Ziff Davis, Inc. · NASDAQ:ZD

Ziff Davis — Investor Day (September 2021)

65 slides from Ziff Davis's investor day presentation, Sep 9, 2021

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 2021 Financial Guidance. Such Certain infor
Slide 3: Risk Factors
Risk Factors The following factors, among others, could cause our business, prospects, financial condition, operating results and cash flows to be materially adversely affected: • Our plan to separate into two independent publicly traded companies is subject • Competition from others with regard to
Slide 4: Agenda
Agenda Company Overview | Vivek Shah, Chief Executive Officer Acquisition System | Sean Alford, Senior Vice President Technology, Shopping & Entertainment | Steve Horowitz, Division President Health & Wellness | Dan Stone, Division President Cybersecurity & Martech | Nate Simmons, Division President
Slide 6: Investment Highlights
Investment Highlights Portfolio of Digital Media & Internet Brands in High-Value Verticals Experts in Digital Transformation & Creators of Premium Content & Tools Highly Recurring Revenues Across Advertising & Subscription Businesses Disciplined Capital Allocators with a Proven Track Record Systemat
Slide 7: Participants in the Highest-Value, Fastest-Growing Verticals on the Internet
Participants in the Highest-Value, Fastest-Growing Verticals on the Internet ’21 Digital Ad Spend ($B) ’17-’21 CAGR Shopping $35 17% Technology $32 24% • Leadership positions in categories that collectively represent 50%+ of U.S. digital ad spending Entertainment $16 14% Health & Wellness $11 17% ’2
Slide 8: Experts in Digital Transformation
Experts in Digital Transformation Ziff Davis has an established platform and playbook that takes advantage of the secular shift from analog to digital Secular Shifts Ziff Davis Advantage Proprietary Returns-based Deep bench Superior tech platforms resource monetization of digital for scale allocatio
Slide 9: High-Quality Content and Widely-Adopted Tools
High-Quality Content and Widely-Adopted Tools Key Metrics • Editorial content that informs important decisions Content • Actionable reviews, recommendations and “how to” articles 1 100MM 2.4MM 664MM • Service journalism that shapes purchase intent Monthly U.S. Subscribers Total App Unique Visitors I
Slide 10: Robust and Balanced Monetization Formula
Robust and Balanced Monetization Formula $758MM Advertising Revenue (Q2’21 TTM) BUSINESS MODELS $473MM Subscription Revenue (Q2’21 TTM) ©2021 Ziff Davis. All right reserved. www.ziffdavis.com 10
Slide 11: Advertising: An Intent-Driven Model
Advertising: An Intent-Driven Model Intent-Driven Authoritative editorial content and tools that instills confidence for important decisions Advertising 2.1K+ Actionable reviews, recommendations, how to’s, rankings, etc. Advertisers1 (Q2’21 TTM) Participants in the most valuable categories where int
Slide 12: Advertising: High Growth and SaaS-Like Revenue Retention
Advertising: High Growth and SaaS-Like Revenue Retention Our advertising model is recurring in nature Advertising Revenue ($ in MM) $758 106% $623 Net Advertising $529 Revenue Retention1 $482 20% 2018 – 2021 TTM Revenue CAGR 2018 2019 2020 Q2'21 TTM 1. Net Advertising Revenue Retention = (Amount Spe
Slide 13: Strong Track Record of Expanding into Subscription Adjacencies
Strong Track Record of Expanding into Subscription Adjacencies We leverage audience reach, traffic insights and domain expertise in existing verticals to actively pursue subscription adjacencies Existing Verticals Select Examples Technology Entertainment Technology Shopping Subscription Adjacency Cy
Slide 14: Subscriptions: A Proven and Durable Model
Subscriptions: A Proven and Durable Model B2B Subscriptions B2C Subscriptions Other Recurring Licensing • SMB and Enterprise subscriptions to access • Consumer/SOHO subscriptions to access content • Recurring and ongoing data-as-a-service and IP and use content, tools and services & services licensi
