Ziff Davis Reports First Quarter 2025 Financial Results and Reaffirms 2025 Guidance
NEW YORK--(BUSINESS WIRE)--May 08, 2025--
Ziff Davis, Inc. (NASDAQ: ZD) ("Ziff Davis" or "the Company") today reported unaudited financial results for the first quarter ended March 31, 2025.
"We are pleased with our overall first quarter performance, which surpassed our internal targets," said Vivek Shah, Chief Executive Officer of Ziff Davis. "The combination of accelerating revenue growth, a healthy M&A cadence, and our active share buyback program has us optimistic about our prospects for the balance of the year."
FIRST QUARTER 2025 RESULTS
-- Q1 2025 quarterly revenues increased 4.5% to $328.6 million compared to
$314.5 million for Q1 2024.
-- Income from operations decreased to $35.1 million compared to $35.9
million for Q1 2024.
-- Net income (1) increased 128.1% to $24.2 million compared to $10.6
million for Q1 2024.
-- Net income per diluted share (1) increased to $0.56 in Q1 2025 compared
to $0.23 for Q1 2024.
-- Adjusted EBITDA (2) for the quarter decreased to $100.2 million compared
to $100.8 million for Q1 2024.
-- Adjusted net income (2) decreased to $48.9 million compared to $58.5
million for Q1 2024.
-- Adjusted net income per diluted share (1)(2) (or "Adjusted diluted EPS")
for the quarter decreased to $1.14 compared to $1.27 for Q1 2024.
-- Net cash provided by operating activities was $20.6 million in Q1 2025
compared to $75.6 million in Q1 2024. Free cash flow (2) was $(5.0)
million in Q1 2025 compared to $47.4 million in Q1 2024. The decrease
reflects the significant working capital usage by TDS Gift Cards during
the first quarter.
-- Ziff Davis deployed approximately $39.2 million for current and prior
year acquisitions during the quarter and $34.9 million related to share
repurchases in Q1 2025.
The following table reflects results for the three months ended March 31, 2025 and 2024, respectively (in millions, except per share amounts).
Three months ended March 31,
------------------------------------ ------------------------------ --------
(Unaudited) 2025 2024 % Change
------------------------------------ -------------- -------------- --------
Revenues (4)
------------------------------------ -------------- -------------- --------
Technology & Shopping $81.7 $69.3 17.9%
------------------------------------ -------------- -------------- --------
Gaming & Entertainment $38.0 $36.6 3.8%
------------------------------------ -------------- -------------- --------
Health & Wellness $85.8 $80.0 7.3%
------------------------------------ -------------- -------------- --------
Connectivity $55.8 $53.1 5.0%
------------------------------------ -------------- -------------- --------
Cybersecurity & Martech $67.3 $75.5 (10.8)%
------------------------------------ -------------- -------------- --------
Total revenues (3) $328.6 $314.5 4.5%
------------------------------------ -------------- -------------- --------
Income from operations $35.1 $35.9 (2.0)%
------------------------------------ -------------- -------------- --------
Operating income margin 10.7% 11.4% (0.7)%
------------------------------------ -------------- -------------- --------
Net income (1) $24.2 $10.6 128.1%
------------------------------------ -------------- -------------- --------
Net income per diluted share (1) $0.56 $0.23 143.5%
------------------------------------ -------------- -------------- --------
Adjusted EBITDA (2) $100.2 $100.8 (0.6)%
------------------------------------ -------------- -------------- --------
Adjusted EBITDA margin (2) 30.5% 32.0% (1.5)%
------------------------------------ -------------- -------------- --------
Adjusted net income (1)(2) $48.9 $58.5 (16.3)%
------------------------------------ -------------- -------------- --------
Adjusted diluted EPS (1)(2) $1.14 $1.27 (10.2)%
------------------------------------ -------------- -------------- --------
Net cash provided by operating
activities $20.6 $75.6 (72.7)%
------------------------------------ -------------- -------------- --------
Free cash flow (2) $(5.0) $47.4 (110.6)%
------------------------------------ -------------- -------------- --------
Notes:
(1) GAAP effective tax rates were approximately 32.8% and 42.2% for the
three months ended March 31, 2025 and 2024, respectively. Adjusted
effective tax rates were approximately 23.9% and 23.9% for the three
months ended March 31, 2025 and 2024, respectively.
