Latest news with #VivekShah
Yahoo
4 days ago
- Business
- Yahoo
Ziff Davis (NASDAQ:ZD) Surprises With Strong Q2, Stock Soars
Digital media company Ziff Davis (NASDAQ:ZD) reported revenue ahead of Wall Street's expectations in Q2 CY2025, with sales up 9.8% year on year to $352.2 million. The company's full-year revenue guidance of $1.47 billion at the midpoint came in 0.5% above analysts' estimates. Its non-GAAP profit of $1.24 per share was 4.5% above analysts' consensus estimates. Is now the time to buy Ziff Davis? Find out in our full research report. Ziff Davis (ZD) Q2 CY2025 Highlights: Revenue: $352.2 million vs analyst estimates of $337.1 million (9.8% year-on-year growth, 4.5% beat) Adjusted EPS: $1.24 vs analyst estimates of $1.19 (4.5% beat) Adjusted EBITDA: $107.7 million vs analyst estimates of $101.2 million (30.6% margin, 6.4% beat) The company reconfirmed its revenue guidance for the full year of $1.47 billion at the midpoint Management reiterated its full-year Adjusted EPS guidance of $6.96 at the midpoint EBITDA guidance for the full year is $523.5 million at the midpoint, above analyst estimates of $516.9 million Operating Margin: 9.5%, in line with the same quarter last year Free Cash Flow Margin: 7.6%, similar to the same quarter last year Market Capitalization: $1.30 billion 'We are very pleased with our second quarter results, which exceeded expectations and marked our strongest quarterly revenue growth since 2021,' said Vivek Shah, Chief Executive Officer of Ziff Davis. Company Overview Originally a pioneering technology publisher founded in 1927 that became famous for PC Magazine, Ziff Davis (NASDAQ:ZD) operates a portfolio of digital media brands and subscription services across technology, shopping, gaming, healthcare, and cybersecurity markets. Revenue Growth A company's long-term sales performance is one signal of its overall quality. Any business can have short-term success, but a top-tier one grows for years. With $1.45 billion in revenue over the past 12 months, Ziff Davis is a small player in the business services space, which sometimes brings disadvantages compared to larger competitors benefiting from economies of scale and numerous distribution channels. As you can see below, Ziff Davis struggled to increase demand as its $1.45 billion of sales for the trailing 12 months was close to its revenue five years ago. This shows demand was soft, a poor baseline for our analysis. We at StockStory place the most emphasis on long-term growth, but within business services, a half-decade historical view may miss recent innovations or disruptive industry trends. Ziff Davis's annualized revenue growth of 2.7% over the last two years is above its five-year trend, but we were still disappointed by the results. This quarter, Ziff Davis reported year-on-year revenue growth of 9.8%, and its $352.2 million of revenue exceeded Wall Street's estimates by 4.5%. Looking ahead, sell-side analysts expect revenue to grow 2.1% over the next 12 months, similar to its two-year rate. This projection doesn't excite us and implies its newer products and services will not lead to better top-line performance yet. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. Operating Margin Operating margin is an important measure of profitability as it shows the portion of revenue left after accounting for all core expenses – everything from the cost of goods sold to advertising and wages. It's also useful for comparing profitability across companies with different levels of debt and tax rates because it excludes interest and taxes. Ziff Davis has managed its cost base well over the last five years. It demonstrated solid profitability for a business services business, producing an average operating margin of 12%. Looking at the trend in its profitability, Ziff Davis's operating margin decreased by 5.9 percentage points over the last five years. Even though its historical margin was healthy, shareholders will want to see Ziff Davis become more profitable in the future. This quarter, Ziff Davis generated an operating margin profit margin of 9.5%, in line with the same quarter last year. This indicates the company's overall cost structure has been relatively stable. Earnings Per