Ziff Davis, Inc. · NASDAQ:ZD
Ziff Davis — Q2 2023 Earnings Presentation
16 slides from Ziff Davis's earnings presentation, Aug 4, 2023
Slide 1: Second Quarter 2023 Results
SECOND QUARTER 2023 RESULTS August 3, 2023 ©2023 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 2023 Financial Certain information containe
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: Q2 2023 Consolidated Financial Snapshot
Q2 2023 Consolidated Financial Snapshot (1) 1. See slides 12-16 for a GAAP reconciliation of Adjusted EBITDA and Adjusted Diluted EPS. 4
Slide 5: Advertising Performance
Advertising Performance 2022 2023 Quarterly Advertising Metrics Q1 Q2 Q3 Q4 Q1 Q2 Net Revenue Retention (2) 106.6% 99.6% 94.1% 92.0% 91.2% 89.8% Advertisers (3) 1,950 2,016 1,953 2,044 1,737 1,924 Quarterly Revenue per Advertiser (4) $87,214 $93,848 $95,710 $118,370 $89,857 $91,000 1. Figures exclud
Slide 6: Subscription Performance
Subscription Performance 2022 2023 Quarterly Subscription Metrics (2) Q1 Q2 Q3 Q4 Q1 Q2 Subscribers (3) 2,202 2,475 3,146 3,144 3,138 3,175 Average Quarterly Revenue per Subscriber (4) $61.81 $55.69 $45.45 $44.67 $45.31 $44.51 Churn Rate (5) 3.53% 3.12% 3.71% 4.03% 3.33% 3.51% 1. Figures exclude any
Slide 7: Organic Growth
Organic Growth (1) 2021 2022 2023 Year over Year Growth Rates Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Organic Revenue (1) 9% 20% 12% 2% 10% (3%) (5%) (7%) (7%) (5%) (6%) (6%) Total Revenue 29% 42% 35% 10% 27% 5% 2% (1%) (3%) 1% (3%) (3%) 1. The Company considers revenue from an acquired business to beco
Slide 8: Ziff Davis Capital Structure
Ziff Davis Capital Structure ($ millions) June 30, 2023 Cash and Cash Equivalents $679 (1) Short-term Investments 36 Long-term Investments 114 Total Cash and Investments $829 4.625% High-Yield Notes $460 1.75% Convertible Notes 550 (2) Total Gross Debt $1,010 Multiple of Q2 2023 TTM Adj. EBITDA Gros
Slide 9: Financial Guidance
2023 FINANCIAL GUIDANCE
Slide 10: 2023 Guidance (Forward-Looking Statements)
2023 Guidance (Forward-Looking Statements) Ziff Davis reaffirms its annual guidance of Revenues, Adjusted EBITDA, and Adjusted Diluted EPS (1) Ziff Davis FY 2023 Guidance Range Low Midpoint High Midpoint YoY % Increase $ in millions, except for per share amounts vs 2022A Revenue $1,350 $1,379 $1,408
Slide 11: Supplemental Information
SUPPLEMENTAL INFORMATION
Slide 12: GAAP Reconciliation – Adjusted EBITDA
GAAP Reconciliation – Adjusted EBITDA $ in 000's Note: Adjusted EBITDA is defined as Net income (loss) with Ziff Davis Three Months Ended June 30, adjustments to reflect the addition or elimination of certain items including: Interest expense, net; (Gain) loss on debt extinguishment, 2022 2023 net;
Slide 13: Q2 2023 and 2022 Reconciliation of GAAP to Non-GAAP Financial Measures
Q2 2023 and 2022 Reconciliation of GAAP to Non-GAAP Financial Measures (Gain) loss Unrealized (gain) loss on short- Income (loss) from GAAP Interest (Gain) loss on Share-based Acquisition, integration, Disposal Lease asset impairments Adjusted non- on sale of term investments held at the equity meth
Slide 14: GAAP Reconciliation – Free Cash Flow
GAAP Reconciliation – Free Cash Flow (1) $ in 000's Ziff Davis Three Months Ended June 30, Six Months Ended June 30, 2022 2023 2022 2023 Net cash provided by operating activities $ 75,973 $ 39,728 $ 192,484 $ 155,035 Less: Purchases of property and equipment (23,374) (25,233) (53,876) (55,250) Free
Slide 15: 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 Advertising $ 177,288 $ 198,385 $ 198,794 $ 263,608 $ 170,067 $ 189,198 $ 186,922 $ 241,949 $156,082 $ 175,083 Subscriptions 117
Slide 16: 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 Revenues Stated Revenues $ 311,657 $ 341,293 $ 355,144 $ 408,628 $ 315,068 $ 337,356 $ 341,874 $ 396,700 $ 307,142 $ 326,016 Adj