Full Year 2024 VCI Global Ltd Earnings Call
Zhi Feng Ang; Chief Financial Officer, Director; VCI Global Ltd
Operator
Good morning everyone and welcome to VCI Global fiscal-year 2024 earnings conference call. Joining me today to discuss our results are Victor Hoo, our group Executive Chairman and CEO; and Zhi Feng Ang, our CFO. Before we begin, I would like to take this opportunity to remind you that our remarks today may contain forward-looking statements, which are subject to future events and uncertainties. Statements that are not historical facts, including but not limited to statements about the company's beliefs and expectations are forward-looking statements. Forward-looking statements involve inherent risk and uncertainties, and our actual results may differ materially from these forward-looking statements. All forward-looking statements should be considered in conjunction with the cautionary statements in our earnings release and the risk factors including in our followings with SES. This presentation also includes certain non-gap financial measures which we believe can be helpful in evaluating our performance. However, those measures should not be considered substitutes for comparable GAAP measures. The accompanying conciliation information related to those non-gap and GAAP measures can be found in our earnings press release issued earlier today. Without further ado, I will now turn the call over to our group's executive Chairman and CEO, Mr. Victor Hoo.
Victor Hoo
Thank you. Good morning, everyone, and thank you for joining the call to discuss our 2024 performance. I'm pleased to report a strong year for VCI Global. We achieved a 41% increase in revenue, reaching $27.8 million and $0.4 million increase in net income, amounting to USD7.6 million compared to the previous fiscal year. This remarkable growth was driven by solid performance across all our business segments. Despite a challenging macroeconomic environment, I'm particularly proud of the strategic milestone we achieved. While the growth in net profit may appear modest, it reflects deliberate investment we make in building a stronger foundation, for example, expanding our team, hiring top talent, and enhancing our infrastructure. These investments are positioning us for isolated growth and sustainable growth in 2025. One of our standout achievements this year was the success of our technology division solution and consultancy segment. We introduced innovation in generative AI and AI powered digital human technology, which not only reinforced our vision to lead in the tech space, but also booster the rapid expansion of our cybersecurity as a service and AI as a service offerings under Val and and. Our advisory business also saw significant progress. The Capital Consulting Group Limited or VCCG, our dedicated Capital Markets advisory division, is preparing for a carveout IPO. This move reflects our confidence in the long-term potential of the capital market advisory space, even amid broader macroeconomic volatility. To further support our growth, we are expanding our regional footprint with new offices in Singapore, aimed at scaling our cybersecurity and capital market advisory services, and in Hong Kong to deepen our presence and client reach across Greater China. This strategic initiative reinforced our position as a regional leader in capital market consultancy. Building on the record setting year, our strong performance reflects both strategy execution across high growth sectors where we see sustained demand. In 2025, we will continue accelerating the development of our cross-sector platform strategy, seamlessly integrating AI infrastructure, CSAS, fintech Solutions, renewable energy assets, and capital market advisory. Now, I'll turn the call over to Mr. Ang to provide more details on our financial performance.
Zhi Feng Ang
Thank you, Victor, and thank you again to everyone for joining us today for VCIG's fiscal year 2024 earnings call. I'm Ang, CFO of VCIG, and I'm pleased to provide an overview of our financial performance. We are proud to have delivered exceptional results in fiscal year 2024. Our revenue rose by 41% compared to the previous year, driven by strong performance across all core verticals. These results validate our long term strategy and the unwavering dedications of our team. Let's take a closer look at our revenue breakdown. Revenue from business strategy consultancy increased by 1% from USD14.7 million in 2023 to USD14.8 million in fiscal year 2024, reflecting overall consistency in performance year over year. The company continued to execute high impact transactions, including the successful leasing of founder Group Limited FGL in short on October 23, 2024 and YY Group Holding Limited, YYGH in short on April 22, 2024. Several other clients are currently progressing through the IPO pipeline, further reinforcing BCI Glover, strong positioning and growing credibility within the US capital market ecosystem. Meanwhile, our technology development solutions and consultancy. Saw remarkable growth, revenue surged by 155% to USD11.4 million in fiscal year 2024 compared to USD4.5 million the previous year. The savor increase was driven by advancement in our generative AI solutions, AI digital human technology, and other ongoing projects. We also delivered strong improvement in profitability through discipline cost management and beta rose by 13% to USD8.3 million in fiscal year 2024, representing a 30% margin on revenue. Net income came in at USD7.6 million and earnings per share increased by 143%, reaching $0.51. Overall, we are proud of our achievement and the continued improvement in our profitability. Thank you once again for joining us to review our financial results. We look forward to connecting with you at our next announcement.
Operator
Thank you, Mr. Ang. We would now like to begin the Q&A session as we receive a few questions from the floor during the conference. First question is addressed to Mr. Victor. Can you elaborate on some of the key financial highlights for fiscal year 2024, particularly area where VCI Global demonstrated the strongest performance?
Victor Hoo
Absolutely. In the fiscal year 2024, Visa Global delivered strong performance across several key areas. We recorded 41% increase in revenue, reaching $27.8 million, driven by solid contributions from all our business segments. Our technology division performed exceptionally well, especially in AI and police services, full by growing demand and innovation such as AI power solutions and supported by new projects focused on developing generative AI capabilities and AI digital human technologies, which are gaining strong traction in the market. Net profit rose to USD7.5 million up from $7.1 million the previous year, despite increased investment in talent, infrastructure, and strategy initiatives. This reflects our commitment to building long-term value and readiness to scale for future opportunities. These results underscore our strong execution, diversified business model, and forward-looking strategy.
