Ziff Davis, Inc. (NASDAQ: ZD) (“Ziff Davis” or “the Company”)
today reported unaudited financial results for the second quarter
ended June 30, 2024.
“Our recent acquisition activity gives us confidence that we are
back on the path to steady and compounding growth,” said Vivek
Shah, Chief Executive Officer of Ziff Davis. “We are prepared to
continue to act with conviction and decisiveness on accretive,
value-driving opportunities.”
SECOND QUARTER 2024 RESULTS
- Q2 2024 quarterly revenues decreased 1.6% to $320.8 million
compared to $326.0 million for Q2 2023.
- Income from operations decreased 26.5% to $28.6 million
compared to $38.9 million for Q2 2023.
- Net income (1) increased to $36.9 million compared to $16.7
million for Q2 2023.
- Net income per diluted share (1) increased to $0.77 in Q2 2024
compared to $0.36 for Q2 2023.
- Adjusted EBITDA (2) for the quarter decreased 9.8% to $96.3
million compared to $106.7 million for Q2 2023.
- Adjusted net income (2) decreased 9.8% to $53.7 million
compared to $59.6 million for Q2 2023.
- Adjusted net income per diluted share (1)(2) (or “Adjusted
diluted EPS”) for the quarter decreased 7.1% to $1.18 compared to
$1.27 for Q2 2023.
- Net cash provided by operating activities was $50.6 million in
Q2 2024 compared to $39.7 million in Q2 2023. Free cash flow (2)
was $25.1 million in Q2 2024 compared to $14.5 million in Q2
2023.
- Ziff Davis ended the quarter with approximately $839.7 million
in cash, cash equivalents, and investments after deploying
approximately $84.0 million primarily related to share repurchases
and $17.2 million for current and prior year acquisitions.
The following table reflects results for the three and six
months ended June 30, 2024 and 2023, respectively (in millions,
except per share amounts).
(Unaudited)
Three months ended June
30,
% Change
Six months ended June
30,
% Change
2024
2023
2024
2023
Revenues
Digital Media
$251.8
$252.8
(0.4)%
$490.9
$487.0
0.8%
Cybersecurity and Martech
$69.0
$73.2
(5.8)%
$144.4
$146.2
(1.2)%
Total revenues (3)
$320.8
$326.0
(1.6)%
$635.3
$633.2
0.3%
Income from operations
$28.6
$38.9
(26.5)%
$64.4
$65.2
(1.2)%
Operating income margin
8.9%
11.9%
(3.0)%
10.1%
10.3%
(0.2)%
Net income (1)
$36.9
$16.7
121.3%
$47.5
$9.1
425.2%
Net income per diluted share
(1)
$0.77
$0.36
113.9%
$1.02
$0.19
436.8%
Adjusted EBITDA (2)
$96.3
$106.7
(9.8)%
$197.0
$201.0
(2.0)%
Adjusted EBITDA margin (2)
30.0%
32.7%
(2.7)%
31.0%
31.7%
(0.7)%
Adjusted net income (1)(2)
$53.7
$59.6
(9.8)%
$112.2
$111.3
0.8%
Adjusted diluted EPS (1)(2)
$1.18
$1.27
(7.1)%
$2.45
$2.37
3.4%
Net cash provided by operating
activities
$50.6
$39.7
27.3%
$126.1
$155.0
(18.6)%
Free cash flow (2)
$25.1
$14.5
72.9%
$72.5
$99.8
(27.4)%
Notes:
(1)
GAAP effective tax rates were
approximately 19.9% and 27.2% for the three months ended June 30,
2024 and 2023, respectively, and 27.9% and 23.7% for the six months
ended June 30, 2024 and 2023, respectively. Adjusted effective tax
rates were approximately 23.3% and 24.8% for the three months ended
June 30, 2024 and 2023, respectively, and 23.6% and 24.3% for the
six months ended June 30, 2024 and 2023, 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
report.
