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j2 Global(ZD) - 2024 Q2 - Quarterly Results
2024-08-08 00:38
Exhibit 99.1 Ziff Davis Reports Second Quarter 2024 Financial Results and Reaffirms 2024 Guidance NEW YORK, NY -- Ziff Davis, Inc. (NASDAQ: ZD) ("Ziff Davis" or "the Company") today reported unaudited financial results for the second quarter ended June 30, 2024. "Our recent acquisition activity gives us confidence that we are back on the path to steady and compounding growth," said Vivek Shah, Chief Executive Officer of Ziff Davis. "We are prepared to continue to act with conviction and decisiveness on accr ...
Ziff Davis (ZD) Q2 Earnings and Revenues Lag Estimates
ZACKS· 2024-08-08 00:21
Ziff Davis (ZD) came out with quarterly earnings of $1.18 per share, missing the Zacks Consensus Estimate of $1.27 per share. This compares to earnings of $1.27 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of -7.09%. A quarter ago, it was expected that this internet and cloud services company would post earnings of $1.14 per share when it actually produced earnings of $1.27, delivering a surprise of 11.40%. Over the last four ...
j2 Global(ZD) - 2024 Q1 - Quarterly Report
2024-05-09 20:39
Revenue Performance - Total revenues for the three months ended March 31, 2024, were $314.485 million, representing a 2.4% increase from $307.142 million in the same period of 2023[163]. - Digital Media revenues totaled $239.052 million for Q1 2024, up from $234.211 million in Q1 2023, driven by a $4.3 million increase in subscription and licensing revenue[147]. - Cybersecurity and Martech revenues increased to $75.452 million in Q1 2024 from $73.016 million in Q1 2023, reflecting a $2.5 million rise in subscription and licensing revenue[147]. - Digital Media revenue increased to $239.0 million in Q1 2024, up 2.1% from $234.1 million in Q1 2023, with operating income rising 11.0% to $31.6 million[181][182]. - Cybersecurity and Martech revenue reached $75.5 million in Q1 2024, a 3.3% increase from $73.0 million in Q1 2023, with operating income growing 15.7% to $19.4 million[183][184]. Customer Metrics - The number of customers in the Digital Media and Cybersecurity and Martech subscription and licensing businesses increased to 3,343 thousand in Q1 2024, compared to 3,175 thousand in Q1 2023[152]. - Average quarterly revenue per customer for subscription and licensing businesses was $44.55 in Q1 2024, slightly down from $44.78 in Q1 2023[152]. - The churn rate for subscription and licensing businesses improved to 3.09% in Q1 2024 from 3.30% in Q1 2023[152]. - The net advertising and performance marketing revenue retention improved to 91.6% in Q1 2024, up from 91.2% in Q1 2023[149]. Expenses and Costs - Direct costs for Q1 2024 were $47.1 million, an increase of 2.9% from $45.7 million in Q1 2023, representing 15.0% of revenue[165]. - Sales and marketing expenses rose to $117.0 million in Q1 2024, a 0.9% increase from $115.9 million in Q1 2023, accounting for 37.2% of revenue[166]. - Research, development, and engineering costs decreased to $17.8 million in Q1 2024, down 0.8% from $17.9 million in Q1 2023, representing 5.7% of revenue[167]. - General, administrative, and other related costs were $101.3 million in Q1 2024, a decrease of 4.4% from $96.8 million in Q1 2023, making up 30.8% of revenue[168]. - Operating costs and expenses decreased to $56.0 million, down $5.4 million, or 8.7%, primarily due to lower general and administrative costs[184]. Non-Operating and Tax Information - Total non-operating expenses decreased to $16.4 million in Q1 2024, down 35.5% from $25.4 million in Q1 2023[170]. - The effective tax rate for Q1 2024 was 42.2%, compared to (65.6)% in Q1 2023, with a provision for income taxes amounting to $8.2 million[176]. Cash Flow and Financial Position - Cash, cash equivalents, and investments totaled $891.1 million as of March 31, 2024, down from $905.6 million at the end of 2023[186]. - The company had outstanding indebtedness of $1.0 billion as of March 31, 2024, with future minimum lease payments of $27.9 million[189]. - Net cash provided by operating activities decreased by $39.7 million to $75.6 million for the three months ended March 31, 2024, compared to $115.3 million in the prior year[193][194]. - Net cash used in investing activities increased by $32.7 million to $71.5 million for the three months ended March 31, 2024, primarily due to higher cash used on business acquisitions[193][195]. - The company anticipates that existing cash and cash equivalents will be sufficient to meet its needs for at least the next 12 months[191]. Strategic Outlook - The company expects continued growth in its Digital Media business as advertising transactions shift from offline to online, enhancing advertising platforms[158]. - Acquisitions are anticipated to remain a key component of the company's strategy, potentially impacting overall operating profit margins[160][162]. - Incremental revenue of $7.8 million was contributed by businesses acquired in 2023 and 2024 during the three months ended March 31, 2024[164]. - The company expects acquisitions to remain a key component of its strategy, although the number and significance may vary due to macroeconomic conditions[160].
