Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Oct. 31, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | TTGT | |
Entity Registrant Name | TechTarget Inc | |
Entity Central Index Key | 1,293,282 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Common Stock, Shares Outstanding | 28,001,671 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 29,447 | $ 25,966 |
Short-term investments | 3,000 | 7,650 |
Accounts receivable, net of allowance for doubtful accounts of $1,975 and $1,783 as of September 30, 2018 and December 31, 2017, respectively | 27,621 | 29,601 |
Prepaid taxes | 2,171 | 1,303 |
Prepaid expenses and other current assets | 3,751 | 3,088 |
Total current assets | 65,990 | 67,608 |
Property and equipment, net | 10,980 | 9,786 |
Long-term investments | 496 | |
Goodwill | 93,709 | 93,793 |
Intangible assets, net | 892 | 506 |
Deferred tax assets | 526 | 98 |
Other assets | 869 | 882 |
Total assets | 172,966 | 173,169 |
Current liabilities: | ||
Accounts payable | 1,960 | 1,542 |
Current portion of term loan | 9,888 | 9,888 |
Accrued expenses and other current liabilities | 3,130 | 3,343 |
Accrued compensation expenses | 1,394 | 1,397 |
Income taxes payable | 141 | 218 |
Contract liabilities | 5,275 | 7,598 |
Total current liabilities | 21,788 | 23,986 |
Long-term liabilities: | ||
Long-term portion of term loan | 14,898 | 22,339 |
Deferred rent | 5,027 | 5,259 |
Deferred tax liabilities | 396 | 838 |
Total liabilities | 42,109 | 52,422 |
Commitments and contingencies (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, 54,082,275 shares issued and 28,001,671 shares outstanding at September 30, 2018 and 53,338,297 shares issued and 27,483,115 shares outstanding at December 31, 2017 | 54 | 53 |
Treasury stock, 26,080,604 shares at September 30, 2018 and 25,855,182 shares at December 31, 2017, at cost | (174,780) | (170,816) |
Additional paid-in capital | 304,789 | 300,763 |
Accumulated other comprehensive (loss) income | (171) | 65 |
Retained earnings (accumulated deficit) | 965 | (9,318) |
Total stockholders’ equity | 130,857 | 120,747 |
Total liabilities and stockholders’ equity | $ 172,966 | $ 173,169 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Statement Of Financial Position [Abstract] | ||
Allowance for doubtful accounts, accounts receivable | $ 1,975 | $ 1,783 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 54,082,275 | 53,338,297 |
Common stock, shares outstanding | 28,001,671 | 27,483,115 |
Treasury stock, shares | 26,080,604 | 25,855,182 |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | ||
Income Statement [Abstract] | |||||
Revenues | $ 30,742 | $ 28,012 | $ 89,513 | $ 78,253 | |
Cost of revenues | [1] | 7,445 | 6,951 | 21,294 | 20,972 |
Gross profit | 23,297 | 21,061 | 68,219 | 57,281 | |
Operating expenses: | |||||
Selling and marketing | [1] | 12,479 | 11,568 | 35,254 | 33,006 |
Product development | [1] | 2,340 | 2,209 | 6,527 | 6,168 |
General and administrative | [1] | 3,938 | 3,288 | 10,663 | 9,542 |
Depreciation and amortization | 1,156 | 1,109 | 3,404 | 3,375 | |
Total operating expenses | 19,913 | 18,174 | 55,848 | 52,091 | |
Operating income | 3,384 | 2,887 | 12,371 | 5,190 | |
Interest and other expense, net | (362) | (190) | (1,206) | (447) | |
Income before (benefit from) provision for income taxes | 3,022 | 2,697 | 11,165 | 4,743 | |
(Benefit from) provision for income taxes | (747) | 623 | 882 | 1,337 | |
Net income | 3,769 | 2,074 | 10,283 | 3,406 | |
Other comprehensive (loss) income, net of tax: | |||||
Unrealized gain on investments (net of tax provision of $5, $3, $8 and $11, respectively) | 1 | 6 | 13 | 20 | |
Foreign currency translation (loss) gain | (120) | 71 | (249) | 233 | |
Other comprehensive (loss) income | (119) | 77 | (236) | 253 | |
Comprehensive income | $ 3,650 | $ 2,151 | $ 10,047 | $ 3,659 | |
Net income per common share: | |||||
Basic | $ 0.14 | $ 0.08 | $ 0.37 | $ 0.12 | |
Diluted | $ 0.13 | $ 0.07 | $ 0.36 | $ 0.12 | |
Weighted average common shares outstanding: | |||||
Basic | 27,827 | 27,555 | 27,627 | 27,521 | |
Diluted | 28,764 | 28,320 | 28,711 | 28,275 | |
[1] | Amounts include stock-based compensation expense as follows: Cost of revenues $53 $13 $114 $38 Selling and marketing 1,608 1,284 3,263 3,161 Product development 73 18 113 92 General and administrative 1,394 811 2,654 2,018 |
Consolidated Statements of In_2
Consolidated Statements of Income and Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Unrealized gain (loss) on investments, tax effect | $ 5 | $ 3 | $ 8 | $ 11 |
Cost of Revenues [Member] | ||||
Allocated stock-based compensation expense | 53 | 13 | 114 | 38 |
Selling and Marketing [Member] | ||||
Allocated stock-based compensation expense | 1,608 | 1,284 | 3,263 | 3,161 |
Product Development [Member] | ||||
Allocated stock-based compensation expense | 73 | 18 | 113 | 92 |
General and Administrative [Member] | ||||
Allocated stock-based compensation expense | $ 1,394 | $ 811 | $ 2,654 | $ 2,018 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Operating activities: | ||
Net income | $ 10,283 | $ 3,406 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 3,404 | 3,375 |
Provision for bad debt | 701 | 606 |
Amortization of investment premiums | 68 | 214 |
Stock-based compensation | 6,144 | 5,309 |
Amortization of debt issuance costs | 84 | 81 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 1,158 | (7,447) |
Prepaid expenses and other current assets | (1,072) | (759) |
Other assets | 1 | 44 |
Accounts payable | 266 | (618) |
Income taxes payable | (1,391) | 1,581 |
Accrued expenses and other current liabilities | 270 | (130) |
Accrued compensation expenses | 8 | 519 |
Contract liabilities | (2,322) | 3,159 |
Other liabilities | (229) | (321) |
Net cash provided by operating activities | 17,373 | 9,019 |
Investing activities: | ||
Purchases of property and equipment, and other capitalized assets | (4,970) | (2,761) |
Purchases of investments | (500) | |
Proceeds from sales and maturities of investments | 5,100 | 7,300 |
Acquisitions of businesses, net | (370) | |
Net cash (used for) provided by investing activities | (240) | 4,039 |
Financing activities: | ||
Tax withholdings related to net share settlements | (3,073) | (3,789) |
Purchase of treasury shares and related costs | (3,964) | (5,222) |
Proceeds from exercise of stock options | 956 | 561 |
Debt issuance costs | (50) | |
Term loan principal payment | (7,500) | (3,750) |
Net cash used in financing activities | (13,581) | (12,250) |
Effect of exchange rate changes on cash and cash equivalents | (71) | (40) |
Net increase in cash and cash equivalents | 3,481 | 768 |
Cash and cash equivalents at beginning of period | 25,966 | 18,485 |
Cash and cash equivalents at end of period | 29,447 | 19,253 |
Supplemental disclosure of cash flow information: | ||
Cash paid for (refunded from) taxes, net | 2,734 | $ (166) |
Property and equipment included in accounts payable and in accrued expenses and other liabilities | $ 408 |
Organization and Operations
Organization and Operations | 9 Months Ended |
Sep. 30, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization and Operations | 1. Organization and Operations 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 technology vendors. The Company’s service offerings enable technology vendors to better identify, reach, and influence corporate IT decision makers actively researching specific IT purchases. The Company improves 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 advertising techniques. The Company operates a network of over 140 websites, each of which focuses on a specific IT sector such as storage, security, or networking. IT 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 IT and business professionals to navigate the complex and rapidly changing IT 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 IT 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 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 including: Security; Networking; Storage; Data Center and Virtualization Technologies; CIO/IT Strategy; Business Applications and Analytics; Application Architecture and Development; and Channel. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies 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, 2017, and in this note to the consolidated financial statements. There were no material changes to the Company’s critical accounting policies and use of estimates during the first nine months of 2018, other than those related revenue recognition resulting from the adoption of a new accounting pronouncement, as described in this Note 2 under “Revenue Recognition”. Principles of Consolidation The accompanying 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”). In 2018, TechTarget began modifying its PRC operations and consolidating its activities with other TechTarget locations. 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”) subtopic 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 among the Company, its subsidiaries, and KWIT have been eliminated in consolidation. Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted (Generally Accepted Accounting Principles or “ ” “U.S.” Reclassifications Historically, the Company presented online revenues and online cost of revenues separately from events revenues and events cost of revenues. On the Consolidated Statements of Income and Comprehensive Income, the Company has combined these into a single line item for revenues and a single line item for cost of revenues, since the events product line, which phased out in the first quarter of 2017, generated immaterial revenues and cost of revenues for the nine months ended September 30, 2017 and no revenues or cost of revenues in the other periods presented on the Consolidated Statements of Income and Comprehensive Income. These reclassifications are not material and had no effect on the total reported revenues or cost of revenues. In addition, the Company historically presented depreciation expense and amortization expense as separate line items on the Consolidated Statements of Income and Comprehensive Income. Due to the immateriality of amortization expense, the Company has combined these expenses into a single line item. This reclassification had no effect on total operating expenses or net income. Use of Estimates 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. Revenue Recognition The Company generates substantially all of its revenues from the sale of targeted marketing and sales services and advertising campaigns utilizing, which it delivers via its network of websites and data analytics solutions. Revenue is recognized when performance obligations are satisfied by transferring promised goods or services to customers, as determined by applying a five-step process consisting of: a) i dentifying 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 Recent Accounting Pronouncements Recently Adopted Accounting Guidance In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“Topic 606”), which supersedes the revenue recognition requirements in ASC 605, Revenue Recognition (“Topic 605”). Topic 606 is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Topic 606 provides that an entity should apply a five-step approach for recognizing revenue, as described above in this Note 2 under “Revenue Recognition.” This guidance also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. The Company adopted the standard effective January 1, 2018, using the modified retrospective approach. Under this method, the Company evaluated contracts that were in effect at the beginning of fiscal 2018 as if those contracts had been accounted for under Topic 606. Under the modified retrospective approach, periods prior to the adoption date were not adjusted and continue to be reported in accordance with historical, pre-Topic 606 accounting. The adoption of the standard did not have a material effect on the Company’s consolidated financial statements, systems, processes, or internal controls. Accounting Guidance Not Yet Adopted 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 twelve months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the Consolidated Statements of 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 will adopt ASU 2016-02 in the first quarter of 2019 using the modified retrospective approach, and intends to elect the package of practical expedients permitted under the transition guidance. The Company anticipates that this standard will have a material impact on its financial position, primarily due to office space operating leases, for which the Company will be required to recognize the ROU assets and lease liabilities on its Consolidated Balance Sheets. 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 is currently evaluating the impact that this standard will have on its consolidated financial statements and disclosures but does not expect that it will have a material impact. 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 option 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 is currently evaluating the impact of this standard on its consolidated financial statements and disclosures but does not expect that it will have a material impact . |
Revenues
Revenues | 9 Months Ended |
Sep. 30, 2018 | |
Revenue Recognition [Abstract] | |
Revenues | 3. Revenues Revenue Recognition On January 1, 2018, the Company adopted Topic 606 and, as such, recognizes revenue when performance obligations are satisfied by transferring promised goods or services to customers in an amount the Company expects to receive in exchange for those goods or services. The Company enters into contracts that can include various combinations of its offerings, which are generally capable of being distinct and accounted for as separate performance obligations. The Company’s offerings consist of IT Deal Alert TM IT Deal Alert provides a suite of products that leverages detailed purchase intent data that we collect about end-user IT organizations. Through proprietary scoring methodologies, we use this insight to help our customers identify and prioritize accounts. We provide this insight through Priority Engine TM TM TM TM TM Core consists primarily of demand solutions, brand solutions, and custom content. Demand solutions offerings provide the Company’s customers the opportunity to maximize return on investment by capturing sales leads from the distribution and promotion of content to its audience. Demand solutions may contain the following components: white papers, webcasts, podcasts, videocasts and virtual trade shows, and content sponsorship, which the Company may utilize at its discretion. Brand solutions provide the Company’s customers to target audiences of IT and business professionals actively researching information related to their products and services. This can be accomplished through on-network or off-network branding as well as through the hosting of microsites. The Company will at times create custom content, such as white papers, case studies, webcasts, or videos, to our customers’ specifications through its Custom Content team. Revenue from demand solutions is primarily recognized when the transfer of control occurs. For certain demand solutions, the Company generates revenue on a cost per lead basis and the transfer of control occurs at the point in time each lead is generated. Certain of the contracts within demand solutions are duration-based campaigns which, in the event of customer cancellation, provide the Company with an enforceable right to a proportional payment for the portion of the campaign based on services provided. Accordingly, revenue from duration-based campaigns are recognized using a time-based measure of progress, which the Company believes best depicts how it satisfies its performance obligations in these arrangements as control is continuously transferred throughout the contract period. Revenue from brand solutions is primarily recognized when the placement of the branding impression appears. Revenue from microsites is recognized ratably over the life of the contract. The Company’s offerings can be sold separately but the Company’s contracts often involve multiple offerings. The Company evaluates all contracts with customers at inception to determine whether they contain separate performance obligations. If the contract contains a single performance obligation, the entire transaction price is allocated to that performance obligation. If the contract contains multiple performance obligations, the transaction price is allocated to each performance obligation based on a relative standalone selling price. The Company has concluded that each of the performance obligations described above is distinct. To determine standalone selling price for the individual performance obligations in the arrangement, the Company uses an estimate of the observable selling prices in separate transactions. The Company establishes best estimates considering multiple factors including, but not limited to, class of client, size of transaction, available inventory, pricing strategies and market conditions. The Company uses a range of amounts to estimate stand-alone selling price when it sells the goods and services separately and needs to determine whether a discount is to be allocated based upon the relative stand-alone selling price to the various goods and services. Disaggregation of Revenue The following table depicts the disaggregation of revenue according to categories consistent with how the Company evaluates its financial performance. International revenue consists of international geo-targeted campaigns, which are campaigns targeted at an audience of members outside of North America. Three Months Ended September 30, Percent Nine Months Ended September 30, Percent 2018 2017 Change 2018 2017 Change ($ in thousands) ($ in thousands) Total by Geographic Area: North America: North America IT Deal Alert $ 11,921 $ 9,953 20 % $ 32,316 $ 26,563 22 % North America Core 9,026 9,374 (4 )% 28,667 26,444 8 % Total North America 20,947 19,327 8 % 60,983 53,007 15 % International: International IT Deal Alert 4,043 3,451 17 % 11,309 8,869 28 % International Core 5,752 5,234 10 % 17,221 16,209 6 % Total International 9,795 8,685 13 % 28,530 25,078 14 % Total Online by Product: IT Deal Alert: North America IT Deal Alert $ 11,921 $ 9,953 20 % $ 32,316 $ 26,563 22 % International IT Deal Alert 4,043 3,451 17 % 11,309 8,869 28 % Total IT Deal Alert 15,964 13,404 19 % 43,625 35,432 23 % Core: North America Core 9,026 9,374 (4 )% 28,667 26,444 8 % International Core 5,752 5,234 10 % 17,221 16,209 6 % Total Core 14,778 14,608 1 % 45,888 42,653 8 % Other — — — — 168 (100 )% Total Revenues $ 30,742 $ 28,012 10 % $ 89,513 $ 78,253 14 % Deferred Revenue and Contract Balances Timing may differ between the satisfaction of performance obligations and the invoicing and collection 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. Deferred revenue is included in contract liabilities on the accompanying Consolidated Balance Sheets and was $2.3 million and $4.9 million at September 30, 2018 and December 31, 2017, respectively. 