Company Performance - Ziff Davis reported quarterly earnings of $2.58 per share, exceeding the Zacks Consensus Estimate of $2.57 per share, and up from $2.33 per share a year ago, representing an earnings surprise of 0.39% [1] - The company posted revenues of $412.82 million for the quarter ended December 2024, which missed the Zacks Consensus Estimate by 3.08%, compared to year-ago revenues of $389.89 million [2] - Over the last four quarters, Ziff Davis has surpassed consensus EPS estimates three times but has topped consensus revenue estimates only once [2] Stock Performance - Ziff Davis shares have declined approximately 11.8% since the beginning of the year, while the S&P 500 has gained 2.2% [3] - The current Zacks Rank for Ziff Davis is 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6] Future Outlook - The consensus EPS estimate for the upcoming quarter is $1.38 on revenues of $339.34 million, and for the current fiscal year, it is $7.12 on revenues of $1.5 billion [7] - The outlook for the industry, specifically the Internet - Software sector, is currently in the top 34% of Zacks industries, suggesting a favorable environment for stock performance [8]

Financial Performance - Q4 2024 revenues increased by 5.9% to $412.8 million compared to $389.9 million in Q4 2023[4] - Net income for Q4 2024 rose by 1.0% to $64.1 million, with net income per diluted share increasing to $1.43, up from $1.29 in Q4 2023[4] - Full year 2024 revenues increased by 2.8% to $1.40 billion compared to $1.36 billion in 2023[4] - Net income for the year 2024 was $63.0 million, compared to $41.5 million in 2023, reflecting a 51.8% year-over-year growth[22] - The company reported a net income of $63,047,000 for the year 2024, up from $41,503,000 in 2023, representing a year-over-year increase of 52%[40] - Total revenues for the year ended December 31, 2024, reached $1,401,688,000, an increase of 2.7% from $1,364,028,000 in 2023[37] Cash Flow and Assets - Free cash flow for Q4 2024 was $131.1 million, a 99.0% increase from $65.9 million in Q4 2023[4] - The company reported a net cash provided by operating activities of $390.3 million for the year 2024, compared to $320.0 million in 2023, a growth of 21.8%[22] - Cash and cash equivalents decreased to $505.9 million in 2024 from $737.6 million in 2023, a decline of 31.4%[21] - Total current assets increased to $1.27 billion in 2024, up from $1.19 billion in 2023, representing a growth of 6.8%[18] - Free cash flow for 2024 was $283,680, compared to $211,233 in 2023, indicating a year-over-year increase of approximately 34%[55] - Net cash provided by operating activities for 2024 totaled $390,315, up from $319,962 in 2023[55] Expenses and Costs - Operating costs and expenses for Q4 2024 totaled $334.3 million, up from $309.2 million in Q4 2023, an increase of 8.1%[20] - Share-based compensation expenses increased to $10,282 thousand in Q4 2024 from $7,527 thousand in Q4 2023, reflecting a rise of 36.8%[31] - Acquisition, integration, and other costs totaled $23,386 thousand in Q4 2024, compared to $9,649 thousand in Q4 2023, reflecting a substantial increase of 142.5%[34] - The company incurred acquisition, integration, and other costs of $29,805,000 in 2024, significantly higher than $13,498,000 in 2023, marking a rise of 120%[40] - Direct costs for 2024 were reported at $(199,315), while sales and marketing costs were $(496,866)[49] Segment Performance - A new segment reporting structure has been introduced, now comprising five operating segments: Technology & Shopping, Gaming & Entertainment, Health & Wellness, Connectivity, and Cybersecurity & Martech[11] - The Technology & Shopping segment generated revenues of $132,922 thousand in Q4 2024, a rise from $105,222 thousand in Q4 2023, marking a growth of 26.5%[34] - The Health & Wellness segment reported revenues of $105,671 thousand in Q4 2024, slightly down from $106,449 thousand in Q4 2023, a decrease of 0.73%[34] Goodwill and Impairments - The company incurred a goodwill impairment of $85.3 million in 2024, compared to $56.9 million in 2023[20] - Goodwill impairment recorded in 2024 was $85,273 thousand, compared to $56,850 thousand in 2023, showing an increase of 50.4%[31] - Goodwill impairment for 2024 was $85,273,000, consistent with the previous year's impairment of $56,850,000[40] Future Projections - The company expects 2025 revenue to range between $1.442 billion and $1.502 billion, representing a growth of 2.9% to 7.2%[9] - Adjusted diluted EPS for 2025 is