j2 Global(US:ZD)2025-05-09 20:36Revenue Growth - Total revenues for the three months ended March 31, 2025, were $328.636 million, an increase from $314.485 million in the same period of 2024, representing a growth of approximately 4.0%[155] - Revenues for the three months ended March 31, 2025, were $328.6 million, a 4.5% increase from $314.5 million in the same period of 2024[174] - Advertising and performance marketing revenue increased by $19.2 million, primarily driven by a $13.6 million increase in the Technology & Shopping segment[175] - Technology & Shopping's revenues increased by 17.9% to $81.7 million for the three months ended March 31, 2025, driven by a $13.6 million rise in advertising and performance marketing revenues[191] - Health & Wellness's revenues grew by 7.3% to $85.8 million, with a notable $4.5 million increase in advertising and performance marketing revenues[198] - Connectivity's revenues increased by 5.0% to $55.8 million, mainly due to a $3.4 million rise in subscription and licensing revenues[200] - Cybersecurity & Martech's revenues decreased by 10.8% to $67.3 million, primarily due to a $6.1 million drop in subscription and licensing revenue[203] Customer Metrics - The Technology & Shopping segment generated $81.690 million in revenues for Q1 2025, up from $69.267 million in Q1 2024, reflecting a growth of about 18.5%[155] - The Health & Wellness segment reported revenues of $85.786 million for Q1 2025, compared to $79.978 million in Q1 2024, marking an increase of approximately 7.3%[155] - The number of customers in the Gaming & Entertainment segment increased to 531,000 in Q1 2025 from 451,000 in Q1 2024, indicating a growth of about 17.7%[164] - The average quarterly revenue per customer in the Cybersecurity & Martech segment decreased to $53.85 in Q1 2025 from $57.79 in Q1 2024, a decline of approximately 4.0%[164] - The average revenue per customer in the Health & Wellness segment was $7.20 in Q1 2025, a slight decrease from $7.41 in Q1 2024[164] - The total number of customers in the Health & Wellness segment decreased to 1,820,000 in Q1 2025 from 1,564,000 in Q1 2024, reflecting a growth of about 16.4%[164] Expenses and Costs - Direct costs for the three months ended March 31, 2025, were $47.2 million, representing 14.4% of revenues, a slight decrease from 14.6% in 2024[176] - Sales and marketing expenses rose to $127.7 million, accounting for 38.9% of revenues, up from 37.2% in the prior year[177] - Research, development, and engineering costs decreased by 10.7% to $15.9 million, representing 4.8% of revenues[178] - General, administrative, and other related costs decreased by 5.3% to $46.9 million, accounting for 14.3% of revenues[179] - Depreciation and amortization expenses increased by 15.2% to $55.8 million, representing 17.0% of revenues[180] - Interest expense, net increased by 246.6% to $6.1 million compared to $1.8 million in the prior year[181] Income and Taxation - Income from equity method investment was $6.6 million for the three months ended March 31, 2025, compared to a loss of $0.6 million in the same period of 2024[189] - The effective tax rate for the three months ended March 31, 2025, was 32.8%, down from 42.2% in the prior year[186] Cash Flow and Indebtedness - Cash and cash equivalents decreased to $431.0 million as of March 31, 2025, down from $505.9 million at the end of 2024[207] - Net cash provided by operating activities fell by $54.9 million to $20.6 million for the three months ended March 31, 2025, primarily due to significant working capital usage[215] - The company had outstanding indebtedness of $864.8 million as of March 31, 2025[212] - Net cash provided by operating activities decreased by $54.9 million during Q1 2025, primarily due to significant working capital usage by TDS Gift Cards, which had a negative impact of $(84.0) million[215] Share Repurchase Program - As of March 31, 2025, a total of 9,508,692 shares have been repurchased under the 2020 Program at an aggregate cost of $614.5 million[219] - The Board authorized an increase in the share repurchase program by an additional 5 million shares, raising the total authorization to 15 million shares[218]