Operator: Next question is from the line of Kunal Madhukar with UBS.
Kunal Madhukar: A couple, if I could. One is on the permissioned audience. So what percentage of your traffic in any given month is permissioned audience? And how much of the permissioned audience have you kind of maybe potentially lost because of all the layoffs? That’s one. Second is with regard to the guide, I wanted to understand seasonality and what’s going into your guide in terms of the 1Q that you’ve done exquisitely and the 4Q. What are the q-over-q trends in revenue that you’re kind of anticipating?
Mike Cotoia: Okay. I’m going to talk on the permission-based audience side. I would reflect that to our organic traffic. And so we saw an increase of 14% year-over-year of organic traffic, Kunal. And that’s actually coming off a high-water mark for ’22, Q4 ’22 where we saw 51% growth in the previous year. So in terms of permission-based audience, whenever we run a program for our customers in terms of lead gen or delivering prospect-level intelligence, 100% of our audience is permission-based. In terms of the layoffs, we’re seeing the layoffs more at the vendor side, not necessarily at the buying team side. So the announcement that you see continuously throughout 2023 and even into Q1 of 2024, tech vendors did a lot of layoffs around sales and marketing because of their numbers and the demand that they have and that doesn’t really impact what we see in terms of the traffic on a permission-based audience.
On your second question in terms of seasonality, let me go back to historically what we see, and you can go back into our financials for the last 16 years, 17 years of being public, is that Q1 is typically the smallest revenue quarter. Vendors are not done finalizing their budgets. A lot of the vendors are year-end, are December year-end. So budgets might not get finalized until February or March. And so in terms of their world, that’s typically the lowest revenue quarter. In Q2, it ramps up. You see a lot of product releases and updates being presented by customers. You’ll see them at more trade shows in April and May. Q3 levels off with Q2, typically, you have some of the summer months, especially in Europe, where people are taking vacations.
And then Q4 is typically our largest revenue quarter, both for us, TechTarget, but that directly aligns the enterprise tech market as well. So we’re starting to see some signs where that’s coming back slowly in terms of those patterns, and that’s what we’re focused on in terms of our investments and the opportunity to get back to.
Operator: Next question is from the line of Justin Patterson with KeyBanc.
Justin Patterson: Two if I can. First, just going back to guidance. When you think about just kind of the bit of recovery over the course of the year, is that driven primarily by customer growth within there? Are you making some assumptions in terms of just pricing impacts around priority engine and the rest? So that’s question number one. And then question number two, just philosophically, the product portfolio you have today is very different than what you’ve had in the past coming out of downturns, whether it’s ESG or even just the BrightTALK asset. So if you kind of look at the TechTarget that exists today, how do you think an enterprise recovery might differ today versus what you’ve seen in the past? Thanks.
Mike Cotoia: Great. Justin, I’m going to start with your second question first because you bring up a good point. The product portfolio today is much different than it was 3 years ago, 5 years ago, even 2 years ago. And that’s been part of our strategic road map. It’s very important and what we’ve been very conscious about is making sure whether it’s through our organic capabilities and launches on our product side or through acquisitions. We want to be the premier provider to help our customers with their end-to-end go-to-market strategy. So when the recovery comes back, you’re going to have customers that are going to increase their demand all around content market. They need really relevant content to talk about the technical or the economic validation and positioning within the market to engage with the right buyers.
So now getting into that end-to-end go-to-market strategy earlier with not only the ESG capabilities but the BrightTALK capabilities through multimedia format, making sure we can do this through webinars. We can do this through PDF. We can do this through infographics to make sure that we’re helping our customers earlier in their go-to-market stage, then being able to take that content and put those into very effective programs that will be delivered and put in front of prospect and buying teams that we know who they are. We know their permission base. We know everything that they’re looking at and then being able to capture all that intent to deliver both on the sales and the marketing organizations to help them prioritize not only accounts but the individual prospects within those accounts.
So combining that together and then being able to plug into the health care vertical with Xtelligent and create additional peripheral content, that’s been really important for us and that’s a big focus. So when you have an opportunity to play in the whole end-to-end go-to-market strategy for a vendor, you put yourself in a really good position. In terms of your first question, how we see the modest growth, I think it’s a combination. So like we reported, the number of customer count was done and that reflected in terms pretty close to the decline in revenue for this year. We started seeing the overall revenue per customer level up. It was actually up a little bit. And I think it’s a combination between, yes, there will be some customers that are coming back to net new.
