(Former name, former address and formal fiscal year, if changed since last report): Not applicable

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically ~~and posted on its corporate Web site, if any,~~ every Interactive Data File required to be submitted ~~and posted~~ pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit ~~and post~~ such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of ~~October 31, 2017,~~April 30, 2020, the registrant had 27,528,786~~27,597,437~~ shares of common ~~stock,~~stock, $0.001 par value per share, outstanding.

	September 30, 2017			December 31, 2016
	(Unaudited)						March 31, 2020			December 31, 2019
Assets							(Unaudited)			(Unaudited)
Current assets:
Cash and cash equivalents	$	19,253		$	18,485
Cash							$	40,279		$	52,487
Short-term investments		8,764			10,988			4,887			5,012
Accounts receivable, net of allowance for doubtful accounts of $1,676 and $1,961 as of September 30, 2017 and December 31, 2016, respectively		29,393			22,551
Accounts receivable, net of allowance for doubtful accounts of $2,031 and $1,899 respectively								23,554			27,102
Prepaid taxes		2,133			3,961			—			1,017
Prepaid expenses and other current assets		2,670			1,952			2,563			1,813
Total current assets		62,213			57,937			71,283			87,431
Property and equipment, net		8,757			9,232			12,639			12,371
Long-term investments		3,042			7,801
Goodwill		93,717			93,469			96,992			93,639
Intangible assets, net		542			601			3,590			710
Operating lease assets with right-of-use								25,843			26,385
Deferred tax assets		543			139			244			136
Other assets		880			898			899			936
Total assets	$	169,694		$	170,077		$	211,490		$	221,608
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	1,486		$	2,100		$	1,691		$	2,036
Current operating lease liability								2,652			2,571
Current portion of term loan		9,888			6,157			1,397			1,241
Accrued expenses and other current liabilities		2,747			2,792			3,956			2,476
Accrued compensation expenses		1,240			698			846			3,679
Income taxes payable		-			122			264			65
Deferred revenue		9,238			6,079
Contract liabilities								4,548			4,335
Total current liabilities		24,599			17,948			15,354			16,403
Long-term liabilities:
Long-term portion of term loan		24,811			32,286			22,007			22,473
Deferred rent		1,763			2,080
Non-current operating lease liability								27,419			28,170
Deferred tax liabilities		198			200			1,335			1,611
Total liabilities		51,371			52,514			66,115			68,657
Commitments and contingencies (Note 8)
Leases and contingencies (see Note 9)
Stockholders’ equity:
Preferred stock, 5,000,000 shares authorized; no shares issued or outstanding		—			—
Common stock, $0.001 par value per share, 100,000,000 shares authorized, 53,246,110 shares issued and 27,597,037 shares outstanding at September 30, 2017 and 52,601,284 shares issued and 27,495,539 shares outstanding at December 31, 2016		53			52
Treasury stock, 25,649,073 shares at September 30, 2017 and 25,105,745 shares at December 31, 2016, at cost		(167,953	)		(162,731	)
Preferred stock, $0.001 par value; 5,000,000 shares authorized; no shares issued or outstanding								—			—
Common stock, $0.001 par value; 100,000,000 shares authorized; 55,027,081 and 54,903,824 shares issued, respectively; 27,528,786 and 28,142,519 shares outstanding, respectively								55			55
Treasury stock, at cost; 27,498,295 and 26,761,305 shares, respectively								(199,796	)		(184,972	)
Additional paid-in capital		298,933			296,853			322,901			317,675
Accumulated other comprehensive gain (loss)		5			(248	)
Accumulated deficit		(12,715	)		(16,363	)
Accumulated other comprehensive loss								(504	)		(319	)
Retained earnings								22,719			20,512
Total stockholders’ equity		118,323			117,563			145,375			152,951
Total liabilities and stockholders’ equity	$	169,694		$	170,077		$	211,490		$	221,608

Consolidated Statements of ~~Operations~~Income and Comprehensive Income ~~(Loss)~~

For the Three Months Ended

For the Nine Months Ended

September 30,

September 30,

2017

2016

2017

2016

(Unaudited)

(Unaudited)

Revenues:

Online

$
28,012

$
24,247

$
78,085

$
76,242

Events

—

1,503

168

3,713

Total revenues

28,012

25,750

78,253

79,955

Cost of revenues:

Online(1)

6,951

6,889

20,931

20,360

Events

—

723

41

2,049

Total cost of revenues

6,951

7,612

20,972

22,409

Gross profit

21,061

18,138

57,281

57,546

Operating expenses:

Selling and marketing(1)

11,568

11,243

33,006

33,331

Product development(1)

2,209

2,074

6,168

6,027

General and administrative(1)

3,288

3,138

9,542

9,392

Depreciation

1,065

951

3,249

2,987

Amortization of intangible assets

44

183

126

718

Total operating expenses

18,174

17,589

52,091

52,455

Operating income

2,887

549

5,190

5,091

Interest and other expense, net

(190
)

(471
)

(447
)

(1,037
)
Income before provision for income taxes

2,697

78

4,743

4,054

Provision for income taxes

623

100

1,337

1,725

Net income (loss)

$
2,074

$
(22
)

$
3,406

$
2,329

Other comprehensive income, net of tax:

Unrealized gain (loss) on investments (net of tax provision of
$3, $(13), $11, and $3, respectively)

$
6

$
(22
)

$
20

$
5

Foreign currency translation gain

71

11

233

110

Other comprehensive income (loss)

77

(11
)

253

115

Comprehensive income (loss)

$
2,151

$
(33
)

$
3,659

$
2,444

Net income (loss) per common share:

Basic

$
0.08

$
(0.00
)

$
0.12

$
0.08

Diluted

$
0.07

$
(0.00
)

$
0.12

$
0.07

Weighted average common shares outstanding:

Basic

27,555

27,540

27,521

30,650

Diluted

28,320

27,540

28,275

31,608

	For the Three Months Ended
	March 31,
	2020			2019
	(Unaudited)			(Unaudited)
Revenues	$	31,416		$	29,972
Cost of revenues⁽¹⁾		8,151			7,012
Gross profit		23,265			22,960
Operating expenses:
Selling and marketing⁽¹⁾		12,949			12,446
Product development⁽¹⁾		2,032			1,987
General and administrative⁽¹⁾		3,355			3,022
Depreciation and amortization, excluding depreciation of $171, $13, included in cost of revenues		1,345			1,130
Total operating expenses		19,681			18,585
Operating income		3,584			4,375
Interest and other expense, net		(469	)		(137	)
Income before provision for income taxes		3,115			4,238
Provision for income taxes		908			948
Net income	$	2,207		$	3,290
Other comprehensive (loss) income, net of tax:
Unrealized loss on investments (net of tax provision of $37, $0)	$	(132	)	$	—
Foreign currency translation (loss) gain		(53	)		41
Other comprehensive (loss) gain		(185	)		41
Comprehensive income	$	2,022		$	3,331
Net income per common share:
Basic	$	0.08		$	0.12
Diluted	$	0.08		$	0.12
Weighted average common shares outstanding:
Basic		28,004			27,805
Diluted		28,440			28,206

	Common Stock				Treasury Stock
	Number of Shares		$0.001 Par Value		Number of Shares		Cost			Additional Paid-In Capital			Accumulated Other Comprehensive (Loss)			Retained Earnings		Total Stockholders’ Equity
Balance, December 31, 2019		54,903,824	$	55		26,761,305	$	(184,972	)	$	317,675		$	(319	)	$	20,512	$	152,951
Issuance of common stock from restricted stock awards		123,027		—		—		—			—			—			—		—
Purchase of common stock through stock buyback		—		—		736,760		(14,824	)		—			—			—		(14,824	)
Impact of net settlements		230		—		230		—			(68	)		—			—		(68	)
Stock-based compensation expense		—		—		—		—			5,294			—			—		5,294
Comprehensive income:
Unrealized loss on investments		—		—		—		—			—			(132	)		—		(132	)
Unrealized loss on foreign currency exchange		—		—		—		—			—			(53	)		—		(53	)
Net income		—		—		—		—			—			—			2,207		2,207
Balance, March 31, 2020		55,027,081	$	55		27,498,295	$	(199,796	)	$	322,901		$	(504	)	$	22,719	$	145,375

	Common Stock				Treasury Stock
	Number of Shares		$0.001 Par Value		Number of Shares		Cost			Additional Paid-In Capital			Accumulated Other Comprehensive (Loss)			Retained Earnings		Total Stockholders’ Equity
Balance, December 31, 2018		54,117,325	$	54		26,326,280	$	(177,905	)	$	307,014		$	(215	)	$	3,637	$	132,585
Issuance of common stock from exercise of options		10,000		—		—		—			23			—			—		23
Issuance of common stock from restricted stock awards		112,545		—		—		—			—			—			—		—
Purchase of common stock through stock buyback		—		—		220,297		(3,125	)		—			—			—		(3,125	)
Impact of net settlements		6,391		—		6,391		—			(868	)		—			—		(868	)
Stock-based compensation expense		—		—		—		—			3,179			—			—		3,179
Comprehensive income:
Unrealized gain on foreign currency exchange		—		—		—		—			—			41			—		41
Net income		—		—		—		—			—			—			3,290		3,290
Balance, March 31, 2019		54,246,261	$	54		26,552,968	$	(181,030	)	$	309,348		$	(174	)	$	6,927	$	135,125

	For the Nine Months Ended						Three Months Ended March 31,
	September 30,						2020			2019
	2017			2016			(Unaudited)
	(Unaudited)
Operating Activities:
Operating activities:
Net income	$	3,406		$	2,329		$	2,207		$	3,290
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		3,373			3,705			1,516			1,143
Provision for bad debt		606			289			139			210
Amortization of investment premiums		214			217
Stock-based compensation		5,309			5,070			3,428			2,462
Amortization of debt issuance costs		81			128			2			2
Deferred tax provision								274			(362	)
Changes in operating assets and liabilities:
Accounts receivable		(7,447	)		452			3,409			4,582
Prepaid taxes, prepaid expenses and other current assets		(759	)		(436	)
Prepaid expenses and other current assets								(752	)		(714	)
Other assets		44			54			14			(145	)
Accounts payable		(618	)		19			(341	)		115
Income taxes payable		1,581			1,094			578			1,038
Accrued expenses and other current liabilities		(130	)		(786	)		41			(880	)
Operating lease right-of-use assets and ;liabilities, net								(82	)		(84	)
Accrued compensation expenses		519			(88	)		(949	)		(874	)
Deferred revenue		3,159			1,331
Contract liabilities								213			22
Other liabilities		(321	)		(29	)		—			(1	)
Net cash provided by operating activities		9,017			13,349			9,697			9,804
Investing activities:
Purchases of property and equipment, and other capitalized assets		(2,761	)		(3,435	)		(1,636	)		(1,833	)
Purchases of investments		(500	)		(3,210	)
Proceeds from sales and maturities of investments		7,300			4,600
Net cash provided by (used in) investing activities		4,039			(2,045	)
Purchases of investments and maturities of investments								(42	)		500
Acquisitions of businesses, net								(5,015	)		—
Net cash used in investing activities								(6,693	)		(1,333	)
Financing activities:
Tax withholdings related to net share settlements		(3,789	)		(4,380	)		(68	)		(868	)
Purchase of treasury shares and related costs		(5,222	)		(45,056	)		(14,824	)		(3,125	)
Payment of earnout liabilities		—			(459	)
Proceeds from exercise of stock options		561			3,963			—			23
Debt issuance costs		(50	)		(367	)
Term loan proceeds		—			50,000
Term loan principal payment		(3,750	)		—			(313	)		(313	)
Net cash (used in) provided by financing activities		(12,250	)		3,701
Effect of exchange rate changes on cash and cash equivalents		(38	)		29
Net increase in cash and cash equivalents		768			15,034
Cash and cash equivalents at beginning of period		18,485			14,783
Cash and cash equivalents at end of period	$	19,253		$	29,817
Net cash used in financing activities								(15,205	)		(4,283	)
Effect of exchange rate changes on cash								(7	)		(10	)
Net (decrease) increase in cash								(12,208	)		4,178
Cash at beginning of period								52,487			34,673
Cash at end of period							$	40,279		$	38,851
Supplemental disclosure of cash flow information:
Cash (refunded from) paid for taxes, net	$	(166	)	$	685
Cash paid for taxes, net							$	70		$	121

(In thousands, except share and per share data, where otherwise noted, or instances where expressed in millions)

TechTarget, Inc. and its subsidiaries (the “Company”) is a leading provider of specialized online content for buyers of enterprise ~~information~~ technology ~~(“IT”)~~ products and services, and a leading provider of purchase-intent marketing and sales services for ~~enterprise~~business-to-business “B2B” technology ~~vendors.~~companies. The Company’s service offerings enable enterprise B2B technology ~~vendors~~companies to better identify, reach, and influence corporate ITenterprise technology decision makers actively researching specific ITenterprise technology purchases. The Company improves ~~vendors’~~B2B technology companies ability to impact these audiences for business growth using advanced targeting, analytics, and data services complemented with customized marketing programs that integrate demand generation and brand advertising techniques. The Company operates a network of over 140 websites, each of which focuses on a ~~specific IT~~major enterprise technology sector such as storage, security, or networking. ITEnterprise technology and business professionals have become increasingly specialized, and they have come to rely on the Company’s sector-specific websites for purchasing decision support. The Company’s content platform enables ITenterprise technology and business professionals to navigate the complex and rapidly changing ITenterprise technology landscape where purchasing decisions can have significant financial and operational consequences. At critical stages of the purchase decision process, these content offerings, through different channels, meet ITenterprise technology and business professionals’ needs for expert, peer, and IT vendor information and provide a platform on which IT vendors can launch targeted marketing campaigns which generate measurable return on investment. Based upon the logical clustering of ~~users’~~members’ respective job responsibilities and the marketing focus of the products being promoted by the Company’s customers, the Company categorizes its content offerings to address the key market opportunities and audience extensions across a portfolio of distinct ~~media groups: Security; Networking; Storage;~~market categories including: Security, Networking, Storage, Data Center and Virtualization ~~Technologies;~~Technologies, CIO/IT ~~Strategy;~~Strategy, Business Applications and ~~Analytics;~~Analytics, Application Architecture and ~~Development; Channel;~~Development, and ~~TechnologyGuide.com.~~ANCL Channel.

The accompanying consolidated financial statements reflect the application of certain significant accounting policies as described below and elsewhere in these Notes to Consolidated Financial Statements. The Company’s critical accounting policies are those that affect its more significant judgments used in the preparation of its consolidated financial statements. A description of the Company’s critical accounting policies and estimates is contained in its Annual Report on Form 10-K for the fiscal year ended December 31, ~~2016. Other than those noted~~2019, and in ~~the “Accounting Guidance Adopted in 2017” section below, there were no material changes~~this note to the ~~Company’s critical accounting policies and use of estimates during the first nine months of 2017.~~consolidated financial statements.

The accompanying ~~consolidated financial statements~~Consolidated Financial Statements include the accounts of the Company and its wholly-owned subsidiaries, TechTarget Securities Corporation (“TSC”), TechTarget Limited, TechTarget (HK) Limited (“TTGT HK”~~), TechTarget (Beijing) Information Technology Consulting Co. Ltd. (“TTGT Consulting”~~), TechTarget (Australia) Pty Ltd., TechTarget (Singapore) Pte Ltd., E-Magine Médias SAS (“LeMagIT”) and TechTarget Germany GmbH. TSC is a Massachusetts corporation. TechTarget Limited is a subsidiary doing business principally in the United Kingdom. TTGT HK is a subsidiary incorporated in Hong Kong in order to facilitate the Company’s activities in the Asia-Pacific region. Additionally, through its wholly-owned subsidiaries, TTGT HK and TTGT Consulting, the Company effectively controls a variable interest entity (“VIE”), Keji Wangtuo Information Technology Co., Ltd., (“KWIT”), which was incorporated under the laws of the People’s Republic of China (“PRC”). TechTarget (Australia) Pty Ltd. and TechTarget (Singapore) Pte Ltd. are the entities through which the Company does business in Australia and Singapore, respectively; LeMagIT and TechTarget Germany GmbH, both wholly-owned subsidiaries of TechTarget Limited, are entities through which the Company does business in France and Germany, respectively.

