Ziff Davis, Inc. · NASDAQ:ZD
Ziff Davis — Q1 2023 Earnings Presentation
16 slides from Ziff Davis's earnings presentation, May 10, 2023
Slide 1: First Quarter 2023 Results
FIRST QUARTER 2023 RESULTS May 9, 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: Q1 2023 Consolidated Financial Snapshot
Q1 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 2021 2022 2023 Quarterly Advertising Metrics Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Net Revenue Retention (2) 103.7% 111.2% 114.1% 111.9% 106.6% 99.6% 94.1% 92.0% 91.2% Advertisers (3) 1,705 1,913 1,908 2,198 1,950 2,016 1,953 2,044 1,737 Quarterly Revenue per Advertiser (4) $103,981 $10
Slide 6: Subscription Performance
Subscription Performance 2021 2022 2023 Quarterly Subscription Metrics Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Subscribers (2) 2,332 2,340 2,290 2,206 2,131 2,393 3,050 3,032 3,016 Average Quarterly Revenue per Subscriber (3) $50.54 $53.17 $59.08 $60.89 $63.85 $57.64 $46.87 $46.33 $47.14 Churn Rate (4) 2.75% 2.5
Slide 7: Organic Growth
Organic Growth (1) 2021 2022 2023 Year over Year Growth Rates Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Organic Revenue (1) 9% 20% 12% 2% 10% (3%) (5%) (7%) (7%) (5%) (6%) Total Revenue 29% 42% 35% 10% 27% 5% 2% (1%) (3%) 1% (3%) 1. Revenue from an acquired business becomes organic revenue in the first month
Slide 8: Ziff Davis Capital Structure
Ziff Davis Capital Structure ($ millions) March 31, 2023 Cash and Cash Equivalents $722 (1) Short-term Investments 39 Long-term Investments 116 Total Cash and Investments $877 4.625% High-Yield Notes $460 1.75% Convertible Notes 550 (2) Total Gross Debt $1,010 Multiple of Q1 2023 TTM Adj. EBITDA Gro
Slide 9: 2023 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 March 31, adjustments to reflect the addition or elimination of certain items including: Interest expense, net; (Gain) loss on debt extinguishment, 2022 2023 net;
Slide 13: Q1 2023 and 2022 Reconciliation of GAAP to Non-GAAP Financial Measures
Q1 2023 and 2022 Reconciliation of GAAP to Non-GAAP Financial Measures Unrealized (gain) loss on short- Income (loss) from GAAP Interest (Gain) loss on Share-based Acquisition, integration, Disposal Lease asset impairments Adjusted non- term investments held at the equity method Amortization amount
Slide 14: GAAP Reconciliation – Free Cash Flow
GAAP Reconciliation – Free Cash Flow (1) $ in 000's Ziff Davis Three Months Ended March 31, 2022 2023 Net cash provided by operating activities $ 116,511 $ 115,307 Less: Purchases of property and equipment (30,502) (30,017) Free cash flow (1) $ 86,009 $ 85,290 1. Free cash flow is defined as net cas
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 Advertising $ 177,288 $ 198,385 $ 198,794 $ 263,608 $ 170,067 $ 189,198 $ 186,921 $ 241,949 $156,082 Subscriptions 117,937 124,591 135
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 Revenues Stated Revenues $ 311,657 $ 341,293 $ 355,144 $ 408,628 $ 315,068 $ 337,356 $ 341,873 $ 396,700 $ 307,142 Adjustments (12,589