Operator
On a more strategic note, can you explain how VCI Global and its cross-sector offerings will benefit shareholders?
Victor Hoo
VCI Global's cross-sector strategy is designed to create synergies that drive sustainable growth and maximize shareholder value by integrating key sectors such as AI infrastructure, cybersecurity, fintech solutions, and capital market advisory services, we can offer comprehensive bundle services that address multiple client needs. This is not only increases customer lifetime value, but also reduces customer acquisition costs, resulting in higher margins and a more resilient recurring revenue base. Additionally, this diversified approach positions PCC Global to capitalize on emerging trends and tap into high growth sectors with enduring demand. By strengthening our platform across multiple industries, we provide shareholders with a unique competitive edge and opportunity to benefit from long term value creation and innovation. Our strategy is about building infrastructure that supports the digital economy, which ultimately drives scalability, increases profitability, and enhances the stability of our revenue streams. Key factors that directly contribute to the long-term growth and success of the Global benefiting our shareholders.
Operator
With the carveout IPO of VCCG in the pipeline, is VCIG considering additional carveout for other business segments? Could you elaborate on the broader strategy behind this approach? Additionally, can you provide more details on VCCG carveout and its growth potential?
Victor Hoo
The upcoming carve-out IPO of VCCG is part of our broader strategy to incubate high potential business units and unlock their value to public markets. VCCG, our capital markets and strategic advisory division, has shown strong momentum. Particularly in IPO and M&A services, we expect the IPO to take place in the third quarter of 2025, and this move will not only give VCCG greater visibility and access to capital, but also create added value for VCF global shareholders. This carve-out model enables us to scale efficiently, attract dedicated resources, and accelerate growth while maintaining strategic oversight. Well, I can't disclose specifics just yet, we do have to replicate this model across other fast growing segments, especially in AI and cybersecurity. It's a disciplined way to remain agile, and lock shadow value and full expansion in high demand verticals.
Operator
We also received a question via email asking whether VCI Global has an international expansion strategy beyond the previously mentioned expansions in Singapore and Hong Kong.
Victor Hoo
We made strong headway in our expansion plans. In the first quarter of 2025, we established offices in Singapore and Hong Kong, and we will be announcing the appointment of country CEOs shortly. Additionally, we are in advanced talks with partners and clients in the Middle East and expect to expand into that region very soon. This international footprint is part of our broader strategy to tap into the high growth markets and position with CIG as a truly global player across our technology and consulting verticals. It will also allow us to scale our services, diversify our revenue streams, and better serve clients with cross-border needs.
Operator
Given the current geopolitical tensions and the growing interest in AI infrastructure, how is your subsidiary Valland navigating these challenges, especially since Valant integrate both DeepSeek LLM and NVIDIA GPU? And how does your AI infrastructure stand out in a crowded market?
Victor Hoo
Valen is strategically positioned to navigate rising geopolitical tension by offering a flexible AI infrastructure that bridges eastern and Western technologies through the integration of DeepSeek's advanced and ambidious leading GPO platforms. We deliver robust region agnostic solution that minimizes dependency on any single supply chain. This hybrid approach ensures resilience and continuity for our clients, enabling them to access cutting-edge AI capabilities without being limited by regional restrictions or geopolitical risks. By leveraging the strength of both ecosystems, we provide a neutral globally interoperable platform that stands out in this fragmented landscape. Our air as a service model, the eye is not only cost efficient but also built for speed and scalability. Clients can deploy tailored AI solutions powered by LLM such as DeepSeek or Lama and integrated with a range of AI agents within 24 hours. Our system supports both the GPUs and alternative regional hardware, eliminating the need for high upfront cap packs and specialized talent. This plug and place significantly lowers the barrier to enterprise AI adoption while maintaining performance and ability.
Operator
VCI Global has developed a proprietary cybersecurity as a service solution. Can you speak to the competitive landscape in this space and what differentiates your platform from the others in the market?
Victor Hoo
While the cybersecurity space is highly competitive, what sets VCR global apart is our proprietary cybersecurity as a service solution. Cybersecure, which delivers comprehensive real-time protection at both the hardware and software levels. A key feature of cybersecure is its automated backup of the user's entire operating system. This allows for immediate data recovery in the event of a breach, including ransomware incidents. This capability is critically important for organizations seeking to ensure business continuity and minimize operational downtime. Furthermore, cybersecure incorporates military grid encryption directly into the hardware. This chip level encryption creates an additional layer of defense, making it significantly more difficult for remote attacks to succeed. Physical access to the device will be required, which is a far higher threshold for potential traits. The solution is delivered via a subscription model, which is structured to reduce upfront capital expenditure for enterprises while ensuring onward access to the latest updates and trade intelligence even for on-premises deployments. Ultimately, cybersecure brings together robust real-time protection, rapid bridge recovery, and resilient hardware level security into one unified platform, which we believe provides a strong value proposition for our clients.
