Bolstered by a $100 million IPO last May, TechTarget has spent the past year bringing more online marketing opportunities to b2b advertisers.
The 10-year-old IT media company has moved aggressively on several fronts, bringing to 50 the number of technology-specific Web sites it owns. Last year it launched ITKnowledgeExchange.com, Search--Tele-com.com and SearchVMWare.com. More recent additions to TechTarget's vertical family include ConstructionSoftwareReview.com, SearchFinancial-Security.com, SearchStorage.co.UK and SearchSecurity.co.UK.
The latter two, which rolled out in March, are the first Web sites to be operated directly by TechTarget outside the U.S.
The international expansion is part of a three-pronged strategy to grow the business, said Greg Strakosch, CEO. The other two elements, he said, are building out "subsegment" Web sites, such as SearchVMWare.com, which complements TechTarget's other data center-related Web sites, and launching new sites such as SearchTelecom.com. "You need scale in today's online world," Strakosch said. "Broad content doesn't work in today's environment."
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In addition to creating ever-thinning slices of technology coverage online, TechTarget has also been in an acquisitive mode, fueled by the IPO.
Last June, it bought TechnologyGuide.com, a portfolio of Internet content sites that cover mobile technology products, and Ajaxian, a Web site and conference aimed at developers of Ajax applications. The year culminated with TechTarget's $58 million acquisition of KnowledgeStorm, wedding two of the biggest players in IT lead generation.
The acquisition allows TechTarget to scale its business significantly, with new audiences and new advertisers, Strakosch said. KnowledgeStorm brought about 400 new advertisers to TechTarget. Strakosch said that with KnowledgeStorm in tow, TechTarget will have $120 million in revenue this year.
Last year, TechTarget's revenue rose 20% to $94.7 million. Online revenue, which represented 67% of total revenue, increased 24% to $63.7 million. Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) increased 22% to $24.6 million.
"They've fallen from 50% growth rates earlier this decade and are now at around 25%, but every b2b publishing company wishes they had 25% growth," said Chuck Richard, VP-lead analyst of Outsell. "TechTarget was revolutionary in 2004, and now everybody has gotten used to it. But [the company] hasn't lost its ability to deliver."
To reflect its commitment to ROI, TechTarget last year changed its tagline to "The IT media ROI experts" from "The most targeted IT media."
"Advertisers are completely and absolutely focused on ROI," Strakosch said. "We embrace measurement."
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