PRC laws and regulations prohibit or restrict foreign ownership of internet-related services and advertising businesses. To comply with these foreign ownership restrictions, the Company operates its websites and provides online advertising services in the PRC through KWIT. The Company entered into certain exclusive agreements with KWIT and its shareholders through TTGT HK, which obligated TTGT HK to absorb all of the risk of loss from KWIT’s activities and entitled TTGT HK to receive all of its residual returns. In addition, the Company entered into certain agreements with the authorized parties through TTGT HK, including Management and Consulting Services, Voting Proxy, Equity Pledge and Option Agreements. TTGT HK assigned all of its rights and obligations to the newly formed wholly foreign-owned enterprise, TTGT Consulting. TTGT Consulting is established and existing under the laws of the PRC, and is wholly-owned by TTGT HK.

Based on these contractual arrangements, the Company consolidates the financial results of KWIT as required by Accounting Standards Codification (“ASC”) 810-10, Consolidation: Overall, because the Company holds all the variable interests of KWIT through TTGT Consulting, which is the primary beneficiary of KWIT. Despite the lack of technical majority ownership, there exists a parent-subsidiary relationship between the Company and the VIE through the aforementioned agreements, whereby the equity holders

of KWIT assigned all of their voting rights underlying their equity interest in KWIT to TTGT Consulting. In addition, through the other aforementioned agreements, the Company demonstrates its ability and intention to continue to exercise the ability to obtain substantially all of the profits and absorb all of the expected losses of KWIT. All significant intercompany accounts and transactions between the Company, its subsidiaries, and KWIT have been eliminated in consolidation.

The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted (Generally Accepted Accounting Principles or “GAAP”) in the United States (“U.S.”) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the U.S. for complete financial statements. All adjustments, which, in the opinion of management, are considered necessary for a fair presentation of the results of operations for the periods shown, are of a normal, recurring nature and have been reflected in the consolidated financial statements. The results of operations for the periods presented are not necessarily indicative of results to be expected for any other interim periods or for the full year. The information included in these consolidated financial statements should be read in conjunction with “Management’s Discussion and Analysis of Financial Condition and Results of Operations” contained in this report and the consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, ~~2016.~~

The adoption of a recent accounting pronouncement, described in more detail in the Accounting Guidance Adopted in 2017 section below, resulted in an in immaterial adjustment to the Accumulated Deficit in the Consolidated Balance Sheet as of December 31, 2016 and in an immaterial reclassification between Operating Activities and Financing Activities in the Consolidated Statement of Cash Flows for the nine months ended September 30, 2016. There was no effect on the Consolidated Statements of Operations and Comprehensive Income.

~~There were no reclassifications out of accumulated other comprehensive income in the periods ended September 30, 2017 or 2016.~~2019.

The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, the Company evaluates its estimates, including those related to revenues, long-lived assets, goodwill, the allowance for doubtful accounts, stock-based compensation, ~~earnouts,~~ self-insurance accruals, and income taxes. The Company reduces its accounts receivable for an allowance for doubtful accounts based on its best estimate of the amount of probable credit losses. Estimates of the carrying value of certain assets and liabilities are based on historical experience and on various other assumptions that the Company believes to be reasonable. Actual results could differ from those estimates.

In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”). The updated guidance changes how companies account for certain aspects of share-based payment awards to employees, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the Consolidated Statement of Cash Flows. ASU 2016-09 is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. The Company ~~adopted~~generates its revenues from the ~~provisions~~sale of ~~the new standard on January 1, 2017. Implementing the new pronouncement resulted in the Company recognizing tax benefits~~targeted marketing and ~~tax deficiencies related to stock compensation deductions as a component~~advertising campaigns, which it delivers via its network of the provision for income tax expense in the reporting period in which they occur. Additionally, the Company has applied the modified retrospective adoption approach, which resulted in the Company recording deferred tax assets of approximately $0.2 million with an offsetting entry to retained earnings. ASU 2016-09 also requires the presentation of excess tax benefit from stock options as an operating activity on the Consolidated Statement of Cash Flows instead of as a financing activity, which resulted in an immaterial reclassification in the Consolidated Statement of Cash Flows for the first nine months of 2016.

~~In May 2014, the FASB issued ASU No. 2014-09,~~websites and data analytics solutions. Revenue ~~from Contracts with Customers (Topic 606) (“ASU 2014-09”), which supersedes the revenue recognition requirements in ASC 605, Revenue Recognition. ASU 2014-09 is based on the principle that revenue~~ is recognized ~~to depict the transfer of~~when performance obligations are satisfied by transferring promised goods or services to customers, as determined by applying a five-step process consisting of: a) identifying the contract, or contracts, with a customer, b) identifying the performance obligations in the contract, c) determining the transaction price, d) allocating the transaction price to the performance obligations in the contract, and e) recognizing revenue when, or as, performance obligations are satisfied.

We maintain an ~~amount that reflects the consideration~~allowance for credit losses for expected uncollectible accounts receivable, which is recorded as an offset to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgmentsaccounts receivable and changes in ~~judgments~~such are classified as general and ~~assets recognized from costs incurred~~administrative expense in the Consolidated Statements of Income. We assess collectability by reviewing accounts receivable on an individual basis when we identify specific customers with known disputes, overdue amounts or collectability issues and also reserve for losses on all accounts based on historical information, current market conditions and reasonable and supportable forecasts of future economic conditions to ~~obtain or fulfill a contract.~~inform adjustments to historical loss data. In ~~July 2015,~~determining the ~~FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral~~amount of the ~~Effective Date (“ASU 2015-14”).~~allowance for credit losses, we consider historical collectability based on past due status and make judgments about the creditworthiness of customers based on ongoing credit evaluations.

For the three months ended March 31, 2020, the Company’s assessment considered business and market disruptions caused by COVID-19 and estimates of expected emerging credit and collectability trends. The ~~amendments~~continued volatility in ASU 2015-14 defer the effective date of ASU 2014-09 for all entities by one year. As a result, this guidance is now effective for annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2017 (January 1, 2018 for the Company)market conditions and ~~early adoption is permitted only as of annual reporting periods (including interim reporting periods within those reporting periods) beginning after December 15, 2016.~~ ~~In March 2016, the FASB issued ASU 2016-08,~~ ~~Principal versus Agent Considerations (Reporting Revenue Gross versus Net), which further clarifies the implementation guidance on principal versus agent considerations contained~~evolving shifts in ~~ASU 2014-09. In April~~credit trends are difficult to predict causing variability and ~~May 2016, the FASB issued ASU 2016-10,~~ ~~Identifying Performance Obligations and Licensing, and ASU 2016-12, Narrow-Scope Improvements and Practical Expedients, respectively, each of which provide further implementation guidance for ASU 2014-09.~~

~~The standard~~volatility that may be applied retrospectively to each prior period presented, or using the modified retrospective approach, with the cumulative effect recognized as of the date of initial application. The Company anticipates adopting the standard effective January 1, 2018, using the modified retrospective approach. The Company is continuing to identify any necessary changes to its systems, processes, and internal controls to meet the standard’s reporting and disclosure requirements. Based upon evaluations to date, the Company does not anticipate any significant system, process, or internal control changes. The Company continues to progress in its evaluation of the impact of the adoption of the standard on other areas of its consolidated financial statements and disclosures, and anticipates additional required disclosures but does not anticipatehave a material ~~effect~~impact on ~~its reported revenue, its net income, or its accounting~~our allowance for ~~deferred commissions balances.~~credit losses in future periods.

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”). ASU 2016-02 establishes a right-of-use (“ROU”) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12twelve months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the Consolidated Statements of ~~Operations~~Income and Comprehensive Income. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees, ~~for~~ capital and operating leases, existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The Company ~~is currently evaluating~~adopted ASU 2016-02 in the ~~impact~~first quarter of 2019 using the modified retrospective approach, and elected the package of practical expedients permitted under the transition guidance. Results and disclosure requirements for reporting periods beginning after January 1, 2019 are presented under Topic 842.

The Company elected the package of practical expedients permitted under the transition guidance, which allowed us to carryforward our historical lease classification, our assessment on whether a contract was or contains a lease, and our initial direct costs for any leases that ~~this guidance will have~~existed prior to January 1, 2019. We also elected to combine our lease and non-lease components and to keep leases with an initial term of 12 months or less off the balance sheet and recognize the associated lease payments in the consolidated statements of income on ~~its consolidated financial statements and disclosures.~~ ~~However,~~a straight-line basis over the lease term. The Company ~~anticipates that this standard will have a material impact on its financial position, primarily due to office space~~recorded operating ~~leases, for which the Company will be required to recognize~~ lease assets with right-of-use of $27.5 million and $2.9 million current operating lease ~~liabilities on its Consolidated Balance Sheets. The Company will continue to assess the potential impacts~~liability and $29.2 million non-current operating lease liability as of ~~this standard, including the impact the adoption~~January 1, 2019, of ~~this guidance will have on its results of operations or cash flows, if any.~~which $4.9 million and $0.3 million were reclassified from deferred rent and prepaid rent, respectively (see Note 9).

In January 2017, the FASB issued ASU No. 2017-04, Intangibles-Goodwill and Other (Topic 350), Simplifying the Test for Goodwill Impairment ("ASU 2017-04"). ASU 2017-04 eliminates the requirement to calculate the implied fair value of goodwill to measure a goodwill impairment charge (step 2 of the goodwill impairment test) and instead requires only a one-step quantitative impairment test, performed by comparing the fair value of goodwill with its carrying amount. ASU 2017-04 is effective on a prospective basis effective for goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for goodwill impairment tests performed on testing dates after January 1, 2017. The Company adopted the new standard effective January 1, 2020. The adoption of this guidance did not have a material impact on our consolidated financial statements.

In August 2018, the FASB issued ASU No. 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract, which requires implementation costs incurred by customers in cloud computing arrangements (i.e., hosting arrangements) to be capitalized under the same premises of authoritative guidance for internal-use software, and deferred over the non-cancellable term of the cloud computing arrangements plus any optional renewal periods that are reasonably certain to be exercised by the customer or for which the exercise is controlled by the service provider. ASU 2018-15 is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years, with early adoption permitted. The Company adopted the new standard effective January 1, 2020. The adoption of this guidance did not have a material impact on our consolidated financial statements.

In June 2016, the FASB issued ASU 2016-13, “Measurement of Credit Losses on Financial Instruments,” (ASU 2016-13) which amends ASC 326 “Financial Instruments—Credit Losses” which introduces a new methodology for accounting for credit losses on financial instruments. The guidance establishes a new forward looking "expected loss model" that requires entities to estimate current expected credit losses on accounts receivable and financial instruments by using all practical and relevant information. The Company adopted the new standard effective January 1, 2020. The adoption of this guidance did not have a material impact on our consolidated financial statements.

In August 2018, the FASB issued Accounting Standard Update No. 2018-13, “Changes to Disclosure Requirements for Fair Value Measurements” (Topic 820) (ASU 2018-13), which improved the effectiveness of disclosure requirements for recurring and nonrecurring fair value measurements. The standard removes, modifies, and adds certain disclosure requirements. The Company adopted the new standard effective January 1, 2020. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements.

In December 2019, the FASB issued Accounting Standard Update No. 2019-12, Income Taxes (Topic 740): “Simplifying the Accounting for Income Taxes” (ASU 2019-12), which simplifies the accounting for income taxes. This guidance will be effective for us in the first quarter of 2021 on a prospective basis, and early adoption is permitted. The Company is are currently evaluating the impact ~~that this~~of the new guidance ~~will have~~ on ~~its~~our consolidated financial ~~statements~~statements.

The following table depicts the disaggregation of revenue according to categories consistent with how the Company evaluates its financial performance and ~~disclosures.~~economic risk. International revenue consists of international geo-targeted campaigns, which are campaigns targeted at an audience of members outside of North America.

Timing may differ between the satisfaction of performance obligations and the invoicing and collections of amounts related to the Company’s contracts with customers. Liabilities are recorded for amounts that are collected in advance of the satisfaction of performance obligations. Additionally, certain customers may receive credits, which are accounted for as a material right. The Company estimates these amounts based on the expected amount of future services to be provided to customer and allocates a portion of the transaction price to these material rights. The Company recognizes these material rights as the material rights are exercised. The resulting amounts included in the contract liabilities on the accompanying Consolidated Balance Sheets were $2.4 at both March 31, 2020 and, December 31, 2019.

The Company measures certain financial assets and liabilities at fair value on a recurring basis, including ~~cash equivalents,~~ short-term and long-term investments and contingent consideration. Additionally, the Company switched banks and the money market accounts are in bank deposits and are not quoted instruments. As such they are all considered cash. The fair value of these financial assets and liabilities for was determined based on three levels of input as follows:

The fair value hierarchy of the Company’s financial assets ~~and liabilities~~ carried at fair value and measured on a recurring basis is as follows:

Cash ~~and cash equivalents consist of highly liquid investments with maturities of three months or less at date of purchase. Cash equivalents are~~is carried at cost, which approximates their fair market value. Cash ~~and cash equivalents~~ consisted of the following:

~~The Company’s short-term and long-term investments are accounted for as available for sale securities. These investments~~Investments are recorded at fair value with the related unrealized gains and losses included in accumulated other comprehensive ~~loss,~~income, a component of stockholders’ equity, net of tax. ~~The cumulative unrealized loss, net of taxes, was $10 and $30 as of September 30, 2017 and December 31, 2016, respectively.~~ Realized gains and losses on the sale of these investments are determined using the specific identification method. The cumulative unrealized loss, net of taxes, was $169 as of March 31, 2020. There were no realized gains or losses ~~during the three or nine months ended September 30, 2017 or 2016.~~as of December 31, 2019.

~~The Company had~~ ~~nineteen~~ ~~debt securities in an unrealized loss position at September 30, 2017. All of these securities have been in such a position for no more than~~ ~~fourteen~~ ~~months. The unrealized loss on those securities was approximately $16 and the fair value was $11.3 million. At December 31, 2016, the Company had~~ ~~twenty one~~ ~~debt securities in an unrealized loss position, and the unrealized loss on those securities was approximately $48 and the fair value was $13.8 million~~ at that date. The Company uses specific identification when reviewing these investments for impairment. Because the Company does not intend to sell the investments that are in an unrealized loss position and it is not likely that the Company will be required to sell any investments before recovery of their cost basis, the Company does not consider those investments with an unrealized loss to be other-than-temporarily impaired at September 30, 2017.

~~The Company’s investments have contractual maturity dates that range from~~ ~~November~~ ~~2017 to January 2019. All income generated from these investments is recorded as interest income.~~

Intangible assets are amortized over their estimated useful lives, which range from ~~five~~approximately 3 to ~~ten~~17 years, using methods of amortization that are expected to reflect the estimated pattern of economic use. The remaining amortization expense will be recognized over a weighted-average period of approximately ~~3.08~~5.10 years. Amortization expense was $0.1 million ~~and $0.7 million~~ for each of the ~~nine~~three months ended ~~September 30, 2017~~March 31, 2020 and ~~2016, respectively.~~2019. Amortization expense is recorded within operating expenses as the intangible assets consist of customer-related assets which generate website traffic that the Company considers to be in support of selling and marketing activities. The Company did not write off any fully amortized intangible assets in the first ~~nine~~three months of ~~2017. The change in the gross carrying amount of intangible assets during the nine months ended September 30, 2017 was due to foreign currency translation gains and losses.~~2020.

Goodwill and indefinite-lived intangible assets are not amortized but are reviewed annually for impairment or more frequently if impairment indicators arise. The Company did not have any intangible assets other than goodwill with indefinite lives as of ~~September 30, 2017~~March 31, 2020 or December 31, ~~2016.~~2019. There were no indications of impairment as of ~~September 30, 2017,~~March 31, 2020, and the Company believes that, as of the balance sheet dates presented, none of the Company’s goodwill or intangible assets was impaired.

A reconciliation of the numerator and denominator used in the calculation of basic and diluted net income ~~(loss)~~ per common share is as follows:

On ~~May 9, 2016,~~December 24, 2018, the Company entered into a ~~Senior Secured Credit Facilities Credit~~Loan and Security Agreement (the “Loan Agreement”) with Western Alliance Bank as the lender. The Loan Agreement provides for a $25 million term loan ~~(the “Term Loan Agreement”). Under the Term Loan Agreement, the Company borrowed and received $50 million in aggregate principal amount pursuant to~~facility with a ~~five-year term loan~~maturity date of December 10, 2023 (the “Term Loan”).

