Thank you for attending today's Informa TechTarget Third Quarter 2025 Financial Results Conference Call. My name is Tamiya, and I will be your moderator for today's call. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end. I would now like to pass the conference over to your host, Charles Rennick, General Counsel. You may proceed.

Thank you, and good afternoon, everyone. The speakers joining us here today are Gary Nugent, our CEO, and Daniel T. Noreck, our CFO. Before turning the call over to Gary, we would like to remind everyone on the call of our earnings release process. As previously announced, in order to provide you with an update on our business in advance of the call, we posted a press release to the Investor Relations section of our website and furnished it on an 8-K. You can also find these materials at the SEC free of charge at the SEC's website, www.sec.gov. A corresponding webcast as well as a replay of this conference call will be made available on the Investor Relations section of our website. Following Gary's remarks, the management team will be available to answer questions. Any statements made today by Informa TechTarget that are not factual, including during the Q&A, may be considered forward-looking statements. These forward-looking statements, which are subject to risks and uncertainties, are based on assumptions and are not guarantees of our future performance. Actual results may differ materially from our forecast and from these forward-looking statements. Forward-looking statements involve a number of risks and uncertainties, including those discussed in the Risk Factors section of our SEC filings. These statements speak only as of the date of this call, and Informa TechTarget undertakes no obligation to revise or update any forward-looking statements in order to reflect events that may arise after the conference call, except as required by law. Finally, we may also refer to certain financial measures not prepared in accordance with GAAP. A reconciliation of certain of these non-GAAP financial measures to the most comparable GAAP measure, to the extent available without unreasonable effort, accompanies our press release. And with that, I'll turn the call over to Gary.

Thank you, Charles, and thank you all for joining our call today. As always, we greatly appreciate you investing the time. I am pleased to report that 2025 demonstrated the momentum that we had anticipated following our Q2 results and that we made good progress in unlocking the benefits of the scale, breadth, and diversity of our combined business. We have said many times that we view 2025 as the foundation year for our combined company as Informa TechTarget. Executing upon our plan to align and integrate our ease and seize the benefits with the combination of forces, I am convinced we will be a key point of differentiation in the market as we move forward. Our early strategic initiatives are gaining traction and beginning to bear fruit, and we're seeing improving performance from our business. The B2B technology market is a dynamic one, with artificial intelligence, cybersecurity, and generally digital transformation as key drivers. With a $5 trillion end market today, our own Omnia analyst forecasts this end market to double by 2034. Our ability to inform, educate, and shape the market and connect technology vendors with engaged, purchase-ready IT decision-makers has never been more valuable. Our clients are, in the main, performing well. However, they are currently engaged in a strategic AI investment cycle, with the majority of resources being redirected towards R&D in this arena. While this may be temporarily impacting go-to-market and marketing budgets, these investments will ultimately need to demonstrate an ROI, which will drive increased demand for our products and services in the midterm. Regardless, it is a large addressable market out there. We signed at around $20 billion for our business, of which we have only penetrated 2.5% market share. Thus, there is plenty of runway for growth to leverage the breadth and…

Absolutely. We will now begin the question and answer session. The first question comes from Joshua Christopher Reilly with Needham. You may proceed.

All right, great. Thanks for taking my questions here. Maybe just starting off on one of the last topics you were just talking about there and the whole concept of driving traffic via search engine optimization related to the AI, LLMs. What are you seeing and what have you done? Maybe you can just expand on this a bit more. As a company, as you obviously have to pivot from traditional SEO to the answer engine optimization concept. How are you progressing in that? How much more work do you have to do? What are you seeing in terms of the readership trends as customers and users ultimately find more answers via the answer engine optimization versus traditional web search?

Yes, Joshua. Wanted to hear your voice. Thank you for the question. Well, I think the first thing I would say about that is that as a combined company, our strategy and tactics for attracting audiences and converting them to members are quite diverse. Very diverse. Less than 50% of the kind of top of the funnel comes from search engine within the business. We have an array of tactics that we use to drive audiences. Like I mentioned in my note, we've actually seen although there is a dynamic in the marketplace at the moment, we're actually seeing our active membership increase modestly through the period, which obviously gives us comfort. In terms of we're also seeing that the traffic from the answer engine is growing. I think we had over 77,000 citations through the period that we talked about. Interestingly enough, it's not just that we're seeing increased traffic coming from these sources. The conversion rate of that traffic to members, and remember, it is the member that is the valuable asset for our business, not the traffic. The conversion to members is two to three times what it was from or what it is from search. What we're really seeing is we're just seeing a slightly more qualified audience member coming to us. What we really also think we're seeing is just that the AI answer engines are filtering out some of the traffic that actually was not buyers that would have been valued to our membership. Does that make sense, Joshua?

That's super helpful and interesting. All right. So moving on, maybe we could dive in on the quarterly progression of revenue that we've seen this year so far. We know Q1 was depressed due to the integration process. Would you say that Q2 revenues and now Q3 are back to a normalized run rate for the combined business? Or were they also depressed somewhat? The reason I'm the angle I'm trying to get at here is if we look at the sequential implied increase from Q3 to Q4 for total revenue, I believe it's roughly a 15% sequential increase. If I remember correctly, in the old days, the normal TechTarget business would have about a 10% sequential increase from Q3 to Q4. Maybe you could just kind of help us understand what's gone on with the revenue trends here year to date?