Slide 15: Subscription: A Consistent Growth Engine
Subscription: A Consistent Growth Engine Our subscription model supports strong customer retention Subscription Revenue ($ in MM) $473 $418 $445 2.5% Churn Rate1 $294 21% 2018 – 2021 TTM Revenue CAGR 2018 2019 2020 Q2'21 TTM 1. “Churn Rate” = A / B. A = (average revenue per subscription in the prior
Slide 16: Capital Allocation Framework Maximizes Shareholder Value
Capital Allocation Framework Maximizes Shareholder Value Capital Allocation Capital Mergers & Share Expenditures Acquisitions Repurchases ➢20% IRR Hurdle $320MM 1 2 ➢Investments $300MM $2.7B Cumulative Share Repurchases Ranked by Risk (2013 – 2021 YTD) Cumulative Cumulative Capital Expenditures (201
Slide 17: An M&A System Driven by Core Principles
An M&A System Driven by Core Principles Digital Large and Platform-Based Transformation Growing Verticals Value Creation Focus on Lower Middle Patience and Free Cash Flow Market Discipline ©2021 Ziff Davis. All right reserved. www.ziffdavis.com 17
Slide 18: Historical PF Revenue & PF Adj. EBITDA
Historical PF Revenue & PF Adj. EBITDA Ziff Davis’s historical PF revenue and PF Adj. EBITDA reflects its pro forma position following the separation of Consensus ’18-’21 1 ($ in MM) 2018 2019 2020 2021 CAGR Revenues $785 $965 $1,090 $1,382 21% PF Adj. EBITDA $251 $318 $387 $488 25% PF Adj. EBITDA M
Slide 19: YTD Financials
YTD Financials Q1 Q2 1H ($ in MM) 2020 2021 Growth 2020 2021 Growth 2020 2021 Growth Organic Revenue $232 $253 9% $232 $279 20% $464 $533 15% Acquired Revenue1 -- $46 -- $51 -- $97 Total Revenue $232 $299 29% $232 $330 42% $464 $629 36% PF Adj. EBITDA $62 $98 59% $77 $114 49% $138 $212 53% PF Adj. E
Slide 20: 2021 Guidance
1 2021 Guidance (Forward-Looking Statements) Ziff Davis’s 2021 guidance reflects its pro forma position following the separation of Consensus ($ in MM) Low Midpoint High Low Midpoint High Low Midpoint High Revenues $1,375 $1,382 $1,389 $347 $350 $353 $1,722 $1,732 $1,742 EBITDA $475 $479 $483 $220 $
Slide 21: Estimated Capitalization Post Spin
Ziff Davis Estimated Capitalization Post Spin Cash & Investments $360MM $340MM at Close1 Cash Investments Debt at Close $1B $640MM $300MM Gross Debt Net Debt Net Debt (Cash Only) (Including all Cash & Investments) Credit Statistics2 2.0x 1.3x 0.6x Gross Leverage Net Leverage Net Leverage (Cash Only)
Slide 23: Acquisition System
Acquisition System A structured and repeatable system designed for speed, efficiency, conviction and consistency in results Recent Transactions Sean Alford SVP, Corporate Development Background By the Numbers • Proskauer Rose • Comcast / NBCUniversal 72 ~$2.7B 500+ 10 Acquisitions1 Capital Deployed1
Slide 24: Acquisitions are Our Strategic Advantage
Acquisitions are Our Strategic Advantage Cash Flywheel M&A Philosophy Transaction Types PLATFORM ACQUISITIONS Exercise discipline Corporate Closely Sponsor- Obsess over free cash flow Carveouts Held Backed Lean in where we uniquely create value Public Growth Distressed Companies Prioritize by expect
Slide 25: M&A Toolkit Designed for Speed, Efficiency and Conviction
M&A Toolkit Designed for Speed, Efficiency and Conviction Unique combination of a systematized process, transaction expertise, operator know-how and access to capital drives a high-velocity program that yields attractive returns Flywheel Advantage Access to capital, operating talent, sector expertis
Slide 26: A Track Record of Unlocking Synergies
A Track Record of Unlocking Synergies Year of Acquisition: 2014 Purchase Price / Synergized EBITDA: 3.6x Year of Acquisition: 2015 Purchase Price / Synergized EBITDA: 3.0x 1 Year of Acquisition: 2016 Purchase Price / Synergized EBITDA: 4.6x Year of Acquisition: 2017 Purchase Price / Synergized EBITD