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 customers 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 contract liabilities on the accompanying Consolidated Balance Sheets were $2.9 million and $2.7 million at September 30, 2018 and December 31, 2017, respectively. During the first nine months of 2018, revenues of $3.4 million were recognized that had been included in the contract liabilities balance at December 31, 2017. Contract Liabilities Year-to-Date Activity (in thousands) Balance at December 31, 2017 $ 4,088 Deferral of revenue 4,576 Recognition of previously unearned revenue (3,389 ) Balance at September 30, 2018 $ 5,275 The Company reduced its accounts receivable by $3.5 million from $29.6 million to $26.1 million as of January 1, 2018 as a result of the adoption of Topic 606. There was a corresponding reduction of $3.5 million to its deferred revenue balance from $7.6 million to $4.1 million as of January 1, 2018 as a result of the adoption of Topic 606. Payment terms and conditions vary by contract type, although terms generally include requirement of payment within 30 to 90 days. In instances where the timing of revenue recognition differs from the timing of invoicing, the Company has determined its contracts do not contain a financing component as they are generally less than one year. The Company increased its allowance for doubtful accounts by $0.7 million and had direct write-offs of $0.5 million, net of recoveries, during the nine months ended September 30, 2018. The Company elected to apply the following practical expedients and exemptions: • The Company does not disclose the value of unsatisfied performance obligations for contracts with an original expected duration of one year or less. • The Company expenses, as incurred, contract costs consisting of sales commissions and sales bonuses because the amortization period of the contract asset that would have otherwise been recognized would have been one year or less. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 4. Fair Value Measurements 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. The fair value of these financial assets and liabilities was determined based on three levels of input as follows: • Level 1. Quoted prices in active markets for identical assets and liabilities; • Level 2. Observable inputs other than quoted prices in active markets; and • Level 3. Unobservable inputs. 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: Fair Value Measurements at Reporting Date Using September 30, 2018 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) $ 12,480 $ 12,480 $ — $ — Short-term investments (2) 3,000 — 3,000 — Total assets $ 15,480 $ 12,480 $ 3,000 $ — Fair Value Measurements at Reporting Date Using December 31, 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) $ 7,155 $ 7,155 $ — $ — Short-term investments (2) 7,650 — 7,650 — Long-term investments (2) 496 — 496 — Total assets $ 15,301 $ 7,155 $ 8,146 $ — (1) Included in cash and cash equivalents on the accompanying Consolidated Balance Sheets; valued at quoted market prices in active markets. (2) Short-term and long-term investments consist of municipal bonds, corporate bonds, U.S. Treasury securities, and government agency bonds; their fair value is calculated using an interest rate yield curve for similar instruments. |
Cash, Cash Equivalents, and Inv
Cash, Cash Equivalents, and Investments | 9 Months Ended |
Sep. 30, 2018 | |
Cash And Cash Equivalents [Abstract] | |
Cash, Cash Equivalents, and Investments | 5. Cash, Cash Equivalents, and Investments Cash and cash equivalents consist of highly liquid investments with maturities of three months or less at date of purchase. Cash equivalents are carried at cost, which approximates their fair market value. Cash and cash equivalents consisted of the following: September 30, 2018 December 31, 2017 Cash $ 16,967 $ 18,811 Money market funds 12,480 7,155 Total cash and cash equivalents $ 29,447 $ 25,966 The Company’s short-term and long-term investments are accounted for as available for sale securities. These investments are recorded at fair value with the related unrealized gains and losses included in accumulated other comprehensive income, a component of stockholders’ equity, net of tax. The cumulative unrealized loss, net of taxes, was $4 and $17 as of September 30, 2018 and December 31, 2017, respectively. Realized gains and losses on the sale of these investments are determined using the specific identification method. There were no realized gains or losses Short-term and long-term investments consisted of the following: September 30, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Short-term and long-term investments: U.S. Treasury securities $ 1,000 $ — $ (2 ) $ 998 Government agency bonds 500 — - 500 Municipal bonds 1,005 — (2 ) 1,003 Corporate bonds 500 — (1 ) 499 Total short-term and long-term investments $ 3,005 $ — $ (5 ) $ 3,000 December 31, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Short-term and long-term investments: U.S. Treasury securities $ 1,499 $ — $ (6 ) $ 1,493 Government agency bonds 1,003 — (4 ) 999 Municipal bonds 4,169 — (14 ) 4,155 Corporate bonds 1,502 — (3 ) 1,499 Total short-term and long-term investments $ 8,173 $ — $ (27 ) $ 8,146 The Company had six 25 15 8.1 million The Company’s investments have contractual maturity dates that range from November 2018 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Sep. 30, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 6. Goodwill and Intangible Assets The following table summarizes the Company’s intangible assets, net: September 30, 2018 Estimated Useful Lives (Years) Gross Carrying Amount Accumulated Amortization Net Customer, affiliate and advertiser relationships 17 $ 7,128 $ (6,880 ) $ 248 Developed websites, technology and patents 10 1,519 (945 ) 574 Trademark, trade name and domain name 8 1,794 (1,733 ) 61 Proprietary user information database and internet traffic 5 1,180 (1,180 ) — Non-compete agreements 2 10 (1 ) 9 Total intangible assets $ 11,631 $ (10,739 ) $ 892 December 31, 2017 Estimated Useful Lives (Years) Gross Carrying Amount Accumulated Amortization Net Customer, affiliate and advertiser relationships 5 $ 6,938 $ (6,938 ) $ — Developed websites, technology and patents 10 1,342 (907 ) 435 Trademark, trade name and domain name 8 1,802 (1,731 ) 71 Proprietary user information database and internet traffic 5 1,202 (1,202 ) — Total intangible assets $ 11,284 $ (10,778 ) $ 506 Intangible assets are amortized over their estimated useful lives, which range from approximately two to 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 5.19 On August 1, 2018, the Company acquired certain of the operating assets associated with the business-to-business contact management provider Oceanos Marketing, Inc., for total consideration of $0.6 million. The The Company expects amortization expense of intangible assets to be as follows: Years Ending December 31: Amortization Expense 2018 (October 1 – December 31) $ 38 2019 135 2020 114 2021 130 2022 160 Thereafter 315 Total $ 892 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, 2018 or December 31, 2017. There were no indications of impairment as of September 30, 2018, and the Company believes that, as of the balance sheet dates presented, none of the Company’s goodwill or intangible assets was impaired. |
Net Income Per Common Share
