Exhibit 99.1

August 8, 2023

Dear Fellow Shareholders:

For Q2 2023:

We are pleased that we hit our Q2 2023 forecast despite the macro weakness in the technology market during the quarter. While it is too early to say that we are seeing a recovery, we believe the environment feels like it is stabilizing. We are maintaining our previous 2023 guidance which reflects our expectation that the technology market will remain under pressure through the end of the year and our Q3 2023 guidance reflects the normally slower seasonality in the summer months that has historically impacted our results, especially in Europe and Asia.

Long time TechTarget shareholders know that we view slowdowns as an opportunity to use our position as a market leader and our strong balance sheet to aggressively reinvest and optimize our business in anticipation of the next upturn. Thinking back to Q2 2022, when we had record revenue (creating a high comparable for this year), it was all hands on deck to sell and deliver against that level of demand. In contrast, this Q2, we realize we are in an investment cycle and are focused on strengthening our foundation for our next level of growth.

There are several areas where we are investing and focusing. These include optimizing our organizational structure, increasing the size of our development team to support significant product improvements, and a big focus on AI both as a content area and a source of expertise for our audience as well as the implementation of AI-based solutions that can benefit our audience and customers.

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1 Non-GAAP measures. See “Non-GAAP Financial Measures” for definitions and reconciliations.

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We never lose sight of the fact that one of our biggest competitive advantage is that we have the largest audience of registered IT buyers, who trust our top-notch content to help them make big ticket technology purchases. This is critical because our audience opts in and gives us permission to share their contact information with relevant technology vendors. Since we own and operate all of our own sites, all of our purchase intent data is first party. The level of transparency and permission we provide to our customers is crucial to them as they automate their account-based marketing efforts in an environment where sensitivity to privacy issues is paramount and the growing level of privacy regulations, like the CCPA/CPRA and others, limit their outreach options. We have a significant competitive advantage against other solutions that rely on third party data and can provide data only at the account level and not the individual prospect level, like we do.

A big focus of ours is helping our customers maximize our data across their full marketing and sales ecosystem. We recently announced a significant feature release for Priority Engine that enhanced our Salesforce integration capabilities including the ability to understand how customers’ programs impact specific sales opportunities in our Opportunity Dashboard, and the ability to integrate customer Salesforce data into their Priority Engine experience through our new Salesforce Connector. Our recent release also provides at-a-glance visualization of accounts’ purchase research over time in our Account Journey feature along with general usability enhancements to streamline our customers’ use of the solution. These new features help our customers better marry their own first party and third party data with our individual prospect data to help them prioritize accounts and personalize outreach, and we are working with different ABM software platforms to improve integration of our data into their systems to help our joint customers see more success. The significant product and integration progress we have made this year is a direct result of our decision to increase our investment in Priority Engine related product development by 50% last year. We are planning on increasing the size of that team again as we head into 2024.

Our focus on producing top-quality, relevant content continues to pay dividends. Even though we lapped the 50% gains in organic search from Q2 2022, we grew organic search another 18% in Q2 2023. A good example of this is the content that we have been generating for our site SearchEnterpriseAI.com, a site we launched 5 years ago! We have over 800 AI-related articles that are rated #1 on Google organic search. Launching our AI website 5 years ago is a good example of how our large audience and sophisticated audience data analytics give us a roadmap of where the technology market is expected to go and allow us to get a big head start. We believe the AI end market could eventually be as important as the cloud revolution, which was the most recent technology megatrend to benefit TechTarget’s business.

Speaking of AI, this is an area of significant investment for us. Besides producing some of the best content on the web around Enterprise AI, we are working on several projects that we believe will benefit both our audience and customers. On the audience side, we are exploring the use of AI to enhance our recommendation engines and to offer personalized and prescriptive guidance. On the customer side, we continue to make progress on how we can effectively deploy AI to assist our customers in using our data to create customized emails and sales scripts quickly and in scale.

We are also using the slowdown to optimize our organization with an eye on streamlining operations, improving our go to market processes, and reducing expenses, where appropriate. We have fully integrated the Sales and Customer Success teams from the companies we acquired under experienced TechTarget managers, which has resulted in improved productivity and efficiency. We have streamlined systems and processes over this period, and aligned personnel to our highest prioritized initiatives to attack the larger market opportunity that we have.

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Balance Sheet and Liquidity

As of June 30, 2023, we had approximately $334.3 million in cash, cash equivalents and short-term investments.

As of June 30, 2023, we had approximately $465 million aggregate principal of convertible senior notes outstanding, which are convertible into shares of our common stock contingent upon the satisfaction of certain conditions contained within the applicable indenture governing the notes. Our 2025 convertible senior notes ($51 million aggregate principal amount outstanding as of June 30, 2023) bear interest at a rate of 0.125% per annum, have regular semi-annually interest payments (June and December) and mature in December 2025. Our 2026 convertible senior notes ($414 million aggregate principal amount outstanding as of June 30, 2023) do not bear interest and mature in December 2026. We also have $75 million in borrowing capacity under our revolving credit facility which also has a $5 million letter-of-credit sublimit and a maturity date of October 29, 2023.