Slide 27: A Steady & Repeatable System that Drives Consistent Growth
A Steady & Repeatable System that Drives Consistent Growth Ziff Davis today represents a collection of businesses that have been acquired and enhanced since 2013 M&A Spend Over Time PF Revenue ($ in MM) ($ in MM) Cumulative M&A Spend1 $2,611 $2,705 Cumulative M&A Spend / Revenue Ratio $94 In-Period
Slide 29: Technology, Shopping & Entertainment
Technology, Shopping & Entertainment Trusted content and tools that help customers research, decide and act on important decisions in the largest categories in digital media Key Verticals & Brands Technology Shopping Entertainment Steve Horowitz Division President By the Numbers Background • Bankrat
Slide 30: Largest Ad Categories in Digital Media
Largest Ad Categories in Digital Media, Accounting for 50%+ of Total U.S. Digital Media Ad Spending 1 Digital Ad Spending in the U.S.1 ($ in B) Our $83B Market Opportunity Tech & Telecom $83 Shopping Entertainment $32B U.S. Digital Ad Spend in Telecom & Electronics ● #4 and #5 overall U.S. digital a
Slide 31: Attack Key Verticals Through a Mix of Advertising and Subscription Adjacencies
Attack Key Verticals Through a Mix of Advertising and Subscription Adjacencies Revenue Composition Over Time ($ in MM, % of revenue) Other $681 Subscription $22, 2% Advertising CAGR $180, 26% +25% $479, 72% $129 $5, 4% $124, 96% 2013 Q2'21 TTM ©2021 Ziff Davis. All right reserved. www.ziffdavis.com
Slide 32: The Formula that Drives our Advertising Revenue Philosophy
The Formula that Drives our Advertising Revenue Philosophy Advertising Revenue ($ in MM) Audience1 520MM+ 100MM+ 44MM+ CAGR Average O&O Social Followers Verified Contacts $479 Visits / mo. +19% $369 Display Advertising Video Advertising Products $323 Performance Marketing Sponsorships $312 Engagemen
Slide 33: The Formula that Drives our Subscription Revenue Philosophy
The Formula that Drives our Subscription Revenue Philosophy Subscription Revenue ($ in MM) Average O&O Total App Audience1 520MM+ Visits / mo. 550MM+ Installs2 CAGR +21% $180 $158 $163 Consumer Enterprise Marketing / Brand Products Data Licensing Digital Goods Licensing $112 Tests and Reports Monthl
Slide 34: Unique Vantage Point that Spawns Subscription Adjacencies
Unique Vantage Point that Spawns Subscription Adjacencies Relationships with vertical audiences and editorial perspective give us unique visibility into sector trends and opportunities that have evolved into investible subscription platforms Measurement Design/Planning Troubleshooting Subscriptions
Slide 35: Active M&A Platform: Closed 24 transactions since 2013
Active M&A Platform: Closed 24 transactions since 2013 Decision-based, Direct ownership Proactively seek Proper timing and high intent audiences: of audiences and advertisers adjacencies: subscriptions, laddering of deal types consumer, enterprise, SMB (supply and demand) sub-verticals Engine, Chass
Slide 36: Consistent Growth and Profitability
Consistent Growth and Profitability 55%+ Total Revenue and 90%+ EBITDA dollar growth since 2018 Revenue EBITDA1 ($ in MM) ($ in MM) CAGR $681 +20% CAGR $283 +30% $554 $499 $218 $434 $185 $146 2018 2019 2020 Q2'21 TTM 2018 2019 2020 Q2'21 TTM EBITDA 34% 37% 39% 42% Margin 1. The Company has not recon
Slide 38: Health & Wellness
Health & Wellness Powerful advertising platforms for pharma and health & wellness markets Driving better clinical and health outcomes through decision-making informed by highly relevant information, data, and analytics Key Verticals & Brands Healthcare Consumers Moms & Parents Healthcare Providers D
Slide 39: Large and Growing Health & Wellness Markets