(3)
The revenues associated with each of the
businesses may not foot precisely since each is presented
independently.
ZIFF DAVIS GUIDANCE
The Company reaffirms its guidance for fiscal year 2024 as
follows (in millions, except per share data):
2024 Range of
Estimates
Low
High
Revenue
$
1,411.0
$
1,471.0
Adjusted EBITDA
$
500.0
$
521.0
Adjusted diluted EPS*
$
6.43
$
6.77
_______________________________________________________
* Adjusted diluted EPS for 2024 excludes
amortization of acquired intangibles and the impact of any
currently unanticipated items, in each case net of tax. It is
anticipated that the Adjusted effective tax rate for 2024 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 non-operating matters 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 second quarter 2024 financial results on Thursday,
August 8, 2024, 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, connectivity,
health and wellness, 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 2024 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, 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 2024 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)
June 30, 2024
December 31, 2023
ASSETS
Cash and cash equivalents
$
687,234
$
737,612
Short-term investments
—
27,109
Accounts receivable, net of allowances of
$7,302 and $6,871, respectively
450,389
337,703
Prepaid expenses and other current
assets
93,525
88,570
Total current assets
1,231,148
1,190,994
Long-term investments
152,421
140,906
Property and equipment, net of accumulated
depreciation of $334,243 and $327,015, respectively
192,278
188,169
Intangible assets, net
385,820
325,406
Goodwill
1,626,270
1,546,065
Deferred income taxes
8,752
8,731
Other assets
67,125
70,751
TOTAL ASSETS
$
3,663,814
$
3,471,022
LIABILITIES AND STOCKHOLDERS’
EQUITY
Accounts payable
$
367,888
$
123,256
Accrued employee related costs
29,974
50,068
Other accrued liabilities
28,446
43,612
Income taxes payable, current
6,695
14,458
Deferred revenue, current
198,382
184,549
Other current liabilities
12,420
15,890
Total current liabilities
643,805
431,833
Long-term debt
1,002,460
1,001,312
Deferred income taxes
66,349
45,503
Income taxes payable, noncurrent
—
8,486
Deferred revenue, noncurrent
6,816
8,169
Other long-term liabilities
74,497
82,721
TOTAL LIABILITIES
1,793,927
1,578,024
Common stock
447
461
Additional paid-in capital
476,232
472,201
Retained earnings
1,471,543
1,491,956
Accumulated other comprehensive loss
(78,335
)
(71,620
)
TOTAL STOCKHOLDERS’ EQUITY
1,869,887
1,892,998
TOTAL LIABILITIES AND STOCKHOLDERS’
EQUITY
$
3,663,814
$
3,471,022
ZIFF DAVIS, INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(UNAUDITED, IN THOUSANDS
EXCEPT SHARE AND PER SHARE DATA)
Three months ended June
30,
Six months ended June
30,
2024
2023
2024
2023
Total revenues
$
320,800
$
326,016
$
635,285
$
633,158
Operating costs and expenses:
Direct costs
52,590
47,421
99,657
93,151
Sales and marketing
124,766
119,934
241,766
235,854
Research, development, and engineering
16,795
17,817
34,569
35,731
General, administrative, and other related
costs
98,080
101,949
194,863
203,212
Total operating costs and expenses
292,231
287,121
570,855
567,948
Income from operations
28,569
38,895
64,430
65,210
Interest expense, net
(1,804
)
(10,483
)
(3,573
)
(14,963
)
Loss on sale of businesses
—
—
(3,780
)
—
Unrealized loss on short-term investments
held at the reporting date, net
—
(3,196
)
(10,705
)
(23,541
)
Gain on investments
3,051
—
3,051
357
Other income (loss), net
