j2 Global(ZD)2024-05-09 20:39Revenue Performance - Total revenues for the three months ended March 31, 2024, were 307.142 million in the same period of 2023[163]. - Digital Media revenues totaled 234.211 million in Q1 2023, driven by a 75.452 million in Q1 2024 from 2.5 million rise in subscription and licensing revenue[147]. - Digital Media revenue increased to 234.1 million in Q1 2023, with operating income rising 11.0% to 75.5 million in Q1 2024, a 3.3% increase from 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 44.78 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 45.7 million in Q1 2023, representing 15.0% of revenue[165]. - Sales and marketing expenses rose to 115.9 million in Q1 2023, accounting for 37.2% of revenue[166]. - Research, development, and engineering costs decreased to 17.9 million in Q1 2023, representing 5.7% of revenue[167]. - General, administrative, and other related costs were 96.8 million in Q1 2023, making up 30.8% of revenue[168]. - Operating costs and expenses decreased to 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 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 891.1 million as of March 31, 2024, down from 1.0 billion as of March 31, 2024, with future minimum lease payments of 39.7 million to 115.3 million in the prior year[193][194]. - Net cash used in investing activities increased by 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].