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TechTarget November 3 , 2021 Dear Fellow Shareholders : We continue to see broad - based strength across all products , customer segments and geographies . We expect this positive momentum carry into 2022 . to For Q3 2021 : ● GAAP Revenue grew 92 % to approximately $ 70 million ; Adjusted Revenue grew 97 % to approximately $ 71.5 million . Net income grew 47 % to approximately $ 10 million ; Adjusted EBITDA grew 125 % to approximately $ 28.2 million . Net income margin was 14 % . Adjusted EBITDA Margin was 39 % . GAAP Gross margin was 75 % ; Adjusted Gross Margin was 78 % . Longer - Term Contracts represented 37 % of revenue . Cash flow from operations was $ 23 million . Free Cash Flow was $ 20.1 million . We have started the planning process for 2022. Our objectives are to grow GAAP Revenue organically in the high teens or better . We expect our Adjusted EBITDA Margins to cross over the 40 % threshold as we continue towards our long term target of 50 % Adjusted EBITDA Margins . We remain very focused on increasing the percentage of our revenues from Longer - Term Contracts . These healthy growth rates are being supported by multiple tailwinds : a healthy IT spending environment , the modernization of the sales and marketing organization through automation and data , a focus on privacy and compliance which drives demand for our first party purchase intent data and our permission - based audience and the re - allocation of marketing budgets from face - to - face events to our data products and online marketing solutions . We believe we are well positioned to take advantage of these large trends . All of the above trends support the continued growth of Priority Engine revenue , which was up 20 % in the quarter . We're very excited about our future prospects for Priority Engine based on our 2021 product enhancements , which culminate in a major release later this month that significantly extends our ability to service both sales and marketing use cases . It's worth noting that Priority Engine was originally designed and optimized for marketing use cases , and we've spent much of the last two years making steady progress on making the data more easily accessible to individual sellers . With this release , we'll roll out a revamped user interface that allows sellers to personalize their experience and view individual important buying process milestones . Marketers will also benefit from the availability of individual prospects identified through our BrightTALK platform for the first time . Our pricing and packaging strategy for Priority Engine with this upcoming release will now allow us to sell separate modules focused separately on sales or marketing use cases , providing a more customized experience and upsell opportunities as we head into 2022. The strength of our Priority Engine offering creates a powerful halo for all of our products . We are seeing record demand for the products we primarily sell on a quarterly basis . Our long - term strategy is to convert these programs to Longer - Term Contracts . Over the past quarter , we continued to make good progress on integrating our recent acquisitions and we are benefitting from cross sale and upsell opportunities . We believe this will continue to help drive growth in 2022. While there is nothing imminent , today we announced that we have opened a $ 75 million line of credit to provide additional financial flexibility . 1 of 12