10-Q

Te sec

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2018

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 1-33472

TECHTARGET, INC.

(Exact name of registrant as specified in its charter)

Delaware	04-3483216
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
275 Grove Street Newton, Massachusetts	02466
(Address of principal executive offices)	(zip code)

Registrant’s telephone number, including area code: (617) 431-9200

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

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

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

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

Large accelerated filer	☐	Accelerated filer	☒
Non-accelerated filer	☐	Smaller reporting company	☐
Emerging growth company	☐

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

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

As of October 31, 2018, the registrant had 28,001,671 shares of common stock, $0.001 par value per share, outstanding.

TABLE OF CONTENTS

Item		Page
PART I.	FINANCIAL INFORMATION
Item 1.	Financial Statements (unaudited)	3
	Consolidated Balance Sheets as of September 30, 2018 and December 31, 2017	3
	Consolidated Statements of Income and Comprehensive Income for the Three and Nine Months Ended September 30, 2018 and 2017	4
	Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2018 and 2017	5
	Notes to Consolidated Financial Statements	6
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	19
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	31
Item 4.	Controls and Procedures	31
PART II.	OTHER INFORMATION
Item 1.	Legal Proceedings	32
Item 1A.	Risk Factors	32
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	32
Item 6.	Exhibits	33
	Signatures	34

2

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

TECHTARGET, INC.

Consolidated Balance Sheets

(in thousands, except share and per share data)

	September 30, 2018			December 31, 2017
	(Unaudited)
Assets
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
Liabilities and Stockholders’ Equity
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

See accompanying Notes to Consolidated Financial Statements.

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TechTarget, Inc.

Consolidated Statements of Income and Comprehensive Income

(in thousands, except per share data)

	For the Three Months Ended						For the Nine Months Ended
	September 30,						September 30,
	2018			2017			2018			2017
	(Unaudited)						(Unaudited)
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

See accompanying Notes to Consolidated Financial Statements.

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TechTarget, Inc.

Consolidated Statements of Cash Flows

(in thousands)

	Nine Months Ended
	September 30,
	2018			2017
	(Unaudited)
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		$	—

See accompanying Notes to Consolidated Financial Statements.

5

TECHTARGET, INC.

Notes to Consolidated Financial Statements

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

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.

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.

6

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 “GAAP”) in the United States (“U.S.”) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the U.S. for complete financial statements. All adjustments, which, in the opinion of management, are considered necessary for a fair presentation of the results of operations for the periods shown, are of a normal, recurring nature and have been reflected in the consolidated financial statements. The results of operations for the periods presented are not necessarily indicative of results to be expected for any other interim periods or for the full year. The information included in these consolidated financial statements should be read in conjunction with “Management’s Discussion and Analysis of Financial Condition and Results of Operations” contained in this report and the consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017.

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 was 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) identifying the contract, or contracts, with a customer, b) identifying the performance obligations in the contract, c) determining the transaction price, d) allocating the transaction price to the performance obligations in the contract, and e) recognizing revenue when, or as, performance obligations are satisfied.

7

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. The Company is currently evaluating the impact that this guidance will have on its consolidated financial statements and disclosures, [including changes, if any, to processes and internal controls.]

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.

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 and Core categories.

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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, TargetROI^TM, Qualified Sales Opportunities^TM, Deal Data^TM, and Research^TM. Revenue from Priority Engine allows customers access to purchase intent data through the life of the contract and is recognized ratably over the contract period. Target ROI contains Priority Engine as well as other duration based demand solutions, which are discussed below, and revenue from Target ROI is recognized ratably over the contract period using the same time-based measure of progress for each of the distinct performance obligations included within TargetROI. Revenue from Qualified Sales Opportunities, Deal Data and Researchis recognized at the point in time when control is transferred to the customer, which occurs when the related reports are provided to the customer.

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.Revenue from custom content creation is recognized over the expected period of performance using a single measure of progress, typically based on hours incurred.

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. As discussed above, certain demand generation solutions have different revenue recognition patterns. The Company evaluated the relevant contract terms associated with the individual solutions to determine the appropriate revenue recognition pattern.

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.

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	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.

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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.

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. 

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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 during the nine months ended September 30, 2018 or 2017.

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 debt securities in an unrealized loss position at September 30, 2018. All of these securities have been in such a position for no more than 25 months. The unrealized loss on those securities was approximately $5 and the fair value was $3.0 million. At December 31, 2017, the Company had 15 debt securities in an unrealized loss position, and the unrealized loss on those securities was approximately $27, and the fair value was $8.1 million at that date. The Company uses specific identification when reviewing these investments for impairment. Because the Company does not intend to sell the investments that are in an unrealized loss position and it is not likely that the Company will be required to sell any investments before recovery of their cost basis, the Company does not consider those investments with an unrealized loss to be other-than-temporarily impaired at September 30, 2018.

The Company’s investments have contractual maturity dates that range from November 2018 to January 2019. All income generated from these investments is recorded as interest income.

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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 years. Amortization expense was $0.1 million for each of the nine months ended September 30, 2018 and 2017. Amortization expense is recorded within operating expenses as the intangible assets consist of customer-related assets which generate website traffic that the Company considers to be in support of selling and marketing activities. The Company did not write off any fully amortized intangible assets in the first nine months of 2018.

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. Thechange in the gross carrying amount of intangible assets during the nine months ended September 30, 2018 was due mainly to the Oceanos acquisition mentioned above, offset in part by foreign currency translation losses.

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.

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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 shares related to outstanding stock options and unvested, undelivered restricted stock units were excluded for each of the three and nine months ended September 30, 2018, and 0.3 million shares related to outstanding stock options and unvested, undelivered restricted stock units were excluded for each of the three and nine months ended September 30, 2017 because including them would have been anti-dilutive.

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.

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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:	MinimumLease 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.

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, the 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. There are 523,500 shares of common stock that remain subject to outstanding stock grants under the 2007 Plan as of September 30, 2018.

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,

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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.

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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 years.

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.

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 effective income tax rate is based upon the Company’s estimations of annual pre-tax income, the geographic mix of pre-tax income, and its interpretations of tax laws. The Company updates the estimate of its annual effective tax rate at the end of each quarterly period. The Company’s practice is to recognize interest and/or penalties related to income tax matters in income tax expense.

In 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

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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. The Company recognized $2.1 million and $0.5 million of income tax benefits from excess deductions net of shortfalls during the nine months ended September 30, 2018 and 2017, respectively. 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.

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.No single country outside of the U.S. accounted for 10% or more of the Company’s long-lived assets during either of these periods.

