million from $224 million at the end of Q4. Inventory Days: 141 days, down from 148 in Q4. Warning! GuruFocus has detected 5 Warning Signs with ALGM. Release Date: July 31, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Allegro Microsystems Inc (NASDAQ:ALGM) reported strong first quarter results with sales of $203 million and a gross margin of 48.2%, both above the high end of guidance ranges. The company saw significant growth in e-mobility sales, particularly in current sensors for xEV applications, with a 16% sequential increase and a 31% year-over-year increase. Allegro Microsystems Inc (NASDAQ:ALGM) achieved more than 75% of first quarter design wins in strategic focus areas, including e-mobility, data center, robotics and automation, clean energy, and medical applications. The company released innovative new products, such as an ASIL C current sensor and a FortiGate BYOL motor driver IC, enhancing its leadership in EV inverters and data center cooling solutions. Allegro Microsystems Inc (NASDAQ:ALGM) continues to optimize manufacturing processes, resulting in cost reductions and improved gross margins, with a focus on relentless innovation and performance leadership. Negative Points Operating expenses were $75 million, which was $3 million above the outlook due to increased variable compensation and R&D spending. The company faces foreign exchange headwinds from a weakening US dollar, impacting gross margins. There is ongoing competition in the Chinese market, particularly at the lower end, which could impact Allegro Microsystems Inc (NASDAQ:ALGM)'s market share. The company is not yet shipping to true end demand, indicating potential inventory imbalances in the distribution channel. Allegro Microsystems Inc (NASDAQ:ALGM) is still in the process of transitioning its products to a China for China supply chain, which requires significant effort and time. Q & A Highlights Q: Can you discuss the forward demand picture and the impact of potential tariff pull-ins versus continued recovery? A: Michael Doogue, President and CEO, explained that Allegro is seeing positive trends such as strong bookings and growing backlog. While tariffs create uncertainty, discussions with customers indicate potential future component shortages due to real demand, particularly in industrial and automotive sectors. Derek D'Antilio, CFO, added that the impact of tariffs on Allegro is currently immaterial, with no direct impact on their shipments. Q: What helped drive the upside in gross margin, and how do you see the drivers of gross margin moving forward? A: Derek D'Antilio, CFO, noted that Q1 gross margin exceeded expectations due to better-than-expected revenue and cost benefits from supplier negotiations. Looking forward, they expect continued benefits from cost reductions and a favorable mix, with a projected gross margin of 48% to 50% in Q2. Q: How do you view the automotive demand recovery, and what are your expectations for automotive sales growth? A: Michael Doogue, President and CEO, mentioned that S&P revised their automotive production forecast upwards, indicating a flat vehicle production landscape. Allegro is seeing increased demand from automotive customers, with signs pointing to a recovery in the sector. Q: Can you provide more details on the industrial exposure, particularly in clean energy and data center sectors? A: Michael Doogue, President and CEO, explained that while clean energy is a part of their industrial focus, they are seeing strong growth in data center and robotics sectors. The industrial business has experienced four consecutive quarters of growth, with data center leading the recent uptick. Q: What are the future drivers for e-mobility, and how do you see the timing of new products impacting growth? A: Michael Doogue, President and CEO, highlighted that e-mobility growth is driven by increasing dollar content in steering and braking systems, as well as current sensors in EVs. Allegro's isolated gate drivers are expected to drive significant growth, particularly in the EV and data center markets. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
01-08-2025
- Automotive
- Yahoo
Allegro Microsystems Inc (ALGM) Q1 2026 Earnings Call Highlights: Strong Revenue Growth and ...
Revenue: $203 million, a 5% sequential increase and 22% year-over-year growth. Gross Margin: 48.2%, an increase of 260 basis points sequentially. Operating Margin: 11.1% of sales, up from 9% in Q4 and 6% a year ago. Non-GAAP EPS: $0.09, above the midpoint of guidance. Adjusted EBITDA: 16.4% of sales. Automotive Sales Growth: 3% sequential increase, 13% year-over-year growth. E-mobility Sales Growth: 16% sequential increase, 31% year-over-year growth. Industrial and Other Sales Growth: 11% sequential increase, 50% year-over-year growth. Cash Flow from Operations: $62 million. Free Cash Flow: $51 million or 25% of sales. Debt Repayment: Voluntary repayment of $35 million, reducing debt balance to $310 million. Net Debt: Reduced to $181 million from $224 million at the end of Q4. Inventory Days: 141 days, down from 148 in Q4. Warning! GuruFocus has detected 5 Warning Signs with ALGM. Release Date: July 31, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Allegro Microsystems Inc (NASDAQ:ALGM) reported strong first quarter results with sales of $203 million and a gross margin of 48.2%, both above the high end of guidance ranges. The company saw significant growth in e-mobility sales, particularly in current sensors for xEV applications, with a 16% sequential increase and a 31% year-over-year increase. Allegro Microsystems Inc (NASDAQ:ALGM) achieved more than 75% of first quarter design wins in strategic focus areas, including e-mobility, data center, robotics and automation, clean energy, and medical applications. The company released innovative new products, such as an ASIL C current sensor and a FortiGate BYOL motor driver IC, enhancing its leadership in EV inverters and data center cooling solutions. Allegro Microsystems Inc (NASDAQ:ALGM) continues to optimize manufacturing processes, resulting in cost reductions and improved gross margins, with a