Ziff Davis (ZD) FY Conference May 14, 2025 04:20 PM ET Speaker0 Alright. Good afternoon, everyone. Welcome to day two afternoon of the JPMorgan conference. Corey Carpenter, Internet analyst here. Happy to have Ziff Davis, CEO Vivek Shah and CFO Brett Richter with me today. Thank you both for joining. Speaker1 That's great to be here. Speaker0 So for those who haven't followed the stories closely, Vivek, I think to start, maybe if you could level set just what the Ziff Davis portfolio looks like today. Speak ...

Revenue Growth - Total revenues for the three months ended March 31, 2025, were $328.636 million, an increase from $314.485 million in the same period of 2024, representing a growth of approximately 4.0%[155] - Revenues for the three months ended March 31, 2025, were $328.6 million, a 4.5% increase from $314.5 million in the same period of 2024[174] - Advertising and performance marketing revenue increased by $19.2 million, primarily driven by a $13.6 million increase in the Technology & Shopping segment[175] - Technology & Shopping's revenues increased by 17.9% to $81.7 million for the three months ended March 31, 2025, driven by a $13.6 million rise in advertising and performance marketing revenues[191] - Health & Wellness's revenues grew by 7.3% to $85.8 million, with a notable $4.5 million increase in advertising and performance marketing revenues[198] - Connectivity's revenues increased by 5.0% to $55.8 million, mainly due to a $3.4 million rise in subscription and licensing revenues[200] - Cybersecurity & Martech's revenues decreased by 10.8% to $67.3 million, primarily due to a $6.1 million drop in subscription and licensing revenue[203] Customer Metrics - The Technology & Shopping segment generated $81.690 million in revenues for Q1 2025, up from $69.267 million in Q1 2024, reflecting a growth of about 18.5%[155] - The Health & Wellness segment reported revenues of $85.786 million for Q1 2025, compared to $79.978 million in Q1 2024, marking an increase of approximately 7.3%[155] - The number of customers in the Gaming & Entertainment segment increased to 531,000 in Q1 2025 from 451,000 in Q1 2024, indicating a growth of about 17.7%[164] - The average quarterly revenue per customer in the Cybersecurity & Martech segment decreased to $53.85 in Q1 2025 from $57.79 in Q1 2024, a decline of approximately 4.0%[164] - The average revenue per customer in the Health & Wellness segment was $7.20 in Q1 2025, a slight decrease from $7.41 in Q1 2024[164] - The total number of customers in the Health & Wellness segment decreased to 1,820,000 in Q1 2025 from 1,564,000 in Q1 2024, reflecting a growth of about 16.4%[164] Expenses and Costs - Direct costs for the three months ended March 31, 2025, were $47.2 million, representing 14.4% of revenues, a slight decrease from 14.6% in 2024[176] - Sales and marketing expenses rose to $127.7 million, accounting for 38.9% of revenues, up from 37.2% in the prior year[177] - Research, development, and engineering costs decreased by 10.7% to $15.9 million, representing 4.8% of revenues[178] - General, administrative, and other related costs decreased by 5.3% to $46.9 million, accounting for 14.3% of revenues[179] - Depreciation and amortization expenses increased by 15.2% to $55.8 million, representing 17.0% of revenues[180] - Interest expense, net increased by 246.6% to $6.1 million compared to $1.8 million in the prior year[181] Income and Taxation - Income from equity method investment was $6.6 million for the three months ended March 31, 2025, compared to a loss of $0.6 million in the same period of 2024[189] - The effective tax rate for the three months ended March 31, 2025, was 32.8%, down from 42.2% in the prior year[186] Cash Flow and Indebtedness - Cash and cash equivalents decreased to $431.0 million as of March 31, 2025, down from $505.9 million at the end of 2024[207] - Net cash provided by operating activities fell by $54.9 million to $20.6 million for the three months ended March 31, 2025, primarily due to significant working capital usage[215] - The company had outstanding indebtedness of $864.8 million as of March 31, 2025[212] - Net cash provided by operating activities decreased by $54.9 million during Q1 2025, primarily due to significant working capital usage by TDS Gift Cards, which had a negative impact of $(84.0) million[215] Share Repurchase Program - As of March 31, 2025, a total of 9,508,692 shares have been repurchased under the 2020 Program at an aggregate cost of $614.5 million[219] - The Board authorized an increase in the share repurchase program by an additional 5 million shares, raising the total authorization to 15 million shares[218]