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

The following discussion and analysis of our financial condition andresults of operations should be read in conjunction with the consolidatedfinancial statements and accompanying notes included elsewhere in this QuarterlyReport on Form 10-Q. This discussion and analysis contains forward-lookingstatements that involve risks, uncertainties and assumptions. Our actualresults could differ materially from those anticipated in these forward-lookingstatements as a result of various factors including those discussed below in this Quarterly Report on Form 10-Q, in our Annual Report on Form 10-K for the year ended December 31, 2017 under Part I, Item 1A, “Risk Factors,” and in the other documents we file with the Securities and Exchange Commission. Please refer to our “Forward-Looking Statements” section on page 30.

Overview

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

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

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

We had approximately 19.8 million and 18.9 million registered members – our “audiences” – as of September 30, 2018 and 2017, respectively. While the size of our registered member base does not provide direct insight into our customer numbers or our revenues, the value of our services sold to our customers is a direct result of the breadth and reach of this content footprint. This footprint creates the opportunity for our customers to gain business leverage by targeting our audiences through customized marketing programs. Likewise, the behavior exhibited by these audiences enables us to provide our customers with data products to improve their marketing and sales efforts. The targeted nature of our member base enables IT vendors to reach a specialized audience efficiently because our content is highly segmented and aligned with the IT vendors’ specific products. With it, we have developed a broad customer base and, in 2018 expect to deliver marketing and sales services programs to approximately 1,300 customers.

Executive Summary

Our revenues for the nine months ended September 30, 2018 increased by $11.2 million, or 14%, to $89.5 million, compared with the same period in 2017, driven by both higher IT Deal Alert^TM revenues and higher revenues from our Core offerings. IT Deal Alert revenues were up 23% in the first nine months of 2018, compared to the first nine months of 2017, and quarterly IT Deal Alert revenues topped $10.0 million for the sixth consecutive quarter. Revenues from our Priority Engine^TM product, which is a component of our IT Deal Alert offering, increased more than 60% in the first nine months of 2018, compared to the first nine months of 2017.

We continue to have success selling longer-term deals of approximately twelve months and, in the third quarter of 2018, 35% of our revenue was derived from longer-term contracts, compared to 23% in the third quarter of 2017. The amount of revenue that we derived from longer-term contracts in the third quarter of 2018 increased 67%, compared to the amount that we recognized in the third quarter of 2017.

We continue to benefit from our customers’ increasing demand for purchase intent data to fuel their sales and marketing outreach. Another important factor in our revenue trajectory relates to the evolving way our customers use our purchase intent data relative to our Core offerings. Our IT Deal Alert offerings help customers identify “in-market” prospects for their products and services – our Core offerings help them reach, influence, and activate these prospects. A growing number of customers purchase “always on” programs from us that combine these offerings to identify and influence active buyers throughout the year. The growth in

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our longer-term revenue component is evidence of our continued traction for these types of integrated programs. Customers also use our Core and IT Deal Alert offerings in varying combinations to support quarterly sales and marketing campaigns. These purchases are more fluid – customers of this type may focus more on IT Deal Alert offerings in a particular campaign, and shift a subsequent program to accomplish outreach objectives like branding or lead generation. This creates a dynamic in which revenue may shift back and forth between the product categories. We think this will make the distinction between Core and IT Deal Alert less useful over time.

Our international geo-targeted revenues, where our target audience is outside North America (“International”), increased 14% for the first nine months of 2018, compared with the prior year period, primarily driven by international IT Deal Alert growth.

Gross profit percentage was 76% and 75% for the three months ended September 30, 2018 and 2017, respectively. Gross profit increased by $2.2 million, mainly due to the increase in revenues as compared to the same period a year ago.

Business Trends

The following discussion highlights key trends affecting our business.

• Macro-economic Conditions and Industry Trends. Because most of our customers are IT vendors, the success of our business is intrinsically linked to the health, and subject to the market conditions, of the IT industry. We have benefitted from the tapering of some of the headwinds that temporarily disrupted marketing budgets such as the strong dollar and acquisition and divestiture activity among some of our largest customers. We feel that the investments we have made over the last several years have paid off in increased market share and that we will benefit significantly when marketing budgets start to grow again and there are new incremental budget dollars that we can compete for.

• Brexit. The announcement of the results of the United Kingdom’s referendum in which voters approved an exit of the United Kingdom from the European Union, commonly referred to as “Brexit,” has resulted in significant general economic uncertainty as well as volatility in global stock markets and currency exchange rate fluctuations. In March 2017, the United Kingdom’s government initiated the exit process under Article 50 of the Lisbon Treaty, commencing a period of up to two years for the United Kingdom and other European Union member states to negotiate the terms of the withdrawal. While both parties have reported constructive progress with respect to the negotiations to date, continued uncertainty remains regarding the terms of the United Kingdom’s new partnership with the European Union and its member states. The overall impact of Brexit may create further global economic uncertainty, which may cause a subset of our customers to more closely monitor their costs in the affected region. Our revenues generated from customers who have billing addresses within the United Kingdom were approximately 10% of our total revenues for each of the nine months ended September 30, 2018 and 2017.

• Customer Demographics. In the three months ended September 30, 2018, online revenues from our ten major global customers, which we believe have the most significant international exposure, increased approximately 12% compared to the same period a year ago. Online revenues from our mid-sized customers (our largest 100 customers, excluding the ten major global customers described above, who we believe generally have less exposure internationally) increased by approximately 8% compared to the same period a year ago. Online revenues attributable to our smaller customers, which tend to be venture capital-backed start-ups that primarily operate in North America, increased by approximately 12% over the prior year period.

Our key strategic initiatives include:

• Geographic. During the three months ended September 30, 2018, approximately 32% of our revenues were derived from International campaigns.

• Product. IT Deal Alert revenues were approximately $16.0 million in the three months ended September 30, 2018, up from approximately $13.4 million in the same period in 2017. This includes International IT Deal Alert revenues of $4.0 million, which is also included in International revenues as discussed above. In the third quarter of 2018, we had more than 650 active customers utilizing our IT Deal Alert products and services. We expect IT Deal Alert to continue to be a meaningful growth driver.

Our Core revenues were up 1% in the third quarter of 2018 compared to the third quarter of 2017.

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Sources of Revenues

Revenue changes for the three and nine month periods ended September 30, 2018, as compared to the same periods in 2017, are shown in the table below. See Note 3 to our consolidated financial statements for additional information on our revenues.