focus on relentless innovation and performance leadership. Negative Points Operating expenses were $75 million, which was $3 million above the outlook due to increased variable compensation and R&D spending. The company faces foreign exchange headwinds from a weakening US dollar, impacting gross margins. There is ongoing competition in the Chinese market, particularly at the lower end, which could impact Allegro Microsystems Inc (NASDAQ:ALGM)'s market share. The company is not yet shipping to true end demand, indicating potential inventory imbalances in the distribution channel. Allegro Microsystems Inc (NASDAQ:ALGM) is still in the process of transitioning its products to a China for China supply chain, which requires significant effort and time. Q & A Highlights Q: Can you discuss the forward demand picture and the impact of potential tariff pull-ins versus continued recovery? A: Michael Doogue, President and CEO, explained that Allegro is seeing positive trends such as strong bookings and growing backlog. While tariffs create uncertainty, discussions with customers indicate potential future component shortages due to real demand, particularly in industrial and automotive sectors. Derek D'Antilio, CFO, added that the impact of tariffs on Allegro is currently immaterial, with no direct impact on their shipments. Q: What helped drive the upside in gross margin, and how do you see the drivers of gross margin moving forward? A: Derek D'Antilio, CFO, noted that Q1 gross margin exceeded expectations due to better-than-expected revenue and cost benefits from supplier negotiations. Looking forward, they expect continued benefits from cost reductions and a favorable mix, with a projected gross margin of 48% to 50% in Q2. Q: How do you view the automotive demand recovery, and what are your expectations for automotive sales growth? A: Michael Doogue, President and CEO, mentioned that S&P revised their automotive production forecast upwards, indicating a flat vehicle production landscape. Allegro is seeing increased demand from automotive customers, with signs pointing to a recovery in the sector. Q: Can you provide more details on the industrial exposure, particularly in clean energy and data center sectors? A: Michael Doogue, President and CEO, explained that while clean energy is a part of their industrial focus, they are seeing strong growth in data center and robotics sectors. The industrial business has experienced four consecutive quarters of growth, with data center leading the recent uptick. Q: What are the future drivers for e-mobility, and how do you see the timing of new products impacting growth? A: Michael Doogue, President and CEO, highlighted that e-mobility growth is driven by increasing dollar content in steering and braking systems, as well as current sensors in EVs. Allegro's isolated gate drivers are expected to drive significant growth, particularly in the EV and data center markets. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
04-07-2025
- Business
- Yahoo
Q1 Earnings Review: Apparel and Accessories Stocks Led by ThredUp (NASDAQ:TDUP)
As the craze of earnings season draws to a close, here's a look back at some of the most exciting (and some less so) results from Q1. Today, we are looking at apparel and accessories stocks, starting with ThredUp (NASDAQ:TDUP). Thanks to social media and the internet, not only are styles changing more frequently today than in decades past but also consumers are shifting the way they buy their goods, favoring omnichannel and e-commerce experiences. Some apparel and accessories companies have made concerted efforts to adapt while those who are slower to move may fall behind. The 17 apparel and accessories stocks we track reported a strong Q1. As a group, revenues beat analysts' consensus estimates by 1.3% while next quarter's revenue guidance was in line. Thankfully, share prices of the companies have been resilient as they are up 6.6% on average since the latest earnings results. Founded to revolutionize thrifting, ThredUp (NASDAQ:TDUP) is a leading online fashion resale marketplace offering a wide selection of gently-used clothing and accessories. ThredUp reported revenues of $71.29 million, up 10.5% year on year. This print exceeded analysts' expectations by 4.4%. Overall, it was an exceptional quarter for the company with an impressive beat of analysts' EBITDA estimates. 'We are proud to deliver Q1 out-performance, including a record quarter for new buyer acquisition,' said ThredUp CEO and co-founder James Reinhart. ThredUp scored the fastest revenue growth of the whole group. Unsurprisingly, the stock is up 80.1% since reporting and currently trades at $7.98. Is now the time to buy ThredUp? Access our full analysis of the earnings results here, it's free. Rising to fame via TikTok and founded in 2013 by Heather Hasson and Trina Spear, Figs (NYSE:FIGS) is a healthcare apparel company known for its stylish approach to medical attire and uniforms. Figs reported revenues of $124.9 million, up 4.7% year on year, outperforming analysts' expectations by 4.8%. The business had an exceptional quarter with an impressive beat of analysts' adjusted operating income estimates and a solid beat of analysts' EBITDA estimates. Figs pulled off the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 16.4% since reporting. It currently trades at $5.85. Is now the time to buy Figs? Access our full analysis of the earnings results here, it's free. With its watches displayed in 20 museums around the world, Movado (NYSE:MOV) is a watchmaking company with a portfolio of watch brands and accessories. Movado reported revenues of $131.8 million, down 1.9% year on year, falling short of analysts' expectations by 7.3%. It was a disappointing quarter as it posted a significant miss of analysts' EPS estimates. Movado delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 5.5% since the results and currently trades at $16.49. Read our full analysis of Movado's results here. The parent company of Tommy Bahama, Oxford Industries (NYSE:OXM) is a lifestyle fashion conglomerate with brands that embody outdoor