Share We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company's growth is profitable. Sadly for Ziff Davis, its EPS declined by 1.7% annually over the last five years while its revenue was flat. This tells us the company struggled because its fixed cost base made it difficult to adjust to choppy demand. Diving into the nuances of Ziff Davis's earnings can give us a better understanding of its performance. As we mentioned earlier, Ziff Davis's operating margin was flat this quarter but declined by 5.9 percentage points over the last five years. This was the most relevant factor (aside from the revenue impact) behind its lower earnings; interest expenses and taxes can also affect EPS but don't tell us as much about a company's fundamentals. Like with revenue, we analyze EPS over a more recent period because it can provide insight into an emerging theme or development for the business. For Ziff Davis, its two-year annual EPS growth of 3.1% was higher than its five-year trend. Accelerating earnings growth is almost always an encouraging data point. In Q2, Ziff Davis reported adjusted EPS at $1.24, up from $1.18 in the same quarter last year. This print beat analysts' estimates by 4.5%. Over the next 12 months, Wall Street expects Ziff Davis's full-year EPS of $6.60 to grow 3.8%. Key Takeaways from Ziff Davis's Q2 Results We enjoyed seeing Ziff Davis beat analysts' revenue expectations this quarter. We were also happy its full-year EPS guidance outperformed Wall Street's estimates. Overall, we think this was a solid quarter with some key areas of upside. The stock traded up 6.6% to $33.15 immediately following the results. Ziff Davis had an encouraging quarter, but one earnings result doesn't necessarily make the stock a buy. Let's see if this is a good investment. The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it's free. Sign in to access your portfolio
Business Wire
4 days ago
- Business
- Business Wire
Ziff Davis Reports Second Quarter 2025 Financial Results and Reaffirms 2025 Guidance
NEW YORK--(BUSINESS WIRE)--Ziff Davis, Inc. (NASDAQ: ZD) ('Ziff Davis' or 'the Company') today reported unaudited financial results for the second quarter ended June 30, 2025. 'We are very pleased with our second quarter results, which exceeded expectations and marked our strongest quarterly revenue growth since 2021,' said Vivek Shah, Chief Executive Officer of Ziff Davis. 'Our new segment reporting is providing greater transparency into the intrinsic value of our key businesses, including breakthrough results from our Connectivity and Health & Wellness businesses.' SECOND QUARTER 2025 RESULTS Q2 2025 quarterly revenues increased 9.8% to $352.2 million compared to $320.8 million for Q2 2024. Income from operations increased 17.2% to $33.5 million compared to $28.6 million for Q2 2024. Net income (1) decreased to $26.3 million compared to $36.9 million for Q2 2024. Net income per diluted share (1) decreased to $0.62 in Q2 2025 compared to $0.77 for Q2 2024. Adjusted EBITDA (2) for the quarter increased 11.8% to $107.7 million compared to $96.3 million for Q2 2024. Adjusted net income (2) decreased to $51.6 million compared to $53.7 million for Q2 2024. Adjusted net income per diluted share (1)(2) (or 'Adjusted diluted EPS') for the quarter increased 5.1% to $1.24 compared to $1.18 for Q2 2024. Net cash provided by operating activities was $57.1 million in Q2 2025 compared to $50.6 million in Q2 2024. Free cash flow (2) was $26.9 million in Q2 2025 compared to $25.1 million in Q2 2024. Ziff Davis deployed approximately $11.4 million for current and prior year acquisitions during the quarter and $33.9 million related to share repurchases in Q2 2025. The following table reflects results for the three and six months ended June 30, 2025 and 2024, respectively (in millions, except per share amounts). Notes: (1) GAAP effective tax rates were approximately 16.8% and 19.9% for the three months ended June 30, 2025 and 2024, respectively, and 24.9% and 27.9% for the six months ended June 30, 2025 and 2024, respectively. Adjusted effective tax rates were approximately 24.6% and 23.3% for the three months ended June 30, 2025 and 2024, respectively, and 24.2% and 23.6% for the six months