	Three Months Ended September 30,				Percent			Nine Months Ended September 30,				Percent
	2018		2017		Change			2018		2017		Change
	($ in thousands)							($ in thousands)
Revenues	$	30,742	$	28,012		10	%	$	89,513	$	78,253		14	%

We sell customized marketing programs to IT vendors targeting a specific audience within a particular IT or business sector or sub-sector. We maintain multiple points of contact with our customers to provide support throughout their organizations and their customers’ IT sales cycles. As a result, our customers often run multiple advertising programs with us in order to target their desired audience of IT and business professionals more effectively. There are multiple factors that can impact our customers’ marketing and advertising objectives and spending with us, including but not limited to, IT product launches, increases or decreases to their advertising budgets, the timing of key industry marketing events, responses to competitor activities and efforts to address specific marketing objectives such as creating brand awareness or generating sales leads. Our products and services are generally delivered under short-term contracts that run for the length of a given program, typically less than six months. In 2016, we began to enter into longer-term contracts with certain customers, and in the quarter ended September 30, 2018, approximately 35% of our revenues were from longer-term contracts of approximately twelve months. In the third quarter of 2018, IT Deal Alert products and services, contributed approximately 52% of revenues as compared with approximately 48% for the same period in 2017. For the nine months ended September 30, 2018, core products and services contributed approximately 51% of revenues as compared with 55% for the same period in 2017.

Historically, we offered an events product line, which was phased out in the first quarter of 2017 and which did not generate material revenues or cost of revenues for any of the periods presented.

Product and Service Offerings

We use our product and service offerings to provide IT vendors with numerous touch points to identify, reach and influence key IT decision makers. The following is a description of the products and services we offer, which may be provided separately or combined as part of an integrated marketing campaign.

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

• IT Deal Alert: Qualified Sales Opportunities™. Qualified Sales Opportunities is a product that profiles specific in-progress purchase projects, including information on scope and purchase considerations, in approximately 100 technology-specific segments.

• IT Deal Alert: Priority Engine. Priority Engine is a subscription service powered by our Activity Intelligence™ platform, which integrates with customer relationship management and marketing automation platforms from salesforce.com, Marketo, Eloqua, Pardot, and Integrate. The service delivers information that enables marketers and sales personnel to identify and understand accounts and individuals actively researching new technology purchases and then to engage those active prospects within the organizations that are relevant to the purchase. We sell this service in approximately 200 technology-specific segments which our customers use for demand generation, account-based marketing and other marketing and sales activities.

• IT Deal Alert: Deal Data™. Deal Data is a customized solution aimed at sales intelligence and data scientist functions within our customer organizations. It renders our Activity Intelligence data directly consumable by the customer's internal applications.

• IT Deal Alert: TechTarget Research™. TechTarget Research is a subscription product that sources proprietary information about purchase transactions from IT and business professionals who are making or have recently completed these purchases. The offering provides data on market trends, pricing dynamics and vendor win/loss and displacement trends. Effective during the third quarter of 2018, the Company will no longer actively market its research product. The Company does not expect a material impact on its operating results as a result.

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

Demand Solutions. Our suite of demand solutions offerings allows IT vendors to maximize return on investment by capturing sales leads from the distribution and promotion of content to our audience of IT and business professionals. Our demand solutions campaigns typically offer the Activity Intelligence Dashboard, a tool that gives our customers’ marketers and sales representatives a near real-time view of their prospects including insights on the research activities of technology buying teams at the individual, team and account levels.

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

• White Papers. White papers are technical documents created by IT vendors to describe business or technical problems which are addressed by the vendors’ products or services. In a program that includes demand solutions, we post white papers on our relevant websites and our members receive targeted promotions about these content assets. Prior to viewing white papers, our registered members and visitors supply their corporate contact information and agree to receive further information from the vendor. The corporate contact and other qualification information for these leads are supplied to the vendor in real time through our proprietary lead management software.

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

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

Brand Solutions. Our suite of brand solutions offerings provides IT vendors exposure to targeted audiences of IT and business professionals actively researching information related to their products and services. We leverage our Activity Intelligence product framework to enable significant segmentation and targeting of specific audiences that can be accessed through these programs. Components of brand programs may include:

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

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

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

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

Cost of Revenues, Operating Expenses, and Other

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

Cost of Revenues. Cost of revenues consists primarily of: salaries and related personnel costs; member acquisition expenses (primarily keyword purchases from leading internet search sites); freelance writer expenses; website hosting costs; vendor expenses

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associated with the delivery of webcast, podcast, videocast and similar content, and other offerings; stock-based compensation expenses; facility expenses, and other related overhead.

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

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

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

Depreciation and Amortization. Depreciation expense consists of the depreciation of our property and equipment and other capitalized assets. Depreciation is calculated using the straight-line method over their estimated useful lives, ranging from three to twelve years. Amortization of intangible assets expense consists of the amortization of intangible assets recorded in connection with our acquisitions. Separable intangible assets that are not deemed to have an indefinite life are amortized over their estimated useful lives, which range from two to 17 years, using methods that are expected to reflect the estimated pattern of economic use.

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

Application of Critical Accounting Policies and Use of Estimates

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

Our critical accounting policies are those that affect our more significant judgments used in the preparation of our consolidated financial statements. A description of our critical accounting policies and estimates is contained in our Annual Report on Form 10-K for the fiscal year ended December 31, 2017. Other than those noted in Note 2 to our consolidated financial statements, there were no material changes to our critical accounting policies and estimates during the first nine months of 2018.

Income Taxes

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

Our deferred tax assets are comprised primarily of book to tax differences on stock-based compensation and timing of deductions for deferred rent, accrued expenses, depreciation, and amortization. As of September 30, 2018, we had foreign net operating loss (“NOL”) carryforwards of $0.7 million, which may be used to offset future taxable income in foreign jurisdictions until they expire at various dates through 2022. The deferred tax assets related to the foreign NOL carryforwards have been fully offset by a valuation allowance. 

On December 22, 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 of 1986, as amended. 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. We have calculated our best

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estimate of the impact of the Act in our quarter end income tax provision in accordance with our understanding of the Act and guidance available as of the date of this filing and, as a result, have recorded $14 thousand as additional income tax benefit in the first nine months of 2018.

