TechTarget's Revenue Declines by 23% in the Nine Months Ended September 30, 2023
Segments of revenue
TechTarget's revenue for the nine months ended September 30, 2023 decreased by $51.8 million, or 23%, to $172.7 million compared to the same period in 2022. The decrease in revenue was primarily due to decreased customer spend across their product suite. Additionally, the amount of revenue derived from longer-term contracts decreased by 38% in the third quarter of 2023 compared to the third quarter of 2022.
Despite the decline in revenue, TechTarget continues to attract new customers, with 422 new customers added during the third quarter of 2023 compared to the same period in 2022, resulting in increased revenues of approximately $7.3 million. This indicates the company's ability to expand its customer base.
The main weakness for TechTarget is the decrease in customer spend by existing customers, which amounted to approximately $27.6 million. This decline in spend contributed to the overall decrease in revenue for the company.
It is worth noting that TechTarget changed its method for counting new customers for year-to-date periods, which may have impacted the comparison of new customer numbers between 2023 and 2022. This change involved counting as one new customer in the year-to-date period any customer that was new at any time during the year-to-date period, as compared to the corresponding prior year year-to-date period.
TechTarget's revenue declined by 23% in the nine months ended September 30, 2023, primarily due to decreased customer spend across their product suite. However, the company continues to attract new customers, which partially offset the decline. The decrease in revenue from longer-term contracts also contributed to the overall decline. TechTarget should focus on retaining and increasing spend from existing customers to improve their financial performance in future quarters.