happiness. Oxford Industries reported revenues of $392.9 million, down 1.3% year on year. This result topped analysts' expectations by 2.1%. Aside from that, it was a slower quarter as it produced full-year EPS guidance missing analysts' expectations. The stock is down 13.5% since reporting and currently trades at $43.30. Read our full, actionable report on Oxford Industries here, it's free. Originally founded as Coach, Tapestry (NYSE:TPR) is an American fashion conglomerate with a portfolio of luxury brands offering high-quality accessories and fashion products. Tapestry reported revenues of $1.58 billion, up 6.9% year on year. This print surpassed analysts' expectations by 3.7%. It was a very strong quarter as it also logged an impressive beat of analysts' constant currency revenue estimates and full-year EPS guidance exceeding analysts' expectations. The stock is up 20.7% since reporting and currently trades at $90.20. Read our full, actionable report on Tapestry here, it's free. As a result of the Fed's rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed's 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump's victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025. Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
03-07-2025
- Business
- Yahoo
5 Must-Read Analyst Questions From Under Armour's Q1 Earnings Call
Under Armour's first quarter results reflected ongoing efforts to reposition the brand through tighter control of promotional activity and a sharper focus on premium product positioning. Although revenue declined year over year, management credited proactive inventory management, a disciplined reduction in discounting, and advances in direct-to-consumer (DTC) strategies as key drivers. CEO Kevin Plank noted, 'Our fourth quarter results allowed us to exceed our fiscal outlook, demonstrating some of the foundational traction we're gaining as we reposition the Under Armour brand.' The company's transformation plan emphasized higher-quality revenue and brand equity over short-term volume gains, setting the stage for a more sustainable business model. Is now the time to buy UAA? Find out in our full research report (it's free). Revenue: $1.18 billion vs analyst estimates of $1.17 billion (11.4% year-on-year decline, 1.3% beat) Adjusted EPS: -$0.08 vs analyst estimates of -$0.08 (in line) Adjusted EBITDA: $3.41 million vs analyst estimates of -$4.15 million (0.3% margin, significant beat) Revenue Guidance for Q2 CY2025 is $1.13 billion at the midpoint, below analyst estimates of $1.17 billion Adjusted EPS guidance for Q2 CY2025 is $0.02 at the midpoint, above analyst estimates of $0 Operating Margin: -6.1%, down from -0.3% in the same quarter last year Locations: 441 at quarter end, up from 440 in the same quarter last year Constant Currency Revenue fell 9.8% year on year (-4.9% in the same quarter last year) Market Capitalization: $2.95 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Jay Sole (UBS) asked about the status of the North American reset and how it is progressing. CEO Kevin Plank detailed the leadership changes and emphasized a comprehensive approach involving product, storytelling, and targeted marketing as key to regaining brand affection. Simeon Siegel (BMO Capital Markets) inquired about the normalization of e-commerce and the timeline for revenue stabilization as promotions are reduced. Plank responded that the e-commerce shift is focused on building a healthier, brand-right foundation with loyalty and dynamic content, while Bergman highlighted the full-price sales mix and ongoing digital investments. Sam Poser (Williams Trading) questioned inventory trends and the relationship between unit and dollar inventory as the company moves toward a premium strategy. Plank explained that inventory is being tightly managed and that higher average unit retail is a key focus in elevating the brand. Laurent Vasilescu (BNP Paribas) asked about the order book and whether recent tariff news had changed partner behavior. Bergman said there were no significant cancellations and that partners were seeing improvements in product design and style, with stronger execution expected as new collections roll out. Peter McGoldrick (Stifel) requested insight into the evolving product pyramid and its impact on average selling prices and gross margin. Plank described the goal to increase the share of 'best' products as a driver of both pricing power and brand positioning, while Bergman noted that mix changes and reduced promotions should support margin improvement. Looking ahead, the StockStory team will be monitoring (1) the pace and effectiveness of Under Armour's North American brand reset, including e-commerce and promotional strategies, (2) the impact of new premium product launches like UA Halo and continued innovation in footwear and apparel, and (3) the company's ability to offset potential headwinds from tariffs and global supply chain adjustments. Progress in international market momentum and execution of cost control initiatives will also be key indicators. Under Armour currently trades at $7.10, up from $6.22 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it's free). Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
01-07-2025
- Business
- Yahoo
Informa TechTarget Reports Preliminary Q1 2025 Results