j2 Global(ZD) - 2024 Q1 - Earnings Call Transcript
2024-05-09 19:09
Ziff Davis, Inc. (NASDAQ:ZD) Q1 2024 Earnings Conference Call May 9, 2024 8:30 AM ET Company Participants Bret Richter - Chief Financial Officer Vivek Shah - Chief Executive Officer Conference Call Participants Ygal Arounian - Citigroup Rich Poland - RBC Danny Pfeiffer - JPMorgan Peter Lucas - CJS Securities Jian Li - Evercore ISI John Katsingris - Wedbush Operator Good day ladies, and gentlemen and welcome to the Ziff Davis First Quarter 2024 Earnings Conference Call. My name is Paul, and I will be the ope ...
j2 Global(ZD) - 2024 Q1 - Earnings Call Presentation
2024-05-09 14:27
Exhibit 99.2 FIRST QUARTER 2024 RESULTS May 8, 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. Such forward-looking statements are subject to numerous assumptions, risks and uncertainties that could cause actual results to differ materially from th ...
j2 Global(ZD) - 2023 Q4 - Annual Report
2024-02-26 21:08
Revenue Streams and Business Models - Ziff Davis' Digital Media business generates revenue from advertising, subscriptions, performance marketing, and licensing fees, with advertising being the primary driver[17] - The Cybersecurity and Martech business generates revenue primarily from customer subscription and usage fees, with stable and predictable margins[17] - Humble Bundle generates revenue from monthly subscriptions, product bundles, and individual product sales, with each transaction contributing to charity[34] - RetailMeNot connects retail partners with national and international brands, offering promotional media solutions like mobile coupons and cash back offers[30] - Everyday Health Group provides digital content and information services for health and wellness consumers, including interactive guides and self-assessment tools[43] - Health eCareers connects healthcare professionals with jobs across the United States, contracting with thousands of healthcare employers[49] - VIPRE Security Group and MOZ Group operate under Ziff Davis' Cybersecurity and Martech business, offering SaaS solutions for security and marketing technology[55] - The company's MOZ Group offers email marketing, SEO tools, and communication services under brands like Campaigner, iContact, and MOZ Pro[60][61][62] Acquisitions and Investments - Ziff Davis has deployed approximately $3.0 billion on more than 80 acquisitions globally from 2012 through 2023[19] - The company has made more than 80 acquisitions between 2012 and 2023, including two during 2023[82] - The company recognized a total gain of $2.8 million from the sale of Voice assets in the UK, recorded under 'Loss on sale of businesses' for the year ended December 31, 2021[547] - The company recorded an impairment of approximately $32.6 million related to the B2B Backup business in 2021, based on an offer to purchase the business[572] Financial Performance and Metrics - Total revenues for the year ended December 31, 2023 were $1,364,028 thousand, with Digital Media contributing $1,072,971 thousand and Cybersecurity and Martech contributing $291,209 thousand[277] - Net advertising revenue retention for the Digital Media business was 87.1% for the three months ended December 31, 2023, down from 92.0% in the same period in 2022[279] - The company had 3,266 thousand customers in the Digital Media and Cybersecurity and Martech subscription businesses for the three months ended December 31, 2023, with an average quarterly revenue per customer of $44.77[281] - Depreciation expense for the year ended December 31, 2023 was $92.1 million, up from $76.7 million in 2022 and $63.6 million in 2021[565] - Goodwill as of December 31, 2023 reflects accumulated impairment losses of $84.2 million in the Digital Media reportable segment[573] - Expected amortization expenses for intangible assets subject to amortization at December 31, 2023 are $325,406 thousand, with $90,774 thousand expected in 2024[576] - The company's total assets measured at fair value were $383,736 thousand as of December 31, 2023, with $15,699 thousand classified as Level 3 investments[557] - Long-term debt as of December 31, 2023, totaled $1,001,312 thousand, compared to $999,053 thousand in 2022[577] - Interest expense for 2023 was $41.6 million, up from $37.1 million in 2022 and $79.6 million in 2021[577] - Future principal and interest payments for debt total $1,010,038 thousand in principal and $177,812 thousand in interest[577] - The company issued $750.0 million in 4.625% Senior Notes in 2020, with net proceeds of $742.7 million used for debt redemption and general corporate purposes[578] - The 4.625% Senior Notes mature on October 15, 2030, with interest payable semi-annually at a rate of 4.625% per annum[579] - Research and development expenditures were $68.9 million in 2023, down from $74.1 million in 2022 and $78.9 million in 2021[74] - The company had approximately 4,200 employees as of December 31, 2023, with nearly half based outside the U.S.