Ziff Davis (ZD) Q1 2025 Earnings Call May 09, 2025 08:30 AM ET Company Participants Bret Richter - CFOVivek Shah - CEO, President & DirectorAaron Samuels - Equity Research AssociateRishi Jaluria - Managing DirectorCory Carpenter - Internet Equity ResearchYgal Arounian - Director - Internet Equity ResearchRobert Coolbrith - Vice President, Internet Equity Research Conference Call Participants Ross Sandler - Analyst Operator Good day, ladies and gentlemen, and welcome to the Ziff Davis First Quarter twenty tw ...

Ziff Davis (ZD) Q1 2025 Earnings Call May 09, 2025 08:30 AM ET Speaker0 Good day, ladies and gentlemen, and welcome to the Ziff Davis First Quarter twenty twenty five Earnings Conference Call. My name is Paul, and I will be the operator assisting you today. At this time, all participants are in a listen only mode. A question and answer session will follow the formal presentation. On this call will be Vivek Shah, CEO of Ziff Davis and Brett Richter, Chief Financial Officer of Ziff Davis. I will now turn the ...

Ziff Davis (ZD) came out with quarterly earnings of $1.14 per share, beating the Zacks Consensus Estimate of $1.10 per share. This compares to earnings of $1.27 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 3.64%. A quarter ago, it was expected that this internet and cloud services company would post earnings of $2.57 per share when it actually produced earnings of $2.58, delivering a surprise of 0.39%.Over the last four qua ...

Exhibit 99.1 Ziff Davis Reports First Quarter 2025 Financial Results and Reaffirms 2025 Guidance NEW YORK, NY -- Ziff Davis, Inc. (NASDAQ: ZD) ("Ziff Davis" or "the Company") today reported unaudited financial results for the first quarter ended March 31, 2025. "We are pleased with our overall first quarter performance, which surpassed our internal targets," said Vivek Shah, Chief Executive Officer of Ziff Davis. "The combination of accelerating revenue growth, a healthy M&A cadence, and our active share bu ...

©2025 Ziff Davis. All rights reserved. www.ziffdavis.com FIRST QUARTER 2025 RESULTS May 8, 2025 Safe Harbor for Forward-looking Statements Certain statements in this presentation are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, particularly those regarding our 2025 financial guidance. These forward-looking statements are based on management's current expectations or beliefs as of May 8, 2025 ("Release Date") and are subject to numerous assumptions, ...

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on ke ...

