Shares of Ziff Davis, Inc. (ZD) jumped 5.31% in pre-market trading on Friday, following the company's release of its first-quarter 2025 financial results. Despite reporting lower-than-expected earnings, investors appear to be focusing on the company's revenue growth and maintained full-year guidance.
Ziff Davis reported Q1 adjusted earnings of $1.14 per share, down from $1.27 a year earlier and below the FactSet analyst consensus of $1.25. However, the company's revenue for the quarter ended March 31 rose to $328.6 million, up from $314.5 million in the same period last year and surpassing analyst expectations of $322.7 million.
The digital media and internet company reaffirmed its full-year 2025 outlook, maintaining its adjusted EPS guidance of $6.64 to $7.28 and revenue guidance of $1.44 billion to $1.50 billion. This show of confidence in the face of a challenging economic environment appears to be resonating with investors, driving the stock's pre-market rally. The maintained guidance suggests that Ziff Davis management remains optimistic about the company's performance for the remainder of the year, despite the earnings miss in Q1.