(2) For definitions of non-GAAP financial measures and reconciliations of
GAAP to non-GAAP financial measures refer to section "Non-GAAP
Financial Measures" further in this release.
(3) The revenues associated with each of the businesses may not foot
precisely since each is presented independently.
(4) Prior period segment information is presented on a comparable basis to
conform to our new segment presentation with no effect on previously
reported consolidated results.
ZIFF DAVIS GUIDANCE
The Company reaffirms its guidance for fiscal year 2025 as follows (in millions, except per share data):
2025 Range of Estimates
-----------------------------
Low High
-------------- -------------
Revenues $ 1,442 $ 1,502
Adjusted EBITDA $ 505 $ 542
Adjusted diluted EPS (1) $ 6.64 $ 7.28
________________________________
(1) It is anticipated that the Adjusted effective tax rate for 2025 will be
between 23.25% and 25.25%.
A reconciliation of forward-looking Adjusted EBITDA and Adjusted diluted EPS to the corresponding GAAP financial measures is not available without unreasonable effort due primarily to variability and difficulty in making accurate forecasts and projections of certain non-operating items such as (Gain) loss on investments, net, Other (income) loss, net, and other unanticipated items that may arise in the future.
EARNINGS CONFERENCE CALL AND AUDIO WEBCAST
Ziff Davis will host a live audio webcast and conference call discussing its first quarter 2025 financial results on Friday, May 9, 2025, at 8:30AM ET. The live webcast and call will be accessible by phone by dialing (844) 985-2014 or via www.ziffdavis.com. Following the event, the audio recording and presentation materials will be archived and made available at www.ziffdavis.com.
ABOUT ZIFF DAVIS
Ziff Davis, Inc. (NASDAQ: ZD) is a vertically focused digital media and internet company whose portfolio includes leading brands in technology, shopping, gaming and entertainment, health and wellness, connectivity, cybersecurity, and martech. For more information, visit www.ziffdavis.com.
"Safe Harbor" Statement Under the Private Securities Litigation Reform Act of 1995: Certain statements in this press release are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including those contained in Vivek Shah's quote, the "Ziff Davis Guidance" section regarding the Company's expected fiscal 2025 financial performance, and our discussion of net cash provided by operating activities and free cash flow. These forward-looking statements are based on management's current expectations or beliefs and are subject to numerous assumptions, risks, and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. These factors and uncertainties include, among other items: the Company's ability to grow advertising, licensing, and subscription revenues, profitability, and cash flows, particularly in light of an uncertain U.S. or worldwide economy, including the possibility of economic downturn or recession; the Company's ability to make interest and debt payments; the Company's ability to identify, close, and successfully transition acquisitions; customer growth and retention; the Company's ability to create compelling content; our reliance on third-party platforms; the threat of content piracy and developments related to artificial intelligence; increased competition and rapid technological changes; variability of the Company's revenue based on changing conditions in particular industries and the economy generally; protection of the Company's proprietary technology or infringement by the Company of intellectual property of others; the risk of losing critical third-party vendors or key personnel; the risks associated with fraudulent activity, system failure, or a security breach; risks related to our ability to adhere to our internal controls and procedures; the risk of adverse changes in the U.S. or international regulatory environments, including but not limited to the imposition or increase of taxes or regulatory-related fees; the risks related to supply chain disruptions, increased tariffs and trade protection measures, inflationary conditions, and rising interest rates; the risk of liability for legal and other claims; and the numerous other factors set forth in Ziff Davis' filings with the Securities and Exchange Commission
("SEC"). For a more detailed description of the risk factors and uncertainties affecting Ziff Davis, refer to our most recent Annual Report on Form 10-K and the other reports filed by Ziff Davis from time-to-time with the SEC, each of which is available at www.sec.gov. The forward-looking statements provided in this press release, including those contained in Vivek Shah's quote, in the "Ziff Davis Guidance" portion regarding the Company's expected fiscal 2025 financial performance, and our discussion of net cash provided by operating activities and free cash flows are based on limited information available to the Company at this time, which is subject to change. Although management's expectations may change after the date of this press release, the Company undertakes no obligation to revise or update these statements.