NEWTON, Mass., July 01, 2025--(BUSINESS WIRE)--TechTarget, Inc. (Nasdaq: TTGT), ("Informa TechTarget" or the "Company"), a leading growth accelerator for the B2B Technology sector, today published preliminary results for the first quarter of 2025, delivering Revenues of $104 million and reaffirming full year expectations for year-on-year growth in Adjusted EBITDA(2). Gary Nugent, Chief Executive, Informa TechTarget, said: "We have made good operational progress in the first quarter of 2025 and will continue these efforts throughout our Foundation Year, laying the groundwork to realize the benefits of breadth, scale and diversity created through combination, and positioning the Company for long-term growth." Highlights Q1 Preliminary Revenue Performance as Expected: Revenues increased 77% over the prior year period's reported revenues and declined approximately 6% year-on-year on a Combined Company Basis(3), with run-rate improving into Q2, in line with previous commentary; Mid-single digit revenue decline expected over first six months of the year on a Combined Company basis; Preliminary Q1 Net Income impacted by technical non-cash impairment reflecting difference in current market capitalization versus year-end book value; Accelerated Combination Plan: Early Q1 focus was on combining teams, establishing reporting lines and confirming senior leadership, providing clarity to colleagues as quickly as possible; additionally, we began the process of focusing on our ways of working, including the first steps to harmonize our systems and operational models to enhance collaboration and efficiencies; We expect this work to continue throughout 2025; The Foundation Year: Next phase of Combination Plan focused on consolidating product portfolio, simplifying go-to-market offer and increasing the commercial focus on core growth opportunities, including key client accounts and the CyberSecurity sector; Full Year Expectations Reaffirmed: Targeting broadly flat revenues across 2025, with improving momentum through second half as combined group proposition gains traction in the market; Accelerated approach to combination brings forward synergy targets, underpinning guidance for year-on-year growth in adjusted EBITDA; Long-term Growth Opportunity: We believe underlying demand for efficient, data-driven B2B marketing solutions remains strong, particularly within Enterprise Technology; The scale, breadth and reach of Informa TechTarget creates a unique opportunity to build a leading position in a long-term growth market. Financial Summary(1) 2025 2025 2024 2024 Growth Growth Growth Growth Three Months Ended March 31 High Preliminary Range Low Preliminary Range Reported Combined High Preliminary Range vs Reported Low Preliminary Range vs Reported High Preliminary Range vs Combined Low Preliminary Range vs Combined $m $m $m $m(3) % % %(3) %(3) Revenue $ 104 $ 104 $ 59 $ 110 77 % 77 % (6 )% (6 )% Net loss $ (545 ) $ (513 ) $ (20 ) $ (32 ) 2693 % 2529 % 1625 % 1524 % Net loss margin (524 )% (494 )% (33 )% (29 )% (491 )% (460 )% (496 )% (465 )% Adjusted EBITDA(2) $ 3 $ 3 $ 0 $ 13 902 % 902 % (79 )% (79 )% Adjusted EBITDA margin (%)(2) 3 % 3 % 0 % 12 % 2 % 2 % (9 )% (9 )% (1) The Company's results are preliminary as it continues to finalize its goodwill impairment assessment and the related income tax accounting for Q1 2025. (2) Denotes a non-GAAP financial measure. See Non-GAAP Financial Measures below for explanations of these measures and reconciliations to a comparable GAAP measure. (3) Combined Company measure which represents Informa TechTarget's performance for the quarter ended March 31, 2024 as if the acquisition of Former TechTarget had occurred on January 1, 2023. Note that it is not necessarily indicative of the performance of Informa TechTarget that may have actually occurred had this been completed on January 1, 2023. The Company performed broadly as expected with revenues of $104 million, up 77% over the prior year period's reported revenues, and approximately 6% lower on a Combined Company basis. Our like-for-like performance largely reflected what remains a subdued market backdrop. In addition, through the early months of the year the Company was focused on its Combination Plan, bringing together colleagues, teams, processes and technology. We approached this at pace to provide certainty as quickly as possible which inevitably created some short-term disruption. However, it enabled the Company to enter the second quarter with clarity on reporting lines and leadership, with a clear road map for further refining the product and go-to-market strategy. This accelerated approach also enabled us to bring forward the delivery of cost synergies in the first year post-combination and this underpins our guidance for growth in adjusted EBITDA in 2025, even with Combined Company revenues expected to be broadly flat. The Company is expecting to report a Q1 net loss of $513 million to $545 million, compared to $32 million for the Combined Company in the prior year period, reflecting higher acquisition and integration costs, as well as a $450 million to $475 million non-cash impairment to reflect the Company's current depressed market capitalization relative to book value at year-end and income tax expense of $25 million to $32 million. Adjusted EBITDA decreased by about $10 million versus the prior year period on a Combined Company basis. Filing Update and Regaining Compliance with Nasdaq Listing Rules The Company expects to file its Form 10-Q for the quarter ended March 31, 2025 with the Securities and Exchange Commission shortly post the July 4th holidays, once all procedures and reviews have been finalized. This should enable the Company to regain compliance with Nasdaq Listing Rule 5250(c)(1) regarding adherence to filing requirements, with our second quarter financial results targeted for release on or before August 14, 2025. The Foundation Year: Combine and Grow In 2025, we are focused on effectively combining our two legacy businesses and building a strong foundation for future growth, initially targeting three core areas: 1. Leadership: We moved quickly to appoint the Executive and Senior Leadership teams, securing a balance of experience and knowledge from the legacy Informa Tech and the legacy TechTarget businesses. These appointments enabled us to confirm responsibilities and reporting lines, providing Colleagues with clarity as quickly as possible; 2. Operating Model: The operating model is being updated post-combination, including: a. Brand consolidation: We combined the brands within our Intelligence & Advisory offerings (Canalys, ESG, Omdia and Wards) under the Omdia brand, simplifying the offer to customers and freeing up analysts to spend more time in the field; b. Product positioning: We made an early decision to reposition the NetLine syndicated audience offering to the volume-end of the demand generation market, playing to current market