The ~~borrowings under the~~ Term Loan ~~Agreement are~~is secured by a lien on substantially all of the assets of the Company, including a pledge of the stock of certain of its wholly-owned ~~subsidiaries. As of September 30, 2017,~~subsidiaries (limited, in the ~~carrying amount~~case of the ~~Term Loan was $34.7 million.~~

~~At the Company’s option, the Term Loan Agreement bears interest at either an annual rate~~stock of ~~1.50% plus the higher~~certain foreign subsidiaries of (a) the Prime Rate in effect on such day and (b) the Federal Funds Effective Rate in effect on such day plus 0.50%, or the London Interbank Offered Rate (“LIBOR”) plus 2.50%. The applicable interest rate was 3.74% at September 30, 2017, representing LIBOR plus the applicable margin of 2.50%. Interest expense under the Term Loan Agreement was $1.0 million and $0.6 million during the nine months ended September 30, 2017 and 2016, respectively. This includes non-cash interest expense of $81 and $36 for the nine months ended September 30, 2017 and 2016, respectively, related to the amortization of deferred issuance costs. During the nine months ended September 30, 2017, the Company, ~~made principal payments totaling $3.8 million.~~to no more than 65% of the capital stock of such subsidiaries).

The Term Loan must be repaid quarterly, with applicable interest paid monthly, in the following manner: 1.25% of the initial aggregate borrowings are due and payable each quarter for the first two loan years, 1.88% of the initial aggregate borrowings are due and payable each quarter for the third loan year, and 2.50% of the initial aggregate borrowings are due and payable each quarter for the fourth and fifth loan years. At maturity, all outstanding amounts, including unpaid principal and accrued and unpaid interest, under the Loan Agreement ~~requires~~will be due and payable.

The Term Loan bears interest at a floating per annum rate equal to one and three-eighths percent (1.375%) above the greater of (a) the one-month U.S. LIBOR rate reported in The Wall Street Journal or (b) two percent (2.00%).

On January 1, 2019, the Company adopted Topic 842 Leases using the modified retrospective approach. The Company recorded operating lease assets (right-of-use assets) of $27.8 million and operating lease liabilities of $30.1 million. There was no impact to retained earnings upon adoption of Topic 842.

The Company has various non-cancelable lease agreements for certain of our offices with original lease periods expiring between 2019 and 2029. Our lease terms may include options to extend or terminate the lease when it is reasonably certain we will exercise that option. Leases with a renewal option allow the Company to maintain compliance with certain covenants, including leverage and fixed charge coverage ratio covenants. At September 30, 2017, the Company was in compliance with all covenants under the Term Loan Agreement.

~~The Company conducts its operations in leased office facilities under various noncancelable operating lease agreements that, as amended in October 2017, expire through December 2029.~~

On October 26, 2017, the Company and Hines Global REIT Riverside Center, LLC (“Hines”) entered into a Third Amendment (the “Third Amendment”) to the lease agreement for office space in Newton, Massachusetts, dated as of August 4, 2009, by and between the Company and MA-Riverside Project, L.L.C. (predecessor-in-interest to Hines) as amended (the “Newton Lease”). The Third Amendment extendsextend the lease term typically between 1 and 5 years. When determining the lease term, renewal options reasonably certain of being exercised are included in the lease term. When determining if a renewal option is reasonably certain of being exercised, the Company considers several economic factors, including but not limited to, ~~December 31, 2029~~the significance of leasehold improvements incurred on the property, whether the asset is difficult to replace, underlying contractual obligations, or specific characteristics unique to that particular lease that would make it reasonably certain that the Company would exercise such option. Renewal and ~~preserves~~termination options were generally not included in the ~~Company’s option to extend the~~lease term for ~~an additional five (5) year period subject to certain terms and conditions set forth in~~ the Newton Lease. The Third Amendment reduces the rentable space from approximately 110,000 square feet to approximately 74,000 square feet effective January 1, 2018 and provides the Company with a one-time cash allowance of up to $3.3 million, which may be used by the Company for any purpose. Beginning on January 1, 2018, base monthly rent under the Third Amendment will be $0.3 million. The base rent will increase biennially at a rate averaging approximately 1% per year, beginning on January 1, 2020. The Company remains responsible for certain other costs under the Third Amendment, includingCompany's existing operating ~~expenses and taxes.~~

~~The Newton Lease contains rent concessions, which the Company is receiving over the life of the Newton Lease.~~leases. Certain of the ~~Company’s operating leases include lease incentives and~~arrangements have discounted rent periods or escalating rent payment ~~amounts and~~provisions. Leases with an initial term of twelve months or less are ~~renewable for varying periods. The Company is recognizing~~not recorded on the ~~related~~consolidated balance sheets. We recognize rent expense on a straight-line basis over the ~~term~~lease term. Our lease agreements do not contain any material residual value guarantee or material restrictive covenants.

As of ~~each~~March 31, 2020, operating lease ~~taking into account the~~assets were $25.8 million and operating lease ~~incentives and escalating lease payments. Total rent expense under~~liabilities were $30.1 million. The maturity of the Company’s ~~leases was approximately $3.4 million and approximately $3.3 million for the nine months ended September 30, 2017 and 2016, respectively.~~

~~Future minimum~~operating lease ~~payments under the Company’s noncancelable operating leases, as amended,~~liabilities as of ~~October 26, 2017~~March 31, 2020 are as follows:

For the three months ended March 31, 2020 and 2019, the total lease cost is comprised of the following amounts:

If the rate implicit in the lease is not readily determinable, the Company uses its incremental borrowing rate as the discount rate. The Company uses its best judgment when determining the incremental borrowing rate, which is the rate of interest that the Company would have to pay to borrow on a collateralized basis over a similar term to the lease payments in a similar currency.

From time to time and in the ordinary course of business, the Company may be subject to various claims, charges, and litigation. At ~~September 30, 2017~~March 31, 2020 and December 31, ~~2016,~~2019, the Company did not have any pending claims, charges, or litigation that it expects would have a material adverse effect on its consolidated financial position, results of operations, or cash flows.

In September 1999, the Company approved a stock option plan (the “1999 Plan”) that provided for the issuance of shares of common stock incentives. The 1999 Plan provided for the granting of incentive stock options (“ISOs”), nonqualified stock options (“NSOs”), and stock grants. These incentives were offered to the Company’s employees, officers, directors, consultants, and advisors. Each option is exercisable at such times and subject to such terms as determined by the Company’s Board of Directors (the “Board”); grants generally vest over a four year period, and expire no later than ten years after the grant date.

In April 2007, the Board approved the 2007 Stock Option and Incentive Plan (the “2007 Plan”), which was approved by the stockholders of the Company and became effective upon the consummation of the Company’s IPO in May 2007. Effective upon the consummation of the IPO, no further awards were made pursuant to the 1999 Plan, but any outstanding awards under the 1999 Plan remain in effect and continue to be subject to the terms of the 1999 Plan. The 2007 Plan allowed the Company to grant ISOs, NSOs, stock appreciation rights, deferred stock awards, restricted stock units and other awards. Under the 2007 Plan, stock options could not be granted at less than fair market value on the date of grant, and grants generally vested over a ~~three~~three- to ~~four year~~four-year period. Stock options granted under the 2007 Plan expire no later than ten years after the grant date. Additionally, beginning with awards made in August 2015, the Company had the option to direct a net issuance of shares for satisfaction of tax liability with respect to vesting of

awards and delivery of shares. Prior to August 2015, this choice of settlement method was solely at the discretion of the award recipient.

~~At the inception of the plan, the Company reserved for issuance an aggregate of 2,911,667 shares of common stock under the~~ The 2007 Plan ~~which~~ expired in May 2017. The 2007 Plan was subject to an automatic annual increase of shares on January 1 of each year, beginning on January 1, 2008, equal to the lesser of (a) 2% of the outstanding number of shares of common stock (on a fully-diluted basis) on the immediately preceding December 31 and (b) such lower number of shares as may be determined by the compensation committee of the Board. The number of shares available for issuance under the 2007 Plan was subject to adjustment in the event of a stock split, stock dividend or other change in capitalization. Additionally, shares that were subject to stock options returned to the 1999 Plan as a result of their expiration, cancellation, or termination were automatically made available for issuance under the 2007 Plan. Approximately 8,224,334 shares were added to the 2007 Plan in accordance with the automatic annual increase and 1999 Plan return provisions.

No new awards may be granted under the 2007 Plan; however, the shares of common stock remaining in the 2007 Plan are available for issuance in connection with previously awarded grants under the 2007 Plan. There are ~~1,527,870~~77,500 shares of common stock ~~including 25,000 vested restricted stock units,~~ that remain subject to outstanding stock grants under the 2007 Plan as of ~~September 30, 2017.~~March 31, 2020.

In March 2017, the Board approved the 2017 Stock Option and Incentive Plan (the “2017 Plan”), which was approved by the stockholders of the Company at the 2017 Annual Meeting and became effective June 16, 2017. The 2017 Plan replaces the Company’s 2007 Plan. On that date, ~~approximately~~ 3,000,000 shares of Common Stock were reserved for issuance under the 2017 Plan and, generally, shares that are forfeited or canceled from awards under the 2017 Plan also will be available for future awards. Under the 2017 Plan, the Company may grant restricted stock and restricted stock units, non-qualified stock options, stock appreciation rights, performance awards, and other stock-based and cash-based awards. Grants generally vest in equal tranches over a three-year period. Stock options granted under the 2017 Plan expire no later than ten years after the grant date. Shares of stock issued pursuant to restricted stock awards are restricted in that they are not transferable until they vest. Stock underlying awards of restricted stock units are not issued until the units vest. Non-qualified stock options cannot be exercised until they vest. Under the 2017 Plan, all stock options and stock appreciation rights must be granted with an exercise price that is at least equal to the fair market value of the stock on the date of grant. The 2017 Plan broadly prohibits the repricing of options and stock appreciation rights without stockholder approval and requires that no dividends or dividend equivalents be paid with respect to options or stock appreciation rights. The 2017 Plan further provides that, in the event any dividends or dividend equivalents are declared with respect to restricted stock, restricted stock units, other stock-based awards and performance awards (referred to as “full-value awards”), they would be subject to the same vesting and forfeiture provisions as the underlying award. There ~~are~~is a total of ~~635,000~~1,363,630 shares of common stock that remain subject to outstanding stock grants under the 2017 Plan as of ~~September 30, 2017.~~March 31, 2020.

The Company uses the Black-Scholes option pricing model to calculate the grant date fair value of an award.

The expected volatility of options granted has been determined using a weighted average of the historical volatility of the Company’s stock for a period equal to the expected life of the option. The expected life of options has been determined utilizing the “simplified” method. The risk-free interest rate is based on a zero coupon U.S. treasury instrument whose term is consistent with the expected life of the stock options. The Company has not paid and does not anticipate paying cash dividends on its shares of common stock; therefore, the expected dividend yield is assumed to be zero. The Company applied an estimated annual forfeiture rate based on historical averages in determining the expense recorded in each period.

A summary of the stock option activity under the Company’s plans for the ~~nine~~three months ended ~~September 30, 2017~~March 31, 2020 is presented below:

There were no options exercised during the ~~nine~~three months ended ~~September 30, 2017, the~~March 31, 2020. The total intrinsic value of options exercised (i.e. the difference between the market price at exercise and the price paid by the employee to exercise the options) was ~~$0.4 million. During~~$138 thousand during the ~~nine~~three months ended ~~September 30, 2016, the total intrinsic value of options exercised was $1.8 million.~~March 31, 2019. The total amount of cash received from exercise of these options was approximately ~~$0.6 million and $4.0 million~~$23 thousand during the ~~nine~~three months ended, ~~September 30, 2017 and 2016, respectively.~~March 31, 2019.

Restricted stock units are valued at the market price of a share of the Company’s common stock on the date of the grant. A summary of the restricted stock unit activity under the Company’s plans for the ~~nine~~three months ended ~~September 30, 2017~~March 31, 2020 is presented below:

There were 95,688 restricted stock units with a total ~~grant date~~grant-date fair value of $2.0 million that vested during the three months ended March 31, 2020. There were 42,604 restricted stock units with a total grant-date fair value of $0.7 million that vested during ~~each of~~ the ~~nine~~that vested during the three months ended ~~September 30, 2017 and 2016 was $6.2 million.~~ March 31, 2019.

As of, ~~September 30, 2017,~~March 31, 2020 there was ~~$12.0~~$20.5 million of total unrecognized compensation expense related to stock options and restricted stock units, which is expected to be recognized over a weighted average period of ~~2.1~~1.7 years.

As of, ~~September 30, 2017,~~March 31, 2020 the Company has reserved ~~8,676,876~~2,384,015 shares of common stock for use in settling outstanding options and unvested restricted stock units that have not been issued as well as future awards available for grant under the 2017 Plan.

On May 10, 2016, the Company commenced a tender offer (the “Tender Offer”) to purchase up to 8.0 million shares of its common stock, representing approximately 24.8% of the shares of TechTarget’s common stock issued and outstanding at that time, at a price of $7.75 per share.

The Tender Offer expired on June 8, 2016. In accordance with the terms of the Tender Offer, the Company accepted for purchase 5,237,843 shares of its common stock for a purchase price of $7.75 per share, or a total of $40.6 million. Repurchased shares were recorded under the cost method and are reflected as treasury stock in the accompanying Consolidated Balance Sheets. The total cost of the Tender Offer was $40.8 million, which included approximately $0.2 million in costs directly attributable to the purchase of shares pursuant to the Tender Offer. In connection with the Tender Offer, TCV V, L.P., TCV Member Fund, L.P. (along with TCV V, L.P., referred to as the “TCV Funds”) and TCV Management 2004, L.L.C. (“TCM 2004”), each a related party, collectively tendered 3,379,249 shares of the Company’s common stock in the aggregate. Jay Hoag, a member of the Board at the time of the Tender Offer, was also a member of the general partner of the TCV Funds and a member of TCM 2004, which at the time was estimated to hold more than 5% of the voting securities of the Company. Additionally, Rogram LLC, a related party, tendered 308,713 shares in connection with the Tender Offer. Roger Marino, a member of the Board, indirectly controls shares in Rogram LLC.

In ~~June 2016,~~November 2018 the Company announced that the Board had authorized a ~~$20~~$25.0 million stock repurchase program (the ~~“June 2016~~“November 2018 Repurchase Program”)~~, whereby~~ under which the Company is authorized to repurchase the Company’s common stock from time to time on the open market or in privately negotiated transactions at prices and in ~~the~~a manner that may be determined by ~~the Board. During the nine months ended September 30, 2017, the~~management. The Company repurchased ~~543,328~~736,760 shares ~~of common stock for~~at an aggregate purchase price of ~~$5.2~~approximately $14.8 million during the first quarter of 2020 under the November 2018 Stock Repurchase Program. As of March 31, 2020, funds available under the November 2018 Repurchase Program have been substantially exhausted and the program is now complete.

On May 1, 2020, the Company’s Board of Directors approved a new two-year $25.0 million stock repurchase program (the “May 2020 Repurchase Program”). Repurchases of the Company's stock under the May 2020 Repurchase Program may be made in the open market, in privately negotiated transactions, or pursuant to one or more trading plans. The timing and amount of repurchases, if any, will be determined by the ~~June 2016~~Company's management at its discretion and be based on a variety of factors such as the market price of the Company's common stock, corporate and contractual requirements, prevailing market and economic conditions and legal requirements. The May 2020 Repurchase ~~Program.~~Program may be modified, suspended or discontinued at any time.

Repurchased shares are recorded under the cost method and are reflected as treasury stock in the accompanying Consolidated Balance Sheets. All share repurchases were funded with cash on hand.

On May 5, 2017, the Company’s Board reauthorized the common stock repurchase program to allow the Company to use the remaining balance of the unused authorization under the June 2016 Repurchase Program after its original expiration in June 2017. The reauthorized program allows the Company to repurchase its common stock from time to time on the open market or in privately negotiated transactions at prices and in the manner that may be determined by management. The reauthorized program has no time limit and may be suspended at any time. Additionally, the Company may establish, from time to time, 10b5-1 trading plans that will provide flexibility as it buys back its shares. As of September 30, 2017, the Company had $6.8 million remaining for purchases under the stock repurchase program.

The Company’s effective income tax rate before discrete items was 44.7% and 42.0% for the nine months ended September 30, 2017 and 2016, respectively. The Company recognized income tax benefits for discrete items of ~~$0.8 million and of an immaterial amount during the nine months ended September 30, 2017 and 2016, respectively.~~ The Company measures its interim period tax expense using an estimated annual effective tax rate and adjustments for discrete taxable events that occur during the interim period. The estimated annual effective income tax rate is based upon the Company’s estimations of annual pre-tax income, the geographic mix orof pre-tax income, and its interpretations of tax laws. The Company updates the estimate of its annual effective tax rate at the end of each quarterly period. The ~~Company’s practice is to recognize interest and/or penalties related to income tax matters in income tax expense.~~

~~In the first quarter of 2017,~~ ~~the~~ Company ~~adopted ASU 2016-09, which requires that all excess tax benefits and tax deficiencies related to stock compensation be recognized as~~recorded income tax expense ~~or benefit in~~of $0.9 million for both the ~~Consolidated Statement of Operations and Comprehensive Income in the period incurred.~~ ~~The Company recognized $0.5 million of income tax benefits from excess deductions net of shortfalls during the nine~~three months ended ~~September 30, 2017.~~ ~~As part of adopting ASU 2016-09, the Company recorded deferred tax assets for the federal~~March 31, 2020 and, ~~state excess tax benefit net operating losses in the amount of $0.2 million, with an offsetting entry to retained earnings.~~March 31, 2019.