Operator
Thank you, Mr. Victor. We appreciate the thoughtful questions from the floor. With all submitted questions addressed, this concludes our earnings conference. I will now hand the mic back to Mr. Victor, the group executive Chairman and Chief Executive Officer of VCI Global, for his closing remarks.
Victor Hoo
Thank you again to everyone for being here today and for the engaging questions during the Q&A session. 2024 has been a remarkable year for VCI Global. We achieved record revenue and net income, launched innovative technologies, and taken bold steps to scale our cross-sector platform. What we have shared today reflects our unwavering commitment to long-term value creation and strategic execution across high growthics. Looking ahead, 2025 will be a year of continued momentum. We are moving forward with a public listing of VCCG and further scaling our AI and cybersecurity capabilities to be gathered. Our mission remains clear to build future ready infrastructure that drives recurring value, lowers acquisition costs, and enhances shareholder returns. On behalf of the leadership team, I want to thank our shareholders, employees, partners, and all stakeholders for your continued trust and support. We look forward to delivering another year of strong sustainable growth together. Thank you, and we'll see you at the next update.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
13 hours ago
- Yahoo
Why Did Intel Stock Drop Today?
Reuters reports Intel may cut investments in its 18A semiconductor manufacturing process, in favor of 14A. Such a move could entail billions of dollars in write-offs. Intel is not commenting on the reports. 10 stocks we like better than Intel › Intel (NASDAQ: INTC) stock slid 3.3% through 11:20 a.m. ET Wednesday after Reuters reported a shift in the company's foundry business plan. Intel may be preparing to cease marketing its "18A" chipmaking process (which is to say, making 1.8-nanometer semiconductor chips) to outside customers, and write off its investment in that process. Instead, Intel would focus on more advanced 14A process (1.4 nm) for its foundry customers, while continuing to develop 1.8-nm chips in-house. New CEO Lip-Bu Tan has commented that customers seem less than enthusiastic over Intel's 18A chips -- which is kind of a disappointment after Intel invested "billions of dollars" in the process. Industry experts are predicting the change in focus will cost Intel "hundreds of millions, if not billions, of dollars" in write-offs. However, if Intel can keep making 1.8-nm chips on its own, the write-downs may be less fierce. Intel may not have yet made a final decision to change tack, reserving that for a board meeting later this month. In the meantime, Intel is declining to comment on "hypothetical scenarios or market speculation." Intel reported its first generally accepted accounting principles (GAAP) net loss in nearly 40 years last year. Analysts forecast the company will lose money (but less money) this year, and next year as well, before returning to profitability. The company is betting big on 18A and 14A to catch up to rival chipmakers such as Taiwan Semiconductor, but as today's news shows, it's not an easy task. Valued at more than $100 billion, carrying more than $50 billion in debt, and with $21 billion in cash, Intel's still a giant company. But until it's proven it can be a giant, profitable company again, I can't recommend buying the stock. Before you buy stock in Intel, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Intel wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $697,627!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $939,655!* Now, it's worth noting Stock Advisor's total average return is 1,045% — a market-crushing outperformance compared to 178% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 30, 2025 Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Intel and Taiwan Semiconductor Manufacturing. The Motley Fool recommends the following options: short August 2025 $24 calls on Intel. The Motley Fool has a disclosure policy. Why Did Intel Stock Drop Today? was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
17 hours ago
- Yahoo
UniFirst (NYSE:UNF) Misses Q2 Sales Targets
Workplace uniform provider UniFirst (NYSE:UNF) fell short of the market's revenue expectations in Q2 CY2025 as sales only rose 1.2% year on year to $610.8 million. On the other hand, the company's outlook for the full year was close to analysts' estimates with revenue guided to $2.43 billion at the midpoint. Its GAAP profit of $2.13 per share was 7% above analysts' consensus estimates. Is now the time to buy UniFirst? Find out in our full research report. Revenue: $610.8 million vs analyst estimates of $614.7 million (1.2% year-on-year growth, 0.6% miss) EPS (GAAP): $2.13 vs analyst estimates of $1.99 (7% beat) Adjusted EBITDA: $85.83 million vs analyst estimates of $91.77 million (14.1% margin, 6.5% miss) The company reconfirmed its revenue guidance for the full year of $2.43 billion at the midpoint EPS (GAAP) guidance for the full year is $7.80 at the midpoint, beating analyst estimates by 3.1% Operating Margin: 7.9%, in line with the same quarter last year Free Cash Flow Margin: 4%, down from 6.2% in the same quarter last year Market Capitalization: $3.53 billion With a fleet of trucks making weekly deliveries to over 300,000 customer locations, UniFirst (NYSE:UNF) provides, rents, cleans, and maintains workplace uniforms and protective clothing for businesses across various industries. Reviewing a company's long-term sales performance reveals insights into its quality. Any business can put up a good quarter or two, but many enduring ones grow for years. With $2.46 billion in revenue over the past 12 months, UniFirst is a mid-sized business services company, which sometimes brings disadvantages compared to larger competitors benefiting from better economies of scale. On the bright side, it can still flex high growth rates because it's working from a smaller revenue base. As you can see below, UniFirst's 5.8% annualized revenue growth over the last five years was decent. This shows its offerings generated slightly more demand than the average business services company, a useful starting point for our analysis. Long-term growth is the most important, but within business services, a half-decade historical view may miss new innovations or demand cycles. UniFirst's annualized revenue growth of 6.2% over the last two years aligns with its five-year trend, suggesting its demand was stable. We can dig further into the company's revenue dynamics by analyzing its most important segment, Core Laundry Operations. Over the last two years, UniFirst's Core Laundry Operations revenue (uniform rental and laundering) averaged 6.3% year-on-year growth. This quarter, UniFirst's revenue grew by 1.2% year on year to $610.8 million, falling short of Wall Street's estimates. Looking ahead, sell-side analysts expect revenue to grow 1.3% over the next 12 months, a deceleration versus the last two years. This projection is underwhelming and implies its products and services will see some demand headwinds. Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) stock benefiting from the rise of AI. Click here to access our free report one of our favorites growth stories. UniFirst was profitable over the last five years but held back by its large cost base. Its average operating margin of 7.5% was weak for a business services business. Looking at the trend in its profitability, UniFirst's operating margin decreased by 2.4 percentage points over the last five years. This raises questions about the company's expense base because its revenue growth should have given it leverage on its fixed costs, resulting in better economies of scale and profitability. UniFirst's performance was poor no matter how you look at it - it shows that costs were rising and it couldn't pass them onto its customers. In Q2, UniFirst generated an operating margin profit margin of 7.9%, in line with the same quarter last year. This indicates the company's overall cost structure has been relatively stable. Revenue trends explain a company's historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions. UniFirst's flat EPS over the last five years was below its 5.8% annualized revenue growth. This tells us the company became less profitable on a per-share basis as it expanded due to non-fundamental factors such as interest expenses and taxes. Diving into the nuances of UniFirst's earnings can give us a better understanding of its performance. As we mentioned earlier, UniFirst's operating margin was flat this quarter but declined by 2.4 percentage points over the last five years. This was the most relevant factor (aside from the revenue impact) behind its lower earnings; interest expenses and taxes can also affect EPS but don't tell us as much about a company's fundamentals. In Q2, UniFirst reported EPS at $2.13, up from $2.03 in the same quarter last year. This print beat analysts' estimates by 7%. Over the next 12 months, Wall Street expects UniFirst's full-year EPS of $8.14 to grow 2.2%. We enjoyed seeing UniFirst beat analysts' full-year EPS guidance expectations this quarter. We were also happy its EPS outperformed Wall Street's estimates. On the other hand, its revenue slightly missed. Overall, this print was mixed. The stock traded up 1.2% to $192.50 immediately following the results. Sure, UniFirst had a solid quarter, but if we look at the bigger picture, is this stock a buy? When making that decision, it's important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here, it's free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Wire
a day ago
- Business Wire
Informa TechTarget Reports Preliminary Q1 2025 Results
NEWTON, Mass.--(BUSINESS WIRE)--TechTarget, Inc. (Nasdaq: TTGT), ('Informa TechTarget' or the 'Company'), a leading growth accelerator for the B2B Technology sector, today published preliminary results for the first quarter of 2025, delivering Revenues of $104 million and reaffirming full year expectations for year-on-year growth in Adjusted EBITDA (2). Gary Nugent, Chief Executive, Informa TechTarget, said: 'We have made good operational progress in the first quarter of 2025 and will continue these efforts throughout our Foundation Year, laying the groundwork to realize the benefits of breadth, scale and diversity created through combination, and positioning the Company for long-term growth.' Highlights Q1 Preliminary Revenue Performance as Expected: Revenues increased 77% over the prior year period's reported revenues and declined approximately 6% year-on-year on a Combined Company Basis (3), with run-rate improving into Q2, in line with previous commentary; Mid-single digit revenue decline expected over first six months of the year on a Combined Company basis; Preliminary Q1 Net Income impacted by technical non-cash impairment reflecting difference in current market capitalization versus year-end book value; Accelerated Combination Plan: Early Q1 focus was on combining teams, establishing reporting lines and confirming senior leadership, providing clarity to colleagues as quickly as possible; additionally, we began the process of focusing on our ways of working, including the first steps to harmonize our systems and operational models to enhance collaboration and efficiencies; We expect this work to continue throughout 2025; The Foundation Year: Next phase of Combination Plan focused on consolidating product portfolio, simplifying go-to-market offer and increasing the commercial focus on core growth opportunities, including key client accounts and the CyberSecurity sector; Full Year Expectations Reaffirmed: Targeting broadly flat revenues across 2025, with improving momentum through second half as combined group proposition gains traction in the market; Accelerated approach to combination brings forward synergy targets, underpinning guidance for year-on-year growth in adjusted EBITDA; Long-term Growth Opportunity: We believe underlying demand for efficient, data-driven B2B marketing solutions remains strong, particularly within Enterprise Technology; The scale, breadth and reach of Informa TechTarget creates a unique opportunity to build a leading position in a long-term growth market. Financial Summary (1) (1) The Company's results are preliminary as it continues to finalize its goodwill impairment assessment and the related income