Financial Performance - Q1 2025 - Ziff Davis' Q1 2025 Adjusted EBITDA was $100.178 million[78], compared to $100.751 million in Q1 2024[78] - The company's Q1 2025 net income was $24.239 million[78], a significant increase from $10.627 million in Q1 2024[78] - Adjusted diluted EPS for Q1 2025 was $1.14[85], while in Q1 2024 it was $1.27[85] - Free cash flow for Q1 2025 was negative $5.006 million[88], compared to $47.429 million in Q1 2024[88] Revenue Streams - Q1 2025 - Technology & Shopping segment revenues were $81.690 million[81] - Gaming & Entertainment segment revenues were $38.026 million[81] - Health & Wellness segment revenues were $85.786 million[81] - Connectivity segment revenues were $55.820 million[81] - Cybersecurity & Martech segment revenues were $67.314 million[81] Financial Guidance - 2025 - Ziff Davis reaffirms its full-year 2025 revenue guidance, projecting between $1.442 billion and $1.502 billion[63] - The company anticipates Adjusted EBITDA for 2025 to range from $505 million to $542 million[63] - Adjusted diluted EPS for 2025 is projected to be between $6.64 and $7.28[63]

Core Viewpoint - The article emphasizes the importance of value investing and highlights Ziff Davis (ZD) as a strong value stock based on its favorable valuation metrics and earnings outlook [2][3][6]. Group 1: Value Investing Strategy - Value investing focuses on identifying companies that are undervalued by the market, relying on traditional analysis of key valuation metrics [2]. - Zacks has developed a Style Scores system to identify stocks with specific traits, particularly in the "Value" category [3]. Group 2: Ziff Davis Valuation Metrics - Ziff Davis has a Zacks Rank of 2 (Buy) and an A grade for Value, indicating it is among the strongest value stocks currently [3]. - The P/S ratio for ZD is 1.28, significantly lower than the industry average of 3.73, suggesting it is undervalued [4]. - ZD's P/CF ratio is 5.13, compared to the industry's average of 13.75, further indicating its undervaluation [5]. - Over the past 12 months, ZD's P/CF has fluctuated between 4.80 and 9.34, with a median of 6.64, reinforcing its solid cash outlook [5]. Group 3: Earnings Outlook - The combination of ZD's strong valuation metrics and positive earnings outlook positions it as an impressive value stock at present [6].

Core Insights - RetailMeNot is launching its Spring Savecation event from March 6-10, 2025, offering exclusive travel deals and cash back on various travel-related purchases [1][7] - The event features participation from top retailers such as Away, Expedia, Ray-Ban, H&M, Sephora, and Viator, providing a wide range of discounts on travel essentials [1][7] - A new feature this year includes a partnership with Viator to offer a trip package to Las Vegas, including concert tickets to see Coldplay, for one lucky winner [3][7] Event Details - Spring Savecation allows shoppers to stack cash back offers with promo codes from over 3,800 brands, simplifying the savings process for travelers [2] - The event aims to help travelers save money as 54% of them plan to research and book trips by the end of March, indicating a proactive approach to travel planning [4] - Shoppers can access deals through the RetailMeNot website, app, or browser extension, with additional giveaways available from March 6-20 [5] Discounts and Offers - Specific offers include 20% off on Away products, 20% cash back on Booking.com, and various cash back percentages from retailers like CVS, Expedia, and Sephora [8] - RetailMeNot's Spring Savecation is positioned as a significant opportunity for consumers to save on travel expenses amid rising prices [4][7]

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].

