Slide 1: Third Quarter 2024 Results
THIRD QUARTER 2024 RESULTS November 7, 2024 ©2024 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 Industry, Market and Other Data the Private Securities Litigation Reform Act of 1995, particularly those regarding our 2024 financial Certain information that may
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 2024 Consolidated Financial Snapshot
Q3 2024 Consolidated Financial Snapshot Revenues (in millions) Adjusted EBITDA (1) Adjusted diluted EPS (1) (in millions) 1. See "Supplemental Information" for non-GAAP reconciliations. 4
Slide 5: Advertising and Performance Marketing
Advertising and Performance Marketing Quarterly Revenues (1) TTM Revenues (1) (in millions) (in millions) 2022 2023 2024 Quarterly Advertising and Performance Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Marketing Metrics Net Revenue Retention (2) 92.0% 91.2% 89.8% 88.9% 87.1% 91.6% 90.5% 91.8% Customers (3) 2,044 1,737
Slide 6: Subscription and Licensing
Subscription and Licensing Quarterly Revenues (1) TTM Revenues (1) (in millions) (in millions) 2022 2023 2024 Quarterly Subscription and Licensing Metrics (2) Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Customers (3) 3,143 3,175 3,231 3,300 3,266 3,343 3,420 3,490 Average Quarterly Revenue per Customer (4) $44.69 $44.7
Slide 7: Organic Growth
Organic Growth (1) 2022 2023 2024 Year over Year Growth Rates Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Organic Revenues (1) (7%) (6%) (6%) 0% (2%) 0% (5%) (2%) Total Revenues (3%) (3%) (3%) 0% (2%) 2% (2%) 4% 1. The Company includes revenue from an acquired business in organic revenue in the first month in which the
Slide 8: Ziff Davis Capital Structure
Ziff Davis Capital Structure ($ in millions) September 30, 2024 Cash and Cash Equivalents $ 386 Long-term Investments 153 Total Cash and Investments $ 539 4.625% High-Yield Notes $ 460 1.75% Convertible Notes 149 3.625% Convertible Notes 263 Total Gross Debt (1) $ 872 Multiple of Q3 2024 TTM Adj. EB
Slide 9: 2024 Financial Guidance
2024 FINANCIAL GUIDANCE
Slide 10: 2024 Guidance (Forward-Looking Statements)
2024 Guidance (Forward-Looking Statements) Ziff Davis reaffirms its annual guidance of Revenues, Adjusted EBITDA (1), and Adjusted diluted EPS (1) Ziff Davis FY 2024 Guidance Range Low Midpoint High Midpoint YoY % Increase $ in millions, except for per share amounts vs 2023A Revenues $1,411 $1,441 $
Slide 11: Supplemental Information
SUPPLEMENTAL INFORMATION
Slide 12: Non-GAAP Financial Measures
Non-GAAP Financial Measures The below non-GAAP financial measures are not measures presented in accordance with GAAP, and our use of these terms may vary from that of other companies, limiting their usefulness for comparison purposes. These non-GAAP financial measures are not based on any comprehens
Slide 13: Non-GAAP reconciliation: Adjusted EBITDA
Non-GAAP reconciliation: Adjusted EBITDA $ in 000's Ziff Davis Three months ended September 30, 2024 2023 Net loss $ (48,577) $ (30,971) Interest expense, net 4,024 2,817 Loss on investments, net — 6,019 Other loss, net 2,633 3,571 Income tax expense 12,539 5,335 Loss (income) from equity method inv
Slide 14: Non-GAAP reconciliation: Adjusted net income and Adjusted diluted EPS
Non-GAAP reconciliation: Adjusted net income and Adjusted diluted EPS $ in 000's Ziff Davis Three months ended September 30, 2024 Per diluted Per diluted 2024 share (1) 2023 share (1) Net loss $ (48,577) $ (1.11) $ (30,971) $ (0.67) Interest, net 60 — 336 0.01 (Gain) loss on sale of business (9) — 3
Slide 15: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures (Gain) loss on (Income) loss from Acquisition, Disposal Lease asset Goodwill Adjusted GAAP Interest, (Gain) loss on investments, equity method Amortization Share-based integration, related impairments impairment non-GAAP amount net sale of busine
Slide 16: Non-GAAP reconciliation: Free Cash Flow
Non-GAAP reconciliation: Free Cash Flow $ in 000's Ziff Davis Three months ended September 30, Nine months ended September 30, 2024 2023 2024 2023 Net cash provided by operating activities $ 105,960 $ 72,808 $ 232,082 $ 227,843 Less: Purchases of property and equipment (25,843) (27,226) (79,476) (82
Slide 17: Key Operating Metrics by Segment - Subscription and Licensing
Key Operating Metrics by Segment - Subscription and Licensing Digital Media 2022 2023 2024 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Customers (1)(2) 1,638 1,715 1,808 1,905 1,908 2,037 2,148 2,239 Average quarterly revenue per customer (2)(3) $39.28 $40.34 $37.74 $37.73 $38.92 $36.07 $33.86 $34.56 Churn rate (2)(4)(