Large and Growing Health & Wellness Markets $4T Annual U.S. Spend on Healthcare1 $120B Annual U.S. Spend on Pregnancy & Newborn Care8 $560B Annual U.S. Pharma Revenue2 Projected +3% CAGR ’21-’25 $4.5K Average Out-of-Pocket Healthcare Spend on Maternity Care per Pregnancy9 +49% from ’08-’15 $18B Annu
Slide 40: Powerful Audience Platforms Reaching Valuable Consumer and HCP Sub-Segments
Powerful Audience Platforms Reaching Valuable Consumer and HCP Sub-Segments Healthcare Consumers Moms & Parents Healthcare Providers • 59MM Monthly Unique Visitors • #1 and #2 Pregnancy Apps • 890K U.S. Physician Digital Reach • 45MM Monthly Social Reach • 91% Reach Among First-Time Moms • 80% Reach
Slide 41: Strong and Recurring Endemic Advertising Base with Compelling Adjacencies
Strong and Recurring Endemic Advertising Base with Compelling Adjacencies ✓ >100% Net Advertising Revenue Retention1 Tenure +5 Years ✓ Highly targeted, contextual audiences ✓ Creative advertising solutions ✓ Patent protected pharma brands Tenure +3 Years ✓ Superior operational execution ✓ Superior R
Slide 42: Dynamic Health & Wellness Growth Strategy
Dynamic Health & Wellness Growth Strategy Addressable Audience Market Monetization Expansion Narrow Audience Compelling Populations Adjacencies ©2021 Ziff Davis. All right reserved. www.ziffdavis.com 42
Slide 43: Health & Wellness Strategic M&A
Health & Wellness Strategic M&A Addressable Audience Market Monetization Expansion Narrow Audience Compelling Populations Adjacencies ©2021 Ziff Davis. All right reserved. www.ziffdavis.com 43
Slide 44: Product and Business Innovation Drives Organic Growth
Product and Business Innovation Drives Organic Growth Healthcare Consumers Moms & Parents Healthcare Providers the Well Baby Registry Builder Expert Content Aggregator • Brand studio • Across retail brands • AI-based content • First-of-their-kind programs • Product reviews & recommendation engine &
Slide 45: Rapidly Growing Revenues and Margins Demonstrate Significant Operating Leverage
Rapidly Growing Revenues and Margins Demonstrate Significant Operating Leverage Revenue EBITDA1 ($ in MM) ($ in MM) CAGR $285 +21% $258 CAGR $211 $119 +34% $176 $99 $57 $61 2018 2019 2020 Q2'21 TTM 2018 2019 2020 Q2'21 TTM EBITDA 32% 29% 39% 42% Margin 1. The Company has not reconciled the non-GAAP
Slide 46: Health & Wellness Vertical Summary
Health & Wellness Vertical Summary ✓ Large and growing addressable market with favorable secular trends ✓ Leading editorial brands that deliver authoritative and trustworthy content ✓ Recurring relationships with global pharma and health & wellness advertisers ✓ Compelling adjacencies to core advert
Slide 48: Cybersecurity & Martech
Cybersecurity & Martech Subscription-based digital solutions that help businesses and consumers thrive on the Internet Key Verticals & Brands Cybersecurity Martech Nate Simmons Division President Background By the Numbers • NortonLifeLock • Time Inc. • Warner Media • McKinsey & Company $290MM $101MM
Slide 49: Leveraging Vertical Expertise to Build Adjacent Subscription Businesses
Leveraging Vertical Expertise to Build Adjacent Subscription Businesses Audience-based, Technology data-driven view into expertise, buyer Protecting millions of online security and consumers and businesses insights, internet privacy market against threats to their data traffic data opportunities and
Slide 50: Large and Growing Markets Fueled by the Shift to Digital
Large and Growing Markets Fueled by the Shift to Digital Cybersecurity Martech $33B $21B Accelerating migration of shopping, Total Addressable Market1 Surge in e-commerce and online Total Addressable Market7 entertainment, health, and other shopping makes it more essential than activities to the Int
Slide 51: The VIPRE Group: Security, Privacy, Data Protection
