j2 Global(ZD) - 2024 Q2 - Quarterly Report

Revenue Performance - Total revenues for the three months ended June 30, 2024, were $320.8 million, a decrease of 0.7$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$144.4 million, down $1.8 million or 1.2$33.86 in Q2 2024 from $37.74 in Q2 2023[108]. - The churn rate for Digital Media was 3.19$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$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$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$35.0 million for the three months ended June 30, 2024, a decrease of $1.7 million or 4.6$11.5 million for the three months ended June 30, 2024, a decrease of $2.0 million or 14.6$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$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].