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TechTarget reduces revenue target

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Needham, Mass.—Tech media company TechTarget announced Thursday that it has reduced its revenue target for the rest of this year. The company now expects 2008 annual revenue to be within the range of $108 million to $112 million, down from earlier projections of $118 million to $122 million.

TechTarget expects adjusted EBITDA to be within the range of $25 million to $27 million, down from $33 million to $35 million.

The company also announced its preliminary financial results for the second quarter. Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization, as further adjusted for stock-based compensation) is expected to be down 1% to $7.5 million. Revenue is estimated to be up 20% to $29.4 million.

The company estimates that online revenue for the second quarter increased 28% to $20.8 million.

In a statement, Greg Strakosch, CEO of TechTarget, said: “Our business remains fundamentally solid as evidenced by our revenue growth, and our long-term thesis is unchanged. As advertisers continue to focus on ROI, we continue to see ad dollars shift from broad media to targeted media, offline media to online media, and nonmeasurable media to measurable media.

“We believe that we are the best-positioned media company in the IT market to benefit from these trends. We believe that we are continuing to gain market share. However, due to the macroeconomic weakness in the U.S. and its impact on advertising spending, we believe it is prudent to reduce our guidance to reflect the current market conditions.”

—Sean Callahan

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