Informa TechTarget Reports Revenue Drop, Loss Amid Messy Combination

Informa TechTarget reported revenue down 6% in preliminary results for the first quarter with a massive net loss.

Revenue fell to $104 million from a combined $110 million a year earlier. The net loss is expected to range between $513 million and $545 million, compared to a combined loss of $32 million a year earlier. Adjusted EBITDA of $3 million compared to $13 million in the first quarter of 2024. Shares fell 9% in after-market trading.

The company’s results are preliminary as it continues to finalize its goodwill impairment assessment and the related income tax accounting for the first quarter. 

Guidance for the full year was unchanged with a target for “broadly flat year-on-year revenue” on a combined company basis. It expects to reach adjusted EBITDA over $85 million for the year.

“We have seen improving momentum in Q2, leaving revenues down approximately 5% over the first five months of the year, with a similar figure expected at the half year,” the company said in a statement. “We are targeting further sequential improvement through Q3 and Q4 to deliver a broadly flat outcome for the year, with momentum improving as our product initiatives and revitalized go-to-market approach gains further traction with customers.

Informa TechTarget anticipates recording a further non-cash goodwill impairment in the second quarter, reflecting the market uncertainty cited in previous commentary that persisted through the first half of the year and the technical accounting impact of iuts depressed market capitalization relative to book values. That adjustment will have no impact on operational performance or cash position. 

The focus in the first quarter was on combining teams, establishing reporting lines and confirming senior leadership:

• Leadership: Quick to appoint executive and senior leadership teams, combining the knowledge and experience of both company teams.
• Operating Model: The operating model is being updated post-combination, including:
  • Brand consolidation: Intelligence & advisory offerings (Canalys, ESG, Omdia and Wards) wrapped under the Omdia brand. 
  • Product positioning: Repositioned the NetLine syndicated audience offering to the volume-end of the demand generation market.
  • Go-to-Market Focus: Restructured go-to-market teams to better target major customer accounts, reflecting that half of the $20 billion addressable market is accounted for by just 200 companies; established sales and service teams to serve top accounts; doubled down on the cyberSecurity sector, which has huge opportunity for growth.
• Technology & Data: Prioritized operationalizing first party data exchange with Informa PLC.
• Cost synergies: Targeted duplication in administration costs, technology licenses, property and roles; target a minimum of $10 million operating synergies in 2025.

“We approached this at pace to provide certainty as quickly as possible which inevitably created some short-term disruption. However, it enabled the company to enter the second quarter with clarity on reporting lines and leadership, with a clear road map for further refining the product and go-to-market strategy.”

The next phase of the plan is to focus on consolidating the product portfolio, simplifying go-to-market offers and increasing the commercial focus on core growth opportunities, including key client accounts and the cyberSecurity sector. The company is betting on its scale to dominate the market. 

AI is also a significant opportunity, representing a growing customer market (educating, influencing and targeting buyers of AI-enabled products), a tool to drive efficiency across its operating platform and technology to power content generation strategy.

“AI is changing how audiences discover information, with a shift from traditional search to AI-enabled platforms. We are therefore strengthening our capabilities in Artificial Intelligence Engine Optimization (AIEO), alongside continuing investment in Search Engine Optimization (SEO).”