j2 Global(ZD)2024-11-08 21:18Revenue Performance - Total revenues for the three months ended September 30, 2024, were 340.99 million in the same period of 2023, representing a growth of 3.5%[102] - Digital Media revenues for the three months ended September 30, 2024, were 267.95 million in the prior year, reflecting a year-over-year increase of 5.8%[102] - Cybersecurity and Martech revenues decreased to 73.05 million in the same period of 2023, a decline of 4.1%[102] - Revenues for the three months ended September 30, 2024, were 341.0 million in the prior year; for the nine months, revenues were 974.1 million[114] - Digital Media revenues increased by 5.6 million in subscription and licensing for the three months ended September 30, 2024[114] - Digital Media revenues for the nine months ended September 30, 2024, were 755.0 million in the prior year[124] - Cybersecurity and Martech's revenues for the three months ended September 30, 2024, were 3.0 million or 4.1% compared to the prior period[126] - For the nine months ended September 30, 2024, revenues were 4.8 million or 2.2% from the previous year, primarily due to lower revenue in the cybersecurity business[126] Customer Metrics - The number of Digital Media customers increased to 2,239 thousand in the three months ended September 30, 2024, up from 1,905 thousand in the same period of 2023, indicating a growth of 17.6%[107] - Total consolidated customers increased to 3,490 thousand in the three months ended September 30, 2024, compared to 3,300 thousand in the prior year, representing a growth of 5.8%[107] - The churn rate for Digital Media was 2.59% for the three months ended September 30, 2024, an improvement from 3.14% in the same period of 2023[107] Financial Performance - Digital Media's operating loss for the three months ended September 30, 2024, was 12.9 million[124] - Operating income for the three months ended September 30, 2024, increased to 2.4 million or 19.0% year-over-year[126] - Digital Media's operating costs and expenses for the three months ended September 30, 2024, were 280.9 million in the prior year[124] - Direct costs decreased by 4.1% to 152.9 million for the nine months[115] - Sales and marketing expenses rose to 125.1 million in the prior year[116] - Research, development, and engineering costs decreased by 13.3% to 49.8 million for the nine months[117] - General, administrative, and other related costs increased by 2.4% to 296.6 million for the nine months[118] Goodwill and Impairment - The Company recorded a goodwill impairment of approximately 56.9 million for the same periods in 2023[119] - As of September 30, 2024, goodwill for three reporting units within the Digital Media segment totaled 538.9 million as of September 30, 2024, down from 863.7 million as of September 30, 2024[131] - Net cash provided by operating activities was 4.2 million compared to the prior period[133] - Net cash used in investing activities increased by 181.8 million during the nine months ended September 30, 2024[139] - The company anticipates that existing cash and cash equivalents, along with cash generated from operations, will be sufficient for its needs for at least the next 12 months[132] Strategic Outlook - The company continues to pursue acquisitions to grow customer bases and expand service offerings, which may impact consolidated results[100] - The Company expects its Digital Media business to improve as it integrates recent acquisitions and continues to expand its platforms[112] - The Company anticipates that acquisitions will remain a key component of its strategy, although the number and significance of future acquisitions may vary due to macroeconomic conditions[112][113] Share-Based Compensation - Total share-based compensation expense for the three months ended September 30, 2024, was 6.8 million for the same period in 2023[120] - Total share-based compensation expense for the nine months ended September 30, 2024, was 24.4 million in the prior period[120]