I think we're, as I said, I would use it in our progressive momentum in the year first and foremost. I think we are, I mean, you asked if it's the run rate, I mean, I would say that we are aiming to improve that constantly over time. The other thing you need to remember, of course, is that within the combined company in Q4, there is revenue from our Canalys business, the Canalys Forums, which is a series of events that run in the fourth quarter in October and in December. That is also effectively explaining the delta between your traditional 10% and the 15% that you're seeing.

Got it. So you recognize the full amount of that revenue maybe for a year subscription in Q4. Is that kind of the right way to think about it? Or is there one-time, is that event-based revenue?

It's event-based revenue that is one-time and recognizes when the flow when the event flows.

Got you. Understood. Last question for me is you obviously were talking about AI as an opportunity for your business. Maybe you can speak to what specifically from a product perspective you're doing that could drive some tangible revenue over the next couple of years? Really help us understand better what are you doing to productize ultimately the AI opportunity for the new TechTarget?

Yes. I touched upon this in my opening comments. I described it as conversational interfaces into our market data and our proprietary audience data, sorry, our permissioned audience data. You think about this, it's really a way we're offering our customers the opportunity to interrogate our data in a way that's a natural language way. What that does is it makes it more actionable, it makes it more accessible, especially when you're then transitioning from the marketing persona to the sales persona. What you will see increasingly from us, and we actually have demonstrations of this, is how you can actually do a natural language interface through a conversational AI interface, interrogate, for example, our intent data. In interrogating that intent data, it then gives you a greater sense of the context behind why that particular company or that particular prospect is somebody you should be focusing your attention on in actioning. That we see as being a major way to make the ability to extract value from our data and lower the barrier to the ability to extract value from the data.

Understood. Thanks, Gary.

Next question comes from Jason Michael Kreyer with Craig Hallum Capital Group. Proceed.

Thank you. This is Cal Bartyzal on for Jason Michael Kreyer tonight. So, you know, maybe you kind of touched on the call a little bit about seeing some longer and some larger deals, but just curious broadly how you'd characterize the backlog in the pipeline and that kind of plays into your confidence for some accelerating growth trends here in Q4?

Well, I mean, given that we've reaffirmed the guidance for the year, both pipeline and the backlog support that outlook for the year. Generally speaking, we feel confident that we will roll into 2026 with a healthier backlog given the profile of bookings and revenue through the fourth quarter. I would say both of those are true.

Great. And then just as a follow-up, can you just kind of provide an update on the unified go-to-market strategy you've had and the success that you're seeing tapping into more spend with your existing large customer base?

Yes, of course. I mean, this is effectively organizing ourselves around the largest customers in the industry. I think I've mentioned in the past that about 150 to 200 end represent about half of the addressable market in the marketplace. Now we're focusing on all 150 to 200 at present. We've taken a cross-section of that to prove out this concept. We build effectively intact teams across the organization. So not just sales, not just SDR, not just customer success, but all of the capabilities within the business that service customers. In an intact team basis to wrap our arms around these customers and ensure the quality of offering service to them. What it also means is that we're seeing our ability to then land within those customers and expand our presence within them. I talked earlier on about these strong relationships that we have and the strong sponsorship that we have. The key thing that we're looking at constantly is are we penetrating new product business units? Are we penetrating new field marketing and sales units? Are we penetrating different dimensions like industry vertical marketing or channel marketing or corporate strategy, where there are new budget pools for us to address? That's really kind of a measure of our progress is where we are expanding our presence inside these larger accounts. It's obviously nice to grow an existing relationship, but actually what we want to do is expand those relationships within these very large customers.

Great. Thanks for the time and congrats on the progress.

Thank you, Cal.

As a quick reminder, if you'd like to ask a question, please press the star key followed by the number one on your telephone keypad. Next question comes from Bruce Goldfarb with Lake Street Capital Markets. You may proceed.

Hey, congratulations on the results. Just a couple of questions from me. Are you seeing any changes in sales cycle duration or deal size within Priority Engine or your subscription offering as we move into year-end budgets?

Thanks, Bruce. It's good to hear your voice. I would say no, nothing material changing either in terms of the cycle time on deals or on the average values at a transactional level. No material change.

Thank you. And then can you comment on the pipeline for potential tuck-in acquisitions? Are there adjacencies either in data or workflow tools that could accelerate growth in 2026?

At this stage, we are very focused on aligning and integrating the existing assets within the business and bringing that to bear in the marketplace. That's really our focus is to ensure that we do that well, we do it quickly, we do it well. We build a platform for the future. I think it won't be until we roll into the second half of next year that we'll give consideration to that.

Great. Thank you.

Thank you.

There are no more questions waiting at this time. This concludes today's conference call. Thank you for your participation. You may now disconnect your line.