Financial Data and Key Metrics Changes - In Q4 2024, total revenue was $412.8 million, reflecting a 5.9% increase from $389.9 million in Q4 2023 [30] - Adjusted EBITDA for Q4 2024 was $171.8 million, a 2.5% growth compared to $167.6 million in the prior year [30] - Adjusted diluted EPS for Q4 2024 increased by 10.7% to $2.58 from the previous year [31] - For the fiscal year 2024, total revenue increased by 2.8% to $1,401.7 million, and adjusted EBITDA grew by 2.3% to $493.5 million [32] Business Line Data and Key Metrics Changes - The Tech & Shopping segment returned to nearly 10% growth in 2024 after a decline of 25% over the previous two years [16] - Gaming & Entertainment has been a mid-single-digit grower for several years, with strong potential for scaling through acquisitions [17] - Health & Wellness and Connectivity segments experienced slow to nominal growth in 2024, but are expected to return to robust growth rates [18] - Advertising and performance marketing revenue grew by 10.6% in Q4 2024, while subscription and licensing revenue grew approximately 1% [37][39] Market Data and Key Metrics Changes - The company reported a net advertising revenue retention rate of approximately 92% for Q4 2024, a significant improvement from the previous year [38] - The average quarterly revenue per advertiser exceeded $135,000 in Q4 2024, indicating strong advertiser engagement [38] - Total subscription and licensing customers increased to 3.65 million, with an average quarterly revenue per customer of $40.44 [40] Company Strategy and Development Direction - The company is transitioning from two to five reportable segments to provide better transparency and align with its strategy [11] - The new segments include Technology & Shopping, Gaming & Entertainment, Health & Wellness, and Connectivity, with a focus on profitability and growth [12][13] - The company plans to maintain an active capital allocation strategy, including M&A opportunities and stock repurchases [45] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2025, expecting revenue growth to accelerate from 2.8% in 2024 to a midpoint of 5% [11] - The company anticipates improved performance in Tech & Shopping and Health & Wellness, alongside continued growth in Gaming & Entertainment and Connectivity [47] - Management acknowledged macroeconomic factors but noted a benign environment in 2024, with expectations for stability in 2025 [70] Other Important Information - The company achieved a free cash flow of over $283 million in 2024, with Q4 2024 free cash flow nearly doubling compared to Q4 2023 [55] - The company has significant leverage capacity, with gross leverage at 1.8 times trailing twelve months adjusted EBITDA [41] Q&A Session Summary Question: Insights on the macro environment and advertising growth - Management noted a strong Q4 for advertising growth, with a planned reduction in B2B revenue impacting overall growth rates [64] - The company expects mid-single-digit ad growth in 2025, with strong performance anticipated in Gaming & Entertainment and Health & Wellness [66] Question: Capital allocation and M&A focus - Management highlighted a healthy M&A environment in 2024, with a pipeline of active deals across all segments [76] - The company is focused on finding attractive acquisition opportunities, particularly in digital media [80] Question: Health & Wellness business outlook - Management expressed confidence in the Health & Wellness segment, anticipating a return to historic growth rates in 2025 despite recent challenges [105] - The company sees opportunities for tuck-in acquisitions to broaden its portfolio in this area [102]

Financial Data and Key Metrics Changes - In Q4 2024, total revenue was $412.8 million, reflecting a growth of 5.9% compared to $389.9 million in Q4 2023 [30] - Adjusted EBITDA for Q4 2024 was $171.8 million, a 2.5% increase from $167.6 million in the prior year [30] - Adjusted diluted EPS for Q4 2024 was $2.58, representing a 10.7% increase compared to Q4 2023 [31] - For the fiscal year 2024, total revenue increased by 2.8% to $1,401.7 million, and adjusted EBITDA grew by 2.3% to $493.5 million [32] Business Line Data and Key Metrics Changes - The Tech & Shopping segment returned to nearly 10% growth in 2024 after a decline of 25% over the previous two years [16] - Gaming & Entertainment has been a mid-single-digit grower for several years, with good growth expected to continue [17] - Health & Wellness and Connectivity segments experienced slow to nominal growth in 2024, but are expected to return to robust growth rates [18] - Advertising and performance marketing revenue grew by 10.6% in Q4 2024, while subscription and licensing revenue grew approximately 1% [37][39] Market Data and Key Metrics Changes - The company reported a net advertising revenue retention rate of approximately 92% for Q4 2024, a significant improvement from the previous year [38] - The average quarterly revenue per advertiser exceeded $135,000 in Q4 2024, significantly higher than the comparable Q4 2023 metric [38] - Total subscription and licensing customers increased to 3.65 million, with an average quarterly revenue per customer of $40.44 [40] Company Strategy and Development Direction - The company is transitioning from two to five reportable segments to provide greater transparency into business performance [11] - The new segments include Technology & Shopping, Gaming & Entertainment, Health & Wellness, and Connectivity, with a focus on profitability and growth [12][13] - The company plans to maintain an active capital allocation strategy, with a focus on M&A opportunities and stock repurchases [45][81] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2025, expecting revenue growth to accelerate from 2.8% in 2024 to a midpoint of 5% [11] - The company anticipates improved performance in Tech & Shopping and Health & Wellness segments, alongside continued growth in Gaming & Entertainment and Connectivity [47] - Management acknowledged macroeconomic factors but noted a benign environment in 2024, with expectations for stability in 2025 [70] Other Important Information - The company reported a free cash flow of over $283 million for 2024, with Q4 2024 free cash flow nearly doubling compared to Q4 2023 [55] - The company has significant leverage capacity, with gross leverage at 1.8 times trailing twelve months adjusted EBITDA [41] Q&A Session Summary Question: Insights on the macro environment and advertising growth - Management noted a strong Q4 for advertising growth, with expectations for mid-single-digit growth in 2025, despite planned reductions in B2B revenue [60][64] Question: Capital allocation and M&A focus - Management confirmed an active M&A pipeline and a focus on leveraging cash and borrowing capacity for potential acquisitions [73][81] Question: Health & Wellness business outlook - Management expressed confidence in the Health & Wellness segment, anticipating a return to historic growth rates in 2025 despite current challenges [100][105] Question: Updates on licensing and AI impacts - Management emphasized the importance of fair licensing agreements and noted that AI overviews have not significantly impacted click-through rates [89][91]

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]