Net Income Per Common Share | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Net Income Per Common Share | 7. Net Income Per Common Share A reconciliation of the numerator and denominator used in the calculation of basic and diluted net income per common share is as follows: For the Three Months Ended For the Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Numerator: Net income $ 3,769 $ 2,074 $ 10,283 $ 3,406 Denominator: Basic: Weighted average shares of common stock and vested, undelivered restricted stock units outstanding 27,827,296 27,554,586 27,627,083 27,521,244 Diluted: Weighted average shares of common stock and vested, undelivered restricted stock units outstanding 27,827,296 27,554,586 27,627,083 27,521,244 Effect of potentially dilutive shares (1) 936,730 765,799 1,083,798 754,043 Total weighted average shares of common stock and vested, undelivered restricted stock units outstanding and potentially dilutive shares 28,764,026 28,320,385 28,710,881 28,275,287 Net Income Per Share: Basic net income per share $ 0.14 $ 0.08 $ 0.37 $ 0.12 Diluted net income per share $ 0.13 $ 0.07 $ 0.36 $ 0.12 (1) In calculating diluted net income per share, 0.5 million |
Term Loan Agreement
Term Loan Agreement | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Term Loan Agreement | 8 . Term Loan Agreement On May 9, 2016, the Company entered into a Senior Secured Credit Facilities Credit Agreement for a term loan (the “Term Loan Agreement”). Under the Term Loan Agreement, the Company borrowed and received $50.0 million in aggregate principal amount pursuant to a five-year term loan (the “Term Loan”). The borrowings under the Term Loan Agreement are 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, 2018, the carrying amount of the Term Loan was $24.8 million. At the Company’s option, the Term Loan Agreement bears interest at either an annual rate of 1.50% plus the higher 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 4.58% at September 30, 2018, representing LIBOR plus the applicable margin of 2.50%. Interest expense under the Term Loan Agreement was $1.0 million for each of the nine months ended September 30, 2018 and 2017. This includes non-cash interest expense of $84 and $81 for the nine months ended September 30, 2018 and 2017, respectively, related to the amortization of deferred issuance costs. During the nine months ended September 30, 2018, the Company made principal payments totaling $7.5 million. The Term Loan Agreement requires the Company to maintain compliance with certain covenants, including leverage and fixed charge coverage ratio covenants. At September 30, 2018, the Company was in compliance with all covenants under the Term Loan Agreement. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 9. Commitments and Contingencies Operating Leases The Company conducts its operations in leased office facilities under various noncancelable operating lease agreements that expire through December 2029. The lease for the Company’s Newton office contains rent concessions, which the Company is receiving over the life of the lease. Certain of the Company’s operating leases include lease incentives and escalating payment amounts and are renewable for varying periods. The Company is recognizing the related rent expense on a straight-line basis over the term of each lease, taking into account the lease incentives and escalating lease payments. Total rent expense under the Company’s leases was approximately $3.0 million and $3.4 million for the nine months ended September 30, 2018 and 2017, respectively. Future minimum lease payments under the Company’s noncancelable operating leases at September 30, 2018 are as follows: Years Ending December 31: Minimum Payments 2018 (October 1 – December 31) $ 1,081 2019 4,194 2020 3,637 2021 3,730 2022 3,397 Thereafter 24,664 Total $ 40,703 Litigation 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, 2018 and December 31, 2017, 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 . |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | 10. Stock-Based Compensation Stock Option and Incentive Plans 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. 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- to 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, t he Company reserved for issuance an aggregate of 2,911,667 shares of common stock under 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. Approximately 8,224,334 shares were added to the 2007 Plan in accordance with the automatic annual increase and other 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. 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 is a total of 1,014,761 shares of common stock that remain subject to outstanding stock grants under the 2017 Plan as of September 30, 2018. Accounting for Stock-Based Compensation 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 months ended September 30, 2018 is presented below: Year-to-Date Activity Options Outstanding Weighted- Average Exercise Price Per Share Weighted- Average Remaining Contractual Term in Years Aggregate Intrinsic Value Options outstanding at December 31, 2017 344,090 $ 6.41 Granted 20,000 $ 28.42 Exercised (168,090 ) $ 5.69 $ 2,627 Forfeited — Cancelled — Options outstanding at September 30, 2018 196,000 $ 9.27 4.35 $ 2,169 Options exercisable at September 30, 2018 176,000 $ 7.10 3.74 $ 2,169 Options vested or expected to vest at September 30, 2018 194,108 $ 9.09 4.29 $ 2,169 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 $2.6 million and $0.4 million during the nine months ended September 30, 2018 and September 30, 2017, respectively. The total amount of cash received from exercise of these options was approximately $1.0 million and $0.6 million during the nine months ended September 30, 2018 and 2017, respectively. Restricted Stock Units 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 months ended September 30, 2018 is presented below: Year-to-Date Activity Shares Weighted- Average Grant Date Fair Value Per Share Aggregate Intrinsic Value Nonvested outstanding at December 31, 2017 1,414,000 $ 9.37 Granted 527,734 $ 28.03 Vested (693,473 ) $ 9.15 Forfeited (6,000 ) $ 9.57 Nonvested outstanding at September 30, 2018 1,242,261 $ 17.42 $ 23,976 There were 693,473 and 759,866 restricted stock units with a total grant-date fair value of $6.3 million and $6.2, that vested during the three months ended September 30, 2018 and 2017, respectively. As of September 30, 2018, there was $20.1 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 2.0 |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Stockholders' Equity | 11. Stockholders’ Equity Reserved Common Stock As of September 30, 2018, the Company has reserved 7,840,711 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. Common Stock Repurchase Program In June 2016, the Company announced that the Board had authorized a $20.0 million stock repurchase program (the “Repurchase Program”), whereby the Company was 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 manner determined by the Board. 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 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. Pursuant to the Repurchase Program, the Company repurchased 211,729 and 543,328 shares of common stock for an aggregate purchase price of $4.0 million and $5.2 million in the nine months ended September 30, 2018 and 2017, respectively. The Repurchase Program expired in August 2018 and the Company is announcing an additional stock repurchase program of $25.0 million over a two-year period beginning in November 2018. 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. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 12. Income Taxes The Company’s effective income tax rate before discrete items was 27.4% and 44.7% for the nine months ended September 30, 2018 and 2017, respectively. The Company recognized income tax benefits for discrete items of $2.2 million and $0.8 million during the nine months ended September 30, 2018 and 2017, 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 In December 2017, the legislation commonly referred to as the Tax Cuts and Jobs Act of 2017 (the “Act”) was signed into law making significant changes to the Internal Revenue Code. Changes include, but are not limited to, a corporate tax rate decrease from 35% to 21% effective for tax years beginning after December 31, 2017 and a one-time transition tax on the mandatory deemed repatriation of cumulative foreign earnings as of December 31, 2017. On December 22, 2017, Staff Accounting Bulletin No. 118 was issued to address the application of U.S. GAAP in situations when a registrant does not have the necessary information available, prepared or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Act. In the first quarter of 2018, the Company obtained additional information affecting the provisional amount initially recorded for the transition tax for the three months ended December 31, 2017. As a result, the Company recorded an immaterial adjustment to the transition tax. Additional analysis of historical foreign earnings is necessary to complete the calculation of the transition tax. Any subsequent adjustment to the amount will be recorded to current tax expense in the quarter of 2018 when the analysis is complete. 