5,267
(1,503
)
5,163
(2,411
)
Income before income tax expense and
income (loss) from equity method investment
35,083
23,713
54,586
24,652
Income tax expense
(6,990
)
(6,461
)
(15,221
)
(5,845
)
Income (loss) from equity method
investment, net of income taxes
8,817
(573
)
8,172
(9,755
)
Net income
$
36,910
$
16,679
$
47,537
$
9,052
Net income per common share:
Basic
$
0.81
$
0.36
$
1.04
$
0.19
Diluted
$
0.77
$
0.36
$
1.02
$
0.19
Weighted average shares outstanding:
Basic
45,492,809
46,798,800
45,676,726
46,892,504
Diluted
50,665,112
46,798,800
50,889,579
46,892,504
ZIFF DAVIS, INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(UNAUDITED, IN
THOUSANDS)
Six months ended June
30,
2024
2023
Cash flows from operating activities:
Net income
$
47,537
$
9,052
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization
100,594
111,479
Non-cash operating lease costs
5,538
5,924
Share-based compensation
20,472
17,619
Provision for credit losses on accounts
receivable
1,336
1,819
Deferred income taxes, net
(7,869
)
(18,330
)
Loss on sale of businesses
3,780
—
(Gain) loss from equity method
investments
(8,172
)
9,755
Unrealized loss on short-term investments
held at the reporting date, net
10,705
23,541
Gain on investments
(3,051
)
(357
)
Other
1,779
3,834
Decrease (increase) in:
Accounts receivable
44,215
20,470
Prepaid expenses and other current
assets
(9,138
)
(13,038
)
Other assets
(375
)
(4,030
)
Increase (decrease) in:
Accounts payable
(80,548
)
(1,332
)
Deferred revenue
13,108
(1,777
)
Accrued liabilities and other current
liabilities
(13,789
)
(9,594
)
Net cash provided by operating
activities
126,122
155,035
Cash flows from investing activities:
Purchases of property and equipment
(53,633
)
(55,250
)
Acquisition of businesses, net of cash
received
(56,698
)
(9,492
)
Proceeds from sale of equity
investments
19,455
3,174
Proceeds on sale of business, net of cash
divested
7,860
—
Other
(124
)
(3,753
)
Net cash used in investing activities
(83,140
)
(65,321
)
Cash flows from financing activities:
Repurchase of common stock
(87,928
)
(62,678
)
Issuance of common stock under employee
stock purchase plan
4,525
4,724
Deferred payments for acquisitions
(7,417
)
(6,679
)
Other
(940
)
21
Net cash used in financing activities
(91,760
)
(64,612
)
Effect of exchange rate changes on cash
and cash equivalents
(1,600
)
1,195
Net change in cash and cash
equivalents
(50,378
)
26,297
Cash and cash equivalents at beginning of
year
737,612
652,793
Cash and cash equivalents at end of
year
$
687,234
$
679,090
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 a 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 business. This gain or loss relates to
the sales of businesses and does not represent recurring core
business operating results of the Company;
- Unrealized (gain) loss on short-term investments held at the
reporting date, net. This is a non-cash item as it relates to the
change in the carrying value of our investment in Consensus
depending on the share price of Consensus common stock and does not
represent core business operating results of the Company;
- (Gain) loss on investments, net. This item relates to the
disposition of a portion of our investment in Consensus. The amount
of gain or loss depends on the share price of Consensus common
stock 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 investments, net. This is a
non-cash expense as it relates to our investment in OCV Fund I, LP