tax accounting for Q1 2025. (2) Denotes a non-GAAP financial measure. See Non-GAAP Financial Measures below for explanations of these measures and reconciliations to a comparable GAAP measure. (3) Combined Company measure which represents Informa TechTarget's performance for the quarter ended March 31, 2024 as if the acquisition of Former TechTarget had occurred on January 1, 2023. Note that it is not necessarily indicative of the performance of Informa TechTarget that may have actually occurred had this been completed on January 1, 2023. Expand The Company performed broadly as expected with revenues of $104 million, up 77% over the prior year period's reported revenues, and approximately 6% lower on a Combined Company basis. Our like-for-like performance largely reflected what remains a subdued market backdrop. In addition, through the early months of the year the Company was focused on its Combination Plan, bringing together colleagues, teams, processes and technology. 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. This accelerated approach also enabled us to bring forward the delivery of cost synergies in the first year post-combination and this underpins our guidance for growth in adjusted EBITDA in 2025, even with Combined Company revenues expected to be broadly flat. The Company is expecting to report a Q1 net loss of $513 million to $545 million, compared to $32 million for the Combined Company in the prior year period, reflecting higher acquisition and integration costs, as well as a $450 million to $475 million non-cash impairment to reflect the Company's current depressed market capitalization relative to book value at year-end and income tax expense of $25 million to $32 million. Adjusted EBITDA decreased by about $10 million versus the prior year period on a Combined Company basis. Filing Update and Regaining Compliance with Nasdaq Listing Rules The Company expects to file its Form 10-Q for the quarter ended March 31, 2025 with the Securities and Exchange Commission shortly post the July 4th holidays, once all procedures and reviews have been finalized. This should enable the Company to regain compliance with Nasdaq Listing Rule 5250(c)(1) regarding adherence to filing requirements, with our second quarter financial results targeted for release on or before August 14, 2025. The Foundation Year: Combine and Grow In 2025, we are focused on effectively combining our two legacy businesses and building a strong foundation for future growth, initially targeting three core areas: 1. Leadership: We moved quickly to appoint the Executive and Senior Leadership teams, securing a balance of experience and knowledge from the legacy Informa Tech and the legacy TechTarget businesses. These appointments enabled us to confirm responsibilities and reporting lines, providing Colleagues with clarity as quickly as possible; 2. Operating Model: The operating model is being updated post-combination, including: a. Brand consolidation: We combined the brands within our Intelligence & Advisory offerings (Canalys, ESG, Omdia and Wards) under the Omdia brand, simplifying the offer to customers and freeing up analysts to spend more time in the field; b. Product positioning: We made an early decision to reposition the NetLine syndicated audience offering to the volume-end of the demand generation market, playing to current market sensitivities and distinguishing it from our other brands; c. Go-to-Market Focus: We restructured our go-to-market teams to better target major customer accounts, reflecting that half our $20 billion addressable market is accounted for by just 200 companies. We have established dedicated sales and service teams to serve an initial cohort of top accounts, with more to come, facilitating stronger, more personalized relationships, helping us to better identify opportunities to grow and enhance the client experience; We have also doubled down on the CyberSecurity sector, a large and growing market where we have established audiences and data (including via Informa PLC's ownership of the BlackHat brand) but our revenue share remains low; d. Technology & Data: While broader process and systems integration will be implemented over a longer time frame, we prioritized operationalizing our first party data exchange with Informa PLC, opening up access to its 20 million+ permissioned B2B audience generated by its Live B2B Events portfolio. 3. Cost synergies: We immediately targeted addressing duplication in administration costs, technology licenses, property and roles. While this created some disruption in the early months of the year, we entered Q2 with greater certainty and now expect to more than double our original Year 1 cost savings goal, targeting a minimum of $10 million operating synergies in 2025. This gives us a high degree of confidence we can meet or beat the overall $45 million run rate synergy target by the end of Year 3 ($25 million cost synergies and $20 million revenue synergies). Expand 2025 Outlook Reaffirmed Our guidance for the full year is unchanged, with a target for broadly flat year-on-year revenues on a Combined Company basis. Following a Q1 revenue decline of approximately 6%, 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. 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. The accelerated delivery of cost synergies underpins our ambition for positive growth in adjusted EBITDA in 2025, despite broadly flat revenues, with a target to deliver in excess of $85 million for the year. We anticipate recording a further non-cash goodwill impairment in Q2 2025, reflecting the market uncertainty cited in our previous commentary that persisted through the first half of the year and the technical accounting impact of our depressed market capitalization at the end of the quarter relative to book values. This adjustment will have no impact on our operational performance or cash position. Our guidance does not assume any marked change in the market environment, with activity expected to remain subdued, as enterprise technology customers continue to limit investments in marketing and sales to prioritize research and development in AI-related initiatives. Long term growth opportunity While this market