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-based compensation be recognized as income tax expense or benefit in the Consolidated Statements of Income and Comprehensive Income in the period incurred. 0 As part of adopting ASU 2016-09, the Company recorded deferred tax assets for the federal and state excess tax benefit net operating losses in the amount of $0.2 million, with an offsetting entry to retained earnings. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | 13. Segment Information 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. Geographic Data Net sales to unaffiliated customers by geographic area were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 United States $ 22,799 $ 20,971 $ 65,755 $ 56,955 United Kingdom 3,571 2,922 10,824 8,563 Other international 4,372 4,119 12,934 12,735 Total $ 30,742 $ 28,012 $ 89,513 $ 78,253 Long-lived assets by geographic area were as follows: September 30, 2018 December 31, 2017 United States $ 100,451 $ 98,683 International 5,130 5,402 Total $ 105,581 $ 104,085 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. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The accompanying 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”). In 2018, TechTarget began modifying its PRC operations and consolidating its activities with other TechTarget locations. 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”) subtopic 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 among the Company, its subsidiaries, and KWIT have been eliminated in consolidation. |
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted (Generally Accepted Accounting Principles or “ ” “U.S.” |
Reclassifications | Reclassifications Historically, the Company presented online revenues and online cost of revenues separately from events revenues and events cost of revenues. On the Consolidated Statements of Income and Comprehensive Income, the Company has combined these into a single line item for revenues and a single line item for cost of revenues, since the events product line, which phased out in the first quarter of 2017, generated immaterial revenues and cost of revenues for the nine months ended September 30, 2017 and no revenues or cost of revenues in the other periods presented on the Consolidated Statements of Income and Comprehensive Income. These reclassifications are not material and had no effect on the total reported revenues or cost of revenues. In addition, the Company historically presented depreciation expense and amortization expense as separate line items on the Consolidated Statements of Income and Comprehensive Income. Due to the immateriality of amortization expense, the Company has combined these expenses into a single line item. This reclassification had no effect on total operating expenses or net income. |
Use of Estimates | Use of Estimates 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. |
Revenue Recognition | Revenue Recognition The Company generates substantially all of its revenues from the sale of targeted marketing and sales services and advertising campaigns utilizing, which it delivers via its network of websites and data analytics solutions. Revenue is recognized when performance obligations are satisfied by transferring promised goods or services to customers, as determined by applying a five-step process consisting of: a) i dentifying 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 |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently Adopted Accounting Guidance In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“Topic 606”), which supersedes the revenue recognition requirements in ASC 605, Revenue Recognition (“Topic 605”). Topic 606 is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Topic 606 provides that an entity should apply a five-step approach for recognizing revenue, as described above in this Note 2 under “Revenue Recognition.” This guidance also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. The Company adopted the standard effective January 1, 2018, using the modified retrospective approach. Under this method, the Company evaluated contracts that were in effect at the beginning of fiscal 2018 as if those contracts had been accounted for under Topic 606. Under the modified retrospective approach, periods prior to the adoption date were not adjusted and continue to be reported in accordance with historical, pre-Topic 606 accounting. The adoption of the standard did not have a material effect on the Company’s consolidated financial statements, systems, processes, or internal controls. Accounting Guidance Not Yet Adopted 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 twelve months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the Consolidated Statements of 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 will adopt ASU 2016-02 in the first quarter of 2019 using the modified retrospective approach, and intends to elect the package of practical expedients permitted under the transition guidance. The Company anticipates that this standard will have a material impact on its financial position, primarily due to office space operating leases, for which the Company will be required to recognize the ROU assets and lease liabilities on its Consolidated Balance Sheets. 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 is currently evaluating the impact that this standard will have on its consolidated financial statements and disclosures but does not expect that it will have a material impact. 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 option 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 is currently evaluating the impact of this standard on its consolidated financial statements and disclosures but does not expect that it will have a material impact . |
Revenues (Tables)
Revenues (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Revenue Recognition [Abstract] | |
Disaggregated Revenue | The following table depicts the disaggregation of revenue according to categories consistent with how the Company evaluates its financial performance. International revenue consists of international geo-targeted campaigns, which are campaigns targeted at an audience of members outside of North America. Three Months Ended September 30, Percent Nine Months Ended September 30, Percent 2018 2017 Change 2018 2017 Change ($ in thousands) ($ in thousands) Total by Geographic Area: North America: North America IT Deal Alert $ 11,921 $ 9,953 20 % $ 32,316 $ 26,563 22 % North America Core 9,026 9,374 (4 )% 28,667 26,444 8 % Total North America 20,947 19,327 8 % 60,983 53,007 15 % International: International IT Deal Alert 4,043 3,451 17 % 11,309 8,869 28 % International Core 5,752 5,234 10 % 17,221 16,209 6 % Total International 9,795 8,685 13 % 28,530 25,078 14 % Total Online by Product: IT Deal Alert: North America IT Deal Alert $ 11,921 $ 9,953 20 % $ 32,316 $ 26,563 22 % International IT Deal Alert 4,043 3,451 17 % 11,309 8,869 28 % Total IT Deal Alert 15,964 13,404 19 % 43,625 35,432 23 % Core: North America Core 9,026 9,374 (4 )% 28,667 26,444 8 % International Core 5,752 5,234 10 % 17,221 16,209 6 % Total Core 14,778 14,608 1 % 45,888 42,653 8 % Other — — — — 168 (100 )% Total Revenues $ 30,742 $ 28,012 10 % $ 89,513 $ 78,253 14 % |
Schedule of Deferred Revenue Included in Contract Liabilities | Contract Liabilities Year-to-Date Activity (in thousands) Balance at December 31, 2017 $ 4,088 Deferral of revenue 4,576 Recognition of previously unearned revenue (3,389 ) Balance at September 30, 2018 $ 5,275 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Carried at Fair Value and Measured on Recurring Basis | 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: Fair Value Measurements at Reporting Date Using September 30, 2018 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) $ 12,480 $ 12,480 $ — $ — Short-term investments (2) 3,000 — 3,000 — Total assets $ 15,480 $ 12,480 $ 3,000 $ — Fair Value Measurements at Reporting Date Using December 31, 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) $ 7,155 $ 7,155 $ — $ — Short-term investments (2) 7,650 — 7,650 — Long-term investments (2) 496 — 496 — Total assets $ 15,301 $ 7,155 $ 8,146 $ — (1) Included in cash and cash equivalents on the accompanying Consolidated Balance Sheets; valued at quoted market prices in active markets. (2) Short-term and long-term investments consist of municipal bonds, corporate bonds, U.S. Treasury securities, and government agency bonds; their fair value is calculated using an interest rate yield curve for similar instruments. |
Cash, Cash Equivalents, and I_2
Cash, Cash Equivalents, and Investments (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Cash And Cash Equivalents [Abstract] | |
Cash and Cash Equivalents | Cash and cash equivalents consisted of the following: September 30, 2018 December 31, 2017 Cash $ 16,967 $ 18,811 Money market funds 12,480 7,155 Total cash and cash equivalents $ 29,447 $ 25,966 |