Results of Operations

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

	Three Months Ended September 30,										Nine Months Ended September 30,
	2018					2017					2018					2017
	($ in thousands)										($ in thousands)
Revenues	$	30,742		100	%	$	28,012		100	%	$	89,513		100	%	$	78,253		100	%
Cost of revenues		7,445		24	%		6,951		25	%		21,294		24	%		20,972		27	%
Gross profit		23,297		76	%		21,061		75	%		68,219		76	%		57,281		73	%
Operating expenses:
Selling and marketing		12,479		41	%		11,568		41	%		35,254		39	%		33,006		42	%
Product development		2,340		8	%		2,209		8	%		6,527		7	%		6,168		8	%
General and administrative		3,938		13	%		3,288		12	%		10,663		12	%		9,542		12	%
Depreciation and amortization		1,156		4	%		1,109		4	%		3,404		4	%		3,375		4	%
Total operating expenses		19,913		65	%		18,174		65	%		55,848		62	%		52,091		67	%
Operating income		3,384		11	%		2,887		10	%		12,371		14	%		5,190		7	%
Interest and other expense, net		(362	)	(1	)%		(190	)	(1	)%		(1,206	)	(1	)%		(447	)	(1	)%
Income before (benefit from) provision for income taxes		3,022		10	%		2,697		10	%		11,165		12	%		4,743		6	%
(Benefit from) provision for income taxes		(747	)	(2	)%		623		2	%		882		1	%		1,337		2	%
Net income	$	3,769		12	%	$	2,074		7	%	$	10,283		11	%	$	3,406		4	%

Comparison of Three Months Ended September 30, 2018 and 2017

Revenues

	Three months ended September 30,
	2018		2017		Increase (Decrease)		Percent Change
	($ in thousands)
Revenues	$	30,742	$	28,012	$	2,730	10%

Revenues. The increase in revenues is attributable to sales increases from both our IT Deal Alert and Core product offerings.

Cost of Revenues and Gross Profit

	Three Months Ended September 30,
	2018			2017			Increase (Decrease)		Percent Change
	($ in thousands)
Cost of revenues	$	7,445		$	6,951		$	494		7	%
Gross profit	$	23,297		$	21,061		$	2,236		11	%
Gross profit percentage		76	%		75	%

Cost of Revenues. Cost of revenues increased for the three months ended September 30, 2018, as compared to the three months ended September 30, 2017, primarily due to increases in efforts needed to support the projected revenue growth.

Gross Profit. Our gross profit is equal to the difference between our revenues and our cost of revenues for the period. Gross profit percentage was 76% for the third quarter of 2018 and 75% for the third quarter of 2017. Gross profit increased by $2.2 million in the third quarter of 2018, as compared to the same period in 2017, primarily attributable to the increase in revenues as compared to the same period a year ago. Because the majority of our costs are labor-related, we expect our gross profit to fluctuate from period to period depending on the total revenues for the period.

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Operating Expenses and Other

	Three Months Ended September 30,
	2018			2017			Increase (Decrease)			Percent Change
	($ in thousands)
Operating expenses:
Selling and marketing	$	12,479		$	11,568		$	911			8	%
Product development		2,340			2,209			131			6
General and administrative		3,938			3,288			650			20
Depreciation and amortization		1,156			1,109			47			4
Total operating expenses	$	19,913		$	18,174		$	1,739			10	%
Interest and other expense, net	$	(362	)	$	(190	)	$	(172	)		91	%
(Benefit from) provision for income taxes	$	(747	)	$	623		$	(1,370	)		(220	)%

Selling and Marketing. Selling and marketing expenses increased for the three months ended September 30, 2018, as compared to the same period in September 30, 2017, primarily due to increases in stock-based compensation expenses as result of increases in stock price.

Product Development. Product development expense increased for the three months ended September 30, 2018, as compared to the same period in 2017, primarily due to increases in stock-based compensation expenses as result of increases in stock price.

General and Administrative. General and administrative expense increased for the three months ended September 30, 2018, compared to the same period in 2017, primarily due to an increase in stock-based compensation expenses as result of increases in stock price This accounted for approximately 90% of the overall increase.

Depreciation and Amortization. Depreciation and amortization expense remained relatively flat for the three months ended September 30, 2018 when compared to the same period in 2017.

Interest and Other Expense, Net. Interest and other expense, net increased for the three months ended September 30, 2018, compared with the same period in 2017, primarily due to fluctuations in currency exchange rates.

Provision for Income Taxes. Our effective tax rate was (24.7)% and 23.1% for the three months ended September 30, 2018 and 2017, respectively. The effective tax rate differs from the statutory rate primarily due to permanent differences including non-deductible expenses, state income taxes, and foreign income taxes. These permanent differences may increase our tax expense on income or reduce our tax benefit on loss. The lower rate in the third quarter of 2018, as compared to same period in 2017, was primarily due to the impact of excess deductions from stock-based compensation in the third quarter of 2018 and to the reduction of the U.S. corporate tax rate from 35% to 21% as a result of the enactment of the Act. The significant benefit created for the three months ended September 30, 2018, was due to $6.2 million of excess deductions relating to stock compensation driven by the price increase in the Company’s stock.

Comparison of Nine Months Ended September 30, 2018 and 2017

Revenues

	Nine Months Ended September 30,
	2018		2017		Increase (Decrease)		Percent Change
	($ in thousands)
Revenues	$	89,513	$	78,253	$	11,260	14%

Revenues. The increase in revenues is primarily attributable to an increase of $8.2 million in revenues from our IT Deal Alert product offerings.

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Cost of Revenues and Gross Profit

	Nine Months Ended September 30,
	2018			2017			Increase (Decrease)		Percent Change
	($ in thousands)
Cost of revenues	$	21,294		$	20,972		$	322		2	%
Gross profit	$	68,219		$	57,281		$	10,938		19	%
Gross profit percentage		76	%		73	%

Cost of Revenues. Cost of revenues increased for the nine months ended September 30, 2018, as compared to the nine months ended September 30, 2017, primarily due to increases in efforts needed to support the projected revenue growth.

Gross Profit. Our gross profit is equal to the difference between our revenues and our cost of revenues for the period. Gross profit percentage was 76% for the first nine months of 2018 and 73% for the first nine months of 2017. Gross profit increased by $10.9 million in the nine months ended September 30, 2018 compared to the same period in 2017, primarily attributable to the increase in revenues as compared to the same period a year ago. Because the majority of our costs are labor-related, we expect our gross profit to fluctuate from period to period depending on the total revenues for the period.

Operating Expenses and Other

	Nine Months Ended September 30,
	2018			2017			Increase (Decrease)			Percent Change
	($ in thousands)
Operating expenses:
Selling and marketing	$	35,254		$	33,006		$	2,248			7	%
Product development		6,527			6,168			359			6
General and administrative		10,663			9,542			1,121			12
Depreciation and amortization		3,404			3,375			29			1
Total operating expenses	$	55,848		$	52,091		$	3,757			7	%
Interest and other expense, net	$	(1,206	)	$	(447	)	$	(759	)		170	%
Provision for income taxes	$	882		$	1,337		$	(455	)		(34	)%

Selling and Marketing. Selling and marketing expenses increased for the nine months ended September 30, 2018, as compared to the same period in 2017, primarily due to increases in stock-based compensation expenses as result of increases in stock price.