ZIFF DAVIS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED, IN THOUSANDS)
March 31, 2025 December 31, 2024
---------------- ---------------------
ASSETS
Cash and cash equivalents $ 431,007 $ 505,880
Accounts receivable, net of
allowances of $7,501 and $8,148,
respectively 517,863 660,223
Prepaid expenses and other
current assets 123,449 105,966
----------- --------------
Total current assets 1,072,319 1,272,069
Long-term investments 167,161 158,187
Property and equipment, net of
accumulated depreciation of
$389,984 and $361,710,
respectively 198,338 197,216
Intangible assets, net 416,066 425,749
Goodwill 1,598,605 1,580,258
Deferred income taxes 7,500 7,487
Other assets 55,886 63,368
----------- --------------
TOTAL ASSETS $ 3,515,875 $ 3,704,334
----------- --------------
LIABILITIES AND STOCKHOLDERS'
EQUITY
Accounts payable and accrued
expenses $ 463,518 $ 670,769
Income taxes payable, current 14,378 19,715
Deferred revenue, current 217,711 199,664
Other current liabilities 9,167 9,499
----------- --------------
Total current liabilities 704,774 899,647
Long-term debt 864,829 864,282
Deferred revenue, noncurrent 5,645 5,504
Liability for uncertain tax
positions 30,793 30,296
Deferred income taxes 44,473 46,018
Other noncurrent liabilities 43,996 47,705
----------- --------------
TOTAL LIABILITIES 1,694,510 1,893,452
----------- --------------
Common stock 422 428
Additional paid-in capital 485,008 491,891
Retained earnings 1,406,715 1,401,034
Accumulated other comprehensive
loss (70,780) (82,471)
----------- --------------
TOTAL STOCKHOLDERS' EQUITY 1,821,365 1,810,882
----------- --------------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 3,515,875 $ 3,704,334
----------- --------------
ZIFF DAVIS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED, IN THOUSANDS EXCEPT SHARE AND PER SHARE DATA)
Three months ended March 31,
----------------------------------
2025 2024
----------------- ---------------
Total revenues $ 328,636 $ 314,485
Operating costs and expenses:
Direct costs 47,208 45,887
Sales and marketing 127,680 117,000
Research, development, and
engineering 15,876 17,774
General, administrative, and
other related costs 46,910 49,510
Depreciation and amortization 55,832 48,453
------------ -----------
Total operating costs and expenses 293,506 278,624
------------ -----------
Income from operations 35,130 35,861
Interest expense, net (6,131) (1,769)
Loss on sale of businesses -- (3,780)
Loss on investments, net -- (10,705)
Other loss, net (2,803) (104)
------------ -----------
Income before income tax expense and
income (loss) from equity method
investment 26,196 19,503
Income tax expense (8,587) (8,231)
Income (loss) from equity method
investment, net of tax 6,630 (645)
------------ -----------
Net income $ 24,239 $ 10,627
------------ -----------
Net income per common share:
Basic $ 0.57 $ 0.23
Diluted $ 0.56 $ 0.23
Weighted average shares outstanding:
Basic 42,558,090 45,860,033
Diluted 44,167,069 45,955,365
ZIFF DAVIS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED, IN THOUSANDS)
Three months ended March 31,
------------------------------------
2025 2024
-------------------- --------------
Cash flows from operating
activities:
Net income $ 24,239 $ 10,627
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation and amortization 55,832 48,453
Non-cash operating lease costs 2,034 2,770
Share-based compensation 9,752 8,872
Provision for credit losses on
accounts receivable 160 50
Deferred income taxes, net 548 (2,709)
Loss on sale of businesses -- 3,780
Changes in fair value of
contingent consideration (1,803) --
(Income) loss from equity method
investments, net (6,630) 645
Loss on investments, net -- 10,705
Other 912 1,278
Decrease (increase) in:
Accounts receivable 143,721 55,365
Prepaid expenses and other
current assets (17,709) (9,423)
Other assets 7,252 (2,078)
Increase (decrease) in:
Accounts payable (210,857) (62,270)
Deferred revenue 18,493 15,169
Accrued liabilities and other
current liabilities (5,331) (5,676)
------------ ----------
Net cash provided by operating
activities 20,613 75,558
------------ ----------
Cash flows from investing
activities:
Purchases of property and
equipment (25,619) (28,129)
Acquisition of businesses, net of
cash received (39,198) (44,524)
Proceeds from sale of businesses,
net of cash divested -- 1,238
Other (12) (66)
------------ ----------
Net cash used in investing
activities (64,829) (71,481)
------------ ----------
Cash flows from financing
activities:
Repurchase of common stock (34,900) (3,923)
Deferred payments for
acquisitions -- (2,418)
Other (106) 30
------------ ----------
Net cash used in financing
activities (35,006) (6,311)
------------ ----------
Effect of exchange rate changes on
cash and cash equivalents 4,349 (599)
------------ ----------
Net change in cash and cash
equivalents (74,873) (2,833)
Cash and cash equivalents at
beginning of period 505,880 737,612
------------ ----------
Cash and cash equivalents at end of
period $ 431,007 $ 734,779
------------ ----------
Non-GAAP Financial Measures
To supplement our condensed consolidated financial statements, which are prepared and presented in accordance with U.S. generally accepted accounting principles ("GAAP"), we use the following non-GAAP financial measures: Adjusted EBITDA, Adjusted EBITDA margin, Adjusted net income (loss), Adjusted net income (loss) per diluted share, Free cash flow, and Adjusted effective tax rate (collectively the "non-GAAP financial measures"). The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.