The Company views its operations and manages its business as one operating segment based on factors such as how the Company manages its operations and how its executive management team reviews results and makes decisions on how to allocate resources and assess performance.

Net sales to unaffiliated customers by geographic area is based on the customers’ current billing addresses, and does not consider the geo-targeted (target audience) location of the campaign. Long-lived assets are comprised of property and equipment, net; goodwill; and intangible assets, net. No single country outside of the U.S. accounted for 10% or more of the Company’s long-lived assets during either of these periods.

On February 18, 2020, the Company acquired substantially all of the operating assets of Data Science Central LLC, which is a niche digital publishing and media company focused on data science and business analytics for $5.5 million, plus a potential future earnout valued at $.9 million at the time of acquisition. A $5.0 million cash payment was made at closing, with the remainder due in fiscal year 2021. The earnout is subject to certain revenue growth targets and the payment is adjusted based on actual results. If all targets are met, the total purchase price, including the earnout, shall not exceed $7.5 million which will become payable upon the achievement of certain revenue objectives during the next two years.

~~Item~~Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with the consolidated financial statements and accompanying notes included elsewhere in this Quarterly Report on Form 10-Q. This discussion and analysis contains forward-looking statements that involve risks, uncertainties and assumptions. Our actual results could differ materially from those anticipated in these forward-looking statements as a result of various factors including those discussed below in this Quarterly Report on Form 10-Q, in our Annual Report on Form 10-K for the year ended December 31, ~~2016~~ under Part I, Item 1A, “Risk Factors,” and in the other documents we file with the Securities and Exchange Commission. Please refer to our “Forward-Looking Statements” section on page ~~34.~~40.

~~We are~~TechTarget, Inc. (“we” or “the Company”) is a Delaware corporation incorporated on September 14, 1999. Through continued innovation around our specialized online content for buyers of enterprise ~~information~~ technology ~~(“IT”),~~solutions we have become a global leader in purchase intent-driven marketing and sales services that deliver business impact for enterprise business-to-business “B2B” technology ~~vendors.~~companies. Our offerings enable B2B technology ~~vendors~~companies to better identify, reach and influence corporate ITenterprise technology decision makers actively researching specific ITenterprise technology purchases. We improve a vendors’ ability to impact these audiences for business growth using advanced targeting, analytics and data services complemented with customized marketing programs that integrate demand generation, ~~and~~ brand marketing and advertising techniques.

~~IT professionals have~~Enterprise technology has become increasingly specialized, and ~~because each of~~ the websites within our network of over 140 websites ~~focuses on a specific IT sector~~address every major enterprise technology segment such as storage, security, or networking, ITand business applications. Enterprise technology and business professionals rely on us for key decision support information tailored to their specific areas of responsibility.

We enable ITenterprise technology and business professionals to navigate the complex and rapidly-changing ITenterprise technology landscape where purchasing decisions can have significant financial and operational consequences. Our content strategy includes three primary sources which ITenterprise technology and business professionals use to assist them in their pre-purchase research: independent content provided by our professionals, vendor-generated content provided by our customers and ~~user-generated,~~member-generated, or peer-to-peer, content. In addition to utilizing our independent editorial content, registered members appreciate the ability to deepen their pre-purchase research by accessing the extensive vendor supplied content available across our website network. Likewise, these members derive significant additional value from the ability our network provides to seamlessly interact with and contribute to information exchanges in a given field.

We had approximately ~~20.0~~20.8 million and ~~17.7~~20.2 million registered members – our “audiences” – as of ~~September 30, 2017~~March 31, 2020 and ~~2016,~~2019 respectively. While the size of our registered ~~user~~member base does not provide direct insight into our customer numbers or our revenues, the value of our services sold to our customers is a direct result of the breadth and reach of this content footprint. This footprint creates the opportunity for our ~~clients~~customers to gain business leverage by targeting our audiences through customized marketing programs. Likewise, the behavior exhibited by these audiences enables us to provide our customers with data products to improve their marketing and sales efforts. The targeted nature of our ~~user~~member base enables ~~IT vendors~~B2B technology companies to reach a specialized audience efficiently because our content is highly segmented and aligned with the ~~IT vendors’~~B2B technology companies’ specific products. With it, we have developed a broad customer base and, ~~now~~in 2020 expect to deliver marketing and sales services programs to approximately ~~1,300 customers annually.~~1,400 customers.

We are witnessing the far-reaching impact that COVID-19 is having on our employees, customers, vendors, members, stockholders, and other stakeholders as well as the global economy and society at large. While we have responded proactively to address the effects of COVID-19 and to mitigate its potential impacts to our business, including through the elimination of all non-essential travel, transitioning our entire workforce to a remote work environment, and enhancing access to certain health and safety resources for our employees, beginning in March, 2020 we saw certain customers extend their normal sales cycles and budget shifts as some customers moved from long-term commitments to shorter term marketing campaigns as they began to navigate through the pandemic. To date,

we have only experienced a handful of cancellations but we continue to stay close to our customers to ensure they are continuing to see ROI. New customer acquisition became harder as some potential customers were less apt to spend on new products or services.

We believe our strong financial position provides us with the flexibility to weather this period of economic uncertainty and the opportunity to respond quickly to our customers with the content and services they expect. However, the restrictive measures local, state, and federal governments (including in the other countries in which we operate) have implemented to prevent the spread of COVID-19, including restrictions on the operation of non-essential businesses, shelter in place orders, travel restrictions, quarantines, school closures, and other community response and social distancing policies and guidelines, will continue to affect the way we and our customers conduct and operate our respective businesses. We remain open and continue to provide the content and services that are important to our customers. Moreover, our dedicated employees continue to collaborate with each other and our customers and their sales and marketing teams, to deliver high quality, impactful campaigns. While we will continue to actively monitor government restrictions impacting our business and remain focused on business continuity, including reducing expenses and managing liquidity, given the fluid nature of COVID-19, the uncertainty of its duration, the potential for resurgence and the unknown effects of potential future government actions in response to COVID-19, we cannot estimate duration or magnitude of its impact on the global economy, our business or our financial results.

We finished the first quarter of 2020 in a strong financial position. As of March 31, 2020, our balance sheet included:

Our remaining debt obligation for 2020, including required interest payments, is approximately $1.5 million. We generated $9.6 million in cash from operations during the three months ended March 31, 2020. We expect to be able to maintain adequate liquidity to satisfy our cash needs as we navigate through the current environment, although we could experience significant fluctuations in our cash flows from period to period. If necessary, we may take steps to preserve adequate liquidity, including through accessing capital markets and other sources of external financing. After the easing of governmental restrictions and the end of the COVID-19 crisis, we could experience further fluctuations in our results of operations and cash flows resulting from the ongoing global impacts of the crisis and our customers’ realignment of their marketing and sales budgets.

Our priorities remain to ensure the health and safety of our employees, customers, vendors, members, stockholders, and other stakeholders, while delivering our content and services to our customers around the world, continuing to drive long-term growth.

At the beginning of 2020, we expected the strong demand we saw in 2019 to continue. However, beginning in March, we saw certain customers extend their normal sales cycles and budget shifts as some customers moved from long-term commitments to shorter term marketing campaigns as they began to navigate through the pandemic. This trend continued into April and through the date of this report. We expect the adverse impacts to result in lower revenue as we and our customers work through the duration of the pandemic. The impact COVID-19 will have on our 2020 results remains uncertain. We continue to evaluate the impacts the pandemic will have on our business.

Our revenues for the ~~nine~~three months ended ~~September 30, 2017 declined approximately 2%~~March 31, 2020 increased by $1.4 million, or 5%, to ~~$78.3~~$31.4 million, compared with $30.0 million, during the same period in ~~2016. IT Deal Alert~~^TM2019. Priority Engine™ revenues ~~were up 58%~~increased to more than $12.6 million in the first ~~nine~~three months of ~~2017,~~2020, compared to the first ~~nine~~three months of ~~2016, and quarterly IT Deal Alert revenues topped $10 million for the second consecutive quarter. Revenues from our Priority Engine~~^TM ~~and Deal Data~~^TM products were up 130% in the first nine months of 2017, compared to the first nine months of 2016, and the number of IT Deal Alert customers in the first nine months of 2017 was up approximately 60% from the first nine months of 2016. We had 62 new Priority Engine customers in the third quarter of 2017 and we had a successful launch of Priority Engine outside North America in the first quarter of 2017, with 91 international customers utilizing the service in the third quarter of 2017. 2019.

We continue to have success selling ~~longer term deals and, in the third quarter~~longer-term contracts of ~~2017, 23% of our online revenue was derived from longer term contracts.~~approximately twelve months. The amount of revenue that we derived from ~~longer term~~longer-term contracts in the ~~third~~first quarter ~~of 2017~~ increased ~~more than 70%~~24%, compared to the ~~amount that we recognized in the third~~first quarter of ~~2016.~~ 2019.

~~The news on IT Deal Alert has been consistently positive,~~We continue to benefit from our customers’ increasing demand for purchase intent data to fuel their sales and ~~we are also seeing stabilization~~marketing outreach. Another important factor in our ~~core online revenues. While core online~~ revenue ~~was down 21% in the first nine months of 2017, compared~~trajectory relates to the ~~first nine months~~evolving way our customers use our purchase intent data relative to our offerings. Our offerings help customers identify “in-market” prospects for their products and services – our offerings help them reach, influence, and activate these prospects. A growing number of ~~2016, the rate of decline has been moderating over the course of~~customers purchase “always on” programs from us that combine offerings to identify and influence active buyers throughout the year. ~~Our core revenues declined $1.4 million~~The growth in ~~the nine-month period from ten~~

~~major global~~our longer-term revenue component is evidence of our continued traction for these types of integrated programs. Additionally, Customers use our offerings to support quarterly sales and marketing campaigns. These purchases are more fluid – customers a number of which have been involved in large-scale corporate transactions that have negatively affected their marketing spend. Core revenues from the four accounts that are transitioning through complex post-merger consolidation and integration transactions were down approximately 40% in the first nine months. While this situation is beyond our control and our visibility here is limited, our experience has shown that after the corporate consolidation and integration process completed, marketing budgets tend to recover. If history holds true, those four accounts may perform better in the remaining quarter of this ~~year. The declines~~type may focus more on offerings in ~~revenues from these major customers also contributed~~a particular campaign, and shift objectives as opposed to the results of our online international geo-targeted revenues, where our target audience is outside North America (“International”), which nevertheless increased 5% compared to the first nine months of the prior year.an “always on” program.

~~As indicated, online~~Our international geo-targeted revenues, where our target audience is outside North America (“International”), increased 5%19% for the ~~first nine~~three months ~~of 2017,~~ended March 31, 2020, compared with the prior year period, driven by International IT Deal Alert growth, partially offset by a decrease in core online sales, primarily to our largest customers, which was offset in part by International IT Deal Alert growth. The weakness in core online continues to be distributed across Europe, the Middle East, and Africa (“EMEA”), Asia Pacific (“APAC”) and Latin America.period.

Gross profit percentage was ~~75%~~74% and ~~70%~~77% for the three months ended ~~September 30, 2017~~March 31, 2020 and ~~2016,~~2019, respectively. ~~Online gross~~Gross profit increased by ~~$3.7~~$0.3 million, ~~primarily attributable~~mainly due to the increase in ~~online~~ revenues as compared to the same period a year ago. Events gross profit decreased by $0.8 million as a result of the decreased events revenues as compared to the same period in the prior year. As we announced on February 14, 2017, we have phased out our events products.

~~Our core online revenues were down 14% in the third quarter of 2017 compared to the third quarter of 2016, which was disproportionately driven by our largest customers.~~

Revenue changes for the three ~~and nine~~ month ~~periods~~period ended, ~~September 30, 2017,~~March 31, 2020 as compared to the same ~~periods~~period in ~~2016, were as follows:~~2019, are shown in the table below. See Note 3 to our consolidated financial statements for additional information on our revenues.

Three Months Ended September 30,

2017 vs. 2016

Nine Months Ended
September 30,

2017 vs. 2016

2017

2016

change

2017

2016

change

($ in thousands)

($ in thousands)

Total Online

$
28,012

$
24,247

16
%

$
78,085

$
76,242

2
%
Total Online by Geographic Area:

North America:

North America IT Deal Alert

9,953

5,895

69
%

26,563

18,629

43
%
North America Core Online

9,374

10,644

(12
)%

26,444

33,683

(21
)%
Total North America Online

19,327

16,539

17
%

53,007

52,312

1
%
International:

International IT Deal Alert

3,451

1,381

150
%

8,869

3,850

130
%
International Core Online

5,234

6,327

(17
)%

16,209

20,080

(19
)%
Total International Online

8,685

7,708

13
%

25,078

23,930

5
%
Total Online by Product:

IT Deal Alert:

North America IT Deal Alert

9,953

5,895

69
%

26,563

18,629

43
%
International IT Deal Alert

3,451

1,381

150
%

8,869

3,850

130
%
Total IT Deal Alert

13,404

7,276

84
%

35,432

22,479

58
%
Core Online:

North America Core Online

9,374

10,644

(12
)%

26,444

33,683

(21
)%
International Core Online

5,234

6,327

(17
)%

16,209

20,080

(19
)%
Total Core Online

14,608

16,971

(14
)%

42,653

53,763

(21
)%
Total Events

$
—

$
1,503

(100
)%

$
168

$
3,713

(95
)%
Total Revenues

$
28,012

$
25,750

9
%

$
78,253

$
79,955

(2
)%

	For the Three Months ended March 31,				Percent Change
	2020		2019
North America	$	19,881	$	20,278	-2%
International		11,535		9,694	19%
Total	$	31,416	$	29,972	5%

We sell customized marketing programs to ~~IT vendors~~B2B technology companies targeting a specific audience within a particular ITenterprise technology or business sector or sub-sector. We maintain multiple points of contact with our customers to provide support throughout their organizations and their customers’ ITenterprise technology sales cycles. As a result, our customers often run multiple advertising programs with us in order to target their desired audience of ITenterprise technology and business professionals more effectively. There are multiple factors that can impact our customers’ marketing and advertising objectives and spending with us, including but not limited to, ITenterprise technology product launches, increases or decreases to their advertising budgets, the timing of key industry marketing events, responses to competitor activities and efforts to address specific marketing objectives such as creating brand awareness or generating sales leads. Our products and services are generally delivered under short-term contracts that run for the length of a given program, typically less than ~~six~~nine months. ~~In 2016, we began~~We continue to enter into ~~longer term~~longer-term contracts with certain customers, and in the quarter ended, ~~September 30, 2017,~~March 31, 2020 approximately ~~23%~~39% of our ~~online~~ revenues were from ~~longer term~~longer-term contracts of approximately 12twelve months. ~~In the three months ended September 30, 2017, demand generation and brand advertising remained our~~

primary sources of revenues, while data analytics-driven intelligence solutions, driven by growth in our IT Deal Alert products and services, contributed approximately 48% of online revenues as compared with approximately 30% for the same period in 2016.

Online revenues represented 100% of total revenues for each of the three and nine months ended September 30, 2017 and 94% and 95% of the total revenues for the three and nine months ended September 30, 2016, respectively. As previously disclosed, we have phased out our events product line.

We use our ~~online~~ offerings to provide ~~IT vendors~~B2B technology companies with numerous touch points to identify, reach and influence key ITenterprise technology decision makers. The following is a description of the products and services we offer:

IT Deal Alert. IT Deal Alert is a suite of products and services for ~~IT vendors~~B2B technology companies that leverages the detailed purchase intent data that we collect about end-user ITenterprise technology organizations. Through proprietary scoring methodologies, we use this insight to help our customers identify and prioritize accounts whose content consumption around specific ITenterprise technology topics indicates that they are “in-market” for a particular product or service. We also use the data directly to identify and further profile accounts’ upcoming purchase plans.

~~Core Online.~~Demand Solutions. Our ~~core online~~ offerings enable our customers to reach and influence prospective buyers through content marketing programs designed to generate demand for their solutions, and through display advertising and other brand programs that influence consideration by prospective buyers.