[81] - The company's 3.25% Convertible Notes, issued in 2014, bear interest at 3.25% per annum and are due June 15, 2029[588] - The company repurchased $290.0 million in aggregate principal of its 4.625% Senior Notes cumulatively as of December 31, 2023[586] - The company recognized a loss of $7.4 million associated with the tender of the 4.625% Senior Notes during the year ended December 31, 2021[584] - The company repurchased $181,238 thousand in principal of 4.625% Senior Notes in 2022, resulting in a gain of $12,060 thousand[585] - The company's total interest expense related to 4.625% Senior Notes was $21,555 thousand in 2023, down from $24,942 thousand in 2022[587] - The company redeemed all outstanding 3.25% Convertible Notes, resulting in a gain of $2.8 million and a reduction of stockholders' equity of $390.5 million in 2021[589] - The company recorded $7.7 million of interest expense related to additional interest on the 1.75% Convertible Notes in 2023[592] - The company's total interest expense related to 1.75% Convertible Notes was $19,232 thousand in 2023, up from $11,634 thousand in 2022[599] - The company adopted ASU 2020-06, de-recognizing $87.3 million of unamortized debt discount on the 1.75% Convertible Notes[600] - The company entered into a $100.0 million Credit Agreement in 2021, with the option to increase commitments up to $350.0 million[602] - As of December 31, 2023, there were no amounts outstanding under the Credit Agreement[603] - The company's Credit Agreement includes a maximum total leverage ratio of 4.00:1.00 and a minimum interest coverage ratio of 3.00:1.00 as of the last date of any fiscal quarter[604] - The company entered into a Bridge Loan Facility with an aggregate principal amount of $485.0 million, which bore interest at varying rates depending on the time period[606][607] - The company incurred approximately $6.3 million in costs and interest associated with the Bridge Loan Facility in 2021[607] - The company recorded a net loss on extinguishment of approximately $8.8 million related to the Bridge Loan Facility in 2021[608] - The company entered into a Term Loan Facility with an aggregate principal amount of $90.0 million in 2022, which was settled through a non-cash debt-for-equity exchange[609] - The company entered into a Term Loan Two Facility with an aggregate principal amount of approximately $22.3 million in 2022, which was also settled through a non-cash debt-for-equity exchange[610] - The company recorded a loss on extinguishment of debt of approximately $0.6 million in 2022 related to debt-for-equity exchanges[612] - The company recorded impairments of $2.2 million, $1.0 million, and $12.7 million on its operating lease right of use assets in 2023, 2022, and 2021, respectively[614] - The company's operating lease liabilities totaled $32.4 million in 2023, down from $56.1 million in 2022[615] - Total sublease income for 2023 was $6.0 million, compared to $6.8 million in 2022 and $2.0 million in 2021[618] - Total estimated future sublease income is $7.2 million[618] - Present value of operating lease liabilities as of December 31, 2023, is $32.4 million[617] - Total lease payments for operating leases amount to $34.1 million, with imputed interest of $1.7 million[617] - Maturities of operating lease liabilities for 2024 are $16.95 million[617] Risks and Challenges - The company faces risks related to acquisitions, including potential disruptions to operations and challenges in integrating new businesses[102][109] - The majority of the company's Digital Media revenue comes from short-term advertising arrangements, which are vulnerable to advertiser budget cuts[102] - The company is exposed to risks from unauthorized use of its content and intellectual property infringement by generative AI developers and users[102] - The company has identified risks associated with data privacy regulations, including GDPR, CCPA, and CDPA, which impose significant compliance costs[105] - The company's business is highly dependent on attracting visitors to its websites from search engines[102] - Majority of Digital Media revenue comes from short-term advertising arrangements, with agreements typically lasting one year or less and subject to termination without penalty[112] - Digital Media business relies on aggregating compelling content, with increasing demand for high-quality video and mobile-specific content, potentially requiring substantial payments to third-party providers[113] - Digital Media business must demonstrate attractive ROI for advertisers, with significant resources invested in research, analytics, and campaign effectiveness capabilities[114] - System failures, security breaches, or technological risks could disrupt services, harm reputation, and lead to significant liability[115] - Cybersecurity threats, including AI-based risks, pose challenges to the security and availability of IT systems and data[117] - Generative AI technologies could reduce online traffic, infringe intellectual property, and harm business operations[120] - Tax rate changes, new tax legislation, or exposure to additional tax liabilities could adversely impact financial results[122] - Weakened global and U.S. economic conditions may lead to decreased usage, advertising levels, and