Repurchase Plan

In November 2022, we announced the adoption of a re-purchase program (the “November 2022 Program”) that authorized the repurchase of up to $200 million of our outstanding common stock and convertible debt from time to time on the open market or in privately negotiated transactions with an expiration in November of 2024.

During the quarter ended June 30, 2023, we repurchased 737,369 shares of our common stock at an average price of $33.88 per share for a total expenditure of $25.0 million. All repurchases were made under the November 2022 Program approved by our board of directors. As of June 30, 2023, $135.1 million remained available under the November 2022 Repurchase Program.

Q3 2023 and full year 2023 Guidance

For Q3 2023, we expect revenue to be between $55.0 million and $57.0 million. We expect Q3 2023 net loss to be between $3.3 million and $2.6 million and Adjusted EBITDA1 to be between $16.2 million and $17.2 million.

Today we are reaffirming our full year 2023 forecast of revenue between $225 million and $230 million, net income (loss) to be between $(2.0) million and $1.1 million and Adjusted EBITDA1 to be between $65.0 million and $70.0 million.

Summary

Downturns are not fun, but they are a fact of life in the technology market. We have a proven track record of taking advantage of downturns to strengthen the business. We are optimistic that the things we are doing in 2023 will yield significant benefits in the future.

Sincerely,

© 2023 TechTarget, Inc. All rights reserved. TechTarget and the TechTarget logo are registered trademarks of TechTarget. All other trademarks are the property of their respective owners.

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1 Non-GAAP measures. See “Non-GAAP Financial Measures” for definitions and reconciliations.

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Conference Call and Webcast

TechTarget will discuss these financial results in a conference call at 5:00 p.m. (Eastern Time) today (August 8, 2023). Our Letter to Shareholders with supplemental financial information will be posted to the Investor Relations section of our website.

NOTE: Our Letter to Shareholders will not be read on the conference call. The conference call will include only brief remarks followed by questions and answers.

The public is invited to listen to a live webcast of TechTarget’s conference call, which can be accessed on the investor relations website at https://investor.techtarget.com. The conference call can also be heard via telephone by dialing:

For those investors unable to participate in the live conference call, a replay of the conference call will be available via telephone beginning August 8, 2023 one (1) hour after the conference call through August 31, 2023. To listen to the replay:

The webcast replay will also be available on https://investor.techtarget.com during the same period.

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Non-GAAP Financial Measures

This letter and the accompanying tables include a discussion of Adjusted Revenue, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Gross Profit, Adjusted Gross Margin, Adjusted Net Income, Adjusted Net Income Per Diluted Share and Free Cash Flow, all of which are non-GAAP financial measures which are provided as a complement to results provided in accordance with GAAP.

“Adjusted EBITDA” means earnings before net interest, other income and expense such as asset impairment (including expenses related to the induced conversion of our 2025 convertible notes), income taxes, depreciation and amortization, as further adjusted to include the impact of the fair value adjustments to contingent consideration and acquired unearned revenue and to exclude stock-based compensation and other one-time charges, such as costs related to acquisitions or reduction in forces expenses, if any.

“Adjusted EBITDA Margin” means Adjusted EBITDA divided by Adjusted Revenue.

“Adjusted Gross Margin” means Adjusted Gross Profit divided by Adjusted Revenue.

“Adjusted Gross Profit” means gross profit adding back the effects of stock compensation, depreciation and amortization, and the impact of fair value adjustments to acquired unearned revenue.

“Adjusted Net Income” means net income adjusted for amortization, stock-based compensation, foreign exchange, interest on our debt instruments (including expenses related to the induced conversion of our 2025 convertible notes), impact of the fair value adjustment to contingent consideration and acquired unearned revenue and one-time charges, if any, as further adjusted for the related income tax impact of the adjustments.

“Adjusted Net Income Per Diluted Share” means Adjusted Net Income divided by adjusted weighted average diluted shares outstanding. We adjust the average diluted shares outstanding to include shares on the if converted basis for our convertible note.

“Adjusted Revenue” means revenue recorded in accordance with GAAP plus the impact of fair value adjustments to acquired unearned revenue in accordance with ASC 805, Business Combinations.

“Free Cash Flow” means the change in net cash provided by operations less purchases of equipment and other capitalized assets.

“Longer-Term Contracts” means contracts in excess of 270 days.

“Longer-Term Revenue” means the amount of revenue subject to Longer-Term Contracts.

“Revenue from Our Legacy Global Customers” means GAAP revenue from this cohort of customers.

These non-GAAP measures should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, GAAP results. In addition, our definitions of Adjusted EBITDA, Free Cash Flow, Adjusted EBITDA margin, Adjusted Gross Margin, Adjusted Net Income, Adjusted Revenue and Adjusted Net Income Per Diluted Share, may not be comparable to the definitions as reported by other companies. We believe that these measures provide relevant and useful information to enable us and investors to compare our operating performance using an additional measurement. We use these measures in our internal management reporting and planning process as primary measures to evaluate the operating performance of our business, as well as potential acquisitions.