ended June 30, 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 reportable segments 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. Expand ZIFF DAVIS GUIDANCE The Company reaffirms its guidance for fiscal year 2025 as follows (in millions, except per share data): ____________________ (1) It is anticipated that the Adjusted effective tax rate for 2025 will be between 23.25% and 25.25%. Expand 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 second quarter 2025 financial results on Thursday, August 7, 2025, at 8:30AM ET. The live webcast and call will be accessible by phone by dialing (844) 985-2014 or via Following the event, the audio recording and presentation materials will be archived and made available at 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 '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, and the 'Ziff Davis Guidance' section regarding the Company's expected fiscal 2025 financial performance. 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 The forward-looking statements provided in this press release, including those contained in Vivek Shah's quote and in the 'Ziff Davis Guidance' portion regarding the Company's expected fiscal 2025 financial performance 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. Three months ended June 30, Six months ended June 30, 2025 2024 2025 2024 Total revenues $ 352,209 $ 320,800 $ 680,845 $ 635,285 Operating costs and expenses: Direct costs 48,974 50,024 96,182 95,911 Sales and marketing 141,598 124,766 269,278 241,766 Research, development, and engineering 16,478 16,795 32,354 34,569 General, administrative, and other related costs 54,070 48,505 100,980 98,015 Depreciation and amortization 57,606 52,141 113,438 100,594 Total operating costs and expenses 318,726 292,231 612,232 570,855 Income from operations 33,483 28,569 68,613 64,430 Interest expense, net (6,523 ) (1,804 ) (12,654 ) (3,573 ) Loss on sale of businesses — — — (3,780 ) Gain (loss) on investments, net 4,340 3,051 4,340 (7,654 ) Other (loss) income, net (5,786 ) 5,267 (8,589 ) 5,163 Income before income tax expense and income from equity method investment 25,514 35,083 51,710 54,586 Income tax expense (4,286 ) (6,990 ) (12,873 ) (15,221 ) Income from equity method investment, net of tax 5,115 8,817 11,745 8,172 Net income $ 26,343 $ 36,910 $ 50,582 $ 47,537 Net income per common share: Basic $ 0.63 $ 0.81 $ 1.20 $ 1.04 Diluted $ 0.62 $ 0.77 $ 1.19 $ 1.02 Weighted average shares outstanding: Basic 41,732,800 45,492,809 42,143,165 45,676,726 Expand ZIFF DAVIS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED, IN THOUSANDS) Six months ended June 30, 2025 2024 Cash flows from operating activities: Net income $ 50,582 $ 47,537 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 113,438 100,594 Non-cash operating lease costs 4,325 5,538 Share-based compensation 21,479 20,472 Provision for credit losses on accounts receivable 1,012 1,336 Deferred income taxes, net (7,320 ) (7,869 ) Loss on sale of businesses — 3,780 Changes in fair value of contingent consideration (2,318 ) — Income from equity method investments, net (11,745 ) (8,172 ) (Gain) loss on investments, net (4,340 ) 7,654 Other 1,701 1,779 Decrease (increase) in: Accounts receivable 147,417 44,215 Prepaid expenses and other current assets (523 ) (9,138 ) Other assets 1,900 (375 ) Increase (decrease) in: Accounts payable (231,065 ) (80,548 ) Deferred revenue 464 13,108 Accrued liabilities and other current liabilities (7,320 ) (13,789 ) Net cash provided by operating activities 77,687 126,122 Cash flows from investing activities: Purchases of property and equipment (55,752 ) (53,633 ) Acquisitions, net of cash received (50,345 ) (56,698 ) Distribution from equity method investment 9,196 — Proceeds from sale of equity investments 25,250 19,455 Proceeds from sale of businesses, net of cash divested — 7,860 Other 51 (124 ) Net cash used in investing activities (71,600 ) (83,140 ) Cash flows from financing activities: Repurchase of common stock (68,834 ) (87,928 ) Issuance of common stock under employee stock purchase plan 3,751 4,525 Deferred payments for acquisitions (213 ) (7,417 ) Other (1,592 ) (940 ) Net cash used in financing activities (66,888 ) (91,760 ) Effect of exchange rate changes on cash and cash equivalents 12,180 (1,600 ) Net change in cash and cash equivalents (48,621 ) (50,378 ) Cash and cash equivalents at beginning of period 505,880 737,612 Cash and cash equivalents at end of period $ 457,259 $ 687,234 Expand 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, litigation costs from discrete, complex, or unusual proceedings, 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, litigation costs from discrete, complex, or unusual proceedings, 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. The following table sets forth a reconciliation of Net income to Adjusted EBITDA: Three months ended June 30, Six months ended June 30, 2025 2024 2025 2024 Net income $ 26,343 $ 36,910 $ 50,582 $ 47,537 Interest expense, net 6,523 1,804 12,654 3,573 Loss on sale of businesses — — — 3,780 (Gain) loss on investment, net (4,340 ) (3,051 ) (4,340 ) 7,654 Other loss (income), net 5,786 (5,267 ) 8,589 (5,163 ) Income tax expense 4,286 6,990 12,873 15,221 Income from equity method investment, net of tax (5,115 ) (8,817 ) (11,745 ) (8,172 ) Depreciation and amortization 57,606 52,141 113,438 100,594 Share-based compensation 11,727 11,600 21,479 20,472 Acquisition, integration, and other costs 3,987 3,837 3,430 10,103 Disposal related costs — 77 1 573 Lease asset impairments and other charges 851 40 871 843 Adjusted EBITDA $ 107,654 $ 96,264 $ 207,832 $ 197,015 Expand Three months ended June 30, 2024 Technology & Shopping Gaming & Entertainment Health & Wellness Connectivity Cybersecurity & Martech Corporate (1) Total (Loss) income from operations $ (8,067 ) $ 8,198 $ 13,302 $ 21,702 $ 11,547 $ (18,113 ) $ 28,569 Depreciation and amortization 19,863 2,841 13,013 7,617 8,800 7 52,141 Share-based compensation 1,625 327 1,509 764 1,222 6,153 11,600 Acquisition, integration, and other costs 4,086 916 2,276 (5,923 ) 471 2,011 3,837 Disposal related costs — — — — 20 57 77 Lease asset impairments and other charges (162 ) — 15 — 105 82 40 Adjusted EBITDA $ 17,345 $ 12,282 $ 30,115 $ 24,160 $ 22,165 $ (9,803 ) $ 96,264 Expand ____________________ 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. Expand The following tables set forth a reconciliation of Net income to Adjusted net income with adjustments presented on after-tax basis: Three months ended June 30, 2025 Per diluted share (1) 2024 Per diluted share (1) Net income $ 26,343 $ 0.62 $ 36,910 $ 0.77 Interest, net 61 — 17 — Gain on sale of businesses — — (3,668 ) (0.08 ) Gain on investments, net (4,340 ) (0.10 ) (2,591 ) (0.06 ) Income from equity method investment, net of tax (5,115 ) (0.12 ) (8,817 ) (0.19 ) Amortization 23,183 0.56 21,179 0.47 Share-based compensation 7,842 0.19 9,421 0.21 Acquisition, integration, and other costs 3,002 0.07 1,214 0.03 Disposal related costs — — 60 — Lease asset impairment and other charges 656 0.02 14 — Dilutive effect of the convertible debt — — — 0.03 Adjusted net income $ 51,632 $ 1.24 $ 53,739 $ 1.18 Expand Six months ended June 30, 2025 Per diluted share (1) 2024 Per diluted share (1) Net income $ 50,582 $ 1.19 $ 47,537 $ 1.02 Interest, net 122 — 12 — Loss on sale of business — — 112 — (Gain) loss on investments, net (4,340 ) (0.10 ) 7,077 0.15 Income from equity method investment, net (11,745 ) (0.28 ) (8,172 ) (0.18 ) Amortization 45,051 1.07 41,264 0.90 Share-based compensation 17,658 0.42 17,207 0.38 Acquisition, integration and other costs 2,560 0.06 6,085 0.13 Disposal related costs 1 — 432 0.01 Lease asset impairment and other charges 683 0.02 657 0.01 Dilutive effect of the convertible debt — — — 0.03 Adjusted net income $ 100,572 $ 2.38 $ 112,211 $ 2.45 Expand ____________________ (1) The reconciliation of Net income per diluted share to Adjusted net income per diluted share may not foot since each is calculated independently. Expand 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, 2025 GAAP amount Adjustments Adjusted non-GAAP amount Interest, net (Gain) loss on sale of business (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 $ (48,974 ) $ — $ — $ — $ — $ — $ 68 $ (6 ) $ — $ — $ (48,912 ) Sales and marketing $ (141,598 ) — — — — — 1,349 1,237 — — $ (139,012 ) Research, development, and engineering $ (16,478 ) — — — — — 937 303 — — $ (15,238 ) General, administrative, and other related costs $ (54,070 ) — — — — — 9,373 2,453 — 851 $ (41,393 ) Depreciation and amortization $ (57,606 ) — — — — 30,658 — — — — $ (26,948 ) Interest expense, net $ (6,523 ) 82 — — — — — — — — $ (6,441 ) Gain on investments, net $ 4,340 — — (4,340 ) — — — — — — $ — Other loss, net $ (5,786 ) — — — — — — — — — $ (5,786 ) Income tax expense (1) $ (4,286 ) (21 ) — — — (7,475 ) (3,885 ) (985 ) — (195 ) $ (16,847 ) Income from equity method investment, net of tax $ 5,115 — — — (5,115 ) — — — — — $ — Total non-GAAP adjustments $ 61 $ — $ (4,340 ) $ (5,115 ) $ 23,183 $ 7,842 $ 3,002 $ — $ 656 Expand ____________________ (1) Adjusted effective tax rate was approximately 24.6% for the three months ended June 30, 2025. The calculation is based on a ratio where the numerator is the adjusted income tax expense of $16,847 and the denominator is $68,479, which equals adjusted net income of $51,632 plus adjusted income tax expense. Expand Three months ended June 30, 2024 GAAP amount Adjustments Adjusted non-GAAP amount Interest, net (Gain) loss on sale of business (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 $ (50,024 ) $ — $ — $ — $ — $ — $ 62 $ 101 $ — $ — $ (49,861 ) 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 $ (48,505 ) — — — — — 9,374 516 77 40 $ (38,498 ) Depreciation and amortization $ (52,141 ) — — — — 27,856 — — — — $ (24,285 ) Interest expense, net $ (1,804 ) 23 — — — — — — — — $ (1,781 ) Gain on investments, 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 of tax $ 8,817 — — — (8,817 ) — — — — — $ — Expand ____________________ (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 $70,037, which equals adjusted net income of $53,739 plus adjusted income tax expense. Expand Six months ended June 30, 2025 GAAP amount Adjustments Adjusted non-GAAP amount Interest, net (Gain) loss on sale of business (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 $ (96,182 ) $ — $ — $ — $ — $ — $ 131 $ 60 $ — $ — $ (95,991 ) Sales and marketing $ (269,278 ) — — — — — 2,335 2,219 — — $ (264,724 ) Research, development, and engineering $ (32,354 ) — — — — — 1,727 238 — — $ (30,389 ) General, administrative, and other related costs $ (100,980 ) — — — — — 17,286 913 1 871 $ (81,909 ) Depreciation and amortization $ (113,438 ) — — — — 59,449 — — — — $ (53,989 ) Interest expense, net $ (12,654 ) 163 — — — — — — — — $ (12,491 ) Gain on investments, net $ 4,340 — — (4,340 ) — — — — — — $ — Other loss, net $ (8,589 ) — — — — — — — — — $ (8,589 ) Income tax expense (1) $ (12,873 ) (41 ) — — — (14,398 ) (3,821 ) (870 ) — (188 ) $ (32,191 ) Income from equity method investment, net $ 11,745 — — — (11,745 ) — — — — — $ — Expand Six months ended June 30, 2024 GAAP amount Adjustments Adjusted non-GAAP amount Interest, net (Gain) loss on sale of business (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 $ (95,911 ) $ — $ — $ — $ — $ — $ 123 $ 271 $ — $ — $ (95,517 ) 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 $ (98,015 ) — — — — — 16,337 5,848 533 843 $ (74,454 ) Depreciation and amortization $ (100,594 ) — — — — 54,280 — — — — $ (46,314 ) Interest expense, net $ (3,573 ) 16 — — — — — — — — $ (3,557 ) Loss on sale of business $ (3,780 ) — 3,780 — — — — — — — $ — Loss on investments, net $ (7,654 ) — — 7,654 — — — — — — $ — Other income, net $ 5,163 — (4,890 ) — — — — (537 ) — — $ (264 ) Income tax expense (1) $ (15,221 ) (4 ) 1,222 (577 ) — (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 $ 7,077 $ (8,172 ) $ 41,264 $ 17,207 $ 6,085 $ 432 $ 657 Expand ____________________ (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. Expand 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 $ 57,074 $ — $ — $ 77,687 Less: Purchases of property and equipment (25,619 ) (30,133 ) — — (55,752 ) Free cash flow $ (5,006 ) $ 26,941 $ — $ — $ 21,935 Expand Expand
Yahoo
16-07-2025
- Business
- Yahoo
Ziff Davis to Announce Second Quarter 2025 Earnings