(the “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-used 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. 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 on business. 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 in each period
presented, 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 business. This gain or loss relates to
the sales of businesses and does not represent recurring core
business operating results of the Company;
- Unrealized (gain) loss on short-term investments held at the
reporting date, net. This is a non-cash item as it relates to the
change in the carrying value of our investment in Consensus
depending on the share price of Consensus common stock and does not
represent core business operating results of the Company;
- (Gain) loss on investments, net. This item relates to the
disposition of a portion of our investment in Consensus. The amount
of gain or loss depends on the share price of Consensus common
stock and does not represent core business operating results of the
Company;
- (Income) loss from equity method investments, net. This is a
non-cash income or expense as it relates 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 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. 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 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 on business. 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 June
30,
Six months ended June
30,
2024
2023
2024
2023
Net income
$
36,910
$
16,679
$
47,537
$
9,052
Interest expense, net
1,804
10,483
3,573
14,963
Loss on sale of businesses
—
—
3,780
—
Unrealized loss on short-term investments
held at the reporting date, net
—
3,196
10,705
23,541
Gain on investments, net
(3,051
)
—
(3,051
)
(357
)
Other (income) loss, net
(5,267
)
1,503
(5,163
)
2,411
Income tax expense
6,990
6,461
15,221
5,845
(Income) loss from equity method
investments, net
(8,817
)
(927
)
(8,172
)
8,255
Depreciation and amortization
52,141
56,856
100,594
111,479
Share-based compensation
11,600
9,217
20,472
17,619
Acquisition, integration, and other
costs
3,837
3,369
10,103
6,894
Disposal related costs
77
60
573
209
Lease asset impairments and other
charges
40
(221
)
843
1,098
Adjusted EBITDA
$
96,264
$
106,676
$
197,015
$
201,009
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 Income (loss) from operations to Adjusted
EBITDA by segment:
Three months ended June 30,
2024
Digital Media
Cybersecurity and
Martech
Corporate
Total
Revenues
$
251,816
$
68,984
$
—
$
320,800
Income (loss) from operations
$
35,019
$
11,547
$
(17,997
)
$
28,569
Depreciation and amortization
43,334
8,800
7
52,141
Share-based compensation
4,258
1,222
6,120
11,600
Acquisition, integration, and other
costs
1,489
471
1,877
3,837
Disposal related costs
—
20
57
77
Lease asset impairments and other
charges
(65
)
105
—
40
Adjusted EBITDA
$
84,035
$
22,165
$
(9,936
)
$
96,264
Three months ended June 30,
2023
Digital Media
Cybersecurity and
Martech
Corporate
Total
Revenues
$
252,820
$
73,196
$
—
$
326,016
Income (loss) from operations
$
36,668
$
13,565
$
(11,338
)
$
38,895
Income from equity method investment,
net
—
—
(1,500
)
(1,500
)
Depreciation and amortization
45,259
11,590
7
56,856
Share-based compensation
4,070
1,283
3,864
9,217
Acquisition, integration, and other
costs
3,256
113
—
3,369
Disposal related costs
—
—
60
60
Lease asset impairments and other
charges
(275
)
54
—
(221
)
Adjusted EBITDA
$
88,978
$
26,605
$
(8,907
)
$
106,676
_______________________________________________________
Figures above are net of
intercompany costs and revenues.