We use these non-GAAP financial measures for financial and operational decision making and as means to evaluate period-to-period comparisons. We believe that these non-GAAP financial measures provide meaningful supplemental information regarding our performance and liquidity by excluding certain items that may not be indicative of our recurring core business operating results or, in certain cases, may be non-cash in nature. We believe that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when planning, forecasting, and analyzing future periods. These non-GAAP financial measures also facilitate management's internal comparisons to our historical performance and liquidity. We believe these non-GAAP financial measures are useful to investors both because (1) they allow for greater transparency with respect to key metrics used by management in its financial and operational decision-making, (2) certain measures are used to determine the amount of annual incentive compensation paid to our named executive officers, and (3) they are used by the analyst community to help them analyze the health of our business.
These non-GAAP financial measures are not measures presented in accordance with GAAP, and our use of these terms may vary from that of other companies, limiting their usefulness for comparison purposes. These non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles. These non-GAAP financial measures have limitations in that they do not reflect all of the amounts associated with the Company's results of operations determined in accordance with GAAP.
Non-GAAP financial measures exclude the certain items listed below. We believe that excluding these items from the non-GAAP measures facilitates comparisons to historical operating results and comparisons to peers, many of which exclude similar items. We believe that non-GAAP financial measures provide meaningful supplemental information regarding operational performance. We further believe these measures are useful to investors in that they allow for greater transparency of certain line items in the Company's financial statements.
Adjusted EBITDA is defined as Net income (loss) with adjustments to reflect the addition or elimination of certain items including, but not limited to:
-- Interest expense, net. Interest expense is generated primarily from
interest due on outstanding debt, partially offset by interest income
generated from the interest earned on cash, cash equivalents, and
investments;
-- (Gain) loss on debt extinguishment, net. This is a non-cash expense that
relates to extinguishments of long-term debt obligations. We believe this
(gain) loss does not represent recurring core business operating results
of the Company;
-- (Gain) loss on sale of businesses. This gain or loss relates to the sales
of businesses and does not represent recurring core business operating
results of the Company;
-- (Gain) loss on investments, net. This item includes realized gains and
losses, unrealized gains and losses, and impairment charges on debt and
equity investments. The amount of gain or loss depends on the share price
for investments with readily determinable fair value and on observable
price changes for investments without a readily determinable fair value,
and does not represent core business operating results of the Company;
-- Other (income) loss, net. This income or expense relates to other
non-operating items and does not represent recurring core business
operating results of the Company;
-- Income tax (benefit) expense. This benefit or expense depends on the
pre-tax loss or income of the Company, statutory tax rates, tax
regulations, and different tax rates in various jurisdictions in which
the Company operates and which the Company does not have the control
over;
-- (Income) loss from equity method investment, net of tax. This is a
non-cash income or expense as it relates primarily to our investment in
OCV Fund I, LP (the "OCV Fund"). We believe that gain or loss resulting
from our equity method investment does not represent core business
operating results of the Company;
-- Depreciation and amortization. This is a non-cash expense at it relates
to use and associated reduction in value of certain assets including
equipment, fixtures, and certain capitalized internal-use software and
website development costs, and identifiable definite-lived intangible
assets of the acquired businesses;
-- Share-based compensation. This is a non-cash expense as it relates to
awards granted under the various share-based incentive plans of the
Company. We view the economic cost of share-based awards to be the
dilution to our share base;
-- Acquisition, integration, and other costs. This includes adjustments to
contingent consideration, lease terminations, retention bonuses, other
acquisition-specific items, and other costs, such as severance,
third-party debt modification costs and legal settlements. These expenses
do not represent core business operating results of the Company;
-- Disposal related costs. These are expenses associated with the disposal
of certain businesses that do not represent core business operating
results of the Company;
-- Lease asset impairments and other charges. These expenses are incurred in
connection with impaired right-of-use ("ROU") assets of the Company.
