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j2 Global(ZD) - 2024 Q3 - Quarterly Results
ZDj2 Global(ZD)2024-11-07 23:17

Financial Performance - Q3 2024 revenues increased by 3.7% to 353.6millioncomparedto353.6 million compared to 341.0 million in Q3 2023[2] - Loss from operations rose to 29.3millioninQ32024,upfrom29.3 million in Q3 2024, up from 13.3 million in Q3 2023, including a goodwill impairment of 85.3million[3]−Netlossincreasedto85.3 million[3] - Net loss increased to 48.6 million in Q3 2024, compared to 31.0millioninQ32023,withnetlossperdilutedsharerisingto31.0 million in Q3 2023, with net loss per diluted share rising to 1.11 from 0.67[3]−AdjustedEBITDAforQ32024was0.67[3] - Adjusted EBITDA for Q3 2024 was 124.7 million, a 9.6% increase from 113.7millioninQ32023[3]−TotalrevenuesforthethreemonthsendedSeptember30,2024,were113.7 million in Q3 2023[3] - Total revenues for the three months ended September 30, 2024, were 353,580,000, compared to 340,985,000forthesameperiodin2023,representingagrowthofapproximately3.5340,985,000 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 30,971,000forthesameperiodin2023,reflectingadeteriorationinperformance[19]CashFlowandInvestments−FreecashflowforQ32024was30,971,000 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 45.6millioninQ32023[3]−ZiffDavisendedQ32024withapproximately45.6 million in Q3 2023[3] - Ziff Davis ended Q3 2024 with approximately 538.9 million in cash, cash equivalents, and investments after deploying 96.1millionforsharerepurchasesand96.1 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,slightlyupfrom232,082,000, 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),comparedto(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),comparedto(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 1.411billionto1.411 billion to 1.471 billion[6] - Adjusted EBITDA guidance for 2024 is set between 500millionand500 million and 521 million[6] - Adjusted diluted EPS for 2024 is expected to be between 6.43and6.43 and 6.77[6] Goodwill and Impairments - Goodwill impairment on business for the three months ended September 30, 2024, was 85,273,000,comparedto85,273,000, 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,whichisconsistentwiththeimpairmentrecordedinthesameperiodof2023[24]OperatingCostsandExpenses−TotaloperatingcostsandexpensesforthethreemonthsendedSeptember30,2024,were85,273,000, 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 354,304,000in2023,reflectingariseofabout8354,304,000 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 6,774,000inthesameperiodof2023,representingariseofapproximately49.56,774,000 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),reflectingongoinginvestmentinmarketpresence[28]Non−GAAPMeasures−AdjustedEBITDAandothernon−GAAPfinancialmeasuresareutilizedforfinancialdecision−making,providinginsightsintothecompany′soperationalperformance[17]−TheadjustednetincomeforthethreemonthsendedSeptember30,2024,was(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 1.64perdilutedshare,comparedto1.64 per diluted share, compared to 69,073,000, or 1.50perdilutedshare,forthesameperiodin2023[24]−Thetotalnon−GAAPadjustmentsforthethreemonthsendedSeptember30,2024,amountedto1.50 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,withanadjustedeffectivetaxrateofapproximately23.9184,272, 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]LossesandChallenges−Thecompanyreportedalossfromequitymethodinvestmentsof70,026,000[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]