Slide 1: Fourth Quarter and Full Year 2022 Results
FOURTH QUARTER AND FULL YEAR 2022 RESULTS February 15, 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: Q4 2022 Consolidated Financial Snapshot
Q4 2022 Consolidated Financial Snapshot (1) 1. See slides 14-18 for a GAAP reconciliation of Adjusted EBITDA and Adjusted Diluted EPS for the Company and by business. 4
Slide 5: FY 2022 Consolidated Financial Snapshot
FY 2022 Consolidated Financial Snapshot (1) 1. See slides 14-18 for a GAAP to non-GAAP reconciliation of Adjusted EBITDA and Adjusted Diluted EPS for the Company and by Business, and Slide 22-23 for key financial results excluding the Divested Businesses. 5
Slide 6: Advertising Performance
Advertising Performance 2021 2022 Quarterly Advertising Metrics Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 (2) Net Revenue Retention 103.7% 111.2% 114.1% 111.9% 106.6% 99.6% 94.1% 92.0% (3) Advertisers 1,705 1,913 1,908 2,198 1,950 2,016 1,953 2,044 (4) Quarterly Revenue per Advertiser $103,981 $103,704 $104,189 $119,
Slide 7: Subscription Performance
Subscription Performance 2021 2022 Quarterly Subscription Metrics Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Subscribers (1) (in '000s) 2,332 2,340 2,290 2,206 2,131 2,393 3,050 3,032 (2) Average Quarterly Revenue per Subscriber $50.54 $53.17 $59.08 $60.89 $63.85 $57.64 $46.87 $46.33 Churn Rate (3) 2.75% 2.51% 2.99% 2
Slide 8: Organic Growth
Organic Growth (1) 2021 2022 Year over Year Growth Rates Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Organic Revenue 9% 20% 12% 2% 10% (3%) (5%) (7%) (7%) (5%) Total Revenue 29% 42% 35% 10% 27% 5% 2% (1%) (3%) 1% 1. Revenue from an acquired business becomes organic revenue in the first month in which the company
Slide 9: Ziff Davis Capital Structure
Ziff Davis Capital Structure ($ millions) December 31, 2022 Cash and Cash Equivalents $653 (1) Short-term Investments 58 Long-term Investments 128 Total Cash and Investments $839 4.625% High-Yield Notes $460 1.75% Convertible Notes 550 (2) Total Gross Debt $1,010 Multiple of FY22 Adj. EBITDA Gross D
Slide 10: 2023 Financial Guidance
2023 FINANCIAL GUIDANCE
Slide 11: 2023 Outlook (Forward-Looking Statements)
2023 Outlook (Forward-Looking Statements) Revenue at Midpoint Revenue Growth Advertising Low single-digit decline Subscriptions Low single-digit growth Other Mid single-digit growth Distribution of Revenues First Quarter ~20% of full year revenues Fourth Quarter ~30% of full year revenues Adjusted E
Slide 12: 2023 Guidance (Forward-Looking Statements)
2023 Guidance (Forward-Looking Statements) Our annual guidance of Revenues, Adjusted EBITDA and Adjusted Diluted EPS (1) Ziff Davis FY 2023 Guidance Range Low Midpoint High Midpoint YoY % Increase $ in MM, except for per share amounts vs 2022A Revenue $1,350 $1,379 $1,408 (0.9%) (1) Adjusted EBITDA
Slide 13: Supplemental Information
SUPPLEMENTAL INFORMATION
Slide 14: Q4 2022 Reconciliation of GAAP to Non-GAAP Financial Measures
Q4 2022 Reconciliation of GAAP to Non-GAAP Financial Measures $ in 000's Three Months Ended December 31, 2021 2022 Cost of revenues $ 45,718 $ 50,847 Plus: Share-based compensation (1) (86) (52) Acquisition, integration and other costs (2) (96) (245) Amortization (5) (250) (221) Adjusted cost of rev
Slide 15: FY 2022 Reconciliation of GAAP to Non-GAAP Financial Measures
FY 2022 Reconciliation of GAAP to Non-GAAP Financial Measures $ in 000's Year ended December 31, 2021 2022 Cost of revenues $ 188,053 $ 195,554 Plus: Share-based compensation (1) (306) (341) Acquisition, integration and other costs (2) (382) (364) Amortization (5) (1,547) (1,000) Adjusted cost of re
Slide 16: GAAP Reconciliation – Free Cash Flow
GAAP Reconciliation – Free Cash Flow (1)(2) $ in 000's Ziff Davis Three Months Ended December 31, Year Ended December 31, 2021 2022 2021 2022 $ 86,284 $ 43,225 $ 516,536 $ 336,444 Net cash provided by operating activities from continuing and discontinued operations Less: Purchases of property and eq
Slide 17: GAAP Reconciliation – Adjusted EBITDA
GAAP Reconciliation – Adjusted EBITDA $ in 000's Ziff Davis Three Months Ended December 31, Year Ended December 31, 2021 2022 2021 2022 Net income from continuing operations $ 378,891 $ 69,180 $ 401,395 $ 65,466 Plus: Interest expense, net 15,043 5,423 72,023 33,842 Loss (gain) on debt extinguishmen
Slide 18: Q4 2022 Reconciliation of GAAP to Adjusted EBITDA
Q4 2022 Reconciliation of GAAP to Adjusted EBITDA Cybersecurity $ in 000's Digital Media Corporate Total and Martech Revenues Revenues $ 321,670 $ 75,030 $ - $ 396,700 Operating profit Income (loss) from operations $ 95,015 $ 11,554 $ (13,111) $ 93,458 Non-GAAP adjustments: Share-based compensation
Slide 19: Q4 2021 Reconciliation of GAAP to Adjusted EBITDA
Q4 2021 Reconciliation of GAAP to Adjusted EBITDA Cybersecurity $ in 000's Digital Media Corporate Total and Martech Revenues Revenues $ 325,747 $ 82,881 $ - $ 408,628 Operating profit Income (loss) from operations $ 92,422 $ 9,492 $ (16,520) $ 85,394 Non-GAAP adjustments: Share-based compensation 2
Slide 20: FY 2022 Reconciliation of GAAP to Adjusted EBITDA
FY 2022 Reconciliation of GAAP to Adjusted EBITDA Cybersecurity $ in 000's Digital Media Corporate Total and Martech Revenues Revenues $ 1,078,391 $ 312,606 $ - $ 1,390,997 Operating profit Income (loss) from operations $ 198,171 $ 50,960 $ (50,190) $ 198,941 Non-GAAP adjustments: Share-based compen
Slide 21: FY 2021 Reconciliation of GAAP to Adjusted EBITDA
FY 2021 Reconciliation of GAAP to Adjusted EBITDA Cybersecurity $ in 000's Digital Media Corporate Total and Martech Revenues Revenues $ 1,068,476 $ 348,246 $ - $ 1,416,722 Operating profit Income (loss) from operations $ 216,950 $ 10,769 $ (60,379) $ 167,340 Non-GAAP adjustments: Share-based compen
Slide 22: 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 Advertising $ 177,288 $ 198,385 $ 198,794 $ 263,608 $ 170,067 $ 189,198 $ 186,921 $ 241,949 Subscriptions 117,937 124,591 135,488 134,451 13
Slide 23: 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 Revenues Stated Revenues $ 311,657 $ 341,293 $ 355,144 $ 408,628 $ 315,068 $ 337,356 $ 341,873 $ 396,700 Adjustments (12,589) (11,316) (9,59