Associated expenses are comprised of insurance, utility, and other
charges related to assets that are no longer in use, and partially offset
by the sublease income earned. These expenses do not represent core
business operating results of the Company; and
-- Goodwill impairment. This is a non-cash expense that is recorded when the
carrying value of the reporting unit exceeds its fair value and does not
represent core business operating results of the Company.
Adjusted EBITDA margin is calculated by dividing Adjusted EBITDA by Total Revenues.
Adjusted net income (loss) is defined as Net income (loss) with adjustments to reflect the addition or elimination of certain statement of operations items including, but not limited to:
-- Interest, net. This reflects the difference between the imputed and
coupon interest expense associated with the 4.625% Senior Notes and a
charge that the Company determined to be penalty interest associated with
the 1.75% Convertible Notes, offset in part by a certain interest income
earned by the Company. These net expenses do not represent core business
operating results of the Company;
-- (Gain) loss on debt extinguishment, net. This is a non-cash expense that
relates to extinguishments of long-term debt obligations. We believe this
gain or loss does not represent recurring core business operating results
of the Company;
-- (Gain) loss on sale of businesses. This gain or loss relates to the sales
of businesses and does not represent recurring core business operating
results of the Company;
-- (Gain) loss on investments, net. This item includes realized gains and
losses, unrealized gains and losses, and impairment charges on debt and
equity investments. The amount of gain or loss depends on the share price
for investments with readily determinable fair value and on observable
price changes for investments without a readily determinable fair value,
and does not represent core business operating results of the Company;
-- (Income) loss from equity method investment, net of tax. This is a
non-cash income or expense as it relates primarily to our investment in
the OCV Fund. We believe that gains or losses resulting from our equity
method investment do not represent core business operating results of the
Company;
-- Amortization. Includes the amortization of patents and intangible assets
that we acquired. This is a non-cash expense as it primarily relates to
identifiable definite-lived intangible assets of the acquired businesses.
We believe that acquired intangible assets represent cost incurred by the
acquiree to build value prior to the acquisition and the amortization of
this cost does not represent core business operating results of the
Company;
-- Share-based compensation. This is a non-cash expense as it relates to
awards granted under the various share-based incentive plans of the
Company. We view the economic cost of share-based awards to be the
dilution to our share base;
-- Acquisition, integration, and other costs. This includes adjustments to
contingent consideration, lease terminations, retention bonuses, other
acquisition-specific items, and other costs, such as severance,
third-party debt modification costs and legal settlements. These expenses
do not represent core business operating results of the Company;
-- Disposal related costs. These are expenses associated with the disposal
of certain businesses that do not represent core business operating
results of the Company;
-- Lease asset impairments and other charges. These expenses are incurred in
connection with impaired ROU assets of the Company. Associated expenses
are comprised of insurance, utility, and other charges related to assets
that are no longer in use, and partially offset by the sublease income
earned. These expenses do not represent core business operating results
of the Company; and
-- Goodwill impairment. This is a non-cash expense that is recorded when the
carrying value of the reporting unit exceeds its fair value and does not
represent core business operating results of the Company.
