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]

Company Performance - Ziff Davis reported quarterly earnings of $1.18 per share, missing the Zacks Consensus Estimate of $1.27 per share, and down from $1.27 per share a year ago, representing an earnings surprise of -7.09% [1] - The company posted revenues of $320.8 million for the quarter ended June 2024, missing the Zacks Consensus Estimate by 4%, and down from $326.02 million year-over-year [2] - Over the last four quarters, Ziff Davis has surpassed consensus EPS estimates two times and topped consensus revenue estimates just once [2] Stock Performance - Ziff Davis shares have lost about 41% since the beginning of the year, while the S&P 500 has gained 9.9% [3] - The current status of estimate revisions for Ziff Davis is mixed, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market in the near future [6] Future Outlook - The current consensus EPS estimate for the coming quarter is $1.53 on revenues of $359.24 million, and for the current fiscal year, it is $6.58 on revenues of $1.43 billion [7] - The outlook for the industry can significantly impact the stock's performance, with the Internet - Software industry currently in the top 36% of over 250 Zacks industries [8]

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].

Financial Data and Key Metrics Changes - Q1 2024 revenues were $314.5 million, reflecting a growth of 2.4% compared to $307.1 million in the prior year period [32] - Adjusted EBITDA for Q1 2024 was $100.8 million, a 6.8% increase from $94.3 million in the prior year [32] - Adjusted diluted EPS for Q1 2024 was $1.27, representing a 15.5% increase compared to the prior year [32] Business Line Data and Key Metrics Changes - Digital Media segment grew by a little over 2%, with tech media vertical growing by high single digits [10] - Subscription and licensing revenue grew 4.8% year-over-year, now representing over 42% of total revenues [8][36] - The shopping business experienced a mid-single digit revenue decline, attributed to challenges with distribution partners and commission cuts from a large merchant [14][70] Market Data and Key Metrics Changes - The Cybersecurity and MarTech segment grew 3.3% organically after a decline of nearly 7% the previous year [17] - The health and wellness vertical continued its growth streak, with the Cleveland Clinic launching a new diet app [12] - The gaming and entertainment vertical grew mid-single digits, supported by IGN's leadership in the industry [11] Company Strategy and Development Direction - The company aims to prioritize investments in durable, high-quality assets and is open to turnaround opportunities [21] - M&A remains a focus, with an active pipeline of off-market opportunities and a disciplined approach to capital allocation [20][72] - The company is leveraging AI to enhance product experiences and operational efficiencies [23][27] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about 2024 being a rebound year, with organic growth signs in several business areas [9] - The company anticipates some softness in Q2 but reaffirms guidance for growth in revenue, adjusted EBITDA, and adjusted diluted EPS for the full year [48] - Management noted that challenges in the shopping business are manageable and expects improvements in the second half of the year [70] Other Important Information - The company reported a 38% decrease in combined emissions from 2022, aligning with its science-based emissions reduction targets [28] - The company has a strong balance sheet with $735 million in cash and cash equivalents, allowing for continued focus on M&A and stock repurchases [41][43] Q&A Session Summary Question: Traffic growth at Mashable - Management attributed the traffic growth to a well-tuned content strategy and diversified traffic sources [50][51] Question: Licensing and GenAI partnerships - Management is encouraged by marketplace movements regarding compensation for content owners and is in active dialogue for partnerships [54][55] Question: Advertising market dynamics - Management noted improvements in the advertising market, particularly in tech and gaming, while challenges remain in the shopping sector [59][60] Question: Shopping business dynamics - Management identified three main challenges: changes in distribution partnerships, commission cuts from a merchant, and search volatility [66][70] Question: Capital allocation strategy - Management reaffirmed a focus on strategic M&A and stock repurchases, with plans to resume buybacks in the near term [72][73] Question: Revenue growth assumptions for the second half - Management reiterated that growth is expected to continue in the second half, driven by improvements across various business segments [78][80] Question: Consumer tech business outlook - Management expressed confidence in the consumer tech business, highlighting strong leadership and growth opportunities [100]

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 ...

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]

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 ...