projected to be between $6.64 and $7.28, indicating a growth of 0.3% to 10.0%[9] Equity and Liabilities - Total stockholders' equity decreased to $1.81 billion in 2024 from $1.89 billion in 2023, a decline of 4.2%[18] - Total liabilities rose to $1.89 billion in 2024, compared to $1.58 billion in 2023, marking an increase of 19.7%[18] Other Financial Metrics - Adjusted EBITDA for Q4 2024 increased by 2.5% to $171.8 million, while the adjusted EBITDA margin was 41.6%[4] - Adjusted EBITDA for 2024 was $493,508,000, compared to $482,309,000 in 2023, reflecting a growth of 2.3%[37] - The adjusted net income for 2024 was $294,461,000, compared to $287,362,000 in 2023, showing a slight increase of 2.4%[40] - The loss from equity method investments for 2024 was $11,223,000, compared to a gain of $8,204,000 in 2023, indicating a significant negative shift[40]

Revenue Performance - Total revenues for the three months ended September 30, 2024, were $353.58 million, an increase from $340.99 million in the same period of 2023, representing a growth of 3.5%[102] - Digital Media revenues for the three months ended September 30, 2024, were $283.57 million, up from $267.95 million in the prior year, reflecting a year-over-year increase of 5.8%[102] - Cybersecurity and Martech revenues decreased to $70.04 million for the three months ended September 30, 2024, compared to $73.05 million in the same period of 2023, a decline of 4.1%[102] - Revenues for the three months ended September 30, 2024, were $353.6 million, representing a 3.7% increase from $341.0 million in the prior year; for the nine months, revenues were $988.9 million, up 1.5% from $974.1 million[114] - Digital Media revenues increased by $10.6 million in advertising and performance marketing and $5.6 million in subscription and licensing for the three months ended September 30, 2024[114] - Digital Media revenues for the nine months ended September 30, 2024, were $774.4 million, a 2.6% increase from $755.0 million in the prior year[124] - Cybersecurity and Martech's revenues for the three months ended September 30, 2024, were $70.0 million, a decrease of $3.0 million or 4.1% compared to the prior period[126] - For the nine months ended September 30, 2024, revenues were $214.5 million, down $4.8 million or 2.2% from the previous year, primarily due to lower revenue in the cybersecurity business[126] Customer Metrics - The number of Digital Media customers increased to 2,239 thousand in the three months ended September 30, 2024, up from 1,905 thousand in the same period of 2023, indicating a growth of 17.6%[107] - Total consolidated customers increased to 3,490 thousand in the three months ended September 30, 2024, compared to 3,300 thousand in the prior year, representing a growth of 5.8%[107] - The churn rate for Digital Media was 2.59% for the three months ended September 30, 2024, an improvement from 3.14% in the same period of 2023[107] Financial Performance - Digital Media's operating loss for the three months ended September 30, 2024, was $24.7 million, an increase of 91.7% compared to the prior period's loss of $12.9 million[124] - Operating income for the three months ended September 30, 2024, increased to $14.9 million, up $2.4 million or 19.0% year-over-year[126] - Digital Media's operating costs and expenses for the three months ended September 30, 2024, were $308.3 million, a 9.8% increase from $280.9 million in the prior year[124] - Direct costs decreased by 4.1% to $53.2 million for the three months ended September 30, 2024, and increased by 2.8% to $152.9 million for the nine months[115] - Sales and marketing expenses rose to $127.4 million for the three months ended September 30, 2024, a 2.3% increase from $125.1 million in the prior year[116] - Research, development, and engineering costs decreased by 13.3% to $15.3 million for the three months ended September 30, 2024, and by 6.6% to $49.8 million for the nine months[117] - General, administrative, and other related costs increased by 2.4% to $101.7 million for the three months ended September 30, 2024, but decreased by 2.0% to $296.6 million for the nine months[118] Goodwill and Impairment - The Company recorded a goodwill impairment of approximately $85.3 million for the three and nine months ended September 30, 2024, compared to $56.9 million for the same periods in 2023[119] - As of September 30, 2024, goodwill for three reporting units within the Digital Media segment totaled $498.4 million, with one additional unit at risk of