The VIPRE Group: Security, Privacy, Data Protection Secure over 1MM endpoints Scan over 14B emails Protecting Consumers and Small and from malware, ransomware, annually for phishing, Mid-Sized Businesses and cyber threats malware, and other threats. Endpoint Security Email • Demographically diverse
Slide 52: The Moz Group: Comprehensive Marketing Technology
The Moz Group: Comprehensive Marketing Technology Serving SOHO, SMB, and Agencies 2MM total users of SEO Visibility SEO tools and content • Need 1:1 communications (voice, text), limited email marketing Email and SMS • Healthcare, real estate, financial services professionals Campaigns SOHO 60B emai
Slide 53: Growth and M&A Strategy
Growth and M&A Strategy TAM Recurring Focus on Robust expansion in Revenue Model Consumer, bundling and adjacent, high- SOHO, and product growth market SMB integration segments opportunities ©2021 Ziff Davis. All right reserved. www.ziffdavis.com 53
Slide 54: Strong Growth and Predictable Recurring Revenue
Strong Growth and Predictable Recurring Revenue Revenue EBITDA1 ($ in MM) ($ in MM) CAGR CAGR +22% +18% $279 $290 $106 $101 $101 $255 $176 $67 2018 2019 2020 Q2'21 TTM 2018 2019 2020 Q2'21 TTM EBITDA 38% 40% 38% 35% Margin 1. The Company has not reconciled the non-GAAP Adjusted EBITDA for the divisi
Slide 55: Cybersecurity and Martech Verticals Summary
Cybersecurity and Martech Verticals Summary ✓ Leveraging vertical expertise across Ziff Davis to build subscription businesses ✓ Large and growing addressable markets fueled by the growth of Internet usage Cybersecurity ✓ The VIPRE Group protects consumers and businesses from threats to their data a
Slide 57: Sustainability & Responsibility
Sustainability & Responsibility Darrah Feldman Vice President, Sustainability & Responsibility Background • CIT • Merrill Lynch • JPMorgan Chase • Smith Barney ©2021 Ziff Davis. All right reserved. www.ziffdavis.com 57
Slide 58: Our Purpose-Driven Agenda: Five Pillars
Our Purpose-Driven Agenda: Five Pillars Ziff Davis is committed to being best in class in each of these areas and has made important headway over the last year Diversity Sustainability Community Data Governance Reinforce our diverse Reduce our environmental Extend our influence into Protect our data
Slide 59: Recent Highlights
Recent Highlights Diversity Sustainability Community Data Governance ∙ 2nd annual publication of ∙ Efforts to reduce ∙ Launched Benevity ∙ Comprehensive privacy ∙ Approximately 30% of Ziff Diversity Report with environmental footprint by platform, where employees policies and internal Davis’s Global
Slide 60: ESG Ratings Agencies Are Taking Note
ESG Ratings Agencies Are Taking Note ESG ratings agencies are already rewarding our efforts Sustainalytics: Significantly improved overall ESG Risk Rating • Improved from 26.4 to 16.6 YOY (lower is better) • Went from “medium risk” to “low risk” ISS: Improved in all areas of Environment, Social, and
Slide 61: Where We Are Headed
Where We Are Headed We will be conducting a 2019, 2020 and 2021 Greenhouse Gas (GHG) audit • Measuring GHG emissions is the critical starting point for several sustainability activities including reporting, target setting, and achieving reductions • The GHG audit will calculate our Scope 1 and 2 emi
Slide 64: GAAP Reconciliations: Revenue
GAAP Reconciliations: Revenue ($ in MM) 2013 2014 2015 2016 2017 2018 2019 2020 1 1 1 1 1 1 1 1 Revenue $237 $327 $470 $568 $805 $893 $1,061 $1,172 Reconciliation of GAAP to Adjusted non-GAAP measures: Acquisition-related integration costs (2) 2 -- -- -- -- -- -- Pro Forma Adjustments: 2 Operational
Slide 65: GAAP Reconciliations: Adjusted EBITDA
GAAP Reconciliations: Adjusted EBITDA ($ in MM) 2018 2019 2020 Net Income $19 $38 $37 Plus: Interest expense, net 26 27 56 Other expense (income), net 4 7 12 Income tax expense 7 17 25 Depreciation and Amortization 172 222 217 (Earnings)/Losses from equity investments, net of tax 4 0 11 Reconciliati