The components of Adjusted EBITDA include the key revenue and expense items for which our operating managers are responsible and upon which we evaluate their performance. In the case of senior management, Adjusted EBITDA, Adjusted Revenue growth and the percentage of revenue under Longer-Term Contracts are used as the principal financial metrics in their annual incentive compensation program. Adjusted EBITDA is also used for planning purposes and in presentations to our Board of Directors. Adjusted Net Income is useful to us and investors because it presents an additional measurement of our financial performance, taking into account depreciation, which we believe is an ongoing cost of doing business, but excluding the impact of certain non-cash expenses and items not directly tied to the core operations of our business, such as costs related to acquisitions and interest on our debt instruments. Free Cash Flow represents net cash provided by operating activities excluding purchases of property and equipment and other capitalized assets.

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Free Cash Flow provides useful information to management and investors about the amount of cash generated by the business after the purchases of property and equipment and other capitalized assets, which can then be used to, among other things, invest in the business and make strategic acquisitions. A limitation of the utility of Free Cash Flow as a measure of financial performance is that it does not represent the total increase or decrease in our cash balance for the period. We use revenue from our legacy global customers to monitor customer concentration trends within the Company, which we deem an important metric for evaluating revenue diversification. Furthermore, we intend to provide these non-GAAP financial measures as part of our future earnings discussions and, therefore, the inclusion of these non-GAAP financial measures will provide consistency in our financial reporting. A reconciliation of these non-GAAP measures to GAAP is provided in the accompanying tables, except that full reconciliations of certain forward-looking non-GAAP measures are not provided because the Company is unable to provide such reconciliations without unreasonable effort due to the uncertainty and inherent difficulty of predicting the occurrence and financial impact of certain items, including but not limited to, stock-based compensation and other one-time charges such as acquisitions.

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Cautionary Note Regarding Forward-Looking Statements

This shareholder letter contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 that involve substantial risks and uncertainties. All statements, other than statements of historical facts, included or referenced in this shareholder letter that address activities, events or developments which we expect will or may occur in the future are forward-looking statements, including statements regarding our intent, beliefs or current expectations and those of our management team. In some cases, you can identify forward-looking statements because they contain words such as "may," "will," "should," "expects," "plans," "anticipates,” “going to,” "could," "intends," "target," "projects," "contemplates," "believes," "estimates," "predicts," "potential," or "continue," or the negative of these words or other similar terms or expressions that concern our expectations, strategy, priorities, plans, or intentions. Such statements may include those regarding our future financial results and other projections or measures of our future operating performance, including the drivers of such growth, profitability, and performance (including, in each case, any potential impact of product and service development efforts, third-party privacy initiatives, GDPR and other similar laws, potential changes to customer relationships, and other operational decisions); expectations concerning market opportunities and our ability to capitalize on them; the amount and timing of the benefits expected from acquisitions, new strategies, products or services and other potential sources of additional revenue; and the behavior of our members, partners, and customers. These statements speak only as of the date of this shareholder letter and are based on our current plans and expectations. Such forward-looking statements are not guarantees of future performance and involve important 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; the impact of the COVID-19 pandemic, or future health pandemics and any related economic downturns, on our business, operations, and the markets in which we and our customers operate; difficulties in integrating acquired businesses; changes in economic or regulatory conditions or other trends affecting the internet, internet advertising and information technology industries; data privacy laws, rules, and regulations; the impact of foreign currency exchange rates; certain macroeconomic factors facing the global economy, including instability in the regional banking sector, disruptions in the capital markets, economic sanctions and economic slowdowns or recessions, rising inflation and interest rate fluctuations on our results and other matters included in our SEC filings, including in our Annual Report on Form 10-K for the year ended December 31, 2022 and our Quarterly Report on Form 10-Q for the quarter ended June 30, 2023. 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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TechTarget, Inc.

Consolidated Balance Sheet

(in 000’s, except per share data)

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TechTarget, Inc.

Consolidated Statements of Operations and Comprehensive Income

(in 000’s, except per share data)

(1) Amounts include stock-based compensation expense as follows:

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TechTarget, Inc.

Consolidated Statements of Cash Flows

(in 000’s, except per share data)

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TechTarget, Inc.

Reconciliation of Revenue to Adjusted Revenue

(in 000’s)

TechTarget, Inc.

Reconciliation of Gross Profit to Adjusted Gross Profit

(in 000’s)

TechTarget, Inc.

Reconciliation of Cash Provided by Operations to Free Cash Flow

(in 000’s)

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TechTarget, Inc.

Reconciliation of Net Income to Adjusted EBITDA and Net Income Margin to Adjusted EBITDA Margin

(in 000’s)

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TechTarget, Inc.

Reconciliation of Net Income to Adjusted Net Income and

Net Income per Diluted Share to Adjusted Net Income per Diluted Share

(in 000’s, except per share data)

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TechTarget, Inc.

Financial Guidance for the Three Months Ended September 30, 2023

(in 000’s)

(Unaudited)

TechTarget, Inc.

Financial Guidance for the Year Ended December 31, 2023

(in 000’s)

(Unaudited)

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