ZIFF DAVIS, INC. AND
SUBSIDIARIES
RECONCILIATION OF GAAP TO
NON-GAAP FINANCIAL MEASURES
(UNAUDITED, IN THOUSANDS,
EXCEPT PER SHARE AMOUNTS)
The following table set forth a
reconciliation of Net income to Adjusted net income with
adjustments presented on after-tax basis:
Three months ended June
30,
2024
Per diluted share*
2023
Per diluted share*
Net income
$
36,910
$
0.77
$
16,679
$
0.36
Interest, net
17
—
5,509
0.12
(Gain) loss on sale of business
(3,668
)
(0.08
)
88
—
Unrealized loss on short-term investments
held at the reporting date, net
—
—
2,416
0.05
Gain on investments, net
(2,591
)
(0.06
)
—
—
Income from equity method investments,
net
(8,817
)
(0.19
)
(552
)
(0.01
)
Amortization
21,179
0.47
25,796
0.55
Share-based compensation
9,421
0.21
7,181
0.15
Acquisition, integration, and other
costs
1,214
0.03
2,576
0.05
Disposal related costs
60
—
44
—
Lease asset impairments and other
charges
14
—
(160
)
—
Dilutive effect of the convertible
debt
—
0.03
—
—
Adjusted net income
$
53,739
$
1.18
$
59,577
$
1.27
Six months ended June
30,
2024
Per diluted share*
2023
Per diluted share*
Net income
$
47,537
$
1.02
$
9,052
$
0.19
Interest, net
12
—
5,565
0.12
Loss on sale of business
112
—
88
—
Unrealized loss on short-term investments
held at the reporting date, net
9,668
0.21
17,681
0.38
Gain on investments, net
(2,591
)
(0.06
)
(268
)
(0.01
)
(Income) loss from equity method
investments, net
(8,172
)
(0.18
)
8,630
0.18
Amortization
41,264
0.90
50,418
1.08
Share-based compensation
17,207
0.38
13,998
0.30
Acquisition, integration, and other
costs
6,085
0.13
5,153
0.11
Disposal related costs
432
0.01
156
—
Lease asset impairments and other
charges
657
0.01
830
0.02
Dilutive effect of the convertible
debt
—
0.03
—
0.02
Adjusted net income
$
112,211
$
2.45
$
111,303
$
2.37
_______________________________________________________
* 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 June 30,
2024
GAAP amount
Adjustments
Adjusted non-GAAP
amount
Interest, net
(Gain) loss on sale of
business
Unrealized (gain) loss on
short-term investments held at the reporting date, net
(Gain) loss on investments,
net
(Income) loss from equity
method investments, net
Amortization
Share-based
compensation
Acquisition, integration, and
other costs
Disposal related costs
Lease asset impairments and
other charges
Direct costs
$
(52,590
)
$
—
$
—
$
—
$
—
$
—
$
82
$
62
$
101
$
—
$
—
$
(52,345
)
Sales and marketing
$
(124,766
)
—
—
—
—
—
—
1,093
1,949
—
—
$
(121,724
)
Research, development, and engineering
$
(16,795
)
—
—
—
—
—
—
1,071
1,271
—
—
$
(14,453
)
General, administrative, and other related
costs
$
(98,080
)
—
—
—
—
—
27,774
9,374
516
77
40
$
(60,299
)
Interest expense, net
$
(1,804
)
23
—
—
—
—
—
—
—
—
—
$
(1,781
)
Gain on investment, net
$
3,051
—
—
—
(3,051
)
—
—
—
—
—
—
$
—
Other income, net
$
5,267
—
(4,890
)
—
—
—
—
—
(537
)
—
—
$
(160
)
Income tax expense (1)
$
(6,990
)
(6
)
1,222
—
460
—
(6,677
)
(2,179
)
(2,086
)
(17
)
(26
)
$
(16,299
)
Income from equity method investment,
net
$
8,817
—
—
—
—
(8,817
)
—
—
—
—
—
$
—
Total non-GAAP adjustments
$
17
$
(3,668
)
$
—
$
(2,591
)
$
(8,817
)
$
21,179
$
9,421
$
1,214
$
60
$
14
_______________________________________________________
(1)
Adjusted effective tax rate was
approximately 23.3% for the three months ended June 30, 2024. The
calculation is based on a ratio where the numerator is the adjusted
income tax expense of $16,299 and the denominator is $70,039, which
equals adjusted net income of $53,739 plus adjusted income tax
expense.