NEW YORK, July 16, 2025--(BUSINESS WIRE)--Ziff Davis, Inc. (NASDAQ: ZD) will release its Second Quarter 2025 Earnings at 6:00PM ET on Wednesday, August 6, 2025. Additionally, Ziff Davis invites the public, members of the press, the financial community, stockholders, and other interested parties to listen to a live audio Webcast of its Second Quarter 2025 Earnings Call at 8:30AM ET on Thursday, August 7, 2025. Vivek Shah, Chief Executive Officer, and Bret Richter, Chief Financial Officer, will host the call. Materials presented during the call will be posted on the Company's web site at and furnished as an exhibit to the Company's 8-K filed with the Securities and Exchange Commission pursuant to Regulation FD in connection with the Company's earnings announcement. What: Ziff Davis, Inc. Second Quarter 2025 Earnings Release and Call When: Earnings Release on August 6, 2025, at 6:00PM (ET) Earnings Call on August 7, 2025, at 8:30AM (ET) Where: or dial in at (844) 985-2014 Questions for the Earnings Call will be taken via email at investor@ and can be sent any time prior to or during the live audio Webcast. If you are unable to join the live call/Webcast, the audio recording and presentation materials will be archived at About Ziff Davis Ziff Davis (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 View source version on Contacts Investor RelationsZiff Davis, Rebecca WrightCorporate CommunicationsZiff Davis,
Business Wire
16-07-2025
- Business
- Business Wire
Ziff Davis to Announce Second Quarter 2025 Earnings
NEW YORK--(BUSINESS WIRE)--Ziff Davis, Inc. (NASDAQ: ZD) will release its Second Quarter 2025 Earnings at 6:00PM ET on Wednesday, August 6, 2025. Additionally, Ziff Davis invites the public, members of the press, the financial community, stockholders, and other interested parties to listen to a live audio Webcast of its Second Quarter 2025 Earnings Call at 8:30AM ET on Thursday, August 7, 2025. Vivek Shah, Chief Executive Officer, and Bret Richter, Chief Financial Officer, will host the call. Materials presented during the call will be posted on the Company's web site at and furnished as an exhibit to the Company's 8-K filed with the Securities and Exchange Commission pursuant to Regulation FD in connection with the Company's earnings announcement. Questions for the Earnings Call will be taken via email at investor@ and can be sent any time prior to or during the live audio Webcast. If you are unable to join the live call/Webcast, the audio recording and presentation materials will be archived at About Ziff Davis Ziff Davis (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
Yahoo
11-06-2025
- Business
- Yahoo
ZD Q1 Earnings Call: Ad Markets Drive Growth, Profit Falls Short of Expectations
Digital media company Ziff Davis (NASDAQ:ZD) reported revenue ahead of Wall Street's expectations in Q1 CY2025, with sales up 4.5% year on year to $328.6 million. The company's full-year revenue guidance of $1.47 billion at the midpoint came in 0.9% above analysts' estimates. Its non-GAAP profit of $1.14 per share was 8.5% below analysts' consensus estimates. Is now the time to buy ZD? Find out in our full research report (it's free). Revenue: $328.6 million vs analyst estimates of $324 million (4.5% year-on-year growth, 1.4% beat) Adjusted EPS: $1.14 vs analyst expectations of $1.25 (8.5% miss) Adjusted EBITDA: $100.2 million vs analyst estimates of $100.1 million (30.5% margin, in line) The company reconfirmed its revenue guidance for the full year of $1.47 billion at the midpoint Management reiterated its full-year Adjusted EPS guidance of $6.96 at the midpoint EBITDA guidance for the full year is $523.5 million at the midpoint, above analyst estimates of $518.6 million Operating Margin: 10.7%, in line with the same quarter last year Market Capitalization: $1.41 billion Ziff Davis's first quarter highlighted the impact of shifting revenue streams and disciplined cost control across its diversified digital portfolio. CEO Vivek Shah attributed revenue gains to strong growth in Tech and Shopping, fueled by both organic expansion and recent acquisitions, as well as solid advertising performance in Gaming and Entertainment and Health and Wellness. Shah noted that four out of five business segments delivered growth, pointing to margin expansion in CNET and a strategic focus on higher-margin B2B offerings. He acknowledged that the Cybersecurity and Martech segment declined due to timing effects, but emphasized continued