Adjusted net income (loss) per diluted share is calculated by dividing Adjusted net income (loss) by the diluted weighted average shares of common stock outstanding excluding the effect of convertible debt dilution.
Free cash flow is defined as Net cash provided by operating activities, less purchases of property and equipment, plus changes in contingent consideration (if any).
Adjusted effective tax rate is calculated based upon the GAAP effective tax rate with adjustments for the tax applicable to non-GAAP adjustments to Net income (loss), generally based upon the effective marginal tax rate of each adjustment.
ZIFF DAVIS, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(UNAUDITED, IN THOUSANDS)
The following table sets forth a reconciliation of Net income to Adjusted
EBITDA:
Three months ended March 31,
------------------------------------
2025 2024
-------------------- --------------
Net income $ 24,239 $ 10,627
Interest expense, net 6,131 1,769
Loss on sale of businesses -- 3,780
Loss on investment, net -- 10,705
Other loss, net 2,803 104
Income tax expense 8,587 8,231
(Income) loss from equity method
investments, net of tax (6,630) 645
Depreciation and amortization 55,832 48,453
Share-based compensation 9,752 8,872
Acquisition, integration, and
other costs (557) 6,266
Disposal related costs 1 496
Lease asset impairments and other
charges 20 803
------------ -----------
Adjusted EBITDA $ 100,178 $ 100,751
------------ -----------
ZIFF DAVIS, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(UNAUDITED, IN THOUSANDS)
The following table sets forth Revenues and a reconciliation of (Loss) income from operations to Adjusted EBITDA by
segment:
Three months ended March 31, 2025
--------------------------------------------------------------------------------------------------
Technology & Gaming & Health & Cybersecurity Corporate
Shopping Entertainment Wellness Connectivity & Martech (1) Total
------------ --------------- -------- -------------- ----------------- --------- -----------
Revenues $ 81,690 $ 38,026 $85,786 $ 55,820 $ 67,314 $ -- $328,636
(Loss) income
from
operations $ (3,963) $ 8,774 $16,962 $ 19,512 $ 11,323 $(17,478) $ 35,130
Depreciation
and
amortization 22,405 2,618 12,928 7,380 10,387 114 55,832
Share-based
compensation 1,153 329 1,363 670 967 5,270 9,752
Acquisition,
integration,
and other
costs 1,651 338 (1,812) 497 (754) (477) (557)
Disposal
related
costs 1 -- -- -- -- -- 1
Lease asset
impairments
and other
charges (241) 87 (86) -- 255 5 20
------- ---- --------- ------ --- --------- ------- ---- ------- -------
Adjusted EBITDA $ 21,006 $ 12,146 $29,355 $ 28,059 $ 22,178 $(12,566) $100,178
------- ---- --------- ------ --- --------- ------- ---- ------- -------
Three months ended March 31, 2024
---------------------------------------------------------------------------------------------------
Technology & Gaming & Health & Cybersecurity Corporate
Shopping Entertainment Wellness Connectivity & Martech (1) Total
------------ --------------- ---------- ---------------- --------------- --------- ----------
Revenues $ 69,267 $ 36,640 $ 79,978 $ 53,148 $ 75,452 $ -- $314,485
(Loss) income
from
operations $ (6,635) $ 10,515 $ 8,600 $ 19,359 $ 19,428 $(15,406) $ 35,861
Depreciation
and
amortization 17,914 2,392 13,399 7,001 7,740 7 48,453
Share-based
compensation 1,178 188 1,341 633 1,134 4,398 8,872
Acquisition,
integration,
and other
costs 1,663 334 2,858 (47) 864 594 6,266
Disposal
related
costs 366 -- -- -- -- 130 496
Lease asset
impairments
and other
charges 138 -- -- -- 477 188 803
------- ---- --------- ------ ------- --- ---- --------- ------- -------
Adjusted EBITDA $ 14,624 $ 13,429 $ 26,198 $ 26,946 $ 29,643 $(10,089) $100,751
------- ---- --------- ------ ------- --- ---- --------- ------- -------
________________________________
Figures above are net of inter-segment revenues and operating costs and
expenses. Prior period segment information is presented on a comparable basis
to conform to our new segment presentation with no effect on previously
reported consolidated results.