ZIFF DAVIS, INC. AND
SUBSIDIARIES
RECONCILIATION OF GAAP TO
NON-GAAP FINANCIAL MEASURES
(UNAUDITED, IN
THOUSANDS)
Three months ended June 30,
2023
GAAP amount
Adjustments
Adjusted non-GAAP
amount
Interest, net
(Gain) loss on sale of
business
Unrealized (gain) loss on
short-term investments held at the reporting date, net
(Gain) loss on investments,
net
(Income) loss from equity
method investments, net
Amortization
Share-based
compensation
Acquisition, integration, and
other costs
Disposal related costs
Lease asset impairments and
other charges
Direct costs
$
(47,421
)
$
—
$
—
$
—
$
—
$
—
$
189
$
94
$
101
$
—
$
—
$
(47,037
)
Sales and marketing
$
(119,934
)
—
—
—
—
—
—
1,038
653
—
—
$
(118,243
)
Research, development, and engineering
$
(17,817
)
—
—
—
—
—
—
958
133
—
—
$
(16,726
)
General, administrative, and other related
costs
$
(101,949
)
—
—
—
—
(1,500
)
33,732
7,127
2,482
60
(221
)
$
(60,269
)
Interest expense, net
$
(10,483
)
7,346
—
—
—
—
—
—
—
—
—
$
(3,137
)
Unrealized loss on short-term investments
held at period end, net
$
(3,196
)
—
—
3,196
—
—
—
—
—
—
—
$
—
Other loss, net
$
(1,503
)
—
118
—
—
—
—
—
—
—
—
$
(1,385
)
Income tax expense (1)
$
(6,461
)
(1,837
)
(30
)
(780
)
—
375
(8,125
)
(2,036
)
(793
)
(16
)
61
$
(19,642
)
Loss from equity method investment,
net
$
(573
)
—
—
—
—
573
—
—
—
—
—
$
—
Total non-GAAP adjustments
$
5,509
$
88
$
2,416
$
—
$
(552
)
$
25,796
$
7,181
$
2,576
$
44
$
(160
)
_______________________________________________________
(1)
Adjusted effective tax rate was
approximately 24.8% for the three months ended June 30, 2023. The
calculation is based on a ratio where the numerator is the adjusted
income tax expense of $19,642 and the denominator is $79,214, which
equals adjusted net income of $59,577 plus adjusted income tax
expense.
ZIFF DAVIS, INC. AND
SUBSIDIARIES
RECONCILIATION OF GAAP TO
NON-GAAP FINANCIAL MEASURES
(UNAUDITED, IN
THOUSANDS)
Six months ended June 30,
2024
GAAP amount
Adjustments
Adjusted non-GAAP
amount
Interest, net
(Gain) loss on sale of
business
Unrealized (gain) loss on
short-term investments held at the reporting date, net
(Gain) loss on investments,
net
(Income) loss from equity
method investments, net
Amortization
Share-based
compensation
Acquisition, integration, and
other costs
Disposal related costs
Lease asset impairments and
other charges
Goodwill impairment of
business
Direct costs
$
(99,657
)
$
—
$
—
$
—
$
—
$
—
$
187
$
123
$
271
$
—
$
—
$
—
$
(99,076
)
Sales and marketing
$
(241,766
)
—
—
—
—
—
—
1,851
2,490
—
—
—
$
(237,425
)
Research, development, and engineering
$
(34,569
)
—
—
—
—
—
—
2,161
1,494
40
—
—
$
(30,874
)
General, administrative, and other related
costs
$
(194,863
)
—
—
—
—
—
54,093
16,337
5,848
533
843
—
$
(117,209
)
Interest expense, net
$
(3,573
)
16
—
—
—
—
—
—
—
—
—
—
$
(3,557
)
Loss on sale of business
$
(3,780
)
—
3,780
—
—
—
—
—
—
—
—
—
$
—
Gain on investment, net
$
3,051
—
—
—
(3,051
)
—
—
—
—
—
—
—
$
—
Unrealized loss on short-term investments
held at period end, net
$
(10,705
)
—
—
10,705
—
—
—
—
—
—
—
—
$
—
Other income, net
$
5,163
—
(4,890
)
—
—
—
—
—
(537
)
—
—
—
$
(264
)
Income tax expense
$
(15,221
)
(4
)
1,222
(1,037
)
460
—
(13,016
)
(3,265
)
(3,481
)
(141
)
(186
)
—
$
(34,669
)
Income from equity method investment,
net
$
8,172
—
—
—
—
(8,172
)
—
—
—
—
—
—
$
—
Total non-GAAP adjustments
$
12
$
112
$
9,668
$
(2,591
)
$
(8,172
)
$
41,264
$
17,207
$
6,085
$
432
$
657
$
—
_______________________________________________________
(1)
Adjusted effective tax rate was
approximately 23.6% for the six months ended June 30, 2024. The
calculation is based on a ratio where the numerator is the adjusted
income tax expense of $34,669 and the denominator is $146,880,
which equals adjusted net income of $112,211 plus adjusted income
tax expense.