impairment[119] Cash Flow and Investments - Cash, cash equivalents, and investments totaled $538.9 million as of September 30, 2024, down from $905.6 million at the end of 2023[128] - The company had outstanding indebtedness of $863.7 million as of September 30, 2024[131] - Net cash provided by operating activities was $232.1 million for the nine months ended September 30, 2024, an increase of $4.2 million compared to the prior period[133] - Net cash used in investing activities increased by $159.8 million during the nine months ended September 30, 2024, primarily due to higher cash used for business acquisitions[136] - The company repurchased 3.5 million shares at an aggregate cost of $181.8 million during the nine months ended September 30, 2024[139] - The company anticipates that existing cash and cash equivalents, along with cash generated from operations, will be sufficient for its needs for at least the next 12 months[132] Strategic Outlook - The company continues to pursue acquisitions to grow customer bases and expand service offerings, which may impact consolidated results[100] - The Company expects its Digital Media business to improve as it integrates recent acquisitions and continues to expand its platforms[112] - The Company anticipates that acquisitions will remain a key component of its strategy, although the number and significance of future acquisitions may vary due to macroeconomic conditions[112][113] Share-Based Compensation - Total share-based compensation expense for the three months ended September 30, 2024, was $10.2 million, an increase of 49.5% compared to $6.8 million for the same period in 2023[120] - Total share-based compensation expense for the nine months ended September 30, 2024, was $30.6 million, an increase of 25.7% from $24.4 million in the prior period[120]

Financial Data and Key Metrics Changes - Total revenue for Q3 2024 was $353.6 million, reflecting a 3.7% increase from $341 million in Q3 2023 [17] - Adjusted EBITDA for Q3 2024 was $124.7 million, a 9.6% increase compared to $113.7 million in the prior year [17] - Adjusted EBITDA margin improved by 200 basis points to 35.3% in Q3 2024 [18] - Adjusted diluted EPS was $1.64, representing a 9.3% increase year-over-year [18] Business Line Data and Key Metrics Changes - Digital media segment revenue grew nearly 6% and adjusted EBITDA increased over 14% in Q3 2024, marking the best adjusted EBITDA growth since Q3 2021 [6][7] - Tech properties experienced double-digit growth in consumer tech brands, while B2B showed declines [8] - Gaming vertical grew double digits, aided by the acquisition of Gamer Network [8] - Advertising and performance marketing revenue increased by 5.8% in Q3 2024, recovering from a 1.4% decline in the first half of 2024 [19] - Subscription and licensing revenue grew 1.8% in Q3 2024, with nearly 3.5 million customers [21] Market Data and Key Metrics Changes - Advertising revenues were up 5.8%, while subscription and licensing revenues increased by 7.8% in Q3 2024 [9] - Cybersecurity and Martech segments saw a revenue decline of over 4%, but adjusted EBITDA remained flat [9] - The company reported a net advertising and performance marketing revenue retention rate of nearly 92%, up approximately 300 basis points year-over-year [20] Company Strategy and Development Direction - The company aims to leverage its balance sheet and cash flows for acquisitions, having successfully closed the acquisition of CNET [10] - The focus is on adjusted EPS and free cash flow as key metrics for capital allocation [11] - The company is actively engaging in M&A dialogues across various sectors, with a strong market for deal activity anticipated [10][59] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory, expecting high single-digit growth in revenue and adjusted EBITDA for Q4 2024 [26] - The company is optimistic about the advertising business, particularly with the integration of CNET [40] - Management acknowledged challenges in the B2B and cybersecurity sectors but remains focused on improving margins and overall profitability [34][42] Other Important Information - The company reported a year-to-date free cash flow of approximately $153 million, including over $80 million from Q3 2024, a 76% increase compared to Q3 2023 [27] - The company received a silver medal from EcoVadis, placing it among the top 15% of assessed companies [16] Q&A Session Summary Question: Expectations for Q4 and organic growth - Management indicated that Q4 will reflect underlying trends