Short-term and Long-term Investments | Short-term and long-term investments consisted of the following: September 30, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Short-term and long-term investments: U.S. Treasury securities $ 1,000 $ — $ (2 ) $ 998 Government agency bonds 500 — - 500 Municipal bonds 1,005 — (2 ) 1,003 Corporate bonds 500 — (1 ) 499 Total short-term and long-term investments $ 3,005 $ — $ (5 ) $ 3,000 December 31, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Short-term and long-term investments: U.S. Treasury securities $ 1,499 $ — $ (6 ) $ 1,493 Government agency bonds 1,003 — (4 ) 999 Municipal bonds 4,169 — (14 ) 4,155 Corporate bonds 1,502 — (3 ) 1,499 Total short-term and long-term investments $ 8,173 $ — $ (27 ) $ 8,146 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Summary of Intangible Assets | The following table summarizes the Company’s intangible assets, net: September 30, 2018 Estimated Useful Lives (Years) Gross Carrying Amount Accumulated Amortization Net Customer, affiliate and advertiser relationships 17 $ 7,128 $ (6,880 ) $ 248 Developed websites, technology and patents 10 1,519 (945 ) 574 Trademark, trade name and domain name 8 1,794 (1,733 ) 61 Proprietary user information database and internet traffic 5 1,180 (1,180 ) — Non-compete agreements 2 10 (1 ) 9 Total intangible assets $ 11,631 $ (10,739 ) $ 892 December 31, 2017 Estimated Useful Lives (Years) Gross Carrying Amount Accumulated Amortization Net Customer, affiliate and advertiser relationships 5 $ 6,938 $ (6,938 ) $ — Developed websites, technology and patents 10 1,342 (907 ) 435 Trademark, trade name and domain name 8 1,802 (1,731 ) 71 Proprietary user information database and internet traffic 5 1,202 (1,202 ) — Total intangible assets $ 11,284 $ (10,778 ) $ 506 |
Schedule of Amortization Expense of Intangible Assets | The Company expects amortization expense of intangible assets to be as follows: Years Ending December 31: Amortization Expense 2018 (October 1 – December 31) $ 38 2019 135 2020 114 2021 130 2022 160 Thereafter 315 Total $ 892 |
Net Income Per Common Share (Ta
Net Income Per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Reconciliation of Numerator and Denominator Used in Calculation of Basic and Diluted Net Income Per Common Share | A reconciliation of the numerator and denominator used in the calculation of basic and diluted net income per common share is as follows: For the Three Months Ended For the Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Numerator: Net income $ 3,769 $ 2,074 $ 10,283 $ 3,406 Denominator: Basic: Weighted average shares of common stock and vested, undelivered restricted stock units outstanding 27,827,296 27,554,586 27,627,083 27,521,244 Diluted: Weighted average shares of common stock and vested, undelivered restricted stock units outstanding 27,827,296 27,554,586 27,627,083 27,521,244 Effect of potentially dilutive shares (1) 936,730 765,799 1,083,798 754,043 Total weighted average shares of common stock and vested, undelivered restricted stock units outstanding and potentially dilutive shares 28,764,026 28,320,385 28,710,881 28,275,287 Net Income Per Share: Basic net income per share $ 0.14 $ 0.08 $ 0.37 $ 0.12 Diluted net income per share $ 0.13 $ 0.07 $ 0.36 $ 0.12 (1) In calculating diluted net income per share, 0.5 million |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Lease Payments | Future minimum lease payments under the Company’s noncancelable operating leases at September 30, 2018 are as follows: Years Ending December 31: Minimum Payments 2018 (October 1 – December 31) $ 1,081 2019 4,194 2020 3,637 2021 3,730 2022 3,397 Thereafter 24,664 Total $ 40,703 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Stock Option Activity Under Company's Plans | A summary of the stock option activity under the Company’s plans for the nine months ended September 30, 2018 is presented below: Year-to-Date Activity Options Outstanding Weighted- Average Exercise Price Per Share Weighted- Average Remaining Contractual Term in Years Aggregate Intrinsic Value Options outstanding at December 31, 2017 344,090 $ 6.41 Granted 20,000 $ 28.42 Exercised (168,090 ) $ 5.69 $ 2,627 Forfeited — Cancelled — Options outstanding at September 30, 2018 196,000 $ 9.27 4.35 $ 2,169 Options exercisable at September 30, 2018 176,000 $ 7.10 3.74 $ 2,169 Options vested or expected to vest at September 30, 2018 194,108 $ 9.09 4.29 $ 2,169 |
Summary of Restricted Stock Unit Activity Under Company's Plans | 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 months ended September 30, 2018 is presented below: Year-to-Date Activity Shares Weighted- Average Grant Date Fair Value Per Share Aggregate Intrinsic Value Nonvested outstanding at December 31, 2017 1,414,000 $ 9.37 Granted 527,734 $ 28.03 Vested (693,473 ) $ 9.15 Forfeited (6,000 ) $ 9.57 Nonvested outstanding at September 30, 2018 1,242,261 $ 17.42 $ 23,976 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Net Sales to Unaffiliated Customers by Geographic Area | Net sales to unaffiliated customers by geographic area were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 United States $ 22,799 $ 20,971 $ 65,755 $ 56,955 United Kingdom 3,571 2,922 10,824 8,563 Other international 4,372 4,119 12,934 12,735 Total $ 30,742 $ 28,012 $ 89,513 $ 78,253 |
Long-Lived Assets by Geographic Area | Long-lived assets by geographic area were as follows: September 30, 2018 December 31, 2017 United States $ 100,451 $ 98,683 International 5,130 5,402 Total $ 105,581 $ 104,085 |
Organization and Operations - A
Organization and Operations - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2018Website | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Number of websites | 140 |
Revenues - Disaggregated Revenu
Revenues - Disaggregated Revenue (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Disaggregation Of Revenue [Line Items] | ||||
Total Revenues | $ 30,742 | $ 28,012 | $ 89,513 | $ 78,253 |
Percentage of Change in Revenues | 10.00% | 14.00% | ||
Core [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Revenues | $ 14,778 | 14,608 | $ 45,888 | 42,653 |
Percentage of Change in Revenues | 1.00% | 8.00% | ||
Online IT Deal Alert [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Revenues | $ 15,964 | 13,404 | $ 43,625 | 35,432 |
Percentage of Change in Revenues | 19.00% | 23.00% | ||
Other [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Revenues | 168 | |||
Percentage of Change in Revenues | (100.00%) | |||
North America [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Revenues | $ 20,947 | 19,327 | $ 60,983 | 53,007 |
Percentage of Change in Revenues | 8.00% | 15.00% | ||
North America [Member] | Core [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Revenues | $ 9,026 | 9,374 | $ 28,667 | 26,444 |
Percentage of Change in Revenues | (4.00%) | 8.00% | ||
North America [Member] | IT Deal Alert [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Revenues | $ 11,921 | 9,953 | $ 32,316 | 26,563 |
Percentage of Change in Revenues | 20.00% | 22.00% | ||
North America [Member] | Core [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Revenues | $ 9,026 | 9,374 | $ 28,667 | 26,444 |
Percentage of Change in Revenues | (4.00%) | 8.00% | ||
North America [Member] | Online IT Deal Alert [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Revenues | $ 11,921 | 9,953 | $ 32,316 | 26,563 |
Percentage of Change in Revenues | 20.00% | 22.00% | ||
International [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Revenues | $ 9,795 | 8,685 | $ 28,530 | 25,078 |
Percentage of Change in Revenues | 13.00% | 14.00% | ||
International [Member] | Core [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Revenues | $ 5,752 | 5,234 | $ 17,221 | 16,209 |
Percentage of Change in Revenues | 10.00% | 6.00% | ||
International [Member] | IT Deal Alert [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Revenues | $ 4,043 | 3,451 | $ 11,309 | 8,869 |
Percentage of Change in Revenues | 17.00% | 28.00% | ||
International [Member] | Core [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Revenues | $ 5,752 | 5,234 | $ 17,221 | 16,209 |
Percentage of Change in Revenues | 10.00% | 6.00% | ||
International [Member] | Online IT Deal Alert [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Revenues | $ 4,043 | $ 3,451 | $ 11,309 | $ 8,869 |
Percentage of Change in Revenues | 17.00% | 28.00% |
Revenues - Additional Informati
Revenues - Additional Information (Detail) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | |
Deferred Revenue Arrangement [Line Items] | |||
Revenues recognized | $ 3,400 | ||
Accounts receivable | 27,621 | $ 29,601 | |
Deferred revenue | $ 5,275 | 7,598 | |
Revenue recognition timing of invoicing period | 1 year | ||
Increase in allowance for doubtful accounts | $ 700 | ||
Write-offs, net of recoveries | $ 500 | ||
Minimum [Member] | |||
Deferred Revenue Arrangement [Line Items] | |||
Deferred revenue payment terms | 30 days | ||
Maximum [Member] | |||
