Ziff Davis, Inc. · NASDAQ:ZD
Ziff Davis — Q4 2023 Earnings Presentation
20 slides from Ziff Davis's earnings presentation, Feb 22, 2024
Slide 1: Fourth Quarter and Full Year 2023 Results
FOURTH QUARTER AND FULL YEAR 2023 RESULTS February 21, 2024 ©2024 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 Industry, Market and Other Data of the Private Securities Litigation Reform Act of 1995, particularly those regarding our 2024 Certain information that may be contai
Slide 3: Risk Factors
Risk Factors Some factors that could cause actual results to differ materially from those expressed or implied by the forward-looking statements contained in this presentation include, but are not limited to, our ability and intention to: • Sustain growth or profitability, particularly in light of a
Slide 4: Q4 2023 Consolidated Financial Snapshot
Q4 2023 Consolidated Financial Snapshot (1) Revenue (in millions) Adjusted EBITDA (1) Adjusted Diluted EPS (1) (in millions) 1. See slides 14-20 for a GAAP reconciliation of Adjusted EBITDA and Adjusted Diluted EPS. 4
Slide 5: Q4 2023 Consolidated Financial Snapshot
Q4 2023 Consolidated Financial Snapshot (1) Revenue (in millions) Adjusted EBITDA (1) Adjusted Diluted EPS (1) (in millions) 1. See slides 14-20 for a GAAP reconciliation of Adjusted EBITDA and Adjusted Diluted EPS. 5
Slide 6: Advertising Performance
Advertising Performance Quarterly Revenues (1) Fiscal Year Revenues (1) (in millions) (in millions) 2022 2023 Quarterly Advertising Metrics Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Net Revenue Retention (2) 106.6% 99.6% 94.1% 92.0% 91.2% 89.8% 88.9% 87.1% Advertisers (3) 1,950 2,016 1,953 2,044 1,737 1,924 1,785 1,9
Slide 7: Subscription and Licensing Performance
Subscription and Licensing Performance Quarterly Revenues (1) Fiscal Year Revenues (1) (in millions) (in millions) 2022 2023 Quarterly Subscription and Licensing Metrics Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Customers (2) 2,131 2,417 3,121 3,143 3,175 3,231 3,300 3,266 Average Quarterly Revenue per Customer (3) $
Slide 8: Organic Growth
Organic Growth (1) 2021 2022 2023 Year over Year Growth Rates Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Organic Revenue (1) 9% 20% 12% 2% 10% (3%) (5%) (7%) (7%) (5%) (6%) (6%) 0% (2%) (4%) Total Revenue 29% 42% 35% 10% 27% 5% 2% (1%) (3%) 1% (3%) (3%) 0% (2%) (2%) 1. The Company considers revenu
Slide 9: Ziff Davis Capital Structure
Ziff Davis Capital Structure ($ in millions) December 31, 2023 Cash and Cash Equivalents $ 738 Short-term Investments 27 Long-term Investments 141 Total Cash and Investments $ 906 4.625% High-Yield Notes $ 460 1.75% Convertible Notes 550 Total Gross Debt (1) $ 1,010 Multiple of FY 2023 Adj. EBITDA G
Slide 10: Financial Guidance
2023 FINANCIAL GUIDANCE
Slide 11: 2024 Outlook (Forward-Looking Statements)
2024 Outlook (Forward-Looking Statements) Revenue at Midpoint Revenue Growth Advertising 5-7% growth Subscription and Licensing 3-5% growth Other Low double digit growth Distributions of Revenues First Quarter >20% of full year revenues Fourth Quarter ~30% of full year revenues Corporate Non-GAAP Ta
Slide 12: 2024 Guidance (Forward-Looking Statements)
2024 Guidance (Forward-Looking Statements) Our annual guidance of Revenues, Adjusted EBITDA, and Adjusted Diluted EPS (1) Ziff Davis FY 2024 Guidance Range Low Midpoint High Midpoint YoY % Increase $ in millions, except for per share amounts vs 2023A Revenue $1,411 $1,441 $1,471 5.6% Adjusted EBITDA
Slide 13: Supplemental Information
SUPPLEMENTAL INFORMATION
Slide 14: GAAP Reconciliation - Adjusted EBITDA
GAAP Reconciliation - Adjusted EBITDA $ in 000's Ziff Davis Three months ended December 31, 2022 2023 Net income from continuing operations $ 69,180 $ 63,422 Interest expense, net 5,423 2,251 Unrealized gain on short-term investments held at the reporting date (7,020) (1,065) Gain on investments, ne
Slide 15: GAAP Reconciliation - Adjusted EBITDA
GAAP Reconciliation - Adjusted EBITDA $ in 000's Ziff Davis Year ended ended December 31, 2022 2023 Net income from continuing operations $ 65,466 $ 41,503 Interest expense, net 33,842 20,031 Gain on debt extinguishment, net (11,505) — Unrealized loss on short-term investments held at the reporting
Slide 16: Q4 2023 and Q4 2022 Reconciliation of GAAP to Non-GAAP Financial Measures
Q4 2023 and Q4 2022 Reconciliation of GAAP to Non-GAAP Financial Measures Interest Unrealized (gain) loss (Income) loss Acquisition, Disposal Lease asset Adjusted GAAP costs, (Gain) loss on sale on short-term from equity Amortization Share-based integration, related impairments non-GAAP amount net o
Slide 17: FY 2023 and FY 2022 Reconciliation of GAAP to Non-GAAP Financial Measures
FY 2023 and FY 2022 Reconciliation of GAAP to Non-GAAP Financial Measures Interest Unrealized (gain) loss (Gain) loss on (Income) loss Acquisition, Disposal Lease asset Goodwill Adjusted GAAP costs, (Gain) loss on on short-term investments, from equity Amortization Share-based integration, related i
Slide 18: GAAP Reconciliation - Free Cash Flow
GAAP Reconciliation - Free Cash Flow (1) $ in 000's Ziff Davis Three months ended December, 31 Year ended December, 31 2022 2023 2022 2023 Net cash provided by operating activities from continuing and discontinued operations $ 43,225 $ 92,119 $ 336,444 $ 319,962 Less: Purchases of property and equip
Slide 19: Quarterly Adjusted Income Statement Excluding the Divested Businesses
Quarterly Adjusted Income Statement Excluding the Divested Businesses $ in 000's (except for per share amounts) Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Advertising $ 177,288 $ 198,385 $ 198,794 $ 263,608 $ 170,067 $ 189,198 $ 186,921 $ 241,949 $ 156,082 $ 175,083 $ 18
Slide 20: Reconciliation of Financial Results Excluding the Divested Businesses
Reconciliation of Financial Results Excluding the Divested Businesses $ in 000's (except for per share amounts) Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Revenues Stated Revenues $ 311,657 $ 341,293 $ 355,144 $ 408,628 $ 315,068 $ 337,356 $ 341,873 $ 396,700 $ 307,142 $