environment is impacting the immediate market opportunity for Informa TechTarget, we remain confident that the breadth and depth of our product offerings can drive market share gains over time, with a range of long-term growth drivers: Enterprise IT market penetration addressing the needs of our clients across their product life cycle through the breadth, reach and scale of our combined products and talent and leveraging our expanded first-party data assets; International expansion to capture approximately 40% of the global market that is estimated to be made up of technology vendors outside the US; Growth in industry B2B tech markets by expanding into adjacent tech-driven markets such as AutoTech, HealthTech, Fintech and others; New product and platform development to deliver richer data-driven insights and deeper market access; Inorganic growth opportunities that further strengthen our market position, supported by our strong balance sheet and cash generation. We also see AI as a significant opportunity, representing a growing customer market (educating, influencing and targeting buyers of AI-enabled products), a tool to drive efficiency across our operating platform, and a technology to power our content generation strategy and value proposition of our products. 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), ensuring that our trusted, original, authoritative content is referenced and cited in relevant AI summaries as well as through organic search. We also continue to invest in our many other audience development and engagement strategies, including the Industry Dive outbound newsletter model, the BrightTALK and NetLine partnership models, and first party data from Informa PLC, underlining the strength and diversity in our approach to building and nurturing audiences. Conference Call and Webcast The Company will discuss these financial results in a conference call and webcast on Tuesday July 1, 2025 at 5:00 PM (Eastern Time) which will include brief remarks by management followed by questions and answers. Conference Call Dial-In Information: United States (Toll Free): 1-833-470-1428 United States: 1-404-975-4839 United Kingdom (Toll Free): +44 808 189 6484 United Kingdom: +44 20 8068 2558 Global Dial-in Numbers Access code: 557186 Please access the call at least 10 minutes prior to the time the conference is set to begin. Please ask to be joined into the Informa TechTarget call. Conference Call Webcast Information: This webcast can be accessed via Informa TechTarget's website at: Conference Call Replay Information: A replay of the conference call will be available via telephone beginning one (1) hour after the conference call through July 31, 2025 at 11:59 p.m. EDT. To hear the replay: United States (Toll Free): 1-866-813-9403 United States: 1-929-458-6194 Access Code: 670569 About Informa TechTarget TechTarget, Inc. (Nasdaq: TTGT), which also refers to itself as Informa TechTarget, informs, influences and connects the world's technology buyers and sellers, helping accelerate growth from R&D to ROI. With a vast reach of over 220 highly targeted technology-specific websites and over 50 million permissioned first-party audience members, Informa TechTarget has a unique understanding of and insight into the technology market. Underpinned by those audiences and their data, we offer expert-led, data-driven, and digitally enabled services that have the potential to deliver significant impact and measurable outcomes to our clients: Trusted information that shapes the industry and informs investment Intelligence and advice that guides and influences strategy Advertising that grows reputation and establishes thought leadership Custom content that engages and prompts action Intent and demand generation that more precisely targets and converts Informa TechTarget is headquartered in Boston, MA and has offices in 19 global locations. For more information, visit and follow us on LinkedIn. © 2025 TechTarget, Inc. All rights reserved. All trademarks are the property of their respective owners. Non-GAAP Financial Measures This release and the accompanying tables include a discussion of Adjusted EBITDA, Adjusted EBITDA Margin, Combined Company Revenue, Combined Company Net Loss, Combined Company Net Loss Margin, Combined Company Adjusted EBITDA and Combined Company Adjusted EBITDA Margin, 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, income taxes, depreciation and amortization, as further adjusted to exclude stock-based compensation, other income and expenses such as asset impairment and impairment related to goodwill, and costs related to mergers, acquisitions or reduction in forces expenses, if any. 'Adjusted EBITDA Margin' means Adjusted EBITDA divided by Revenue. 'Combined Company Revenue' means revenue calculated as if the acquisition of Former TechTarget occurred on January 1, 2023. See Footnote 5 of the Company's Form 10-K for December 31, 2024 for additional information related to our presentation of unaudited supplemental Combined Company financial information. 'Combined Company Net Loss' means net income/loss calculated as if the acquisition of Former TechTarget had occurred on January 1, 2023. See Footnote 5 of the Company's Form 10-K for December 31, 2024 for additional information related to our presentation of unaudited supplemental Combined Company financial information. 'Combined Company Net Loss Margin' means Combined Company Net Loss divided by Combined Company Revenue. 'Combined Company Adjusted EBITDA' means earnings before net interest, income taxes, depreciation and amortization, as further adjusted to exclude stock-based compensation, other income and expenses such as asset impairment and impairment related to goodwill, and costs related to mergers, acquisitions or reduction in forces expenses, if any. See Footnote 5 of the Company's Form 10-K for December 31, 2024 for additional information related to our presentation of unaudited supplemental Combined Company financial information. The items included in the calculation assume the acquisition of Former TechTarget had occurred on January 1, 2023. 'Combined Company Adjusted EBITDA Margin' means Combined Company Adjusted EBITDA divided by Combined Company Revenue. 