ZIFF DAVIS, INC. AND
SUBSIDIARIES
RECONCILIATION OF GAAP TO
NON-GAAP FINANCIAL MEASURES
(UNAUDITED, IN
THOUSANDS)
Six months ended June 30,
2023
GAAP amount
Adjustments
Adjusted non-GAAP
amount
Interest costs, net
(Gain) loss on debt
extinguishment
Unrealized (gain) loss on
short-term investments held at the reporting date, net
(Gain) loss on investments,
net
(Income) loss from equity
method investments, net
Amortization
Share-based
compensation
Acquisition, integration, and
other costs
Disposal related costs
Lease asset impairments and
other charges
Direct costs
$
(93,151
)
$
—
$
—
$
—
$
—
$
—
$
385
$
170
$
186
$
—
$
—
$
(92,410
)
Sales and marketing
$
(235,854
)
—
—
—
—
—
—
1,962
2,072
—
—
$
(231,820
)
Research, development, and engineering
$
(35,731
)
—
—
—
—
—
—
1,741
308
—
—
$
(33,682
)
General, administrative, and other related
costs
$
(203,212
)
—
—
—
—
(1,500
)
67,051
13,746
4,328
209
1,098
$
(118,280
)
Interest expense, net
$
(14,963
)
7,420
—
—
—
—
—
—
—
—
—
$
(7,543
)
Gain on investment, net
$
357
—
—
—
(357
)
—
—
—
—
—
—
$
—
Unrealized loss on short-term investments
held at period end, net
$
(23,541
)
—
—
23,541
—
—
—
—
—
—
—
$
—
Other loss, net
$
(2,411
)
—
—
—
—
—
—
—
—
—
—
$
(2,293
)
Income tax expense
$
(5,845
)
(1,855
)
—
(5,860
)
89
375
(17,018
)
(3,621
)
(1,741
)
(53
)
(268
)
$
(35,827
)
Loss from equity method investment,
net
$
(9,755
)
—
—
—
—
9,755
—
—
—
—
—
$
—
Total non-GAAP adjustments
$
5,565
$
—
$
17,681
$
(268
)
$
8,630
$
50,418
$
13,998
$
5,153
$
156
$
830
_______________________________________________________
(1)
Adjusted effective tax rate was
approximately 24.3% for the six months ended June 30, 2023. The
calculation is based on a ratio where the numerator is the adjusted
income tax expense of $35,827 and the denominator is $147,131,
which equals adjusted net income of $111,303 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:
2024
Q1
Q2
Q3
Q4
YTD
Net cash provided by operating
activities
$
75,558
$
50,564
$
—
$
—
$
126,122
Less: Purchases of property and
equipment
(28,129
)
(25,504
)
—
—
(53,633
)
Free cash flow
$
47,429
$
25,060
$
—
$
—
$
72,489
2023
Q1
Q2
Q3
Q4
YTD
Net cash provided by operating
activities
$
115,307
$
39,728
$
72,808
$
92,119
$
319,962
Less: Purchases of property and
equipment
(30,017
)
(25,233
)
(27,226
)
(26,253
)
(108,729
)
Free cash flow
$
85,290
$
14,495
$
45,582
$
65,866
$
211,233
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240807418158/en/
Alan Steier Investor Relations Ziff Davis, Inc.
investor@ziffdavis.com
Rebecca Wright Corporate Communications Ziff Davis, Inc.
press@ziffdavis.com
Ziff Davis (NASDAQ:ZD)
過去 株価チャート
から 10 2024 まで 11 2024
Ziff Davis (NASDAQ:ZD)
過去 株価チャート
から 11 2023 まで 11 2024