Product Development. Product development expense increased for the nine months ended September 30, 2018, compared with the same period in 2017, primarily due to a reduction in the amount of development costs that were capitalized year over year as some resources were dedicated to non-capitalized projects, and increases in stock-based compensation expenses as result of increases in stock price.

General and Administrative. General and administrative expense increased for the nine months ended September 30, 2018, compared with the same period in 2017, primarily due to an increase in stock-based compensation expenses as result of increases in stock price This accounted for approximately 60% of the overall increase.

Depreciation and Amortization. Depreciation and amortization expense remained relatively flat for the nine months ended September 30, 2018 when compared to the same period in 2017.

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Interest and Other Expense, Net. Interest and other expense, net increased for the nine months ended September 30, 2018, compared with the same period in 2017, primarily due to fluctuations in currency exchange rates.

Provision for Income Taxes. Our effective tax rate was 7.9% and 28.2% for the nine months ended September 30, 2018 and 2017, respectively. The effective tax rate differs from the statutory rate primarily due to permanent differences including non-deductible expense, state income taxes, and foreign income taxes. These permanent differences may increase our tax expense on income or reduce our tax benefit on loss. The lower rate in the nine months ended September 30, 2018, as compared to the same period in 2017 was primarily due to primarily due to the impact of excess deductions from stock-based compensation in the third quarter of 2018 and to the reduction of the U.S. corporate tax rate from 35% to 21% as a result of the enactment of the Act. The significant benefit created for the nine months ended September 30, 2018, was due to $8.4 million of excess deductions relating to stock compensation driven by the price increase in the Company’s stock.

Seasonality

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

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

Liquidity and Capital Resources

Resources

At September 30, 2018, our cash, cash equivalents, and investments totaled $32.4 million, a $1.7 million decrease from December 31, 2017, primarily driven by investment in property and equipment, the acquisition of Oceanos Marketing Inc. during August 2018, principal payments on our term loan, and the repurchase of shares under our Repurchase Plan, partially offset by cash generated from operations. We believe that our existing cash, cash equivalents, and investments and our cash flow from operating activities will be sufficient to meet our anticipated cash needs for at least the next twelve months. Our future working capital requirements will depend on many factors, including the operations of our existing business, our potential strategic expansion internationally, future acquisitions we might undertake, and the expansion into complementary businesses. To the extent that our cash and cash equivalents, investments and cash flow from operating activities are insufficient to fund our future activities, we may need to raise additional funds through bank credit arrangements or public or private equity or debt financings. We also may need to raise additional funds in the event we determine in the future to effect one or more additional acquisitions of businesses.

	September 30, 2018		December 31, 2017
	(in thousands)
Cash, cash equivalents and investments	$	32,447	$	34,112
Accounts receivable, net	$	27,621	$	29,601

Cash, Cash Equivalents, and Investments

Our cash, cash equivalents, and investments at September 30, 2018 were held for working capital purposes. Our investments were primarily in money market accounts and municipal bonds. We do not enter into investments for trading or speculative purposes.

Accounts Receivable, Net

Our accounts receivable balance fluctuates from period to period, which affects our cash flow from operating activities. The fluctuations vary depending on the timing with which we meet our performance obligations and on the timing of our cash collections, as well as on changes to our allowance for doubtful accounts. We use days sales outstanding (“DSO”) as a measurement of the quality and status of our receivables. We define DSO as net accounts receivable at quarter end divided by total revenues for the applicable period, multiplied by the number of days in the applicable period. DSO was 83 days at September 30, 2018 and 90 days at December 31, 2017.

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Cash Flows

	Nine Months Ended September 30,
	2018			2017
	(in thousands)
Net cash provided by operating activities	$	17,373		$	9,017
Net cash (used for) provided by investing activities	$	(240	)	$	4,039
Net cash used in financing activities	$	(13,581	)	$	(12,250	)

Operating Activities

Cash provided by operating activities primarily consists of net income adjusted for certain non-cash items including depreciation and amortization, the provision for bad debt, stock-based compensation, deferred income taxes, and the effect of changes in working capital and other activities. Cash provided by operating activities for the nine months ended September 30, 2018 was $17.4 million, compared to cash provided by operating activities of $9.0 million for the nine months ended September 30, 2017.

The increase in cash provided by operating activities was primarily a result of an increase in revenue, partially offset by changes in operating assets and liabilities of $(3.3) million compared to $(4.0) million in the first nine months of 2018 and 2017, respectively. Significant components of the changes in assets and liabilities in the first nine months of 2018 included a $2.3 million decrease in contract liabilities and a $1.4 million decrease in income taxes payable.

Investing Activities

Cash used for investing activities in the nine months ended September 30, 2018 was $0.2 million and was primarily a result of the proceeds from sales and maturities of investments, mostly offset by the acquisition of Oceanos Marketing, Inc. in August 2018, and the purchase of property and equipment, primarily for leasehold improvements and internal-use software and website development costs and, to a lesser extent, computer equipment and related software. Cash provided by investing activities in the nine months ended September 30, 2017 was $4.0 million and was primarily a result of proceeds from sales and maturities of investments, partially offset by the purchase of property and equipment, which was made up primarily of internal-use software and website development costs, computer equipment, and related software. We capitalized internal-use software and website development costs of $0.7 million and $0.6 million for the three months ended September 30, 2018 and 2017, respectively, and $2.2 million for each of the nine months ended September 30, 2018 and 2017.

Financing Activities

In the first nine months of 2018, we used $13.6 million for financing activities, consisting primarily of $7.5 million for the repayment of principal under the Term Loan, $4.0 million for the purchase of treasury shares and related costs and $3.0 million for tax withholdings related to net share settlements, partially offset by $1.0 million from the proceeds from the exercise of stock options. In the first nine months of 2017, we used $12.3 million for financing activities, consisting primarily of $3.8 million for the repayment of principal on the Term Loan, $5.2 million for the purchase of treasury shares and related costs, and $3.8 million for tax withholdings related to net share settlements, partially offset by a net $0.5 million received from other financing activities.

Common Stock Repurchase Program

In June 2016, we announced that our Board of Directors (our “Board”) had authorized a $20.0 million stock repurchase program (the “June 2016 Repurchase Program”), whereby we were authorized to repurchase our common stock from time to time on the open market or in privately negotiated transactions at prices and in the manner that may be determined by our Board.