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Acquisitions and Growth Strategy - Ziff Davis has deployed approximately $3.3 billion on more than 90 acquisitions globally from 2012 through 2024[16]. - The majority of acquisitions by deal count since 2012 have been tuck-ins, while capital allocation between tuck-ins and platform acquisitions has been more balanced[17]. - The company has made more than 90 acquisitions between 2012 and 2024, including four during 2024[86]. - The company plans to continue making acquisitions to enhance growth and expand its geographic presence[111]. Revenue Generation - The company's consolidated revenues are primarily generated from five lines of business: Technology & Shopping, Gaming & Entertainment, Health & Wellness, Connectivity, and Cybersecurity & Martech[18]. - Advertising and performance marketing revenues are driven by online display and video advertising on owned and third-party sites[20]. - Subscription and licensing revenues are generated from cloud-based services, including the Lose It! weight loss app and Humble Bundle's digital subscriptions[21]. - A substantial portion of revenue in the Digital Media Businesses is derived from short-term advertising arrangements, which are subject to fluctuations due to various external factors[115]. - The ability to demonstrate a meaningful return on investment (ROI) for advertising campaigns is critical for revenue growth in Digital Media Businesses[117]. Business Segments and Operations - The company operates five reportable segments: Technology & Shopping, Gaming & Entertainment, Health & Wellness, Connectivity, and Cybersecurity & Martech[84]. - The Gaming & Entertainment platform reaches over 440 million monthly users across 16 digital properties, engaging with 85 million fans on social media[34]. - Everyday Health, the flagship brand of the Health & Wellness platform, features medically reviewed content to inspire active health management[40]. - The Health eCareers business connects healthcare professionals with job opportunities across the United States[43]. - The VIPRE Security Group offers cloud-based SaaS services including endpoint and email security, security awareness training, and VPN solutions[55]. Employee and Diversity Initiatives - As of December 31, 2024, the company had approximately 3,800 employees, with 56% based in the U.S. and 44% non-U.S. based[85]. - In 2024, 28% of new hires in the U.S. were people of color, and 50% were women, reflecting the company's commitment to diversity[92]. - The company has provided comprehensive health insurance coverage, covering 83% of health insurance premiums for U.S. employees over the past three years[94]. - The company supports employees with 16 hours of fully paid Volunteer Time Off annually and has expanded its Employee Assistance Fund to support 99% of employees across 14 countries[95]. - The company emphasizes the importance of employee compensation and benefits to attract and retain critical talent[93]. Risks and Challenges - The company faces significant competition in the Technology & Shopping, Gaming & Entertainment, and Health & Wellness spaces from various diversified internet and digital media companies[64]. - The company faces significant risks associated with mergers and acquisitions, including potential difficulties in integration and increased debt service requirements[113]. - The company faces risks related to system failures, security breaches, and unauthorized use of content, which could impact operations[105]. - The company is exposed to risks from international operations, including currency fluctuations and compliance with various laws and regulations[108]. - Weakened global and U.S. economic conditions may lead to decreased usage of services, reduced customer retention rates, and a decline in revenues or revenue growth rates[131]. Compliance and Regulatory Issues - The company is subject to various domestic and international laws and regulations that could increase compliance costs and limit business practices[178]. - Compliance with evolving cybersecurity, privacy, and data protection laws may impose conflicting obligations and affect business operations[192]. - The company faces potential liabilities and penalties for non-compliance with laws such as the Telephone Consumer Protection Act (TCPA), which could materially affect operations[187]. - The Everyday Health Group business may be subject to additional oversight from various regulatory bodies, impacting operational costs and compliance[190]. - Changes in healthcare industry spending could adversely impact the company's advertising and sponsorship revenues derived from healthcare clients[214]. Financial Performance and Reporting - Research, development, and engineering expenditures were $67.4 million, $68.9 million, and $74.1 million for the fiscal years ended December 31, 2024, 2023, and 2022, respectively[76]. - The company has a significant level of indebtedness, which could adversely affect financial flexibility and competitive position[108]. - The company acknowledges the risk of failing to meet publicly announced guidance, which could lead to a decline in the price of its securities[175]. - Future performance guidance is based on management's estimates and is subject to significant uncertainties, including macroeconomic factors like inflation and interest rates[175]. Data Privacy and Security - The company relies on secure processing and storage of sensitive data, with potential liabilities arising from system failures or breaches[121]. - The company has established procedures to safeguard health-related information, which is subject to significant privacy concerns and regulations[209]. - Non-compliance with HIPAA and related regulations could expose the company to civil and criminal penalties, affecting demand for its products[212]. - The company is subject to Payment Card Industry data security standards, and failure to comply could result in fines or restrictions on accepting credit cards[148]. - The evolving legal framework surrounding generative AI technologies may impact the company's ability to protect its content and intellectual property[125].