sensitivities and distinguishing it from our other brands; c. Go-to-Market Focus: We restructured our go-to-market teams to better target major customer accounts, reflecting that half our $20 billion addressable market is accounted for by just 200 companies. We have established dedicated sales and service teams to serve an initial cohort of top accounts, with more to come, facilitating stronger, more personalized relationships, helping us to better identify opportunities to grow and enhance the client experience; We have also doubled down on the CyberSecurity sector, a large and growing market where we have established audiences and data (including via Informa PLC's ownership of the BlackHat brand) but our revenue share remains low; d. Technology & Data: While broader process and systems integration will be implemented over a longer time frame, we prioritized operationalizing our first party data exchange with Informa PLC, opening up access to its 20 million+ permissioned B2B audience generated by its Live B2B Events portfolio. 3. Cost synergies: We immediately targeted addressing duplication in administration costs, technology licenses, property and roles. While this created some disruption in the early months of the year, we entered Q2 with greater certainty and now expect to more than double our original Year 1 cost savings goal, targeting a minimum of $10 million operating synergies in 2025. This gives us a high degree of confidence we can meet or beat the overall $45 million run rate synergy target by the end of Year 3 ($25 million cost synergies and $20 million revenue synergies). 2025 Outlook Reaffirmed Our guidance for the full year is unchanged, with a target for broadly flat year-on-year revenues on a Combined Company basis. Following a Q1 revenue decline of approximately 6%, we have seen improving momentum in Q2, leaving revenues down approximately 5% over the first five months of the year, with a similar figure expected at the half year. We are targeting further sequential improvement through Q3 and Q4 to deliver a broadly flat outcome for the year, with momentum improving as our product initiatives and revitalized go-to-market approach gains further traction with customers. The accelerated delivery of cost synergies underpins our ambition for positive growth in adjusted EBITDA in 2025, despite broadly flat revenues, with a target to deliver in excess of $85 million for the year. We anticipate recording a further non-cash goodwill impairment in Q2 2025, reflecting the market uncertainty cited in our previous commentary that persisted through the first half of the year and the technical accounting impact of our depressed market capitalization at the end of the quarter relative to book values. This adjustment will have no impact on our operational performance or cash position. Our guidance does not assume any marked change in the market environment, with activity expected to remain subdued, as enterprise technology customers continue to limit investments in marketing and sales to prioritize research and development in AI-related initiatives. Long term growth opportunity While this market environment is impacting the immediate market opportunity for Informa TechTarget, we remain confident that the breadth and depth of our product offerings can drive market share gains over time, with a range of long-term growth drivers: Enterprise IT market penetration addressing the needs of our clients across their product life cycle through the breadth, reach and scale of our combined products and talent and leveraging our expanded first-party data assets; International expansion to capture approximately 40% of the global market that is estimated to be made up of technology vendors outside the US; Growth in industry B2B tech markets by expanding into adjacent tech-driven markets such as AutoTech, HealthTech, Fintech and others; New product and platform development to deliver richer data-driven insights and deeper market access; Inorganic growth opportunities that further strengthen our market position, supported by our strong balance sheet and cash generation. We also see AI as a significant opportunity, representing a growing customer market (educating, influencing and targeting buyers of AI-enabled products), a tool to drive efficiency across our operating platform, and a technology to power our content generation strategy and value proposition of our products. AI is changing how audiences discover information, with a shift from traditional search to AI-enabled platforms. We are therefore strengthening our capabilities in Artificial Intelligence Engine Optimization (AIEO), alongside continuing investment in Search Engine Optimization (SEO), ensuring that our trusted, original, authoritative content is referenced and cited in relevant AI summaries as well as through organic search. We also continue to invest in our many other audience development and engagement strategies, including the Industry Dive outbound newsletter model, the BrightTALK and NetLine partnership models, and first party data from Informa PLC, underlining the strength and diversity in our approach to building and nurturing audiences. Conference Call and Webcast The Company will discuss these financial results in a conference call and webcast on Tuesday July 1, 2025 at 5:00 PM (Eastern Time) which will include brief remarks by management followed by questions and answers. Conference Call Dial-In Information: United States (Toll Free): 1-833-470-1428 United States: 1-404-975-4839 United Kingdom (Toll Free): +44 808 189 6484 United Kingdom: +44 20 8068 2558 Global Dial-in Numbers Access code: 557186 Please access the call at least 10 minutes prior to the time the conference is set to begin. Please ask to be joined into the Informa TechTarget call. Conference Call Webcast Information:This webcast can be accessed via Informa TechTarget's website at: Conference Call Replay Information:A replay of the conference call will be available via telephone beginning one (1) hour after the conference call through July 31, 2025 at 11:59 p.m. EDT. To hear the replay: United States (Toll