and seasonality in advertising, with expectations for improved organic growth [31][32] Question: Impact of Gen AI on search queries - Management clarified that 10% of queries include AI overviews, which is a small portion but may lead to increased search activity [36] Question: Factors affecting advertising growth in 2025 - Management noted that while there are headwinds in cybersecurity and martech, they remain bullish on the bottom line and overall growth [41][42] Question: EBITDA to free cash flow conversion - Management explained that the conversion rate can fluctuate based on various factors, including working capital improvements [44][45] Question: Insights from AI licensing study - Management emphasized the importance of premium publisher content in training AI models and the need for licensing agreements [50] Question: M&A environment and attractive sectors - Management described the M&A environment as normalizing, with tech and shopping sectors being particularly active [58][59]

THIRD QUARTER 2024 RESULTS November 7, 2024 ©2024 Ziff Davis. All rights reserved. www.ziffdavis.com 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 2024 financial guidance. These forward-looking statements are based on management's current expectations or beliefs as of November 7, 2024 ("Release Date") and are subject to numerous as ...

Core Insights - Ziff Davis reported quarterly earnings of $1.64 per share, exceeding the Zacks Consensus Estimate of $1.48 per share, and showing an increase from $1.50 per share a year ago, resulting in an earnings surprise of 10.81% [1] - The company achieved revenues of $353.58 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 1.70% and increasing from $340.99 million year-over-year [2] - Ziff Davis shares have declined approximately 25.6% year-to-date, contrasting with the S&P 500's gain of 24.3% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $2.78 on revenues of $437.02 million, while the estimate for the current fiscal year is $6.67 on revenues of $1.42 billion [7] - The estimate revisions trend for Ziff Davis is mixed, leading to a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Internet - Software industry, to which Ziff Davis belongs, is currently ranked in the top 25% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Performance - Q3 2024 revenues increased by 3.7% to $353.6 million compared to $341.0 million in Q3 2023[2] - Loss from operations rose to $29.3 million in Q3 2024, up from $13.3 million in Q3 2023, including a goodwill impairment of $85.3 million[3] - Net loss increased to $48.6 million in Q3 2024, compared to $31.0 million in Q3 2023, with net loss per diluted share rising to $1.11 from $0.67[3] - Adjusted EBITDA for Q3 2024 was $124.7 million, a 9.6% increase from $113.7 million in Q3 2023[3] - Total revenues for the three months ended September 30, 2024, were $353,580,000, compared to $340,985,000 for the same period in 2023, representing a growth of approximately 3.5%[15] - The net loss for the three months ended September 30, 2024, was $48,577,000, compared to a net loss of $30,971,000 for the same period in 2023, reflecting a deterioration in performance[19] Cash Flow and Investments - Free cash flow for Q3 2024 was $80.1 million, up 75.8% from $45.6 million in Q3 2023[3] - Ziff Davis ended Q3 2024 with approximately $538.9 million in cash, cash equivalents, and investments after deploying $96.1 million for share repurchases and $154.9 million for acquisitions[3] - Cash flows from operating activities for the nine months ended September 30, 2024, were $232,082,000, slightly up from $227,843,000 in 2023[16] - Net cash used in investing activities for the nine months ended September 30, 2024, was $(264,571,000), compared to $(104,738,000) in 2023, showing a significant increase in cash outflow[16] - Net cash used in financing activities for the nine months ended September 30, 2024, was $(323,096,000), compared to $(116,810,000) in 2023, indicating a substantial increase in financing outflows[16] Guidance and Projections - The company reaffirmed its 2024 revenue guidance range of $1.411 billion to $1.471 billion[6] - Adjusted EBITDA guidance for 2024 is set between $500 million and $521 million[6] - Adjusted diluted EPS for 2024 is expected to be between $6.43 and $6.77[6] Goodwill and Impairments - Goodwill impairment on business for the three months ended September 30, 2024, was $85,273,000, compared to $56,850,000 in 2023, indicating a 50.4% increase[15] - Goodwill impairment for