Slide 1: Second Quarter 2022 Results
SECOND QUARTER 2022 RESULTS AUGUST 9, 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 Industry, Market and Other Data Private Securities Litigation Reform Act of 1995, particularly those regarding our 2022 Financial Certain information containe
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: Q2 2022 Consolidated Financial Snapshot
Q2 2022 Consolidated Financial Snapshot (1)(2) Note: Pro Forma Results from Continuing Operations excludes B2B Backup assets 1. Figures are adjusted non-GAAP; see slides 17-18 for a reconciliation of the pro-forma adjustments for excluded assets consisting of certain assets of the Company’s B2B Back
Slide 5: Advertising Performance
Advertising Performance 2021 2022 Quarterly Advertising Metrics Q1 Q2 Q3 Q4 Q1 Q2 (2) Net Revenue Retention 103.7% 111.2% 114.1% 111.9% 106.6% 99.6% (3) Advertisers 1,705 1,913 1,908 2,198 1,950 2,016 (4) Quarterly Revenue per Advertiser $103,981 $103,704 $104,189 $119,932 $87,214 $93,848 1. Figures
Slide 6: Subscription Performance
Subscription Performance 2021 2022 Quarterly Subscription Metrics Q1 Q2 Q3 Q4 Q1 Q2 (2) Subscribers (in '000s) 2,332 2,340 2,290 2,206 2,131 2,393 (3) Average Quarterly Revenue per Subscriber $50.54 $53.17 $59.08 $60.89 $63.85 $57.64 (4) Churn Rate 2.75% 2.51% 2.99% 2.97% 3.22% 2.92% 1. Figures are
Slide 7: Organic Growth
Organic Growth (1)(2) 2021 2022 TTM Year over Year Growth Rates Q1 Q2 Q3 Q4 Q1 Q2 Organic Revenue 9% 20% 12% 2% (3%) (5%) 1% Total Revenue 29% 42% 35% 10% 5% 2% 12% 1. TTM relates to the revenues of the last 12 months ended June 30, 2022 2. Revenue from an acquired business becomes organic revenue i
Slide 8: Ziff Davis Capital Structure
Ziff Davis Capital Structure ($ millions) June 30, 2022 Cash and Cash Equivalents $648 (1) Short-term Investments 73 Long-term Investments 128 Total Cash and Investments $849 4.625% High-Yield Notes $565 1.75% Convertible Notes 550 Total Gross Debt $1,115 Multiple of Q2 2022 TTM Adj. EBITDA Gross De
Slide 9: 2022 Financial Guidance
2022 FINANCIAL GUIDANCE
Slide 10: 2022 Guidance (Forward-Looking Statements)
2022 Guidance (Forward-Looking Statements) Ziff Davis revises its annual guidance of Revenues, Adjusted non-GAAP EBITDA and Adjusted non-GAAP EPS (1) Ziff Davis FY 2022 Guidance Range (2) Midpoint YoY % Low Midpoint High $ in MM, except for per share amounts Increase vs 2021A Revenue $1,410 $1,423 $
Slide 11: Supplemental Information
SUPPLEMENTAL INFORMATION
Slide 12: Q2 2022 Reconciliation of GAAP to Adjusted non-GAAP Earnings & EPS
Q2 2022 Reconciliation of GAAP to Adjusted non-GAAP Earnings & EPS $ in 000's Three Months Ended June 30, Six Months Ended June 30, 2021 2022 2021 2022 Cost of revenues $ 48,785 $ 46,004 $ 92,637 $ 92,104 Plus: Share based compensation (1) (68) (142) (150) (226) (2) (36) (4) (76) (54) Acquisition re
Slide 13: GAAP Reconciliation – Free Cash Flow
GAAP Reconciliation – Free Cash Flow (1)(2) $ in 000's Ziff Davis Three Months Ended June 30th, Six Months Ended June 30th, 2021 2022 2021 2022 Net cash provided by operating activities $ 111,298 $ 75,973 $ 290,022 $ 192,484 Less: Purchases of property and equipment (31,497) (23,374) (57,766) (53,87
Slide 14: GAAP Reconciliation – Adjusted EBITDA
GAAP Reconciliation – Adjusted EBITDA (1)(2) $ in 000's Ziff Davis Three Months Ended June 30th, Six Months Ended June 30th, 2021 2022 2021 2022 Net income from continuing operations $ (23,045) $ (46,436) $ 15,735 $ (21,899) Plus: Interest expense, net 21,013 6,956 42,490 18,466 Gain on sale of busi
Slide 15: Q2 2022 Reconciliation of GAAP to Adjusted EBITDA
Q2 2022 Reconciliation of GAAP to Adjusted EBITDA (1) Cybersecurity $ in 000's Digital Media Corporate Total and Martech Revenues GAAP revenues $ 258,343 $ 79,013 $ - $ 337,356 Gross profit GAAP gross profit $ 232,987 $ 58,365 $ - $ 291,352 Non-GAAP adjustments: Share-based compensation 24 118 - 142
Slide 16: Q2 2021 Reconciliation of GAAP to Adjusted EBITDA
Q2 2021 Reconciliation of GAAP to Adjusted EBITDA (1) Cybersecurity $ in 000's Digital Media Corporate Total and Martech Revenues GAAP revenues $ 253,761 $ 87,532 $ - $ 341,293 Gross profit GAAP gross profit $ 228,622 $ 63,895 $ (9) $ 292,508 Non-GAAP adjustments: Share-based compensation 2 66 - 68
Slide 17: Quarterly Adjusted Pro Forma Income Statement
Quarterly Adjusted Pro Forma Income Statement (1)(2) $ in 000's (except for per share amounts) Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Advertising $ 177,288 $ 198,385 $ 198,794 $ 263,608 $ 170,067 $ 189,198 Subscriptions 117,937 124,591 135,488 134,451 136,070 137,811 Other 3,961 7,293 11,625 10,992 9,1
Slide 18: Reconciliation of Adjusted Non-GAAP to Adjusted Pro Forma
Reconciliation of Adjusted Non-GAAP to Adjusted Pro Forma (1) $ in 000's (except for per share amounts) Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Revenues Stated Revenues $ 311,657 $ 341,293 $ 355,144 $ 408,628 $ 315,068 $ 337,356 Adjustments (12,589) (11,316) (9,593) - - - Total Adjusted Pro Forma Revenu