Deferred Revenue Arrangement [Line Items] | |||
Deferred revenue payment terms | 90 days | ||
Amortization period of contract assets | 1 year | ||
ASU 2014-09 [Member] | |||
Deferred Revenue Arrangement [Line Items] | |||
Accounts receivable | $ 26,100 | ||
Deferred revenue | $ 5,275 | 4,100 | 4,088 |
ASU 2014-09 [Member] | Impact of Adoption of ASC 606 [Member] | |||
Deferred Revenue Arrangement [Line Items] | |||
Accounts receivable | (3,500) | ||
Deferred revenue | (3,500) | ||
ASU 2014-09 [Member] | Calculated under Revenue Guidance in Effect before Topic 606 [Member] | |||
Deferred Revenue Arrangement [Line Items] | |||
Accounts receivable | 29,600 | ||
Deferred revenue | $ 7,600 | ||
Contract Liabilities [Member] | |||
Deferred Revenue Arrangement [Line Items] | |||
Deferred revenue | 2,300 | 4,900 | |
Accrued sales incentives | $ 2,900 | $ 2,700 |
Revenues - Schedule of Deferred
Revenues - Schedule of Deferred Revenue Included in Contract Liabilities (Detail) $ in Thousands | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Deferred Revenue Arrangement [Line Items] | |
Contract Liabilities, Balance at December 31, 2017 | $ 7,598 |
Contract Liabilities, Balance at September 30, 2018 | 5,275 |
ASU 2014-09 [Member] | |
Deferred Revenue Arrangement [Line Items] | |
Contract Liabilities, Balance at December 31, 2017 | 4,088 |
Contract Liabilities, Deferral of revenue | 4,576 |
Contract Liabilities, Recognition of previously unearned revenue | (3,389) |
Contract Liabilities, Balance at September 30, 2018 | $ 5,275 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Carried at Fair Value and Measured on Recurring Basis (Detail) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Assets: | ||
Total assets | $ 15,480 | $ 15,301 |
Money Market Funds [Member] | ||
Assets: | ||
Total assets | 12,480 | 7,155 |
Short-Term Investments [Member] | ||
Assets: | ||
Total assets | 3,000 | 7,650 |
Long-term Investments [Member] | ||
Assets: | ||
Total assets | 496 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Assets: | ||
Total assets | 12,480 | 7,155 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Money Market Funds [Member] | ||
Assets: | ||
Total assets | 12,480 | 7,155 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Assets: | ||
Total assets | 3,000 | 8,146 |
Significant Other Observable Inputs (Level 2) [Member] | Short-Term Investments [Member] | ||
Assets: | ||
Total assets | $ 3,000 | 7,650 |
Significant Other Observable Inputs (Level 2) [Member] | Long-term Investments [Member] | ||
Assets: | ||
Total assets | $ 496 |
Cash, Cash Equivalents, and I_3
Cash, Cash Equivalents, and Investments - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018USD ($)Security | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($)Security | Sep. 30, 2017USD ($) | Dec. 31, 2017USD ($)Security | |
Cash And Cash Equivalents [Abstract] | |||||
Liquid investments with maturities | 3 months | ||||
Cumulative unrealized loss, net of taxes | $ 4,000 | $ 4,000 | $ 17,000 | ||
Realized gains or losses | $ 0 | $ 0 | $ 0 | $ 0 | |
Number of securities in unrealized loss position | Security | 6 | 6 | 15 | ||
Unrealized loss available for sale securities, less than twenty months | $ 5,000 | $ 5,000 | $ 27,000 | ||
Unrealized loss available for sale securities fair value, less than twenty months | $ 3,000,000 | $ 3,000,000 | $ 8,100,000 | ||
Maximum duration of security | 25 months | ||||
Municipal bonds maturity Start - date | Nov. 30, 2018 | ||||
Municipal bonds maturity End - date | Jan. 31, 2019 |
Cash, Cash Equivalents, and I_4
Cash, Cash Equivalents, and Investments - Cash and Cash Equivalents (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Cash And Cash Equivalents [Abstract] | ||
Cash | $ 16,967 | $ 18,811 |
Money market funds | 12,480 | 7,155 |
Total cash and cash equivalents | $ 29,447 | $ 25,966 |
Cash, Cash Equivalents, and I_5
Cash, Cash Equivalents, and Investments - Short-term and Long-term Investments (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 3,005 | $ 8,173 |
Gross Unrealized Losses | (5) | (27) |
Estimated Fair Value | 3,000 | 8,146 |
U.S. Treasury Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 1,000 | 1,499 |
Gross Unrealized Losses | (2) | (6) |
Estimated Fair Value | 998 | 1,493 |
US Government Agencies Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 500 | 1,003 |
Gross Unrealized Losses | (4) | |
Estimated Fair Value | 500 | 999 |
Municipal Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 1,005 | 4,169 |
Gross Unrealized Losses | (2) | (14) |
Estimated Fair Value | 1,003 | 4,155 |
Corporate Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 500 | 1,502 |
Gross Unrealized Losses | (1) | (3) |
Estimated Fair Value | $ 499 | $ 1,499 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Summary of Intangible Assets (Detail) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 11,631 | $ 11,284 |
Accumulated Amortization | (10,739) | (10,778) |
Total intangible assets | $ 892 | $ 506 |
Customer, Affiliate and Advertiser Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated useful lives | 17 years | 5 years |
Gross Carrying Amount | $ 7,128 | $ 6,938 |
Accumulated Amortization | (6,880) | $ (6,938) |
Total intangible assets | $ 248 | |
Developed Websites, Technology and Patents [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated useful lives | 10 years | 10 years |
Gross Carrying Amount | $ 1,519 | $ 1,342 |
Accumulated Amortization | (945) | (907) |
Total intangible assets | $ 574 | $ 435 |
Trademarks, Trade Name and Domain Name [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated useful lives | 8 years | 8 years |
Gross Carrying Amount | $ 1,794 | $ 1,802 |
Accumulated Amortization | (1,733) | (1,731) |
Total intangible assets | $ 61 | $ 71 |
Proprietary User Information Database and Internet Traffic [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated useful lives | 5 years | 5 years |
Gross Carrying Amount | $ 1,180 | $ 1,202 |
Accumulated Amortization | $ (1,180) | $ (1,202) |
Non-compete Agreements [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated useful lives | 2 years | |
Gross Carrying Amount | $ 10 | |
Accumulated Amortization | (1) | |
Total intangible assets | $ 9 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) | Aug. 01, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 |
Goodwill And Intangible Assets [Line Items] | ||||
Remaining amortization period | 5 years 2 months 8 days | |||
Amortization of intangible assets | $ 100,000 | $ 100,000 | ||
Write off of intangible assets | 0 | |||
Intangible assets other than goodwill with indefinite lives | $ 0 | $ 0 | ||
Oceanos Marketing, Inc [Member] | ||||
Goodwill And Intangible Assets [Line Items] | ||||
Total consideration | $ 600,000 | |||
Minimum [Member] | ||||
Goodwill And Intangible Assets [Line Items] | ||||
Estimated useful lives | 2 years | |||
Maximum [Member] | ||||
Goodwill And Intangible Assets [Line Items] | ||||
Estimated useful lives | 17 years |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Schedule of Amortization Expense of Intangible Assets (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
2018 (October 1 – December 31) | $ 38 | |
2,019 | 135 | |
2,020 | 114 | |
2,021 | 130 | |
2,022 | 160 | |
Thereafter | 315 | |
Total intangible assets | $ 892 | $ 506 |
Net Income Per Common Share - R
Net Income Per Common Share - Reconciliation of Numerator and Denominator Used in Calculation of Basic and Diluted Net Income Per Common Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Numerator: | ||||
Net income | $ 3,769 | $ 2,074 | $ 10,283 | $ 3,406 |
Basic: | ||||
Weighted average shares of common stock and vested, undelivered restricted stock units outstanding | 27,827,296 | 27,554,586 | 27,627,083 | 27,521,244 |
Diluted: | ||||
Weighted average shares of common stock and vested, undelivered restricted stock units outstanding | 27,827,296 | 27,554,586 | 27,627,083 | 27,521,244 |
Effect of potentially dilutive shares | 936,730 | 765,799 | 1,083,798 | 754,043 |
Total weighted average shares of common stock and vested, undelivered restricted stock units outstanding and potentially dilutive shares | 28,764,026 | 28,320,385 | 28,710,881 | 28,275,287 |
Net Income Per Share: | ||||
Basic net income per share | $ 0.14 | $ 0.08 | $ 0.37 | $ 0.12 |
Diluted net income per share | $ 0.13 | $ 0.07 | $ 0.36 | $ 0.12 |
Net Income Per Common Share -_2
Net Income Per Common Share - Reconciliation of Numerator and Denominator Used in Calculation of Basic and Diluted Net Income Per Common Share (Parenthetical) (Detail) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Earnings Per Share [Abstract] | ||||
Outstanding stock options and unvested restricted stock units excluded from computation of diluted EPS | 0.5 | 0.3 | 0.5 | 0.3 |
Term Loan Agreement - Additiona
Term Loan Agreement - Additional Information (Detail) - USD ($) $ in Thousands | May 09, 2016 | Sep. 30, 2018 | Sep. 30, 2017 |
