Slide 1: First Quarter 2022 Results
FIRST QUARTER 2022 RESULTS MAY 10, 2022 ©2022 Ziff Davis. All rights reserved. www.ziffdavis.com
Slide 2: Safe Harbor for Forward-looking Statements
Safe Harbor for Forward-looking Statements Certain statements in this presentation are “forward-looking statements” within the meaning of the Private Industry, Market and Other Data Securities Litigation Reform Act of 1995, particularly those regarding our 2022 Financial Guidance. Such Certain infor
Slide 3: Risk Factors
Risk Factors Some factors that could cause actual results to be materially adversely affected include, but are not limited to, our ability and intention to: • Sustain growth or profitability, particularly in light of an uncertain U.S. or • Manage certain risks inherent to our business, such as costs
Slide 4: Q1 2022 Consolidated Financial Snapshot
Q1 2022 Consolidated Financial Snapshot (1)(2) Note: Pro Forma Results from Continuing Operations excludes divested Voice UK and B2B Backup assets 1.Figures are adjusted non-GAAP; see slide 17 for a reconciliation of the pro-forma adjustments for excluded assets consisting of certain Voice assets in
Slide 5: Advertising Performance
Advertising Performance 2021 2022 (2) Quarterly Advertising Metrics Q1 Q2 Q3 Q4 Q1 (3) Net Revenue Retention 103.7% 111.2% 114.1% 111.9% 106.6% (4) Advertisers 1,705 1,913 1,908 2,198 1,950 (5) Quarterly Revenue per Advertiser $103,981 $103,704 $104,189 $119,932 $87,214 1. Figures exclude any interc
Slide 6: Subscription Performance
Subscription Performance 2021 2022 (2) Quarterly Subscription Metrics Q1 Q2 Q3 Q4 Q1 (3) Subscribers (in '000s) 2,332 2,340 2,290 2,206 2,131 (4) Average Monthly Revenue per Subscriber $16.85 $17.72 $19.69 $20.30 $21.28 (5) Churn Rate 2.75% 2.51% 2.99% 2.97% 3.22% 1. Figures are pro-forma adjusted n
Slide 7: Organic Growth
Organic Growth (1)(2) 2021 2022 TTM Year over Year Growth Rates Q1 Q2 Q3 Q4 Q1 Organic Revenue 9% 20% 12% 2% (3%) 7% Total Revenue 29% 42% 35% 10% 5% 21% 1. TTM relates to the revenues of the last 12 months ended March 31, 2022 2. Revenue from an acquired business becomes organic revenue in the firs
Slide 8: Ziff Davis Capital Structure
Ziff Davis Capital Structure ($ millions) March 31, 2022 Cash and Cash Equivalents $629 (1) Short-term Investments 238 Long-term Investments 122 Total Cash and Investments $989 4.625% High-Yield Notes $587 1.75% Convertible Notes 550 Total Gross Debt $1,137 Multiple of Q1 2022 TTM Adj. EBITDA Gross
Slide 9: 2022 Financial Guidance
2022 FINANCIAL GUIDANCE
Slide 10: 2022 Guidance (Forward-Looking Statements)
2022 Guidance (Forward-Looking Statements) Ziff Davis reaffirms its annual guidance of Revenues, Adjusted non-GAAP EBITDA and Adjusted non-GAAP EPS (1) Ziff Davis FY 2022 Guidance Range Midpoint YoY % Low Midpoint High $ in MM, except for per share amounts Increase vs 2021A Revenue $1,497 $1,516 $1,
Slide 11: Supplemental Information
SUPPLEMENTAL INFORMATION
Slide 12: Q1 2022 Reconciliation of GAAP to Adjusted non-GAAP Earnings & EPS
Q1 2022 Reconciliation of GAAP to Adjusted non-GAAP Earnings & EPS Figures in Thousands Three Months Ended March 31, 2021 2022 Cost of revenues $ 43,852 $ 46,100 Plus: Share based compensation (1) (82) (85) (2) (40) (52) Acquisition related integration costs Amortization (4) (593) (278) Adjusted non
Slide 13: GAAP Reconciliation – Free Cash Flow
GAAP Reconciliation – Free Cash Flow (1)(2) 1. Free Cash Flow is defined as net cash provided by operating activities, less purchases of property, plant and equipment, plus contingent consideration. Free Cash Flow amounts are not meant as a substitute for GAAP, and are solely for informational purpo
Slide 14: GAAP Reconciliation – Adjusted EBITDA
GAAP Reconciliation – Adjusted EBITDA (1)(2) Figures in Thousands Ziff Davis Three Months Ended March 31st, 2021 2022 Net income from continuing operations $ 38,780 $ 24,537 Plus: Interest expense, net 21,477 11,510 Loss (gain) on sale of business (1,979) - Unrealized gain on short-term investment -
Slide 15: Q1 2022 Reconciliation of GAAP to Adjusted EBITDA
Q1 2022 Reconciliation of GAAP to Adjusted EBITDA (1) Figures in Thousands Cybersecurity Digital Media Corporate Total and Martech Revenues GAAP revenues $ 234,695 $ 80,373 $ - $ 315,068 Gross profit GAAP gross profit $ 209,695 $ 59,273 $ - $ 268,968 Non-GAAP adjustments: Share-based compensation 5
Slide 16: Q1 2021 Reconciliation of GAAP to Adjusted EBITDA
Q1 2021 Reconciliation of GAAP to Adjusted EBITDA (1) NOTE 1: Table above excludes certain intercompany allocations 1. Figures are adjusted non-GAAP; and includes the divested assets through the date of their respective divestiture 16
Slide 17: Reconciliation of Non-GAAP to Pro-Forma
Reconciliation of Non-GAAP to Pro-Forma $ in MM, except for per share amounts Q1 2021A Q1 2022A Revenues Stated Revenues $311.7 $315.1 (1) Adjustments ($12.6) $0.0 Total Adjusted Pro-Forma Revenue $299.1 $315.1 EBITDA Stated EBITDA $100.7 $100.8 (1) Adjustments ($4.8) $0.0 Total Adjusted Pro-Forma E