~~Demand Solutions.~~ ~~Our suite of demand solutions offerings~~ This allows ~~IT vendors~~B2B technology companies to maximize return on investment by capturing sales leads from the distribution and promotion of content to our audience of ITenterprise technology and business professionals. All of our demand solutions campaigns offer the Activity Intelligence Dashboard, a tool that gives our customers’ marketers and sales representatives a near real-time view of their prospects including insights on the research activities of technology buying teams at the individual, team and account levels. Demand solutions offerings may also include an additional service, TechTarget Re-Engage™, which helps both technology marketers and their sales teams to identify highly active prospects, detect emerging projects, retarget interested buying teams, and accelerate engagement with specific accounts.

Our demand solutions offerings may ~~also~~ include the following program components:

Webcasts, Podcasts, Videocasts and Virtual Trade Shows. Webcasts, podcasts, videocasts, virtual trade shows and similar content bring informational sessions directly to attendees’ desktops and mobile devices. As is the case with white papers, our members supply their corporate contact and qualification information to the webcast, podcast, videocast or virtual trade show sponsor when they view or download the content. Sponsorship includes access to the registrant information and visibility before, during and after the event.

•

~~Webcasts, Podcasts, Videocasts and Virtual Trade Shows~~. Webcasts, podcasts, videocasts, virtual trade shows and similar content bring informational sessions directly to attendees’ desktops and mobile devices. As is the case with white papers, our users supply their corporate contact and qualification information to the webcast, podcast, videocast or virtual trade show sponsor when they view or download the content. Sponsorship includes access to the registrant information and visibility before, during and after the event.

Content ~~Sponsorships~~Sponsorships. ~~. IT vendors,~~B2B technology companies, or groups of vendors, pay us to sponsor independent editorially created content vehicles on specific technology topics where the registrant information is then provided to all participating sponsors. In some cases, these vehicles are supported by multiple sponsors in a single segment, with the registrant information provided to all participating sponsors. Because these offerings are editorially driven, our customers get the benefit of association with independently created content as well as access to sales leads that are researching the topic.

Brand ~~Solutions.~~Solutions. Our suite of brand solutions offerings provides ~~IT vendors~~B2B technology companies exposure to targeted audiences of ITenterprise technology and business professionals actively researching information related to their products and services. We leverage our Activity Intelligence ~~product framework~~ to enable significant segmentation and targeting of specific audiences that can be accessed through these programs. Components of brand programs may include: On-Network Branding. These offerings enable our customers to influence prospective buyers through display advertising purchased on the websites we operate. Programs may include specific sites or audience segments across our sites.

On-Network ~~Branding.~~Branding. These offerings enable our customers to influence prospective buyers through display advertising purchased on the websites we operate. Programs may include specific sites or audience segments across our sites.

Off-Network Branding. Our Off-Network offerings allow our customers to influence prospective buyers through display advertising when they are visiting other websites on the internet. We identify audience segments that can be targeted based on their activity and demonstrated interests against our content and websites, and offer an array of audience extension and retargeting solutions that leverage Activity Intelligence.

Microsites and Related ~~Formats.~~Formats. We have a range of solutions that create stand-alone websites for ~~IT vendors,~~B2B Technology Companies, or “embedded” websites that exist within the context of our existing websites, to enable a more immersive experience for ITenterprise technology and business professionals with the content and brand messaging of the vendor.

Custom Content ~~Creation.~~Creation. We will at times create white papers, case studies, webcasts or videos to our customers’ specifications through our Custom Content team. These customized content assets are then promoted to our audience within both demand solutions and brand solutions programs.

~~Events~~

~~Historically, we have operated a select number~~Our suite of ~~face-to-face events,~~demand solutions offerings allows B2B technology companies to maximize return on investment by capturing sales leads from the ~~majority~~distribution and promotion of which were free to IT professionals and were sponsored by IT vendors. Events revenues represented 6% and 5% of total revenues for the three and nine months ended September 30, 2016, respectively. In 2017, we ceased to offer these servicescontent to our ~~customers~~audience of enterprise technology and ~~instead focus~~business professionals. Our demand solutions campaigns typically offer the Activity Intelligence Dashboard, a tool that gives our ~~efforts~~customers’ marketers and sales representatives a near real-time view of their prospects including insights on ~~enhancing our data driven product offerings and working with our customers to gain~~ the ~~fullest advantage that our data-driven products can offer.~~research activities

Cost of Revenues, Operating Expenses, and Other

Expenses consist of cost of ~~online and event~~ revenues, selling and marketing, product development, general and administrative, depreciation and amortization, ~~of intangible assets,~~ and interest and other expense, net. Personnel-related costs are a significant component of each of these expense categories except for depreciation and amortization and except for interest and other expense, net.

Cost of ~~Online~~ Revenues. Cost of ~~online~~ revenues ~~consist~~consists primarily of: salaries and related personnel costs; member acquisition expenses (primarily keyword purchases from leading internet search sites); freelance writer expenses; website hosting costs; vendor expenses associated with the delivery of webcast, podcast, videocast and similar content, and other offerings; stock-based compensation ~~expenses; facility expenses, and other related overhead.~~

~~Cost of Events Revenues~~. Cost of events revenues consist primarily of: direct expenses, including site, food and beverages for the event attendees and event speaker expenses; salaries and related personnel costs; travel-related expenses; facility expenses, and other related overhead.

Selling and Marketing. Selling and marketing expenses consist primarily of: salaries and related personnel costs; sales commissions; travel-related expenses; stock-based compensation expenses; facility expenses and other related overhead. Sales commissions are recorded as expense when earned by the employee, based on recorded revenues.

Product Development. Product development includes the creation and maintenance of our network of websites, advertiser offerings and technical infrastructure. Product development expense consists primarily of salaries and related personnel costs; stock-based compensation expenses; facility expenses, and other related overhead.

General and Administrative. General and administrative expenses consist primarily of salaries and related personnel costs; facility expenses and related overhead; accounting, legal and other professional fees; and stock-based compensation expenses.

Depreciation and Amortization. Depreciation expense consists of the depreciation of our property and equipment and other capitalized assets. Depreciation is calculated using the straight-line method over their estimated useful lives, ranging from ~~two~~three to ~~ten~~twelve years.

~~Amortization of Intangible Assets~~. Amortization of intangible assets expense consists of the amortization of intangible assets recorded in connection with our acquisitions. Separable intangible assets that are not deemed to have an indefinite life are amortized over their estimated useful lives, which range from ~~five~~2 to ~~ten~~17 years, using methods that are expected to reflect the estimated pattern of economic use.

Interest and Other Income (Expense), Net. Interest and other expense, net consists primarily of interest costs and the related amortization of deferred issuance costs on amounts borrowed under our ~~Senior Secured Credit Facilities Credit~~Loan and Security Agreement ~~for a term loan (“Term Loan~~(the “Loan Agreement”) with Western Alliance Bank and amortization of premiums on our investments, less any interest income earned on cash, ~~cash equivalents,~~ and short-term and long-term investments. We historically have invested our cash in money market accounts, municipal bonds, government agency bonds, ~~U.S~~U.S. Treasury securities and corporate bonds. Other expense, net consists of non-operating gains or losses, primarily related to realized and unrealized foreign currency gains and losses on trade assets and liabilities.

Application of Critical Accounting Policies and Use of Estimates

The discussion of our financial condition and results of operations is based upon our consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States (“U.S.”). The preparation of these financial statements requires us to make estimates, judgments and assumptions that affect the reported amount of assets, liabilities, revenues and expenses and related disclosure of contingent assets and liabilities. On an ongoing basis, we evaluate our estimates, including those related to revenues, long-lived assets, goodwill, allowance for doubtful accounts, stock-based compensation, contingent liabilities, self-insurance accruals and income taxes. We based our estimates of the carrying value of certain assets and liabilities on historical experience and on various other assumptions that we believe to be reasonable. In some cases, changes in the accounting estimates are reasonably likely to occur from period to period. Our actual results may differ from these estimates under different assumptions or conditions.

Our critical accounting policies are those that affect our more significant judgments used in the preparation of our consolidated financial statements. A description of our critical accounting policies and estimates is contained in our Annual Report on Form 10-K for the fiscal year ended December 31, ~~2016.~~2019. Other than those noted ~~in the “Accounting Guidance Adopted in 2017” section~~ in Note 2 to our consolidated financial statements, there were no material changes to our critical accounting policies and estimates during the first ~~nine~~three months of ~~2017.~~2020.

Income Taxes

We are subject to income taxes in both the U.S. and foreign jurisdictions, and we use estimates in determining our provision for income taxes. We recognize deferred tax assets and liabilities based on temporary differences between the financial reporting and income tax bases of assets and liabilities using statutory rates.

Our deferred tax assets are comprised primarily of book to tax differences on stock-based compensation and timing of deductions for ~~deferred~~ rent expense, accrued expenses, depreciation, and amortization. As of ~~September 30, 2017,~~March 31, 2020, we had ~~state~~foreign net operating loss (“NOL”) carryforwards of ~~approximately $1.3 million which expire at various dates through 2033. We also had foreign NOL carryforwards of $1.0~~$0.2 million, which may be used to offset future taxable income in foreign jurisdictions ~~until they expire at various dates through 2021. The deferred tax assets related to the foreign NOL carryforwards have been fully offset by a valuation allowance.~~ indefinitely.

Results of Operations

The following table sets forth our results of operations for the periods indicated, including percentage of total revenues:

Three Months Ended September 30,

Nine Months Ended September 30,

2017

2016

2017

2016

($ in thousands)

($ in thousands)

Revenues:

Online

$
28,012

100
%

$
24,247

94
%

$
78,085

100
%

$
76,242

95
%
Events

—

0
%

1,503

6
%

168

0
%

3,713

5
%
Total revenues

28,012

100
%

25,750

100
%

78,253

100
%

79,955

100
%
Cost of revenues:

Online

6,951

25
%

6,889

27
%

20,931

27
%

20,360

25
%
Events

—

0
%

723

3
%

41

0
%

2,049

3
%
Total cost of revenues

6,951

25
%

7,612

30
%

20,972

27
%

22,409

28
%
Gross profit

21,061

75
%

18,138

70
%

57,281

73
%

57,546

72
%
Operating expenses:

Selling and marketing

11,568

41
%

11,243

44
%

33,006

42
%

33,331

42
%
Product development

2,209

8
%

2,074

8
%

6,168

8
%

6,027

8
%
General and administrative

3,288

12
%

3,138

12
%

9,542

12
%

9,392

12
%
Depreciation

1,065

4
%

951

4
%

3,249

4
%

2,987

4
%
Amortization of intangible assets

44

0
%

183

1
%

126

0
%

718

1
%
Total operating expenses

18,174

65
%

17,589

68
%

52,091

67
%

52,455

66
%
Operating income

2,887

10
%

549

2
%

5,190

7
%

5,091

6
%
Interest and other expense, net

(190
)

(1
)%

(471
)

(2
)%

(447
)

(1
)%

(1,037
)

(1
)%
Income before provision for income
taxes

2,697

10
%

78

0
%

4,743

6
%

4,054

5
%
Provision for income taxes

623

2
%

100

0
%

1,337

2
%

1,725

2
%
Net income (loss)

$
2,074

7
%

$
(22
)

(0
)%

$
3,406

4
%

$
2,329

3
%

	Three Months Ended March 31,
	2020					2019
	($ in thousands)
Revenues	$	31,416		100	%	$	29,972		100	%
Cost of revenues		8,151		26	%		7,012		23	%
Gross profit		23,265		74	%		22,960		77	%
Operating expenses:
Selling and marketing		12,949		41	%		12,446		42	%
Product development		2,032		6	%		1,987		7	%
General and administrative		3,355		11	%		3,022		10	%
Depreciation and amortization		1,345		4	%		1,130		4	%
Total operating expenses		19,681		63	%		18,585		62	%
Operating income		3,584		11	%		4,375		15	%
Interest and other expense, net		(469	)	(1	)%		(137	)	(0	)%
Income before provision for income taxes		3,115		10	%		4,238		14	%
Provision for income taxes		908		3	%		948		3	%
Net income	$	2,207		7	%	$	3,290		11	%

Comparison of Three Months Ended ~~September 30, 2017~~March 31, 2020 and ~~2016~~March 31, 2019

Revenues

Three Months Ended September 30,

2017

2016

Increase
(Decrease)

Percent
Change

($ in thousands)

Revenues:

Online

$
28,012

$
24,247

$
3,765

16
%
Events

—

1,503

(1,503
)

(100
)
Total revenues

$
28,012

$
25,750

$
2,262

9
%

Three Months Ended March 31,

2020

2019

Increase

Percent

Change

Revenues

31,416

29,972

1,444

~~Online.~~ The increase in ~~online~~ revenues ~~is primarily attributable to an increase of $6.1 million in revenues from our IT Deal Alert product offerings, partially offset by a decrease in core online revenues.~~

~~Events.~~ ~~The decrease in events revenues is~~was due to ~~our decision to cease offering these services to our~~ customers ~~during 2017.~~increasing their spend for data driven marketing products. Priority Engine™ revenues were up 12% in the three months ended March 31, 2020.

Cost of Revenues and Gross Profit

Three Months Ended September 30,

2017

2016

Increase
(Decrease)

Percent
Change

($ in thousands)

Cost of revenues:

Online

$
6,951

$
6,889

$
62

1
%
Events

—

723

(723
)

(100
)
Total cost of revenues

$
6,951

$
7,612

$
(661
)

(9
)%
Gross profit

$
21,061

$
18,138

$
2,923

16
%
Gross profit percentage

75
%

70
%

	Three Months Ended March 31,
	2020			2019			Increase (Decrease)		Percent Change
	($ in thousands)
Cost of revenues	$	8,151		$	7,012		$	1,139		16	%
Gross profit	$	23,265		$	22,960		$	305		1	%
Gross profit percentage		74	%		77	%

~~Cost of Online Revenues~~. Cost of online revenues remained relatively flat in the third quarter of 2017 compared with the same period the prior year, with a slight increase in employee-related costs offset by decreases to certain marketing and product-related costs.

~~Cost of Events Revenues.~~ The decrease in cost of events revenues was due to both decreases in variable direct and employee-related costs and the decrease in the number of events that we conducted as a result of phasing out our events products.

Gross Profit. Our gross profit is equal to the difference between our revenues and our cost of revenues for the period. Gross profit percentage was ~~75%~~74% for the ~~third quarter~~first three months of ~~2017~~2020 and ~~70%~~77% for the ~~third quarter~~first three months of ~~2016. Online gross~~2019. Gross profit increased by ~~$3.7~~$0.3 million in the ~~third quarter of 2017, as~~three months ended March 31, 2020 compared to the same period in ~~2016,~~2019, primarily attributable to the increase in ~~online~~ revenues as compared to the same period a year ago. ~~Online gross profit percentage increased to 75% in the third quarter of 2017 from 72% in the third quarter of 2016.~~ Because the majority of our costs are labor-related, we expect our gross profit to fluctuate from period to period depending on the total revenues for the period. ~~We expect the phase out of our events products to have a positive impact on our gross profit and gross profit percentage going forward.~~

Operating Expenses and Other

	Three Months Ended September 30,												Three Months Ended March 31,
	2017			2016			Increase (Decrease)			Percent Change			2020			2019			Increase (Decrease)			Percent Change
	($ in thousands)												($ in thousands)
Operating expenses:
Selling and marketing	$	11,568		$	11,243		$	325			3	%	$	12,949		$	12,446		$	503			4	%
Product development		2,209			2,074			135			7			2,032			1,987			45			2	%
General and administrative		3,288			3,138			150			5			3,355			3,022			333			11	%
Depreciation		1,065			951			114			12
Amortization of intangible assets		44			183			(139	)		(76	)
Depreciation and amortization														1,345			1,130			215			19	%
Total operating expenses	$	18,174		$	17,589		$	585			3	%	$	19,681		$	18,585		$	1,096			36	%
Interest and other expense, net	$	(190	)	$	(471	)	$	281			(60	)%	$	(469	)	$	(137	)	$	(332	)		(242	)%
Provision for income taxes	$	623		$	100		$	523			523	%	$	908		$	948		$	(40	)		(4	)%

Selling and Marketing. Selling and marketing expenses increased ~~for~~ ~~the three months ended September 30, 2017, as compared to the three months ended September 30, 2016, primarily due to an increase in variable compensation-related expenses.~~

~~Product Development.~~ ~~Product development expense increased slightly~~ for the three months ended ~~September 30, 2017, compared with the same period the prior year, due to a reduction in the amount of development costs that were capitalized year over year~~March 31, 2020, as ~~some resources were allocated to non-capitalized projects.~~

~~General and Administrative. General and administrative expense increased slightly for the three months ended September 30, 2017,~~ compared to the same period in ~~2016~~2019, primarily due to an increase in stock-based compensation expense ~~and corporate taxes, partially offset by a decrease in bad debt expense.~~

~~Depreciation and Amortization. Depreciation expense increased~~(accounting for 79% of the three months ended September 30, 2017 when compared to the same period in 2016, due to additions to property and equipment. The decrease in amortization of intangible assets expense was attributable to the timing with which amortization expense for certain intangible assets is recorded.