Ziff Davis — Investor Day (September 2021) on 6ix

Ziff Davis — Investor Day (September 2021)

Slide 1: Analyst Day

Slide 2: Safe Harbor for Forward-looking Statements

Slide 3: Risk Factors

Slide 4: Agenda

Slide 5: Ziff Davis

Slide 6: Investment Highlights

Slide 7: Participants in the Highest-Value, Fastest-Growing Verticals on the Internet

Slide 8: Experts in Digital Transformation

Slide 9: High-Quality Content and Widely-Adopted Tools

Slide 10: Robust and Balanced Monetization Formula

Slide 11: Advertising: An Intent-Driven Model

Slide 12: Advertising: High Growth and SaaS-Like Revenue Retention

Slide 13: Strong Track Record of Expanding into Subscription Adjacencies

Slide 14: Subscriptions: A Proven and Durable Model

Slide 15: Subscription: A Consistent Growth Engine

Slide 16: Capital Allocation Framework Maximizes Shareholder Value

Slide 17: An M&A System Driven by Core Principles

Slide 18: Historical PF Revenue & PF Adj. EBITDA

Slide 19: YTD Financials

Slide 20: 2021 Guidance

Slide 21: Estimated Capitalization Post Spin

Slide 22: Acquisition System

Slide 23: Acquisition System

Slide 24: Acquisitions are Our Strategic Advantage

Slide 25: M&A Toolkit Designed for Speed, Efficiency and Conviction

Slide 26: A Track Record of Unlocking Synergies

Slide 27: A Steady & Repeatable System that Drives Consistent Growth

Slide 28: Technology, Shopping & Entertainment

Slide 29: Technology, Shopping & Entertainment

Slide 30: Largest Ad Categories in Digital Media

Slide 31: Attack Key Verticals Through a Mix of Advertising and Subscription Adjacencies

Slide 32: The Formula that Drives our Advertising Revenue Philosophy

Slide 33: The Formula that Drives our Subscription Revenue Philosophy

Slide 34: Unique Vantage Point that Spawns Subscription Adjacencies

Slide 35: Active M&A Platform: Closed 24 transactions since 2013

Slide 36: Consistent Growth and Profitability

Slide 37: Health & Wellness

Slide 38: Health & Wellness

Slide 39: Large and Growing Health & Wellness Markets

Slide 40: Powerful Audience Platforms Reaching Valuable Consumer and HCP Sub-Segments

Slide 41: Strong and Recurring Endemic Advertising Base with Compelling Adjacencies

Slide 42: Dynamic Health & Wellness Growth Strategy

Slide 43: Health & Wellness Strategic M&A

Slide 44: Product and Business Innovation Drives Organic Growth

Slide 45: Rapidly Growing Revenues and Margins Demonstrate Significant Operating Leverage

Slide 46: Health & Wellness Vertical Summary

Slide 47: Cybersecurity & Martech

Slide 48: Cybersecurity & Martech

Slide 49: Leveraging Vertical Expertise to Build Adjacent Subscription Businesses

Slide 50: Large and Growing Markets Fueled by the Shift to Digital

Slide 51: The VIPRE Group: Security, Privacy, Data Protection

Slide 52: The Moz Group: Comprehensive Marketing Technology

Slide 53: Growth and M&A Strategy

Slide 54: Strong Growth and Predictable Recurring Revenue

Slide 55: Cybersecurity and Martech Verticals Summary

Slide 56: Sustainability & Responsibility

Slide 57: Sustainability & Responsibility

Slide 58: Our Purpose-Driven Agenda: Five Pillars

Slide 59: Recent Highlights

Slide 60: ESG Ratings Agencies Are Taking Note

Slide 61: Where We Are Headed

Slide 62: Q&A

Slide 63: Appendix

Slide 64: GAAP Reconciliations: Revenue

Slide 65: GAAP Reconciliations: Adjusted EBITDA