customer retention rates, impacting revenue growth[127] - Rising interest rates could increase the cost of debt and negatively affect the company's competitive position[129] - Climate change may adversely impact the company's business locations, customer and vendor locations, and critical systems, potentially leading to operational disruptions, increased costs, and employee turnover[130] - The company operates in highly competitive markets with competitors possessing greater resources, larger customer bases, and lower pricing, which may reduce revenue and operating profits[131] - The Digital Media business faces competition from online media, social networking sites, mobile apps, traditional media, search engines, generative AI, and e-commerce platforms[132] - The Cybersecurity and Martech business competes with cloud software services in secured communications, cybersecurity, and marketing technology[132] - Competitors offering integrated software, internet products, advertising services, and content pose challenges in attracting and retaining subscribers, users, advertisers, partners, and developers[133] - Social media and networking sites are increasingly capturing user attention and online advertising dollars, intensifying competition[133] - The IRS private letter ruling and related tax opinions may be invalid, potentially exposing the company and its stockholders to significant U.S. federal income tax liability[141] Tax and Financial Reserves - The company established reserves for non-income related taxes of $28.1 million and $25.5 million as of December 31, 2023 and 2022, respectively[629] - The company's income tax expense for continuing operations was $(24.1 million), $(58.0 million), and $14.2 million for the years ended December 31, 2023, 2022, and 2021, respectively[630] - The company's effective tax rate for continuing operations was 32.2%, 44.2%, and (4.0)% for the years ended December 31, 2023, 2022, and 2021, respectively[632] - The company had deferred tax assets of $76.9 million and $80.8 million as of December 31, 2023 and 2022, respectively[639] - The company had a valuation allowance on deferred tax assets of $1.7 million as of December 31, 2023 and 2022[640] - The company had federal net operating loss carryforwards of $9.1 million as of December 31, 2023[641] - The company had federal capital loss limitation carryforwards of $21.8 million as of December 31, 2023[642] - The company had undistributed earnings from foreign subsidiaries of $272.4 million as of December 31, 2023[643] - The company's prepaid taxes were $4.7 million and $3.2 million at December 31, 2023 and 2022, respectively[644] - The company's income from domestic operations was $25.8 million, $71.8 million, and $279.7 million for the years ended December 31, 2023, 2022, and 2021, respectively[645] Market Reach and User Engagement - IGN Entertainment reaches more than 325 million monthly users across 35 platforms and has over 50 million social and YouTube followers[33] - Ookla's Speedtest platform has completed over 50 billion tests to date, with more than 11 million tests initiated daily[36]
j2 Global(ZD) - 2023 Q4 - Earnings Call Transcript
2024-02-22 19:08
Ziff Davis, Inc. (NASDAQ:ZD) Q4 2023 Earnings Conference Call February 22, 2024 8:30 AM ET Company Participants Bret Richter - Chief Financial Officer Vivek Shah - Chief Executive Officer Conference Call Participants Cory Carpenter - JPMorgan Shweta Khajuria - Evercore ISI Ygal Arounian - Citigroup Ross Sandler - Barclays Kunal Madhukar - UBS Shyam Patil - Susquehanna Financial Group Rishi Jaluria - RBC Capital Markets Operator Good day, ladies and gentlemen, and welcome to the Ziff Davis Fourth Quarter and ...
j2 Global(ZD) - 2023 Q4 - Annual Results
2024-02-21 23:55
Exhibit 99.1 Ziff Davis Reports Fourth Quarter and Full Year 2023 Financial Results and Provides 2024 Guidance NEW YORK, NY -- Ziff Davis, Inc. (NASDAQ: ZD) ("Ziff Davis" or "the Company") today reported unaudited financial results for the fourth quarter and year ended December 31, 2023. "We have a positive and encouraging outlook on 2024 that reflects a return to healthy growth rates at the company," said Vivek Shah, Chief Executive Officer of Ziff Davis. "At the same time, we are well-positioned to act wi ...
j2 Global(ZD) - 2023 Q3 - Quarterly Report
2023-11-09 21:12
☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Commission File Number: 0-25965 FORM 10-Q ZIFF DAVIS, INC. Indicate by check mark whether the registrant has submitted electronically every Interactiv ...
j2 Global(ZD) - 2023 Q3 - Earnings Call Transcript
2023-11-09 19:53
Ziff Davis, Inc. (NASDAQ:ZD) Q3 2023 Earnings Conference Call November 9, 2023 8:30 AM ET Company Participants Bret Richter - CFO Vivek Shah - CEO Conference Call Participants Shweta Khajuria - Evercore ISI Ross Sandler - Barclays Shyam Patil - Susquehanna Financial Group Cory Carpenter - JPMorgan Rishi Jaluria - RBC Capital Markets Jonathan Tanwanteng - CJS Securities Operator Good day, ladies and gentlemen, and welcome to the Ziff Davis Third Quarter 2023 Earnings Call. My name is Paul, and I will be t ...