the three months ended September 30, 2024, amounted to $85,273,000, which is consistent with the impairment recorded in the same period of 2023[24] Operating Costs and Expenses - Total operating costs and expenses for the three months ended September 30, 2024, were $382,884,000, an increase from $354,304,000 in 2023, reflecting a rise of about 8%[15] - Share-based compensation expenses increased to $10,161,000 for the three months ended September 30, 2024, compared to $6,774,000 in the same period of 2023, representing a rise of approximately 49.5%[19] - Research, development, and engineering costs for the three months ended September 30, 2024, were $(13,390), showing a focus on innovation and product development[28] - Sales and marketing expenses for the three months ended September 30, 2024, were $(123,188), reflecting ongoing investment in market presence[28] Non-GAAP Measures - Adjusted EBITDA and other non-GAAP financial measures are utilized for financial decision-making, providing insights into the company's operational performance[17] - The adjusted net income for the three months ended September 30, 2024, was $72,061,000, or $1.64 per diluted share, compared to $69,073,000, or $1.50 per diluted share, for the same period in 2023[24] - The total non-GAAP adjustments for the three months ended September 30, 2024, amounted to $60, with significant contributions from share-based compensation and acquisition-related costs[28] - For the nine months ended September 30, 2024, Ziff Davis recorded an adjusted net income of $184,272, with an adjusted effective tax rate of approximately 23.9%[31] Market Segments - The digital media segment generated revenues of $283,554,000 for the three months ended September 30, 2024, while the cybersecurity and martech segment contributed $70,026,000[21] Losses and Challenges - The company reported a loss from equity method investments of $(77) for the three months ended September 30, 2024, indicating challenges in this area[28] - Ziff Davis experienced a loss on investments of $(6,019) for the three months ended September 30, 2023, highlighting market volatility impacts[30]

Revenue Performance - Total revenues for the three months ended June 30, 2024, were $320.8 million, a decrease of 0.7% compared to $326.0 million for the same period in 2023[104]. - Digital Media revenues for the three months ended June 30, 2024, were $251.8 million, slightly down from $252.9 million in the prior year[104]. - Cybersecurity and Martech revenues for the three months ended June 30, 2024, were $69.0 million, down from $73.2 million in the same period last year[104]. - Digital Media revenues for the three months ended June 30, 2024, decreased by $4.7 million, while Cybersecurity and Martech revenues decreased by $4.1 million[115]. - Total revenues for the six months ended June 30, 2024, increased by 0.3% to $635.3 million compared to $633.2 million in the prior period[116]. - Digital Media revenues for the three months ended June 30, 2024, totaled $251,817,000, slightly down from $252,870,000 in the prior year[104]. - Cybersecurity and Martech revenues for the three months ended June 30, 2024, were $68,984,000, down from $73,196,000 in the same period last year[104]. - For the first half of 2024, Digital Media's revenues increased to $490.8 million, up $3.9 million or 0.8% year-over-year, driven by an $8.9 million increase in subscription and licensing revenue[127]. - Cybersecurity and Martech's revenues for Q2 2024 were $69.0 million, a decrease of $4.2 million or 5.8% compared to Q2 2023, mainly due to lower revenue from consumer privacy services[129]. - Cybersecurity and Martech's revenues for the first half of 2024 decreased to $144.4 million, down $1.8 million or 1.2% year-over-year[129]. Customer Metrics - The number of Digital Media customers increased to 2,148 thousand in Q2 2024, up from 1,808 thousand in Q2 2023[108]. - Average quarterly revenue per Digital Media customer decreased to $33.86 in Q2 2024 from $37.74 in Q2 2023[108]. - The churn rate for Digital Media was 3.19% in Q2 2024, an improvement from 3.69% in Q2 2023[108]. - The company reported a net advertising and performance marketing revenue retention rate of 90.5% for the three months ended June 30, 2024, up from 89.8% in the prior year[105]. Expenses and Costs - Direct costs for the three months ended June 30, 2024, increased by 10.9% to $52.6 million, representing 16.4% of revenues[117]. - Sales and marketing expenses for the three months ended June 30, 