~~Interest and Other Expense, Net. Interest and other expense, net in the third quarter of 2017 was $0.2 million, compared to $0.5 million in the third quarter of 2016, primarily due to fluctuations in currency exchange rates.~~

~~Provision for Income Taxes.~~ ~~Our effective tax rate was 23.1% and 128.2% for the~~ ~~three months~~ ended September 30, 2017 and 2016, respectively. We have permanent differences that increase our tax expense on income or reduce our tax benefit on loss. The lower rate in the third quarter of 2017, as compared to same period in 2016, was primarily due to the impact of excess deductions from stock-based compensation in the third quarter of 2017, as well as to a high rate in the third quarter of 2016 due to discrete items recognized in a quarter with relatively low net income. The effective tax rate differs from the statutory rate primarily due to these permanent differences in non-deductible expenses, state income taxes, and foreign income taxes.

~~Online.~~ ~~The increase in online revenues is primarily attributable to an increase of $13.0 million in revenues from our IT Deal Alert product offerings, partially offset by a decrease in core online revenues.~~

~~Events.~~ The decrease in events revenues is due to our decision to cease offering these services to our customers during 2017. The events revenue in the nine months ended September 30, 2017 was from residual events which could not be canceled.

~~Cost of Online Revenues~~. The increase in cost of online revenues was primarily attributable to the slightly higher relative costs associated with servicing our new product offerings as well as contracted services costs related to fulfilling certain demand generation campaigns and certain international partner campaigns, partially offset by a decrease in editorial-related costs.

~~Cost of Events Revenues.~~ ~~The decrease in cost of events revenues was due to both decreases in variable direct and employee-related costs and the decrease in the number of events that we conducted~~overall increase) as a result of ~~phasing out~~increases in our ~~events products.~~

~~Gross Profit.~~ Our gross profit is equal to the difference between our revenues and our cost of revenues for the period. Gross profit percentage was 73% for the first nine months of 2017 and 72% for the first nine months of 2016. Online gross profit increased by $1.3 million in the first nine months of 2017, as compared to the same period in 2016, primarily attributable to the increase in online revenues as compared to the same period a year ago. Online gross profit percentage was 73% for each of the first nine months

of 2017 and 2016. Because the majority of our costs are labor-related, we expect our gross profit to fluctuate from period to period depending on the total revenues for the period. We expect the phase out of our events products to have a positive impact on our gross profit and gross profit percentage going forward.

~~Selling and Marketing.~~ Selling and marketing expenses decreased for the nine months ended September 30, 2017, as compared to the nine months ended September 30, 2016, primarily due to declines in employee-related expenses because of lower headcount.stock price.

Product Development. Product development expense remained relatively flat for the ~~nine~~three months ended ~~September 30, 2017,~~March 31, 2020, as compared ~~with~~to the same period ~~the prior year. Costs that were capitalized associated with internal-use software and website development remained flat year over year.~~in 2019.

General and Administrative. General and administrative expense ~~remained relatively flat~~increased for the ~~nine~~three months ended ~~September 30, 2017, as~~March 31, 2020, compared to the same period in ~~2016.~~2019, primarily due to an increase in compensation expenses. This accounted for approximately 90% of the overall increase.

Depreciation and Amortization. Depreciation and amortization expense increased ~~when compared~~due to newly acquired intangible assets with high value, which were placed in service and amortized during the three months ended March 31, 2020. Those intangible assets were not in service during the same period in 2016 primarily because of additions to property and equipment and the timing with which the depreciation expense is recorded. The decrease in amortization of intangible assets expense was attributable the timing with which the amortization expense for certain intangible assets is recorded.2019.

~~Interest and Other Expense, Net~~. Interest and other expense, net in the first nine months of 2017 was $0.4 million, compared to $1.0 million in the first nine months of 2016, due to fluctuations in currency exchange rates, partially offset by increased interest expense associated with the Term Loan Agreement that we entered into during the second quarter of 2016.

~~Provision for Income Taxes.~~ Our effective tax rate was 28.2% and 42.6% for the nine months ended September 30, 2017 and 2016, respectively. We have permanent differences that increase our tax expense on income or reduce our tax benefit on loss; the lower rate in the first nine months of 2017, as compared to the same period in 2016, was primarily due to the impact of $1.2 million of excess deductions net of shortfalls from stock-based compensation in 2017.

The timing of our revenues is affected by seasonal factors. Our revenues are seasonal primarily as a result of the annual budget approval process of many of our customers, the normal timing at which our customers introduce new products, and the historical decrease in advertising in summer months. The timing of revenues in relation to our expenses, many of which do not vary directly with revenues, has an impact on the cost of online revenues, selling and marketing, product development, and general and administrative expenses as a percentage of revenues in each calendar quarter during the year.

The majority of our expenses are personnel-related and ~~include~~includes salaries, stock-based compensation, benefits and incentive-based compensation plan expenses. As a result, we have not experienced significant seasonal fluctuations in the timing of our expenses period to period.

~~At September 30, 2017, our~~Our cash ~~cash equivalents,~~ and investments at March 31, 2020 totaled ~~$31.1~~$45.2 million, a ~~$6.2~~$12.3 million decrease from December 31, ~~2016.~~2019, primarily driven by the repurchase of shares of our common stock under our November 2018 repurchase plan, the acquisition of substantially all the operating assets of Data Science Central in February 2020, investments in property and equipment, and principal payments on our term loan partially offset by cash generated from operations. We believe that our existing cash ~~cash equivalents,~~ and investments and our cash flow from operating activities will be sufficient to meet our anticipated cash needs for at least the next 12twelve months. Our future working capital requirements will depend on many factors, including the operations of our existing business, our potential strategic expansion internationally, future acquisitions we might undertake, and ~~the~~any expansion into complementary businesses. To the extent that our cash and ~~cash equivalents,~~ investments and cash flow from operating activities are insufficient to fund our future activities, we may need to raise additional funds through bank credit arrangements or public or private equity or debt financings. We also may need to raise additional funds in the event we determine in the future to effect one or more additional acquisitions of businesses.

Our cash ~~cash equivalents,~~ and investments, at ~~September 30, 2017~~March 31, 2020 were held for working capital ~~purposes and were invested primarily in money market accounts, U.S. Treasury securities, municipal bonds and government agency bonds and, to a lesser extent, corporate bonds.~~purposes. We do not enter into investments for trading or speculative purposes.

Our accounts receivable balance fluctuates from period to period, which affects our cash flow from operating activities. The fluctuations vary depending on the timing with which we meet our performance obligations and on the timing of our ~~service delivery and billing activity,~~ cash collections, ~~and~~as well as on changes to our allowance for doubtful accounts. We use days sales outstanding (“DSO”) as a measurement of the quality and status of our receivables. We define DSO as net accounts receivable at quarter end divided by total revenues for the applicable period, multiplied by the number of days in the applicable period. DSO was 9768 days and 76 days at ~~September 30, 2017~~March 31, 2020 and ~~78 days at~~ December 31, ~~2016. The increase in DSO was primarily due to the timing of payments from all classes of customers. We typically see an increase in DSO from December 31 to September 30 due to the reduction of revenues and historically strong collections in the fourth quarter.~~2019, respectively.

Cash provided by operating activities primarily consists of net income adjusted for certain non-cash items including depreciation and amortization, ~~the provision~~provisions for bad debt, stock-based compensation, deferred income taxes, and the effect of changes in working capital and other activities. Cash provided by operating activities for the ~~nine~~three months ended ~~September 30, 2017~~March 31, 2020 was ~~$9.0~~$9.7 million compared to cash provided by operating activities of ~~$13.3~~$9.8 million for the ~~nine~~three months ended ~~September 30, 2016.~~March 31, 2020.

The decrease in cash provided by operating activities was primarily athe result of changes in operating assets and liabilities of $(4.0) million compared to $1.6 million in the first nine months of 2017 and 2016, respectively. Significant components of the changes in assets and liabilities in the first nine months of 2017 included working capital (driven mainly by a ~~$7.4 million increase~~decrease in accounts receivable ~~and a $3.2 million increase~~collections in ~~deferred revenue.~~2020 as compared to 2019) offset by increases in stock compensation expense.

Cash ~~provided by~~used in investing activities in the ~~nine~~three months ended ~~September 30, 2017~~March 31, 2020 was ~~$4.0~~$6.7 million and was primarily a result of ~~proceeds from sales~~the acquisition of substantially all of the operating assets of Data Science Central in February 2020 ($5 million) and ~~maturities of investments, partially offset by the~~ purchase of property and equipment, ~~which was made up~~ primarily offor internal-use software, and ~~website development costs and~~to a lesser extent, computer ~~equipment. Cash used in investing activities in the nine months ended September 30, 2016 was $2.0 million and was related to the purchase of property and~~ equipment ~~made up primarily of internal-use software and website development costs, computer equipment and related software, partially offset by the conversion of long-term investments into cash equivalents.~~. We capitalized internal-use software and website development costs of ~~$0.6~~$1.4 million and ~~$0.7~~$1.3 million for the three months ended ~~September 30, 2017~~March 31, 2020 and ~~2016, respectively, and $2.2 million for each of the nine months ended September 30, 2017 and 2016.~~2019, respectively.

In the first ~~nine~~three months of ~~2017,~~March 31, 2020, we used ~~$12.3~~$15.2 million for financing activities, consisting primarily of ~~$5.2~~$14.8 million, for the purchase of treasury shares, $0.3 million for the repayment of principal under the Loan Agreement and related costs and $0.1 million for tax withholdings related to net share settlements. In the first three months of 2019 we used $4.3 million for financing activities, consisting primarily of $0.3 million for the repayment of principal on the Loan Agreement, $3.1 million for the purchase of treasury shares and related costs, ~~$3.8 million for the repayment of principal under the Term Loan~~ and ~~$3.8~~$0.9 million for tax withholdings related to net share settlements, partially offset by a net $0.5 million received from other financing activities. In the first nine months of 2016, we received $3.7 million from financing activities, including $50.0 million in proceeds related to a term loan entered into during the second quarter of 2016, partially offset by $45.1 million used for the purchase of treasury shares and related costs.settlements.

In ~~June 2016,~~November 2018, we announced that our Board ~~of Directors (our “Board”)~~ had authorized a ~~$20~~$25.0 million stock repurchase ~~program (the “June 2016~~program( the “November 2018 Repurchase Program”), whereby we are authorized to repurchase our common stock from time to time on the open market or in privately negotiated transactions at prices and in the manner that may be determined by ~~our Board.~~management. During the three ~~and nine~~ months ended ~~September 30, 2017,~~March 31, 2020 and 2019 we repurchased ~~300,114~~736,760 and ~~543,328~~220,297 shares of common stock ~~respectively,~~ for an aggregate purchase price of ~~$3.1~~approximately $14.8 million and ~~$5.2~~$3.1 million ~~respectively,~~ pursuant to the ~~June 2016~~(“November 2018 Repurchase ~~Program.~~Program”), respectively. As of March 31, 2020 , funds available under November 2018 Repurchase Program have been substantially exhausted and the program is complete. On May 1, 2020, the Company’s Board of Directors approved a new two-year $25.0 million stock repurchase program (the “May 2020 Repurchase Program”). Repurchases of the Company's stock under the May 2020 Repurchase Program may be made in the open market, in privately negotiated transactions, or pursuant to one or more trading plans. The timing and amount of repurchases, if any, will be determined by the Company's management at its discretion and be based on a variety of factors such as the market price of the Company's common stock, corporate and contractual requirements, prevailing market and economic conditions and legal requirements. The May 2020 Repurchase Program may be modified, suspended or discontinued at any time.

Repurchased shares ~~are~~were recorded under the cost method and are reflected as treasury stock in ~~our~~the accompanying Consolidated Balance Sheets. All ~~share repurchases~~repurchased shares were funded with cash on hand.

On May 5, 2017, our Board reauthorized the common stock repurchase program to allow us to use the remaining balance of the unused authorization under the 2016 Repurchase Program after its original expiration in June 2017. The reauthorized program allows us to repurchase our common stock from time to time on the open market or in privately negotiated transactions at prices and in the manner that may be determined by our management. The reauthorized program has no time limit and may be suspended at any time. Additionally, we may establish, from time to time, 10b5-1 trading plans that will provide flexibility as we buy back our shares. As of September 30, 2017, we had $6.8 million remaining for purchases under the stock repurchase program.

~~On May 10, 2016, we commenced a Tender Offer to purchase up to 8.0 million shares of our common stock at a price of $7.75 per share.~~

The Tender Offer expired on June 8, 2016. In accordance with the terms of the Tender Offer, we accepted for purchase 5,237,843 shares of our common stock for a total of $40.8 million, which included approximately $0.2 million in costs directly attributable to the Tender Offer. In connection with the Tender Offer, TCV V, L.P., TCV Member Fund, L.P. (along with TCV V, L.P., referred to as the “TCV Funds”) and TCV Management 2004, L.L.C. (“TCM 2004”), each a related party, collectively tendered 3,379,249 shares of our common stock in the aggregate. Jay Hoag, a member of our Board at the time of the Tender Offer, was also a member of the general partner of the TCV Funds and a member of TCM 2004, which at the time was estimated to hold more than 5% of our voting securities. Additionally, Rogram LLC, a related party, tendered 308,713 shares in connection with the Tender Offer. Roger Marino, a member of our Board, indirectly controls shares in Rogram LLC.

On ~~May 9, 2016,~~December 24, 2018, we entered into a Loan and Security Agreement (the “Loan Agreement”) with Western Alliance Bank as the ~~Term~~lender. The Loan Agreement ~~under which we borrowed $50~~provides for a $25 million ~~in aggregate principal amount pursuant to~~term loan facility with a ~~five-year term loan~~maturity date of December 10, 2023 (the “Term Loan”).

The borrowings under the ~~Term~~ Loan Agreement are secured by a lien on substantially all of our assets, including a pledge of the stock of certain wholly-owned subsidiaries (limited, in the case of ~~our wholly-owned subsidiaries.~~

~~Borrowings under~~ the stock of certain foreign subsidiaries, to no more than 65% of the capital stock of such subsidiaries). The Term Loan ~~Agreement~~ must be repaid quarterly, with applicable interest paid monthly, in the following manner: ~~2.5%~~1.25% of the initial aggregate borrowings are due and payable each quarter for the first two loan ~~year and 5.0%~~years, 1.88% of the initial aggregate borrowings are due and payable each quarter ~~during~~for the third loan year, and 2.50% of the initial aggregate borrowings are due and payable each ~~subsequent~~quarter for the fourth and fifth loan ~~year.~~years. At maturity, all outstanding amounts, including unpaid principal and accrued and unpaid interest, under the ~~Term~~ Loan Agreement will be due and payable.

The ~~Term~~borrowings are subject to a leverage ratio, measured quarterly. The Loan Agreement also requires us to ~~maintain compliance~~make representations and warranties and to comply with certain other covenants ~~including leverage~~ and ~~fixed charge coverage ratio covenants.~~agreements that are customary in loan agreements of this type. At ~~September 30, 2017,~~March 31, 2020, we were in compliance with all covenants under the ~~Term~~ Loan Agreement.

~~At our option, the Term~~The Loan Agreement bears interest at ~~either an annual~~a floating per annum rate ~~of 1.50% plus~~equal to one and three-eighths percent (1.375%) above the ~~higher~~greater of (a) the ~~Prime Rate~~one (1) month U.S. LIBOR rate reported in ~~effect on such day~~The Wall Street Journal and (b) ~~the Federal Funds Effective Rate in effect on such day plus 0.50%, or the London Interbank Offered Rate (“LIBOR”~~two percent (2.00%) ~~plus 2.50%~~. As of September 30, 2017, the applicable interest rate was 3.74%, representing LIBOR plus the applicable margin of 2.50%. Interest expense under the Term Loan Agreement was $0.4 million and $1.0 million for the three and nine months ended September 30, 2017, respectively, which includes non-cash interest expense related to the amortization of deferred issuance costs of $28,000 and $81,000 for the three and nine months ended September 30, 2017, respectively.