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, Adjusted EBITDA margin, Combined Company Revenue, Combined Company Net Loss, Combined Company Net Loss Margin, Combined Company Adjusted EBITDA and Combined Company Adjusted EBITDA Margin, 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. Combined Company measures are provided to assist our investors in further comparing our performance as if the acquisition of Former TechTarget occurred on January 1, 2023. The components of Adjusted EBITDA and Combined Company Adjusted EBITDA include the key revenue and expense items for which our operating managers are responsible and upon which we evaluate their performance. Adjusted EBITDA is also used in presentations to our Board of Directors. 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 significant items. These items include, but are not limited to, acquisition and integration costs, amortization of intangible assets, restructuring and other expenses, asset impairment, and the income tax effect of these items. These items are uncertain, depend on various factors, including, but not limited to, our recent acquisition of Former TechTarget and could have a material impact on GAAP reported results for the relevant period. Cautionary Note Regarding Forward-Looking Statements This press release contains 'forward-looking statements'. All statements, other than historical facts, are forward-looking statements, including: statements regarding the expected benefits of the transactions consummated on December 2, 2024 (the 'Closing Date') pursuant to the Agreement and Plan of Merger, dated as of January 10, 2024, among TechTarget Holdings Inc. (formerly known as TechTarget, Inc. ('Former TechTarget')), Informa TechTarget, Toro Acquisition Sub, LLC, Informa PLC, Informa US Holdings Limited, and Informa Intrepid Holdings Inc. (the 'Transactions'), such as improved operations, enhanced revenues and cash flow, synergies, growth potential, market profile, business plans, expanded portfolio and financial strength; the competitive ability and position of Informa TechTarget; legal, economic, and regulatory conditions; and any assumptions underlying any of the foregoing. Forward-looking statements concern future circumstances and results and other statements that are not historical facts and are sometimes identified by the words 'may,' 'will,' 'should,' 'potential,' 'intend,' 'expect,' 'endeavor,' 'seek,' 'anticipate,' 'estimate,' 'overestimate,' 'underestimate,' 'believe,' 'plan,' 'could,' 'would,' 'project,' 'predict,' 'continue,' 'target,' or the negatives of these words or other similar terms or expressions that concern Informa TechTarget's expectations, strategy, priorities, plans, or intentions. Forward-looking statements are based upon current plans, estimates, and expectations that are subject to risks, uncertainties, and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements. We can give no assurance that such plans, estimates, or expectations will be achieved, and therefore, actual results may differ materially from any plans, estimates, or expectations in such forward-looking statements. Important factors that could cause actual results to differ materially from such plans, estimates, or expectations include, among others: unexpected costs, charges, or expenses resulting from the Transactions; uncertainty regarding the expected financial performance of Informa TechTarget; failure to realize the anticipated benefits of the Transactions, including as a result of integrating the Informa Tech Digital Businesses with the business of Former TechTarget; the ability of Informa TechTarget to implement its business strategy; difficulties and delays in Informa TechTarget achieving revenue and cost synergies; evolving legal, regulatory, and tax regimes; changes in economic, financial, political, and regulatory conditions, in the United States and elsewhere, and other factors that contribute to uncertainty and volatility, natural and man-made disasters, civil unrest, pandemics, geopolitical uncertainty, and conditions that may result from legislative, regulatory, trade, and policy changes associated with the current or subsequent U.S. administrations; Informa TechTarget's ability to meet expectations regarding the accounting and tax treatments of the Transactions; market acceptance of Informa TechTarget's products and services; the impact of pandemics and future health epidemics and any related economic downturns on Informa TechTarget and the markets in which it and its customers operate; changes in economic or regulatory conditions or other trends affecting the internet, internet advertising and IT industries; data privacy and artificial intelligence 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 the operating results of Informa TechTarget; and other matters included in Risk Factors of Informa TechTarget's Form 10-K for fiscal year 2024 (filed with the United States Securities and Exchange Commission (the 'SEC') on May 28, 2025) and other documents filed by Informa TechTarget from time to time with the SEC. This summary of risks and uncertainties should not be considered to be a complete statement of all potential risks and uncertainties that may affect Informa TechTarget. Other factors may affect the accuracy and reliability of forward-looking statements. We caution you not to place undue reliance on any of these forward-looking statements as they are not guarantees of future performance or outcomes. Actual performance and outcomes, including, without limitation, Informa TechTarget's actual results of operations, financial condition and liquidity, may differ materially from those made in or suggested by the forward-looking statements contained in this press release. Any forward-looking statements speak only as of the date of this press release. None of Informa TechTarget, its affiliates, advisors or representatives, undertake any obligation to update any forward-looking statements, whether as a result of new information or developments, future events, or otherwise, except as required by law. Readers are cautioned not to place undue reliance on any of these forward-looking statements. (1) Assumes income taxes payable calculated at