momentum in advertising markets and a stable subscription base, stating, 'Our advertising markets—Tech and Shopping, Health and Wellness, Gaming and Entertainment—were strong in Q1 and hold promise for the year.' Looking ahead, Ziff Davis management reaffirmed its full-year outlook, citing confidence in advertising demand, ongoing M&A activity, and expected recovery in segments that underperformed. Shah emphasized that the company is poised for growth acceleration, particularly in Connectivity, with anticipated benefits from Wi-Fi 7 adoption and stabilization in the VPN business. He also highlighted the importance of diversification, ongoing cost management, and capital allocation strategies, including share repurchases and acquisitions. However, Shah flagged macroeconomic uncertainty and potential tariff impacts as areas of caution, noting, 'We remain cautiously optimistic. Obviously, there's a meaningful amount of uncertainty in the world right now.' Management pointed to broad-based advertising growth, successful cost reductions, and active capital allocation as primary contributors to quarterly performance. Margins remained stable despite a mixed segment performance and increased investments. Tech and Shopping momentum: The segment grew nearly 18%, benefiting from organic gains, M&A, and a focus on margin expansion, particularly at CNET and through a 'shrink-to-grow' strategy in B2B that prioritized profitable contracts over unprofitable revenue. Advertising strength across verticals: Tech and Shopping, Gaming and Entertainment, and Health and Wellness all saw robust ad revenue growth, supported by category leadership and direct client relationships; subscription and licensing revenues remained stable in key areas. Connectivity segment poised for rebound: While Connectivity grew 5%, management expects further acceleration with increased demand for wireless networking tools like Ekahau, driven by Wi-Fi 7 deployments and strong results from Speedtest and Downdetector. Cybersecurity and Martech softness: This segment declined due to prior-year timing benefits but is expected to recover in the second half, aided by a stabilizing VPN business and new acquisitions. Active M&A and capital deployment: Ziff Davis closed two acquisitions in Q1 and continues to see compelling opportunities across all segments. The company also repurchased 750,000 shares during the quarter and plans to maintain an active pace of buybacks, citing undervaluation of its stock. Management projects growth driven by continued advertising demand, product innovation, and acquisition integration, while noting that macroeconomic and regulatory risks could affect outcomes. Advertising and market trends: Management expects advertising growth to remain steady, with particular optimism around the Health and Wellness segment following strong annual upfront commitments in pharmaceutical advertising. They also anticipate a positive impact from upcoming gaming releases on ad budgets. Connectivity and technology adoption: The rollout of Wi-Fi 7 is expected to boost demand in the Connectivity segment, especially for Ekahau's wireless tools. Management believes this will drive a reacceleration in the segment and maintain industry-leading margins above 50%. Capital allocation and M&A activity: Ziff Davis plans to continue balancing acquisitions and share repurchases, leveraging its robust balance sheet. Management cautions that macroeconomic volatility, tariffs, and regulatory changes could impact advertising budgets and acquisition opportunities. In upcoming quarters, our team will monitor (1) the pace of recovery in the Cybersecurity and Martech segment, particularly organic VPN growth; (2) the impact of Wi-Fi 7 adoption on Connectivity's top line and margins; and (3) continued execution of M&A integration and share repurchases. We will also track advertising market dynamics and any regulatory or macroeconomic shifts that could influence segment performance. Ziff Davis currently trades at a forward P/E ratio of 4.7×. In the wake of earnings, is it a buy or sell? See for yourself in our full research report (it's free). Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today. Sign in to access your portfolio