(1) Corporate includes certain unallocated overhead costs that were
historically presented within the Digital Media reportable segment.
ZIFF DAVIS, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(UNAUDITED, IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
The following tables set forth a reconciliation of Net income
to Adjusted net income with adjustments presented on after-tax
basis:
Three months ended March 31,
--------------------------------------------
Per
diluted Per diluted
2025 share (1) 2024 share (1)
-------- ---------- -------- ------------
Net income $24,239 $ 0.56 $10,627 $ 0.23
Interest, net 61 -- (5) --
Loss on sale
of
businesses -- -- 3,780 0.08
Loss on
investments,
net -- -- 9,668 0.21
(Income) loss
from equity
method
investment,
net of tax (6,630) (0.16) 645 0.01
Amortization 21,868 0.51 20,085 0.44
Share-based
compensation 9,816 0.23 7,786 0.17
Acquisition,
integration,
and other
costs (442) (0.01) 4,871 0.11
Disposal
related
costs 1 -- 372 0.01
Lease asset
impairment
and other
charges 27 -- 643 0.01
Dilutive
effect of the
convertible
debt -- 0.01 -- --
------ ------
Adjusted net
income $48,940 $ 1.14 $58,472 $ 1.27
------ ------
________________________________
(1) The reconciliation of Net income per diluted share to Adjusted net
income per diluted share may not foot since each is calculated
independently.
ZIFF DAVIS, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(UNAUDITED, IN THOUSANDS)
The following are the adjustments to certain statement of operations items used to derive Adjusted net income, which we believe provide useful information about our operating results
and enhance the overall understanding of past financial performance and future prospects of the Company.
Three months ended March 31, 2025
--------------------------------------------------------------------------------------------------------------------------------------------------------------------
Adjustments
------------------------------------------------------------------------------------------------------------------------------------------
(Income) loss
(Gain) from equity Acquisition, Lease asset
loss on (Gain) loss on method integration, Disposal impairments Adjusted
GAAP sale of investments, investments, Share-based and other related and other non-GAAP
amount Interest, net business net net Amortization compensation costs costs charges amount
---------- ------------- ---------- -------------- ---------------- ---------------- -------------- ---------------- ---------- ------------- ------------
Direct costs $ (47,208) $ -- $ -- $ -- $ -- $ -- $ 63 $ 66 $ -- $ -- $ (47,079)
Sales and
marketing $(127,680) -- -- -- -- -- 986 982 -- -- $(125,712)
Research,
development,
and
engineering $ (15,876) -- -- -- -- -- 790 (65) -- -- $ (15,151)
General,
administrative,
and other
related costs $ (46,910) -- -- -- -- -- 7,913 (1,540) 1 20 $ (40,516)
Depreciation and
amortization $ (55,832) -- -- -- -- 28,791 -- -- -- -- $ (27,041)
Interest
expense, net $ (6,131) 81 -- -- -- -- -- -- -- -- $ (6,050)
Income tax
expense (1) $ (8,587) (20) -- -- -- (6,923) 64 115 -- 7 $ (15,344)
Income from
equity method
investment, net
of tax $ 6,630 -- -- -- (6,630) -- -- -- -- -- $ --
---- --- --- ----- ----- ------- ------- ------- --- ---- -------- ------- --- --- ----- ----- ------
Total non-GAAP
adjustments $ 61 $ -- $ -- $ (6,630) $ 21,868 $ 9,816 $ (442) $ 1 $ 27
---- --- --- ----- ----- ------- ------- ------- --- ---- -------- ------- --- ----- ----- ------
________________________________
(1) Adjusted effective tax rate was approximately 23.9% for the three
months ended March 31, 2025. The calculation is based on a ratio where
the numerator is the adjusted income tax expense of $15,344 and the
denominator is $64,284, which equals adjusted net income of $48,940
plus adjusted income tax expense.