~~Borrowings under the Term~~The Loan Agreement may be prepaid at our option without penalty, ~~and must be repaid upon~~provided we comply with the ~~occurrence~~notice provision of ~~certain events, including certain~~the document. The Loan Agreement also contains customary events of ~~default.~~

~~We were required~~default, subject to ~~pay a one-time upfront administration and arrangement fee on the closing date. Thereafter, a non-refundable fee will be due and payable on each anniversary of the effective date~~grace periods in certain cases, which may cause repayment of the Term Loan ~~Agreement. Total debt issuance costs paid in relation~~ to the Term Loan Agreement were approximately $0.4 million. The costs were recorded as a direct deduction from the carrying amount of the Term Loan and amortized as interest expense over the life of the Term Loan Agreement.be accelerated.

We have made capital expenditures primarily for computer equipment and related software needed to host our websites, internal-use software development costs, as well as for leasehold improvements and other general purposes to support our growth. Our capital expenditures totaled ~~$2.8~~$1.6 million and ~~$3.4~~$1.8 million for the ~~nine~~three month periods ended ~~September 30, 2017~~March 31, 2020 and, ~~2016,~~2019 respectively. A majority of our capital expenditures in the first ~~nine~~three months of ~~2017~~2020 were for leasehold improvements and internal-use software and website development costs and, to a lesser extent, computer equipment and related software. We capitalized internal-use software and website development costs of ~~$2.2~~$1.4 million and $1.3 million for ~~each of~~ the ~~nine~~three months ended ~~September 30, 2017~~March 31, 2020 and ~~2016,~~2019, respectively. We are not currently party to any purchase contracts related to future capital expenditures.

On October 26, 2017, we and Hines Global REIT Riverside Center, LLC (“Hines”) entered into a Third Amendment (the “Third Amendment”) to the lease agreement for office space in Newton, Massachusetts, dated as of August 4, 2009, by and between us and MA-Riverside Project, L.L.C. (predecessor-in-interest to Hines) as amended (the “Newton Lease”). The Third Amendment extends the lease term to December 31, 2029 and preserves our option to extend the term for an additional five (5) year period subject to certain terms and conditions set forth in the Newton Lease. The Third Amendment reduces the rentable space from approximately 110,000 square feet to approximately 74,000 square feet effective January 1, 2018 and provides us with a one-time cash allowance of up to $3.3 million, which may be used by us for any purpose. Beginning on January 1, 2018, base monthly rent under the Third Amendment will be $0.3 million. The base rent will increase biennially at a rate averaging approximately 1% per year, beginning January 1, 2020. We remain responsible for certain other costs under the Third Amendment, including operating expenses and taxes.

There were no ~~further~~ material changes to our contractual obligations and commitments described under “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, ~~2016.~~

~~See Note 2 to our consolidated financial statements for recent accounting pronouncements that could have an effect on us.~~

This Quarterly Report on Form 10-Q ~~may contain~~contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange ~~Act.~~Act of 1934. All statements, other than statements of historical facts, included or referenced in this Quarterly Report ~~on Form 10-Q~~ that address activities, events or developments which we expect will or may occur in the future are forward-looking statements, including statements regarding ~~the~~our intent, ~~belief~~beliefs or current expectations ~~of the Company~~ and ~~members~~those of our management team. ~~The words “will,” “believe,” “intend,” “expect,” “anticipate,” “project,” “estimate,” “predict” and similar expressions are also intended to~~In some cases, you can identify forward-looking ~~statements.~~statements because they contain words such as "may," "will," "should," "expects," "plans," "anticipates,” “going to,” "could," "intends," "target," "projects," "contemplates," "believes," "estimates," "predicts," "potential," or "continue," or the negative of these words or other similar terms or expressions that concern our expectations, strategy, priorities, plans, or intentions. Such statements may include those regarding ~~guidance on~~ our future financial results and other projections or measures of our future ~~performance; our~~operating performance, including the drivers of such growth, profitability, and performance (including, in each case, any potential impact of product and service development efforts, GDPR, potential changes to customer relationships, and other operational decisions); expectations concerning market opportunities and our ability to capitalize on them; ~~and~~ the amount and timing of the benefits expected from acquisitions, new strategies, products or services and other potential sources of additional ~~revenues. Such forward-looking statements are not guarantees~~revenue; and the behavior of ~~future performance~~our members, partners, and ~~involve risks and uncertainties.~~customers. These statements speak only as of the date of this Quarterly Report ~~on Form 10-Q~~ and are based on our current plans and ~~expectations,~~expectations. Such forward-looking statements are not guarantees of future performance and ~~they~~ involve risks and uncertainties that could cause actual future events or results to be different than those described in or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to, those relating to: market acceptance of our products and services, including continued increased sales of our IT Deal Alert offerings and continued increased international growth; relationships with customers, strategic partners and employees; the duration and extent of the COVID-19 pandemic; difficulties in integrating acquired businesses; changes in economic or regulatory conditions or other trends affecting the internet, internet ~~marketing and~~ advertising and ITinformation technology industries; data privacy laws, rules, and regulations; and other matters included in our SEC filings, ~~with the Securities and Exchange Commission,~~ including ~~those detailed under Part I, Item 1A, “Risk Factors” of~~in our Annual Report on Form 10-K for the year ended December 31, ~~2016 and under Part II, Item 1A “Risk Factors” of this Quarterly Report on From 10-Q.~~2019. Actual results may differ materially from those contemplated by the forward-looking statements. We undertake no obligation to update our forward-looking statements to reflect future events or circumstances.

Market risk represents the risk of loss that may impact our financial position due to adverse changes in financial market prices and rates. Our market risk exposure is primarily a result of fluctuations in foreign exchange rates and interest rates. We do not hold or issue financial instruments for trading purposes.

We currently have subsidiaries in the United Kingdom, Hong Kong, Australia, Singapore, Germany and France. ~~Additionally, we have a wholly foreign-owned enterprise formed under the laws of the People's Republic of China (“PRC”), and a variable interest entity in Beijing, PRC.~~ Approximately ~~25%~~29% of our revenues for the three months ended ~~September 30, 2017~~March 31, 2020 were derived from customers with billing addresses outside of the United States and our foreign exchange gains/losses were not significant. We currently believe our exposure to foreign currency exchange rate fluctuations, ~~including any impact of the United Kingdom’s decision to withdraw from the European Union,~~ is financially immaterial and therefore have not entered into foreign currency hedging transactions. We continue to review this issue and may consider hedging certain foreign exchange risks through the use of currency futures or options in the future. The volatility of exchange rates depends on many factors that we cannot forecast with reliable accuracy. Our continued international expansion increases our exposure to exchange rate fluctuations and as a result such fluctuations could have a significant impact on our future results of operations.

At ~~September 30, 2017,~~March 31, 2020, we had cash ~~cash equivalents,~~ and investments ~~totaling $31.1~~of, $45.2 million. ~~These amounts~~The investments were ~~invested primarily~~ in ~~money market accounts and municipal bonds and, to~~ a ~~lesser extent, government agency bonds, U.S. Treasury securities, and corporate bonds.~~bond fund. The cash ~~cash equivalents,~~ and investments were held for working capital purposes. We do not enter into investments for trading or speculative purposes. Due to the short-term nature of these investments, we believe that we do not have any material exposure to changes in the fair value ~~of our investment portfolio~~ as a result of changes in interest rates. Declines in interest rates, however, would reduce future investment income.

Our exposure to market risk also relates to interest expense on borrowings under the ~~Term~~ Loan Agreement. ~~At our option, the~~The borrowings under the ~~Term~~ Loan Agreement bear interest at ~~either~~ an annual rate of ~~1.50%~~1.375% plus the higher of ~~(a)~~ the ~~Prime Rate~~one-month U.S. LIBOR rate reported in ~~effect on such day and (b)~~ the ~~Federal Funds Effective Rate in effect for such day plus 0.50%,~~Wall Street Journal or ~~the London Interbank Offered Rate (“LIBOR”~~two percent (2.00%) ~~plus 2.50%~~ (see Note 78 to the consolidated financial statements). At ~~September 30, 2017,~~March 31, 2020, there was ~~$35.0~~$23.4 million of aggregate principal outstanding under the ~~Term~~ Loan Agreement.

We are required to maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in our reports under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms, and that such information is accumulated and communicated to management, including our Chief Executive Officer (Principal Executive Officer) and Chief Financial Officer (Principal Financial Officer) as appropriate, to allow timely decisions regarding required disclosure.

In connection with the preparation of ~~the~~this Quarterly Report on Form 10-Q for the period ended ~~September 30, 2017,~~March 31, 2020, management, under the supervision of the Chief Executive Officer (Principal Executive Officer) and Chief Financial Officer (Principal Financial Officer), conducted an evaluation of our disclosure controls and procedures as of ~~September 30, 2017.~~March 31, 2020. Based on that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective at the reasonable assurance level.

There were no changes in our internal control over financial reporting, identified in connection with the evaluation of such internal control, that occurred during the ~~third~~first quarter of ~~2017~~2020 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

We are not currently a party to any material legal proceedings and we are not aware of any pending or threatened litigation against us that could have a material adverse effect on our business, operating results or financial condition.

Our business is subject to a number of risks, including those identified in Item 1A – “Risk Factors” of our ~~2016~~2019 Annual Report on Form 10-K, that could have a material effect on our business, results of operations, financial condition and/or liquidity and that could cause our operating results to vary significantly from period to period. As of ~~September 30, 2017,~~March 31, 2020, there have been no material changes to the risk factors disclosed in our ~~2016~~2019 Annual Report on Form 10-K except to the ~~risks~~risk relating to ~~international privacy law changes,~~COVID-19 as amended ~~below~~.below. We may disclose changes to any risk factors presented or disclose additional factors from time to time in our future filings with the Securities and Exchange Commission.

~~Changes~~We were adversely impacted by the recent outbreak of the new coronavirus disease (COVID-19) and could experience additional adverse impacts that could be material to the Company's business, operating results, financial condition and liquidity.

Our business was adversely impacted by the effects of the spread of the new coronavirus disease (COVID-19). We are witnessing the far-reaching impact that COVID-19 is having on our employees, customers, vendors, members, stockholders, and other stakeholders as well as the global economy and society at large. While we have responded proactively to address the effects of COVID-19 and to mitigate its potential impacts to our business, including through the elimination of all non-essential travel, transitioning our entire workforce to a remote work environment, and enhancing access to certain health and safety resources for our employees, beginning in ~~laws~~March, 2020 we saw certain customers extend their normal sales cycles and ~~standards relating~~budget shifts as some customers moved from long-term commitments to shorter term marketing ~~data collection and use,~~campaigns as they began to navigate through the pandemic. To date, we have only experienced a handful of cancellations but we continue to stay close to our customers to ensure they are continuing to see ROI. New customer acquisition became harder as some potential customers were less apt to spend on new products or services.

We believe our strong financial position provides us with the flexibility to weather this period of economic uncertainty and the ~~privacy~~opportunity to respond quickly to our customers with the content and services they expect. However, the restrictive measures local, state, and federal governments (including in the other countries in which we operate) have implemented to prevent the spread of ~~internet users could impact~~COVID-19, including restrictions on the operation of non-essential businesses, shelter in place orders, travel restrictions, quarantines, school closures, and other community response and social distancing policies and guidelines, will continue to affect the way we and our ~~ability~~customers conduct and operate our respective businesses. We remain open and continue to ~~conduct~~provide the content and services that are important to our customers. Moreover, our dedicated employees continue to collaborate with each other and our customers and their sales and marketing teams, to deliver high quality, impactful campaigns. While we will continue to actively monitor government restrictions impacting our business and ~~thereby decrease our marketing~~remain focused on business continuity, including reducing expenses and ~~advertising service revenues.~~

~~We use e-mail as a significant means~~managing liquidity, given the fluid nature of ~~communicating with our users. The laws and regulations governing~~COVID-19, the ~~use~~uncertainty of ~~e-mail~~its duration, the potential for ~~marketing purposes continues to evolve,~~resurgence, and the ~~growth and development~~unknown effects of potential future government actions in response to COVID-19, we cannot estimate the ~~market for commerce over the internet may lead to the adoption~~duration or magnitude of additional legislation and/or changes to existing laws. If new laws or regulations are adopted, or existing laws and regulations are interpreted and/or amended or modified to impose additional restrictions on our ability to send e-mail to our users or potential users, we may not be able to communicate with them in a cost-effective manner. In addition to legal restrictionsits impact on the use of e-mail, internet service providers and others typically attempt to block the transmission of unsolicited e-mail, commonly known as “spam.” If an internet service provider or software program identifies e-mail from us as “spam,” we could be placed on a restricted list that would block our e-mail to users or potential users who maintain e-mail accounts with these internet service providers or who use these software programs. If we are unable to communicate by e-mail with our users and potential users as a result of legislation, blockage or otherwise,global economy, our business ~~operating results and financial condition could be harmed.~~

We collect information from our users who register on our websites or for services, respond to surveys or, in some cases, view our content. Subject to each user’s permission (or right to decline, which we refer to as an “opt-out”, a practice that may differ across our various websites, depending on the applicable needs and requirements of different countries’ laws), we may use this information to inform our users of services that they have indicated may be of interest to them. We may also share this information with our customers for users who have elected to receive additional promotional materials and have expressly or implicitly granted us permission to share their information with third parties. We also collect information on our users based on their activity on our sites. The U.S. federal government and certain states have adopted or proposed limitations on the collection, distribution and use of personal information of internet users.

Although, to date, our efforts to comply with applicable federal and state laws and regulations have not hurt our business, additional, more burdensome laws or regulations, including more restrictive consumer privacy and data security laws, could be enacted or applied to us or our customers. Such laws or regulations could impair our ability to collect user information that helps us to provide more targeted content to our users and detailed lead data to our customers, thereby impairing our ability to maintain and grow our audience and maximize revenue from our customers. Additionally, the Federal Trade Commission and many state attorneys general are applying federal and state consumer protection laws to require that the online collection, use and dissemination of data, and the presentation of website content, comply with certain standards for notice, choice, security and access. Courts may also adopt these developing standards. In many cases, the specific limitations imposed by these standards are subject to interpretation by courts and other governmental authorities. A few states have also introduced legislation that, if enacted, would restrict or prohibit behavioral marketing and advertising within the state. In the absence of a federal law pre-empting their enforcement, such state legislation would likely have the practical effect of regulating behavioral marketing and advertising nationwide because of the difficulties behind implementing state-specific policies or identifying the location of a particular user. In the event of additional legislation in this area, our ability to effectively target our users may be limited. We believe that we are in compliance with applicable consumer protection laws, but a determination by a state or federal agency or court that any of our practices do not meet these laws and regulations could create liability to us, result in adverse publicity and affect negatively our businesses. New interpretations of these standards could also require us to incur additional costs and restrict our business operations.

In addition, the European Union (“E.U.”) and its member states and Canada have regulations dealing with the collection and use of personal information obtained from their citizens. Regulations in these jurisdictions have focused on the collection, transfer, use, disclosure and security of information that may be used to identify or that actually identifies an individual, such as an e-mail addressfinancial results.

or a name. Further, within the E.U., certain member state data protection authorities regard IP addresses as personal information, and legislation in the E.U. requires informed consent for the placement of a cookie on a user device.The General Data Protection Regulation (“GDPR”) was approved by the E.U. Parliament on April 14, 2016 and will become effective on May 25, 2018. The GDPR replaces the Data Protection Directive 95/46/EC and was designed to, among other things, harmonize disparate data privacy laws found across Europe. Its application and scope are extensive and penalties for non-compliance are significant, including fines of up to 20 million Euros or 4% of total worldwide revenue. Additionally, on January 10, 2017, the E.U. Commission released a Proposal for Regulation on Privacy and Electronic Communications (“ePrivacy Regulation”) which will replace the ePrivacy Directive and is intended to align with the overall E.U. data privacy and protection framework, including the GDPR. Compliance with the GDPR and the final ePrivacy Regulation could require us to add new resources or change our current or future services which may adversely affect our revenues. Law makers and regulators are expected to release additional guidance on the implementation of the GDPR over the months leading up to and following its effective date, which may further impact our compliance efforts.

