Slide 1: Third Quarter 2023 Results
THIRD QUARTER 2023 RESULTS November 8, 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: Q3 2023 Consolidated Financial Snapshot
(1) Q3 2023 Consolidated Financial Snapshot Revenue (in millions) (0.3)% $341.9 $341.0 Q3 2022 Q3 2023 Adjusted EBITDA (1) Adjusted Diluted EPS (1) (in millions) (5.3 (5.1 )% )% $120.1 $1.58 $1.50 $113.7 Q3 2022 Q3 2023 Q3 2022 Q3 2023 1. See slides 12-16 for a GAAP reconciliation of Adjusted EBITDA
Slide 5: Advertising Performance
Advertising Performance (1) Quarterly Revenues TTM Revenues (1) (in millions) (in millions) (2)% (7)% $187 $183 $810 $756 Q3 2022 Q3 2023 TTM Q3 2022 TTM Q3 2023 2022 2023 Quarterly Advertising Metrics Q1 Q2 Q3 Q4 Q1 Q2 Q3 Net Revenue Retention (2) 106.6% 99.6% 94.1% 92.0% 91.2% 89.8% 88.9% Advertis
Slide 6: Subscription Performance
Subscription Performance (1) (1) Quarterly Revenues TTM Revenues (in millions) (in millions) 1% 3% $551 $569 $143 $145 Q3 2022 Q3 2023 TTM Q3 2022 TTM Q3 2023 2022 2023 Quarterly Subscription Metrics Q1 Q2 Q3 Q4 Q1 Q2 Q3 Subscribers (2) 2,202 2,475 3,146 3,144 3,138 3,175 3,231 Average Quarterly Rev
Slide 7: Organic Growth
(1) Organic Growth 2021 2022 2023 Year over Year Growth Rates Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Organic Revenue (1) 9% 20% 12% 2% 10% (3%) (5%) (7%) (7%) (5%) (6%) (6%) 0% Total Revenue 29% 42% 35% 10% 27% 5% 2% (1%) (3%) 1% (3%) (3%) 0% 1. The Company considers revenue from an acquired busines
Slide 8: Ziff Davis Capital Structure
Ziff Davis Capital Structure ($ in millions) September 30, 2023 Cash and Cash Equivalents $ 661 Short-term Investments (1) 30 Long-term Investments 140 Total Cash and Investments $ 831 4.625% High-Yield Notes $ 460 1.75% Convertible Notes 550 Total Gross Debt (2) $ 1,010 Multiple of Q3 2023 TTM Adj.
Slide 9: Financial Guidance
2023 FINANCIAL GUIDANCE
Slide 10: 2023 Guidance (Forward-Looking Statements)
2023 Guidance (Forward-Looking Statements) (1) Ziff Davis reaffirms its annual guidance of Revenues, Adjusted EBITDA, and Adjusted Diluted EPS 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 Ziff Davis Three months ended September 30, 2022 2023 Net income (loss) $ 18,185 $ (30,971) Interest expense, net 8,560 2,817 Gain on debt extinguishment, net (10,112) — Unrealized (gain) loss on short-term investments held at the reporting date (4,20
Slide 13: Q3 2023 and 2022 Reconciliation of GAAP to Non-GAAP Financial Measures
Q3 2023 and 2022 Reconciliation of GAAP to Non-GAAP Financial Measures Unrealized (gain) (Gain) loss (Income) loss Acquisition, Lease asset Interest (Gain) loss on (Gain) loss Disposal Goodwill Adjusted GAAP loss on short-term on from equity Share-based integration, impairments Costs, debt on sale o
Slide 14: GAAP Reconciliation – Free Cash Flow
(1) GAAP Reconciliation – Free Cash Flow $ in 000's Ziff Davis Three months ended September 30, Nine months ended September 30, 2022 2023 2022 2023 Net cash provided by operating activities $ 100,735 $ 72,808 $ 293,219 $ 227,843 Less: Purchases of property and equipment (26,891) (27,226) (80,767) (8
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 Q3'23 Advertising $ 177,288 $ 198,385 $ 198,794 $ 263,608 $ 170,067 $ 189,198 $ 186,921 $ 241,949 $ 156,082 $ 175,083 $ 183,008
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 Q3'23 Revenues Stated Revenues $ 311,657 $ 341,293 $ 355,144 $ 408,628 $ 315,068 $ 337,356 $ 341,873 $ 396,700 $ 307,142 $ 326,0