TTGT - TechTarget takes 15% tumble as it forecasts heavy sales slowdown

TechTarget ( NASDAQ: TTGT ) has slid 14.8% after reporting fourth-quarter earnings where it topped expectations but offered light guidance for the current quarter and full year.

Revenues fell 5% - not as much as expected - and net income jumped 145%, to $7.2M. Longer-term revenue rose by 5%, and now makes up 40% of total revenues (which amounted to $73M).

But the company guided to first-quarter revenue of $56M-$58M, light of expectations for $65.4M. And for 2023, it sees revenues of $255M-$265M, lower than an expected $305.7M.

"The technology market has materially worsened since November," the company said. "Over 1,000 technology companies have announced layoffs of some size, including many of our largest customers.

"As you would expect, selling to companies that have recently done layoffs is extremely challenging as we are seeing general anxiety, elongated sales cycles, budget cuts and freezes at many of our customers."

That means adjustements on the expense side, TechTarget said. It cut headcount by 5% in December, instituted a hiring freeze for the next 90 days, and is trying to sublease its excess office space.

"We are staying very close to our customers during this uncertain period," CEO Michael Cotoia and Executive Chairman Greg Strakosch said. "Internally, we are focused on expense management and increasing efficiency which will allow us to continue to invest in the large opportunities we see that will especially pay off when there is a recovery."

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