Free): 1-866-813-9403 United States: 1-929-458-6194 Access Code: 670569 About Informa TechTarget TechTarget, Inc. (Nasdaq: TTGT), which also refers to itself as Informa TechTarget, informs, influences and connects the world's technology buyers and sellers, helping accelerate growth from R&D to ROI. With a vast reach of over 220 highly targeted technology-specific websites and over 50 million permissioned first-party audience members, Informa TechTarget has a unique understanding of and insight into the technology market. Underpinned by those audiences and their data, we offer expert-led, data-driven, and digitally enabled services that have the potential to deliver significant impact and measurable outcomes to our clients: Trusted information that shapes the industry and informs investment Intelligence and advice that guides and influences strategy Advertising that grows reputation and establishes thought leadership Custom content that engages and prompts action Intent and demand generation that more precisely targets and converts Informa TechTarget is headquartered in Boston, MA and has offices in 19 global locations. For more information, visit and follow us on LinkedIn. © 2025 TechTarget, Inc. All rights reserved. All trademarks are the property of their respective owners. Non-GAAP Financial Measures This release and the accompanying tables include a discussion of Adjusted EBITDA, Adjusted EBITDA Margin, Combined Company Revenue, Combined Company Net Loss, Combined Company Net Loss Margin, Combined Company Adjusted EBITDA and Combined Company Adjusted EBITDA Margin, all of which are non-GAAP financial measures which are provided as a complement to results provided in accordance with GAAP."Adjusted EBITDA" means earnings before net interest, income taxes, depreciation and amortization, as further adjusted to exclude stock-based compensation, other income and expenses such as asset impairment and impairment related to goodwill, and costs related to mergers, acquisitions or reduction in forces expenses, if any."Adjusted EBITDA Margin" means Adjusted EBITDA divided by Revenue."Combined Company Revenue" means revenue calculated as if the acquisition of Former TechTarget occurred on January 1, 2023. See Footnote 5 of the Company's Form 10-K for December 31, 2024 for additional information related to our presentation of unaudited supplemental Combined Company financial information."Combined Company Net Loss" means net income/loss calculated as if the acquisition of Former TechTarget had occurred on January 1, 2023. See Footnote 5 of the Company's Form 10-K for December 31, 2024 for additional information related to our presentation of unaudited supplemental Combined Company financial information."Combined Company Net Loss Margin" means Combined Company Net Loss divided by Combined Company Revenue."Combined Company Adjusted EBITDA" means earnings before net interest, income taxes, depreciation and amortization, as further adjusted to exclude stock-based compensation, other income and expenses such as asset impairment and impairment related to goodwill, and costs related to mergers, acquisitions or reduction in forces expenses, if any. See Footnote 5 of the Company's Form 10-K for December 31, 2024 for additional information related to our presentation of unaudited supplemental Combined Company financial information. The items included in the calculation assume the acquisition of Former TechTarget had occurred on January 1, 2023."Combined Company Adjusted EBITDA Margin" means Combined Company Adjusted EBITDA divided by Combined Company Revenue. These non-GAAP measures should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, GAAP results. In addition, our definitions of Adjusted EBITDA, Adjusted EBITDA margin, Combined Company Revenue, Combined Company Net Loss, Combined Company Net Loss Margin, Combined Company Adjusted EBITDA and Combined Company Adjusted EBITDA Margin, may not be comparable to the definitions as reported by other companies. We believe that these measures provide relevant and useful information to enable us and investors to compare our operating performance using an additional measurement. We use these measures in our internal management reporting and planning process as primary measures to evaluate the operating performance of our business, as well as potential acquisitions. Combined Company measures are provided to assist our investors in further comparing our performance as if the acquisition of Former TechTarget occurred on January 1, 2023. The components of Adjusted EBITDA and Combined Company Adjusted EBITDA include the key revenue and expense items for which our operating managers are responsible and upon which we evaluate their performance. Adjusted EBITDA is also used in presentations to our Board of Directors. Furthermore, we intend to provide these non-GAAP financial measures as part of our future earnings discussions and, therefore, the inclusion of these non-GAAP financial measures will provide consistency in our financial reporting. A reconciliation of these non-GAAP measures to GAAP is provided in the accompanying tables, except that full reconciliations of certain forward-looking non-GAAP measures are not provided because the Company is unable to provide such reconciliations without unreasonable effort due to the uncertainty and inherent difficulty of predicting the occurrence and financial impact of certain significant items. These items include, but are not limited to, acquisition and integration costs, amortization of intangible assets, restructuring and other expenses, asset impairment, and the income tax effect of these items. These items are uncertain, depend on various factors, including, but not limited to, our recent acquisition of Former TechTarget and could have a material impact on GAAP reported results for the relevant period. Cautionary Note Regarding Forward-Looking Statements This press release contains "forward-looking statements". All statements, other than historical facts, are forward-looking statements, including: statements regarding the expected benefits of the transactions consummated