ZIFF DAVIS, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(UNAUDITED, IN THOUSANDS)
Three months ended March 31, 2024
--------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Adjustments
------------------------------------------------------------------------------------------------------------------------------------------------
(Income) loss
(Gain) from equity Lease asset
loss on (Gain) loss on method Acquisition, Disposal impairments Adjusted
GAAP sale of investments, investments, Share-based integration, related and other non-GAAP
amount Interest, net business net net Amortization compensation and other costs costs charges amount
---------- ------------- ---------- ---------------- -------------- ---------------- ---------------- ---------------- ------------ --------------- ------------
Direct costs $ (45,887) $ -- $ -- $ -- $ -- $ -- $ 61 $ 170 $ -- $ -- $ (45,656)
Sales and
marketing $(117,000) -- -- -- -- -- 758 541 -- -- $(115,701)
Research,
development,
and
engineering $ (17,774) -- -- -- -- -- 1,090 223 40 -- $ (16,421)
General,
administrative,
and other
related costs $ (49,510) -- -- -- -- -- 6,963 5,332 456 803 $ (35,956)
Depreciation and
amortization $ (48,453) -- -- -- -- 26,424 -- -- -- -- $ (22,029)
Interest
expense, net $ (1,769) (7) -- -- -- -- -- -- -- -- $ (1,776)
Loss on sale of
business $ (3,780) -- 3,780 -- -- -- -- -- -- -- $ --
Loss on
investments,
net $ (10,705) -- -- 10,705 -- -- -- -- -- -- $ --
Income tax
expense (1) $ (8,231) 2 -- (1,037) -- (6,339) (1,086) (1,395) (124) (160) $ (18,370)
Loss from equity
method
investment, net
of tax $ (645) -- -- -- 645 -- -- -- -- -- $ --
--- ---- ------ ------- --- ----- ------- ------- --- ------- --- ------- --- ---- ----- ----
Total non-GAAP
adjustments $ (5) $ 3,780 $ 9,668 $ 645 $ 20,085 $ 7,786 $ 4,871 $ 372 $ 643
--- --- ------ ------- --- ----- ------- ------- --- ------- --- ------- --- ---- ----- ----
________________________________
(1) Adjusted effective tax rate was approximately 23.9% for the three
months ended March 31, 2024. The calculation is based on a ratio where
the numerator is the adjusted income tax expense of $18,370 and the
denominator is $76,841, which equals adjusted net income of $58,472
plus adjusted income tax expense.
ZIFF DAVIS, INC. AND SUBSIDIARIES RECONCILIATION OF
GAAP TO NON-GAAP FINANCIAL MEASURES (UNAUDITED, IN
THOUSANDS)
The following tables set forth a reconciliation of Net
cash provided by operating activities to Free cash
flow:
2025 Q1 Q2 Q3 Q4 YTD
----------- ------------ --- --- --- ------------
Net cash
provided
by
operating
activities $ 20,613 $-- $-- $-- $ 20,613
Less:
Purchases
of
property
and
equipment (25,619) -- -- -- (25,619)
------- --------
Free cash
flow $ (5,006) $-- $-- $-- $ (5,006)
------- --------
2024 Q1 Q2 Q3 Q4 YTD
----------- --------- --------- --------- --------- ------------
Net cash
provided
by
operating
activities $ 75,558 $ 50,564 $105,960 $158,233 $ 390,315
Less:
Purchases
of
property
and
equipment (28,129) (25,504) (25,843) (27,159) (106,635)
------- ------- ------- ------- --------
Free cash
flow $ 47,429 $ 25,060 $ 80,117 $131,074 $ 283,680
------- ------- ------- ------- --------
View source version on businesswire.com: https://www.businesswire.com/news/home/20250508387500/en/
CONTACT: Alan Steier
Investor Relations
Ziff Davis, Inc.
investor@ziffdavis.com
Rebecca Wright
Corporate Communications
Ziff Davis, Inc.
press@ziffdavis.com
(END) Dow Jones Newswires
May 08, 2025 18:00 ET (22:00 GMT)
免責聲明：投資有風險，本文並非投資建議，以上內容不應被視為任何金融產品的購買或出售要約、建議或邀請，作者或其他用戶的任何相關討論、評論或帖子也不應被視為此類內容。本文僅供一般參考，不考慮您的個人投資目標、財務狀況或需求。TTM對信息的準確性和完整性不承擔任何責任或保證，投資者應自行研究並在投資前尋求專業建議。