2024, increased by 4.0% to $124.8 million, accounting for 38.9% of revenues[118]. - Research, development, and engineering costs for the three months ended June 30, 2024, decreased by 5.7% to $16.8 million, representing 5.2% of revenues[119]. - General, administrative, and other related costs for the three months ended June 30, 2024, decreased by 3.8% to $98.1 million, accounting for 30.6% of revenues[120]. - Share-based compensation expense for the three months ended June 30, 2024, totaled $11.6 million, an increase from $9.2 million in the prior period[121]. - Interest expense, net for the three months ended June 30, 2024, was $1.8 million, a decrease of 82.8% compared to $10.5 million in the prior period[122]. - The company’s sales and marketing expenses as a percentage of revenues increased to 38.9% for the three months ended June 30, 2024, compared to 36.8% in the prior year[118]. Income and Taxation - Digital Media operating income was $35.0 million for the three months ended June 30, 2024, a decrease of $1.7 million or 4.6% compared to the prior period[128]. - Cybersecurity and Martech operating income was $11.5 million for the three months ended June 30, 2024, a decrease of $2.0 million or 14.6% compared to the prior period[129]. - Provision for income taxes amounted to $7.0 million for the three months ended June 30, 2024, compared to $6.5 million for the same period in 2023[124]. - The effective tax rate for the three months ended June 30, 2024, was 19.9%, down from 27.2% in the prior year[124]. - The company reported a total non-operating income of $6.5 million for the three months ended June 30, 2024, compared to a loss of $15.2 million in the same period last year[122]. - Income from equity method investment was $8.8 million for the three months ended June 30, 2024, compared to a loss of $0.6 million in the same period last year[125]. Cash and Debt Management - Cash and cash equivalents as of June 30, 2024, were $687.2 million, down from $737.6 million as of December 31, 2023[132]. - Total cash, cash equivalents, and investments were $839.7 million as of June 30, 2024, compared to $905.6 million as of December 31, 2023[132]. - As of June 30, 2024, the Company had outstanding indebtedness of $1.0 billion and total future minimum lease payments of $25.8 million, with approximately $12.0 million due in the next twelve months[136]. - Net cash provided by operating activities for the six months ended June 30, 2024, was $126.1 million, a decrease of $28.9 million compared to $155.0 million in the prior period[138]. - The Company used $83.1 million in investing activities during the six months ended June 30, 2024, an increase of $17.8 million compared to the prior period, primarily due to higher cash used on business acquisitions[140]. - The net cash used in financing activities increased by $27.1 million during the six months ended June 30, 2024, primarily due to increased share repurchases[141]. - The Company’s liability for uncertain tax positions was $37.1 million as of June 30, 2024[136]. Share Repurchase Program - The Company repurchased 1,500,000 shares at an aggregate cost of $84.9 million during the six months ended June 30, 2024, with 3,241,308 shares remaining under the repurchase authorization[143]. - Cumulatively, as of June 30, 2024, the Company repurchased 6,758,692 shares under the 2020 Program at an aggregate cost of $486.7 million[144]. - On August 2, 2024, the Board authorized an increase in the 2020 Program for an additional 5 million shares, raising the total authorization to 15 million shares[144]. - The expiration date of the 2020 Program has been extended from August 6, 2025, to August 2, 2029[144]. - As of August 2, 2024, there are 8,241,308 shares remaining under the 2020 Program[144]. Strategic Outlook - The company continues to pursue acquisitions to grow customer bases and diversify service offerings[102]. - The company faces risks related to economic downturns, supply chain disruptions, and competition in the digital media space[101]. - The company expects continued growth in Digital Media as advertising transactions shift from offline to online, with a focus on improving ad relevance and effectiveness[113]. - The company anticipates continued improvement in its Digital Media business as it integrates recent acquisitions and expands advertising platforms[112]. - The company expects acquisitions to remain a key component of its strategy, although the number and significance may vary due to macroeconomic conditions[113].

