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Ziff Davis (ZD) FY Conference Transcript
2025-05-14 21:20
Summary of Ziff Davis (ZD) FY Conference Call - May 14, 2025 Company Overview - Ziff Davis has built a portfolio through systematic acquisitions and growth in digital media and internet businesses, focusing on value creation across five vertical categories [4][14] - The company aims for organic growth and growth through acquisitions, with a diversified business model including advertising, subscription, and licensing revenue [4] Financial Performance - Reported a revenue growth of 5% in the quarter, with the Digital Media segment growing 9% [5] - Reaffirmed guidance for mid-single-digit growth across revenue, EBITDA, and EPS for the year [5] - Strong M&A activity expected to continue, with a healthy balance sheet [6] Advertising and Market Trends - Advertising revenues increased by 12% in Q1, with strong performance across tech, shopping, health, and gaming categories [7][11] - Health and wellness sector driven by a strong FDA drug pipeline, while gaming benefits from upcoming console releases [8][9] - Concerns about tariffs affecting the tech and shopping categories, but no immediate signs of impact observed [10][11] Segment Analysis Technology and Shopping - The CNET Group and RetailMeNot segment grew 14% in revenue and 44% in adjusted EBITDA, driven by organic growth and margin expansion [21] - B2B businesses have been a drag on growth but are now profitable [22] Gaming and Entertainment - IGN Entertainment segment grew mid-single digits, with strong advertising growth but some challenges in subscription offerings [26][28] - Anticipated growth from new gaming IP and streaming platforms [30] Health and Wellness - Everyday Health Group showed mid to high single-digit revenue growth and double-digit EBITDA growth, benefiting from a favorable pharma advertising environment [32][34] Connectivity - Ookla segment maintained flat revenue despite a 25% decline in wireless access point sales industry-wide, with expectations for growth as Wi-Fi 7 is introduced [41][42] Cybersecurity and Martech - This segment declined due to tough year-over-year comparisons, but there is optimism for sequential growth throughout the year [44][46] AI and Intellectual Property - Ziff Davis filed a lawsuit against OpenAI for unauthorized use of its content, emphasizing the need for compensation for IP usage [47][49] - 35% of the company's revenues are web traffic-based, with 40% of that from search, indicating a diversified revenue model [51][52] M&A Strategy - The company is focused on tuck-in acquisitions that are synergistic with existing businesses, with a robust pipeline across all segments [63][64] - Historical targets include 20% cash-on-cash returns and maintaining a gross debt to EBITDA ratio of three times [66] Market Outlook - The company is optimistic about returning to organic growth and a consistent M&A cadence, with all segments positioned for potential growth [76][78] - The management believes that the current market valuation does not reflect the company's performance and potential [68][70] Conclusion - Ziff Davis is positioned for growth across its diversified portfolio, with strong financial performance and a proactive approach to M&A and market challenges [80][81]
j2 Global(ZD) - 2025 Q1 - Quarterly Report
2025-05-09 20:36
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]
j2 Global(ZD) - 2025 Q1 - Earnings Call Transcript
2025-05-09 13:32
Financial Data and Key Metrics Changes - Q1 2025 revenues were $328.6 million, reflecting a growth of 4.5% compared to $314.5 million in Q1 2024 [21] - Adjusted EBITDA for Q1 2025 was $100.2 million, slightly down from $100.8 million in the prior year, with an adjusted EBITDA margin of 30.5% [21][22] - Adjusted diluted EPS for Q1 2025 was $1.14, impacted by higher net interest expense and depreciation [22] Business Line Data and Key Metrics Changes - Tech and Shopping segment revenues grew nearly 18%, with adjusted EBITDA increasing nearly 44% [8] - Gaming and Entertainment revenues grew by nearly 4%, with a 7% increase in ad revenue, while subscription revenues were slightly down [9] - Health and Wellness revenues grew over 7%, with adjusted EBITDA growth of over 12% [10] - Connectivity revenues grew by 5%, with