Line Of Credit Facility [Line Items] | |||
Amortization of deferred issuance costs | $ 84 | $ 81 | |
Term loan principal payment | $ 7,500 | 3,750 | |
Senior Secured Credit Facilities Credit Agreement [Member] | |||
Line Of Credit Facility [Line Items] | |||
Credit agreement bearing interest rate | Annual rate of 1.50% | ||
Interest bearing rate | 1.50% | ||
Applicable interest rate on borrowings | 4.58% | ||
LIBOR margin | plus 2.50 | ||
Interest expense | $ 1,000 | 1,000 | |
Amortization of deferred issuance costs | 84 | $ 81 | |
Term loan principal payment | 7,500 | ||
Senior Secured Credit Facilities Credit Agreement [Member] | Federal Funds Effective Rate [Member] | |||
Line Of Credit Facility [Line Items] | |||
Applicable interest rate on borrowings | 0.50% | ||
Senior Secured Credit Facilities Credit Agreement [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||
Line Of Credit Facility [Line Items] | |||
Debt instrument basis spread on variable rate | 2.50% | ||
Senior Secured Credit Facilities Credit Agreement [Member] | Term Loan Agreement [Member] | |||
Line Of Credit Facility [Line Items] | |||
Date the company entered into a Credit Agreement | May 9, 2016 | ||
Aggregate principal amount of term loan borrowed | $ 50,000 | ||
Debt instrument term loan | 5 years | ||
Carrying amount of term loan | $ 24,800 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |||
Total rent expense under the Company's leases | $ 3,000,000 | $ 3,400,000 | |
Charges, claims related to litigation | $ 0 | $ 0 |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Future Minimum Lease Payments (Detail) $ in Thousands | Sep. 30, 2018USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
2018 (October 1 – December 31) | $ 1,081 |
2,019 | 4,194 |
2,020 | 3,637 |
2,021 | 3,730 |
2,022 | 3,397 |
Thereafter | 24,664 |
Future minimum lease payments, Total | $ 40,703 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Jun. 16, 2017 | Apr. 30, 2007 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||||||
Common stock outstanding under the plan | 196,000 | 196,000 | 344,090 | ||||
Expected dividend yield | 0.00% | ||||||
Intrinsic value of options exercised | $ 2,627 | $ 400 | |||||
Cash received from exercise of options | 956 | $ 561 | |||||
Employee service share-based compensation, nonvested units, compensation cost not yet recognized | $ 20,100 | $ 20,100 | |||||
Employee service share-based compensation, nonvested units, compensation cost not yet recognized, period for recognition | 2 years | ||||||
Restricted Stock Units [Member] | |||||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||||||
Stock options vested | 693,473 | 759,866 | 693,473 | ||||
Grant date fair value of stock options vested | $ 6,300 | $ 6,200 | |||||
Stock Option 2007 Plan [Member] | |||||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||||||
Issuance of common stock incentives | 2,911,667 | ||||||
Plan expiration period | 2017-05 | ||||||
Additional share authorized | 8,224,334 | ||||||
New awards granted | 0 | ||||||
Common stock outstanding under the plan | 523,500 | 523,500 | |||||
Stock Option 2017 Plan [Member] | |||||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||||||
Issuance of common stock incentives | 3,000,000 | ||||||
Common stock outstanding under the plan | 1,014,761 | 1,014,761 | |||||
Plan effective date | Jun. 16, 2017 | ||||||
Minimum [Member] | Stock Option 2007 Plan [Member] | |||||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||||||
Period of grants vested | 3 years | ||||||
Minimum [Member] | Stock Option 2017 Plan [Member] | |||||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||||||
Period of grants vested | 3 years | ||||||
Maximum [Member] | Stock Option 2007 Plan [Member] | |||||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||||||
Period of grants vested | 4 years | ||||||
Period of grants expired | 10 years | ||||||
Annual increase in reserved common stock | 2.00% | ||||||
Maximum [Member] | Stock Option 2017 Plan [Member] | |||||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||||||
Period of grants expired | 10 years |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock Option Activity under Company's Plans (Detail) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Options outstanding, beginning balance | 344,090 | |
Options Outstanding, Granted | 20,000 | |
Options Outstanding, Exercised | (168,090) | |
Options outstanding, ending balance | 196,000 | |
Options Outstanding, Options exercisable | 176,000 | |
Options Outstanding, Options vested or expected to vest | 194,108 | |
Weighted-Average Exercise Price Per Share, Options outstanding, beginning balance | $ 6.41 | |
Weighted-Average Exercise Price Per Share, Granted | 28.42 | |
Weighted-Average Exercise Price Per Share, Exercised | 5.69 | |
Weighted- Average Exercise Price Per Share, Options outstanding, ending balance | 9.27 | |
Weighted- Average Exercise Price Per Share, Options exercisable | 7.10 | |
Weighted-Average Exercise Price Per Share, Options vested or expected to vest | $ 9.09 | |
Weighted-Average Remaining Contractual Term in Years, Options outstanding | 4 years 4 months 6 days | |
Weighted-Average Remaining Contractual Term in Years, Options exercisable | 3 years 8 months 26 days | |
Weighted-Average Remaining Contractual Term in Years, Options vested or expected to vest | 4 years 3 months 14 days | |
Aggregate Intrinsic Value, Exercised | $ 2,627 | $ 400 |
Aggregate Intrinsic Value, Options outstanding | 2,169 | |
Aggregate Intrinsic Value, Options exercisable | 2,169 | |
Aggregate Intrinsic Value, Options vested or expected to vest | $ 2,169 |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Restricted Stock Unit Activity Under Company's Plans (Detail) - Restricted Stock [Member] - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares, Nonvested outstanding, beginning balance | 1,414,000 | ||
Shares, Granted | 527,734 | ||
Shares, Vested | (693,473) | (759,866) | (693,473) |
Shares, Forfeited | (6,000) | ||
Shares, Nonvested outstanding, ending balance | 1,242,261 | 1,242,261 | |
Weighted-Average Grant Date Fair Value Per Share, Nonvested outstanding, beginning balance | $ 9.37 | ||
Weighted-Average Grant Date Fair Value Per Share, Granted | 28.03 | ||
Weighted-Average Grant Date Fair Value Per Share, Vested | 9.15 | ||
Weighted-Average Grant Date Fair Value Per Share, Forfeited | 9.57 | ||
Weighted-Average Grant Date Fair Value Per Share, Nonvested outstanding, ending balance | $ 17.42 | $ 17.42 | |
Aggregate Intrinsic Value, Nonvested outstanding | $ 23,976 | $ 23,976 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Jun. 30, 2016 | |
2017 Plan [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Common stock reserved | 7,840,711 | ||
Stock Repurchase Program June 2016 [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Common stock repurchase authorized amount | $ 20,000,000 | ||
Common stock repurchased, shares | 211,729 | 543,328 | |
Common stock repurchase, amount | $ 4,000,000 | $ 5,200,000 | |
Stock repurchase program original expiration date | Jun. 30, 2017 | ||
Stock repurchase program expiration date | Aug. 31, 2018 | ||
Stock Repurchase Program November 2018 [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Common stock repurchase authorized amount | $ 25,000,000 | ||
Stock repurchase program, period in force | 2 years |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Income Taxes [Line Items] | |||
Effective income tax rate before discrete items | 27.40% | 44.70% | |
Income tax benefits recognized for discrete items | $ 2.2 | $ 0.8 | |
Corporate tax rate | 21.00% | 35.00% | |
ASU 2016-09 [Member] | |||
Income Taxes [Line Items] | |||
Income tax benefits recognized from excess deductions, net of shortfalls | $ 2.1 | $ 0.5 | |
Deferred tax assets for federal and state excess tax benefit, net operating losses | $ 0.2 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2018Segment | |
Segment Reporting [Abstract] | |
Number of operating segment | 1 |
Segment Information - Net Sales
Segment Information - Net Sales to Unaffiliated Customers by Geographic Area (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales, Total | $ 30,742 | $ 28,012 | $ 89,513 | $ 78,253 |
United States [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales, Total | 22,799 | 20,971 | 65,755 | 56,955 |
United Kingdom [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales, Total | 3,571 | 2,922 | 10,824 | 8,563 |
Other International [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales, Total | $ 4,372 | $ 4,119 | $ 12,934 | $ 12,735 |
Segment Information - Long-Live
Segment Information - Long-Lived Assets by Geographic Area (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets, Total | $ 105,581 | $ 104,085 |
United States [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets, Total | 100,451 | 98,683 |
International [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets, Total | $ 5,130 | $ 5,402 |