the low preliminary range. If calculated at the high preliminary range, income taxes payable would be $66,861 and total current liabilities would be $189,938. Expand TechTarget, Inc. Unaudited Selected Preliminary Earnings Information ($ in thousands) For the Three Months Ended March 31, 2025 March 31, 2025 March 31, 2024 High Preliminary Range Low Preliminary Range As Restated Revenues 1 $ 103,887 $ 103,887 $ 58,659 Cost of revenues 1,2 (44,160 ) (44,160 ) (23,969 ) Gross profit 59,727 59,727 34,690 Operating expenses: Selling and marketing 2 33,310 33,310 13,807 General and administrative 1,2 24,284 24,284 18,178 Product development 2 2,789 2,789 3,019 Depreciation 532 532 403 Amortization, excluding amortization of $2,473, and $102 included in cost of revenues 23,288 23,288 10,836 Impairment of goodwill 475,000 450,000 — Impairment of long-lived assets — — 1,864 Acquisition and integration costs 1 9,328 9,328 6,977 Remeasurement of contingent consideration — — 2,064 Total operating expenses 568,531 543,531 57,148 Operating loss (508,804 ) (483,804 ) (22,458 ) Other income (expense), net (4,081 ) (4,081 ) (4,749 ) Loss before provision for income taxes (512,885 ) (487,885 ) (27,207 ) Income tax benefit (provision) (32,000 ) (25,000 ) 7,698 Net loss $ (544,885 ) $ (512,885 ) $ (19,509 ) (1) Amounts include related party transactions as follows: Revenues 224 224 84 Cost of revenues 277 277 — General and administrative 6,279 6,279 8,505 Interest income — — 1,029 Acquisition and integration costs 46 46 6,055 (2) Amounts include stock-based compensation expense as follows: Cost of revenues 308 308 — Selling and marketing 2,757 2,757 — General and administrative 711 711 266 Product development 183 183 — Expand TechTarget, Inc. Reconciliation of Preliminary Net Loss to Preliminary Adjusted EBITDA and Preliminary Net Loss Margin to Preliminary Adjusted EBITDA Margin ($ in thousands) For Three Months Ended March 31, 2025 2025 2024 2024 High Preliminary Range Low Preliminary Range As Restated Combined Revenues $ 103,887 $ 103,887 $ 58,659 $ 110,295 Net loss $ (544,885 ) $ (512,885 ) $ (19,509 ) $ (31,588 ) Interest (income) expense, net 1,030 1,030 4,967 1,788 Provision (benefit) for income taxes 32,000 25,000 (7,698 ) (6,138 ) Depreciation 532 532 403 687 Amortization 25,761 25,761 10,938 24,603 EBITDA $ (485,562 ) $ (460,562 ) $ (10,899 ) $ (10,648 ) Stock-based compensation 3,959 3,959 266 11,725 Impairment of goodwill 475,000 450,000 — — Impairment of long-lived assets — — 1,864 1,864 Acquisition and integration costs 9,328 9,328 6,977 7,758 Remeasurement of contingent consideration — — 2,064 2,064 Adjusted EBITDA $ 2,725 $ 2,725 $ 272 $ 12,763 Net loss margin (524.5 )% (493.7 )% (33.3 )% (28.6 )% Adjusted EBITDA margin 2.6 % 2.6 % 0.5 % 11.6 % Expand TechTarget Inc. Reconciliation of Combined Company Revenue and Net Loss For the three months ended March 31, 2024 ($ in thousands) Historical Combined Company Informa Tech Digital Business (Note a) Former TechTarget (Note b) Transaction Accounting Adjustments Note Combined Company Revenues $ 58,659 $ 51,636 $ — $ 110,295 Cost of revenues: Cost of revenues (23,867 ) (19,158 ) 1,172 (c) (41,853 ) Amortization of acquired technology (102 ) (702 ) (4,265 ) (d) (5,069 ) Gross profit 34,690 31,776 (3,093 ) 63,373 Operating expenses: Selling and marketing 13,807 22,962 18 (e) 36,787 General and administrative 18,178 6,695 82 (f) 24,955 Product development 3,019 2,753 — 5,772 Depreciation 403 284 — 687 Amortization 10,836 3,525 5,173 (g) 19,534 Impairment of long-lived assets 1,864 — — 1,864 Acquisition and integration costs 6,977 — (5,745 ) (h) 1,232 Transaction and related expenses — 6,526 — 6,526 Remeasurement of contingent consideration 2,064 — — 2,064 Total operating expenses 57,148 42,745 (472 ) 99,421 Operating loss (22,458 ) (10,969 ) (2,621 ) (36,048 ) Interest expense — (552 ) — (552 ) Interest income 1,234 3,731 — 4,965 Other income (expense), net 218 (108 ) — 110 Related party interest expense (6,201 ) — — (6,201 ) Loss before provision for income taxes (27,207 ) (7,898 ) (2,621 ) (37,726 ) Income tax benefit (provision) 7,698 (2,190 ) 630 (i) 6,138 Net loss $ (19,509 ) $ (10,088 ) $ (1,991 ) $ (31,588 ) Expand (a) Represents the condensed statement of income of the Informa Tech Digital Business for the quarter ended March 31, 2024. (b) Represents the condensed consolidated statement of operations as reported in Former TechTarget's Form 10-Q for the quarter ended March 31, 2024. (c) Represents adjustments to cost of revenues associated with the elimination of TechTarget's historical lease expense, amortization related to existing computer software, internal-use software, and website development costs, and the recognition of the estimated lease expense based on remeasured lease liabilities and ROU assets. (d) Represents the elimination of Former TechTarget's historical amortization of acquired technology of $702 thousand and recognition of new amortization expense of $4,967 thousand resulting from intangible assets identified as part of the purchase price allocation. (e) Represents adjustments to selling and marketing expenses associated with the elimination of Former TechTarget's lease expense, and the recognition of the estimated lease expense based on remeasured lease liabilities and ROU assets. (f) Represents adjustments to general and administrative expenses associated with the elimination of Former TechTarget's historical lease expense, and the recognition of the estimated lease expense based on remeasured lease liabilities and ROU assets. (g) Represents the elimination of Former TechTarget's historical amortization of intangible assets of $3,525 thousand and recognition of new amortization expense of $8,698 thousand resulting from intangible assets identified as part of the purchase price allocation. (h) Represents the elimination of acquisition costs of $5,745 thousand incurred by the Informa Tech Digital Business for the three months ended March 31, 2024. (i) Represents the income tax effect of the pro forma adjustments presented. The pro forma income tax adjustments were estimated using a combined U.S. federal and statutory tax rate of 24.0% applied to all adjustments. Expand