On May 5, 2017, our Board reauthorized the common stock repurchase program to allow us to use the remaining balance of the unused authorization under the Repurchase Program after its original expiration in June 2017. The reauthorized program allows us to repurchase our common stock from time to time on the open market or in privately negotiated transactions at prices and in the manner that may be determined by our management. The reauthorized program has no time limit and may be suspended at any time. Additionally, we may establish, from time to time, 10b5-1 trading plans that will provide flexibility as we buy back our shares. As of September 30, 2018, we had no amounts remaining for purchases under the Repurchase Program. 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. During the three and nine months ended September 30, 2018, we repurchased 99,426 and 211,729 shares of common stock, respectively, for an aggregate purchase price of $2.3 million and $4.0 million, respectively, pursuant to the Repurchase Program. During the three and nine months ended September 30, 2017, we repurchased 300,114 and 543,328 shares of

28

common stock, respectively, for an aggregate purchase price of $3.1 million and $5.2 million, respectively, pursuant to the Repurchase Program.

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

Term Loan and Credit Facility Borrowings

On May 9, 2016, we entered into the Term Loan Agreement, under which we borrowed $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 our assets, including a pledge of the stock of certain of our wholly-owned subsidiaries.

On June 22, 2017, we entered into a First Amendment to Credit Agreement with Silicon Valley Bank as Administrative Agent and Lender and the other lenders party from time to time thereto (the “First Amendment”). The First Amendment amends the existing Term Loan Agreement by, among other things, modifying the consolidated leverage ratio covenant and the liquidity requirement related to capital stock repurchases. Upon effectiveness of the First Amendment, our total consolidated leverage ratio (calculated in accordance with the Term Loan Agreement) may not be greater than 2.50 to 1.00 until the quarter ending March 31, 2018, with stepdowns thereafter to a maximum ratio of 1.50 to 1.00 for quarters ending on or after March 31, 2020. In addition, the minimum liquidity requirement (calculated in accordance with the Term Loan Agreement) with respect to any capital stock repurchased using borrowings under the Term Loan Agreement was increased from $10.0 million to $15.0 million.

Borrowings under the Term Loan Agreement must be repaid quarterly in the following manner: 2.5% of the initial aggregate borrowings are due and payable each quarter for the first loan year and 5.0% of the initial aggregate borrowings are due and payable each quarter during each subsequent loan year. At maturity, all outstanding amounts under the Term Loan Agreement will be due and payable.

The Term Loan Agreement requires us to maintain compliance with certain covenants, including leverage and fixed charge coverage ratio covenants. At September 30, 2018, we were in compliance with all covenants under the Term Loan Agreement.

At our 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%. As of September 30, 2018, the applicable interest rate was 4.58%, representing LIBOR plus the applicable margin of 2.50%. Interest expense under the Term Loan Agreement was $0.3 million and $1.0 million for the three and nine months ended September 30, 2018, respectively, which includes non-cash interest expense related to the amortization of deferred issuance costs of $28 thousand and $84 thousand, respectively.

Borrowings under the Term Loan Agreement may be prepaid at our option without penalty and must be repaid upon the occurrence of certain events, including certain events of default.

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

Capital Expenditures

We have made capital expenditures primarily for computer equipment and related software needed to host our websites, internal-use software development costs, as well as for leasehold improvements and other general purposes to support our growth. Our capital expenditures totaled $4.5 million and $2.8 million for the nine month periods ended September 30, 2018 and 2017, respectively. A majority of our capital expenditures in the first nine months of 2018 were for leasehold improvements and internal-use software and website development costs and, to a lesser extent, computer equipment and related software. We capitalized internal-use software and website development costs of $2.2 million for each of the nine months ended September 30, 2018 and 2017. We are not currently party to any purchase contracts related to future capital expenditures.

Off-Balance Sheet Arrangements

We do not have any off-balance sheet arrangements.

29

Contractual Obligations

There were no material changes to our contractual obligations and commitments described under “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2017.

Forward-Looking Statements

Certain information included in this Quarterly Report on Form 10-Q may contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Exchange Act. All statements, other than statements of historical facts, included or referenced in this Quarterly Report on Form 10-Q that address activities, events or developments which we expect will or may occur in the future are forward-looking statements, including statements regarding the intent, belief or current expectations of the Company and members of our management team. The words “will,” “believe,” “intend,” “expect,” “anticipate,” “project,” “estimate,” “predict” and similar expressions are also intended to identify forward-looking statements. Such statements may include those regarding guidance on our future financial results and other projections or measures of our future performance; our expectations concerning market opportunities and our ability to capitalize on them; and the amount and timing of the benefits expected from acquisitions, new products or services and other potential sources of additional revenues. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties. These statements speak only as of the date of this Quarterly Report on Form 10-Q and are based on our current plans and expectations, and they involve risks and uncertainties that could cause actual future events or results to be different than those described in or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to, those relating to: market acceptance of our products and services, including continued increased sales of our IT Deal Alert offerings and continued increased international growth; relationships with customers, strategic partners and employees; difficulties in integrating acquired businesses; changes in economic or regulatory conditions or other trends affecting the internet, internet marketing and advertising and IT industries; and other matters included in our filings with the Securities and Exchange Commission, including those detailed under Part I, Item 1A, “Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2017. Actual results may differ materially from those contemplated by the forward-looking statements. We undertake no obligation to update our forward-looking statements to reflect future events or circumstances.

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Item 3. Quantitative and Qualitative Disclosures About Market Risk

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

Foreign Currency Exchange Risk

We currently have subsidiaries in the United Kingdom, Hong Kong, Australia, Singapore, Germany and France. Additionally, we have a wholly foreign-owned enterprise formed under the laws of the People's Republic of China (“PRC”), and a variable interest entity in Beijing, PRC. Approximately 26% of our revenues for the three months ended September 30, 2018 were derived from customers with billing addresses outside of the United States and our foreign exchange gains/losses were not significant. We currently believe our exposure to foreign currency exchange rate fluctuations, including any impact of the United Kingdom’s decision to withdraw from the European Union, (“Brexit”), is financially immaterial and therefore have not entered into foreign currency hedging transactions. We continue to review this issue and may consider hedging certain foreign exchange risks through the use of currency futures or options in the future. The volatility of exchange rates depends on many factors that we cannot forecast with reliable accuracy. Our continued international expansion increases our exposure to exchange rate fluctuations and as a result such fluctuations could have a significant impact on our future results of operations.

Interest Rate Risk

At September 30, 2018, we had cash, cash equivalents, and investments totaling $32.4 million. The investments were primarily in money market accounts and municipal bonds. The cash, cash equivalents, and investments were held for working capital purposes. We do not enter into investments for trading or speculative purposes. Due to the short-term nature of these investments, we believe that we do not have any material exposure to changes in the fair value of our investment portfolio as a result of changes in interest rates. Declines in interest rates, however, would reduce future investment income.

