The 10-second takeaway
For the quarter ended Dec. 31 (Q4), TechTarget missed slightly on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue increased, and GAAP earnings per share expanded significantly.
Margins grew across the board.
TechTarget recorded revenue of $28.9 million. The five analysts polled by S&P Capital IQ looked for revenue of $29.4 million on the same basis. GAAP reported sales were 7.6% higher than the prior-year quarter's $26.9 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.11. The five earnings estimates compiled by S&P Capital IQ averaged $0.12 per share on the same basis. GAAP EPS of $0.05 for Q4 were 67% higher than the prior-year quarter's $0.03 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 77%, 10 basis points better than the prior-year quarter. Operating margin was 17.9%, 470 basis points better than the prior-year quarter. Net margin was 6.9%, 200 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $24 million. On the bottom line, the average EPS estimate is $0.04.
Next year's average estimate for revenue is $116.5 million. The average EPS estimate is $0.39.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 41 members rating the stock outperform and 28 members rating it underperform. Among 20 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 12 give TechTarget a green thumbs-up, and eight give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on TechTarget is outperform, with an average price target of $8.75.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.