subscription and licensing growing by 7% [11] - Cybersecurity and Martech segment declined nearly 11% in revenues, attributed to timing benefits from the previous year [12] Market Data and Key Metrics Changes - Advertising and performance marketing revenue grew by 12.3% compared to the prior period, while subscription and licensing revenues declined by 2% [23] - The company noted strong performance in the advertising markets across tech and shopping, gaming and entertainment, and health and wellness [13] Company Strategy and Development Direction - The company is actively pursuing M&A opportunities, having completed two acquisitions in Q1 and another signed in early Q2 [7][15] - Focus remains on identifying compelling assets within verticals to leverage platforms and technology for value generation [15][16] - The company is committed to capital allocation strategies that include share repurchases and acquisitions to enhance shareholder value [14][26] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the advertising market, with expectations for continued growth despite potential recessionary risks [13][37] - The company reaffirmed its full-year guidance, expecting revenue growth of 5% and adjusted EBITDA growth of 6% at the midpoint [7][27] - Management highlighted the importance of maintaining a robust balance sheet while being active in M&A and share repurchases [25][27] Other Important Information - The company filed a lawsuit against OpenAI to protect its intellectual property and the integrity of journalism [17][18] - Management emphasized the need for a balanced digital ecosystem that respects copyrights and compensates content creators [18] Q&A Session Summary Question: Update on the overall ad market - Management noted strong Q1 performance with ad business growth of over 12%, with positive trends expected to continue [34][35] Question: Priorities for improving connectivity growth - Focus is on the Wi-Fi segment, anticipating strong demand with the rollout of Wi-Fi 7 [38][39] Question: Potential macro impacts on advertising demand - Management indicated low direct impact from tariffs, with optimism in health and wellness and gaming sectors [46][47] Question: Pipeline visibility for the rest of the year - Upfront commitments for pharma advertising were strong, with optimism for both direct-to-consumer and provider sides [56] Question: Update on generative AI impact - Approximately 35% of revenues depend on traffic, with AI overviews increasing but unclear on their overall impact [65][66] Question: Capital allocation and M&A market outlook - The M&A environment is favorable, with ongoing active participation across all divisions [78][82]
j2 Global(ZD) - 2025 Q1 - Earnings Call Transcript
2025-05-09 13:30
Financial Data and Key Metrics Changes - Q1 2025 revenues were $328.6 million, reflecting a growth of 4.5% compared to $314.5 million in Q1 2024 [20] - Adjusted EBITDA for Q1 2025 was $100.2 million, slightly down from $100.8 million in the prior year, with an adjusted EBITDA margin of 30.5% [20][21] - Adjusted diluted EPS for Q1 2025 was $1.14, impacted by higher net interest expenses and depreciation [21] Business Line Data and Key Metrics Changes - Tech and Shopping segment revenues grew nearly 18%, with adjusted EBITDA increasing nearly 44% [8] - Gaming and Entertainment revenues grew by nearly 4%, with a 7% increase in ad revenue, while subscription revenues slightly declined [9] - Health and Wellness segment revenues grew over 7%, with adjusted EBITDA growth exceeding 12% [10] - Connectivity revenues grew by 5%, with subscription and licensing growing by 7% [11] - Cybersecurity and MarTech segment declined nearly 11% due to timing benefits from the previous year [12] Market Data and Key Metrics Changes - Advertising and performance marketing revenue grew by 12.3% compared to the prior period, while subscription and licensing revenues declined by 2% [22] - The company noted strong performance in the advertising markets across tech and shopping, health and wellness, and gaming and entertainment [13] Company Strategy and Development Direction - The company is focused on M&A activity, having completed two acquisitions in Q1 and another signed in early Q2, with a pipeline of opportunities across all segments [7][15] - The strategy includes