Our exposure to market risk also relates to interest expense on borrowings under the Term Loan Agreement. At our option, the borrowings under the Term Loan Agreement bear 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 for such day plus 0.50%, or the London Interbank Offered Rate (“LIBOR”) plus 2.50% (see Note 8 to the consolidated financial statements). At September 30, 2018, there was $25.0 million of aggregate principal amount outstanding under the Term Loan Agreement.

Item 4. Controls and Procedures

Disclosure Controls and Procedures

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

In connection with the preparation of the Quarterly Report on Form 10-Q for the period ended September 30, 2018, management, under the supervision of the Chief Executive Officer (Principal Executive Officer) and Chief Financial Officer (Principal Financial Officer), conducted an evaluation of disclosure controls and procedures as of September 30, 2018. Based on that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective at the reasonable assurance level.

Changes in Internal Control over Financial Reporting

There were no changes in our internal control over financial reporting, identified in connection with the evaluation of such internal control, that occurred during the third quarter of 2018 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II—OTHER INFORMATION

Item 1. Legal Proceedings

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

Item 1A. Risk Factors

Our business is subject to a number of risks, including those identified in Item 1A – “Risk Factors” of our 2017 Annual Report on Form 10-K, that could have a material effect on our business, results of operations, financial condition and/or liquidity and that could cause our operating results to vary significantly from period to period. As of September 30, 2018, there have been no material changes to the risk factors disclosed in our 2017 Annual Report on Form 10-K. We may disclose changes to any risk factors presented or disclose additional factors from time to time in our future filings with the Securities and Exchange Commission.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

(a) Sales of Unregistered Securities

None.

(b) Use of Proceeds from Registered Securities

None.

(c) Purchases of Equity Securities by the Issuer

Period	Total Number of Shares Purchased(1)		Average Price Paid Per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs(1)		ApproximateDollar Value of Shares that May Yet Be Purchased Under the Plans or Programs
July 1, 2018 – July 31, 2018		—	$	—		—	$	2,350,903
August 1, 2018 – August 31, 2018		99,426	$	23.63		99,426	$	—
September 1, 2018 – September 30, 2018		—	$	—		—	$	—
Total		99,426	$	—		99,426	$	—

(1) In June 2016, we announced that our Board of Directors had approved the Repurchase Program, which authorized us to purchase up to $20.0 million of shares of our common stock from time to time on the open market or in privately negotiated transactions. Our Board of Directors reauthorized the Repurchase Program in May 2017 for the remaining balance of the original authorized amount. 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.

32

Item 6. Exhibits

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

Exhibit No.	Description of Exhibit
10.1	Transition, Separation, and Release Agreement dated July 12, 2018 (filed as Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed on July 12, 2018 and incorporated herein by reference).
10.2	Form of Restricted Stock Unit Agreement under the 2017 Stock Option and Incentive Plan (filed as Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed on August 3, 2018 and incorporated herein by reference).
31.1	Certification of Michael Cotoia, Chief Executive Officer of TechTarget, Inc., pursuant to Rules 13a-14(a) and 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Certification of Daniel Noreck, Chief Financial Officer and Treasurer of TechTarget, Inc., pursuant to Rules 13a-14(a) and 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	Certifications of Michael Cotoia, Chief Executive Officer of TechTarget, Inc. and Daniel Noreck, Chief Financial Officer and Treasurer of TechTarget, Inc. pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS	XBRL Instance Document*
101.SCH	XBRL Taxonomy Extension Schema Document*
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document*
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document*
101.LAB	XBRL Taxonomy Extension Label Linkbase Document*
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document*

* Exhibit 101 to this report are the following documents formatted in XBRL (Extensible Business Reporting Language): (i) Consolidated Balance Sheets as of September 30, 2018 and December 31, 2017, (ii) Consolidated Statements of Income and Comprehensive Income for the nine months ended September 30, 2018 and September 30, 2017, (iii) Consolidated Statements of Cash Flows for the nine months ended September 30, 2018 and September 30, 2017 and (iv) Notes to Consolidated Financial Statements.

33

SIGNATURES

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

	TECHTARGET, INC.
	(Registrant)
Date: November 7, 2018	By:	/s/ MICHAEL COTOIA
		Michael Cotoia, Chief Executive Officer and Director (Principal Executive Officer)
Date: November 7, 2018	By:	/s/ DANIEL NORECK
		Daniel Noreck, Chief Financial Officer and Treasurer (Principal Accounting and Financial Officer)

34

EX-31.1

Exhibit 31.1

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER PURSUANT TO

SECURITIES EXCHANGE ACT RULES 13a-14(a) AND 15d-14(a),

AS ADOPTED PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Michael Cotoia, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of TechTarget, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 7, 2018

/s/ Michael Cotoia

Michael Cotoia

Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER PURSUANT TO

SECURITIES EXCHANGE ACT RULES 13a-14(a) AND 15d-14(a),

AS ADOPTED PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Daniel Noreck, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of TechTarget, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 7, 2018

/s/ Daniel Noreck

Daniel Noreck

Chief Financial Officer and Treasurer

EX-32.1

Exhibit 32.1

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER AND

PRINCIPAL FINANCIAL OFFICER PURSUANT TO

18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

Each of Michael Cotoia and Daniel Noreck hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, in his/her capacity as Chief Executive Officer and Chief Financial Officer and Treasurer, respectively of TechTarget, Inc. (the Company), that, to his/her knowledge, the Quarterly Report of the Company on Form 10-Q for the period ended September 30, 2018 as filed with the Securities and Exchange Commission (the Report) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: November 7, 2018	By:	/s/ Michael Cotoia
		Michael Cotoia
		Chief Executive Officer
Date: November 7, 2018	By:	/s/ Daniel Noreck
		Daniel Noreck
		Chief Financial Officer and Treasurer

XML

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	2018
Document Fiscal Period Focus	Q3
Trading Symbol	TTGT
Entity Registrant Name	TechTarget Inc
Entity Central Index Key	0001293282
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

XML

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

XML

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

XML

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

XML

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

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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

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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.

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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 “GAAP”) in the United States (“U.S.”) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the U.S. for complete financial statements. All adjustments, which, in the opinion of management, are considered necessary for a fair presentation of the results of operations for the periods shown, are of a normal, recurring nature and have been reflected in the consolidated financial statements. The results of operations for the periods presented are not necessarily indicative of results to be expected for any other interim periods or for the full year. The information included in these consolidated financial statements should be read in conjunction with “Management’s Discussion and Analysis of Financial Condition and Results of Operations” contained in this report and the consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017.

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 was 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) identifying the contract, or contracts, with a customer, b) identifying the performance obligations in the contract, c) determining the transaction price, d) allocating the transaction price to the performance obligations in the contract, and e) recognizing revenue when, or as, performance obligations are satisfied.