on December 2, 2024 (the "Closing Date") pursuant to the Agreement and Plan of Merger, dated as of January 10, 2024, among TechTarget Holdings Inc. (formerly known as TechTarget, Inc. ("Former TechTarget")), Informa TechTarget, Toro Acquisition Sub, LLC, Informa PLC, Informa US Holdings Limited, and Informa Intrepid Holdings Inc. (the "Transactions"), such as improved operations, enhanced revenues and cash flow, synergies, growth potential, market profile, business plans, expanded portfolio and financial strength; the competitive ability and position of Informa TechTarget; legal, economic, and regulatory conditions; and any assumptions underlying any of the foregoing. Forward-looking statements concern future circumstances and results and other statements that are not historical facts and are sometimes identified by the words "may," "will," "should," "potential," "intend," "expect," "endeavor," "seek," "anticipate," "estimate," "overestimate," "underestimate," "believe," "plan," "could," "would," "project," "predict," "continue," "target," or the negatives of these words or other similar terms or expressions that concern Informa TechTarget's expectations, strategy, priorities, plans, or intentions. Forward-looking statements are based upon current plans, estimates, and expectations that are subject to risks, uncertainties, and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements. We can give no assurance that such plans, estimates, or expectations will be achieved, and therefore, actual results may differ materially from any plans, estimates, or expectations in such forward-looking statements. Important factors that could cause actual results to differ materially from such plans, estimates, or expectations include, among others: unexpected costs, charges, or expenses resulting from the Transactions; uncertainty regarding the expected financial performance of Informa TechTarget; failure to realize the anticipated benefits of the Transactions, including as a result of integrating the Informa Tech Digital Businesses with the business of Former TechTarget; the ability of Informa TechTarget to implement its business strategy; difficulties and delays in Informa TechTarget achieving revenue and cost synergies; evolving legal, regulatory, and tax regimes; changes in economic, financial, political, and regulatory conditions, in the United States and elsewhere, and other factors that contribute to uncertainty and volatility, natural and man-made disasters, civil unrest, pandemics, geopolitical uncertainty, and conditions that may result from legislative, regulatory, trade, and policy changes associated with the current or subsequent U.S. administrations; Informa TechTarget's ability to meet expectations regarding the accounting and tax treatments of the Transactions; market acceptance of Informa TechTarget's products and services; the impact of pandemics and future health epidemics and any related economic downturns on Informa TechTarget and the markets in which it and its customers operate; changes in economic or regulatory conditions or other trends affecting the internet, internet advertising and IT industries; data privacy and artificial intelligence laws, rules, and regulations; the impact of foreign currency exchange rates; certain macroeconomic factors facing the global economy, including instability in the regional banking sector, disruptions in the capital markets, economic sanctions and economic slowdowns or recessions, rising inflation and interest rate fluctuations on the operating results of Informa TechTarget; and other matters included in Risk Factors of Informa TechTarget's Form 10-K for fiscal year 2024 (filed with the United States Securities and Exchange Commission (the "SEC") on May 28, 2025) and other documents filed by Informa TechTarget from time to time with the SEC. This summary of risks and uncertainties should not be considered to be a complete statement of all potential risks and uncertainties that may affect Informa TechTarget. Other factors may affect the accuracy and reliability of forward-looking statements. We caution you not to place undue reliance on any of these forward-looking statements as they are not guarantees of future performance or outcomes. Actual performance and outcomes, including, without limitation, Informa TechTarget's actual results of operations, financial condition and liquidity, may differ materially from those made in or suggested by the forward-looking statements contained in this press release. Any forward-looking statements speak only as of the date of this press release. None of Informa TechTarget, its affiliates, advisors or representatives, undertake any obligation to update any forward-looking statements, whether as a result of new information or developments, future events, or otherwise, except as required by law. Readers are cautioned not to place undue reliance on any of these forward-looking statements. TechTarget, Inc. Unaudited Selected Preliminary Condensed Consolidated Balance Sheets ($ in thousands) March 31, 2025 December 31, 2024 Assets Current assets: Cash and cash equivalents $ 78,656 $ 275,983 Short-term investments — 77,705 Accounts receivable, net of allowance for credit losses of $1,219 and $907 respectively 68,099 79,039 Related party receivables 5,103 2,900 Prepaid taxes 7,125 6,443 Prepaid expenses and other current assets 15,519 13,547 Total current assets $ 174,502 $ 455,617 Liabilities Current liabilities: Accounts payable $ 8,949 $ 10,639 Related party payables 15,229 4,795 Contract liabilities 54,441 44,825 Operating lease liabilities 5,202 5,186 Accrued expenses and other current liabilities 23,237 29,328 Accrued compensation expenses 16,019 18,093 Income taxes payable(1) 59,861 6,701 Convertible debt — 415,690 Total current liabilities(1) $ 182,938 $ 535,257 (1) Assumes income taxes payable calculated at the low preliminary range. If calculated at the high preliminary range, income taxes payable would be $66,861 and total current liabilities would be $189,938. TechTarget, Inc. Unaudited Selected Preliminary Earnings Information ($ in thousands) For