simplifying B2B product offerings and reducing expenses to improve margins [9] - The company aims to leverage its platforms and technology to identify compelling assets for acquisition [15] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about Q2 growth, reaffirming full-year guidance of 5% revenue growth and 6% adjusted EBITDA growth at the midpoint [7][25] - The company has not experienced notable negative impacts from macroeconomic volatility or tariff discussions to date [25] - Management remains focused on long-term shareholder value rather than short-term quarterly results [27] Other Important Information - The company is actively managing operating costs and capital expenses while continuing share repurchases, having bought back 4.25 million shares over the last four quarters [14][24] - A lawsuit against OpenAI was filed to protect the integrity of journalism and the company's intellectual property rights [16][18] Q&A Session Summary Question: Update on the overall ad market - Management reported strong Q1 performance with ad business growth of over 12%, with positive trends expected to continue [32][33] Question: Priorities for improving connectivity growth - Focus is on the Wi-Fi segment, anticipating strong demand for better wireless networks and the upcoming Wi-Fi 7 deployment [36] Question: Potential macro impacts on advertising demand - Management feels insulated from direct tariff impacts, with optimism in health and wellness and gaming sectors [44][48] Question: Upfront commitments for pharma advertising - Upfront commitments for the year are strong, with optimism for both direct-to-consumer and provider advertising [52][54] Question: Impact of generative AI on business - Approximately 35% of revenues depend on traffic, with AI overviews now accounting for over 20% of top queries [63][66] Question: Capital allocation and M&A market outlook - The M&A environment is favorable, with ongoing active participation across all divisions, and the company is inclined to leverage its position for acquisitions and buybacks [74][80]
Ziff Davis (ZD) Tops Q1 Earnings and Revenue Estimates
ZACKS· 2025-05-09 00:20
Company Performance - Ziff Davis reported quarterly earnings of $1.14 per share, exceeding the Zacks Consensus Estimate of $1.10 per share, but down from $1.27 per share a year ago, representing an earnings surprise of 3.64% [1] - The company posted revenues of $328.64 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 1.58% and up from $314.49 million year-over-year [2] - Over the last four quarters, Ziff Davis has surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [2] Stock Performance - Ziff Davis shares have declined approximately 41.8% since the beginning of the year, in contrast to the S&P 500's decline of 4.3% [3] - The current Zacks Rank for Ziff Davis is 4 (Sell), indicating expectations for the stock to underperform the market in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $1.24 on revenues of $333.38 million, and for the current fiscal year, it is $6.72 on revenues of $1.45 billion [7] - The outlook for the Internet - Software industry is relatively strong, ranking in the top 37% of over 250 Zacks industries, suggesting that stocks in the top 50% outperform those in the bottom 50% by more than 2 to 1 [8]
j2 Global(ZD) - 2025 Q1 - Quarterly Results
2025-05-08 22:41
[Financial Performance](index=1&type=section&id=Financial%20Performance) [First Quarter 2025 Financial Highlights](index=1&type=section&id=FIRST%20QUARTER%202025%20RESULTS) Ziff Davis reported a 4.5% revenue increase to $328.6 million in Q1 2025, with net income up 128.1% to $24.2 million, though Adjusted EBITDA slightly decreased and free cash flow turned negative - CEO Vivek Shah expressed satisfaction with Q1 performance, which surpassed internal targets, citing accelerating revenue growth, a healthy M&A cadence, and an active share buyback program as reasons for optimism for the rest of the year[2](index=2&type=chunk) Q1 2025 vs Q1 2024 Financial Results (in millions, except per share amounts) | Metric | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | **Total Revenues** | **$328.6** | **$314.5** | **4.5%** | | Income from operations | $35.1 | $35.9 | (2.0)% | | **Net income** | **$24.2** | **$10.6** | **128.1%** | | Net income per diluted share | $0.56 | $0.23 | 143.5% | | **Adjusted EBITDA** | **$100.2** | **$100.8** | **(0.6)%** | | Adjusted diluted EPS | $1.14 | $1.27 | (10.2)% | | Net cash provided by operating activities | $20.6 | $75.6 | (72.7)% | | **Free cash flow** | **$(5.0)** | **$47.4** | **(110.6)%** | Q1 2025 Revenue by Segment (in millions) | Segment | Q1 2025 Revenue | Q1 2024 Revenue | % Change | | :--- | :--- | :--- | :--- | | Technology & Shopping | $81.7 | $69.3 | 17.9% | | Gaming & Entertainment | $38.0 | $36.6 | 3.8% | | Health & Wellness | $85.8 | $80.0 | 7.3% | | Connectivity | $55.8 | $53.1 | 5.0% | | Cybersecurity & Martech | $67.3 | $75.5 | (10.8)% | - During Q1 2025, the company deployed approximately **$39.2 million** for acquisitions and **$34.9 million** for share repurchases[5](index=5&type=chunk) [Fiscal Year 2025 Guidance](index=2&type=section&id=ZIFF%20DAVIS%20GUIDANCE) Ziff Davis reaffirmed its full-year 2025 guidance, projecting revenues between $1.44 billion and $1.50 billion, and Adjusted EBITDA between $505 million and $542 million Fiscal Year 2025 Guidance (in millions, except per share data) | Metric | Low Estimate | High Estimate | | :--- | :--- | :--- | | Revenues | $1,442 | $1,502 | | Adjusted EBITDA | $505 | $542 | | Adjusted diluted EPS | $6.64 | $7.28 | - The Adjusted effective tax rate for 2025 is anticipated to be between **23.25%** and **25.25%**[7](index=7&type=chunk) [Consolidated Financial Statements](index=5&type=section&id=Consolidated%20Financial%20Statements) [Condensed Consolidated Balance Sheets](index=5&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) As of March 31, 2025, Ziff Davis reported total assets of $3.52 billion, a decrease from $3.70 billion, primarily due to reduced cash and accounts receivable, while total liabilities also decreased Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $431,007 | $505,880 | | Total current assets | $1,072,319 | $1,272,069 | | **TOTAL ASSETS** | **$3,515,875** | **$3,704,334** | | Total current liabilities | $704,774 | $899,647 | | Long-term debt | $864,829 | $864,282 | | **TOTAL LIABILITIES** | **$1,694,510** | **$1,893,452** | | **TOTAL STOCKHOLDERS' EQUITY** | **$1,821,365** | **$1,810,882** | [Condensed Consolidated Statements of Operations](index=6&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) Total revenues grew to $328.6 million in Q1 2025, with net income significantly increasing to $24.2 million, positively impacted by an equity method investment and absence of prior year's investment loss Statement of Operations Summary (in thousands) | Line Item | Three months ended Mar 31, 2025 | Three months ended Mar 31, 2024 | | :--- | :--- | :--- | | Total revenues | $328,636 | $314,485 | | Total operating costs and expenses | $293,506 | $278,624 | | Income from operations | $35,130 | $35,861 | | Income before income tax expense | $26,196 | $19,503 | | **Net income** | **$24,239** | **$10,627** | | **Diluted EPS** | **$0.56** | **$0.23** | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) Net cash from operating activities significantly decreased to $20.6 million in Q1 2025, leading to negative free cash flow, primarily due to working capital changes Cash Flow Summary (in thousands) | Cash Flow Activity | Three months ended Mar 31, 2025 | Three months ended Mar 31, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $20,613 | $75,558 | | Net cash used in investing activities | $(64,829) | $(71,481) | | Net cash used in financing activities | $(35,006) | $(6,311) | | **Net change in cash and cash equivalents** | **$(74,873)** | **$(2,833)** | | Cash and cash equivalents at end of period | $431,007 | $734,779 | [Non-GAAP Financial Measures and Reconciliations](index=8&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliations) [Explanation of Non-GAAP Financial Measures](index=8&type=section&id=Non-GAAP%20Financial%20Measures) The company uses non-GAAP measures like Adjusted EBITDA, Adjusted net income, and Free cash flow to provide insights into core business performance by excluding non-cash or non-recurring items - The company uses non-GAAP measures for internal financial and operational decision-making, period-to-period comparisons, and determining annual incentive compensation for executives[21](index=21&type=chunk) - Key non-GAAP measures are defined as follows: - **Adjusted EBITDA:** Net income adjusted for items like interest, taxes, D&A, share-based compensation, and acquisition costs - **Adjusted net income:** Net income adjusted for items like amortization, share-based compensation, and acquisition costs - **Free cash flow:** Net cash from operating activities less purchases of property and equipment[24](index=24&type=chunk)[25](index=25&type=chunk)[26](index=26&type=chunk) [Reconciliation of GAAP to Non-GAAP Measures](index=10&type=section&id=RECONCILIATION%20OF%20GAAP%20TO%20NON-GAAP%20FINANCIAL%20MEASURES) This section details reconciliations from GAAP to non-GAAP metrics, adjusting for items like depreciation, amortization, share-based compensation, and acquisition costs to bridge Net Income to Adjusted EBITDA and Adjusted Net Income, and operating cash flow to Free Cash Flow [Reconciliation of Net Income to Adjusted EBITDA](index=10&type=section&id=Reconciliation%20of%20Net%20income%20to%20Adjusted%20EBITDA) For Q1 2025, Net Income of $24.2 million was reconciled to Adjusted EBITDA of $100.2 million, with major adjustments including depreciation, amortization, and share-based compensation, offset by equity method investment income Reconciliation of Net Income to Adjusted EBITDA (in thousands) | Description | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Net income** | **$24,239** | **$10,627** | | Depreciation and amortization | $55,832 | $48,453 | | Share-based compensation | $9,752 | $8,872 | | (Income) loss from equity method investments, net of tax | $(6,630) | $645 | | Loss on investment, net | — | $10,705 | | Other adjustments | $17,585 | $21,159 | | **Adjusted EBITDA** | **$100,178** | **$100,751** | Q1 2025 Adjusted EBITDA by Segment (in thousands) | Segment | Revenues | Adjusted EBITDA | | :--- | :--- | :--- | | Technology & Shopping | $81,690 | $21,006 | | Gaming & Entertainment | $38,026 | $12,146 | | Health & Wellness | $85,786 | $29,355 | | Connectivity | $55,820 | $28,059 | | Cybersecurity & Martech | $67,314 | $22,178 | | Corporate | — | $(12,566) | | **Total** | **$328,636** | **$100,178** | [Reconciliation of Net Income to Adjusted Net Income](index=12&type=section&id=Reconciliation%20of%20Net%20income%20to%20Adjusted%20net%20income) GAAP Net Income of $24.2 million ($0.56 per diluted share) was adjusted to a non-GAAP Adjusted Net Income of $48.9 million ($1.14 per diluted share) for Q1 2025, primarily by adding back amortization and share-based compensation Reconciliation of Net Income to Adjusted Net Income (in thousands, except per share) | Description | Q1 2025 | Per diluted share | Q1 2024 | Per diluted share | | :--- | :--- | :--- | :--- | :--- | | **Net income** | **$24,239** | **$0.56** | **$10,627** | **$0.23** | | Amortization | $21,868 | $0.51 | $20,085 | $0.44 | | Share-based compensation | $9,816 | $0.23 | $7,786 | $0.17 | | (Income) loss from equity method investment, net of tax | $(6,630) | $(0.16) | $645 | $0.01 | | Other adjustments | $(353) | $(0.01) | $19,329 | $0.42 | | **Adjusted net income** | **$48,940** | **$1.14** | **$58,472** | **$1.27** | [Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow](index=15&type=section&id=Reconciliation%20of%20Net%20cash%20provided%20by%20operating%20activities%20to%20Free%20cash%20flow) In Q1 2025, net cash from operating activities of $20.6 million resulted in a negative Free Cash Flow of $(5.0) million after accounting for property and equipment purchases, a significant decline from Q1 2024 Free Cash Flow Reconciliation (in thousands) | Description | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $20,613 | $75,558 | | Less: Purchases of property and equipment | $(25,619) | $(28,129) | | **Free cash flow** | **$(5,006)** | **$47,429** |
j2 Global(ZD) - 2025 Q1 - Earnings Call Presentation
2025-05-08 22:16
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]
Is Ziff Davis (ZD) a Great Value Stock Right Now?
ZACKS· 2025-03-20 14:41
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].
RetailMeNot's Spring Savecation Is Back: Score Unbeatable Travel Deals & Cash Back from Top Brands for Your Next Getaway, March 6-10
Prnewswire· 2025-03-06 13:00
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]
j2 Global(ZD) - 2024 Q4 - Annual Report
2025-02-25 21:55
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].