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. The Company is currently evaluating the impact that this guidance will have on its consolidated financial statements and disclosures, [including changes, if any, to processes and internal controls.]

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.

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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 and Core categories.

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, TargetROI^TM, Qualified Sales Opportunities^TM, Deal Data^TM, and Research^TM. Revenue from Priority Engine allows customers access to purchase intent data through the life of the contract and is recognized ratably over the contract period. Target ROI contains Priority Engine as well as other duration based demand solutions, which are discussed below, and revenue from Target ROI is recognized ratably over the contract period using the same time-based measure of progress for each of the distinct performance obligations included within TargetROI. Revenue from Qualified Sales Opportunities, Deal Data and Researchis recognized at the point in time when control is transferred to the customer, which occurs when the related reports are provided to the customer.

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.Revenue from custom content creation is recognized over the expected period of performance using a single measure of progress, typically based on hours incurred.

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. As discussed above, certain demand generation solutions have different revenue recognition patterns. The Company evaluated the relevant contract terms associated with the individual solutions to determine the appropriate revenue recognition pattern.

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.

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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. 

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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 during the nine months ended September 30, 2018 or 2017.

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 debt securities in an unrealized loss position at September 30, 2018. All of these securities have been in such a position for no more than 25 months. The unrealized loss on those securities was approximately $5 and the fair value was $3.0 million. At December 31, 2017, the Company had 15 debt securities in an unrealized loss position, and the unrealized loss on those securities was approximately $27, and the fair value was $8.1 million at that date. The Company uses specific identification when reviewing these investments for impairment. Because the Company does not intend to sell the investments that are in an unrealized loss position and it is not likely that the Company will be required to sell any investments before recovery of their cost basis, the Company does not consider those investments with an unrealized loss to be other-than-temporarily impaired at September 30, 2018.

The Company’s investments have contractual maturity dates that range from November 2018 to January 2019. All income generated from these investments is recorded as interest income.

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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 years. Amortization expense was $0.1 million for each of the nine months ended September 30, 2018 and 2017. Amortization expense is recorded within operating expenses as the intangible assets consist of customer-related assets which generate website traffic that the Company considers to be in support of selling and marketing activities. The Company did not write off any fully amortized intangible assets in the first nine months of 2018.

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. Thechange in the gross carrying amount of intangible assets during the nine months ended September 30, 2018 was due mainly to the Oceanos acquisition mentioned above, offset in part by foreign currency translation losses.

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.

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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 shares related to outstanding stock options and unvested, undelivered restricted stock units were excluded for each of the three and nine months ended September 30, 2018, and 0.3 million shares related to outstanding stock options and unvested, undelivered restricted stock units were excluded for each of the three and nine months ended September 30, 2017 because including them would have been anti-dilutive.

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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.

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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:	MinimumLease 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.

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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, the 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. There are 523,500 shares of common stock that remain subject to outstanding stock grants under the 2007 Plan as of September 30, 2018.

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 years.

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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.

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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 effective income tax rate is based upon the Company’s estimations of annual pre-tax income, the geographic mix of pre-tax income, and its interpretations of tax laws. The Company updates the estimate of its annual effective tax rate at the end of each quarterly period. The Company’s practice is to recognize interest and/or penalties related to income tax matters in income tax expense.

In 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. The Company recognized $2.1 million and $0.5 million of income tax benefits from excess deductions net of shortfalls during the nine months ended September 30, 2018 and 2017, respectively. 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.

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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.No single country outside of the U.S. accounted for 10% or more of the Company’s long-lived assets during either of these periods.

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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 “GAAP”) in the United States (“U.S.”) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the U.S. for complete financial statements. All adjustments, which, in the opinion of management, are considered necessary for a fair presentation of the results of operations for the periods shown, are of a normal, recurring nature and have been reflected in the consolidated financial statements. The results of operations for the periods presented are not necessarily indicative of results to be expected for any other interim periods or for the full year. The information included in these consolidated financial statements should be read in conjunction with “Management’s Discussion and Analysis of Financial Condition and Results of Operations” contained in this report and the consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017.

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 was 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) identifying the contract, or contracts, with a customer, b) identifying the performance obligations in the contract, c) determining the transaction price, d) allocating the transaction price to the performance obligations in the contract, and e) recognizing revenue when, or as, performance obligations are satisfied.

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. The Company is currently evaluating the impact that this guidance will have on its consolidated financial statements and disclosures, [including changes, if any, to processes and internal controls.]

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.

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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

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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. 

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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

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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

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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 shares related to outstanding stock options and unvested, undelivered restricted stock units were excluded for each of the three and nine months ended September 30, 2018, and 0.3 million shares related to outstanding stock options and unvested, undelivered restricted stock units were excluded for each of the three and nine months ended September 30, 2017 because including them would have been anti-dilutive.

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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:	MinimumLease 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

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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

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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

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Organization and Operations - Additional Information (Detail)	9 Months Ended
	Sep. 30, 2018 Website
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Number of websites	140

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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%

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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

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Revenues - Schedule of Deferred Revenue Included in Contract Liabilities (Detail) $ in Thousands	9 Months Ended
	Sep. 30, 2018 USD ($)
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

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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

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Cash, Cash Equivalents, and Investments - Additional Information (Detail)	3 Months Ended		9 Months Ended
	Sep. 30, 2018 USD ($) Security	Sep. 30, 2017 USD ($)	Sep. 30, 2018 USD ($) Security	Sep. 30, 2017 USD ($)	Dec. 31, 2017 USD ($) 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

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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

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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

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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

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Goodwill and Intangible Assets - Additional Information (Detail) - USD ($)		9 Months Ended
	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

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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
2019	135
2020	114
2021	130
2022	160
Thereafter	315
Total intangible assets	$ 892	$ 506

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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

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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

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Term Loan Agreement - Additional Information (Detail) - USD ($) $ in Thousands		9 Months Ended
	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 09, 2016
Aggregate principal amount of term loan borrowed	$ 50,000
Debt instrument term loan	5 years
Carrying amount of term loan		$ 24,800

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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

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Commitments and Contingencies - Schedule of Future Minimum Lease Payments (Detail) $ in Thousands	Sep. 30, 2018 USD ($)
Commitments And Contingencies Disclosure [Abstract]
2018 (October 1 – December 31)	$ 1,081
2019	4,194
2020	3,637
2021	3,730
2022	3,397
Thereafter	24,664
Future minimum lease payments, Total	$ 40,703

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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

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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

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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

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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

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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

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Segment Information - Additional Information (Detail)	9 Months Ended
	Sep. 30, 2018 Segment
Segment Reporting [Abstract]
Number of operating segment	1

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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

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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