August 7, 2024 Exhibit 99.2 SECOND QUARTER 2024 RESULTS ©2024 Ziff Davis. All rights reserved. www.ziffdavis.com 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 2024 Financial Guidance. Such forward-looking statements are subject to numerous assumptions, risks and uncertainties that could cause actual results to differ materially fro ...

Financial Data and Key Metrics Changes - Q2 2024 revenues were $320.8 million, reflecting a 1.6% decline year-over-year from $326 million in Q2 2023 [16] - Adjusted EBITDA for Q2 2024 was $96.3 million, down 9.8% from $106.7 million in the prior year [16] - Adjusted diluted EPS for Q2 2024 was $1.18, compared to $1.27 in Q2 2023 [16] - Year-to-date free cash flow was $72.5 million, with $113 million excluding the impact of TDS [28] Business Line Data and Key Metrics Changes - Digital Media segment revenues were flat in Q2 2024, with Tech Media revenue declining [4] - Cybersecurity and MarTech segment saw a decline of 5.8% in Q2, down from 3.3% growth in Q1 [5] - Advertising and performance marketing revenue declined 2.7% year-over-year, while subscription and licensing revenue grew 0.3% [18][19] Market Data and Key Metrics Changes - The company reported a net advertising and performance marketing revenue retention rate of 90.5% for Q2 2024 [19] - The gaming and entertainment sector showed resilience despite turmoil in the gaming industry [37] Company Strategy and Development Direction - The company is focused on M&A to enhance existing platforms, with recent acquisitions of Gamer Network and CNET [8][10] - The strategy includes capital allocation towards accretive acquisitions and share buybacks, with an increased buyback program [10][26] - The company aims to leverage AI in products to improve user engagement and retention [11][50] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving growth in the second half of 2024 despite Q2 performance being below expectations [4][6] - The company anticipates improved margins and contributions from M&A to support adjusted EPS growth [27][36] - Management noted that the advertising market is mixed, with challenges in B2B tech advertising but positive trends in consumer tech and health [36] Other Important Information - The company has a strong balance sheet with $687 million in cash and cash equivalents as of the end of Q2 2024 [21] - The revolving credit facility was expanded to $350 million, with an extended maturity date [22] Q&A Session Summary Question: Insights on M&A strategy and opportunities - Management indicated optimism about the M&A market, noting that lower valuations and pressure on private equity firms are creating opportunities [30][32] Question: Confidence in growth areas like gaming and health - Management highlighted modest organic improvement and cost control measures as key factors for confidence in growth in these areas [34][35] Question: Impact of CNET acquisition on advertising market - The acquisition is seen as highly strategic, enhancing the company's position in the tech vertical and improving advertising capabilities [41][42] Question: Long-term free cash flow conversion expectations - Management reaffirmed a target of mid-to-high 50s for free cash flow conversion, contingent on performance and market dynamics [44][45] Question: AI's impact on traffic and user engagement - Management noted no significant impact from AI overviews on organic search traffic but sees potential benefits in user engagement from AI tools [48][50]