the Three Months Ended March 31,2025 March 31,2025 March 31,2024 High Preliminary Range Low Preliminary Range As Restated Revenues1 $ 103,887 $ 103,887 $ 58,659 Cost of revenues1,2 (44,160 ) (44,160 ) (23,969 ) Gross profit 59,727 59,727 34,690 Operating expenses: Selling and marketing2 33,310 33,310 13,807 General and administrative1,2 24,284 24,284 18,178 Product development2 2,789 2,789 3,019 Depreciation 532 532 403 Amortization, excluding amortization of $2,473, and $102 included in cost of revenues 23,288 23,288 10,836 Impairment of goodwill 475,000 450,000 — Impairment of long-lived assets — — 1,864 Acquisition and integration costs1 9,328 9,328 6,977 Remeasurement of contingent consideration — — 2,064 Total operating expenses 568,531 543,531 57,148 Operating loss (508,804 ) (483,804 ) (22,458 ) Other income (expense), net (4,081 ) (4,081 ) (4,749 ) Loss before provision for income taxes (512,885 ) (487,885 ) (27,207 ) Income tax benefit (provision) (32,000 ) (25,000 ) 7,698 Net loss $ (544,885 ) $ (512,885 ) $ (19,509 ) (1) Amounts include related party transactions as follows: Revenues 224 224 84 Cost of revenues 277 277 — General and administrative 6,279 6,279 8,505 Interest income — — 1,029 Acquisition and integration costs 46 46 6,055 (2) Amounts include stock-based compensation expense as follows: Cost of revenues 308 308 — Selling and marketing 2,757 2,757 — General and administrative 711 711 266 Product development 183 183 — TechTarget, Inc. Reconciliation of Preliminary Net Loss to Preliminary Adjusted EBITDA and Preliminary Net Loss Margin to Preliminary Adjusted EBITDA Margin ($ in thousands) For Three Months EndedMarch 31, 2025 2025 2024 2024 High Preliminary Range Low Preliminary Range As Restated Combined Revenues $ 103,887 $ 103,887 $ 58,659 $ 110,295 Net loss $ (544,885 ) $ (512,885 ) $ (19,509 ) $ (31,588 ) Interest (income) expense, net 1,030 1,030 4,967 1,788 Provision (benefit) for income taxes 32,000 25,000 (7,698 ) (6,138 ) Depreciation 532 532 403 687 Amortization 25,761 25,761 10,938 24,603 EBITDA $ (485,562 ) $ (460,562 ) $ (10,899 ) $ (10,648 ) Stock-based compensation 3,959 3,959 266 11,725 Impairment of goodwill 475,000 450,000 — — Impairment of long-lived assets — — 1,864 1,864 Acquisition and integration costs 9,328 9,328 6,977 7,758 Remeasurement of contingent consideration — — 2,064 2,064 Adjusted EBITDA $ 2,725 $ 2,725 $ 272 $ 12,763 Net loss margin (524.5 )% (493.7 )% (33.3 )% (28.6 )% Adjusted EBITDA margin 2.6 % 2.6 % 0.5 % 11.6 % TechTarget Inc. Reconciliation of Combined Company Revenue and Net Loss For the three months ended March 31, 2024 ($ in thousands) Historical Combined Company Informa Tech Digital Business (Note a) Former TechTarget (Note b) Transaction Accounting Adjustments Note Combined Company Revenues $ 58,659 $ 51,636 $ — $ 110,295 Cost of revenues: Cost of revenues (23,867 ) (19,158 ) 1,172 (c) (41,853 ) Amortization of acquired technology (102 ) (702 ) (4,265 ) (d) (5,069 ) Gross profit 34,690 31,776 (3,093 ) 63,373 Operating expenses: Selling and marketing 13,807 22,962 18 (e) 36,787 General and administrative 18,178 6,695 82 (f) 24,955 Product development 3,019 2,753 — 5,772 Depreciation 403 284 — 687 Amortization 10,836 3,525 5,173 (g) 19,534 Impairment of long-lived assets 1,864 — — 1,864 Acquisition and integration costs 6,977 — (5,745 ) (h) 1,232 Transaction and related expenses — 6,526 — 6,526 Remeasurement of contingent consideration 2,064 — — 2,064 Total operating expenses 57,148 42,745 (472 ) 99,421 Operating loss (22,458 ) (10,969 ) (2,621 ) (36,048 ) Interest expense — (552 ) — (552 ) Interest income 1,234 3,731 — 4,965 Other income (expense), net 218 (108 ) — 110 Related party interest expense (6,201 ) — — (6,201 ) Loss before provision for income taxes (27,207 ) (7,898 ) (2,621 ) (37,726 ) Income tax benefit (provision) 7,698 (2,190 ) 630 (i) 6,138 Net loss $ (19,509 ) $ (10,088 ) $ (1,991 ) $ (31,588 ) (a) Represents the condensed statement of income of the Informa Tech Digital Business for the quarter ended March 31, 2024. (b) Represents the condensed consolidated statement of operations as reported in Former TechTarget's Form 10-Q for the quarter ended March 31, 2024. (c) Represents adjustments to cost of revenues associated with the elimination of TechTarget's historical lease expense, amortization related to existing computer software, internal-use software, and website development costs, and the recognition of the estimated lease expense based on remeasured lease liabilities and ROU assets. (d) Represents the elimination of Former TechTarget's historical amortization of acquired technology of $702 thousand and recognition of new amortization expense of $4,967 thousand resulting from intangible assets identified as part of the purchase price allocation. (e) Represents adjustments to selling and marketing expenses associated with the elimination of Former TechTarget's lease expense, and the recognition of the estimated lease expense based on remeasured lease liabilities and ROU assets. (f) Represents adjustments to general and administrative expenses associated with the elimination of Former TechTarget's historical lease expense, and the recognition of the estimated lease expense based on remeasured lease liabilities and ROU assets. (g) Represents the elimination of Former TechTarget's historical amortization of intangible assets of $3,525 thousand and recognition of new amortization expense of $8,698 thousand resulting from intangible assets identified as part of the purchase price allocation. (h) Represents the elimination of acquisition costs of $5,745 thousand incurred by the Informa Tech Digital Business for the three months ended March 31, 2024. (i) Represents the income tax effect of the pro forma adjustments presented. The pro forma income tax adjustments were estimated using a combined U.S. federal and statutory tax rate of 24.0% applied to all adjustments. View source version on Contacts Dan Noreck, Chief Financial Officer +1 617 431 9200Garrett Mann, Corporate Communications +1 617 431 9371 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