U.S. companies have, since 2000, relied on the Department of Commerce Safe Harbor Principles (“Safe Harbor”) and self-certification process in order to transfer and process the personal data of people in the E.U. in a manner that the E.U., until recently, deemed adequate to protect the security of such information. On October, 6, 2015, the European Court of Justice declared that Safe Harbor was no longer valid. U.S. and E.U. lawmakers in February 2016 announced a replacement for Safe Harbor, called the E.U.-U.S. Privacy Shield Framework Principles (“the Privacy Shield”). On July 12, 2016, the European Commission deemed the Privacy Shield adequate to enable data transfers of personal data from the E.U. to the U.S. On September 23, 2016, we completed the initial documentation and process requirements and self-certified to the Privacy Shield. We received final confirmation from the FTC regarding certification and compliance with the Privacy Shield requirements on February 10, 2017. On January 25, 2017, President Trump issued an executive order directing U.S. government agencies to ensure that their privacy policies exclude persons who are not U.S. citizens or lawful permanent residents from the protections of the U.S. Privacy Act of 1974 regarding personally identifiable information. Despite initial concerns regarding impacts to the Privacy Shield, the European Commission subsequently reported that the executive order did not threaten the viability of the Privacy Shield.

~~We will continue to monitor potential changes in legal or regulatory requirements of privacy laws, particularly with respect to impacts to the Privacy Shield.~~

U.S. and European lawmakers and regulators have recently expressed concern over the use of third-party cookies or web beacons for the purpose of online behavioral marketing and advertising, and efforts to address these uses may result in broader requirements that would apply to our research activities, including our efforts to understand our users’ internet usage. Such actions may have a chilling effect on businesses like ours that collect or use online usage information generally, or may substantially increase the cost of maintaining a business that collects or uses online usage information, increase regulatory scrutiny and increase the potential of class action lawsuits. In response to marketplace concerns about the usage of third-party cookies and web beacons to track user behaviors, the major browser applications have enabled features that allow the user to limit the collection of certain data. These developments could impair our ability to collect user information that helps us provide more targeted marketing content to our users. In addition, several browser applications, including Microsoft Internet Explorer, Mozilla Firefox, Google Chrome and Apple Safari, contain tracking protection features and options that allow users to opt out of ad-tracking cookies and in certain cases block behavioral tracking from specified websites. In the event users implement these tracking protection features and options, they have the potential to affect our business negatively.

We believe that we are in material compliance with all laws and regulations that are applicable to us. As referenced above, these regulations and laws may be modified and new laws may be enacted in the future that may apply to us and affect our business. Further, data protection authorities may interpret existing laws in new ways. We may deploy new products and services from time to time, which may also require us to change our compliance practices. Any such developments (or developments stemming from enactment or modification of other laws) or the failure to anticipate accurately the application or interpretation of these laws could create liability to us, result in adverse publicity and materially affect our business and results of operations.

(1) In November 2018, we announced that our Board of Directors had approved a stock repurchase program, which authorized management to purchase up to $25.0 million shares of our common stock from time to time on the open market or in privately negotiated transactions. The funds authorized under the November 2018 stock repurchase program have been substantially exhausted and the program is now complete. On May 1, 2020 our Board of Directors approved a new $25.0 million stock repurchase program.

The exhibits listed below are filed as part of this Quarterly Report on Form 10-Q.

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Delaware	04-3483216
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

275 Grove Street Newton, Massachusetts	02466
(Address of principal executive offices)	(zip code)

Title of each class	Trading symbol(s)	Name of each exchange on which registered
Common Stock, $0.001 Par Value	TTGT	Nasdaq Global Market

Item		Page

PART I.	FINANCIAL INFORMATION
Item 1.	Financial Statements (unaudited)	3
	~~Consolidated Balance Sheets as of September 30, 2017 and December 31, 2016~~	34
	Consolidated ~~Statements~~BalanceSheets as of ~~Operations~~March 31, 2020 and ~~Comprehensive Income for the Three and Nine Months Ended September 30, 2017 and 2016~~December 31, 2019	4
	Consolidated Statements of ~~Cash Flows~~Income and Comprehensive Income for the ~~Nine Months Ended September 30, 2017~~three months ended March 31, 2020 and ~~2016~~ 2019	5
	Consolidated Statements of Stockholders’ Equity for the three months ended March 31, 2020 and 2019	56
	Consolidated Statements of Cash Flows for the three months ended March 31, 2020 and 2019	7
	Notes to Consolidated Financial Statements	68
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	1821
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	32
Item 4.	Controls and Procedures	32

PART II.	OTHER INFORMATION
Item 1.	Legal Proceedings	33
Item 1A.	Risk Factors	33
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	34
Item 6.	Exhibits	35
	Signatures	36

	Contract Liabilities
Year-to-Date Activity
Balance at December 31, 2019	$	4,335
Deferral of revenue		2,178
Recognition of previously unearned revenue		(1,965	)
Balance at March 31, 2020	$	4,548

Cost of online revenues	$	13	$	36	$	38	$	90
Cost of revenues									$	68	$	40
Selling and marketing		1,284		1,260		3,161		3,103		2,188		1,691
Product development		18		45		92		124		196		92
General and administrative		811		703		2,018		1,753		976		639

			Fair Value Measurements at Reporting Date Using
	September 30, 2017		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Money market funds (1)	$	3,452	$	3,452	$	—	$	—
Short-term investments(2)		8,764		—		8,764		—
Long-term investments(2)		3,042		—		3,042		—
Total assets	$	15,258	$	3,452	$	11,806	$	—

			Fair Value Measurements at Reporting Date Using
	December 31, 2016		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Money market funds(1)	$	4,301	$	4,301	$	—	$	—
Short-term investments(2)		10,988		—		10,988		—
Long-term investments(2)		7,801		—		7,801		—
Total assets	$	23,090	$	4,301	$	18,789	$	—

	September 30, 2017
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
Short-term and long-term investments:
U.S. Treasury securities	$	1,998	$	—	$	(3	)	$	1,995
Government agency bonds		2,005		—		(2	)		2,003
Municipal bonds		5,815		—		(8	)		5,807
Corporate bonds		2,003		—		(2	)		2,001
Total short-term and long-term investments	$	11,821	$	—	$	(15	)	$	11,806

	March 31, 2020
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
Short-term investments:
Bond funds	$	5,056	$	—	$	(169	)	$	4,887
Total short-term investments	$	5,056	$	—	$	(169	)	$	4,887

	December 31, 2019
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Short-term investments:
Bond funds	$	5,012	$	—	$	—	$	5,012
Total short-term investments	$	5,012	$	—	$	—	$	5,012

			September 30, 2017									March 31, 2020
	Estimated Useful Lives (Years)		Gross Carrying Amount		Accumulated Amortization			Net		Estimated Useful Lives (Years)		Gross Carrying Amount		Accumulated Amortization			Net
Customer, affiliate and advertiser relationships	5		$	6,918	$	(6,909	)	$	9	5-17		$	8,686	$	(6,268	)	$	2,418
Developed websites, technology and patents		10		1,323		(878	)		445		10		1,979		(1,018	)		961
Trademark, trade name and domain name	8			1,797		(1,718	)		79	5-8			1,796		(1,740	)		56
Proprietary user information database and internet traffic		5		1,195		(1,186	)		9		5		1,092		(1,092	)		—
Non-Compete agreement											3		170		(15	)		155
Total intangible assets			$	11,233	$	(10,691	)	$	542			$	13,723	$	(10,133	)	$	3,590

Years Ending December 31:	Amortization Expense		Amortization Expense
2017 (October 1 – December 31)	$	43
2018		109
2019		92
2020		78
2020 (April 1 – December 31)			$	346
2021		94		461
2022				490
2023				329
2024				319
Thereafter		126		1,645
Total	$	542	$	3,590

Years Ending December 31:	Minimum Lease Payments
2017 (October 1 – December 31)	$	1,203
2018		4,218
2019		4,107
2020		3,630
2021		3,734
Thereafter		28,004
Total	$	44,896

	Minimum Lease
Years Ending December 31:	Payments
2020 (March 31, – December 31)	$	2,728
2021		4,148
2022		3,779
2023		3,696
2024		3,725
Thereafter		17,760
Total future minimum lease payments	$	35,836
Less imputed interest		5,765
Total operating lease liabilities	$	30,071

Included in the condensed consolidated balance sheet:
Current operating lease liabilities	$	2,652
Non-current operating lease liabilities		27,419
Total operating lease liabilities	$	30,071

	Three Months Ended		Three Months Ended
	March 31, 2020		March 31, 2019
Operating lease expense	$	947	$	975
Short-term lease expense		28		21
Total lease expense	$	975	$	996

	As of
	March 31, 2020
Weighted-average remaining lease term — operating leases		5.3
Weighted-average discount rate — operating leases		4	%

Year-to-Date Activity	Options Outstanding			Weighted- Average Exercise Price Per Share		Weighted- Average Remaining Contractual Term in Years		Aggregate Intrinsic Value		Options Outstanding		Weighted- Average Exercise Price Per Share		Weighted- Average Remaining Contractual Term in Years		Aggregate Intrinsic Value
Options outstanding at December 31, 2016		861,380		$	9.42
Options outstanding at December 31, 2019											140,000	$	13.14
Granted		20,000			10.33
Exercised		(103,673	)		5.44			$	437
Forfeited		—			—
Cancelled		(104,087	)		13.47
Options outstanding at September 30, 2017		673,620		$	9.43		1.98	$	2,310
Options exercisable at September 30, 2017		653,620		$	9.41		1.74	$	2,277
Options vested or expected to vest at September 30, 2017		671,652		$	9.43		1.96	$	2,306
Options outstanding at March 31, 2020											140,000	$	13.14		5.68	$	1,208
Options exercisable at March 31, 2020											117,500	$	11.76		5.00	$	1,196
Options vested or expected to vest at March 31, 2020											139,548	$	13.11		5.67	$	1,208

Year-to-Date Activity	Shares			Weighted- Average Grant Date Fair Value Per Share		Aggregate Intrinsic Value		Shares			Weighted- Average Grant Date Fair Value Per Share		Aggregate Intrinsic Value
Nonvested outstanding at December 31, 2016		1,640,790		$	8.54
Nonvested outstanding at December 31, 2019									1,301,130		$	21.82	$	—
Granted		618,826			9.57				95,688		$	21.10		—
Vested		(759,866	)		8.20				(95,688	)	$	21.10		—
Forfeited		(35,500	)		9.93				—		$	0.00		—
Nonvested outstanding at September 30, 2017		1,464,250		$	9.12	$	17,483
Nonvested outstanding at March 31, 2020									1,301,130		$	21.82	$	26,816

	Three Months Ended September 30,				Nine Months Ended September 30,				For the three months ended March 31,
	2017		2016		2017		2016		2020		2019
United States	$	20,971	$	19,298	$	56,955	$	59,715	$	22,437	$	22,799
United Kingdom	$	2,922	$	2,116	$	8,563	$	7,515		3,792		3,037
Other international		4,119		4,336		12,735		12,725		5,187		4,136
Total	$	28,012	$	25,750	$	78,253	$	79,955	$	31,416	$	29,972

	Three Months Ended September 30,				2017 vs. 2016			Nine Months Ended September 30,				2017 vs. 2016
	2017		2016		change			2017		2016		change
	($ in thousands)							($ in thousands)
Total Online	$	28,012	$	24,247		16	%	$	78,085	$	76,242		2	%
Total Online by Geographic Area:
North America:
North America IT Deal Alert		9,953		5,895		69	%		26,563		18,629		43	%
North America Core Online		9,374		10,644		(12	)%		26,444		33,683		(21	)%
Total North America Online		19,327		16,539		17	%		53,007		52,312		1	%
International:
International IT Deal Alert		3,451		1,381		150	%		8,869		3,850		130	%
International Core Online		5,234		6,327		(17	)%		16,209		20,080		(19	)%
Total International Online		8,685		7,708		13	%		25,078		23,930		5	%
Total Online by Product:
IT Deal Alert:
North America IT Deal Alert		9,953		5,895		69	%		26,563		18,629		43	%
International IT Deal Alert		3,451		1,381		150	%		8,869		3,850		130	%
Total IT Deal Alert		13,404		7,276		84	%		35,432		22,479		58	%
Core Online:
North America Core Online		9,374		10,644		(12	)%		26,444		33,683		(21	)%
International Core Online		5,234		6,327		(17	)%		16,209		20,080		(19	)%
Total Core Online		14,608		16,971		(14	)%		42,653		53,763		(21	)%
Total Events	$	—	$	1,503		(100	)%	$	168	$	3,713		(95	)%
Total Revenues	$	28,012	$	25,750		9	%	$	78,253	$	79,955		(2	)%

	Three Months Ended September 30,										Nine Months Ended September 30,
	2017					2016					2017					2016
	($ in thousands)										($ in thousands)
Revenues:
Online	$	28,012		100	%	$	24,247		94	%	$	78,085		100	%	$	76,242		95	%
Events		—		0	%		1,503		6	%		168		0	%		3,713		5	%
Total revenues		28,012		100	%		25,750		100	%		78,253		100	%		79,955		100	%
Cost of revenues:
Online		6,951		25	%		6,889		27	%		20,931		27	%		20,360		25	%
Events		—		0	%		723		3	%		41		0	%		2,049		3	%
Total cost of revenues		6,951		25	%		7,612		30	%		20,972		27	%		22,409		28	%
Gross profit		21,061		75	%		18,138		70	%		57,281		73	%		57,546		72	%
Operating expenses:
Selling and marketing		11,568		41	%		11,243		44	%		33,006		42	%		33,331		42	%
Product development		2,209		8	%		2,074		8	%		6,168		8	%		6,027		8	%
General and administrative		3,288		12	%		3,138		12	%		9,542		12	%		9,392		12	%
Depreciation		1,065		4	%		951		4	%		3,249		4	%		2,987		4	%
Amortization of intangible assets		44		0	%		183		1	%		126		0	%		718		1	%
Total operating expenses		18,174		65	%		17,589		68	%		52,091		67	%		52,455		66	%
Operating income		2,887		10	%		549		2	%		5,190		7	%		5,091		6	%
Interest and other expense, net		(190	)	(1	)%		(471	)	(2	)%		(447	)	(1	)%		(1,037	)	(1	)%
Income before provision for income taxes		2,697		10	%		78		0	%		4,743		6	%		4,054		5	%
Provision for income taxes		623		2	%		100		0	%		1,337		2	%		1,725		2	%
Net income (loss)	$	2,074		7	%	$	(22	)	(0	)%	$	3,406		4	%	$	2,329		3	%

Period	Total Number of Shares Purchased(1)		Average Price Paid Per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs(1)		Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs
July 1, 2017 – July 31, 2017		6,541	$	9.72		6,541	$	9,827,895
August 1, 2017 – August 31, 2017		118,035	$	9.69		118,035	$	8,684,703
September 1, 2017 – September 30, 2017		175,538	$	10.62		175,538	$	6,820,071
Total		300,114	$	10.23		300,114	$	6,820,071

Period	Total Number of Shares Purchased⁽¹⁾		Average Price Paid Per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs⁽¹⁾		Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs
January 1 - January 31, 2020		44,969	$	24.97		44,969	$	13,698,484
February 1, 2020 - February 29, 2020		103,443	$	24.27		103,443	$	11,187,719
March 1, 2020 - March 31, 2020		588,348	$	19.00		588,348	$	11,913
Total		736,760	$	20.10		736,760	$	11,913

Exhibit No.		Description of Exhibit

31.1		Certification of Michael Cotoia, Chief Executive Officer of TechTarget, Inc., pursuant to Rules 13a-14(a) and 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2		Certification of Daniel Noreck, Chief Financial Officer and Treasurer of TechTarget, Inc., pursuant to Rules 13a-14(a) and 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32.1		Certifications of Michael Cotoia, Chief Executive Officer of TechTarget, Inc. and Daniel Noreck, Chief Financial Officer and Treasurer of TechTarget, Inc. pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101.INS		XBRL Instance Document*

101.SCH		XBRL Taxonomy Extension Schema Document*

101.CAL		XBRL Taxonomy Extension Calculation Linkbase Document*

101.DEF		XBRL Taxonomy Extension Definition Linkbase Document*

101.LAB		XBRL Taxonomy Extension Label Linkbase Document*

101.PRE		XBRL Taxonomy Extension Presentation Linkbase Document*

	TECHTARGET, INC.
	(Registrant)

Date: ~~November 8, 2017~~May 6, 2020	By:	/s/ MICHAEL COTOIA
		Michael Cotoia, Chief Executive Officer and Director (Principal Executive Officer)

Date: ~~November 8, 2017~~May 6, 2020	By:	/s/ DANIEL NORECK
		Daniel Noreck, Chief Financial Officer and Treasurer (Principal Accounting and Financial Officer)

Large accelerated filer

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Non-accelerated filer

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Smaller reporting company

Emerging growth company